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Supervised
Learning with
Python
Concepts and Practical
Implementation Using Python
—
Vaibhav Verdhan
Foreword by Dr. Eli Yechezkiel Kling (PhD)
 Supervised Learning
with Python
Concepts and Practical
Implementation Using Python

Vaibhav Verdhan
Foreword by Dr. Eli Yechezkiel Kling (PhD)
Supervised Learning with Python: Concepts and Practical
Implementation Using Python

Vaibhav Verdhan
Limerick, Ireland

ISBN-13 (pbk): 978-1-4842-6155-2 ISBN-13 (electronic): 978-1-4842-6156-9

https://doi.org/10.1007/978-1-4842-6156-9

Copyright © 2020 by Vaibhav Verdhan

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To Yashi, Pakhi and Rudra.
Table of Contents
About the Author���������������������������������������������������������������������������������xi
About the Technical Reviewer�����������������������������������������������������������xiii
Foreword��������������������������������������������������������������������������������������������xv
Acknowledgments����������������������������������������������������������������������������xvii
Introduction���������������������������������������������������������������������������������������xix

Chapter 1: Introduction to Supervised Learning�����������������������������������1

What Is ML?����������������������������������������������������������������������������������������������������������2
Relationship Between Data Analysis, Data Mining, ML, and AI������������������������3
Data, Data Types, and Data Sources����������������������������������������������������������������5
How ML Differs from Software Engineering��������������������������������������������������������10
ML Projects����������������������������������������������������������������������������������������������������12
Statistical and Mathematical Concepts for ML���������������������������������������������������15
Supervised Learning Algorithms�������������������������������������������������������������������������25
Regression vs. Classification Problems���������������������������������������������������������28
Steps in a Supervised Learning Algorithm����������������������������������������������������30
Unsupervised Learning Algorithms���������������������������������������������������������������������34
Cluster Analysis���������������������������������������������������������������������������������������������35
PCA����������������������������������������������������������������������������������������������������������������36
Semi-supervised Learning Algorithms����������������������������������������������������������������37
Technical Stack���������������������������������������������������������������������������������������������������37

v
Table of Contents

ML’s Popularity����������������������������������������������������������������������������������������������������39
Use Cases of ML�������������������������������������������������������������������������������������������������41
Summary������������������������������������������������������������������������������������������������������������44

Chapter 2: Supervised Learning for Regression Analysis������������������47

Technical Toolkit Required����������������������������������������������������������������������������������48
Regression analysis and Use Cases��������������������������������������������������������������������49
What Is Linear Regression����������������������������������������������������������������������������������51
Assumptions of Linear Regression����������������������������������������������������������������56
Measuring the Efficacy of Regression Problem��������������������������������������������������59
Example 1: Creating a Simple Linear Regression������������������������������������������68
Example 2: Simple Linear Regression for Housing Dataset���������������������������71
Example 3: Multiple Linear Regression for Housing Dataset�������������������������78
Nonlinear Regression Analysis����������������������������������������������������������������������������84
Identifying a Nonlinear Relationship�������������������������������������������������������������������88
Assumptions for a Nonlinear Regression������������������������������������������������������89
Challenges with a Regression Model������������������������������������������������������������������91
Tree-Based Methods for Regression�������������������������������������������������������������������94
Case study: Petrol consumption using Decision tree������������������������������������������98
Ensemble Methods for Regression�������������������������������������������������������������������103
Case study: Petrol consumption using Random Forest�������������������������������������106
Feature Selection Using Tree-Based Methods��������������������������������������������������110
Summary����������������������������������������������������������������������������������������������������������113

Chapter 3: Supervised Learning for Classification Problems�����������117

Technical Toolkit Required��������������������������������������������������������������������������������118
Hypothesis Testing and p-Value������������������������������������������������������������������������118
Classification Algorithms����������������������������������������������������������������������������������121
Logistic Regression for Classification���������������������������������������������������������124

vi
 Table of Contents

Assessing the Accuracy of the Solution������������������������������������������������������������129

Case Study: Credit Risk�������������������������������������������������������������������������������������136
Additional Notes������������������������������������������������������������������������������������������149
Naïve Bayes for Classification���������������������������������������������������������������������������150
Case Study: Income Prediction on Census Data�����������������������������������������������154
k-Nearest Neighbors for Classification�������������������������������������������������������������163
Case Study: k-Nearest Neighbor�����������������������������������������������������������������������169
The Dataset�������������������������������������������������������������������������������������������������170
Business Objective��������������������������������������������������������������������������������������170
Tree-Based Algorithms for Classification����������������������������������������������������������178
Types of Decision Tree Algorithms��������������������������������������������������������������������182
Summary����������������������������������������������������������������������������������������������������������188

Chapter 4: Advanced Algorithms for Supervised Learning���������������191

Technical Toolkit Required��������������������������������������������������������������������������������192
Boosting Algorithms������������������������������������������������������������������������������������������193
Using Gradient Boosting Algorithm��������������������������������������������������������������198
SVM�������������������������������������������������������������������������������������������������������������������208
SVM in 2-D Space����������������������������������������������������������������������������������������210
KSVM�����������������������������������������������������������������������������������������������������������213
Case Study Using SVM��������������������������������������������������������������������������������215
Supervised Algorithms for Unstructured Data��������������������������������������������������221
Text Data�����������������������������������������������������������������������������������������������������������222
Use Cases of Text Data��������������������������������������������������������������������������������223
Challenges with Text Data���������������������������������������������������������������������������226
Text Analytics Modeling Process�����������������������������������������������������������������228
Text Data Extraction and Management��������������������������������������������������������230

vii
Table of Contents

Preprocessing of Text Data��������������������������������������������������������������������������233

Extracting Features from Text Data�������������������������������������������������������������236
Case study: Customer complaints analysis using NLP��������������������������������������243
Word Embeddings���������������������������������������������������������������������������������������246
Case study: Customer complaints analysis using word embeddings���������������248
Image Data��������������������������������������������������������������������������������������������������������252
Use Cases of Image Data�����������������������������������������������������������������������������253
Challenges with Image Data������������������������������������������������������������������������256
Image Data Management Process���������������������������������������������������������������258
Image Data Modeling Process���������������������������������������������������������������������260
Fundamentals of Deep Learning�����������������������������������������������������������������������261
Artificial Neural Networks���������������������������������������������������������������������������261
Activation Functions������������������������������������������������������������������������������������265
Loss Function in a Neural Network�������������������������������������������������������������268
Optimization in a Neural Network����������������������������������������������������������������268
Neural Network Training Process����������������������������������������������������������������272
Case Study 1: Create a Classification Model on Structured Data����������������������276
Case Study 2: Image Classification Model��������������������������������������������������������281
Summary����������������������������������������������������������������������������������������������������������287

Chapter 5: End-to-End Model Development��������������������������������������291

Technical Toolkit Required��������������������������������������������������������������������������������292
ML Model Development������������������������������������������������������������������������������������292
Step 1: Define the Business Problem����������������������������������������������������������������294
Step 2: Data Discovery Phase���������������������������������������������������������������������������296
Step 3: Data Cleaning and Preparation�������������������������������������������������������������301
Duplicates in the Dataset����������������������������������������������������������������������������302
Categorical Variable Treatment in Dataset���������������������������������������������������304
Missing Values Present in the Dataset��������������������������������������������������������307

viii
 Table of Contents

Imbalance in the Dataset����������������������������������������������������������������������������������316

Outliers in the Dataset��������������������������������������������������������������������������������������321
Other Common Problems in the Dataset�����������������������������������������������������������325
Step 4: EDA�������������������������������������������������������������������������������������������������������328
Step 5: ML Model Building��������������������������������������������������������������������������������335
Train/Test Split of Data��������������������������������������������������������������������������������336
Finding the Best Threshold for Classification Algorithms����������������������������342
Overfitting vs. Underfitting Problem������������������������������������������������������������343
Key Stakeholder Discussion and Iterations�������������������������������������������������350
Presenting the Final Model��������������������������������������������������������������������������350
Step 6: Deployment of the Model����������������������������������������������������������������������351
Step 7: Documentation��������������������������������������������������������������������������������������363
Step 8: Model Refresh and Maintenance����������������������������������������������������������363
Summary����������������������������������������������������������������������������������������������������������364

Index�������������������������������������������������������������������������������������������������367

ix
About the Author
Vaibhav Verdhan has 12+ years of experience
in data science, machine learning, and
artificial intelligence. An MBA with
engineering background, he is a hands-on
technical expert with acumen to assimilate
and analyze data. He has led multiple
engagements in ML and AI across geographies
and across retail, telecom, manufacturing,
energy, and utilities domains. Currently
he resides in Ireland with his family and is
working as a Principal Data Scientist.

xi
About the Technical Reviewer
Irfan Elahi is a full stack customer-focused
cloud analytics specialist bearing the unique
and proven combination of diverse consulting
and technical competencies (cloud, big
data, and machine learning) with a growing
portfolio of successful projects delivering
substantial impact and value in multiple
capacities across telecom, retail, energy,
and health-care sectors. Additionally, he is
an analytics evangelist as is evident from
the published book, Udemy courses, blogposts, trainings, lectures, and
presentations with global reach.

