III.

CAPITALISM AND SOCIAL IDEAS

(CAPITAL AND HUMAN LABOUR)

To form an opinion as to what the course of action is in the social

field, which the facts of the day are so loudly demanding, is only

possible, if one is willing to be guided in one's opinion by an insight

which goes below the surface, to the fundamental forces of the social

organism. The following introductory remarks are the outcome of an

effort to arrive at such an insight. Nothing profitable can be done in

the present day with social measures based on opinions that are drawn

from a restricted sphere of observation. The facts that have grown

out of the social movement reveal disturbances at the foundations

of the social order, not merely surface ones. And to cope with these

facts one needs an insight that also goes to the root of things.

Capital and Capitalism, as talked of to-day, indicates something

in which the working-class portion of mankind look for the cause

of their grievances. But to come to any profitable conclusion as

to the part played by capital within the social processes, whether

for good or ill, one must first be perfectly clear as to the way in

which capital is produced and consumed, through the agency of men's

individual abilities, of the "rights" system, and of the forces of

economic life. Human labour one talks of, as the thing that, together

with capital and the nature-basis of industry, goes to the creation

of economic values, and through which the worker becomes conscious

of his social position. To arrive however at any conclusion, as to

the proper way of working human labour into the whole social organism

without injuring the worker's sense of self-respect as a human being,

one needs to keep clearly in sight the relation that human labour

bears, on the one hand to individual ability and its development, and

on the other to the common sense of right, the "rights-consciousness."

At the present moment people are very justly asking: What is the most

immediate step to be taken in order to satisfy the claims that the

social movement has brought to the front? But there is no taking even

the most immediate step to good purpose, without first knowing how

what one is trying to do is related to the fundamental principles of a

healthy social order. And once one knows this, then, in whatever place

one may find oneself, or whatever place one may select to work in,

one will discover the particular task that requires doing under the

circumstances. The obstacle to acquiring the kind of insight implied

here, lies in that element of human will-power, which during the slow

course of years has crystallised into social institutions. Men have

so grown into these institutions, that the institutions themselves

form the standpoint from which they view them and consider, what to

change and what to leave. Their thoughts follow the lead of the facts,

instead of mastering them.

To-day, it is necessary to see, that one cannot form any judgment

adequate to the facts, without going back to those primal creative

thoughts which underlie all social institutions. The body social

requires a constant fresh supply of the forces that reside in

these primal thoughts; and if the suitable channels are not there,

through which these forces can flow, then social institutions assume

forms which impede life, instead of furthering it. But although the

conscious thoughts of men may go astray, although they may,--and

have,--created facts that impede life, yet these primal thoughts live

on in men's instinctive impulses. Tumultuously and destructively

they break against the world of established facts that hem them

in; and these primal thoughts it is, which open or disguised, find

their way out in convulsions that threaten to overthrow the social

order. Such revolutionary convulsions will not cease to occur, until

the body social takes a form, in which there may be always both an

inclination to notice when any institution is beginning to deviate

from its first intention in those primal thoughts, and at the same

time the possibility of counter-acting every such deviation before

it becomes strong enough to be a danger. In our times, the actual

conditions, throughout a wide range of human life, have come to

deviate very widely from what the primal thoughts require. And these

primal thoughts, as they live on in the impulses of the human soul,

are a commentary,--a commentary that voices itself loudly enough

in facts,--of what has been taking shape in the body social during

the last few centuries. What is wanted, is good will and vigorous

resolution to turn again to these primal thoughts. We must not be

blind to the mischief that is done, especially at this moment, by

dismissing these primal thoughts from the field of actual life as

"unpractical generalities." The facts of life itself, and the claims

of the working-class masses, afford a practical commentary on what the

modern age has made of the body social. The task of our age, in face

of these facts, is not merely to criticise, but to set about remedying

them; which means going to the primal thoughts for the direction in

which we must now consciously guide them. For the time is gone by,

when the old instinctive guidance could suffice for mankind; what it

could accomplish up till now, is now no longer enough.

One of the main questions raised by the practical criticisms of

the times is this:--How is a stop to be put to the oppression which

working-class humanity suffers under private capitalism. The owner,

or controller, of capital is in a position to press other men's

bodily labour into the service of any work he takes on hand? In

the social relation that arises in the co-operation of capital and

human labour-power, there are three elements to be distinguished:

the enterprising activity, which must rest on the basis of individual

ability in some one person or group of persons;--the relation of the

"enterpriser" to the worker, which must be a "relation in right";--and

the production of an object which acquires a commodity value in the

circuit of economic life. For the "enterprising" activity to find

its scope in a healthy way in the social order, there must be forces

at work in social life which afford men's individual abilities the

best possible mode of manifesting themselves; and therefore there

must be one province of the body social which secures a person of

ability free occasion for the employment of his abilities, and makes

it possible to leave the estimation of their value to other people's

free and voluntary understanding.

It is obvious, that the social activities, which a man is enabled to

exercise by means of capital, fall within that domain of the body

social which takes its laws and administration from the spiritual

life. If the political State interferes to influence these personal

activities, then it is unavoidable that its influence should involve

a disregard of individual abilities. For the political State is

necessarily based on what is similar and equal in all men's claims

in life; and it is its business to translate this equality into

practice. Within its own domain, the State must ensure every man

having a fair chance to make his personal opinion tell. For the work

the State has to do, the question of understanding or not understanding

individualities does not come in; and therefore whatever the State does

towards realising its own principles ought not to have any influence

upon the exercise of men's individual abilities. Nor should it be

possible for the prospect of economic advantage to determine the

exercise of individual ability where capital is needed. Many persons

in weighing the pros and cons of capitalism lay great stress upon this

economic advantage. In their opinion, it is only through the incentive

which this gives to individual ability that individual ability can be

induced to exert itself; and they refer, as "practical men" to the

"imperfections of human nature," with which they claim to be well

acquainted. No doubt, in that social order, under which the present

state of things matured, the prospect of economic advantage has come

to play a very important part, and is in no small measure the very

cause of that state of things, of which we are now feeling the effects,

and which calls for the development of some other, different incentive

to the exercise of individual ability. This incentive must lie in the

"social sense," that will spring from a healthy spiritual life. Strong

in the freedom of the spiritual life, a man's education and schooling

will send him forth equipped with impulses, that will lead him, thanks

to this social sense, to realise the bent of his personal abilities.

There is not necessarily anything high-flown or visionary about such

a belief. No doubt high-flown illusions have wrought immeasureable

harm in social endeavour, as in other fields. But all that has been

said before is enough to shew, that the view here urged is not based

on any fanciful notion that "the spirit" will work wonders, provided

the "spiritually-minded" only talk enough about it. It is the outcome

of observation, of watching how people actually work, when they work

together freely in the spiritual field. This work in common, takes,

of its own nature, a social character, provided it can develope in

real freedom.

