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Carnegie and Mr. Rockefeller, as well as Mr.
Roosevelt, agree to all three of these policies. They are precisely what
the leading Socialists have called "State Socialism."

A part of the working people, also, are disposed to subordinate their
own conceptions of what is just, in spite of their own better judgment,
to an exclusive longing for an immediate trial of this kind of State
benevolence. This is expressed in the widely used phrase, "every man to
have the right to work and live,"--employed editorially, for example, by
Mr. Berger, now Socialist Congressman. What is demanded by this
principle is _not a greater proportion of the national income or an
increasing share of the control over the national government, but the
"State Socialist" remedies, employment, and the minimum wage_. In its
origin this is the begging on the part of the economically lowest
element, a class which Henry George well remarks has been degraded by
poverty until it considers that "the chance to labor is a boon."

Some years ago the municipal platform of the Milwaukee Socialists said
that it must be borne in mind "that the famine-stricken is better
served with a piece of bread than with the most brilliant program of the
future" and that "in view of the hopelessness of an immediate radical
betterment in the position of the working class" it is necessary to
emphasize the importance of attaining "the next best."[71] Here again
was admitted complete dependence on those who own the bread and have the
disposition of "the next best" in political reforms. When capitalism is
a little better organized, the working people will be guaranteed "the
next best": steady work and the food, conditions, and training necessary
to make that work efficient--just as surely as valuable slaves were
given these rights by intelligent masters or as valuable horses even are
given care and kindly treatment to-day.

"A Socialist Social Worker" has published anonymously in the _Survey_ a
letter which presents in a few words the whole Socialist position as to
this type of reform. The writer claims that the very fact that he is a
social worker shows that even as a Socialist he welcomes "every addition
to the standard of living that may be wrested or argued from the
Capitalist class," since all Socialists recognize that "no
undernourished class ever won a fight against economic exploitation, but
that the more is given the more will be demanded and secured." But he
does not feel that the material betterments have any closer relation to

"The new feudalism," he says, "will care for and conserve the powers of
the human industrial tool as the lord of the manor looked after the
human agricultural implement...." Here is the essential point: the
efficiency of the human industrial tool is to be improved with or
without his consent.

"Unrestrained Capitalism," says the same writer in explanation of
his prediction, "has hitherto invariably meant the physical
deterioration of the working class and the marginal disintegration
of society--the loosening of social ties and the pushing of
marginal members of society over the brink into poverty, pauperism,
vagrancy, drunkenness, prostitution, wife desertion and crime, _but
this deterioration is not the main indictment against capitalism_,
and will be remedied by the wiser capitalists themselves. The main
indictment of capitalism is that it selfishly and stupidly blocks
the road of orderly and continuous progress for the race."

The proposal of the social reformers, as far as the workers are
concerned aims to put an end to this deterioration, to standardize
industry or to establish a minimum of wages, leisure, health, and
industrial efficiency. The writer says that the Socialists aim at
something more than this.

"The criterion of social justice in every civilized community," he
writes, "is, and always has been, not how large or how intense is
the misery of the social debtor class, but what is done with the
social surplus of industry? It was formerly used to build pyramids,
to create a landed or ecclesiastical or literary aristocracy, to
conduct wars, or to provide the means of a sensuous life for the
majority of a privileged class, and the means of dilettantism for
the minority of it. _The difference between the near Socialist and
the true Socialist is principally that the main attention of the
former is given to the negative side of the social problem--the
condition of the submerged classes, while that of the latter is
given to the positive side of the problem--the wonderful
development, power, and life that would come to that race and the
individual if a wise and social use were to be made of the surplus
of industry._"


[46] "Fabianism and Empire," p. 62.

[47] Articles by Hyman Strunsky on Welfare Work, _The Coming Nation_,

[48] do, do.

[49] Lloyd George, _op. cit._, p. 93.

[50] Lloyd George, _op. cit._, p. 81.

[51] Winston Churchill, _op. cit._, p. 101.

[52] John A. Hobson, "The Crisis of Liberalism," p. 3.

[53] Professor Simon Patten, The Annals of the American Academy of
Political and Social Science, July, 1908.

[54] Speech of President Hadley before the Brooklyn Institute of Art and
Sciences (1909).

