Socialism: An Economic and Sociological Analysis
* The Library of Economics and Liberty electronic edition is taken from that translated by J. Kahane, published by Liberty Fund, 1981; © 1981 by Bettina Bien Greaves. Footnote references in the text are color coded according to authorship as follows:
1. Ludwig von Mises, Theorie des Geldes und der Umlaufsmittel (Munich and Leipzig: Duncker & Humblot, 1912). Publisher's Note: This has been translated into English as The Theory of Money and Credit (Indianapolis: LibertyClassics, 1981).
12. "Die Wirtschaftsrechnung im sozialistischen Gemeinwesen." This article was translated under the title "Economic Calculation in the Socialist Commonwealth" from the German by S. Adler and into English. It is included in the anthology edited by F. A. Hayek, Collectivist Economic Planning (London: Routledge and Kegan, 1935), on pp. 87-130. This collection was reprinted in 1967 by Augustus M. Kelley Publishers of New Jersey (Pub.).
15. The Eisenach Congress of German Economists was called by Gustav Schmoller and some of his German Historical School colleagues. This Congress led to the founding of the Verein für Sozialpolitik (Society for Social Policy), which advocated government intervention in economic affairs. "Socialists of the chair" who were members of this organization had considerable influence on German policy (Pub.).
17. "It may now fairly be claimed that the socialist philosophy of today is but the conscious and explicit assertion of principles of social organization which have been already in great part unconsciously adopted. The economic history of the century is an almost continuous record of the progress of Socialism." (Sidney Webb, Fabian Essays , p. 30.)
18. Foerster points out particularly that the labour movement has attained its real triumph "in the hearts of the possessing classes"; through this "the moral force for resistance has been taken away from these classes." (Foerster, Christentum und Klassenkampf [Zurich, 1908], p. 111 ff.) In 1869 Prince-Smith had noted the fact that the socialist ideas had found supporters among employers. He mentions that amongst business men, "however strange this may sound, there are some who understand their own activity in the national economy with so little clarity that they hold the socialist ideas as more or less founded, and, consequently, have a bad conscience really, as if they had to admit to themselves that their profits were actually made at the cost of their workmen. This makes them timid and even more muddled. It is very bad. For our economic civilization would be seriously threatened if its bearers could not draw, from the feeling of complete justification, the courage to defend its foundations with the utmost resolution." (Prince-Smith's Gesammelte Schriften [Berlin, 1877], vol. 1, p. 362.) Prince-Smith, however, would not have known how to discuss the socialist theories critically.
19. The term "liberalism" is used by Mises "in the sense attached to it everywhere in the nineteenth century and still today in the countries of continental Europe. This usage is imperative because there is simply no other term available to signify the great political and intellectual movement that substituted free enterprise and the market economy for the precapitalistic methods of production; constitutional representative government for the absolutism of kings or oligarchies; and freedom of all individuals for slavery, serfdom, and other forms of bondage." Mises, Human Action: A Treatise on Economics, 3rd ed. (Chicago: Regnery, 1966), p. v. (Pub.).
21. "Science exists only in the heads of the scientists, and they are products of society. They cannot get out of it and beyond it" (Kautsky, Die soziale Revolution, 3rd ed. [Berlin, 1911], vol. 2, p. 39). Publisher's Note: In English, see The Social Revolution, trans. J. B. Askew (London, 1907).
22. Dietzgen, "Briefe über Logik, speziell demokratisch-proletarische Logik," Internationale Bibliothek, 2d ed. (Stuttgart, 1903), vol. 22, p. 112: "Finally logic deserves the epithet 'proletarian' also for the reason that to understand it one must have overcome all the prejudices which hold the bourgeoisie."
24. It is a fine irony of history that even Marx suffered this fate. Untermann finds that "even the mental life of typical proletarian thinkers of the Marxist school" contains "remains of past epochs of thought, if only in rudimentary form. These rudiments will appear all the stronger the more the thought stages lived through before the thinker became Marxist were passed in a bourgeois or feudal milieu. This was notoriously so with Marx, Engels, Plekhanov, Kautsky, Mehring, and other prominent Marxists" (Untermann, Die logischen Mängel des engeren Marxismus [Munich, 1910], p. 125). And De Man believes that to understand "the individuality and variety of the theories" one would have to consider, besides the thinker's general social background, also his own economic and social life—a "bourgeois" life ... "in the case of the college-trained Marx" (De Man, Zur Psychologie des Sozialismus, new ed. [Jena, 1927], p. 17).
26. Cohen, Einleitung mit kritischem Nachtrag zur neunten Auflage der Geschichte des Materialismus von Friedrich Albert Lange, 3rd extended ed. (Leipzig, 1914), P. 115. Also Natorp, Sozialpädagogik, 4th ed. (Leipzig, 1920), p. 201.
28. Throughout the 1920s, Mises continued to refer to the science of human action as "sociology." However, he later came to prefer the term "praxeology," derived from the Greek praxis, meaning action, habit or practice. In his "Foreword" to Epistemological Problems of Economics (Princeton: Van Nostrand, 1960; New York: NYU Press, 1981), he commented on his use of the term "sociology" in a 1929 essay included in that volume: "... in 1929, I still believed that it was unnecessary to introduce a new term to signify the general theoretical science of human action as distinguished from the historical studies dealing with human action performed in the past. I thought that it would be possible to employ for this purpose the term sociology, which in the opinion of some authors was designed to signify such a general theoretical science. Only later did I realize that this was not expedient and adopted the term praxeology." (Pub.)
29. Muckle, Das Kulturideal des Sozialismus (Munich, 1918) even expects of socialism that it will bring about both "the highest rationalization of economic life" and "redemption from the most terrible of all barbarisms: capitalist rationalism."
Part I, Chapter 1
1. Böhm-Bawerk, Rechte und Verhältnisse vom Standpunkte der volkswirtschaftlichen Güterlehre (Innsbruck, 1881), p. 37. Publisher's Note: This has been translated into English by George D. Huncke as "Whether Legal Rights and Relationships Are Economic Goods," in Shorter Classics of Böhm-Bawerk (South Holland, Ill.: Libertarian Press, 1962), vol. 1, pp. 25-138. Passage cited here is on page 58 of this edition.
Si proprium est quod quis libra mercatus et aere est,(If that which one buys with formal purchase is one's own,
The attention of economists was first drawn to this passage by Effertz (Arbeit und Boden, new ed. [Berlin, 1897], vol. 1, pp. 72, 79).
4. Etatistic social philosophy, which carries all these institutions back to the "state," returns to the old theological explanation. In it the state assumes the position which the theologians assign to God.
9. Liberalism tried to extend the protection of acquired rights by developing the subjective public rights and extending legal protection through the law courts. Etatism and socialism, on the contrary, try to restrict increasingly the sphere of private law in favor of public law.
11. A fine poetic mockery of the romantic longing, "Where thou art not, there is happiness," is to be found in the experience of Counselor Knap in Andersen's "The Galoshes of Fortune." Publisher's Note: (New York: Doubleday, 1974).
17. Trier Gehöferschaften (German) were rural hereditary associations dating from the Middle Ages, set up to cultivate the lands lying outside the manorial freeholds and maintained until recently in the vicinity of Trier in southwestern Germany (Pub.).
Part I, Chapter 2
20. The term "Communism" signifies just the same as "Socialism." The use of these two words has repeatedly changed during the past decades, but always the question that separated socialists from communists was only political tactics. Both aim to socialize the means of production.
21. Anton Menger, Das Recht auf den vollen Arbeitsertrag in geschichtlicher Darstellung, 4th ed. (Stuttgart and Berlin, 1910), p. 6. Publisher's Note: For an English translation, see Right to the Whole Produce of Labor, with an introduction by Foxwell, 1899.
24. Marx, Zur Kritik des sozialdemokratischen Parteiprogramms von Gotha, ed. Kreibich (Reichenberg, 1920), p. 17. Publisher's Note: For an English translation of this passage, see Critique of the Gotha Programme (New York: International Publishers, 1938), p. 10, or pp. 2-7 of Marx, Capital, the Communist Manifesto and Other Writings, ed. and introd. Max Eastman (New York: Random House, Modern Library, 1932). The passage referred to here concludes: "From each according to his abilities, to each according to needs!"
26. Ibid., pp. 10 ff. Also Singer-Sieghart, Das Recht auf Arbeit in geschichtlicher Darstellung (Jena, 1895), pp. 1 ff.; Mutasoff, Zur Geschichte des Rechts auf Arbeit mit besonderer Rücksicht auf Charles Fourier (Berne, 1897), pp. 4 ff.
27. My works: Kritik des Interventionismus (Jena, 1929), pp. 22 ff.; Die Ursachen der Wirtschaftskrise (Tübingen, 1931), pp. 15 ff. Publisher's Note: These references are now available in English. See A Critique of Interventionism, trans. Hans F. Sennholz (New Rochelle, N.Y.: Arlington House, 1977), pp. 26 ff.; "The Causes of the Economic Crisis," in On the Manipulation of Money and Credit, trans. Bettina Bien Greaves and ed. Percy L. Greaves, Jr. (Dobbs Ferry, N.Y.: Free Market Books, 1978), pp. 186 ff.
29. Thus Dietzel ("Individualismus," Handwörterbuch der Staatswissenschaften, 3rd ed., vol. 5, p. 590) formulates the contrast of the individual principle and the social principle. Similarly Spengler, Preussentum und Sozialismus (Munich, 1920), p. 14.
30. Nietzsche, "Also Sprach Zarathustra," vol. 6, Werke (Krönersche Klassikerausgabe), p. 69. Publisher's Note: In English, see Thus Spake Zarathustra, pp. 103-439 in The Portable Nietzsche, ed. Walter Kaufman (New York: Viking Press, 1954). Reference here is to No. 11, "On the New Idol."
31. "L'État étant conçu comme un être ideal, on le pare de toutes les qualités que l'on rêve et on le dépouille de toutes les faiblesses que l'on hait" ("The state, being conceived as an ideal being, is endowed with all the qualities of our dreams and stripped of all those qualities we hate") (P. Leroy-Beaulieu, L'État moderne et ses fonctions, 3rd ed. [Paris, 1900], p. 11); also, Bamberger, Deutschland und der Sozialismus [Leipzig, 1878], pp. 86 ff.
32. Kant, Idee zu einer allgemeinen Geschichte in weltbürgerlicher Absicht, vol. 1, Sämtliche Werke, Inselausgabe (Leipzig, 1912), p. 235. Publisher's Note: In English, "Idea for a Universal History from a Cosmopolitan Point of View" (Complete Works, Insel Edition). In On History. Immanuel Kant, ed. Lewis White Beck and trans. Lewis White Beck, Robert E. Anchor and Emil L. Fackenheim (Indianapolis: Bobbs-Merrill, 1963), p. 21.
