The savings of communities—if I may use the word community to express any Social Democratic unit from the parish to the nation—would probably take much the same form that the accumulation of capital takes nowadays: that is to say, they would consist partly of mills, machinery, railways, schools, and the other specialised materials of future industry, and partly of a stock of commodities such as food, clothing, and money, by which workers might be supported while performing work not immediately remunerative. The savings of individuals would consist partly of consumable commodities or of the means of such industry as had not been socialised, and partly of deferred pay for services rendered to the community, such pay taking the form of a pension due at a certain age, or of a sum of commodities or money payable on demand.
Voluntary associations of all kinds, whether joint-stock companies, religious corporations, or communistic groups would, in the eyes of the Social Democratic State, consist simply of so many individuals possessing those rights of property which are allowed to individuals. They might perform many very useful functions in the future as in the past; but the history of the city companies, of the New River company, the Rochdale Pioneers, or the Church of England shows the danger of granting perpetual property rights to any association not co-extensive with the community, although such association may exist for professedly philanthropic objects. Even in the case of universities, where the system of independent property-owning corporations has been found to work best, the rights of the State should be delegated and not surrendered.
On this point the economic position of modern Social Democrats differs widely from the transfigured joint stockism of the present co-operative movement or from the object of the earlier Socialists, for whose purposes complete community was always more important than complete inclusiveness. Even Socialist writers of to-day do not always see that the grouping of the citizens for the purpose of property holding must be either on the joint-stock basis or on the territorial basis. Gronlund, in spite of contradictory matter in other parts of his “Co-operative Commonwealth,” still declares that “each group of workers will have the power of distributing among themselves the whole exchange value of their work,” which either means that they will, as long as they are working, be the absolute joint owners of the materials which they use, or means nothing at all. Now the proposal that any voluntary association of citizens should hold absolute and perpetual property rights in the means of production, seems to be not a step towards Social Democracy, but a negation of the whole Social Democratic idea. This of course brings us to the following difficulty. If our communities even when originally inclusive of the whole population are closed: that is, are confined to original members and their descendants, new comers will form a class like the plebians in Rome, or the “metoeci” in Athens, without a share in the common property though possessed of full personal freedom; and such a class must be a continual social danger. On the other hand, if all newcomers receive at once full economic rights, then any country in which Socialism or anything approaching it is established, will be at once over-run by proletarian immigrants, from those countries in which the means of production are still strictly monopolised. If this were allowed, then, through the operation of the law of diminishing return and the law of population based on it, the whole body of the inhabitants even of a Socialist State, might conceivably be finally brought down to the bare means of subsistence. It does not seem necessary to conclude that Socialism must be established over the whole globe if it is to be established anywhere. What is necessary is that we face the fact, every day becoming plainer, that any determined attempt to raise the condition of the proletariat in any single European country must be accompanied by a law of aliens considerate enough to avoid cruelty to refugees, or obstruction to those whose presence would raise our intellectual or industrial average, but stringent enough to exclude the unhappy “diluvies gentium,” the human rubbish which the military empires of the continent are so ready to shoot upon any open space. Such a law would be in itself an evil. It might be unfairly administered; it might increase national selfishness and would probably endanger international good will; it would require the drawing of a great many very difficult lines of distinction; but no sufficient argument has been yet advanced to disprove the necessity of it.
