The Rudolf Steiner Archive

Along with the tasks which one can set oneself in a certain realm as a speaker it will be a question at first of entering in the appropriate way into the material itself which is to be dealt with. There is a twofold entering into the material, in so far as the message about this material is concerned in speaking. The first is to convert to one's own use the material for a lecture so that it can be divided up—so that one is as it were placed in the position of giving the lecture a composition. Without composition a talk cannot really be understood. This or that may appeal to the listener about a lecture which is not composed: but in reality a non-composed lecture will not be assimilated. As far as the preparation is concerned, it must therefore be a matter of realizing: every talk will inevitably be poor as regards its reception by the listeners which has merely originated in one's conceiving one statement after the other, one sentence after the other, and going through them to a certain extent, one after the other, in the preparation. If one is not in the position, at least at some stage of the preparation, of surveying the whole lecture as a totality, then one cannot really count on being understood. Allowing the whole lecture to spring, as it were, from a comprehensive thought, which one subdivides, and letting the composition arise by starting out from such a comprehensive thought comprising the total lecture,—this is the first consideration.

The other is the consulting of all experiences which one has available out of immediate life for the subject of the lecture,—that is, calling to mind as much as possible everything one has experienced first-hand about the matter in question,—and, after one has before one a kind of composition of the lecture, endeavoring to let the experiences flow here or there into this composition.

That will in general be the rough draft in preparing. Thus one has during the preparation the whole of the lecture before one as in a tableau. So exactly does one have this tableau before one, that, as will indeed naturally be the case, one can incorporate the single experiences one remembers in the desired way here or there, as though one had written on paper: a, b, c, d.—There is now an experience one knows belongs under d, another under f, another belongs under a,—so that one is to a certain extent independent of the sequence of the thoughts as they are afterwards to be presented, as regards this collecting of the experiences. Whether such a thing is done by putting it onto paper, or whether it is done by a free process without having recourse to the paper, will determine only that he who is dependent upon the paper will speak worse, and he who is not dependent upon the paper will speak somewhat better. But one can of course by all means do both.

But now it is a matter of fulfilling a third requirement, which is: after one has the whole on the one hand—I never say the ‘skeleton’—and on the other hand the single experiences, one has need of elaborating the ideas which ensue to the point that these things can stand before the soul in the most complete inner satisfaction.

Let us take as an example, that we want to hold a lecture on the threefold order. Here we shall say to ourselves: After an introduction—we shall speak further about this—and before a conclusion—about which we shall also speak—the composition of such a lecture is really given through the subject itself. The unifying thought is given through the subject itself. I say that for this example. If one lives properly, mentally, then this is valid actually for every single case, it is valid equally for everything. But let us take this example near at hand of the threefolding of the social organism, about which we want to speak. There, at the outset, is given that which yields us three members in the treatment of our theme. To deal with, we shall have the nature of the spiritual life, the nature of the juridical-state life, and the nature of the economic life.

Then, certainly, it will be a question of our calling forth in the listeners, by means of a suitable introduction,—about which, as mentioned, we shall speak further—a feeling that it makes sense to speak about these things at all, about a change in these things, in the present. But then it will be a matter of not immediately starting out with explanations of what is to be understood by a free spiritual life, by a juridical-states life founded on equality, by an economic life founded on associations, but rather of having to lead up to these things. And here one will have to lead up through connecting to that which is to hand in the greatest measure as regards the three members of the social organism in the present—what can therefore be observed the most intensively by people of today. Indeed, only by this means will one connect with what is known.

Let us suppose we have an audience, and an audience will be most agreeable and sympathetic which is a mixture of middle-class people, working-class people—in turn with all possible nuances—and, if there are then of course also a few of the nobility—even Swiss nobility,—it doesn't hurt at all. Let us therefore assume we have such a chequered, jumbled-up audience, made up of all social classes. I stress this for the reason that as a lecturer one should really always sense to whom one has to speak, before one sets about speaking. One ought already to transpose oneself actively into the situation in this way.

Now, what will one have to say to oneself to begin with about that which one can connect with in a present-day audience, as regards the threefold social organism? One will say to oneself: it is extraordinarily difficult in the first place to connect onto concepts of an audience of the bourgeois, because in recent times the bourgeoisie have formed extraordinarily few concepts about social relationships, since they have vegetated thoughtlessly to some extent as regards the social life. It would always make an academic impression, if one wanted to speak about these things today out of the circle of ideas of a middle-class audience. On the other hand, however, one can be clear about the fact that exceptionally distinct concepts exist concerning all three domains of the social organism within the working-class population,—also distinct feelings, and a distinct social volition. And it means that it is nothing short of the sign of our present time, that precisely within the proletariat these qualified concepts are there.

These concepts are to be handled by us, though, with great caution, since we shall very easily call forth the prejudice that we want to be partisan in the proletarian direction. This prejudice we should really combat through the whole manner of our bearing. We shall indeed see that we immediately arouse for ourselves serious misunderstandings if we proceed from proletarian concepts. These misunderstandings have revealed themselves in point of fact constantly in the time when an effect could still be brought about in middle-Europe, from about April 1919 on, for the threefolding of the social organism. A middle-class population hears only that which it, has sensed for decades from the fomenting behavior of the working- class, out of certain concepts. How one views the matter oneself is then hardly comprehended at all.

One must be clear that being active in the world at all in the sense, I should like to say, of the world-order has to be grasped. The world-order is such—you have only to look at the fish in the sea—that very, very many fisheggs are laid, and only a few become fish. That has to be so. But with this tendency of nature you have also to approach the tasks which are to be solved by you as speakers; even if only very few, and these little stimulated, are to be found to begin with at the first lecture, then actually a maximum is attained as regards what can be attained. It is a matter of things that one stands so within in life, as for instance the threefolding of the social organism, that what can be accomplished by means of lecturing may never be abandoned, but must be taken up and perfected in some way, be it through further lectures, be it in some other way. It can be said: no lecture is really in vain which is given in this sense and to which is joined all that is required.

But one has to be absolutely clear about the fact that one will actually also be completely misunderstood by the proletarian population, if one speaks directly out of that which they think today in the sense of their theories, as these have persisted for decades. One cannot ask oneself the question for instance: How does one do it so as not to be misunderstood?—One must only do it right! But for this reason it cannot be a matter of putting forward the question: Then how does one do it so as not to be misunderstood?—One tells people what they have already thought anyhow! One preaches to them, in some way, Marxism, or some such thing. Then one will, of course, be understood.

But there is nothing of interest in being understood in this way. Otherwise one will indeed very soon have the following experience—concerning this experience one must be quite clear—: if one speaks today to a proletarian gathering so that they can at least understand the terminology—and that must be striven for—then one will notice particularly in the discussion, that those who discuss have understood nothing. The others one usually doesn't get to know, since they do not participate in the discussions. Those who have understood nothing usually participate after such lectures in the discussions. And with them one will notice something along the following lines.—I have given countless lectures myself on the threefolding of the social organism to, as they are called in Germany, “surplus-value social democrats,” independent “social democrats,” communists and so on.—Now, one will notice: if someone places himself in the discussions and believes himself able to speak then it is usually the case that he answers one as though one had really not spoken at all, but as though someone or other had spoken more or less as one would have spoken as a social-democratic agitator thirty years ago in popular meetings. One feels oneself suddenly quite transformed. One says to oneself roughly the following: Well, can it then be that the misfortune has befallen you, that you were possessed in this moment by old Bebel?¹ That is really how you are confronted! The persons concerned hear even physically nothing else than what they have been used to hearing for decades. Even physically—not merely with the soul—even physically they hear nothing other than what they are long used to. And then they say: Well, the lecturer really told us nothing new!—Since they have, because one was obliged to use the terminology, translated the whole connection of the terminology right-away in the ear—not first in the soul—into that which they have been used to for a long time. And then they talk on and on in the sense of what they have been used to for a long time.

This is the approximate course of countless discussions. At most, a new nuance entered into the matter when, from their newly attained standpoint, the Communists made an appearance and declared something like this: Above all else it is necessary to gain political power! Certainly, it is quite natural—I speak from experience and cite examples that actually occurred—that one first has to have political power. For instance, one person believed that if he had the political power in the capacity of head of the police, he would certainly not install himself as a registrar, since by profession he was a shoe-repairman, and he could well understand that a shoe repairman could not know anything of the responsibilities of a registrar. Therefore, if he were head of the police (over the whole country), he would not make himself a registrar since he was a shoe-repairman.—He did not realize that by saying this he really implied that while he felt quite well suited to be installed as Minister of the police, he did not consider himself qualified to be a registrar!—This was a kind of new nuance for the discussion. The nuances were always approximately in this form.

Well, nevertheless, we must understand that in order to be comprehensible one must speak out of the inmost thoughts of the people. For, if one does that, their unconscious mind can follow somehow. This is particularly the case when the lecture is structured in the manner I have already indicated and shall elaborate on still further. But concerning the points that are really important, we must avail ourselves of concepts based on experience which, in this case, are concepts that can be formulated out of the experiences of the feelings of the working class.

Consider the spiritual part of the threefold social organism. Since the dawn of Marxism, the workman has developed quite definite concepts in regard to this spiritual aspect, namely the concept of ideology. He says: The spiritual life has no reality of its own. Religion, concepts of justice, concepts of morality, and so forth, art, science itself—that is nothing by itself. Only economic processes exist on their own. In world-historical development, one can follow how actual reality consists of how one level of the population relates to the other in economic life. From this factor of how one class relates to another in the life of the economy, the concepts, the feelings in religion, science, art, morals, rights, and so on, must evolve quite by themselves like a form of smoke that arises from something. So, rights, morality, religion, art are not realities by ideologies.—In all social-democratic and other Proletarian meetings, this expression, “ideology,” along with the underlying sentiment that I have just characterized, could be heard for decades. It was nothing short of an especially developed means of indoctrination to make people understand: The middle class speaks of truth per se. It speaks of the values of morality and art—but all this has no standing in reality by itself; these are chimeras that arise from the economic process. One of the leaders of the working class, Franz Mehring,² carried this matter to special extremes in a book, The Lessing Legend.

A not very significant book by a typical middle-class professor, Erich Schmidt,³ was published concerning Lessing. The reason that it isn't very significant is that it is not really Lessing who is being dealt with there, but a papier-mache figure, wrongly designated as “Lessing,” to which Erich Schmidt links the remarks, narrations and observations that he was capable of due to his special talent or lack of talent. The reader is not dealing with a person at all in this book but with a made-up statue calling [sic] “Lessing.” Before the book Lessing by Erich Schmidt had even been written, when I heard Erich Schmidt give a lecture in Vienna in the Academy of Sciences, where he presented the first beginnings of the first chapter of this Lessing-book in condensed form in a speech, I already knew that this middle-class professor did not have particularly clear conceptions about the living man Lessing but only a papier-mache Lessing. At that time, I was strangely impressed by this speech, which demonstrated so clearly that if a person is otherwise enjoying a certain social standing and is allowed to speak, even in such a venerable academy of sciences, he need not say anything of real substance. For, at the most important points, where Erich Schmidt brought out something that was supposed to be characteristic for the personality whom he was discussing, he always said—singling out something of Lessing's manner of working or style of writing—“That's typically Lessing!” And this expression, “That's typically Lessing!”—one heard, I believe, fifty times during this lecture at the academy.

