Socialists have always taught that Socialism can develop only out of the full maturity of capitalism, and so favor the normal advance of capitalist industry and government and the reforms of capitalist collectivism—on their constructive side. But if capitalism in its highest form of "State Socialism" is the only foundation upon which the Socialism can be built, it is at the same time that form of capitalism which will prevail when Socialism reaches maturity and is ready for decisive action; and it is, therefore, the very enemy against which the Socialist hosts will have been drilled and the Socialist tactics evolved. The older capitalism, which professed to oppose all industrial activities of the government, must disappear, but it is not the object of attack, for the capitalists themselves will abandon it without Socialist intervention in any form. Socialists have urged on this evolution from the older to the newer capitalism by taking the field against the reactionaries, but they do not, as a rule, claim that by this action they are doing any more for Socialism than they are for progressive capitalism. Socialism can only do what capitalism, after it has reached its culmination in State capitalism, leaves undone; namely, to take effective measures to establish equal opportunity and abolish class government. To accomplish this, Socialists realize they must reckon with the resistance of every element of society that enjoys superior opportunities or profits from capitalist government, and they must know just which these elements are. It must be decided which of the non-privileged classes are to be permanently relied upon in the fight for this great change, to what point each will be ready to go, The popular conviction that the very existence of social classes is in complete contradiction with the principles of democracy, no amount of contrary teaching has been able to blot out. What has not been so clearly seen is the active and constant resistance of the privileged classes to popular government and industrial democracy, i.e. the class struggle. "We have long rested comfortably in this country on the assumption," says Senator La Follette, "that because our form of government was democratic, it was therefore automatically producing democratic results. Now there is nothing mysteriously potent about the forms and names of democratic institutions that should make them self-operative. Tyranny and oppression are just as possible under democratic forms as under any other. We are slowly realizing that democracy is a life, and involves continual struggle." Senator La Follette fails only to note that this struggle to make democracy a reality is not a struggle in the heart of the individual, but between groups of individuals, that these groups are not formed by differences of temperament or opinion, but by economic interests, and that nearly every group falls into one of two great classes, those whose interests are with and those whose interests are against the capitalists and capitalist government. Why is the sinister rÔle of the upper classes not universally grasped? Because the ideas and teachings of former generations still survive, however much contradicted by present developments. At the time of the American and French Revolutions and for nearly a century afterwards, when political democracy was first securing a world-wide acceptance as an ideal, it was looked upon as a creed which had only to be mentally accepted in order to be forthwith applied to life. The only forces of resistance were thought to be due to the ignorance or possibly to the unregenerate moral character of the unconverted. The democratic faith was accepted and propagated by the French and others almost exactly as religion had been. As late as the middle of the last century this conception of democracy, due to the About the middle of the nineteenth century the first advance was made. It became recognized with the coming of railroads and steamships that society could never become fixed as a Utopia or in any other form, but must always be subject to change,—and the ideal of social evolution gained a considerable acceptance even before the evolution theory had been generally applied to biology. It was seen that if the ideal of democracy was to become a reality, a certain degree of intellectual and material development was required,—but it was thought that this development was at hand. It was a period when wealth was rapidly becoming more equally distributed, when plenty of free land remained, and when it was commonly supposed that universal free trade and universal peace were about to dawn upon the nations, and equal opportunity, if not yet achieved, was not far away. The obstacles in the way of progress were not the resistance of privileged classes, but the time and labor required for mankind to conquer the world and nature. With the establishment of so-called democratic and constitutional republics in the place of monarchies and landlord aristocracies, and the abolition of slavery in the United States, all systematic opposition to social progress, except in the minds of a few perverted or criminal individuals, was supposed to be at an end. A generation or two ago, then, though it was now recognized that the golden age could not be attained immediately by merely converting the majority to a wise and beneficent social system (as had been proposed in the first half of the century), yet it was thought that, with the advance of science and the conquest of nature, and without any serious civil strife, "equality of opportunity" was being gradually and rapidly brought to all mankind. This state