Chapter 9

Expressing the belief of the overwhelming majority of those who are watching the progress of affairs in Milwaukee, theJournalof that city stated, "What they [the Socialists] are doing [in Milwaukee] is not essentially Socialistic, though some of the reforms they propose are Socialistic in tendency." This need not be taken to mean that the Milwaukee reforms are supposed to tend to Socialism as Socialists in general understand it, but rather to that capitalistic collectivism to which Mr. Taft refers when he says that in the present regulation of the railroads "we have gone a long way in the direction of State Socialism."

Mr. Stokes's comment upon many widely published defenses of the Milwaukee Socialists by anti-Socialists was published in a letter to theNew York Worldwhich sums up admirably the International standpoint: "It is surely public opinion out of office and not the party in office," wrote Mr. Stokes, "that does the most for progress in this country, and it seems to me exceedingly doubtful whether any party in power has ever led public opinion effectively at any time. I share with very many Socialists the view that it is entirelyfallacious to suppose that more can be done at this stage of the world's progress through politics, than through 'education, agitation, and perpetual criticism.'"

I have referred to Mr. Berger as a "reformist" to distinguish his policies from the professed opportunism of some of the British Socialists. But I have also noted that his tactics and philosophy, as both he and they have publicly acknowledged, are alike at many points. For example, his views, like theirs, often seem less democratic than those of many non-Socialist radicals, or even of the average American. Years after the labor unions and the farmers of most of the States had indorsed direct legislation, and in a year when it was already becoming the law of several States, Mr. Berger, looking out for the interests of what he and his associates frankly call the "political machine" of the Wisconsin Party, damned it by faint praise, though it was an element of his own platform; and he had claimed credit for having first proposed it in Wisconsin. He acknowledged that the Initiative and Referendummake towardsSocialism and are the surest way in the end, but urged that they are "also the longest way," and wrote in theSocial-Democratic Herald:—

"The real class conscious proletariat is still in a minority, and liable to stay so for a time to come. It can only show results by fighting as a well-organized, compact mass."But the initiative, the referendum, and the right to recall have a tendency to destroy parties and loosen tightly knit political organizations."Therefore, while the Socialist Party stands for direct legislation as a democratic measure, we are well aware that the working class will be helped very little by getting it. We are well aware that the proletariat, before all things, must get more economic and political, strength—more education and more wisdom. That, besides teaching coöperation, we must buildpolitical machines."[152](My italics.)

"The real class conscious proletariat is still in a minority, and liable to stay so for a time to come. It can only show results by fighting as a well-organized, compact mass.

"But the initiative, the referendum, and the right to recall have a tendency to destroy parties and loosen tightly knit political organizations.

"Therefore, while the Socialist Party stands for direct legislation as a democratic measure, we are well aware that the working class will be helped very little by getting it. We are well aware that the proletariat, before all things, must get more economic and political, strength—more education and more wisdom. That, besides teaching coöperation, we must buildpolitical machines."[152](My italics.)

On the question of Woman Suffrage, also, Mr. Berger long showed a similarly hesitating attitude, saying that intelligent women "have always exercised great political power" even without the ballot; doubting whether women's vote would help the advance of humanity "in the coming time of transition," saying this is a question of fact on which Socialists may honestly differ, and urging that "no one will deny that the great majority of the women of the present day—and that is the only point we can view now, are illiberal, unprogressive, and reactionary to a greater extent than the men of the same stratum of society." (The italics are mine.) Finally, Mr. Berger concluded as follows, twice throwing the balance of his opinion from one scale into another:—

"Now, if all this is correct, female suffrage, for generations to come, will simply mean the deliberate doubting of the strength of a certain church,—will mean a great addition to the forces of ignorance and reaction...."However, we have woman suffrage in our platform, and we should stand by it. Because in the end it will help to interest the other half of humanity in social and political affairs, and it will be of great educational value on both women and men...."Nevertheless, it is asking a great deal of the proletariat when we are requested to delay the efficiency of our movementfor generationson that count. And we surely ought not to lay such stress on this one point as to injure the progress of the general political and economic movement—the success of which is bound to help the women as much as the men."[153](The italics are mine.)

"However, we have woman suffrage in our platform, and we should stand by it. Because in the end it will help to interest the other half of humanity in social and political affairs, and it will be of great educational value on both women and men....

"Nevertheless, it is asking a great deal of the proletariat when we are requested to delay the efficiency of our movementfor generationson that count. And we surely ought not to lay such stress on this one point as to injure the progress of the general political and economic movement—the success of which is bound to help the women as much as the men."[153](The italics are mine.)

It is no wonder, with such a lukewarm advocacy of its own platform by the Party's organ and its chief spokesman, that some of the lesser figures in the Milwaukee movement—such as certain Socialist aldermen—seem to have lost the road altogether until even Mr. Berger has been forced to call a halt. For the leader of a "political machine," to use Mr. Berger's own expression, may allow himself certain liberties; but when his followers do the same, disintegration is in sight. Witness Mr. Berger's words, written only a few weeks after the Socialist victory in Milwaukee; words which seem to indicate that the tendencies he complains of were the direct result, not of slow degeneration, but of the local Party's reformistic teachings and campaign methods:—

"The most dangerous part of the situation is that some of our comrades seem to forget that we are a Socialist Party."They not only begin to imitate the ways and methods of the old parties, but even their reasoning and their thoughts are getting to be more bourgeois and less proletarian. To some of these men the holding of the office—whatever the office may be—seems to be the final aim of the Socialist Party. These poor sticks do not know that there are many Socialists who deplore that the necessity of electing and appointing officeholders will make it twice as hard to keep the Socialist Party pure in this country, than in other countries where the movement is relieved of this duty and danger."And even some of the aldermen seem to have lost their Socialist class consciousness—if they ever had any."

"The most dangerous part of the situation is that some of our comrades seem to forget that we are a Socialist Party.

"They not only begin to imitate the ways and methods of the old parties, but even their reasoning and their thoughts are getting to be more bourgeois and less proletarian. To some of these men the holding of the office—whatever the office may be—seems to be the final aim of the Socialist Party. These poor sticks do not know that there are many Socialists who deplore that the necessity of electing and appointing officeholders will make it twice as hard to keep the Socialist Party pure in this country, than in other countries where the movement is relieved of this duty and danger.

"And even some of the aldermen seem to have lost their Socialist class consciousness—if they ever had any."

It is difficult to see how Mr. Berger can expect to maintain respect for principles that he teaches and applies so loosely himself. It is, furthermore, difficult to understand how he expects submission to the decisions of his organization when he himself has been on the verge of revolt both against the national and international movement. He has always avowed his profound disagreement with the methods of the Socialists in practically every State but his own. He and his associates were at one moment so far from the national and international principle that they sought to support a non-Socialist candidate for judge—on the specious ground that no Socialist was nominated. But the National Congress condemned and forbade such action by an overwhelming majority. Mr. Berger's unwillingness to act with his organization even went so far at one point that he was punished by a temporary suspension from the National Executive Committee. And, finally, he even threatened in Socialist Berlin that if the American Party, which he claimed held his views on immigration, was not allowed to have its way, it would pay no attention to the decision of the International Congress; though at the very time he was threatening rebellion the decision of the recent Congress showed that two-thirds of the American Party stood, not with him, but with the International Movement. Should he be surprised if Milwaukee aldermen, like himself, interpret Socialism as they see fit, and forget that they are a part of a Socialist Party?

