CHAPTER VI.

THE SOCIALISTS OF THE CHAIR.

The Socialists of the Chair have done themselves injustice and sown

their course with embarrassing misconceptions by adopting too hastily an

infelicitous name. It is more descriptive than most political nicknames,

and therefore more liable to mislead. It was first used in 1872 in a

pamphlet by Oppenheim, then one of the leaders of the National Liberals,

to ridicule a group of young professors of political economy who had

begun to show a certain undefined sympathy with the socialist agitations

of Lassalle and Von Schweitzer, and to write of the wrongs of the

labouring classes and the evils of the existing industrial system with a

flow of emotion which was thought to befit their years better than their

position. A few months later these young professors called together at

Eisenach a Congress of all who shared their general attitude towards

that class of questions. In opening this Congress--which was attended by

almost every economist of note in Germany, and by a number of the

weightiest and most distinguished Liberal politicians--Professor

Schmoller employed the name "Socialists of the Chair" to describe

himself and those present, without adding a single qualifying remark,

just as if it had been their natural and chosen designation. The

nickname was no doubt accepted so readily, partly from a desire to take

the edge off the sneer it was meant to convey, but partly also from the

nobler feeling which makes men stand by a truth that is out of favour.

Not that they approved of the contentions of social democracy out and

out, but they believed there was more basis of truth in them than

persons in authority were inclined to allow, and besides that the truth

they contained was of special and even pressing importance. They held,

as Schmoller said, that "Social Democracy was itself a consequence of

the sins of modern Liberalism." They went entirely with the Social

Democrats in maintaining both that a grave social crisis had arisen, and

that it had been largely brought about by an irrational devotion on the

part of the Liberals to the economic doctrine of _laissez-faire_. But

they went further with them. They believed that the salvation of modern

society was to come, not indeed from the particular scheme of

reconstruction advocated by the Social Democrats, but still from

applications in one form or another of their fundamental principle, the

principle of association. And it was for that reason--it was for the

purpose of marking the value they set upon the associative principle as

the chief source of healing for the existing ills of the nations--that

they chose to risk misunderstanding and obloquy by accepting the

nickname put upon them by their adversaries. The late Professor Held,

who claims as a merit that he was the first to do so, explains very

clearly what he meant by calling himself a socialist. Socialism may

signify many different things, but, as he uses the word, it denotes not

any definite system of opinions or any particular plan of social reform,

but only a general method which may guide various systems, and may be

employed more or less according to circumstances in directing many

different reforms. He is a socialist because he would give much more

place than obtains at present to the associative principle in the

arrangements of economic life, and because he cannot share in the

admiration many economists express for the purely individualistic basis

on which these arrangements have come to stand. A socialist is simply

the opposite of an individualist. The individualist considers that the

perfection of an industrial economy consists in giving to the principles

of self-interest, private property, and free competition, on which the

present order of things is founded, the amplest scope they are capable

of receiving, and that all existing economic evils are due, not to the

operation of these principles, but only to their obstruction, and will

gradually disappear when self-interest comes to be better understood,

when competition is facilitated by easier inter-communication, and when

the law has ceased from troubling and left industry at rest. The

socialist, in Held's sense, is, on the other hand, one who rejects the

comfortable theory of the natural harmony of individual interests, and

instead of deploring the obstructions which embarrass the operations of

the principles of competition, self-interest, and private property,

thinks that it is precisely in consequence of these obstructions that

industrial society contrives to exist at all. Strip these principles, he

argues, of the restraints put upon them now by custom, by conscience, by

public opinion, by a sense of fairness and kind feeling, and the

inequalities of wealth would be immensely aggravated, and the labouring

classes would be unavoidably ground to misery. Industrial society would

fall into general anarchy, into a _bellum omnium contra omnes_, in which

they that have would have more abundantly, and they that have not would

lose even what they have. Held declines to join in the admiration

bestowed by many scientific economists upon this state of war, in which

the battle is always to the rich. He counts it neither the state of

nature, nor the state of perfection, of economic society, but simply an

unhappy play of selfish and opposing forces, which it ought to be one of

the distinct aims of political economy to mitigate and counteract.

Individualism has already had too free a course, and especially in the

immediate past has enjoyed too sovereign a reign. The work of the world

cannot be carried on by a fortuitous concourse of hostile atoms, moving

continually in a strained state of suspended social war, and therefore,

for the very safety of industrial society, we must needs now change our

tack, give up our individualism, and sail in the line of the more

positive and constructive tendencies of socialism. To Held's thinking

accordingly, socialism and individualism are merely two contrary general

principles, ideals, or methods, which may be employed to regulate the

constitution of economic society, and he declares himself a socialist

because he believes that society suffers at present from an excessive

application of the individualistic principle, and can only be cured by

an extensive employment of the socialistic one.