34. Kant, Rezension zum zweiten Teil von Herders Ideen zur Philosophie der Geschichte der Menschheit, vol. 1, Werke, p. 267. On this, see Cassirer, Freiheit und Form (Berlin, 1916), pp. 504 ff. Publisher's Note: In English, "Review on the Second Part of Herder's Ideas for a Philosophy on the History of Mankind." In On History. Immanuel Kant, ed. Lewis White Beck (Indianapolis: Bobbs-Merrill, 1963), p. 51.
Part I, Chapter 3
41. In their efforts to debit capitalism with all evil, the socialists have tried to describe even modern imperialism and thus world war as products of capitalism. It is probably unnecessary to deal more fully with this theory, put forward for the unthinking masses. But it is not inappropriate to recall that Kant represented the facts correctly when he expected the growing influence of "money power" would gradually diminish warlike tendencies. "It is the spirit of commerce," he says, "which cannot exist side by side with war" (Kant, "Zum ewigen Frieden," vol. 5, Sämtliche Werke, p. 688); see also Sulzbach, Nationales Gemeinschaftsgefühl und wirtschaftliches Interesse (Leipzig, 1929), pp. 80 ff. Publisher's Note: In English, "Perpetual Peace." In On History. Immanuel Kant, ed. Lewis White Beck (Indianapolis: Bobbs-Merrill, 1963), p. 114.
42. In some sense it is, perhaps, not altogether an accident that the writer who, at the threshold of the Renaissance, first raised the democratic demand for legislation by the people—Marsilius of Padua—called his work Defensor Pacis (Atger, Essai sur l'Histoire des Doctrines du Contrat Social [Paris, 1906], p. 75; Scholz, "Marsilius von Padua und die Idee der Demokratie" [Zeitschrift fur Politik, 1908], vol. 1, pp. 66 ff.
43. See, on the one hand, especially the writings of the advocates of the Prussian authoritarian state; on the other, above all, the syndicalists (Michels, Zur Soziologie des Parteiwesens in der modernen Demokratie, 2nd ed. [Leipzig, 1925]), pp. 463 ff.
45. The natural-law theories of democracy, which fail to appreciate the essentials of the division of labor, cling to the idea of the "representation" of electors by elected. It was not difficult to show how artificial was this concept. The member of parliament who makes laws for me and controls for me the administration of the postal system, no more "represents" me than the doctor who heals me or the cobbler who makes shoes for me. What differentiates him essentially from the doctor and the cobbler is not that he fulfills services of a different kind for me but that if I am dissatisfied with him I cannot withdraw the care of my affairs from him in the same simple way I can dismiss a doctor or a cobbler. To get that influence in government which I have over my doctor and shoemaker I want to be an elector.
46. To this extent one can say with Proudhon: "La democratie c'est l'envie" ("Democracy is envy") (Poehlmann, Geschichte der sozialen Frage und des Sozialismus in der antiken Welt, vol. 1, p. 317, fn. 4).
51. Engels, Herrn Eugen Dührings Umwälzung der Wissenschaft, 7th ed. (Stuttgart, 1910), p. 302. Publisher's Note: in English, see Anti-Dühring: Herr Eugen Dühring's Revolution in Science (Moscow: Foreign Languages Publishing House, 1954), p. 389.
52. Marx, Zur Kritik des sozialdemokratischen Parteiprogramms von Gotha, ed. Kreibich (Reichenberg, 1920), p. 23. Publisher's Note: In English, see Critique of the Gotha Programme, rev. trans. (New York: International Publishers, 1938), p. 18, or in Capital, the Communist Manifesto and Other Writings, ed. and introd. Max Eastman (New York: Random House, Modern Library, 1932). p. 355.
53. Ibid., p. 17; also V. I. Lenin, Staat und Revolution (Berlin, 1918), p. 89. Publisher's Note: In English, see Marx, Critique of the Gotha Programme, p. 10. or p. 7 in the Eastman anthology; also Lenin, "The State and Revolution," in Selected Work in Two Volumes (Moscow: Foreign Languages Publishing House, 1952), vol. 2, pt. 1, pp. 199-325. The reference cited here is p. 290 in this English translation.
55. As is the opinion of Kelsen, "Vom Wesen und Wert der Demokratie," in Archiv für Sozialwissenschaft und Sozialpolitik, vol. 47, P. 84; also Menzel, "Demokratie und Weltanschauung," in Zeitschrift für öffentliches Recht, vol. 2, pp. 701 ff.
56. Marx, op. cit., p. 17. Publisher's Note: In English, see Critique of the Gotha Programme, rev. trans. (New York: International Publishers, 1938), p. 10, or Marx, Capital, the Communist Manifesto and Other Writings, ed. and introd. Max Eastman (New York: Random House, Modern Library, 1932), p. 7.
58. "Engels, Preface to Marx, Der Bürgerkrieg in Frankreich, Politische Aktions-Bibliothek (Berlin, 1919), p. 16. Publisher's Note: In English, see Engels, "Introduction to the German Edition" of Marx's "The Civil War in France" (1871), in Marx, Capital, the Communist Manifesto and Other Writings, ed. and introd. Max Eastman (New York: Random House, Modern Library, 1932), p. 381.
60. Engels, Der Ursprung der Familie, des Privateigentums und des Staates, 20th ed. (Stuttgart, 1921), pp. 163 ff. Publisher's Note: In English, see Engels, The Origin of the Family, Private Property and the State (New York: International Publishers, 1972), pp. 162 ff.
61. Ovid, Metamorphoses, I, pp. 89 ff.; also Virgil, Aeneid, VII, pp. 203 ff.; Tacitus, Annal, III, p. 26; Poehlmann, Geschichte der sozialen Frage und des Sozialismus in der antiken Welt, vol. 2, pp. 583 ff.
63. Also Bryce, Moderne Demokratien, trans. Loewenstein and Mendelssohn Bartholdy (Munich, 1926), vol. 3, pp. 289 ff. Publisher's Note: In English, see James Bryce, Modern Democracies (New York: Macmillan, 1921), 2 vols.
Part I, Chapter 4
64. Freud, Drei Abhandlungen zur Sexualtheorie, 2nd ed. (Leipzig and Vienna, 1910), pp. 38 ff. Publisher's Note: In English, see Freud, "Three Essays on the Theory of Sexuality," in The Standard Edition of the Complete Psychological Works of Sigmund Freud (New York: Avon Books, 1965). This citation is found on pp. 53 ff.
66. Engels, Der Ursprung der Familie, des Privateigentums und des Staates, p. 182. Publisher's Note: In English, see Engels, The Origin of the Family, Private Property and the State (New York: International Publishers, 1972), p. 232.
67. Westermarck, Geschichte der menschlichen Ehe, trans. Katscher and Grazer, 2nd ed. (Berlin, 1902), p. 122; Weinhold, Die deutschen Frauen in dem Mittelalter, 3rd ed. (Vienna, 1897), vol. 2, pp. 9 ff. Publisher's Note: The Westermarck book first appeared in English as The History of Human Marriage (1891).
77. August Bebel, Die Frau und der Sozialismus, 16th ed. (Stuttgart, 1892), p. 343. Publisher's Note: English, see Bebel, Women and Socialism, auth. trans. Meta L. Stern (New York: Socialist Literature, 1910), p. 467.
79. Marx and Engels, Das Kommunistische Manifest, 7th German ed. (Berlin, 1906), p. 35. Publisher's Note: In English, see "The Communist Manifesto," in Marx, Capital, the Communist Manifesto and Other Writings, ed. and introd. Max Eastman (New York: Random House, Modern Library, 1932), pp. 315-355. The reference to prostitution is on page 340 of this English edition.
Part II, Chapter 5
1. It was left to the empirical-realistic school, with its terrible confusion of all concepts, to explain the economic principle as a specific of production under a money economy, e.g., Lexis, Allgemeine Volkswirtschaftslehre (Berlin and Leipzig, 1910), p. 15.
5. The following remarks reproduce parts of my essay "Die Wirtschaftsrechnung im sozialistischen Gemeinwesen" (Archiv für Sozialwissenschaft, Vol. XLVII, pp. 86-121). Publisher's Note: Mises' essay was translated into English by S. Adler and included in Collectivist Economic Planning: Critical Studies on the Possibilities of Socialism by N. G. Pierson, Ludwig yon Mises, Georg Halm, and Enrico Barone; edited, with an Introduction and a Concluding Essay by F. A. Hayek. London: Routledge & Kegan Paul Ltd., 1935. 293 pp. bibl. Mises' essay, titled "Economic Calculation in the Socialist Commonwealth" in English, appears on pages 87-130.
9. Neurath too admitted this. (Durch die Kriegswirtschaft zur Naturalwirtschaft [Munich, 1919], pp. 216 ff.) He asserts that every complete administrative economy (planned economy) is ultimately a natural economy (barter system). "To socialize therefore means to advance the natural economy." Neurath, however, did not recognize the insurmountable difficulties economic calculation would encounter in the socialist community.
10. Passow, Kapitalismus, eine begrifflich-terminologische Studie (Jena, 1918), pp. 1 ff. In the 2nd edition, published 1927, Passow expressed the opinion (p. 15, note 2), in view of the most recent literature, that the term "Capitalism" might in time gradually lose the moral colouring.
Part II, Chapter 6
16. Marx, Das Kapital, Vol. 1, pp. 5 ff. Publisher's Note: In English, see Marx, Karl. Capital: A Critique of Political Economy. 3 volumes. Vol. I. The Process of Capitalist Production. Translated from the 3rd German edition by Samuel Moore and Edward Aveling. Edited by Frederick Engels. Revised and amplified according to the 4th German edition by Ernest Untermann. Chicago: Charles H. Kerr & Co., 1906. (Note: This Volume I also reprinted by Random House as a Modern Library Giant, with same paging as the Kerr edition.) Vol. II. The Process of Circulation of Capital. Vol. III. The Process of Capitalist Production as a Whole. Both Volumes II and III were translated by Ernest Untermann and edited by Frederick Engels. Both were published by the same Charles H. Kerr & Co. of Chicago in 1909. In this footnote, pp. 5 ff. refers to pp. 45 ff. in the English Vol. I.
19. Böhm-Bawerk, Kapital und Kapitalzins, Vol. I, 3rd ed. (Innsbruck, 1914), p. 531. Publisher's Note: Böhm-Bawerk's three volume work in English is: Böhm-Bawerk, Eugen von. Capital and Interest. 3 volumes. (South Holland, Illinois: Libertarian Press, 1959.) Volume I. History and Critique of Interest Theories. Translated by George D. Huncke and Hans F. Sennholz.
