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 of self-interest which every reasonable man must admit to be, up to a point, the most potent source of all practical energy. I do not see why the state should not pay its servants according to merit just as private companies do, and make the rewards of ambition depend on efficiency. In this purely economic region there is not, so it seems to me, anything absurd or chimerical in the socialist ideal. My difficulty here is of a different kind. I do not see how, by the democratic machinery contemplated, it will be possible to secure officials sufficiently competent and disinterested to be entrusted with functions so important and so difficult as those which would be demanded of them under the socialist régime. In a democracy the government can hardly rise above—in practice, I think, it tends to fall below—the average level of honesty and intelligence. In the United States, for example, it is notorious that the whole machinery of government, and especially of local government, where the economic functions are important, is exploited by the more unscrupulous members of the community; and this tendency must be immensely accentuated in every society in pro-