Well, if one is dealing with John Smith from New Middletown, and one has to characterize him, relating the special way that he keeps up his compost heap, one will be able to say along the same lines, “That's typically Smith!”—One will have made an equally weighty statement.

What I am saying is that we are dealing with something extraordinarily insignificant. But a proper social-democratic writer, as was Franz Mehring, ascribed the insignificance of Erich Schmidt's book on Lessing to the fact that Erich Schmidt was a middle-class professor, and so he said, “Well, that's a product of the Bourgeois.”—And now he pitted his Proletarian product against it, and he called his book, The Lessing Legend. This book examines the economic conditions under which Lessing's forefathers had lived and what they did, how Lessing himself was placed in his youth within the life of the economy, how he had to become a journalist, how he had to borrow money—this is, after all an economical aspect—and so on. In short, it is shown how Lessing's conception of Laocoon, how his Dramaturgy of Hamburg, how his Minna von Barnhelm had to be the way they were because Lessing had grown out of certain economic conditions.

After the pattern of this book, The Lessing Legend, by the party-scholar Mehring, one of the students of my Worker's Education School—for many years, I did indeed teach in such an institution, even giving instruction in lecturing—proved in a trial-speech that the Kantian philosophy originated simply from the economic conditions out of which Kant had developed. One always encountered matter similar to this (in these circles) and probably could find them still today, although by now they have more or less become empty phrases. But it was indeed so, and it meant that the modern member of the working-class held the view that everything pertaining to the spiritual life is ideology.

In regard to the political life of rights, the Proletarian only gives credence to what is once again established within economic conditions as relationships between people. For him, these are the social classes. The class holding power rules over the other classes. And a person belonging to a certain class develops class consciousness. Therefore, what the modern workman comprehends of the political life of rights is the class and what is close to his heart is class consciousness.

The third member of the social organism is the economic part. There too, clearly defined concepts exist within the working-class, and the central concept that is referred to again and again, in the same manner as the concepts, ideology and class consciousness, is the concept of surplus value. The workman understands: When something is being produced, a certain value is attached to the economic product; of this value, he receives a portion as compensation, the remainder is taken away for something else, He designates the latter as “surplus value,” and occupies himself with this increment value, of which he has the feeling that he is deprived of it insofar as the value of the fruits of his labours are concerned.

Thinking these matters through in this manner, one can see how within that segment of the populace that has developed in recent times as the active and truly aggressive one, clearly defined concepts do in fact exist for the three spheres of the threefold social organism. The social life reveals itself in a threefold way—this is approximately how a proper Proletarian theorist would put it—it reveals itself in the first place through its reality, through the value-producing economy. This value-producing economy does itself produce the surplus value out of the economic life. Through the balance of power that develops, the socially active people are split into classes in the economic life, which represents the only reality; therefore, if they contemplate their human worth, they arrive at class consciousness, not human consciousness. And then there develops what one likes to have on Sundays, and what one needs—but also sort of inbetween—to properly invent machines, so that every so often, in one's free time, inventions can be made and so on; thus, ideology develops, which, however, results as a nebulous product out of the actual reality, out of the economic life.

I am really not drawing caricatures, I am only describing what dwelled in millions, not thousands, but millions of heads in the decades preceding the war, continuing also through the war. The working-class therefore does have a concept of threefoldness of the social organism, and one can relate to that.

One can relate to it in a still further sense. Once can refer to the fact that in recent times the economic life has basically developed in a separate direction, since it contains its own inherent laws of necessity, and that the other elements of life, the spiritual life and the political life of rights, have lagged behind. People could not remain behind in the economic life. In the last third of the nineteenth century, they first had to change over to universal communications, then to the world economy. An inner necessity underlies that. In a certain sense, it develops b itself unless people ruin matters as was the case because of the war. But because other matters did not keep up with the pace and because abstract intellectualism developed in them, awareness of the economic life became influential to an extraordinary degree and mainly affected people everywhere suggestively by its very nature. And this suggestive influence did not only take root in human conceptions but it turned into establishments. Intellectualism gradually has taken complete hold of the social life.

Abstraction, the abstract element is the property of intellectualism. In life, one finds, let's say, butter; or a Madonna by Raffael, or one has a toothbrush or a philosophical work; in life, there are powder boxes for women, and so on. Life is made up of a lot of things, as you know. I could continue with this list endlessly. But you will not deny that these items differ vary greatly from each other and that if one wants to gain concepts of all these things, these concepts will be very different from each other. But in the social life of recent times something developed nevertheless that became extremely significant for all relationships in life and that is not so very differentiated after all. For, we can say that a certain amount of butter costs two francs; a Madonna by Raffael costs two-million francs; a toothbrush costs only about two-and-a-half francs now; a philosophical work—which might be the least expensive—costs, shall we say, if it is a think single volume, seventy rappen; a powder box, if it is of especially high quality, costs ten francs.

Now we've found a common denominator for the whole thing! Now we only need to consider the differences of the numbers, something that is part of one area. But we have spread an abstraction, the monetary value, over everything.

This has ingrained itself especially deeply into people's manner of thinking, although people do not always admit to it. Certainly, a person who is a poet considers himself as the world's most important point, he will therefore not evaluate himself in the above way; neither will a person who is a philosopher, and so on. Least of all one who is a painter! But the world evaluates all these matters today in this style in the social evaluation of human beings. And the end-result is that, let us say, a poet has a net value of ten-thousand francs for a publisher, if the publisher is generous from the time he beings to write his novel until it is finished. So this is the value of a poet for a certain period of time, isn't that right? We have placed him also in the equalizing abstractions.

Well, I could cite all sorts of examples here; but I already said that the middle-class didn't waste much time thinking about these matters. A poet in his attic room⁴—I am now referring to the “Oberstuebchen” that is situated on a floor high above the others—naturally considers himself something quite special, but in social life he was worth ten-thousand francs. But he paid no attention to that unless he happened to belong to the working-class. He paid no heed to it. But the laborer did; from all this, he drew the conclusion: I don't have butter, I don't have powder, I don't have a philosophy book. But I have my capacity for work; I offer it to the owner of the factory, and to him, it is worth, let's say, three francs for each day; the daily capacity for work.

You must forgive me for writing “poet” here for the reason that one could experience that a poet was treated a good bit worse in the course of the last few decades than the workman with his daily capacity for work. For the latter could defend himself still better than the poet, and as a rule, the ten-thousand francs were not worth more than the wage of three francs for the Proletarian working capacity, with the exception of a few. It goes without saying that poets such as, for example, the blessed E. Marlitt—I don't know if many of you remember her—earned splendid wages with her The Secret of the Old Spinster, a novel concerning which the best criticism would be the one expressed once by a certain person: Oh book, if only you had remained the secret of the old spinster!

Now the workman considered what he had become by having been placed into the abstraction of prices in regard to his capacity for work. For what does anything in the economic life represent by virtue of having a price-tag? It is a commodity. Anything for which a price can be paid must be considered a commodity. I've said that the life of the middle-class runs its course along with a certain indifference in regard to such matters. But these concepts arose from the working-class and in this manner, the idea emerged: We ourselves have become a commodity with our capacity for work.

This is something that now worked together with the other three concepts. A person who understands modern life correctly, knows that when he comprehends the four concepts, ideology, class consciousness, surplus value, capacity for work as a commodity in the right way so that he can place himself into life with these four concepts in regard to experiences, that he then encounters with these four concepts the reality of consciousness that exists in particular among the segment of the population which actively and consciously wants to bring about a transformation of social conditions. One therefore has the task of contemplating how to deal with these four concepts.

If a lecturer has a mixed audience of working-class people and those of the middle-class, he will have to speak first of all in such a manner so as to call attention to the fact that the working-class could not help but arrive at these matters and how, due to modern life, a workman could not become acquainted with anything except the processes of the economic life. For this is how matters developed since approximately the middle of the fifteenth century. This was when it slowly began. For if we go back further than the middle of the fifteenth century, we find that man with his being was still connected with what he produced. One who makes a key pours his soul into his key. A shoemaker makes shoes with all his heart. And I am quite certain that among those, where these things continued on in a healthy way, no disdain existed in regard to any such labor. I am fully convinced—not only subjectively, for, if necessary, such matters could be proven—that Jakob Boehme⁵ enjoyed producing his boots just as much as his philosophical works, his mystical texts that he wrote, likewise in the case of Hans Sachs,⁶ for example. These matters—that something that is material is looked down upon, and that spiritual matters are over-valued—have only developed along with intellectualism and its abstractions in all areas. What happened is that through the modern economic life, which has been permeated by technology, the human being has been separated from his product so that no real love can any longer connect him with what he produces. Those people who can still develop a sense of love for what they produce in certain professional fields, are becoming increasingly rare. Only in the so-called professions of the mind, this love still exists. This is what causes the unnatural element in social differences and even classifications in recent times. One has to go east—perhaps this is no longer possible now, but it was the case decades ago—in order to still find joy in one's profession. I must admit I was really delighted, actually moved, when, decades ago, I encountered a barber in Budapest to whom I had gone for a haircut, who danced around me all the time and each time when he had cut off something with his scissors, would say, taking his hand-mirror: Oh what a wonderful cut I've just made! What a great cut this was!—Please go and try to find a barber capable of such enthusiasm today in our civilized country!

What has taken place is the separation of man from his product. It has become something of indifference to him. He is placed in front of a machine. What does he care about the machine! At most, it interests—not even the one who built it, but the one who invented it' and the interest that the inventor has in the machine is usually not a truly social interest. For social interest only begins when one can discover the possible value, the monetary yield, in other words, when the whole thing has been reduced to the level of its price.

It is, however, the economic life that the modern workman has become familiar with above all else. He has been placed into it. If he is to approach the spiritual life, the latter is nowhere connected with his immediate inner life. It does not move his soul. He accepts it as something alien, as ideology. It is part of the modern historical process that this ideology has developed.

If, however, you are successful in calling forth a feeling in the workman that this is the case, then you have achieved the beginning of what has to be attained. For a member of the working-class listens to you today with the following attitude: it is an absolute necessity of nature that all art, all science, all religion are ideologies. He is very far from believing that with this view he has simply become the product of modern-day developments. It is very difficult to make that clear to him. If he does notice it that everything is merely supposed to be ideology, he feels terrible about it and turns his whole way of thinking around; then he becomes aware of the completely illusory nature of this view. He among all people is, as it were, predisposed better than any other to feel disgust over the fact that everything has turned into ideology; but you must make him realize this in his feelings. The thoughts that you set forth or have developed in your own mind do not interest the listener. But in the way that I have described it, you lead him to the point of sensing the matter. For what is important is that you put the subject into the right light for workmen by giving your sentences this nuance.