xiii
Foreword
How safe is home birthing? That is a good question. Pause a moment and
let yourself contemplate it.
I am sure you can see how the answer to this question can affect
personal decisions and policy choices. The answer could be given as a
probability, a level classification, or an alternative cost. Another natural
reaction is “it depends.” There are many factors that could affect the safety
of home birthing.
I took you through this thought exercise to show you that you naturally
think like a data scientist. You understood the importance of stipulating
clearly the focus of the analysis and what could explain different outcomes.
The reason you are embarking on a journey through this book is that you
are not sure how to express these instinctive notions mathematically and
instruct a computer to “find” the relationship between the “Features” and
the “Target.”
When I started my career 30-odd years ago, this was the domain
of statisticians who crafted a mathematical language to describe
relationships and noise. The purpose of predictive modeling was in its
essence to be a tool for separating a signal or a pattern out of seemingly
chaotic information and reporting how well the partition was done.
Today, machine learning algorithms harnessing computing brute force
add a new paradigm. This has created a new profession: the data scientist.
The data scientist is a practitioner who can think in terms of statistical
methodology, instruct a computer to carry out the required processing,
and interpret the results and reports.

xv
Foreword

Becoming a good data scientist is a journey that starts with learning the
basics and mechanics. Once you are done exploring this book you might
also be able to better see where you will want to deepen your theoretical
knowledge. I would like to suggest you might find it interesting to look into
the theory of statistical modeling in general and the Bayesian paradigm
specifically. Machine learning is computational statistics after all.
Dr. Eli. Y. Kling (BSc. Eng. MSc. PHD) London, UK. June 2020.

xvi
Acknowledgments
I would like to thank Apress publications, Celestin John, Shrikant
Vishwarkarma, and Irfan Elahi for the confidence shown and the support
extended. Many thanks to Dr. Eli Kling for the fantastic forward to the
book. Special words for my family—Yashi, Pakhi, and Rudra—without their
support it would have been impossible to complete this work.

xvii
Introduction
“It is tough to make predictions, especially about the future.”
—Yogi Berra

In 2019, MIT’s Katie Bouman processed five petabytes of data to develop

the first-ever image of a black hole. Data science, machine learning, and
artificial intelligence played a central role in this extraordinary discovery.
Data is the new electricity, and as per HBR, data scientist is the
“sexiest” job of the 21st century. Data is fueling business decisions and
making its impact felt across all sectors and walks of life. It is allowing us
to create intelligent products, improvise marketing strategies, innovate
business strategies, enhance safety mechanisms, arrest fraud, reduce
environmental pollution, and create path-breaking medicines. Our
everyday life is enriched and our social media interactions are more
organized. It is allowing us to reduce costs, increase profits, and optimize
operations. It offers a fantastic growth and career path ahead, but there is a
dearth of talent in the field.
This book attempts to educate the reader in a branch of machine
learning called supervised learning. This book covers a spectrum of
supervised learning algorithms and respective Python implementations.
Throughout the book, we are discussing building blocks of algorithms,
their nuts and bolts, mathematical foundations, and background process.
The learning is complemented by developing actual Python code from
scratch with step-by-step explanation of the code.

xix
Introduction

The book starts with an introduction to machine learning where

machine learning concepts, the difference between supervised, ­
semi-­supervised, and unsupervised learning approaches, and practical
use cases are discussed. In the next chapter, we examine regression
algorithms like linear regression, multinomial regression, decision tree,
random forest, and so on. It is then followed by a chapter on classification
algorithms using logistic regression, naïve Bayes, knn, decision tree, and
random forest. In the next chapter, advanced concepts of GBM, SVM, and
neural network are studied. We are working on structured data as well
as text and image data in the book. Pragmatic Python implementation
complements the understanding. It is then followed by the final chapter on
end-to-end model development. The reader gets Python code, datasets,
best practices, resolution of common issues and pitfalls, and pragmatic
first-hand knowledge on implementing algorithms. The reader will be able
to run the codes and extend them in an innovative manner, as well as will
understand how to approach a supervised learning problem. Your prowess
as a data science enthusiast is going to get a big boost, so get ready for
these fruitful lessons!
The book is suitable for researchers and students who want to
explore supervised learning concepts with Python implementation. It
is recommended for working professionals who yearn to stay on the
edge of technology, clarify advanced concepts, and get best practices
and solutions to common challenges. It is intended for business leaders
who wish to gain first-hand knowledge and develop confidence while
they communicate with their teams and clientele. Above all, it is meant
for a curious person who is trying to explore how supervised learning
algorithms work and who would like to try Python.
Stay blessed, stay healthy!
—Vaibhav Verdhan
Limerick,
Ireland. June 2020

xx
CHAPTER 1

Introduction to
Supervised Learning
“The future belongs to those who prepare for it today.”
— Malcom X

The future is something which always interests us. We want to know

what lies ahead and then we can plan for it. We can mold our business
strategies, minimize our losses, and increase our profits if we can predict
the future. Predicting is traditionally intriguing for us. And you have just
taken the first step to learning about predicting the future. Congratulations
and welcome to this exciting journey!
You may have heard that data is the new oil. Data science and machine
learning (ML) are harnessing this power of data to generate predictions for
us. These capabilities allow us to examine trends and anomalies, gather
actionable insights, and provide direction to our business decisions. This
book assists in developing these capabilities. We are going to study the
concepts of ML and develop pragmatic code using Python. You are going
to use multiple datasets, generate insights from data, and create predictive
models using Python.
By the time you finish this book, you will be well versed in the concepts
of data science and ML with a focus on supervised learning. We will
examine concepts of supervised learning algorithms to solve regression

© Vaibhav Verdhan 2020 1

V. Verdhan, Supervised Learning with Python,
https://doi.org/10.1007/978-1-4842-6156-9_1
Chapter 1 Introduction to Supervised Learning

problems, study classification problems, and solve different real-life case

studies. We will also study advanced supervised learning algorithms and
deep learning concepts. The datasets are structured as well as text and
images. End-to-end model development and deployment process are
studied to complete the entire learning.
In this process, we will be examining supervised learning algorithms,
the nuts and bolts of them, statistical and mathematical equations and the
process, what happens in the background, and how we use data to create
the solutions. All the codes use Python and datasets are uploaded to a
GitHub repository (https://github.com/Apress/supervised-learning-­
w-python) for easy access. You are advised to replicate those codes
yourself.
Let’s start this learning journey.

What Is ML?
When we post a picture on Facebook or shop at Amazon, tweet or watch
videos on YouTube, each of these platforms is collecting data for us. At
each of these interactions, we are leaving behind our digital footprints.
These data points generated are collected and analyzed, and ML allows
these giants to make logical recommendations to us. Based on the genre
of videos we like, Netflix/YouTube can update our playlist, what links we
can click, and status we can react to; Facebook can recommend posts to us,
observing what type of product we frequently purchase; and Amazon can
suggest our next purchase as per our pocket size! Amazing, right?
The short definition for ML is as follows: “In Machine Learning, we
study statistical/mathematical algorithms to learn the patterns from the
data which are then used to make predictions for the future.”
And ML is not limited to the online mediums alone. Its power has been
extended to multiple domains, geographies, and use cases. We will be
describing those use cases in detail in the last section of this chapter.

2
 Chapter 1 Introduction to Supervised Learning

So, in ML, we analyze vast amounts of data and uncover the patterns in it.
These patterns are then applied on real-world data to make predictions
for the future. This real-world data is unseen, and the predictions will help
businesses shape their respective strategies. We do not need to explicitly
program computers to do these tasks; rather, the algorithms take the
decisions based on historical data and statistical models.
But how does ML fit into the larger data analysis landscape? Often,
we encounter terms like data analysis, data mining, ML, and artificial
intelligence (AI). Data science is also a loosely used phrase with no
exact definition available. It will be a good idea if these terms are
explored now.

 elationship Between Data Analysis, Data

R
Mining, ML, and AI
Data mining is a buzzword nowadays. It is used to describe the process of
collecting data from large datasets, databases, and data lakes, extracting
information and patterns from that data, and transforming these insights
into usable structure. It involves data management, preprocessing,
visualizations, and so on. But it is most often the very first step in any data
analysis project.
The process of examining the data is termed data analysis. Generally,
we trend the data, identify the anomalies, and generate insights using
tables, plots, histograms, crosstabs, and so on. Data analysis is one of the
most important steps and is very powerful since the intelligence generated
is easy to comprehend, relatable, and straightforward. Often, we use
Microsoft Excel, SQL for EDA. It also serves as an important step before
creating an ML model.
There is a question quite often discussed—what is the relationship
between ML, AI, and deep learning? And how does data science fit in?
Figure 1-1 depicts the intersections between these fields. AI can be

3
Chapter 1 Introduction to Supervised Learning

thought of as automated solutions which replace human-intensive tasks.

AI hence reduces the cost and time consumed as well as improving the
overall efficiency.

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$UWLILFLDO
,QWHOOLJHQFH

0DFKLQH
/HDUQLQJ

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0DFKLQH/HDUQLQJ
'HHS
/HDUQLQJ

1HXUDO1HWZRUNV

Figure 1-1. Relationship between AI, ML, deep learning, and data
science shows how these fields are interrelated with each other and
empower each other

Deep learning is one of the hottest trends now. Neural networks are
the heart and soul of deep learning. Deep learning is a subset of AI and ML
and involves developing complex mathematical models to solve business
problems. Mostly we use neural networks to classify images and analyze
text audio and video data.
Data science lies at the juxtaposition of these various domains. It
involves not only ML but also statistics understanding, coding expertise
and business acumen to solve business problems. A data scientist’s job
is to solve business problems and generate actionable insights for the
business. Refer to Table 1-1 to understand the capabilities of data science
and its limitations.

