us say, at 50 per cent their present
market value, a vast amount would still be required. The Socialist
answer to this question is very brightly given by America's most popular
and influential Socialist organ, the _Appeal to Reason_. It reminds us
that the Socialists, once having the reins of political power, will then
be the possessors of all the credit of the government.

"How much money," asks the _Appeal_, "did Morgan need in order to
buy up all the independent steel companies for the steel trust?"
And it answers: "Not a penny. Rather than needing money, he issued
stock in the new concern in payment for the old independent mills,
and after all was done proceeded to almost double his stock! In
other words, instead of needing money, he acquired a vast sum in
the transaction. One who is familiar with the way the railroads
have been built and the vast fortunes erected understands that
there was almost no investment. It all came through a series of
tricks. Those tricks, as honest in the reversal as when the
capitalist played them, can be reversed. Hardly a corporation but
has forfeited its charter. With the charter cancelled stocks would
tumble and the water would speedily go. Socialists are not fools
that they should merely fall into the hands of men who think that
they can unload on them in such a manner as to saddle a perpetual
debt on the people. If the steel trust, after organizing and buying
up smaller concerns, could still issue vast series of stocks and
bonds, why could not the Socialists issue all the money they needed
to accomplish the same things? And would not the money based on
lands and mills be as good security as the money we now have based
on nothing under the sun but inflated railroad and trust stocks
[securities]?"

Undoubtedly some such method will be followed--with those essential
industries that will not already have become collective property under
capitalism.

In so far as "State Socialism" or collectivist capitalism will have
paved the way, by extensive government ownership, the problem of
confiscation or compensation becomes much simplified. Kautsky has very
ably summarized the prevailing Socialist plan for dealing with it at
this point:--

"As soon as all capitalist wealth had taken the form of
(government) bonds, it would be possible to raise a progressive
in