20. We may point out here that as early as 1854 Gossen knew "that only through private property is the measure found for determining the quantity of each commodity which it would be best to produce under given conditions. Therefore, the central authority, proposed by the communists, for the distribution of the various tasks and their reward, would very soon find that it had taken on a job the solution of which far surpasses the abilities of individual men." (Gossen, Entwicklung der Gesetze des menschlichen Verkehrs, new ed., [Berlin, 1889] p. 231.) Pareto (Cours d'Économie Politique, Vol. II, Lausanne, 1897, pp. 364 ff.) and Barone ("Il Ministro della Produzione nello Stato Coletivista" in Giornale degli Economisti, Vol. XXXVII, 1908, pp. 409 ff.) did not penetrate to the core of the problem. Pierson clearly and completely recognized the problem in 1902. See his Das Wertproblem in der sozialistischen Gesellschaft (German translation by Hayek, Zeitschrift für Volkswirtschaft, New Series, Vol. IV, 1925, pp. 607 ff.) Publisher's Note: Both the Barone article ("The Ministry of Production in the Collectivist State," pp. 245-290) and the Pierson article ("The Problem of Value in the Socialist Society," pp. 41-85) are included in the Hayek edited Collectivist Economic Planning.
21. I have briefly discussed the most important of these replies in two short essays—"Neue Beiträge zurn Problem der sozialistischen Wirtschaftsrechnung" (Archiv für Sozialwissenschaft, Vol. LI, pp. 488-500) and "Neue Schriften zum Problem der sozialistischen Wirtschaftsrechnung" (Ibid., Vol. LX, pp. 187-90. Publisher's Note: "Neue Beiträge zum Problem der sozialistischen Wirtschaftsrechnung" appears in part as the Appendix of this book on p. 473. The second essay mentioned by Mises in this footnote was published in 1928 and has not been translated into English. The essay was a review of recent literature on economic calculations under socialism.
22. In scientific literature there is no more doubt about this. See Max Weber, "Wirtschaft und Gesellschaft" (Grundriss der Sozialökonomik, Vol. III), Tübingen, 1922, pp. 45-59; Adolf Weber, Allgemeine Volkswirtschaftslehre, 4th ed., Munich and Leipzig, 1932, Vol. II, pp. 369 ff.; Brutzkus, Die Lehren des Marxismus im Lichte der russischen Revolution, Berlin, 1928, pp. 21 ff.; C. A. Verrijn Stuart, "Winstbejag versus behoeftenbevrediging" (Overdruk Economist, Vol, 76 No. 1), pp. 28 ff.; Pohle-Halm, Kapitalismus und Sozialismus, 4th ed., Berlin, 1931, pp. 237 ff.
23. Characteristic of this branch of literature is the recently published work of C. Landauer, Planwirtschaft und Verkehrswirtschaft (Munich and Leipzig, 1931). Here the writer deals with the problem of economic calculation quite naively, at first by asserting that in a socialist society "the individual enterprises...could buy from each other, just as capitalist enterprises buy from each other" (p. 114). A few pages on he explains that "besides this" the socialist state will "have to set up a control accountancy in kind"; the state will be "the only one able to do this because in contrast to Capitalism it controls production itself" (p. 122). Landauer cannot understand that—and why—one is not permitted to add and subtract figures of different denominations. Such a case is, of course, beyond help.
24. Böhm-Bawerk, Kapital und Kapitalzins, Vol. II, 3rd ed. (Innsbruck, 1912), p. 21. Publisher's Note: The page in the English (Sennholz/Huncke) translation of Böhm-Bawerk, referred to here is page 14 in Volume II. Böhm-Bawerk, Eugen von. Capital and Interest. 3 volumes. South Holland, Illinois: Libertarian Press, 1959. [Information re Vol. I above.] Volume II. Positive Theory of Capital. Translated by George D. Huncke; Hans F. Sennholz, Consulting Economist. Volume III. Further Essays on Capital and Interest. Translated by Hans F. Sennholz.
25. The limitation comprised in the words "at first" is not intended to mean that Socialism will later on, say after attaining a "higher stage of the communist society," intentionally set about abolishing capital in the sense used here. Socialism can never plan the return to the life from hand to mouth. Rather do I want to point out here that Socialism must, by inner necessity, lead to the gradual consumption of capital.
33. Bernhardi, Versuch einer Kritik der Grande, die für grosses und kleines Grundeigentum angeführt werden (Petersburg, 1849), pp. 367 ff.; also Cronbach, Das landwirtschaftliche Betriebsproblem in der deutschen Nationalökonomie bis zur Mitte des 19. Jahrhunderts (Vienna, 1907), pp. 292 ff.
34. "La société recherche le plus grand produit brut, par consequent la plus grande population possible, parce que pour elle produit brut et produit net son identiques. Le monopole, au contraire, vise constamment au plus grand produit net, dût-il ne l'obtenir qu'au prix de l'extermination du genre humain." ("Society seeks the largest gross product and thus the largest possible population, because for it gross product and net product are the same thing. On the other hand, monopoly continually aims at the highest net product which it can obtain only at the price of exterminating the human race.") Proudhon, Système des contradictions économiques ou philosophie de la misère (Paris, 1846), Vol. I, p. 270. In Proudhon's language "Monopoly" means the same as Private Property. Ibid., Vol. i, p. 236; also Landry, L'utilité sociale de la propriété individuelle (Paris, 1901), p. 76.
35. Marx, Das Kapital, Vol. I, pp. 613-726. The arguments about "the theory of compensation for the workers displaced by machinery" (ibid., pp. 403-12) are vain in view of the Marginal Utility Theory. Publisher's Note: The page references cited here are pp. 738-821 and 478-488, respectively, in the English edition.
36. Goltz, Agrarwesen und Agrarpolitik, 2nd ed. (Jena, 1904), p. 53; also Waltz, Vom Reinertrag in der Landwirtschaft (Stuttgart and Berlin, 1904), pp. 27 ff. Goltz contradicts himself in his arguments, for, to the assertion mentioned above, he adds immediately: "Nevertheless the amount remaining as net profit from the gross product after deducting costs varies considerably. On the average it is greater with extensive than with intensive cultivation."
Part II, Chapter 7
44. See Pecqueur's criticism of this formula of distribution in Théorie nouvelle d'Économie sociale et politique (Paris, 1842), pp. 613 ff. Pecqueur shows himself superior to Marx, who unhesitatingly indulges in the illusion that "In a higher stage of the communist society ... the narrow bourgeois legal horizon could be completely surpassed and society could write on its banners: From each according to his abilities, to each according to his needs!" Marx, Zur Kritik des sozialdemokratischen Parteiprogramms von Gotha, p. 17.
Part II, Chapter 8
51. "Today all enterprises ... are first and foremost a question of profitability ... A socialist society knows no other question than of sufficient labour forces, and if it has these the work ... is done." (Bebel, Die Frau und der Sozialismus, p. 308. Publisher's Note: p. 427 in the English edition.) "Everywhere it is the social institution and the methods of production and distribution connected with these which produce want and misery, and not the number of people." (Ibid., p. 368. Publisher's Note: p. 492 in the English edition.) "We suffer not from a lack but from a superfluity of foodstuffs, just as we have a superfluity of industrial products." (Ibid., p. 368, p. 429 in the English. Also Engels, Herrn Eugen Dührings Umwälzung der Wissenschaft, p. 305. Publisher's Note: pp. 390-391 in the English edition.) "We have ... not too many but rather too few people." (Bebel, op. cit., p. 370; p. 494 in the English edition.)
55. Marx, Zur Kritik des sozialdemokratischen Parteiprogramms von Gotha, p. 27. Publisher's Note: This passage can be found on p. 7 of the Eastman edited Modern Library edition and p. 10 of the International Publishers edition.
58. Considerant, "Studien über einige Fundamentalprobleme der sozialen Zukunft" (contained in Fouriers System der sozialen Reform, translated by Kaatz, Leipzig 1906), pp. 55 ff. Fourier has the distinction of having introduced the fairies into social science. In his future state the children, organized in "Petites Hordes" (small groups), will perform what the adults do not do. To them will be entrusted, amongst other things, maintenance of the roads. "C'est à leur amour propre que l'Harmonie sera redevable d'avoir, par toute la terre, des chemins plus somptueux que les allées de nos parterres. Ils seront entretenus d'arbres et d'arbustes, même de fleurs, et arrosés au trottoir. Les Petites Hordes courent frénétiquement au travail, qui est exécuté comme oeuvre pie, acte de charité envers la Phalange, service de Dieu et de l'Unité." (It is to their own self-esteem that "Harmony" will be indebted for having, everywhere, roads more magnificent than the walks in our flower gardens. They will be maintained with trees, shrubs, even flowers, and they will be irrigated along the footpaths. The small groups run frantically to their work, which will be carried out as a pious duty, an act of love [charity] for the Phalanx [community], a service for God and Unity.) By three o'clock in the morning they are up, cleaning the stables, attending to the cattle and horses, and working in the slaughter houses, where they take care that no animal is ever treated cruelly, killing always in the most humane manner. "Elles ont la haute police du règne animal." (They are the eminent police of the animal kingdom.) When their work is done they wash themselves, dress themselves, and appear triumphantly at the breakfast table. See Fourier, Oeuvres complètes, Vol. V, 2nd Edition (Paris, 1841), pp. 141, 159.
59. Fabre des Essarts, Odes Phalanstériennes, Montreuil-sous-Bois 1900. Béranger and Victor Hugo also venerated Fourier. The first dedicated to him a poem, reprinted in Bebel (Charles Fourier, Stuttgart 1890, pp. 294 ff.).
60. Socialist writers are still far from knowing this. Kautsky (Die soziale Revolution, II, pp. 16 ff.) considers that the main task of a proletarian regime is "to make work, which today is a burden, into a pleasure, so that people will enjoy working and the workers go joyfully to work." He admits that "this is not such a simple matter" and concludes that "it will hardly be possible to make work in factories and mines attractive quickly." But he cannot naturally bring himself to abandon completely Socialism's fundamental illusion.
63. Wattenbach, Das Schriftwesen in Mittelalter, 3rd ed. (Leipzig, 1896), p. 500. Amongst the many similiar sayings and verses quoted by Wattenbach is the still more drastic: Libro completo saltat scriptor pede laeto (Once the book is finished, the author dances with joy).
65. Rodbertus, Johann Karl, Briefe und sozialpolitische Aufsätze, ed. R. Meyer (Berlin, 1881), pp. 553 ff. We shall not enter here into Rodbertus' other proposals for the normal working day. They are throughout based on the untenable view Rodbertus has formed about the problem of value.
68. J. S. Mill, Principles, pp. 226 ff. We cannot here examine how far Mill took over these ideas from others. Their wide diffusion they owe to the brilliant exposition in which Mill has presented them in his much read work.