It is only the lack of freedom in spiritual life, which has kept

its social character in abeyance. The fashion in which the forces

of social life have found expression amongst the leading classes,

has restricted their use and value to limited circles of mankind,

in a way which is anti-social. What was produced in these circles

could only be brought artificially within reach of working-class

mankind. This section of mankind could draw no strength for the support

of their souls from this spiritual life; for they had no real part nor

property in it. Schemes for "popular instruction," for "the uplifting

of the masses," "Art for the People," and so forth,--all such things

are not really the means of spreading spiritual property amongst the

people, whilst spiritual property keeps the character it has acquired

in recent times. For "the people," as regards their inmost life and

being, are not in it. All that it is possible to give them, is as

it were a bird's-eye view of these spiritual treasures from a point

outside. And if this is true of spiritual life in its narrower sense,

it has also its meaning for those offshoots of spiritual activity,

which find their way into economic life on the basis of capital. In a

sound order of society, the worker will not stand at his machine, and

come into contact with nothing but its mechanism; whilst the capitalist

alone knows what is the destiny of the manufactured commodities in

the round of economic life. The workman must share fully in the whole

concern, and be able to form a distinct conception of the part that

he himself is playing in social life through his work in making the

commodity. The enterpriser must hold regular conferences, with the

object of arriving at a common field of ideas that shall include both

employers and employed. Such conferences must be regarded as being

as much a part of the business as the actual work. This is a healthy

way of conducting business, and one that will arouse in the workers

a sense, that by the control of capital, if he uses it properly,

a person benefits the whole community,--including the worker, as

a member of it. The above-board dealing, necessary to a willing

understanding on the part of others, will make the "enterpriser"

careful to keep his business methods above suspicion.

All this will not seem negligible to anyone with a sense for the

social effects of that inner community of feeling and experience,

which arises from the prosecution of a common task. Those who possess

this sense, will clearly perceive, how greatly it is to the benefit

of economic activity that the direction of economic affairs, based on

capital, should come from the spiritual life, and have its roots in

the spiritual domain. This preliminary condition must be fulfilled,

before people's present interest in capital and in increasing it

simply for the sake of profits, can give place to an interest in the

actual business of production and the doing of the job on hand.

Persons of a socialist turn of mind at the present day aim at bringing

the means of production under the control of the community. What is

right and desirable in their aims can only be achieved if this control

is exercised through the free spiritual domain. Such control through

the free spiritual domain will do away with all possibility of that

economic coercion, which brings with it such a sense of degradation,

and which the capitalist exerts when his capitalist activities are

born and bred of the forces of economic life; and it will also prevent

that crippling of men's individual abilities, which inevitably results

when these abilities are directed by the political State.

Earnings on everything done through capital and individual ability

must depend in a healthy social order, like all other spiritual work,

on the free initiative of the doer and on the free appreciation of

those who wish the work done. The estimate of what these earnings

should be, must, in this field, be in accordance with a man's own

free view--on what he is willing to regard as a suitable return

on his work, taking into consideration the preliminary training he

requires for it, the incidental expenses to which he is put, etc.,

etc. Whether he finds his claims gratified or not, will depend on

the appreciation his services meet with.

Social arrangements on the lines here proposed will lay the basis

for a really free contractual relation between the work-director

and the work-doer,--a relation resting not on barter of commodities

(or money) for labour-power, but on an agreement as to the share due

to each of the two joint authors of the commodity.

The sort of service, that is rendered to the body social on the

basis of capital, depends of its very essence on the part played in

it by men's individual abilities. Nothing but the free spiritual

life can give men's abilities the impulse they need for their

development. Even in a society, where the development of individual

ability is tied up with the administration of the political State,

or to the forces of economic life, even there, real productivity, in

everything requiring the expenditure of capital depends on as much

of free individual power as can find its way through the shackles

imposed upon it. Only, under such conditions, the development is an

unhealthy one. It is not the free development of individual ability,

exercised on a basis of capital, that has brought about conditions

under which human labour-power can be nothing but a commodity; it is

the shackling of these powers through the political life of the State

or in the circuit of economic processes. An unprejudiced recognition of

this fact is at the present day a necessary first step to everything

that has to be done in the field of social organisation. For the

superstition has grown up in modern times, that the measures needed

for the welfare of society must come from either the political State

or the economic system. And if we pursue any further the road along

which this superstition has started us, we shall set up all manner

of institutions, that, far from leading man to the goal towards which

he is striving, will increasingly aggravate the oppressive conditions

from which he is seeking to escape.

At the time when people first began to think about the question of

capitalism, this same capitalism had already set up a disease in the

body social. The disease is what people feel and are aware of. They

see that it is something which has to be counteracted. But one must

see further than that; one must recognise, that the origin of the

disease lies in the fact, that the creative forces, at work in capital,

have been absorbed into the circuit of economic life. If one is to

work in the direction already urgently demanded by the evolutionary

forces of mankind, one must not suffer oneself to be deluded by the

type of thought, which regards as an unpractical piece of idealism

the demand, that the spiritual life should be set free, and given

control of the employment of capital.

At the present moment, certainly, people seem but little disposed to

connect the spiritual life in any way directly with that social idea,

which is to put capital on sound lines. They try to connect onto

something that falls within the circuit of economic life. They

see, that the manufacture of commodities in recent times has

led to wholesale dealing, and this again to the present form of

capitalism. And now they propose to replace this form of industrial

economy by a syndical system, under which the producers will be working

for their own wants. But since of course industry must retain all the

modern means of production, the various industrial concerns are to be

united together into one big syndicate. Here, they think, everyone will

be producing to the orders of the community, and the community cannot

be an exploiter, because it would simply be exploiting itself. And

for the sake, or from the necessity, of linking onto something that

already exists, they turn their eyes on the modern State, with a

view to converting this into a comprehensive syndicate. One thing

however they leave out of their reckoning, namely, that the bigger

the syndicate the less possibility there is of its being able to do

what they expect of it. Unless individual ability finds its place

in the syndical organism in the manner and form already described,

it is impossible that communal control of labour should result in a

healthy commonwealth.

The reason why people are so ill-disposed to-day to form an unbiassed

opinion as to the position spiritual life occupies in the social order,

is that they are accustomed to think of what is spiritual as being

at the opposite end from all that is material and practical. Not a

few will find something rather absurd in the view here put forward,

that the employment of capital in economic life must be regarded as

the way in which one side of the spiritual life manifests itself. It

is conceivable, that in characterising what is here said as absurd,

members of the late ruling classes may even find themselves in

agreement with socialist thinkers. If one would see all that this

supposed absurdity means for the health of the body social, one must

examine certain currents of thought in the present day,--currents

of thought, which spring from impulses in the soul, that are quite

honest after their fashion, but which nevertheless, wherever they find

entrance, check the development of any really social way of thinking.