For members of the middle-class, the matter must be put in a different light again, for what is quite proper for people of the working-class is detrimental for those of the middle-class in this area. It is not only a matter of lecturing correctly, but due to the diversity of life today it is a matter of speaking well in the sense of what I said yesterday, and that as far as possible a lecturer addresses the members of the middle-class as well. What has to be made clear to them is that, because they were indifferent to what was developing, they helped cause the problem. Because of what the middle-class did, or rather didn't do, matters developed to the point where they have become ideology for the working-class. Members of the middle-class must be made to comprehend. Once upon a time, religion was something that filled the whole human being with an inner fire; it was something that gave rise to everything that a person carried out in the external world. Customs derived from what people considered holy in regard to social life. Art was something by means of which a human being rose above the hardships and difficulties of life on earth, and so on. But, oh, how the value of these spiritual properties has declined in the past few centuries! Because of the manner in which the middle-class upholds them, the workman cannot experience them in any other way but as ideology.

Take the case that a workman comes into the office of the employer for whatever reason. He has his own views concerning the whole management of the business. Let's assume that the bookkeeper, to whom he was called, or the boss himself, ahs just left the office. He sees a large volume in which many entries are made. The workman has his own views concerning what the figures in it express. He has recently developed these views. Now, because the bookkeeper or the boss happens not to be there and he is half-a-minute early, he opens the cover and looks at the first page. There, it says on top of the page, “In God's Name!” (“Mit Gott”). That catches his attention, for, indeed, this religious element appearing on the first page in the words, “In God's Name,” is really pure ideology, because the workman is convinced that there isn't much that is in “God's Name” in the pages that follow, This is right in the style in which he pictures conditions in the world in general, There is as little truth in what people call religion, custom and so on as there is in this book, where it says “In God's Name” on the first page. I don't know whether it says “In God's Name” in ledgers in Switzerland; but it is quite common that people begin their account books with “In God's Name.”

Therefore, it is a matter of making it clear to people of the middle-class that they are the cause for the view concerning ideology among workmen.

Now, each party has its portion. Then, the lecturer has reached the point where he can explain how the spiritual life must once again acquire reality, since it has in fact turned into ideology. If people have only ideas concerning the spirit and not the whole relationship with the actual spiritual life and substance, then this really is ideology. In this way, one acquires a bridge to the sphere, where a conception can be called forth concerning the reality of the spiritual life. Then it becomes possible to point out that the spiritual (cultural) life is a self-contained reality, not merely a product of the economic life, not just an ideology, but something real that is based on its own foundation. A feeling must be evoked for the fact that the spiritual life is a reality based on its own foundation. Such a self-evident reality is something else than an abstract fact, for something with an abstract basis must be based on a foundation elsewhere.

The workman claims that ideology is based on the economic life. But inasmuch as a person only abandons himself to abstract ideas in his spiritual life, this is indeed something ephemeral, something illusory. Only if people penetrate through this nebulous, illusory element, through the idea to the reality of the spiritual life—as happens by means of Anthroposophy—only then can the spiritual life be experienced as real once again. If the spiritual life is merely a sum of ideas, then these ideas do indeed stream up from the economic life. There, they have to be organized, there one has to provide them with an artificial effectiveness and order. And this is what the state has done. In the age when the spiritual life evaporated into ideology, the state took it in hand to bestow on it at least that reality, which people no longer experienced in the spiritual world itself.

This is how one has to try to make it comprehensible in what way all this, which the state has given the spiritual life without being qualified to do so—since it has turned into ideology—does have a reality. It must have, after all, a reality. For if a person does not have legs of his own but wants to walk, he must have artificial ones made. In order to exist any given thing must have reality. Therefore the spiritual life must have its own reality. This is what must be felt, namely, that the spiritual life must have its own reality.

To begin with, you will make a paradoxical impression among the people of the middle-class as well as those of the working-class. You must even call forth an awareness of the fact that you appear paradoxical. You can do this by giving rise to the conception among your listeners that you think in the same manner as the workman by making use of his language, and at the same time that you think like a member of the middle-class by making use of his terminology. But then, after having developed these trains of thought which can be brought out with the help of what is recalled of experiences gained in life, after you have gone through something like this as a preparation, then you arrive at the point of speaking to people in such as way that gradually a comprehension can be brought about for the issues that must be met with understanding.

Speaking cannot be learned by means of external instructions. Speaking must be learned to a certain extent by means of understanding how to bring to the lecture the thinking which lies behind it, and the experience which lies before it, in a proper relationship.

Now, I have today tried to show you how the material first has to be dealt with. I have connected with what is known, in order to show you how the material may not be created out of some theory or other, how it must be drawn out of life, how it must be prepared so as to be dealt with in speaking. What I have said today everyone should now actually do in his own fashion as preparation for lecturing. Through such preparation the lecture gains forcefulness. Through thought preparation—preparing the organization of the lecture, as I have said at the beginning of today's remarks: from a thought which is then formed into a composition—by this means the lecture becomes lucid, so that the listener can also receive it as a unity. What the lecturer brings along as thinking he should not weave into his own thoughts.—Since, if he gives his own thoughts, they are, as I have already said, such that they interest not a single person. Only through use of one's own thinking in organizing the lecture does it become lucid, and through lucidity, comprehensible.

By means of the experiences which the lecturer should gather from everywhere (the worst experiences are still always better than none at all!) the lecture becomes forceful. If, for example, you tell someone what happened to you, for all it matters, as you were going through a village where someone nearly gave you a box on the ear, then it is still always better if you judge life out of such an experience, than if you merely theorize.—Fetch things out of experience, through which the lecture acquires blood, since through thinking it only has nerves. It acquires blood through experience, and through this blood, which comes out of experience, the lecture becomes forceful. Through the composition you speak to the understanding of the listener; through your experience you speak to the heart of the listener. It is this which should be looked upon as a golden rule. Now, we can proceed step by step. Today I wanted more to show first of all in rough outline how the material can be transformed by degrees into what it afterwards has to be in the lecture. Tomorrow, then, we resume again at three o'clock.

• 1. August Bebel, 1840–1913. Founder in 1869 with Wilhelm Liebknecht of the Social-Democratic Party.
• 2. Franz Mehring, 1846–1919; socialist writer and politician, founder of Marxist literary analysis.
• 3. Erich Schmidt, 1853–1913, literary historian.
• 4Note by translator: Rudolf Steiner makes a pun with words here. The term “Oberstuebchen” can refer in German to an attic room as well as one's head. Not to be quite right in the head can be expressed as not being quite right in the “Oberstuebchen.”
• 5. Jakob Boehme, 1575–1624; mystic and shoemaker in Goerlitz.
• 6. Hans Sachs, 1494–1576; Meistersinger, poet and shoemaker in Nuremberg.

Yesterday I tried to describe how the first part of a lecture on the threefold social order could be dealt with in the case of a certain audience; I called attention to the fact that it is above all necessary to call forth a feeling for the special character of the spiritual life that stands independently on its own. In the second part it will be a matter of making it even comprehensible to present-day humanity that there can be something like a democratic-political connection that has to strive for equality. For it is actually a fact—and you must take this into consideration when preparing for such a lecture—that modern man has no feeling at all for a state structure that is built upon rights as upon its very foundation. This part, the political part referring to the state, is especially difficult to deal with within Swiss conditions. It will have to be specially emphasized that lecturers, who want to represent the threefold social order within Swiss conditions, proceed from the thus given Swiss conditions, and that in the middle part concerning the political, public life, they take into consideration how one must speak out of the Swiss context. After all, generally it is like this: Because of the conditions of the recent development of humanity, public life as such, which was to express itself in the life of rights, has in the main disappeared. What expresses and lives in the configuration of the state, is really a chaotic union of the spiritual elements of human existence and the economic elements. One could say that in the modern states the spiritual elements and the economic elements have gradually become mixed together; whereas the actual political life has fallen away in between, has in fact vanished.

This is particularly noticeable within the conditions of Switzerland. We are dealing there everywhere with a seeming democratization of the spiritual life, impossible in its actual formulations, and a democratization of economic life and the fact that the public believes that this apparent democratic mixture of the spiritual and the economic life is a democracy. Since people have formed their concepts of democracy out of this mixture, since they therefore have an absolute illusory concept of democracy, it is so difficult to speak of true democracy particularly to the Swiss. Actually, the Swiss know least of all about real democracy.

In Switzerland, one thinks about how to democratize the schools. This is about the same as if one were supposed to think about and gain an idea out of real, true concepts on how to turn a boot into a good head covering. In a similar manner, the so-called democratic political concepts are treated. It serves no purpose to speak of these matters in a—let me say—pussy-footing manner in order to speak politely to a mainly Swiss audience; for then we could not understand each other. Politeness in such matters can never lead to an understanding. Well, just because of this it is so necessary to discuss the concept of rights and the equality of men in face of a people like the Swiss nation.

One has to accustom oneself to speak differently in each locality if one wants to be active as a lecturer. When, as was the case beginning in April 1919, one spoke about the threefold social order in Germany, one spoke under totally different conditions from those here in Switzerland, and also completely different conditions than those under which one can speak in England or in America about the threefold order. Especially in that spring, in April 1919, directly after the German revolution, everybody in Germany, the proletarian as well as the middle class—the first naturally in a more revolutionary, the second in a more resigned manner—were convinced of the fact that something new would have to come. One actually spoke into this feeling, this mood, that something new had to come. One spoke at that time to relatively prepared, receptive people; naturally, one could speak in Germany quite differently from the way one could speak there today. A whole world lies between today and that spring of 1919 in Germany as well. Today, one can at most hope to call forth some sort of idea by means of something resembling the threefold order of how the spiritual life as such can be structured independently—especially how it would have to be formulated under the conditions presently existing in Germany today, and how, under certain conditions, the inner-political life of rights within the state could be constituted. In Germany today, one naturally cannot speak of a formulation of the economic life completely in the sense of the threefold order, for the economic life in Germany is in fact something that is under rules of duress, under pressure and such as that. It is something that cannot move freely, that cannot conceive ideas concerning its own free mobility. This is quite obvious in the completely different form of life of, for example, the Futurum and the Kommende Tag. The Kommende Tag exists as if in a strait-jacket, and its task is to function under such conditions; the Futurum must work under Swiss conditions in the way it develops,—conditions of which we shall speak further directly. Therefore, a speech must be formulated in different ways depending on whether it is delivered in Switzerland, Germany, or even at different times. Again, one would have to speak completely differently in England or in America. What can be accomplished from here, in Europe, in regard to these two countries, can only be a sort of substitute. It is alright, for example, if “The Threefold Social Order” is translated, it is fine if the book is widely distributed, but, as I have said from the beginning, in the final analysis the really effective way would be if the ideas of this book were set down in a totally different style for America and England. For both Switzerland and Central Europe, it can be taken literally word for word, the way it was written down. But for England and America the ideas would indeed have to be rendered in a completely different form because in those countries one addresses people who basically have the opposite attitude of what existed, for instance, among Germans in April of 1919. In Germany, the opinion prevailed that something new would have to come and to begin with it would suffice if one knew what this consisted of. One didn't have the mental strength to comprehend it but one had the feeling that one ought to know what this sensible innovation might be. Naturally, in all of England and America nothing like this feeling exists anywhere. The only concern there is how to hold on to and save the old traditions. The only worry is how to properly secure the past because the old values are good, so one thinks, and one must by no means shake the traditional foundations!

