UC-NRLF $B 273 flGT GIFT or fo| |< \ o \ ) ira[o]p1l< 20 \ ) | fo CONSTRUCTIVE SOCIALISM BY GEORGE THOMAS MILLAR PRICE TEN CENTS < ■ J 0CZZZD||CZ30CID||( l O I ) | CONSTRUCTIVE SOCIALISM BY GEORGE THOMAS MILLAR [3^ LQJ ^ ^ ^;^ ^ 'V../'^ PRICE TEN CENTS PUBLISHED BY THE VOLUNTARY COOPERATIVE ASSOCIATION LOS ANGELES, CALIFORNIA ,1913 Copyright, 1913, by The Voluntary Cooperative Association Constructive Socialism CHAPTER I. The Socialist Movement The social problems that confront us today- are caused by private ownership of land, mines, tools and all other means used in the produc- tion and distribution of wealth; and can only be solved by the collective ownership by the people of these means which are used socially. This social industrial system with the form of society resulting from it is termed Social- ism, but there are various beliefs in regard to the method or tactics to be used in attaining it. Political Socialism Political Socialists believe that the working class must be educated into class conscious- ness and by organizing themselves into a po- litical party, gain control of the government and then proceed to inaugurate Socialism. Industrial or Syndicalist Socialism Industrial Unionists or Syndicalists believe in using the general strike or other forcible means of gaining control and possession of the industries. Constructive Socialism The term "Constructive Socialism" is used here to designate the belief that having the 291799 4 CONSTRUCTIVE SOCIALISM legal right to own property in common, and that our economic activity and method of pro- ducing wealth being the fundamental physical factors ' in our development, we should com- mence changing the social system by organiz- ing into an Association to collectively acquire and own land and tools ; establish industries to produce the necessities of life and secure to the worker the product of his labor without rent, interest or profit; and with the purpose of extending this collective industrial organi- zation until by its power the present system has been conquered and abolished, thus secur- ing at once the benefit of living and working under sane conditions, as well as aiding in the surest manner the complete overthrow of Capitalism. It Can Be Done It can be done now because there are enough people who desire it, who know how to do it, and have the power and opportunity to in- augurate it at once. We have the essentials for all action, either individual or social : Ne- cessity, desire, intelligence and opportunity. One more is needed, the willingness to do it, and that exists but is quiescent because it is not generally taught that the power is in our hands. It can be successfully accomplished because collectively owned capital by the workers is a CONSTRUCTIVE SOCIALISM 5 greater economic force than capitalism. If it is not, it should never take its place. If it is, it should commence to demonstrate it now by that inherent force. It has a greater strength because it lacks all the weakness which capitalism derives through its organization for rent, interest and profit, with its parasites and wasted efforts. With all the strength of capitalism and none of its weakness, and with a more efficient organization it can meet capitalism on the economic field where it should and must meet it, and conquer it, as the Trusts have defeated competition in capital- ism by cooperation. All things of which we are cognizant have small beginnings, it is the law of progress and of all development. The small seed planted in the earth grows to a tree, dominating and compelling the earth to give it sustenance. We know of no other method on the earth or in the universe. It is the only logical method based on all that goes to make up human in- telligence from social evolution, the domain of nature, or even in the metaphysical or spiritual aspects of creation and growth. The CO- OPERATIVE COMMONWEALTH will be- gin the same way, and can only come from that beginning. On account of the teachings of the Socialist political parties it is very commonly assumed that this can not be done, and the failures of 6 CONSTRUCTIVE SOCIALISM some cooperative colonies or communities are quoted as evidence. But failure is the fore- runner of all practical human endeavor. Back of all mechanical construction lies a line of failures before it received the touch which made it successful, and if failure is to become our guide, all human advancement would stop until man became absolute in knowledge, but even this can only be gained through the ex- perience of both failures and successes. The failures of cooperative attempts only indicate that the correct method has not been used or the appropriate time arrived. CHAPTER II. Society and Its Development All forms of life have two aspects : the posi- tive and the negative; and man is not an ex- ception to this rule. He is an individual and also a social man, and his duty to society is as great as to himself, because without society he would not be what he is. Even in one genera- tion a man or woman, if completely separated from all human society from birth, would not have much more intelligence than the animals. So we owe our language and other intellectual acquirements which we display either mentally or physically, to society and thus from our CONSTRUCTIVE SOCIALISM 7 indebtedness to society we have incurred the obligation of the social man. Society is an organic unit composed of in- dividuals and also has two aspects; the social and individual. Our individual and social ac- tivity must necessarily take form and the so- cial industrial or economic system is the con- crete result of the thought