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The scientific basis of Socialism rests, as is well known, on three principal results of capitalist development. First, on the growing anarchy of capitalist economy, leading inevitably to its ruin. Second, on the progressive socialization of the process of production, which creates the germs of the future social order. And third, on the increased organization and consciousness of the proletarian class, which constitutes the active factor in the coming revolution.

Bernstein pulls away the first of the three fundamental supports of scientific Socialism. He says that capitalist development does not lead to a general economic collapse. He does not merely reject a certain form of the collapse. He rejects the very possibility of collapse. He says textually: "One could claim that by collapse of the present society is meant something else than a general commercial crisis, worse than all others, that is a complete collapse of the capitalist system brought about as a result of its own contradictions.

But then the question arises: Why and how, in that case, shall we attain the final goal? According to scientific Socialism, the historic necessity of the Socialist revolution manifests itself above all in the growing anarchy of capitalism, which drives the system into an impasse. But if one admits with Bernstein that capitalist development does not move in the direction of its own ruin, then Socialism ceases to be objectively necessary.

There remain the other two mainstays of the scientific explanation of Socialism, which are also said to be consequences of capitalism itself: the socialization of the process of production and the growing consciousness of the proletariat. It is these two matters that Bernstein has in mind when he says: "The suppression of the theory of collapse does not in any way deprive Socialist doctrine of its power of persuasion.

For, examined closely, what are all the factors enumerated by us that make for the suppression or the modification of the former crises? Nothing else, in fact, than the conditions, or even in part the germs, of the socialization of production and exchange. Very little reflection is needed to understand that here too we face a false conclusion.

Where lies the importance of all the phenomena that are said by Bernstein to be the means of capitalist adaptation—cartels, the credit system, the development of means of communication, the amelioration of the situation of the working class, etc.? Obviously, in that they suppress or, at least, attenuate the internal contradictions of capitalist economy, and stop the development or the aggravation of these contradictions. Thus the suppression of crises can only mean the suppression of the antagonism between production and exchange on the capitalist base.

The amelioration of the situation of the working class, or the penetration of certain fractions of the class into middle layers, can only mean the attenuation of the antagonism between Capital and Labor.

But if the mentioned factors suppress the capitalist contradictions and consequently save the system from ruin, if they enable capitalism to maintain itself—and that is why Bernstein calls them "means of adaptation"—how can cartels, the credit system, trade unions, etc. Obviously only in the sense that they express most clearly the social character of production. But by presenting it in its capitalist form, the same factors render superfluous, inversely, in the same measure, the transformation of this socialized production into Socialist production.

That is why they can be the germs or conditions of a Socialist order only in a theoretic sense and not in an historic sense. They are phenomena which, in the light of our conception of Socialism, we know to be related to Socialism but which, in fact, not only do not lead to a Socialist revolution but render it, on the contrary, superfluous. There remains one force making for Socialism—the class consciousness of the proletariat.

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But it, too, is in the given case not the simple intellectual reflection of the growing contradictions of capitalism and its approaching decline. It is now not more than an ideal whose force of persuasion rests only on the perfection attributed to it. We have here, in brief, the explanation of the Socialist program by means of "pure reason.

The objective necessity of Socialism, the explanation of Socialism as the result of the material development of society, falls to the ground. Revisionist theory thus places itself in a dilemma. Either the Socialist transformation is, as was admitted up to now, the consequence of the internal contradictions of capitalism, and with the growth of capitalism will develop its inner contradictions, resulting inevitably, at some point, in its collapse, in that case the "means of adaptation" are ineffective and the theory of collapse is correct ; or the "means of adaptation" will really stop the collapse of the capitalist system and thereby enable capitalism to maintain itself by suppressing its own contradictions.

In that case Socialism ceases to be an historic necessity. It then becomes anything you want to call it, but it is no longer the result of the material development of society. The dilemma leads to another. Either revisionism is correct in its position on the course of capitalist development, and therefore the Socialist transformation of society is only a utopia, or Socialism is not a utopia, and the theory of "means of adaptation" is false.

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  6. There is the question in a nutshell. ACCORDING to Bernstein, the credit system, the perfected means of communication and the new capitalist combines are the important factors that forward the adaptation of capitalist economy. Credit has diverse applications in capitalism. Its two most important functions are to extend production and to facilitate exchange. When the inner tendency of capitalist production to extend boundlessly strikes against the restricted dimensions of private property, credit appears as a means of surmounting these limits in a particular capitalist manner.

    Credit, through shareholding, combines in one magnitude of capital a large number of individual capitals. It makes available to each capitalist the use of other capitalists' money—in the form of industrial credit. As commercial credit it accelerates the exchange of commodities and therefore the return of capital into production, and thus aids the entire cycle of the process of production. The manner in which these two principal functions of credit influence the formation of crises is quite obvious. If it is true that crises appear as a result of the contradiction existing between the capacity of extension, the tendency of production to increase, and the restricted consumption capacity of the market, credit is precisely, in view of what was stated above, the specific means that makes this contradiction break out as often as possible.

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    To begin with, it increases disproportionately the capacity of the extension of production and thus constitutes an inner motive force that is constantly pushing production to exceed the limits of the market. But credit strikes from two sides. After having as a factor of the process of production provoked overproduction, credit as a factor of exchange destroys, during the crisis, the very productive forces it itself created.

    At the first symptom of the crisis, credit melts away. It abandons exchange where it would still be found indispensable, and appearing instead, ineffective and useless, there where some exchange still continues, it reduces to a minimum the consumption capacity of the market.

    Besides having these two principal results, credit also influences the formation of crises in the following ways. It constitutes the technical means of making available to an entrepreneur the capital of other owners. It stimulates at the same time the bold and unscrupulous utilization of the property of others. That is, it leads to speculation. Credit not only aggravates the crisis in its capacity as a dissembled means of exchange, it also helps to bring and extend the crisis by transforming all exchange into an extremely complex and artificial mechanism that, having a minimum of metallic money as a real base, is easily disarranged at the slightest occasion.

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