th, important as the point is in its bearings upon
modern Socialist theory. While the distinction does not affect the
argument that the concentration of capital and industry makes their
socialization possible, it is nevertheless an important matter. If, as
some writers, notably Bernstein,[107] the Socialist, have argued, the
concentration of capital and industry really leads to the
decentralization of wealth, and the diffusion of the advantages of
concentration among the great mass of the people, especially by creating
a new class of salaried dependents, then, instead of creating a class of
exploiters ever becoming less numerous, and a class of proletarians ever
becoming more numerous, the tendency of modern capitalism is to
distribute the gains of industry over a widening area--a process of
democratization in fact. It is very evident that if this contention is a
correct one, there must be a softening rather than an intensifying of
class antagonisms; a tendency away from class divisions, and to greater
satisfaction with present conditions, rather than increasing discontent.
If this theory can be sustained, the advocates of Socialism will be
obliged to change the nature of their propaganda from an appeal to the
economic interest of the proletariat to the general ethical sense of
mankind. There can be no successful movement based upon the interests
of one class if the tendency of modern capitalism is to democratize the
life of the world and diffuse its wealth over larger social areas than
ever before.

The exponents of this theory have based their arguments upon statistical
data chiefly relating to: (1) The number of taxable incomes in countries
where incomes are taxed; (2) the number of investors in industrial and
commercial countries; (3) the number of savings bank deposits. As often
happens when reliance is placed upon the direct statistical method, the
result of all the discussion and controversy upon this subject is
extremely disappointing and confusing. The same figures are used to
support both sides of the argument with equal plausibility. The
difficulty lies in the fact that the available statistics do not include
all the facts essential to a scientific and conclusive result.

It is not intended here to add to the Babel of voices in this
discussion, but to present the conclusions of two or three of the most
careful investigators in this field. Professor Ely[108] quotes a table
of incomes in the Grand Duchy of Bad