John A.

Hobson
Collectivism in Industry
(October 1896)
From Progressive Review, No.1, October 1896, pp.38-52.
Reprinted in John A. Hobson, The Crisis of Liberalism: New Issues of
Democracy, ondon! ".#. $in% &nd #on, 19'9, pp.11(-132.
)r&nscribed b* +&nie, -&ido.
.&r/ed 0p b* 1inde O23&,,&%h&n 4or the Marxists Iteret !rchive.
Note by the Trascriber: 1d0&rd 5ernstein2s 4irst &rtic,e in
his Problems of Socialism series, 6hich %&7e rise to the
Re7isionist 3ontro7ers*, 6&s p0b,ished in Die Neue "eit,
8o,.15 No.1, 28 October 1896, &nd c&rried the tit,e General
Observations on Utopianism and Eclecticism. )here is &n
1n%,ish 7ersion in H. )0dor &nd J... )0dor 9eds.:, Marxism
a# $ocial Democracy: The Revisioist Debate %&'()
%&'&, 3&mbrid%e ;ni7ersit* "ress, 1988, pp.<3-81. 5ernstein2s
&rtic,e cont&ins ,on% =0ot&tions 4rom &n ess&* b* John A.
Hobson, p0b,ished &non*mo0s,* &s &n introd0ctor* &rtic,e in
the Progressive Review, No.1, October 1896. Hobson is
re4erred to &s >& ,ect0rer 4or the ;ni7ersit* 1?tension #ociet*
&nd the &0thor o4 & 7er* %ood 6or/, re7ie6ed in this
@o0rn&,, The *volutio of Mo#er
Ca+italism 9189(:.A Ibi#,, p.<8. 1&r,ier, 5ernstein h&d
re7ie6ed Hobson2s boo/ in Die Neue "eit, 8o,.12 No.2, 189(,
pp.5'(ff. #ee &,so the re7ie6 b* enin, p0b,ished in .&* 1899 in
the periodic&, Nachalo, No.5.
5ernstein2s second &rtic,e in the series Problems of
Socialism 6&s p0b,ished &s Eine Theorie der Gebiete und
Grenzen des Kollektivismus, Die Neue "eit, 8o,.15 No.1, 28
October 1896, pp.2'1-213. Bt 6&s &ct0&,,* & tr&ns,&tion o4 the
present &rtic,e b* John A. Hobson, Collectivism in
ndustr!, Progressive Review, No.1, October 1896, pp.38-52,
reprinted in Hobson, The Crisis of Liberalism: New Issues
of Democracy, ondon! ".#. $in% &nd #on, 19'9, pp.11(-132.
$&0ts/* commented on it in & ,etter to 8ictor Ad,er! >B co0,dn2t
4ind m0ch to &%ree 6ith in 1de2s second Problems &rtic,e. et 0s
hope th&t there is & third on the 6&*. C)he third &rtic,e 6&s
c&,,ed "er #e#en$%rti#e Stand der industriellen Ent$icklun#
in "eutschland, Die Neue "eit, 8o,.15 No.1, 1896, pp.3'3-311.D
)he F&bi&ns 6i,, h&7e to be de&,t 6ith more 7i%oro0s,*, &nd in
p&rtic0,&r the* m0st be m&de &6&re th&t the* &re settin% the
cons0mers2 interest &bo7e th&t o4 the prod0cers, tho0%h it is the
,&tter 6hich is cr0ci&,. Bn the ,&st resort, the position o4 the
6or/ers is determined b* their interests &s prod0cers, not &s
cons0mers, &nd the 4irst concern o4 soci&,ism is to &bo,ish the
e?p,oit&tion o4 the 6or/ers, not o4 the cons0mers. )his me&ns
th&t co,,ecti7ism 6i,, cert&in,* not be de4ined &s Hobson de4ines
it, &nd someone o0%ht to s&* so.A $&0ts/* to Ad,er 9e?tr&ct:,
#t0tt%&rt, 12 No7ember 1896, in H. )0dor &nd J... )0dor
9eds.:,Marxism a# $ocial Democracy: The Revisioist
Debate %&'()%&'&, 3&mbrid%e ;ni7ersit* "ress, 1988, pp.81-
82.
A contempt0o0s ne%,ect E sometimes & bo&st40, rep0di&tion E o4
princip,es or theories o4 soci&, re4orm is & ch&r&cteristic &ttit0de o4
most >soci&, re4ormersA in 1n%,&nd to-d&*. Re@ectin% the >scienti4icA
c,&ims o4 #oci&, +emocr&c* 0pon the do0b,e %ro0nd th&t its &n&,*sis o4
economic prob,ems is r&dic&,,* de4ecti7e &nd th&t it 4&i,s to &pp,*
pr&ctic&,,* to the 40t0re the conception o4 historic e7o,0tion 6hich it
reco%nises in interpretin% the p&st, 1n%,ish >pro%ressi7esA present no
&,tern&ti7e &n&,*sis or theor*, nor do the* reco%nise the need o4
4ormin% &n*. Not & 4e6 &mon% them h&7e p&ssed thro0%h & period o4
h&,4-inte,,ect0&,, h&,4-emotion&, ;topi&nism, dre&min% dre&ms &nd
seein% 7isions, b0t the* h&7e come o0t &t the other side, &nd pride
themse,7es 0pon h&7in% s,o0%hed &,, h&,,0cin&tions &nd sett,ed do6n to
the pr&ctic&, 6or/ o4 det&i,ed re4orm. .ost o4 them 4r&n/,* &dmit th&t
&,on% 6ith their e&r,* h&,,0cin&tions the* h&7e shed &,, >theor*A or
>princip,eA &s &6/6&rd enc0mbr&nces 6hich impede th&t 4&ci,it* o4
compromise b* 6hich &,one the* deem e&ch sep&r&te me&s0re o4 re&,
pro%ress c&n be &chie7ed.
.&n* e&rnest 6or/ers in the c&0se o4 th&t e?p&nsion o4 .0nicip&,
&nd #t&te &cti7it*, 6hich is termed 3o,,ecti7ism, &re especi&,,*
impressed b* this con7iction o4 the 40ti,it* o4 theories &nd ide&s.
"ro%ress is 4or most o4 them p0re,* & m&tter o4 det&i,ed e?periment,
6hich sh&,, concern itse,4 on,* 6ith the speci&, circ0mst&nces o4 e&ch
c&se. #0ch 6or/, the* ho,d, is best entr0sted to men 6ith no p&rtic0,&r
inte,,ect0&, princip,es or bro&d con7ictions, or 6ho, i4 the* h&7e &n*,
6i,, be c&re40, not to see/ to brin% them into &pp,ic&tion. .&FFini,
indeed, h&s to,d 0s th&t 0 princip,es &,one &re constr0cti7e,A b0t o0r
pr&ctic&, re4ormer is s0re th&t he /no6s better! he sees ho6 7er* &pt
princip,es &re to %et in the 6&* &nd to c,o% the 6hee,s o4 pro%ress.
Gh&te7er m&* be tr0e o4 Fr&nce or -erm&n*, 1n%,ish histor*, &s he
re&ds it, pro7es th&t pro%ress is not %o7erned b* the conscio0s
oper&tion o4 ide&s. )his re7o,t &%&inst ide&s is c&rried so 4&r th&t &b,e
men h&7e come serio0s,* to ,oo/ 0pon pro%ress &s & m&tter 4or the
m&nip0,&tion o4 6ire-p0,,ers, somethin% to be >@obbedA in committee
b* sophistic&, motions or other c,e7er tric/er*. -re&t n&tion&, iss0es
re&,,* t0rn, &ccordin% to this @0d%ment, 0pon the &rts o4 po,itic&,
m&n&%ement, the p,&* o4 the &droit t&ctici&n &nd the comp,ete
c&n7&sser. )his is the >6or/A th&t te,,s! e,ections, the s&ne e?pression o4
the n&tion&, 6i,,, &re 6on b* these &nd b* no other me&ns.