4
 Chapter 1 Introduction to Supervised Learning

Table 1-1. Data Science: How Can It Help Us, Its Usages, and
Limitations
How data science can help Limitations of data science
Assist in making decisions by analyzing multi
dimensional data which is quite difficult for a Data is not an alternative to experience
human being
Use statistical tools & techniques to uncover Data science cannot replace the subject matter
patterns knowledge
Data science depends on data availability and
The algorithms further help in measuring the
data quality. Depending on the input,we will get
accuracy of the patterns & the claims
the output
Data science will not increase the revenue or
The results are reproducible and can be improved sales or output by 50% overnight. Similarly, it will
not decrease the cost by 1/3 immediately
The machine learns, which is a big difference A data science project takes time to be
-from the traditional software engineering implemented

With the preceding discussion, the role of ML and its relationship with
other data-related fields should be clear to you. You would have realized by
now that “data” plays a pivotal role in ML. Let’s explore more about data,
its types and attributes.

Data, Data Types, and Data Sources

You already have some understanding of data for sure. It will be
a good idea to refresh that knowledge and discuss different types
of datasets generated and examples of it. Figure 1-2 illustrates the
differentiation of data.

5
Chapter 1 Introduction to Supervised Learning

Figure 1-2. Data can be divided between structured and unstructured.

Structured data is easier to work upon while generally deep learning
is used for unstructured data

Data is generated in all the interactions and transactions we do.

Online or offline: we generate data every day, every minute. At a bank,
a retail outlet, on social media, making a mobile call: every interaction
generates data.
Data comes in two flavors: structured data and unstructured data.
When you make that mobile call to your friend, the telecom operator
gets the data of the call like call duration, call cost, time of day, and so on.
Similarly, when you make an online transaction using your bank portal,
data is generated around the amount of transaction, recipient, reason
of transaction, date/time, and so on. All such data points which can be
represented in a row-column structure are called structured data. Most of
the data used and analyzed is structured. That data is stored in databases
and servers using Oracle, SQL, AWS, MySQL, and so on.

6
 Chapter 1 Introduction to Supervised Learning

Unstructured data is the type which cannot be represented in a row-­

column structure, at least in its basic format. Examples of unstructured
data are text data (Facebook posts, tweets, reviews, comments, etc.),
images and photos (Instagram, product photos), audio files (jingles,
recordings, call center calls), and videos (advertisements, YouTube posts,
etc.). All of the unstructured data can be saved and analyzed though. As
you would imagine, it is more difficult to analyze unstructured data than
structured data. An important point to be noted is that unstructured
data too has to be converted into integers so that the computers can
understand it and can work on it. For example, a colored image has
pixels and each pixel has RGB (red, green, blue) values ranging from 0
to 255. This means that each image can be represented in the form of
matrices having integers. And hence that data can be fed to the computer
for further analysis.

Note We use techniques like natural language processing, image

analysis, and neural networks like convolutional neural networks,
recurrent neural networks, and so on to analyze text and image data.

A vital aspect often ignored and less discussed is data quality. Data
quality determines the quality of the analysis and insights generated.
Remember, garbage in, garbage out.
The attributes of a good dataset are represented in Figure 1-3.
While you are approaching a problem, it is imperative that you spend
a considerable amount of time ascertaining that your data is of the
highest quality.

7
Chapter 1 Introduction to Supervised Learning

Figure 1-3. Data quality plays a vital role in development of an

ML solution; a lot of time and effort are invested in improving
data quality

We should ensure that data available to us conforms to the following

standards:

• Completeness of data refers to the percentage of

available attributes. In real-world business, we find
that many attributes are missing, or have NULL or NA
values. It is advisable to ensure we source the data
properly and ensure its completeness. During the
data preparation phase, we treat these variables and
replace them or drop them as per the requirements. For
example, if you are working on retail transaction data,
we have to ensure that revenue is available for all or
almost all of the months.

8
 Chapter 1 Introduction to Supervised Learning

• Data validity is to ensure that all the key performance

indicators (KPI) are captured during the data
identification phase. The inputs from the business
subject matter experts (SMEs) play a vital role in
ensuring this. These KPIs are calculated and are
verified by the SMEs. For example, while calculating the
average call cost of a mobile subscriber, the SME might
suggest adding/deleting few costs like spectrum cost,
acquisition cost, and so on.

• Accuracy of the data is to make sure all the data points

captured are correct and no inconsistent information
is in our data. It is observed that due to human error
or software issues, sometimes wrong information is
captured. For example, while capturing the number of
customers purchasing in a retail store, weekend figures
are mostly higher than weekdays. This is to be ensured
during the exploratory phase.

• Data used has to be consistent and should not vary

between systems and interfaces. Often, different
systems are used to represent a KPI. For example, the
number of clicks on a website page might be recorded
in different ways. The consistency in this KPI will
ensure that correct analysis is done, and consistent
insights are generated.

• While you are saving the data in databases and tables,

often the relationships between various entities and
attributes are not consistent or worse may not exist.
Data integrity of the system ensures that we do not face
such issues. A robust data structure is required for an
efficient, complete, and correct data mining process.

9
Chapter 1 Introduction to Supervised Learning

• The goal of data analytics is to find trends and

patterns in the data. There are seasonal variations,
movements with respect to days/time and events,
and so on. Sometimes it is imperative that we capture
data of the last few years to measure the movement
of KPIs. The timeliness of the data captured has to be
representative enough to capture such variations.

Most common issues encountered in data are missing values,

duplicates, junk values, outliers, and so on. You will study in detail how to
resolve these issues in a logical and mathematical manner.
By now, you have understood what ML is and what the attributes
of good-quality data are to ensure good analysis. But still a question is
unanswered. When we have software engineering available to us, why do
we still need ML? You will find the answer to this question in the following
section.

How ML Differs from Software Engineering

Software engineering and ML both solve business problems. Both
interact with databases, analyze and code modules, and generate outputs
which are used by the business. The business domain understanding is
imperative for both fields and so is the usability. On these parameters,
both software engineering and ML are similar. However, the key
difference lies in the execution and the approach used to solve the
business challenge.
Software writing involves writing precise code which can be executed
by the processor, that is, the computer. On the other hand, ML collects
historical data and understands trends in the data. Based on the trends,
the ML algorithm will predict the desired output. Let us look at it with an
easy example first.

10
 Chapter 1 Introduction to Supervised Learning

Consider this: you want to automate the opening of a cola can. Using
software, you would code the exact steps with precise coordinates and
instructions. For that, you should know those precise details. However,
using ML, you would “show” the process of opening a can to the system
many times. The system will learn the process by looking at various steps
or “train” itself. Next time, the system can open the can itself. Now let’s
look at a real-life example.
Imagine you are working for a bank which offers credit cards. You
are in the fraud detection unit and it is your job to classify a transaction
as fraudulent or genuine. Of course, there are acceptance criteria like
transaction amount, time of transaction, mode of transaction, city of
transaction, and so on.
Let us implement a hypothetical solution using software; you might
implement conditions like those depicted in Figure 1-4. Like a decision
tree, a final decision can be made. Step 1: if the transaction amount is
below the threshold X, then move to step 2 or else accept it. In step 2,
the transaction time might be checked and the process will continue
from there.

Figure 1-4. Hyphothetical software engineering process for a fraud

detection system. Software engineering is different from ML.

11
Chapter 1 Introduction to Supervised Learning

However using ML, you will collect the historical data comprising past
transactions. It will contain both fraudulent and genuine transactions.
You will then expose these transactions to the statistical algorithm and
train it. The statistical algorithm will uncover the relationship between
attributes of the transaction with its genuine/fraud nature and will keep
that knowledge safe for further usage.
Next time, when a new transaction is shown to the system, it will
classify it fraudulent or genuine based on the historical knowledge it
has generated from the past transactions and the attributes of this new
unseen transaction. Hence, the set of rules generated by ML algorithms are
dependent on the trends and patterns and offer a higher level of flexibility.
Development of an ML solution is often more iterative than software
engineering. Moreover, it is not exactly accurate like software is. But ML is
a good generalized solution for sure. It is a fantastic solution for complex
business problems and often the only solution for really complicated
problems which we humans are unable to comprehend. Here ML plays a
pivotal role. Its beauty lies in the fact that if the training data changes, one
need not start the development process from scratch. The model can be
retrained and you are good to go!
So ML is undoubtedly quite useful, right! It is time for you to
understand the steps in an ML project. This will prepare you for a deeper
journey into ML.

M
 L Projects
An ML project is like any other project. It has a business objective to be
achieved, some input information, tools and teams, desired accuracy
levels, and a deadline!
However, execution of an ML project is quite different. The very first
step in the ML process is the same, which is defining a business objective
and a measurable parameter for measuring the success criteria. Figure 1-5
shows subsequent steps in an ML project.

12
 Chapter 1 Introduction to Supervised Learning

RIWKHWLPHJRHVWR'DWD'LVFRYHU\DQG'DWD3UHSDUDWLRQSKDVHDORQH

   

Figure 1-5. An ML project is like any other project, with various steps
and process. Proper planning and execution are required for an ML
project like any other project.

The subsequent steps are

1. Data discovery is done to explore the various data

sources which are available to us. Dataset might be
available in SQL server, excel files, text or .csv files,
or on a cloud server.

2. In the data mining and calibration stage, we extract

the relevant fields from all the sources. Data is
properly cleaned and processed and is made
ready for the next phase. New derived variables
are created and variables which do not have much
information are discarded.