I am certainly aware that the above can be countered with the statement that there are so many progressive movements in the Western hemisphere. Still, all these progressive movements, regardless of whether their inner content is new, are reactionary and conservative insofar as their management is concerned. The feeling that things cannot continue the way they have gone 'til now, has to be called into being over there in the West in the first place.

This can certainly be noticed by individual examples. Let us take a terrible, horrible, I could say the worst problem that could have arisen from a purely human standpoint, the question of starvation in Russia. Although the views are ever so chaotic within Germany, even though for reasons of agitation one acts contrary to what would be sensible, and although, out of humane reasons, homage is paid to pity in a matter-of-fact manner,—and naturally, we are not saying anything against pity holding sway,—within Germany, at least in some circles, one is finally more or less reaching the conclusion that it is nonsense for the whole course of humanity's evolution to do something for the starvation of Russia in the form of subsidies, by gifts, as it were, from the West. People are getting the idea that this is quite certainly demanded even from a humane standpoint, but that what is done in this direction is so self-evident that nobody should say that it has anything to do with the tasks posed today by the starvation conditions in Russia. In the West, only a few theorists—but then only on the basis of something theoretical—might arrive at such views. It is therefore natural that one must first call forth a feeling in the West for the fact that the world needs a new form, a reformation.

Switzerland's position during the dreadful catastrophe of recent times (the First World War) was such that it only participated in a theoretical way, namely by means of journalistic theory in the events, also by means of what influenced the cultural and economic conditions from outside. The Swiss population therefore has no actual feeling at all, neither of the fact that something new should come into being, nor that the old ought to remain. If today, depending on one or the other party consideration, a Swiss speaks about something new having to come into being, or something old having to remain, one has the feeling: He only tells one what he has heard, heard on the one hand from Central Europe, on the other from England and the West. He only speaks of what has reached his ears, not of what he has actually experienced. This is why it appears so like the Swiss, when those individuals, who don't like to engage themselves to the right or to the left—and leading Swiss are very often like this today,—that such people say: Well, when this happens, it happens in this way, and when the other takes place, it occurs that way! If something new comes into being, matters take their course thusly, if the old remains, matters run that way!—One figures out, as it were, what one must put on one or the other side of the scale.

It is like this: When one tries to make somebody in Switzerland take an interest in something that is bitterly needed for the world today, one can become quite desperate, for it doesn't really move him at all, for it bounces right back because in reality his heart is not in it. It is too distasteful to him for him to become interested, and he has too little experience concerning these matters for them to become in some way appealing to his sympathy. He wants to have his peace. On the other hand, he wants to be a Swiss. This signifies: If all sorts of progressive reports that include “freedom” and “democracy” resound across the border, and since one has through many centuries called oneself democratic, one cannot turn around and say that one doesn't want democracy! In short, one really has the feeling that people in Switzerland have an exceedingly well-built canal between the right and the left ear, so that everything that goes in one side goes out on the other without having reached common sense and the heart.

One will have to at least take hold at those points where it can be shown that a political system like that of Switzerland is really something quite special. It is indeed something quite special. For, first of all, Switzerland is something like a gravity-point of the world—which was already noticeable during the war, if one wanted to take notice of it. Particularly its non-alliance in regard to the various world conditions could be utilized by Switzerland to achieve free, independent judgment and actions in regard to its surroundings. The world is literally waiting for the Swiss to note in their heads what they note in their pockets. In their pockets they notice that the franc has not been affected by the rise and fall and corruption of currency. The Swiss realize that the whole world revolves around the Swiss franc. That this is also the case in a spiritual regard is something the Swiss don't notice at all. Just as they know how to value the unchanging franc, which, as it were, has become the regulator of currency the world over, the Swiss should learn to understand their independent position, brought about by world conditions, whereby Switzerland could indeed be a kind of lever for world conditions. It is therefore necessary that one makes this comprehensible to them.

It is almost similar to the way one had to speak at one time about Austria. People who knew something about such matters in Austria have often pondered the question why this Austria, which only had centrifugal tendencies, remained in existence, why it didn't split apart. In the 1880's and in the '90's, I never said anything else but: What occurs in Austria itself has to begin with no significance for the cohesiveness or the splitting apart (of the state structure), what happens around it, does. Because the others—Germany, Russia, Italy, Turkey, and those interested in Turkey, France and Switzerland itself—because these political systems that surround Austria on all sides do not let Austria split apart, and instead hold it centrally together for the reason that each (country) begrudged the other a part of it! Each took pains that the other would not acquire anything: by these means Austria held together. It was held together from outside. One could clearly see this if one had an eye for such things. Only when this mutual watch of the surrounding powers was obscured in the World War by the smoke of the cannons, only then did Austria naturally split apart. Basically, this picture says it all.

Well, it is similar in the case of Switzerland, yet it is different. All around, there are all sorts of diverse interests, but these interests left out one small spot where they do not confront each other. And today, where there is the life of the world economy, of the cultural life, matters are such that this small spot is maintained by virtue of being something quite special. What does it represent? It is something that is held together within its borders by purely political conditions. You can see this from the history of Switzerland. Swiss history is seemingly completely political, just as Swiss thinking is seemingly completely democratic. It is the same, however, in politics in Switzerland as I explained it earlier concerning democracy. It is a form of politics that is no politics; on a small spot of the world it governs the cultural and the economic life, but in reality is not politically active. Compare what is politics in Switzerland and what it is elsewhere! Occasionally, one or the other matter must be done in a political sense, because one must enter into correspondence with other countries. But genuine Swiss politics—you would have to turn things upside-down, if you wanted to discover real Swiss politics. That doesn't really exist. But this makes it evident that here a national configuration was created in which the cultural and the economic life are governed in a political sense, but in which there actually does not exist a true feeling, a true experience of the existence of rights.

Therefore, it is a matter of especially emphasizing here that rights are something that cannot be defined, as red or blue cannot be defined, and that rights need to be experienced in their self-evident quality, something that must be experienced when a person, who has become of age, becomes conscious of himself as a human being. Therefore, it would be a matter of trying to work out this human relationship of feelings and sensations in the life of rights, in the political life for Swiss conditions, to show that equality must dwell in the individual person if there is to be a life of rights. For it is Switzerland that is actually called upon—and I would like to say that the angels of the whole world look upon Switzerland to watch whether the right things take place here, to create a system of rights by letting go, freeing the cultural and the economic life; for Switzerland is, if I may put it this way, quite virginal in regard to the political life.

Roman jurisprudence, which moved in a quite different way into France and Germany and the other European countries, was really stopped by the Swiss mountains for the hearts of men. It only moved into external elements, not into the feelings of men. Therefore, this is virginal soil for rights, soil on which everything can be created. If only people will come to the realization what infinite good luck it signifies to be able to live here between the mountains, to be able to have a will of their own, independent of the whole world that revolves around this tiny country! Just because of world conditions, the elements of rights can be brought out here, worked purely out of the human being.

Now I have indicated to you how one must take into consideration the particular locality, the specific area for the preparations of such a lecture, how one must be completely sure within oneself about what the essence of the Swiss character is. Naturally, I can only outline it now; but anybody who wants to lecture in Switzerland should really try hard to fully understand what specific form the Swiss character consists of.

Now it is true, you might say: We are, after all, Swiss—just as the English could say we are English—and you want to tell us how a Swiss is to become acquainted with the Swiss character, and what all an Englishman might not have of such feelings, and so on.—Certainly, one can say that. But those who today belong to the educated class, nowhere have a truly experienced education, an education that has emerged out of the directness of experience. This is the reason why, especially in reference to rights, this direct experience must be specifically pointed out.

With this we arrive at a consideration of how human beings have gradually come into the mutual, social relationships in modern civilization in the area, where rights should really develop. Rights should develop from man to man. Anything else, all parliamentary debates, are basically only a surrogate for what should take its course from one man to the next in a truly correct realm of rights.

If one now ponders the area of rights, one has the opportunity—but now in a more realistic manner—to go into what the concepts of the proletariat consist of and the feelings of the bourgeois. But now, one can lead what the proletariat has developed in its concepts in a more realistic way into the feelings of the bourgeois. I say: concepts of the proletariat, feelings of the bourgeois. The explanation for it you can find in my Towards Social Renewal.

Out of the four concepts, which I developed here yesterday, the proletariat has certainly evolved the feeling of class consciousness; it must appropriate what is in the possession of the bourgeois, namely the state. To what extent the state is a true state of rights or not is something that did not become clear naturally to the proletariat either. But what has developed as a state of rights is something that Switzerland has least of all been touched by; therefore it could comprehend a true state of rights most readily without any prejudices. What has developed as a real state of rights, actually lives only between the expressions of the main soul life of people almost the world over today, but not in Switzerland! Everywhere else in the world, the element that is the political state of rights lives an underground-existence, so to speak, whereas the element that is really experienced between person and person is based on something quite different, namely on something that is through and through a middle-class element. What man actually seeks in public life, what he carries into the whole of public life, whereby an obscuration of the actual life of rights takes place for him—that is something that one can only grasp if one focuses a bit on the concrete relationships.

You see, the cultural, the spiritual life has gradually been absorbed by the life of the state (the government). The cultural life, however, when one confronts it as an element standing on its own ground, is a very stern element, an element in regard to which one must constantly preserve one's freedom, which therefore cannot be organized in any other way except in freedom. Just let one generation unfold its spiritual life more freely and then organize it any way it wants to: it will be purest slavery for the following generation. Not only according to theory, but according to life, the spiritual, cultural life must really be free. The human beings who stand within it must experience this freedom. The cultural life turns into a great tyranny if it spreads out anywhere on earth, for without being organized it cannot spread, and when organization occurs, the organization itself becomes a tyrant. Therefore, there must be a constant battle in freedom, in living freedom, against the tyranny to which the cultural life is inclined.

