Nothing systematic, however, has as yet been achieved. The ground is new. Surprised by the Revolution, the theoreticians of new systems have not yet fixed their schemes nor elaborated complete and coherent plans. On the other hand, the majority of the National Assembly is formed by a coalition of parties whose economic conceptions differ still more than do their political conceptions. This lack of definiteness and these differences endanger all effective realization of a solution. But the necessity of reforms has made itself imperatively felt and economic difficulties are so grave and menacing that they cannot wait indefinitely for solution. Further, there are very many people who are restive and who do not hesitate to resort to general strikes and even to revolts, when governments hesitate too long in effecting a reform from which they hope an amelioration of their lot. That is why one will look in vain for a plan as a whole or a logical order in the provisions we are about to study. Most of them were adopted by an assembly uncertain of the work it should do, one which went about its tasks most hurriedly and obeyed the pressure of external forces more powerful than itself.

SECTION I
THE ECONOMIC CONSTITUTION

The Economic Constitution rests wholly on the idea of the Councils. It is recalled[57] that the system of the Councils, even under the parity principle which the supporters of the Vocational Parliament wished to give it, was left out of the political Constitution but is included in the Economic Constitution, for which it forms the framework.

1.—THE “ANCHORAGE” OF THE COUNCILS IN THE CONSTITUTION.

Before the Revolution, said the Socialists and Trade Unionists, there was in Germany neither political autonomy nor economic autonomy. Just as in their political life the people were governed by a coterie of junkers and bureaucrats, so in their economic life the people were under the absolute domination of the entrepreneur. This autocracy of the capitalists expressed itself legally in the fact that the conditions of work were fixed solely by the employers. The omnipotence of the latter was, however, modified by the collective bargains concluded between them and the trade unions. While it is true that these agreements or bargains did not have legal guarantees, nevertheless thanks to the existence of workingmen’s organizations there was instituted by means of these agreements a contractual and coequal workingmen’s right.

The Revolution of 1918 introduced in Germany political democracy. The republican government in its establishment has even taken several steps along the road of economic democracy. Reforms, such as the granting of complete liberty of organization, the abolition of ordinances on wages and exceptional laws against agricultural labourers, and the protection of workers and salaried employés against arbitrary discharge, certainly mark interesting progress.

But the Socialists, followed on this point by the National Assembly, held that these reforms were only preparatory in character. True economic democracy can not content itself with the mere recognition of workers’ organizations and collective bargaining. Economic democracy cannot be established and therefore economic and social transformation cannot be effected, unless the working class can exercise on production the influence that is its due. There must be provided an organization that accords the workers the right to participate actively in the determination of the ends and of the duties of the vocation and the enterprise; which makes of the workers co-operators with the capitalist. There must be in every district, in the states and in the Reich an economic representation created, in which workers and employés will be represented by the side of their employers, and in which, on a footing of equality, they will be called upon to co-operate in the regulation of all economic questions. Such is the thesis; and all efforts and struggles which we shall observe, centred about the problem of according to the working class the right of codecision (Mitbestimmungsrecht); and about the problem of organizing this right. But so far nothing has been done beyond the statement of some indefinite principles and the roughing out of the first measures of their realization.

These problems were not new. Already before the war the law of 1891 provided for “Committees of Workers” in the factories, who could be consulted on the provisions of factory regulations; but as the formation of these committees depended entirely on the good-will of the employers, the workers looked with little sympathy on this institution. In fact, such committees existed in several thousand factories, but their activity was limited to the administration of the income from fines and the institution of welfare work.

During the war the rôle of the workers increased considerably in importance. The laws for compulsory patriotic service which took away from them the liberty of work owed them compensation. There were established therefore in all enterprises where there were more than fifty employed, “committees of workers,” which were elected by all the workers and had definite functions. There were in addition “joint arbitration committees,” where conflicts between employers and employés were settled. “Committees on decisions” also existed, charged with ruling on other questions raised by the law for patriotic service. These different organisms at once assumed an important place in the economic life.

On the advent of the Revolution the unions easily obtained some reforms for which they had fought for a long time, and which constituted their immediate claims.