These currents of thought tend more or less unconsciously away from

all that gives due energy and driving power to the inward life. They

make for a conception of life,--an inner life of thought, of soul,

directed to the pursuit of knowledge,--which shall be as it were an

island in the common sea of human existence. Thus they are not in a

position to build the bridge between this inner life and that other

which binds men to the everyday world. It is not uncommon to-day,

to find persons who think it rather "distinguished" to sit aloft in

castles of cloudland, meditating in somewhat pedantic abstractness over

all manner of ethico-religious problems. One finds them meditating

on virtue and how a man may best acquire it; how he should dwell in

loving-kindness towards his neighbours, and how he may be so blessed

as to find "a meaning in life." And, all the time, one recognises the

impossibility of bridging the gulf between what these folks call good,

and sweet, and kindly, and right, and proper, and all that is going

on in the outer world amongst men's everyday surroundings, in the

manipulation of capital, the payment of labour, the consumption,

production and circulation of commodities, the system of credit

banking, and the stock-exchange. One can see two main streams running

side by side even in men's very habits of thought, one of which remains

up aloft as it were in divine spiritual altitudes, and has no desire to

build a bridge from spiritual impulses to life's ordinary affairs. The

other stream runs on, void of thought, in the everyday world. But life

is a single whole. It cannot thrive unless the forces that dwell in all

ethical and religious life bring driving power to the most commonplace,

everyday things of life, into the sort of life that some persons may

think rather beneath them. For, if people neglect to build the bridge

between the two regions of life, then not only their religious and

moral life, but their social thinking too, degenerates into mere wordy

sentiment, far removed from commonplace, true realities. And then these

commonplaces have their revenge as it were. For there is then still

a sort of "spiritual" impulse in man, urging him in pursuit of every

imaginable ideal and every conceivable thing that he calls "good";

whilst on the other side there are those different instincts, which

are in opposition to these ideals,--the instincts that underlie the

ordinary daily needs of life and require an economic system for their

satisfaction, and to which he devotes himself minus his spirit. He

knows no practicable path from his conception of spirituality to

the business of everyday life. And so everyday life acquires a form,

which is not even supposed to have any connection with those ethical

impulses that remain aloof in the more distinguished altitudes, all

soul and spirit. And then, the daily commonplaces are avenged; for

the ethical religious life turns to a living lie in men's hearts,

because, all unperceived it is being dissevered from commonplace

practice and from all direct contact with life.

How many people there are to-day, who, from a certain ethical or

religious distinction of mind, have all the will to live on a right

footing with their fellow-men, who desire to act by others only in

the best conceivable way, and yet fall short of the kind of feeling

that would enable them to do so, because they cannot lay hold upon

any social conception that finds its outlet in practical habits of

life! It is people such as these, who, at this epoch-making moment

in the world's history when social questions have become so urgent,

are blocking the road to a true practice of life. They reckon

themselves very practical persons, and all the time are visionary

obstructionists. One can hear them making speeches like this: "What

is really needed, is for people to rise above all this materialism,

this external material life which drove us into the disaster of the

great war and into all this misery. They must turn to a spiritual

conception of life." And to illustrate man's path to spirituality,

they are forever harping upon great men of byegone days, who were

venerated for their conversion to a spiritual way of thinking. One

finds, however, that directly one tries to bring the talk round to

the very thing that the spirit has to do for real practical life,

and what is so urgently required of the spirit to-day: the creation of

daily bread, one is at once reminded, that the first thing, after all,

is to bring people again to acknowledge the spirit. At this moment

however, the urgent thing is, to employ the powers of the spiritual

life to discover the right principles of social health. And for this

it is not enough that men should make a hobby of the spirit, as a

bye-path in life. Everyday existence needs to be brought into line

with the spirit. It was this taste for turning spiritual life into

bye-paths, that led the late ruling classes to find their pleasure

in social conditions that ended in the present state of affairs.

In the social life of the present day, the control of capital for

the production of commodities is very closely bound up with the

ownership of the means of production, amongst which capital is of

course included. And yet these two relations between man and capital

are quite different as regards the way they operate within the social

system. The control of capital by individual ability is, when suitably

applied, a means of enriching the body social with wealth which it is

to everyone's interest should exist. Whatever a person's position in

life, it is to his interest that nothing should be wasted of those

individual abilities which flow from the fountain-head of human

nature, and through which things are created that are of use to

the life of man. These abilities, however, never become developed,

unless the human beings endowed with them have free initiative in

their exercise. Any check to the free flow from these sources means

a certain measure of loss to the welfare of mankind. Now capital is

the means of making these abilities available for extended fields

of social life. It must be to the true interests of everybody in a

community to have the collective property in capital so administered,

that individuals specially gifted in one direction, or groups of

people with special qualifications, should be able to acquire the

use of capital, and should use it in the way their own particular

initiative prompts them. Everybody, be he brainworker or labourer, if

he consults his own interests without prejudice, must say: "I should

not only wish an adequate number of persons, or groups of persons,

to have absolutely free use of capital, but I should also like them

to have access to capital on their own initiative; for they themselves

are the best judges of how their particular abilities can make capital

a means of producing what is useful to the body social."

It does not fall within the scope of this work to describe how, in the

course of mankind's evolution, as individual human abilities came to

play a part in the social order, private property also grew up out of

other forms of ownership. Ownership has, under the influence of the

division of labour, gone on developing in this form within the body

social down to the present day. And it is with present conditions that

we are here concerned, and with what the next stage in their evolution

must be. But in whatever way private property arose,--by the exercise

of power, conquest, etc.,--it is an outcome of the social creativeness

which is associated with individual human ability. And yet socialists

to-day, with their thoughts bent upon social reconstruction, hold the

theory, that the only way to obviate what is oppressive in private

ownership, is to turn it into communal ownership. They put the question

thus: How can private property in the means of production be prevented

from arising, so that its oppressive effect upon the unpropertied

masses may cease? In putting the question in this way, they overlook

the fact, that the social organism is something that is constantly

changing, growing. One cannot ask about a growing organism. What is

the best form of arrangement to preserve it in the state which one

regards as the suitable one for it. One can think in that way about

something which starts at a certain point and then goes on in the same

way ever afterwards without any essential change. But that will not do

for the body social. Its life is a continual changing of each thing

as it arises. To fix on some form as the very best, and expect it to

remain in that form, is to undermine the very conditions of its life.

One of the conditions of life for the body social is, that whoever

can serve the community through his individual abilities should not be

deprived of the power to do so freely of his own initiative. Where such

service involves free use of the means of production, to hamper free

initiative would be to injure the general social interests. I am not

proposing here to urge the argument commonly used in this connection,

namely, that the prospect of the gains associated with the ownership of

means of production is needed in order to stimulate the "enterpriser"

to exertion. The whole form of thought represented in this book,

with its conception of a progressive evolution in social conditions,

must lead to the expectation, that this kind of incentive to social

activity may be eliminated, through the emancipation of the spiritual

life from its association with the political and economic system. Once

it is free, the spiritual life will of itself inevitably evolve a

social sense; and this social sense will provide incentives of a very

different kind from the hope of economic advantage. But it is not so

much a question of the kind of impulse which makes men like private

ownership of the means of production, as of whether the necessary

conditions of life for the body social are best fulfilled when the

use of the means of production is free, or when it is directed by the

community. And here, one must always clearly remember, that one cannot

draw conclusions for the social organism of the present day from the

conditions of life supposed to be found in primitive communities, but

from such only as correspond to man's present stage of development. At

the present stage, it is not possible for individual ability to find

fruitful exercise through capital in the round of economic life,

unless its use of capital is free. For fruitful results in any field

of production there must be opportunity for the free use of capital;

not because it gives an advantage to some individual or group; but

because, opportunely directed by a social sense, it is the best way

of serving the community. Whether he is producing alone or in company,

the material a man is working on is in a manner bound up with himself,

much like the skill of his own arms or legs. To interfere with his

free use of the means of production, is like crippling the free

exercise of his bodily skill. Private ownership, however, is simply

the medium for this free use of the means of production. As regards

ownership, all that matters to the body social, is that the owner

should have the right to use it of his own free initiative. Clearly,

two things are joined together in social life, that are of quite

distinct implications for the body social--one, the free use of the

capital basis of social production; the other, the "relation in right"

which arises between the user of capital and other people, from the

fact that his right of use precludes these other people from free

activity on this same capital basis.

