There can be no denying the promises of colour and eventfulness a Plutocracy holds out, and though they do not attract me, I can quite understand their appeal to the more ductile and appreciative mind of Mr. Mallock. But there are countervailing considerations. There is, it is said, a tendency in Plutocracies either to become unprogressive, unenterprising and stagnantly autocratic, or to develop states of stress and discontent, and so drift towards Cæsarism. The latter was the fate of the Roman Republic, and may perhaps be the destiny of the budding young Plutocracy of America. But the developing British Plutocracy, like the Carthaginian, will be largely Semitic in blood, and like the Carthaginian may resist these insurgent tendencies.
So much for the Plutocratic possibility. If the middle-class man on any account does not like that outlook, he can turn in the other direction; and then he will find fine promises indeed, but much more uncertainty than towards Plutocracy. Plutocracies the world has seen before, but a democratic civilization organized upon the lines laid down by modern Socialists would be a new beginning in the world’s history. It is not a thing that will come about by itself; it will have to be the outcome of a sustained moral and intellectual effort in the community. If there is not that effort, if things go on as they are going now, the coming of a Plutocracy is inevitable. That effort, I am convinced, cannot be successfully made by the lower-class man alone; from him, unaided and unguided, there is nothing to be expected but wild convulsive attempts at social upheaval, which, whether they succeed (as the French Revolution did) or fail (as did the insurrectionary outbreaks of the Republic in Rome), lead ultimately to a Napoleon or a Cæsar. But our contemporary civilization is unprecedented in the fact that the whole population now reads, and that intelligence and free discussion saturate the whole mass. Only time can show what possibilities of understanding, leadership, and political action lie in our new generation of the better-educated middle class. Will it presently begin to define a line for itself? Will it remain disorganized and passive, or will it become intelligent and decisive between these millstones of the organized property and the organizing State, between Plutocracy and Socialism, whose opposition is the supreme social and political fact in the world at the present time?
§ 2.
Perhaps, also, it may be helpful here to insert a view of the contemporary possibilities of Socialism from a rather different angle, a view that follows on to the matter of the previous section, but appeals to a different section of the Middle Class. It is a quotation from the Magazine of Commerce for September 1907, and leads to an explanation by the present writer.
“The recent return of Mr. Grayson, a Socialist, as member of Parliament for the Colne Valley, has brought prominently before the public mind the question of Socialism. Mr. Pete Curran’s success at Jarrow a month or so ago, and the large number of Labour members returned at the last General Election, caused more or less desultory comment on Socialism as a possible feature of practical politics in the remote future; but Mr. Grayson can certainly claim that his achievement at Colne Valley brought the question of Socialism in to the very forefront at one bound. It is difficult to ignore Socialism, to dismiss it as a mere fad and fancy of a few hare-brained enthusiasts, after Mr. Grayson’s success. The verdict of Colne Valley may be the verdict of many another constituency where the so-called working-class electors are numerically predominant. When we consider that the manual worker represents the majority of the electorate of the country, this contingency does not appear to be so very remote, provided that the leaders of Socialism can organize their resources and canvass the working-men on a wide and carefully-planned scale. In this respect the Colne Valley result may very well give them the lead and stimulus they have been waiting for. It must be borne in mind, too, that the forward section of the Labour Party is avowedly Socialist in its sympathies, and a definite start may therefore be said to have been made towards capturing the machinery of Government in the Cause of Socialism.
“How will Socialism affect the business world? This is a question which many thoughtful business men must have already put to themselves. For reply we must go to the leaders of Socialism, and discover what their policy actually is. The common impression that Socialism spells barefaced confiscation is too superficial to be seriously adduced as an argument against Socialism. The leaders of the Cause include some of the cleverest men of the day—men who have a more rational basis for their policy than that of simply robbing Peter to pay Paul. The suggestion that Socialism means a compulsory ‘share out’ may be rightly dismissed as an idle scare. The most bitter opponent of Socialism must at least admit that there is a stronger argument to be met than that implied by the parrot-cry of ‘spoliation.’ Socialism has, at any rate, so far advanced as to be allowed the ordinary courtesies of debate. We may oppose it tooth and nail, but we must confront argument with argument and not with abuse.
