A Modern Utopia

§ 7

So presently to bed and to sleep, but not at once to sleep. At first my brain, like a dog in unfamiliar quarters, must turn itself round for a time or so before it lies down. This strange mystery of a world of which I have seen so little as yet – a mountain slope, a twilit road, a traffic of ambiguous vehicles and dim shapes, the window lights of many homes – fills me with curiosities. Figures and incidents come and go, the people we have passed, our landlord, quietly attentive and yet, I feel, with the keenest curiosity peeping from his eyes, the unfamiliar forms of the house parts and furnishings, the unfamiliar courses of the meal. Outside this little bedroom is a world, a whole unimagined world. A thousand million things lie outside in the darkness beyond this lit inn of ours, unthought-of possibilities, overlooked considerations, surprises, riddles, incommensurables, a whole monstrous intricate universe of consequences that I have to do my best to unravel. I attempt impossible recapitulations and mingle the weird quality of dream stuff with my thoughts.

Athwart all this tumult of my memory goes this queer figure of my unanticipated companion, so obsessed by himself and his own egotistical love that this sudden change to another world seems only a change of scene for his gnawing, uninvigorating passion. It occurs to me that she also must have an equivalent in Utopia, and then that idea and all ideas grow thin and vague, and are dissolved at last in the rising tide of sleep…

CHAPTER THE THIRD
Utopian Economics

§ 1

These modern Utopians with the universally diffused good manners, the universal education, the fine freedoms we shall ascribe to them, their world unity, world language, world-wide travellings, world-wide freedom of sale and purchase, will remain mere dreamstuff, incredible even by twilight, until we have shown that at that level the community will still sustain itself. At any rate, the common liberty of the Utopians will not embrace the common liberty to be unserviceable, the most perfect economy of organisation still leaves the fact untouched that all order and security in a State rests on the certainty of getting work done. How will the work of this planet be done? What will be the economics of a modern Utopia?

Now in the first place, a state so vast and complex as this world Utopia, and with so migratory a people, will need some handy symbol to check the distribution of services and commodities. Almost certainly they will need to have money. They will have money, and it is not inconceivable that, for all his sorrowful thoughts, our botanist, with his trained observation, his habit of looking at little things upon the ground, would be the one to see and pick up the coin that has fallen from some wayfarer's pocket. (This, in our first hour or so before we reach the inn in the Urseren Thal.) You figure us upon the high Gotthard road, heads together over the little disk that contrives to tell us so much of this strange world.

It is, I imagine, of gold, and it will be a convenient accident if it is sufficient to make us solvent for a day or so, until we are a little more informed of the economic system into which we have come. It is, moreover, of a fair round size, and the inscription declares it one Lion, equal to “twaindy” bronze Crosses. Unless the ratio of metals is very different here, this latter must be a token coin, and therefore legal tender for but a small amount. (That would be pain and pleasure to Mr. Wordsworth Donisthorpe if he were to chance to join us, for once he planned a Utopian coinage, [Footnote: A System of Measures, by Wordsworth Donisthorpe.] and the words Lion and Cross are his. But a token coinage and “legal tender” he cannot abide. They make him argue.) And being in Utopia, that unfamiliar “twaindy” suggests at once we have come upon that most Utopian of all things, a duodecimal system of counting.

My author's privilege of details serves me here. This Lion is distinctly a beautiful coin, admirably made, with its value in fine, clear letters circling the obverse side, and a head thereon – of Newton, as I live! One detects American influence here. Each year, as we shall find, each denomination of coins celebrates a centenary. The reverse shows the universal goddess of the Utopian coinage – Peace, as a beautiful woman, reading with a child out of a great book, and behind them are stars, and an hour-glass, halfway run. Very human these Utopians, after all, and not by any means above the obvious in their symbolism!

So for the first time we learn definitely of the World State, and we get our first clear hint, too, that there is an end to Kings. But our coin raises other issues also. It would seem that this Utopia has no simple community of goods, that there is, at any rate, a restriction upon what one may take, a need for evidences of equivalent value, a limitation to human credit.

It dates – so much of this present Utopia of ours dates. Those former Utopists were bitterly against gold. You will recall the undignified use Sir Thomas More would have us put it to, and how there was no money at all in the Republic of Plato, and in that later community for which he wrote his Laws an iron coinage of austere appearance and doubtful efficacy… It may be these great gentlemen were a little hasty with a complicated difficulty, and not a little unjust to a highly respectable element.