73. In the years of controlled economy we heard quite often of frozen potatoes, rotten fruit, spoiled vegetables. Did such things not happen formerly? Certainly. But they happened less often. The merchant whose fruit spoiled suffered monetary loss, and that made him careful in the future. If he did not take better care he was ruined at last. He ceased to direct production and was removed to a place in economic life where he could do no more harm. But it is otherwise with the goods which the state deals in. Here there is no individual interest behind the commodities. Here officials trade, whose responsibility is so divided that no one gets particularly excited about a small misfortune.
Part II, Chapter 9
77. Luther urged the Princes of his party not to tolerate the monastic system and the Mass. According to him it would be irrelevant to answer that, as the Emperor Charles was convinced that the Papist doctrine was true, he would act justly, from his point of view, in destroying the Lutheran teachings as heresy. For we know "that he is not certain of this, nor can he be certain, because we know that he errs and fights against the Gospels. For it is not our duty to believe that he is certain, because he goes without God's Word and we go with God's Word; rather it is his duty to recognize God's Word and to advance it, like us, with all his power." Dr. Martin Luther's Briefe, Sendschreiben und Bedenken, ed. de Wette, Part IV (Berlin, 1827), pp. 93 ff.; Paulus, Protestantismus und Toleranz im 16. Jahrhundert (Freiburg, 1911), p. 23.
78. "It is misleading to say: Progress should be organized. What is really productive cannot be put into forms made in advance; it flourishes only in unrestricted freedom. The followers may then organize themselves, which is also called 'forming a school'." Spranger, Begabung und Studium (Leipzig, 1917), p. 8. See also Mill, On Liberty, 3rd ed. (London, 1864), pp. 114 ff.
80. How Bebel pictured to himself life in a socialist community is shown by the following: "Here she (Woman) is active under the same conditions as the man. At one moment a practical worker in some industry she is in the next hour educator, teacher, nurse; in the third part of the day she exercises some art or cultivates a science; and in the fourth part she fulfils some administrative function. She enjoys studies, pleasures and amusement with her like or with men, just as she wishes and as the opportunity offers. In love choice she is free and unfettered like the man. She woos or lets herself be wooed, etc." (Bebel, op. cit., p. 342). Publisher's Note: pp. 466-467 in English edition.
81. This corresponds to Bellamy's ideas. (Ein Rückblick, translated by Hoops in Meyers Volksbücher, pp. 230 ff.) Publisher's Note: In English, Looking Backward: If Socialism Comes, 2000-1887 (Boston, 1889); chapter 15; and (W. Foulsham, London), pp. 92-99.
Part II, Chapter 10
87. Tarde, Die Sozialen Gesetze, German translation by Hammer (Leipzig, 1908), p. 99. Also the numerous examples in Roscher, Ansichten der Volkswirtschaft vom geschichtlichen Standpunkt, 3rd ed. (Leipzig, 1878), Vol. I, pp. 112 ff. Publisher's Note: The Tarde book in English is Social Laws. Translated by Howard C. Warren, with preface by James Mark Baldwin (New York: Macmillan, 1899).
88. On the difficulties a socialist economy must put in the way of the invention and, even more, of the realization of technical improvements, see Dietzel, Technischer Fortschritt und Freiheit der Wirtschaft (Bonn and Leipzig, 1922), pp. 47 ff.
89. See the pertinent criticism of these efforts which are evidence of good intentions rather than of scientific sharpness of thought, in Michaelis, Volkswirtschaftliche Schriften (Berlin, 1873), Vol. II, pp. 3 ff., and by Petritsch, Zur Lehre von der Überwälzung der Steuern mir besonderer Beziehung auf den Börsenverkehr (Graz, 1903), pp. 28 ff. Of Adolf Wagner, Petritsch says that "although he likes to call economic life an 'organism' and wants to have it considered as such, and although he always stresses the interest of the community against that of individuals, yet in concrete economic problems he does not get beyond the individuals and their more or less moral aims, and wilfully overlooks the organic connection between these and other economic phenomena. Thus he ends where, strictly speaking, should be the starting point, not the end, of every economic investigation" p. 59). The same is true of all writers who have thundered against speculation.
Part II, Chapter 11
Part II, Chapter 12
Part II, Chapter 13
7. See my Nation, Staat und Wirtschaft (Vienna, 1919), pp. 45 ff., and Liberalismus (Jena, 1927), pp. 93 ff. Publisher's Note: Nation, Staat und Wirtschaft is not in English. Liberalismus is in English as The Free and Prosperous Commonwealth: An Exposition of the Ideas of Classical Liberalism. Translated by Ralph Raico. Edited by Arthur Goddard (Princeton, N.J.: D. Van Nostrand, 1962). This book was republished in 1978 under the title Liberalism: A Socio-Economic Exposition. Foreword to the Second Edition by Louis M. Spadaro. (Kansas City: Sheed Andrews and McMeel, Inc., 1978). The pages in the German work referred to here (93 ff.) are pp. 105 ff. in both English editions.
Part II, Chapter 14
10. It is superfluous to dispute with the autarky plans, which have been most zealously argued by the naive litterateurs of the "Tat" circle (Fried, Das Ende des Kapitalismus, Jena 1931). Autarky would probably depress the standard of life of the German people incomparably more than could the Reparations burden multiplied a hundred-fold.
11. In judging the English policy for opening up China, people constantly put in the foreground the fact that it was the opium trade which gave the direct, immediate occasion for the outbreak of war complications. But in the wars which the English and French waged against China between 1839 and 1860 the stake was the general freedom of trade and not only the freedom of the opium trade. That from the Free Trade point of view no barriers ought to be put in the way even of the trade in poisons, and that everyone should abstain by his own impulse from enjoyments harmful to his organism, is not so base and mean as socialist and anglophobe writers tend to represent. Rosa Luxemburg, Die Akkumulation des Kapitals (Berlin, 1913), pp. 363 ff. reproaches the English and French that it was no heroic act to defeat with European weapons the Chinese, who were provided only with out of date arms. Ought the French and English also to have taken the field only with ancient guns and spears?
Part II, Chapter 15
19. Bericht der Sozialisierungskommission über die Frage der Sozialisierung des Kohlenbergbaues vom 31 Juli 1920, with appendix: Vorläufiger Bericht vom 15 Februar 1919 2nd ed. (Berlin, 1920), pp. 32 ff.
20. Bericht der Sozialisierungskommission über die Frage der Sozialisierung des Kohlenbergbaues vom 31 Juli, 1920, with appendix: Vorläufiger Bericht vom 15 Februar 1919, 2nd ed. (Berlin, 1920), p. 37. 216 245
22. Philipp v. Arnim, Ideen zu einer vollständigen landwirtschaftlichen Buchhaltung, 1805, p. 2 (quoted in Waltz, op. cit., p. 21). See also Lenz, Agrarlehre und Agrarpolitik der deutschen Romantik, Berlin, 1912, p. 84. See similar remarks of Prince Alois Liechtenstein, a leader of the Austrian Christian Socialists, quoted in Nitti, Le Socialisme Catholique (Paris, 1894), pp. 370 ff.
29. Max Weber, "Der Streit um den Charakter der altgermanischen Sozialverfassung in der deutschen Literatur des letzten Jahrzehnts," (Jahrbücher für Nationalökonomie und Statistik, Vol. XXVIII, 1904, p. 445).
31. Herbert Spencer, Die Prinzipien der Soziologie, trans. Vetter, Vol. II (Stuttgart, 1899), pp. 720 ff. Publisher's Note: In English, The Principles of Sociology (New York: Appleton, 1897), Vol. II, Part V, pp. 610 ff.
33. Wiener, Essai sur les Institutions Politiques, Religieuses, Économiques et Sociales de l'Empire des Incas (Paris, 1874), pp. 64, 90 ff. attributes Pizarro's easy conquest of Peru to the fact that communism had unnerved the people.
34. Max Weber, "Der Streit um der Charakter der altgermanischen Sozialverfassung in der deutschen Literatur des letzten Jahrzehnts," (Jahrbücher für Nationalökonomie und Statistik, Vol. XXVIII, 1904), p. 445.
36. In the above text we have always spoken only of the Church in general, without considering the differences between the various denominations. This is quite admissible. The evolution towards Socialism is common to all denominations. In Catholicism, Leo XIII's encyclical, "Rerum Novarum," of 1891, has recognized the origin of private property in Natural Law; but simultaneously the Church laid down a series of fundamental ethical principles for the distribution of incomes, which could be put into practice only under State Socialism. On this basis stands also Pius XI's encyclical, "Quadragesimo anno" of 1931. In German Protestantism the Christian Socialist idea is so tied up with State Socialism that the two can hardly be distinguished.
40. "Guildsmen are opposed to private ownership of industry, and strongly in favour of public ownership. Of course, this does not mean that they desire to see industry bureaucratically administered by State departments. They aim at the control of industry by National Guilds including the whole personnel of the industry. But they do not desire the ownership of any industry by the workers employed in it. Their aim is to establish industrial democracy by placing the administration in the hands of the workers, but at the same time to eliminate profit by placing the ownership in the hands of the public. Thus the workers in a Guild will not be working for profit: the prices of their commodities and, indirectly at least, the level of their remuneration will be subject to a considerable measure of public control. The Guild system is one of industrial partnership between the workers and the public, and is thereby sharply distinguished from the proposals described as 'Syndicalist' ... The governing idea of National Guilds is that of industrial self-government and democracy. Guildsmen hold that democratic principles are fully as applicable to industry as to politics." Cole, Chaos and Order in Industry (London, 1920), p. 58 ff.
43. "A moment's consideration will show that it is one thing to lay drains, another to decide where drains are to be laid; it is one thing to make bread, another to decide how much bread is to be made; it is one thing to build houses, another to decide where the houses are to be built. This list of opposites can be lengthened indefinitely, and no amount of democratic fervour will destroy them. Faced with these facts, the Guild Socialist says that there is need for local and central authorities whose business it shall be to watch over that important part of life that lies outside production. A builder may think it advisable to be forever building, but the same man lives in some locality and has a right to say whether this purely industrial point of view shall have absolutely free play. Everyone, in fact, is not a producer but also a citizen." G. D. H. Cole and W. Mellor, The Meaning of Industrial Freedom (London, 1918), p. 30.
44. Tawney, The Acquisitive Society (London, 1921), p. 122, considers that the advantage of the Guild System for the worker is that it puts an end to "the odious and degrading system under which he is thrown aside like unused material whenever his services do not happen to be required." But just this reveals the gravest defect of the system recommended. If one needs no more building because relatively sufficient buildings exist, yet must build so as to occupy the workers in the building trades who are unwilling to change over to other branches of production that suffer from a comparative scarcity of labour, the position is uneconomic and wasteful. The very fact that Capitalism forces men to change their occupations is its advantage from the standpoint of the General Best, even though it may directly disadvantage the special interests of small groups.
