Marx was a highly-gifted theorist, a master in the realm of thought,

but he was quite unpractical in the affairs of everyday life. Had he

enjoyed a regular income throughout life, he would probably have

attained his end even without the help of Engels. On the other hand,

Engels was an exceedingly able, energetic, and highly-cultured man,

eminently practical and successful in everything he undertook, but not

endowed with that speculative temperament which surmounts intellectual

crises and opens out new horizons. But for his intellectual

association with Marx he would, in all probability, have remained

little more than a Moses Hess. Marx was never a Utopian; the complete

saturation of his mind with Hegelian dialectics made him immune to all

eternal truths and final social forms. On the contrary, up to 1844

Engels was a Utopian--until Marx explained to him the meaning of

political and social conflicts, the basis and the motive force, the

statics and dynamics of the history of civilised mankind. Engels'

"Criticism of Political Economy" is a very noteworthy performance for

a youth of twenty-three engaged in commerce, but it does not rise

above the level of the writings of Owen, Fourier, and Proudhon.

Engels' contributions to Owen's "New Moral World" (1843-44) are indeed

more philosophical than the other articles by Owenites, but as far as

matter goes, there is no perceptible difference between them. "The

System of Economic Contradictions," on which Proudhon was working when

Engels published his "Outlines," is couched, as far as the critical

side is concerned, in the same strain of thought as we find in Engels.

Both sought to expose the contradictions of the middle-class economic

system, not in order to discover in them the source of the progress of

society, but to condemn them in the name of justice. Whereas the

Owenites considered their system as perfect, Proudhon and Engels had,

independently of one another, striven to free themselves from the

Socialist Utopias. Proudhon became a peaceful Anarchist and found

salvation in the scheme of autonomous economic groups, which should

carry on an exchange of labour equivalents with one another. Engels,

on the other hand, found a solution of his difficulties in Marx, whom

he rewarded with a lifelong friendship and devotion, which proved to

be Marx's salvation. Without Engels' literary and financial help,

Marx, with his unpractical, helpless, and, at the same time, proud and

uncompromising disposition, would most probably have perished in

exile.

III. CONTROVERSIES WITH BAUER AND RUGE.

After the Franco-German Year Books had been discontinued, Marx,

recognising the importance of economics, studied English and French

systems of political economy with still greater zeal than before, and

continued his studies in Socialism and history with remarkable

steadiness of purpose. No longer now did he show signs of hesitation

or wavering; he knew exactly what he wanted. He had left behind him

that period of ideological speculation when he was still a disciple of

Hegel, and he was impelled, as in the autumn of 1837, to envisage,

from his new standpoint, the past and the future. He takes such a

survey in "The Holy Family," which had its genesis in the autumn of

1844, and to which Engels also furnished a slight contribution. It is

a settling of accounts with his former friend and master, Bruno Bauer,

and his brother Edgar, who had not been able to break away from Hegel.

The aim of the book was to force the Young Hegelians into the path of

social criticism, to urge them forward and prevent them from falling

into stereotyped and abstract ways of thinking. It is not easy

reading. In it Marx has compressed the knowledge he then had of

philosophy, history, economics, and Socialism in concentrated and

sharply-cut form. Besides the excellent sketch of English and French

materialism, which among other things discloses in a few short but

pregnant sentences the connection between this and English and French

Socialism, "The Holy Family" contains the germs of the materialistic

conception of history as well as the first attempt to give a social

revolutionary interpretation to the class struggle between Capital and

Labour. In the Introduction to the present book a quotation from "The

Holy Family" has been given. Speaking against Bauer's conception of

history, Marx says: "Or can he believe that he has arrived even at the

beginning of a knowledge of historical reality so long as he excludes

science and industry from the historical movements? Or does he really

think that he can understand any period without having studied, for

example, the industries of that period, the immediate means of

production of life itself?... In the same way as he separated thought

from the senses, the soul from the body, and himself from the world,

so he separates history from science and industry, and he does not see

the birthplace of history in coarse, material production upon earth

but in the nebulous constructions in the heavens."--("Posthumous

Works," Vol. II., pp. 259-60.)