No6here h&s this mech&nic&, conception o4 pro%ress 6or/ed more
dis&stro0s,* th&n in the mo7ement to6&rds 3o,,ecti7ism. #0ppose th&t
the mech&nism o4 re4orm 6ere per4ected, th&t e&ch ,itt,e c,i=0e o4
speci&,ists &nd 6ire-p0,,ers 6ere p,&ced &t its proper point in the
m&chiner* o4 p0b,ic ,i4e, 6i,, this m&chiner* %rind o0t pro%ress H 17er*
st0dent o4 ind0stri&, histor* /no6s th&t the &pp,ic&tion o4 & po6er40,
>motorA is o4 7&st,* %re&ter import&nce th&n the in7ention o4 the speci&,
m&chine. No6, 6h&t pro7ision is m&de 4or %ener&tin% the motor-po6er
o4 pro%ress in 3o,,ecti7ismH Gi,, it come o4 its o6n &ccordH O0r
mech&nic&, re 4ormer &pp&rent,* thin/s it 6i,,. )he &ttr&ction o4 some
present ob7io0s %&in, the s0ppression o4 some sc&nd&,o0s &b0se o4
monopo,ist po6er b* & pri7&te comp&n*, some needed en,&r%ement o4
e?istin% .0nicip&, or #t&te enterprise b* ,&ter&, e?p&nsion E s0ch &re
the so,e sprin%s o4 &ction. Bn this 6&* the .0nicip&,is&tion o4 p0b,ic
ser7ices, incre&sed &ssertion o4 #t&te contro, o7er mines, r&i,6&*s, &nd
4&ctories, the &ss0mption 0nder #t&te contro, o4 ,&r%e dep&rtments o4
tr&nsport tr&de, proceed 6itho0t &n* reco%nition o4 the %0id&nce o4
%ener&, princip,es. 17er*6here the press0re o4 speci&, concrete
interests, no6here the conscio0s p,&* o4 or%&nised h0m&n inte,,i%enceI
Jet the 4o,,* o4 th0s i%norin% ide&s &nd the enth0si&sm the* c&n e7o/e,
&nd o4 tr0stin% entire,* to the det&i,ed press0re o4 4e,t needs &nd
%rie7&nces, c&n be m&de m&ni4est e7en to the pr&ctic&, m&n b* pointin%
o0t ho6 s0ch &n e?p&nsion o4 3o,,ecti7e &ction b* redress o4 /no6n
,on%-st&ndin% %rie7&nces not mere,* imp,ies & 6&ste o4 3o,,ecti7e
ener%* in the p&st, b0t in7o,7es the %rie7o0s e?pense o4 compens&tin%
7ested interests 6hich & 6iser re%&rd 4or >theor*A 6o0,d ne7er h&7e
permitted to %ro6 0p.
.* ob@ect here is to @0sti4* the pr&ctic&, 0ti,it* o4 >theor*A &nd
>princip,eA in the mo7ement o4 3o,,ecti7ism b* sho6in% th&t re4ormers
6ho distr0st the %0id&nce o4 ;topi&, or e7en the &pp,ic&tion o4
economic 4irst princip,es, &re not thro6n b&c/ entire,* 0pon th&t cr0de
empiricism 6hich insists th&t e&ch c&se is to be @0d%ed sep&r&te,* &nd
e?c,0si7e,* on its o6n indi7id0&, merits.
)here &re cert&in midd,e princip,es &nd sober h*potheses 6hich &re
ser7ice&b,e h&,4-6&* ho0ses, b0i,t b* ,e%itim&te %ener&,is&tion o0t o4
p&st e?perience, to 6hich it is re&son&b,e to &ppe&,. )he st0dent o4
recent economic histor* 4inds & p,&in,* m&r/ed de7e,opment o4 the
str0ct0re o4 b0siness, 6hich thro6s & c,e&r &nd po6er40, ,i%ht 0pon the
tr0e p&ths o4 pro%ress in co,,ecti7e enterprise.
The -ealth of Natios, 6ritten 0pon the 7er* brin/ o4 the
ind0stri&, re7o,0tion, cont&ins & most instr0cti7e p&ss&%e in 6hich
Ad&m #mith &ssi%ns 6h&t he he,d to be the necess&r* economic ,imits
to @oint-stoc/ enterprise!
>)he on,* tr&des 6hich it seems possib,e 4or & @oint-stoc/
comp&n* to c&rr* on s0ccess40,,* 6itho0t &n e?c,0si7e
pri7i,e%e &re those o4 6hich &,, the oper&tions &re c&p&b,e o4
bein% red0ced to 6h&t is c&,,ed & ro0tine, or to s0ch &n
0ni4ormit* o4 method &s &dmits o4 ,itt,e or no 7&ri&tion. O4
this /ind is 4irst, the b&n/in% tr&deK second,*, the tr&de o4
ins0r&nce 4rom 4ire, &nd 4rom se& ris/, &nd c&pt0re in time
o4 6&rK third,*, the tr&de o4 m&/in% &nd m&int&inin% &
n&7i%&b,e c0t or c&n&,K &nd, 4o0rth,* the simi,&r tr&de o4
brin%in% 6&ter 4or the s0pp,* o4 & %re&t cit*.A Ad&m
#mith, -ealth of Natios, 5oo/ 8.
