Contemporary Socialism

by John Rae

Lassalle's doctrines are mainly contained in his lecture on "The Present Age and the Idea of the Working Class," which he delivered in 1862, and published in 1863, under the title of the "Working Men's Programme," and in his "Herr Bastiat-Schultze von Delitzsch, der Oekonomische Julian; oder Capital und Arbeit," Berlin, 1864.

In the "Working Men's Programme," the question of the emancipation of the working class is approached and contemplated from the standpoint of the Hegelian philosophy of history. There are, it declares, three successive stages of evolution in modern history. First, the period before 1789, the feudal period, when all public power was vested in, exercised by, and employed for the benefit of, the landed class. It was a period of privileges and exemptions, which were enjoyed by the landed interests exclusively, and there prevailed a strong social contempt for all labour and employment not connected with the land. Second, the period 1789-1848, the bourgeois period, in which personal estate received equal rights and recognition with real, but in which political power was still based on property qualifications, and legislation was governed by the interests of the bourgeoisie. Third, the period since 1848, the age of the working class, which is, however, only yet struggling to the birth and to legal recognition. The characteristic of this new period is, that it will for the first time give labour its rights, and that it will be dominated by the ideas, aspirations, and interests of the great labouring class. Their time has already come, and the bourgeois age is already past in fact, though it still lingers in law. It is always so. The feudal period had in reality come to an end before the Revolution. A revolution is always declarative and never creative. It takes place first in the heart of society, and is only sealed and ratified by the outbreak. "It is impossible to make a revolution, it is possible only to give external legal sanction and effect to a revolution already contained in the actual circumstances of society.... To seek to make a revolution is the folly of immature men who have no consideration for the laws of history; and for the same reason it is immature and puerile to try to stem a revolution that has already completed itself in the interior of society. If a revolution exists in fact, it cannot possibly be prevented from ultimately existing in law." It is idle, too, to reproach those who desire to effect this transition with being revolutionary. They are merely midwives who assist in bringing to the birth a future with which society is already pregnant. Now, it is this midwife service that Lassalle believed the working class at present required. He says of the fourth estate what Sieyès said of the third, What is the fourth estate? Nothing? What ought the fourth estate to be? Everything. And it ought to be so in law, because it is so already in fact. The bourgeoisie, in overthrowing the privileges of the feudal class, had almost immediately become a privileged class itself. At so early a period of the revolution as the 3rd of September, 1791, a distinction was introduced between active and passive citizens. The active citizen was the citizen who paid direct taxes, and had therefore a right to vote; the passive citizen was he who paid no direct taxes, and had no right to vote. The effect of this distinction was to exclude the whole labouring classes from the franchise; and under the July Monarchy, while the real nation consisted of some thirty millions, the legal nation (pays légal), the people legally possessed of political rights, amounted to no more than 200,000, whom the Government found it only too easy to manage and corrupt. The revolution of 1848 was simply a revolt against this injustice. It was a revolt of the fourth estate against the privileges of the third, as the first revolution was a revolt of the third against the privileges of the other two. Nor were the privileges which the bourgeoisie had contrived to acquire confined to political rights alone; they included also fiscal exemptions. According to the latest statistical returns, it appeared that five-sixths of the revenue of Prussia came from indirect taxation, and indirect taxes were always taken disproportionately out of the pockets of the working class. A man might be twenty times richer than another, but he did not therefore consume twenty times the amount of bread, salt, or beer. Taxation ought to be in ratio of means, and indirect taxation—so much favoured by the bourgeoisie—was simply an expedient for saving the rich at the expense of the poor.

Now, the revolution of 1848 was a fight for the emancipation of the working class from this unequal distribution of political rights and burdens. The working class was really not a class at all, but was the nation; and the aim of the State should be their amelioration. "What is the State?" asks Lassalle. "You are the State," he replies. "You are ninety-six per cent. of the population. All political power ought to be of you, and through you, and for you; and your good and amelioration ought to be the aim of the State. It ought to be so, because your good is not a class interest, but is the national interest." The fourth estate differs from the feudal interest, and differs from the bourgeoisie, not merely in that it is not a privileged class, but in that it cannot possibly become one. It cannot degenerate, as the bourgeoisie had done, into a privileged and exclusive caste; because, consisting as it does of the great body of the people, its class interest and the common good are identical, or at least harmonious. "Your affair is the affair of mankind; your personal interest moves and beats with the pulse of history, with the living principle of moral development."