Bruno Bauer, who believed in the world-swaying might of the idea, but

would not concede that the masses had any power whatever, wrote: "All

the great movements of history up to this time were therefore doomed

to failure and could not have lasting success, because the masses had

taken an interest in them and inspired them--or they must come to a

lamentable conclusion because the underlying idea was of such a nature

that a superficial apprehension of it must suffice, that is to say, it

must reckon on the approval of the masses."

Marx's answer to this was that "the great historical movements had

been always determined by mass interests, and only in so far as they

represented these interests could the ideas prevail in these

movements; otherwise the ideas might indeed stir up enthusiasm, but

they could not achieve any results. The idea always fell into

disrepute in so far as it differed from the interest. On the other

hand, it is easy to understand that, when it makes its first

appearance on the world-stage, every mass interest working itself out

in history far exceeds, as an idea or in its presentation, its actual

limits and identifies itself purely and simply with the interest of

humanity. Thus the idea of the French Revolution not only took hold of

the middle classes, in whose interest it manifested itself in great

movements, but it also aroused enthusiasm in the labouring masses, for

whose conditions of existence it could do nothing. As history has

shown, then, ideas have only had effective results in so far as they

corresponded to class interests. The enthusiasm, to which such ideas

gave birth, arose from the illusion that these ideas signified the

liberation of mankind in general."--("Posthumous Works," Vol. II., pp.

181-3.)

In August, 1844, Marx published under the title "Marginal Notes" in

the Paris _Vorwaerts_ a lengthy polemic against Ruge, which is a

defence of Socialism and revolution and takes the part of the German

proletariat against Ruge. "As regards the stage of culture or the

capacity for culture of the German workers, let me refer to Weitling's

clever writings, which in their theoretical aspect often surpass those

of Proudhon, however much they may fall behind them in execution.

Where would the middle classes, their scholars and philosophers

included, be able to show a work like Weitling's 'Guarantees of Peace

and Concord' bearing on the question of emancipation? If one compares

the insipid, spiritless mediocrity of German political literature with

this unconstrained and brilliant literary debut of the German workers,

if one compares these gigantic baby shoes of the proletariat with the

dwarfishness of the worn-out political shoes of the German middle

classes, one can only prophesy an athletic stature for the German

Cinderella. One must admit that the German proletariat is the

philosopher of the European proletariat, just as the English

proletariat is its political economist and the French proletariat its

politician. One must admit that Germany is destined to play just as

classic a role in the social revolution as it is incompetent to play

one in the political. For, as the impotence of the German middle

classes is the political impotence of Germany, so the capacity of the

German proletariat--even leaving out of account German philosophy--is

the social capacity of Germany."

At that time (1844) Marx had already begun to mix among the German

working classes resident in Paris, who clung to the various Socialist

and Anarchist doctrines which then held sway, and he sought to

influence them according to his own ideas. With Heine, too, who at

that time was coquetting with Communism, he carried on a sprightly and

not unfruitful intercourse. He likewise came into frequent contact

with Proudhon, whom he endeavoured to make familiar with Hegelian

philosophy. Already in his first work, "What is Property?" (1840)

Proudhon had played with Hegelian formulae, and Marx probably believed

that he could win him over to Socialism. Proudhon, who, like the

German Weitling, sprang from the proletariat, ushered in his activity

as a social theorist with the above-mentioned work, which had a

stimulating effect on Marx and on German Socialists in general, all

the more so as Proudhon manifested some acquaintance with classical

German philosophy. In this book ("What is Property?" German edition,

1844, p. 289) he sums up the whole matter as follows: "Expressing this

according to the Hegelian formula, I should say that Communism, the

first kind, the first determination of social life, is the first link

in social evolution, the _thesis_; property is the antagonistic

principle, the _antithesis_; if only we can get the third factor, the

_synthesis_, the question is solved. This synthesis comes about only

through the cancelling of the thesis by the antithesis; one must

therefore in the last instance examine its characteristics, discard

what is anti-social, and in the union of the remaining two is then

seen the real kind of human social life."