But while Mr. Berger and the present policies that are guiding American "reformist" Socialists differ profoundly from those of the International movement, and resemble in some ways the policies of the non-Socialist reformers of Wisconsin and other States, in other respects there is a difference. The labor policy of the collectivist reformers and of the "reformist" Socialists might be expected to differ somewhat—not in what is ordinarily called the labor legislation,i.e.factory reform, workingmen's compensation, old age pensions, etc., but in their attitude to labor organizations and the labor struggle: strikes, boycotts, and injunctions.

Senator La Follette's followers are in the overwhelming majority farmers; the Wisconsin "Social-Democrats," as they call themselves, have secured little more than one per cent of thevote of the State outside of Milwaukee and a few other towns, and even less in the country. On the other hand, the majority of the workingmen of Milwaukee and several other towns vote for the Socialists, while those who do not are usually not followers of Senator La Follette, but Catholics and Democrats. The Wisconsin "Insurgents" have as yet by no means taken the usual capitalist position in the struggle between employers and labor unions, but they have shown repeatedly that they are conscious that they represent primarily the small property holders and the business community generally, including the small shareholders of the "trusts."

La Follette's Weekly, in an important article defending direct legislation and the recall, says that the reason "we, the people," do not give enough attention to public measures is that "we are so busy with our private affairs," and continues: "Indeed, our success in our private enterprises, nay even equality of opportunity to engage in private enterprises, is coming more and more to depend upon the measure of protection which we may receive through our government from the unjust encroachments of the power of centralized Big Business." These "State Socialist" radicals represent primarily small business men and independent farmers, who are often employers, and their friendship to employees will necessarily have to be subordinated whenever the two interests come into conflict.

Mr. Berger and the Wisconsin Social-Democrats on the other hand represent primarily the workingmen of the cities, especially those who are so fortunate as to be members of labor unions. The "Social Democrats" appeal, however, for the votes of the farmers, of "the small business man," and of "the large business men who are decent employers"; they announce that the rights of corporations will be protected under their administrations, declare that they who "take the risks of business" are entitled "to a fair return"; and have convinced many that they are not for the present anti-capitalistic in their policy, though they have not as yet succeeded in getting very much capitalistic support.

For many years, indeed, the struggle between employers and unions has been less acute in Milwaukee than in many other large cities, while wages and conditions are on the whole no better. The Milwaukee Socialists have repeatedly called the attention of employers to this relative industrial peaceand have attributed it to their influence, much to the disgust of the more militant Socialists, who claim that strikes are the only indication of a fighting spirit on the part of the workers. Mr. Berger, for example, has explained "the rare occurrence of strikes in Milwaukee" as being due largely to the Social-Democrats of that city who, he says, "have opposed almost every strike that has been declared here."[154]

Certainly the attitude of the Socialists towards the employers in one of the largest industries, brewing, has on the whole been exceptionally friendly, as evidenced among other things by the Socialists' appointment of one of a leading brewery manager (who was not even a Socialist) as debt commissioner of the city, and their active campaign for the brewing interests, including a denunciation of county option, though this measure has already been indorsed by both of the capitalistic parties even in the liquor-producing State of Kentucky, as well as elsewhere, and is favored by very many Socialists, not as a means of advancing prohibition, but as the fairest present way of settling the controversy.

But even relative peace between capital and labor is not lasting in our present society and it will scarcely last in Milwaukee. Already there are signs of what is likely to happen, and the business-men admirers of Milwaukee Socialism are beginning to drop away. A few more strikes, and Berger and his associates may be forced to abandon completely their claim that it is to the interest of employers, with some exceptions, to elect Socialists to office.

The situation after a recent strike in Milwaukee is thus summed up by theNew York Volkszeitung, a great admirer, on the whole, of the Milwaukee movement:—

"The new measures which are taken for the betterment of the city transportation system, for the preparation of better residence conditions and parks for the poorer classes of the people," says theVolkszeitung, "did not much disturb Milwaukee's 'Best Society.' Rather the opposite. For all these things did not at the bottom harm their interests, but were, on the contrary, quite to their taste, in so far as they rather increased than injured the pleasure of their own lives."But at last what had to happen, did happen. The moment a great conflict between capital and labor broke out in the great community of Milwaukee, the caliber of the city administration was bound to show itself...."The prohibition which Mayor Seidel issued to the police, not to interfere for either side, his grounds and those of the city council'spresiding officer, Comrade Melms, their instructions to the striking 'garment workers' how they should conduct the strike in order to win a victory, the admonition that they might safely call a scab a scab without official interference—all this is of decisive importance, not only for its momentary effect on the Milwaukee strike, but especially for the Socialist propaganda, for the demonstration of the tremendous advantage the working people can get even at the present moment by the election of Socialist candidates...."And now it is all over with the half well-disposed attitude that had been assumed towards our comrades in the city administration. With burning words the capitalistic and commercial authorities protest against these official expressions, as being likely to disturb 'law and order' and as having the object of stirring up the class struggle and of undermining respect for the law."That came about which must come about, if our Milwaukee comrades did their duty. And they have done it, at the right moment, and without hesitation. And this must never be forgotten. But the real battle between them and their capitalist opponentbegins now for the first time."

"But at last what had to happen, did happen. The moment a great conflict between capital and labor broke out in the great community of Milwaukee, the caliber of the city administration was bound to show itself....

"The prohibition which Mayor Seidel issued to the police, not to interfere for either side, his grounds and those of the city council'spresiding officer, Comrade Melms, their instructions to the striking 'garment workers' how they should conduct the strike in order to win a victory, the admonition that they might safely call a scab a scab without official interference—all this is of decisive importance, not only for its momentary effect on the Milwaukee strike, but especially for the Socialist propaganda, for the demonstration of the tremendous advantage the working people can get even at the present moment by the election of Socialist candidates....

"And now it is all over with the half well-disposed attitude that had been assumed towards our comrades in the city administration. With burning words the capitalistic and commercial authorities protest against these official expressions, as being likely to disturb 'law and order' and as having the object of stirring up the class struggle and of undermining respect for the law.

"That came about which must come about, if our Milwaukee comrades did their duty. And they have done it, at the right moment, and without hesitation. And this must never be forgotten. But the real battle between them and their capitalist opponentbegins now for the first time."

