In our small circle we discussed the project of forming a new party. The leading ideas which we then proposed were the same as those which were carried into effect afterwards, when the German Labour Party was founded. The name of the new movement which was to be founded should be such that of itself, it would appeal to the mass of the people; for all our efforts would turn out vain and useless if this condition were lacking. And that was the reason why we chose the name 'Social-Revolutionary Party', particularly because the social principles of our new organization were indeed revolutionary.

But there was also a more fundamental reason. The attention which I had given to economic problems during my earlier years was more or less confined to considerations arising directly out of the social problem. Subsequently this outlook broadened as I came to study the German policy of the Triple Alliance. This policy was very largely the result of an erroneous valuation of the economic situation, together with a confused notion as to the basis on which the future subsistence of the German people could be guaranteed. All these ideas were based on the principle that capital is exclusively the product of labour and that, just like labour, it was subject to all the factors which can hinder or promote human activity. Hence, from the national standpoint, the significance of capital depended on the greatness and freedom and power of the State, that is to say, of the nation, and that it is this dependence alone which leads capital to promote the interests of the State and the nation, from the instinct of self-preservation and for the sake of its own development.

On such principles the attitude of the State towards capital would be comparatively simple and clear. Its only object would be to make sure that capital remained subservient to the State and did not allocate to itself the right to dominate national interests. Thus it could confine its activities within the two following limits: on the one side, to assure a vital and independent system of national economy and, on the other, to safeguard the social rights of the workers.

Previously I did not recognize with adequate clearness the difference between capital which is purely the product of creative labour and the existence and nature of capital which is exclusively the result of financial speculation. Here I needed an impulse to set my mind thinking in this direction; but that impulse had hitherto been lacking.

The requisite impulse now came from one of the men who delivered lectures in the course I have already mentioned. This was Gottfried Feder.

For the first time in my life I heard a discussion which dealt with the principles of stock-exchange capital and capital which was used for loan activities. After hearing the first lecture delivered by Feder, the idea immediately came into my head that I had now found a way to one of the most essential pre-requisites for the founding of a new party.

To my mind, Feder's merit consisted in the ruthless and trenchant way in which he described the double character of the capital engaged in stock-exchange and loan transaction, laying bare the fact that this capital is ever and always dependent on the payment of interest. In fundamental questions his statements were so full of common sense that those who criticized him did not deny that AU FOND his ideas were sound but they doubted whether it be possible to put these ideas into practice. To me this seemed the strongest point in Feder's teaching, though others considered it a weak point.

It is not the business of him who lays down a theoretical programme to explain the various ways in which something can be put into practice. His task is to deal with the problem as such; and, therefore, he has to look to the end rather than the means. The important question is whether an idea is fundamentally right or not. The question of whether or not it may be difficult to carry it out in practice is quite another matter. When a man whose task it is to lay down the principles of a programme or policy begins to busy himself with the question as to whether it is expedient and practical, instead of confining himself to the statement of the absolute truth, his work will cease to be a guiding star to those who are looking about for