Section Ii.--_of Private Capital_.

1. Reverting to a former section (c. v., s. v., nn. 1-5, p. 255) we lay down this distinction: Goods held for their use value are consumer's wealth: goods held for their market value are producer's wealth, otherwise called capital. Capital then is that wealth which a man holds for the purpose of gaining further wealth by means of commercial exchange. It is represented by the razors that are made, not to mow the manly beard, or youthful moustache, of the maker, but, as the Yorkshire vendor put it, "to sell."

2. Those economists who would allow no private ownership of capital, but would have all capital to be State property, are called Socialists. They stand distinctly apart from the Communists, whom we have been labouring to refute in the last section. The Communist forbids all private property: the Socialist allows private property, but in the shape of consumer's wealth alone. The Communist ignores the necessity of labour: the Socialist schemes to make all men work. The Communist contemplates a hand-to-mouth dispensation of all things: the Socialist locks all things up, wages in private coffers, capital in government stores. The Communist is a madman: the speculations of the Socialist are sometimes deep.

3. To what are we to attribute the rise of Socialism, and its growth and propagation so fast and vigorous, that, its supporters say with some colour of evidence, it is a theory destined within a measurable space of time to pass into actual practice, whether men will or no? The cause is not far to seek. There has lighted a plague upon all civilized countries, an outbreak fearful and severe: only by the great blessing of Providence, joined to drastic remedial measures on our part, can we cope with the evil. The plague is a cancerous formation of luxury growing out of a root of pauperism. It is a disease old as the world, but the increase of commerce and intercommunication has occasioned its bursting upon our generation in a peculiarly virulent form. And what is more, ours being a talking age, the disease is made the staple of speeches infinite, and the masses are clamouring for a remedy. The remedy proposed is Socialism.

4. Socialism in its essence is an attempt to transfer to the State, governed by universal suffrage, the wealth, and with the wealth the social duties, of what have hitherto been the wealthy and governing classes. It is not enough for the multitude that they are getting the political power out of the hands of the landlord and the capitalist: they envy the one his broad acres, and the other his investments. All must be theirs, sovereignty and wealth alike. If wealth has its duties, the people collectively with cheerful acceptance will undertake those duties. "It shall be ours, not only to be king, but to be employer, patron, landlord, educator. We will assign to the workman his wages, just and ample and perennial: we will adjust production to demand: we will be the restorers of agriculture: we will monopolise the carrying-trade: we alone will sell whatever shall be sold: we will wash the workman in public baths: his taste shall be elevated by our statues and pictures, our theatres, our music-halls, and our churches; we will gratify his curiosity with our news-agencies, feed his thought with our popular philosophy, educate his children as our own in our primary and secondary schools. Furthermore, we will provide the long desiderated career open to talents. The stupid boy, though his father was our Prime Minister, shall be made a cabin-boy, or a scavenger's assistant, an awful example to young gentlemen who fail to pass the Government examinations: while we will pick up, not the gutter child, for there shall be no more children in gutters, but the son of the woman at the mill, and testing him and assigning his career, first by school examinations, and then by his official performances, we will make him in time Poet Laureate or President of the Board of Trade, according to the bent of his genius." The astonished workman turns round upon the exhibitors of this fairy vision: "And pray who are You?" "Oh, you, we, the people, all of us together. Come put your shoulder to the wheel, and up goes our enterprise. Or rather our first motion is downwards: down with landlords and cotton-lords and lords of parliament, down with contractors and stock-jobbers and all who live on the interest of their money, and then our honourable multitude will possess and administer and govern."

5. If angels are to hold the collective ownership of capital and the government of men in the Socialist Commonwealth; or if every citizen, retaining in his private capacity all the follies and vices that human flesh is heir to, shall still be vested in angelic attributes, whenever he sits as legislator or judge, or acts on the executive of a Socialist commission,--then this new Commonwealth is likely to prove a blessed substitute for the rule of the higher classes, which in one way or another has hitherto obtained in civilized society. But till angelic attributes descend on earth, we shall not find a cure for the evils of cities and countries in simply doubling the functions of government, and placing all sovereign rights, and all the most important of proprietory rights and duties, in the hands of a numerical majority.

6. Capital, as we have seen, is a collection of market or exchange values in view of further exchange. If we call supply S and demand D, market value is a social estimate of the fraction D/S. Another definition has been given: Market value is a social estimate of the amount of socially useful labour which a given article contains. This second definition contains this much of truth in it, that directly as the demand for an article, and inversely as the supply of the same, is the amount of labour which men find it worth their while to spend upon that article for commercial purposes. Otherwise the definition is unsatisfactory and involved, and leads to endless discussion. Without entering into these discussions, we will remark an ambiguity in the term on which they all roll, the term labour, which ambiguity is at the bottom of three fourths of the sophistries of popular Socialism.

7. There were two pillars put at the entrance of Solomon's temple, one on the right hand and the other on the left: that which was on the right hand he called, according to the Septuagint, Direction, [Greek: katorthosis], and that on the left hand, Strength, [Greek: ischus]. (2 Par. iii. 17.) Further we are told that Solomon set seventy thousand men to carry burdens on their shoulders, and eighty thousand to hew stones in the mountains, and three thousand six hundred to be overseers of the work of the people. (2 Par. ii. 18.) The history is manifest. Strength and Direction build the Temple: Strength, or Manual Labour, represented by the hodmen and quarrymen, and the rest of the "hands:" Direction, or Mental Labour, represented by the overseers. Yet not by them alone: surely we must count in as doers of mental labour the designer of the Temple, or at least of its decorations, that "most wise and skilful man, my father Hiram;" and still more King Solomon himself and David, the two royal minds that originated and perfected the idea; and David's generals, Joab and Banaias, who secured the peace that was necessary as a condition of the building; and innumerable other men of place and power in the nation, but for whose thought and prudence the strength of the workman would have been thrown away like a river poured out in the Libyan desert. From this example, eked out with a little thought of his own, the reader may estimate the wisdom and credit of those who tell factory hands that it is their labour which produces all the wealth of their employer, and that, in the day when every man shall receive his due, the employer shall be made a workmen like themselves, and his wealth shall go to the increase of their common wages.

