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CHAPTER 1

I

IF WE look beneath the surface of our public affairs, we can discern one fundamental fact, namely: a great redistribution of power between society and the State. This is the fact that interests the student of civilization. He has only a secondary or derived interest in matters like price-fixing, wage-fixing, inflation, political banking, "agricultural adjustment," and similar items of State policy that fill the pages of newspapers and the mouths of publicists and politicians. All these can be run up under one head. They have an immediate and temporary importance, and for this reason they monopolize public attention, but they all come to the same thing; which is, an increase of State power and a corresponding decrease of social power.

It is unfortunately none too well understood that, just as the State has no money of its own, so it has no power of its own. All the power it has is what society gives it, plus what it confiscates from time to time on one pretext or another; there is no other source from which State power can be drawn. Therefore every assumption of State power, whether by gift or seizure, leaves society with so much less power. There is never, nor can there be, any strengthening of State power without a corresponding and roughly equivalent depletion of social power.

Moreover, it follows that with any exercise of State power, not only the exercise of social power in the same direction, but the disposition to exercise it in that direction, tends to dwindle. Mayor Gaynor astonished the whole of New York when he pointed out to a correspondent who had been complaining about the inefficiency of the police, that any citizen has the right to arrest a malefactor and bring him before a magistrate. "The law of England and of this country," he wrote, "has been very careful to confer no more right in that respect upon policemen and constables than it confers on every citizen." State exercise of that right through a police force had gone on so steadily that not only were citizens indisposed to exercise it, but probably not one in ten thousand knew he had it.

Heretofore in this country sudden crises of misfortune have been met by a mobilization of social power. In fact (except for certain institutional enterprises like the home for the aged, the lunatic-asylum, city-hospital and county-poorhouse) destitution, unemployment, "depression"and similar ills, have been no concern of the State, but have been relieved by the application of social power. Under Mr. Roosevelt, however, the State assumed this function, publicly announcing the doctrine, brand-new in our history, that the State owes its citizens a living. Students of politics, of course, saw in this merely an astute proposal for a prodigious enhancement of State power; merely what, as long ago as 1794, James Madison called "the old trick of turning every contingency into a resource for accumulating force in the government"; and the passage of time has proved that they were right. The effect of this upon the balance between State power and social power is clear, and also its effect of a general indoctrination with the idea that an exercise of social power upon such matters is no longer called for.

It is largely in this way that the progressive conversion of social power into State power becomes acceptable and gets itself accepted. [1] When the Johnstown flood occurred, social power was immediately mobilized and applied with intelligence and vigour. Its abundance, measured by money alone, was so great that when everything was finally put in order, something like a million dollars remained. If such a catastrophe happened now, not only is social power perhaps too depleted for the like exercise, but the general instinct would be to let the State see to it. Not only has social power atrophied to that extent, but the disposition to exercise it in that particular direction has atrophied with it. If the State has made such matters its business, and has confiscated the social power necessary to deal with them, why, let it deal with them. We can get some kind of rough measure of this general atrophy by our own disposition when approached by a beggar. Two years ago we might have been moved to give him something; today we are moved to refer him to the State's relief-agency. The State has said to society, You are either not exercising enough power to meet the emergency, or are exercising it in what I think is an incompetent way, so I shall confiscate your power, and exercise it to suit myself. Hence when a beggar asks us for a quarter, our instinct is to say that the State has already confiscated our quarter for his benefit, and he should go to the State about it.

Every positive intervention that the State makes upon industry and commerce has a similar effect. When the State intervenes to fix wages or prices, or to prescribe the conditions of competition, it virtually tells the enterpriser that he is not exercising social power in the right way, and therefore it proposes to confiscate his power and exercise it according to the State's own judgment of what is best. Hence the enterpriser's instinct is to let the State look after the consequences. As a simple illustration of this, a manufacturer of a highly specialized type of textiles was saying to me the other day that he had kept his mill going at a loss for five years because he did not want to turn his workpeople on the street in such hard times, but now that the State had stepped in to tell him how he must run his business, the State might jolly well take the responsibility.

The process of converting social power into State power may perhaps be seen at its simplest in cases where the State's intervention is directly competitive. The accumulation of State power in various countries has been so accelerated and diversified within the last twenty years that we now see the State functioning as telegraphist, telephonist, match-peddler, radio-operator, cannon-founder, railway-builder and owner, railway-operator, wholesale and retail tobacconist, shipbuilder and owner, chief chemist, harbour-maker and dockbuilder, housebuilder, chief educator, newspaper-proprietor, food-purveyor, dealer in insurance, and so on through a long list.[2]

It is obvious that private forms of these enterprises must tend to dwindle in proportion as the energy of the State's encroachments on them increases, for the competition of social power with State power is always disadvantaged, since the State can arrange the terms of competition to suit itself, even to the point of outlawing any exercise of social power whatever in the premises; in other words, giving itself a monopoly. Instances of this expedient are common; the one we are probably best acquainted with is the State's monopoly of letter-carrying. Social power is estopped by sheer fiat from application to this form of enterprise, notwithstanding it could carry it on far cheaper, and, in this country at least, far better. The advantages of this monopoly in promoting the State's interests are peculiar. No other, probably, could secure so large and well-distributed a volume of patronage, under the guise of a public service in constant use by so large a number of people; it plants a lieutenant of the State at every country-crossroad. It is by no means a pure coincidence that an administration's chief almoner and whip-at-large is so regularly appointed Postmaster-general.

Thus the State "turns every contingency into a resource" for accumulating power in itself, always at the expense of social power; and with this it develops a habit of acquiescence in the people. New generations appear, each temperamentally adjusted - or as I believe our American glossary now has it, "conditioned" - to new increments of State power, and they tend to take the process of continuous accumulation as quite in order. All the State's institutional voices unite in confirming this tendency; they unite in exhibiting the progressive conversion of social power into State power as something not only quite in order, but even as wholesome and necessary for the public good.

II

In the United States at the present time, the principal indexes of the increase of State power are three in number. First, the point to which the centralization of State authority has been carried. Practically all the sovereign rights and powers of the smaller political units - all of them that are significant enough to be worth absorbing - have been absorbed by the federal unit; nor is this all. State power has not only been thus concentrated at Washington, but it has been so far concentrated into the hands of the Executive that the existing regime is a regime of personal government. It is nominally republican, but actually monocratic; a curious anomaly, but highly characteristic of a people little gifted with intellectual integrity. Personal government is not exercised here in the same ways as in Italy, Russia or Germany, for there is as yet no State interest to be served by so doing, but rather the contrary; while in those countries there is. But personal government is always personal government; the mode of its exercise is a matter of immediate political expediency, and is determined entirely by circumstances.