of mind has survived and is still that of the majority to-day, when the conditions that have given rise to it have disappeared. Not all previous history has a greater economic change to show than the latter half of the nineteenth century, which converted all the leading countries from nations of small capitalists into nations of hired employees. Even such a far-sighted and broad-minded statesman as Lincoln, for example, had no idea of the future of his country, and regarded the slaveowners and their supporters as the only classes that dreamed that we could ever become a nation of "hired The present generation, however, is slowly realizing, through the development of organized capitalism in industry and government, and the increase of hired laborers, that it is not nature alone that civilization must contend against, not merely ignorance or poverty or the backwardness of material development, but, more important than all these, the systematic opposition of the employing and governing classes to every program of improvement, except that which promises still further to increase their own wealth and power. The Socialist view of the evolution of society is that the central fact of history is this struggle of classes for political and economic power. The governing class of any society or period, Marx taught, consists of the economic exploiters, the governed class of the economically exploited. The governing class becomes more and more firmly established in power, until it begins to stagnate, but the machinery of However his predictions may turn out in the future, Marx's view of the past is rapidly gaining ground and is possibly accepted by the majority of those most competent to speak on these questions to-day, including many leading economists and sociologists and prominent figures in practical political life. Winston Churchill, for example, says that "the differences between class and class have been even aggravated in the passage of years," that while "the richer classes [are] ever growing in wealth and in numbers, and ever declining in responsibility, the very poor remain plunged or plunging even deeper into helpless, hopeless misery." This being the case, he predicts "a savage strife between class and class," unless the most radical measures are taken to check the tendency. Nor are his statements mere rhetoric, for he shows statistically "that the increase of income assessable to income tax is at the very least more than ten times greater than the increase which has taken place in the same period in the wages of those trades which come within the Board of Trade returns." Here is a situation which is world-wide. The position of the working class, or certain parts of it, may be improving; the income of the employing and capitalist class is certainly increasing many fold more rapidly. Here is the financial expression of the growing divergence of classes which Marx had in mind, a divergence that we have no reason whatever for supposing will be checked, as Mr. Churchill suggests, even by his most "Socialistic" reforms, short of surrendering the political and economic power to those who suffer from this condition. At the German Socialist Congress at Hanover in 1899, The class struggle, says Kautsky, rests not upon the fact that the misery of the proletariat is growing greater, but on its need to annihilate a pressure that it feels more and more keenly. "The class struggle," he writes, "becomes more bitter the longer it lasts. The more capable of struggle the opponents become in and through the struggle itself, the more important become the differences in their conditions of life, the more the capitalists raise themselves above the proletariat by the ever growing exploitation." This feature of present-day (capitalistic) progress, Socialists view as the very essence of social injustice, no matter whether there is a slight and continuous or even a considerable progress of the working class. The question for them is not whether from time to time something more falls to the workingman, but what proportion he gets of the total product. It would never occur to any one to try to tell a business man that he ought not to sell any more goods because his profits were already increasing "fast enough." It is as absurd to tell the workingman that the moderate advance he is making either through slight improvements as to wages and hours, or through political and social reforms, ought to blind him to all the possibilities of modern civilization from which he is still shut off, and which will remain out of his reach for generations, unless his share in the income of society is rapidly increased to the point that he (and other non-capitalist producers) receive the total product. The conflict of class interests is not a mere theory, but a widely recognized reality, and the worst accusation that can be made against Socialists is not that they are trying to create a war of classes where none exists, but that some of them at times interpret the conflict in a narrow or violent sense (I shall discuss the truth or untruth of this criticism in later chapters). Yet Mr. Roosevelt voices the opinion of many when he calls the view that the maximum of progress "There is no greater need to-day," said Mr. Roosevelt in his Sorbonne lecture, "than the need to keep ever in mind the fact that the cleavage between right and wrong, between good citizenship and bad citizenship, runs at right angles to, not parallel to, the lines of cleavage between class and class, between occupation and occupation. Ruin looks us in the face if we judge a man by his position instead of judging him by his