[9] An absurd misconception fostered principally by opponents of equality for controversial purposes.
We have seen something of the principle underlying the Liberal idea and of its various applications. We have now to put the test question. Are these different applications compatible? Will they work together to make that harmonious whole of which it is easy enough to talk in abstract terms? Are they themselves really harmonious in theory and in practice? Does scope for individual development, for example, consort with the idea of equality? Is popular sovereignty a practicable basis of personal freedom, or does it open an avenue to the tyranny of the mob? Will the sentiment of nationality dwell in unison with the ideal of peace? Is the love of liberty compatible with the full realization of the common will? If reconcilable in theory, may not these ideals collide in practice? Are there not clearly occasions demonstrable in history when development in one direction involves retrogression in another? If so, how are we to strike the balance of gain and loss? Does political progress offer us nothing but a choice of evils, or may we have some confidence that, in solving the most pressing problem of the moment, we shall in the end be in a better position for grappling with the obstacles that come next in turn?
I shall deal with these questions as far as limits of space allow, and I will take first the question of liberty and the common will upon which everything turns. Enough has already been said on this topic to enable us to shorten the discussion. We have seen that social liberty rests on restraint. A man can be free to direct his own life only in so far as others are prevented from molesting and interfering with him. So far there is no real departure from the strictest tenets of individualism. We have, indeed, had occasion to examine the application of the doctrine to freedom of contract on the one hand, and to the action of combinations on the other, and have seen reason to think that in either case nominal freedom, that is to say, the absence of legal restraint, might have the effect of impairing real freedom, that is to say, would allow the stronger party to coerce the weaker. We have also seen that the effect of combination may be double edged, that it may restrict freedom on one side and enlarge it on the other. In all these cases our contention has been simply that we should be guided by real and not by verbal considerations,—that we should ask in every case what policy will yield effective freedom—and we have found a close connection in each instance between freedom and equality. In these cases, however, we were dealing with the relations of one man with another, or of one body of men with another, and we could regard the community as an arbiter between them whose business it was to see justice done and prevent the abuse of coercive power. Hence we could treat a very large part of the modern development of social control as motived by the desire for a more effective liberty. The case is not so clear when we find the will of the individual in conflict with the will of the community as a whole. When such conflict occurs, it would seem that we must be prepared for one of two things. Either we must admit the legitimacy of coercion, avowedly not in the interests of freedom but in furtherance, without regard to freedom, of other ends which the community deems good. Or we must admit limitations which may cramp the development of the general will, and perchance prove a serious obstacle to collective progress. Is there any means of avoiding this conflict? Must we leave the question to be fought out in each case by a balance of advantages and disadvantages, or are there any general considerations which help us to determine the true sphere of collective and of private action?
Let us first observe that, as Mill pointed out long ago, there are many forms of collective action which do not involve coercion. The State may provide for certain objects which it deems good without compelling any one to make use of them. Thus it may maintain hospitals, though any one who can pay for them remains free to employ his own doctors and nurses. It may and does maintain a great educational system, while leaving every one free to maintain or to attend a private school. It maintains parks and picture galleries without driving any one into them. There is a municipal tramway service, which does not prevent private people from running motor 'buses along the same streets, and so on. It is true that for the support of these objects rates and taxes are compulsorily levied, but this form of compulsion raises a set of questions of which we shall have to speak in another connection, and does not concern us here. For the moment we have to deal only with those actions of State which compel all citizens, or all whom they concern, to fall in with them and allow of no divergence. This kind of coercion tends to increase. Is its extension necessarily an encroachment upon liberty, or are the elements of value secured by collective control distinct from the elements of value secured by individual choice, so that within due limits each may develop side by side?
We have already declined to solve the problem by applying Mill's distinction between self-regarding and other-regarding actions, first because there are no actions which may not directly or indirectly affect others, secondly because even if there were they would not cease to be matter of concern to others. The common good includes the good of every member of the community, and the injury which a man inflicts upon himself is matter of common concern, even apart from any ulterior effect upon others. If we refrain from coercing a man for his own good, it is not because his good is indifferent to us, but because it cannot be furthered by coercion. The difficulty is founded on the nature of the good itself, which on its personal side depends on the spontaneous flow of feeling checked and guided not by external restraint but by rational self-control. To try to form character by coercion is to destroy it in the making. Personality is not built up from without but grows from within, and the function of the outer order is not to create it, but to provide for it the most suitable conditions of growth. Thus, to the common question whether it is possible to make men good by Act of Parliament, the reply is that it is not possible to compel morality because morality is the act or character of a free agent, but that it is possible to create the conditions under which morality can develop, and among these not the least important is freedom from compulsion by others.
The argument suggests that compulsion is limited not by indifference—how could the character of its members be matter of indifference to the community?—but by its own incapacity to achieve its ends. The spirit cannot be forced. Nor, conversely, can it prevail by force. It may require social expression. It may build up an association, a church for example, to carry out the common objects and maintain the common life of all who are like-minded. But the association must be free, because spiritually everything depends not on what is done but on the will with which it is done. The limit to the value of coercion thus lies not in the restriction of social purpose, but in the conditions of personal life. No force can compel growth. Whatever elements of social value depend on the accord of feeling, on comprehension of meaning, on the assent of will, must come through liberty. Here is the sphere and function of liberty in the social harmony.
Where, then, is the sphere of compulsion, and what is its value? The reply is that compulsion is of value where outward conformity is of value, and this may be in any case where the non-conformity of one wrecks the purpose of others. We have already remarked that liberty itself only rests upon restraint. Thus a religious body is not, properly speaking, free to march in procession through the streets unless people of a different religion are restrained from pelting the procession with stones and pursuing it with insolence. We restrain them from disorder not to teach them the genuine spirit of religion, which they will not learn in the police court, but to secure to the other party the right of worship unmolested. The enforced restraint has its value in the action that it sets free. But we may not only restrain one man from obstructing another—and the extent to which we do this is the measure of the freedom that we maintain—but we may also restrain him from obstructing the general will; and this we have to do whenever uniformity is necessary to the end which the general will has in view. The majority of employers in a trade we may suppose would be willing to adopt certain precautions for the health or safety of their workers, to lower hours or to raise the rate of wages. They are unable to do so, however, as long as a minority, perhaps as long as a single employer, stands out. He would beat them in competition if they were voluntarily to undertake expenses from which he is free. In this case, the will of a minority, possibly the will of one man, thwarts that of the remainder. It coerces them, indirectly, but quite as effectively as if he were their master. If they, by combination, can coerce him no principle of liberty is violated. It is coercion against coercion, differing possibly in form and method, but not in principle or in spirit. Further, if the community as a whole sympathizes with the one side rather than the other, it can reasonably bring the law into play. Its object is not the moral education of the recusant individuals. Its object is to secure certain conditions which it believes necessary for the welfare of its members, and which can only be secured by an enforced uniformity.
It appears, then, that the true distinction is not between self-regarding and other-regarding actions, but between coercive and non-coercive actions. The function of State coercion is to override individual coercion, and, of course, coercion exercised by any association of individuals within the State. It is by this means that it maintains liberty of expression, security of person and property, genuine freedom of contract, the rights of public meeting and association, and finally its own power to carry out common objects undefeated by the recalcitrance of individual members. Undoubtedly it endows both individuals and associations with powers as well as with rights. But over these powers it must exercise supervision in the interests of equal justice. Just as compulsion failed in the sphere of liberty, the sphere of spiritual growth, so liberty fails in the external order wherever, by the mere absence of supervisory restriction, men are able directly or indirectly to put constraint on one another. This is why there is no intrinsic and inevitable conflict between liberty and compulsion, but at bottom a mutual need. The object of compulsion is to secure the most favourable external conditions of inward growth and happiness so far as these conditions depend on combined action and uniform observance. The sphere of liberty is the sphere of growth itself. There is no true opposition between liberty as such and control as such, for every liberty rests on a corresponding act of control. The true opposition is between the control that cramps the personal life and the spiritual order, and the control that is aimed at securing the external and material conditions of their free and unimpeded development.
I do not pretend that this delimitation solves all problems. The "inward" life will seek to express itself in outward acts. A religious ordinance may bid the devout refuse military service, or withhold the payment of a tax, or decline to submit a building to inspection. Here are external matters where conscience and the State come into direct conflict, and where is the court of appeal that is to decide between them? In any given case the right, as judged by the ultimate effect on human welfare, may, of course, be on the one side, or on the other, or between the two. But is there anything to guide the two parties as long as each believes itself to be in the right and sees no ground for waiving its opinion? To begin with, clearly the State does well to avoid such conflicts by substituting alternatives. Other duties than that of military service may be found for a follower of Tolstoy, and as long as he is willing to take his full share of burdens the difficulty is fairly met. Again, the mere convenience of the majority cannot be fairly weighed against the religious convictions of the few. It might be convenient that certain public work should be done on Saturday, but mere convenience would be an insufficient ground for compelling Jews to participate in it. Religious and ethical conviction must be weighed against religious and ethical conviction. It is not number that counts morally, but the belief that is reasoned out according to the best of one's lights as to the necessities of the common good. But the conscience of the community has its rights just as much as the conscience of the individual. If we are convinced that the inspection of a convent laundry is required in the interest, not of mere official routine, but of justice and humanity, we can do nothing but insist upon it, and when all has been done that can be done to save the individual conscience the common conviction of the common good must have its way. In the end the external order belongs to the community, and the right of protest to the individual.
On the other side, the individual owes more to the community than is always recognized. Under modern conditions he is too much inclined to take for granted what the State does for him and to use the personal security and liberty of speech which it affords him as a vantage ground from which he can in safety denounce its works and repudiate its authority. He assumes the right to be in or out of the social system as he chooses. He relies on the general law which protects him, and emancipates himself from some particular law which he finds oppressive to his conscience. He forgets or does not take the trouble to reflect that, if every one were to act as he does, the social machine would come to a stop. He certainly fails to make it clear how a society would subsist in which every man should claim the right of unrestricted disobedience to a law which he happens to think wrong. In fact, it is possible for an over-tender conscience to consort with an insufficient sense of social responsibility. The combination is unfortunate; and we may fairly say that, if the State owes the utmost consideration to the conscience, its owner owes a corresponding debt to the State. With such mutual consideration, and with the development of the civic sense, conflicts between law and conscience are capable of being brought within very narrow limits, though their complete reconciliation will always remain a problem until men are generally agreed as to the fundamental conditions of the social harmony.
It may be asked, on the other hand, whether in insisting on the free development of personality we have not understated the duty of society to its members. We all admit a collective responsibility for children. Are there not grown-up people who stand just as much in need of care? What of the idiot, the imbecile, the feeble-minded or the drunkard? What does rational self-determination mean for these classes? They may injure no one but themselves except by the contagion of bad example. But have we no duty towards them, having in view their own good alone and leaving every other consideration aside? Have we not the right to take the feeble-minded under our care and to keep the drunkard from drink, purely for their own good and apart from every ulterior consideration? And, if so, must we not extend the whole sphere of permissible coercion, and admit that a man may for his own sake and with no ulterior object, be compelled to do what we think right and avoid what we think wrong?
