Without, however, leaving the argument here, it must be said that there are various reasons why the socialist prefers State capitalism to private capitalism. It has certain advantages for the general public. It confers certain benefits upon the toilers, chief of all perhaps the regularity of work. And, above and beyond this, State capitalism is actually expropriating private capitalists. The more property the State owns, the fewer will be the number of capitalists to be dealt with, and the easier it will be eventually to introduce socialism. Indeed, to proceed from State capitalism to socialism is little more than the grasp of public powers by the working class, followed by the administrative measures of industrial democracy. All this, of course, has been said before by Engels, part of whose argument I have already quoted. Unfortunately, no syndicalist seems to follow this reasoning or excuse what he considers the terrible crime of extending the domain of the State. Not infrequently his revolutionary philosophy begins with the abolition of the State, and often it ends there. Marx, Engels, and Eccarius, as we know, ridiculed Bakounin's terror of the State; and how many times since have the socialists been compelled to deal with this bugaboo! It rises up in every country from time to time. The anarchist, the anarchist-communist, the Lokalisten, the anarcho-socialist, the young socialist, and the syndicalist have all in their time solemnly come to warn the working class of this insidious enemy. But the workers refuse to be frightened, and in every country, including even Russia, Italy, and France, they have less fear of State ownership of industry than they have of that crushing exploitation which they know to-day.

Even in Germany, where Labriola considers the socialists to be more or less free from the taint of State capitalism, they have from the very beginning voted for State ownership. As early as 1870 the German socialists, upon a resolution presented by Bebel, adopted by a large majority the proposition that the State should retain in its hands the State lands, Church lands, communal lands, the mines, and the railroads.[AD] When adopting the new party program at Erfurt in 1891, the Congress struck out the section directed against State socialism and adopted a number of propositions leading to that end. Again, at Breslau in 1895, the Germans adopted several State-socialist measures. "At this time," says Paul Kampffmeyer, "a proposition of the agrarian commission on the party program, which had a decided State-socialist stamp, was discussed. It contained, among other things, the retaining and the increase of the public land domain; the management of the State and community lands on their own account; the giving of State credit to coöperative societies; the socialization of mortgages, debts, and loans on land; the socialization of chattel and real estate insurance, etc. Bebel agreed to all these State-socialist propositions. He recalled the fact, that the nationalizing of the railroads had been accomplished with the agreement of the social-democracy." [(21)] "That which applies to the railways applies also to the forestry," said Bebel. "Have we any objections to the enlarging of the State forests and thereby the employment of workers and officials? The same thing applies to the mines, the salt industry, road-making, the post office, and the telegraphs. In all of these industries we have hundreds of thousands of dependent people, and yet we do not want to advocate their abolition but rather their extension. In this direction we must break with all our prejudices. We ought only to oppose State industry where it is antagonistic to culture and where it restricts development, as, for instance, is the case in military matters. Indeed, we must even compel the State constantly to take over means of culture, because by that means we will finally put the present State out of joint. And, lastly, even the strongest State power fails in that degree in which the State drives its own officers and workers into opposition to itself, as has occurred in the case of the postal service. The attitude which would refuse to strengthen the power of the State, because this would entrust to it the solution of the problems of culture, smacks of the Manchester school. We must strip off these Manchesterian egg-shells." [(22)]

Wilhelm Liebknecht also dealt with those who opposed the strengthening of the class State. "We are concerned," he said, " ... first of all about the strengthening of the State power. In all similar cases we have decided in favor of practical activity. We allowed funds for the Northeast Sea Canal; we voted for the labor legislation, although the proposed laws did decidedly extend the State power. We are in favor of the State railways, although we have thereby brought about ... the dependence of numerous livings upon the State." [(23)] As early, indeed, as 1881 Liebknecht saw that the present State was preparing the way for socialism. Speaking of the compulsory insurance laws proposed by Bismarck, he refers to such legislation as embodying "in a decisive manner the principle of State regulation of production as opposed to the laissez-faire system of the Manchester school. The right of the State to regulate production supposes the duty of the State to interest itself in labor, and State control of the labor of society leads directly to State organization of the labor of society." [(24)] Further even than this goes Karl Kautsky, who has been called the "acutest observer and thinker of modern socialism." "Among the social organizations in existence to-day," he says, "there is but one that possesses the requisite dimensions, and may be used as the framework for the establishment and development of the socialist commonwealth, and that is the modern State." [(25)]

