Thus American patriotism took on a religious fervour, and the corruption of the populace was complete. The rise of industrialism has done as much as anything else to engender misapprehension of the State’s essential nature, its chief function, and the source of its power. It is significant that the Physiocrats lived and observed the workings of the State before the industrial era, in an agricultural country, where the relation between land-monopoly and government was direct and inescapable; and that Karl Marx lived and wrote after the rise of the factory-system, in a highly industrialized country. The Physiocrats, for whom the basic economic problem was unobscured, therefore attributed involuntary poverty to its actual cause; while Marx, confusing capital’s fortuitous advantage from monopoly with monopoly itself, laid the responsibility at the door of capitalism. To be sure, Marx recognized and stated the fact that expropriation must precede exploitation; but he did not draw the obvious conclusion that the way to break capital’s power to exploit the worker is by simple reimpropriation. At present there is a general impression that the factory-system lured the population into the cities, and thus caused the overcrowding that results in scarcity of jobs and inadequacy of wage. As a matter of fact, the factory-system found the cities already overcrowded with exploitable labour. In England, for example, the Enclosures Acts had deprived the people of what common land remained to them, and had driven them into the cities where they lived in inconceivable filth and squalor, eking out a miserable existence under the old family-system of industry. The machine-system found all this expropriated and exploitable human material ready to serve its ends--far more, indeed, than it needed, as the riots among the workers deprived of their livelihood by its labour-saving tools, plainly indicated. The industrial revolution, then, did not produce the overcrowding of the labour-market; but the capitalist of the revolution profited by an overcrowding that already existed. He reaped indirectly the fruits of monopoly. He profited likewise, and profits still, by every labour-saving device, for it enabled him at once to dispense with some labourers and, because of the increase of unemployment thus caused, to pay his remaining workers less. Capital was thus enabled to appropriate much more than its rightful share of production, and hence to amass enormous wealth, by means of which it influenced government on behalf of its own further enrichment. In this country, it has secured a system of protective tariffs which amount to a governmental delegation of taxing-power to the protected industries; it gives them a monopoly of the home-market and enables them to add to the price of their product the amount of the tariff which has been set against the competing foreign article. Capital has found other ways of creating monopolies, such as the