The reply is that the argument is weak just where it seeks to generalize. We are compelled to put the insane under restraint for social reasons apart from their own benefit. But their own benefit would be a fully sufficient reason if no other existed. To them, by their misfortune, liberty, as we understand the term, has no application, because they are incapable of rational choice and therefore of the kind of growth for the sake of which freedom is valuable. The same thing is true of the feeble-minded, and if they are not yet treated on the same principle it is merely because the recognition of their type as a type is relatively modern. But the same thing is also in its degree true of the drunkard, so far as he is the victim of an impulse which he has allowed to grow beyond his own control; and the question whether he should be regarded as a fit object for tutelage or not is to be decided in each case by asking whether such capacity of self-control as he retains would be impaired or repaired by a period of tutelar restraint. There is nothing in all this to touch the essential of liberty which is the value of the power of self-governance where it exists. All that is proved is that where it does not exist it is right to save men from suffering, and if the case admits to put them under conditions in which the normal balance of impulse is most likely to be restored. It may be added that, in the case of the drunkard—and I think the argument applies to all cases where overwhelming impulse is apt to master the will—it is a still more obvious and elementary duty to remove the sources of temptation, and to treat as anti-social in the highest degree every attempt to make profit out of human weakness, misery, and wrong-doing. The case is not unlike that of a very unequal contract. The tempter is coolly seeking his profit, and the sufferer is beset with a fiend within. There is a form of coercion here which the genuine spirit of liberty will not fail to recognize as its enemy, and a form of injury to another which is not the less real because its weapon is an impulse which forces that other to the consent which he yields.
I conclude that there is nothing in the doctrine of liberty to hinder the movement of general will in the sphere in which it is really efficient, and nothing in a just conception of the objects and methods of the general will to curtail liberty in the performance of the functions, social and personal, in which its value lies. Liberty and compulsion have complementary functions, and the self-governing State is at once the product and the condition of the self-governing individual.
Thus there is no difficulty in understanding why the extension of State control on one side goes along with determined resistance to encroachments on another. It is a question not of increasing or diminishing, but of reorganizing, restraints. The period which has witnessed a rapid extension of industrial legislation has seen as determined a resistance to anything like the establishment of doctrinal religious teaching by a State authority,[10] and the distinction is perfectly just. At bottom it is the same conception of liberty and the same conception of the common will that prompts the regulation of industry and the severance of religious worship and doctrinal teaching from the mechanism of State control.
So far we have been considering what the State compels the individual to do. If we pass to the question what the State is to do for the individual, a different but parallel question arises, and we have to note a corresponding movement of opinion. If the State does for the individual what he ought to do for himself what will be the effect on character, initiative, enterprise? It is a question now not of freedom, but of responsibility, and it is one that has caused many searchings of heart, and in respect of which opinion has undergone a remarkable change. Thus, in relation to poverty the older view was that the first thing needful was self-help. It was the business of every man to provide for himself and his family. If, indeed, he utterly failed, neither he nor they could be left to starve, and there was the Poor Law machinery to deal with his case. But the aim of every sincere friend of the poor must be to keep them away from the Poor Law machine. Experience of the forty years before 1834 had taught us what came of free resort to public funds by way of subvention to inadequate wages. It meant simply that the standard of remuneration was lowered in proportion as men could rely on public aid to make good the deficiency, while at the same time the incentives to independent labour were weakened when the pauper stood on an equal footing with the hard-working man. In general, if the attempt was made to substitute for personal effort the help of others, the result would only sap individual initiative and in the end bring down the rate of industrial remuneration. It was thought, for example—and this very point was urged against proposals for Old Age Pensions—that if any of the objects for which a man will, if possible, provide were removed from the scope of his own activity, he would in consequence be content with proportionally lower wages; if the employer was to compensate him for accident, he would fail to make provision for accidents on his own account; if his children were fed by the ratepayers, he would not earn the money wherewith to feed them. Hence, on the one hand, it was urged that the rate of wages would tend to adapt itself to the necessities of the wage earner, that in proportion as his necessities were met from other sources his wages would fall, that accordingly the apparent relief would be in large measure illusory, while finally, in view of the diminished stimulus to individual exertion, the productivity of labour would fall off, the incentives to industry would be diminished, and the community as a whole would be poorer. Upon the other hand, it was conceived that, however deplorable the condition of the working classes might be, the right way of raising them was to trust to individual enterprise and possibly, according to some thinkers, to voluntary combination. By these means the efficiency of labour might be enhanced and its regular remuneration raised. By sternly withholding all external supports we should teach the working classes to stand alone, and if there were pain in the disciplinary process there was yet hope in the future. They would come by degrees to a position of economic independence in which they would be able to face the risks of life, not in reliance upon the State, but by the force of their own brains and the strength of their own right arms.
These views no longer command the same measure of assent. On all sides we find the State making active provision for the poorer classes and not by any means for the destitute alone. We find it educating the children, providing medical inspection, authorizing the feeding of the necessitous at the expense of the ratepayers, helping them to obtain employment through free Labour Exchanges, seeking to organize the labour market with a view to the mitigation of unemployment, and providing old age pensions for all whose incomes fall below thirteen shillings a week, without exacting any contribution. Now, in all this, we may well ask, is the State going forward blindly on the paths of broad and generous but unconsidered charity? Is it and can it remain indifferent to the effect on individual initiative and personal or parental responsibility? Or may we suppose that the wiser heads are well aware of what they are about, have looked at the matter on all sides, and are guided by a reasonable conception of the duty of the State and the responsibilities of the individual? Are we, in fact—for this is really the question—seeking charity or justice?
We said above that it was the function of the State to secure the conditions upon which mind and character may develop themselves. Similarly we may say now that the function of the State is to secure conditions upon which its citizens are able to win by their own efforts all that is necessary to a full civic efficiency. It is not for the State to feed, house, or clothe them. It is for the State to take care that the economic conditions are such that the normal man who is not defective in mind or body or will can by useful labour feed, house, and clothe himself and his family. The "right to work" and the right to a "living wage" are just as valid as the rights of person or property. That is to say, they are integral conditions of a good social order. A society in which a single honest man of normal capacity is definitely unable to find the means of maintaining himself by useful work is to that extent suffering from malorganization. There is somewhere a defect in the social system, a hitch in the economic machine. Now, the individual workman cannot put the machine straight. He is the last person to have any say in the control of the market. It is not his fault if there is over-production in his industry, or if a new and cheaper process has been introduced which makes his particular skill, perhaps the product of years of application, a drug in the market. He does not direct or regulate industry. He is not responsible for its ups and downs, but he has to pay for them. That is why it is not charity but justice for which he is asking. Now, it may be infinitely difficult to meet his demand. To do so may involve a far-reaching economic reconstruction. The industrial questions involved may be so little understood that we may easily make matters worse in the attempt to make them better. All this shows the difficulty in finding means of meeting this particular claim of justice, but it does not shake its position as a claim of justice. A right is a right none the less though the means of securing it be imperfectly known; and the workman who is unemployed or underpaid through economic malorganization will remain a reproach not to the charity but to the justice of society as long as he is to be seen in the land.
If this view of the duty of the State and the right of the workman is coming to prevail, it is owing partly to an enhanced sense of common responsibility, and partly to the teaching of experience. In the earlier days of the Free Trade era, it was permissible to hope that self-help would be an adequate solvent, and that with cheap food and expanding commerce the average workman would be able by the exercise of prudence and thrift not only to maintain himself in good times, but to lay by for sickness, unemployment, and old age. The actual course of events has in large measure disappointed these hopes. It is true that the standard of living in England has progressively advanced throughout the nineteenth century. It is true, in particular, that, since the disastrous period that preceded the Repeal of the Corn Laws and the passing of the Ten Hours' Act, social improvement has been real and marked. Trade Unionism and co-operation have grown, wages upon the whole have increased, the cost of living has diminished, housing and sanitation have improved, the death rate has fallen from about twenty-two to less than fifteen per thousand. But with all this improvement the prospect of a complete and lifelong economic independence for the average workman upon the lines of individual competition, even when supplemented and guarded by the collective bargaining of the Trade Union, appears exceedingly remote. The increase of wages does not appear to be by any means proportionate to the general growth of wealth. The whole standard of living has risen; the very provision of education has brought with it new needs and has almost compelled a higher standard of life in order to satisfy them. As a whole, the working classes of England, though less thrifty than those of some Continental countries, cannot be accused of undue negligence with regard to the future. The accumulation of savings in Friendly Societies, Trade Unions, Co-operative Societies, and Savings Banks shows an increase which has more than kept pace with the rise in the level of wages; yet there appears no likelihood that the average manual worker will attain the goal of that full independence, covering all the risks of life for self and family, which can alone render the competitive system really adequate to the demands of a civilized conscience. The careful researches of Mr. Booth in London and Mr. Rowntree in York, and of others in country districts, have revealed that a considerable percentage of the working classes are actually unable to earn a sum of money representing the full cost of the barest physical necessities for an average family; and, though the bulk of the working classes are undoubtedly in a better position than this, these researches go to show that even the relatively well-to-do gravitate towards this line of primary poverty in seasons of stress, at the time when the children are still at school, for example, or from the moment when the principal wage-earner begins to fail, in the decline of middle life. If only some ten per cent. of the population are actually living upon the poverty line at any given time,[11] twice or three times that number, it is reasonable to suppose, must approach the line in one period or other of their lives. But when we ascend from the conception of a bare physical maintenance for an average family to such a wage as would provide the real minimum requirements of a civilized life and meet all its contingencies without having to lean on any external prop, we should have to make additions to Mr. Rowntree's figure which have not yet been computed, but as to which it is probably well within the mark to say that none but the most highly skilled artisans are able to earn a remuneration meeting the requirements of the case. But, if that is so, it is clear that the system of industrial competition fails to meet the ethical demand embodied in the conception of the "living wage." That system holds out no hope of an improvement which shall bring the means of such a healthy and independent existence as should be the birthright of every citizen of a free state within the grasp of the mass of the people of the United Kingdom. It is this belief slowly penetrating the public mind which has turned it to new thoughts of social regeneration. The sum and substance of the changes that I have mentioned may be expressed in the principle that the individual cannot stand alone, but that between him and the State there is a reciprocal obligation. He owes the State the duty of industriously working for himself and his family. He is not to exploit the labour of his young children, but to submit to the public requirements for their education, health, cleanliness and general well-being. On the other side society owes to him the means of maintaining a civilized standard of life, and this debt is not adequately discharged by leaving him to secure such wages as he can in the higgling of the market.
This view of social obligation lays increased stress on public but by no means ignores private responsibility. It is a simple principle of applied ethics that responsibility should be commensurate with power. Now, given the opportunity of adequately remunerated work, a man has the power to earn his living. It is his right and his duty to make the best use of his opportunity, and if he fails he may fairly suffer the penalty of being treated as a pauper or even, in an extreme case, as a criminal. But the opportunity itself he cannot command with the same freedom. It is only within narrow limits that it comes within the sphere of his control. The opportunities of work and the remuneration for work are determined by a complex mass of social forces which no individual, certainly no individual workman, can shape. They can be controlled, if at all, by the organized action of the community, and therefore, by a just apportionment of responsibility, it is for the community to deal with them.
But this, it will be said, is not Liberalism but Socialism. Pursuing the economic rights of the individual we have been led to contemplate a Socialistic organization of industry. But a word like Socialism has many meanings, and it is possible that there should be a Liberal Socialism, as well as a Socialism that is illiberal. Let us, then, without sticking at a word, seek to follow out the Liberal view of the State in the sphere of economics. Let us try to determine in very general terms what is involved in realizing those primary conditions of industrial well-being which have been laid down, and how they consort with the rights of property and the claims of free industrial enterprise.
[10] The objection most often taken to "undenominationalism" itself is that it is in reality a form of doctrinal teaching seeking State endowment.
[11] I do not include those living in "secondary poverty," as defined by Mr. Rowntree, as the responsibility in this case is partly personal. It must, however, be remembered that great poverty increases the difficulty of efficient management.