This regime was established by a coup d'état of a new and unusual kind, practicable only in a rich country. It was effected, not by violence, like Louis-NapolTon's, or by terrorism, like Mussolini's, but by purchase. It therefore presents what might be called an American variant of the coup d'état .[3]

Our national legislature was not suppressed by force of arms, like the French Assembly in 1851, but was bought out of its functions with public money; and as appeared most conspicuously in the elections of November, 1934, the consolidation of the coup d'état was effected by the same means; the corresponding functions in the smaller units were reduced under the personal control of the Executive.[4]

This is a most remarkable phenomenon; possibly nothing quite like it ever took place; and its character and implications deserve the most careful attention.

A second index is supplied by the prodigious extension of the bureaucratic principle that is now observable. This is attested prima facie by the number of new boards, bureaux and commissions set up at Washington in the last two years. They are reported as representing something like 90,000 new employees appointed outside the civil service, and the total of the federal pay-roll in Washington is reported as something over three million dollars per month.[5]

This, however, is relatively a small matter. The pressure of centralization has tended powerfully to convert every official and every political aspirant in the smaller units into a venal and complaisant agent of the federal bureaucracy. This presents an interesting parallel with the state of things prevailing in the Roman Empire in the last days of the Flavian dynasty, and afterwards. The rights and practices of local self-government, which were formerly very considerable in the provinces and much more so in the municipalities, were lost by surrender rather than by suppression. The imperial bureaucracy, which up to the second century was comparatively a modest affair, grew rapidly to great size, and local politicians were quick to see the advantage of being on terms with it. They came to Rome with their hats in their hands, as governors, Congressional aspirants and such-like now go to Washington. Their eyes and thoughts were constantly fixed on Rome, because recognition and preferment lay that way; and in their incorrigible sycophancy they became, as Plutarch says, like hypochondriacs who dare not eat or take a bath without consulting their physician.

A third index is seen in the erection of poverty and mendicancy into a permanent political asset. Two years ago, many of our people were in hard straits; to some extent, no doubt, through no fault of their own, though it is now clear that in the popular view of their case, as well as in the political view, the line between the deserving poor and the undeserving poor was not distinctly drawn. Popular feeling ran high at the time, and the prevailing wretchedness was regarded with undiscriminating emotion, as evidence of some general wrong done upon its victims by society at large, rather than as the natural penalty of greed, folly or actual misdoings; which in large part it was. The State, always instinctively "turning every contingency into a resource" for accelerating the conversion of social power into State power, was quick to take advantage of this state of mind. All that was needed to organize these unfortunates into an invaluable political property was to declare the doctrine that the State owes all its citizens a living; and this was accordingly done. It immediately precipitated an enormous mass of subsidized voting-power, an enormous resource for strengthening the State at the expense of society.[6]

III

There is an impression that the enhancement of State power which has taken place since 1932 is provisional and temporary, that the corresponding depletion of social power is by way of a kind of emergency-loan, and therefore is not to be scrutinized too closely. There is every probability that this belief is devoid of foundation. No doubt our present regime will be modified in one way and another; indeed, it must be, for the process of consolidation itself requires it. But any essential change would be quite unhistorical, quite without precedent, and is therefore most unlikely; and by an essential change, I mean one that will tend to redistribute actual power between the State and society. [7]

In the nature of things, there is no reason why such a change should take place, and every reason why it should not. We shall see various apparent recessions, apparent compromises, but the one thing we may be quite sure of is that none of these will tend to diminish actual State power.

For example, we shall no doubt shortly see the great pressure-group of politically-organized poverty and mendicancy subsidized indirectly instead of directly, because State interest can not long keep pace with the hand-over-head disposition of the masses to loot their own Treasury. The method of direct subsidy, or sheer cash-purchase, will therefore in all probability soon give way to the indirect method of what is called "social legislation"; that is, a multiplex system of State-managed pensions, insurances and indemnities of various kinds. This is an apparent recession, and when it occurs it will no doubt be proclaimed as an actual recession, no doubt accepted as such; but is it? Does it actually tend to diminish State power and increase social power? Obviously not, but quite the opposite. It tends to consolidate firmly this particular fraction of State power, and opens the way to getting an indefinite increment upon it by the mere continuous invention of new courses and developments of State-administered social legislation, which is an extremely simple business. One may add the observation for whatever its evidential value may be worth, that if the effect of progressive social legislation upon the sum-total of State power were unfavourable or even nil, we should hardly have found Prince de Bismarck and the British Liberal politicians of forty years ago going in for anything remotely resembling it.

When, therefore, the inquiring student of civilization has occasion to observe this or any other apparent recession upon any point of our present regime,[8] he may content himself with asking the one question, What effect has this upon the sum-total of State power? The answer he gives himself will show conclusively whether the recession is actual or apparent, and this is all he is concerned to know.

There is also an impression that if actual recessions do not come about of themselves, they may be brought about by the expedient of voting one political party out and another one in. This idea rests upon certain assumptions that experience has shown to be unsound; the first one being that the power of the ballot is what republican political theory makes it out to be, and that therefore the electorate has an effective choice in the matter. It is a matter of open and notorious fact that nothing like this is true. Our nominally republican system is actually built on an imperial model, with our professional politicians standing in the place of the prætorian guards; they meet from time to time, decide what can be "got away with,"and how, and who is to do it; and the electorate votes according to their prescriptions. Under these conditions it is easy to provide the appearance of any desired concession of State power, without the reality; our history shows innumerable instances of very easy dealing with problems in practical politics much more difficult than that. One may remark in this connexion also the notoriously baseless assumption that party-designations connote principles, and that party-pledges imply performance. Moreover, underlying these assumptions and all others that faith in "political action"contemplates, is the assumption that the interests of the State and the interests of society are, at least theoretically, identical; whereas in theory they are directly opposed, and this opposition invariably declares itself in practice to the precise extent that circumstances permit.

However, without pursuing these matters further at the moment, it is probably enough to observe here that in the nature of things the exercise of personal government, the control of a huge and growing bureaucracy, and the management of an enormous mass of subsidized voting-power, are as agreeable to one stripe of politician as they are to another. Presumably they interest a Republican or a Progressive as much as they do a Democrat, Communist, Farmer-Labourite, Socialist, or whatever a politician may, for electioneering purposes, see fit to call himself. This was demonstrated in the local campaigns of 1934 by the practical attitude of politicians who represented nominal opposition parties. It is now being further demonstrated by the derisible haste that the leaders of the official opposition are making towards what they call "reorganization"of their party. One may well be inattentive to their words; their actions, however, mean simply that the recent accretions of State power are here to stay, and that they are aware of it; and that, such being the case, they are preparing to dispose themselves most advantageously in a contest for their control and management. This is all that "reorganization" of the Republican party means, and all it is meant to mean; and this is in itself quite enough to show that any expectation of an essential change of regime through a change of party-administration is illusory. On the contrary, it is clear that whatever party-competition we shall see hereafter will be on the same terms as heretofore. It will be a competition for control and management, and it would naturally issue in still closer centralization, still further extension of the bureaucratic principle, and still larger concessions to subsidized voting-power. This course would be strictly historical, and is furthermore to be expected as lying in the nature of things, as it so obviously does.

