But, whilst we regard any propagandism for community of property in land as a fatal reaction, we do not oppose a reform of the present system of land ownership in a direction towards co-operative proprietorship; in a period of unprecedented economic intensity and a constant increase of population, not only private but federal proprietorship seems indispensable. In conclusion, let us add the authority of Aristotle in confirmation of the propositions laid down in this chapter. In spite of his imperfect conceptions regarding capital, his arguments against Plato's communism are well worth quoting. He starts from a most important fact in human experience, that "all men regard most what is their own, and care less for common property, or only just as much as concerns them "; that the brother or father of two thousand would be worse off than the cousin of a few. Which is better, he asks, for every one to say "this is mine," while they apply it equally to two thousand or ten thousand, or to say "this is mine" under our present form of government? "for sure," he says, "it is better for any one to be a nephew in his private capacity than a son after this manner." See "Politics," Book ii., 3. (Congreve ed., p. 51 et seq.; Bohn's trans., p. 38.) Again, this great philosopher of antiquity shows how devoted liberality can only exist where there are close personal relations; "a little sweet mingled with much water disappears in the mixture." Respecting the three kinds of agricultural communism by the state, he fears a chief difficulty would arise in the dissatisfaction of those "who receive less though they work more." And in this respect Aristotle pointedly shows how that which Proudhon calls the "extortion practised by the powerful against the weak" will take place also in a ARISTOTLE versus SOCIALISM. 249 community of goods; he recommends therefore private property. He shows that private property, so far from being the cause of quarrels and crimes, rather tends by a careful demarcation of meum and tuum to establish peace and contentment as far as possible. The likeli hood of increased quarrels in the ideal communistic state is shown by the fact that even good friends are likely to fall out in a journey. Thus he defends property against communistic complaints ancient and modern. He also points out how liberality prompted by moral motives has a place in the economic system; "from a principle of virtue," he says, "they will perform good offices to each other according to the proverb 'all things are common among friends.”” He is not ignorant of the enjoyment which lies in the consciousness of possessing and being able to distribute property, and that communism would prevent liberality; for, he says, without private property no one can appear liberal, or do any generous action." He is finally very decided against reducing society too much to state government. He shows how those who would make the state too much one (τοῖς λίαν ἓν ποιοῦσι Tην Tóλ) destroy thereby its very existence, it would be the same as wishing to reduce "symphony to homophony, or rhythm to one single foot." Such are the opinions of that great political and social economist; they show how far he was from sharing the opinions of modern socialists, who would reduce all forms of society to one monotonous system. 66 CHAPTER III. Capitalistic Forms of Industry, Property, and Income.—Function of Capital in Production and Distribution.-Comparative View and Analysis of the different Forms of Industry Private, Co-operative, and Combined.-Objective Power of Capital, and Subjective Functions of the Capitalist in the various Forms of Industry.-Results of the foregoing Comparison in favour of the Co-operative System.—Permanent use of all Forms vindicated. The gradual Morphology of Economic Forms culminating in Federalism.—Income in the forms of Interest, Profit, Rent, specially Ground-rent.—The Rights of Property, Private and Collective, not excluded from the Federal System.-Prospects of the ultimate Triumph of Federal Principles, leading to a better Distribution of Property and Income. IN our modern economic system the leading organ, the motor of all economic exertion, as has been repeatedly stated, is capital and capitalistic enterprise. The position of the capitalist, and the nature of capitalistic forms of industry and property therefore, demand a separate and fuller treatment in this chapter. In the earlier part of this volume we have dwelt on the importance of capitalistic enterprise, and have pointed out how the movements of all productive forces are dependent on and directed by capital. We shall now endeavour to analyse, and compare with each other, the various capitalistic forms of industry, showing their relative merits and adaptability as well as their mutual dependence. But before doing so we must premise what applies in general to all capitalistic forms. We have to remind the reader that, the soul of all capitalistic forms of industry CAPITALISTIC ENTERPRISE IMPORTANT. 251 being competition, the motive force in the economic process is chiefly self-interest. The instruments, on the other hand, are in every case capital property and organized labour. The manufacturer of woollen goods requires the raw material, wool, in the first instance, which has been previously prepared for him by the sheep farmer and others, passing through several hands before it reaches him. He requires besides machinery, buildings, etc., in order to transform the raw material into articles of wearing apparel. And in order to this he must have property, or capital, for carrying on his business. So too, in order to the best organization of labour, his own as well as that of the employed, money or previously accumulated capital property is required, to maintain the labourers during the process of production; whether it be private capital or the invested capital of others who share the profits, some capital there must be to begin the business at all. The world's commerce and the economic organization of society in this way depend entirely on capitalistic enterprise. In the production of wealth the leadership of capital has been proved to be indispensable (see Book I., chap. iv.). So too, in the distribution of it, the enterprising capitalists make excellent general paymasters of society. They, in the existing order of things, like so many appointed agents in a wonderfully simple system of discharging the claims and liquidating the debts of mankind, do the work of distributing national wealth. They do this unconsciously indeed, whilst pursuing their own objects; but they do it more business-like and more justly than the best paid officials could do in a communistic or socialistic society. To make this clear, we may allude to the importance of that portion of enterprising capital which is known as working or circulating capital, used either for the purpose of paying wages, or the purchase of raw material, etc., etc. Whole generations of labourers, in a manufacturing district, may secure constant employment in, and devote their undivided attention to, this particular branch of industry; and this simply because an enterprising capitalist and his successors devote themselves to some particular manufactures. The labourer pays those who work for him in supplying him with the necessaries of life, out of the wages fund of the capitalist who employs him. He, the capitalist, again makes himself paid for his capital and labour, in the sale of manufactured goods. He becomes thus a mediator between both the interested parties, the labourer and the public, and unnecessary conflicts between these negotiating parties are avoided by the simple process of paying wages. Again, by means of the fund set apart for the purchase of raw material and goods, the cloth manufacturer, in paying for the required wool, coal, and oil used in preparing the articles for his future customers, pays once for all the wages of Australian sheep farmers, who get ready the raw material, of the shippers, and various labourers engaged in its transport. He pays the miner who gets the coal, and the grower of rape-seed which yields the oil, or those who procure petroleum, as the case may be, in Galicia or America. So too he pays for the rent of land, the use of machinery, of buildings, and the means of conveyance, and all this for services and uses, dating back perhaps many years, and performed may be in another hemisphere. A long chain of persons employed before and after the manufacture of a given article is thus made more or less dependent on the enterprising capitalist who embarks at his own risk in its manu |