These proposals, such as developed particularly by Däumig, theoretician of the Independents, may be summed up as follows:
A parliamentary system—the proof is at hand—is powerless to bring about the triumph of social democracy. The revolution throughout the world, if it is to win quickly—and it must win quickly, for the proletariat can no longer wait—cannot achieve its aims except by other methods. As in Russia in 1905 and in 1917, so in Germany the necessary change can be only the product of Workers Councils. It is only within the Councils that the union of the proletariat is possible. Only the Councils assure the co-operation of manual and of intellectual workers, which Russia had not been able as yet to realize but which should be and can be accomplished. The system of Councils in its final aspect realizes the most perfect form of democracy, for it gives political and economic equality to all its citizens. While waiting its ultimate triumph, however, it may be necessary to proclaim the dictatorship of the proletariat; but this dictatorship will not be any heavier than that which is borne by the proletariat itself. It will last if necessary till the complete fusion of social classes does away with the class struggle, till the advent of integral socialism.
Therefore, all power to the Councils! No division of influence, no juxtaposition of political assemblies and economic councils! The Councils are an indispensable instrument to substitute permanently a socialist for a capitalist régime. That is to say, they should fulfil two series of functions: political and economic. Politically the Councils system unites in the same organism both parliament and administration, thus rendering possible that constant control of administration which the parliamentary régime is incapable of exercising, and maintaining a permanent supervision of the elected by the electors. Economically the Councils watch over the execution of socialization measures; later they become the regulators of production and consumption.
To this duality of functions there corresponds a double organization. The political system rests on Workers Councils properly so called (Arbeiterräte); the economic system rests on Factory Workers Councils (Betriebsräte).
In each commune, workers, employés, and peasants, organized as much as possible in vocational groups, elect worker councillors, one for every 1,000 electors. These councillors have as their task, while awaiting the final organization of the system of Councils, the control of municipal administration. Their delegates constitute Local Councils (Kreisarbeiterräte); the delegates of the latter, in turn, make up District Councils (Bezirksräte). In addition, so long as the German Republic is still not united, there will sit in the capital of each state a Central Council (Landeszentralrat). These different organizations are respectively charged with the control of administration of each degree of the hierarchy. At the summit of the edifice, finally, sits the Congress of Councils, which controls all political power, and whose meetings must take place at least every three months. This congress elects a Central Council (Zentralrat) which appoints and controls the Commissars of the People. It is in a word a copy of the Russian system.
Parallel to this political organization, there is created in each factory, shop, etc., a Factory Workers Council (Betriebsrat), elected by the workers and employés in the proportion of one delegate to 100 electors. Small factories and rural enterprises are grouped so as to form electoral units; the same with the professions. The Factory Workers Councils are charged with the defence of the interests of the personnel, and with the control of the enterprises in which they are employed. They co-operate in the application of measures for socialization. But their action, limited to the factory or the shop, cannot pretend to embrace all the problems of production. Germany is divided, therefore, into a certain number of economic districts (Wirtschaftsbezirke). In each of these districts the Factory Workers Councils of each branch of industry and of commerce designate a Council of Groups of this district (Bezirksgrupenrat). All the Councils of Groups in the same district designate delegates whose assembly constitutes the Economic Council of that district (Bezirkswirtschaftsrat). In the same way the district Councils of Groups of each branch of industry elect for the whole Reich a Council of Groups of the Reich (Reichswirtschaftsrat), to which is entrusted the general supervision of economic life, and which, in accord with the Central Council, determines during the transitional period the necessary measures for the maintenance of production and the application of the laws for socialization. The Economic Councils of the districts and the National Council may add to themselves, if they deem fit, experts, economists, etc.
The whole system, so simple theoretically, rests on the elections of workers as councillors in the Workers Councils and in the Factory Workers Councils. The composition of the electoral body therefore takes on a particular importance. The fundamental principle, in which Däumig and his friends would tolerate no diminution, was that no employer as such could take part in the system. Only employés are eligible as electors. An exception is made in favour of peasants “who do not permanently employ farm hands.” A second axiom stipulates that those elected must remain under the constant control of the electors. The electoral body is therefore free to recall them whenever it seems desirable to it. In any event a worker councillor must not remain such for more than twelve months. He must stay a worker and not become a functionary.
Such is the organization that the Independents and the Communists proposed. In itself lies the proof that it is contrary to the democratic principle; for only part of the nation, manual and intellectual workers, employés, the proletariat would have the right to direct public affairs. And this consideration, without counting all the other criticisms that may be made against the system, such as at least the present incompetence of workers to govern, the necessary establishment of a reign of terror, etc., has grouped against it not only the bourgeois parties but also all the Social Democrats, who depend for the triumph of the socialist idea on democratic and parliamentary means. “I do not wish to dwell long on the study of the question of ‘the dictatorship of Workers Councils versus democracy,’” said one of the Social Democratic drafters of the Constitution. “It is sufficient for me to show that this dictatorship is in contradiction to democracy, that we must choose between dictatorship by a minority on the one hand, and democracy or government by the majority on the other. The Committee on the Constitution has declared in favour of democracy, control by the great majority of the people. The idea, therefore, of a dictatorship by the Councils is rejected.” (Sinzheimer in the session of July 21, 1919, of the Assembly; see Heilfron, op. cit., vol. vi, p. 4265.) From the side of the Democrats came the criticism, “Those who demand all power for the Councils, who want to place between the hands of the Councils all administration and all legislation are so indefinite as to the means of realizing their demands, that it astonishes one … that a programme, so little developed, can be put forward without the least explanation of how it is to be realized.… We reject the granting of political right to the Councils. We reject above all the dictatorship of a class that is at the base of these Councils, emphatically and unconditionally.… We reject also the Councils as organs of control. The idea of organizing the Councils as a new assembly of control, side by side with each assembly already in existence, seems to us incompatible with democracy.” (Erkelenz, session of the National Assembly, July 21, 1919. See Heilfron, op. cit., vol. vi, p. 4236-4328.)
The Councils System was, therefore, rejected by the National Assembly. It must be observed, however, that it did not remain the mere formula of isolated theoreticians. The organizations of the Councils, in line with the plan we have just pointed out, was put forward as the programme of all the Independents and the Communists, and, as we will see, these two parties succeeded in casting 5,337,712 votes in the elections of June 6, 1920, sending 83 deputies to the Reichstag.