Part II, Chapter 16
45. Here one must name before all the Jesuit Pesch, Lehrbuch der Nationalökonomie, Vol. I, 2nd ed. (Freiburg, 1914), pp. 392-438. In France there is a conflict between catholic and freethinking solidarists—about the relation of the Church to the State and to society, rather than about the real principles of social theory and policy—which makes Church circles suspicious of the term "solidarism." See Haussonville, "Assistance publique et bienfaisance privée" (Revue des Deux Mondes, Vol. CLXII, 1900, pp. 773-808); Bouglé, Le Solidarisme (Paris, 2907), pp. 8 ff.
50. Engel, "Der Arbeitsvertrag und die Arbeitsgesellschaft" (in Arbeiterfreund, 5 Year, 1867, pp. 129-154). A survey of the German literature on profit sharing is given in the memorandum of the German "Statistisches Reichsamt": Untersuchungen and Vorschläge zur Beteiligung der Arbeiter an dem Erträge wirtschaftlicher Unternehmungen, published as a supplement to the Reichs-Arbeitsblatt of March 3, 1920.
55. On interventionism see my Kritik des Interventionismus, pp. 1 ff. Publisher's Note: In English, A Critique of Interventionism, trans. Hans F. Sennholz (New York: Arlington House, 1977), pp. 15 ff.
Part III, Chapter 17
4. Whether or not Jesus held Himself to be the Messiah we need not discuss here. The only important thing for us is that He announced the immediate coming of the Kingdom of God and that the first congregation looked on Him as the Messiah.
8. Wundt, Ethik, 4th ed. (Stuttgart, 1912), Vol. II, p. 246. One sees in Engels' survey of the history of warfare a characteristic example of how ready the representatives of this movement are to see the end of all evolution attained. Engels there—1878—expresses the opinion that, with the Franco-German war, "a turning point of quite other importance than all previous ones had occurred" in the history of warfare. "Weapons are so perfected that a fresh process of any revolutionary influence is no longer possible. When one has guns which can hit a battalion as far as the eye can see and rifles which can do the same with a single person as aim, with which loading takes less time than firing, then all further advances are more or less indifferent in field war. Thus the era of evolution on this side is essentially closed." See Herrn Eugen Dührings Umwälzung der Wissenschaft, p. 176. Publisher's Note: p. 236 in the English edition. In judging other views, Marx understands well how to find out the weaknesses of the theory of stages. According to their teachings, says Marx, "a history has existed but none exists any longer." See Das Elend der Philosophie, German translation by Bernstein and Kautsky, 8th ed. (Stuttgart, 1920), p. 104. He merely does not notice that the same will be true of his teachings on the day when the means of production will have been socialized. Publisher's Note: In English, Marx, The Poverty of Philosophy: Answer to the "Philosophy of Poverty" by M. Proudhon (Moscow: Foreign Language Publishing House), p. 112.
Part III, Chapter 18
11. As is done by Lilienfeld, La pathologie sociale (Paris, 1896), p. 95. When a government takes a loan from the House of Rothschild organic sociology conceives the process as follows: "La maison Rothschild agit, dans cette occasion, parfaitement en analogie avec l'action d'un groupe de cellules qui, dans le corps humain, coopèrent à la production du sang nécessaire à l'alimentation du cerveau dans l'espoir d'en être indemnisées par une réaction des cellules de la substance grise dont ils ont besoin pour s'activer de nouveau et accumuler de nouvelles énergies." ("The House of Rothschild's operation, on such an occasion, is precisely similar to the action of a group of human body cells which cooperate in the production of the blood necessary for nourishing the brain, in the hope of being compensated by a reaction of the gray matter cells which they need to reactivate and to accumulate new energies.") (Ibid., p. 104.) This is the method which claims that it stands on "firm ground" and explores "the Becoming of Phenomena step by step, proceeding from the simpler to the more complex." See Lilienfeld, Zur Verteidigung der organischen Methode in der Soziologie (Berlin, 1898), p. 75.
12. It is characteristic that just the romantics stress excessively society's organic character, whereas liberal social philosophy has never done so. Quite understandably. A social theory which was genuinely organic did not need to stress obtrusively this attribute of its system.
16. Durkheim, De la division du travail social (Paris, 1893), pp. 294 ff. endeavours (following Comte and against Spencer) to prove that the division of labour prevails not because, as the economists think, it increases output but as a result of the struggle for existence. The denser the social mass the sharper the struggle for existence. This forces individuals to specialize in their work, as otherwise they would not be able to maintain themselves. But Durkheim overlooks the fact that the division of labour makes this possible only because it makes labour more productive. Durkheim comes to reject the theory of the importance of the greater productivity in the division of labour through a false conception of the fundamental idea of utilitarianism and of the law of the satiation of wants (op. cit., 218 ff., 257 ff.). His view that civilization is called forth by changes in the volume and density of society is untenable. Population grows because labour becomes more productive and is able to nourish more people, not vice versa.
17. On the important part played by the local variety of productive conditions in the origin of the division of labour see von den Steinen, Unter den Naturvölkern Zentralbrasiliens, 2nd ed. (Berlin, 1897), pp. 196 ff.
18. Ricardo, Principles of Political Economy and Taxation, pp. 76 ff.; Mill, Principles of Political Economy, pp. 348 if.; Bastable, The Theory of International Trade, 3rd ed. (London, 1900), pp. 16 ff.
19. "Trade makes the human race, which originally has only the unity of the species, into a really unitary society." See Steinthal, Allgemeine Ethik (Berlin, 1885), p. 208. Trade, however, is nothing more than a technical aid of the division of labour. On the division of labour in the sociology of Thomas Aquinas see Schreiber, Die volkswirtschaftlichen Anschauungen der Scholastik seit Thomas von Aquin (Jena, 1913), pp. 19 ff.
20. Therefore, too, one must reject the idea of Guyau, which derives the social bond directly from bi-sexuality. See Guyau, Sittlichkeit ohne Pflicht, translated by Schwarz (Leipzig, 1909), p. 113 ff.
21. Fouillée argues as follows against the utilitarian theory of society, which calls society a "moyen universal" ("universal means") (Belot): "Tout moyen n'a qu'une valeur provisoire; le jour oł un instrument dont je me servais me devient inutile ou nuisible, je le mets de côté. Si la société n' est qu'un moyen, le jour oł, exceptionellement, elle se trouvera contraire à mes fins, je me delivrerai des lois sociales et moyens. sociaux.... Aucune considération sociale ne pourra empêcher la révolte de l'individu tant qu'on ne lui aura pas montré que la société est établie pour des fins qui sont d'abord et avant tout ses vraies fins à lui-même et qui, de plus, ne sont pas simplement des fins de plaisir ou d'intérêt, l'intérêt n'étant que le plaisir différé et attendu pour l'avenir ... L'idée d'intérét est précisément ce qui divise les hommes, malgré les rapprochements qu'elle peut produire lorsqu'il y a convergence d'intérêts sur certains points." ("Every means has only a temporary value; the day when a means ceases to serve me or becomes harmful to me, I cast it aside. If society is only a means, the day when, by some special circumstances, it is found to act contrary to my ends, I will free myself from its social laws and social means.... No social consideration can prevent an individual from rebelling when it has not been demonstrated to him that society exists for ends which are primarily and above all his own true ends and, further, which are not simply for the ends of pleasure or self-interest, self-interest being only pleasure postponed and expected in the future.... The idea of self-interest is precisely what divides men, in spite of the cooperation it can produce when self-interests coincide in certain instances.") Fouillée, Humanitaires et libertaires au point de vue Sociologique et moral (Paris, 1914), pp. 146 ff.; see also Guyau, Die englische Ethik der Gegenwart, translated by Peusner (Leipzig, 1914), pp. 372 ff. Fouillée does not see that the provisional value which society gets as a means, lasts as long as the conditions of human life, given by nature, continue unchanged and as long as man continues to recognize the advantages of human co-operation. The "eternal," not merely provisional, existence of society follows from the eternity of the conditions on which it is built up. Those in power may demand of social theory that it should serve them by preventing the individual from revolting against society, but this is by no means a scientific demand. Besides no social theory could, as easily as the utilitarian, induce the social individual to enrol himself voluntarily in the social union. But when an individual shows that he is an enemy of society there is nothing left for society to do but make him harmless.
26. On the stages theory see also my Grundprobleme der Nationalökonomie (Jena, 1933), pp. 106 ff. Publisher's Note: In English, Epistemological Problems of Economics, trans. George Reisman (Princeton. N.J.: D. Van Nostrand, 1960). The reference to pp. 106 ff. in this footnote in the German book is to the essay "Sociology and History" (pp. 68-129) in the English translation, especially the section starting on p. 108.
28. Marx, Das Elend der Philosophie, p. 92. In the formulations which Marx later on gave to his conception of history he avoided the rigidity of this earliest version. Behind such indefinite expressions as "productive forces" and "conditions of production" are hidden the critical doubts which Marx may meanwhile have experienced. But obscurity, opening the way to multitudinous interpretations, does not make an untenable theory tenable. Publisher's Note: In the English edition p. 105.
29. Ferguson, Abhandlung über die Geschichte der bürgerlichen Gesellschaft, trans. Dom (Jena, 1904), pp. 237 ff.; also Barth, Die Philosophie der Geschichte als Soziologie, 2nd ed. (Leipzig, 1915), Part I, pp. 21 578 ff.
30. All that remains of the materialist conception of history, which appeared with the widest possible claims, is the discovery that all human and social action is decisively influenced by the scarcity of goods and the disutility of labour. But the Marxists can least admit just this, for all they say about the future socialist order of society disregards these two economic conditions.
31. Adam Müller says about "the vicious tendency to divide labour in all branches of private industry and in government business too," that man needs "an all round, I might say a sphere-round field of activity." If the "division of labour in large cities or industrial or mining provinces cuts up man, the completely free man, into wheels, rollers, spokes, shafts, etc., forces on him an utterly one-sided scope in the already one-sided field of the provisioning of one single want, how can one then demand that this fragment should accord with the whole complete life and with its law, or with legality; how should the rhombuses, triangles, and figures of all kinds accord separately with the great sphere of political life and its law?" See Adam Müller, Ausgewählte Abhandlungen, ed. Baxa (Jena, 1921), p. 46.
32. Marx, Zur Kritik des sozialdemokratischen Parteiprogramms von Gotha, p. 17. Innumerable passages in his writings show how falsely Marx conceived the nature of labour in industry. Thus he thought also that "the division of labour in the mechanical factory" is characterized by "having lost every specialized character ... The automatic factory abolishes the specialist and the one-track mind." And he blames Proudhon, "who did not understand even this one revolutionary side of the automatic factory." Marx, Das Elend der Philosophie, p. 129. Publisher's Note: p. 138 of the English translation.