and action of man- kind and is representative of his intelligence. The economic system creates necessity and determines what the next step will be, just as the position in which I am now standing in a degree determines where I shall stand next, but I have the freedom to go backward, for- ward or to either side; but necessity, desire and willingness enter in and all these factors act on each other and thus all are developed. Environment is not greater than man, be- cause man is its creator, and in creating it has developed necessity which demands a change, and intelligence to do it. In the beginning when man stood naked in nature's own en- vironment he made it subject according to his ability, and the same degree of superiority still exists. Man has advanced by going to extremes in making the social and then the individual as- pect the dominating force. In the tribal and patriarchal states, the social aspect was posi- tive and the individual negative. The indi- vidual aspect commenced to become positive 8 CONSTRUCTIVE SOCIALISM when slavery started by one tribe subjecting another in whole or in part, thus showing a disregard for the social forms and manifesting an individual superiority over it. Feudalism or serfdom was an advancement along the same line. Individualism has reached its full height in capitalism and is the dominating and controlling force of society, while the social aspect is negative. But individualism can not continue to control, because there must be a balance between the positive and negative forces, that is, between the social and indi- vidual aspects. It is only through the balance of these two forces that human justice can be had. Individualism has developed mankind to demand more and more justice and this can not be had until there is a readjustment of so- ciety and both the social forces are equally in control. The COOPERATIVE COMMON- WEALTH is the only means whereby this adjustment can be made. Individualistic so- cial reformers are continually trying to get social justice and at the same time keep in- dividualism as the dominating force of society, which is absolutely impossible until a balance of social forces has been consumated by the elimination of the power of one class to ex- ploit society. Confusion of thought often arises from terms which may be used to express different ideas. CONSTRUCTIVE SOCIALISM 9 Personal individuality or personal expres- sion is not curtailed by placing more power in the social form, instead it is limited by making the individual aspect of society pre- dominant over the social. Personal or individual expression will find the most freedom when the two aspects of so- ciety are balanced. This desire to maintain individualism as the dominant force in society is social selfishness. Human unselfishness becomes a fact only when the two aspects of the individual man have come into harmony. All the social problems, warfare and injustice of society are due to the dominating force of individualism — that is, social selfishness. Private capitalism or the competitive system is the expression of this individualism of selfish- ness in the social economic system. Capital- ists are not any more to blame for it than any other individual regardless of the class to which he belongs. The economic system cannot change itself, but by its growth, it creates the necessity and opportunity, which it has done. The responsi- bility is with the Socialists to establish the economic force to make this change, which they can do, because wealth can be produced at less cost by Socialist cooperation and naturally would become the ruling system. 10 CONSTRUCTIVE SOCIALISM CHAPTER III. Method of Social Progress All the individuals composing a race or na- tion may not be as powerful as their environ- ment, but if that particular social unit is progressing, there must be one class so great as to be able to carry the whole body forward. The capitalist class performs that function in our present society. Those who had the char- acter fitted to become dominant in competitive society, became a part of that class. They were necessary and are still necessary until a stronger economic class eliminates them. They developed in society as a result of the individualistic mentality of the people, and have been the controllers of the economic system, compelling others to follow where they led, which has resulted in our present civilization. It was not the advance of one class alone, for society must be viewed as a unit which has many parts or organs, as the human or other bodies have. They have individual in- terests but are compelled by the law of life — Unity — to work together for the preservation, development and advancement of the whole body. This is self-evident when we see that society or the social man has advanced through this system to a point where the lowest class has more opportunities for intellectual expres- CONSTRUCTIVE SOCIALISM 11 sion than the highest classes at the beginning of capitalism. Feudalism or serfdom developed by the same method and from the same cause; the force or means used being in accord with the men- tality of the people of that time, and the op- portunity which the economic conditions af- forded. The trading class may have been the nucleus from which the capitalist class arose. We do not know when it started, but know it was from a small beginning, as all things commence, and that it was augmented by individuals from all classes who in the competitive struggle showed themselves fit to act that part. It was not an existing class which was first educated to class consciousness, but one that developed. As it