Now, in the course of the nineteenth century, the cultural life has been absorbed by the life of the state. This means: If one divests the life of the state of the toga in which it is still very much clothed in memory of the ancient Roman age,—although judges are even beginning to discard the robe, but all in all one can still say that the life of the state still wears the toga,—if one disregards this toga, looks instead at what is underneath, one sees everywhere the constrained spiritual life that is present in the state and the social life of the state. It is the restrained spiritual life! It is constrained but ignorant of the fact that it is constrained; therefore it does not strive for freedom, although it does constantly fight against its constraint. Much has emerged in recent times out of this fighting against the constraint of spiritual life. Our whole public cultural life really stands under the influence of this constraint of cultural life, and we cannot attain to healthy social conditions if we do not acquire a feeling for awareness of this constraint. One must have a feeling for how this constraint of the spiritual life meets one in everyday life.

One day, I was invited by a number of ladies in Berlin, who had heard lectures of mine in an institute, to give a lecture in the private apartment of one of these ladies. The whole arrangement was really for the purpose of the ladies' working against a certain relatively harmless attitude of their husbands. You see, the ladies arrived around twelve o'clock noon in the institute where I gave my lectures. When such a day recurred—I think it was once a week—the husbands said, “There you go again into your crazy institute today; then the soup will be bad again, or something else won't be in its usual order!”—So the ladies wanted me to give a lecture on Goethe's Faust—this was selected as the subject—the husbands were also invited. Now I gave the lecture on Goethe's Faust before the ladies and gentlemen. The men were a bit perplexed afterwards and said, “Why yes, but Goethe's Faust is a science; Goethe's Faust is not art. Art, well that's Blumenthal!”¹—I am quoting word for word—“and there one doesn't have to make such an effort. After working so hard in our professional life, who wants to exert an effort in our leisure time!” You see, what has become a substitute for enthusiasm for freedom in cultural life confronts us in the social life as a mere desire to be lightly entertained.

In the country-side, where one could still observe this well, I once saw how these old traveling actors, who always had a clown among them, sometimes presented really fine acts. I watched how the clown, who had been doing his clownish acts for some time and had entertained the people with them, threw off the clown's costume, because he now wanted to act out something that was serious to him,—and there he stood in black trousers and black tails. This image always turns itself around in my mind: First I see the man in his formal black attire, afterwards I see the man in his clown's costume. To me it's like black trousers and tails when, somewhere in a window-display, I see a book by Einstein about the theory of relativity; and I see a clown, when, next to it, I have before me a book by Moszkowski on the theory of relativity. For, indeed, there is much that's maya in outer life. But one couldn't imagine that the whole pedantry of thinkers could inwardly appear other than in black trousers and well-cut tails, I mean in the theory of relativity. And again: It is bothersome to adjust to such stern processes of thinking, such consistent sequences of thoughts, which are really cut like a well-fitting formal suit; that must confront people in a different manner as well. So, Alexander Moszkowski, especially gifted feuilletonistically as a philosopher-clown, gets busy and writes a voluminous book. From it, all the people learn in the form of light literature in the clown's costume, what was born in coat and tails! You see, one cannot do other than translate things into something that requires no effort and where no great enthusiasm need be engendered.

It is namely this overall mood that must be opposed in people's feelings, if one wants to speak about concepts of rights, for there, the human being with all his inner worth confronts the other person as an equal. What does not allow the concepts of rights to arise, is—to put it this way—the Alexander-Moszkowski-element. One must seek for the concrete facts in any given situation.

Naturally, I am not saying that if one needs to speak of concepts of human rights, one has to talk about tails and clowns' costumes. But I would like to show how one has to possess an elasticity of concepts in all matters, how one has to point out both sides of a question, and how one's own mind needs to be disposed in order to gain the necessary fluency to lecture to people.

There is another reason why a modern lecturer must be aware of such things as these. Most of the time, he is compelled to speak in the evening, when he wants to present something important concerning the future, for example. This means that he has to make use of the time when people prefer to attend either the theater or a concert. Therefore, the lecturer must realize that he is speaking to an audience that, according to the mood of the hour, would be better off in the concert hall, the theater, or another place of entertainment. So the audience is really in the wrong place if it finds itself in a lecture hall listening to a speaker who discourses from the platform on some important topic. As a speaker, one must be aware of what one is doing, down to the last detail.

What does one in fact accomplish when forced to address such an audience? Quite literally, one ruins the listener's digestion! A serious speech has the peculiar effect of negatively reacting on the stomach juices, on pepsin. A serious lecturer causes stomach acidity. And only if the speaker is in the proper frame of mind to permeate his address at least inwardly with the necessary humor, can the digestive juices function harmoniously after all. One has to present a speech with a certain inner lightness, modulation, and with an amount of enthusiasm, then one aids the processes of digestion. This way, the adverse effects on people's stomachs, caused by the time of day when one is normally forced to lecture, are neutralized. One is not promoting social ideas but instead medical specialists if one speaks pedantically, with heavy, expressive emphasis. The style must be light and matter-of-fact, or else one does not further the ideas of the threefold social order but the medical specialist's practice! There are no statistics available about the number of people who end up at the doctor's office after they have listened to pedantic speeches, but if there were, one would be astonished at the percentage of people among patients of gastro-intestinal specialists who are eager listeners of lectures nowadays.

I must draw attention to these facts because the time is near when one must be familiar with the actual constitution of the human being. We must know how seriousness or humor affect the stomach and the digestive juices; how, for example, wine acts like a cynic who does not take the human organism seriously but plays with it, as it were. If the human organization were to be viewed with human concepts rather than with the confused, indecisive concepts of today's science, one would certainly realize how every word and word-relationship causes an organic, almost chemical, reaction in the human being.

Knowing such things makes lecturing easier too. The barrier that otherwise stands between speaker and audience ceases to exists if one becomes aware of the damage that a pedantic speech causes the stomach. One frequently has occasion to observe that; though that is less the case in a lecture-class at a university, there, the students protect themselves by not paying attention!

From all this, one can readily understand how much depends on the mood in lecturing. It is much more important to prepare the whole mood-atmosphere and have it in hand than to get the speech ready word for word. A person who has prepared himself for the correct mood need not concern himself with the verbal details to a point where, at a given moment, the latter would cause the listeners discomforts.

Several different aspects go into the makeup of a correctly trained speaker. I want to mention this at this particular point because a discussion of justice, of rights, demands much that has to be characterized in this direction. I want to bring this out now before I shall talk tomorrow about the relationship of speaking and the economic elements.

An anthroposophist once brought the well-known philosopher, Max Dessoir (1867–1947), along to an evening-lecture I was giving at the Architektenhaus in Berlin. This one-time friend of Max Dessoir's said afterwards, “Oh, that Dessoir didn't go along with the lecture after all! I asked him how he had liked it and he replied that he was a public speaker himself, therefore, being one himself, he could not listen properly and form a judgment about what another lecturer was saying.” Well, I did not have to form a judgment about Dessoir following this statement, I had other opportunities for that. Indeed, I wouldn't have done so based on this utterance because I couldn't be sure whether it was really the truth or whether Dessoir, as usual, had lied here too. But assuming it was the truth, what would it have proven? It would have been proof that a person holding such an opinion could never be a proper speaker. A person can never become a good speaker if he enjoys speaking, likes to hear himself talk, and attaches special importance to his own talks. A good speaker always has to experience a certain reluctance when he has to speak. He must clearly feel this reluctance. Above all, he should much prefer listening to another speaker, even the worst one, to speaking himself.

I know very well what I imply with this statement and I realize how difficult it is for some of you to believe me in this, but it is so. Of course, I concede that there are better things to do in life than to listen to poor speakers. But one's own speaking must by no means be included among the better things! Instead, one has to feel a certain urge to hear others, even enjoy listening to others. It is not love for his own speeches but listening to others that makes a person into a good speaker. A certain fluency is acquired by speaking but this has to happen instinctively. What makes one a speaker is basically listening, the development of an ear for the specific peculiarities of the other orators, even if they are poor ones. Therefore, I tell anybody who asks me how to best prepare to become a good speaker, to listen to and to read the speeches of others! Only by doing this one acquires a strong feeling of distaste for one's own speaking. And this distaste is the very thing that enables one to speak realistically. This is extremely important. And if people are as yet not successful in viewing their own speeches with antipathy, it is good if they at least retain their stage-fright. To stand up and lecture without stage-fright and with sympathy for one's own speech is something that ought not to be done because, under any circumstances, the results thus achieved would be negative. It contributes to rigidity, petrification and lack of communication in speech and belongs to the elements that ruin the sermon!

I would indeed not be speaking in the spirit of the aims of this speech-course if I would enumerate on rules of speech to you taken from some old book on rhetoric or copied from dusty rhetorical speeches. Instead, from my own living experience I want you to take to heart what one should always have in one's mind when one wants to influence one's fellow-men by lecturing.

Things change quite a bit if one is forced into a debate. In a sense, a certain rights-relationship between person and person comes up in a discussion. But in the debate through which one can learn most beautifully about human rights, the projection of general concepts of rights into the relationship existing between two people in a discussion hardly plays a role today. Yet here it is indeed important not to be in love with one's own way of thinking and feeling. Instead, in a debate one should feel antipathy for one's own reaction and replies. Because then, by suppressing one's own opinion, annoyance or excitement, one can instead project oneself into the other person's mind. Thus, even if one has to take exception to something in a debate, this attitude has positive results. Of course one cannot simply reiterate what the partner has stated but one can take the substance of an effective rebuttal from understanding him in the first place.

An example that best illustrates this point is the following exchange that took place in the German Parliament between the delegate Rickert and Chancellor Bismarck. Rickert gave a speech in which he accused Bismarck of changing the direction of his political leanings. He pointed out that Bismarck had gone along with the Liberals for a time and then had changed to the Conservatists. He summed it all up with the metaphor that Bismarck's politics amounted to turning his sails to the wind. One can imagine what an effect such a statement had in a place where everybody is ready to talk! Bismarck, however, rose and with a certain air of superiority, to begin with, presented what he had to say in reply to Rickert's remarks. And then, projecting himself into the other like he always did in similar cases, he said, “Rickert has accused me of turning my sails to the wind. But politics is somewhat like navigating a ship on sea. I would like to know how one can hold a steady course if one does not adjust to the wind. A real pilot, like a successful politician, must certainly adjust to the wind in steering his course—unless, possibly, he wants to make wind himself!”

One sees that this metaphor is put to use, turned in such a direction that the verbal arrow hits back at the archer. In a debate it is a matter of picking up the points made by the opponent and quite seriously using them to counter him. Thus, one undoes him with his own arguments. As a rule it doesn't help much if one simply sets one's own reasons against those of the opponent.

In a debate one should be able to evoke the following mood: The moment the debate begins one should be in a position to turn off everything one knew up to now, push it down into one's subconscious mind, and retain only what the speaker, whom one has to reply to, has said. Then can one properly exercise one's talent of setting straight what the other speaker said. Setting matters straight is what's important! In a discussion it is important to take up directly what the other has said, not to oppose him with something one knew some time ago. If one does that, as happens in most debates, the end-result will indeed be inconclusive and fruitless. One has to realize that in a discussion one can never successfully argue the opponent down. One can only demonstrate that he either contradicts himself or reality. One can only go into what he has set forth. If this attitude is developed as the basic rule for debates it will be of great significance for them. If a person only wants to bring out in a debate what he has known previously, then it will certainly he of no significance that he does so after the opponent has stated his case.