“Despite much excellent literature which is read widely by cultured people, very little is known by the general public of the principles which modern British Socialists have adopted as their guiding rules. Few business men care to study the subject. We have therefore addressed a letter to the chief leaders of the Cause, with the purpose of ascertaining the effect which Socialism would have on our business habits. Our object was to discover how far Socialism might disturb or improve business; whether it would altogether subvert present methods, or whether it could be applied without injury to these methods. To put the matter very plainly, we wished to learn whether we should carry on our business much as we do now, giving free play to individual effort and individual fortune-building.
“The reply of Mr. Wells is as follows:—
“‘My Dear Sir,
“‘I wish very much I could reply at adequate length to your very admirably framed question. The constant stream of abuse and of almost imbecile misrepresentations of Socialism in the Press has no doubt served to distort the idea of our movement in the minds of a large proportion of busy men, and filled them with an unfounded dread of social insecurity. If it were possible to allay that by an epigrammatic programme, “Socialism in a Nutshell,” so to speak, I would do my best. But the economic and trading system of a modern State is not only a vast and complex tangle of organizations, but at present an uncharted tangle, and necessarily the methods of transition from the limited individualism of our present condition to the scientifically-organized State, which is the Socialist ideal, must be gradual, tentative and various.
“‘To build up a body of social and economic science, to develop a class of trained administrators, to rearrange local government areas, to educate the whole community in the “sense of the State” are necessary parts of the Socialist scheme. You must try and induce your readers to recognize that when Socialism finds such supporters as Sir Oliver Lodge and Professor Karl Pearson, as William Morris (who revolutionized the furniture trade), as Granville Barker (who is revolutionizing the London stage), as Mr. George Cadbury and Mr. Fels (whose names are not unknown in the world of advertisement), as Mr. Allan (of the Allan Line), as Mr. George Bernard Shaw and Mrs. Shaw, Mr. and Mrs. Sidney Webb and Sir Sidney Olivier (the present Governor of Jamaica)—all of them fairly comfortable and independent people, practically acquainted with the business of investment and affairs generally and quite alive to the present relations of property to the civilized life—the suggestion that it is a raid of the ignorant “Have-nots” on the possessions of the wise and good “Haves” cannot be a very intelligent one nor addressed to very intelligent people. Essentially Socialism is the scientifically-organized State as distinguished from the haphazard, wasteful, blundering, child-sweating State of the eighteenth century. It is the systematization of present tendency. Necessarily its methods of transition will be progressively scientific and humane.
“‘So far as your specific questions go, I do not think there could possibly be anything in the nature of “compulsory profit-sharing” if a Socialist Government came into office. There is at present a compulsory profit-sharing in the form of an income-tax, but that tax does not appeal to the Socialist as a particularly scientific one. The advent of a strongly-Socialist Government would mean no immediate revolutionary changes at all. There would be, no doubt, a vigorous acceleration of the educational movement to increase the economic value and productivity of the average citizen of the next generation, and legislation upon the lines laid down by the principle of the “minimum wage” to check the waste of our national resources by destructive employment. Also a systematic shifting of the burthen of taxation from enterprise to rent would begin. But nothing convulsive would occur.’”
“‘The means of transit and communication of the country (both internal and external), and especially the railways and canals (which are now rapidly falling into inefficiency through the exhaustion of their capital upon excessive dividends in the past), would probably be transferred from competitive private to organized public control—a transfer that would certainly be enormously stimulating to business generally. There would be no “robbery,” the former shareholders would become stock or annuity holders. Nor would there be any financial convulsion due to the raising of the “enormous sum” necessary to effect this purchase. The country would simply create stock, while at the same time taking over assets to balance the new liability.
“‘A Socialist Government would certainly also acquire the coal mines and the coal trade, and relieve industry from the inconveniences due to the manipulation of the supply of this vitally important factor, and it would accelerate the obvious tendency of the present time to bring the milk trade, the drink trade, slaughtering, local traffic, lighting and power supply into public hands. But none of this is the destruction of property, but only its organization and standardization. Such a State organization of public services is, I submit, enough to keep a Socialist Government busy for some few years, and makes not only for social progress, but social stability.
