The “Phalange,” not content to remain a mere consumers’ association, was to attempt production as well. Around the hotel was to be an area of 400 acres, with farm buildings and industrial establishments that were to supply the needs of the inmates. The Phalange was to be a small self-sufficing world, a microcosm producing everything it consumed, and consuming—as far as it could—all it produced. Occasionally, no doubt, there would be occasional surpluses or some needs would remain unsatisfied, and then recourse would be had to exchange with other Phalanges. Every Phalange was to be established as a kind of joint-stock company. Private property was not to be extinguished altogether, but to be transformed into the holding of stock—a transformation of a capitalistic rather than of a socialistic nature. M. de Molinari states that the future will witness the almost universal application of the joint-stock principle, and he for one would welcome its extension. Fourier has forestalled his prophecy by three-quarters of a century, with an insight that is truly remarkable for the time in which he wrote, for joint-stock undertakings were then exceedingly rare. He enumerates the many advantages which would result from such a transformation in the nature of property, and he roundly declares that “a share in such concerns is really more valuable than any amount of land or money.” How were the extravagant dividends which he promised when propounding his scheme to be paid out? The usual method in financial and commercial transactions is to distribute them according to the holding of each individual. But such was not to be his plan. Capital was to have a third of the profits, labour five-twelfths, and ability three-twelfths. “Ability,” which signifies the work of management, was to devolve upon those individuals who were chosen by the society and were considered best fitted for the work. Fourier never realised that there was a possibility of the wrong man being chosen. He had no experience of universal suffrage, and he believed that within such a tiny group the election would be perfectly _bona-fide_. Associations known as Phalanges have actually been established in Paris, and to some extent at any rate they have realised the ideal as outlined by Fourier. The profits are divided in almost strict accordance with Fourier’s formula,[533] and in order to emphasise their descent from him the members have caused a statue to be raised to his memory in their quarter of the town—the Boulevard de Clichy. Not content with giving us an outline of a co-operative productive society, Fourier has also left us an admirably concise statement of the problem that faces modern society. “The first problem for the economist to solve,” says he, “is to discover some way of transforming the wage-earner into a co-operative owner.”[534]