36. The romantic-militarist notion of the military superiority of the nations which have made little progress in Capitalism, completely refuted afresh by the World War, arises from the view that what tells in a fight is man's physical strength alone. This, however, is not completely true, even of the fights of the Homeric Age. Not physical but mental power decides a fight. On these mental powers depend the fighters' tactics and the way he is armed. The A B C of the art of warfare is to have the superiority at the decisive moment, though otherwise one may be numerically weaker than the enemy. The A B C of the preparation for war is to set up armies as strong as possible and to provide them with all war materials in the best way. One has to stress this only because people are again endeavouring to obscure these connections, by trying to differentiate between the military and economic-political causes of victory and defeat in war. It always has been and always will be the fact, that victory or defeat is decided by the whole social position of the combatants before their armies meet in battle.
39. "The laws, in creating property, have created wealth, but with respect to poverty, it is not the work of the laws—it is the primitive condition of the human race. The man who lives only from day to day, is precisely the man in a state of nature.... The laws, in creating property, have been benefactors to those who remain in the original poverty. They participate more or less in the pleasures, advantages and resources of civilized society," Bentham, Principles of the Civil Code, ed. Bowring (Edinburgh, 1843), Vol. I, p. 309.
42. Marx, Die heilige Familie. Aus dem literarischen Nachlass yon Karl Marx, Friedrich Engels und Ferdinand Lassalle, ed. Mehring, Vol. II (Stuttgart, 1902), p. 132. Publisher's Note: In English, The Holy Family (Moscow: Foreign Language Publishing House, 1956).
Part III, Chapter 19
43. "La guerre est une dissociation." ("War is a breakdown of social cooperation.") See Novicow, La Critique du Darwinisme Social (Paris, 1910), p. 124. See also the refutation of the struggle theories of Gumplowicz, Ratzenhofer, and Oppenheimer by Holsti, The Relation of War to the Origin of the State (Helsingfors, 1913), pp. 276 ff.
45. Ibid., p. xxiii: "Ce qu'on appelle la race, ce sont ces dispositions innées et héréditaires que l'homme apporte avec lui à la lumière." ("Race is the innate and hereditary characteristics and tendencies with which man is born.")
48. Gumplowicz, Der Rassenkampf (Innsbruck, 1883), p. 176. On Gumplowicz's dependence on Darwinism see Barth, Die Philosophie der Geschichte als Soziologie, p. 253. The "liberal" Darwinism is a badly thought out product of an epoch which could no longer grasp the meaning of the liberal social philosophy.
52. Kammerer, Genossenschaften von Lebewesen auf Grund gegenseitiger Vorteile (Stuttgart, 1913); Kammerer, Allgemeine Biologie (Stuttgart, 1915), p. 306; Kammerer, Einzeltod, Völkertod, biologische Unsterblichkeit (Vienna, 1918), pp. 29 ff.
56. Oppenheimer, "Die rassentheoretische Geschichtsphilosophie" in Verhandlungen des Zweiten deutschen Soziologentages (Tübingen, 1913), p. 106; also Hertz, Rasse und Kultur, 3rd ed. (Leipzig, 1925), p. 37; Weidenreich, Rasse und Körperbau (Berlin, 1927), pp. 133 ff.
60. "Chez les peuples modernes, la guerre et le militarisme sont de véritables fléaux dont le résultat définitif est de déprimer la race." ("For modern people, war and militarism are true calamities, of which the ultimate result is to debase the human race.") Lapouge, Les sélections sociales (Paris, 1896), p. 230.
Part III, Chapter 20
61. Marx, Das Kapital, Vol. I, p. 550. The passage from which the above quotation is taken was not in the first edition, published 1867. Marx first inserted it in the French version, published 1873, whence Engels took it over into the fourth German edition. Publisher's Note: p. 643 in the English translation. Masaryk, Die philosophischen und soziologischen Grundlagen des Marxismus (Vienna, 1899), p. 299, justly remarks that the alteration is presumably connected with the change Marx made in his theory in Vol. III of Das Kapital. It can be regarded as a recantation of the Marxist class theory. Significantly the third volume breaks off after a few sentences in the chapter headed "The Classes." In treating the problem of class Marx got only as far as setting up a dogma without proof, and no further.
65. Cunow, Die Marxsche Geschichts-,Gesellschafts-und Staatstheorie, Vol. II (Berlin, 1921), pp. 61 ff., tried to protect Marx from the accusation that he has mixed up the concepts class and estate. But his own remarks and the passages he quotes from Marx and Engels show how justified is this accusation. Read, for example, the first six paragraphs of the first part of the Communist Manifesto, headed "Bourgeois and Proletarians" and you will be convinced that there at least the expressions "Stand" and class are used indiscriminately. We have already said that when, later on in London, Marx became familiar with the Ricardian system, he separated his concept class from the concept "stand" and connected it with the three factors of production of the Ricardian system. But he never developed this new concept of class. Neither has Engels or any other Marxist tried to show what really welds the competitors—for these are the people of whom the "uniformity of incomes and of sources of incomes" makes a conceptual unit—into a class inspired by the same special interests.
67. Even today there is plenty of ownerless land which anyone who wishes can appropriate. Yet the European proletarian does not migrate to the interior of Africa or Brazil, but remains a wage labourer at home.
68. "The source of the slave owner's profits," says Lexis (in discussing Wicksell's "Über Wert, Kapital, und Rente" in Schmoller's Jahrbuch, Vol. XIX, pp. 335 ff.) "is unmistakable, and this is probably still true of the 'sweater.' In the normal relationship between entrepreneur and worker there is no such exploitation, but rather an economic dependence on the part of the worker, which undeniably influences the distribution of the produce of labour. The propertyless worker must absolutely procure 'present goods' for himself; otherwise he dies. He can generally realize his labour only by collaborating in the production of 'future goods.' But this is not the decisive factor, for even though he produces, like the baker's labourer, a commodity to be consumed on the day of its production, yet his share in the yield is conditioned by the circumstances disadvantageous to him, that he cannot make an independent use of his labour, but is forced to sell it against more or less sufficient means of life, renouncing his claim to its product. These are trivial propositions, but I believe that they will always have a convincing force for unprejudiced observers because of their direct self-evidence." One agrees with Böhm-Bawerk, Einige strittige Fragen der Kapitalstheorie (Vienna and Leipzig, 1900), p. 112; and Engels, Preface to the third volume of Das Kapital, p. xii, that in these ideas, which, by the way, only reproduce the views dominant in German "Popular Economics," is to be found a recognition dressed up in careful words, of the socialist theory of exploitation. The economic fallacies of the exploitation theory are nowhere exposed more clearly than in this attempt of Lexis to find a basis for it. Publisher's Note: The reference to page xii in the Engels citation is in Vol. III, pp. 19-21 of the English translation.
69. Even the Communist Manifesto has to admit: "The organization of the proletarians into a class, and thus into a political party, is ever and again broken up by competition among the workers themselves." (Marx and Engels: Das Kommunistische Manifest, p. 30). See also Marx, Das Elend der Philosophie, 8th ed. (Stuttgart, 1920), p. 161. Publisher's Note: pp. 165-166 in the English edition of The Poverty of Philosophy.
71. Even Cunow, Die Marxsche Geschichts-, Gesellschafis-und Staatstheorie, Vol. II, p. 53, in his uncritical Marx apology has to admit that Marx and Engels in their political writings speak not only of the three main classes but differentiate between a whole series of minor and side classes.
74. Marx, Zur Kritik der politischen Ökonomie, ed. Kautsky (Stuttgart, 1897), p. xi. Publisher's Note: The quote cited in Marx's Zur Kritik der politischen Ökonomie (A Contribution to the Critique of Political Economy) may be found on p. 11 of the Eastman anthology; p. 12 of the Kerr edition.
Part III, Chapter 21
87. Max Adler, who tries to reconcile Marxism with the Kantian New Criticism, vainly tries to prove that Marxism and philosophic materialism have nothing in common. See especially Marxistische Probleme (Stuttgart, 1913), pp. 60 if., 216 ff., in which he conflicts sharply with other Marxists. See, for example, Plekhanov, Grundprobleme des Marxismus (Stuttgart, 1910).
88. Marx, Das Kapital, Vol. I, p. 354, note. But between Descartes and Haller stands La Mettrie, with his "homme machine," whose philosophy Marx has unfortunately omitted to interpret genetically. Publisher's Note: This is page 426n in the Kerr edition.
94. Marx, Zur Kritik der politischen Ökonomie, p. 62. Barth, Die Philosophie der Geschichte als Soziologie, Vol. I, pp. 658 ff., says rightly that the comparison between the innate privileges of the nobility and the presumably innate ideas can be considered as at most a joke. But the first part of Marx's characterization of Locke is no less untenable than the second. Publisher's Note: p. 93 of the Kerr edition. Please note that this particular quotation is not in the excerpt reprinted in the Eastman anthology.
99. Hilferding, Böhm-Bawerk's Marx-Kritik (Vienna, 1904), pp. 1, 61. For the Catholic Marxist Hohoff, Warenwert und Kapitalprofit (Paderborn, 1902), p. 57. Böhm-Bawerk is "an indeed well gifted, ordinary economist who could not lift himself out of the capitalistic prejudices among which he grew up." See my Grundprobleme der Nationalökonomie (Jena, 1933), pp. 170 ff. Publisher's Note: The Hilferding essay is available in English in Karl Marx and the Close of his System by Eugen Böhm-Bawerk & Böhm-Bawerk's Criticism of Marx by Rudolf Hilferding, ed. Paul M. Sweezy (New York: Augustus M. Kelly, 1949), pp. 121-196. The pages cited here are pp. 121 and 196. Please also note that Mises' book, Grundprobleme der Nationalökonomie is in English as Epistemological Problems of Economics (Princeton, N.J.: D. Van Nostrand, 1960). The particular citation here is to the essay entitled "The Psychological Basis of the Opposition to Economic Theory," essay VI in this collection, pp. 183-203. This was first published in 1931.
100. See Bernard Shaw, for example, Fabian Essays (1889), pp. 16 ff. In the same way, in sociology and political science, natural law and contract theory have served both to advocate and fight Absolutism.
101. If one wants to credit the materialist conception of history with having stressed the fact that social relations are dependent on the natural conditions of life and production, one must remember that this can appear as a special merit only in contrast to the excesses of the Hegelian historians and philosophers of history. The liberal philosophy of society and history and the writing of history since the end of the XVIIIth Century (even the German, see Below, Die deutsche Geschichtsschreibung von den Befreiungskriegen bis zu unseren Tagen [Leipzig, 1916], pp. 224 ff.,) Were beforehand with this knowledge.
