individuals
from the rest of the mass, and why the functions of the people should
be restricted to the exercise of a mere check. Therefore the state, if
it exists for all, must be governed by all, and not by a small
minority: if the state is for the people, sovereignty must reside in
the people: if all individuals have the right to govern the state,
liberty is no longer sufficient; equality must be added: and if
sovereignty is vested in the people, the people must wield all
sovereignty and not merely a part of it. The power to check and curb
the government is not sufficient. The people must be the government.
Thus, logically developed, Liberalism leads to Democracy, for
Democracy contains the promises of Liberalism but oversteps its
limitations in that it makes the action of the state positive,
proclaims the equality of all citizens through the dogma of popular
sovereignty. Democracy therefore necessarily implies a republican form
of government even though at times, for reasons of expediency, it
temporarily adjusts itself to a monarchical regime.

Once started on this downward grade of logical deductions it was
inevitable that this atomistic theory of state and society should pass
on to a more advanced position. Great industrial developments and the
existence of a huge mass of working men, as yet badly treated and in a
condition of semi-servitude, possibly endurable in a regime of
domestic industry, became intolerable after the industrial revolution.
Hence a state of affairs which towards the middle of the last century
appeared to be both cruel and threatening. It was therefore natural
that the following question be raised: "If the state is created for
the welfare of its citizens, severally considered, how can it tolerate
an economic system which divides the population into a small minority
of exploiters, the capitalists, on one side, and an immense multitude
of exploited, the working people, on the other?" No! The state must
again intervene and give rise to a different and less iniquitous
economic organization, by abolishing private property, by assuming
direct control of all production, and by organizing it in such a way
that the products of labor be distributed solely among those who
create them, viz., the working classes. Hence we find Socialism, with
its new economic organization of society, abolishing private ownership
of capital and of the instruments and means of production, socializing
the product, suppressin