[55] A more democratic and truthful view of the German educational
system is that of Dr. Abraham Flexner (see the _New York Times_, October
1, 1911). He says that the Germans have to solve the following kind of
an educational problem:--

"What sort of educational program can we devise that will subserve all
the various national policies--that will enable Germany to be a great
scientific nation, that will enable it to carry on an aggressive
colonial and industrial policy, and yet not throw us into the arms of
democracy? Their present educational system is their highly effective

"Our problem is a very different one," Dr. Flexner remarks. "Our
historic educational problem has been and is quite independent of any
position we might be able to achieve in the world. That problem has
always been: How can we frame conditions in which individuals can
realize the best that is in them?"

Dr. Flexner is then reported to have quoted the following from a
Springfield Republican editorial:--

"Germany could readily train her masses with a view to industrial
efficiency, whereas our industrial efficiency is only one of the
efficiencies we care about; the American wishes to develop in many other
ways, and to have his educational system help him to do it."

[56] _New York Times_, Nov. 12, 1911.

[57] F. H. Streightoff, "The Standard of Living among the Industrial
People of America."

[58] Interview with Sir Joseph Ward, New York, April 15, 1911.

[59] Winston Churchill, _op. cit._, p. 325.

[60] Winston Churchill, _op. cit._, p. 186.

[61] Winston Churchill, _op. cit._, pp. 240, 243.

[62] Winston Churchill, _op. cit._, pp. 250, 252.

[63] Lloyd George, _op. cit._, pp. 68-69.

[64] Winston Churchill, _op. cit._, p. 197.

[65] Winston Churchill, _op. cit._, p. 197.

[66] The _Outlook_, June, 1911.

[67] Sidney Webb, the _Contemporary Review_ (1908) and "Basis and Policy
of Socialism," pp. 83, 84.

[68] The _Survey_ (New York), 1910, pp. 81-82, 466, 731-732.

[69] H. G. Wells, "First and Last Things," p. 133.

[70] Edmond Kelly, "Twentieth-Century Socialism," p. 314.

[71] _Vorwaerts_ (Milwaukee), Feb. 3, 1898.



So far I have spoken only of the constructive side of the new
capitalism's labor program, its purpose to produce healthy and
industrially efficient laborers so as to increase profits. "State
Socialism" gives the workingman as a citizen certain carefully measured
political rights, and legislates actively in his behalf as a
profit-producing employee at work, but its policy is reversed the moment
it deals with him and his organizations _as owners and sellers of

Towards the individual workers, who are completely powerless either
politically or economically until they are organized, the new capitalism
is, on the whole, both benevolent and actually beneficent. But it does
not propose that organized labor shall obtain a power either in industry
or in government in any way comparable to that of organized capital.

"Successful State Socialism," as Victor S. Clark says in writing of the
Australian experiments, "depends largely upon perfecting public control
over the individual."[72] But compulsory arbitration of labor disputes
which reaches the wage earners' organizations, is far more important to
"State Socialism" than any other form of control over individual. A
considerable measure of individual liberty may be allowed without
endangering this new social polity, and it is even intended
systematically to encourage the more able among the workers by some form
of individual or piece wages--or at least a high degree of
classification of the workers--and by a scheme of promotion that will
utilize the most able in superior positions, and incidentally remove
them out of the way as possible leaders of discontent.

Nor is it intended to use any compulsion on labor organizations beyond
that which is essential to prevent them from securing a power in society
in any way comparable to that of property and capital. For this purpose
compulsory arbitration is the direct and perfect tool. It can be
limited in its application to those industries where the unions really
occupy a position of strategic importance like railroads and coal mines,
and it can be used to attach to the government those employees that are
unable to help themselves. I have mentioned those weaker groups of
employees who would be unable to improve their condition very materially
except by government aid, and, even when so raised to a somewhat higher
level, have no power to harm capitalism. Compulsory arbitration or some
similar device must therefore replace such crudely restrictive and
oppressive measures as have hitherto been applied to the unions.

In the United States all "dangerous" strikes are at present throttled by
court injunctions forbidding the strikers to take any effective action,
and boycotts are held to be forbidden by the Sherman law originally
directed against the "trusts." Recently the Supreme Court decided that
the officers of the American Federation of Labor were not to be
imprisoned for violation of the latter statute.

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Keywords: against, people, program, control, workers, system, american, flexner, policy, better
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