conduct in that position." This is as much as to say that there are only individuals, but no class, which it is better to have outside than inside of a progressive majority. The Socialist view is the exact opposite. It holds that the very foundation of Socialism as a method (which is its only aspect of practical importance) is that the Socialist movement assumes a position so militant and radical that every privileged class will voluntarily remain on the outside; and events are showing the wisdom and even the necessity of these tactics. Socialists would say, "Ruin looks us in the face if, in politics, we judge the men who occupy a certain position (the members of a certain class) by their conduct as individuals, instead of judging them by the fact that they occupy a certain position and are members of a certain class." Again, to the Chamber of Commerce at New Haven, Mr. Roosevelt expressed a view which, to judge by their actions, is that of all non-Socialist reformers: "I am a radical," he said, "who most earnestly desires to see a radical platform carried out by conservatives. I wish to see great industrial reforms carried out, not by the men who will profit by them, but by the men who will lose by them; by such men as you are around me." Socialists, on the contrary, believe that industrial reforms will never lead to equality of opportunity except when carried out wholly independently of the conservatives who will lose by them. They believe that such reforms as are carried out by the capitalists and their governments, beneficent, radical, and even stupendous as they may be, will not and cannot constitute the first or smallest step towards industrial democracy. Mr. Roosevelt's views are identical on this point with those of Mr. Woodrow Wilson and other progressive leaders of the opposite party. Mayor Gaynor of New York, for example, was quoted explaining the great changes that took place in the fall elections of 1910 on these grounds: "We are emerging from an evil case. The flocking of nearly all the business men, owners of property, and even persons with $100 in the savings bank, to one party made a division line and created a contrast which must have led to trouble if much longer continued. The intelligence of the country is asserting itself, and business men and property owners will again divide themselves normally between the parties, as formerly." Here again is the fundamental antithesis to the Socialist view. Leaving aside for the moment the situation of persons with $100 in the savings bank, or owners of property in general (who might possess nothing more than a small home), Socialists are working, with considerable success, towards the day when at least one great party will take a position so radical that the overwhelming majority of business men (or at least the representatives of by far the larger part of business and capital) will be forced automatically into the opposite organization. Without this militant attitude Socialists believe that even the most radical reforms, not excepting those that sincerely propose equal opportunity or the abolition of social classes as their ultimate aim, must fail to carry society forward a single step in that direction. Take, as an example, Dr. Lyman Abbott, whose advanced views I have already referred to (see Part I, Chap. III). Notwithstanding his advocacy of industrial democracy, his attack on the autocracy of capitalism and the wages system, and his insistence that the distinction between non-possessing and possessing classes must be abolished, Dr. Abbott opposes a class struggle. Such phrases amount to nothing from the Socialist standpoint, if all of these objects are held up merely as an ideal, and if nothing is said of the rate at which they ought to be attained or the means by which the opposition of privileged classes is to be overcome. No indorsement of any so-called Socialist theory or reform is of practical moment unless it includes that theory which has survived out of the struggles of the movement, and has been tested by hard experience—a theory in which ways and means are not the last but the first consideration,—namely, the class struggle. Mr. Roosevelt and nearly all other popular leaders of the day denounce "special privilege." But the denouncers of special privilege, aside from the organized Socialists, are only too glad to associate themselves with one or another of the classes that at present possess the economic and political power. To the Socialists the only way to fight special privilege is to place the control of society in the hands of a non-privileged majority. The practical experience of the movement has taught the truth of what some of its early exponents saw at the outset, that a majority composed even in part of the privileged classes could never be trusted or expected to abolish privileges. Neither Dr. Abbott, Mr. Roosevelt, nor other opponents of the Socialist movement, are ready to indorse this practical working theory. For its essence being that all those who by their economic expressions or their acts stand for anything less than equality of opportunity should be removed from positions of power, it is directed against every anti-Socialist. Dr. Abbott, for example, demands only "opportunity," instead of equal opportunity, and Mr. Roosevelt wishes merely "to start all men in the race for life on a reasonable equality." (My italics.) Let us see what Marx and his successors say in explanation of their belief that the "class struggle" must be fought out to an end. Certainly they do not mean that each individual capitalist is to be regarded by his working people as