Liberalism

no more; that the residue of existing wealth should be at the disposal of the community for social purposes. Further, it is the right, in the same sense, of every person capable of performing some useful social function that he should have the opportunity of so doing, and it is his right that the remuneration that he receives for it should be his property, i.e. that it should stand at his free disposal enabling him to direct his personal concerns according to his own preferences. These are rights in the sense that they are conditions of the welfare of its members which a well-ordered State will seek by every means to fulfil. But it is not suggested that the way of such fulfilment is plain, or that it could be achieved at a stroke by a revolutionary change in the tenure of property or the system of industry. It is, indeed, implied that the State is vested with a certain overlordship over property in general and a supervisory power over industry in general, and this principle of economic sovereignty may be set side by side with that of economic justice as a no less fundamental conception of economic Liberalism. For here, as elsewhere, liberty implies control. But the manner in which the State is to exercise its controlling power is to be learnt by experience and even in large measure by cautious experiment. We have sought to determine the principle which should guide its action, the ends at which it is to aim. The systematic study of the means lies rather within the province of economics; and the teaching of history seems to be that progress is more continuous and secure when men are content to deal with problems piecemeal than when they seek to destroy root and branch in order to erect a complete system which has captured the imagination.

It is evident that these conceptions embody many of the ideas that go to make up the framework of Socialist teaching, though they also emphasize elements of individual right and personal independence, of which Socialism at times appears oblivious. The distinction that I would claim for economic Liberalism is that it seeks to do justice to the social and individual factors in industry alike, as opposed to an abstract Socialism which emphasizes the one side and an abstract Individualism which leans its whole weight on the other. By keeping to the conception of harmony as our clue we constantly define the rights of the individual in terms of the common good, and think of the common good in terms of the welfare of all the individuals who constitute a society. Thus in economics we avoid the confusion of liberty with competition, and see no virtue in the right of a man to get the better of others. At the same time we are not led to minimize the share of personal initiative, talent, or energy in production, but are free to contend for their claim to adequate recognition. A Socialist who is convinced of the logical coherence and practical applicability of his system may dismiss such endeavours to harmonize divergent claims as a halfhearted and illogical series of compromises. It is equally possible that a Socialist who conceives Socialism as consisting in essence in the cooperative organization of industry by consumers, and is convinced that the full solution of industrial problems lies in that direction, should in proportion as he considers the psychological factors in production and investigates the means of realizing his ideal, find himself working back along the path to a point where he will meet the men who are grappling with the problems of the day on the principles here suggested, and will find himself able to move forward in practice in the front ranks of economic Liberalism. If this is so, the growing cooperation of political Liberalism and Labour, which in the last few years has replaced the antagonism of the ’nineties, is no mere accident of temporary political convenience, but has its roots deep in the necessities of Democracy.

IX

The Future of Liberalism

The nineteenth century might be called the age of Liberalism, yet its close saw the fortunes of that great movement brought to their lowest ebb. Whether at home or abroad those who represented Liberal ideas had suffered crushing defeats. But this was the least considerable of the causes for anxiety. If Liberals had been defeated, something much worse seemed about to befall Liberalism. Its faith in itself was waxing cold. It seemed to have done its work. It had the air of a creed that is becoming fossilized as an extinct form, a fossil that occupied, moreover, an awkward position between two very active and energetically moving grindstones⁠—the upper grindstone of plutocratic imperialism, and the nether grindstone of social democracy. “We know all about you,” these parties seemed to say to Liberalism; “we have been right through you and come out on the other side. Respectable platitudes, you go maundering on about Cobden and Gladstone, and the liberty of the individual, and the rights of nationality, and government by the people. What you say is not precisely untrue, but it is unreal and uninteresting.” So far in chorus. “It is not up to date,” finished the Imperialist, and the Socialist bureaucrat. “It is not bread and butter,” finished the Social democrat. Opposed in everything else, these two parties agreed in one thing. They were to divide the future between them. Unfortunately, however, for their agreement, the division was soon seen to be no equal one. Whatever might be the ultimate recuperative power of Social Democracy, for the time being, in the paralysis of Liberalism, the Imperial reaction had things all to itself. The governing classes of England were to assert themselves. They were to consolidate the Empire, incidentally passing the steam roller over two obstructive republics. They were to “teach the law” to the “sullen new-caught peoples” abroad. They were to reestablish the Church at home