The foregoing political and economic programme would be more creditable to an imaginative schoolgirl ten years old than to a man of science and a politician. How are all these wonderful and almost miraculous changes to be financed? Quite simply and very easily—by plunder. Mr. Sidney Webb, like most "scientific" Socialists, is a loose and shallow thinker. He forgets in his calculations that stubborn little item—human nature. He forgets that nobody can become richer by transferring money from the right pocket to the left. If you plunder all capitalists and all middlemen, the workers will certainly not be better off. Owing to the absence of direct self-interest, the management by salaried officials will be inefficient. All experience of management by public bodies through officials shows that public enterprise is far more wasteful and far less efficient than private enterprise; that in official management routine, sloth, waste, irresponsibility, nepotism, favouritism, and often peculation too, become supreme. Besides, far more money than is wasted now by capitalists on themselves will be wasted by politicians hankering after popularity, and after jobs for themselves and their followers and dependents. The greatest wasters in the poorest districts are the irresponsible Socialist authorities. In palatial town halls sumptuously furnished, in magnificent public libraries, in marble baths, and other outlets of civic magnificence, money wrung from the hard-worked wage-earners is wasted in far greater sums than could possibly be spent by the most reckless capitalist on his private amusement. The most magnificent town halls, &c., are to be found in the poorest districts. Besides, "salaries must be liberal enough to attract the best men to the public service."[689] It is a matter of course that the rule of irresponsible Socialist agitators, that a system of local government whereby those who have no money are enabled to spend lavishly by drawing upon those who have money, will not make for efficiency and economy, and the end will be the Poplar-ising of Great Britain. There is a generally accepted principle, "No taxation without representation." That principle requires as a supplement, "No representation without taxation." Otherwise Great Britain will be ruled by a mob headed by imaginative and dishonest demagogues.
No enterprise is too large or too costly for the Socialists. Quite recently the Fabians recommended in a leaflet that Glasgow should acquire the whole built-over ground of the city at a cost of 24,000,000l., issuing against that sum Corporation Bonds bearing 3-1/4 per cent. interest. Provided that everything should be settled according to expectations, and supposing that Glasgow should be able to borrow 24,000,000l. at 3-1/4 per cent., which seems extremely unlikely, there would accrue, on the most favourable showing, a net profit of 200,000l. per annum to Glasgow, if nothing be allowed for the cost of management.[690] The possibility that that gigantic speculation might prove a failure is not even considered. On the contrary, it is assumed as certain that Glasgow will greatly profit by the growing value of land. Now if through natural economic development, or through the rule of a Socialist national or local administration, Glasgow should decline and land in Glasgow should fall in value, the town might be ruined. Of course that would not hurt the penniless Socialist agitators. Besides, there would always be the sovereign remedy of repudiation.
According to the fundamental Socialist doctrines which condemn profit,[691] "Municipal trading does not seek profit. To the private trader the making of profits or losses is a vital matter. He makes the mistake of thinking the same motives induce a municipality to provide a public service."[692] To the Socialist administrators it is quite immaterial whether their enterprises are run at a profit or at a loss, so long as they can draw freely on the rich and well-to-do to pay for their extravagance. "The Socialist view of the fair way of dealing with profits on trading concerns is to have none—if one may be excused so paradoxical a statement. Fair wages and good conditions generally for the employees, and selling at cost so that all may use freely the commodity or service, is the nearest approach to justice in respect to such municipal concerns as are incapable of being used with equal freedom by all."[693] "The only sound principle of municipal management is to run all these things primarily for use, with no idea of making profit at all, and as far as possible at a price to the user covering the cost of the production only. Such profits as are made should be used either to extend municipal enterprise or be utilised for what in Scotland is known as "the common good," that is, in the provision of instruction, amusements, parks and open spaces, helpful and beneficial to all."[694]
"Municipalisation or nationalisation must proceed on the right lines and for a practical object. What should be the object of municipalisation and nationalisation? The primary object should be the most economical provision of the best possible public services. The general well-being should be the first consideration to be served, having due regard to the welfare of each and all engaged in these services. The idea of profit either in the shape of interest on loans, or of reduced rates and taxes, should be eliminated altogether."[695] "The private trader always pursues profits. That is why he is such a dreadful failure. The motive of municipal trading, on the contrary, is public welfare—the benefit of all the citizens. That is why it is such a tremendous success. No one ever thinks of criticising a town council because they make no profits on these services. Now when we consider the question of municipal trading in gas, tramways, and electricity, is the principle involved any different? Not at all. The provision of gas, trams, and electricity is inspired by just the same motives as inspired the provision of roads, parks, libraries, sewerages, police, and education. That is to say, the benefit of all the citizens."[696] "The day may come when municipal trams and municipal light will be just as free as municipal streets and municipal libraries. That is to say, a rate will be levied on the citizens for their upkeep, and everyone will be free to use them as required."[697]
Such an ideal state of affairs, as pictured by scientific Mr. Webb and his rapacious followers, would be most desirable from the point of view of the town loafer. He would no longer monopolise the free library, the lodging-house, and the public-house corners, as he does at present. He would vary the monotony of the reading-room and the street corner by free rides up and down the town and into the country. In the evening he would take a hot bath in the free public baths recommended by Sidney Webb, sit for a while in the free clubs recommended by the same gentleman, and then stroll out to the free public park to view the free fireworks and listen to the free music. Free meals and lodgings will no doubt follow in due course. Great Britain will be ruled for the benefit of the tramp. Why should anybody work in such a "free" country? Who would not be a loafer or a tramp under these conditions—especially as the "vice" of work, to use a Socialistic expression, would speedily be visited by punishment in the shape of confiscatory taxation, if not of direct confiscation? The populace of decaying Athens and Rome lived under those conditions which are the ideals of British Socialists. The citizens lived by their votes for a time in idleness. They were fed and clothed by slaves and subject nations. But the end was starvation.