their private enemy. Nor, on the other hand, can the expression "class struggle" be interpreted, as some Socialists have asserted, to mean that there was no flesh and blood enemy to be attacked, but only "the capitalist system." To Marx capitalism was embodied not merely in institutions, which embrace all classes and individuals alike, but also in the persons of the capitalist class. And by waging a war against that class he meant to include each and every member of it who remained in his class, and every one of its supporters. To Marx the enemy was no abstraction. It was, as he said, "the person, the living individual" that had to be contended with, but only as the embodiment of a class. "It is not sufficient," he said, "to fight the general conditions and the higher powers. The press must make up its mind to oppose this constable, this attorney, this councilor." The struggle that Marx had in mind might be called a latent civil war. It was not a mere preparation for revolution, since it was as real and serious in times of peace as in those of revolution or civil war. But it was a civil war in everything except the actual physical fighting, and he was always ready to proceed to actual fighting when necessary. Throughout his life Marx was a revolutionist. And when his successors to-day speak of "the class struggle," they mean a conflict of that depth and intensity that it may lead to revolution. None of the classical Socialist writers, however, has failed to grasp the absolute necessity to a successful social movement, and especially to a revolutionary one, of making the class struggle broad, inclusive, and democratic. In 1851 Marx wrote to the Socialists: "The forces opposed to you have all the advantages of organization, discipline, and habitual authority; unless you bring strong odds against them you are defeated and ruined." (The italics are mine.) Edward Bernstein, while representing as a rule only the ultra-moderate element of the Party, expresses on this question the views of the majority as well. "Social Democracy," he says, "cannot further its work better than by taking its stand unreservedly on the theory of democracy." And he adds that in practice it has always favored coÖperation with all the exploited, even if "its literary advocates have often acted otherwise, and still often do so to-day." Not many years ago, it is true, there was still a great deal of talk in Germany about the desirability of a "dictatorship of the proletariat," the term "proletariat" being used in its narrow sense. That is, as soon as the working class (in this sense) became a political majority, it was to make the government embody its will without reference to other classes—it being assumed that the manual laborers will only demand justice for all men alike, and that it was neither safe nor necessary to consult any of the middle classes. And even to-day in France much is said by the "syndicalists" and others as to the power of well-organized and determined minorities in the time of revolution—it being assumed, again, that such minorities will be successful only in so far as they stand for a new social principle, to the ultimate interest of all (see Chapter V). It cannot be questioned that in these schemes the majority is not to be consulted. But they The pioneer of "reformist" Socialism in Germany (Bernstein) correctly defines democracy, not as the rule of the majority, but as "an absence of class government." "This negative definition has," he says, "the advantage that it gives less room than the phrase 'government by the people' to the idea of oppression of the individual by the majority, which is absolutely repugnant to the modern mind. To-day we find the oppression of the minority by the majority 'undemocratic,' although it was originally held up to be quite consistent with government by the people.... Democracy is in principle the suppression of class government, though it is not yet the actual suppression of classes." Democracy, as we have hitherto known it, opposes class government, but countenances the existence of classes. Socialism insists that as long as social classes exist, class government will continue. The aim of Socialism, "the end of class struggles and class rule," is not only democratic, but the only means of giving democracy any real meaning. "It is only the proletariat" (wage earners), writes Kautsky, "that has created a great social ideal, the consummation of which will leave only one source of income, i.e. labor, will abolish rent and profit, will put an end to class and other conflicts, and put in the place of the class struggle the solidarity of man. This is the final aim and goal of the class struggle by the Socialist Party. The political representatives of the class interests of the proletariat thus become representative of the highest and most general interests of humanity." It is expected that nearly all social classes, though separated into several groups to-day, will ultimately be thrown together by economic evolution and common interests into two large groups, the capitalists and their allies on the one side, and the anti-capitalists on the other. The final and complete victory of the latter, it is believed, can alone put an end to this great conflict. But in the meanwhile, even before our capitalist society is overthrown and class divisions ended, the very fusing together of the several classes that compose the anti-capitalist party is bringing about a degree of social harmony not seen before. Already the Socialists have succeeded in this way in harmonizing a large number of conflicting class interests. The skilled workingmen