No6 in the 4irst p,&ce it 6i,, be obser7ed th&t &,, these >tr&desA 6hich in
the ,&ter ei%hteenth cent0r* Ad&m #mith s&6 ripenin% 4or @oint-stoc/
enterprise, to%ether 6ith their &,,ied br&nches o4 b0siness, h&7e p&ssed
ri%ht thro0%h the ph&se o4 @oint-stoc/ enterprise, &nd &re in 7&rio0s
p,&ces &nd &t 7&rio0s p&ces 7isib,* mo7in% to6&rds the condition o4
p0b,ic b0sinesses. Not mere,* in Americ&, b0t &,, o7er the ci7i,ised
6or,d, the %ro6in% 0se o4 credit-mone* &nd the spec0,&ti7e processes o4
modern commerce &re dri7in% home the d&n%ers o4 pri7&te b&n/in%,
&nd the s0pport 6hich 7&rio0s %o7ernments &re pr&ctic&,,* 4orced to
%i7e to pri7&te 4irms in 4in&nci&, emer%encies is e7er*6here
stren%thenin% the con7iction o4 the necessit* o4 & 4irm n&tion&, contro,
o4 c0rrenc* in &,, its comp,e? 4orms, 6hich is the norm&, de7e,opment
&nd &d@0stment to modern conditions o4 one o4 the e&r,iest &nd most
%ener&, 40nctions o4 the #t&te. 3,ose,* re,&ted to the tr&de in mone* is
the Bns0r&nce tr&de. Gith the %ro6th o4 credit on & b&sis o4 b&n/in% h&s
%ro6n & n0mber o4 ris/s &%&inst 6hich pro7ision m0st be m&de. As
Ad&m #mith tr0,* 4ores&6, this 6or/ h&s pro7ed s0it&b,e 4or @oint-stoc/
enterpriseK b0t in se7er&, co0ntries pri7&te @oint-stoc/ is %i7in% 6&*
be4ore p0b,ic @oint-stoc/. )he most pressin% ris/s o4 o,d &%e po7ert*,
dis&b,ement &nd de&th, &re p&ssin% 0nder schemes o4 #t&te ins0r&nce,
7o,0nt&r* or comp0,sor*K the h&bit o4 >poo,in%A ris/s o4 4ire &nd ,i4e
&mon% 4orm&,,* competin% comp&nies, so &s to e,imin&te %en0ine
competition, is r&pid,* prep&rin% the 6&* 4or & 6ider reco%nition in this
co0ntr* o4 the economies o4 #t&te ins0r&nce. )he >n&7i%&b,e c0t or
c&n&,A 6&s the 4irst 4r0it o4 ,&r%e c&pit&,ism in the tr&nsport ind0str*
&nd in7o,7es in its de7e,opment o4 str0ct0re th&t ,&r%e dep&rtment o4
ind0str* 6hich t&/es n&tion&, sh&pe in r&i,6&*s, post&, ser7ice &nd
ste&mship comp&nies, &nd m0nicip&, sh&pe in tr&m6&*s, omnib0s
comp&nies, ,oc&, te,ephones &nd r&i,ro&ds. )his 6ho,e 7&st tr&nsport
tr&de h&s 40,,* ripened 0nder comp&nies! the mi%htiest member o4 this
ind0stri&, c,&ss, the r&i,ro&d, h&s in most co0ntries been est&b,ished b*
or 4&,,en 0nder #t&te m&n&%ementK or, &s in the ;nited #t&tes, is either
dri4tin% o0t o4 pri7&te into p0b,ic h&nds 4rom the p0re press0re o4
economic circ0mst&nces 9in 189(, 192 r&i,ro&ds, cont&inin% ne&r,* one-
4o0rth o4 the &%%re%&te mi,e&%e in the ;nited #t&tes, 6ere in the h&nds
o4 O44ici&, Recei7ers:, or is or%&nisin% its hitherto competin% members
into 7&st monopo,ies 6ie,din% & d&n%ero0s dominion o7er the ind0str*
o4 6ho,e #t&tes. )he 4o0rth o4 Ad&m #mith2s tr&des, th&t o4 G&ter
#0pp,*, is ,i/e6ise the inde? &nd 4orer0nner o4 &n e7er-incre&sin%
series o4 ind0stries 4or the s0pp,* o4 common m0nicip&, needs,
inc,0din% %&s, e,ectricit*, etc., 6hich &re bein% m0nicip&,ised in &,,
p&rts o4 the ci7i,ised 6or,d. No6, the 4irst ,esson cont&ined in these
4&cts is the p,&in testimon* to & n&t0r&, co0rse o4 %ro6th b* 6hich
cert&in ,&r%e c,&sses o4 ind0str* &re seen to p&ss 4rom indi7id0&, into
@oint-stoc/ b0siness, &nd &%&in 4rom @oint-stoc/ b0siness into p0b,ic
b0siness, the ,imit o4 3o,,ecti7ism bein% determined b* the speci4ic
ch&r&cter &tt&chin% to e&ch 6or/. #o 6ide &nd so m0,ti4&rio0s is this
mo7ement th&t it c&nnot 4&i, to impress &,, obser7ers 6ith th&t 4ee,in%
o4 ine7it&bi,it* 6hich is the ch&r&cteristic o4 the oper&tion o4 >n&t0r&,A
,&6s. .&n* e7en &mon% those 6ho both in princip,e &nd pr&ctice h&7e
set themse,7es in most st0bborn opposition to this c0rrent o4 e7ents &re
compe,,ed to be&r re%ret40, testimon* to the o7erpo6erin% 4orce o4 the
stre&m.
#ome, &%&in, h&7e been so po6er40,,* impressed b* the 7o,0me o4
this mo7ement th&t the* deri7e 4rom it & %ener&, ,&6 6hich the* see/ to
impose 0pon &,, ind0stri&, %ro6th. A,, b0sinesses, the* 0r%e, p&ss 4rom
sm&,, simp,e t*pes into ,&r%er &nd more comp,e? t*pes, o0t%ro6in% 4irst
the bo0nds o4 indi7id0&, or 4&mi,* contro,, then, t&/in% on the @oint-
stoc/ or 7o,0nt&r* co-oper&ti7e str0ct0re, so incre&se in siFe &nd
stren%th &s to de7e,op & monopo,* ch&r&cter, 6hich 0,tim&te,* compe,s
the #t&te, &s &%ent 4or the interests o4 oppressed cons0mers, to >t&/e
them o7er.A Accordin% to this 7ie6, &,, ind0str* &,i/e is mo7in% &,on%
the s&me ro&r, &t di44erent p&ces, to6&rds the s&me %o&, o4 #t&te
3o,,ecti7ism.
Bs this & @0st interpret&tion o4 the 4&ctsH B4 not, 6h&t ,imits &re to be
&ssi%ned to the oper&tion o4 this ,&6H )o 4ind the &ns6er to this
=0estion, ,et 0s t0rn to the pre%n&nt criticism o4 Ad&m #mith. )he
common ch&r&cter o4 those b0sinesses 6hich in his d&* 6ere s0it&b,e
4or @oint-stoc/ enterprise he m&r/s b* the 6ord >ro0tine.A )his
40rnishes & cr0ci&, test. )r&des 6hich &re s0sceptib,e o4 >s0ch &
0ni4ormit* o4 method &s &dmits o4 ,itt,e or no 7&ri&tion,A 6hich c&n be
red0ced to >ro0tine,A &re 7isib,*, &nd in some c&ses r&pid,*, mo7in%
&,on% the prescribed ro&d to 3o,,ecti7ism. >50t,A it h&s been s&id,
>c&nnot &,, ind0str*, sooner or ,&ter, be bro0%ht 0nder Lro0tine2
conditions &nd 6or/ed co,,ecti7e,*HA )his =0estion is intim&te,*
connected 6ith &nother re,&tin% to the ,imits o4 m&chiner*. )he
m&chine h&s been contin0&,,* encro&chin% 0pon the dom&in o4
h&ndicr&4t, &nd h&s e?ec0ted b* mech&nic&, >ro0tineA methods the
6or/ 6hich 4ormer,* re=0ired the e?ercise o4 indi7id0&, s/i,,. 3&n &,,
6or/ be bro0%ht 0nder the contro, o4 the m&chineH )he 7it&,
connection o4 the t6o =0estions is m&r/ed b* the 4&ct th&t the %ro6in%
&pp,ic&tion o4 m&chiner*, especi&,,* to the m&n04&ct0res &nd the
tr&nsport ind0stries, h&s been the most potent &%ent in dri7in% these
ind0stries to6&rds @oint-stoc/ enterprise &nd to6&rds 3o,,ecti7ism. B4,
then, it &ppe&rs th&t there &re cert&in /inds o4 6or/ 6hich c&nnot be
done b* m&chiner*, 6hich do not re=0ire ,&r%e c&pit&,, 6hich &re
essenti&,,* &nd etern&,,* inc&p&b,e o4 red0ction to >ro0tine,A s0ch 6or/
seems ,i/e,* to resist the mo7ement to 3o,,ecti7ism. Are there s0ch
/inds o4 6or/H For &ns6er, t0rn to the cons0mer, 4or the s&tis4&ction o4
6hose needs the 6ho,e o4 ind0str* prim&ri,* e?ists, &nd 6hose
>e44ecti7e dem&ndA contro,s &,i/e its =0&ntit* &nd ch&r&cter. )here &re
cert&in needs 6hich n&t0re or c0stom h&s imposed &,i/e on &,,
members o4 & comm0nit*, or 0pon ,&r%e sections o4 #ociet* in c&ses
6here economic reso0rces &re 0ne=0&,,* &pportioned. )here &re
%ener&, h0m&n needs 6hich &re s&tis4ied b* the prod0ction o4 ,&r%e
=0&ntities o4 %oods o4 common =0&,it* &nd common sh&pes &nd siFes.