Without going needlessly far into this subject, it seems safe to conclude that the State is no more terrifying to the modern socialist than it was to Marx and Engels. There is not a socialist party in any country that has not used its power to force the State to undertake collective enterprise. Indeed, all the immediate programs of the various socialist parties advocate the strengthening of the economic power of the State. They are adding more and more to its functions; they are broadening its scope; and they are, without question, vastly increasing its power. But, at the same time, they are democratizing the State. By direct legislation, by a variety of political reforms, and by the power of the great socialist parties themselves, they are really wresting the control of the State from the hands of special privilege. Furthermore—and this is something neither the anarchists nor the syndicalists will see—State socialism is in itself undermining and slowly destroying the class character of the State. According to the view of Marx, the State is to-day "but a committee for managing the common affairs of the whole capitalist class." [(26)] And it is this because the economic power of the capitalist class is supreme. But by the growth of State socialism the economic power of the private capitalists is steadily weakened. The railroads, the mines, the forests, and other great monopolies are taken out of their hands, and, to the extent that this happens, their control over the State itself disappears. Their only power to control the State is their economic power, and, if that were entirely to disappear, the class character of the State would disappear also. "The State is not abolished. It dies out"; to repeat Engels' notable words. "As soon as there is no longer any social class to be held in subjection, ... nothing more remains to be repressed, and a special repressive force, a State, is no longer necessary." [(27)]

The syndicalists are, of course, quite right when they say that State socialism is an attempt to allay popular discontent, but they are quite wrong when they accept this as proof that it must inevitably sidetrack socialism. They overlook the fact that it is always a concession granted grudgingly to the growing power of democracy. It is a point yielded in order to prevent if possible the necessity of making further concessions. Yet history shows that each concession necessitates another, and that State socialism is growing with great rapidity in all countries where the workers have developed powerful political organizations. Even now both friends and opponents see in the growth of State socialism the gradual formation of that transitional stage that leads from capitalism to socialism. The syndicalist and anarchist alone fail to see here any drift toward socialism; they see only a growing tyranny creating a class of favored civil servants, who are divorced from the actual working class. At the same time, they point out that the condition of the toilers for the State has not improved, and that they are exploited as mercilessly by the State as they were formerly exploited by the capitalist. To dispute this would be time ill spent. If it be indeed true, it defeats the argument of the syndicalist. If the State in its capitalism outrageously exploits its servants, tries to prevent them from organizing, and penalizes them for striking, it will only add to the intensity of the working-class revolt. It will aid more and more toward creating a common understanding between the workers for the State and the workers for the private capitalist. In any case, it will accelerate the tendency toward the democratization of the State and, therefore, toward socialism.

As an alternative to this actual evolution toward socialism, the syndicalists propose to force society to put the means of production into the hands of the trade unions. It is perhaps worth pointing out that Owen, Proudhon, Blanc, Lassalle, and Bakounin all advocated what may be called "group socialism." [(28)] This conception of future society contemplates the ownership of the mines by the miners, of the railroads by the railway workers, of the land by the peasants. All the workers in the various industries are to be organized into unions and then brought together in a federation. Several objections are made to this outline of a new society. In the first place, it is artificial. Except for an occasional coöperative undertaking, there is not, nor has there ever been, any tendency toward trade-union ownership of industry. In addition, it is an idea that is to-day an anachronism. It is conceivable that small federated groups might control and conduct countless little industries, but it is not conceivable that groups of "self-governing," "autonomous," and "independent" workmen could, or would, be allowed by a highly industrialized society to direct and manage such vast enterprises as the trusts have built up. If each group is to run industry as it pleases, the Standard Oil workers or the steel workers might menace society in the future as the owners of those monopolies menace it in the present. There is no indication in the literature of the syndicalists, and certainly no promise in a system of completely autonomous groups of producers, of any solution of the vast problems of modern trustified industry. It may be that such ideas corresponded to the state of things represented in early capitalism. But the socialist ideas of the present are the product of a more advanced state of capitalism than Owen, Proudhon, Lassalle, and Bakounin knew, or than the syndicalists of France, Italy, and Spain have yet been forced seriously to deal with. Indeed, it was necessary for Marx to forecast half a century of capitalist development in order to clarify the program of socialism and to emphasize the necessity for that program.