Such then is the idea of the working class, which is, or is destined to be, the ruling principle of society in the present era of the world. Its supremacy will have important consequences, both ethical and political. Ethically, the working class is less selfish than the classes above it, simply because it has no exclusive privileges to maintain. The necessity of maintaining privileges always develops an assertion of personal interest in exact proportion to the amount of privilege to be defended, and that is why the selfishness of a class constantly exceeds the individual selfishness of the members that compose it. Now under the happier régime of the idea of labour, there would be no exclusive interests or privileges, and therefore less selfishness. Adam would delve and Eve would spin, and, consciously or unconsciously, each would work more for the whole, and the whole would work more for each. Politically, too, the change would be remarkable and beneficial. The working class has a quite different idea of the State and its aim from the bourgeoisie. The latter see no other use in the State but to protect personal freedom and property. The State is a mere night-watchman, and, if there were no thieves and robbers, would be a superfluity; its occupation would be gone. Its whole duty is exhausted when it guarantees to every individual the unimpeded exercise of his activity as far as consistent with the like right of his neighbours. Even from its own point of view this bourgeois theory of the State fails to effect its purpose. Instead of securing equality of freedom, it only secures equality of right to freedom. If all men were equal in fact, this might answer well enough, but since they are not, the result is simply to place the weak at the mercy of the powerful. Now the working class have an entirely different view of the State's mission from this. They say the protection of an equality of right to freedom is an insufficient aim for the State in a morally ordered community. It ought to be supplemented by the securing of solidarity of interests and community and reciprocity of development. History all along is an incessant struggle with Nature, a victory over misery, ignorance, poverty, powerlessness—i.e., over unfreedom, thraldom, restrictions of all kinds. The perpetual conquest over these restrictions is the development of freedom, is the growth of culture. Now this is never effected by each man for himself. It is the function of the State to do it. The State is the union of individuals into a moral whole which multiplies a millionfold the aggregate of the powers of each. The end and function of the State is not merely to guard freedom, but to develop it; to put the individuals who compose it in a position to attain and maintain such objects, such levels of existence, such stages of culture, power, and freedom, as they would have been incapable of reaching by their own individual efforts alone. The State is the great agency for guiding and training the human race to positive and progressive development; in other words, for bringing human destiny (i.e., the culture of which man as man is susceptible) to real shape and form in actual existence. Not freedom, but development is now the keynote. The State must take a positive part, proportioned to its immense capacity, in the great work which, as he has said, constitutes history, and must forward man's progressive conquest over misery, ignorance, poverty, and restrictions of every sort. This is the purpose, the essence, the moral nature of the State, which she can never entirely abrogate, without ceasing to be, and which she has indeed always been obliged, by the very force of things, more or less to fulfil, often without her conscious consent, and sometimes in spite of the opposition of her leaders. In a word, the State must, by the union of all, help each to his full development. This was the earnest and noble idea of 1848. It is the idea of the new age, the age of labour, and it cannot fail to have a most important and beneficial bearing on the course of politics and legislation whenever it is permitted to have free operation in that sphere by means of universal and direct suffrage.

This exposition of Lassalle's teaching in his "Working Men's Programme" already furnishes us with the transition to his economic views. Every age of the world, he held, has its own ruling idea. The idea of the working class is the ruling idea of the new epoch we have now entered on, and that idea implies that every man is entitled to a menschenwürdiges Dasein, to an existence worthy of his moral destiny, and that the State is bound to make this a governing consideration in its legislative and executive work. Man's destiny is to progressive civilization, and a condition of society which makes progressive civilization the exclusive property of the few, and practically debars the vast mass of the people from participation in it, stands in the present age self-condemned. It no longer corresponds to its own idea. Society has long since declared no man shall be enslaved; society has more recently declared no man shall be ignorant; society now declares no man shall be without property. He cannot be really free without property any more than he can be really free without knowledge. He has been released successively from a state of legal dependence and from a state of intellectual dependence; he must now be released from a state of economic dependence. This is his final emancipation, which is necessary to enable him to reap any fruits from the other two, and it cannot take place without a complete transformation of present industrial arrangements. It is a common mistake, he said, to think that socialists take their stand on equality. They really take their stand on freedom. They argue that the positive side of freedom is development, and if every man has a right to freedom, then every man has a right to the possibility of development. From this right, however, they allege the existing industrial system absolutely excludes the great majority. The freeman cannot realize his freedom, the individual cannot realize his individuality, without a certain external economic basis of work and enjoyment, and the best way to furnish him with this is to clothe him in various ways with collective property.