Indeed, it is by this means that the aim of the collectivists seems likeliest to be attained in this country; this aim being the complete extinction of social power through absorption by the State. Their fundamental doctrine was formulated and invested with a quasi-religious sanction by the idealist philosophers of the last century; and among peoples who have accepted it in terms as well as in fact, it is expressed in formulas almost identical with theirs. Thus, for example, when Hitler says that "the State dominates the nation because it alone represents it," he is only putting into loose popular language the formula of Hegel, that "the State is the general substance, whereof individuals are but accidents." Or, again, when Mussolini says, "Everything for the State; nothing outside the State; nothing against the State," he is merely vulgarizing the doctrine of Fichte, that "the State is the superior power, ultimate and beyond appeal, absolutely independent."

It may be in place to remark here the essential identity of the various extant forms of collectivism. The superficial distinctions of Fascism, Bolshevism, Hitlerism, are the concern of journalists and publicists; the serious student[9] sees in them only the one root-idea of a complete conversion of social power into State power. When Hitler and Mussolini invoke a kind of debased and hoodwinking mysticism to aid their acceleration of this process, the student at once recognizes his old friend, the formula of Hegel, that "the State incarnates the Divine Idea upon earth," and he is not hoodwinked. The journalist and the impressionable traveler may make what they will of "the new religion of Bolshevism"; the student contents himself with remarking clearly the exact nature of the process which this inculcation is designed to sanction.

IV

This process - the conversion of social power into State power - has not been carried as far here as it has elsewhere; as it has in Russia, Italy or Germany, for example. Two things, however, are to be observed. First, that it has gone a long way, at a rate of progress which has of late been greatly accelerated. What has chiefly differentiated its progress here from its progress in other countries is its unspectacular character. Mr. Jefferson wrote in 1823 that there was no danger he dreaded so much as "the consolidation [i.e., centralization] of our government by the noiseless and therefore unalarming instrumentality of the Supreme Court." These words characterize every advance that we have made in State aggrandizement. Each one has been noiseless and therefore unalarming, especially to a people notoriously preoccupied, inattentive and incurious. Even the coup d'état of 1932 was noiseless and unalarming. In Russia, Italy, Germany, the coup d'état was violent and spectacular; it had to be; but here it was neither. Under cover of a nationwide, State-managed mobilization of inane buffoonery and aimless commotion, it took place in so unspectacular a way that its true nature escaped notice, and even now is not generally understood. The method of consolidating the ensuing regime, moreover, was also noiseless and unalarming; it was merely the prosaic and unspectacular "higgling of the market," to which a long and uniform political experience had accustomed us. A visitor from a poorer and thriftier country might have regarded Mr. Farley's activities in the local campaigns of 1934 as striking or even spectacular, but they made no such impression on us. They seemed so familiar, so much the regular thing, that one heard little comment on them. Moreover, political habit led us to attribute whatever unfavourable comment we did hear, to interest; either partisan or monetary interest, or both. We put it down as the jaundiced judgment of persons with axes to grind; and naturally the regime did all it could to encourage this view.

The second thing to be observed is that certain formulas, certain arrangements of words, stand as an obstacle in the way of our perceiving how far the conversion of social power into State power has actually gone. The force of phrase and name distorts the identification of our own actual acceptances and acquiescences. We are accustomed to the rehearsal of certain poetic litanies, and provided their cadence be kept entire, we are indifferent to their correspondence with truth and fact. When Hegel's doctrine of the State, for example, is restated in terms by Hitler and Mussolini, it is distinctly offensive to us, and we congratulate ourselves on our freedom from the "yoke of a dictator's tyranny." No American politician would dream of breaking in on our routine of litanies with anything of the kind. We may imagine, for example, the shock to popular sentiment that would ensue upon Mr. Roosevelt's declaring publicly that "the State embraces everything, and nothing has value outside the State. The State creates right." Yet an American politician, as long as he does not formulate that doctrine in set terms, may go further with it in a practical way than Mussolini has gone, and without trouble or question. Suppose Mr. Roosevelt should defend his regime by publicly reasserting Hegel's dictum that "the State alone possesses rights, because it is the strongest." One can hardly imagine that our public would get that down without a great deal of retching. Yet how far, really, is that doctrine alien to our public's actual acquiescences? Surely not far.

The point is that in respect of the relation between the theory and the actual practice of public affairs, the American is the most un-philosophical of beings. The rationalization of conduct in general is most repugnant to him; he prefers to emotionalize it. He is indifferent to the theory of things, so long as he may rehearse his formulas; and so long as he can listen to the patter of his litanies, no practical inconsistency disturbs him - indeed, he gives no evidence of even recognizing it as an inconsistency.

The ablest and most acute observer among the many who came from Europe to look us over in the early part of the last century was the one who is for some reason the most neglected, notwithstanding that in our present circumstances, especially, he is worth more to us than all the de Tocquevilles, Bryces, Trollopes and Chateaubriands put together. This was the noted St.-Simonien and political economist, Michel Chevalier. Professor Chinard, in his admirable biographical study of John Adams, has called attention to Chevalier's observation that the American people have "the morale of an army on the march." The more one thinks of this, the more clearly one sees how little there is in what our publicists are fond of calling "the American psychology" that it does not exactly account for; and it exactly accounts for the trait that we are considering.

An army on the march has no philosophy; it views itself as a creature of the moment. It does not rationalize conduct except in terms of an immediate end. As Tennyson observed, there is a pretty strict official understanding against its doing so; "theirs not to reason why." Emotionalizing conduct is another matter, and the more of it the better; it is encouraged by a whole elaborate paraphernalia of showy etiquette, flags, music, uniforms, decorations, and the careful cultivation of a very special sort of comradery. In every relation to "the reason of the thing," however - in the ability and eagerness, as Plato puts it, "to see things as they are" - the mentality of an army on the march is merely so much delayed adolescence; it remains persistently, incorrigibly and notoriously infantile.

Past generations of Americans, as Martin Chuzzlewit left record, erected this infantilism into a distinguishing virtue, and they took great pride in it as the mark of a chosen people, destined to live forever amidst the glory of their own unparalleled achievements wie Gott in Frankreich . Mr. Jefferson Brick, General Choke and the Honourable Elijah Pogram made a first-class job of indoctrinating their countrymen with the idea that a philosophy is wholly unnecessary, and that a concern with the theory of things is effeminate and unbecoming. An envious and presumably dissolute Frenchman may say what he likes about the morale of an army on the march, but the fact remains that it has brought us where we are, and has got us what we have. Look at a continent subdued, see the spread of our industry and commerce, our railways, newspapers, finance-companies, schools, colleges, what you will! Well, if all this has been done without a philosophy, if we have grown to this unrivalled greatness without any attention to the theory of things, does it not show that philosophy and the theory of things are all moonshine, and not worth a practical people's consideration? The morale of an army on the march is good enough for us, and we are proud of it.