There are two forms of Socialism with which Liberalism has nothing to do. These I will call the mechanical and the official. Mechanical Socialism is founded on a false interpretation of history. It attributes the phenomena of social life and development to the sole operation of the economic factor, whereas the beginning of sound sociology is to conceive society as a whole in which all the parts interact. The economic factor, to take a single point, is at least as much the effect as it is the cause of scientific invention. There would be no world-wide system of telegraphy if there was no need of world-wide intercommunication. But there would be no electric telegraph at all but for the scientific interest which determined the experiments of Gauss and Weber. Mechanical Socialism, further, is founded on a false economic analysis which attributes all value to labour, denying, confounding or distorting the distinct functions of the direction of enterprise, the unavoidable payment for the use of capital, the productivity of nature, and the very complex social forces which, by determining the movements of demand and supply actually fix the rates at which goods exchange with one another. Politically, mechanical Socialism supposes a class war, resting on a clear-cut distinction of classes which does not exist. Far from tending to clear and simple lines of cleavage, modern society exhibits a more and more complex interweaving of interests, and it is impossible for a modern revolutionist to assail "property" in the interest of "labour" without finding that half the "labour" to which he appeals has a direct or indirect interest in "property." As to the future, mechanical Socialism conceives a logically developed system of the control of industry by government. Of this all that need be said is that the construction of Utopias is not a sound method of social science; that this particular Utopia makes insufficient provision for liberty, movement, and growth; and that in order to bring his ideals into the region of practical discussion, what the Socialist needs is to formulate not a system to be substituted as a whole for our present arrangements but a principle to guide statesmanship in the practical work of reforming what is amiss and developing what is good in the actual fabric of industry. A principle so applied grows if it has seeds of good in it, and so in particular the collective control of industry will be extended in proportion as it is found in practice to yield good results. The fancied clearness of Utopian vision is illusory, because its objects are artificial ideas and not living facts. The "system" of the world of books must be reconstructed as a principle that can be applied to the railway, the mine, the workshop, and the office that we know, before it can even be sensibly discussed. The evolution of Socialism as a practical force in politics has, in point of fact, proceeded by such a reconstruction, and this change carries with it the end of the materialistic Utopia.
Official Socialism is a creed of different brand. Beginning with a contempt for ideals of liberty based on a confusion between liberty and competition, it proceeds to a measure of contempt for average humanity in general. It conceives mankind as in the mass a helpless and feeble race, which it is its duty to treat kindly. True kindness, of course, must be combined with firmness, and the life of the average man must be organized for his own good. He need not know that he is being organized. The socialistic organization will work in the background, and there will be wheels within wheels, or rather wires pulling wires. Ostensibly there will be a class of the elect, an aristocracy of character and intellect which will fill the civil services and do the practical work of administration. Behind these will be committees of union and progress who will direct operations, and behind the committees again one or more master minds from whom will emanate the ideas that are to direct the world. The play of democratic government will go on for a time, but the idea of a common will that should actually undertake the organization of social life is held the most childish of illusions. The master minds can for the moment work more easily through democratic forms, because they are here, and to destroy them would cause an upheaval. But the essence of government lies in the method of capture. The ostensible leaders of democracy are ignorant creatures who can with a little management be set to walk in the way in which they should go, and whom the crowd will follow like sheep. The art of governing consists in making men do what you wish without knowing what they are doing, to lead them on without showing them whither until it is too late for them to retrace their steps. Socialism so conceived has in essentials nothing to do with democracy or with liberty. It is a scheme of the organization of life by the superior person, who will decide for each man how he should work, how he should live, and indeed, with the aid of the Eugenist, whether he should live at all or whether he has any business to be born. At any rate, if he ought not to have been born—if, that is, he comes of a stock whose qualities are not approved—the Samurai will take care that he does not perpetuate his race.
Now the average Liberal might have more sympathy with this view of life if he did not feel that for his part he is just a very ordinary man. He is quite sure that he cannot manage the lives of other people for them. He finds it enough to manage his own. But with the leave of the Superior he would rather do this in his own way than in the way of another, whose way may be much wiser but is not his. He would rather marry the woman of his own choice, than the one who would be sure to bring forth children of the standard type. He does not want to be standardized. He does not conceive himself as essentially an item in a census return. He does not want the standard clothes or the standard food, he wants the clothes which he finds comfortable and the food which he likes. With this unregenerate Adam in him, I fear that the Liberalism that is also within him is quite ready to make terms. Indeed, it incites him to go still further. It bids him consider that other men are, on the whole, very like himself and look on life in much the same way, and when it speaks within him of social duty it encourages him to aim not at a position of superiority which will enable him to govern his fellow creatures for their own good, but at a spirit of comradeship in which he will stand shoulder to shoulder with them on behalf of common aims.
If, then, there be such a thing as a Liberal Socialism—and whether there be is still a subject for inquiry—it must clearly fulfil two conditions. In the first place, it must be democratic. It must come from below, not from above. Or rather, it must emerge from the efforts of society as a whole to secure a fuller measure of justice, and a better organization of mutual aid. It must engage the efforts and respond to the genuine desires not of a handful of superior beings, but of great masses of men. And, secondly, and for that very reason, it must make its account with the human individual. It must give the average man free play in the personal life for which he really cares. It must be founded on liberty, and must make not for the suppression but for the development of personality. How far, it may be asked, are these objects compatible? How far is it possible to organize industry in the interest of the common welfare without either overriding the freedom of individual choice or drying up the springs of initiative and energy? How far is it possible to abolish poverty, or to institute economic equality without arresting industrial progress? We cannot put the question without raising more fundamental issues. What is the real meaning of "equality" in economics? Would it mean, for example, that all should enjoy equal rewards, or that equal efforts should enjoy equal rewards, or that equal attainments should enjoy equal rewards? What is the province of justice in economics? Where does justice end and charity begin? And what, behind all this, is the basis of property? What is its social function and value? What is the measure of consideration due to vested interest and prescriptive right? It is impossible, within the limits of a volume, to deal exhaustively with such fundamental questions. The best course will be to follow out the lines of development which appear to proceed from those principles of Liberalism which have been already indicated and to see how far they lead to a solution.
We saw that it was the duty of the State to secure the conditions of self-maintenance for the normal healthy citizen. There are two lines along which the fulfilment of this duty may be sought. One would consist in providing access to the means of production, the other in guaranteeing to the individual a certain share in the common stock. In point of fact, both lines have been followed by Liberal legislation. On the one side this legislation has set itself, however timidly and ineffectively as yet, to reversing the process which divorced the English peasantry from the soil. Contemporary research is making it clear that this divorce was not the inevitable result of slowly operating economic forces. It was brought about by the deliberate policy of the enclosure of the common fields begun in the fifteenth century, partially arrested from the middle of the sixteenth to the eighteenth, and completed between the reigns of George II and Queen Victoria. As this process was furthered by an aristocracy, so there is every reason to hope that it can be successfully reversed by a democracy, and that it will be possible to reconstitute a class of independent peasantry as the backbone of the working population. The experiment, however, involves one form or another of communal ownership. The labourer can only obtain the land with the financial help of the State, and it is certainly not the view of Liberals that the State, having once regained the fee simple, should part with it again. On the contrary, in an equitable division of the fruits of agriculture all advantages that are derived from the qualities or position of the soil itself, or from the enhancement of prices by tariffs would, since they are the product of no man's labour, fall to no man's share, or, what is the same thing, they should fall to every man, that is, to the community. This is why Liberal legislation seeks to create a class not of small landlords but of small tenants. It would give to this class access to the land and would reward them with the fruits of their own work—and no more. The surplus it would take to itself in the form of rent, and while it is desirable to give the State tenant full security against disturbance, rents must at stated periods be adjustable to prices and to cost. So, while Conservative policy is to establish a peasant proprietary which would reinforce the voting strength of property, the Liberal policy is to establish a State tenantry from whose prosperity the whole community would profit. The one solution is individualist. The other, as far as it goes, is nearer to the Socialist ideal.
But, though British agriculture may have a great future before it, it will never regain its dominant position in our economic life, nor are small holdings ever likely to be the prevalent form of agriculture. The bulk of industry is, and probably will be, more and more in the hands of large undertakings with which the individual workman could not compete whatever instruments of production were placed in his hands. For the mass of the people, therefore, to be assured of the means of a decent livelihood must mean to be assured of continuous employment at a living wage, or, as an alternative, of public assistance. Now, as has been remarked, experience goes to show that the wage of the average worker, as fixed by competition, is not and is not likely to become sufficient to cover all the fortunes and misfortunes of life, to provide for sickness, accident, unemployment and old age, in addition to the regular needs of an average family. In the case of accident the State has put the burden of making provision on the employer. In the case of old age it has, acting, as I think, upon a sounder principle, taken the burden upon itself. It is very important to realize precisely what the new departure involved in the Old Age Pensions Act amounted to in point of principle. The Poor Law already guaranteed the aged person and the poor in general against actual starvation. But the Poor Law came into operation only at the point of sheer destitution. It failed to help those who had helped themselves. Indeed, to many it held out little inducement to help themselves if they could not hope to lay by so much as would enable them to live more comfortably on their means than they would live in the workhouse. The pension system throws over the test of destitution. It provides a certain minimum, a basis to go upon, a foundation upon which independent thrift may hope to build up a sufficiency. It is not a narcotic but a stimulus to self help and to friendly aid or filial support, and it is, up to a limit, available for all alike. It is precisely one of the conditions of independence of which voluntary effort can make use, but requiring voluntary effort to make it fully available.
The suggestion underlying the movement for the break up of the Poor Law is just the general application of this principle. It is that, instead of redeeming the destitute, we should seek to render generally available the means of avoiding destitution, though in doing so we should uniformly call on the individual for a corresponding effort on his part. One method of meeting these conditions is to supply a basis for private effort to work upon, as is done in the case of the aged. Another method is that of State-aided insurance, and on these lines Liberal legislators have been experimenting in the hope of dealing with sickness, invalidity, and one portion of the problem of unemployment. A third may be illustrated by the method by which the Minority of the Poor Law Commissioners would deal with the case, at present so often full of tragic import, of the widowed or deserted mother of young children. Hitherto she has been regarded as an object of charity. It has been a matter for the benevolent to help her to retain her home, while it has been regarded as her duty to keep "off the rates" at the cost of no matter what expenditure of labour away from home. The newer conception of rights and duties comes out clearly in the argument of the commissioners, that if we take in earnest all that we say of the duties and responsibilities of motherhood, we shall recognize that the mother of young children is doing better service to the community and one more worthy of pecuniary remuneration when she stays at home and minds her children than when she goes out charing and leaves them to the chances of the street or to the perfunctory care of a neighbour. In proportion as we realize the force of this argument, we reverse our view as to the nature of public assistance in such a case. We no longer consider it desirable to drive the mother out to her charing work if we possibly can, nor do we consider her degraded by receiving public money. We cease, in fact, to regard the public money as a dole, we treat it as a payment for a civic service, and the condition that we are inclined to exact is precisely that she should not endeavour to add to it by earning wages, but rather that she should keep her home respectable and bring up her children in health and happiness.