This is all clear enough, but it is simply giving to the word socialism

another new meaning, and creating a fresh source of ambiguity. That term

has already contracted definite associations which it is impossible to

dispel by mere word of mouth, and which constitute a refracting medium

through which the principles of the Socialists of the Chair cannot fail

to be presented in a very misleading form. These writers assume a

special position in two relations--first, as theoretical economists;

and, second, as practical politicians or social reformers; and in both

respects alike the term socialism is peculiarly inappropriate to

describe their views. In regard to the first point, by adopting that

name they have done what they could to "Nicodemus" themselves into a

sect, whereas they might have claimed, if they chose, to be better

exponents of the catholic tradition of the science than those who found

fault with them. This is a claim, however, which they would be shocked

indeed to think of presenting. With a natural partiality for their own

opinions, they exaggerated immensely the extent and also the value of

their divergence from the traditional or, as it is sometimes called, the

classical economics. In the energy of their recoil from the dogmatism

which had for a generation usurped an excessive sway over economic

science, they were carried too far in the opposite direction, but they

had in their own minds the sensation that they were carried a great deal

farther than they really were. They liked to think of their historical

method as constituting a new epoch, and effecting a complete revolution

in political economy, but, as will subsequently appear, that method,

when reduced to its real worth, amounts to no more than an application,

with somewhat distincter purpose and wider reach, of the method which

Smith himself followed. Of this they are in some degree conscious.

Brentano, who belongs to the extreme right of the school, says that

Smith would have been a Socialist of the Chair to-day if he were alive;

and Samter, who belongs to the extreme left, though he is doubtful

regarding Smith, has no hesitation in claiming Mill, whom he looks upon

as standing more outside than inside the school of Smith. Their position

is, therefore, not the new departure which many of them would fain

represent it to be. They are really as natural and as legitimate a line

of descent from Adam Smith as their adversaries the German Manchester

Party who claimed the authority of his name. Perhaps they are even more

so, for in science the true succession lies with those who carry the

principles of the master to a more fruitful development, and not with

those who embalm them as sacred but sterile simulacra.

But it is as practical reformers that the Socialists of the Chair suffer

most injustice from their name. Since the word socialism was first used

by Reybaud fifty years ago, it has always been connected with utopian or

revolutionary ideas. Now the Socialists of the Chair are the very

opposite of revolutionaries both by creed and practice. None of the

various parties which occupy themselves with the social problem in

Germany is so eminently and advisedly practical. Their very historical

method, apart from anything else, makes them so. It gives them a special

aversion to political and social experiments, for it requires as the

first essential of any project of reform that it shall issue naturally

and easily out of--or at least be harmonious with--the historical

conditions of the time and place to which it is to be applied. Roscher,

who may be regarded as the founder of the school, says that reformers

ought to take for their model Time, whose reforms are the surest and

most irresistible of all, but yet so gradual that they cannot be

observed at any given moment. They make, therefore, on the whole a very

sparing use of the socialistic principle they invoke. Certainly the

world, in their eyes, is largely out of joint, but its restoration is to

proceed gently, like Solomon's temple, without sound of hammer. Some of

them of course go farther than others, but they would all still leave us

rent, wages, and profits, the three main stems of individualism. They

struck the idea of taxing speculative profits out of their programme,

and so far from having any socialistic thought of abolishing

inheritance, none of them except Von Scheel would even tax it

exceptionally. Samter stands alone in urging the nationalization of the

land; and Wagner stands alone in desiring the abolition of private

property in ground-rents in towns; the other members cannot agree even

about the expediency of nationalizing the railways. They work of set

purpose for a better distribution of wealth--for what Schmoller calls a

progressive equalization of the excessive and even dangerous differences

of culture that exist at present--but they recoil from all suggestion of

schemes of repartition, and they have no fault to find with inequality

in itself. On the contrary they regard inequality as being not merely

an unavoidable result of men's natural endowments, but an indispensable

instrument of their progress and civilization. Schmoller explains that

their political principles are those of Radical Toryism, as portrayed in

Lord Beaconsfield's novels; and he means that they rest on the same

active sympathy with the ripening aspirations of the labouring classes,

and the same zealous confidence in the authority of the State, and in

these respects are distinguished from modern Liberalism, whose governing

sympathies are with the interests and ideas of the _bourgeoisie_, and

which entertains a positive jealousy of the action of the State. The

actual reforms which the Socialists of the Chair have hitherto promoted

have been in the main copied from our own English legislation--our

Factory Acts, our legalization of Trade Unions, our Savings Banks, our

registration of Friendly Societies, our sanitary legislation, etc.,

etc.--measures which have been passed, with the concurrence of men of

opposite shades of opinion, out of no social theory but from a plain

regard to the obvious necessities of the hour. So that we have been

simply Socialists of the Chair for a generation without knowing it,

doing from a happy political instinct the works which they deduce out of

an elaborate theory of economic politics. Part of their theory, however,

is, that in practical questions they are not to go by theory, and the

consequence is that while they sometimes lay down general principles in

which communism might steal a shelter, they control these principles so

much in their application by considerations of expediency, that the

measures they end in proposing differ little from such as commend

themselves to the common sense and public spirit of middle-class

Englishmen.