I once experienced a most instructive illustration of the above. During my last trip to Holland, I was invited to give a lecture before the Philosophical Society of the University of Amsterdam. Of course, the chairman there had a different opinion from mine already, no doubt about that! And if he participated in the debate he would differ from my viewpoints greatly. But it was equally clear that whatever he would have to say would have no effect on my lecture, and that my views would have no special influence on what he would say based on what he had known beforehand. Therefore, I thought that he was quite clever, he brought out what he had to say not afterwards, during the debate, but before my lecture. What he did add later to what he had said at the start might just as well have been said at the beginning too, it wouldn't have changed matters one bit.

One shouldn't have any illusions concerning such things. It is most important that an orator be very, very strongly attuned to human relationships. But, if matters are to have results, one cannot afford having illusions about human relations. And as a foundation for the following lectures, let me say that, above all, one should have no illusions about the effectiveness of speeches.

I always find it extremely humorous when well-meaning people say all the time that words don't matter, deeds do! I've heard it proclaimed at the most unsuitable times, during discussions and from the rostrums, that it isn't words but actions that count!

Everything that happens in the world in regard to actions depends on words! One who can see through things knows that nothing takes place that hasn't been prepared in advance by somebody through words.

But one will understand that this preparation is a subtle, delicate process. If it is true that theoretical, pedantic speaking affects the digestion, one can imagine how indigestion in turn affects actions, and how public actions are the results of such poor speeches. And if, on the other hand, speakers try to be humorists and only act funny, this results in an overproduction of digestive juices that act like vinegar. And vinegar is a terrible hypochondriac. But the general public is constantly entertained by what flows through public life as continuous fun-making. The jokes of yesterday are not yet digested when the fun of today makes its appearance. And so, the digestive juices turn into something like vinegar. Oh, man is already being entertained again today and maybe he is quite cheerful about it. But the way he places himself into public life is influenced by the hypochondria of this vinegar-like substance at work in him.

One must know how the dimension of speaking fits into the world of actions. The most untrue expression concerning speaking, born of a false sentimentality that is in itself wrong, is,

“The words you've bandied are sufficient;
'Tis deeds that I prefer to see ...”

Faust, Prelude on Stage)

Certainly, this can be said in a dramatic play, and rightly so in its place. But when it is taken out of context and made into a general dictum, it might be true but it certainly will not be good. And we should learn to speak not only beautifully or correctly but effectively as well, so that good will come of it. Otherwise, we lead people into the abyss and can certainly never speak to them about anything that has lasting value for the future.

• 1. Oskar Blumenthal, 1852–1917; author of light comedy.

I have tried to characterize how one can formulate a lecture on the threefold order from out of one thought, and then arrange it in sections. What one can generally say concerning the whole social organism, as well as references to what can occur in the first two realms—namely that of the spiritual life and that of the judicial, the body politic-was contained in what I said.¹ You will have understood from that, how:preparing oneself for the content of such a lecture, one can proceed.

Now, one can also prepare oneself for the form of delivery by immersing oneself into the thoughts and feelings. We shall perhaps understand each other best if I say that the preparation should be such that we try hard first to sense and then to utter what is related to the spiritual life in a more lyrical language (without, of course, resorting to singing, recitation, or some such thing),—in a lyrical manner of speech, with quiet enthusiasm, so that one demonstrates through the way of delivering the matters that everything one has to say concerning the spiritual life comes from out of oneself. One should by all means call forth the impression that one is enthusiastic about what one envisions for the spiritual part of the social organism. Naturally, it must not be false, mystical, sentimental enthusiasm; a made-up enthusiasm. We achieve the right impression if we prepare ourselves first in imagination, in inner experience—even so far as to modulation—how, approximately, something like that could be said. I say specifically, “how, approximately, something like that could be said,” for the reason that we should never commit ourselves word for word; rather what we prepare is, in a sense, a speech taking its course only in inward thoughts; and we are certainly ready to re-formulate what we finally come out and say.

But when we speak about rights-relationships, we should make the attempt to speak dramatically. That implies: when we lecture about the equality of men, discussing it by means of examples, we should try as much as possible to put ourselves into the other person's position with our thinking. For instance, we should call to mind the image of how a person who seeks work, asserts his right to work in the sense of Kernpunkte der sozialen Frage (the threefold social order). By making it evident that on one hand we are speaking from the other person's position, from out of his assertion of rights, we should then make it evident how through a slight change in the tone of voice we pass on to the topic of how one ought to meet such an assertion out of general humanitarian reasons. So it is dramatic speaking, very strongly modulated, dramatic lecturing, that calls forth the impression in listeners that one could think one's way into the souls of other persons; that is the manner we should employ in speaking about the rights-relationships.

When lecturing on economic conditions, the main point is that we speak directly from experience. If, in the spirit of the threefold social organism, one speaks about economic relationships, one should not permit the belief to arise that there even could be such a thing as a theoretical political economy. Instead, one should limit the main discussion to describing cases taken from the economic life itself; either cases that one repeats, or cases that one construes as to how they should be or could be. But with the latter cases—saying how they should or could be—one must never neglect to speak out of economic experience. Actually, when lecturing on the economic life, one should speak in an epic style. Particularly, when presenting what is written in the Kernpunkte, one should speak as if one had no preconceived ideas at all concerning the economic life, and had no notions that this should be thus and so; instead, one should speak as if one were informed on all and everything by the facts themselves.

One can evoke a certain feeling, for example, that it is correct to permit the transfer of the administratioa of monetary funds from one who is not involved in it himself anymore, to somebody who once again can participate in it. But one can only speak about something like that if one presents it to people by means of descriptions of what takes place if there are legacies merely due to blood-relationships, or what can take place when such a transfer is occasioned in the way it is described in the Kernpunkte. Only by placing such a matter before people in a living way, as if one were copying reality, can one speak in such a way that the speech truly stands within the economic life. And just in this way, one can make the idea of “associations”² comprehensible and plausible. One will make it plausible that an individual person really knows nothing about the economic life; that if he wants to arrive at a judgement as to what must be done in the life of the economy, he is basically completely dependent on communicating with others. A sound economic view can only emerge from groups of people and one is therefore dependent on associations.

Then, one will perhaps meet with comprehension if one calls attention to the fact that much of what exists today actually came out of ancient, instinctive associations. Just consider for a moment how today's abstract market brings things together, whose combination and redistribution to the consumer cannot be surveyed at all. But how has one arrived at this market-relationship in the first place? Bascially, from the instinctive association of a number of villages located around a larger township, at a distance that one could travel back and forth on foot in one day, where people exchanged their products. One did not call that an association. One did not coin any word for it, but in reality it was an instinctive association. Those people who here came together for the market were associated with all of those who lived in the surrounding villages. They could count on a set circulation of goods that resulted from experience. Therefore they could regulate production according to consumption in truly alive relationships. There certainly existed such associative conditions in such primitive economies; they just didn't call themselves that.

All this has become impossible to over-see, with the enlargement of the economic territories. In particular, it has become senseless in regard to the world economy. The world economy which has come into being only in the last third of the 19th century, has reduced everything into an abstract realm; that is, it has reduced everything in the economic life to the turn-over of money or its monetary value, until this reduction has proven its own absurdity.

Indeed, when Japan fought a war with China and Japan won the war, one could very simply pay the war reparations by way of the Chinese Minister's handing a check to the Japanese Delegate, which the latter then deposited in a bank in Japan. This is an actual course of events. There were values contained in this check, which is money and has monetary value. It represented values. If you imagine how at that time everything should have been transported from one territory into the other this would have been a difficult process under modern-day conditions. But owing to the manner in which Japan and China were placed within the whole world economy, it could be done this way. However, all this has led itself to a point of absurdity. In the dealings between Germany and France, it has proven itself to be impossible.³ I am therefore of the opinion that the state of affairs can best be explained out of the economic relationships themselves, and then one can explain the necessity for the associative principle.

Once again, one should have to divide this subject matter regarding the economic life in a certain way, and one would have to pass on to several concluding sentences of which I have already said that they again should be conceived verbatim or at least almost word for word.

So, how will the preparation for a speech appear, in fact? Well, one should try one's best to get into the situation or the subject that the audience is prepared for, by formulating the opening sentences in a way one considers necessary. One will have greater difficulty in the case of completely unprepared listeners; less difficulty, if one addresses a group that one finds already involved in the matter, at least possessing the corresponding feelings concerning the assertions one makes. Then, one will neither write down the rest of the speech nor jot down mere catch-words. Experience shows that neither the verbatim composition nor the mere noting down of catch-words leads to a good speech. The reason for not writing down the speech is because it ties one down and easily causes embarrassment when the memory falters; this is most frequently the case when the speech is written down word for word. Catch-words easily mislead one to formulate the whole preparation too abstractly. On the other hand, if one needs to have such a support, what one should best write down and bring along as notes are a number of correctly formulated sentences that serve as catch-phrases. They do not make the claim that one delivers them in the same way as a part of the speech; instead, they indicate: first, second, third, fourth, and so on; they are extracts, so to speak, so that from one sentence perhaps ten or eight or twelve will result. But one should write such sentences down. One should therefore not write down, “spiritual life conceived as independent”; instead, “the spiritual life can only thrive if it freely works independently out of itself.” (Catch-phrases, with other words.) If you do something like this, you will then have the experience yourself that owing to such catch-phrases, you can in a relatively short time most readily attain to a certain facility of speaking freely, a speaking that only contains the ladder of catch-phrases.

Concerning the conclusion, it is often very good if, in a certain sense, at least gently, one leads back to,the beginning; if therefore the end, in a sense, contains something that, as a theme, was also contained in the beginning.

And then, such catch-phrases readily give one the opportinity to really prepare oneself in the way indicated above by having noted these sentences down on one's piece of paper. So, let us say, one ponders the following: what you have to say for the spiritual life must have a sort of lyrical nature within you; what you have to say concerning the rights-relationships must have a kind of dramatic character in your mind; and what concerns the economic life must live in your mind in a narrative, epic form; a quiet, narrative, epic character. Then, the desire, as well as the skill, to word the catch- phrases in the formulation that I have indicated, will indeed begin to arise instinctively. The preparation will result quite instinctively in such a way that the manner in which one speaks merges indeed into what one has to say concerning the subject. For this it is, however, necessary to have brought one's command of language to the level of instinct, so that one indeed experiences the speech-organs the way one would, for instance, feel the hammer, if one wanted to use the hammer for something. That can be achieved, if one practices a little speech-gymnastics.

