Proudhon thought that the fault of every political or social constitution, whether it was the work of political or social Radicalism, that which produces conflicts, and sets up antagonism in society, lies in the fact that on the one hand the division of powers, or rather of functions, is badly and incompletely performed, while on the other hand centralisation is insufficient. The necessary consequence of this is that the chief power is inactive and the "thought of the people," or universal suffrage, is not exercised. Division of functions then must be completed, and centralisation must increase; universal suffrage must regain its prerogative and therewith give back to the people the energy and activity which is lacking to them.

The manner in which Proudhon proposed this constitution of society by the initiative of the masses and the organisation of universal suffrage cannot be better or more simply explained than in the words and examples which he himself has used in the Confessions in order to interpret his views. He says:

"For many centuries the spiritual power, according to the traditional conception of it, has been separated from the temporal power. I remark, by the way, that the political principle of the division of powers, or functions, is the same as the principle of the division of the departments of industry or of labour. Here already we see a glimpse of the identity of the political and social constitution. But now I say that the division of the two powers, the spiritual and temporal, has never been complete; and that their centralisation, which was a great disadvantage both for ecclesiastical administration and for the followers of religion, was never sufficient. A complete division would take place if the temporal power never mingled in religious solemnities, in the administration of the sacraments, in the government of parishes, and especially in the nomination of bishops. There would then be a much greater centralisation, and consequently still more regular government, if in every parish the people had the right to choose their clergymen and chaplains themselves, or even not to have any at all; if the priests in every diocese chose their bishops; if the assembly of bishops alone regulated religious affairs in theological education and in divine worship. By this division the clergy would cease to be a tool of tyranny in the hands of the political power against the people; and by this application of universal suffrage the Church Government, centralised in itself, would receive its inspiration from the people, and not from the Government or from the Pope: it would continually find itself in harmony with the needs of society and with the spiritual condition of the citizens. In order thus to return to organic, economic, and social truth, it is necessary (1) To do away with the constitutional accumulation of power, by taking away the nomination of bishops from the State, and separating once for all spiritual from temporal affairs; (2) To centralise the Church in itself by a system of elective grades; (3) To give to the ecclesiastical power, as to all other powers of the State, the right of voting as its foundation. By this system, that which to-day is 'government' becomes nothing more than administration. And it will be understood if it is possible to organise the whole country in all its temporal affairs, according to the rules which we have just laid down for its spiritual organisation, the most perfect order and the most powerful centralisation would exist without there being anything of what we now call the constituted authority of a government.

"One other example: formerly there existed besides the legislative and executive powers a third, the judicial power. This was an abolition of the dividing dualism, a first step towards the complete separation of political functions as of the departments of industry. The judicial functions—with their different specialties, their hierarchy, their irremovability, their union in a single ministry—testify undoubtedly to their privileged position and their efforts towards centralisation. But these functions do not arise from the people upon whom they are exercised; their purpose is the administration of executive power; they are not subordinated to the country by election, but to the Government, president, or princes, by nomination. The consequence is that the liberties of the people who are judged are given into the hands of those who are supposed to be their natural judges, like parishioners into the hands of their pastor, so that the people belong to the magistrates as an inheritance, while the litigants exist for the sake of the judge, and not the judge for the sake of the litigants. Apply universal suffrage and the system of elective grades to judicial functions in the same way as to ecclesiastic; take away their irremovability which is the denial of the right of election; take away from the State all action and influence upon the judges; let this order, centralised in and for itself, arise solely from the people, and you have taken away from the State its most powerful implement of tyranny. You have made out of justice a principle of freedom and order, and unless you suppose that the people from whom, by means of universal suffrage, all power must proceed is in contradiction with itself, and that it does not wish in the case of justice what it wishes in the case of religion, or vice versa, you may rest assured that the division of power can produce no conflict. You can confidently establish the principle that division and equilibrium will in future be synonymous.