It is a noteworthy and rather startling fact that Sidney and Beatrice Webb had pointed out the economic fallacies of syndicalism before the French Confederation of Labor was founded or Sorel, Berth, and Lagardelle had written a line on the subject. In their "History of Trade Unionism" they tell most interestingly the story of Owen's early trade-union socialism. The book was published in 1894, two or three years before the theories of the French school were born. Nevertheless, their critique of Owenism expresses as succinctly and forcibly as anything yet written the attitude of the socialists toward the economics of modern syndicalism. "Of all Owen's attempts to reduce his socialism to practice," write the Webbs, "this was certainly the very worst. For his short-lived communities there was at least this excuse: that within their own area they were to be perfectly homogeneous little socialist States. There were to be no conflicting sections, and profit-making and competition were to be effectually eliminated. But in 'the Trades Union,' as he conceived it, the mere combination of all the workmen in a trade as coöperative producers no more abolished commercial competition than a combination of all the employers in it as a joint stock company. In effect, his Grand Lodges would have been simply the head offices of huge joint stock companies owning the entire means of production in their industry, and subject to no control by the community as a whole. They would, therefore, have been in a position at any moment to close their ranks and admit fresh generations of workers only as employees at competitive wages instead of as shareholders, thus creating at one stroke a new capitalist class and a new proletariat. [(29)] ... In short, the socialism of Owen led him to propose a practical scheme which was not even socialistic, and which, if it could possibly have been carried out, would have simply arbitrarily redistributed the capital of the country without altering or superseding the capitalist system in the least." [(30)]

Although this "group socialism" would certainly necessitate a Parliament in order to harmonize the conflicting interests of the various productive associations, there is nothing, it appears, that the syndicalist so much abhors. He is never quite done with picturing the burlesque of parliamentarism. While, no doubt, this is a necessary corollary to his antagonism to the State, it is aggravated by the fact that one of the chief ends of a political party is to put its representatives into Parliament. The syndicalist, in ridiculing all parliamentary activity, is at the same time, therefore, endeavoring to prove the folly of political action. That you cannot bring into the world a new social order by merely passing laws is something the syndicalist never wearies of pointing out. Parliamentarism, he likes to repeat, is a new superstition that is weakening the activity and paralyzing the mentality of the working class. "The superstitious belief in parliamentary action," Leone says, " ... ascribes to acts of Parliament the magic power of bringing about new social forces." [(31)] Sorel refers to the same thing as the "belief in the magic influence of departmental authority," [(32)] while Labriola divines that "parties may elect members of Parliament, but they cannot set one machine going, nor can they organize one business undertaking." [(33)] All this reminds one of what Marx himself said in the early fifties. He speaks in "Revolution and Counter-Revolution," a collection of some articles that were originally written for the New York Tribune, of "parliamentary crétinism, a disorder which penetrates its unfortunate victims with the solemn conviction that the whole world, its history and future, are governed and determined by a majority of votes in that particular representative body which has the honor to count them among its members, and that all and everything going on outside the walls of their house—wars, revolutions, railway constructing, colonizing of whole new continents, California gold discoveries, Central American canals, Russian armies, and whatever else may have some little claim to influence upon the destinies of mankind—is nothing compared with the incommensurable events hinging upon the important question, whatever it may be, just at that moment occupying the attention of their honorable house." [(34)]

No one can read this statement of Marx's without realizing its essential truthfulness. But it should not be forgotten that Marx himself believed, and every prominent socialist believes, that the control of the parliaments of the world is essential to any movement that seeks to transform the world. The powerlessness of parliaments may be easily exaggerated. To say that they are incapable of constructive work is to deny innumerable facts of history. Laws have both set up and destroyed industries. The action of parliaments has established gigantic industries. The schools, the roads, the Panama Canal, and a thousand other great operations known to us to-day have been set going by parliaments. Tariff laws make and destroy industries. Prohibition laws have annihilated industries, while legality, which is the peculiar product of parliaments, has everything to do with the ownership of property, of industry, and of the management of capital. For one who is attacking a legal status, who is endeavoring to alter political, juridical, as well as industrial and social relations, the conquering of parliaments is vitally necessary. The socialist recognizes that the parliaments of to-day represent class interests, that, indeed, they are dominated by class interests, and, as such, that they do not seek to change but to conserve what now exists. As a result, there is a parliamentary crétinism, because, in a sense, the dominant elements in Parliament are only managing the affairs of powerful influences outside of Parliament. They are not the guiding hand, but the servile hand, of capitalism.