were united for the first time with the The process of building up a truly democratic society has two parts: first, the organization and union in a single movement of all classes that stand for the abolition of classes, and class rule; and second, the overthrow of those social elements that stand in the way of this natural evolution, their destruction and dissolution as classes, and the absorption of their members by the new society as individuals. It becomes of the utmost importance in such a vast struggle, on the one hand, that no classes that are needed in the new society shall be marked for destruction, and on the other that the movement shall not lean too heavily or exclusively on classes which have very little or too little constructive or combative power. What, then, is the leading principle by which the two groups are to be made up and distinguished? Neither the term "capitalist classes" nor the term "working classes" is entirely clear or entirely satisfactory. Mr. Roosevelt, for example, gives the common impression when he accuses the Socialists of using the term "working class" in the narrow sense and of taking the position that "all wealth is produced by manual workers, that the entire product of labor should be handed over to the laborer." Kautsky's definition of the working class, for example, is: "Workers who are divorced from their power of production to the extent that they can produce nothing by their own efforts, and are therefore compelled in order to escape starvation to sell the only commodity they possess—their labor power." In present-day society, especially in a rich country like America, it is as a rule not sheer "starvation" that drives, but needs of other kinds that are almost as compelling. But the point I am concerned with now is that this definition, widely accepted by Socialists, draws no line whatever between manual and intellectual workers. In another place Kautsky refers to the industrial working class as being the recruiting ground for Socialism, which might seem to be giving a preferred position to manual workers; but a few paragraphs below he again qualifies his statement by adding that "to the working class there belong, just as much as the wage earners, the members of the new middle class," which I shall describe below. In other statements of their position, it is the context which makes the Socialist meaning clear. The party Platform of Canada, for instance, uses throughout the simple term "working class," without any explanation, but it speaks of the struggle as taking place against the "capitalists," and as it mentions no other classes, the reader is left to divide all society between these two, which would evidently make it necessary to classify many besides mere manual wage earners rather among the anti-capitalist than among the capitalist forces. The platform of the American Socialist Party in 1904 divided the population between the "capitalists," and the "working or producing class." "Between these two classes," says this platform, "there can be no possible compromise ... except in the conscious and complete triumph of the working class as the only class that has the right or power to be." "By working people," said Liebknecht, "we do not understand merely the manual workers, but every one who does not live on the labor of another." His words should be memorized by all those who wish to understand the first principles of Socialism:—
The chief questions now confronting the Socialists are all connected, directly or indirectly, with these producing middle classes, who, on the whole, do not live on the labor of others and suffer from the present system, yet often enjoy some modest social privilege. While Liebknecht considered that the wage-earning class was more revolutionary and Socialistic than any other, he did not allow this for one moment to persuade him to give a subordinate position to other classes in the movement, as he says:—
Karl Kautsky, though he takes a less broad view, also says that the Socialist Party is "the only anti-capitalist party," Kautsky's is probably the prevailing opinion among German Socialists. Let us see how he proposes to compose a Socialist majority. Of course his first reliance is on the manual laborers, skilled and unskilled. Next come the professional classes, the salaried corporation employees, and a large part of the office workers, which together constitute what Kautsky and the other Continental Socialists call the new middle class. "Among these," Kautsky says, "a continually increasing sympathy for the proletariat is evident, because they have no special class interest, and owing to their professional, scientific point of view, are easiest won for our party through scientific considerations. The theoretical bankruptcy of bourgeois economics, and the theoretical superiority of Socialism, must become clear to them. Through their training, also, they must discover that the other social classes continuously strive to debase art and science. Many others are impressed by the fact of the irresistible advance of the Social Democracy. So it is that friendship for labor becomes popular among the cultured classes, until there is scarcely a parlor in which one does not stumble over one or more 'Socialists.'" It is difficult to understand how it can be said that these classes have no special "class interest," unless it is meant that their interest is neither that of the capitalists nor precisely that of the industrial wage-earning class. And this, indeed, is Kautsky's meaning, for he seems to minimize their value to the Socialists, because as a class they cannot be relied upon.