Their general theory had been taught in Germany for twenty years before

it was forced into importance by the policy it suggested and the

controversies it excited in connection with the socialist movement which

began in 1863. Wilhelm Roscher, the lately deceased professor of

economics in Leipzig, first propounded the historical method in his

"Grundriss zu Vorlesungen ueber die Staatswirthschaft nach

geschichtlicher Methode," published in 1843, though it deserves to be

noticed that in this work he spoke of the historical method as being

the ordinary inductive method of scientific economists, and

distinguished it from the idealistic method proceeding by deduction from

preconceived ideas, which he said was the method of the socialists. He

had no thought as yet of representing his method as diverging from that

of his predecessors, even in detail, much less as being essentially

different in principle. Then the late Bruno Hildebrand, professor of

political science at Jena, in his work on the "National Economy of the

Present and the Future," published in 1847, proclaimed the historical

method as the harbinger and instrument of a new era in the science, but

he speaks of it only as a restoration of the method of diligent

observation which Adam Smith practised, but which his disciples deserted

for pure abstractions. In 1853, a more elaborate defence and exposition

of the historical method appeared in a work on "Political Economy from

the Standpoint of the Historical Method," by Carl G. A. Knies, professor

of national economics at Heidelberg. But it was never dreamt that the

ideas broached in these works had spread beyond the few solitary

thinkers who issued them. The Free Traders were still seen ruling

everything in the high places of the land in the name of political

economy, and they were everywhere apparently accepted as authorized

interpreters of the mysteries of that, to the ordinary public, somewhat

occult science. They preached the freedom of exchange like a religion

which contained at once all they were required to believe in economic

matters, and all they were required to do. There was ground for

Lassalle's well-known taunt: "Get a starling, Herr Schultze, teach it to

pronounce the word 'exchange,' 'exchange,' 'exchange,' and you have

produced a very good modern economist." The German Manchester Party

certainly gave to the principle of _laissez-faire, laissez-aller_, a

much more unconditional and universal application than any party in this

country thought of according to it. They looked on it as a kind of

orthodoxy which it had come to be almost impious to challenge. It had

been hallowed by the consensus of the primitive fathers of the science,

and it seemed now to be confirmed beyond question experimentally by the

success of the practical legislation in which it had been exemplified

during the previous quarter of a century. The adherents of the new

school never raised a murmur against all this up till the eventful time

of the socialist agitation and the formation of the new German Empire,

and the reason is very plain. On the economic questions which came up

before that period, they were entirely at one with the Free Traders, and

gave a hearty support to their energetic lead. They were, for example,

as strenuously opposed to protective duties and to restrictions upon

liberty of migration, settlement, and trading, as Manchester itself. But

with the socialist agitation of 1863, a new class of economic questions

came to the front--questions respecting the condition of the working

classes, the relations of capital and labour, the distribution of

national wealth, and the like--and on these new questions they could not

join the Free Traders in saying "Hands off!" They did not believe with

the Manchester school that the existing distribution of wealth was the

best of all possible distributions, because it was the distribution

which Nature herself produced. They thought, on the contrary, that

Nature had little to do with the matter; but even if it had more, there

was only too good cause for applying strong corrections by art. They

said it was vain for the Manchester party to deny that a social question

existed, and to maintain that the working classes were as well off as it

was practical for economic arrangements to make them. They declared

there was much truth in the charges which socialists were bringing

against the existing order of things, and that there was a decided call

upon all the powers of society, and, among others, especially upon the

State, to intervene with some remedial measures. A good opportunity for

concerted and successful action seemed to be afforded when the German

Empire was established, and this led to the convening of the Eisenach

Congress in 1872, and the organization of the Society for Social

Politics in the following year.

Men of all shades of opinion were invited to that Congress, provided

they agreed on two points, which were expressly mentioned in the

invitation: 1st, in entertaining an earnest sense of the gravity of the

social crisis which existed; and 2nd, in renouncing the principle of

_laissez-faire_ and all its works. The Congress was attended by 150

members, including many leading politicians and most of the professors

of political economy at the Universities. Roscher, Knies, and Hildebrand

were there, with their younger disciples Schmoller, professor at

Strasburg and author of the "History of the Small Industries"; Lujo

Brentano, professor at Breslau, well known in this country by his book

on "English Gilds" and his larger work on "English Trade Unions";

Professors A. Wagner of Berlin and Schoenberg of Tuebingen. Then there

were men like Max Hirsch and Duncker the publisher, both members of the

Imperial Diet, and the founders of the Hirsch-Duncker Trade Unions; Dr.

