which have escaped my notice in the American edition, and which obscure
the meaning of perhaps four or five sentences, for the introduction of a
few additional notes, and for the translation of dollars and cents into
pounds and shillings, the English and the American editions are the
same.

W. H. M.

_January, 1908._

CONTENTS

CHAPTER I

THE HISTORICAL BEGINNING OF SOCIALISM AS AN OSTENSIBLY
SCIENTIFIC THEORY

Socialism an unrealised theory. In order to discuss it, it must
be defined.

Being of no general interest except as a nucleus of some general
movement, we must identify it as a theory which has united large
numbers of men in a common demand for change.

As the definite theoretical nucleus of a party or movement,
socialism dates from the middle of the nineteenth century, when
it was erected into a formal system by Karl Marx.

We must begin our examination of it by taking it in this, its
earliest, systematic form.

CHAPTER II

THE THEORY OF MARX AND THE EARLIER SOCIALISTS SUMMARISED

The doctrine of Marx that all wealth is produced by labour.

His recognition that the possibilities of distribution rest on
the facts of production.

His theory of labour as the sole producer of wealth avowedly
derived from Ricardo's theory of value.

His theory of capital as consisting of implements of production,
which are embodiments of past labour, and his theory of modern
capitalism as representing nothing but a gradual abstraction by
a wholly unproductive class, of these implements from the men
who made them, and who alone contribute anything to their
present productive use.

His theory that wages could never rise, but must, under
capitalism, sink all over the world to the amount which would
just keep the labourers from starvation, when, driven by
necessity, they will rebel, and, repossessing themselves of
their own implements, will be rich forever afterwards by using
them for their own benefit.

CHAPTER III

THE ROOT ERROR OF THE MARXIAN THEORY.
ITS OMISSION OF DIRECTIVE ABILITY.
ABILITY AND LABOUR DEFINED

The theory of Marx analysed. It is true as applied to primitive
communities, where t