It's true, isn't it, when one practices gymnastics, those are not movements that are later executed in real life; but they are movements that make one flexible and dextrous. Similarly, one should make the speech-organs pliable and adroit; but making the latter pliable and dextrous is something that must be accomplished so that it goes together with the inner soul life, and so that one learns to be aware of the sound in speaking. In the seminar courses that I held over two years ago in Stuttgart for the Waldorf school teachers, I put together a number of such speech exercises that I now want to pass on to you. They are mostly of a kind that, by their content, does not prevent one from learning to merge oneself purely into the element of speech; they are only designed for practicing speech-gymnastics. If one tries again and again to say these sentences aloud, but in such a way that one always probes: how does one best use his tongue, how does one best use his lips so as to produce this particular sequence of sounds?—then one makes oneself independent of speaking and, instead, places that much more value on mental preparation for lecturing.

I shall now read you a number of such sentences whose content is often senseless, but they are designed to make the speech-organs pliable and fit for public speaking.⁴

Dass er dir log, uns darf es nicht loben.
(That he told lies, 'tis not to be lauded.)

This is the easiest one. Something a bit more complicated:

Nimm nicht Nonnen in nimmermuede Mühlen.
(Take not nuns in never-tired mills.)

One should increasingly try, along with the sequence of sounds, to make the organs of speech pliable; to bend, to hollow, to take possession of them.⁵

Another example:

Rate mir mehrere Rätsel nur richtig.

It is naturally not enough to say something like this once, or ten times; but again and again and again, because even if the speech-organs are already pliable, they can become still more so.

An example that I consider to be particularly useful is the following:

Redlich ratsam
Rüstet rühmlich
Riesig rächend
Ruhig rollend
Reuige Rosse

With this, one has the opportunity to regulate the breath in the pauses, something one has to pay attention to and that can be particularly well done through such an exercise.

In a similar way, not all the letters, nor all the sounds, have the same value for this practicing. You make progress if you take the following, for example:

Protzig preist
Bäder bruenstig
Polternd putzig
Bieder bastelnd
Puder patzend
Bergig brüstend

If you succeed in finding your way into this sequence of sounds, you gain much from it.

When one has done such exercises, then one can also try to do those exercises that cannot but result in bringing a mood into the speaking of the sounds. I have tried to give an example of how the sounds can pour into the mood in the following:

• Erfüllung geht (Fulfillment goes)
• Durch Hoffnung (Through hope)
• Geht durch Sehnen (Goes through longing)
• Durch Wollen (Through willing)

and now it passes more into the sounds, through which, here in particular, the mood in the sound itself is held fast:

• Wollen weht (Willing wafts)
• Im Webenden (In weaving)
• Weht im Bebenden (Wafts in billowing)
• Webt bebend (Weaves billowing)
• Webend bindend (Weaves binding)
• Im Finden (In finding)
• Findend windend (Finding winding)
• Kuendend (Calling)

You will always discover, when you do these exercises in particular, how you are able, without letting the breath disturb you, to regulate the breathing by simply holding yourself onto the sounds. In recent times, one has thought up all kinds of more or less clever methods for breathing and for all kinds of accompanying aspects of speaking and singing, but actually, all of those are no good, because speech with everything that belongs with it, with the breath, too, should by all means be learned through actual speaking. This implies that one should learn to speak in such a way that, within the boundaries that result from the sound sequence and the word relationships, the breath also regulates itself as a matter of course. In other words, one should only learn breathing during speech—in speaking itself. Therefore, the exercises of speech should be so designed that, in correctly feeling them regarding their sounds, one is obliged—not by the content but by the sounds—to formulate the breath correctly because he experiences the sound correctly.

What the verse below represents, points once again to the content of the mood. It has four lines; these four lines are arranged so that they are an ascent, as it were. Each line causes an expectation, and the fifth line is the conclusion and brings fulfilment. Now one should really make an effort to execute this speech movement that I have just characterized. The verse goes like this:

In den unermesslich weiten Raeumen,
In den endenlosen Zeiten,
In der Menschenseele Tiefen,
In der Weltenoffenbarung:
Suche des grossen Raetsels Loesung.

(In the immeasurably wide realms,
in the never-ending ages,
in the human soul's depths
in the world's revelation:
seek the great riddle's answer.)

There you have the fifth line representing the fulfillment of that escalating expectation that is evoked in the first four lines.

One can also attempt to, well, let me say, bring the mood of the situation into the sounds, into the mode of speaking, the how of speech. And for that I have formulated the following exercise. One should picture a sizable green frog that sits in front of him with its mouth open. In other words, one should imagine that one confronts a giant frog with an open mouth. And now, one should picture what sort of reactions, effects, one can have regarding this frog. There will be humor in the emotion as well as all that should be evoked in the soul in a lively manner. Then, one should address this frog in the following way:

Lalle Lieder lieblich
Lipplicher Laffe
Lappiger lumpiger
Laichiger Lurch

Picture to yourself: that a horse is walking across a field. The content does not matter. Naturally, you must now imagine that horses whistle! Now you express the fact that you have here in the following manner:

Pfiffig pfeifen
Pfaeffische Pferde
Pflegend Pfluege
Pferchend Pfirsiche

and then you vary that by saying it this way:

Pfiffig pfeifen aus Naepfen
Pfaeffische Pferde schluepfend
Pflegend Pfluege huepfend
Pferchend Pfirsiche knuepfend

And then—but please, do learn it by heart, so that you can fluently repeat the one version after the other—there is a third version. Learn all three by heart, and try to say them so fluently that during the speaking of one version you will not be confused by the other. That is what counts. Take as the third form:

Kopfpfiffig pfeifen aus Naepfen
Napfpfaeffische Pferde schluepfend
Wipfend pflegend Pfluege huepfend
Tipfend pferchend Pfirsiche knuepfend

Learn one after the other, so that you can do the three versions by heart, and that one never interferes when you say the other.

Something similar can be done with the following two verses:

Ketzer petzten jetzt klaeglich
Letztlich leicht skeptisch

and now the other version:

Ketzerkraechzer petzten jetzt klaeglich
Letztlich ploetzlich leicht skeptisch

Again, learn it by heart and say one after the other!

One can achieve smooth speech if one practices something like the following:

Nur renn nimmer reuig
Gierig grinsend
Knoten knipsend
Pfaender knuepfend

One has to accustom oneself to say this sound sequence, ‘Nur renn ...’. You will see what you gain for your tongue, your organs of speech, if you do such exercises.

Now, such an exercise that lasts a bit longer, through which this flexibility of speech can be attained—I believe actors have already discovered atterwards that this was the best way to make their speech pliable:

Zuwider zwingen zwar
Zweizweckige Zwacker zu wenig
Zwanzig Zwerge
Die sehnige Krebse
Maher suchend schmausen
Dass schmatzende Schrnachter
Schmiegsam schnellstens
Schnurrig schnalzen

And then: one occasionally requires presence of mind in direct speech. One can acquire it by something like the following:

Klipp plapp plick glick
Klingt Klapperrichtig
Knatternd trappend
Rossegetrippel

Then, for further acquisition of presence of mind in speaking, the following two examples can be placed together:

Schlinge Schlange geschwinde
Gewundene Fundewecken weg

The ‘Wecken weg’ is in there, too, but as a sound-motif, thus:

Gewundene Fundewecken
Geschwinde schlinge Schlange weg

The following example is useful for putting some muscle into speech, so that one is in a position, in speaking, to slap somebody down in a discussion sometimes (something that is quite necessary in speaking!):

Marsch schmachtender
Klappriger Racker
Krackle plappernd linkisch
Kink von vorne fort

Then, for somebody who stutters a little, the following two examples should still be mentioned:

Nimm mir nimmer
Was sich waesserig
Mit Teilen mitteilt

For everyone who stutters, this example is good. When stuttering, one can also say it in the way below:

Nimmer nimm mir
Waesserige Wickel
Was sich schlecht mitteilt
Mit Teilen deiner Rede

The point is, of course, that the person who stutters must make a real effort.

One should by no means believe that what I want to call speech-gymnastics, can or should only be practiced with sentences that are meaningful for the intellect. Because in those sentences that contain sense for the intellect, the attentiveness for the meaning instinctively outweighs anything else too much, so that we do not rely correctly on the sounds, the saying. And it is really necessary that, in a certain sense, we tear speaking loose from ourselves, actually manage to separate it from ourselves. In the same way as one can separate writing from one's self, one can also tear speaking loose from oneself.

There are two ways to write for the human being. One way consists of man's writing egotistically; he has the forms of the letters in his limbs, as it were, and lets them flow out of his limbs. One emphasized such a style of writing for a certain length of time—it is probably still the same today—when one gave lessons in penmanship for those who were to be employed in business offices or people like that. I have, for example, observed at one time how such a lesson in writing was conducted for employees of commercial establishments so that the persons in question had to develop every letter out of a kind of curve. They had to learn swinging motions with the hand; then they had to put these motions down on paper; this way, everything is in the hand, in the limbs; and one is not really present with anything but the hand in writing. Another form of writing is the one that is not egotistical; it is the unselfish style of writing. It consists of not really writing with the hand, as it were, but with the eye; one always looks at it and basically draws the letter. Thus, what is in the formation of the hand is of importance to a lesser degree: one really acts like one does when sketching, where one is not the slave of a handwriting. Instead, after a while, one has difficulty in even writing one's name the same way one has written it just the time before. For most people it is so terribly easy to write their name the way they have always written it. It flows out of their hand. But those persons who place something artistic into the script, they write with the eye. They follow the style of the lines with the eye. And there, the script indeed separates itself from the person. Then—while it is in a certain repect not desirable to practice that—a person can imitate scripts, vary scripts in different ways. I do not say that one should practice that especially, but I mean that it results as an extreme when one paints one's script, as it were. This is the more unselfish writing. Writing out of the limbs, on the other hand, is the more selfish, the egotistic way.

Speech is also selfish, in most people. It simply emerges out of the speech-organs. But you can gradually accustom yourselves to experience your speech in such a way that it seems as if it floated around you, as if the words flew around you. You can really have a sort of experience of your words. Then, speaking separates itself from the person. It becomes objective. Man hears himself speak quite instinctively. In speaking, his head becomes enlarged, as it were, and one feels the weaving of sounds and the words in one's surroundings. One gradually learns to listen to the sounds, the words. And one can achieve that particularly through such exercises. That way, there is in fact not just yelling into a room anymore—by yelling, I do not mean shouting out loud only; one can yell in whispering, too, if one actually speaks only for one's own sake, the way it emerges out of the speechorgans—instead one really lives, in speaking, with space. One feels the resonance in space, as it were. This has become a fumbling mischief in certain speech-theories—theories of speech-teaching or speech-study, if you will—of recent times. One has made people speak with body-resonance, with abdominal resonances, with nasal resonances, and so forth. But all these inner resonances are a vice. A true resonance can only be an experienced one. One experiences such a resonance not by the impact of the sound against the interior of the nose; instead one feels it only in front of the nose, outside. Thus, language in fact attains to abundance. And of course, the language of a speaker should be abundant. A speaker should swallow as little as possible.