In defence of the competitive system two arguments have been familiar from old days. One is based on the habits of the working classes. It is said that they spend their surplus incomes on drink, and that if they have no margin for saving, it is because they have sunk it in the public-house. That argument is rapidly being met by the actual change of habits. The wave of temperance which two generations ago reformed the habits of the well-to-do in England is rapidly spreading through all classes in our own time. The drink bill is still excessive, the proportion of his weekly wages spent on drink by the average workman is still too great, but it is a diminishing quantity, and the fear which might have been legitimately expressed in old days that to add to wages was to add to the drink bill could no longer be felt as a valid objection to any improvement in the material condition of the working population in our own time. We no longer find the drink bill heavily increasing in years of commercial prosperity as of old. The second argument has experienced an even more decisive fate. Down to my own time it was forcibly contended that any improvement in the material condition of the mass of the people would result in an increase of the birth rate which, by extending the supply of labour, would bring down wages by an automatic process to the old level. There would be more people and they would all be as miserable as before. The actual decline of the birth rate, whatever its other consequences may be, has driven this argument from the field. The birth rate does not increase with prosperity, but diminishes. There is no fear of over-population; if there is any present danger, it is upon the other side. The fate of these two arguments must be reckoned as a very important factor in the changes of opinion which we have noted.
Nevertheless, it may be thought that the system that I have outlined is no better than a vast organization of State charity, and that as such it must carry the consequences associated with charity on a large scale. It must dry up the sources of energy and undermine the independence of the individual. On the first point, I have already referred to certain cogent arguments for a contrary view. What the State is doing, what it would be doing if the whole series of contemplated changes were carried through to the end, would by no means suffice to meet the needs of the normal man. He would still have to labour to earn his own living. But he would have a basis to go upon, a sub-structure on which it would be possible for him to rear the fabric of a real sufficiency. He would have greater security, a brighter outlook, a more confident hope of being able to keep his head above water. The experience of life suggests that hope is a better stimulus than fear, confidence a better mental environment than insecurity. If desperation will sometimes spur men to exceptional exertion the effect is fleeting, and, for a permanence, a more stable condition is better suited to foster that blend of restraint and energy which makes up the tissue of a life of normal health. There would be those who would abuse their advantages as there are those who abuse every form of social institution. But upon the whole it is thought that individual responsibility can be more clearly fixed and more rigorously insisted on when its legitimate sphere is properly defined, that is to say, when the burden on the shoulders of the individual is not too great for average human nature to bear.
But, it may be urged, any reliance on external assistance is destructive of independence. It is true that to look for support to private philanthropy has this effect, because it makes one man dependent on the good graces of another. But it is submitted that a form of support on which a man can count as a matter of legal right has not necessarily the same effect. Charity, again, tends to diminish the value of independent effort because it flows in the direction of the failures. It is a compensation for misfortune which easily slides into an encouragement to carelessness. What is matter of right, on the other hand, is enjoyed equally by the successful and the unsuccessful. It is not a handicap in favour of the one, but an equal distance deducted from the race to be run against fate by both. This brings us to the real question. Are measures of the kind under discussion to be regarded as measures of philanthropy or measures of justice, as the expression of collective benevolence or as the recognition of a general right? The full discussion of the question involves complex and in some respects novel conceptions of economics and of social ethics to which I can hardly do justice within the limits of this chapter. But I will endeavour to indicate in outline the conception of social and economic justice which underlies the movement of modern Liberal opinion.
We may approach the subject by observing that, whatever the legal theory, in practice the existing English Poor Law recognizes the right of every person to the bare necessaries of life. The destitute man or woman can come to a public authority, and the public authority is bound to give him food and shelter. He has to that extent a lien on the public resources in virtue of his needs as a human being and on no other ground. This lien, however, only operates when he is destitute; and he can only exercise it by submitting to such conditions as the authorities impose, which when the workhouse test is enforced means loss of liberty. It was the leading "principle of 1834" that the lot of the pauper should be made "less eligible" than that of the independent labourer. Perhaps we may express the change of opinion which has come about in our day by saying that according to the newer principle the duty of society is rather to ensure that the lot of the independent labourer be more eligible than that of the pauper. With this object the lien on the common wealth is enlarged and reconstituted. Its exercise does not entail the penal consequence of the loss of freedom unless there is proved misfeasance or neglect on the part of the individual. The underlying contention is that, in a State so wealthy as the United Kingdom, every citizen should have full means of earning by socially useful labour so much material support as experience proves to be the necessary basis of a healthy, civilized existence. And if in the actual working of the industrial system the means are not in actual fact sufficiently available he is held to have a claim not as of charity but as of right on the national resources to make good the deficiency.
That there are rights of property we all admit. Is there not perhaps a general right to property? Is there not something radically wrong with an economic system under which through the laws of inheritance and bequest vast inequalities are perpetuated? Ought we to acquiesce in a condition in which the great majority are born to nothing except what they can earn, while some are born to more than the social value of any individual of whatever merit? May it not be that in a reasoned scheme of economic ethics we should have to allow a true right of property in the member of the community as such which would take the form of a certain minimum claim on the public resources? A pretty idea, it may be said, but ethics apart, what are the resources on which the less fortunate is to draw? The British State has little or no collective property available for any such purpose. Its revenues are based on taxation, and in the end what all this means is that the rich are to be taxed for the benefit of the poor, which we may be told is neither justice nor charity but sheer spoliation. To this I would reply that the depletion of public resources is a symptom of profound economic disorganization. Wealth, I would contend, has a social as well as a personal basis. Some forms of wealth, such as ground rents in and about cities, are substantially the creation of society, and it is only through the misfeasance of government in times past that such wealth has been allowed to fall into private hands. Other great sources of wealth are found in financial and speculative operations, often of distinctly anti-social tendency and possible only through the defective organization of our economy. Other causes rest in the partial monopolies which our liquor laws, on the one side, and the old practice of allowing the supply of municipal services to fall into private hands have built up. Through the principle of inheritance, property so accumulated is handed on; and the result is that while there is a small class born to the inheritance of a share in the material benefits of civilization, there is a far larger class which can say "naked we enter, naked we leave." This system, as a whole, it is maintained, requires revision. Property in this condition of things ceases, it is urged, to be essentially an institution by which each man can secure to himself the fruits of his own labour, and becomes an instrument whereby the owner can command the labour of others on terms which he is in general able to dictate. This tendency is held to be undesirable, and to be capable of a remedy through a concerted series of fiscal, industrial, and social measures which would have the effect of augmenting the common stock at the disposal of society, and so applying it as to secure the economic independence of all who do not forfeit their advantages by idleness, incapacity, or crime. There are early forms of communal society in which each person is born to his appropriate status, carrying its appropriate share of the common land. In destroying the last relics of this system economic individualism has laid the basis of great material advances, but at great cost to the happiness of the masses. The ground problem in economics is not to destroy property, but to restore the social conception of property to its right place under conditions suitable to modern needs. This is not to be done by crude measures of redistribution, such as those of which we hear in ancient history. It is to be done by distinguishing the social from the individual factors in wealth, by bringing the elements of social wealth into the public coffers, and by holding it at the disposal of society to administer to the prime needs of its members.
The basis of property is social, and that in two senses. On the one hand, it is the organized force of society that maintains the rights of owners by protecting them against thieves and depredators. In spite of all criticism many people still seem to speak of the rights of property as though they were conferred by Nature or by Providence upon certain fortunate individuals, and as though these individuals had an unlimited right to command the State, as their servant, to secure them by the free use of the machinery of law in the undisturbed enjoyment of their possessions. They forget that without the organized force of society their rights are not worth a week's purchase. They do not ask themselves where they would be without the judge and the policeman and the settled order which society maintains. The prosperous business man who thinks that he has made his fortune entirely by self help does not pause to consider what single step he could have taken on the road to his success but for the ordered tranquillity which has made commercial development possible, the security by road, and rail, and sea, the masses of skilled labour, and the sum of intelligence which civilization has placed at his disposal, the very demand for the goods which he produces which the general progress of the world has created, the inventions which he uses as a matter of course and which have been built up by the collective effort of generations of men of science and organizers of industry. If he dug to the foundations of his fortune he would recognize that, as it is society that maintains and guarantees his possessions, so also it is society which is an indispensable partner in its original creation.
This brings us to the second sense in which property is social. There is a social element in value and a social element in production. In modern industry there is very little that the individual can do by his unaided efforts. Labour is minutely divided; and in proportion as it is divided it is forced to be co-operative. Men produce goods to sell, and the rate of exchange, that is, price, is fixed by relations of demand and supply the rates of which are determined by complex social forces. In the methods of production every man makes use, to the best of his ability, of the whole available means of civilization, of the machinery which the brains of other men have devised, of the human apparatus which is the gift of acquired civilization. Society thus provides conditions or opportunities of which one man will make much better use than another, and the use to which they are put is the individual or personal element in production which is the basis of the personal claim to reward. To maintain and stimulate this personal effort is a necessity of good economic organization, and without asking here whether any particular conception of Socialism would or would not meet this need we may lay down with confidence that no form of Socialism which should ignore it could possibly enjoy enduring success. On the other hand, an individualism which ignores the social factor in wealth will deplete the national resources, deprive the community of its just share in the fruits of industry and so result in a one-sided and inequitable distribution of wealth. Economic justice is to render what is due not only to each individual but to each function, social or personal, that is engaged in the performance of useful service, and this due is measured by the amount necessary to stimulate and maintain the efficient exercise of that useful function. This equation between function and sustenance is the true meaning of economic equality.
Now to apply this principle to the adjustment of the claims of the community on the one hand and the producers or inheritors of wealth on the other would involve a discrimination of the factors of production which is not easy to make in all instances. If we take the case of urban land, referred to above, the distinction is tolerably clear. The value of a site in London is something due essentially to London, not to the landlord. More accurately a part of it is due to London, a part to the British empire, a part, perhaps we should say, to Western civilization. But while it would be impossible to disentangle these subsidiary factors, the main point that the entire increment of value is due to one social factor or another is sufficiently clear, and this explains why Liberal opinion has fastened on the conception of site value as being by right communal and not personal property. The monopoly value of licensed premises, which is the direct creation of laws passed for the control of the liquor traffic, is another case in point. The difficulty which society finds in dealing with these cases is that it has allowed these sources of wealth to pass out of its hands, and that property of these kinds has freely passed from one man to another in the market, in the belief that it stood and would stand on the same basis in law as any other. Hence, it is not possible for society to insist on the whole of its claim. It could only resume its full rights at the cost of great hardship to individuals and a shock to the industrial system. What it can do is to shift taxation step by step from the wealth due to individual enterprise to the wealth that depends on its own collective progress, thus by degrees regaining the ownership of the fruits of its own collective work.
Much more difficult in principle is the question of the more general elements of social value which run through production as a whole. We are dealing here with factors so intricately interwoven in their operation that they can only be separated by an indirect process. What this process would be we may best understand by imagining for a moment a thoroughgoing centralized organization of the industrial system endeavouring to carry out the principles of remuneration outlined above. The central authority which we imagine as endowed with such wisdom and justice as to find for every man his right place and to assign to every man his due reward would, if our argument is sound, find it necessary to assign to each producer, whether working with hand or brain, whether directing a department of industry or serving under direction, such remuneration as would stimulate him to put forth his best efforts and would maintain him in the condition necessary for the life-long exercise of his function. If we are right in considering that a great part of the wealth produced from year to year is of social origin, it would follow that, after the assignment of this remuneration, there would remain a surplus, and this would fall to the coffers of the community and be available for public purposes, for national defence, public works, education, charity, and the furtherance of civilized life.
Now, this is merely an imaginary picture, and I need not ask whether such a measure of wisdom on the part of a Government is practically attainable, or whether such a measure of centralization might not carry consequences which would hamper progress in other directions. The picture serves merely to illustrate the principles of equitable distribution by which the State should be guided in dealing with property. It serves to define our conception of economic justice, and therewith the lines on which we should be guided in the adjustment of taxation and the reorganization of industry. I may illustrate its bearing by taking a couple of cases.