#0ch >ro0tineA 6&nts c&n be s0pp,ied b* >ro0tineA ind0str*, &nd the
7er* economic n&t0re o4 these 6&nts, &s 6e h&7e seen, dri7es the
ind0stries 6hich &re en%&%ed in their s&tis4&ction to6&rds 3o,,ecti7ism.
Bt is, o4 co0rse, this princip,e, 6hich h&s co,,ecti7ised the hi%h ro&ds o4
&,, ci7i,ised co0ntries, p,&cin% them 0nder n&tion&, or ,oc&, contro,
&ccordin% &s the* s0pp,* the common need o4 the n&tion or o4 the
,oc&,it*K &nd the dem&nd 4or n&tion&,is&tion o4 r&i,6&*s in7o,7es no ne6
princip,e o4 po,ic*, b0t mere,* &n &d@0stment o4 the mech&nism o4
tr&nsport to the modern conditions o4 the >cons0min%A p0b,ic. A,most
&,, the me&ns o4 tr&nsport, 6hether 4or persons, mess&%es, or %oods, in
pop0,o0s co0ntries tend to p&ss into the condition o4 >ro0tineA
ind0stries. )he 6ho,e 6or/ o4 con7e*&nce &,on% common ro0tes is o4 &
>ro0tineA &nd mech&nic&, n&t0re. Bt is tr0e th&t 6h&t is c&,,ed >ro0tineA
m&* consist 6ith %re&t comp,e?it*, &nd 6ith some irre%0,&rit* o4
dem&nd. 50t 6hen 6e &re de&,in% 6ith & 6ide common dem&nd this
comp,e?it* m&* be copied b* comp,e? m&chiner*, &nd this irre%0,&rit*
disc,oses its o6n ,&6s o4 4,0ct0&tion. )he con7e*&nce o4 men &nd %oods
is not more irre%0,&r th&n the con7e*&nce o4 ,etters &nd te,e%r&ms.
50t m&n* o4 the needs o4 ordin&r* m&teri&, cons0mption &re o4 &
>ro0tineA ch&r&cter, 4or the 6ho,e or 4or ,&r%e sections o4 & comm0nit*.
5ec&0se &,, citiFens 0se 6&ter &nd %&s, &nd bec&0se there sho0,d be
on,* one sort o4 6&ter &nd %&s in 0se 4or &,,, n&me,*, the best &nd p0rest
th&t is &tt&in&b,e, these ind0stries tend to p&ss into co,,ecti7e 4orms. Bt
is not =0ite ;topi&n to ,ooAK 4or6&rd to & time 6hen it m&* be
considered &s import&nt th&t one sort o4 mi,/ sho0,d be cons0med b*
&,,, &nd 6hen the %ener&, dem&nd 4or bre&d m&* be bro0%ht 6ithin
s0ch n&rro6 ,imits o4 di44erence th&t these ind0stries sh&,, be &dded to
the ser7ices o4 m0nicip&, s0pp,*. #o 4&r &s the bod* o4 the p0b,ic &re
domin&ted in their needs b* common e,ements o4 h0m&nit*, 6hether
on the m&teri&, or the ment&, p,&ne, mech&nic&, &nd >ro0tineA methods
6hich tend to t&/e on co,,ecti7e 4orms 6i,, be more &nd more &d&pted
to their s0pp,*.
Bn proportion &s & %en0ine ,e7e,,in% 0p o4 the st&nd&rd o4 com4ort 4or
the m&sses o4 & pop0,&tion t&/es p,&ce, the n0mber o4 ind0stries 6hich
c&n th0s be re%0,&ted economic&,,* 0pon the ,&r%est sc&,e 4or the
s&tis4&ction o4 6&nts 6hich, once on,* common 6ithin & n&rro6 >c,&ssA
r&n%e, h&7e no6 e?tended to the 6ho,e pop0,&tion, 6i,, be const&nt,*
incre&sin%. )h0s &n incess&nt %ro6th o4 3o,,ecti7ism is indic&ted b* the
essenti&, 4&cts o4 common pro%ress.
50t those 6ho 4i? their e*es ecst&tic&,,* 0pon this mo7ement o4ten
i%nore the other side o4 the c&se. B4 this ,&6 o4 pro%ress co7ered &,, the
needs o4 m&n, then no ,imits co0,d be set 0pon 3o,,ecti7ism. 50t m&n is
not on,* one 6ith his 4e,,o6s, b0t &,so one b* himse,4, not on,* &
p&rt&/er o4 common h0m&nit* b0t &n indi7id0&, 6ith n&t0re &nd
conditions 6hich e7o/e t&stes &nd needs th&t &re his o6n &nd his &,one.
No6 s0ch t&stes, s0ch needs, c&n ne7er be s&tis4ied b* >ro0tineA
ind0str*, 6hich 4or its essenti&, econom* depends 0pon the prod0ction
o4 ,&r%e =0&ntities o4 simi,&r %oods 4or the s&tis4&ction o4 common 0n-
indi7id0&, needs. )he needs o4 &n indi7id0&, n&t0re c&n on,* be
s&tis4ied b* the conscio0s &cti7it* o4 &n indi7id0&, prod0cer. Here
emer%es the r&dic&, &ntithesis 6hich 0tter,* destro*s the 7&,idit* o4 &,,
ide&,s o4 comp,ete 3o,,ecti7ism. Bt is the &ntithesis o4 >ro0tineA &nd
>indi7id0&,A 6or/, o4 m&chine prod0ction &nd &rt. A m&chine c&n be
m&de c&p&b,e o4 s&tis4*in% &,, or &n* o4 the needs 6hich 6e h&7e in
common 6ith &,,, or 6ith & ,&r%e n0mber o4 o0r 4e,,o6-men! i4 those
needs &re 4or m&teri&, commodities, ste&m-dri7en &rr&n%ements o4 iron
c&n be de7ised 4or m&/in% themK i4 the* &re 4or inte,,ect0&, %oods, the*
c&n be t0rned o0t che&p,* 4rom the 4&ctories o4 >schoo,s,A >ch0rchesA or
>pressesA 6hich &re contri7ed 4or the 6ho,es&,e prod0ction o4 common
inte,,ect0&, or &esthetic 6&res 4or the cons0mption o4 those 6ho 6i,,
consent to mer%e the indi7id0&,it* o4 their dem&nd &nd cons0me these
common &rtic,es. 50t i4 B st&nd o0t 4or the s&tis4&ction o4 those 6&nts in
6hich B di44er 4rom m* 4e,,o6-men, B re=0ire not & m&chinist b0t &n
&rtist to s&tis4* me, one 6ho b* the conscio0s e?ercise o4 some
indi7id0&, s/i,, o4 his o6n c&n mo0,d the m&teri&, on 6hich he 6or/s to
the s&tis4&ction o4 m* indi7id0&,it*. No6 the 6ho,e %ist o4 the m&tter
,ies here. Bs the 3o,,ecti7ism o4 the 40t0re %oin% to imp&ir the
m0,tip,icit* &nd 4orce o4 those needs &nd t&stes 6hich m&r/ o44 one
person 4rom &notherH Bs indi7id0&,it* to be s6&,,o6ed 0p b* h0m&nit*H
Fe6 e7en &mon% the most &d7&nced or 4&n&tic&, 3o,,ecti7ists &dmit this
tendenc*K most &re prep&red to st&/e the 7&,0e o4 their #oci&,ism 0pon
the sin%,e test o4 its &cti7e promotion o4 indi7id0&,it*, the incre&se o4
the s&tis4&ction o4 those needs 6hich m&r/ o44 e&ch 4rom his 4e,,o6.