developed, opposing interests and laws were compelled to yield to its influence and power. It received support from other classes a great part of whom became wage workers, actuated by self interest, and following the social instinct of individualism as represented in the ruling class. They were unconscious of the work which they were destined to perform; while social cooperation, which is a union of the individ- ual and social forces has more consciousness of its plans, purposes and work to be ac- complished, because the balancing of these two social forces gives the social cooperative 12 CONSTRUCTIVE SOCIALISM mentality, which is more intelligent and pow- erful. The political revolutions which occurred in the acquirement of economic power followed the inception of the system in ratio to its acquired force and necessity of expansion. This is the natural order which we see in all nature; the revolution of the bursting seed takes place after it has been subjected to its water and earth environment over which it finally dominates as a plant or tree. The revolution at the birth of the human body takes place after the required development of the physical form. The Socialist economic education may be likened to the human de- sire which results in the conception of the child; but the desire must be manifested in such a manner as will produce a physical body, then in proper time the revolution of birth occurs. So it must be in the growth of the new social man; the Socialist political education will result in the inauguration of the COOPERATIVE COMMONWEALTH, which may lie unnoticed in the social womb until its growing economic power will bring it social recognition, and that will be the be- ginning of the SOCIAL REVOLUTION— when SOCIALISM is actually in practice, and no longer a theory. So the logic of history and nature tells us that the COOPERATIVE CLASS must form by acquiring and develop- CONSTRUCTIVE SOCIALISM 13 ing economic power; and through the power obtain complete control, political and other- wise. CHAPTER IV. Inefficiency in Our Present Industrial System Wealth is used or consumed in two ways; part of it we use or consume individually, and part of it we use socially. At the pres- ent time there are two kinds of social prop- erty, viz : public property of all kinds which is socially owned and used, and all the capital or means used socially in the production and distribution of wealth in any form. This lat- ter is privately owned but it is social property because it would not be any use to its own- ers unless socially used, and society is forced from necessity to use it. Private ownership is the result of the com- petitive system of industry supported by the people because they are individualistic, not having developed the social side of their being. The profit which capitalists make from the workers or the rent and interest taken from society, is not all personally used by them. They return part of it for extend- ing and enlarging the socially used but privately controlled capital. This is the social function which they per- 14 CONSTRUCTIVE SOCIALISM form for society, and we remunerate them by- allowing them to retain any amount they de- sire for their own personal use and enabling them to increase this amount continually. This function is made necessary only through the ignorance of people to perform it for themselves. The capitalists have made this social function more costly to society by hir- ing people to do it, while they are chiefly en- gaged in spending what they do not produce. The competitive system is a further expense to society, and therefore to all the people in- dividually because it makes necessary, or gives the opportunity for duplication of capital and labor, and for many useless business agencies, such as middlemen, lawyers, brokers, bankers, land agents and advertisers, etc., and their employees. Society is therefore in the position of a business man who employs 100 men to do the work which could be done by 50 men. Under a socially owned and controlled in- dustrial system, the same division of wealth would be made for social and individual use, but we would save the expense and waste which results from supporting these useless classes in society, thus giving all people greater returns for their labor. There is no law to prevent people from forming an efficient organization now for collective ownership and production, and CONSTRUCTIVE SOCIALISM 15 thereby eliminate the payment of rent, profit or interest to any one. As the trusts defeated the competitive sys- tem among capitalists by cooperating and eliminating waste, so would we defeat the competitive system among workers by com- bining to produce for ourselves, and by edu- cation through demonstration and economic pressure, become the dominant social system. CHAPTER V. The Method and Power of Socialist Coopera- tive Industry The full benefits of cooperative production can not be obtained in a single industry, such as farm, mine, factory or store, because we would still be paying interest, profit and rent on all other goods bought for use. There must be a chain of production from the earth to the consumer. The principle to be followed is the collective ownership of the tools and land, and producing for use. The organization and facilities must be large enough to produce a great part of the intel- lectual and physical necessities desired by the members. Production for use will give us economic power. For instance if we had a wheat field, flour mill and bake shop with all the best machinery, there would be no wasted labor 16 CONSTRUCTIVE SOCIALISM or profits to middlemen ; and if by