"I pass over to another case, to the military power. It belongs to the citizens to nominate their military commanders in due order, by advancing simple privates and national guards to the lower grades and officers to the higher grades in the army. Thus organised the army maintains its citizen-like sentiment. There is no longer a nation in a nation, a country in a country, a kind of wandering colony where the citizen is a citizen amongst soldiers, and learns to fight against his own country. The nation itself, centralised in its strength and youth, can, independently of the power of the State, appeal to the public power in the name of the law, just like a judge or police official, but cannot command it or exercise authority over it. In the case of a war the army owes obedience only to the representative assembly of the nation, and to the leaders appointed by it.

"It is clear that in this, no judgment is passed upon the necessity of these great manifestations of the social mind, and that if we wish to abide by the judgment of the people, which alone is competent to decide as to the importance and duration of its institutions, we can do nothing better (as has just been said) than to constitute them in a democratic manner.

"Societies have at all times experienced the need of protecting their trade and industry against foreign imports; the power or function which protects native labour in each country and guarantees it a national market, is taxation in the shape of Customs. I will not here say anything at all about the morality, or want of it, the usefulness or the harm of Customs duties. I take it as I see it in society, and confine myself to examining it from the point of view of the constitution of powers. Taxation, by the very fact that it exists, is a centralised function. Its origin like its action, excludes every idea of division or dismemberment. But how does it happen that this function, which belongs specially to the province of merchants and those concerned with industry, and proceeds exclusively from the authority of the Chambers of Commerce, yet belongs to the State? Who can know better than industry itself wherein and to what extent it requires protection, where the compensation for the taxation which has to be raised must come from, and what products require bounties and encouragement? And as for the Customs service itself, is it not obvious that it is the business of those interested to reckon up the expenses of it, while it is not at all suitable for the Government to make of it a source of emolument for its favourites by procuring an income for its extravagances by differential taxes?

"Besides the ministries of justice, religion, war, and international trade, the Government appoints yet others; the ministry for agriculture, public works, public instruction, and finally to pay for all these, the ministry of finance. Our so-called division of powers is only an accumulation of all kinds of powers, our centralisation is an absorption. Do you not think that the agriculturists, who are already all organised in their communities and committees, would perform their own centralisation very well, and could guide their common interests without this being done by the State? Do you not think that the merchants, manufacturers, agriculturists, the industrial population of every kind, who have their books open before them in the Chambers of Commerce, could in the same way, without the help of the State, without expecting their salvation from its good-will, or their ruin from its inexperience, organise at their own cost a central administration for themselves; could debate their own affairs in general assemblies; could correspond with other administrations; could pass all their useful decisions without waiting for the sanction of the President of the Republic; and could entrust the execution of their will to one amongst themselves, who would be chosen by his fellows to be the Minister? It is clear that the public works which concern agricultural industry and trade, or the departments and the communes, might in future be assigned to the local and central administrations which have an interest in them; and should no more be a special corporation in the hands of the State than is the army, the customs, or monopolies. Or should the State have its hierarchy, its privileges, its ministry, so that it may carry on a trade in mining, canals, or railways, may speculate on the Stock Exchange, grant leases for ninety-nine years, and leave the building of streets, bridges, dams, water-ways, excavations, sluices, etc., to a legion of contractors, speculators, usurers, destroyers of morality, and extortioners, who live upon the public wealth by the exploitation of workmen and wage-earners, and upon the folly of the State?

"Can it not be believed that public instruction could be just as well made universal, be administered, directed, and that the teachers, professors, and inspectors could be just as well elected, and the system of studies would be just as much in harmony with the habits and interests of the nation if it was the business of municipal and general councils to appoint teachers, while the universities only had to grant them their diplomas; if in public instruction, as in the military career, merit in the lower grades was necessary for promotion to the higher, if our dignitaries of the university must first have gone through the duties of an elementary teacher and supervisor of studies?

"Does one imagine that this perfectly democratic system would do harm to the discipline of schools, to morality, education, the dignity of instruction, or the peace of the family?