Engel, director of the statistical bureau at Berlin; Professor von

Holtzendorff, the criminal jurist; and Professor Gneist, historian of

the English Constitution, who was chosen to preside. After an opening

address by Schmoller, three papers were read and amply discussed, one on

Factory Legislation by Brentano, a second on trade Unions and Strikes by

Schmoller, and a third on Labourers' Dwellings by Engel. This Congress

first gave the German public an idea of the strength of the new

movement; and the Free Trade party were completely, and somewhat

bitterly, disenchanted, when they found themselves deserted, not as they

fancied merely by a few effusive young men, but by almost every

economist of established reputation in the country. A sharp controversy

ensued. The newspapers, with scarcely an exception, attacked the

Socialists of the Chair tooth and nail, and leading members of the

Manchester party, such as Treitschke the historian, Bamberger the

Liberal politician, and others, rushed eagerly into the fray. They were

met with spirit by Schmoller, Held, Von Scheel, Brentano, and other

spokesmen of the Eisenach position, and one result of the polemic is,

that some of the misunderstandings which naturally enough clouded that

position at the beginning have been cleared away, and it is now admitted

by both sides that they are really much nearer one another than either

at first supposed. The Socialists of the Chair did not confine their

labours to controversial pamphlets. They published newspapers,

periodicals, elaborate works of economic investigation; they held

meetings, promoted trade unions, insurance societies, savings banks;

they brought the hours of labour, the workmen's houses, the effects of

speculation and crises, all within the sphere of legislative

consideration. The moderation of their proposals of change has

conciliated to a great extent their Manchester opponents. Even

Oppenheim, the inventor of their nickname, laid aside his scoffing, and

seconded some of their measures energetically. Indeed, their chief

adversaries are now the socialists, who cannot forgive them for going

one mile with them and yet refusing to go twain--for adopting their

diagnosis and yet rejecting their prescription. Brentano, who is one of

the most moderate, as well as one of the ablest of them, takes nearly as

grave a view of the state of modern industrial society as the socialists

themselves do; and he says that if the evils from which it suffers could

not be removed otherwise, it would be impossible to avoid much longer a

socialistic experiment. But then he maintains that they can be removed

otherwise, and one of the chief motives of himself and his allies in

their practical work is to put an end to socialistic agitation by curing

the ills which have excited it.

The key to the position of the Socialists of the Chair lies in their

historical method. This method has nothing to do with the question

sometimes discussed whether the proper method of political economy is

the inductive or the deductive. On that question the historical school

of economists are entirely agreed with the classical school. Roscher,

for example, adopts Mill's description of political economy as a

concrete deductive science, whose _a priori_ conclusions, based on laws

of human nature, must be tested by experience, and says that an economic

fact can be said to have received a scientific explanation only when its

inductive and deductive explanations have met and agreed. He makes,

indeed, two qualifying remarks. One is, that it ought to be remembered

that even the deductive explanation is based on observation, on the

self-observation of the person who offers it. This will be admitted by

all. The other is, that every explanation is only provisional, and

liable to be superseded in the course of the progress of knowledge, and

of the historical growth of social and economic structure. This will

also be admitted, and it is no peculiarity of political economy. There

is no science whose conclusions are not modified by the advance of

knowledge; and there are many sciences besides political economy whose

phenomena change their type in lapse of time. Roscher's proviso,

therefore, amounts to nothing more than a caution to economic

investigators to build their explanations scrupulously on the facts, the

whole facts, and nothing but the facts, and to be specially on their

guard against applying to the circumstances of one period or nation

explanations and recommendations which are only just regarding another.

The same disease may have different symptoms in a child from what it has

in a man, and a somewhat different type at the present day from what it

had some centuries ago; and it may therefore require a quite different

treatment. That is a very sound principle and a very self-evident one,

and it contains the whole essence of the historical method, which, so

far as it is a method of investigation at all, is simply that of other

economists applied under a more dominating sense of the complexity and

diversity of the phenomena which are subjected to it. There is

consequently with the historical school more rigour of observation and

less rigour of theory, and this peculiarity leads to practical results

of considerable importance, but it has no just pretensions to assume the

dignity of a new economic method, and it is made to appear much bigger

than it is by looming through the scholastic distinctions in which it is

usually set forth.