Lassalle's argument, however, is still more specific than this. In the beginning of his "Herr Bastiat-Schultze," he quotes a passage from his previous work on "The System of Acquired Rights," which he informs us he had intended to expand into a systematic treatise on "The Principles of Scientific National Economy." This intention he was actually preparing to fulfil when the Leipzig invitation and letter diverted him at once into practical agitation. He regrets that circumstances had thus not permitted the practical agitation to be preceded by the theoretical codex which should be the basis for it, but adds that the substance of his theory is contained in this polemic against Schultze-Delitzsch, though the form of its exposition is considerably modified by his plan of following the ideas of Schultze's "Working Men's Catechism," and by his purpose of answering Schultze's misplaced taunt of "half knowledge" by trying to extinguish the economic pretensions of the latter as completely as he had done the literary pretensions of Julian Schmidt. "Every line I write," says Lassalle, with a characteristic finality of self-confidence, "I write armed with the whole culture of my century"; and at any rate Schultze-Delitzsch was far his inferior in economic as in other knowledge. In the passage to which I have referred, Lassalle says, "The world is now face to face with a new social question, the question whether, since there is no longer any property in the immediate use of another man, there should still exist property in his mediate exploitation—i.e., whether the free realization and development of one's power and labour should be the exclusive private property of the owner of the instruments and advances necessary for labour—i.e., of capital; and whether the employer as such, and apart from the remuneration of his own intellectual labour of management, should be permitted to have property in the value of other people's labour—i.e., whether he ought to receive what is known as the premium or profit of capital, consisting of the difference between the selling price of the product and the sum of the wages and salaries of all kinds of labour, manual and mental, that have contributed to its production."

His standing-point here, again, as always, belongs to the philosophy of history—to the idea of historical evolution with which his Hegelianism had early penetrated him. The course of legal history has been one of gradual but steady contraction of the sphere of private property in the interests of personal freedom and development. The ancient system of slavery, under which the labourer was the absolute and complete property of his master, was followed by the feudal system of servitudes, under which he was still only partially proprietor of himself, but was bound by law to a particular lord by one or more of a most manifold series of specific services. These systems have been successively abolished. There is no longer property in man or in the use of man. No man can now be either inherited or sold in whole or in part. He is his own, and his power of labour is his own. But he is still far from being in full possession of himself or of his labour. He cannot work without materials to work on and instruments to work with, and for these the modern labourer is more dependent than ever labourer was before on the private owners in whose hands they have accumulated. And the consequence is that under existing industrial arrangements the modern labourer has no more individual property in his labour than the ancient slave had. He is obliged to part with the whole value of his labour, and content himself with bare subsistence in return. It is in this sense that socialist writers maintain property to be theft—not that subjectively the proprietors are thieves, but that objectively, under the exigencies of a system of competition, they cannot help offering workmen, and workmen cannot help accepting, wages far under the true value of their labour. Labour is the source of all wealth, for the value of anything—that which makes it wealth—is, on the economists' own showing, only another name for the amount of labour put into the making of it; and labour is the only ground on which modern opponents of socialism—Thiers and Bastiat, for example—think the right of individual property can be established. Yet on the methods of distribution of wealth that now exist, individual property is not founded on this its only justifiable basis, and the aim of socialists is to emancipate the system of distribution from the influence of certain unconscious forces which, as they allege, at present disturb it, and to bring back individual property for the first time to its natural and rightful foundation—labour. Their aim is not to abolish private property, but to purify it, by means of some systematic social regulation which shall give each man a share more conformable with his personal merit and contribution. Even if no question is raised about the past, it is plain that labour is every day engaged in making more new property. Millions of labouring men are, day after day, converting their own brain, muscle, and sinew into useful commodities, into value, into wealth. Now, the problem of the age, according to Lassalle, is this, whether this unmade property of the future should not become genuine labour property, and its value remain greatly more than at present in the hands that actually produced it.