Here is the keynote of the situation. Only as more and more serious strikes occur will the Milwaukee movement be forced to emphasize its labor unionism rather than its reforms. It will then, in all probability, be forced to take up an aggressive labor-union attitude like that of the non-Socialist Labor Party in San Francisco. One action at least of Mayor McCarthy in the latter city was decidedly more threatening to the local employing interests than any taken in Milwaukee, which after all had met the approval of one of the capitalistic papers (i.e.theFree Press). The Bulletin of the United Garment Workers, though grateful for the attitude of the mayor in their Milwaukee strike, uses language just as laudatory concerning this action of the anti-Socialist Labor mayor of San Francisco.[155]

The "reformist" Socialists lay much stress upon their loyalty to existing labor unions. Some even favor the creation of a non-Socialist Labor Party, more or less like those of San Francisco or Australia or Great Britain. Indeed, the reformists have often acknowledged their close kinship with the semi-Socialist wing of the British Labour Party, and this relationship is recognized by the latter. All Socialists will agree that even the reformists, as a rule, represent the interests of the labor-union movement better than other parties; but the Socialist Party is vastly more than a mere reformist trade-union party, and most Socialists feel that to reduce it to this rôle would be to deprive it of the larger part of its power even to help the unions.

In the statement of Mr. Debs already quoted in part in this chapter, he also expresses the opposition of the Socialist majority to converting the organization into a mere trade-union Party:—

"There is a disposition on the part of some to join hands with reactionary trade unionists in local emergencies and in certain temporary situations to effect some specific purpose, which may or may not be in harmony with our revolutionary program. No possible good can come of any kind of a political alliance, expressed or implied, with trade unions or the leaders of trade unions who are opposed to Socialism and only turn to it for use in some extremity, the fruit of their own reactionary policy."Of course we want the support of trade unionists, but only of those who believe in Socialism and are ready to vote and work with us for the overthrow of capitalism."

"Of course we want the support of trade unionists, but only of those who believe in Socialism and are ready to vote and work with us for the overthrow of capitalism."

It would seem from the expressions of Milwaukee Socialists that they, in direct opposition to the policy of Mr. Debs, are working by opportunist methods towards a trade union party, and that form of collectivism advocated by the Labor Parties of Great Britain and Australia. But they have been in power now in Milwaukee for nearly two years and have had a strong contingent in the Wisconsin legislature, while their representative in Congress has had time to define his attitude in a series of bills and resolutions. We are in a position, then, to judge their policy not by their words alone, but also by their acts.

Let us first examine their municipal policy. This assumes special importance since the installation of Socialist officials in Berkeley (California), Butte (Montana), Flint (Michigan), several smaller towns in Kansas, Illinois, and other States, as a result of the elections of April, 1911. To these victories have recently been added others (in November, 1911) in Schenectady (New York), Lima and Lorain (Ohio), Newcastle (Pennsylvania), besides very large votes or the election of minor officials in many places in Pennsylvania, Ohio, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Kansas, Illinois, Minnesota, Missouri, Wisconsin, Oregon, Washington, Utah, California, and other States.

While the officials elected received in nearly every case only a plurality (this is true also of most of those elected in Milwaukee), and local or temporary issues existed in many instances, which caused the Socialist Party to be used largely for purposes of protest, a part of the vote was undoubtedly cast for a type of municipal reform somewhat more radical than other parties have, as a rule, been ready to offer in this country; up to the present time, at least, a considerable part of the vote is undoubtedly to be accredited to convinced Socialists.

Milwaukee being as yet the only important example of an important American municipality that has rested in Socialist hands for any considerable period, I shall confine myself largely to the discussion of the movement in that city. Some of those already in office in other places have, moreover, taken the Milwaukee policy as their model and announced their intention to follow it. Mayor Seidel's statement after a year in office, and the explanations of the Rev. Carl Thompson (the city clerk) made about the same time, cover the essential points for the present discussion.

Both the statement of the mayor and that of the city clerk are concerned with matters that interest primarily the business man and taxpayer. Mr. Thompson disclaims that there is anything essentially new even in the Socialists' plans, to say nothing of their performances. He says of the most discussed municipal projects under consideration by the Socialist administration that all were advocated either by former administrations, by one or both of the older parties or by some of their leading members. He mentions the proposed river park, railway terminal station, and electric lighting plans, as well as home rule for Milwaukee, as being allstrictly conservative projects (as they are). Other plans mentioned by Mayor Seidel—harbor improvements, playgrounds, a sterilization plant, and isolation hospital—are approved, if not by the conservatives of Milwaukee, at least by those of many other cities. Some minor and less expensive proposals, a child welfare commission, a board of recreation, and municipal dances are somewhat more novel. These are all the social reforms mentioned by the mayor, as planned or accomplished, with the exception of those that have to do primarily with efficiency or economy in municipal administration, such as improvement in street cleaning, sanitary inspection and inspection of weights and measures, which all conservative reform administration seek to bring about; many cities, especially abroad, having been eminently successful in this direction.

To secure the political support of taxpayers and business men, further evidence was required to show that the administration is neither doing nor likely to do anything unprecedented. They want a safe and sane business policy, and assurances that new sources of income will, if possible, be secured and applied to the reduction of taxation; or that, in case taxes are raised, municipal reforms will so improve business and rental values, as to bring into their pockets more than the increased taxation has cost them.

Mayor Seidel and City Clerk Thompson presented entirely satisfactory evidences on all these points. Business methods have been introduced, a "complete inventory" of the property of the city is being made, "blanket appropriations" are done away with, "a new system of voucher bills has been installed," all the departments are being brought on "a uniform accounting basis." Finally, taxable property is being listed that was formerly overlooked, and the city is more careful in settling financial claims against it. Mayor Seidel and City Clerk Thompson both promise that taxes will not be increased; the former points to the new resources from property that had escaped taxation and to the future rise in value of land the city intends to purchase, the latter refers to "revenue-producing enterprises which will relieve the burden of taxation rather than increase it." Neither goes so far as to suggest any plan, like the present law of Great Britain, introduced by a capitalist government, according to which not only are the taxes of the wealthy raised, but one fifth of the future increase of value of city lands, as beingdue to the community, accrues to the public treasury. It is true that such measures would have to be approved by the State of Wisconsin, but this would not prevent them being made the one prominent issue in the city campaign, and insistently demanded until they are obtained. The mayor's attitude on this tax question, which underlies all others, far from being Socialistic, is not even radical.