The historical school sometimes call their method the _realistic_ and

_ethical_ method, to distinguish it from what they are pleased to term

the _idealistic_, and _selfish_ or _materialistic_ method of the earlier

economists. They are _realists_ because they cannot agree with the

majority of economists who have gone before them in believing there is

one, and only one, ideal of the best economic system. There are, says

Roscher, as many different ideals as there are different types of

peoples, and he completely casts aside the notion, which had generally

prevailed before him, that there is a single normal system of economic

arrangements, which is built on the natural laws of economic life, and

to which all nations may at all times with advantage conform. It is

against this notion that the historical school has revolted with so much

energy that they wish to make their opposition to it the flag and

symbol of a schism. They deny that there are any natural laws in

political economy; they deny that there is any economic solution

absolutely valid, or capable of answering in one economic situation

because it has answered in another. Roscher, Knies, and the older

members of the school make most of the latter point; but Hildebrand,

Schoenberg, Schmoller, Brentano, and the younger spirits among them,

direct against the former some of their keenest attacks. They declare it

to be a survival from the exploded metaphysics of the much-abused

_Aufklaerung_ of last century. They argue that just as the economists of

that period took self-interest to be the only economic motive, because

the then dominant psychology--that of the selfish or sensual

school--represented it as the only real motive of human action, of which

the other motives were merely modifications; so did they come to count

the reciprocal action and reaction of the self-interest of different

individuals to be a system of natural forces, working according to

natural laws, because they found the whole intellectual air they

breathed at the time filled with the idea that all error in poetry, art,

ethics, and therefore also economics, had come through departing from

nature, and that the true course in everything lay in giving the

supremacy to the nature of things. We need not stop to discuss this

historical question as to the origin of the idea; it is enough here to

say that the Socialists of the Chair maintain that in economic affairs

it is impossible to make any such distinction between what is natural

and what is not so. Everything results from nature, and everything

results from positive institution too. There is in economics either no

nature at all, or there is nothing else. Human will effects or affects

all; and human will is itself influenced, of course, by human nature and

human condition. Roscher says that it is a mistake to speak of industry

being forced into "unnatural" courses by priests or tyrants, for the

priests and tyrants are part and parcel of the people themselves,

deriving all their resources from the people, and in no respect

Archimedeses standing outside of their own world. The action of the

State in economic affairs is just as natural as the action of the farmer

or the manufacturer; and the latter is as much matter of positive

institution as the former. But while Roscher condemns this distinction,

he does not go the length his disciples have gone, and reject the whole

idea of natural law in the sphere of political economy. On the contrary,

he actually makes use of the expression, "the natural laws of political

economy," and asserts that, when they are once sufficiently known, all

that is then needed to guide economic politics is to obtain exact and

reliable statistics of the situation to which they are to be applied.

Now that statement is exactly the position of the classical school on

the subject. Economic politics is, of course, like all other politics,

an affair of times and nations; but economic science belongs to mankind,

and contains principles which may be accurately enough termed, as

Roscher terms them, natural laws, and which may be applied, as he would

apply them, to the improvement of particular economic situations, on

condition that sufficiently complete and correct statistics are obtained

beforehand of the whole actual circumstances. Economic laws are, of

course, of the nature of ethical laws, and not of physical; but they are

none the less on that account natural laws, and the polemic instituted

by the Socialists of the Chair to expel the notion of natural law from

the entire territory of political economy is unjustifiable. Phenomena

which are the result of human action will always exhibit regularities

while human character remains the same; and, moreover, they often

exhibit undesigned regularities which, not being imposed upon them by

man, must be imposed upon them by Nature. While, therefore, the

Socialists of the Chair have made a certain point against the older

economists by showing the futility and mischief of distinguishing

between what is natural in economics and what is not, they have erred in

seeking to convert that point into an argument against the validity of

economic principles and the existence of economic laws. At the same time

their position constitutes a wholesome protest against the tendency to

exaggerate the completeness or finality of current doctrines, and gives

economic investigation a beneficial direction by setting it upon a more

thorough and all-sided observation of facts.

But when they complain of the earlier economists being so wedded to

abstractions, the fault they chiefly mean to censure is the habit of

solving practical economic problems by the unconditional application of

certain abstract principles. It is the "absolutism of solutions" they

condemn. They think economists were used to act like doctors who had

learnt the principles of medicine by rote and applied them without the

least discrimination of the peculiarities of individual constitutions.

With them the individual peculiarities are everything, and the

principles are too much thrown into the shade. Economic phenomena, they

hold, constitute only one phase of the general life of the particular

nations in which they appear. They are part and parcel of a special

concrete social organism. They are influenced--they are to a great

extent made what they are--by the whole _ethos_ of the people they

pertain to, by their national character, their state of culture, their

habits, customs, laws. Economic problems are consequently always of

necessity problems of the time, and can only be solved for the period

that raises them. Their very nature alters under other skies and in

other ages. They neither appear everywhere in the same shape, nor admit

everywhere of the same answer. They must therefore be treated

historically and empirically, and political economy is always an affair

for the nation and never for the world. The historical school inveigh

against the _cosmopolitanism_ of the current economic theories, and

declare warmly in favour of _nationalism_; according to which every

nation has its own political economy just as it has its own constitution

and its own character. Now here they are right in what they affirm,

wrong in what they deny. They are right in affirming that economic

politics is national, wrong in denying that economic science is

cosmopolitan. In German the word economy denotes the concrete industrial

system as well as the abstract science of industrial systems, and one

therefore readily falls into the error of applying to the latter what is

only true of the former. There may be general principles of engineering,

though every particular project can only be successfully accomplished by

a close regard to its particular conditions. In claiming a cosmopolitan

validity for their principles, economists do not overlook their

essential relativity. On the contrary, they describe their economic

laws as being in reality nothing more than tendencies, which are not

even strictly true as scientific explanations, and are never for a

moment contemplated as unconditional solutions for practical situations.