That was indeed a superficial conception of Hegelian dialectics, for

what Proudhon wanted to find was not a synthesis but a combination;

still for a French working man it was a smart performance to have

manipulated German philosophical formulae, and would justify the most

sanguine hopes. Marx did not want to let this opportunity slip, and in

"debates both late and long" he discussed Hegelian philosophy with

Proudhon.--(Marx: "The Poverty of Philosophy," German edition,

Stuttgart, 1885, p. 29.)

In the midst of this activity, however, Marx and other German

contributors to the Paris _Vorwaerts_ were expelled from France in

January, 1845, at the instigation of the Prussian Government. Marx

packed up his traps and left for Brussels, where he lived, with short

interruptions, until the outbreak of the European Revolution in

February, 1848. During his sojourn in Brussels his time was occupied

mainly with economic studies, for which Engels placed his library of

works on political economy at his disposal. Marx embodied the result

of these studies in the criticism directed against Proudhon in his

"Misere de la Philosophie" (Poverty of Philosophy), published in 1847.

IV. CONTROVERSY WITH PROUDHON.

Marx's "Misere de la Philosophie" indicates the culmination of the

fist phase of his creative work. In this critical review he makes his

position clear with respect not only to Proudhon but to Utopian

Socialism in general. It marks also the turning point in the studies

of Marx: English political economy occupied henceforth the place which

German philosophy had held. The anti-Proudhon controversy is therefore

worthy of a fuller treatment.

Pierre Joseph Proudhon (b. 1809 in Besancon, d. 1865 in Paris) was one

of the most gifted and most distinguished of social philosophers which

the modern proletariat has produced. He was originally a compositor,

like his similarly minded English contemporary, John Francis Bray, the

author of "Labour's Wrongs," published in 1839, but he had a much

greater inclination for study and a more fruitful literary talent. He

managed to acquire, self-taught, a knowledge of the classical

languages, of mathematics and of science, read assiduously but

indiscriminately works on economics, philosophy, and history, and

applied himself to social criticism. It is rare for a working man in

the West of Europe to feel impelled to make an acquaintance with Kant,

Hegel, and Feuerbach as Proudhon did through French translations and

through intercourse with German scholars in Paris. He possessed the

noble ambition of blending French sprightliness with German

thoroughness. But self-instruction failed to give him that

intellectual training which is more valuable than knowledge, and which

alone gives the power to order and to utilise the information

acquired, as well as to submit one's own work to self-criticism. The

value of a systematic education does not consist in the main in the

acquisition of knowledge but in the training of our intellectual

faculties as instruments of inquiry and apprehension, of methodical

thinking and of sound judgment, to enable us to find our bearings more

easily in the chaos of phenomena, experiences, and ideas. A

self-taught man may no doubt attain to this degree of culture, but

only if his first attempts at independent creative work are submitted

to a strict but kindly criticism, which makes him discipline his

thoughts. This was not the case with Proudhon; he lacked mental

self-discipline. His first work, "What is Property?" (1840) brought

him immediate recognition and strengthened him in his high opinion of

his knowledge and his powers, even to the point of making him

conceited. When, for example, the French historian, Michelet,

disapproved of his dictum, "Property is robbery," Proudhon replied,

"Not twice in a thousand years does one come across a pronouncement

like that."--("Economic Contradictions," Leipzig, 1847. Vol. II., p.

301.) And yet the idea is as old as Communism itself. Besides all

this, the vivacity and exuberance of language for which Proudhon was

noted easily blinded him to the shortcomings of his intellectual

culture. Thus it often happened that he rediscovered ideas of his

predecessors and published them to the world with naive pride. Through

page after page of argument he holds the reader in expectation of the

explanation, which he is about to give, of the nature of value, which

he rightly characterises as the "corner-stone of political economy."