The tendency seems to have been widespread in the municipal campaigns undertaken by the Socialists in the fall of 1911, to abandon even radical, though capitalistic, municipal reformers' policy of raising new taxes to pay for reforms that bring modest benefits to the workers, but chiefly raise realty values and promote the interests of "business," and to substitute for this the conservative policy of reducing taxes. Thus theBridgeport Socialistadvised the voters:—"Municipal ownership means cheaper water, cheaper light, cheaper gas, cheaper electricity, and a steady revenue into the city treasurywhich would reduce taxes." (Italics mine.)[156]One might infer that the masses of Bridgeport were already sufficiently supplied with schools, parks, and all the free services a municipality can give.Of course it is true that a considerable part of the wage earners in our small cities own their own homes (subject often to heavy mortgages) and,other things remaining as they are, would like to have taxes reduced. But two facts are indisputable: the average taxes paid by the wage earners are insignificant compared with those of the wealthier classes, and the wage earner gets, at first at least, an equal share in the benefits of most municipal expenditures. The Socialists know that most of the economic benefits are later absorbed by increasing rents; and that capitalist judges and State governments will see to it that only such expenditures are allowed as have this result, or such as have the effect, through improving efficiency, of increasing profits faster than wages. Socialists recognize, however, that at least municipal collectivism is in the line of capitalist progress, with some incidental benefits to labor, while the policy of decreasing taxes on the unearned increment of land is nothing less than reaction.The only popular ground on which such a policy could be defended is the fallacy that landlords transmit to tenants the fluctuations in taxes, in the form of increased or diminished rents. Even if this were true, the tenants would be as likely as not to profit by enlarged municipal expenditures (i.e.in spite of paying for aminorpart of their cost). But in the large cities, as a matter of fact, 90 per cent of the wage earners, who are tenants, and not home owners, do not feel these fluctuations at all. Increased land taxes do not as a rule cause an increase in average rents. Increased landtaxes force unimproved land upon the market, and compel its improvement, to escape loss in holding it unimproved and idle. The resulting increased competition for tenants operates on the average toreducerents, not to increase them. The taxes are paid at the cost ofreduced profitsfor the landlord—until population begins to increase more rapidly than taxes. The capitalist leaders perceive the truth as regards this plainly enough. Thus, in their anxiety to get both landlord and capitalist support in the last municipal campaign in New York City, various allied real estate interests claimed credit for their work in keeping taxes down. Commenting upon the subject, theNew York Timessaid: "Rents do not rise with taxes. If they did, the owner would merely need to pass the taxes along to the renter and be rid of the subject."[157]The next day Mayor Gaynor in a letter to theTimesquoted a message he had sent to the city council in the previous year in which he had said: "Every landlord knows that he cannot add the taxes to rents. If he could, he would not care how high taxes grew. He would simply throw them on his tenants."It is difficult, therefore, to see why the tenants of New York City or Bridgeport should favor lower taxes, so long as they and their children are in need of further public advantages that increased taxes would enable the municipalities to supply. To favor reduced taxes, while private ownership of land prevails, is not Socialism, or even progressive capitalism. It is, as I have said,reaction.

"Municipal ownership means cheaper water, cheaper light, cheaper gas, cheaper electricity, and a steady revenue into the city treasurywhich would reduce taxes." (Italics mine.)[156]

One might infer that the masses of Bridgeport were already sufficiently supplied with schools, parks, and all the free services a municipality can give.

Of course it is true that a considerable part of the wage earners in our small cities own their own homes (subject often to heavy mortgages) and,other things remaining as they are, would like to have taxes reduced. But two facts are indisputable: the average taxes paid by the wage earners are insignificant compared with those of the wealthier classes, and the wage earner gets, at first at least, an equal share in the benefits of most municipal expenditures. The Socialists know that most of the economic benefits are later absorbed by increasing rents; and that capitalist judges and State governments will see to it that only such expenditures are allowed as have this result, or such as have the effect, through improving efficiency, of increasing profits faster than wages. Socialists recognize, however, that at least municipal collectivism is in the line of capitalist progress, with some incidental benefits to labor, while the policy of decreasing taxes on the unearned increment of land is nothing less than reaction.

The only popular ground on which such a policy could be defended is the fallacy that landlords transmit to tenants the fluctuations in taxes, in the form of increased or diminished rents. Even if this were true, the tenants would be as likely as not to profit by enlarged municipal expenditures (i.e.in spite of paying for aminorpart of their cost). But in the large cities, as a matter of fact, 90 per cent of the wage earners, who are tenants, and not home owners, do not feel these fluctuations at all. Increased land taxes do not as a rule cause an increase in average rents. Increased landtaxes force unimproved land upon the market, and compel its improvement, to escape loss in holding it unimproved and idle. The resulting increased competition for tenants operates on the average toreducerents, not to increase them. The taxes are paid at the cost ofreduced profitsfor the landlord—until population begins to increase more rapidly than taxes. The capitalist leaders perceive the truth as regards this plainly enough. Thus, in their anxiety to get both landlord and capitalist support in the last municipal campaign in New York City, various allied real estate interests claimed credit for their work in keeping taxes down. Commenting upon the subject, theNew York Timessaid: "Rents do not rise with taxes. If they did, the owner would merely need to pass the taxes along to the renter and be rid of the subject."[157]The next day Mayor Gaynor in a letter to theTimesquoted a message he had sent to the city council in the previous year in which he had said: "Every landlord knows that he cannot add the taxes to rents. If he could, he would not care how high taxes grew. He would simply throw them on his tenants."

It is difficult, therefore, to see why the tenants of New York City or Bridgeport should favor lower taxes, so long as they and their children are in need of further public advantages that increased taxes would enable the municipalities to supply. To favor reduced taxes, while private ownership of land prevails, is not Socialism, or even progressive capitalism. It is, as I have said,reaction.

TheNew York Volkszeitungexpresses in a few words the correct Socialist attitude on municipal expenditures. After showing the need of more money for schools, hygienic measures, etc., it concludes:—

"These increased expenditures of municipalities are thus absolutely necessary if a Socialist city government is to fulfill its tasks. Since the municipal expenditures must be raised through taxation, it is evident that a good Socialist city government must raise the taxes if it is up to the level of its duties. Provided that—as just remarked—the raising of the taxes is so managed that the possessing classes are hit by it and not the poor and the workingmen."Most of the Socialist municipal administrations have been shattered hitherto by the tax question; that has been especially evident in France, where the Socialists lost the towns captured by them because their administration appeared to be more costly than those of their capitalist predecessors. That has happened especially wherever the small capitalist element played a rôle in the Socialist movement."We shall undoubtedly have this experience in America, also, if we do not make it clear to the masses of workingmen that good city government for them means a more expensive city government,and that they are interested in this increase of the cost of the city administration."[158]

"Most of the Socialist municipal administrations have been shattered hitherto by the tax question; that has been especially evident in France, where the Socialists lost the towns captured by them because their administration appeared to be more costly than those of their capitalist predecessors. That has happened especially wherever the small capitalist element played a rôle in the Socialist movement.

"We shall undoubtedly have this experience in America, also, if we do not make it clear to the masses of workingmen that good city government for them means a more expensive city government,and that they are interested in this increase of the cost of the city administration."[158]

If the Socialists promise much and perform comparatively little, they have as a valid reason the fact that the city does not have the authority. But opponents can also say, as does the MilwaukeeJournal, that "the administration would not dare to carry out its promises to engage in municipal Socialism if it had the authority." For while municipal "Socialism" or public ownership is perfectly good capitalism, it is not always good politics in a community where the small taxpayers dominate.

While the plans for municipal wood and coal yards and plumbing shops were doubtless abandoned in Milwaukee by reason of legal limitations, and not merely to please the small traders, as some have contended, no Socialist reason can be given for the practical abandonment years ago of the proposed plan for municipal ownership of street railways. If the charter prohibited such an important measure as this, all efforts should have been concentrated on changing the charter. Socialists do not usually allow their world-wide policy, or even their present demands to be shaped by a city charter.

