The Common Sense of Socialism / A Series of Letters Addressed to Jonathan Edwards, of Pittsburg

by John Spargo

That is not at all certain, for it is a fact that most of the men who have hoarded their individual savings and then invested them have been ruined and fooled. In the case of our railroads, for example, the great majority of the early investors of savings went bankrupt. They were swallowed up by the bigger fish, Jonathan. But assume it otherwise, assume that the grandfather of some rich man of the present day laid the foundation of the family fortune in the manner described, don't you see that the system of robbing the worker of his product was already established; that you must go back to the beginning of the system?

And when you trace capital back to its origin, my friend, you will always come to war or robbery. You can trace it back to the forcible taking of the land away from the people. When the machine came, bringing with it an industrial revolution, it was by the wealthy and the ruthless that the machine was owned, not by the poor toilers. In other words, my friends, there was simply a continuance of the old rule of a class of overlords, under another name.

If the abstinence theory is foolish, even more foolish is the notion that profits are the reward of managing ability, the wages of superintendence. Under primitive capitalism there was some justification for this view.

It was impossible to deny that the owner of a factory did manage it, that he was the superintendent, entitled as such to some reward. It was easy enough to say that he got a disproportionate share, but who was to decide just what his fair share would be?

But when capitalism developed and became impersonal that idea of the nature of profits was killed. When companies were organized they employed salaried managers, whose salaries were paid before profits were reckoned at all. To-day I can own shares in China and Australia while living all the time in the United States. Even though I have never been to those countries, nor seen the property I am a shareholder in, I shall get my profits just the same. A lunatic may own shares in a thousand companies and, though he is confined in a madhouse, his shares of stock will still bring a profit to his guardians in his name.

When Mr. Rockefeller was summoned to court in Chicago last year, he stated on oath that he could not tell anything about the business of the Standard Oil Company, not having had anything to do with the business for several years past. But he gets his profits just the same, showing how foolish it is to talk of profits as being the reward of managing ability and the wages of superintendence.

Now, Jonathan, I have explained to you pretty fully what Socialism is when considered as a philosophy of social evolution. I have also explained to you what Socialism is when considered as a system of economy. I could sum up both very briefly by saying that Socialism is a philosophy of social evolution which teaches that the great force which has impelled the race onward, determining the rate and direction of social progress, has come from man's tools and the mode of production in general: that we are now living in a period of transition, from capitalism to Socialism, motived by the economic forces of our time. Socialism is a system of economics, also. Its substance may be summed up in a sentence as follows: Labor applied to natural resources is the source of the wealth of capitalistic society, but the greatest part of the wealth produced goes to non-producers, the producers getting only a part, in the form of wages—hence the paradox of wealthy non-producers and penurious producers.

I have explained to you also that Socialism is not a scheme. There remains still to be explained, however, another aspect of Socialism, of more immediate interest and importance and interest. I must try to explain Socialism as an ideal, as a forecast of the future. You want to know, having traced the evolution of society to a point where everything seems to be in transition, where a change seems imminent, just what the nature of that change will be.

I must leave that for another letter, friend Jonathan, for this is over-long already. I shall not try to paint a picture of the future for you, to tell you in detail what that future will be like. I do not know: no man can know. He who pretends to know is either a fool or a knave, my friend. But there are some things which, I believe, we may premise with reasonable certainty These things I want to discuss in my next letter. Meantime, there are lots of things in this letter to think about.

And I want you to think, Jonathan Edwards!