The present generation does not speak in quite this tone of robust certitude. It seems, if anything, rather less openly contemptuous of philosophy; one even sees some signs of a suspicion that in our present circumstances the theory of things might be worth looking into, and it is especially towards the theory of sovereignty and rulership that this new attitude of hospitality appears to be developing. The condition of public affairs in all countries, notably in our own, has done more than bring under review the mere current practice of politics, the character and quality of representative politicians, and the relative merits of this-or-that form or mode of government. It has served to suggest attention to the one institution whereof all these forms or modes are but the several, and, from the theoretical point of view, indifferent, manifestations. It suggests that finality does not lie with consideration of species, but of genus; it does not lie with consideration of the characteristic marks that differentiate the republican State, monocratic State, constitutional, collectivist, totalitarian, Hitlerian, Bolshevist, what you will. It lies with consideration of the State itself.

V

There appears to be a curious difficulty about exercising reflective thought upon the actual nature of an institution into which one was born and one's ancestors were born. One accepts it as one does the atmosphere; one's practical adjustments to it are made by a kind of reflex. One seldom thinks about the air until one notices some change, favourable or unfavourable, and then one's thought about it is special; one thinks about purer air, lighter air, heavier air, not about air. So it is with certain human institutions. We know that they exist, that they affect us in various ways, but we do not ask how they came to exist, or what their original intention was, or what primary function it is that they are actually fulfilling; and when they affect us so unfavourably that we rebel against them, we contemplate substituting nothing beyond some modification or variant of the same institution. Thus colonial America, oppressed by the monarchical State, brings in the republican State; Germany gives up the republican State for the Hitlerian State; Russia exchanges the monocratic State for the collectivist State; Italy exchanges the constitutionalist State for the "totalitarian" State.

It is interesting to observe that in the year 1935 the average individual's incurious attitude towards the phenomenon of the State is precisely what his attitude was towards the phenomenon of the Church in the year, say, 1500. The State was then a very weak institution; the Church was very strong. The individual was born into the Church, as his ancestors had been for generations, in precisely the formal, documented fashion in which he is now born into the State. He was taxed for the Church's support, as he now is for the State's support. He was supposed to accept the official theory and doctrine of the Church, to conform to its discipline, and in a general way to do as it told him; again, precisely the sanctions that the State now lays upon him. If he were reluctant or recalcitrant, the Church made a satisfactory amount of trouble for him, as the State now does. Notwithstanding all this, it does not appear to have occurred to the Church-citizen of that day, any more than it occurs to the State-citizen of the present, to ask what sort of institution it was that claimed his allegiance. There it was; he accepted its own account of itself, took it as it stood, and at its own valuation. Even when he revolted, fifty years later, he merely exchanged one form or mode of the Church for another, the Roman for the Calvinist, Lutheran, Zuinglian, or what not; again, quite as the modern State-citizen exchanges one mode of the State for another. He did not examine the institution itself, nor does the State-citizen today.

My purpose in writing is to raise the question whether the enormous depletion of social power which we are witnessing everywhere does not suggest the importance of knowing more than we do about the essential nature of the institution that is so rapidly absorbing this volume of power. [10] One of my friends said to me lately that if the public-utility corporations did not mend their ways, the State would take over their business and operate it. He spoke with a curiously reverent air of finality. Just so, I thought, might a Church-citizen, at the end of the fifteenth century, have spoken of some impending intervention of the Church; and I wondered then whether he had any better-informed and closer-reasoned theory of the State than his prototype had of the Church. Frankly, I am sure he had not. His pseudo-conception was merely an unreasoned acceptance of the State on its own terms and at its own valuation; and in this acceptance he showed himself no more intelligent, and no less, than the whole mass of State-citizenry at large.

It appears to me that with the depletion of social power going on at the rate it is, the State-citizen should look very closely into the essential nature of the institution that is bringing it about. He should ask himself whether he has a theory of the State, and if so, whether he can assure himself that history supports it. He will not find this a matter that can be settled offhand; it needs a good deal of investigation, and a stiff exercise of reflective thought. He should ask, in the first place, how the State originated, and why; it must have come about somehow, and for some purpose. This seems an extremely easy question to answer, but he will not find it so. Then he should ask what it is that history exhibits continuously as the State's primary function. Then, whether he finds that "the State" and "government" are strictly synonymous terms; he uses them as such, but are they? Are there any invariable characteristic marks that differentiate the institution of government from the institution of the State? Then finally he should decide whether, by the testimony of history, the State is to be regarded as, in essence, a social or an anti-social institution?

It is pretty clear now that if the Church-citizen of 1500 had put his mind on questions as fundamental as these, his civilization might have had a much easier and pleasanter course to run; and the State-citizen of today may profit by his experience.

 

CHAPTER 2

I

AS FAR back as one can follow the run of civilization, it presents two fundamentally different types of political organization. This difference is not one of degree, but of kind. It does not do to take the one type as merely marking a lower order of civilization and the other a higher; they are commonly so taken, but erroneously. Still less does it do to classify both as species of the same genus - to classify both under the generic name of "government," though this also, until very lately, has always been done, and has always led to confusion and misunderstanding.

A good example of this error and its effects is supplied by Thomas Paine. At the outset of his pamphlet called Common Sense, Paine draws a distinction between society and government. While society in any state is a blessing, he says, "government, even in its best state, is but a necessary evil; in its worst state, an intolerable one." In another place, he speaks of government as "a mode rendered necessary by the inability of moral virtue to govern the world." He proceeds then to show how and why government comes into being. Its origin is in the common understanding and common agreement of society; and "the design and end of government," he says, is "freedom and security." Teleologically, government implements the common desire of society, first, for freedom, and second, for security. Beyond this it does not go; it contemplates no positive intervention upon the individual, but only a negative intervention. It would seem that in Paine's view the code of government should be that of the legendary king Pausole, who prescribed but two laws for his subjects, the first being, Hurt no man, and the second, Then do as you please; and that the whole business of government should be the purely negative one of seeing that this code is carried out.

So far, Paine is sound as he is simple. He goes on, however, to attack the British political organization in terms that are logically inconclusive. There should be no complaint of this, for he was writing as a pamphleteer, a special pleader with an ad captandum argument to make, and as everyone knows, he did it most successfully. Nevertheless, the point remains that when he talks about the British system he is talking about a type of political organization essentially different from the type that he has just been describing; different in origin, in intention, in primary function, in the order of interest that it reflects. It did not originate in the common understanding and agreement of society; it originated in conquest and confiscation.[1]

Its intention, far from contemplating "freedom and security," contemplated nothing of the kind. It contemplated primarily the continuous economic exploitation of one class by another, and it concerned itself with only so much freedom and security as was consistent with this primary intention; and this was, in fact, very little. Its primary function or exercise was not by way of Paine's purely negative interventions upon the individual, but by way of innumerable and most onerous positive interventions, all of which were for the purpose of maintaining the stratification of society into an owning and exploiting class, and a propertyless dependent class. The order of interest that it reflected was not social, but purely antisocial; and those who administered it, judged by the common standard of ethics, or even the common standard of law as applied to private persons, were indistinguishable from a professional-criminal class.

