OPEN LETTER TO POPE LEO XHI. 55
fierce desire to destroy existing social adjustments. This class is indeed only less dangerous than those who pro- claim that no social improvement is needed or is possible. But it is not fair to confound with them those who, however mistakenly, propose definite schemes of remedy.
The socialists, as I understand them, and as the term has come to apply to anything like a definite theory and not to be vaguely and improperly used to include all who desire social improvement, do not, as you imply, seek the abolition of all private property. Those who do this are properly called communists. What the socialists seek is the state assumption of capital (in which they vaguely and erroneously include land), or more properly speak- ing, of large capitals, and state management and direction of at least the larger operations of industry. In this way they hope to abolish interest, which they regard as a wrong and an evil; to do away with the gains of exchangers, speculators, contractors and middlemen, which they regard as waste ; to do away with the wage system and secure general cooperation; and to prevent competition, which they deem the fundamental cause of the impoverishment of labor. The more moderate of them, without going so far, go in the same direction, and seek some remedy or palliation of the worst forms of poverty by government regulation. The essential char- acter of socialism is that it looks to the extension of the functions of the state for the remedy of social evils; that it would substitute regulation and direction for com- petition ; and intelligent control by organized society for the free play of individual desire and effort.
Though not usually classed as socialists, both the trades-unionists and the protectionists have the same essential character. The trades-unionists seek the increase of wages, the reduction of working-hours and the general improvement in the condition of wage-
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