Gold is abused and made into vessels of dishonour, and abolished from ideal society as though it were the cause instead of the instrument of human baseness; but, indeed, there is nothing bad in gold. Making gold into vessels of dishonour and banishing it from the State is punishing the hatchet for the murderer's crime. Money, did you but use it right, is a good thing in life, a necessary thing in civilised human life, as complicated, indeed, for its purposes, but as natural a growth as the bones in a man's wrist, and I do not see how one can imagine anything at all worthy of being called a civilisation without it. It is the water of the body social, it distributes and receives, and renders growth and assimilation and movement and recovery possible. It is the reconciliation of human interdependence with liberty. What other device will give a man so great a freedom with so strong an inducement to effort? The economic history of the world, where it is not the history of the theory of property, is very largely the record of the abuse, not so much of money as of credit devices to supplement money, to amplify the scope of this most precious invention; and no device of labour credits [Footnote: Edward Bellamy's Looking Backward, Ch. IX.] or free demand of commodities from a central store [Footnote: More's Utopia and Cabet's Icaria.] or the like has ever been suggested that does not give ten thousand times more scope for that inherent moral dross in man that must be reckoned with in any sane Utopia we may design and plan… Heaven knows where progress may not end, but at any rate this developing State, into which we two men have fallen, this Twentieth Century Utopia, has still not passed beyond money and the use of coins.

§ 2

Now if this Utopian world is to be in some degree parallel to contemporary thought, it must have been concerned, it may be still concerned, with many unsettled problems of currency, and with the problems that centre about a standard of value. Gold is perhaps of all material substances the best adapted to the monetary purpose, but even at that best it falls far short of an imaginable ideal. It undergoes spasmodic and irregular cheapening through new discoveries of gold, and at any time it may undergo very extensive and sudden and disastrous depreciation through the discovery of some way of transmuting less valuable elements. The liability to such depreciations introduces an undesirable speculative element into the relations of debtor and creditor. When, on the one hand, there is for a time a check in the increase of the available stores of gold, or an increase in the energy applied to social purposes, or a checking of the public security that would impede the free exchange of credit and necessitate a more frequent production of gold in evidence, then there comes an undue appreciation of money as against the general commodities of life, and an automatic impoverishment of the citizens in general as against the creditor class. The common people are mortgaged into the bondage of debt. And on the other hand an unexpected spate of gold production, the discovery of a single nugget as big as St. Paul's, let us say – a quite possible thing – would result in a sort of jail delivery of debtors and a financial earthquake.

It has been suggested by an ingenious thinker that it is possible to use as a standard of monetary value no substance whatever, but instead, force, and that value might be measured in units of energy. An excellent development this, in theory, at any rate, of the general idea of the modern State as kinetic and not static; it throws the old idea of the social order and the new into the sharpest antithesis. The old order is presented as a system of institutions and classes ruled by men of substance; the new, of enterprises and interests led by men of power.

Now I glance at this matter in the most incidental manner, as a man may skim through a specialist's exposition in a popular magazine. You must figure me, therefore, finding from a casual periodical paper in our inn, with a certain surprise at not having anticipated as much, the Utopian self of that same ingenious person quite conspicuously a leader of thought, and engaged in organising the discussion of the currency changes Utopia has under consideration. The article, as it presents itself to me, contains a complete and lucid, though occasionally rather technical, explanation of his newest proposals. They have been published, it seems, for general criticism, and one gathers that in the modern Utopia the administration presents the most elaborately detailed schemes of any proposed alteration in law or custom, some time before any measure is taken to carry it into effect, and the possibilities of every detail are acutely criticised, flaws anticipated, side issues raised, and the whole minutely tested and fined down by a planetful of critics, before the actual process of legislation begins.

The explanation of these proposals involves an anticipatory glance at the local administration of a Modern Utopia. To anyone who has watched the development of technical science during the last decade or so, there will be no shock in the idea that a general consolidation of a great number of common public services over areas of considerable size is now not only practicable, but very desirable. In a little while heating and lighting and the supply of power for domestic and industrial purposes and for urban and inter-urban communications will all be managed electrically from common generating stations. And the trend of political and social speculation points decidedly to the conclusion that so soon as it passes out of the experimental stage, the supply of electrical energy, just like drainage and the supply of water, will fall to the local authority. Moreover, the local authority will be the universal landowner. Upon that point so extreme an individualist as Herbert Spencer was in agreement with the Socialist. In Utopia we conclude that, whatever other types of property may exist, all natural sources of force, and indeed all strictly natural products, coal, water power, and the like, are inalienably vested in the local authorities (which, in order to secure the maximum of convenience and administrative efficiency, will probably control areas as large sometimes as half England), they will generate electricity by water power, by combustion, by wind or tide or whatever other natural force is available, and this electricity will be devoted, some of it to the authority's lighting and other public works, some of it, as a subsidy, to the World-State authority which controls the high roads, the great railways, the inns and other apparatus of world communication, and the rest will pass on to private individuals or to distributing companies at a uniform fixed rate for private lighting and heating, for machinery and industrial applications of all sorts. Such an arrangement of affairs will necessarily involve a vast amount of book-keeping between the various authorities, the World-State government and the customers, and this book-keeping will naturally be done most conveniently in units of physical energy.

