Twentieth Century Socialism: What It Is Not; What It Is: How It May Come

by Edmond Kelly

As regards the necessaries of life the consumer should be able to get them at the lowest possible price. All things of a hygienic character, which it is of the utmost importance that the consumer should have of the purest quality, the state will undertake not only to transport, but to distribute in state stores. It is of course conceivable that in some towns the state store will not be conducted to the satisfaction of its citizens, and private enterprise will therefore run a store in that place better than the state. In such case, private enterprise ought to be encouraged in its competition. But inasmuch as good state management will be in a coöperative commonwealth a matter of the greatest importance, it is not likely that the citizen will long endure bad administration. This belongs more to the political aspect of Socialism than to the economic, and will be studied there. We shall therefore now pass to a brief consideration of just how this system of distribution will work.

The state, having control of transportation, will adopt the method now prevailing in South Australia, and will pay the manufacturer and the farmer in cash at least 50 per cent—if not more—of the value of his goods at the railroad station. These will then be transported by the state in conformity with the needs of the various villages, towns and cities to stores of its own. These will be run upon the coöperative plan; the goods sold at only a small margin above cost, this margin being kept to meet the expense of distribution; and the profits—if any—will be distributed at the end of the year amongst customers on the coöperative plan.

It is obvious, however, that if the state is to distribute in the most economical manner, it must have some control over production. It must not be called upon to transport and distribute more of any one thing than the public wants; nor must it be caught without enough to satisfy the needs of the consumer. This makes it indispensable to study the problem of control at the same time with the problem of distribution.

No function of the state will probably be more important in a coöperative commonwealth than that of controlling the production of those things which, because they are necessaries or have hygienic importance, a coöperative commonwealth should itself control, transport, and distribute.

The problem of control is not as difficult as it might at first seem. We know perfectly well to-day how much wheat, corn, beef, mutton, etc., are actually consumed by our population. All we have to do to determine this amount for ourselves is to take, for example, the amount of wheat produced in the country, and the amount exported, subtract the exports from the product and determine the amount consumed in this country. The same thing can be done practically with every staple product. The state, therefore, can determine every year in advance how much of every staple product must be produced for the needs of the country. It will, of course, add to the amount actually needed a margin to provide for poor crops and other accidents.

Let us consider how this control will be exercised as regards farm and dairy products. It has been already suggested that land should be classified according to geographical conditions, exposure, and soil. The productivity of the farm colonies will of course be known by the state. Every private farm will have its productivity roughly determined and every farmer will be expected to produce a minimum amount. Of the amount he produces, a part will be taken as taxes to furnish the government with the means to pay for administration. The rest will be paid for partly in gold and partly in orders on the state stores. The object of this system of payment is the following:

It has been explained that taxes will be paid in produce. This payment therefore needs no further comment. A minimum product ascribed to every farm will be paid for with orders on the state store. This represents the amount which the farmer must produce to keep his farm. It also represents the amount which the state must have to supply its citizens with food. All over and above this amount will be paid for in orders on the public store, or in cash, as the farmer shall elect; or, if the farmer chooses to dispose of this part to private traders he will be at liberty to do so. By this method the community will be furnished with produce belonging to three different categories: produce in the shape of a tax for which the farmer receives no compensation, this being practically the rent he pays the state for his land; second, the minimum produce for which the farmer receives equivalent orders on the public store, this category being the produce upon which the community depends for its sustenance.

The order upon the public store need differ in no way from the greenback of to-day except that, instead of entitling the holder to a dollar's worth of gold, it will entitle him to a dollar's worth of goods in the public store. Thus if wheat can be produced in a coöperative commonwealth at 50 cents per bushel, as seems likely,[183] the farmer will receive for every two bushels an order for one dollar on the public store.

The third category which represents the surplus above what the farmer is required to produce in order to keep his farm, will constitute a surplus of production applicable to exchange for luxuries and foreign goods. This exchange can be made directly by the farmer or by private banks and private merchants, or by the state.

Let us consider the control the state must exercise over, and the rôle it must play in, the distribution of products of socialized industries such as oil, sugar, steel, iron, leather, etc. The amount of iron and steel required by the nation in the course of a year is not as constant a quantity as the amount of wheat. It is, however, sufficiently constant to make it possible to establish a minimum. The state will begin by requiring socialized industries to furnish this minimum and determine the price to be paid for it, thus creating a stock on hand which can be accumulated so as to diminish the amount needed in subsequent years and furnish a reserve which can be called upon in case of extraordinary need. The state, having established the minimum of steel, sugar, oil, etc., which it needs, will require of the socialized industries to produce this minimum. It will also require them to produce, in addition, an amount necessary to contribute their share to the maintenance of the government. Every associated industry, therefore, will furnish at regular intervals the result of its manufacture in three categories similar to those already explained—a part for taxes; a minimum already referred to that will be paid for in orders on the public stores, and a surplus of which it can dispose either to the state or directly to foreign bankers and merchants. In this way, every associated industry will so adjust its manufacture as to produce these three categories; the proceeds of the surplus will be applicable in the first place to the support of workers through accidents, illness, and during old age; and the rest will be divided as profits amongst those engaged for example in the steel industry. These profits will be applicable to the purchase of luxuries either produced at home or produced abroad.