Moreover Roscher, in defining his task as an economist, virtually takes

up the cosmopolitan standpoint and virtually rejects the national. He

says a political economist has to explain what is or has been, and not

to show what ought to be; he quotes the saying of Dunoyer, _Je n'impose

rien, je ne propose meme rien, j'expose_; and states that what he has to

do is to unfold the anatomy and physiology of social and national

economy. He is a scientific man, and not an economic politician, and

naturally assumes the position of science, which is cosmopolitan, and

not that of politics, which is national and even opportunist.

I pass now to a perhaps more important point, from which it will be seen

that the Socialists of the Chair are far from thinking that political

economy has nothing to do with what ought to be. Next to the _realistic_

school, the name they prefer to describe themselves by is the _ethical_

school. By this they mean two things, and some of them lay the stress on

the one and some on the other. They mean, first, to repudiate the idea

of self-interest being the sole economic motive or force. They do not

deny it to be a leading motive in industrial transactions, and they do

not, like some of the earlier socialists, aim at its extinction or

replacement by a social or generous principle of action. But they

maintain that the course of industry never has been and never will be

left to its guidance alone. Many other social forces, national

character, ideas, customs--the whole inherited _ethos_ of the

people--individual peculiarities, love of power, sense of fair dealing,

public opinion, conscience, local ties, family connections, civil

legislation--all exercise upon industrial affairs as real an influence

as personal interest, and, furthermore, they exercise an influence of

precisely the same kind. They all operate ethically, through human will,

judgment, motives, and in this respect one of them has no advantage over

another. It cannot be said, except in a very limited sense, that

self-interest is an essential and abiding economic force and the others

only accidental and passing. For while customs perish, custom remains;

opinions come and go, but opinion abides; and though any particular act

of the State's intervention may be abolished, State intervention itself

cannot possibly be dispensed with. It is all a matter of more or less,

of here or there. The State is not the intruder in industry it is

represented to be. It is planted in the heart of the industrial organism

from the beginning, and constitutes in fact part of the nature of things

from which it is sought to distinguish it. It is not unnatural for us to

wear clothes because we happen to be born naked, for Nature has given us

a principle which guides us to adapt our dress to our climate and

circumstances. Reason is as natural as passion, and the economists who

repel the State's intrusion and think they are thus leaving industry to

take its natural course, commit the same absurdity as the moralist who

recommends men to live according to Nature, and explains living

according to Nature to mean the gratification as much as possible of his

desires, and his abandonment as much as possible of rational and, as he

conceives, artificial plan. The State cannot observe an absolute

neutrality if it would. Non-intervention is only a particular kind of

intervention. There must be laws of property, succession, and the like,

and the influence of these spreads over the whole industrial system, and

affects both the character of its production and the incidence of its

distribution of wealth.

But, second, by calling their method the _ethical_ method, the

historical school desire to repudiate the idea that in dealing with

economic phenomena they are dealing with things which are morally

indifferent, like the phenomena of physics, and that science has nothing

to do with them but to explain them. They have certainly reason to

complain that the operation of the laws of political economy is

sometimes represented as if it were morally as neutral as the operation

of the law of gravitation, and it is in this conception that they think

the materialism of the dominant economic school to be practically most

offensively exhibited. Economic phenomena are not morally indifferent;

they are ethical in their very being, and ought to be treated as such.

Take, for example, the labour contract. To treat it as a simple exchange

between equals is absurd. The labourer must sell his labour or starve,

and may be obliged to take such terms for it as leave him without the

means of enjoying the rights which society awards him, and discharging

the duties which society claims from him. Look on him as a ware, if you

will, but remember he is a ware that has life, that has connections,

responsibilities, expectations, domestic, social, political. To get his

bread he might sell his freedom, but society will not permit him; he may

sell his health, he may sell his character, for society permits that; he

may go to sea in rotten ships, and be sent to work in unwholesome

workshops; he may be herded in farm bothies where the commonest

decencies of life cannot be observed; and he may suck the strength out

of posterity by putting his children to premature toil to eke out his

precarious living. Transactions which have such direct bearings on

freedom, on health, on morals, on the permanent well-being of the

nation, can never be morally indifferent. They are necessarily within

the sphere of ends and ideals. Their ethical side is one of their most

important ones, and the science that deals with them is therefore

ethical. For the same reason they come within the province of the State,

which is the normal guardian of the general and permanent interests,

moral and economic, of the community. The State does not stand to

industry like a watchman who guards from the outside property in which

he has himself no personal concern. It has a positive industrial office.

It is, says Schmoller, the great educational institute of the human

race, and there is no sense in suspiciously seeking to reduce its action

in industrial affairs to a minimum. His theory of the State is that of

the _Cultur-Staat_, in distinction from the _Polizei-Staat_, and the

_Rechts-Staat_. The State can no longer be regarded as merely an

omnipotent instrument for the maintenance of tranquillity and order in

the name of Heaven; nor even as a constitutional organ of the collective

national authority for securing to all individuals and classes in the

nation, without exception, the rights and privileges which they are

legally recognised to possess; but it must be henceforth looked upon as

a positive agency for the spread of universal culture within its

geographical territory.