3. Then comes the exploratory data analysis or EDA

stage. Using analytical tools, general insights are
generated from the data. Trends, patterns, and

13
Another Random Scribd Document
with Unrelated Content
things was owing to the total want of the most ordinary common
sense on the part of the blinded authorities of the world. The period
would probably never arrive when the earth would be full; but, if it
should, the human race would be good, intelligent, and rational, and
would know much better than the present irrational generation how
to provide for the occurrence. Such was Owen’s socialistic treatment
of the population problem.
Robert Owen was essentially a pioneer, whose work and influence it
would be unjust to measure by their tangible results. Apart from his
socialistic theories, it should, nevertheless, be remembered that he
was one of the foremost and most energetic promoters of many
movements of acknowledged and enduring usefulness. He was the
founder of infant schools in England; he was the first to introduce
reasonably short hours into factory labour, and zealously promoted
factory legislation—one of the most needed and most beneficial
reforms of the century; and he was the real founder of the co-
operative movement. In general education, in sanitary reform, and in
his sound and humanitarian views of common life, he was far in
advance of his time. Like Fourier, also, he did the great service of
calling attention to the advantages which might be obtained in the
social development of the future from the reorganisation of the
commune, or self-governing local group of workers.
Still, he had many serious faults; all that was quixotic, crude, and
superficial in his views became more prominent in his later years,
and by the extravagance of his advocacy of them he did vital injury
to the cause he had at heart. In his personal character he was
without reproach—frank, benevolent, and straightforward to a fault;
and he pursued the altruistic schemes in which he spent all his
means with more earnestness than most men devote to the
accumulation of a fortune.
In England the reform of 1832 had the same effect as the revolution
of July (1830) in France: it brought the middle class into power, and
by the exclusion of the workmen emphasised their existence as a
separate class. The discontent of the workmen now found
expression in Chartism. As is obvious from the contents of the
Charter, Chartism was most prominently a demand for political
reform; but both in its origin and in its ultimate aim the movement
was more essentially economic. As regards the study of socialism,
the interest of this movement lies greatly in the fact that in its
organs the doctrine of ‘surplus value,’ afterwards elaborated by Marx
as the basis of his system, is broadly and emphatically enunciated.
While the worker produces all the wealth, he is obliged to content
himself with the meagre share necessary to support his existence,
and the surplus goes to the capitalist, who, with the king, the
priests, lords, esquires, and gentlemen, lives upon the labour of the
working man (Poor Man’s Guardian, 1835).
After the downfall of Owenism began the Christian socialist
movement in England (1848-52), of which the leaders were Maurice,
Kingsley, and Mr. Ludlow. The abortive Chartist demonstration of
April 1848 excited in Maurice and his friends the deepest sympathy
with the sufferings of the English working class—a feeling which was
intensified by the revelations regarding ‘London Labour and the
London Poor’ published in the Morning Chronicle in 1849. Mr.
Ludlow, who had in France become acquainted with the theories of
Fourier, was the economist of the movement, and it was with him
that the idea originated of starting co-operative associations.
In Politics for the People, in the Christian Socialist, in the pulpit and
on the platform, and in Yeast and Alton Locke, well-known novels of
Kingsley, the representatives of the movement exposed the evils of
the competitive system, carried on an unsparing warfare against the
Manchester School, and maintained that socialism, rightly
understood, was only Christianity applied to social reform. Their
labours in insisting on ethical and spiritual principles as the true
bonds of society, in promoting associations, and in diffusing a
knowledge of co-operation, were largely beneficial. In the north of
England they joined hands with the co-operative movement
inaugurated by the Rochdale pioneers in 1844 under the influence of
Owenism. Productive co-operation made very little progress, but co-
operative distribution soon proved a great success.
[1] Of R. Owen’s numerous works in exposition of his
system, the most important are the New View of
Society; the Report communicated to the
Committee on the Poor Law; the Book of the New
Moral World; and Revolution in the Mind and
Practice of the Human Race. See Life of Robert
Owen written by himself, London, 1857, and
Threading my Way, Twenty-seven Years of
Autobiography, by Robert Dale Owen, his son,
London, 1874. There are also Lives of Owen by A. J.
Booth (London, 1869), W. L. Sargant (London,
1860), and F. Podmore (London, 1906). For works
of a more general character see G. J. Holyoake,
History of Co-operation in England, London, 1875;
Adolf Held, Zwei Bücher zur socialen Geschichte
Englands, Leipsic, 1881.
 CHAPTER V