this method we produced a loaf of bread for 2 cents (fig- uring labor at the market price) while capi- talistic citizens were paying 5 cents for the same sized loaf, we would have 3 cents towards getting luxuries which our capital- istic masters have. Apply the same principle to other industries, grow our own beef, slaughter the cattle, make leather, shoes and leather goods, grow and manufacture our own woolen goods, etc. We can easily see how we would be getting more for our labor. This disproves the assertion often made that Socialist cooperation can not be successful while the capitalistic system is in existence. Instead of being an obstruction, it is an ad- vantage. Why? Because Socialistic labor can produce wealth at less cost than com- petitive labor. If the cost of living is a determining factor in the price of labor, and the price of labor is a determining factor in the cost of goods, then when we have by the elimination of Rent, Interest and Profit produced our living at less cost, are we not in the position to place goods on the market at less cost than our competitors? It is impossible to estimate the exploitation and wasteful methods of the present system, and therefore impossible to correctly figure the amount of advantage that we would gain CONSTRUCTIVE SOCIALISM 17 by cooperative labor, but we know it is prob- ably beyond our greatest calculation. If any merchant or manufacturer possessed the same knowledge of how he could make his plant more productive and did not do it, we could only say that he was worthy of defeat by his competitors. Economic power is any means or methods whereby labor can be made more productive It is for this reason that machinery exists and is continually improved, and why the trusts were organized and is powerful. If this economic power is not in applied Socialism, then why do we want it? If it is in it, then why not use it? All forms of life contain the attribute or germ by which it will expand, extend or grow into another form, and capitalism does and necessarily must contain the means whereby it will grow into another system. All it needs is people with understanding to see and use it. Trust promoters lost no time in put- ting their ideas into effect when they became cognizant of how to form a more efficient and productive business organization. Are we with all our scientific knowledge less in- telligent? The day of theoretical Socialism is past and the time has arrived for CONSTRUCT- IVE SOCIALISTS to go to work. The law of progression must be followed in all things, 18 CONSTRUCTIVE SOCIALISM the man must be a child first, so a commence- ment must be made, but the people who in- augurate the CO-OPERATIVE COMMON- WEALTH will get just as much benefit as those that come later. In fact they will get more as the pleasure of building it will be so great. It must be organized with a plan in ac- cordance with the purpose to be attained, by a sufficient number of people to derive the economic advantage of the system. Monopolies would not be any hindrance or disadvantage to us, for in producing for our own use we would be without competition, and in producing for sale, which is the equiv- alent of exchanging products for those we could not economically produce, we would have an advantage, as we would dispense with the middlemen and carry our products to the consumer through socialized distributing agen- cies. In the beginning the field where there is no monopoly would be our starting point, such as food products, butter and eggs for instance, by having our own creameries and cold stor- age and no middlemen. Even if the market was overloaded we could sell at less without loss, in competition with products from in- dividually worked farms, with a horde of middlemen between them and the market. This offers an opportunity which may not al- ways exist, for farming will be put on a fac- CONSTRUCTI VE SOCIALISM 19 tory basis some time, and we should be the people to do it. As we increased in strength the monopolies would be no obstacle, for in producing for our own use the cost of our living would be low, even when we enjoyed the best of everything, while the competitive worker in exchanging his dollar for food, shelter and clothing, con- tributes to all the exploitation and waste of the system, and monopolies paying dividends on watered stock and bonds. In using rail- roads or monopolized machinery we would have the same privileges as others, and com- petition is compelling laws to be enacted which prevents discrimination or favoritism ; but the foundation of our strength lies in producing the things we need for our own use. This makes us immune from attack. Even if we never tried to exploit the mar- ket, except to the extent of selling enough for exchange of things we could not produce, the propaganda would be in demonstrating how working people could have for use the best products of mankind instead of the poor- est. Then we would not have to throw tons of appeal to reason at their heads, for animal instinct without reason would drive them to demand Socialism. We have no limit but the world, and no enemy but our own ignorance and lack of de- termination to cooperate. 