)ho0%h the &bso,0te n0mber o4 common needs c&p&b,e o4 ro0tine
s0pp,* 6i,, %ro6, tho0%h m0ch o4 the hi%her s&tis4&ction 6hich comes
to indi7id0&,s 6i,, be deri7ed 4rom the indi7id0&, 0se o4 opport0nities
6hich &re &ccessib,e to &,,, >o4 @o*s in 6idest common&,t* spre&d,A the*
&re 4e6 6ho do not e&%er,* insist th&t & chie4 ob@ect &nd res0,t o4 s0ch
3o,,ecti7ism 6i,, be to en&b,e indi7id0&,s more 40,,* &nd 4ree,* to
c0,ti7&te &nd s&tis4* their indi7id0&, &spir&tions. No6 i4 this is so, &nd it
seems incontro7ertib,* tr0e, &n* %ro6th o4 3o,,ecti7ism b&sed 0pon the
most economic 0se o4 ro0tine &cti7ities o4 n&t0re &nd o4 m&n m0st be
pro%ressi7e,* o0t6ei%hed b* the %ro6th o4 h0m&n &cti7it* de7oted to
those /inds o4 6or/ here bro&d,* desi%n&ted Art. ;nder this term 6i,,
come &,, h&nd,in% o4 m&teri&, or inte,,ect0&, >st044A 6hich in7o,7es
indi7id0&, s/i,, &nd &ttention in the 6or/er imposed b* the need o4
e?ec0tin% &n indi7id0&, order. )he Fine Arts o4 co0rse *ie,d the p,&inest
e?&mp,es o4 s0ch 6or/, b0t, &s R0s/in h&s so &dmir&b,* sho6n, there is
no m&teri&, 6hich does not &dmit & %en0ine &rtistic tre&tment,
pro7ided there e?ists some tr0e p0b,ic &ppreci&tion o4 the e?ce,,ence o4
the prod0ct. .et&,s, 6ood, stone, ,e&ther E e7er* 4orm o4 m&tter E 6i,,
&44ord in4inite scope 4or & h&ndicr&4t 6hich sh&,, e?hibit the tr0est &nd
most nob,e ch&r&cter o4 Art in p,&ces 6here there ,i7e ,o7ers o4 be&0ti40,
4orm &nd co,o0r. )here &re 4e6 6ho 6i,, not &dmit t &t the pro%ress o4
ci7i,is&tion in & n&tion imp,ies & const&nt rise in the discrimin&ti7e
ch&r&cter o4 6or/ &nd en@o*ment. No6 i4 this is so, it imp,ies &
proportion&te dimin0tion in the =0&ntit* o4 e44ort de7oted to ro0tine or
common 6or/ &s comp&red 6ith th&t 6hich is indi7id0&, in its
e?ec0tion &nd in the en@o*ment it 40rnishes. )his, o4 co0rse, does not
me&n th&t the en@o*ment o4 & %re&t pict0re b* & 6ide c,&ss o4 the
comm0nit* is inconsistent 6ith tr0e pro%ress, b0t th&t this en@o*ment,
tho0%h common to m&n* &s en@o*ment, 6i,, be more discrimin&ti7e,
th&t is, more indi7id0&,, in the &ppreci&tion &nd s&tis4&ction it &44ords.
No6, there is no e7idence 4rom the tenor o4 recent histor* to sho6
th&t the 4ine &rts, or &n* o4 those &rts 6hich, not so 4ine, &re *et en%&%ed
in s&tis4*in% indi7id0&, t&stes, tend to p&ss 4rom sm&,, into ,&r%e
b0sinesses mo7in% to6&rds the %o&, o4 3o,,ecti7ism. )he chie4
economies o4 %re&t ind0str*, the &doption o4 mech&nic&, processes o4
prod0ction &nd ro0tine m&n&%ement, do not e=0&,,* &pp,* to them.
+ependent &s the* &re 4or the most p&rt 0pon c,ose const&nt indi7id0&,
c&re o4 e?ec0tion, &nd not 0pon th&t min0te di7ision o4 ,&bo0r 6hich
%oes h&nd-in-h&nd 6ith m&chine-prod0ction, most o4 them do not e7en
t&/e the 4irst step o4 enterin% ,&r%e b0siness sh&pes. )ho0%h & 6or/ o4
&rt in t&i,orin% or mi,,iner*, &s in st&t0&r*, m&* be erected 0pon & b&sis
o4 ro0%h mech&nic&, 6or/, the 4iner processes 6hich constit0te the &rt
common,* de4* the econom* o4 di7ision o4 ,&bo0r. >)here is no 4it E
there c&n be no 4it E in & co&t m&de b* the m&chine &nd b* s0b-di7ided
&nd 0ns/i,,ed ,&bo0r,A 6rites .rs. #idne* Gebb, in de&,in% 6ith the
ondon t&i,orin% tr&de. #o, &%&in, o4 the best /ind o4 c,oc/s, & tr&de
6hich sti,, m&int&ins its primiti7e 4orm in ondon, 6e &re to,d! >)he
6or/ or m&/in% & c,oc/ is cond0cted 0nder one roo4, both b* h&nd &nd
b* m&chiner*. )he men ,e&rn to m&/e & c,oc/ thro0%ho0t, &nd 6h&te7er
their p&rtic0,&r 6or/ m&* be, the* do it 6ith conscio0s re4erence to its
be&rin% on the &ction o4 the 6ho,e c,oc/.A Here e7en in the prod0ction
o4 & mech&nism s0r7i7es the princip,e o4 0nit* &nd indi7id0&,it*. Not
on,* & poem &nd & pict0re, b0t & 6e,,-4ittin% co&t &nd & 6e,,-m&de c,oc/,
is &n indi7id0&,, ret&inin% the distincti7e ch&r&cter o4 & 6or/ o4 &rt, &nd
imposin% 0pon the ind0str* & correspondin% n&t0re. )h0s the t6o
c,ose,*-re,&ted 4orces, m&chine prod0ction &nd di7ision o4 ,&bo0r,
6hich conspic0o0s,* 4&7o0r the bi% comp,e? b0siness tendin% to6&rds
3o,,ecti7ism, &re inoper&ti7e 6here ind0str* consists in the s&tis4&ction
o4 nicer indi7id0&, needs. Not on,* in the most s/i,,ed br&nches o4 s0ch
tr&des &s c0t,er*, boo/bindin%, &nd c&binet-m&/in% do 6e 4ind the
he&,th* s0r7i7&, o4 domestic ind0str* or sm&,, 6or/shops, b0t e7en in
tr&des 6here some o4 the 6orst 4e&t0res o4 s6e&tin% h&7e &ppe&red, the
best 6or/ sti,, rem&ins in b0sinesses o4 & primiti7e t*pe, e.%., boots &nd
h&ndm&de ropes. Bt is not, ho6e7er, &,6&*s the indi7id0&, t&ste o4 the
cons0mer 6hich imposes the ch&r&cter o4 &rt 0pon &n ind0str*. A c,ose
in7esti%&tion o4 the str0ct0re o4 the te?ti,e tr&des 6i,, sho6 th&t the
n&t0re o4 the r&6 m&teri&,, &s 6e,, &s the siFe &nd 0ni4ormit* o4 the
dem&nd, determines the ch&r&cter o4 the ind0str*. )he si,/ tr&de &nd
some br&nches o4 the 6oo,,en tr&de h&7e 4&i,ed to &tt&in the 40,,
economies o4 m&chine prod0ction, &s m0ch 4rom & cert&in irre%0,&rit*
or indi7id0&,it* in the r&6 m&teri&,, 6hich re=0ires c&re &nd @0d%ment
in its tre&tment, &s 4rom the irre%0,&rit* &nd =0&,it&ti7e ch&r&cter o4 the
dem&nd. #ometimes indi7id0&,ism 6i,, inhere not in the m&teri&,, b0t