It is not incredible that the assessment of the various local administrations for the central world government would be already calculated upon the estimated total of energy, periodically available in each locality, and booked and spoken of in these physical units. Accounts between central and local governments could be kept in these terms. Moreover, one may imagine Utopian local authorities making contracts in which payment would be no longer in coinage upon the gold basis, but in notes good for so many thousands or millions of units of energy at one or other of the generating stations.

Now the problems of economic theory will have undergone an enormous clarification if, instead of measuring in fluctuating money values, the same scale of energy units can be extended to their discussion, if, in fact, the idea of trading could be entirely eliminated. In my Utopia, at any rate, this has been done, the production and distribution of common commodities have been expressed as a problem in the conversion of energy, and the scheme that Utopia was now discussing was the application of this idea of energy as the standard of value to the entire Utopian coinage. Every one of those giant local authorities was to be free to issue energy notes against the security of its surplus of saleable available energy, and to make all its contracts for payment in those notes up to a certain maximum defined by the amount of energy produced and disposed of in that locality in the previous year. This power of issue was to be renewed just as rapidly as the notes came in for redemption. In a world without boundaries, with a population largely migratory and emancipated from locality, the price of the energy notes of these various local bodies would constantly tend to be uniform, because employment would constantly shift into the areas where energy was cheap. Accordingly, the price of so many millions of units of energy at any particular moment in coins of the gold currency would be approximately the same throughout the world. It was proposed to select some particular day when the economic atmosphere was distinctly equable, and to declare a fixed ratio between the gold coinage and the energy notes; each gold Lion and each Lion of credit representing exactly the number of energy units it could buy on that day. The old gold coinage was at once to cease to be legal tender beyond certain defined limits, except to the central government, which would not reissue it as it came in. It was, in fact, to become a temporary token coinage, a token coinage of full value for the day of conversion at any rate, if not afterwards, under the new standard of energy, and to be replaceable by an ordinary token coinage as time went on. The old computation by Lions and the values of the small change of daily life were therefore to suffer no disturbance whatever.

The economists of Utopia, as I apprehended them, had a different method and a very different system of theories from those I have read on earth, and this makes my exposition considerably more difficult. This article upon which I base my account floated before me in an unfamiliar, perplexing, and dream-like phraseology. Yet I brought away an impression that here was a rightness that earthly economists have failed to grasp. Few earthly economists have been able to disentangle themselves from patriotisms and politics, and their obsession has always been international trade. Here in Utopia the World State cuts that away from beneath their feet; there are no imports but meteorites, and no exports at all. Trading is the earthly economists' initial notion, and they start from perplexing and insoluble riddles about exchange value, insoluble because all trading finally involves individual preferences which are incalculable and unique. Nowhere do they seem to be handling really defined standards, every economic dissertation and discussion reminds one more strongly than the last of the game of croquet Alice played in Wonderland, when the mallets were flamingoes and the balls were hedgehogs and crawled away, and the hoops were soldiers and kept getting up and walking about. But economics in Utopia must be, it seems to me, not a theory of trading based on bad psychology, but physics applied to problems in the theory of sociology. The general problem of Utopian economics is to state the conditions of the most efficient application of the steadily increasing quantities of material energy the progress of science makes available for human service, to the general needs of mankind. Human labour and existing material are dealt with in relation to that. Trading and relative wealth are merely episodical in such a scheme. The trend of the article I read, as I understood it, was that a monetary system based upon a relatively small amount of gold, upon which the business of the whole world had hitherto been done, fluctuated unreasonably and supplied no real criterion of well-being, that the nominal values of things and enterprises had no clear and simple relation to the real physical prosperity of the community, that the nominal wealth of a community in millions of pounds or dollars or Lions, measured nothing but the quantity of hope in the air, and an increase of confidence meant an inflation of credit and a pessimistic phase a collapse of this hallucination of possessions. The new standards, this advocate reasoned, were to alter all that, and it seemed to me they would.

