The Lessons of History (7 page)

Rome had its socialist interlude under Diocletian. Faced with increasing poverty and restlessness among the masses, and with imminent danger of barbarian invasion, he issued in
A.D.
301 an
Edictum de pretiis,
which denounced monopolists for keeping goods from the market to raise prices, and set maximum prices and wages for all important articles and services. Extensive public works were undertaken to put the unemployed to work, and food was distributed gratis, or at reduced prices, to the poor. The government—which already owned most mines, quarries, and salt deposits—brought nearly all major industries and guilds under detailed control. “In every large
town,” we are told, “the state became a powerful employer,… standing head and shoulders above the private industrialists, who were in any case crushed by taxation.”
⁴²
When businessmen predicted ruin, Diocletian explained that the barbarians were at the gate, and that individual liberty had to be shelved until collective liberty could be made secure. The socialism of Diocletian was a war economy, made possible by fear of foreign attack. Other factors equal, internal liberty varies inversely as external danger.

The task of controlling men in economic detail proved too much for Diocletian's expanding, expensive, and corrupt bureaucracy. To support this officialdom—the army, the court, public works, and the dole—taxation rose to such heights that men lost incentive to work or earn, and an erosive contest began between lawyers finding devices to evade taxes and lawyers formulating laws to prevent evasion. Thousands of Romans, to escape the taxgatherer, fled over the frontiers to seek refuge among the barbarians. Seeking to check this elusive mobility, and to facilitate regulation and taxation, the government issued decrees binding the peasant to his field and the worker to his shop until all his debts and taxes had been paid. In this and other ways medieval serfdom began.
⁴³

China has had several attempts at state socialism. Szuma Ch'ien (
B.C.
145
B.C.
) informs us that to prevent private individuals from “reserving to their sole use the riches of the mountains and the sea in, order to gain a fortune, and from putting the lower classes into subjection to themselves,”
⁴⁴
the Emperor Wu Ti (r. 140
B.C.
– 87
B.C.
) nationalized the resources of the soil, extended governmental direction over transport and trade, laid a tax upon incomes, and established public works, including canals that bound the rivers together and irrigated the fields. The state accumulated stockpiles of goods, sold these when prices were rising, bought more when prices were falling; thus, says Szuma Ch'ien, “the rich merchants and large shop-keepers
would be prevented from making big profits,… and prices would be regulated in the Empire.”
⁴⁵
For a time, we are told, China prospered as never before. A combination of “acts of God” with human deviltry put an end to the experiment after the death of the Emperor. Floods alternated with droughts, created tragic shortages, and raised prices beyond control. Businessmen protested that taxes were making them support the lazy and the incompetent. Harassed by the high cost of living, the poor joined the rich in clamoring for a return to the old ways, and some proposed that the inventor of the new system be boiled alive. The reforms were one by one rescinded, and were almost forgotten when they were revived by a Chinese philosopher-king.

Wang Mang (r.
A.D.
9–23) was an accomplished scholar, a patron of literature, a millionaire who scattered his riches among his friends and the poor. Having seized the throne, he surrounded himself with men trained in letters, science, and philosophy. He nationalized the land, divided it into equal tracts among the peasants, and put an end to slavery. Like Wu Ti, he tried to control prices by the accumulation or release of stockpiles. He made loans at low interest to private enterprise. The groups whose profits had been clipped by his legislation united to plot his fall; they were helped by drought and flood and foreign invasion. The rich Liu family put itself at the head of a general rebellion, slew Wang Mang, and repealed his legislation. Everything was as before.
⁴⁶

A thousand years later Wang An-shih, as premier (1068–85), undertook a pervasive governmental domination of the Chinese economy. “The state,” he held, “should take the entire management of commerce, industry, and agriculture into its own hands, with a view to succoring the working classes and preventing them from being ground into the dust by the rich.”
⁴⁷
He rescued the peasants from the moneylenders by loans at low interest. He encouraged new settlers
by advancing them seed and other aid, to be repaid out of the later yield of their land. He organized great engineering works to control floods and check unemployment. Boards were appointed in every district to regulate wages and prices. Commerce was nationalized. Pensions were provided for the aged, the unemployed, and the poor. Education and the examination system (by which admission to governmental office was determined) were reformed; “pupils threw away their textbooks of rhetoric,” says a Chinese historian, “and began to study primers of history, geography, and political economy.”
⁴⁸

What undermined the experiment? First, high taxes, laid upon all to finance a swelling band of governmental employees. Second, conscription of a male in every family to man the armies made necessary by barbarian invasions. Third, corruption in the bureaucracy; China, like other nations, was faced with a choice between private plunder and public graft. Conservatives, led by Wang An-shih's brother, argued that human corruptibility and incompetence make governmental control of industry impracticable, and that the best economy is a
laissez-faire
system that relies on the natural impulses of men. The rich, stung by the high taxation of their fortunes and the monopoly of commerce by the government, poured out their resources in a campaign to discredit the new system, to obstruct its enforcement, and to bring it to an end. This movement, well organized, exerted constant pressure upon the Emperor. When another period of drought and flood was capped by the appearance of a terrifying comet, the Son of Heaven dismissed Wang An-shih, revoked his decrees, and called the opposition to power.
⁴⁹

The longest-lasting regime of socialism yet known to history was set up by the Incas in what we now call Peru, at some time in the thirteenth century. Basing their power largely on popular belief that the earthly sovereign was the delegate of the Sun God, the Incas organized
and directed all agriculture, labor, and trade. A governmental census kept account of materials, individuals, and income; professional “runners,” using a remarkable system of roads, maintained the network of communication indispensable to such detailed rule over so large a territory. Every person was an employee of the state, and seems to have accepted this condition cheerfully as a promise of security and food. This system endured till the conquest of Peru by Pizarro in 1533.

