for them to the end as against autocracy. The great masses have not yet found that national system of discipline by which alone it can hope to combat Autocracy. And what prevents them from securing this national discipline? Nothing but the Marxian theories on classes and masses, Capitalism and Labour.

These erroneous Marxian theories and beliefs and the school of Laissez-faire have done more to kill national discipline and co-operation than anything else. And until they are dissipated we shall never be able to introduce a National System of Economics-which, in reality, means a National System of Ordered Governmentthrough which alone democracy can maintain, either in the defensive or offensive, the principles of Liberty, Freedom and Justice; or secure a fair distribution of the national wealth produced to the worker.

The great American leader, Samuel Gompers, fully appreciates the general situation, and, as previously shown, he will allow none of the Marxian theories to prevail in the councils of the great labour association over which he has the honour to preside. Gompers' policy is to identify himself as closely as possible with the management of great industries, and, by this means, to secure for American workers through the medium of wages the distribution of a fair proportion of the

new wealth created daily, very much on the lines Mr. John Hodge follows in this country on behalf of the steel workers. There is no revolutionary ferment in the minds of these gentlemen -there is no desire to scrap the machinery, as in the case of the French Revolution, or as in the case of Russia to-day, by which society has reached its present state of civilisation. They may lead people to believe they do at timesthat is legitimate and permissible-but they know very well the limits to which they can wisely go.

Society as at present constituted is by no means perfect, but it can be stated with certainty, that there is no alternative to it. Our main achievement should be to mould present society into a more perfect form; but, in the process of doing so, we should all exercise the greatest care to prevent from collapse the props on which our present civilisation rests. And the reason for uttering this warning is that we are drifting to the danger zone through sheer misunderstanding of the issues involved. Every historical period may have laws of its own, but the underlying fundamental principles of human existence will always remain constant. The true ideals are there, but the difficulty hitherto has been to perceive and define them, in a manner that will find general acceptance. Economic science

is not yet by any means perfect, it may make a great advance in the near future, but it will certainly not be through the Marxian theories advocated by modern Socialists such as Mr. Marriott and the Maximalists of Russia.

CHAPTER II

ON THE CONSCRIPTION OF CAPITAL

A GREAT deal of interest has been shown in Mr. Bonar Law's reply to a labour deputation which on November 24, 1917, placed before him proposals for a conscription of wealth as a means of liquidating the National Debt; the theory underlying the proposal being contained in a statement made by a well-known labour leader, Mr. Adamson, in the House of Commons as follows:

"I want to say to the Prime Minister and to the Government in all seriousness, if you imagine that you are going on making call after call for men without some definite and distinct arrangement as to the conscription of wealth, then you will find that you are up against a very difficult proposition."

The assumption that a Government can conscript capital very much on the lines that it has a right, in a national emergency, to conscript men for military service is, needless to say, erroneous; but it is nevertheless necessary to demonstrate that it is so by careful reasoning,

if this Marxian doctrine is to be adequately dealt with, especially if we are to avoid the spectacle which is now taking place in Russia, where the Soviets have already put this extraordinary Marxian doctrine into practice by seizing all property, and the securities and liquid funds of the Banks. We see the fact clearly demonstrated that Russian society cannot be restored so long as the Soviets continue to pursue this doctrine to its logical conclusion. If the motive which underlies the conscription of capital be to bring about an entire dissolution of society then its strict application would certainly be effective. But the masses who labour would be the ultimate losers.

The deputation which waited upon Mr. Bonar Law were no doubt inspired with a desire to save the great mass of the people from the oppression of taxation after the war, with which laudable desire we are in fullest sympathy; but we contend that this cannot be effectively achieved by a conscription of capital. Such a policy lacks all moral consideration, and would penalise most those who, by abstinence and thrift, had provided for possible future needs, and particularly those who are physically incapable of restoring the funds of which they would be deprived by its application, the revenue from which is perhaps necessary to their sustenance.