One important source of private wealth under modern conditions is speculation. Is this also a source of social wealth? Does it produce anything for society? Does it perform a function for which our ideal administration would think it necessary to pay? I buy some railway stock at 110. A year or two later I seize a favourable opportunity and sell it at 125. Is the increment earned or unearned? The answer in the single case is clear, but it may be said that my good fortune in this case may be balanced by ill luck in another. No doubt. But, to go no further, if on balance I make a fortune or an income by this method it would seem to be a fortune or an income not earned by productive service. To this it may be replied that the buyers and sellers of stocks are indirectly performing the function of adjusting demand and supply, and so regulating industry. So far as they are expert business men trained in the knowledge of a particular market this may be so. So far as they dabble in the market in the hope of profiting from a favourable turn, they appear rather as gamblers. I will not pretend to determine which of the two is the larger class. I would point out only that, on the face of the facts, the profits derived from this particular source appear to be rather of the nature of a tax which astute or fortunate individuals are able to levy on the producer than as the reward which they obtain for a definite contribution on their own part to production. There are two possible empirical tests of this view. One is that a form of collective organization should be devised which should diminish the importance of the speculative market. Our principle would suggest the propriety of an attempt in that direction whenever opportunity offers. Another would be the imposition of a special tax on incomes derived from this source, and experience would rapidly show whether any such tax would actually hamper the process of production and distribution at any stage. If not, it would justify itself. It would prove that the total profit now absorbed by individuals exceeds, at least by the amount of the tax, the remuneration necessary to maintain that particular economic function.
The other case I will take is that of inherited wealth. This is the main determining factor in the social and economic structure of our time. It is clear on our principle that it stands in quite a different position from that of wealth which is being created from day to day. It can be defended only on two grounds. One is prescriptive right, and the difficulty of disturbing the basis of the economic order. This provides an unanswerable argument against violent and hasty methods, but no argument at all against a gentle and slow-moving policy of economic reorganization. The other argument is that inherited wealth serves several indirect functions. The desire to provide for children and to found a family is a stimulus to effort. The existence of a leisured class affords possibilities for the free development of originality, and a supply of disinterested men and women for the service of the State. I would suggest once again that the only real test to which the value of these arguments can be submitted is the empirical test. On the face of the facts inherited wealth stands on a different footing from acquired wealth, and Liberal policy is on the right lines in beginning the discrimination of earned from unearned income. The distinction is misconceived only so far as income derived from capital or land may represent the savings of the individual and not his inheritance. The true distinction is between the inherited and the acquired, and while the taxation of acquired wealth may operate, so far as it goes, to diminish the profits, and so far to weaken the motive springs, of industry, it is by no means self-evident that any increase of taxation on inherited wealth would necessarily have that effect, or that it would vitally derange any other social function. It is, again, a matter on which only experience can decide, but if experience goes to show that we can impose a given tax on inherited wealth without diminishing the available supply of capital and without losing any service of value, the result would be net gain. The State could never be the sole producer, for in production the personal factor is vital, but there is no limit set by the necessities of things to the extension of its control of natural resources, on the one hand, and the accumulated heritage of the past, on the other.
If Liberal policy has committed itself not only to the discrimination of earned and unearned incomes but also to a super-tax on large incomes from whatever source, the ground principle, again, I take to be a respectful doubt whether any single individual is worth to society by any means as much as some individuals obtain. We might, indeed, have to qualify this doubt if the great fortunes of the world fell to the great geniuses. It would be impossible to determine what we ought to pay for a Shakespere, a Browning, a Newton, or a Cobden. Impossible, but fortunately unnecessary. For the man of genius is forced by his own cravings to give, and the only reward that he asks from society is to be let alone and have some quiet and fresh air. Nor is he in reality entitled, notwithstanding his services, to ask more than the modest sufficiency which enables him to obtain those primary needs of the life of thought and creation, since his creative energy is the response to an inward stimulus which goads him on without regard to the wishes of any one else. The case of the great organizers of industry is rather different, but they, again, so far as their work is socially sound, are driven on more by internal necessity than by the genuine love of gain. They make great profits because their works reach a scale at which, if the balance is on the right side at all, it is certain to be a big balance, and they no doubt tend to be interested in money as the sign of their success, and also as the basis of increased social power. But I believe the direct influence of the lust of gain on this type of mind to have been immensely exaggerated; and as proof I would refer, first, to the readiness of many men of this class to accept and in individual cases actively to promote measures tending to diminish their material gain, and, secondly, to the mass of high business capacity which is at the command of the public administration for salaries which, as their recipient must be perfectly conscious, bear no relation to the income which it would be open to him to earn in commercial competition.
On the whole, then, we may take it that the principle of the super-tax is based on the conception that when we come to an income of some £5,000 a year we approach the limit of the industrial value of the individual.[12] We are not likely to discourage any service of genuine social value by a rapidly increasing surtax on incomes above that amount. It is more likely that we shall quench the anti-social ardour for unmeasured wealth, for social power, and the vanity of display.
These illustrations may suffice to give some concreteness to the conception of economic justice as the maintenance of social function. They serve also to show that the true resources of the State are larger and more varied than is generally supposed. The true function of taxation is to secure to society the element in wealth that is of social origin, or, more broadly, all that does not owe its origin to the efforts of living individuals. When taxation, based on these principles, is utilized to secure healthy conditions of existence to the mass of the people it is clear that this is no case of robbing Peter to pay Paul. Peter is not robbed. Apart from the tax it is he who would be robbing the State. A tax which enables the State to secure a certain share of social value is not something deducted from that which the taxpayer has an unlimited right to call his own, but rather a repayment of something which was all along due to society.
But why should the proceeds of the tax go to the poor in particular? Granting that Peter is not robbed, why should Paul be paid? Why should not the proceeds be expended on something of common concern to Peter and Paul alike, for Peter is equally a member of the community? Undoubtedly the only just method of dealing with the common funds is to expend them in objects which subserve the common good, and there are many directions in which public expenditure does in fact benefit all classes alike. This, it is worth noting, is true even of some important branches of expenditure which in their direct aim concern the poorer classes. Consider, for example, the value of public sanitation, not merely to the poorer regions which would suffer first if it were withheld, but to the richer as well who, seclude themselves as they may, cannot escape infection. In the old days judge and jury, as well as prisoners, would die of gaol fever. Consider, again, the economic value of education, not only to the worker, but to the employer whom he will serve. But when all this is allowed for it must be admitted that we have throughout contemplated a considerable measure of public expenditure in the elimination of poverty. The prime justification of this expenditure is that the prevention of suffering from the actual lack of adequate physical comforts is an essential element in the common good, an object in which all are bound to concern themselves, which all have the right to demand and the duty to fulfil. Any common life based on the avoidable suffering even of one of those who partake in it is a life not of harmony, but of discord.
But we can go further. We said at the outset that the function of society was to secure to all normal adult members the means of earning by useful work the material necessaries of a healthy and efficient life. We can see now that this is one case and, properly understood, the largest and most far reaching case falling under the general principle of economic justice. This principle lays down that every social function must receive the reward that is sufficient to stimulate and maintain it through the life of the individual. Now, how much this reward may be in any case it is probably impossible to determine otherwise than by specific experiment. But if we grant, in accordance with the idea with which we have been working all along, that it is demanded of all sane adult men and women that they should live as civilized beings, as industrious workers, as good parents, as orderly and efficient citizens, it is, on the other side, the function of the economic organization of society to secure them the material means of living such a life, and the immediate duty of society is to mark the points at which such means fail and to make good the deficiency. Thus the conditions of social efficiency mark the minimum of industrial remuneration, and if they are not secured without the deliberate action of the State they must be secured by means of the deliberate action of the State. If it is the business of good economic organization to secure the equation between function and maintenance, the first and greatest application of this principle is to the primary needs. These fix the minimum standard of remuneration beyond which we require detailed experiment to tell us at what rate increased value of service rendered necessitates corresponding increase of reward.
It may be objected that such a standard is unattainable. There are those, it may be contended, who are not, and never will be, worth a full efficiency wage. Whatever is done to secure them such a remuneration will only involve net loss. Hence it violates our standard of economic justice. It involves payment for a function of more than it is actually worth, and the discrepancy might be so great as to cripple society. It must, of course, be admitted that the population contains a certain percentage of the physically incapable, the mentally defective, and the morally uncontrolled. The treatment of these classes, all must agree, is and must be based on other principles than those of economics. One class requires punitive discipline, another needs life-long care, a third—the mentally and morally sound but physically defective—must depend, to its misfortune, on private and public charity. There is no question here of payment for a function, but of ministering to human suffering. It is, of course, desirable on economic as well as on broader grounds that the ministration should be so conceived as to render its object as nearly as possible independent and self-supporting. But in the main all that is done for these classes of the population is, and must be, a charge on the surplus. The real question that may be raised by a critic is whether the considerable proportion of the working class whose earnings actually fall short, as we should contend, of the minimum, could in point of fact earn that minimum. Their actual value, he may urge, is measured by the wage which they do in fact command in the competitive market, and if their wage falls short of the standard society may make good the deficiency if it will and can, but must not shut its eyes to the fact that in doing so it is performing, not an act of economic justice, but of charity. To this the reply is that the price which naked labour without property can command in bargaining with employers who possess property is no measure at all of the addition which such labour can actually make to wealth. The bargain is unequal, and low remuneration is itself a cause of low efficiency which in turn tends to react unfavourably on remuneration. Conversely, a general improvement in the conditions of life reacts favourably on the productivity of labour. Real wages have risen considerably in the last half century, but the income-tax returns indicate that the wealth of the business and professional man has increased even more rapidly. Up to the efficiency minimum there is, then, every reason to think that a general increase of wages would positively increase the available surplus whether that surplus goes to individuals as profits or to the State as national revenue. The material improvement of working-class conditions will more than pay its way regarded purely as an economic investment on behalf of society.
This conclusion is strengthened if we consider narrowly what elements of cost the "living wage" ought in principle to cover. We are apt to assume uncritically that the wages earned by the labour of an adult man ought to suffice for the maintenance of an average family, providing for all risks. It ought, we think, to cover not only the food and clothing of wife and children, but the risks of sickness, accident, and unemployment. It ought to provide for education and lay by for old age. If it fails we are apt to think that the wage earner is not self supporting. Now, it is certainly open to doubt whether the actual addition to wealth made by an unskilled labourer denuded of all inherited property would equal the cost represented by the sum of these items. But here our further principle comes into play. He ought not to be denuded of all inherited property. As a citizen he should have a certain share in the social inheritance. This share should be his support in the times of misfortune, of sickness, and of worklessness, whether due to economic disorganization or to invalidity and old age. His children's share, again, is the State-provided education. These shares are charges on the social surplus. It does not, if fiscal arrangements are what they should be, infringe upon the income of other individuals, and the man who without further aid than the universally available share in the social inheritance which is to fall to him as a citizen pays his way through life is to be justly regarded as self-supporting.
The central point of Liberal economics, then, is the equation of social service and reward. This is the principle that every function of social value requires such remuneration as serves to stimulate and maintain its effective performance; that every one who performs such a function has the right, in the strict ethical sense of that term, to such remuneration and to no more; that the residue of existing wealth should be at the disposal of the community for social purposes. Further, it is the right, in the same sense, of every person capable of performing some useful social function that he should have the opportunity of so doing, and it is his right that the remuneration that he receives for it should be his property, i. e. that it should stand at his free disposal enabling him to direct his personal concerns according to his own preferences. These are rights in the sense that they are conditions of the welfare of its members which a well-ordered State will seek by every means to fulfil. But it is not suggested that the way of such fulfilment is plain, or that it could be achieved at a stroke by a revolutionary change in the tenure of property or the system of industry. It is, indeed, implied that the State is vested with a certain overlordship over property in general and a supervisory power over industry in general, and this principle of economic sovereignty may be set side by side with that of economic justice as a no less fundamental conception of economic Liberalism. For here, as elsewhere, liberty implies control. But the manner in which the State is to exercise its controlling power is to be learnt by experience and even in large measure by cautious experiment. We have sought to determine the principle which should guide its action, the ends at which it is to aim. The systematic study of the means lies rather within the province of economics; and the teaching of history seems to be that progress is more continuous and secure when men are content to deal with problems piecemeal than when they seek to destroy root and branch in order to erect a complete system which has captured the imagination.
