t the disposal of capitalist governments, one of whose prime
functions is to prevent the increase of the political and economic power
of the working people. And, although the State employees would probably
receive a somewhat better treatment than they had while the industry was
privately owned, they would simply form a sort of aristocracy of labor
opposed in general to the interests of the working people.

"Like every State," says Kautsky, "the modern State is in the first
place a tool for the protection of the general interests of the
ruling classes. It changes its nature in no way if it takes over
functions of general utility which aim at advancing the interests
not only of the ruling classes, but also of those of society as a
whole _and_ of the ruling classes, and on no condition does it take
care of these functions in a way which might threaten the general
interests of the ruling classes or their domination.... If the
present-day State nationalizes certain industries and functions, it
does this, not to put limitations on capitalistic exploitation, but
to protect and to strengthen the capitalistic mode of production,
or in order itself to take a share in this exploitation, to
increase its income in this way, and to lessen the payments that
the capitalist class must obtain for its own support in the way of
taxes. And as an exploiter, the State has this advantage over
private capitalists: that it has at its disposal to be used against
the exploited not only the economic powers of the capitalists, but
the political force of the State." (My italics.)

As an illustration of Kautsky's reference to the lessening of taxes
through the profits of government ownership, it may be pointed out that
the German Socialists fear the further nationalization of industries in
Germany on account of the danger that with this increased income the
State would no longer depend on the annual grants of the Reichstag and
would then be in a position to govern without that body. The king of
Prussia and the Emperor of Germany could in that event rule the country
much as the present Czar rules Russia.

As a rule, outside of Great Britain, the advocates of the collectivist
program are also aware that their "Socialism" is not that of the
Socialist movement. In an article in the _Atlantic Monthly_, Mr. John
Martin, for example, indicates the "State Socialist"