Clearly, then, we have two distinct types of political organization to take into account; and clearly, too, when their origins are considered, it is impossible to make out that the one is a mere perversion of the other. Therefore, when we include both types under a general term like government, we get into logical difficulties; difficulties of which most writers on the subject have been more or less vaguely aware, but which, until within the last half-century, none of them has tried to resolve. Mr. Jefferson, for example, remarked that the hunting tribes of Indians, with which he had a good deal to do in his early days, had a highly organized and admirable social order, but were "without government." Commenting on this, he wrote Madison that "it is a problem not clear in my mind that [this] condition is not the best," but he suspected that it was "inconsistent with any great degree of population." Schoolcraft observes that the Chippewas, though living in a highly-organized social order, had no "regular" government. Herbert Spencer, speaking of the Bechuanas, Araucanians and Koranna Hottentots, says they have no "definite" government; while Parkman, in his introduction to The Conspiracy of Pontiac, reports the same phenomenon, and is frankly puzzled by its apparent anomalies.

Paine's theory of government agrees exactly with the theory set forth by Mr. Jefferson in the Declaration of Independence. The doctrine of natural rights, which is explicit in the Declaration, is implicit in Common Sense; [2] and Paine's view of the "design and end of government" is precisely the Declaration's view, that "to secure these rights, governments are instituted among men"; and further, Paine's view of the origin of government is that it "derives its just powers from the consent of the governed." Now, if we apply Paine's formulas or the Declaration's formulas, it is abundantly clear that the Virginian Indians had government; Mr. Jefferson's own observations show that they had it. Their political organization, simple as it was, answered its purpose. Their code-apparatus sufficed for assuring freedom and security to the individual, and for dealing with such trespasses as in that state of society the individual might encounter - fraud, theft, assault, adultery, murder. The same is as clearly true of the various peoples cited by Parkman, Schoolcraft and Spencer. Assuredly, if the language of the Declaration amounts to anything, all these peoples had government; and all these reporters make it appear as a government quite competent to its purpose.

Therefore when Mr. Jefferson says his Indians were "without government," he must be taken to mean that they did not have a type of government like the one he knew; and when Schoolcraft and Spencer speak of "regular" and "definite" government, their qualifying words must be taken in the same way. This type of government, nevertheless, has always existed and still exists, answering perfectly to Paine's formulas and the Declaration's formulas; though it is a type which we also, most of us, have seldom had the chance to observe. It may not be put down as the mark of an inferior race, for institutional simplicity is in itself by no means a mark of backwardness or inferiority; and it has been sufficiently shown that in certain essential respects the peoples who have this type of government are, by comparison, in a position to say a good deal for themselves on the score of a civilized character. Mr. Jefferson's own testimony on this point is worth notice, and so is Parkman's. This type, however, even though documented by the Declaration, is fundamentally so different from the type that has always prevailed in history, and is still prevailing in the world at the moment, that for the sake of clearness the two types should be set apart by name, as they are by nature. They are so different in theory that drawing a sharp distinction between them is now probably the most important duty that civilization owes to its own safety. Hence it is by no means either an arbitrary or academic proceeding to give the one type the name of government, and to call the second type simply the State.

II

Aristotle, confusing the idea of the State with the idea of government, thought the State originated out of the natural grouping of the family. Other Greek philosophers, labouring under the same confusion, somewhat anticipated Rousseau in finding its origin in the social nature and disposition of the individual; while an opposing school, which held that the individual is naturally anti-social, more or less anticipated Hobbes by finding it in an enforced compromise among the anti-social tendencies of individuals. Another view, implicit in the doctrine of Adam Smith, is that the State originated in the association of certain individuals who showed a marked superiority in the economic virtues of diligence, prudence and thrift. The idealist philosophers, variously applying Kant's transcendentalism to the problem, came to still different conclusions; and one or two other views, rather less plausible, perhaps, than any of the foregoing, have been advanced.

The root-trouble with all these views is not precisely that they are conjectural, but that they are based on incompetent observation. They miss the invariable characteristic marks that the subject presents; as, for example, until quite lately, all views of the origin of malaria missed the invariable ministrations of the mosquito, or as opinions about the bubonic-plague missed the invariable mark of the rat-parasite. It is only within the last half-century that the historical method has been applied to the problem of the State.[3] This method runs back the phenomenon of the State to its first appearance in documented history, observing its invariable characteristic marks, and drawing inferences as indicated. There are so many clear intimations of this method in earlier writers - one finds them as far back as Strabo - that one wonders why its systematic application was so long deferred; but in all such cases, as with malaria and typhus, when the characteristic mark is once determined, it is so obvious that one always wonders why it was so long unnoticed. Perhaps in the case of the State, the best one can say is that the coöperation of the Zeitgeist was necessary, and that it could be had no sooner.

The positive testimony of history is that the State invariably had its origin in conquest and confiscation. No primitive State known to history originated in any other manner.[4] On the negative side, it has been proved beyond peradventure that no primitive State could possibly have had any other origin.[5] Moreover, the sole invariable characteristic of the State is the economic exploitation of one class by another. In this sense, every State known to history is a class-State. Oppenheimer defines the State, in respect of its origin, as an institution "forced on a defeated group by a conquering group, with a view only to systematizing the domination of the conquered by the conquerors, and safeguarding itself against insurrection from within and attack from without. This domination had no other final purpose than the economic exploitation of the conquered group by the victorious group."

An American statesman, John Jay, accomplished the respectable feat of compressing the whole doctrine of conquest into a single sentence. "Nations in general," he said, "will go to war whenever there is a prospect of getting something by it." Any considerable economic accumulation, or any considerable body of natural resources, is an incentive to conquest. The primitive technique was that of raiding the coveted possessions, appropriating them entire, and either exterminating the possessors, or dispersing them beyond convenient reach. Very early, however, it was seen to be in general more profitable to reduce the possessors to dependence, and use them as labour-motors [economic slaves]; and the primitive technique was accordingly modified. Under special circumstances, where this exploitation was either impracticable or unprofitable, the primitive technique is even now occasionally revived, as by the Spaniards in South America, or by ourselves against the Indians. But these circumstances are exceptional; the modified technique has been in use almost from the beginning, and everywhere its first appearance marks the origin of the State. Citing Ranke's observations on the technique of the raiding herdsmen, the Hyksos, who established their State in Egypt about B.C. 2000, Gumplowicz remarks that Ranke's words very well sum up the political history of mankind.

Indeed, the modified technique never varies.