It is evident that these conceptions embody many of the ideas that go to make up the framework of Socialist teaching, though they also emphasize elements of individual right and personal independence, of which Socialism at times appears oblivious. The distinction that I would claim for economic Liberalism is that it seeks to do justice to the social and individual factors in industry alike, as opposed to an abstract Socialism which emphasizes the one side and an abstract Individualism which leans its whole weight on the other. By keeping to the conception of harmony as our clue we constantly define the rights of the individual in terms of the common good, and think of the common good in terms of the welfare of all the individuals who constitute a society. Thus in economics we avoid the confusion of liberty with competition, and see no virtue in the right of a man to get the better of others. At the same time we are not led to minimize the share of personal initiative, talent, or energy in production, but are free to contend for their claim to adequate recognition. A Socialist who is convinced of the logical coherence and practical applicability of his system may dismiss such endeavours to harmonize divergent claims as a half-hearted and illogical series of compromises. It is equally possible that a Socialist who conceives Socialism as consisting in essence in the co-operative organization of industry by consumers, and is convinced that the full solution of industrial problems lies in that direction, should in proportion as he considers the psychological factors in production and investigates the means of realizing his ideal, find himself working back along the path to a point where he will meet the men who are grappling with the problems of the day on the principles here suggested, and will find himself able to move forward in practice in the front ranks of economic Liberalism. If this is so, the growing co-operation of political Liberalism and Labour, which in the last few years has replaced the antagonism of the 'nineties, is no mere accident of temporary political convenience, but has its roots deep in the necessities of Democracy.
[12] It is true that so long as it remains possible for a certain order of ability to earn £50,000 a year, the community will not obtain its services for £5,000. But if things should be so altered by taxation and economic reorganization that £5,000 became in practice the highest limit attainable, and remained attainable even for the ablest only by effort, there is no reason to doubt that that effort would be forthcoming. It is not the absolute amount of remuneration, but the increment of remuneration in proportion to the output of industrial or commercial capacity, which serves as the needed stimulus to energy.
The nineteenth century might be called the age of Liberalism, yet its close saw the fortunes of that great movement brought to their lowest ebb. Whether at home or abroad those who represented Liberal ideas had suffered crushing defeats. But this was the least considerable of the causes for anxiety. If Liberals had been defeated, something much worse seemed about to befall Liberalism. Its faith in itself was waxing cold. It seemed to have done its work. It had the air of a creed that is becoming fossilized as an extinct form, a fossil that occupied, moreover, an awkward position between two very active and energetically moving grindstones—the upper grindstone of plutocratic imperialism, and the nether grindstone of social democracy. "We know all about you," these parties seemed to say to Liberalism; "we have been right through you and come out on the other side. Respectable platitudes, you go maundering on about Cobden and Gladstone, and the liberty of the individual, and the rights of nationality, and government by the people. What you say is not precisely untrue, but it is unreal and uninteresting." So far in chorus. "It is not up to date," finished the Imperialist, and the Socialist bureaucrat. "It is not bread and butter," finished the Social democrat. Opposed in everything else, these two parties agreed in one thing. They were to divide the future between them. Unfortunately, however, for their agreement, the division was soon seen to be no equal one. Whatever might be the ultimate recuperative power of Social Democracy, for the time being, in the paralysis of Liberalism, the Imperial reaction had things all to itself. The governing classes of England were to assert themselves. They were to consolidate the Empire, incidentally passing the steam roller over two obstructive republics. They were to "teach the law" to the "sullen new-caught peoples" abroad. They were to re-establish the Church at home by the endowment of doctrinal education. At the same time they were to establish the liquor interest—which is, after all, the really potent instrument of government from above. They were to bind the colonies to us by ties of fiscal preference, and to establish the great commercial interests on the basis of protection. Their government, as conceived by the best exponents of the new doctrine, was by no means to be indifferent to the humanitarian claims of the social conscience. They were to deal out factory acts, and establish wages boards. They were to make an efficient and a disciplined people. In the idea of discipline the military element rapidly assumed a greater prominence. But on this side the evolution of opinion passed through two well-marked phases. The first was the period of optimism and expansion. The Englishman was the born ruler of the world. He might hold out a hand of friendship to the German and the American, whom he recognized as his kindred and who lived within the law. The rest of the world was peopled by dying nations whose manifest destiny was to be "administered" by the coming races, and exploited by their commercial syndicates. This mood of optimism did not survive the South African War. It received its death-blow at Colenso and Magersfontein, and within a few years fear had definitely taken the place of ambition as the mainspring of the movement to national and imperial consolidation. The Tariff Reform movement was largely inspired by a sense of insecurity in our commercial position. The half-patronizing friendship for Germany rapidly gave way, first to commercial jealousy, and then to unconcealed alarm for our national safety. All the powers of society were bent on lavish naval expenditure, and of imposing the idea of compulsory service on a reluctant people. The disciplined nation was needed no longer to dominate the world, but to maintain its own territory.
Now, we are not concerned here to follow up the devious windings of modern Conservatism. We have to note only that what modern democracy has to face is no mere inertia of tradition. It is a distinct reactionary policy with a definite and not incoherent creed of its own, an ideal which in its best expression—for example, in the daily comments of the Morning Post—is certain to exercise a powerful attraction on many generous minds—the ideal of the efficient, disciplined nation, centre and dominating force of a powerful, self-contained, militant empire. What concerns us more particularly is the reaction of Conservative development upon the fortunes of democracy. But to understand this reaction, and, indeed, to make any sound estimate of the present position and prospects of Liberalism, we must cast a rapid glance over the movement of progressive thought during the last generation. When Gladstone formed his second Government in 1880 the old party system stood secure in Great Britain. It was only a band of politicians from the other side of St. George's Channel who disowned both the great allegiances. For the British political mind the plain distinction of Liberal and Conservative held the field, and the division was not yet a class distinction. The great Whig families held their place, and they of the aristocratic houses divided the spoil. But a new leaven was at work. The prosperity which had culminated in 1872 was passing away. Industrial progress slowed down; and, though the advance from the "Hungry 'Forties" had been immense, men began to see the limit of what they could reasonably expect from retrenchment and Free Trade. The work of Mr. Henry George awakened new interest in problems of poverty, and the idealism of William Morris gave new inspiration to Socialist propaganda. Meanwhile, the teaching of Green and the enthusiasm of Toynbee were setting Liberalism free from the shackles of an individualist conception of liberty and paving the way for the legislation of our own time. Lastly, the Fabian Society brought Socialism down from heaven and established a contact with practical politics and municipal government. Had Great Britain been an island in the mid-Pacific the onward movement would have been rapid and undeviating in its course. As it was, the new ideas were reflected in the parliament and the cabinet of 1880-1885, and the Radicalism of Birmingham barely kept on terms with the Whiggery of the clubs. A redistribution of social forces which would amalgamate the interests of "property" on the one side and those of democracy on the other was imminent, and on social questions democracy reinforced by the enfranchisement of the rural labourers in 1884 stood to win. At this stage the Irish question came to a head. Mr. Gladstone declared for Home Rule, and the party fissure took place on false lines. The upper and middle classes in the main went over to Unionism, but they took with them a section of the Radicals, while Mr. Gladstone's personal force retained on the Liberal side a number of men whose insight into the needs of democracy was by no means profound. The political fight was for the moment shifted from the social question to the single absorbing issue of Home Rule, and the new Unionist party enjoyed twenty years of almost unbroken supremacy. Again, had the Home Rule issue stood alone it might have been settled in 1892, but meanwhile in the later 'eighties the social question had become insistent. Socialism, ceasing to be a merely academic force, had begun to influence organized labour, and had inspired the more generous minds among the artisans with the determination to grapple with the problem of the unskilled workmen. From the Dockers' strike of 1889 the New Unionism became a fighting force in public affairs, and the idea of a Labour party began to take shape. On the new problems Liberalism, weakened as it already had been, was further divided, and its failure in 1892 is to be ascribed far more to this larger cause than to the dramatic personal incident of the Parnell divorce. In office without legislative power from 1892 to 1895, the Liberal party only experienced further loss of credit, and the rise of Imperialism swept the whole current of public interest in a new direction. The Labour movement itself was paralyzed, and the defeat of the Engineers in 1897 put an end to the hope of achieving a great social transformation by the method of the strike. But, in the meanwhile, opinion was being silently transformed. The labours of Mr. Charles Booth and his associates had at length stated the problem of poverty in scientific terms. Social and economic history was gradually taking shape as a virtually new branch of knowledge. The work of Mr. and Mrs. Sidney Webb helped to clear up the relations between the organized efforts of workmen and the functions of the State. The discerning observer could trace the "organic filaments" of a fuller and more concrete social theory.
On the other hand, in the Liberal ranks many of the most influential men had passed, without consciousness of the transition, under the sway of quite opposite influences. They were becoming Imperialists in their sleep, and it was only as the implications of Imperialism became evident that they were awakened. It was with the outbreak of the South African War that the new development of Conservative policy first compelled the average Liberal to consider his position. It needed the shock of an outspoken violation of right to stir him; and we may date the revival of the idea of justice in the party as an organized force from the speech in the summer of 1901 in which Sir Henry Campbell-Bannerman set himself against the stream of militant sentiment and challenged in a classic phrase the methods of the war. From the day of this speech, which was supposed at the time to have irretrievably ruined his political career, the name of the party-leader, hitherto greeted with indifference, became a recognized signal for the cheers of a political meeting, and a man with no marked genius but that of character and the insight which character gave into the minds of his followers acquired in his party the position of a Gladstone. This was the first and fundamental victory, the reinstatement of the idea of Right in the mind of Liberalism. Then, as the Conservative attack developed and its implications became apparent, one interest after another of the older Liberalism was rudely shaken into life. The Education Act of 1902 brought the Nonconformists into action. The Tariff Reform movement put Free Trade on its defence, and taught men to realize what the older economics of Liberalism had done for them. The Socialists of practical politics, the Labour Party, found that they could by no means dispense with the discipline of Cobden. Free Trade finance was to be the basis of social reform. Liberalism and Labour learned to co-operate in resisting delusive promises of remedies for unemployment and in maintaining the right of free international exchange. Meanwhile, Labour itself had experienced the full brunt of the attack. It had come not from the politicians but from the judges, but in this country we have to realize that within wide limits the judges are in effect legislators, and legislators with a certain persistent bent which can be held in check only by the constant vigilance and repeated efforts of the recognized organ for the making and repeal of law. In destroying the old position of the Trade Unions, the judges created the modern Labour party and cemented its alliance with Liberalism. Meanwhile, the aftermath of Imperialism in South Africa was reaped, and Conservative disillusionment unlocked the floodgates for the advancing tide of the Liberal revival.