With these views, the Socialists of the Chair could not fail to take an

active concern with the class of topics thrown up by the socialist

movement, and exciting still so much attention in Germany under the name

of the social question. They neither state that question nor answer it

like the socialists, but their first offence, and the fountain of all

their subsequent offending, in the judgment of their Manchester

antagonists, consisted in their acknowledgment that there was a social

question at all. Not that the Manchester party denied the existence of

evils in the present state of industry, but they looked upon these evils

as resulting from obstructions to the freedom of competition which time,

and time alone, would eventually remove, and from moral causes with

which economists had no proper business. The Socialists of the Chair,

however, could not dismiss their responsibility for those evils so

easily. They owned at once that a social crisis had arisen or was near

at hand. The effect of the general adoption of the large system of

production had been to diminish the numbers of the middle classes, to

reduce the great bulk of the lower classes permanently to the position

of wage-labourers, and to introduce some grave elements of peril and

distress into the condition of the wage-labourers themselves. They are

doubtless better fed, better lodged, better clad, than they were say in

the middle and end of last century, when not one in a hundred of them

had shoes to his feet, when seven out of eight on the Continent were

still bondsmen, and when three out of every four in England had to eke

out their wages by parochial relief. But, in spite of these advantages,

their life has now less hope and less security than it had then.

Industry on the great scale has multiplied the vicissitudes of trade,

and rendered the labourer much more liable to be thrown out of work. It

has diminished the avenues to comparative independence and dignity which

were open to the journeyman under the _regime_ of the small industries.

And while thus condemned to live by wages alone all his days, he could

entertain no reasonable hope--at least before the formation of trade

unions--that his wages could be kept up within reach of the measure of

his wants, as these wants were being progressively expanded by the

general advance of culture. Moreover, the twinge of the case lies here,

that while the course which industrial development is taking seems to be

banishing hope and security more and more from the labourer's life, the

progress of general civilization is making these benefits more and more

imperatively demanded. The working classes have been growing steadily in

the scale of moral being. They have acquired complete personal freedom,

legal equality, political rights, general education, a class

consciousness; and they have come to cherish a very natural and

legitimate aspiration that they shall go on progressively sharing in the

increasing blessings of civilization. Brentano says that modern public

opinion concedes this claim of the working man as a right to which he is

entitled, but that modern industrial conditions have been unable as yet

to secure him in the possession of it; hence the Social Question. Now

some persons may be ready enough to admit this claim as a thing which it

is eminently desirable to see realized, who will yet demur to the

representation of it as a right, which puts society under a

corresponding obligation. But this idea is a peculiarity belonging to

the whole way of thinking of the Socialists of the Chair upon these

subjects. Some of them indeed take even higher ground. Schmoller, for

example, declares that the working classes suffer positive wrong in the

present distribution of national wealth, considered from the standpoint

of distributive justice; but his associates as a rule do not agree with

him in applying this abstract standard to the case. Wagner also stands

somewhat out of the ranks of his fellows by throwing the responsibility

of the existing evils directly and definitely upon the State. According

to his view, there can never be anything which may be legitimately

called a Social Question, unless the evils complained of are clearly the

consequences of existing legislation, but he holds that that is so in

the present case. He considers that a mischievous turn has been given to

the distribution of wealth by legalizing industrial freedom without at

the same time imposing certain restrictions upon private property, the

rate of interest, and the speculations of the Stock Exchange. The State

has, therefore, caused the Social Question; and the State is bound to

settle it. The other Socialists of the Chair, however, do not bring the

obligation so dead home to the civil authority alone. The duty rests on

society, and, of course, so far on the State also, which is the chief

organ of society; but it is not to State-help alone, nor to self-help

alone, that the Socialists of the Chair ask working men to look; but it

is to what they term the self-help of society. Society has granted to

the labouring classes the rights of freedom and equality, and has,

therefore, come bound to give them, as far as it legitimately can, the

amplest facilities for practically enjoying these rights. To give a man

an estate mortgaged above its rental is only to mock him; to confer the

status of freedom upon working men merely to leave them overwhelmed in

an unequal struggle with capital is to make their freedom a dead letter.

Personal and civil independence require, as their indispensable

accompaniment, a certain measure of economic independence likewise, and

consequently to bestow the former as an inalienable right, and yet take

no concern to make the latter a possibility, is only to discharge

one-half of an obligation voluntarily undertaken, and to deceive

expectations reasonably entertained. No doubt this independence is a

thing which working men must in the main win for themselves, and day

after day, by labour, by providence, by association; but it is

nevertheless an important point to remember, with Brentano, that it

forms an essential part of an ideal which society has already

acknowledged to be legitimate, and which it is therefore bound to second

every effort to realize. The Social Question, conceived in the light of

these considerations, may accordingly be said to arise from the fact

that a certain material or economic independence has become more

necessary for the working man, and less possible. It is more necessary,

because, with the sanction of modern opinion, he has awoke to a new

sense of personal dignity, and it is less possible, in consequence of

circumstances already mentioned, attendant upon the development of

modern industry. It is not, as Lord Macaulay maintained, that the evils

of man's life are the same now as formerly, and that nothing has changed

but the intelligence which has become conscious of them. The new time

has brought new evils and less right or disposition to submit to them.