in some condition o4 the 6or/. )&/in% the e?&mp,e o4 street tr&nsport,
6e 4ind th&t 6here&s tr&ms &nd b0sses &re &,most e7er*6here in the
possession o4 ,&r%e comp&nies, the c&b b0siness is 4or the most p&rt in
sm&,, b0sinesses, tho0%h in ondon &nd other ,&r%e to6ns, 6here the
dem&nd 4or c&bs is ,&r%er &nd more re%0,&r, the >comp&n*A is %&inin%
%ro0nd. App,*in% the >ro0tineA princip,e, 6e e&si,* 0nderst&nd ho6
tr&ms &nd b0sses, 6hich r0n 6ith re%0,&rit* o4 ro0tes, times, &nd
prices, &re 4&r more &men&b,e to co,,ecti7e contro, th&n c&bs, more
dependent 4or their b0siness 0pon the 6i,, o4 indi7id0&, >4&res.A
Bt is tr0e th&t 6here s/i,,ed 6or/ p,&*s & comp&r&ti7e,* 0nimport&nt
p&rt in the &%%re%&te o4 processes, &nd in %ener&, 6here7er there e?ists
& ,&r%e &nd ste&d* dem&nd 4or %oods not 6ide,* di44erin% in ch&r&cter,
the ind0str* p&sses into ,&r%e c&pit&,ist sh&pes, the sm&,, s0r7i7&, o4
s/i,,ed 6or/m&nship bein% & mere &ppend&%e to the bi% ro0tine
b0siness. 50t it is import&nt to reco%nise th&t & sh&rp &nd %en0ine
&nt&%onism e?ists bet6een ind0stries en%&%ed in the s&tis4&ction o4
=0&ntit&ti7e dem&nd &nd those en%&%ed in s&tis4*in% =0&,it&ti7e
dem&nd. Ghere&s the 4ormer c&n 0ti,ise to the 40,, &,, the economies o4
m&chiner* &nd di7ision o4 ,&bo0r, the ,&tter c&nnot. )he chie4 4orces
6hich &re 7isib,* m&/in% 4or 3o,,ecti7ism in m&teri&, ind0stries &re
6e&/ @0st in proportion &s the e,ements o4 s/i,, &nd &rt &re stron%. B4,
there4ore, 6e &dmit th&t soci&, pro%ress 6i,, e?press itse,4 in incre&sin%
t&ste, re4inement, indi7id0&,it* o4 cons0mption o4 m&teri&, %oods, 6e
&dmit & s,&c/enin% o4 the 7er* 4orces 6hich h&7e hitherto been dri7in%
these ind0stries to6&rds 40,,*-de7e,oped 3&pit&,ism. )ho0%h it is
prob&b,* tr0e th&t in & pro%ressi7e societ* the tendenc* to see/
e?pression 4or indi7id0&,it* in ordin&r* &rtic,es o4 m&teri&,
cons0mption mi%ht not be 6ide,* pre7&,ent, 6hi,e 4&shion &nd the
irre%0,&rit* o4 dem&nd 6hich comes 4rom 0nbrid,ed c&price 6o0,d be
6e&/ened b* ed0c&tion &nd &n &ppro?im&te e=0&,is&tion o4 m&teri&,
reso0rces, 6e c&nnot 4&ir,* re%&rd the 6ho,e o4 m&teri&, ind0str* &s
s0b@ect to & set o4 economic 4orces dri7in% irresistib,* to6&rds the %o&,
o4 ro0tine 6or/ &nd 3o,,ecti7ism. Bt is, o4 co0rse, prob&b,e, &s #oci&,ists
6o0,d 0r%e, th&t & r&pprochement 6o0,d come 4rom the other side, th&t
& #t&te or .0nicip&,it*, con4ined &t 4irst to the contro, o4 the most
ro0tine 4orms o4 ind0str*, 6o0,d become b* e?perience =0&,i4ied to
enter b0sinesses 6here the ro0tine 6&s ,ess ri%id &nd to m&n&%e them
s0ccess40,,*. #0ch &n e?pect&tion h&s & cert&in & priori 7&,idit* &nd
some b&c/in% 4rom e?perience. 50t this &dmission does not ne%&ti7e
the m&in princip,e o4 dem&rc&tion bet6een ind0stries 6hich &t &n*
%i7en time &re essenti&,,* co,,ecti7e, &nd those 6hich &re not. )ho0%h
the si%ni4ic&tion 6hich e&ch societ* &nd e&ch &%e m&* %i7e to the term
>ro0tineA 6i,, di44er in de%ree, it is not the ,ess tr0e th&t & #t&te 6hich is
best e=0ipped 4or 3o,,ecti7e contro, &nd 0nimpeded b* 7ested interests
4rom the e?ercise o4 s0ch contro, 6i,, ne7erthe,ess ,imit th&t direct
contro, to ind0stries 6hich &re re,&ti7e,* o4 & ro0tine ch&r&cter.
O0r i,,0str&tions h&7e been dr&6n 4rom ind0stries en%&%ed in
prod0ction o4 m&teri&, 6e&,th. 50t there is no essenti&, di44erence here
bet6een the prod0ction o4 m&teri&, &nd non-m&teri&, 6e&,th. B4 o0r
re&sonin% is so0nd, it &pp,ies e=0&,,* to #t&te ed0c&tion, to #t&te
enterprise in &rt, science, or ,iter&t0re, &s to tr&nsport &nd
m&n04&ct0re. Historic 4orces &re not dri7in% these &cti7ities 6ho,es&,e
0nder 3o,,ecti7e contro,, tho0%h e7er*6here the #t&te is encro&chin%
&nd or%&nisin% o4 soci&, m&chiner* the ,o6er st&%es o4 these >&rts.A As
6e h&7e &,re&d* reco%nised, there is in the >&rtsA themse,7es & ro0tine
b&sis, cert&in 6or/ 6hich is re,&ti7e,* common or 0ns/i,,ed, &nd 6hich
c&n be con7enient,* e?ec0ted b* m&chine methods. #0ch ed0c&tion &s
is directed to the pre,imin&r* tr&inin% o4 those 4&c0,ties 6hich be,on% to
common h0m&nit*, ph*sic&,, inte,,ect0&,, &nd mor&,, the
comm0nic&tion o4 th&t %re&t soci&, herit&%e o4 /no6,ed%e 6hich is the
ri%ht40, inte,,ect0&, possession o4 &,, citiFens, the pro7ision o4 co,,e%es
&nd technic&, schoo,s, &rt schoo,s, m0se0ms, the&tres, &nd the
comp,etest m&chiner* 4or the best ed0c&tion o4 o0r common ,i4e E
these thin%s 6i,, be reco%nised &s proper,* be,on%in% to the ro0tine
dep&rtment o4 inte,,ect0&, prod0ction. )his >3o,,ecti7eA 6or/ 6i,,
&,6&*s rem&in the re,&ti7e,* >r0derA 6or/, tho0%h m0ch o4 it be 4&r in
&d7&nce o4 the present conception o4 >ro0tineA ed0c&tion in & n&tion
6hich does not 0nderst&nd ed0c&tion, or e7en 0nderst&nd th&t it is &
thin% to be 0nderstood. )he 4iner inte,,ect0&, 6or/ in science, in the
4ine &rts, in ,iter&t0re, 6i,, ne7er be direct,* contro,,ed b* 3o,,ecti7e
m&chiner*. Gh&te7er pro%ress 3o,,ecti7ism m&* m&/e in its c&p&cit* o4
s/i,40,, ener%etic, &nd disinterested m&n&%ement, its methods m0st
&,6&*s contin0e to be more mech&nic&, th&n those o4 pri7&te
enterprise, &nd ,ess s0ccess40, in directin% the more indi7id0&,
e,ements o4 e44ort to the s&tis4&ction o4 indi7id0&, needs.