In the last words Kautsky refers to the fact that although a large number of "intellectuals" (meaning the educated classes) have come into the Socialist Party and remain there, they constitute a separate wing of the movement. We must remember, however, that this same wing embraces, besides these "parlor Socialists," a great many trade unionists, and that it has composed a very considerable portion of the German Party, and a majority in some other countries of the Continent; and as Kautsky himself admits that they succeed in "dividing the proletariat," they cannot be very far removed politically from at least one of the divisions they are said to have created. It is impossible to attribute the kind of Socialism to which Kautsky objects to the adhesion of certain educated classes to the movement (for reasons indicated in Part II). While many of the present spokesmen of Socialism are, like Kautsky, somewhat skeptical as to the necessity of an A few quotations from the well-known revolutionary Socialist, Anton Pannekoek, will show the contrast between the narrower kind of Socialism, which still survives in many quarters, and that of the majority of the movement. He discriminates even against "the new middle class," leaving nobody but the manual laborers as a fruitful soil for real Socialism.
The arguments of the American Socialist, Thomas Sladden, representing as they do the views of many thousands of revolutionary workingmen in this country, are also worthy of note. His bitterness, it will be seen, is leveled less against capitalism itself than against what he considers to be intrusion of certain middle-class elements into Socialist ranks.
It can readily be realized that such arguments will always have great weight with the embittered elements of the working class. Nor do the most representative Socialists altogether disagree with Sladden. They, too, feel that if the war is not levied against individuals, neither is it levied against a mere abstract system, but against a ruling class. However, they make exceptions for such capitalists as the late Paul Singer, who definitely abandon their class and throw in their lot with the Socialist movement, while Sladden would admit neither Singer, nor those other millions mentioned by Liebknecht (see above), for he demands that the Socialist Party must declare that "no one not eligible to the labor unions of the United States is eligible to the Socialist Party." The high-water mark of this brand of revolutionism was reached in the State of Washington, when these On the other hand, the most influential representatives of the extreme revolutionary wing of the movement, like HervÉ in France, have championed the non-wage-earning elements of the movement as fearlessly as the reformists.
