BOOK III.

CONSIDERATIONS ON THE PRINCIPAL ATTACKS OF SOCIALISM AS FAR AS THEY AGREE. COMPARISON OF THE VARIOUS ECONOMIC FORMS OF COMBINATION IN SOCIETY.

THE POSITION

OCCUPIED BY CAPITAL. SOCIAL POLITICS AND REFORM.

CHAPTER I.

On the Adjustment of Value.-The Use of Money.-Commerce.— Conjunctures of Trade, or Crises.-Wretched Condition of the Proletarian Classes.-Refutation of Socialistic Attacks with reference to these points.-The Function of Commerce and the economic Benefits of Capitalism considered and compared with the Social Organization proposed by Socialists.—Lassalle's "Fate," and what it amounts to.-The English Proletarian Classes as described by Karl Marx and Engels, according to Official Reports.

THE historical view presented in the preceding book of the several socialistic systems will have convinced the reader that there are certain points which all socialists agree in attacking; and this is true more especially with regard to the more recent socialistic writers. In the present chapter we shall therefore give a short summary of these concurring attacks of socialism. After having finally disposed of this sort of criticism, which may be regarded as the outwork of socialism, we shall then be in a position to decide on those fundamental questions as to the various forms of industry, property, and private income, and also suggest such social reforms as may appear to be within the province of the state.

SOCIALISTIC COMPLAINTS.

199

Now socialists of all shades complain of the following: (1) the unsatisfactory adjustment of value ;* (2) the monopoly enjoyed by, and the deception practised more or less in connection with, the possession of money and its use; (3) the preponderating dishonesty and unproductivity of comm (4) the fatel influence of mercantile conjunctures,

BOOK III.

CONSIDERATIONS ON THE PRINCIPAL ATTACKS OF SOCIALISM AS FAR AS THEY AGREE. COMPARISON OF THE VARIOUS ECONOMIC FORMS OF COMBINATION IN SOCIETY. THE POSITION SOCIAL POLITICS AND REFORM.

OCCUPIED BY CAPITAL.

CHAPTER I.

On the Adjustment of Value.-The Use of Money.-Commerce.Conjunctures of Trade, or Crises.-Wretched Condition of the Proletarian Classes.-Refutation of Socialistic Attacks with reference to these points.-The Function of Commerce and the economic Benefits of Capitalism considered and compared with the Social Organization proposed by Socialists.-Lassalle's 'Fate," and what it amounts to.-The English Proletarian Classes as described by Karl Marx and Engels, according to Official Reports.

66

THE historical view presented in the preceding book of the several socialistic systems will have convinced the reader that there are certain points which all socialists agree in attacking; and this is true more especially with regard to the more recent socialistic writers. In the present chapter we shall therefore give a short summary of these concurring attacks of socialism. After having finally disposed of this sort of criticism, which may be regarded as the outwork of socialism, we shall then be in a position to decide on those fundamental questions as to the various forms of industry, property, and private income, and also suggest such social reforms as may appear to be within the province of the state.

SOCIALISTIC COMPLAINTS.

199

Now socialists of all shades complain of the following: (1) the unsatisfactory adjustment of value ;* (2) the monopoly enjoyed by, and the deception practised more or less in connection with, the possession of money and its use; (3) the preponderating dishonesty and unproductivity of commerce; (4) the fatal influence of mercantile conjunctures, or crises; and lastly the disgusting neglect of the labour. ing classes, known in foreign countries under the name of the "proletariat." As all these evils are referred to the principle of competition as now existing, we shal: endeavour to point out: (1) that should this system be abolished, and socialism be established in its place, then the evils complained of now, instead of being diminished, would rather be increased; (2) that former ages did at least suffer under similar and equally unhappy conditions ; (3) that an important amelioration of the evils referred to is not only possible within the sphere of capitalistic production, but is already in course of development; (4) that capitalism is even now interpenetrated, completed, and restricted by organizations which are not capitalistic, and which are capable of still greater extension, and meet with general approval as now in use.

To apply then these general arguments to the special complaints above enumerated. With regard to the unsatisfactory adjustment of the value of commodities.

*For a clear exposition of this point see again H. von Sybel's "Lehren des heutigen Socialismus und Communismus," where the theory of value as adopted by socialists is referred to and its onesidedness is exposed. Having pointed out the two factors which enter into every calculation of the value of things, he thus concludes: "it (= value) changes according to the relationship of these two factors at the time. The energy which is indispensably necessary in order to produce the commodity indicates the lowest limit, or its minimal value. The energy which manifests itself in the immediate demand after the same commodity is its highest limit

Here it must be remembered no other organization hitherto known in political economy has managed to bring price into harmony with those factors which constitute the value of things, more simply, more promptly, or more completely than the capitalistic organization of the present day. And this for a very simple reason. Capitalists engaged in the struggle of competition, and anxious after profitable returns, will warily judge of the respective values of cost and use of any commodity which they produce. They try to produce at the least possible expenditure of labour and capital, and take care to supply such commodities only as are in demand, and thus for the time being of the greatest value in the use.

Under the present system there may not be always an exact return of enjoyment for expended life vigour, of those engaged in manual labour, nor can an exact equivalent be always obtained in the shape of articles of consumption for the hardships of labour undergone. But the distribution of labour and enjoyment is at all events more justly carried on than under feudal or despotic constitutions. Suppose the competition system were superseded by the societary or co-operative system. Then production conducted under the direction of officials would be carried on presumably with far less thrift and foresight, in the absence of private interest; thus the whole process would be less economical, and less profitable; thus

or its maximal value. Hence the constant measure of value in exchange is not simply the labour time required for its manufacture, but rather the relationship of this labour time to the urgency of the demand for the commodity, or in a word the usefulness of labour or labour adapted to its proper objects is the source and measure of value, "die Zweckmassigkeit der Arbeit ist Quelle und Maass des Werthes," p. 15 et seq. and ante from p. 9; also see the chapter on Value in the 1st Book of this volume.