20 CONSTRUCTIVE SOCIALISM CHAPTER VI. Political Action Socialist political action has been an educa- tional force and was necessary to our state of mentality as a forerunner to the use of economic power, just as the tallow candle was a necessary step towards electric light. But its teaching that politics is the means whereby we will get the COOPERATIVE COMMON- WEALTH, and that we must wait for its in- auguration until we have gained political con- trol of the Government, is an unreasonable assumption, a fantastic dream. As a belief it served its purpose as all other discarded hu- man beliefs have done; and it must also be dismissed if we are to get Socialism. Political power is subservient to economic power and grows spontaneously as economic power is gained, and the doctrinal fabric that political power must be had first has no found- ation in the logic of human progress. This belief is founded on false premises based on muddled interpretations of history and human progress, resulting in an errone- ous view of economic determinism and the class struggle. It was not the economic force of feudalism that destroyed feudalism, but the economic CONSTRUCTIVE SOCIALISM 21 force of capitalism in operation. If we take this as a precedent, then it will be the eco- nomic force of Socialism when established which will overcome capitalism. Economic force is a determining factor in making an economic change necessary, and also gives the economic opportunity to those capable of grasping it. The capitalists had this capability. Under this individualistic system there is constant warfare between individuals, and so- ciety is divided into many economic classes; but there is no basis in history for believing that an exploited class can be educated by self interest to class consciousness and there- by gain economical control. The capitalist class is only the form or in- strument whereby the social structure ex- presses its adherence to the principle of Indi- vidualism. The capitalist class may be more cohesive or class conscious, because this is a quality necessary in a governing class, but the majority of all classes vote the same way at the polls although they are divided into differ- ent political parties, because they are governed by the same principles of Individualism. The principle of Socialism is greater than Indivi- dualism, but the principle is only latent until it has an economic instrument through which to become active. It can only become a con- trolling force by economic organization. 22 CONSTRUCTIVE SOCIALISM According to the laws of life it would show retrogression instead of progression if the So- cialist political party was allowed to assume control of the government with the purpose of abolishing this system, because their weak- ness is self evident from the fact that they have not grasped the economic opportunity which is open to them ; and it is an Utopian dream to think that the present governing class would allow themselves to be thrown out by a weaker body, or even wait for such a crisis to occur. The arousing of class hatred and enmity would destroy itself before its object could be attained, and this method of propaganda is in direct opposition to the principle of coopera- tion. Class enmity to be effectual must have full expression, which is violence, and that can not be held in leash until the opportune time. Even now it is discernable that in- flamatory ideas can not as safely be expressed as in the past, and the class war as a means of propaganda is nearly at an end, and those who persist in it will be eliminated. Under this system private interests are nec- essarily behind public affairs, and are a con- stant temptation to Socialist politicians to play politics, and as the party increases in strength and offices can be gained, this also becomes a temptation for the manipulation of party ma- chinery to satisfy personal ambitions. Add to CONSTRUCTIVE SOCIALISM 23 this the internal strife within the party and we can see a large dissipation of Socialist en- ergy which if applied directly to the estab- lishment of the Cooperative Commonwealth would give immediate and permanent results. The establishment of this Republic by force can not be taken as an example, because this was only an adjustment to the economic force already in existence. The freedom of the American chattel slaves is no criterion, be- cause they did not have the right to work for wages, while we have the right and power to cooperate or inaugurate Socialism at any time. Politics is an attribute of the individualistic mind used in the personal warfare of this system. It is a mixture of the cunning of the animal with the growing mind of man, but the whole purpose of this system is to teach us to do things by reason and mathematical precision, and these are the qualities which must be inherent in Constructive Socialists, and in the Cooperative Commonwealth. Pol- itics will not build a machine or grow pota- toes. Constructive work is not done with the cunning of the animal sneaking up and catch- ing its prey unawares. Politics is the product of the system and similar to it in character. The best Socialist policy now is to commence getting Socialism, then we could have Socialist political power. 24 CONSTRUCTIVE SOCIALISM The only reason which could be given in support of this theory that Socialism should or can only come through political action, and made to appear logical, is that the people hav- ing democratic pov^er should be guided by reason and use that power to put it into ef- fect; but it is not reasonable to expend years and years of time and energy to gain a right and opportunity which now exists. Why should people who refuse to put their theories into practice be regarded as worthy of power? The Socialist philosophers while filling vol- umes on historical materialism, overlook or evade the only logical conclusion to be de- duced from it, that economic power precedes political power. The belief that economic power would be seized by a class conscious working class political party was manufac- tured, then their philosophy made