FERDINAND LASSALLE

I. Life

In 1852 the twofold socialist movement in France and England had

come to an end, leaving no visible result of any importance. From
that date the most prominent leaders of socialism have been
German and Russian.
German socialists also played a part in the revolution of 1848 and in
the years that preceded it; but as the work that makes their names
really historical was not performed till a later period, we have
postponed the consideration of it till now, when we can treat it as a
whole. The most conspicuous chiefs of German socialism have been
Karl Marx, Friedrich Engels, Lassalle, and Rodbertus. Of these,
Lassalle[1] was the first to make his mark in history as the originator
of the Social Democratic movement in Germany.
Ferdinand Lassalle was born at Breslau in 1825.
Like Karl Marx, the chief of international socialism, he was of Jewish
extraction. His father, a prosperous merchant in Breslau, intended
Ferdinand for a business career, and with this view sent him to the
commercial school at Leipsic; but the boy, having no liking for that
kind of life, got himself transferred to the university, first at Breslau,
and afterwards at Berlin. His favourite studies were philology and
philosophy; he became an ardent Hegelian, and in politics was one
of the most advanced. Having completed his university studies in
1845, he began to write a work on Heracleitus from the Hegelian
point of view; but it was soon interrupted by more stirring interests,
and did not see the light for many years.
From the Rhine country, where he settled for a time, he went to
Paris, and made the acquaintance of his great compatriot Heine,
who conceived for him the deepest sympathy and admiration. In the
letter of introduction to Varnhagen von Ense, which the poet gave
Lassalle when he returned to Berlin, there is a striking portrait of the
future agitator. Heine speaks of his friend Lassalle as a young man of
the most remarkable endowments, in whom the widest knowledge,
the greatest acuteness, and the richest gifts of expression are
combined with an energy and practical ability which excite his
astonishment; but adds, in his half-mocking way, that he is a
genuine son of the new era, without even the pretence of modesty
or self-denial, who will assert and enjoy himself in the world of
realities. At Berlin, Lassalle became a favourite in some of the most
distinguished circles; even the veteran Humboldt was fascinated by
him, and used to call him the Wunderkind.
Here it was also, early in 1846, that he met the lady with whom his
life was to be associated in so striking a way, the Countess Hatzfeldt.
She had been separated from her husband for many years, and was
at feud with him on questions of property and the custody of their
children. With characteristic energy Lassalle adopted the cause of
the countess, whom he believed to have been outrageously
wronged, made a special study of law, and, after bringing the case
before thirty-six tribunals, reduced the powerful count to a
compromise on terms most favourable to his client.
The process, which lasted eight years, gave rise to not a little
scandal, especially that of the Cassettengeschichte. This ‘affair of the
casket’ arose out of an attempt by the countess’s friends to get
possession of a bond for a large life-annuity settled by the count on
his mistress, a Baroness Meyendorf, to the prejudice of the countess
and her children. At the instigation of Lassalle, two of his comrades
succeeded in carrying off a casket, which was supposed to contain
the document in question (but which really contained her jewels),
from the baroness’s room at a hotel in Cologne. They were
prosecuted for theft, one of them being condemned to six months’
imprisonment. Lassalle himself was accused of moral complicity, but
was acquitted on appeal.
His intimate relations with the countess, which continued till the end,
certainly did not tend to improve Lassalle’s position in German
society. Rightly or wrongly, people had an unfavourable impression
of him, as of an adventurer. Here we can but say that he claimed to
act from the noblest motives; in the individual lot and suffering of
the countess he saw the social misery of the time reflected, and his
assertion of her cause was a moral insurrection against it. While the
case was pending, he gave the countess a share of his allowance
from his father; and after it was won, he received according to
agreement, from the now ample resources of the lady, an annual
income of four thousand thalers (£600). Added to his own private
means, this sum placed the finances of Lassalle on a sure footing for
the rest of his life. His conduct was a mixture of chivalry and
business, which every one must judge for himself. It was certainly
not in accordance with the conventionalities, but for these Lassalle
never entertained much respect.
In 1848 Lassalle attached himself to the group of men, Karl Marx,
Engels, Freiligrath, and others, who in the Rhine country represented
the socialistic and extreme democratic side of the revolution, and
whose organ was the New Rhenish Gazette. But the activity of
Lassalle was only local and subordinate. He was, however,
condemned to six months’ imprisonment for resisting the authorities
at Dusseldorf. On that occasion Lassalle prepared the first of those
speeches which made so great an impression on the men of his
time; but it was not delivered. It contains the first important
statement of his social and political opinions. ‘I will always joyfully
confess,’ he said, ‘that from inner conviction I am a decided adherent
of the Social Democratic republic.’
Till 1858 Lassalle resided mostly in the Rhine country, prosecuting
the suit of his friend the countess, and afterwards completing his
work on Heracleitus, which was published in that year. He was not
allowed to live in Berlin because of his connection with the
disturbances of 1848. In 1859 he returned to the capital disguised as
a carter, and finally, through the influence of Humboldt with the
king, received permission to remain.
In the same year he published a remarkable pamphlet on The Italian
War and the Mission of Prussia, in which he came forward to warn
his countrymen against going to the rescue of Austria in her war
with France. He argued that if France drove Austria out of Italy she
might annex Savoy, but could not prevent the restoration of Italian
unity under Victor Emmanuel. France was doing the work of
Germany by weakening Austria, the great cause of German disunion
and weakness; Prussia should form an alliance with France in order
to drive out Austria and make herself supreme in Germany. After
their realisation by Bismarck, these ideas have become sufficiently
commonplace; but they were nowise obvious when thus published
by Lassalle. In this, as in other matters, he showed that he
possessed both the insight and foresight of a statesman.
In the course of the Hatzfeldt suit Lassalle had acquired no little
knowledge of law, which proved serviceable to him in the great
work, System of Acquired Rights, published in 1861. The book
professes to be, and in a great measure is, an application of the
historical method to legal ideas and institutions; but it is largely
dominated also by abstract conceptions, which are not really drawn
from history, but read into it. The results of his investigation are
sufficiently revolutionary; in the legal sphere they go even farther
than his socialistic writings in the economic and political. But with
one important exception he made no attempt to base his socialistic
agitation on his System of Acquired Rights; it simply remained a
learned work.
Hitherto Lassalle had been known only as the author of two learned
works, and as connected with one of the most extraordinary lawsuits
of the nineteenth century, which had become a widespread scandal.
Now began the brief activity which was to give him an historical
significance. His revolutionary activity in 1848, though only a short
phase in his career, was not an accident; it represented a permanent
feature of his character. In him the student and the man of action
were combined in a notable manner, but the craving for effective
action was eminently strong. The revolutionary and the active
elements in his strangely mixed nature had for want of an
opportunity been for many years in abeyance.
A rare opportunity had at last come for asserting his old convictions.
In the struggle between the Prussian Government and the
Opposition he saw an opportunity for vindicating a great cause, that
of the working men, which would outflank the Liberalism of the
middle classes, and might command the sympathy and respect of
the Government. But his political programme was entirely
subordinate to the social, that of bettering the condition of the
working classes; and he believed that as their champion he might
have such influence in the Prussian State as to determine it on
entering on a great career of social amelioration.
The social activity of Lassalle dates from the year 1862. It was a
time of new life in Germany. The forces destined to transform the
Germany of Hegel into the Germany of Bismarck were preparing.
The time for the restoration and unification of the Fatherland under
the leadership of Prussia had come. The nation that had so long
been foremost in philosophy and theory was to take a leading place
in the practical walks of national life, in war and politics, and in the
modern methods of industry. The man who died as first German
Emperor of the new order ascended the throne of Prussia in 1861.
Bismarck, whose mission it was to take the chief part in this great
transformation, entered on the scene as Chief Minister of Prussia in
the autumn of 1862. The Progressist party, that phase of German
Liberalism which was to offer such bitter opposition both to Bismarck
and Lassalle, came into existence in 1861.
For accomplishing this world-historic change the decisive factor was
the Prussian army. The new rulers of Prussia clearly saw that for the
success of their plans everything would depend on the efficiency of
the army. But on the question of its reorganisation they came into
conflict with the Liberals, who, failing to comprehend the policy of
Bismarck, refused him the supplies necessary for realising ideals
dear to every German patriot.
In the controversy so bitterly waged between the Prussian monarchy
and the Liberals, Lassalle intervened. As might be expected, he was
not a man to be bound by the formulas of Prussian Liberalism, and
in a lecture, On the Nature of a Constitution, delivered early in 1862,
he expounded views entirely at variance with them. In this lecture
his aim was to show that a constitution is not a theory or a
document written on paper; it is the expression of the strongest
political forces of the time. The king, the nobility, the middle class,
the working class, all these are forces in the polity of Prussia; but
the strongest of all is the king, who possesses in the army a means
of political power, which is organised, excellently disciplined, always
at hand, and always ready to march. The army is the basis of the
actual working constitution of Prussia. In the struggle against a
Government resting on such a basis, verbal protests and
compromises were of no avail.
In a second lecture, What Next?, Lassalle proceeded to maintain that
there was only one method for effectually resisting the Government,
to proclaim the facts of the political situation as they were, and then
to retire from the Chamber. By remaining they only gave a false
appearance of legality to the doings of the Government. If they
withdrew it must yield, as in the present state of political opinion in
Prussia and in civilised Europe no Government could exist in defiance
of the wishes of the people.
In a pamphlet subsequently published under the title of Might and
Right, Lassalle defended himself against the accusation that in these
lectures he had subordinated the claims of Right to those of Force.
He had, he said, not been expressing his own views of what ought
to be; he had simply been elucidating facts in an historical way, he
had only been explaining the real nature of the situation. He now
went on to declare that no one in the Prussian State had any right to
speak of Right but the old and genuine democracy. It had always
cleaved to the Right, degrading itself by no compromise with power.
With the democracy alone is Right, and with it alone will be Might.
We need not say that these utterances of Lassalle had no influence
on the march of events. The rulers pushed on the reorganising of
the army with supplies obtained without the consent of the Prussian
Chambers, the Liberal members protesting in vain till the great
victory over Austria in 1866 furnished an ample justification for the
policy of Bismarck.
But their publication marked an important crisis in his own career, for
they did not recommend him to the favourable consideration of the
German Liberals with whom he had previously endeavoured to act.
He and they never had much sympathy for one another. They were
fettered by formulas as well as wanting in energy and initiative. On
the other hand, his adventurous career; his temperament, which
disposed him to rebel against the conventionalities and formulas
generally; his loyalty to the extreme democracy of 1848, all brought
him into disharmony with the current Liberalism of his time. They
gave him no tokens of their confidence, and he chose a path of his
own.
A more decisive step in a new direction was taken in 1862 by his
lecture, The Working-Men’s Programme; On the special Connection
of the Present Epoch of History with the Idea of the Working Class.
The gist of this lecture was to show that we are now entering on a
new era of history, of which the working class are the makers and
representatives. It is a masterly performance, lucid in style, and
scientific in method of treatment. Yet this did not save its author
from the attentions of the Prussian police. Lassalle was brought to
trial on the charge of exciting the poor against the rich, and in spite
of an able defence, published under the title of Science and the
Workers, he was condemned to four months’ imprisonment. But he
appealed, and on the second hearing of the case made such an
impression on the judges that the sentence was commuted into a
fine of £15.
Such proceedings naturally brought Lassalle into prominence as the
exponent of a new way of thinking on social and political subjects. A
section of the working men were, like himself, discontented with the
current German Liberalism. The old democracy of 1848 was
beginning to awake from the apathy and lassitude consequent on
the failures of that troubled period. Men imbued with the traditions
and aspirations of such a time could not be satisfied with the half-
hearted programme of the Progressists, who would not decide on
adopting universal suffrage as part of their policy, yet wished to
utilise the workmen for their own ends. A Liberalism which had not
the courage to be frankly democratic, could only be a temporary and
unsatisfactory phase of political development.
This discontent found expression at Leipsic, where a body of
workmen, displeased with the Progressists, yet undecided as to any
clear line of policy, had formed a Central Committee for the calling
together of a Working Men’s Congress. With Lassalle, they had
common ground in their discontent with the Progressists, and to him
in 1863 they applied, in the hope that he might suggest a definite
line of action. Lassalle replied in an Open Letter, with a political and
social-economic programme, which, for lucidity and
comprehensiveness of statement, left nothing to be desired. In the
Working Men’s Programme, Lassalle had drawn the rough outlines of
a new historic period, in which the interests of labour should be
paramount; in the Open Letter he expounds the political, social, and
economic principles which should guide the working men in
inaugurating the new era. The Open Letter has well been called the