102. Of the chief representatives of French and Italian Syndicalism, Sombart, Sozialismus und soziale Bewegung, 7th ed. (Jena, 1919), p. 110, says, "So far as I know them personally—amiable, fine, educated people. Cultured people with clean linen, good manners and elegant wives, whom one meets as gladly as one's own kind of people, and who certainly do not look as if they represented a movement which turns above all against the increasingly bourgeois nature of Socialism and wants to help the wealed fist, the genuine and true only-manual-workers to their rights." And De Man, Zur Psychologie des Sozialismus, pp. 16 if., says, "If one accepted the misleading Marxist expression which connects every social ideology with a definite class attachment, one would have to say that Socialism as a doctrine, even Marxism, is of bourgeois origin."
Part III, Chapter 22
Part III, Chapter 23
8. Vogelstein, "Die finanzielle Organisation der kapitalistischen Industrie und die Monopolbildungen," Grundriss der Sozialökonomik, Pt. VI (Tübingen, 1914), pp. 203 ff. Weiss, "Abnehmender Ertrag," Handwörterbuch der Staatswissenschaften, 4th ed., Vol. I, pp. 11 ff.
9. See Alfred Weber, "Industrielle Standortslehre," Grundriss der Sozialiökonomik, Pt. VI (Tübingen, 1914), pp. 54 ff. The remaining factors of localization can be passed over, as the present, or the historically transmitted, distribution of primary production ultimately determines them.
Part III, Chapter 25
16. Considerant tries to prove the theory of concentration with a metaphor borrowed from mechanics: "Les capitaux suivent aujourd'hui sans contrepoids la loi de leur propre gravitation; c'est que, s'attirant en raison de leurs masses, les richesses sociales se concentrent de plus en plus entre ks mains des grands possesseurs." ("Capital today follows, without any opposing force, the law of its own magnetism. Capital attracts capital to itself, by mason of its very size. Social wealth is concentrated more and more in the hands of the largest owners.") Quoted by Tugan-Baranowsky, Der moderne Sozialismus in seiner geschichtlichen Entwicklung, p. 62. That is word play, nothing more.
17. The Fuggers and the Welsers were prominent, wealthy German families, descended respectively from Johannes Fugger, a successful weaver of the first half of the 19th century, and Bartholomeus Welser (d.1559), the head of a large banking and commercial firm (Pub.).
26. Hume, A Treatise of Human Nature, Philosophical Works, ed. Green and Grose (London, 1874), Vol. II, pp. 162 ff.; Mandeville, Bienenfabel, ed. Bobertag (Munich, 1914), p. 123. Publisher's Note: In English, Mandeville, The Fable of the Bees, ed. F. B. Kaye (Oxford University Press, 1924), pp. 135-136; Schatz, L'Individualisme économique et social (Paris, 1907), p. 73 n2, calls this an "idée fondamentale pour bien comprendre la cause profonde des antagonismes sociaux." ("Fundamental idea for a good understanding of the profound cause of social animosities.")
Part III, Chapter 26
29. Ely, Monopolies and Trusts (New York, 1900), pp. 11 ff.; Vogelstein, "Die finanzielle Organisation der kapitalistischen Industrie und die Monopolbildungen" (op. cit., p. 231) too, and following him the German Socialization Commission (op. cit., pp. 31 ff.), start from a concept of monopoly which comes very close to the views criticized by Ely and generally abandoned by the price theory of modern science.
30. Carl Menger, Grundsätze der Volkswirtschaftslehre (Vienna, 1871), p. 195; further Forchheimer, "Theoretisches zum unvollständigen Monopole" (Schmoller's Jahrbuch XXXII), pp. 3 ff. Publisher's Note: In English, Menger, Principles of Economics, trans. and ed. James Dingwall and Bert F. Hoselitz (Glencoe, Illinois: The Free Press, 1950), pp. 211 ff.
31. Compare on this important principle the large literature on the monopoly price. For example, Wieser, "Theorie der gesellschaftlichen Wirtschaft," in Grundriss für Sozialökonomik, Part I (Tübingen, 1914), p. 276.
Part IV, Chapter 27
1. How little the Social-Democrats have made this fundamental doctrine of Marxism their own, one sees from a glance at their literature. A leader of German Social-Democracy, the former German Minister of National Economy Wissell, confesses succinctly: "I am Socialist and shall remain Socialist, for I see in socialist economy, with its subordination of the Individual to the Whole, the expression of a higher moral principle than that which lies at the basis of individualistic economy." Praktische Wirtschaftspolitik (Berlin, 1919), p. 53.
Part IV, Chapter 28
15. Heichen, "Sozialismus und Ethik" in Die Neue Zeit, Vol. 38, Vol. l, pp. 312 ff. Specially remarkable in this context are also the remarks of Charles Gide, "Le Matérialisme et l' Économie Politique" in Le Matérialisme actuel (Paris, 1924).
Part IV, Chapter 29
16. The first fact known positively about Kaspar Hauser is that he appeared in Nuremberg in 1828 with a letter purporting to give some of his background. According to the letter, he had been found in 1812, when only a few months old, by a German laborer who had raised him. The boy said that he had been confined in a dark room all his life until he was sent forth into the world. In time he was placed in the care of the German poet and philosopher, Georg Friedrich Daumer (1800-1875). Hauser died in 1833 from a wound inflicted, he said, by a stranger who had promised information about his origin. Many myths and romances developed over the years as to Hauser's true identity and ancestry (Pub.).
18. John of Kronstadt (1821-1908), real name Ioann Sergiev, an orthodox Russian priest and popular idol, alleged performer of miracles, carried on charitable work and ministered to the poor, sick and needy.
29. "The doctrine of the medieval law of trade is rooted in the canonic dogma of the barrenness of money and in the sum of corollaries which are to be understood under the name of the usury law. The history of the trade law of those times cannot be anything except the history of the rule of the doctrine of usury in legal doctrine." Endemann, Studien in der romanisch-kanonistischen Wirtschafts-und Rechtslehre his gegen Ende des siebzehnten Jahrhunderts (Berlin, 1874-83), Vol. I, p. 2.
33. On the latest legislation of the Church, which in c. 1543, Cod. iur. can., has come to acknowledge conditionally the legality of the taking of interest, see Zehentbauer, Das Zinsproblem nach Moral und Recht (Vienna, 1920), pp. 138 ff.
37. Pfleiderer, Das Urchristentum, Vol. I, p. 652, explains Jesus' pessimistic judgment of earthly possessions by the apocalyptic expectation of the near world catastrophe. "Instead of trying to reinterpret and adapt His rigoristic expressions on this subject in the sense of our modern social ethics, one should make oneself familiar, once and for all, with the idea that Jesus did not appear as a rational moralist but as an enthusiastic prophet of the impending Kingdom of God and has only thus become the source of the religion of salvation. He who wants to make the eschatological enthusiasm of the prophet the direct and permanent authority for social ethics does just as wisely as he who would wish to warm his hearth and cook his soup with the flames of a volcano." On May 25th, 1525, Luther wrote to the Danzig Council: "The Gospel is a spiritual law by which one cannot well govern." See Neumann, Geschichte des Wuchers in Deutschland (Halle, 2865), p. 618. Also Traub, Ethik und Kapitalismus, 2nd ed. (Heilbronn, 2909), p. 71.
Part IV, Chapter 30
44. "The direct purpose of capitalist production is not the production of goods but of surplus value, or of profit in its developed form; not of the product but of the surplus product.... In this view the workers themselves appear as what, in the capitalist production, they are—mere means of production, not ends in themselves, not purpose of production." Marx, Theorien über den Mehrwert (Stuttgart, 1905), Part 2, pp. 333 ff. That the workers play a role in the economic process as consumers also, Marx never understood. Publisher's Note: Only a part of the work by Marx, Theorien über den Mehrwert (Stuttgart, 1905) has been translated into English in the book titled Theories of Surplus Value: Selections, translated from the German by G. A. Bonner and Emile Burns (New York: International Publishers, 1952), 432 pp.
45. Kant, Kritik der Urteilskraft (Works, Vol. VI), p. 265. Publisher's Note: In English, Critique of Judgment. In Immanuel Kant, The Critique of Judgement. Part II. Critique of Teleological Judgement, trans. James Creed Meredith (Oxford: Clarendon Press, 1952).
52. Todt (Der radikale deutsche Sozialismus und die christliche Gesellschaft, 2nd ed. (Wittenberg, 2878), pp. 306—19, is a good example of how, out of this and similar passages, people try to justify from the New Testament modern catchwords of the anti-liberal movement.
55. Ruskin, Unto this last (Tauchnitz-Ed.), pp. 19 ff.; Steinbach, Erwerb und Beruf (Vienna, 1896), pp.13 ff.; Otto Conrad, Volkswirtschaftspolitik oder Erwerbspolitik? (Vienna, 1918), pp. 5 ff.; Tawney, The Acquisitive Society, p. 38.
56. English economic history has destroyed the legend which taxed the rise of factory industry with having made the position of the working classes worse. See Hurt, "The Factory System of the Early 19th Century" in Economica, Vol. VI, 1926, p. 78 ff.; Clapham, An Economic History of Modern Britain, 2nd ec. (Cambridge, 1930), pp. 548 ff. Publisher's Note: The Hutt article, "The Factory System of the Early 19th Century," was reprinted in Capitalism and the Historians, ed. F. A. Hayek, essays by T. S. Ashton, L. M. Hacker, W. H. Hutt, B. de Jouvenel (Chicago: University of Chicago Press, 1954), pp. 160-188.
Part IV, Chapter 31
57. "The central wrong of the Capitalist system is neither the poverty of the poor nor the riches of the rich: it is the power which the mere ownership of the instruments of production gives to a relatively small section of the community over the actions of their fellow-citizens and over the mental and physical environment of successive generations. Under such a system personal freedom becomes, for large masses of the people, little better than a mockery.... What the Socialist aims at is the substitution, for this Dictatorship of the Capitalist, of govermnet of the people by the people and for the people, in all the industries and services by which the people live." Sidney and Beatrice Webb, A Constitution for the Socialist Commonwealth of Great Britain (London, 1920), pp. xiii ff. See also Cole, Guild Socialism Re-stated (London, 1920), pp. 12 ff.
58. "The market is a democracy where every penny gives a right to vote." Fetter, The Principles of Economics, pp. 394, 410. See also Schumpeter, Theorie der wirtschaftlichen Entwicklung (Leipzig, 1912), pp. 32 ff. Nothing is more topsy-turvy than a saying such as: "Who is less questioned at the building of a house in a large city than its future tenants?" Lenz, Macht unt Wirtshaft (Munich, 1915), p. 32. Every buider tries to build in a way that best suits the wishes of the future tenants, so that he may be able to let the buildings as quickly and profitably as possible. See also the striking remarks in Withers, The Case for Capitalism (London, 1920), pp. 41 ff.
59. People overlook this entirely when, like the Webbs, A Constitution for the Socialist Commonwealth of Great Britain, p. xii, they say that the workers have to obey the orders "of irresponsible masters intent on their own pleasure or their own gain."
