operations as proper to himself alone. In short, the Socialism of Owen led him to propose a practical scheme which was not even socialistic, and which, if it could possibly have been carried out, would have simply arbitrarily redistributed the capital of the country without altering or superseding the capitalist system in the least. All this will be so obvious to those who comprehend our capitalist system that they will have some difficulty in believing that it could have escaped so clever a man and so experienced and successful a capitalist as Owen. How far he made it a rule to deliberately shut his eyes to the difficulties that met him, from a burning conviction that any change was better than leaving matters entirely alone, cannot even be guessed; but it is quite certain that he acted in perfect good faith, simply not knowing thoroughly what he was about. He had a boundless belief in the power of education to form character; and if any scheme promised just sufficient respite from poverty and degradation to enable him and his disciples to educate one generation of the country’s children, he was ready to leave all economic consequences to be dealt with by “the New Moral World” which that generation’s Owenite schooling would have created. Doubtless he thought that “the Trades Union” promised him this much; and besides, he did not foresee its economic consequences. He was disabled by that confident sciolism and prejudice which has led generations of Socialists to borrow from Adam Smith and the “classic” economists the erroneous theory that labour is by itself the creator of value, without going on to master that impregnable and more difficult law of economic rent which is the very corner-stone of collectivist economy. He took his economics from his friend William Thompson,[286] who, like Hodgskin and Hodgskin’s illustrious disciple, Karl Marx, ignored the law of rent in his calculations, and taught that all exchange values could be measured in terms of “labour time” alone. Part of the Owenite activity of the time actually resulted in the opening of labour bazaars, in which the prices were fixed in minutes. The fact that it is the consumer’s demand which gives to the product of labour any exchange-value at all, and that the extent and elasticity of this demand determines how much has to be produced; and the other governing consideration, namely, that the expenditure of labour required to bring articles of the same desirability to market varies enormously according to natural differences in fertility of soil, distance to be traversed, proximity to good highways, waterways, or ports, accessibility of water-power or steam fuel, and a hundred other circumstances, including the organising ability and executive dexterity of the producer, found themselves left entirely out of account. Owen assumed that the labour of the miner and that of the agricultural labourer, whatever the amount and nature