most widely diffused, it is not an opinion, but a passion. It is the religion of the bulk of the artizans in all the great towns throughout France, Switzerland, and Germany; and in spite of the coarse sensualism that often mingles with it, is more like that stern, self-denying, irresistible fanaticism which in the seventeenth century overturned the English monarchy, than any popular feeling that has since appeared in Europe. These men have in them nothing of the timid, prudent, calculating spirit of the middle class. Whenever the summons comes, they are ready to march up to the cannon's mouth, or to fill the deepest fosse with their bodies, in order that their comrades may pass over them to storm, and sack, and devastate every standing structure of the old society. Their enthusiasm, indeed, would probably bear any trial better than the trial of a Socialist experiment itself; for it is very much easier to die on a barricade, or even to endure transportation to Cayenne, than to work on for a twelvemonth side by side with a lazy cooperative colleague, and see him regularly swallowing the half of one's own earnings.

Socialist Tendencies in England.

But there are some who think that this contagion, the spread of which has done much to undermine the fabric of continental society, is not at all to be dreaded in England; and that the instinctive good sense of English workmen must always protect them from such a delusion. The superior practical sense of the English workman is, indeed, a real and most fortunate distinction; but an error which can obtain dominion over such minds as those of the highly-educated advocates of Socialism in England, may very easily assume shapes which, under favourable circumstances, would spread it far and wide amongst the working class. There is, moreover, a peculiarity about working-class politics which is frequently lost sight of, but is of the highest importance; and that is, the love which they have for abstract and elementary discussion. The political shop

keeper takes as keen an interest in the differences between Lord John Russell and Lord Derby, as if he himself were either hoping to gain or fearing to lose some ministerial appointment. The politician of the workshop cares not a rush for either of the great leaders. He is well convinced that they are both aristocrats and enemies of the people. The topics which he deems worthy of discussion are such as the right of property in land, the hostile claims of labour and capital; and, in short, his intellect is perpetually loosening up one or other of the foundations of society. What can be a greater mistake than to imagine that there is not here a soil, all ready prepared, for a general and rapid upgrowth of Socialism, whenever a man shall arise who knows how to turn the capacity to account, and chooses to cast in the seed?

Reform in the Law of Partnership.

Few things can be more important at the present time than to anticipate and prevent any such movement, by providing, if it be possible, channels into which the tendencies which would lead to Socialism may find outlets, not only safe, but eminently beneficial. That this can be done, even with facility, has been shown by Mr. Babbage, in his "Economy of Machinery and Manufactures," by Mr. Mill, in his most valuable chapter on the "Law of Partnership," and by the evidence of various witnesses before Mr. Slaney's committee. In this case a reform is suggested, which is not discordant with the doctrine of leaving things to themselves; but is, on the contrary, a very simple inference from that doctrine, although by some unfortunate coincidence it does incur the condemnation of some of the very persons who, in consistency, should be its chief advocates. The substance of the reform is, that the law of partnership', which amongst us is fettered

1 Upon this subject there is an article full of instructive details in the Edinburgh Review for April, 1852. The title is "Investments for the Working Classes." This paper is clear, forcible, and in admirable tone.

with restrictions, not thought necessary either in France or the United States, should be so altered as to leave men free to form partnerships and joint-stock companies, either with liability limited to the capital subscribed, or with limited liability on the part of all the partners in a concern, except the acting managers; and further, to provide partners, at least in concerns of small magnitude, with some cheap and simple remedy against each other, instead of the present system, in which a partnership dispute compels all the parties to plunge head foremost into the unfathomable and hopeless gulf of the Court of Chancery.

Popular Belief respecting Profits.