On the opposite slope of South America, in a Portuguese colony along the Uruguay River, 150 Jesuits organized 200,000 Indians into another socialistic society (c. 1620–1750). The ruling priests managed nearly all agriculture, commerce, and industry. They allowed each youth to choose among the trades they taught, but they required every able-bodied person to work eight hours a day. They provided for recreation, arranged sports, dances, and choral performances of a thousand voices, and trained orchestras that played European music. They served also as teachers, physicians, and judges, and devised a penal code that excluded capital punishment. By all accounts the natives were docile and content, and when the community was attacked it defended itself with an ardor and ability that surprised the assailants. In 1750 Portugal ceded to Spain territory including seven of the Jesuit settlements. A rumor having spread that the lands of these colonies contained gold, the Spanish in America insisted on immediate occupation; the Portuguese government under Pombal (then at odds with the Jesuits) ordered the priests and the natives to leave the settlements; and after some resistance by the Indians the experiment came to an end.
⁵⁰

In the social revolt that accompanied the Protestant Reformation in Germany, communistic slogans based on the Bible were advanced by several rebel leaders. Thomas Münzer, a preacher, called upon the
people to overthrow the princes, the clergy, and the capitalists, and to establish a “refined society” in which all things were to be in common.
⁵¹
He recruited an army of peasants, inspired them with accounts of communism among the Apostles, and led them to battle. They were defeated, five thousand of them were slain, Münzer was beheaded (1525). Hans Hut, accepting Münzer's teachings, organized at Austerlitz an Anabaptist community that practiced communism for almost a century (c. 1530–1622). John of Leiden led a group of Anabaptists in capturing control of Münster, the capital of Westphalia; there, for fourteen months, they maintained a communistic regime (1534–35).
⁵²

In the seventeenth century a group of “Levellers” in Cromwell's army begged him in vain to establish a communistic utopia in England. The socialist agitation subsided during the Restoration, but it rose again when the Industrial Revolution revealed the greed and brutality of early capitalism—child labor, woman labor, long hours, low wages, and disease-breeding factories and slums. Karl Marx and Friedrich Engels gave the movement its Magna Carta in the
Communist Manifesto
of 1847, and its Bible in
Das Kapital
(1867–95). They expected that socialism would be effected first in England, because industry was there most developed and had reached a stage of centralized management that seemed to invite appropriation by the government. They did not live long enough to be surprised by the outbreak of Communism in Russia.

Why did modern socialism come first in a Russia where capitalism was in its infancy and there were no large corporations to ease the transition to state control? Centuries of peasant poverty and reams of intellectual revolt had prepared the way, but the peasants had been freed from serfdom in 1861, and the intellectuals had been inclined toward an anarchism antipodal to an all-absorbing state. Probably the
Russian Revolution of 1917 succeeded because the Czarist government had been defeated and disgraced by war and bad management; the Russian economy had collapsed in chaos, the peasants returned from the front carrying arms, and Lenin and Trotsky had been given safe conduct and bon voyage by the German government. The Revolution took a Communistic form because the new state was challenged by internal disorder and external attack; the people reacted as any nation will react under siege—it put aside all individual freedom until order and security could be restored. Here too Communism was a war economy. Perhaps it survives through continued fear of war; given a generation of peace it would presumably be eroded by the nature of man.

Socialism in Russia is now restoring individualistic motives to give its system greater productive stimulus, and to allow its people more physical and intellectual liberty. Meanwhile capitalism undergoes a correlative process of limiting individualistic acquisition by semi-socialistic legislation and the redistribution of wealth through the “welfare state.” Marx was an unfaithful disciple of Hegel: he interpreted the Hegelian dialectic as implying that the struggle between capitalism and socialism would end in the complete victory of socialism; but if the Hegelian formula of thesis, antithesis, and synthesis is applied to the Industrial Revolution as thesis, and to capitalism versus socialism as antithesis, the third condition would be a synthesis of capitalism and socialism; and to this reconciliation the Western world visibly moves. Year by year the role of Western governments in the economy rises, the share of the private sector declines. Capitalism retains the stimulus of private property, free enterprise, and competition, and produces a rich supply of goods; high taxation, falling heavily upon the upper classes, enables the government to provide for a self-limited population unprecedented services in education,
health, and recreation. The fear of capitalism has compelled socialism to widen freedom, and the fear of socialism has compelled capitalism to increase equality. East is West and West is East, and soon the twain will meet.

X. Government and History

Alexander Pope thought that only a fool would dispute over forms of government. History has a good word to say for all of them, and for government in general. Since men love freedom, and the freedom of individuals in society requires some regulation of conduct, the first condition of freedom is its limitation; make it absolute and it dies in chaos. So the prime task of government is to establish order; organized central force is the sole alternative to incalculable and disruptive force in private hands. Power naturally converges to a center, for it is ineffective when divided, diluted, and spread, as in Poland under the
liberum veto;
hence, the centralization of power in the monarchy by Richelieu or Bismarck, over the protest of feudal barons, has been praised by historians. A similar process has centered power in the federal government in the United States; it was of no use to talk of “states' rights” when the economy was ignoring state boundaries and could be regulated only by some central authority. Today international government is developing as industry, commerce, and finance override frontiers and take international forms.

Monarchy seems to be the most natural kind of government, since it applies to the group the authority of the father in a family or of the
chieftain in a warrior band. If we were to judge forms of government from their prevalence and duration in history we should have to give the palm to monarchy; democracies, by contrast, have been hectic interludes.