While there is no sufficient reason for the accusation that the Socialist movement neglects the brain workers of the salaried and professional classes, there is somewhat more solid ground, in spite of the above quoted declarations of Liebknecht and HervÉ, for the accusation that it antagonizes those sections of the middle classes which are, even to a slight degree, small capitalists, as, for example, especially the farmers. "The unimaginative person," says Mr. H. G. Wells, "who owns some little bit of property, an acre or so of freehold land, or a hundred pounds in the savings bank, will no doubt be the most tenacious passive resister to Socialist ideas; and such I fear we must reckon, together with the insensitive rich, as our irreconcilable enemies, as irremovable pillars of the present order." This view is widespread among Socialists, and is even sustained by Kautsky. "Small merchants and innkeepers," he writes, "have despaired of ever rising by their own exertions; they expect everything from above and look only to the upper classes and to the government for assistance," though they "find their customers only in laboring circles, so that their existence is absolutely dependent upon the prosperity or adversity of the laboring classes." The contradiction Kautsky finds goes even further. He says, "Servility depends upon reaction—and furnishes not only the willing supporters, but the fanatical advocates of the monarchy, the church, and the nobility." With all this they (the shopkeepers, etc.) remain democratic, since it is only through democracy that they can obtain political influence. Kautsky calls them the "reactionary democracy." Kautsky extends his criticism of the small capitalists very far and even seems in doubt concerning the owners of small investments such as savings bank deposits. "Well-meaning optimists," he says, "have seen in this a means of decentralizing capital, so that after a while, in the most peaceable manner, without any one noticing it, capital would be transformed into social property. In fact, this movement really means the transformation of all the money of the middle and lower classes, which is not used by them for immediate consumption, into money capital, and as such placing it at the disposal of the great financiers for the buying out of industrial managers, and thereby assisting in the concentration on industry in the hands of a few financiers." The classes which have invested their capital directly or indirectly in stocks or bonds through savings banks and through insurance companies number many millions, and include the large majority of all sections of the middle class, even of its most progressive part, salaried employees, and the As in the case of the farmers and small shopkeepers, everything here depends upon the economic and political program which the working class develops and offers in competition with the "State Socialism" of the capitalists. If it were true that the ownership of the smallest amount of property brings it about that Socialism is no longer desired, not a small minority of the population will be found aligned with the capitalists, but all the four million owners of farms, and the other millions with a thousand dollars or so invested in a building and loan association, an insurance policy or a savings bank deposit, a total numbering almost half of the occupied population. A bare majority, it is true, might still be without any stake in the community even of this modest character. But neither in the United States nor elsewhere is there any hope that a majority of the absolutely propertyless, even if it becomes a large one, will become sufficiently large within a generation, or perhaps even within a century, to enable it to overthrow the capitalists, unless it draws over to its side certain elements at least, of the middle classes, who, though weaker in some respects are better educated, better placed, and politically stronger than itself. The revolutionary spokesmen of the international Socialist movement now recognize this as clearly as do the most conservative observers. The outcome of the great social struggle depends on the relative success of employers and employed in gaining the support of those classes which, either on account of their ownership of some slight property, or because they receive salaries or fees sufficiently large, must be placed in the middle class, but who cannot be classified primarily as small capitalists That this is the crux of the situation is recognized on all sides. Mr. Churchill says that "the masses of the people should not use the fact that they are in a majority as a means to advance their relative position in society." There could not be a sharper contrast between "State Socialism" and Socialism. To Socialists the whole duty of man as a social being is to persuade the masses to "use the fact that they are in a majority as a means to advance their relative position in society." Mr. Churchill seems to feel that as long as everybody shares more or less in the general increase of prosperity from generation to generation, and, as he says, as long as there is "an ever increasing volume of production and an increasing wide diffusion of profit," there is no ground for complaint—whether the relative division of wealth and opportunity between the many and the few becomes more equal or not. But he realizes that his moral suasion is not likely to be heeded and is wise in putting his trust in the middle-class millions. For these are the bone of contention between capitalism and Socialism. While the new middle class (that is, the lower salaried classes, corporation employees, professional men, etc.) is increasing numerically more rapidly than any other, large numbers within it are being deprived of any hope of rising into the wealthy or privileged class. As a consequence they are everywhere crowding into the Socialist ranks—by the hundred thousand in countries where the movement is oldest. Even in the organized Socialist parties these middle-class elements everywhere form a considerable proportion of the whole. Practically a third of the American Party according to a recent reckoning were engaged either in farming (15 per cent) or in commercial (9 per cent) or professional pursuits (5 per cent). It is plain that certain sections of the so-called middle class |