But the first popularity of the municipal reform movement, both in Great Britain and in other countries, has received at least a temporary setback as the relations between this "municipal Socialism" and taxation were recognized. Both the non-taxpaying working people and the small taxpaying middle class saw that the profits of the new municipal enterprises went to a considerable extent towards decreasing the taxation of the well-to-do instead of conferring benefits on the majority. This might appear strange, since under universal suffrage the non-taxpaying and non-landowning majority would be expected to dominate. But in Great Britain, as well as elsewhere, central governments, in the firm control of taxpayers and landowners, exercise a strict control over the municipalities, so that this kind of reform will prove advantageous chiefly to the landlords, by enabling them to raise rents in proportion to the benefits gained by tenants; and to the taxpaying minority, by making it possible to use the profits of municipal undertakings for the purpose of reducing taxes.
The tendency toward the extension of municipal enterprises to be noted in all the important cities of the world, is hastened by the public belief that there is no other possible means of preventing the exploitation of all classes, and consequent widespread injury to trade, building, and industry in general, by public service corporations. But it must be observed that whatever municipalization there is will continue to be under the control of the taxpayers, landowners, and business men and largely in their interest as long as national governments remain in capitalist hands.
The national social reform administrations that are coming into power in so many countries are encouraging various forms of taxpayers' "municipal Socialism." The ultraconservative governments of Germany, Austria, and Belgium all permit the cities to engage even in the public feeding of school children, while the reactionary national government of Hungary has undertaken to provide for the housing of 25,000 working people at Budapest. The conservative London Daily Mail cries out that the Hungarian minister, Dr. Wekerle has "stolen a march on the Socialists," but that it is the "right sort of Socialism," and that "it has been left to the leader of the privileged Parliament [the Hungarian Parliament representing not the small capitalists, but the landed nobility and gentry] to make the first start." And there is little doubt that both the provision of houses for the working people and the public feeding of school children rest on precisely the same principles as the social reforms now being undertaken by national governments, such as that of Great Britain, and are, indeed, the "right sort of Socialism" from the capitalist standpoint.
Taking the municipal reformer as a type of the so-called Socialist, Mr. Belloc, a prominent Liberal Member of Parliament and an anti-Socialist, says that "in the atmosphere in which he works and as regards the susceptibilities which he fears to offend," that the municipal Socialist is entirely of the capitalist class. "You cannot make revolutions without revolutionaries," he continues, "and anything less revolutionary than your municipal reformer never trod the earth. The very conception is alien to this class of persons; usually he is desperately frightened as well. Yet it is quite certain that so vast a change as Socialism presupposes cannot be carried out without hitting. When one sees it verbally advocated (and in practice shirked) by men who have never hit anything in their lives, and who are even afraid of a scene with a waiter in a restaurant, one is not inclined to believe in the reality of the creed." Mr. Belloc concludes finally that all that this kind of Socialism has done during its moments of greatest activity has tended merely to recognize the capitalist more and more and to stereotype the gulf between him and the other classes.[142]
And just as Mr. Belloc has reproached the Socialists for their conservatism, so the New Age and other mouthpieces of Socialism condemn the non-Socialist radicals who constitute one of the chief elements among the supporters of the present government (including Mr. Belloc) as being too radical. In the literature of the Fabian Society also, the accusation against the Liberals of being too revolutionary is quite frequent. Years ago Mr. Sidney Webb accused them of having "the revolutionary tradition in their bones," of conceiving society as "a struggle of warring interests," and said that they would reform nothing "unless it be done at the expense of their enemies." While this latter accusation is scarcely true, either of the British Liberals or of the revolutionary Socialists of the Continent, it is obvious that the most important reforms of the Socialists, those to which greatest efforts must necessarily be given, those which alone must be fought for, are precisely the ones that must be brought about "at the expense of the enemy."
