existing from the pocket of its temporary possessor into his own; in both businesses the profits are large because the risks are great, and the penalty for failure heavy for the moment.
Socialism, as an industrial system, is chiefly concerned with fortunes in the making, with the way in which the wealth created by associated labor passes into the hands of individuals who do little or nothing in exchange for it. These fortunes arise from the ownership of the instruments of production, or of the raw material out of which wealth is to be manufactured; from the ownership, that is, of capital or of land.
Production.
Let us take the case of the possessor of capital employed in manufacture. This man desires to obtain more wealth than he can produce alone, more than he can individually produce even with the help of machinery. He must consequently hire others, who, in exchange for a certain fixed sum to be paid to them by him, shall allow him to take over the whole results of their labor, and to pocket the difference between those results and the fixed sum paid by him. This fixed sum is known as wage, and is "the market price of labor". We have therefore here two classes face to face with each other: one is a class which is the owner of capital, that is, which possesses the instruments of production; the other is a class which possesses the labor-force, without which the instruments of production are useless, but which must perish if it cannot get hold of some of those instruments. (Behind the capitalists is a third class, the land-owning, with which the capitalist has to come to terms; that will be dealt with afterwards.) This second class stands therefore at this disadvantage; that while the capitalist can, if he pleases, utilise his own labor-force for his own subsistence, it cannot subsist at all except with his consent and aid, being shut out from the raw material by the landowner, and from the instruments of production by himself. Put a naked man on fertile soil in a decent climate and he will subsist; he will live on fruit and berries while with his hands he fashions some rough tool, and with the help thereof makes him a better one; out of the raw material he will form an instrument of production with those original instruments of production given