If Mr. Berger had announced earlier and more clearly, and if he had repeated with sufficient frequency, his recent declaration thatMilwaukee is administered by Socialists but does not have a Socialist administration, he would have avoided a world of misunderstanding. In fact, if he had enunciated this principle with sufficient emphasis before the municipal election of 1910, it is highly probable that the Socialists would not yet have won the city, and would never have felt obligated to claim, as they often do now, that Socialists, who must direct part of their energies towards future results, are more efficient as practical reformers than non-Socialists, who are ready to sacrifice every ultimate principle, if they have any, for immediate achievements.

The whole question between reformists and revolutionaries refers not so much to the policy of Socialists in control of municipalities, which is often beyond criticism, as to the value of municipal activity generally for Socialist purposes. None deny that it has value, but reformists and revolutionaries ascribe to it different rôles.

There are two reasons why Socialismcannotyet be appliedon a municipal scale—one economic and one political. I do not refer here, of course, to municipal ownership, often called "municipal Socialism," a typical manifestation of "State Socialism," but to a policy that attempts to make use of the municipality against the capitalist class.

Such a policy is economically impossible to-day because it would gradually drive capital to other cities and so indirectly injure the whole population including the non-capitalists. Indeed, Mayor Seidel especially denies that he will allow any "hardship on capital," and City Clerk Thompson gives nearly a newspaper column of statistics to show that "the business of Milwaukee has continued to expand" since the Socialists came into power, remarking that "there have been no serious strikes or labor troubles in Milwaukee for years"—surely a condition which employers will appreciate. Nothing could prove more finally than such statements, how municipal governments at present feel bound to serve the business interests.

The political limitations of the situation are similar. Prof. Anton Menger says of Socialism as applied to municipalities, that "it is necessarily deferred to the time when the Socialist party will be strong enough to take into its hands the political power in the whole state or the larger part of it." It is obviously impossible to force the hands of an intelligent ruling majority merely by capturing one branch or one local division of the government. As such branches are captured they will be prevented from doing anything of importance, or forced to act only within the limits fixed by the ruling class.

This is especially true in the United States. We have elaborate forms and external symbols of local self-government, and it may really exist—as long as the municipalities are used for capitalistic purposes. When it is proposed to use local self-government for Socialist ends, however, it instantly disappears. Not only do the States interfere, with the national government ready behind them, but the centralized judiciary, state and national, is always at hand to intervene.This is potential centralization, and for the purposes of preventing radical or Socialist measures the government of the United States is as centralized as that of any civilized nation on earth.

Moreover, the semblance of local power given by municipal victories brings a second difficulty to the Socialists—it means the election of administrators and judges. Now evenunder the system of potential centralization through the courts,legislatorsare useful, for they cannot be forced to serve capitalism. But government must be carried on and mayors and judges are practically under the control of higher authorities—in the new commission plan of government, they even do the legislating. In the words of theNew York Daily Call:—

"The Socialist Legislator finds his task a comparatively easy and simple one. He proposes or supports every measure of advantage to the working class in particular and to the great majority of the people in general, barring such as are of a reactionary character. But the Socialist executive and the Socialist judge find themselves in no such simple situation. Their activities are circumscribed by superior and hostile powers, and by written constitutions adopted at the dictation of the capitalist class. How to harmonize their activities with the just demands of the working class for the immediate betterment of its conditions, as well as with the Socialist program which has for its goal the ultimate overthrow of the capitalist social order, and yet not come into such conflict with the superior and hostile powers as would result in their own removal from office—this question is bound to assume a gravity not yet perhaps dreamed of by the majority of American Socialists."And yet even now, while our political power is still small, the charge of opportunism, or the neglect of principle in pursuit of some practical advantage, is continually being raised, sometimes justly, sometimes unjustly."

"And yet even now, while our political power is still small, the charge of opportunism, or the neglect of principle in pursuit of some practical advantage, is continually being raised, sometimes justly, sometimes unjustly."

The following from theNew York Evening Post, illustrates both the political and the economic difficulty of enacting Socialistic or even radical measures in municipalities. It is taken from a special article on the situation in Schenectady, where a Socialist, Dr. George R. Lunn had just been elected mayor:—

"Schenectady is trying hard to take its dose of Socialism philosophically. Its most staid and respectable citizens, who have been staid and respectable Republicans and Democrats all their life, console themselves with the thought that, after all, Old Dorp is Old Dorp—Old Dorp being the affectionate way of referring to Schenectady—and that her best citizens are still her best citizens, and that Rev. George R. Lunn and all his Socialist crew can't do a great amount of harm in two years to a city that possesses such an ironclad charter as that with which Horace White, when he was a Senator, endowed every city of the second class in the Empire State. The conservative element in town back that charter against all the reforms that the minister who is to be mayor and his following of machinists, plumbers, coachmen, and armature winders from theGeneral Electric Works, who are going to be common councillors and other things, can hope to introduce...."The General Electric works—as everybody agrees—'made' Schenectady. Census figures show it and statistics of one sort or another show it. The concern employs more than 16,000 men and women—as many persons as there are voters in the whole town. It owns 275 acres of land, and of this about 60 acres are occupied with shops and buildings. Its capital stock is valued at $80,000,000. The General Electric, or as it is called up here, the 'G. E.,' has given work to thousands, has brought a lot of business into town, has made real estate in hitherto deserted districts valuable. On the tax assessors' books its property is assessed at $4,500,000. It is safe to say that this is less than 25 per cent of its true value."If Dr. Lunn should attempt to meddle with the 'G. E.'s' assessment, Schenectady knows very well what would happen. The General Electric Company would pack up and move away to some other town that is pining for a nice big factory and does not care much how small taxes it pays. That is the situation. Of course everybody agrees that the company ought to be paying more, but when it comes to a question of leaving well enough alone or losing the company entirely, Schenectady says leave well enough alone, by all means. The loss of the 'G. E.' works would be a disaster, from which the Old Dorp would never recover. Why, even now the company has just opened a brand new plant in Erie, Philadelphia, and if Schenectady does not behave, what is to prevent the 'G. E.' from moving all its belongings to Erie?"Dr. Lunn has not had much to say regarding this phase of his taxation reforms. The day after his election he issued a statement, however, which showed that he did not intend to do anything extremely radical:—"'In the matter of taxation we have had something to say during the campaign, but we Socialists are too good economists not to know that the burdening of our local industries in the way of taxation above that placed upon them in other cities would be foolhardy. Under the present system, to which we are opposed, manufacturing concerns have their rights, and any special burden placed upon them by one community above that which is placed upon them in other communities would inevitably and of necessity, from the standpoint of economics, hinder their progress. We are not in favor of hindering their progress. We stand for the greatest progress along every line. We will not only encourage industries in every way consistent with our principles, but will endeavor to bring new industries to Schenectady, and furthermore, we will succeed in doing it.'"[159]

"The General Electric works—as everybody agrees—'made' Schenectady. Census figures show it and statistics of one sort or another show it. The concern employs more than 16,000 men and women—as many persons as there are voters in the whole town. It owns 275 acres of land, and of this about 60 acres are occupied with shops and buildings. Its capital stock is valued at $80,000,000. The General Electric, or as it is called up here, the 'G. E.,' has given work to thousands, has brought a lot of business into town, has made real estate in hitherto deserted districts valuable. On the tax assessors' books its property is assessed at $4,500,000. It is safe to say that this is less than 25 per cent of its true value.