“‘And does an honest and capable business man stand to lose or gain by the coming of such a Socialist Government? I submit that, on the whole, he stands to gain. Let me put down the essential points in his outlook as I conceive them.
“‘Under a Socialist Government such as is quite possible in England at the present time:—
“‘He will be restricted from methods of production and sale that are socially mischievous.
“‘He will pay higher wages.
“‘He will pay a larger proportion of his rate-rent outgoings to the State and Municipality, and less to the landlord. Ultimately he will pay it all to the State or Municipality, and as a voter help to determine how it shall be spent, and the landlord will become a Government stock-holder. Practically he will get his rent returned to him in public services.
“‘He will speedily begin to get better-educated, better-fed and better-trained workers, so that he will get money value for the higher wages he pays.
“‘He will get a regular, safe, cheap supply of power and material. He will get cheaper and more efficient internal and external transit.
“‘He will be under an organized scientific State, which will naturally pursue a vigorous scientific collective policy in support of the national trade.
“‘He will be less of an adventurer and more of a citizen….’”
“‘My Dear Sir,
“‘I wish very much I could reply at adequate length to your very admirably framed question. The constant stream of abuse and of almost imbecile misrepresentations of Socialism in the Press has no doubt served to distort the idea of our movement in the minds of a large proportion of busy men, and filled them with an unfounded dread of social insecurity. If it were possible to allay that by an epigrammatic programme, “Socialism in a Nutshell,” so to speak, I would do my best. But the economic and trading system of a modern State is not only a vast and complex tangle of organizations, but at present an uncharted tangle, and necessarily the methods of transition from the limited individualism of our present condition to the scientifically-organized State, which is the Socialist ideal, must be gradual, tentative and various.
“‘To build up a body of social and economic science, to develop a class of trained administrators, to rearrange local government areas, to educate the whole community in the “sense of the State” are necessary parts of the Socialist scheme. You must try and induce your readers to recognize that when Socialism finds such supporters as Sir Oliver Lodge and Professor Karl Pearson, as William Morris (who revolutionized the furniture trade), as Granville Barker (who is revolutionizing the London stage), as Mr. George Cadbury and Mr. Fels (whose names are not unknown in the world of advertisement), as Mr. Allan (of the Allan Line), as Mr. George Bernard Shaw and Mrs. Shaw, Mr. and Mrs. Sidney Webb and Sir Sidney Olivier (the present Governor of Jamaica)—all of them fairly comfortable and independent people, practically acquainted with the business of investment and affairs generally and quite alive to the present relations of property to the civilized life—the suggestion that it is a raid of the ignorant “Have-nots” on the possessions of the wise and good “Haves” cannot be a very intelligent one nor addressed to very intelligent people. Essentially Socialism is the scientifically-organized State as distinguished from the haphazard, wasteful, blundering, child-sweating State of the eighteenth century. It is the systematization of present tendency. Necessarily its methods of transition will be progressively scientific and humane.
“‘So far as your specific questions go, I do not think there could possibly be anything in the nature of “compulsory profit-sharing” if a Socialist Government came into office. There is at present a compulsory profit-sharing in the form of an income-tax, but that tax does not appeal to the Socialist as a particularly scientific one. The advent of a strongly-Socialist Government would mean no immediate revolutionary changes at all. There would be, no doubt, a vigorous acceleration of the educational movement to increase the economic value and productivity of the average citizen of the next generation, and legislation upon the lines laid down by the principle of the “minimum wage” to check the waste of our national resources by destructive employment. Also a systematic shifting of the burthen of taxation from enterprise to rent would begin. But nothing convulsive would occur.’”
“‘The means of transit and communication of the country (both internal and external), and especially the railways and canals (which are now rapidly falling into inefficiency through the exhaustion of their capital upon excessive dividends in the past), would probably be transferred from competitive private to organized public control—a transfer that would certainly be enormously stimulating to business generally. There would be no “robbery,” the former shareholders would become stock or annuity holders. Nor would there be any financial convulsion due to the raising of the “enormous sum” necessary to effect this purchase. The country would simply create stock, while at the same time taking over assets to balance the new liability.