The tide has by no means spent itself. If it no longer rushes in an electoral torrent as in 1906 it flows in a steady stream towards social amelioration and democratic government. In this movement it is now sufficiently clear to all parties that the distinctive ideas of Liberalism have a permanent function. The Socialist recognizes with perfect clearness, for example, that popular government is not a meaningless shibboleth, but a reality that has to be maintained and extended by fighting. He is well aware that he must deal with the House of Lords and the Plural vote if he is to gain his own ends. He can no longer regard these questions as difficulties interposed by half-hearted Liberals to distract attention from the Social problem. He is aware that the problem of Home Rule and of devolution generally is an integral part of the organization of democracy. And, as a rule, he not merely acquiesces in the demand of women for a purely political right, but only quarrels with the Liberal party for its tardiness in meeting the demand. The old Liberal idea of peace and retrenchment again is recognized by the Socialistic, and indeed by the whole body of social reformers, as equally essential for the successful prosecution of their aims. Popular budgets will bring no relief to human suffering if the revenues that they secure are all to go upon the most expensive ship that is the fashion of the moment, nor can the popular mind devote itself to the improvement of domestic conditions while it is distracted either by ambitions or by scares. On the other side, the Liberal who starts from the Gladstonian tradition has in large measure realized that if he is to maintain the essence of his old ideas it must be through a process of adaptation and growth. He has learnt that while Free Trade laid the foundations of prosperity it did not erect the building. He has to acknowledge that it has not solved the problems of unemployment, of underpayment, of overcrowding. He has to look deeper into the meaning of liberty and to take account of the bearing of actual conditions on the meaning of equality. As an apostle of peace and an opponent of swollen armaments, he has come to recognize that the expenditure of the social surplus upon the instruments of progress is the real alternative to its expenditure on the instruments of war. As a Temperance man he is coming to rely more on the indirect effect of social improvement on the one hand and the elimination of monopolist profit on the other, than on the uncertain chances of absolute prohibition.
There are, then, among the composite forces which maintained the Liberal Government in power through the crisis of 1910, the elements of such an organic view as may inspire and direct a genuine social progress. Liberalism has passed through its Slough of Despond, and in the give and take of ideas with Socialism has learnt, and taught, more than one lesson. The result is a broader and deeper movement in which the cooler and clearer minds recognize below the differences of party names and in spite of certain real cross-currents a genuine unity of purpose. What are the prospects of this movement? Will it be maintained? Is it the steady stream to which we have compared it, or a wave which must gradually sink into the trough?
To put this question is to ask in effect whether democracy is in substance as well as in form a possible mode of government. To answer this question we must ask what democracy really means, and why it is the necessary basis of the Liberal idea. The question has already been raised incidentally, and we have seen reason to dismiss both the individualist and the Benthamite argument for popular government as unsatisfactory. We even admitted a doubt whether some of the concrete essentials of liberty and social justice might not, under certain conditions, be less fully realized under a widely-extended suffrage than under the rule of a superior class or a well-ordered despotism. On what, then, it may be asked, do we found our conception of democracy? Is it on general principles of social philosophy, or on the special conditions of our own country or of contemporary civilization? And how does our conception relate itself to our other ideas of the social order? Do we assume that the democracy will in the main accept these ideas, or if it rejects them are we willing to acquiesce in its decision as final? And in the end what do we expect? Will democracy assert itself, will it find a common purpose and give it concrete shape? Or will it blunder on, the passive subject of scares and ambitions, frenzies of enthusiasm and dejection, clay in the hands of those whose profession it is to model it to their will.
First as to the general principle. Democracy is not founded merely on the right or the private interest of the individual. This is only one side of the shield. It is founded equally on the function of the individual as a member of the community. It founds the common good upon the common will, in forming which it bids every grown-up, intelligent person to take a part. No doubt many good things may be achieved for a people without responsive effort on its own part. It may be endowed with a good police, with an equitable system of private law, with education, with personal freedom, with a well-organized industry. It may receive these blessings at the hands of a foreign ruler, or from an enlightened bureaucracy or a benevolent monarch. However obtained, they are all very good things. But the democratic theory is that, so obtained, they lack a vitalizing element. A people so governed resembles an individual who has received all the external gifts of fortune, good teachers, healthy surroundings, a fair breeze to fill his sails, but owes his prosperous voyage to little or no effort of his own. We do not rate such a man so high as one who struggles through adversity to a much less eminent position. What we possess has its intrinsic value, but how we came to possess it is also an important question. It is so with a society. Good government is much, but the good will is more, and even the imperfect, halting, confused utterance of the common will may have in it the potency of higher things than a perfection of machinery can ever attain.
But this principle makes one very large assumption. It postulates the existence of a common will. It assumes that the individuals whom it would enfranchise can enter into the common life and contribute to the formation of a common decision by a genuine interest in public transactions. Where and in so far as this assumption definitely fails, there is no case for democracy. Progress, in such a case, is not wholly impossible, but it must depend on the number of those who do care for the things that are of social value, who advance knowledge or "civilize life through the discoveries of art," or form a narrow but effective public opinion in support of liberty and order. We may go further. Whatever the form of government progress always does in fact depend on those who so think and live, and on the degree in which these common interests envelop their life and thought. Now, complete and wholehearted absorption in public interests is rare. It is the property not of the mass but of the few, and the democrat is well aware that it is the remnant which saves the people. He subjoins only that if their effort is really to succeed the people must be willing to be saved. The masses who spend their toilsome days in mine or factory struggling for bread have not their heads for ever filled with the complex details of international policy or industrial law. To expect this would be absurd. What is not exaggerated is to expect them to respond and assent to the things that make for the moral and material welfare of the country, and the position of the democrat is that the "remnant" is better occupied in convincing the people and carrying their minds and wills with it than in imposing on them laws which they are concerned only to obey and enjoy. At the same time, the remnant, be it never so select, has always much to learn. Some men are much better and wiser than others, but experience seems to show that hardly any man is so much better or wiser than others that he can permanently stand the test of irresponsible power over them. On the contrary, the best and wisest is he who is ready to go to the humblest in a spirit of inquiry, to find out what he wants and why he wants it before seeking to legislate for him. Admitting the utmost that can be said for the necessity of leadership, we must at the same time grant that the perfection of leadership itself lies in securing the willing, convinced, open-eyed support of the mass.
Thus individuals will contribute to the social will in very varying degrees, but the democratic thesis is that the formation of such a will, that is, in effect, the extension of intelligent interest in all manner of public things, is in itself a good, and more than that, it is a condition qualifying other good things. Now the extension of interest is not to be created by democratic forms of government, and if it neither exists nor can be brought into existence, democracy remains an empty form and may even be worse than useless. On the other hand, where the capacity exists the establishment of responsible government is the first condition of its development. Even so it is not the sole condition. The modern State is a vast and complex organism. The individual voter feels himself lost among the millions. He is imperfectly acquainted with the devious issues and large problems of the day, and is sensible how little his solitary vote can affect their decision. What he needs to give him support and direction is organization with his neighbours and fellow workers. He can understand, for example, the affairs of his trade union, or, again, of his chapel. They are near to him. They affect him, and he feels that he can affect them. Through these interests, again, he comes into touch with wider questions—with a Factory Bill or an Education Bill—and in dealing with these questions he will now act as one of an organized body, whose combined voting strength will be no negligible quantity. Responsibility comes home to him, and to bring home responsibility is the problem of all government. The development of social interest—and that is democracy—depends not only on adult suffrage and the supremacy of the elected legislature, but on all the intermediate organizations which link the individual to the whole. This is one among the reasons why devolution and the revival of local government, at present crushed in this country by a centralized bureaucracy, are of the essence of democratic progress.
The success of democracy depends on the response of the voters to the opportunities given them. But, conversely, the opportunities must be given in order to call forth the response. The exercise of popular government is itself an education. In considering whether any class or sex or race should be brought into the circle of enfranchisement, the determining consideration is the response which that class or sex or race would be likely to make to the trust. Would it enter effectively into the questions of public life, or would it be so much passive voting material, wax in the hands of the less scrupulous politicians? The question is a fair one, but people are too ready to answer it in the less favourable sense on the ground of the actual indifference or ignorance which they find or think they find among the unenfranchised. They forget that in that regard enfranchisement itself may be precisely the stimulus needed to awaken interest, and while they are impressed with the danger of admitting ignorant and irresponsible, and perhaps corruptible voters to a voice in the government, they are apt to overlook the counterbalancing danger of leaving a section of the community outside the circle of civic responsibility. The actual work of government must affect, and also it must be affected by, its relation to all who live within the realm. To secure good adaptation it ought, I will not say to reflect, but at least to take account of, the dispositions and circumstances of every class in the population. If any one class is dumb, the result is that Government is to that extent uninformed. It is not merely that the interests of that class may suffer, but that, even with the best will, mistakes may be made in handling it, because it cannot speak for itself. Officious spokesmen will pretend to represent its views, and will obtain, perhaps, undue authority merely because there is no way of bringing them to book. So among ourselves does the press constantly represent public opinion to be one thing while the cold arithmetic of the polls conclusively declares it to be another. The ballot alone effectively liberates the quiet citizen from the tyranny of the shouter and the wire-puller.
I conclude that an impression of existing inertness or ignorance is not a sufficient reason for withholding responsible government or restricting the area of the suffrage. There must be a well-grounded view that political incapacity is so deep-rooted that the extension of political rights would tend only to facilitate undue influence by the less scrupulous sections of the more capable part of the people. Thus where we have an oligarchy of white planters in the midst of a coloured population, it is always open to doubt whether a general colour-franchise will be a sound method of securing even-handed justice. The economic and social conditions may be such that the "coloured" man would just have to vote as his master told him, and if the elementary rights are to be secured for all it may be that a semi-despotic system like that of some of our Crown colonies is the best that can be devised. On the other side, that which is most apt to frighten a governing class or race, a clamour on the part of an unenfranchised people for political rights, is to the democrat precisely the strongest reason that he can have in the absence of direct experience for believing them fit for the exercise of civic responsibility. He welcomes signs of dissatisfaction among the disfranchised as the best proof of awakening interest in public affairs, and he has none of those fears of ultimate social disruption which are a nightmare to bureaucracies because experience has sufficiently proved to him the healing power of freedom, of responsibility, and of the sense of justice. Moreover, a democrat cannot be a democrat for his own country alone. He cannot but recognize the complex and subtle interactions of nation upon nation which make every local success or failure of democracy tell upon other countries. Nothing has been more encouraging to the Liberalism of Western Europe in recent years than the signs of political awakening in the East. Until yesterday it seemed as though it would in the end be impossible to resist the ultimate "destiny" of the white races to be masters of the rest of the world. The result would have been that, however far democracy might develop within any Western State, it would always be confronted with a contrary principle in the relation of that State to dependencies, and this contradiction, as may easily be seen by the attentive student of our own political constitutions, is a standing menace to domestic freedom. The awakening of the Orient, from Constantinople to Pekin, is the greatest and most hopeful political fact of our time, and it is with the deepest shame that English Liberals have been compelled to look on while our Foreign Office has made itself the accomplice in the attempt to nip Persian freedom in the bud, and that in the interest of the most ruthless tyranny that has ever crushed the liberties of a white people.
