So for the first time we learn definitely of the World State, and we get our first clear hint, too, that there is an end to Kings. But our coin raises other issues also. It would seem that this Utopia has no simple community of goods, that there is, at any rate, a restriction upon what one may take, a need for evidences of equivalent value, a limitation to human credit.
It dates – so much of this present Utopia of ours dates. Those former Utopists were bitterly against gold. You will recall the undignified use Sir Thomas More would have us put it to, and how there was no money at all in the Republic of Plato, and in that later community for which he wrote his Laws an iron coinage of austere appearance and doubtful efficacy… It may be these great gentlemen were a little hasty with a complicated difficulty, and not a little unjust to a highly respectable element.
Gold is abused and made into vessels of dishonour, and abolished from ideal society as though it were the cause instead of the instrument of human baseness; but, indeed, there is nothing bad in gold. Making gold into vessels of dishonour and banishing it from the State is punishing the hatchet for the murderer's crime. Money, did you but use it right, is a good thing in life, a necessary thing in civilised human life, as complicated, indeed, for its purposes, but as natural a growth as the bones in a man's wrist, and I do not see how one can imagine anything at all worthy of being called a civilisation without it. It is the water of the body social, it distributes and receives, and renders growth and assimilation and movement and recovery possible. It is the reconciliation of human interdependence with liberty. What other device will give a man so great a freedom with so strong an inducement to effort? The economic history of the world, where it is not the history of the theory of property, is very largely the record of the abuse, not so much of money as of credit devices to supplement money, to amplify the scope of this most precious invention; and no device of labour credits [Footnote: Edward Bellamy's Looking Backward, Ch. IX.] or free demand of commodities from a central store [Footnote: More's Utopia and Cabet's Icaria.] or the like has ever been suggested that does not give ten thousand times more scope for that inherent moral dross in man that must be reckoned with in any sane Utopia we may design and plan… Heaven knows where progress may not end, but at any rate this developing State, into which we two men have fallen, this Twentieth Century Utopia, has still not passed beyond money and the use of coins.
§ 2
Now if this Utopian world is to be in some degree parallel to contemporary thought, it must have been concerned, it may be still concerned, with many unsettled problems of currency, and with the problems that centre about a standard of value. Gold is perhaps of all material substances the best adapted to the monetary purpose, but even at that best it falls far short of an imaginable ideal. It undergoes spasmodic and irregular cheapening through new discoveries of gold, and at any time it may undergo very extensive and sudden and disastrous depreciation through the discovery of some way of transmuting less valuable elements. The liability to such depreciations introduces an undesirable speculative element into the relations of debtor and creditor. When, on the one hand, there is for a time a check in the increase of the available stores of gold, or an increase in the energy applied to social purposes, or a checking of the public security that would impede the free exchange of credit and necessitate a more frequent production of gold in evidence, then there comes an undue appreciation of money as against the general commodities of life, and an automatic impoverishment of the citizens in general as against the creditor class. The common people are mortgaged into the bondage of debt. And on the other hand an unexpected spate of gold production, the discovery of a single nugget as big as St. Paul's, let us say – a quite possible thing – would result in a sort of jail delivery of debtors and a financial earthquake.
It has been suggested by an ingenious thinker that it is possible to use as a standard of monetary value no substance whatever, but instead, force, and that value might be measured in units of energy. An excellent development this, in theory, at any rate, of the general idea of the modern State as kinetic and not static; it throws the old idea of the social order and the new into the sharpest antithesis. The old order is presented as a system of institutions and classes ruled by men of substance; the new, of enterprises and interests led by men of power.
Now I glance at this matter in the most incidental manner, as a man may skim through a specialist's exposition in a popular magazine. You must figure me, therefore, finding from a casual periodical paper in our inn, with a certain surprise at not having anticipated as much, the Utopian self of that same ingenious person quite conspicuously a leader of thought, and engaged in organising the discussion of the currency changes Utopia has under consideration. The article, as it presents itself to me, contains a complete and lucid, though occasionally rather technical, explanation of his newest proposals. They have been published, it seems, for general criticism, and one gathers that in the modern Utopia the administration presents the most elaborately detailed schemes of any proposed alteration in law or custom, some time before any measure is taken to carry it into effect, and the possibilities of every detail are acutely criticised, flaws anticipated, side issues raised, and the whole minutely tested and fined down by a planetful of critics, before the actual process of legislation begins.
The explanation of these proposals involves an anticipatory glance at the local administration of a Modern Utopia. To anyone who has watched the development of technical science during the last decade or so, there will be no shock in the idea that a general consolidation of a great number of common public services over areas of considerable size is now not only practicable, but very desirable. In a little while heating and lighting and the supply of power for domestic and industrial purposes and for urban and inter-urban communications will all be managed electrically from common generating stations. And the trend of political and social speculation points decidedly to the conclusion that so soon as it passes out of the experimental stage, the supply of electrical energy, just like drainage and the supply of water, will fall to the local authority. Moreover, the local authority will be the universal landowner. Upon that point so extreme an individualist as Herbert Spencer was in agreement with the Socialist. In Utopia we conclude that, whatever other types of property may exist, all natural sources of force, and indeed all strictly natural products, coal, water power, and the like, are inalienably vested in the local authorities (which, in order to secure the maximum of convenience and administrative efficiency, will probably control areas as large sometimes as half England), they will generate electricity by water power, by combustion, by wind or tide or whatever other natural force is available, and this electricity will be devoted, some of it to the authority's lighting and other public works, some of it, as a subsidy, to the World-State authority which controls the high roads, the great railways, the inns and other apparatus of world communication, and the rest will pass on to private individuals or to distributing companies at a uniform fixed rate for private lighting and heating, for machinery and industrial applications of all sorts. Such an arrangement of affairs will necessarily involve a vast amount of book-keeping between the various authorities, the World-State government and the customers, and this book-keeping will naturally be done most conveniently in units of physical energy.
It is not incredible that the assessment of the various local administrations for the central world government would be already calculated upon the estimated total of energy, periodically available in each locality, and booked and spoken of in these physical units. Accounts between central and local governments could be kept in these terms. Moreover, one may imagine Utopian local authorities making contracts in which payment would be no longer in coinage upon the gold basis, but in notes good for so many thousands or millions of units of energy at one or other of the generating stations.
Now the problems of economic theory will have undergone an enormous clarification if, instead of measuring in fluctuating money values, the same scale of energy units can be extended to their discussion, if, in fact, the idea of trading could be entirely eliminated. In my Utopia, at any rate, this has been done, the production