To provide all these free benefits for those unwilling to work, the owners of property would of course have to be taxed out of existence. "There is no limit to the present rating powers of the local authority, nor to the taxing powers of the State. The recognised limits to local and national taxation are the needs of the respective authorities. Though not perhaps clearly or generally understood, the taxing powers of the community are based upon the principle that private property is only permitted to be held or enjoyed by individuals so long as that private possession is not opposed to the general welfare, and so long as the community does not require the property or the income for public purposes. The Socialist accepts the principle of taxation—taxation 'according to ability derived from the profits of stock-in-trade and other property'—but desires deliberately to incorporate another idea and purpose in taxation, namely, the taxation of the rich to secure such socially created wealth as is now taken in rent, interest, and profit, and to use this revenue for social reform purposes. In other words, we would by that means compel 'the rendering unto Cæsar the things that are Cæsar's.'"[698] Municipal funds would be provided, not only by local rates, but also by a local income and land taxes.[699] In other words, Socialism would eat the goose that lays the golden eggs.
According to leading Socialists, municipal enterprise is preferable to private enterprise, not only for economic but also for moral reasons. "The system of private enterprise and competition reeks with corruption. Honesty under it is impossible. Municipal Socialism, on the contrary, would provide an environment which would encourage and promote the growth of moral activities. Instead of leading to corruption it would lead away from it."[700] "Private enterprise must lead to fraud, deceit, bribery, corruption, and even murder, in the struggle for existence. Municipal Socialism would entirely remove any temptation to commit these immoral actions. Why? Because, under municipal Socialism, every person who worked would be sure of a living."[701] We have seen some samples of the moral and purifying influence of municipal Socialism in the investigations recently made by the Board of Trade. Unfortunately these have revealed the fact that, in many of the most advanced Socialist corporations, fraud, bribery, intimidation, favouritism, and common theft are of daily occurrence. What else can be expected when men of predatory instincts, who preach the gospel of idleness and confiscation, who live not by work but by talk, who have been accustomed to handle pence, and who have to be taught by the town clerk how to sign a cheque, are suddenly enabled to dispose of thousands of pounds and to negotiate loans?
The general public takes little interest in local elections. Most citizens abstain from voting. Therefore the numerous corporation employees often have the decisive vote in local elections, and they will support only a candidate who promises shorter hours or higher pay. Municipal employees sitting in the public galleries will even dominate the council chamber, intimidate councillors, and shout down those of whom they disapprove. Besides, they may strike and disorganise the public services, and make the Socialistic authorities look ridiculous. Therefore it is better to humour and to obey them than to oppose them. The Fabian Society demands for municipal servants "full liberty of combination," because "the servants of the public may often need protection against the public, as in the Post Office."[702] The results of Socialist teachings are to be seen in many municipalities. "The servants of the public" are already, and will in an increasing degree become, the masters of the public.
Under municipal Socialism the wages of tramway-men have increased as follows: "In Sheffield, where the private company paid 100l. for labour, the Corporation pay 165l. for the same amount of work. In Bolton, where the private company paid 100l., the Corporation pay 137l. In Wallasey, where the private company paid 100l., the District Council pay 185l. In Northampton, where the private company paid 100l., the Corporation pay 120l. In Birkenhead, where the private company paid 100l., the Corporation pay 315l. In Portsmouth, where the private company paid 100l., the Corporation pay 130l. In Sunderland, where the private company paid 100l., the Corporation pay 145l. When the Manchester Corporation took over the trams they paid increased wages amounting to 60,000l. a year."[703]
The foregoing information is given by a Socialist. Some of the advances may be justified, but others, and probably the majority, have been made with that fine disregard of economy which is commonly found among men who can afford to be generous at other people's expense. Municipal Socialism is an ever-growing cancer which is rapidly exhausting the country.