The peculiar state of working-class opinion which renders this change advisable even on grounds of the most selfish policy, is worthy of notice. The germ of Socialism, ready at any moment to be quickened into most dangerous life, lies in the belief, wide-spread and deeply-rooted amongst the operative class, that the capitalist obtains more than his just share of the produce of labour. In any intelligible sense of the word justice this is a mistake, a "popular delusion," which may yet furnish matter for a new and painful chapter in Dr. Mackay's valuable work. It is a delusion, because, if capital is to have any share at all, which will scarcely be denied, it could hardly have less than in cases of the largest investment it has at present. Whatever be the proper rate of profit in any case, the quantity must be in proportion to the quantity of the capital. There is no other way of measuring it. This, however, makes the share of the capitalist class in England seem to be very great, because the absolute quantity of capital that has been accumulated is enormous, but the rate of profit is lower than in any part of the world, and is constantly tending to a point at which no man would think it worth while to exercise the self-denial involved even in the easiest kind of saving. The most accurate index to the general rate of profit is the rate of interest on

Profits in

Government securities, which is now three per cent. business on large capitals may be four, five, seven, or ten per cent., according to trouble and risk, and are kept at the lowest point by the most intense competition; but three per cent. is all that can be had for the mere use of capital where the security is perfect, and where the return is dropped like a ripe fruit into the mouth of the capitalist as he sits in his easy chair. Now there is not a workman in England who, when he has made a little capital by his own savings, does not think three per cent. a paltry and beggarly return for it. It is as clear to him as daylight, that the return is too small, because he compares it with the gross returns of the great millowner, whose accumulated stock enables him to vie with the peerage in the splendour of his establishment, forgetting the great hazards to which that stock is continually exposed, from the storms of the ocean, from the destruction of markets by political revolutions, and still more from the sudden and startling variations in the produce of the earth which are brought about by mysterious natural causes. When these risks and drawbacks are duly allowed for, it is certain that the average return to capital in England is kept down to its lowest point, by a competition far more intense and unsleeping than that which amongst the labouring class depresses wages. It is certain, too, that in proportion to the greatness of the capital is the smallness of the rate of profit, and the whole tendency of our monetary system is to make the proportionate value of capital sink more rapidly than the value of labour. The power of those who possess capital may be a growing power, but it does not grow at all in proportion to the growth of the capital itself.

The operative, however, is apt to believe that the division of the produce between himself and the owner of those immensely expensive tools which enable the production to take place, is never exactly what it should be. He thinks that he, a child of Adam like the other, is, according to the French term, exploité, that is to say, habitually worked, or used up, for the profit of his employer, and during those slow monotonous hours of toil, that

thought not seldom stirs within him a silent yet grim resentment. It is this which gives almost a savage virulence to the feelings called forth by strikes. And it is truly wonderful, that observing men are not often startled and dismayed by the indications of social danger which every one of those transactions furnishes. The broad fact which every such contest makes apparent is this, that in the region of most active industry society is split into two hostile camps, and that the only tranquillity which subsists between them is that of a convenient but hollow truce, which may be broken at an instant's warning. Yet, even in its foreign relations, it is true of the vast industrial system of which this is the condition, that it stands, as Burke said of the Constitution, "on a nice equipoise, with steep precipices and deep waters upon all sides of it." Never was policy more clear than that of removing from what is so situated the elements of internal disorder.

Workmen may become Capitalists.

The main source of the danger lies in the fact that the workman does not understand the position of the capitalist. The remedy is, to put him in the way of learning it by practical experience. A simplification of the law of partnership could not fail to have this effect, for the disposition of the working classes to invest their own savings in joint-stock industrial enterprises is manifesting itself with increased strength from day to day. In many departments of industry, of course, their small capitals would be of no use, and in many, the vigilant despotism of a single owner or an absolute manager is indispensable to success; but what is wanted is, that men shall be free, and shall find legal facilities for making every experiment which shall seem to themselves to promise profit. They are anxious to do this. They ought to have leave to do it. They will no doubt be often deceived. They will make mistakes, and will suffer losses. With the ignorance, the rashness, and the gullibility which is found in men, there cannot but be victims. But what