to fit this idea. Politics will very likely be used to establish the cooperative commonwealth after it has by demonstration made itself a necessity to the people, especially working people. If all the mechanical inventions had been held in abeyance until a majority of the people had been educated to a belief in their utility, we would still be in the Dark Ages. The steam engine or telegraph would still exist in theory. It was only by their installation that a belief in their utility was gained; because a CONSTRUCTIVE SOCIALISM 25 majority of the people can never understand a theory until it is demonstrated, and Social- ism in operation is just like a labor saving machine; it demonstrates its practicability and has economic pressure besides. This does not compel us to forego our po- litical rights. We should use every advan- tage which the system gives us, nor has the political work been lost, for it will result in an economic organization which will realize the hope which has been the life of thousands of Socialist workers. There is no logical proof that Government ownership or State Capitalism would develop into Socialism. It is more likely to develop into a higher feudalism, for it bears all the marks of feudalistic character, in imploring our masters to do this for our relief^ instead of being intelligently aggressive and doing it for ourselves by constructive work now. There could not be any better method of pre- venting or delaying Socialism and keeping people in the individualistic mentality than Government ownership. Socialist political power should be used to build up a socialist economic organization . where wealth is produced for the use of its members, and interchanged between them, while government ownership is not for the benefit of its workers. They are still working under competition. The natural place to com- 26 CONSTRUCTIVE SOCIALISM mence is in producing food, clothing and shelter. This must be done before Socialist political power can be acquired. CHAPTER VII. Acquiring the Capital The construction of Socialism will be ac- complished by people from all classes, but the working class are able to raise more capital among themselves than all of the people could have raised 100 years ago. The working peo- ple of this country have billions of dollars in the Savings Banks, which shows they could capitalize themselves if they had the intel- ligence to do it. Investment companies of every description find a large part of their backing from this class, and never fail to make their appeal to them, even if it is only $1.00 per month, show- ing that shrewd exploiters recognize the power which this class possesses to accumulate capi- tal. And Socialists have aided this in not edu- cating people to use this power for themselves, in continuously and persistently preaching the erroneous doctrine that the Cooperative Com- monwealth can only come by politics. As an illustration of the power which people have but do not use, we will suppose the CONSTRUCTI VE SOCIALISM 27 one million persons in the United States who desire Socialism, should form an association and each one contract to contribute to a com- mon fund $18.00 yearly for 10 years. This fund to be used as capital to secure land and build up industries. The members to be gradually placed at work as the fund increased owning their own capital they would not pay rent or interest nor profit on their labor. But instead would set aside 25% on the capital in- vested for expansion on extension. In ten years this capital would amount to over five hundred million dollars, even if there was not any money set aside for expansion the first three years. If $500.00 is the amount necessary to pro- vide land and tools for each person, then at the end of the ten years all the people could be at work for themselves. As they would have collective ownership of the social prop- erty, then in the same degree as Rent, In- terest and Profit was eliminated, in that de- gree they would have socialism. If the labor unions had adopted this plan J ten years ago, they would now be working for themselves instead of working for wages. While it is not likely that a million people will take such direct action at the beginning, an association can be formed and a com- mencement made on this plan and gradually educate people to see how easy it is to capi- 28 CONSTRUCTIVE SOCIALISM talize themselves socially. It can be done in monthly installments so small that no one would be denied an opportunity to become a member. All of them could not go to work at once, nor would all be fitted to the first work, just as on a building one trade has to wait until other mechanics have created the opportunity for them to work, so it would be in this. The members would be called in the order of the occupations necessary for the work open, and in the order of their joining. Each one to have the option of refusing to go when called, or to leave or go back to the Commonwealth when he desired. This would be an injury to none and freedom to all. A membership should also include care or em- ployment when incapacitated or partly so from usual occupation. In case of death of member, care or work for dependents with rights of full membership; also hospitals and care for the aged. Those who could capitalize themselves could go to work at once or when they desired. The problem of collecting the capital is only a matter of willingness and de- termination to do it. CONSTRUCTIVE SOCIALISM 29 CHAPTER VIII. Commence on the Land We should start on the land, because it is the basis of all industry, and we could pro- duce the bulk of our own food, which is the