It is not the free use of itself in the beginning, which does the

mischief in society, but the continuance of the right of use after the

circumstances have come to an end which linked that use opportunely

to individual abilities. Anyone who looks upon the social organism as

a changing, growing thing, cannot fail to see what is meant. He will

look about for some possible mode of arranging what is helpful to

life in one way, so that it may not have bad effects in another. For

a live thing, there is no possible mode of arrangement, that can lead

to fruition, in which the finished process in its growth will not in

turn become detrimental. And if one is oneself to collaborate at a

growing organism,--as man necessarily must in the body social,--one's

business cannot lie in checking necessary developments, for the sake

of obviating detrimental consequences. That would be to sap every

possibility of life for the body social. It is solely a question of

intervening at the right moment, when what was helpful and opportune

is beginning to turn detrimental.

Free use of the capital-basis through individual ability:--this must

be an established possibility. The ownership right involved in it

must be shiftable, directly this right begins to turn to a means of

unrightfully acquiring power. There is one institution, introduced

in our times, which partially meets this social requirement, though

only for what one may call "spiritual property." "Spiritual property"

when its author is dead, passes after a while into the ownership of

the community for free use. Here we have an underlying conception,

that is in accordance with the actual nature of life in a human

society. Closely as the production of a purely spiritual possession

is bound up with the private endowment of the individual, yet this

possession is, at the same time, a result of the common social life,

and must pass at the right moment into the common life. But it is just

the same with other property. By aid of his property the individual

person produces for the service of the community; but this is only

possible in co-operation with the community. And accordingly the right

to the use of a piece of property cannot be exercised apart from

the interests of the community. The problem is not, how to abolish

ownership of the capital-basis? but, how can ownership be best turned

to the service of the community?

The way to do so, is to be found in the threefold order of society. The

people combined in the threefold order act as a collective community

through the "rights-State." The exercise of individual abilities

comes under the spiritual organisation.

Everything in the body social indicates the necessity of introducing

this threefold organic arrangement, when regarded with a sense of

actualities, and not from a view entirely dominated by subjective

opinions, theories, predilections, and so forth;--and this question

of the relation of individual abilities to the capital-basis of

economic life and its ownership, is a special case in point. The

"rights-State" will not interfere with the formation and control

of private property in capital, so long as the connection of the

capital-basis with personal ability remains such, that this private

control implies a service to the total community. Moreover, it will

remain a "rights-State" in respect to its dealings with private

property. It will never itself take over the ownership of private

property. It will only ensure that the right of use is transferred at

the right moment to a person or group of persons, who, again, through

individual conditions, are capable of establishing a purely personal

relation to this ownership. This will benefit the body social in two

different aspects. The democratic foundation of the "rights-State,"

being concerned with the everything that touches all men equally,

will enable a sharp watch to be kept, that property rights do not in

course of time become property wrongs. And again,--(since the State

does not itself administer property, but ensures its transference

to individual ability),--men's individual abilities will develope

their fructifying power for the whole body of the community. Under

an organisation of this sort, property rights, or their exercise,

can safely be left attached to a personality, for so long as seems

opportune. One can conceive the representatives in the "rights-State"

laying down quite different regulations at different times as to

the way in which property is to be transferred from one person or

group to another. At the present day, when private property has come

to be regarded altogether with great distrust, the proposal is, to

convert private property wholesale into communal property. If people

proceed far enough along this road, they will find out, that they

are strangling the life of the community; and, taught by experience,

they will then pursue a different path. But it would undoubtedly be

better now, at once, to take measures that would secure social health

on the lines here indicated.

So long as an individual alone, or in combination with a group,

continues to carry on that productive activity which first procured

him a capital-basis to work on, so long he shall retain the right to

use accumulations of capital arising as business gains on the primary

capital where the gains are applied to the productive extension of

the business. Directly this particular personality ceases to control

the work of production, the accumulation of capital shall pass on

to another person, or group, to carry on the same kind of business,

or some other branch of productive industry useful to the whole

community. Capital also, that accrues from a productive industry but

is not used for its extension, must from the beginning go the same

way. Nothing shall count as the personal property of the individual

directing the business, except what he receives in accordance with the

claim he made when he first took over the business--claims, which he

felt able to make on the ground of his personal abilities, and which

appear justified by the fact, that he was able to impress people with

his abilities sufficiently for them to trust him with capital. If

through his personal exertions the capital has been increased, then a

portion of this increment will pass into his private ownership,--the

addition so made to his original earnings representing a percentage

on the addition to the capital. Where the original controller of an

industry is unable, or unwilling, to continue in charge, the capital

used to start it will either pass over to the new controller with all

incumbent obligations, or else will revert to the original owners,

according as these latter may decide.

In such an arrangement, one is dealing with transfers of a right. The

legal regulation of the terms on which such transfers shall take place,

is a matter for the "rights-State." It will be for the "rights-State"

also to see that these transfers are carried out and to conduct the

process. It is conceivable that, in detail, the regulations laid

down for any such transfer of a right will take very various forms,

according as the common sense of right (the "rights-consciousness")

varies in its view of what is right. No mode of conception, which, like

the present one, aims at being true to life, will ever attempt to do

more than indicate the general direction that such regulation should

take. If one keeps to this direction and uses one's understanding,

one will always, in any concrete instance discover what is the

appropriate thing to do. One must judge always from the special

circumstances and according to the spirit of the thing, what the

right course is in actual practice. The more true to life any mode

of thought is, the less it will attempt to lay down hard-and-fast

rules for details, from preconceived notions of what is requisite. On

the other hand, the very spirit of such a form of thought will lead

necessarily and decisively to one result or another. For instance,

it results unquestionably from such a mode of thought, that the

"rights-State" must never use its control of rights-transfers to get

any capital into its own hands. Its only business will be to see,

that the transfer is made to a person, or group, whose individual

abilities seem to warrant it. This at once presupposes also, as a

general principle, that anyone, who is proposing to effect a transfer

of capital under the circumstances described, will be at liberty to

select his successor in the use of it. He will be free to select a

person or group of people, or else to transfer the right of use to a

corporate body belonging to the spiritual organisation. For anyone,

who has rendered practical services to society through his management

of capital is a person likely to judge from native ability and with

social sense, what should be done with the capital afterwards. And it

will be more advantageous to the community to go upon what he decides,

than to discard his judgment, and leave the decision to persons who

have no direct connection with the matter.

Some settlement of this kind will be required in the case of capital

accumulations over a certain amount, which have been acquired

by persons, or groups, through the means of production (including

land),--except where these accumulations become private property by the

terms originally agreed upon for the exercise of individual ability.

