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tive, declared for State control of production. The Russian Socialists, generally known as Anarchists, except in methods differ little from those of other nations. Their chief aim is the abolition of the central despotism and the establishment of free federation of free associations, that is to say, the universal adoption of the Mir or Russian communal village government.

In the United States, after the early community experiments, organized socialism dates from 1868 with the founding of the German Labor Association

which became a section of the Inter 8. Ea the national. In 1874 was organized the

states. Py of North America. In 1897 a rival socialislparty was organized, which, on receiving large accessions from the older party in 1899, took as its title the Socialist Party. In 1908 the Socialist Party polled 420,464 votes.

V. Demands of Organized Socialists: Socialistic parties are agreed on the principle of collective ownership and administration of the factors of production, the means of transportation and communication, and the method of distribution. In regard to the application of the details socialists are widely at variance. Whether all land, all machinery, all wage-paying shall be controlled by government are matters on which are held diverse views, though the political programs generally demand complete nationalization. While desiring to abolish rent paid to landowners, socialists expect rent to be paid to the State. Interest on loans and dividends on stock are regarded as unearned income which should be abolished. As the State cares for the individual, socialists demand that inheritance be denied, the savings of all passing to the State on their death. The immediate demands of the European socialistic parties call for little more than the freedom and protection enjoyed by the American citizen. The Russian desires the abolition of the central government; the German, of the paternal State; the French desire the State to assume the entire industrial direction. The control of industry by restriction, direction, and publicity, exercised by the state and federal governments as it is administered in this land, inasmuch as it is exercised collectively, is socialism as far as it extends. In the multitudinous duties of the factory inspector, in protective labor laws, in the limitation of the labor of women and children, and in the control of corporations by commission, the American state employs a direction of industry which is socialistic.

VI. Socialism Untried: The socialistic state or cooperative commonwealth of thorough-going socialism has never proved itself by experiment. What has been tried, has been the socialistic community within the competitive state. A few such communities, founded on strong religious sentiment, have survived a century. The majority, exhibiting a purely economic socialism, have been short-lived. Whether, therefore, an economic organization, possessing the materials and conducting the production of all economic goods, could be made successful, is a question purely theoretical. Cooperative societies for production and distribution have maintained themselves successfully in

the presence of competition, especially in Belgium and England; but these enjoy the stimulus of competition. The claims made by socialistic writers are, therefore, based merely on conjecture, a condition to be remembered in estimating the advantages claimed for the system.

VII. Advantages Claimed: The chief claims of advantage over the competitive system may be thus stated: (1) The saving of the capital wasted in duplicating productive agencies, as parallel railways and light, telephone and telegraph systems on the same territory, etc. (2) The saving of competitive advertising, trade solicitation, and the like. (3) Scientific adjustment of production to consumption, thus avoiding economic crises. (4) The guaranty of a comfortable living to all men. (5) The abolition of the middle-man in disposal of goods. (6) The development of unselfishness throughout society. (7) The abolition of litigation concerning property. (8) The termination of trade disputes and strikes.

VIII. The Claims Considered: An examination of these claims reveals their weakness. It is evident that State socialism involves a radical overturning of the economic basis of society. To approve itself to calm judgment, it must be shown not only that State socialism must be more effective than the present system, but also that it would be better than any possible modification of the present system. Over against the above claims, considered in order, may be stated the following: (1) Duplication is not necessarily waste. Parallel railways often prove their value by developing new regions for increased market supply. The operation of the economic law of combination tends to the elimination of unnecessary duplication, while by government regulation unwise duplication may be checked. (2) Under socialism a large amount of advertising would still be necessary to inform the public of the usefulness of State products. Combination and agreement have the tendency to reduce wasteful competitive advertising. All the necessary saving might be had apart from socialism. (3) It has always been to the interest of producers to make a scientific adjustment of production to consumption. Thus far there is no known method sufficient for the task. It remains to be proved that human foresight can prevent economic crises. The socialist claim is sheer assumption. It must be shown in what way and by what wisdom this adjustment can be made, and also that it would be impossible under the individualist system. (4) By discouragement of the captains of industry, demoralization of the most thrifty and skilful workers, and denial of adequate rewards to stimulate invention, socialism would disastrously impair the

productivity of society. All would be approximately on the same level, which would be a condition of general poverty. (5) The present middle-men would be largely replaced by officials required to manage the distribution of the products. Even under competition there is a tendency to eliminate the middle-men . The claim remains to be proved.

(6) Far from developing a spirit of unselfishness, socialism, by its denial of just reward to skill and diligence, would produce a spirit of discontent on