confidence in the purchasing power of the currency in which he is paid. As this confidence goes, work ceases, except in so far as it can be rewarded by payment in goods. But there is no sufficient science of currency and business psychology to restrain governments from the most disturbing interferences with the public credit and with the circulation. And such interferences lead straight to the cessation of work, that is, of the production of necessary things. Upon such vital practical questions it is scarcely too much to say that the mass of those socialists who would recast the world have no definite ideas at all. Yet in a socialist world quite as much as in any other sort of world, people must be paid money for their work rather than be paid in kind if any such thing as personal freedom is to continue. Here too there must be an ascertainable right thing to do. Until that is determined, history in these matters will continue to be not so much a record of experiments as of flounderings.[1]
And in another direction the social and political thinking of the nineteenth century was, in the face of the vastness of the mechanical revolution, timid, limited, and insufficient, and that was in regard to international relations. The reader of socialistic literature will find the socialists constantly writing and talking of the "State," and never betraying any realization that the "State" might be all sorts of organizations in all sorts of areas, from the republic of San Marino to the British Empire. It is true that Karl Marx had a conception of a solidarity of interests between the workers in all the industrialized countries, but there is little or no suggestion in Marxist socialism of the logical corollary of this, the establishment of a democratic world federal government (with national or provincial "state" governments) as a natural
- ↑ We may note a very interesting experiment in wages payment here that has been made by the American Oneida silver company. A committee on which the workers are strongly represented makes a summary week by week of the current prices of staple commodities and common necessities. Week by week it is noted that prices are so much per cent. above the normal figure of January, 1914 (or some such date), which is taken as the standard. On pay-day every worker receives his wages plus a percentage representing the higher prices, so that though the actual sums paid vary week by week, the purchasing power of the wages paid remains practically constant. Here, perhaps, we have a germ of a system that may grow to considerable importance. The burthen of rising prices is shifted to the employer, who can take them into account in fixing his prices.