In this latter case, what is so earned, as well as all savings that

spring from the results of a person's own work, will remain until

the owner's death, or some later date, in the private possession of

the earner or his descendants. Until this date also, these savings

will draw an interest from the person who is given them to procure

the means of production. The amount of the interest will be the

outcome of the general "rights-consciousness," and be fixed by the

"rights-State." In a social order, based on the principles here

described, it will be possible to effect a complete distinction between

proceeds that are due to the employment of means of production, and

sums accumulated through the earnings of personal labour, spiritual

or physical. It is in accordance with the common sense of right, as

well as to the general social interest, that these two things should

be kept distinct. What a person saves and places at the disposal of a

productive industry, is a service rendered to the general interests,

inasmuch as it makes it possible in the first place for personal

ability to direct production. But where, after deducting the rightful

interest, there is an increase on the capital, arising out of the means

of production, such increase is due to the collective working of the

whole social organism, and must accordingly flow back into it again in

the way above described. All that the "rights-State" will have to do,

is to pass a resolution, that the capital accumulations in question

are to be transferred in the prescribed way. It will not be called

on to decide, which material or spiritual branch of production is

to have the disposal either of capital so transferred or of capital

savings;--for this would lead to the State tyrannising over spiritual

and material production, which are best directed for the body social

by men's individual abilities, as has been shewn. But it will be open

to anyone to appoint a corporate body of the spiritual organisation

to exercise the right of disposal over capital that he has created,

if he does not want himself to select his successor.

Property acquired through saving, together with the interest on it,

will also pass at the earner's death, or a while later, to some person

or group actively engaged in spiritual or material production,--but

only to a producer, not to be turned into an income by someone who

is not producing. The choice will be made by the earner in his last

will. Here again, if no person or group can be chosen direct, it will

be a question of transferring the right of disposal to a corporation of

the spiritual system. Only when a person himself makes no disposition

of his savings, then the "rights-State" will act on his behalf,

and require the spiritual organisation to dispose of them.

In a society ordered on these lines, due regard is paid both to private

initiative on the part of the individual and at the same time to the

social interests of the general community. Indeed the latter receive

their full satisfaction through private initiative being set free to

serve them. Whoever has to entrust his labour to the direction of

another person, can at least know, under such an order of things,

that their joint work will bear fruit to the best advantage of the

community, and therefore of the worker himself.

The social order,--as here conceived,--will establish a proportionate

relation, satisfactory to healthy human sense, between the

prices of manufactured products and the two joint factors of their

production,--namely human labour-power and these rights of use over

capital (embodied in the means of production) which are subject to

the common sense of right. No doubt all sorts of imperfections may

be found in this. Imperfections do not matter. For a mode of thought

that is true to life, what is of importance is not to lay down a

perfect and complete programme for all time, but to point out the

direction for practical work. The special instances, discussed here,

are simply intended as illustrations to map out the direction more

clearly. Any particular illustration may be improved upon; and this

will be all to the good, provided the right direction is observed.

Through social institutions of this kind, personal and family feelings

will admit of being brought into harmony with the claims of general

humanity. It may of course be pointed out, that there will be a

great temptation for people to transfer their property during their

life-time to their descendants, or to some one of them, and that it

is quite easy to give such a person the appearance of a producer,

whilst all the while he may be quite incompetent compared to others,

who would be much better in his place. The temptation to do this,

can however be reduced to a minimum under social institutions of the

above kind. The "rights-State" has only to require, that property,

which is transferred from one member of a family to another, should

under all circumstances, be made over to a corporation of the spiritual

system, after the lapse of a certain period from the first owner's

death. Or an evasion of the rule may be prevented in some other way by

rights-law. The "rights-State" will merely see to it, that the property

is so made over. The spiritual organisation must make provision for

the choice of the person to inherit it. In the fulfillment of these

principles a general sense will grow up, that the next generation

must be trained and educated to fit them for the body social and that

one must not do social mischief by passing capital on to persons who

are non-productive. No one, in whom a real social sense is awakened,

cares to have his own connection with the capital basis of his work

carried on by any individual or group whose personal abilities do

not warrant it.

These proposals cannot be regarded as a mere utopia by anybody who has

a sense of what is really practicable. For the kind of institutions

here proposed are such as spring directly out of existing circumstances

anywhere in life. Only, people will have to make up their minds,

gradually to give up administering spiritual life and industrial

economy within the "rights-State," and not to raise opposition, when

private schools and colleges are started and economic life put on its

own footing,--seeing that this is just what is wanted. There is no

need to abolish the State schools and the State economic undertakings

straight away. But, beginning perhaps in quite a small way, it will

be found increasingly possible to do away with the whole structure

of State education and State economy.

This requires, however, first of all, individuals, convinced that

these, or some such social ideas as these are the right ones, and

able so thoroughly to imbue themselves with their rightness, that

they will make it their business to spread them. Wherever such ideas

find understanding, they will arouse confidence in the possibility of

changing the present state of things into a healthy one, where the

same evils will not arise. But this is the only kind of confidence

which can lead to a really healthy state of things. For, before one

can arrive at any such confidence, one must have a clear perception

in what way, practically, it is possible to connect new institutions

on to the existing old ones. The essential feature of the ideas here

put forward would seem to be, that they do not propose to bring about

a better future by destroying the present social order further than

has already been done; but that their realisation will come through

building upon what already exists; and that as the building-up process

goes on, what is rotten and unsound will fall away. No new views

nor teachings, that do not aim at establishing confidence in this

respect, will attain the object which it is absolutely necessary to

attain, namely, an unbroken course of evolution, in which all that

men have hitherto achieved, the wealth they have worked for, and

the faculties they have won, are not cast to the winds, but stored

up. Even the most sweeping radical may feel confidence in a form of

social reconstruction that still preserves the old heritage, when

he has ideas laid before him which are capable of initiating really

sane and healthy developments. Even he will have to recognise, that

whatever class of men may get into power, they will not be able to

remove existing evils, unless their impulses are supported by ideas

that can put health and life into the body social. To despair,--to

believe it impossible to find a sufficient number of people who, even

in these days of turmoil will have understanding for these ideas, if

only they are spread with enough energy,--this would be to despair

of human nature and of its openness to healthful and purposeful

impulses. Is it desperate? That is not the question to be asked. But

rather, What must I do to give full force to the teaching and spread

of ideas that can awaken men's confidence?

Any effective spread of these ideas will find its first obstacle in the

habits of thought of the present age, which will quarrel with them on

two grounds:--Either it will be objected in some form or another, that

any dismemberment in the unity of the social life is inconceivable,

that its three supposed branches cannot be torn apart, seeing that

in actual practice they are everywhere intertwined. Or else people

will opine, that it is quite possible under the onefold state to

give each of the three branches its necessary independent character;

that all these ideas are mere cobweb-spinning, with nothing in them,

and quite apart from all reality. The first objection comes from

thinking unreally, from presupposing that unity of life is only

possible in a community of human beings, when the unity is introduced

by ordinance. What life in reality requires is, however just the

reverse. Unity must be the result, the final outcome of all the

streams of activity flowing together from various directions. This

idea is the one in accordance with life; but it had the evolution of

the latter age against it; and so the tide of life in men bore down

against the artificial "order" in its path,--and landed in the present

social conditions. The second preconception arises from inability to

distinguish the radical difference in the working of the three systems

of social life. People do not see, that man stands in a separate and

peculiar relation to each of the three; that, for the full development

of its special quality, each of these three relations requires a ground

to itself in actual life, where it can evolve its own form apart from

the other two, in order that all three may combine in their working.