I have tried to indicate the drift of these remarkable proposals, but about them clustered an elaborate mass of keen and temperate discussion. Into the details of that discussion I will not enter now, nor am I sure I am qualified to render the multitudinous aspect of this complicated question at all precisely. I read the whole thing in the course of an hour or two of rest after lunch – it was either the second or third day of my stay in Utopia – and we were sitting in a little inn at the end of the Lake of Uri. We had loitered there, and I had fallen reading because of a shower of rain… But certainly as I read it the proposition struck me as a singularly simple and attractive one, and its exposition opened out to me for the first time clearly, in a comprehensive outline, the general conception of the economic nature of the Utopian State.

§ 3

The difference between the social and economic sciences as they exist in our world [Footnote: But see Gidding's Principles of Sociology, a modern and richly suggestive American work, imperfectly appreciated by the British student. See also Walter Bagehot's Economic Studies.] and in this Utopia deserves perhaps a word or so more. I write with the utmost diffidence, because upon earth economic science has been raised to a very high level of tortuous abstraction by the industry of its professors, and I can claim neither a patient student's intimacy with their productions nor – what is more serious – anything but the most generalised knowledge of what their Utopian equivalents have achieved. The vital nature of economic issues to a Utopia necessitates, however, some attempt at interpretation between the two.

In Utopia there is no distinct and separate science of economics. Many problems that we should regard as economic come within the scope of Utopian psychology. My Utopians make two divisions of the science of psychology, first, the general psychology of individuals, a sort of mental physiology separated by no definite line from physiology proper, and secondly, the psychology of relationship between individuals. This second is an exhaustive study of the reaction of people upon each other and of all possible relationships. It is a science of human aggregations, of all possible family groupings, of neighbours and neighbourhood, of companies, associations, unions, secret and public societies, religious groupings, of common ends and intercourse, and of the methods of intercourse and collective decision that hold human groups together, and finally of government and the State. The elucidation of economic relationships, depending as it does on the nature of the hypothesis of human aggregation actually in operation at any time, is considered to be subordinate and subsequent to this general science of Sociology. Political economy and economics, in our world now, consist of a hopeless muddle of social assumptions and preposterous psychology, and a few geographical and physical generalisations. Its ingredients will be classified out and widely separated in Utopian thought. On the one hand there will be the study of physical economies, ending in the descriptive treatment of society as an organisation for the conversion of all the available energy in nature to the material ends of mankind – a physical sociology which will be already at such a stage of practical development as to be giving the world this token coinage representing energy – and on the other there will be the study of economic problems as problems in the division of labour, having regard to a social organisation whose main ends are reproduction and education in an atmosphere of personal freedom. Each of these inquiries, working unencumbered by the other, will be continually contributing fresh valid conclusions for the use of the practical administrator.

In no region of intellectual activity will our hypothesis of freedom from tradition be of more value in devising a Utopia than here. From its beginning the earthly study of economics has been infertile and unhelpful, because of the mass of unanalysed and scarcely suspected assumptions upon which it rested. The facts were ignored that trade is a bye-product and not an essential factor in social life, that property is a plastic and fluctuating convention, that value is capable of impersonal treatment only in the case of the most generalised requirements. Wealth was measured by the standards of exchange. Society was regarded as a practically unlimited number of avaricious adult units incapable of any other subordinate groupings than business partnerships, and the sources of competition were assumed to be inexhaustible. Upon such quicksands rose an edifice that aped the securities of material science, developed a technical jargon and professed the discovery of “laws.” Our liberation from these false presumptions through the rhetoric of Carlyle and Ruskin and the activities of the Socialists, is more apparent than real. The old edifice oppresses us still, repaired and altered by indifferent builders, underpinned in places, and with a slight change of name. “Political Economy” has been painted out, and instead we read “Economics – under entirely new management.” Modern Economics differs mainly from old Political Economy in having produced no Adam Smith. The old “Political Economy” made certain generalisations, and they were mostly wrong; new Economics evades generalisations, and seems to lack the intellectual power to make them. The science hangs like a gathering fog in a valley, a fog which begins nowhere and goes nowhere, an incidental, unmeaning inconvenience to passers-by. Its most typical exponents display a disposition to disavow generalisations altogether, to claim consideration as “experts,” and to make immediate political application of that conceded claim. Now Newton, Darwin, Dalton, Davy, Joule, and Adam Smith did not affect this “expert” hankey-pankey, becoming enough in a hairdresser or a fashionable physician, but indecent in a philosopher or a man of science. In this state of impotent expertness, however, or in some equally unsound state, economics must struggle on – a science that is no science, a floundering lore wallowing in a mud of statistics – until either the study of the material organisation of production on the one hand as a development of physics and geography, or the study of social aggregation on the other, renders enduring foundations possible.