"Everywhere we see a militant group of fierce men forcing the frontier of some more peaceable people, settling down upon them and establishing the State, with themselves as an aristocracy. In Mesopotamia, irruption succeeds irruption, State succeeds State, Babylonians, Amoritans, Assyrians, Arabs, Medes, Persians, Macedonians, Parthians, Mongols, Seldshuks, Tatars, Turks; in the Nile valley, Hyksos, Nubians, Persians, Greeks, Romans, Arabs, Turks; in Greece, the Doric States are specific examples; in Italy, Romans, Ostrogoths, Lombards, Franks, Germans; in Spain, Carthaginians, Visigoths, Arabs; in Gaul, Romans, Franks, Burgundians, Normans; in Britain, Saxons, Normans."

Everywhere we find the political organization proceeding from the same origin, and presenting the same mark of intention, namely: the economic exploitation of a defeated group by a conquering group.

Everywhere, that is, with but the one significant exception. Wherever economic exploitation has been for any reason either impracticable or unprofitable, the State has never come into existence; government has existed, but the State, never. The American hunting tribes, for example, whose organization so puzzled our observers, never formed a State, for there is no way to reduce a hunter to economic dependence and make him hunt for you.[6] Conquest and confiscation were no doubt practicable, but no economic gain would be got by it, for confiscation would give the aggressors but little beyond what they already had; the most that could come of it would be the satisfaction of some sort of feud. For like reasons primitive peasants never formed a State. The economic accumulations of their neighbours were too slight and too perishable to be interesting;[7] and especially with the abundance of free land about, the enslavement of their neighbours would be impracticable, if only for the police-problems involved.[8]

It may now be easily seen how great the difference is between the institution of government, as understood by Paine and the Declaration of Independence, and the institution of the State. Government may quite conceivably have originated as Paine thought it did, or Aristotle, or Hobbes, or Rousseau; whereas the State not only never did originate in any of those ways, but never could have done so. The nature and intention of government, as adduced by Parkman, Schoolcraft and Spencer, are social. Based on the idea of natural rights, government secures those rights to the individual by strictly negative intervention, making justice costless and easy of access; and beyond that it does not go. The State, on the other hand, both in its genesis and by its primary intention, is purely anti-social. It is not based on the idea of natural rights, but on the idea that the individual has no rights except those that the State may provisionally grant him. It has always made justice costly and difficult of access, and has invariably held itself above justice and common morality whenever it could advantage itself by so doing.[9] So far from encouraging a wholesome development of social power, it has invariably, as Madison said, turned every contingency into a resource for depleting social power and enhancing State power.[10]

As Dr. Sigmund Freud has observed, it can not even be said that the State has ever shown any disposition to suppress crime, but only to safeguard its own monopoly of crime. In Russia and Germany, for example, we have lately seen the State moving with great alacrity against infringement of its monopoly by private persons, while at the same time exercising that monopoly with unconscionable ruthlessness. Taking the State wherever found, striking into its history at any point, one sees no way to differentiate the activities of its founders, administrators and beneficiaries from those of a professional-criminal class.

III

Such are the antecedents of the institution which is everywhere now so busily converting social power by wholesale into State power.[11] The recognition of them goes a long way towards resolving most, if not all, of the apparent anomalies which the conduct of the modern State exhibits. It is of great help, for example, in accounting for the open and notorious fact that the State always moves slowly and grudgingly towards any purpose that accrues to society's advantage, but moves rapidly and with alacrity towards one that accrues to its own advantage; nor does it ever move towards social purposes on its own initiative, but only under heavy pressure, while its motion towards anti-social purposes is self-sprung.

Englishmen of the last century remarked this fact with justifiable anxiety, as they watched the rapid depletion of social power by the British State. One of them was Herbert Spencer, who published a series of essays which were subsequently put together in a volume called The Man versus the State. With our public affairs in the shape they are, it is rather remarkable that no American publicist has improved the chance to reproduce these essays verbatim, merely substituting illustrations drawn from American history for those which Spencer draws from English history. If this were properly done, it would make one of the most pertinent and useful works that could be produced at this time. [12]

These essays are devoted to examining the several aspects of the contemporary growth of State power in England. In the essay called Over-legislation, Spencer remarks the fact so notoriously common in our experience, [13] that when State power is applied to social purposes, its action is invariably "slow, stupid, extravagant, unadaptive, corrupt and obstructive." He devotes several paragraphs to each count, assembling a complete array of proof. When he ends, discussion ends; there is simply nothing to be said. He shows further that the State does not even fulfil efficiently what he calls its "unquestionable duties" to society; it does not efficiently adjudge and defend the individual's elemental rights. This being so - and with us this too is a matter of notoriously common experience - Spencer sees no reason to expect that State power will be more efficiently applied to secondary social purposes. "Had we, in short, proved its efficiency as judge and defender, instead of having found it treacherous, cruel, and anxiously to be shunned, there would be some encouragement to hope other benefits at its hands."

Yet, he remarks, it is just this monstrously extravagant hope that society is continually indulging; and indulging in the face of daily evidence that it is illusory. He points to the anomaly which we have all noticed as so regularly presented by newspapers. Take up one, says Spencer, and you will probably find a leading editorial "exposing" the corruption, negligence or mismanagement of some State department. Cast your eye down the next column, and it is not unlikely that you will read proposals for an extension of State supervision.[14] . . . Thus while every day chronicles a failure, there every day reappears the belief that it needs but an Act of Parliament and a staff of officers to effect any end desired.[15] Nowhere is the perennial faith of mankind better seen."

It is unnecessary to say that the reasons which Spencer gives for the anti-social behaviour of the State are abundantly valid, but we may now see how powerfully they are reinforced by the findings of the historical method; a method which had not been applied when Spencer wrote. These findings being what they are, it is manifest that the conduct which Spencer complains of is strictly historical. When the town-dwelling merchants of the eighteenth century displaced the landholding nobility in control of the State's mechanism, they did not change the State's character; they merely adapted its mechanism to their own special interests, and strengthened it immeasurably.[16] The merchant-State remained an anti-social institution, a pure class-State, like the State of the nobility; its intention and function remained unchanged, save for the adaptations necessary to suit the new order of interests that it was thenceforth to serve. Therefore in its flagrant disservice of social purposes, for which Spencer arraigns it, the State was acting strictly in character.

Spencer does not discuss what he calls "the perennial faith of mankind" in State action, but contents himself with elaborating the sententious observation of Guizot, that "a belief in the sovereign power of political machinery" is nothing less than "a gross delusion." This faith is chiefly an effect of the immense prestige which the State has diligently built up for itself in the century or more since the doctrine of jure divino rulership gave way. We need not consider the various instruments that the State employs in building up its prestige; most of them are well known, and their uses well understood. There is one, however, which is in a sense peculiar to the republican State. Republicanism permits the individual to persuade himself that the State is his creation, that State action is his action, that when it expresses itself it expresses him, and when it is glorified he is glorified. The republican State encourages this persuasion with all its power, aware that it is the most efficient instrument for enhancing its own prestige. Lincoln's phrase, "of the people, by the people, for the people" was probably the most effective single stroke of propaganda ever made in behalf of republican State prestige.