This, he holds, can only be done by a fundamental reconstruction of the present industrial system, and by new methods of determining the remuneration of the labouring class. For there is a profound contradiction in the present system. It is unprecedentedly communistic in production, and unprecedentedly individualistic in distribution. Now there ought to be as real a joint participation in the product, as there is already a joint participation in the work. Capital must become the servant of labour instead of its master, profits must disappear, industry must be conducted more on the mutual instead of the proprietary principle, and the instruments of production be taken out of private hands and turned into collective or even, it may be, national property. In the old epoch, before 1789, industrial society was governed by the principle of solidarity without freedom; in the period since 1789, by freedom without solidarity, which has been even worse; in the epoch now opening, the principle must be solidarity in freedom.

Partisans of the present system object to any social interference with the distribution of wealth, but they forget how much—how entirely—that distribution is even now effected by social methods. The present arrangement of property, says Lassalle, is, in fact, nothing but an anarchic and unjust socialism. How do you define socialism? he asks. Socialism is a distribution of property by social channels. Now this is the condition of things that exists to-day. There exists, under the guise of individual production, a distribution of property by means of purely objective movements of society. For there is a certain natural solidarity in things as they are, only being under no rational control, it operates as a wild natural force, as a kind of fate destroying all rational freedom and all rational responsibility in economic affairs. In a sense, there never was more solidarity than there is now; there never was so much interdependence. Under the large system of production, masses of workmen are simply so many component parts of a single great machine driven by the judgment or recklessness of an individual capitalist. With modern facilities of inter-communication, too, the trade of the world is one and indivisible. A deficient cotton harvest in America carries distress into thousands of households in Lyons, in Elberfeld, in Manchester. A discovery of gold in Australia raises all prices in Europe. A simple telegram stating that rape prospects are good in Holland instantly deprives the oilworkers of Prussia of half their wages. So far from there being any truth in the contention of Schultze-Delitzsch, that the existing system is the only sound one, because it is founded on the principle of making every man responsible for his own doings, the very opposite is the case. The present system makes every man responsible for what he does not do. In consequence of the unprecedented interconnection of modern industry, the sum of conditions needed to be known for its successful guidance have so immensely increased that rational calculation is scarcely possible, and men are enriched without any merit, and impoverished without any fault. According to Lassalle, in the absence as yet of an adequate system of commercial statistics, the number of known conditions is always much smaller than the number of unknown, and the consequence is, that trade is very much a game of chance. Everything in modern industrial economy is ruled by social connections, by favourable or unfavourable situations and opportunities. Conjunctur is its great Orphic chain. Chance is its Providence—Chance and his sole and equally blind counsellor, Speculation. Every age and condition of society, says Lassalle, tends to develop some phenomenon that more particularly expresses its type and spirit, and the purest type of capitalistic society is the financial speculator. Capital, he maintains, is a historical and not a logical category, and the capitalist is a modern product. He is the development, not of the ancient Crœsus or the mediæval lord, but of the usurer, who has taken their place, but was in their lifetime hardly a respectable person. Crœsus was a very rich man, but he was not a capitalist, for he could do anything with his wealth except capitalize it. The idea of money making money and of capital being self-productive, which Lassalle takes to be the governing idea of the present order of things, was, he says, quite foreign to earlier periods. Industry is now entirely under the control of capitalists speculating for profit. No one now makes things first of all for his own use—as mythologizing economists relate—and then exchanges what is over for the like redundant work of his neighbours. Men make everything first of all, and last of all, for other people's use, and they make it at the direction and expense of a capitalist who is speculating for money, and, in the absence of systematic statistics, is speculating in the dark. Chance and social connections make him rich, chance and social connections bring him to ruin. Capital is not the result of saving, it is the result of Conjunctur; and so are the vicissitudes and crises that have so immensely increased in modern times. What you have now, therefore, says Lassalle, is a system of socialism; wealth is at present distributed by social means, and by nothing else; and all he contends for is, as he says, to substitute a regulated and rational socialism for this anarchic and natural socialism that now exists.