WHAT IS CAPITALISM.

Manawatu Herald, Volume XLVIII, Issue 3001, 20 February 1926, Page 4

WHAT IS CAPITALISM.

A SYSTEM OR A PRINCIPLE?

In common parlance we talk of the capitalist system. Is there any such thing? The control and use of capital is not confined to one system, but is found in conjunction with many and varied systems. Private ownership of capital is not a sufficient synonym wherewith to define capitalism. Capital may be the property of the individual, community, State or Empire. It may, indeed, be internationally held and used. The assumption that the institution of private ownership is capitalism must be set aside when we refer to State Capitalism. Both individualist and collectivist in character are the plans and methods on which capital is used und directed in industrial enterprises. We cannot say that this particular industrial or commercial system is capitalist and the other not, since all are capitalist, however widely differing. Socialist writers arc . fond of quoting the period in English history referred to as that of the “Industrial Revolution.” But the utterly callous industrialism of that day has gone. If that was the capitalist system then apparently capitalism is ended. Between the system of a Henry Ford and that of the Early Cotton Spinners of England there is a difference that is all comprehensive. The old system was inhuman, the new is humane. If both are capitalist then we must search somewhere else than in a fixed system for the real meaning of the words capitalist and capitalism. By reference to analogy it seems to us that the more correct idea will be discovered. Individualism is the creed or principle of regarding the individual as most essential. Socialism affirms the same pneiple with respect to the social organism. Capitalism may be taken then as the principle or ideas which affirm the essential need of capital in the life of both the individual and social organism of human society. The capitalist is one who recognises the value of capital and L skiled'n a greater or lesser degree

u its proper use. One possessing much wealth, which may be used as capital, is not necessarily a capitalist; he may be merely a waster of

wealth. Our conclusion is that capitalism is not a fixed system but the principle or'idea of capital preset’vaton. The virtue of this principle is hard to be disputed. Man canlot live without capital. The social systems classed as capitalist which have been failures are found on examination to have failed not because they were capitalist but on account >£ 'their lack of relation to sound

not be destroyed. Their error is due to'them thinking of it as a economic principles owing to the limited vision of the individuals or the times, which espoused them. Socialists who talk of destroying capitalism are talking wildly. Its course may be altered, but it cansystem which can readily be put aside instead of recognising that it ;t is a principle on which the lite if evilised man depends. Even a Socialist State must depend on capital since it is only surplus wealth saved for future use. (Contributed by tbe New Zealand Welfare League).