There was a view held in time past by the physiocrats, that,--Either

men make artificial government regulations for economic life, which

check its free expansion,--and then these regulations are harmful;--Or

else, the laws tend in the same direction as economic life does

when left to itself,--and then they are superfluous. As an academic

theory, this view has had its day; but it still crops up everywhere

as a habit of thought, and plays havoc in men's brains. People

think, that if one department of life is guided by its own laws,

then everything else whatever that is needed in life must follow

as a consequence out of this one department. That if, for instance,

economic life were regulated in a way to satisfy men's wants, that

then this well-ordered economic soil would infallibly produce the

right sort of spiritual life and "rights" life as well. But it is

not possible; and only a way of thinking foreign to all reality can

believe it possible. In the circuit of economic life there is nothing

whatever that affords of itself any motive to guide that which runs

all through the relation of man to man and proceeds from the sense of

right. And if people insist on regulating this relation by economic

motive the result will be, that the human being, with his labour and

his control of the means of labour, will be bound hand and foot to the

economic life. Economic life will go on like clockwork, and man will

be a wheel in it,--Economic life has a tendency always to go on in

one course, which needs rectifying from another side. It is neither,

that the "rights" regulations are good, provided they move in the

course set by economic life--nor, that when they run counter to it,

they are bad. But rather, that if the course taken by economic life

is constantly under the influence of those rules of "right" which

concern man simply as man, then a human existence within the economic

life becomes possible. And not till individual ability grows on its

own ground, quite detached from the economic system, conveying ever

afresh to economic life those forces that economics and industry

are powerless to produce, can economic life itself develope in a

way beneficial to men. It is a curious thing:--in purely external

matters, people are ready enough to see the advantage of a division

of labour. They do not expect a tailor to milk his own cow. But

when it comes to a general division and co-ordination of human life,

then they think that no good can come of anything but a onefold system.

That social ideas which follow the line of real life will rouse

objections on every side, is a matter of course. For real life

breeds contradictions. And anyone, who is thinking in accordance with

life, will determine on realising arrangements that involve living

contradictions, needing again other arrangements to reconcile them. He

must not suppose, that an institution which is demonstrably, to his

thinking, an "ideally perfect" one, will involve no contradictions when

realised in practice. The socialism of the present day is absolutely

justified in laying down the proposition, that the institutions of the

modern age, in which production is carried on for individual profit,

must be replaced by a different system, under which production shall

be carried on for the general consumption. But anyone, who fully and

wholly accepts this proposition will not arrive at the deduction drawn

by modern socialism: Ergo, the means of production must be transferred

from private to communal ownership. Indeed, he will be forced to a very

different conclusion, namely, that right methods must be taken for

conveying to the general community that which is privately produced

on the strength of individual energy and capacity. The tendency of

the economic impulses of the new age has been to obtain revenue by

manufacturing in mass. The aim of the future must be, to find out,

by means of Associations, what, in view of the actual needs of

consumption, is the best method of production, and what channels

are open from producer to consumer. The "rights" institutions will

take care, that a productive industry does not remain tied up with

any individual or group of people longer than their personal ability

warrants. Instead of communal ownership of the means of production,

there will be a circulation of the means of production throughout the

body social, bringing them constantly afresh into the hands of those

persons whose individual ability can employ them to the best service

of the community. That connection between personality and the means of

production, which hitherto has been effected by private ownership, will

thus be established for periods of time. For it will be thanks to the

means of production that the head of a business and his subordinates

are enabled by their personal abilities to earn the income that they

asked. They will not fail to make production as perfect as possible,

since every improvement brings them, not indeed the whole profits,

but a portion of the returns. For profits,--as shewn above,--go to

the community only to the extent of what is over, after deducting the

quota due to the producer for improvements in production. And it is

in the spirit of the whole thing, that, if production falls off, the

producer's income must diminish in proportion as it rises with the

enhancement of production. But always, in every case, the manager's

income will come out of the spiritual work he has done. It will not

come out of profits, depending on conditions that do not rest with the

spiritual work of the directing personality, but with the interplay

of the forces at work in the communal life.

It will be seen, that with the realisation of social ideas such as

these, institutions that we already have will acquire an altogether

new significance. The ownership of property ceases to be what it

has been up till now. But instead of going back to an obsolete

form, such as communal ownership would be, it is carried on a

step further to something quite new. The objects of ownership

are brought into the stream of social life. No private owner, for

his own personal interests, can control them to the injury of the

general public;--neither, again, can the general public control them

bureaucratically to the injury of the private person;--but private

persons, who are suitable, will have access to them, as a means of

serving the public.

A sense for the general public interest will have a chance to grow up,

when impulses of this sort are realised, which place production on

a sound basis, and safeguards the body social from sudden crises. An

administrature too, which occupies itself solely with the processes

of economic life, will be able to bring about any adjustments for

which necessity may arise in the course of these processes. Suppose,

for instance, a business concern were not in a position to pay its

creditors the interest due on the savings of their labour, then,--if

it is a business that is nevertheless recognised as meeting a want,--it

will be possible to arrange for other industrial concerns to subsidise

it by the voluntary agreement of everyone concerned in them.

Self-contained, on a basis of "rights" determined from outside itself,

and supplied from without by a constant flow of fresh human ability

as it comes on the scenes, the economic life, within its own circuit,

will concern itself with nothing but its proper work. Accordingly it

will be possible for it to facilitate a distribution of wealth that

will ensure each person receiving that which he is rightfully entitled

to receive, according to the community's general prosperity. And,

if one person appears to have more income than another, it will only

be because his individual abilities make this More, this "surplus,"

of advantage to the community.

The taxes which are needed for the "rights" system can be settled

between the leaders of the "rights" life and the economic life

in a social organism shaped by the light of such conceptions as

these. Whilst everything needed for the maintenance of the spiritual

organisation will come as good-will from the voluntary appreciation of

the private members of the body social. The spiritual organisation will

rest on a healthy basis of individual initiative, exercised in free

competition amongst the private individuals suited to spiritual work.

But it is only in a social organism of this form, that the "rights"

administration will find the understanding necessary to a right and

just distribution of wealth. In an economic life, where the claim upon

men's labour is not prescribed by the stresses in single branches of

production, but which has to carry on business with as much as the

"rights-law" allows it, the value of goods will be determined by

what men actually put into it in the way of work. It will not allow

the work men do to be determined by goods-values into whose formation

human welfare and human dignity do not enter. An order of economy such

as this, will not be blind to rights that arise from purely human

relations. Children will have a right to education. The father of a

family will be able to have a higher income than a single man. He will

get his "surplus" through a system instituted by agreement between

all three social organisations. The right to education might be met,

under these arrangements, in the following way. The managing body of

the economic organisation estimates the amount of revenue that can be

given to education, according to the general economic conditions;

and the "rights-state" fixes the rights of individual persons,

according to the spiritual organisation's opinion in each case.