Charter of German Socialism. It was the first historic act in a new
stage of social development. We need not say that it marked the
definite rupture of Lassalle with German Liberalism.
In the Open Letter the guiding principles of the Social Democratic
agitation of Lassalle are given with absolute clearness and decision:
that the working men should form an independent political party—
one, however, in which the political programme should be entirely
subordinated to the great social end of improving the condition of
their class; that the schemes of Schulze-Delitzsch[2] for this end were
inadequate; that the operation of the iron law of wages prevented
any real improvement under the existing conditions; that productive
associations, by which, the workmen should secure the full product
of their labour, should be established by the State, founded on
universal suffrage, and therefore truly representative of the people.
The Leipsic Committee accepted the policy thus sketched, and
invited him to address them in person. After hearing him the
meeting voted in his favour by a majority of 1300 against 7.
A subsequent appearance at Frankfort-on-the-Main was even more
flattering to Lassalle. In that as in most other towns of Germany the
workmen were generally disposed to support Schulze and the
Progressist party. Lassalle therefore had the hard task of conciliating
and gaining a hearing from a hostile audience. His first speech, four
hours in length, met at times with a stormy reception, and was
frequently interrupted. Yet he gained the sympathy of his audience
by his eloquence and the intrinsic interest of his matter, and the
applause increased as he went on. When, two days afterwards, he
addressed them a second time, the assembly voted for Lassalle by
400 to 40. It was really a great triumph. Like Napoleon, he had, he
said, beaten the enemy with their own troops. On the following day
he addressed a meeting at Mainz, where 700 workmen unanimously
declared in his favour.
These successes seemed to justify Lassalle in taking the decisive
step of his agitation—the foundation of the Universal German
Working Men’s Association, which followed at Leipsic on May 23,
1863. Its programme was a simple one, containing only one point—
universal suffrage. ‘Proceeding from the conviction that only through
equal and direct universal suffrage[3] can a sufficient representation
of the social interests of the German working class and a real
removal of class antagonisms in society be realised, the Association
pursues the aim, in a peaceful and legal way, especially by winning
over public opinion, to work for the establishment of equal and
direct universal suffrage.’
Hitherto Lassalle had been an isolated individual expressing on his
own responsibility an opinion on the topics of the day. He was
elected President, for five years, of the newly founded Association,
and was therefore the head of a new movement. He had crossed the
Rubicon, not without hesitation and misgiving.
In the summer of 1863 little was accomplished. The membership of
the Association grew but slowly, and, according to his wont, Lassalle
retired to the baths to recruit his health. In the autumn he renewed
his agitation by a ‘review’ of his forces on the Rhine, where the
workmen were most enthusiastic in his favour. But the severest crisis
of his agitation befell during the winter of 1863-4. At this period his
labours were almost more than human; he wrote his Bastiat-Schulze,
[4]
a considerable treatise, in about three months, defended himself
before the courts both of Berlin and the Rhine in elaborate speeches,
conducted the affairs of his Association in all their troublesome
details, and often before stormy and hostile audiences gave a
succession of addresses, the aim of which was the conquest of
Berlin.
Lassalle’s Bastiat-Schulze, his largest economic work, bears all the
marks of the haste and feverishness of the time that gave it birth. It
contains passages in the worst possible taste; the coarseness and
scurrility of his treatment of Schulze are absolutely unjustifiable. The
book consists of barren and unprofitable controversy, interspersed
with philosophic statements of his economic position, and even they
are often crude, confused, and exaggerated. Controversy is usually
the most unsatisfactory department of literature, and of the various
forms of controversy that of Lassalle is the least to be desired,
consisting as it so largely did of supercilious verbal and captious
objection. The book as a whole is far below the level of the Working
Men’s Programme and the Open Letter.
After all these labours little wonder that we find him writing, on the
14th of February: ‘I am tired to death, and strong as my constitution
is, it is shaking to the core. My excitement is so great that I can no
longer sleep at night; I toss about on my bed till five o’clock, and
rise up with aching head, and entirely exhausted. I am overworked,
overtasked, and overtired in the frightfullest degree; the mad effort,
beside my other labours, to finish the Bastiat-Schulze in three
months, the profound and painful disappointment, the cankering
inner disgust, caused by the indifference and apathy of the working
class taken as a whole—all has been too much even for me.’
Clearly the great agitator needed rest, and he decided to seek it, as
usual, at the baths. But before he retired, he desired once more to
refresh his weary soul in the sympathetic enthusiasm which he
anticipated from his devoted adherents on the Rhine. Accordingly, on
the 8th May 1864, Lassalle departed for the ‘glorious review of his
army’ in the Rhine country. ‘He spoke,’ Mehring tells us, ‘on May 14th
at Solingen, on the 15th at Barmen, on the 16th at Cologne, on the
18th at Wermelskirchen.’ His journey was like a royal progress or a
triumphal procession, except that the joy of the people was perfectly
spontaneous. Thousands of workmen received him with
acclamations; crowds pressed upon him to shake hands with him, to
exchange friendly greetings with him.
On the 22nd May, the first anniversary festival of the Universal
Association, held at Ronsdorf, the enthusiasm reached its climax. Old
and young, men and women, went forth to meet him as he
approached the town; and he entered it through triumphal arches,
under a deluge of flowers thrown from the hands of working girls,
amidst jubilation indescribable. Writing to the Countess of Hatzfeldt
about this time of the impression made on his mind by his reception
on the Rhine, Lassalle says, ‘I had the feeling that such scenes must
have been witnessed at the founding of new religions.’
The speech of Lassalle at Ronsdorf corresponded in character with
the enthusiasm and exaltation of such a time and such an audience.
The King of Prussia had recently listened with favour to the
grievances of a deputation of Silesian weavers, and promised to help
them out of his own purse. Von Ketteler, Bishop of Mainz, had
published a short treatise, in which he expressed his agreement with
Lassalle’s criticism of the existing economic system. As his manner
was, Lassalle did not under-estimate the value of those expressions
of opinion. ‘We have compelled,’ he declared, ‘the workmen, the
people, the bishops, the king, to bear testimony to the truth of our
principles.’
It would be easy to ridicule the enthusiasm for Lassalle entertained
by those workmen on the Rhine, but it will be more profitable if we
pause for a moment to realise the world-historic pathos of the
scene. For the first time for many centuries we see the working men
of Germany aroused from their hereditary degradation, apathy, and
hopelessness. Change after change had passed in the higher sphere
of politics. One conqueror after another had traversed these Rhine
countries, but, whoever lost or won, it was the working man who
had to pay with his sweat and toil and sorrow. He was the anvil on
which the hammer of those iron times had fallen without mercy and
without intermission. His doom it was to drudge, to be fleeced, to be
drilled and marched off to fight battles in which he had no interest.
Brief and fitful gleams of a wild and desperate hope had visited
these poor people before, only to go out again in utter darkness; but
now in a sky which had so long been black and dull with
monotonous misery, the rays were discernible of approaching dawn,
a shining light which would grow into a more perfect day. For in the
process of history the time had come when the suffering which had
so long been dumb should find a voice that would be heard over the
world, should find an organisation that would compel the attention
of rulers and all men.
Such a cause can be most effectually furthered by wise and sane
leadership: yet it is also well when it is not too dependent on the
guidance of those who seek to control it. The career of Lassalle
always had its unpleasant features. He liked the passing effect too
well. He was too fond of display and pleasure. In much that he did
there is a note of exaggeration, bordering on insincerity. As his
agitation proceeded, this feature of his character becomes more
marked. Some of his addresses to the workmen remind us too
forcibly of the bulletins of the first Napoleon. He was not always
careful to have the firm ground of fact and reality beneath his feet.
Many of his critics speak of the failure of his agitation; with no good
reason, considering how short a time it had continued, hardly more
than a year. Lassalle himself was greatly disappointed with the
comparatively little success he had attained. He had not the patience
to wait till the sure operation of truth and fact and the justice of the
cause he fought for should bring him the reward it merited. On all
these grounds we cannot consider the event which so unworthily
closed his life as an accident; it was the melancholy outcome of the
weaker elements in his strangely mixed character.
While posing as the spokesman of the poor, Lassalle was a man of
decidedly fashionable and luxurious habits. His suppers were well
known as among the most exquisite in Berlin. It was the most
piquant feature of his life that he, one of the gilded youth, a
connoisseur in wines, and a learned man to boot, had become
agitator and the champion of the workers. In one of the literary and
fashionable circles of Berlin he had met a young lady, a Fräulein von
Dönniges, for whom he at once felt a passion which was ardently
reciprocated. He met her again on the Rigi, in the summer of 1864,
when they resolved to marry. She was a young lady of twenty,
decidedly unconventional and original in character. It would appear
from her own confession that she had not always respected the
sacred German morality.
But she had for father a Bavarian diplomatist then resident in
Geneva, who was angry beyond all bounds when he heard of the
proposed match, and would have absolutely nothing to do with
Lassalle. The lady was imprisoned in her own room, and soon,
apparently under the influence of very questionable pressure,
renounced Lassalle in favour of another admirer, a Wallachian, Count
von Racowitza. Lassalle, who had resorted to every available means
to gain his end, was now mad with rage, and sent a challenge both
to the lady’s father and her betrothed, which was accepted by the
latter. At the Carouge, a suburb of Geneva, the meeting took place
on the morning of August 28, 1864. Lassalle was mortally wounded,
and died on the 31st of the same month. In spite of such a foolish
ending, his funeral was that of a martyr, and by many of his
adherents he has since been regarded with feelings almost of
religious devotion.
How the career of Lassalle might have shaped itself in the new
Germany under the system of universal suffrage which was adopted
only three years after his death, is an interesting subject of
speculation. He could not have remained inactive, and he certainly
would not have been hindered by doctrinaire scruples from playing
an effective part, even though it were by some kind of alliance with
the Government. His ambition and his energy were alike boundless.
In the heyday of his passion for Fräulein von Dönniges his dream
was to be installed as the President of the German Republic with her
elevated by his side. As it was, his position at his death was rapidly
becoming difficult and even untenable; he was involved in a net of
prosecutions which were fast closing round him. He would soon have
had no alternative but exile or a prolonged imprisonment.
Lassalle was undoubtedly a man of the most extraordinary
endowments. The reader of his works feels that he is in the
presence of a mind of a very high order. Both in his works and in his
life we find an exceptional combination of gifts, philosophic power,
eloquence, enthusiasm, practical energy, a dominating force of will.
Born of a cosmopolitan race, which has produced so many men little
trammelled by the conventionalism of the old European societies, he
was to a remarkable degree original and free from social prejudice;
was one of the men in whom the spirit of daring initiative is to a
remarkable degree active. He had in fact a revolutionary
temperament, disciplined by the study of German philosophy, by the
sense of the greatness of Prussia’s historic mission, and by a
considerable measure of practical insight, for in this he was not by
any means wanting. In Marx we see the same temperament, only in
his case it was stronger, more solid, sell-restrained, matured by
wider reflection, and especially by the study of the economic
development of Europe, continued for a period of forty years.
But on the whole, Lassalle was a vis intemperata. He was deficient in
sober-mindedness, self-control, and in that saving gift of common
sense, without which the highest endowments may be unprofitable
and even hurtful to their possessors and to the world. His ambitions
were not pure; he had a histrionic as well as a revolutionary
temperament; he was lacking also in self-respect; above all, he had
not sufficient reverence for the great and sacred cause of which he
had become the champion, a cause which is fitted to claim the
highest motives, the purest ambitions, the most noble enthusiasms.
His vanity, his want of self-restraint, his deficient sense of the
seriousness of his mission as a Social Democratic leader, in these we
see the failings that proved his undoing. Throughout the miserable
intrigue in which he met his death a simple, straightforward sense of
what was right and becoming would at once have saved him from
ruin. Yet he was privileged to inaugurate a great movement. As the
founder of the Social Democracy of Germany, he has earned a place
on the roll of historic names. He possessed in a notable degree the
originality, energy, and sympathy which fit a man to be the
champion of a new cause.
We may go further and say that at that date Germany had only two
men whose insight into the facts and tendencies of their time was in
some real degree adequate to the occasion—Bismarck and Lassalle.
The former represented a historic cause, which was ready for action,
the regeneration and unification of Germany to be accomplished by
the Prussian army. The cause which Lassalle brought to the front
was at a very different stage of progress. The working men, its
promoters and representatives, and Lassalle, its champion, had not
attained to anything like clearness either as to the end to be gained
or the means for accomplishing it. It was only at the crudest and
most confused initial stage.
[1] The most important works of Lassalle are
mentioned in the text. See Georg Brandes,
Ferdinand Lassalle; Franz Mehring, Die Deutsche
Social-demokratie, ihre Geschichte und ihre Lehre;
W. H. Dawson, German Socialism and Ferdinand
Lassalle.
[2]
Schulze-Delitzsch was born in 1808 at Delitzsch, in
Prussian Saxony, whence the second part of his
name, to distinguish him from the many other
people in Germany who bear the familiar name of
Schulze. It was his great merit that he founded the
co-operative movement in Germany on principles of
self-help. He was a leading member of the
Progressist party.

