ocialism of
the more ignorant classes, and also of the popular agitator.

It is, moreover, still used as an instrument of agitation by
many who personally repudiate it. The case of Mr. Hillquit.

The doctrine of Marx, therefore, still requires exposure.

Further, it is necessary to understand this earlier form of
socialistic theory in order to understand the later.

CHAPTER VI

REPUDIATION OF MARX BY MODERN SOCIALISTS, CONTINUED.
THEIR RECOGNITION OF CAPITAL AS THE IMPLEMENT OF DIRECTIVE
ABILITY.
THEIR NEW POSITION, AND THEIR NEW THEORETICAL DIFFICULTIES

The more educated socialists of to-day, besides virtually
accepting the argument of the preceding chapters with regard to
labour, virtually accept the argument set forth in them with
regard to capital.

Mr. Sidney Webb, for example, recognises it as an implement of
direction, the only alternative to which is a system of legal
coercion.

Other socialists advocate the continued use of wage-capital as
the implement of direction, but they imagine that the situation
would be radically changed by making the "state" the sole
capitalist.

But the "state," as some of them are beginning to realise, would
be merely the private men of ability--the existing
employers--turned into state officials, and deprived of most of
their present inducements to exert themselves.

A socialistic state theoretically could always command labour,
for labour can be exacted by force; but the exercise of ability
must be voluntary, and can only be secured by a system of
adequate rewards and inducements.

Two problems with which modern socialism is confronted: How
would it test its able men so as to select the best of them for
places of power? What rewards could it offer them which would
induce them systematically to develop, and be willing to
exercise, their exceptional faculties?

CHAPTER VII

PROXIMATE DIFFICULTIES.
ABLE MEN AS A CORPORATION OF STATE OFFICIALS

How are the men fittest for posts of industrial power to be
selected from the less fit?

This problem solved automatically by the existing system of
private and separate capitals.