ts place as a
party of permanent opposition to capitalism, like the Socialist parties
of Europe--until industry finally and decisively surpasses agriculture,
and the industrial working class really becomes the most powerful
element in society.

Space does not permit the tracing of the "State Socialist" tendency
in other countries than Great Britain, the United States, and
Australasia. Originally a brief chapter was here inserted showing
the similar tendencies in Germany. This is now omitted, but the
frequent reference to Germany later in dealing with the Socialist
movement makes a brief statement of the German situation essential.
For this purpose it will be sufficient to quote a few of the
principal statements of the excellent summary and analysis by
William C. Dreher entitled "The German Drift towards Socialism":

"The German Reichstag passed a law in May, 1910, for the regulation
of the potash trade, a law which goes further _in the direction of
Socialism_ than any previous legislation in Germany. It assigns to
each mine a certain percentage of the total production of the
country, and lays a prohibitory tax upon what it produces in excess
of this allotment. It fixes the maximum price for the product in
the home market, and prohibits selling abroad at a lower price. A
government bureau supervises the industry, sees that the prices and
allotments are observed, examines new mines to determine their
capacity, and readjusts allotments as new mines reach the producing
stage....

"But the radical features of the law are not completed in the
foregoing description. The bill having reduced potash prices, the
mine owners threatened to recoup themselves by reducing wages. But
the members of the Reichstag were not to be balked by such threats;
they could legislate about wages just as easily as about prices and
allotments. So they amended the bill by providing that if any owner
should reduce wages without the consent of his employees, his
allotment should be restricted in the corresponding proportion....

"While the law is indeed decidedly Socialistic in tendency, it is
not yet Socialism. It hedges private property about with sharper
restrictions than would be thought justifiable in countries where,
as in the United States, the creed of individualism is still
vig