In no other country has public opinion either within the Socialist movement or outside of it so completely despaired of democracy and the people. In none has the spirit of popular revolt and militant radicalism been so long dormant. Yet, there can be little doubt that the British masses, encouraged by those of France, Germany, and other countries, will one day recover that self-confidence and self-assertion they seem to have lost since the times of the "Levellers" of the Commonwealth, two hundred and fifty years ago. It may take years before this new revolutionary movement gains the momentum it already possesses in Germany and France. But the great strikes of 1910, 1911, and 1912 (see [Part III, Chapter VI]) and the changes in politics that have accompanied these strikes show that this movement has already begun. There is already a strong division of opinion within the Socialistic "Independent Labour Party," and this organization has also taken issue on several important matters with the non-Socialist Labour Party, of which, however, it is still a part.
After the unsatisfactory results of the elections of 1910 the conflict within the Independent Labour Party became more acute than ever. Mr. Barnes, then chairman of the Labour Party itself, and Mr. Keir Hardie, the chief figure in its Socialistic (Independent Labour Party) section, criticized severely the tactics that had been followed by the majority, led also by two members of the same "Socialistic" section, Mr. MacDonald and Mr. Snowden. It is true that the difference was not very fundamental, but it is interesting to note that MacDonald and Snowden and their avowed non-Socialist trade-union allies were accused of giving so much to the Liberals as even to weaken the position of the Labour Party itself to say nothing of the still greater inconsistency of such compromises with anything approaching Socialism. Mr. Barnes and Mr. Hardie pointed out that the timid tactics pursued had endangered not only the fight against the House of Lords, but also the effort to keep down the naval budget and the proposed solution of the unemployment question that was to have acknowledged "the right to work." That is, Mr. MacDonald and Mr. Snowden had been so anxious to please the Liberal government, that they had risked even these moderate reforms, which were favored by many anti-Socialistic Radicals.
At the "Independents'" 1911 conference at Birmingham, again, a motion was proposed by the radical element, Hall, MacLachlan, and others, which demanded that this Party should cease voting perpetually for the government merely because the government claimed that every question required a vote of confidence, and that they should put their own issues in the foreground, and vote on all others according to their merits. This very consistent resolution, in complete accord with the position of Socialist Parties the world over, was however voted down by the "Independents," as it had been shortly previously at the conference of the non-Socialist Labour Party of which they are a section. The executive committee brought in an amendment in the contrary sense to that of the radical resolution, and this amendment was ably supported by MacDonald. Hardie and Barnes, however, persuaded the Congress to vote down both resolution and amendment on the ground that the "Independents" in Parliament ought to support the Liberal and Radical government, except in certain crises—as illustrations of which Barnes mentioned the Labourites' opposition to armaments and their demand for the right to work. Keir Hardie also declared that he was not satisfied with the conduct of the Labour Party in Parliament; his motion condemning the government's action in the Welsh coal strike, for example, had secured only seventeen of their forty votes. He claimed that the influence of the Liberals over the party was due, not to their social reform program, but to their passing of the trade-union law permitting picketing after the elections of 1906, and that he feared them more than he did the Conservatives. However, he thought that this Liberal influence was now on the decline, and said that if the Liberals attempted to strengthen the House of Lords, as suggested in the preamble to their resolution, abolishing its veto power, the Labour Party would be ready to vote against the government.
The Labourites did, as a matter of fact, vote against this preamble, and the government was saved only because Balfour and the Conservatives lent it their support. It still remains to be seen if the Labourites will detach themselves from the Liberals on a really crucial question, one on which they know the Conservatives will remain in the opposition—in other words, whether they will do the only thing that can possibly show any real independence or make them a factor of first importance in the nation's politics, that is, overturn a government. Doubtless this day will come, but it does not seem to be at hand.
This discussion was much intensified by the decision of the executive of the Labour Party (in order to retain the legal right to use trade-union funds for political purposes) to relieve Labour members of Parliament of their pledge to follow a common policy. This decision again was opposed by the majority of the "Independent" section including Hardie and Barnes, but favored by a minority, led by MacDonald. With the aid of the non-Socialistic element, however, it was carried by a large majority at the Labour Party's conference in 1911. Thus while one element is growing more radical another is growing more conservative and the breach between the Independents and the other Labourites is widening.