Here again, since we are thinking on lines of reality, this instance

is merely intended to indicate the direction in which such arrangements

might be worked. In detail, it is possible that quite a different sort

of arrangement may be found to be the right thing. But, in any case,

the "right thing" will be found only through all three independent

branches of the body social conjointly, in working together for a

common end. For the purposes of this sketch, the underlying mode

of thought is merely concerned to discover the really practical

thing, (unlike so much to-day that passes for practical),--namely,

a functional division of the body social, such as shall give man a

basis on which to work socially to some purpose.

On a par with a child's right to education, is the right of the

aged, of invalids, widows and sick persons, to a maintenance;

and the capital-basis for their support will be passed through the

three systems of the body social in much the same way as the capital

contributed for the education of those who are not yet come to their

working powers. The essential point in all this is, that the income

received by anyone who is not personally an earner, should not be

an outcome of the economic life; but the other way about:--economic

life must be dependent on what is the outcome of the common sense of

right. The people working in any economic organism will have all the

less from their work, the more has to go to the non-earners; only the

"less" will be borne fairly by all the members of the body social,

when social impulses, of the kind here meant, are really put into

practice. The education and maintenance of those who cannot work

concerns all mankind in common; and under a "rights-state" detached

from economic life it will become the common concern in actual

practice. For the "rights" organisation is the field for realising

those things in which every grown human being has a voice.

Under a social order, that follows this line of conception, the surplus

that a man performs on the strength of his individual ability will pass

on to the community; and the just maintenance for the deficiency of

the less able will also come from the community. "Surplus value" will

not be created for the unjustified enjoyment of private individuals,

but to enhance everything that can give wealth of soul and body to

the whole social organism, and to foster whatever is born of it,

even though not directly serviceable.

It may be thought, that, after all, except for the idea of it,

there is no practical value in keeping the three members of the

body social thus carefully distinct, and that the same result would

come about "of itself" inside a uniform constitution of State,

or an economic guild covering the same ground as the state, and

based on communal ownership of the means of production. One needs,

however, only to look at the special form of social institution that

must result from realising the threefold division. For instance,

the use of money as a mode of payment will not have to be legally

recognised by the state administrature. It will owe its recognition

to the measures taken by the various administrative bodies within

the economic organisation. For money, in a healthy social organism,

can be nothing except an order on commodities that other people have

produced, and which one can draw out of the common economic pool,

because of the commodities that oneself has produced and paid in. It

is the money currency that makes a sphere of economic activity into an

economic unit. The whole economic life is a roundabout way of everyone

producing for everyone else. Within the sphere of economic activity,

commodity-values are the only things dealt with; and in this sphere,

not only anything made, but also anything done, originating in the

spiritual or State organisations, also takes on the character of a

commodity. What a teacher does for his pupils, is, for the economic

circuit, a commodity. The teacher's individual ability is no more

paid for, than the worker's labour-power is paid for. All that can

possibly be paid for in either, is that which proceeds from them and

can pass as a commodity or commodities into the economic circuit. How

free initiative, and what the "rights-law" must act, in order to bring

the commodity into existence, lies as much outside the economic circuit

itself as the action of the forces of nature upon the corn yield in a

bountiful or barren year. For the economic circuit, both the spiritual

organisation,--as regards its claim on economic returns,--and the

State also, are simply producers of commodities. Only, what they

produce is not a commodity within their own spheres; it first becomes

a commodity, when it is taken up into the economic circuit. Within

their own domains, the spiritual organisation and the state have no

business dealings;--the economic body, through its administrature,

carries on business with their work when it is done.

The purely economic value of any commodity (or work done, in so far

as it finds expression in the money that represents its equivalent

value), will depend on the efficiency in economic administration

developed by the body economic. It will depend on the measures taken

by the economic administration, how fertile economic life can become

on the basis afforded by the spiritual and "rights" systems of the

body social. The money-value of a commodity will then indicate,

that the economic organisation is producing the commodity in a

quantity corresponding to the want for it. Supposing the premises

laid down in this book to be realised, the body economic will not be

dominated by the impulse to amass wealth through sheer quantity of

production; but the production of goods will adapt itself to wants,

through the agency of the associative guilds that will spring up in

all manner of connections. In this way, the proportion, that in each

case corresponds to the actual want, will become established between

the money-value of an article and the arrangements made in the body

social for producing it. [6] In the healthy social organism, money will

really be nothing but a measure of value; since, behind every money

piece, or money token, there stands the tangible piece of production,

on the strength of which alone the owner of the money could come by

it. These conditions will, of their nature, necessitate arrangements

being made, which will deprive money of its value for its possessor,

when once it has lost its original significance. Arrangements of this

sort have already been alluded to. Money property passes back, after

a fixed period, into the common pool, in whatever the proper form may

be; and to prevent money, withdrawn from use in industry, being held

back by its possessors to the evasion of the provisions made by the

economic organisation, there can be a new coinage, or re-stamping, from

time to time. One result of this will no doubt be, that the interest

derived from any capital sum will diminish as years go on. Money

will wear out, just as commodities wear out. Nevertheless, such a

measure will be a right and just one for the State to enact. There

can be no compound interest. If a person lays by savings, he has

certainly rendered past services that gave him a claim on future

counter-service in commodities,--just as present services claim present

service in exchange. But his claims cannot go beyond a certain limit;

for claims, that date from the past, require present labour-services

to satisfy them; and they must not be turned into a means of economic

coercion. The practical realisation of these principles will put the

problem of safeguarding the money standard upon a sound basis. For,

no matter what form money may take owing to other conditions, the

safeguard of its standard lies in the intelligent organisation of

the whole body economic through its administrature. The problem of

safeguarding the money standard will never be satisfactorily solved

through any State by means of law. The present States will only solve

it, when they give up attempting the solution on their own account,

and leave the body economic to do what is needful, after it is detached

from the State.

There is much talk of the modern division of labour, of its results

in time-saving, in perfecting the manufacture and facilitating the

exchange of commodities. Little attention is paid to its effect on

the relation of the human worker to what he is doing. In a social

order that is based on division of labour, no person at work is ever

really earning his income himself, he is earning it through the work

of everybody employed in the body social. When a tailor makes a coat

for his own use, the relation of himself to the coat he is making

is not the same as that of a man living under primitive conditions,

who has all the other necessaries of life to provide for himself. The

tailor makes the coat in order to enable him to make clothes for

other people; and its value for him depends solely and entirely on

what services other people render. The coat is, really, a means of

production. Many people may call this "splitting hairs";--but one

sees that it is not so, when one comes to consider the formation of

commodity-values in the economic process. It then becomes obvious, that

in an economic organism based on division of labour it is absolutely

impossible to work for oneself. All one can do, is to work for others,

and set others to work for one. One can no more work for oneself,

than one can eat oneself. One can, however, establish practices,

that are in direct opposition to the very essence of division of

labour;--as, for instance, when the whole system of goods-production

is based on transferring to the individual as private property what

he is only able to produce through occupying a place in the social

organism. Division of labour makes for a social organism in which the

individual shall live in accordance with the conditions of the whole

body of the community. Economically, division of labour precludes

egoism. And if, in spite of this, egoism persists, in the form of

class privilege and such things, then a State of instability sets in,

leading to disturbances in the body social. We are living under such

conditions to-day. To insist that the conditions in the "rights-State,"

amongst other things, must bring themselves into line with the system

of divided labour and its non-egotistic method of production, may

appear to many people futile. In this case, they may as well draw

the deduction from their premises: There is no doing anything. The

social movement can lead to nothing. As respects the social movement,

one can certainly do no good, unless one is willing to give Reality

her due. It is inherent in the mode of thought underlying the whole

treatment of the subject, throughout these pages, that man's doings

within the body social must be brought into line with the conditions

of its organic life.