“‘A Socialist Government would certainly also acquire the coal mines and the coal trade, and relieve industry from the inconveniences due to the manipulation of the supply of this vitally important factor, and it would accelerate the obvious tendency of the present time to bring the milk trade, the drink trade, slaughtering, local traffic, lighting and power supply into public hands. But none of this is the destruction of property, but only its organization and standardization. Such a State organization of public services is, I submit, enough to keep a Socialist Government busy for some few years, and makes not only for social progress, but social stability.
“‘And does an honest and capable business man stand to lose or gain by the coming of such a Socialist Government? I submit that, on the whole, he stands to gain. Let me put down the essential points in his outlook as I conceive them.
“‘Under a Socialist Government such as is quite possible in England at the present time:—
“‘He will be restricted from methods of production and sale that are socially mischievous.
“‘He will pay higher wages.
“‘He will pay a larger proportion of his rate-rent outgoings to the State and Municipality, and less to the landlord. Ultimately he will pay it all to the State or Municipality, and as a voter help to determine how it shall be spent, and the landlord will become a Government stock-holder. Practically he will get his rent returned to him in public services.
“‘He will speedily begin to get better-educated, better-fed and better-trained workers, so that he will get money value for the higher wages he pays.
“‘He will get a regular, safe, cheap supply of power and material. He will get cheaper and more efficient internal and external transit.
“‘He will be under an organized scientific State, which will naturally pursue a vigorous scientific collective policy in support of the national trade.
“‘He will be less of an adventurer and more of a citizen….’”
So I wrote to the Magazine of Commerce, and that for the energetic man who is conducting a real and socially useful business is the outlook. Socialism is not the coming of chaos and repudiation, it is the coming of order and justice. For confusion and accident and waste, the Socialist seeks to substitute design and collective economy. That too is the individual aim of every good business man who is not a mere advertising cheat or financial adventurer. To the sound-minded, clear-headed man of affairs, Socialism appeals just as it appeals to the scientific man, to the engineer, to the artist, because it is the same reality, the large scale aspect of the same constructive motive, that stirs in himself.
§ 3.
Let me finally quote the chairman of one of the most enterprising and enlightened business organizations of our time to show that in claiming the better type of business man for modern Socialism I am making no vain boast. Sir John Brunner may not call himself a Socialist, but this is very probably due to the fact that he gets his ideas of Socialism from the misquotations of its interested adversaries. This that follows from the Manchester Guardian is pure Socialism.
Speaking at the annual meeting of Brunner, Mond and Co., Ltd., in Liverpool (1907), the chairman, Sir John Brunner, M.P., made a remarkable pronouncement on the subject of the collective ownership of canals. He said:—
“I have been one of a Royal Commission visiting the North of France, Belgium, and Northern Germany, and our duty has been to examine what those three countries have done in the improvement of their canals and their waterways. We have been very deeply impressed by what we have seen, and I can tell you to-day, speaking as a man of business to men of business, that the fact that in these three countries there is communal effort—that is to say, that the State in money and in credit for the benefit of the national trade—has brought to those three countries enormous, almost incalculable, benefits; and I think that any man, any intelligent man, who studies this matter as I have studied it for a great many years, will come the conclusion, as I have come very clearly and decidedly, that the old policy which we have adopted for generations of leaving all public works to private enterprise—the old policy, so called, of laissez faire—is played out completely, and I am of opinion, very firmly, that, if we mean to hold our own in matters of trade, we must learn to follow the example that has been set us not only by France, Belgium, and Germany, but by the United States and by every one of the Colonies of our Empire. Everywhere do you find that trade is helped by the effort of the community, by the force of the State, and I shall be very heartily pleased if those who hear me will think the matter over and decide for themselves whether or not we as business people—preeminently the business people of the world—are to maintain the old policy of leaving everything to private enterprise, or whether we are to act together for the good of all in this important matter of the national trade.”