first necessity of life. There is always a mar- ket for agricultural products, and land worked cooperatively on a large scale should be more profitable than in small holdings where the largest and most modern machinery can not be used. The opportunity to do this will not always be here, for some time the exploited cooperation or factory system will be applied to the land. This is a weak spot in the pres- ent system which we should take advantage of now, for it makes the laying of the founda- tion of the Socialist system easier. Location must be made on the land because it gives access to raw materials for the fin- ished products necessary to life without pay- ing tribute for transportation to the railroads, which would have to be done if location was first made in the city. By starting on the land we cut ourselves off from a large part of Rent, Interest and Profit at once. This is a reason why Socialism should have its begin- ing in America, as land is plentiful here. In locating, the u-ltimate purpose as well as immediate wants should be kept in view. It 30 CONSTRUCTIVE SOCIALISM should be on a railroad. It should provide for expansion, until our greater economic force as well as example would compel surrounding land to come under our system. Minerals if not on the land should be within easy access, as well as facilities for stock raising to pro- vide woolen and leather goods as well as food, or to exploit the capitalist market if necessary or economical. The object should be to se- cure as diversified products as possible in one locality. Concentration of a large initial unit would give us power, not only among ourselves but on the capitalist system outside, which would be felt through our distributing agencies reach- ing out like tentacles into the capitalist sys- tem. Then other units would be established more easily than the first until the system was eliminated. A city should be built and planned both for beauty and utility. Which would provide for future growth as a whole and in part, and thus avoid building blemishes on the land- scape and monuments to ignorance, as indi- cated by present American cities. A city where every physical or intellectual want would be furnished by ourselves, from food to music and art. We would succeed not by depriving ourselves of anything but by having everything. CONSTRUCTIVE SOCIALISM 31 CHAPTER IX Collective Ownership There should be Collective ownership of the land, tools or other property used collectively, because the plan from the beginning must be in accordance with the object to be attained. A company can not be formed with stocks and bonds, or any other form which would show individual right to any part of the means of production and distribution; nor any in- terest or profit paid. None of these can be part of an organization formed for the purpose of securing the Cooperative Commonwealth, because it is contrary to its principle. Even if stock was only sold to workers, some would become dissatisfied, leave the col- ony, and if they sold or held that stock, we would have exploiters to that extent. If others bought the stock for investment, we would still have the old system in force. If one worker held more stock than another there would be exploitation. It would afford an op- portunity for political manipulation, and dis- sension from without and within. Whatever rights are given will be exercised, and if pri- vate ownership of the means of production is the foundation, we can only expect the war- fare and exploitation of a capitalist structure built upon it. If we desire the Cooperative 32 CONSTRUCTIVE SOCIALISM v/' Commonwealth we must have a foundation of Collectivism to build upon. There is abso- lutely no possibility of success by means which would give individual rights to social property. Stocks and bonds belong to Capital- ism and not to Socialism, and are a means of exploitation. That is their only use or purpose. If reason does not show us this, then the experience of cooperative colonies formed on this basis certainly gives us evi- dence of its folly. For the same reason the property should not be incumbered in any manner; for to abolish interest is the purpose of its establishment. Socialism can not be established by capital- v' ists, or by capitalistic methods; but by coop- erators who are willing to contribute to Col- lective capital. Nor can the Cooperative Com- monwealth be built by philanthropists and handed over already made. It must be con- structed by Socialists according to the prin- ciples of Socialism. The Collective property should be held and supervised by a permanent TRUSTEESHIP, under a Deed of Trust properly specifying the method of procedure and' terms of manage- ment. This is to avoid the principal cause of fail- ure in cooperative colonies through abused democracy, and to secure permanent social ownership. It makes it impossible for any CONSTRUCTIVE SOCIALISM 33 person or persons to divert or use the prop- erty for their own individual interests, and secures to each member the knowledge that the social property shall only be used for social benefit. While there should be democratic manage- ment it can not be left open to political in- trigue either through good or bad intentions; and by making these Trustees permanent all danger is removed of dissension or disruption caused by personal ambition to which we are all liable in this individualistic age. This is to be an industrial organization and should be managed in a business manner, and this form of organization gives assurance of that; it guards the property in the interest of all; takes away all power to injure, either from Trustees, or members or from outside in- fluences ,and yet gives no more power to the Trustees, because they are bound by the Trust Deed and amenable to the law which has al- ways been strict with these officers and al- ways will be under this system of private ownership. When fully organized the great- est or only duty of the Trustees would be to see that the affairs were being administered according to the Trust Deed. Management The management of business has changed with industrial development. 