8. Certainly, it will be said, the employer should be paid for his mental labour, but why at so enormously higher a rate than the manual labourers? If we say, "because his labour is more valuable," some Socialists would join issue on the score that labour is valuable according to the time that it takes, and the employer works shorter hours than his men. But this taking account of quantity alone in labour is an ignoring of the distinction which we have drawn of two qualities or orders of labour, mental and manual; one more valuable than the other as being scarcer and in greater demand, so that a short time of one may be set against a long time of another, like a little gold against a heap of brass. Any man accustomed to both orders of labour must have observed, that while he can work with his hands at almost any time when he is well, the highest labour of his intellect can be done only at rare intervals, and that in one happy hour he will sometimes accomplish more than in a day. As the same man differs from himself at different times, so does one man from another in the average value of his mental efforts: this value is not measured by time.

9. Abandoning this untenable position, Socialists still ask: "But is the difference in the value of their labour quite so vast as is the interval between the profits of the employer and the pay of his poor drudges?" Honestly we cannot say that it is. We are fain to fall back upon the consideration, that the employer contributes, not only his brains to the work, but his capital. "Ah, that is just it," is the Socialists' quick reply: "We propose to relieve him of his capital, and remunerate his brainwork only: by that means we shall be able to pay sufficiently handsome wages for management, according to the ratio of mental and manual labour, and at the same time have a sufficiently large surplus over to raise the wages of his needy comrades, those seventy thousand hodmen and eighty thousand quarrymen."

10. Two reasons may be given for turning away from this seductive proposal, and leaving capital (not consumer's wealth merely) in private hands,--and that not only in the hands of what we may call mentally productive capitalists, men who oversee their own enterprises and manage their own workmen, but even of unproductive capitalists, men who have shares in and reap profits out of a business which they never meddle with. The first reason is, because this position of the productive, and still more that of the unproductive capitalist, is a prize for past industry expended upon production. To understand this, we must recollect once more that men work, not as individuals, but as heads of families. Every working man, from the sailor to the shop-boy, covets for himself two things, pay and leisure. The same two things do mentally productive labourers covet. But they covet them, not for themselves alone, but for their families, and more even for their families than for themselves. They weary their brains, planning and managing, that in old age they may retire on a competence, and hand down that same competence, undiminished by their having lived on it, to their children. Thus the young man works and produces, that the old man, and the child to come, may have exemption from productive labour, an abiding exemption, which cannot be unless he is allowed to live on the interest of accumulated capital. These positions of affluence and rest--sinecures they are, so far as production is concerned--are the prizes awarded to the best productive labour. What they who do that labour aim at, is not wages but exemption from toil: their wish is not so much to be wealthy and have leisure themselves as to found a family in wealth and leisure,--the one possible foundation of such a family being a store of private capital. Socialists of course will offer nobler prizes for the best productive labour,--honour, and the satisfaction of having served the community, a satisfaction which they would have men trained from childhood to relish above all other joys. Unfortunately, this taste is yet unformed, and the stimulus of these nobler prizes is still unproved by experience. Meanwhile men do work hard, to the advantage of the community, for the ignobler prize of family affluence and ease. Socialists are going to take away the good boy's cake and give him a sunflower.

11. The second reason for leaving capital in private, even unproductive hands, begins from the consideration, that the highest end of man on earth is not production, just as it is not consumption, of the necessaries and luxuries of life. Aristotle bids us, as much as possible in this life, "to play the immortal ([Greek: athanatizein]), and do our utmost to live by the best element in our nature," that is, the intellect. (Ethics, c. ii., s. ii., n. 7, p. 9.) There is the intellectual life of the statesman in the practical order: and in the speculative order, that of the poet, of the artist, of the scholar, of the devout contemplative--the outcome of learned and pious leisure, and freedom from vulgar cares. One man ascending into this higher and better region helps his neighbour to follow. The neighbour can follow, even though he be not free from productive cares, but the leader ought to be free, if he is to soar a high, sustained and powerful flight, and guide others aloft. These unproductive capitalist families then form what we may call, by a figure which rhetoricians call oxymoron, something which comes very near a bull,--we may call them an endowed lay-clergy: they are told off from the rest of men to lead the way in doing, and causing to be done, the highest work of humanity. The absence of the First Class of Workers would render the Socialist Utopia a very vulgar place.

12. Nature's ideal is: To all, plenty: to some, superabundance. The superabundance of some is not necessarily incompatible with all having plenty: nay it is a positive furtherance of that and of still higher ends, as has been shown. But it is a position of advantage that may be abused, and is abused most wantonly: hence there comes to be question of Socialism.

13. The Socialism above described is of the old sort, called Collectivism. A new variety has appeared, Syndicalism. Syndicalism is opposed to nationalisation and centralisation of capital and power: it would convert workers into owners in each separate department of labour,--colliers to own the coal, railwaymen the lines and rolling-stock, agricultural labourers the land, and so on. Collectivism might conceivably be put in practice, given a sufficiently high standard of social virtue, a quality which Socialists are not in the way to get. As for Syndicalism in practice, I leave that to the reader to imagine. Syndicalism stigmatises Collectivism as a gross tyranny. Thus divided into two irreconcilable factions, the Socialists are not a happy family.

Readings.--The Creed of Socialism, by Joseph Rickaby (Anti-socialist Union, Victoria Street, Westminster).