It is the conflict of these two tendencies which, in the thinking of the

Socialists of the Chair, constitutes the social crisis of the present

day. Some of them, indeed, describe it in somewhat too abstract formulae,

which exercise an embarrassing influence on their speculations. For

example, Von Scheel says the Social Question is the effect of the felt

contradiction between the ideal of personal freedom and equality which

hangs before the present age, and the increasing inequality of wealth

which results from existing economic arrangements; and he proposes as

the general principle of solution, that men should now abandon the

exclusive devotion which modern Liberalism has paid to the principle of

freedom, and substitute in its room an adhesion to freedom _plus_

equality. But then equality may mean a great many different things, and

Von Scheel leaves us with no precise clue to the particular scope he

would give his principle in its application. He certainly seems to

desire more than a mere equality of right, and to aim at some sort or

degree of equality of fact, but what or how he informs us not; just as

Schmoller, while propounding the dogma of distributive justice, condemns

the communistic principle of distribution of wealth as being a purely

animal principle, and offers us no other incorporation of his dogma. In

spite of their antipathy to abstractions, many of the Socialists of the

Chair indulge considerably in barren generalities, which could serve

them nothing in practice, even if they did not make it a point to square

their practice by the historical conditions of the hour.

Brentano strikes on the whole the most practical keynote, both in his

conception of what the social question is and of how it is to be met.

What is needed, he thinks, very much is to give to modern industry an

organization as suitable to it as the old guilds were to the industry of

earlier times, and this is to be done in great part by adaptations of

that model. He makes comparatively little demand on the power of the

State, while of course agreeing with the rest of his school in the

latitude they give to the lawfulness of its intervention in industrial

matters. He would ask it to bestow a legal status on trade unions and

friendly societies, to appoint courts of conciliation, to regulate the

hours of labour, to institute factory inspection, and to take action of

some sort on the daily more urgent subject of labourers' dwellings. But

the elevation of the labouring classes must be wrought mainly by their

own well-guided and long-continued efforts, and the first step is gained

when they have resolved earnestly to begin. The pith of the problem

turns on the matter of wages, and, so far at any rate, it has already

been solved almost as well as is practicable by the English trade

unions, which have proved to the world that they are always able to

convert the question of wages from the question how little the labourer

can afford to take, into the question how much the employer is able to

give--_i.e._, from the minimum to the maximum which the state of the

market allows. That is, of course, a very important change, and it is

interesting to know that F. A. Lange, the able and distinguished

historian of Materialism, who had written on the labour question with

strong socialist sympathies, stated to Brentano that his account of the

English trade unions had converted him entirely from his belief that a

socialistic experiment was necessary. Brentano admits that the effect of

trade unions is partial only; that they really divide the labouring

class into two different strata--those who belong to the trade unions

being raised to a higher platform, and those who do not being left as

they were in the gall of bitterness. But then, he observes, great gain

has been made when at least a large section of the working class has

been brought more securely within the pale of advancing culture, and it

is only in this gradual way--section by section--that the elevation of

the whole body can be eventually accomplished. The trade union has

imported into the life of the working man something of the element of

hope which it wanted, and a systematic scheme of working-class insurance

is now needed to introduce the element of security. Brentano has

published an excellent little work on that subject; and here again he

asks no material help from the State. The working class must insure

themselves against all the risks of their life by association, just as

they must keep up the rate of their wages by association; and for the

same reasons--first, because they are able to do so under existing

economic conditions, and second, because it is only so the end can be

gained consistently with the modern moral conditions of their

life--_i.e._, with the maintenance of their personal freedom, equality,

and independence. Brentano thinks that the sound principle of

working-class insurance is that every trade union ought to become the

insurance society for its trade, because every trade has its own special

risks and therefore requires its own insurance premium, and because

malingering, feigned sickness, claims for loss of employment through

personal fault, and the like, cannot possibly be checked except by the

fund being administered by the local lodges of the trade to which the

subscribers belong. The insurance fund might be kept separate from the

other funds of the union, but he sees no reason why it should not be

combined with them, as it would only constitute a new obstacle to

ill-considered strikes, and as striking in itself will, he expects, in

course of time, give way to some system of arbitration. Brentano makes

no suggestion regarding the mass of the working class who belong to no

trade union. They cannot be dealt with in the same way, or so

effectively. But this is quite in keeping with the general principle of

the Socialists of the Chair--in which they differ _toto caelo_ from the

socialists--that society is not to be ameliorated by rigidly applying to

every bit of it the same plan, but only by a thousand modifications and

remedies adapted to its thousand varieties of circumstances and

situations.

Contemporary Socialism · 第 7 / 15 章