34 CONSTRUCTIVE SOCIALISM The formation of trusts or large corpora- tions whose business extends over large ter- ritory or into all parts of the world has changed the personal equation to one of prin- ciple. Formerly the successful business man was one who had personal knowledge and con- trol of every detail of the business. The captains of industry have been or are men with ability to organize a business ma- chine in which the personnel changes without interfering with its efficiency. There is as much difference between past and present business management as there is between the hand worked machine and the modern printing press. There should be persons at the head of each department who are experts at their par- ticular work who also have organizing ability. The heads of all departments would form a Board of Management or commission to direct and supervise all the work with possibly a general superintendent over all. A merit system or civil service commission should also be established, under which all positions requiring expert knowledge would be filled in the order of the abiHty of the applicants. This would prevent favoritism or the building of personal political machines. Democracy should also be in force to give all workers a voice in the direction of the so- CONSTRUCTIVE SOCIALISM 35 cial affairs, and to choose from those who have qualified the person they wish to serve in any position. Back of this would be the Trustees to hold the property and prevent it being diverted to any other use than the orig- inal intention. Wages should not be paid because they would not be a part of our system. Time checks should be used exchangeable for pro- ducts, or at our own bank for money if nec- essary. Money is used as a means of exploitation, and is bought by labor, and if used among ourselves for exchange would mean labor tied up in a useless form. That is if 10,000 people had $100,000 in circulation for exchange, it means that much labor tied up which might be put to use by providing land and tools for others to work. CHAPTER XL Constructive Logic Society should be viewed as a unit, for that is what it is, and a correct understanding of it can not be had in any other way. All the social warfare is caused by seeking self in- y^ terest from an individual standpoint. The struggles of economic classes are based on in- dividualistic self interest without regard to social justice. 36 CONSTRUCTIVE SOCIALISM The workingman or woman who supports this competitive system^ although looking for higher wages or better conditions^ is actuated by the same spipt as the capitalist who sup- ports this system. It is not a question of the class to which they belong, but whether they are individualists or Socialists. A Con- structive Socialist is a full fledged socialist. Socialist economic force is stronger than Capitalist economic force. We have the power, opportunity and legal right to organize this force now. Hundreds of books may be writ- ten on this subject, but this is the essence of all that can be said. Voluntary Cooperation is more scientific than forcible cooperation by law or otherwise. Because force has been used in the past is not a reason why it should be used to inaugu- rate the Cooperative Commonwealth. For that is a state where we hope to step from tyranny to freedom. Voluntary constructive socialism does not arouse class hatred by appealing to one class to overthrow another, but by showing all who can see the uselessness and injustice of this system that it is their duty to commence build- ing a better one. The logic of events or economic determinism makes this both pos- sible and necessary. We believe those who see the necessity for a change and know the remedy, have incurred CONSTRUCTIVE SOCIALISM 37 an obligation to demonstrate their knowledge to others. Preaching and theorizing has become a hu- man habit, Constructive Socialism is a con- viction that we ought to practice what we be- lieve and preach. Social reforms are good and Constructive Socialism does not take away the opportunity to aid in that direction while engaged in the reconstruction of the social system. The mass of humanity only move when they see something to immediately satisfy their economic wants. Therefore, it is necessary for those who have reached a state of intelligence of knowing a better system of living and work- ing, to put it into physical effect, that humanity may see and grasp it. What is the use of having this intelligence if it is not used? Since this book was first written, the Volun- tary Cooperative Association has been organ- ized to commence the construction of a better industrial system according to the ideas herein stated. Further information can be obtained by ad- dressing the Association at its headquarters at 518 South Hill Street, Los Angeles, Cali- fornia. U4 a G O I ^ o I o Q O Dm 1—4 X CO u S 2 " "2 O < Si fi B &. O o — , SU ^ I I ^ I D O CJ .^ o Is 0.2 CJ JS <^ 5-* > t: o 1 1 _§ c S 2 « g c =^ 2 o 8 .iQ N^ »« ./> ^ ^ C o sS ;s 0) ^ § ^ < c Si 100 a> j> .ti w ysr\ ^ f^ C ZJ '^ o a o C vi )^ .2 ®^ :§ s s o :rs c t/J o < v^ ^^\ ' i .^ , V>i^- ) \" s t '" > '•^^~.