)his princip,e to 6hich 6e h&7e &ddressed o0rse,7es, the &ntithesis o4
=0&ntit&ti7e &nd =0&,it&ti7e cons0mption, o4 ro0tine &nd &rt ind0str*,
in re&,it* co7ers the chie4 ,ines o4 &d7&nce to 6hich 3o,,ecti7ists &ppe&,.
"ro4essor .&rsh&,, h&s s0mmed 0p & rem&r/&b,e in7esti%&tion o4 the
conditions o4 %re&t ind0str* b* dec,&rin% th&t > there is prim& 4&cie
re&son 4or be,ie7in% th&t the &%%re%&te s&tis4&ction, so 4&r 4rom bein%
&,re&d* & m&?im0m, co0,d be m0ch incre&sed b* co,,ecti7e &ction in
promotin% the prod0ction &nd cons0mption o4 thin%s in re%&rd to
6hich the ,&6 o4 Bncre&sin% Ret0rns &cts 6ith & speci&, 4orce.A
9.&rsh&,,, Prici+les of *coomics, 2
nd
ed., 8o,.B., p.53<: No6 6h&t
&re those %oods 6hich in their prod0ction &nd distrib0tion con4orm to
the ,&6 o4 Bncre&sin% Ret0rnsH )he* &re >ro0tineA %oods 6hich %o to
s&tis4* the common needs o4 ,&r%e n0mbers o4 cons0mers. )hese &re
the thin%s, 6hich, bec&0se there is & ,&r%e &nd const&nt re%0,&r dem&nd
4or cert&in common 4orms &nd =0&,ities o4 them, c&n be prod0ced &nd
distrib0ted more che&p,* on & ,&r%e sc&,e th&n on & sm&,, sc&,e.
1,&bor&te m&chiner* &nd s0b-di7ision o4 ,&bo0r &re most 40,,* 0ti,ised
in /eepin% do6n the cost o4 m&/in% them, 6hi,e 6ho,es&,e b0*in% &nd
se,,in%, &nd ,&r%e &d7ertisin% &ssist in che&penin% their distrib0tion,
&nd ,&st, not ,e&st, e?penses o4 direction &nd m&n&%ement &re most
40,,* economised. )hese economies o4 cost &re the 7er* 4orces 6hich 6e
h&7e obser7ed dri7in% >ro0tineA b0siness &,on% the ro&d to
3o,,ecti7ism. )his @0d%ment o4 "ro4essor .&rsh&,,, t&/en 6ith the
c&re40, e7idence 0pon 6hich he b&ses it, is & most import&nt testimon*
in 4&7o0r o4 the pr&ctic&bi,it* o4 the 3o,,ecti7ism o4 >ro0tineA ind0str*.
"ro4essor .&rsh&,, &,so reco%nises, tho0%h not so 40,,*, the re,&tion
bet6een this tendenc* &nd the theor* o4 monopo,*. )he po,emics o4
3o,,ecti7ism &re ,&r%e,* concerned 6ith the insistence o4 the need o4
3o,,ecti7e contro, &s & protection o4 the interests o4 the cons0mer
&%&inst monopo,ies. No6 monopo,ies 90sin% the term in its bro&d sense
to si%ni4* &,, ind0stries in 6hich prices &re not re%0,&ted b* >4ree
competitionA o4 se,,ers: &re o4 t6o c,&ssesK those in 6hich the
monopo,ist po6er is deri7ed 4rom contro, o7er some so0rce o4 s0pp,*
restricted in =0&ntit* b* n&t0re or b* ,&6, &nd those in 6hich the po6er
comes 4rom the s0perior economies o4 the bi% o7er the ,itt,e b0siness.
.ost o4 the stron%est monopo,ies con@oin these t6o po6ers, restin%
p&rt,* 0pon monopo,* o4 ,&nd or r&6 m&teri&,, p&rt,* 0pon siFe o4
c&pit&,, &s in the c&se o4 r&i,6&*s or o4 s0ch & tr0st &s th&t o4 the
#t&nd&rd Oi, 3omp&n*. 50t the di44erence in so0rce o4 po6er, tho0%h
both &re d&n%ero0s to the comm0nit*, s0%%ests c,e&r,* th&t the de4ence
o4 3o,,ecti7e interests 6i,, &dopt & di44erent &ttit0de to the t6o /inds o4
monopo,*. Ghere siFe o4 c&pit&,, 0nderse,,in% competitors, &nd
n&rro6in% the &re& o4 e44ecti7e competition 0nti, some s*ndic&te c&n be
4ormed to obt&in so,e contro, o4 the m&r/et, is the so0rce o4 po6er, 6e
&re de&,in% 6ith & ro0tine b0siness t&/in% &d7&nt&%e o4 the oper&tion o4
the ,&6 o4 Bncre&sin% Ret0rns to est&b,ish & pri7&te monopo,*. A,,
&ro0nd 0s in the most hi%h,*-de7e,oped ind0str* s0ch 4orms &re
cr*st&,,isin%, o4ten not comp,ete,* sh&ped &nd not &bso,0te in their
monopo,ist po6er. )he* &re not, &s sometimes is pretended, the mere
prod0ct o4 t&ri44s, tho0%h t&ri44s h&7e o4ten he,ped them to m&t0re.