Anyone, who can only form his notions by the system he is accustomed

to, will be uneasy when he is told, that the relation between the

work-director and the worker is to be separated out from the economic

process. He will believe that such a separation is bound to lead

to depreciation of money and a return to primitive conditions of

industrial economy.--(Dr. Rathenau takes this view in his "After

the Flood"; and from his standpoint it is a defensible one.)--The

threefolding of the social order, however, prevents any risk of

this. The autonomous economic system, working conjointly with

the "rights" system, completely detaches the whole state of money

conditions from labour conditions, which latter rest entirely on the

rights-law. The "rights" conditions cannot have any direct influence

on the money conditions, for these are the result of the economic

administration. The "relation in right" between work-director and

worker will not upset the balance or shew itself in money-values at

all. For, when wages are eliminated, (which represent a relation of

exchange between commodities and labour-power), money-value remains

simply a measure of the value of one commodity (or piece of work)

as against another. If one studies the threefold division in its

actual effects upon the body social, one must become convinced that

such a division will lead to institutions unknown to the forms of

State that have existed up till now.

These new institutions can be cleared of all that to-day has an

atmosphere of class-struggle. For this struggle comes from the wages

of labour being tied up with the economic processes. Here, we are

describing a form of social organism, in which the conception of

wages of labour undergoes a transformation no less complete than the

old conception of property. But the social relation of human-beings

becomes thereby a much more living and healthy one. One must not jump

to the conclusion, that these proposals amount in practice merely

to converting time-wages into piece-wages. One might be led to this

conclusion by a one-sided view of the matter. But this one-sided

view is not that which is put forward as the right one here. Here,

we are considering, in its connection with the whole organisation

of the body social, the elimination of the wage-relation altogether,

and the adoption of a share-relation, based on contract in respect to

the common work performed by the work-director and the workers. It may

seem to somebody, that the portion of the proceeds which falls to the

worker's share is a "piece-wage"; but if so, it is because he fails

to see, that this kind of "piece-wage" (which, properly speaking, is

not a "wage" at all) finds expression in the value of the product in

a way, that puts the worker socially into a position as regards the

other members of the body social very different from that relation

between him and them, which has sprung out of class supremacy in which

economics are the only factor. Class struggle finds no place here;

and this requirement is satisfied.

And for those who hold the theory,--not infrequently to be heard in

socialist circles,--that the course of "evolution" itself must bring

the solution of the social question, that it is impossible to set

up views and say that they ought to be realised,--to these we shall

reply: Most certainly evolution will bring about that which must

be; but men's ideas are realities and active impulses within the

body social. And when time has gone on a little further, and that

has become realised which to-day can only be thought, then these

realised thoughts will be there in the evolution. With time, when

the thoughts of to-day have become part of evolution, then those,

who look to "evolution alone" and have no use for fruitful ideas,

may be better able to form a judgment. Only, when that time comes, it

will be too late to accomplish certain things, which are required now

by the facts of to-day. In the social organism, it is not possible

to set about observing the evolution from outside, objectively,

as one does in nature. One is obliged to take an active part in the

evolutionary process. And it is therefore so disastrous for all sound

thought on social matters that it is to-day up against views that are

bent on "demonstrating" social requirements as one "demonstrates" a

fact in natural science. In the comprehension of social life, there

can be no "proof," unless one takes into account not only what is

actually present existing, but also that other factor, latent within

men's impulses, often unknown to themselves, seed-like and striving

towards realisation.

One of the ways, in which the threefold system will shew that it is

based on the essentials of human social life, will be the removal of

the judicial function from the sphere of the State. It will be for

the State institutions to lay down the rights that are to be observed

between men or groups of men; but the passing of judgment comes within

institutions proceeding from the spiritual organisation. In passing

judgment, a very great deal depends on what opportunity the judge

has for perceiving and understanding the particular circumstances

of the person whom he is trying. Nothing can ensure this perception

and understanding, except those ties of trust and confidence that

draw men together in the institutions of the spiritual order, and

which must be made the main consideration in appointing the courts of

law. Possibly, the administrature of the spiritual organisation might

nominate a panel of magistrates who could be drawn from the widest

range of spiritual professions and would return to their own calling

at the expiration of a certain period. Everybody then would have the

opportunity, within certain limits, of selecting a particular person

on the panel for five or ten years at a time,--someone in whom the

rhythmic system, which, to arrive at any he feels sufficient confidence

to be willing to accept his verdict in a private or criminal suit,

if it came to the point. There would always be enough magistrates,

in the neighbourhood where anyone was residing, to give a value to

the power of selection. A complainant would always have to apply to

the magistrate competent to the defendant.

Only consider, what such an institution would have meant for the

territories of Austria-Hungary! In districts of mixed language, the

member of any nationality would have been able to choose a judge of

his own race. And anyone acquainted with Austrian affairs will know,

how greatly such an arrangement might have contributed to keep the

balance in the life of her various nationalities. But apart from

nationality, there are many fields of life where such an arrangement

might have a beneficial effect on healthy development. For more

detailed acquaintance with points of law, the judges thus appointed

and the courts will be assisted by regular officials, whose selection

will also be determined by the spiritual administrature, but who will

not themselves decide cases. The same administrature will also have to

constitute courts of appeal. The kind of life, that will go on under

the conditions here supposed, will of its nature bring a judge into

touch with the mode of life and feeling of those whom he has to judge;

his own life, outside the brief period of judicial office, will make

him familiar with their lives and circles. Everywhere and in all its

institutions, the healthy social organism will draw out the social

sense of those who share its life,--and so too with the judicature. The

execution of a sentence is the affair of the "rights-State."

It is not necessary for the moment here to go into arrangements,

entailed in other fields of life as well by the realisation of what

has been put forward in these pages. A description of them would

obviously take up unlimited space.

The particular instances already given of the forms social life will

take, should dispose of a notion, (which I have actually met with when

lecturing on this subject in various places), that this is an attempt

to revive the three old "estates" of the Plough, the Sword and the

Book. What is here intended, is just the very opposite to this division

into grades. Men will not be divided into functions of the body social,

neither as Classes, nor Estates. It is the body social itself which

will be functionally divided. And thereby man for the first time will

be able to be truly man; for the three social divisions will be such,

that he himself has his own life's roots in each of them. His calling

gives him a footing in one of the three, and to this he belongs through

his practical interests. And his relation to the other two will be a

very actual and living one; for his connection with their institutions

is of a kind to create such a living relation. Threefold will be the

body social, as apart from man and forming the groundwork of his life;

and each man will unite its three divisions within himself.