Thus the individual's sense of his own importance inclines him strongly to resent the suggestion that the State is by nature anti-social. He looks on its failures and misfeasances with somewhat the eye of a parent, giving it the benefit of a special code of ethics. Moreover, he has always the expectation that the State will learn by its mistakes, and do better. Granting that its technique with social purposes is blundering, wasteful and vicious - even admitting, with the public official whom Spencer cites, that wherever the State is, there is villainy - he sees no reason why, with an increase of experience and responsibility, the State should not improve.

Something like this appears to be the basic assumption of collectivism. Let but the State confiscate all social power, and its interests will become identical with those of society. Granting that the State is of anti-social origin, and that it has borne a uniformly anti-social character throughout its history, let it but extinguish social power completely, and its character will change; it will merge with society, and thereby become society's efficient and disinterested organ. The historic State, in short, will disappear, and government only will remain. It is an attractive idea; the hope of its being somehow translated into practice is what, only so few years ago, made "the Russian experiment" so irresistibly fascinating to generous spirits who felt themselves hopelessly State-ridden. A closer examination of the State's activities, however, will show that this idea, attractive though it be, goes to pieces against the iron law of fundamental economics, that man tends always to satisfy his needs and desires with the least possible exertion. Let us see how this is so.

IV

There are two methods, or means, and only two, whereby man's needs and desires can be satisfied. One is the production and exchange of wealth; this is the economic means.[17] The other is the uncompensated appropriation of wealth produced by others; this is the political means. The primitive exercise of the political means was, as we have seen, by conquest, confiscation, expropriation, and the introduction of a slave-economy. The conqueror parceled out the conquered territory among beneficiaries, who thenceforth satisfied their needs and desires by exploiting the labour of the enslaved inhabitants.[18] The feudal State, and the merchant-State, wherever found, merely took over and developed successively the heritage of character, intention and apparatus of exploitation which the primitive State transmitted to them; they are in essence merely higher integrations of the primitive State.

The State, then, whether primitive, feudal or merchant, is the organization of the political means. Now, since man tends always to satisfy his needs and desires with the least possible exertion, he will employ the political means whenever he can - exclusively, if possible; otherwise, in association with the economic means. He will, at the present time, that is, have recourse to the State's modern apparatus of exploitation; the apparatus of tariffs, concessions, rent-monopoly, and the like. It is a matter of the commonest observation that this is his first instinct. So long, therefore, as the organization of the political means is available - so long as the highly-centralized bureaucratic State stands as primarily a distributor of economic advantage, an arbiter of exploitation, so long will that instinct effectively declare itself. A proletarian State would merely, like the merchant-State, shift the incidence of exploitation, and there is no historic ground for the presumption that a collectivist State would be in any essential respect unlike its predecessors; [19] as we are beginning to see, "the Russian experiment" has amounted to the erection of a highly-centralized bureaucratic State upon the ruins of another, leaving the entire apparatus of exploitation intact and ready for use. Hence, in view of the law of fundamental economics just cited, the expectation that collectivism will appreciably alter the essential character of the State appears illusory.

Thus the findings arrived at by the historical method amply support the immense body of practical considerations brought forward by Spencer against the State's inroads upon social power. When Spencer concludes that "in State-organizations, corruption is unavoidable," the historical method abundantly shows cause why, in the nature of things, this should be expected - vilescit origine tali. When Freud comments on the shocking disparity between State-ethics and private ethics - and his observations on this point are most profound and searching - the historical method at once supplies the best of reasons why that disparity should be looked for.[20] When Ortega y Gasset says that "Statism is the higher form taken by violence and direct action, when these are set up as standards," the historical method enables us to perceive at once that his definition is precisely that which one would make a priori.

The historical method, moreover, establishes the important fact that, as in the case of tabetic or parasitic diseases, the depletion of social power by the State can not be checked after a certain point of progress is passed. History does not show an instance where, once beyond this point, this depletion has not ended in complete and permanent collapse. In some cases, disintegration is slow and painful. Death set its mark on Rome at the end of the second century, but she dragged out a pitiable existence for some time after the Antonines. Athens, on the other hand, collapsed quickly. Some authorities think that Europe is dangerously near that point, if not already past it; but contemporary conjecture is probably without much value. That point may have been reached in America, and it may not; again, certainty is unattainable - plausible arguments may be made either way. Of two things, however, we may be certain: the first is, that the rate of America's approach to that point is being prodigiously accelerated; and the second is, that there is no evidence of any disposition to retard it, or any intelligent apprehension of the danger which that acceleration betokens.

Endnotes

Chapter 1 Notes

[1] The result of a questionnaire published in July, 1935, showed 76.8 per cent of the replies favourable to the idea that it is the State's duty to see that every person who wants a job shall have one; 20.1 per cent were against it, and 3.1 per cent were undecided.

[2] In this country, the State is at present manufacturing furniture, grinding flour, producing fertilizer, building houses; selling farm-products, dairy-products, textiles, canned goods, and electrical apparatus; operating employment-agencies and home-loan offices; financing exports and imports; financing agriculture. It also controls the issuance of securities, communications by wire and radio, discount rates, oil-production, power-production, commercial competition, the production and sale of alcohol, and the use of inland waterways and railways.

[3] There is a sort of precedent for it in Roman history, if the story be true in all its details that the army sold the emperorship to Didius Julianus for something like five million dollars. Money has often been used to grease the wheels of a coup d'état, but straight over-the-counter purchase is unknown, I think, except in these two instances.

[4] On the day I write this, the newspapers say that the President is about to order a stoppage on the flow of federal relief-funds into Louisiana, for the purpose of bringing Senator Long to terms. I have seen no comment, however, on the propriety of this kind of procedure.

[5] A friend in the theatrical business tells me that from the box-office point of view, Washington is now the best theatre-town, concert-town and general-amusement town in the United States, far better than New York.

[6] The feature of the approaching campaign of 1936 which will most interest the student of civilization will be the use of the four-billion-dollar relief-fund that has been placed at the President's disposal - the extent, that is, to which it will be distributed on a patronage-basis.

[7] It must always be kept in mind that there is a tidal-motion as well as a wave-motion in these matters, and that the wave-motion is of little importance, relatively. For instance, the Supreme Court's invalidation of the National Recovery Act counts for nothing in determining the actual status of personal government. The real question is not how much less the sum of personal government is now than it was before that decision, but how much greater it is normally now than it was in 1932, and in years preceding.

[8] As, for example, the spectacular voiding of the National Recovery Act.

[9] This book is a sort of syllabus or prTcis of some lectures to students of American history and politics - mostly graduate students - and it therefore presupposes some little acquaintance with those subjects. The few references I have given, however, will put any reader in the way of documenting and amplifying it satisfactorily.