"If Dr. Lunn should attempt to meddle with the 'G. E.'s' assessment, Schenectady knows very well what would happen. The General Electric Company would pack up and move away to some other town that is pining for a nice big factory and does not care much how small taxes it pays. That is the situation. Of course everybody agrees that the company ought to be paying more, but when it comes to a question of leaving well enough alone or losing the company entirely, Schenectady says leave well enough alone, by all means. The loss of the 'G. E.' works would be a disaster, from which the Old Dorp would never recover. Why, even now the company has just opened a brand new plant in Erie, Philadelphia, and if Schenectady does not behave, what is to prevent the 'G. E.' from moving all its belongings to Erie?

"Dr. Lunn has not had much to say regarding this phase of his taxation reforms. The day after his election he issued a statement, however, which showed that he did not intend to do anything extremely radical:—

"'In the matter of taxation we have had something to say during the campaign, but we Socialists are too good economists not to know that the burdening of our local industries in the way of taxation above that placed upon them in other cities would be foolhardy. Under the present system, to which we are opposed, manufacturing concerns have their rights, and any special burden placed upon them by one community above that which is placed upon them in other communities would inevitably and of necessity, from the standpoint of economics, hinder their progress. We are not in favor of hindering their progress. We stand for the greatest progress along every line. We will not only encourage industries in every way consistent with our principles, but will endeavor to bring new industries to Schenectady, and furthermore, we will succeed in doing it.'"[159]

The newly elected mayor is quoted byCollier's Weekly, as saying: "We are only trying to conduct the city's businessin the same honest way we should run our own business."Collier'ssays that the Socialists generally "make their impression by mere business honesty and efficiency," distinguishes this from what it calls the "harmful kind of Socialism," and concludes that, "watching the actual performances of those who choose to call themselves Socialists, we are thus far unable to be filled with terror."[160]

Nearly all the comment at the time of the Socialist municipal victories in the fall of 1911 pointed out, in similar terms, the contrast between the very restricted opportunities they offer for the revolutionary program of Socialism. The editorial in theSaturday Evening Postis typical:—

"Theoretically Socialism is the most ambitious of political programs, involving nothing short of a whole-nation-wide or world-wide revolution; but, except a solitary Congressman and seventeen members of State legislatures, Socialists so far have been elected only to local offices, and those usually of anadministrativerather than legislative nature—elected, that is, not to bring in a brand-new, all-embracing revolutionary program, but to work the lumbering old bourgeois machine in a little honester, more intelligent, kindlier manner perhaps than some Republican or Democrat would work it."Designing a new world is more fascinating than scrubbing off some small particular dirt spot on the old one—but less practical." (My italics.)[161]

"Designing a new world is more fascinating than scrubbing off some small particular dirt spot on the old one—but less practical." (My italics.)[161]

Even whererevolutionarySocialists carry a municipality, as they did recently in Newcastle, Pennsylvania, the benefit to the labor movement is probably only temporary. There the Socialist administration dismissed the whole police force and filled their places with Socialists. The result will undoubtedly be that the State will either make the police irremovable, except by some complicated process, or will still further extend the functions of the State constabulary in times of strike. The moral effect of the victory in Newcastle, like that in Schenectady, after the bitter labor struggles of recent years, cannot be questioned, and this, together with temporary relief from petty persecution by local authorities, is doubtless worth all the efforts that have been put forth—provided the Socialists have not promised themselves and their supporters any larger or more lasting results.

It is in view of difficulties such as these, which exist to some degree in all countries, that in proportion as Socialists gain experience in municipal action, they subordinate it to other forms of activity. Only such "reformists" as areready to abandon the last vestiges of their Socialism persist in emphasizing a form of action that has a constant tendency to compel all those involved to give more and more of their time and energy to serving capitalism. Among the first Socialist municipalities were those of Lille and Roubaix in France—which fell a number of years ago into the hands of Guesdists, the revolutionary or orthodox wing of the party. Rappoport reports their present position on this question as presented at the recent Congress at St. Quentin, 1911.

"Among the Guesdists there are no municipal theorists but a great many practical municipal men, former or present mayors: Delory (Lille), Paul Constans (Montucon), Compère-Morel, Hubert (Nîmes), only to mention those present at the Congress.Through experience they have learned that what is called municipal Socialism, is good local government, but in no sense Socialism.Free meals for school children, weekly subsidies for child-bearing women, etc., are useful to the working people; this is not Socialism, but 'collective philanthropy' according to Compère-Morel. Reforms are good, but the main thing is Socialism. The Guesdists are no adherents of the doctrine, 'all or nothing,' but they are also no admirers of the new doctrine of municipal Socialism."

There can be little doubt that a few years of experience in this country will persuade those American Socialists who are now concentrating so much of their attention on municipalities, to give more of their energies to State legislatures and to Congress. The present efforts will not be lost, as they can be easily turned into a new direction. And whatever political reaction may seem to take place, after certain illusions have been shattered, will be a seeming reaction only, and due to the desertion from the ranks of the supporters of the Socialist ticket of municipal reformers who never pretended to be Socialists, but who voted for that Party merely because no equally reliable non-Socialist reformers were in the field, or had so good a chance of election. Such separation of the sheep from the goats will be specially rapid when some variation of the so-called commission form of government will have been gradually introduced, particularly where it is accompanied by direct legislation and the recall. For then municipal Socialists will be deprived of all opportunity of claiming this, that, and the other reform as having some peculiar relation to Socialism. And this day is near at hand.

All municipal reforms that interest property owners andnon-property owners alike will then be enacted with comparative ease and rapidity, while all political parties, and all prolonged political struggles, will center around the conflict between employers and employees. State and national governments will see to it that no municipality in the hands of the working class is allowed to retain any power that it could use to injure or weaken capitalism. And this specific limitation of the powers of municipalities that escape local capitalist control, will be so frequent and open that all the world will see that Socialists are going to achieve comparatively little by "capturing" local offices.

I have already mentioned in a general way the position of the Milwaukee Socialists in the Wisconsin legislature. Let me return now to their representative in Congress. Mr. Berger had differentiated himself from previous trade union Congressmen largely by proposing a series of radicalpoliticalreforms: the abolition of the Senate, of the President's veto, and of the power of the Supreme Court over the legislation of Congress, and a call for a national constitutional convention. Radical as they are, it is probable that these reforms are only a foreshadowing of the position rapidly being assumed by a large part of the collectivist but anti-Socialist "insurgents," and "progressives." Even Mr. Roosevelt and Justice Harlan, it will be recalled, protest in the strongest terms against the power of the Supreme Court over legislation, and the Wisconsin legislature, by no means under Socialist control, has initiated a call for a national constitutional convention.