[3] In contrast to the unequal and indirect system

existing in Prussia, according to which the voters
are on a property basis divided into three classes.
The voters thus arranged choose bodies of electors,
by whom the members for the Chamber are
chosen.

[4]
Bastiat was the populariser in France of the
orthodox Political Economy. Lassalle accused
Schulze of being a mere echo of Bastiat’s superficial
views, and therefore called him Bastiat-Schulze.
 II. Theories of Lassalle

The socialistic position of Lassalle may generally be described as

similar to that of Rodbertus and Karl Marx. He admits his
indebtedness to both of those writers, but at the same time he
cannot be regarded as a disciple of either of them. Lassalle himself
was a thinker of great original power; he had his own way of
conceiving and expressing the historic socialism.
Lassalle supplies the key to his general position in the preface to his
Bastiat-Schulze, when, quoting from his System of Acquired Rights,
he says: In social matters the world is confronted with the question,
whether now when property in the direct utilisation of another man
no longer exists, such property in his indirect exploitation should
continue—that is, whether the free realisation and development of
our labour-force should be the exclusive private property of the
possessor of capital, and whether the employer as such, and apart
from the remuneration of his intellectual labour, should be permitted
to appropriate the result of other men’s labours.[1] This sentence, he
says, contains the programme of a national-economic work, which
he intended to write under the title, Outlines of a Scientific National
Economy. In this sentence also, we need not say, the fundamental
position of socialism is implied. He was about to carry out his project
when the Leipsic Central Committee brought the question before him
in a practical form. The agitation broke out and left him no leisure
for such a work. But he had often lamented that the exposition of
the theory had not preceded the practical agitation, and that a
scientific basis had not been provided for it.
The Bastiat-Schulze was itself a controversial work, written to meet
the needs of the hour. Lassalle has never given a full and systematic
exposition of his socialistic theory. All his social-economic writings
were published as the crises of his agitation seemed to demand. But,
as he himself says, they compensate by the life and incisiveness of
the polemical form of treatment for what they lose in systematic
value. We may add that it is often a scientific gain, for in the career
of Lassalle we see socialism confronted with fact, and thereby to a
large extent saved from the absoluteness, abstractness, and
deficient sense of reality which detract so much from the value of
the works of Marx and Rodbertus. The excessive love of system so
characteristic of German theorists may be as remote from historic
reality and possibility as the utopian schemes of French socialists. It
is, however, also a natural result of Lassalle’s mode of presentation
that he is not always consistent with himself either on practical or
theoretical questions, especially in his attitude towards the Prussian
State.
On the whole, we can most clearly and comprehensively bring out
the views of Lassalle if we follow the order in which they are
presented in his three leading works, the Working Men’s Programme,
the Open Letter, and the Bastiat-Schulze.
The central theme of the Working Men’s Programme is the vocation
of the working class as the makers and representatives of a new era
in the history of the world. We have seen that Lassalle’s System of
Acquired Rights was an application of the historical method to legal
ideas and institutions. In his social-economic writings we find the
application of the same method to economic facts and institutions.
The Working Men’s Programme is a brilliant example of the historical
method, and indeed is a lucid review of the economic development
of Europe, culminating in the working men’s State, the full-grown
democracy.
In the mediæval world the owners of land controlled politics, the
army, law, and taxation in their own interest, while labour was
oppressed and despised. The present régime of the capitalist classes
is due to a gradual process of development continued for centuries,
and is the product of many forces which have acted and reacted on
each other: the invention of the mariner’s compass and of
gunpowder; abroad the discovery of America and of the sea-route to
India; at home the overthrow of the feudal houses by a central
government, which established a regular justice, security of property,
and better means of communication. This was to be followed in time
by the development of machinery, like the cotton-spinning machine
of Arkwright, itself the living embodiment of the industrial and
economic revolution, which was destined to produce a corresponding
political change. The new machinery, the large industry, the division
of labour, cheap goods, and the world-market—these were all parts
of an organic whole. Production in mass made cheap goods possible;
the cheapening of commodities called forth a wider market, and the
wider market led to a still larger production.
The rulers of the industrial world, the capitalists, became the rulers
also of the political; the French Revolution was merely a
proclamation of a mighty fact which had already established itself in
the most advanced portions of Europe. But the marvellous
enthusiasm of the Revolution was kindled by the fact that its
champions at the time represented the cause of humanity. Before
long, however, it became manifest that the new rulers fought for the
interests of a class, the bourgeoisie; and another class, that of the
proletariat, or unpropertied workers, began to define itself in
opposition to them. Like their predecessors, the bourgeoisie wielded
the legal and political power for their own selfish ends. They made
wealth the test and basis of political and social right; they
established a restricted franchise; shackled the free expression of
opinion by cautions and taxes on newspapers, and threw the burden
of taxation on the working classes.
We have seen that the development of the middle class was a slow
and gradual process, the complex result of a complex mass of
forces. Considering that the special theme of the Working Men’s
Programme is the historical function of the working class, it is
certainly a most serious defect of Lassalle’s exposition that he says
so little of the causes which have conditioned the development of
the working class as the representatives of a new era. Their
appearance on the pages of Lassalle as the supporters of a great
rôle is far too sudden.
On the 24th of February 1848, he says, broke the first dawn of a
new historical period. On that day in France a revolution broke out,
which called a workman into the Provisional Government; which
declared the aim of the State to be the improvement of the lot of the
working class; and which proclaimed direct and universal suffrage,
whereby every citizen who had attained the age of twenty-one
should, without regard to property, have an equal share in all
political activity. The working class were therefore destined to be the
rulers and makers of a new society. But the rule of the working class
had this enormous difference from other forms of class rule, that it
admits of no special privilege.
We are all workers, in so far as we have the will in any way to make
ourselves useful to the human society. The working class is therefore
identical with the whole human race. Its cause is in truth the cause
of entire humanity, its freedom is the freedom of humanity itself, its
rule is the rule of all.
The formal means of realising this is direct universal suffrage, which
is no magic wand, but which at least can rectify its own mistakes. It
is the lance which heals the wounds itself has made. Under universal
suffrage the legislature is the true mirror of the people that has
chosen it, reflecting its defects, but its progress also, for which it
affords unlimited expression and development.
The people must therefore always regard direct universal suffrage as
its indispensable political weapon, as the most fundamental and
weightiest of its demands. And we need not fear that they will abuse
their power; for while the position and interests of the old privileged
classes became inconsistent with the general progress of humanity,
the mass of the people must know that their interests can be
advanced only by promoting the good of their whole class. Even a
very moderate sense of their own welfare must teach them that
each individual can separately do very little to improve his condition.
They can prevail only by union. Thus their personal interest, instead
of being opposed to the movement of history, coincides with the
development of the whole people and is in harmony with freedom,
culture, and the highest ideas of our time.
This masterly treatise of Lassalle concludes with an appeal to the
working class, in which we see the great agitator reach the high
level of a pure and noble eloquence. Having shown at length that
the working class are called to be the creators and representatives of
a new historical era, he proceeds: ‘From what we have said there
follows for all who belong to the working class the duty of an
entirely new bearing.
‘Nothing is more suited to stamp on a class a worthy and deeply
moral impress than the consciousness that it is called to be the
ruling class, that it is appointed to raise its principle to be the
principle of an entire epoch, to make its idea the ruling idea of the
whole society, and so again to mould society after its own pattern.
The high world-historic honour of this vocation must occupy all your
thoughts. The vices of the oppressed, the idle amusements of the
thoughtless, and the harmless frivolity of the unimportant beseem
you no longer. Ye are the rock on which the church of the future
should be built.’
Pity that in the miserable squabble which terminated his life he did
not realise that the leader of the working class should also be
inspired by a sense of the nobility of his calling.
This exposition of the vocation of the working class is closely
connected with another notable feature of Lassalle’s teaching, his
Theory of the State. Lassalle’s theory of the State differs entirely
from that generally held by the Liberal school. The Liberal school
hold that the function of the State consists simply in protecting the
personal freedom and the property of the individual. This he scouts
as a night-watchman’s idea, because it conceives the State under
the image of a night-watchman, whose sole function it is to prevent
robbery and burglary.
In opposition to this narrow idea of the State, Lassalle quotes
approvingly the view of August Boeckh: ‘That we must widen our
notion of the State so as to believe that the State is the institution in
which the whole virtue of humanity should be realised.’
History, Lassalle tells us, is an incessant struggle with Nature, with
the misery, ignorance, poverty, weakness, and unfreedom in which
the human race was originally placed.[2] The progressive victory over
this weakness, that is the development of the freedom which history
depicts.
In this struggle, if the individual had been left to himself, he could
have made no progress. The State it is which has the function to
accomplish this development of freedom, this development of the
human race in the way of freedom. The duty of the State is to
enable the individual to reach a sum of culture, power, and freedom,
which for individuals would be absolutely unattainable. The aim of
the State is to bring human nature to positive unfolding and
progressive development—in other words, to realise the chief end of
