Functional socialism

CAPITAL 133

forget that behind his argument of inevitable collapse, his moral purpose shines through his remorseless logic. His was no appeal to the intellectuals, the great ones of the earth; his heart, his sympathies, his service all go, without stint, to the working-class movement. He was not only an economist; he was one of the great prophets of the nineteenth century.

Meantime, a contemporary of Marx, Bruno Hildebrand, the German historico-economist, had the clear vision. There are, he said, three phases of economic development—the period of natural economy, next of money economy, and finally of credit.

And now, what did he mean, what do we mean, by credit?

IV THE MEANING OF VALUE

From our cursory survey, it is evident that economic doctrine as yet does not understand and therefore cannot define value. Value to all our economists, Marx included, is determined by effective demand. Whatever the measure of valuedefinitely labour in the Marxian argument—you can only arrive at it through exchange. All the economists, in fact, accept the commercial and not the social meaning of value. Water is a vital necessity to every member of the community. We get as much as we need for about half-a-crown a week. A diamond, which has no social value, may cost £1,000. If we accept exchange as the condition precedent to