In proposing his "old-age pension" bill, Mr. Berger appended a clause which asserted that the measure should not be subject to the interpretation of the Supreme Court, and showed that Congress had added a similar clause to its Reconstruction Act in 1868 and that it had later been recognized by the Supreme Court. Later theOutlooksuggested that this was a remedy less radical than the widely popular recall of judges, and remarked that it would only be to follow the constitution of most other countries.[162]Also Senator Owen, on the same day on which Mr. Berger introduced his bill, spoke for the recall of federal judges on the floor of the United States Senate. It is impossible, then, to make any important distinction between Mr. Berger's proposedpoliticalreforms, sweeping as they are, and those of other radicals of the day.

The attitude of many of the "Insurgents" and"Progressives" of the West, is also about all that mere trade unionists could ask for. A large majority of this element in both parties favors the repeal of the Sherman law as applied to labor union boycotts, and Senator La Follette and others stand even for the right of government employees to organize labor unions. The adoption of the recall of judges, owing largely to non-Socialist efforts in Oregon, California, and Arizona, will make anti-union injunctions in strikes and boycotts improbable in the courts of those States, and the widely accepted proposal for the direct election of the federal judiciary would have a similar effect in the federal courts. It may be many years before these measures become general or effective, but there can be no question that they are demanded by a large, sincere, and well-organized body of opinion outside of the Socialist Party. The Wisconsin legislature and most other progressive bodies have so far failed to limit injunctions. But this has been done in the constitution of Oklahoma, and I have suggested reasons for believing that this prohibition may soon be favored by "Progressives" generally.

In the first Socialist speech ever made in Congress, Mr. Berger laid bare his economic philosophy and program. The subject was the reduction of the tariff on wool and its manufactures, and Mr. Berger defined his position on the tariff as well as still larger issues. He declared himself practically a free trader, though of course he did not consider free trade as a panacea, and his speech, according to the Socialist as well as other reports, was received with a storm of applause—especially, of course, from free-trade Democrats.

He pointed out that the manufacturer, having thoroughly mastered the home market, had found that tariff wars were shutting him out from the foreign markets he now needs. He might have added, as evidenced by the nature of the proposed reciprocity treaty with Canada, that many manufacturers are more interested in cheap raw material and cheap food for their workers (cheap food making low wages possible, as in free-trade Great Britain) than they are in a high tariff, and this even in some instances where they have a certain need for protection for the finished product and where no great export trade is in view.

Mr. Berger forgot England when he said that the tariff falls on the poor man's head, for England has shown that the abolition of the tariff does not benefit the poor man in the slightest degree. Poverty is far more widespread there thanhere. He pointed to the fact that the importation of goods into the United States was restricted, while that of labor was not. He forgot that where both are restricted, as in Australia, the workers are no better off than here.

The arguments employed in Mr. Berger's speech, in so far as they referred to the tariff, were for the most part not to be distinguished from those used by the Democrats in behalf of important capitalistic elements of the population, and hence the welcome with which they were received by the Democratic Congress and press. The Socialist matter in the speech relating only indirectly to the tariff was, of course, less favorably commented upon.

Mr. Berger's second speech before Congress was also significant. It was in support of governmental old-age pensions, a very radical departure for the United States and difficult of enactment because of our federal system—but already, as Mr. Berger said, in force in Great Britain, France, Germany, Austria, Italy, Australia, New Zealand, and Canada. Since the legislatures in all these countries are controlled by opponents of Socialism, it is evident that such measures have been adopted from other than Socialist motives. In fact they have no necessary relation to Socialism at all, but, on the contrary, have been widely enacted for capitalistic reasons without regard to the demands or power of the workers.

Mr. Berger is reported to have said a few days after this speech: "The idea will in five years have been incorporated into law. Both of the old parties within that time will have incorporated the theory into their platforms. Both the old parties to-day are approaching Socialistic ideas, and appropriating our ideas to save themselves from the coming overthrow."[163]The idea of governmental old-age pensions, on the contrary, has always been popular in certain anti-Socialist circles and is entirely in accord with any intelligent system of purely capitalistic collectivism. Its common adoption by progressive capitalists would seem to indicate that they consider it as being either directly or indirectly conducive to their own interests. It is unnecessary to assume that they adopt it from fear of Socialism. Few if any capitalists consider the overthrow of capitalism as imminent, or feel that Socialism is likely for many years to furnish them with a really acute political problem. A combination of Republicans and Democrats, for example, with a full vote, would easily overwhelm Mr. Berger, the sole Socialist Congressmanin his own Congressional district. If present political successes continue, it will still take years for Socialism to send a score of representatives to Congress, and when it does do so, they will be as impotent as ever to overthrow the capitalist order.

For any independent representative without political power or responsibility to propose radical reforms in advance of the larger parties is a very simple matter. Statesmen with actual power cannot afford to take up such reforms until the time ispoliticallyripe for their practical consideration. When such a measure is passed, for the individual or group that first proposed it to claim the credit for the change would be absurd. These reforms, when conditions have suitably evolved, become the order of the day, and are urged by all or nearly all the forces of the time. The radical British old-age pension bill, it will be remembered, was passed almost unanimously, although in the Parliament that passed it there were only about 40 Socialist or semi-Socialist representatives out of a total of 670 members.

What, then, could be more fatuous than such a view as the following, expressed recently by a well-known Socialist:—

"Do you not think that the whole country should be apprised that this (Berger's Old-age Pension bill) is a Socialist measure, introduced by a Socialist Representative, and backed by the Socialist Party—before the Republicans and Democrats realize the advisability of stealing our thunder. In England the working-class political movement is stagnant because the Liberal Party has out-generaled the Socialists by voluntarily enacting great social reforms."[164]

In his anxiety to prepare a bill that capitalist legislators would indorse and pass in the near future, Mr. Berger aroused great criticism within the Party. TheNew York Volkszeitungpointed out that in limiting the benefit of the law to those who had been naturalized citizens of the United States for sixteen years, he was requiring a residence of twenty-one years in this country, a provision which involved an excessively heavy discrimination against a very large proportion of our foreign-born workers. Mr. Berger's project, moreover, demanded that those convicted of felonies should also be excluded. Socialists, as is well known, have always asserted that the larger part of crimes and criminals were due to injustices of the existing social order, for which the "criminals" were in no sense to blame. Mr. Berger'ssecretary, Mr. W. J. Ghent, vigorously defended this clause, on the typical "State Socialist" ground that the future Society would dealmore severelywith criminals than the present one.

Mr. Berger's bill was objected to by New York Socialists on the ground that the old parties could be expected to give a more liberal bill in the near future, and that it would then be difficult to explain the narrower Socialist position. Mr. Ghent answered that nowhere had such a liberal measure been enacted. To this theVolkszeitungremarked that there is a tremendous difference between a bill that owes its origin to a capitalist government and one that comes from a Socialist representative of the working class: "The former sets up a minimum while the latter must demand the maximum." Finally, theNew York Localof the Socialist Party resolved: "That we request the National Executive Committee to resolve that Comrade Berger shall, before introducing any bill, submit it to secure its approval by the National Executive Committee."

Mr. Berger's maiden speech also summed up excellently the general policy of Socialist "reformism."

