State Monopoly Versus Socialism

One of the most significant signs of our times is the readiness with which our struggling middle class turns to schemes of State or Municipal ownership and control, for relief from the economic pressure under which it is struggling. Thus we find in England demands for the nationalisation of the telephone system, for the extension of municipal enterprise in the use of electricity, for the extension of the parcel system in the Post Office, for the nationalisation of railways and canals. In Ireland we have our middle class reformers demanding state help for agriculture, state purchase of lands, arterial draining, state construction of docks, piers and harbours, state aid for the fishing industry, state control of the relations between agricultural tenant and landlord, and also nationalisation of railways and canals. There is a certain section of Socialists, chiefly in England, who never tire of hailing all such demands for state activity as a sign of the growth of the Socialist spirit among the middle class, and therefore worthy of all the support the working-class democracy can give. In some degree such a view seems justifiable. The fact that large sections of the capitalist class join in demanding the intervention of the State in industry is a sure sign that they, at least, have lost the overweening belief in the all-sufficiency of private enterprise which characterised their class a generation ago; and that they have been forced to recognise the fact that there are a multitude of things in which the ‘brain’, ‘self-reliance’, and ‘personal responsibility’ of the capitalist are entirely unnecessary. To argue that, since in such enterprises the private property-holder is dispensed with, therefore he can be dispensed with in all other forms of industrial activity, is logical enough and we really fail to see in what manner the advocates of capitalist society can continue to clamour for such state ownership as that alluded to – ownership in which the private capitalist is seen to be superfluous, and yet continue to argue that in all other forms of industry the private capitalist is indispensable. For it must be remembered that every function of a useful character performed by the State or Municipality to-day was at one time performed by private individuals for profit, and in conformity with the then generally accepted belief that it could not be satisfactorily performed except by private individuals.

But all this notwithstanding, we would, without undue desire to carp or cavil, point out that to call such demands ‘Socialistic’ is in the highest degree misleading. Socialism properly implies above all things the co-operative control by the workers of the machinery of production; without this co-operative control the public ownership by the State is not Socialism – it is only State capitalism. The demands of the middle-class reformers, from the Railway Reform League down, are simply plans to facilitate the business transactions of the capitalist class. State Telephones – to cheapen messages in the interest of the middle class who are the principal users of the telephone system; State Railways – to cheapen carriage of goods in the interest of the middle-class trader; State-construction of piers, docks, etc. – in the interest of the middle-class merchant; in fact every scheme now advanced in which the help of the State is invoked is a scheme to lighten the burden of the capitalist – trader, manufacturer, or farmer. Were they all in working order to-morrow the change would not necessarily benefit the working class; we would still have in our state industries, as in the Post Office to-day, the same unfair classification of salaries, and the same despotic rule of an irresponsible head. Those who worked most and hardest would still get the least remuneration, and the rank and file would still be deprived of all voice in the ordering of their industry, just the same as in all private enterprises.

Therefore, we repeat, state ownership and control is not necessarily Socialism – if it were, then the Army, the Navy, the Police, the Judges, the Gaolers, the Informers, and the Hangmen, all would all be Socialist functionaries, as they are State officials – but the ownership by the State of all the land and materials for labour, combined with the co-operative control by the workers of such land and materials, would be Socialism.

Schemes of state and municipal ownership, if unaccompanied by this co-operative principle, are but schemes for the perfectioning of the mechanism of capitalist government-schemes to make the capitalist regime respectable and efficient for the purposes of the capitalist; in the second place they represent the class-conscious instinct of the business man who feels that capitalist should not prey upon capitalist, while all may unite to prey upon the workers. The chief immediate sufferers from private ownership of railways, canals, and telephones are the middle class shop-keeping element, and their resentment at the tariffs imposed is but the capitalist political expression of the old adage that “dog should not eat dog.”

It will thus be seen that an immense gulf separates the ‘nationalising’ proposals of the middle class from the ‘socialising’ demands of the revolutionary working class. The first proposes to endow a Class State – repository of the political power of the Capitalist Class – with certain powers and functions to be administered in the common interest of the possessing class; the second proposes to subvert the Class State and replace it with the Socialist State, representing organised society – the Socialist Republic. To the cry of the middle class reformers, “make this or that the property of the government,” we reply, “yes, in proportion as the workers are ready to make the government their property.”