man: it is the education and development of the human race in the
way of freedom.
The State should be the complement of the individual. It must be
ready to offer a helping hand, wherever and whenever individuals
are unable to realise the happiness, freedom, and culture which befit
a human being.
Save the State, that primitive vestal fire of culture, from the modern
barbarians, he exclaims on another occasion.
To these political conceptions Lassalle is true throughout. It certainly
is a nobler and more rational ideal of the State than the once
prevalent Manchester theory. When we descend from theory to
practice all obviously depends on what kind of State we have got,
and on the circumstances and conditions under which it is called
upon to act.
That the State should, through its various organs, support and
develop individual effort, calling it forth, rendering it hopeful and
effectual, never weakening the springs of it, but stimulating and
completing it, is a position which most thinkers would now accept.
And most will admit with regret that the existing State is too much a
great taxing and fighting machine. The field of inquiry here opened
up is a wide and tempting one, on which we cannot now enter. We
are at present concerned with the fact that the State help
contemplated by Lassalle was meant not only to leave the individual
free, but to further him in the free realisation of himself.
The Iron Law of Wages may well be described as the key to
Lassalle’s social-economic position. It holds the same prominent
place in his system of thinking as the theory of surplus value does in
that of Marx. Both, it may be added, are only different aspects of the
same fact. Lassalle insists chiefly on the small share of the produce
of labour which goes to the labourer; Marx traces the history of the
share, called surplus value, which goes to the capitalist.
Lassalle’s most careful statement of the Iron Law, to which he
frequently recurs in subsequent writings, is contained in his Open
Letter (p. 13). ‘The Iron Economic Law, which, in existing
circumstances, under the law of supply and demand for labour,
determines the wage, is this: that the average wage always remains
reduced to the necessary provision which, according to the
customary standard of living, is required for subsistence and for
propagation. This is the point about which the real wage continually
oscillates, without ever being able long to rise above it or to fall
below it. It cannot permanently rise above this average level,
because in consequence of the easier and better condition of the
workers there would be an increase of marriages and births among
them, an increase of the working population and thereby of the
supply of labour, which would bring the wage down to its previous
level or even below it. On the other hand, the wage cannot
permanently fall below this necessary subsistence, because then
occur emigration, abstinence from marriage, and, lastly, a diminution
of the number of workmen caused by their misery, which lessens the
supply of labour, and therefore once more raises the wage to its
previous rate.’
On a nearer consideration, Lassalle goes on to say, the effect of the
Iron Law is as follows:—
‘From the produce of labour so much is taken and distributed among
the workmen as is required for their subsistence.
‘The entire surplus of production falls to the capitalist. It is therefore
a result of the Iron Law that the workman is necessarily excluded
from the benefits of an increasing production, from the increased
productivity of his own labour.’[3]
Such is Lassalle’s theory of the Iron Law of Wages. He accepts it as
taught by Ricardo and the economists of the orthodox school in
England, France, and Germany. We believe that his statement of it is
substantially just and accurate; that it fairly reflects the economic
science of his time, and, under the then prevailing economic
conditions, may be described as a valid law.
Lassalle held that the customary standard of living and the operation
of the law generally were subject to variation. Still it may reasonably
be maintained that he has not sufficiently considered the fact that,
like capital, the Iron Law of Wages is an historical category. He has
not overlooked the fact, and could hardly do so, as the Iron Law is
an implicate and result of the domination of capital. But his method
of exposition is too much the controversial one, of pressing it as an
argumentum ad hominem against his opponents in Germany, and, as
usual, in controversy truth is liable to suffer. It may therefore be
argued that under the competitive system as now existing, changes
have occurred which render Lassalle’s theory of the Iron Law
inaccurate and untenable. Even while the present system continues
to prevail, the law may undergo very extensive modification through
the progress of education and organisation among the workmen,
and through the general advance of society in morality and
enlightenment. The question of modification of the Iron Law is one
of degree, and it may fairly be contended by critics of Lassalle that
he has not recognised it to a sufficient degree.
On the other hand, it may also be rationally maintained that in so far
as education and organisation prevail among the workmen, in so far
does capitalism, with all its conditions and implicates, tend to be
superseded. Trade Unions, Co-operative Societies, Factory
Legislation, are all forms of the social control of economic processes,
inconsistent with competitive economics. The more they gain
ground, the more does capitalism tend to break up and disappear.
From this higher point of view, we may fairly contend that
considerations which have been urged as destructive of Lassalle’s
argument are really symptoms of the decline of capitalism. The Iron
Law is an inevitable result of the historical conditions contemplated
by Lassalle. These conditions have changed, but the change means
that capitalism is passing away. We are thus thrown back on the
wider question, whether capitalism is disappearing, a question which
it would at present be premature to discuss.
In any case the position of Lassalle is perfectly clear. He accepted
the orthodox political economy in order to show that the inevitable
operation of its laws left no hope for the working class; and that no
remedy could be found except by abolishing the conditions in which
those laws have their validity—in other words, by abolishing the
present relations of labour and capital altogether. The great aim of
his agitation was to bring forward a scheme which would strike at
the root of the evil. The remedy for the evil condition of things
connected with the Iron Law of Wages is to secure the workmen the
full produce of their labour, by combining the functions of workmen
and capitalists through the establishment of productive associations.
The distinction between labourer and capitalist is thereby abolished.
The workman becomes producer, and for remuneration receives the
entire produce of his labour.
The associations founded by Schulze-Delitzsch, Lassalle went on to
argue, would effect no substantial improvement in the condition of
the working class. The unions for the supply of credit and raw
materials do not benefit the working class as such, but only the
small hand-workers. But hand-labour is an antiquated form of
industry, which is destined to succumb before the large industry
equipped with machinery and an adequate capital. To provide the
hand-workers with the means of continuing their obsolete trades is
only to prolong the agony of an assured defeat.
The consumers’ unions, or co-operative stores as we call them in
England, also fail, because they do not help the workman at the
point where he needs it most, as producers. Before the seller, as
before the policeman, all men are equal; the only thing the seller
cares for is that his customers are able to pay. In discussing the Iron
Law, we saw that the workman must be helped as producer—that is,
in securing a better share of his product. The consumers’ unions
may indeed give a restricted and temporary relief. So long as the
unions include only a limited number of workmen, they afford relief
by cheapening the means of subsistence, inasmuch as they do not
lower the general rate of wages. But in proportion as the unions
embrace the entire working class and thereby cause a general
cheapening of the means of subsistence, the Iron Law of Wages will
take effect. For the average wage is only the expression in money of
the customary means of subsistence. The average wage will fall in
proportion to the general cheapening of the means of subsistence,
and all the pains taken by the workmen in founding and conducting
the consumers’ unions will be labour lost. They will only enable the
workman to subsist on a smaller wage.
The only effectual way to improve the condition of the working class
is through the free individual association of the workers, by its
application and extension to the great industry. The working class
must be its own capitalist.
But when the workmen on the one hand contemplate the enormous
sums required for railways and factories, and on the other hand
consider the emptiness of their own pockets, they may naturally ask
where they are to obtain the capital needed for the great industry?
The State alone can furnish it; and the State ought to furnish it,
because it is, and always has been, the duty of the State to promote
and facilitate the great progressive movements of civilisation.
Productive association with State credit was the plan of Lassalle.[4]
The State had already in numerous instances guaranteed its credit
for industrial undertakings by which the rich classes had benefited—
canals, postal services, banks, agricultural improvements, and
especially with regard to railways. No outcry of socialism or
communism had been raised against this form of State help? Then
why raise it when the greatest problem of modern civilisation was
involved—the improvement of the lot of the working classes?
Lassalle’s estimate was, that the loan of a hundred million thalers
(£15,000,000) would be more than sufficient to bring the principle of
association into full movement throughout the kingdom of Prussia.
Obviously the money required for the promotion of productive
associations did not require to be actually paid by the Government;
only the State guarantee for the loan was necessary. The State
would see that proper rules for the associations should be made and
observed by them. It would reserve to itself the rights of a creditor
or sleeping partner. It would generally take care that the funds be
put to their legitimate use. But its control would not pass beyond
those reasonable limits: the associations would be free; they would
be the voluntary act of the working men themselves. Above all, the
State, thus supporting and controlling the associations, would be a
democratic State, elected by universal suffrage, the organ of the
workers, who form an overwhelming majority of every community.
But if we are to conceive the matter in the crudest way and consider
the money as actually paid, wherein would the enormity of such a
transaction consist? The State had spent hundreds of millions in war,
to appease the wounded vanity of royal mistresses, to satisfy the
lust of conquest of princes, to open up markets for the middle
classes; yet when the deliverance of humanity is concerned the
money cannot be procured!
Further, as he takes care to explain, Lassalle did not propose his
scheme of productive associations as the solution of the social
question. The solution of the social question would demand
generations. He proposed his scheme as the means of transition, as
the easiest and mildest means of transition.[5] It was the germ, the
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