)he* &re the norm&, necess&r* iss0e o4 competition in b0siness 6here
m&chine-econom* &nd 6idenin% m&r/ets m&/e siFe &nd stren%th chie4
constit0ents o4 s0ccess, conditions 0nder 6hich competition m0st
4in&,,* %i7e 6&* to the pri7&te monopo,* o4 the bi%%est &nd best p,&ced
competitor. )he dem&nd 4or p0b,ic protection &%&inst the po6ers 6hich
these monopo,ies e?ercise o7er the cons0mer, &nd o7er the ,&bo0rers
6hose emp,o*ment &nd s0bsistence the* ho,d in the ho,,o6 o4 their
h&nd, is & %ro6in% 4orce in modern po,itics. Bn 1n%,&nd &nd 0pon the
3ontinent o4 10rope there &re perh&ps no ind0stries 6hich c&n be
considered to h&7e re&ched the 4orm o4 per4ect monopo,*, 4rom 6hich
direct competition h&s perm&nent,* dis&ppe&red. 50t there &re m&n*
c&ses 6here the dominion o4 or%&nised c&pit&, e?ercises & serio0s
restr&int 0pon competiti7e prices, &nd 6here the monopo,ist po6er
di44ers on,* in de%ree 4rom th&t o4 the per4ected >tr0st.A Bt is consistent
6ith the historic&, tenor o4 pro%ress th&t the pr&ctic&, press0re o4 these
d&n%ers &nd %rie7&nces sho0,d be more potent 4orces in the %ro6th o4
3o,,ecti7ism th&n &n* conscio0s reco%nition o4 the n&t0r&, ripenin% o4
this c,&ss o4 b0siness to6&rds & 3o,,ecti7e 4orm, or o4 the &bi,it* o4 the
p0b,ic to 0ndert&/e s0ch b0sinesses. )he contention o4 theoretic&,
3o,,ecti7ists, o4ten s0st&ined b* &r%0ments o4 %ener&, 0ti,it* or o4
h0m&nit&ri&n import, to the e44ect th&t the #t&te sho0,d &t &n* r&te
contro, those ind0stries en%&%ed in prod0cin% the necess&ries o4 the ,i4e
o4 the peop,e, h&rmonises 6ith the %ener&, po,ic* impressed b* these
str0ct0r&, consider&tions. For those ind0stries 6hich, b* oper&tion o4
p0re,* economic 4orces, tend to6&rds pri7&te monopo,*, 6i,, %ener&,,*
be ind0stries en%&%ed in s0pp,*in% the commonest &nd most
0ni7ers&,,*-cons0med commodities. )hese >necess&riesA 6i,, be in the
,&r%est re%0,&r dem&nd, 6i,, be >ro0tineA commodities, &nd since &n
e?ercise o4 monopo,ist po6er 6i,, h&7e the ,e&st e44ect in red0cin% their
cons0mption, it 4o,,o6s th&t monopo,ies in the s&,e o4 them 6i,, be
most pro4it&b,e to the 0ndert&/ers. )h0s the dem&nd 4or & 3o,,ecti7ist
po,ic* &,on% the ,ine o4 incre&sed p0b,ic contro, o7er >necess&riesA is in
%ener&, &ccord 6ith the 6ider princip,e 0pon 6hich 6e b&se the
3o,,ecti7ist &d7&nce. )his reco%nition o4 the n&t0r&, historic %ro6th o4
pri7&te monopo,ies imposes 3o,,ecti7ism &s the so,e s0bstit0te. )he
on,* &,tern&ti7e to pri7&te monopo,* is p0b,ic monopo,*. For 6hen &
pri7&te monopo,* is the prod0ct o4 economic 4orces restrictin%
competition, it is 40ti,e to ende&7o0r to bre&/ 0p 4orcib,* b* ,&6 the
monopo,* 4orm, th&t competition m&* be re-est&b,ished. Bt is
impossib,e to t0rn b&c/ the h&nd o4 the di&,. A pri7&te monopo,* b0i,t
0pon ,e%&, pri7i,e%e m&* be reso,7ed b* rescindin% the ,e%&, b&sis, b0t &
monopo,* e7o,7ed o0t o4 competiti7e conditions &dmits no other
remed* th&n 3o,,ecti7ism.
Bn those ind0stries 6here e,ements o4 >n&t0r&,A monopo,* chie4,*
e?press themse,7es, 6e do not 4ind & %ener&, mo7ement &,on% the s&me
,ines. )he =0estion o4 ,&r%e &nd sm&,, c0,t0re sti,, rem&ins to be 4o0%ht
o0t in di44erent dep&rtments o4 6or/ 0pon the soi, &nd in di44erent
soci&, &nd r&ci&, conditions. Bn some ,&r%e ind0stries the >ni%%&rd,iness
o4 n&t0reA seems to *ie,d be4ore the emp,o*ment o4 m&chiner* &nd
c&pit&,ism, brin%in% &%ric0,t0re, too, 0nder the ,&6 o4 incre&sin%
ret0rns. Ghere this occ0rs, &s on the %re&t 5on&nF& 4&rms, &%ric0,t0re
is bro0%ht into ,ine 6ith the %re&t m&n04&ct0res, &nd becomes & ro0tine
ind0str*. 50t 6here sm&,, c0,t0re s0r7i7es 9&nd the stron%
indi7id0&,ism 6hich soi,, c,im&te, position, &nd other n&t0r&, 4&cts
impose 0pon ,&nd indic&tes & 6ide s0r7i7&,:, the tenor o4 o0r &r%0ment
does not p,&ce &%ric0,t0re &mon% the mere ro0tine ind0stries. )his
seems to indic&te & bi40rc&tion o4 co,,ecti7e po,ic* &ccordin% &s 6e
re%&rd monopo,ies est&b,ished b* the oper&tion o4 the ,&6 o4 Bncre&sin%
Ret0rns &nd those est&b,ished 0nder & ,&6 o4 +iminishin% Ret0rns.
Ghi,e the 4ormer tend to p&ss 0nder direct,* co,,ecti7e m&n&%ement,
the ,&tter m&* rem&in 0nder pri7&te contro,, the co,,ecti7e po,ic* bein%
con4ined to sec0rin% 4or co,,ecti7e 0se those economic rents d0e to the
speci&, 7&,0es 6hich p0b,ic needs &ssi%n to 40nds o4 n&t0r&, s0pp,*.
A po,ic* b0i,t 0pon & reco%nition o4 these princip,es o4 co,,ecti7ist
de7e,opment is o4 co0rse in no sense & compromise. Bt c,&ims 4or
co,,ecti7e &ction &,, 6or/ 6hich the comm0nit* c&n pro4it&b,*
0ndert&/eK it reco%nises th&t the &bso,0te &re& o4 th&t 6or/ is
const&nt,* %ro6in% in t6o directions, 4irst &nd 4oremost b* the ripenin%
o4 >ro0tineA ind0str* into the 4orm o4 pri7&te &nti-soci&, monopo,ies,
second,* b* the %ro6in% c&p&cit* o4 p0b,ic m&n&%ement 6hich
e?perience sho0,d e7o/e in p0b,ic bodies. 50t it &,so reco%nises th&t
since the direct ob@ect o4 co,,ecti7e &ction 6i,, be so to economise the
c,&ims 6hich #ociet* sh&,, m&/e 0pon the Bndi7id0&, &s to ,e&7e him &n
e7er-incre&sin% proportion o4 his ener%ies 4or se,4-e?pression, the
&mo0nt o4 ener%* 6hich is or%&nised direct,* 4or co,,ecti7e 6or/ 6i,, be
& diminishin% proportion o4 the &%%re%&te ener%* o4 indi7id0&,s, &nd
th&t there4ore the 4ie,d o4 pri7&te enterprise in &,, dep&rtments o4 e44ort
6i,, %ro6 4&ster th&n the 4ie,d o4 3o,,ecti7ism.
)hese &re no ne6 princip,es, &nd this is no ne6 presentment o4 them.
B4 pr&ctic&, 6or/ers 4or soci&, &nd ind0stri&, re4orms contin0e to i%nore
princip,es, the ine7it&b,e ,o%ic o4 e7ents 6i,, ne7erthe,ess dri7e them
&,on% the p&th o4 3o,,ecti7ism here indic&ted. 50t the* 6i,, p&* the
price 6hich short-si%hted empiricism &,6&*s p&*sK 6ith s,o6, hesit&nt,
&nd st&%%erin% steps, 6ith inn0mer&b,e 4&,se st&rts &nd b&c/s,idin%s,
the* 6i,, mo7e in the d&r/ &,on% &n 0nseen tr&c/ to6&rds &n 0nseen
%o&,. #oci&, de7e,opment m&* be conscio0s or 0nconscio0s. Bt h&s been
most,* 0nconscio0s in the p&st, &nd there4ore s,o6, 6&ste40,, &nd
d&n%ero0s. B4 6e desire to be s6i4ter, s&4er, &nd more e44ecti7e in the
40t0re, it m0st become the conscio0s e?pression o4 the tr&ined &nd
or%&nised 6i,, o4 & peop,e not despisin% theor* &s 0npr&ctic&,, b0t 0sin%
it to 40rnish econom* in &ction.

To+ of the +age
&st 0pd&ted on 3'.<.2''<