Part V, Chapter 33
1. See, for instance, in Das Kapital the remarks on Bentham: "the most homely platitude," "only copied stupidly," "trash," "a genius of bourgeois stupidity," op. cit., Vol. I, p. 573; on Malthus, "a schoolboyishly superficial and clerically stilted plagiarism," Ibid., Vol. I, p. 580. Publisher's Note: In the English edition of Marx, Capital, Volume I, these quotations appear on p. 668 (Bentham) and P. 675 n3 (Malthus).
2. Thus Marxism finds it easy to ally with Islamic zealotism. Full of pride the Marxist Otto Bauer cries: "In Turkestan and Azerbaijan monuments to Marx stand opposite the mosques, and the Mullah in Persia mingles quotations from Marx with passages from the Koran when he calls the people to the Holy War against European Imperialism." See Otto Bauer, "Marx als Mahnung" in Der Kampf, XVI, 1923, p. 83.
5. On the socialist tendency in painting see Muther, Geschichte der Malerei im 19. Jahrhundert (Munich, 1893), Vol. II. pp. 186 ff.; Coulin, Die sozialistische Weltanschauung in der franzöisischen Malerei (Leipzig, 1909), pp. 85 ff.
Part V, Chapter 34
8. This even Brentano has to admit, who otherwise boundlessly overvalues the effects of labour legislation. "The imperfect machine had replaced the family father with child labour ... the perfected machine makes the father again the nourisher of family and gives the child back to the school ... Grown-up workers are now needed again and only those can be used who, by their higher standard of living, are equal to the heightened claims of the machines." Brentano, Über das Verkältnis von Arbeitslohn und Arbeitszeit zur Arbeitsleistung, 2nd ed. (Leipzig, 1893), p. 43.
9. Brentano, Über das Verhältnis von Arbeitslohn und Arbeitszeit zur Arbeitsleistung, pp. 11, 23 ff.; Brentano, Arbeitszeit und Arbeitslohn nach dem Kriege (Jena, 1919), p. 10; Stucken, "Theorie der Lohnsteigerung" (Schmollers Jahrbuch, 45th year, pp. 1152 ff.).
11. Engels, Die Lage der arbeitenden Klasse in England, 2nd ed. (Stuttgart, 1892), p. 178. Publisher's Note: In English, The Condition of the Working Class in England in 1844, with a Preface written in 1892 (London, George Allen & Unwin, Ltd., 1892), p. 177.
15. The Kapp Putsch (March 13, 1920) was both symptom and product of the post World War I revolutionary turmoil in Germany. Gustav Noske's (1868-1946) new army, organized by the post-war Majority Socialist government to crush the left, revolted against the government and Wolfgang Kapp (1868-1922), founder of the Fatherland Party, was placed in office. Karl Legien (1861-1920) leader of the right wing German trade unions, then called a general strike. Response to this rightwing move was tremendous and the Putsch promptly collapsed. The two competing Socialist Parties then came to terms and formed a coalition administration in April 1920, which excluded the extreme leftists and Communists from political power (Pub.).
16. The speech, translated into German, has been published by Bernstein under the title Lohn, Preis und Profit. I quote from the third edition, which appeared in Frankfurt in 1910. Publisher's Note: The speech by Marx was published originally in English as Value, Price and Profit, ed. Eleanor Marx Aveling (Chicago: Charles H. Kerr & Co., 1910).
18. Adolf Weber, Der Kampf zwischen Kapital und Arbeit, 3rd and 4th eds. (Tüyingen, 1921), pp. 384 ff.; Robbins, Wages (London, 1926), pp. 58 ff.; Hutt, The Theory of Collective Bargaining (London, 1930), pp. 1 ff.; also my Kritik des Interventionismus (Jena, 1929), pp. 12 ff.; 79 ff.; 133 ff. Publisher's Note: Hutt's The Theory of Collective Bargaining was reprinted in 1954 by the Free Press of Glencoe, Illinois. Preface to the American edition is by Ludwig von Mises. Please also note that in the English edition of Mises' A Critique of Interventionism, the page references are pp. 26 ff., 95 ff., and 148 ff., respectively.
20. Technische Nothilfe, established September 1919 to help provide essential services during strikes, lock-outs and natural cataclysms. A voluntary politically neutral association, under the German Ministry of Interior, with 260,000 members in 1928, converted into a public agency in 1939, dissolved by the Allied Occupational Forces in 1945, then replaced by a government institution, Technisches Hilfswerk, in 1953 to give assistance during catastrophes (Pub.).
22. Goldscheid, Staatssozialismus oder Staatskapitalismus (Vienna, 1917); Sozialisierung der Wirtschaft oder Staatsbankerott (Vienna, 1919); against: Schumpeter, Die Krise des Steuerstaates (Graz and Leipzig, 1918).
28. See my Theory of Money and Credit (London, 1934), pp. 339 ff.; also my Geldwertstabilisierung und Konjunkturpolitik (Jena, 1928), pp. 43 ff. Publisher's Note: Mises' Theory of Money and Credit has been reprinted since the 1934 edition cited here (Yale, 1953), (FEE, 1971), and (Liberty Press, 1981). Mises' Geldwertstabilisierung und Konjunkturpolitik is included in the anthology, On the Manipulation of Money and Credit, edited by Percy L. Greaves, Jr., translated by Bettina Bien Graves, under the title "Monetary Stabilization and Cyclical Policy," pp. 57-171. This particular citation is to pp. 118 ff. of the English translation.
29. For a criticism of National Socialist doctrine see my Kritik des Interventionismus (Jena, 1929), pp. 91 ff.; also Karl Wagner, "Brechung der Zinsknechtschaft?" in Jahrbücher für Nationalökonomie und Statistik, Third Series, Vol. LXXIX, pp. 790 ff. Publisher's Note: In the English edition of Kritik des Interventionismus, p. 107.
30. The best characterization of destructionism is in the words with which Stourm tried to describe the financial policy of the Jacobins: "L'esprit financier des jacobins consista exclusivement en ceci: epuiser à outrance le présent, en sacrifiant l'avenir. Le lendemain ne compta jamais pour eux: les affaires furent menées chaque jour comme s'il s'agissait du dernier: tel fut le caractère distinctif de tous les actes de la Révolution. Tel est aussi le secret de son étonnante durée: la déprédation quotidienne des réserves accumulées chez une nation riche et puissante fit surgir des ressources inattendues, dépassant toute prévision." (The financial spirit of the Jacobins consisted exclusively of this: Consume in the present to the utmost at the expense of the future. Tomorrow never counted for them: Activities were conducted each day as if that day were the last: Such was the distinctive spirit of all the actions of the Revolution. Such is also the secret of its surprising duration: The daily plundering of the accumulated reserves of a rich and powerful nation brought forth resources beyond all expectations.) And it applies word for word to the German inflation policy of 1923 when Stourm goes on: "Les assignats, tant qu'ils valurent quelque chose, si peu que ce fût, inondèrent le pays en quantités sans cesse progressives. La perspective de la faillite n'arrêta pas un seul instant les émissions. Elles ne cessèrent que sur le refus absolu du public d'accepter, même à vil prix, n'importe quelle sorte de papier-monnaie." (The assignats, so long as they were worth anything, as little as that might be, flooded the country in ever-increasing quantities. The prospect of their collapse did not stop the emissions for a single instant; they stopped issuing them only when the public absolutely refused to accept, even when dirt cheap, any kind of paper money.) Stourm, Les Finances de l'Ancien Régime et de la Révolution (Paris, 1885), Vol. II, p. 388.
Part V, Chapter 35
32. "Beaucoup d'ouvriers, et non les meilleurs, préférent le travail payé à la journée au travail à tache. Beaucoup d'entrepreneurs, et non les meilleurs, préféraient les conditions qu'ils espèrent pouvoir obtenir d'u,i État socialiste à celles que leur fait un régime de libre concurrence. Sous ce régime les entrepreneurs sont des 'fonctionnaires' payés a la tâche; avec une organisation socialiste ils déviendraient des 'fonctionnaires' payés à la journée." (Many workers, and not the best, prefer to be paid by the day and not by the work completed. Many entrepreneurs, and not the best, prefer what they can hope to obtain from a socialist state to that which a free competitive system would award them. Under such a competitive system, entrepreneurs are the "officials" paid for the work completed; under a socialist organization, they would become "officials" paid by the day.) Pareto, Cours d'Economie Politique, Vol. II, p. 97n.
34. The Junker is not concerned with the maintenance of private property as disposal over the means of production, but rather with maintaining it as title to a special source of income. Therefore State Socialism has easily won him over. It is to secure him his privileged income.
38. This, of course, is true also of the German nation. Almost the whole intelligentsia of Germany is socialistic: in national circles it is State or, as one usually says today, National Socialism, in Catholic circles, Church Socialism, in other circles, Social-Democracy or Bolshevism.
39. Johann Bockelson (also spelled Beukelsz, Boockelszoon, Buckholdt or Bockholdt) (c. 1508-1535) was better known as John of Leiden. He and Bernt Knipperdolling (also Bernhardt or Berend Knipperdollinck) (c. 1490-1536) were both Dutch and followers of the Anabaptist Jan, or Johann Matthysz (also Matthisson or Matthyszoon). In 1533 the Anabaptists took over Munster. Bockelson became burgomaster. A charismatic fanatic, Bockelson often engaged in wild excesses, even beheading one of his four wives himself in a fit of frenzy. Anabaptist-held Munster was besieged and Matthysz was killed in 1534. Bockelson succeeded him as "prophet." Knipperdolling, at first a rival of Bockelson's, became an abject follower. Munster was taken from the Anabaptists in 1535. Both Bockelson and Knipperdolling were then cruelly executed (Pub.).
40. Freud, Totem und Tabu (Vienna, 1913), pp. 62 ff. Publisher's Note: In English, "Totem and Taboo," in The Standard Edition of The Complete Psychological Works of Sigmund Freud (London: Hogarth; New York: Macmillan, 1953).
71. The Hölz riot was a communist uprising in Germany (March 1921 in Mansfeldischen), led by World War I veteran Max Hölz (1889-1933). Hölz was sentenced to life imprisonment as a result, granted amnesty in 1928, and then left Germany for the Soviet Union (Pub.)
73. Benda, La trahison des clercs (Paris, x927). Publisher's Note: In English, The Treason of the Intellectuals (New York: William Morrow, 1928) and The Betrayal of the Intellectuals (Boston: Beacon Press, 1955)
74. Stahlhelm was an association of German World War veterans, established 1918. Cagoulards were members of a secret French extreme rightist, terrorist organization, the Cagoule. It was responsible for several assassinations of socialists and Italian anti-fascists and it collaborated with the Nazis and the French Vichy government during WWII (Pub.).