Kautsky himself now admits that there seems to be a revival of genuine capitalistic Liberalism in Germany, which may lead the Liberal parties to become more and more radical and even ultimately to democratize that country—with the powerful aid, of course, of the Social-Democrats. Evidence of this possibility he saw both in the support given by Liberals of all shades to Socialist candidates in many of the second ballots (in the election of 1912) and the fact that Bebel secured the overwhelming majority of Liberal votes as temporary President, while another revolutionary Socialist, Scheidemann, was actually elected by their aid as first temporary Vice President of the Reichstag.

Kautsky asserts cautiously that this denotes a possible revolution in German Liberalism. He again mentions Imperialism as the great issue that forbids even temporary coöperation between Socialists and the most advanced of the Radicals. But he admits that the rapid development of China and other Eastern countries will probably check the profits to be made by Europe and America from their economic development. And after Imperialism begins to wane in popularity among certain of the middle classes, i.e. the salaried and professional classes, he thinks the latter may turn to genuine democratic, though capitalistic, Liberalism.[200]

He reaches this conclusion with some hesitation, however. These new middle classes differ fundamentally from the older middle classes, which were composed chiefly of small farmers, shopkeepers, and artisans. The old middle classes, when they found themselves in a hopeless position, have often joined with the proletariat to bring about revolutions, only to betray it, however, after they had won. The new middle class is most dependent on the large capitalists for favor and promotion, and so is not in the least revolutionary. It does not care to fight with the proletariat until the latter becomes very strong, but when victory seems possible, by a concerted action will be ready, because of its lack of property, to stand steadfastly for Socialism.

The question remains as to when such a Socialist victory will be imminent. Kautsky holds that as soon as Imperialism fails as a propaganda, the ground is ready for Socialism to flourish, and that the new middle class then divides into two parts, one of which remains reactionary, while the other becomes Socialistic (Berliner Vorwaerts, February 25, 1912).

I have shown that after Imperialism, on the contrary, we may expect a temporarily successful Liberal policy based on capitalistic collectivism, and even on complete political democracy, where the small farmers are sufficiently numerous. This view would accord with the latest opinion of Kautsky, except that he expects the new policy to be supported chiefly by the salaried and professional classes. I have proved, on the contrary, that it is to the economic interest also of all those capitalists, whether large or small, who are deeply rooted in the capitalist system and therefore want its evolution to continue. In favor of "State Socialism," therefore, will be found most active trust magnates, the prosperous middle and upper groups of farmers, and those remaining capitalists who either through their economic or through their political position have no cause to be alarmed at the present concentration of capital. Against the collectivist tendency will be all those capitalists who want to compete with trusts, city landlords, and real estate dealers, and financial magnates whose power consists largely in their control over the wealth of inactive large capitalists or small investors.

Kautsky has begun to see that a progressive capitalistic policy may take hold of the professional and salaried classes in Germany; he would probably not deny that in many other countries it is being taken up by certain groups of capitalists also, and that this same tendency may soon be seen in Germany. And when it is, the German Socialists will obviously be less anxious about the fate of much-needed reforms, will find themselves able more frequently to trust these reforms to capitalistic progressives, and will give themselves over more largely than ever to the direct preparation of the masses for the overthrow of capitalist government.

That is to say, the Socialist movement, like all the other forces of individual and social life, becomes more aggressive as it becomes stronger—and it is, indeed, inexplicable how the opposite view has spread among its opponents.

Not only does it seem that the German movement is showing little or no tendency to relax the radical nature of its demands, but it does not appear that its enemies are, for the present at least, to be given the satisfaction of seeing even a minority split off from the main body. That a split may occur in the future is not improbable, but if the movement continues to grow as it has grown, it can afford to lose many minorities, just as it has suffered comparatively little damage from the desertion of several prominent individual figures.

It is true that the division of opinion in the Party might now be sharper but for the artificial unity created by the great fight for a more democratic form of government that lies immediately ahead. If the needed reforms are granted without any very revolutionary proceedings on the part of the Socialists, as similar reforms were granted in Austria, the Party might then conceivably divide into two parts, in which case it is probable that a majority of the four million Socialist voters might go with the anti-revolutionist and reform wing, but it is equally probable that a large majority of the Party members—now nearly a million (including women)—would go with the revolutionists. In case of a split, the reform wing of the party, already in the friendliest relations with the non-Socialist radicals, would doubtless join with them to constitute a very powerful, semidemocratic party, similar to the Radicals and Labourites of Great Britain or the so-called "Socialist Radicals" and "Independent Socialists," who dominate the Parliament of France. Besides a difference in ideals, which counts for little in practical politics,—for nothing, in the extremely opportunist policies of the "reformists,"—the only difference of importance between them is in their attitude towards militarism and war. If peace is firmly established with France, it is difficult to see what can keep the reformers and the "reformists" of Germany much longer apart.