"When the white man is sick or when he dies," he said, "the employer usually loses nothing." Mr. Berger does not understand that, in modern countries,employers as a classare seeing that thelaborers as a classare, after all, their chief asset: and are therefore organizing to care for them through governmental action, as working animals, even more systematically and infinitely more scientifically than slaves were ever cared for. He is exhausting his efforts to persuade, or perhaps he would say to compel, the government to the very action that the interests of its capitalist masters most strongly demand.

Curiously enough, Mr. Berger expressed the "reformist," the revolutionary, and the State capitalist principle in this same speech, without being in the least troubled with the contradictions. He spoke of industrial crises, irregular employment and unemployment as if they were permanent features of capitalism:—

"These new inventions, machines, improvements, and labor devices, displace human labor and steadily increase the army of unemployed, who, starved and frantic, are ever ready to take the places of those who have work, thereby still further depressing the labor market."

The collectivist capitalists have already set themselves aggressively to work to abolish unemployment, to make employment regular, to connect the worker that needs a job with the job that needs a worker, and to put an end to industrial crises, and with every promise of success.

Immediately afterward, Mr. Berger made a correct statement of the Socialist position:—

"The average of wages, the certainty of employment, the social privileges, and the independence of the wage-earning and agricultural population,when compared with the increase of wealth and social production, are steadily and rapidly decreasing."

The Socialist indictment is not that unemployment, irregularity of employment, or any other social evil is increasing absolutely, or that it is beyond the reach of capitalist reform; but thatthe share of the constantly increasing total of wealth and prosperity that goes to the laborers is constantly growing less.

A few minutes later in the same speech, Mr. Berger indorsed pure "State Socialism." Legislation, he said, that does not tend toan increased measure of control on the part of society as a wholeis not in line with the trend of economic evolution and cannot last. This formulates capitalistic collectivism with absolute distinctness. What it demands is not a new order, but more order. What it opposes is not so much the rule of capitalists, as the disorder of capitalism—which capitalists themselves are effectively remedying. It is not only our present government that is capitalistic but our present society, also. Increased control over industry, over legislation and government, on the part of the present societyas a whole, would be but a step toward the achievement ofState capitalism. The purpose of Socialism is to overcome and eliminate the power of capitalism whether in society or in government, and not to establish it more firmly. Increased control by society as a whole, far from being a Socialist principle, is not necessarily even radical or progressive. In factthe most far-seeing conservativesto-day demand it, for "control by society as a whole" means, for the present,control by societyas it is.

Finally, in reply to questions asked on the floor of Congress after this same speech, Mr. Berger said: "Any interference by the government with the rights of private property is Socialistic in tendency," that is, that every step incollectivism is a step in Socialism. Yet this demand for the restriction of the rights of private property by a conservative government is the identical principle advocated by progressives who will have nothing to do with Socialism. (SeePart I, Chapter III.)

Mr. Berger and the large minority of Socialist Party members that vote with him in Party Congresses and referendums may be said to represent a combination of trade unionism of the conservative kind, and "State Socialism," together with opportunistic methods more or less in contradiction with the usual tactics of the international movement. These methods and the indiscriminate support of conservative unionism have been repeatedly rejected by the Socialists in this country. But very many Socialists who repudiate all compromise and will have nothing of Australian or British Labor Party tactics in the United States are in entire accord with Mr. Berger on "State Socialist" reform. It is thus a modified form of "State Socialism" and not Laborism that now confronts the organization and creates its greatest problem.

Mr. Charles Edward Russell, for example, says that "we are not striving for ourselves alone, but for our children," that "our aim is not merely for one country, but for all the world," that "we stand here immutably resolved against the whole of capitalism."[165]And Mr. Russell will hear nothing either of compromise or of a Labor Party. But when we come to examine the only question of practical moment, how his ideal is to be applied, we are astounded to read that, "every time a government acquires a railroad, it practices Socialism."[166]

Mr. Russell points out that "almost all the railroads in the world, outside of the United States, are now owned by government," yet in his latest book, "Business," he refers to Prussia, Japan, Mexico [under Diaz], and other countries as having boldly purchased railways and coal mines when they desired themfor the common good.[167]Mr. Russell here seems to overlook the fact that the history of Russia, Japan, Mexico, and Prussia has shown that there is an intermediate stage between our status and government "for the Common Good," a stage during which the capitalist class, having gained a more firm control over government than ever, intrusts it (with the opposition of but a few of the largest capitalists) with some of the most important business functions.

Yet Mr. Russell himself admits, by implication, that government by Business "properly informed and broadly enlightened" might continue for a considerable period, and therefore directs his shafts largely against Business Government "as at present conducted," and he realizes fully that the most neededreforms, even when they directly benefit the workingmen, are equally or still more to the benefit of Business:—

"In the first place, if the masses of people become too much impoverished, the national stamina is destroyed, which would be exceedingly bad for Business in case Business should plunge us into war. In the second place, since poverty produces a steady decline in physical and mental capacity, if it goes too far, there is a lack of hands to do the work of Business and a lack of healthy stomachs to consume some of its most important products."For these reasons, a Government for Profits, like ours, incurs certain deadly perils,unless it be properly informed and broadly enlightened."Something of the truth of this has already been perceived by the astute gentlemen that steer the fortunes of the Standard Oil Company, a concern that in many respects may be considered the foremost present type of Business in Government. One of the rules of the Standard Oil Company is to pay good wages to its employees, and to see that they are comfortable and contented. As a result of this policy the Standard Oil Company is seldom bothered with strikes, and most of its workers have no connection with labor unions, do not listen to muck-rakers and other vile breeders of social discontent, and are quite satisfied with their little round of duties and their secure prospects in life...."Unless Business recognizes quite fully the wisdom of similar arrangements for its employees, Business Government (as at present conducted) will in the end fall of its own weight."[168](My italics.)

"For these reasons, a Government for Profits, like ours, incurs certain deadly perils,unless it be properly informed and broadly enlightened.

"Something of the truth of this has already been perceived by the astute gentlemen that steer the fortunes of the Standard Oil Company, a concern that in many respects may be considered the foremost present type of Business in Government. One of the rules of the Standard Oil Company is to pay good wages to its employees, and to see that they are comfortable and contented. As a result of this policy the Standard Oil Company is seldom bothered with strikes, and most of its workers have no connection with labor unions, do not listen to muck-rakers and other vile breeders of social discontent, and are quite satisfied with their little round of duties and their secure prospects in life....

"Unless Business recognizes quite fully the wisdom of similar arrangements for its employees, Business Government (as at present conducted) will in the end fall of its own weight."[168](My italics.)

Surely nobody has given more convincing arguments than Mr. Russell himself why Business Government should go in for government ownership and measures to increase the efficiency of labor. Surely no further reasons should be needed to prove that when a government purchases a railroad to-day, it does not practice Socialism. Yet the reverse is sustained by a growing number of members of the Socialist Party (though not by a growing proportion of the Party), which indicates that the Socialism of Bebel, Liebknecht, Kautsky, Guesde, Lafargue, and the International Socialist Congresses is at present by no means as firmly rooted in this country as it is on the Continent of Europe.

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