On the question of private property in debts, the attitude of the law in Europe has changed fundamentally in historical times. Under the old Roman law, the creditor became the absolute owner of his debtor. Nowadays, not only may a man by becoming bankrupt and surrendering all his visible property, repudiate his debts and yet retain his personal liberty; but in Factory Acts, Employers’ Liability Acts, Irish Land Acts, etc., certain contracts are illegal under all circumstances. With the growth of Socialism, this tendency would be quickened. The law would look with extreme jealously upon any agreement by which one party would be reduced even for a time to a condition of slavery, or the other enabled to live even for a time without performing any useful social function. And since it has been clearly recognised that a certain access to the means of industry is a first condition of personal freedom, the law would refuse to recognise any agreement to debar a man from such access, or deprive him of the results of it. No one would need to get into debt in order to provide himself with the opportunity of work, nor would anyone be allowed to give up the opportunity of work in order to obtain a loan. This, by making it more difficult for creditors to recover debts, would also make it more difficult for would-be debtors to obtain credit. The present homestead law would, in fact, be extended to include everything which the State thought necessary for a complete life. But as long as private industry and exchange go on to such an extent as to make a private commercial system convenient, so long will promises to pay circulate, and, if necessary, be legally enforced under the conditions above marked out.
To whatever extent private property is permitted, to that same extent the private taking of Rent and Interest must be also permitted. If you allow a selfish man to own a picture by Raphael, he will lock it up in his own room unless you let him charge something for the privilege of looking at it. Such a charge is at once Interest. If we wish all Raphael’s pictures to be freely accessible to everyone, we must prevent men not merely from exhibiting them for payment, but from owning them.
This argument applies to other things besides Raphael’s pictures. If we allow a man to own a printing press, or a plough, or a set of bookbinders’ tools, or a lease of a house or farm, we must allow him so to employ his possession that he may, without injuring his neighbor, get from it the greatest possible advantage. Otherwise, seeing that the community is not responsible for its intelligent use, any interference on the part of the community may well result in no intelligent use being made of it at all; in which event all privately owned materials of industry not actually being used by their owners would be as entirely wasted as if they were the subjects of a chancery suit. It is easy to see that the Duke of Bedford is robbing the community of the rent of Covent Garden. It is not so easy to see that the owners of the vacant land adjoining Shaftesbury Avenue have been robbing the community for some years past of the rent which ought to have been made out of the sites which they have left desolate. I know that it has been sometimes said by Socialists: “Let us allow the manufacturer to keep his mill and the Duke of Argyle to keep his land, as long as they do not use them for exploitation by letting them out to others on condition of receiving a part of the wealth created by those others.” Then, we are told, the manufacturer or Duke will soon discover that he must work hard for a living. Such sentiments are seldom ill received by men in the humor to see dukes and capitalists earning, as painfully as may be, their daily bread. Unluckily, there are no unappropriated acres and factory sites in England sufficiently advantageous to be used as efficient substitutes for those upon which private property has fastened; and the community would be wise if it paid the Duke of Argyle and Mr. Chamberlain anything short of the full economic rent of their properties rather than go further and fare worse. Therefore, if we refused either to allow these gentlemen to let their property to those who would use it, or hesitated to take it and use it for ourselves, we should be actually wasting labor. The progressive socialisation of land and capital must proceed by direct transference of them to the community through taxation of rent and interest and public organisation of labor with the capital so obtained; not solely by a series of restrictions upon their use in private exploitation. Such concurrent private exploitation, however unrestricted, could not in any case bring back the old evils of capitalism; for any change in the habits of the people or in the methods of industry which made associated production of any commodity on a large scale convenient and profitable, would result at once in the taking over of that industry by the State exactly as the same conditions now in America result at once in the formation of a ring.