At last he will disclose the secret: "It is time to make ourselves

acquainted with this power. This power ... is _labour_." His main

work, "The System of Economic Contradictions," swarms with

philosophical formulae and expressions like thesis, antithesis,

antinomies, synthesis, dialectics, induction, syllogisms, etc., as

also with Latin, Greek, and Hebrew etymologies; it often wanders into

irrelevant theological and philosophical digressions and side issues,

not so much with the intention of parading the author's knowledge as

from his lack of intellectual discipline and insufficient command of

his material. The work in question was to combine German philosophy

with French and English political economy, and its author believed

that it would secure for him before everything else the admiration of

the German Socialists, especially of Marx. He drew the latter's

attention to it by letter, and awaited his "rigorous criticism." The

criticism came in "Misere de la Philosophie" (Brussels, 1847), but it

could no longer fulfil its purpose, as the fundamental difference

between the two men had already widened to a gulf that could not be

bridged. Marx had almost completed his materialistic, logical, and

revolutionary Socialism, Proudhon had laid the foundations of his

peaceful Anarchism with its federative economic basis. With his

searching analysis, his systematised knowledge, and his great

indignation at the presumptuous attacks on every Socialist school and

leader, Marx sat in judgment upon Proudhon, exposing him as a

dilettante in philosophy and economics, and at the same time

sketching in outline his own conception of history and economics.

Marx's verdict is damning, yet one cannot but acknowledge that

Proudhon, in spite of his obvious insufficiency, had endeavoured,

honestly and zealously, to extricate himself from Capitalism as well

as from Utopianism, and to outline a scheme for an economic order, in

which men, such as he had found them, might lead a free, industrious,

and righteous life. The task which Proudhon had set himself was the

same as that which engaged the attention of Marx, the criticism of

political economy and of the sentimental Utopian Socialism. That is

the key-note of Proudhon's system, and it is sounded in almost every

chapter. He lacked, however, the requisite knowledge and the

historical sense which alone could have made him equal to his task.