The cause of democracy is bound up with that of internationalism. The relation is many-sided. It is national pride, resentment, or ambition one day that sweeps the public mind and diverts it from all interest in domestic progress. The next day the same function is performed no less adequately by a scare. The practice of playing on popular emotions has been reduced to a fine art which neither of the great parties is ashamed to employ. Military ideals possess the mind, and military expenditure eats up the public resources. On the other side, the political economic and social progress of other nations reacts on our own. The backwardness of our commercial rivals in industrial legislation was long made an argument against further advances among ourselves. Conversely, when they go beyond us, as now they often do, we can learn from them. Physically the world is rapidly becoming one, and its unity must ultimately be reflected in political institutions. The old doctrine of absolute sovereignty is dead. The greater States of the day exhibit a complex system of government within government, authority limited by authority, and the world-state of the not impossible future must be based on a free national self-direction as full and satisfying as that enjoyed by Canada or Australia within the British Empire at this moment. National emulation will express itself less in the desire to extend territory or to count up ships and guns, and more in the endeavour to magnify the contribution of our own country to civilized life. Just as in the rebirth of our municipal life we find a civic patriotism which takes interest in the local university, which feels pride in the magnitude of the local industry, which parades the lowest death rate in the country, which is honestly ashamed of a bad record for crime or pauperism, so as Englishmen we shall concern ourselves less with the question whether two of our Dreadnoughts might not be pitted against one German, and more with the question whether we cannot equal Germany in the development of science, of education, and of industrial technique. Perhaps even, recovering from our present artificially induced and radically insincere mood of national self-abasement, we shall learn to take some pride in our own characteristic contributions as a nation to the arts of government, to the thought, the literature, the art, the mechanical inventions which have made and are re-making modern civilization.
Standing by national autonomy and international equality, Liberalism is necessarily in conflict with the Imperial idea as it is ordinarily presented. But this is not to say that it is indifferent to the interests of the Empire as a whole, to the sentiment of unity pervading its white population, to all the possibilities involved in the bare fact that a fourth part of the human race recognizes one flag and one supreme authority. In relation to the self-governing colonies the Liberal of today has to face a change in the situation since Cobden's time not unlike that which we have traced in other departments. The Colonial Empire as it stands is in substance the creation of the older Liberalism. It is founded on self-government, and self-government is the root from which the existing sentiment of unity has sprung. The problem of our time is to devise means for the more concrete and living expression of this sentiment without impairing the rights of self-government on which it depends. Hitherto the "Imperialist" has had matters all his own way and has cleverly exploited Colonial opinion, or an appearance of Colonial opinion, in favour of class ascendancy and reactionary legislation in the mother country. But the colonies include the most democratic communities in the world. Their natural sympathies are not with the Conservatives, but with the most Progressive parties in the United Kingdom. They favour Home Rule, they set the pace in social legislation. There exist accordingly the political conditions of a democratic alliance which it is the business of the British Liberal to turn to account. He may hope to make his country the centre of a group of self-governing, democratic communities, one of which, moreover, serves as a natural link with the other great commonwealth of English-speaking people. The constitutional mechanism of the new unity begins to take shape in the Imperial Council, and its work begins to define itself as the adjustment of interests as between different portions of the Empire and the organization of common defence. Such a union is no menace to the world's peace or to the cause of freedom. On the contrary, as a natural outgrowth of a common sentiment, it is one of the steps towards a wider unity which involves no backstroke against the ideal of self-government. It is a model, and that on no mean scale, of the International State.
Internationalism on the one side, national self-government on the other, are the radical conditions of the growth of a social mind which is the essence, as opposed to the form, of democracy. But as to form itself a word must, in conclusion, be said. If the forms are unsuitable the will cannot express itself, and if it fails of adequate expression it is in the end thwarted, repressed and paralyzed. In the matter of form the inherent difficulty of democratic government, whether direct or representative, is that it is government by majority, not government by universal consent. Its decisions are those of the larger part of the people, not of the whole. This defect is an unavoidable consequence of the necessities of decision and the impossibility of securing universal agreement. Statesmen have sought to remedy it by applying something of the nature of a brake upon the process of change. They have felt that to justify a new departure of any magnitude there must be something more than a bare majority. There must either be a large majority, two-thirds or three-fourths of the electorate, or there must be some friction to be overcome which will serve to test the depth and force as well as the numerical extent of the feeling behind the new proposal. In the United Kingdom we have one official brake, the House of Lords, and several unofficial ones, the civil service, the permanent determined opposition of the Bench to democratic measures, the Press, and all that we call Society. All these brakes act in one way only. There is no brake upon reaction—a lack which becomes more serious in proportion as the Conservative party acquires a definite and constructive policy of its own. In this situation the Liberal party set itself to deal with the official brake by the simple method of reducing its effective strength, but, to be honest, without having made up its mind as to the nature of the brake which it would like to substitute. On this question a few general remarks would seem to be in place. The function of a check on the House of Commons is to secure reconsideration. Conservative leaders are in the right when they point to the accidental elements that go to the constitution of parliamentary majorities. The programme of any general election is always composite, and a man finds himself compelled, for example, to choose between a Tariff Reformer whose views on education he approves, and a Free Trader whose educational policy he detests. In part this defect might be remedied by the Proportional system to which, whether against the grain or not, Liberals will find themselves driven the more they insist on the genuinely representative character of the House of Commons. But even a Proportional system would not wholly clear the issues before the electorate. The average man gives his vote on the question which he takes to be most important in itself, and which he supposes to be most likely to come up for immediate settlement. But he is always liable to find his expectations defeated, and a Parliament which is in reality elected on one issue may proceed to deal with quite another. The remedy proposed by the Parliament Bill was a two years' delay, which, it was held, would secure full discussion and considerable opportunity for the manifestation of opinion should it be adverse. This proposal had been put to the constituencies twice over, and had been ratified by them if any legislative proposal ever was ratified. It should enable the House of Commons, as the representatives of the people, to decide freely on the permanent constitution of the country. The Bill itself, however, does not lay down the lines of a permanent settlement. For, to begin with, in leaving the constitution of the House of Lords unaltered it provides a one-sided check, operating only on democratic measures which in any case have to run the gauntlet of the permanent officials, the judges, the Press, and Society. For permanent use the brake must be two-sided. Secondly, it is to be feared that the principle of delay would be an insufficient check upon a large and headstrong majority. What is really needed is that the people should have the opportunity of considering a proposal afresh. This could be secured in either of two ways: (1) by allowing the suspensory veto of the Second Chamber to hold a measure over to a new Parliament; (2) by allowing the House of Commons to submit a bill in the form in which it finally leaves the House to a direct popular vote. It is to my mind regrettable that so many Liberals should have closed the door on the Referendum. It is true that there are many measures to which it would be ill suited. For example, measures affecting a particular class or a particular locality would be apt to go by the board. They might command a large and enthusiastic majority among those primarily affected by them, but only receive a languid assent elsewhere, and they might be defeated by a majority beaten up for extraneous purposes among those without first-hand knowledge of the problems with which they are intended to deal. Again, if a referendum were to work at all it would only be in relation to measures of the first class, and only, if the public convenience is to be consulted, on very rare occasions. In all ordinary cases of insuperable difference between the Houses, the government of the day would accept the postponement of the measure till the new Parliament. But there are measures of urgency, measures of fundamental import, above all, measures which cut across the ordinary lines of party, and with which, in consequence, our system is impotent to deal, and on these the direct consultation of the people would be the most suitable method of solution.[13]
What we need, then, is an impartial second chamber distinctly subordinate to the House of Commons, incapable of touching finance and therefore of overthrowing a ministry, but able to secure the submission of a measure either to the direct vote of the people or to the verdict of a second election—the government of the day having the choice between the alternatives. Such a chamber might be instituted by direct popular election. But the multiplication of elections is not good for the working of democracy, and it would be difficult to reconcile a directly elected house to a subordinate position. It might, therefore, as an alternative, be elected on a proportional system by the House of Commons itself, its members retaining their seat for two Parliaments. To bridge over the change half of the chamber for the present Parliament might be elected by the existing House of Lords, and their representatives retiring at the end of this Parliament would leave the next House of Commons and every future House of Commons with one-half of the chamber to elect. This Second Chamber would then reflect in equal proportions the existing and the last House of Commons, and the balance between parties should be fairly held.[14] This chamber would have ample power of securing reasonable amendments and would also have good ground for exercising moderation in pressing its views. If the public were behind the measure it would know that in the end the House of Commons could carry it in its teeth, whether by referendum or by a renewed vote of confidence at a general election. The Commons, on their side, would have reasons for exhibiting a conciliatory temper. They would not wish to be forced either to postpone or to appeal. As to which method they would choose they would have absolute discretion, and if they went to the country with a series of popular measures hung up and awaiting their return for ratification, they would justly feel themselves in a strong position.
So far as to forms. The actual future of democracy, however, rests upon deeper issues. It is bound up with the general advance of civilization. The organic character of society is, we have seen, in one sense, an ideal. In another sense it is an actuality. That is to say, nothing of any import affects the social life on one side without setting up reactions all through the tissue. Hence, for example, we cannot maintain great political progress without some corresponding advance on other sides. People are not fully free in their political capacity when they are subject industrially to conditions which take the life and heart out of them. A nation as a whole cannot be in the full sense free while it fears another or gives cause of fear to another. The social problem must be viewed as a whole. We touch here the greatest weakness in modern reform movements. The spirit of specialism has invaded political and social activity, and in greater and greater degree men consecrate their whole energy to a particular cause to the almost cynical disregard of all other considerations. "Not such the help, nor these the defenders" which this moment of the world's progress needs. Rather we want to learn our supreme lesson from the school of Cobden. For them the political problem was one, manifold in its ramifications but undivided in its essence. It was a problem of realizing liberty. We have seen reason to think that their conception of liberty was too thin, and that to appreciate its concrete content we must understand it as resting upon mutual restraint and value it as a basis of mutual aid. For us, therefore, harmony serves better as a unifying conception. It remains for us to carry it through with the same logical cogency, the same practical resourcefulness, the same driving force that inspired the earlier Radicals, that gave fire to Cobden's statistics, and lent compelling power to the eloquence of Bright. We need less of the fanatics of sectarianism and more of the unifying mind. Our reformers must learn to rely less on the advertising value of immediate success and more on the deeper but less striking changes of practice or of feeling, to think less of catching votes and more of convincing opinion. We need a fuller co-operation among those of genuine democratic feeling and more agreement as to the order of reform. At present progress is blocked by the very competition of many causes for the first place in the advance. Here, again, devolution will help us, but what would help still more would be a clearer sense of the necessity of co-operation between all who profess and call themselves democrats, based on a fuller appreciation of the breadth and the depth of their own meaning. The advice seems cold to the fiery spirits, but they may come to learn that the vision of justice in the wholeness of her beauty kindles a passion that may not flare up into moments of dramatic scintillation, but burns with the enduring glow of the central heat.
[13] I need hardly add that financial measures are entirely unsuited to a referendum. Financial and executive control go together, and to take either of them out of the hands of the majority in the House of Commons is not to reform our system but to destroy it root and branch. The same is not true of legislative control. There are cases in which a government might fairly submit a legislative measure to the people without electing to stand or fall by it.
[14] Probably the best alternative to these proposals is that of a small directly elected Second Chamber, with a provision for a joint session in case of insuperable disagreement, but with no provision for delay. This proposal has the advantage, apparently, of commanding a measure of Conservative support.
Locke.—Second Treatise on Civil Government (1689).
Paine.—The Rights of Man (1792).
Bentham.—Principles of Morals and Legislation (1789!).
J. S. Mill.—Principles of Political Economy (Books IV and V).
On Liberty.
Representative Government.
The Subjection of Women.
Autobiography.
Cobden.—Political Writings.
Bright.—Speeches.
Mazzini.—The Duties of Man.
Thoughts on Democracy in Europe.
Jevons.—The State in Relation to Labour.
T. H. Green.—Principles of Political Obligation.
Liberal Legislation and Freedom of Contract (Works, vol. iii).
Morley.—Life of Cobden.
Life of Gladstone.
F. W. Hirst.—The Manchester School.
G. Lowes Dickinson.—Liberty and Justice.
Prof. H. Jones.—The Working Faith of the Social Reformer.
Prof. McCunn.—Six Radical Thinkers.
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