[10] An inadequate and partial idea of what this volume amounts to, may be got from the fact that the American State's income from taxation is now about one third of the nation's total income! This takes into account all forms of taxation, direct and indirect, local and federal.

 

Chapter 2 Notes

[1] Paine was of course well aware of this. He says, "A French bastard, landing with an armed banditti, and establishing himself king of England against the consent of the natives, is in plain terms a very paltry rascally original." He does not press the point, however, nor in view of his purpose should he be expected to do so.

[2] In Rights of Man, Paine is as explicit about this doctrine as the Declaration is; and in several places throughout his pamphlets, he asserts that all civil rights are founded on natural rights, and proceed from them.

[3] By Gumplowicz, professor at Graz, and after him, by Oppenheimer, professor of politics at Frankfort. I have followed them throughout this section. The findings of these Galileos are so damaging to the prestige that the State has everywhere built up for itself that professional authority in general has been very circumspect about approaching them, naturally preferring to give them a wide berth; but in the long-run, this is a small matter. Honourable and distinguished exceptions appear in Vierkandt, Wilhelm Wundt, and the revered patriarch of German economic studies, Adolf Wagner.

[4] An excellent example of primitive practice, effected by modern technique, is furnished by the new State of Manchoukuo, and another bids fair to be furnished in consequence of the Italian State's operations in Ethiopia.

[5] The mathematics of this demonstration are extremely interesting. A rTsumT of them is given in Oppenheimer's treatise Der Staat, ch. I, and they are worked out in full in his Theorie der Reinen und Politischen Oekonomie.

[6] Except, of course, by predmption of the land under the State-system of tenure, but for occupational reasons this would not be worth a hunting tribe's attempting. Bicknell, the historian of Rhode Island, suggests that the troubles over Indian treaties arose from the fact that the Indians did not understand the State-system of land-tenure, never having had anything like it; their understanding was that the whites were admitted only to the same communal use of land that they themselves enjoyed. It is interesting to remark that the settled fishing tribes of the Northwest formed a State. Their occupation made economic exploitation both practicable and profitable, and they resorted to conquest and confiscation to introduce it.

[7] It is strange that so little attention has been paid to the singular immunity enjoyed by certain small and poor peoples amidst great collisions of State interest. Throughout the late war, for example, Switzerland, which has nothing worth stealing, was never raided or disturbed.

[8] Marx's chapter on colonization is interesting in this connexion, especially for his observation that economic exploitation is impracticable until expropriation from the land has taken place. Here he is in full agreement with the whole line of fundamental economists, from Turg(t, Franklin and John Taylor down to Theodor Hertzka and Henry George. Marx, however, apparently did not see that his observation left him with something of a problem on his hands, for he does little more with it than record the fact.

[9] John Bright said he had known the British Parliament to do some good things, but never knew it to do a good thing merely because it was a good thing.

[10] Reflections, 1.

[11] In this country the condition of several socially-valuable industries seems at the moment to be a pretty fair index of this process. The State's positive interventions have so far depleted social power that by all accounts these particular applications of it are on the verge of being no longer practicable. In Italy, the State now absorbs fifty per cent of the total national income. Italy appears to be rehearsing her ancient history in something more than a sentimental fashion, for by the end of the second century social power had been so largely transmuted into State power that nobody could do any business at all. There was not enough social power left to pay the State's bills.

[12] It seems a most discreditable thing that this century has not seen produced in America an intellectually respectable presentation of the complete case against the State's progressive confiscations of social power; a presentation, that is, which bears the mark of having sound history and a sound philosophy behind it. Mere interested touting of "rugged individualism" and agonized fustian about the constitution are so specious, so frankly unscrupulous, that they have become contemptible. Consequently collectivism has easily had all the best of it, intellectually, and the results are now apparent. Collectivism has even succceded in foisting its glossary of arbitrary definitions upon us; we all speak of our economic system, for instance, as "capitalist," when there has never been a system, nor can one be imagined, that is not capitalist. By contrast, when British collectivism undertook to deal, say with Lecky, Bagehot, Professor Huxley and Herbert Spencer, it got full change for its money. Whatever steps Britain has taken towards collectivism, or may take, it at least has had all the chance in the world to know precisely where it was going, which we have not had.

[13] Yesterday I passed over a short stretch of new road built by State power, applied through one of the grotesque alphabetical tentacles of our bureaucracy. It cost $87,348.56. Social power, represented by a contractor's figure in competitive bidding, would have built it for $38,668.20, a difference, roughly, of one hundred per cent!

[14] All the newspaper-comments that I have read concerning the recent marine disasters that befell the Ward Line have, without exception, led up to just such proposals!

[15] Our recent experiences with prohibition might be thought to have suggested this belief as fatuous, but apparently they have not done so.

[16] This point is well discussed by the Spanish philosopher Ortega y Gasset, The Revolt of the Masses, ch. XIII (English translation), in which he does not scruple to say that the State's rapid depletion of social power is "the greatest danger that today threatens civilization." He also gives a good idea of what may be expected when a third, economically-composite, class in turn takes over the mechanism of the State, as the merchant class took it over from the nobility. Surely no better forecast could be made of what is taking place in this country at the moment, than this: "The mass-man does in fact believe that he is the State, and he will tend more and more to set its machinery working, on whatsoever pretext, to crush beneath it any creative minority which disturbs it - disturbs it in any order of things; in politics, in ideas, in industry."

[17] Oppenheimer, Der Staat, ch. I. Services are also, of course, a subject of economic exchange.

[18] In America, where the native huntsmen were not exploitable, the beneficiaries - the Virginia Company, Massachusetts Company, Dutch West India Company, the Calverts, etc. - followed the traditional method of importing exploitable human material, under bond, from England and Europe, and also established the chattel-slave economy by importations from Africa. The best exposition of this phase of our history is in Beard's Rise of American Civilization, vol. 1, pp. 103-109. At a later period, enormous masses of exploitable material imported themselves by immigration; Valentine's Manual for 1859 says that in the period 1847-1858, 2,486,463 immigrants passed through the port of New York. This competition tended to depress the slave-economy in the industrial sections of the country, and to supplant it with a wage-economy. It is noteworthy that public sentiment in those regions did not regard the slave-economy as objectionable until it could no longer be profitably maintained.

[19] Supposing, for example, that Mr. Norman Thomas and a solid collectivist Congress, with a solid collectivist Supreme Court, should presently fall heir to our enormously powerful apparatus of exploitation, it needs no great stretch of imagination to forecast the upshot.

[20] In April, 1933, the American State issued half a billion dollars' worth of bonds of small denominations, to attract investment by poor persons. It promised to pay these, principal and interest, in gold of the then-existing value. Within three months the State repudiated that promise. Such an action by an individual would, as Freud says, dishonour him forever, and mark him as no better than a knave. Done by an association of individuals, it would put them in the category of a professional-criminal class.