It is because full ownership is necessary to the most intelligent and effective use of any materials, that no mere system of taxation of Rent and Interest, even when so drastic as Mr. Henry George’s scheme of universal State absentee landlordism, is likely to exist except as a transition stage towards Social Democracy. Indeed the anarchist idea which allows the State to receive Rent and Interest, but forbids it to employ labor, is obviously impracticable. Unless we are willing to pay every citizen in hard cash a share of the State Rent of the future, it, like the taxes of to-day, must be wholly invested in payments for work done. It would always be a very serious difficulty for a Socialist legislature to decide how far communities should be allowed to incur debts or pay interest. Socialism once established, the chief danger to its stability would be just at this point. We all know the inept attack on Socialism which comes from a debating-society orator who considers the subject for the first time, or from the cultured person who has been brought up on the Saturday Review. He tells us that if property were equally divided to-morrow, there would be for the next ten years forty men out of every hundred working extremely hard, and the other sixty lazy. After that time, the sixty would have to work hard and keep the forty, who would then be as lazy as the sixty were before. It is very easy to explain that we do not want to divide all property equally; but it is not so easy to guard against any result of that tendency in human nature on which the argument is grounded. Men differ so widely in their comparative appreciation of present and future pleasures, that wherever life can be supported by four hours’ work a day, there will always be some men anxious to work eight hours in order to secure future benefits for themselves or their children, and others anxious to avoid their four hours’ work for the present by pledging themselves or their children to any degree of future privation. As long as this is so, communities as well as individuals will be tempted to avail themselves of the freely offered services of the exceptionally energetic and farsighted, and to incur a common debt under the excuse that they are spreading the payment of such services over all those benefited by them. The municipalities, Boards of Works, School Boards, etc., of England have already created enormous local debts; and unless men grow wiser in the next few months the new County Councils will probably add to the burden. As we sit and think, it may seem easy to prevent any such trouble in the future by a law forbidding communities to incur debts under any circumstances. But in the case of a central and supreme government such a law would, of course, be an absurdity. No nation can escape a national debt or any other calamity if the majority in that nation desire to submit to it. It is reassuring to see how the feeling that national governments should pay their way from year to year grows stronger and stronger. National debts no longer even in France go up with the old light-hearted leaps and bounds. But local debts still increase. In Preston the local debt is said to amount to seven times the annual rating valuation. And although at present (November, 1888), since the “surf at the edge of civilisation” is only thundering to the extent of three small colonial wars, our own national debt is slowly going down; still if war were declared to-morrow with any European State no ministry would dare to raise all the war expenses by immediate taxation either on incomes or on property. It may be objected that no such danger would arise under Socialism; for there would be no fund from which a loan could be offered that would not be equally easily reached by a direct levy. But if we are speaking of society in the near future there would certainly be plenty of members of non-Socialist States, or English holders of property in them, ready to lend money on good security to a timid or desperate or dishonest Socialist government. Again, in times of extreme stress a government might believe itself to require even personal possessions; and it might be difficult under such circumstances not to offer to restore them with or without interest. In any case there would be no more economic difference between the new fund-holders and the old landlords than between Lord Salisbury as owner of the Strand district and Lord Salisbury now that he has sold his slums and bought consols. Perhaps the most serious danger of the creation of a common debt would arise from the earnings of exceptional ability. Modern Socialists have learnt, after a long series of co-operative experiments and failures, that the profits of private adventure will withdraw men of exceptional business talent from communal service unless work of varying scarcity and intensity is paid for at varying rates. How great this variation need be in order to ensure full efficiency can only be decided by experience, and as the education and moralisation of society improves, and industry becomes so thoroughly socialised that the alternative of private enterprise will be less practicable, something like equality may at last be found possible. But, meanwhile, comparatively large incomes will be earned by men leading busy and useful lives, but often keenly anxious to secure leisure and comfort for their old age and aggrandisement for their family.[71] I have already suggested that some of the earnings of a man employed by the community might be left for a time in the common treasury to accumulate without interest. Now, it would suit both these men and the lazier of their contemporaries that the reward of their services should be fixed at a very high rate, and be left to the next generation for payment; while the next generation might prefer a small permanent charge to any attempt to pay off the capital sum. It is often hinted that one way to obviate this would be for each generation to cultivate a healthy indifference to the debts incurred on its behalf by its forefathers. But the citizens of each new generation attain citizenship not in large bodies at long intervals, but in small numbers every week. One has only to warn sanguine lenders that veiled repudiations may always be effected in such emergencies by a judicious application of the Income Tax, and to hope that the progress of education under Socialism would tend to produce and preserve on such matters a certain general minimum of common sense. If this minimum is sufficient to control the central government the debts of local bodies can be easily and sternly restricted.