The whole of his criticism consists virtually in the complaint that

riches and poverty accumulate side by side, and that the economic

categories--use value, exchange value, division of labour,

competition, monopoly, machinery, property, ground rent, credit, tax,

etc.--manifest contradictions. Proudhon's special problem was the

following: "The workers of any country produce yearly goods to the

value, let us say, of 20 milliards. But if the workers, as consumers,

wish to buy back these goods they have to pay 25 milliards. The

workers are thus cheated out of a fifth. That is a terrible

contradiction."--("What is Property?" Chap. IV.; "Economic

Contradictions," Vol. I., pp. 292-93.) This statement of the problem

shows that Proudhon had no inkling of the essential features of the

question of value, in spite of the fact that he cites Adam Smith,

David Ricardo, etc., whom he must therefore have read. Had he really

understood these economists and taken up his critical attitude towards

them from the standpoint of justice, he would have stated the problem

somewhat as follows: "The workers of any country produce yearly goods

to the value, say, of 20 milliards. For their work, however, they

receive as wages a quantity of goods of the value of only 10 or 12

milliards. Is that just?" Only this way of stating the question could

possibly have revealed to him the nature of wages, of value, of

profit, of capital and its contradictions. Proudhon sees the

perpetration of fraud or robbery in the sphere of exchange and not in

that of production, and he does not ask himself how, if labour

produces goods to the value of only 20 milliards, they can be

exchanged at a value of 25 milliards, and what is responsible for the

increase of five milliards. The other contradictions which he brings

forward are not indeed new, but they are ingeniously treated. For

example: the essence of exchange-value is labour, which creates

wealth; but the more the wealth produced, the less becomes its

exchange-value. Or this: the division of labour is, according to

Smith, one of the most effective means of increasing wealth, but the

further the division of labour proceeds the lower sinks the workman,

being reduced to the level of an unintelligent automaton engaged in

the performance of a fractional operation. The same thing holds good

for machinery. So, too, competition stimulates effort, but brings much

misery in its train by leading to adulteration, sharp practices, and

strife between man and man. Further, taxation should be proportional

to riches, in reality it is proportional to poverty. Or again, private

ownership of land ought to increase productivity; in practice it

deprives the farmer of the land. In this way he runs to earth the

contradictions in political economy, and so we find everywhere the

words thesis and anti-thesis or antinomies (contradictions between two

well-established propositions). And out of this contradiction springs

poverty. The solution or the synthesis is the creation of an economic

order which shall preserve the good elements in this category and

eliminate the bad ones, and so satisfy the demands of justice. And

that is what Socialism cannot do. "For the economic order is based

upon calculations of an inexorable justice and not upon those angelic

sentiments of brotherhood, sacrifice, and love which so many

well-meaning Socialists of the present time are endeavouring to awake

in the people. It is useless for them to preach, after the example of

Jesus Christ, the necessity for sacrifice, and to set an example of it

in their own lives: selfishness is stronger than they and can only be

restrained by rigid justice and immutable economic law. Humanitarian

enthusiasm may cause upheavals which are conducive to the progress of

civilisation, but such emotional crises, like the fluctuations in

value, simply result in the establishing of law and order on a more

rigid and more restricted basis. Nature or the Deity planted mistrust

in our hearts, having no faith in the love of man for his fellow men;

and though I say it to the shame of the human conscience (for our

hypocrisy must be confronted with it sooner or later), every

disclosure which science has made to us concerning the designs of

providence with respect to the progress of society points to a deeply

rooted hatred of mankind on God's part."--("System of Economic

Contradictions or the Philosophy of Poverty," Vol. I., p. 107.) Just

as severely does he denounce the institution of Trade Unionism and

its methods of warfare, together with State politics, as indeed the

working of class organisation and of the State generally. The only way

to realise social justice is to create a society of producers who

exchange their goods among one another according to their equivalents

in labour and carry on work in adequate relationship to the production

of wealth, or, to put it clearly, to establish an order where supply

and demand balance one another.

Marx's answer to the "Philosophy of Poverty" is indicated at once by

the title "The Poverty of Philosophy." He deals first of all with the

economic details of Proudhon's work, and proves with documentary

evidence that the theses and antitheses it contains partly spring from

a half-understood reading of English and French political economists,

and in part have been taken direct from the English Communists. Marx

already displays in this section an extensive knowledge of economic

literature. Then he confronts Proudhon's philosophical and social

theories with his own deductions and gives many positive results.

Marx's main object was to induce the Socialists to give up their

Utopianism and think in terms of realism, and to regard social and

economic _categories_ in their historical setting:

"Economic _categories_ are only the theoretical expressions, ideal

conceptions of the conditions of production obtaining in society....

Proudhon has grasped well enough that men manufacture cloth, linen,

etc., under certain conditions of production. But what he has not

grasped is that these social conditions themselves are just as much

human products as cloth, linen, etc. Social conditions are intimately

bound up with productive power. With the acquisition of new productive

power men change their methods of production, and with the change in

the methods of production, in the manner of obtaining a livelihood,

they change their social conditions. The hand-mill gives rise to a

society with feudal lords, the steam-mill to a society with industrial

capitalists. But the same men who shape the social conditions in

conformity with the material means of production, shape also the

principles, the ideas, the _categories_ in conformity with their

social conditions. Consequently these ideas, these _categories_, are

just as little eternal as are the conditions to which they give

expression. They are the transitory and changing products of history.

We are living in the midst of a continuous movement of growth in

productive power, of destruction of existing social conditions, of

formation of ideas."--("Poverty of Philosophy," Stuttgart, 1885, pp.

100-101.)

Here it should, above all, be noticed that Marx ascribes to

industrialism a powerful revolutionary effect, and that he

characterises the different forms of society by their different

methods of labour. Or, as he says later in "Capital," "not _what_ is

produced, but _how_ it is produced distinguishes the various forms of

society." What he means to say, then, is that ideas and systems are

limited by their time, that they are conditioned by the prevailing

means of production. To understand them one must study the times which

have preceded them, as well as investigate the ideas and systems

themselves, and find out whether new forms have not arisen which stand

in contradiction or in contrast to the old one. Or, as Marx says:

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