Property in services means of course property in future services. The wealth which past services may have produced can be exchanged or owned; but the services themselves cannot. Now all systems of law which we know have allowed private persons to contract with each other for the future performance of certain services, and have punished, or allowed to be punished, the breach of such contracts. Here as in the case of debts, our growing respect for personal liberty has made the law look jealously on all onerous agreements made either by the citizen himself or for him by others. In fact, as Professor Sidgwick points out: “In England hardly any engagement to render personal service gives the promisee a legal claim to more than pecuniary damages—to put it otherwise, almost all such contracts, if unfulfilled, turn into mere debts of money so far as their legal force goes.”[72] The marriage contract forms the principal exception to this rule; but even in this case there seems to be a tendency in most European countries to relax the rigidity of the law.
On the other hand the direct claims of the State to the services of its citizens shew at present no signs of diminishing. Compulsory military service and compulsory attendance at school already take up a not inconsiderable share of the life of every male inhabitant of France and Germany. So far in England the compulsion of grown men to serve in any capacity has been condemned for a century past, because it is considered wasteful and oppressive as compared with the free contract system of the open market. Most English Socialists seem inclined to believe that all work for the State should be voluntarily engaged and paid for out of the produce of common industry.
In considering how far the State has a claim upon the services of its members, we come upon the much larger question—How far are we working for Socialism; and how far for Communism? Under pure Socialism, to use the word in its narrowest sense, the State would offer no advantage at all to any citizen except at a price sufficient to pay all the expenses of producing it. In this sense the Post Office, for example, is now a purely Socialistic institution. Under such conditions the State would have no claim at all on the services of its members; and compulsion to work would be produced by the fact that if a man chose not to work he would be in danger of starvation. Under pure Communism, on the other hand, as defined by Louis Blanc’s dictum: “From every man according to his powers; to every man according to his wants,” the State would satisfy without stint and without price all the reasonable wants of any citizen. Our present drinking fountains are examples of the numerous cases of pure communism which surround us. But since nothing can be made without labor, the commodities provided by the State must be produced by the services, voluntary or forced, of the citizens. Under pure communism, if any compulsion to work were needed, it would have to be direct. Some communistic institutions we must have; and as a matter of fact there is an increasing number of them already in England. Indeed, if the whole or any part of that Rent Fund which is due to the difference between the best and worst materials of industry in use be taken for the State, by taxation or otherwise, it, or rather the advantages produced by its expenditure, can hardly be distributed otherwise than communistically. For, as men are now, saturated with immoral principles by our commercial system, the State would have to be exceedingly careful in deciding what wants could be freely satisfied without making direct compulsion to labor necessary. It would cost by no means an impossible sum to supply a tolerable shelter with a bed, and a sufficient daily portion of porridge, or bread and cheese, or even of gin and water, to each citizen; but no sane man would propose to do so in the existing state of public morals. For more than a century the proletarians of Europe have been challenged by their masters to do as little work as they can. They have been taught by the practical economists of the Trades Unions, and have learnt for themselves by bitter experience, that every time any of them in a moment of ambition or goodwill does one stroke of work not in his bond, he is increasing the future unpaid labor not only of himself but of his fellows. At the same time every circumstance of monotony, ugliness, and anxiety has made the work as wearisome and disgusting as possible. All, almost without exception, now look upon the working day as a period of slavery, and find such happiness as they can get only in a few hours or minutes that intervene between work and sleep. For a few, that happiness consists in added toil of thought and speech in the cause of themselves and their comrades. The rest care only for such rough pleasures as are possible to men both poor and over-worked. There would be plenty of excuse if under these circumstances they dreamt, as they are accused of dreaming, of some universal division of the good things of the earth—of some means of being utterly at leisure, if only for a week or two.