Do not believe that this is unimportant for the speaker; it is rather of great significance for the speaker. Whether we present something in a correct way to people depends most certainly on what position we are able to take in regard to speech itself. One doesn't have to go quite so far as a certain actor who was acquainted with me, who never said “Freundrl” [Austrian dialect for “Friend”—note by translator] but always “Freunderl”, because he wanted to place himself into every syllable. He did that to the extreme. But one should develop the instinctive talent not to swallow syllables, syllable-forms, and syllable-formations. One can accomplish that if one tries to find one's way into rhythmic speech in such a way that, placing one's self into the whole sound-modulation, one recites to oneself:

Und es wallet und siedet und brauset und zischt,
Wie wenn Wasser mit Feuer sich mengt ...<
(Quote from Schiller's The Diver)

So: it is a matter of placing one's self not only into the sound as such but into the sound-modulation. into this “growing round” and the angularity of sound.

If somebody believes that he could become a speaker without putting any value on this, then he labors under the same misconception as a human soul that has arrived at the point between death and a new birth, when it once again will descend to the earth, and does not want to embody itself because it does not want to enter into the moulding of the stomach, the lungs, the kidney, and so forth. It is really a matter of having to draw on everything that makes a speech complete.

One should at least put some value on the organism of speech and the genius of language as well. One should not forget that valuing the organism of speech, the genius of language, is creative, in the sense of creating imagination. He who cannot occupy himself with language, listening inwardly, will not receive images, will not be the recipient of thoughts; he will remain clumsy in thinking, he will become one who is abstract in speaking, if not a pedant. Particularly, in experiencing the sounds, the imagery in speech-formation, in this itself lies something that entices the thoughts out of our souls that we need to carry before the listeners. In experiencing the word, something creative is implied in regard to the inner organization of the human being. This should never be forgotten. It is extremely important. In all cases, the feeling should pervade us how the word, the sequence of words, the word-formation, the sentence-construction, how these are related to our whole organism. Just as one can figure out a person from the physiognomy, one can even more readily—I don't mean from what he says but from the how of the speech—one can figure out the whole human being from his manner of speech.

But this how of his speech emerges out of the whole human being. And it is by all means a matter of focusing—delicately of course, not by treating ourselves like we were the patient—on the physical body. It is, for example, beneficial for somebody who, through education or perhaps even heredity, is predisposed to speaking pedantically; to try, with stimulating tea that he partakes of every so often, to wean himself from pedantry. As I have said, these things must be done with care. For one person, this tea is right; for another, the other tea is good. Ordinary tea, as I have repeatedly mentioned, is a very good diet for diplomats: diplomats have to be witty, which means having to chat at random about one thing after another, none of which must be pedantic, but instead has to exhibit the ease of switching from one sentence to another. This is why tea is indeed the drink of diplomats. Coffee, on the other hand, makes one logical. This is why, normally not being very logical by nature, reporters write their articles most frequently in coffee-houses. Now, since the advent of the typewriter, matters are a little different, but in earlier days, one could meet whole groups of journalists in coffee-houses, chewing on their pen and drinking coffee so that at last, one thought could align itself with the next one. Therefore, if one discovers that one has too much of what is of the tea-quality, then coffee is something that can have an equalizing effect. But, as was mentioned before, all this is not altogether meant, as a prescription, but pointing in that direction. And if somebody, for example, is predisposed to mix some annoying sound into his speech—let's say if somebody says, “he,” after every third syllable, or something like that—then I advise him to drink some weak senna-leaf-tea twice a week in the evening, and he will see what a beneficial effect that will have.

It is indeed so: since the matters that come to expression in a lecture, in a speech, must come out of the whole person, diet must by no means be overlooked. This is not only the case in an obvious sense. Of course, one can hear by the speech whether it comes from a person who has let endless amounts of beer flow down his gullet, or something like that. This is an obvious case. He who has an ear for speech knows very well whether a given speaker is a tea-drinker or a coffee-drinker, whether he suffers from constipation or its opposite. In speech, everything is expressed with absolute certainty, and all of that has to be taken into consideration. One will gradually develop an instinct for these matters if one becomes sensitive to language in one's surroundings the way I have described it.

However, the various languages lend themselves in different ways, and in varying degrees, to being heard in the surroundings. A language such as the Latin tongue is particularly suitable for the above purpose. The same with the Italian. I mean by this, to be heard objectively by the one who is speaking himself. The English language, for example, is little suited for this, because this language is very similar to the script that flows out of the limbs. The more abstract the languages are, the less suitable they are to be heard inwardly and to become objective. Oh, how in former times the German Nibelungen song sounded:

Uns ist in alten maeren
Wunders vil geseit
von heleden lobebaeren,
von grôzer arebeit;
von freude unt hôchgezîten,
von weinen unde klagen,
von küener recken strîten
müget ir nu wunder hoeren sagen.

Ez wuohs in Buregonden
ein vil edel magedîn,
daz in allen landen
niht schoeners mohte sîn,
Kriemhilt geheizen;
diu wart ein schoene wîp,
Dar umbe muosen degene
vil Verliesen dën lîp.

That hears itself while one is speaking! Through such things one must learn to experience language. Naturally, languages become abstract in the course of their development. Then one must bring the concrete substance into it from within, permeate it with the obvious. Abstractly placed side by side, what a difference:

Uns ist in alten maeren wunders vil geseit

and

Uns wird in alten Märchen Wunderbares viel erzählt

and so forth!

But if one becomes accustomed to listening, this can certainly also be brought into the more modern language, and there, much can be done in speech towards the latter's becoming something that has its own genius. But for that, such exercises are required, so that listening in the spirit and speaking out of the spirit fit into one another. And so, I want to repeat the verse one more time:

Erfuellung geht
Durch Hoffnung
Geht durch Sehnen
Durch Wollen
Wollen weht
Im Webenden
Weht im Bebenden
Webend bindend
Im Finden
Findend windend
Kuendend.

Only by placing the sound into various relationships, does one arrive at an experiencing of the sound, the metamorphosis of the sound, and the looking at the word, the seeing of the word.

Then, when something like what I have described today as creating a disposition through catch-sentences, as our inner soul-preparation, is united with what we can in the above way gain out of the language, then it all works toward public speaking.

One more thing is required besides all the others I have already mentioned: responsibility! This implies that one should be aware that one does not have the right to set all of one's ill-mannered speech-habits before an audience. One should learn to feel that for a public appearance one does require education of speech, a going-out of one's self, and plasticity in regard to speech. Responsibility towards speech! It is very comfortable to remain standing and to speak the way one normally does, and to swallow as much as one is used to swallow; to swallow (verschlucken), to squeeze (quetschen), and to bend (biegen) and break (brechen), and to pull (dehnen) at the words just the way it suits one. But one may not remain with this squeezing (Quetschen) and pushing (Druecken) and pulling (Dehnen) and cornering (Ecken) and similar speech-mannerisms. Instead, one must try to come to the aid of one's speaking even in regard to the form. If one supports one's speaking in this manner, one is quite simply also led to the point where one addresses an audience with a certain respect. One approaches public speaking with a certain reserve and speaks to an audience with respect. And this is absolutely necessary. One can accomplish this if, on the one side, one perfects the soul-aspect; and, on the other side, formulates the physical in the way I have demonstrated in the second part of the lecture. Even if one only has to give occasional talks, such matters still play an important part.

Say, for example, that one has to give discussions on the building, the Goetheanum. Since one naturally cannot make a separate preparation for each discussion, one should basically, in that case, properly prepare oneself, the way I have explained it, at least twice a week for the talk in question. One should actually only extemporize, if one practices the preparation, as it were, as a constant exercise.

Then one will also discover how, I should like to say, the outer form unites itself with the substance. And we shall have to speak about this point in particular one more time tomorrow: about the union of the form-technique with the soul-technique.

The course is brief, unfortunately; one can barely get past the introduction. But I would find it irresponsible not to have said what I did say in particular in the course of these lectures.

• 1. The threefold social organism, as depicted by Rudolf Steiner, is composed of three parts: the two mentioned above and the economic realm.
• 2. See The Threefold Social Order for details on “Associations.”
• 3. Rudolf Steiner refers here to the war-reparations demanded of Germany by France.
• 4. The speech-exercises are rendered in the original German, since the emphasis is on their sound, primarily; a translation is often useless as well as extremely difficult.
• 5. In trying to illustrate how one must take hold of one's speech-organs via the exercises. Rudolf Steiner modifies the four words in a manner that is highly original and unusual, and untranslatable as well. But they thus indicate a living working, an active doing. “Gesehmeithgen,” to make pliable; “zu biegen,” to bend; “zu hohlen,” to make hollow; “zu erhabenen,” to have or possess by effort.

Since today must be our last session, we will be concerned with filling out and expanding upon what has been said; so you must consider this rather like a final clearance at a rummage sale, where what has been left is finally brought out.

First, I would like most of all to say one must keep in mind that the speaker is in an essentially different position than he who gives something he has written to a reader. The speaker must be very aware that he does not have a reader before him, but rather a listener. The listener is not in a position to go back and re-read a sentence he has not understood. The reader, of course, can do this, and this must be kept in mind. This situation can be met by presenting through repetition what is considered important, even indispensable, for a grasp of the whole. Naturally, care must be taken that such repetitions are varied, that the most important things are put forth in varied formulations while, at the same time, this variety of re-phrasings does not bore the listener who has a gift for comprehension. The speaker will have to see to it that the different ways he phrases one and the same thing have, as it were, a sort of artistic character.

The artistic aspect of speaking is, in general, something that must be kept clearly in mind, the more the subject matter is concerned with logic, life-experience, and other powers of understanding. The more the speaker is appealing to the understanding through strenuous thinking, the more he must proceed artistically—through repetition, composition, and many other things which will be mentioned today. You must remember that the artistic has its own means of facilitating understanding. Take, for example, repetition, which can work in such a way that it forms a sort of facilitation for the listener. Differently phrased repetitions give the listener occasion to give up rigidly holding himself to one or another phrase and to hear what lies between them. In this way his comprehension is freed, giving him the feeling of release, and that aids understanding to an extraordinary degree.

However, not only should different means of artistically structuring the speech be applied, but also different ways of executing it. For example, take the speaker who, in seeking the right word for something, brings in a question in such a way that he actually speaks the question amidst the usual flow of statements. What does it mean to address one's listeners with a question? Questions which are listened to actually work mainly on the listener's inhalation. The listener lives during his listening in a breathing-in, breathing-out, breathing-in, breathing-out. That is not only important for speaking, it is also most important for listening. If the lecturer brings up a question the listener's exhalation can, as it were, remain unused. Listening is diverted into inhalation on hearing a question. This is not contradicted by a situation when the listener may be breathing out on hearing a question. Listening takes place not only directly but indirectly, so that a sentence which falls during an exhalation—if it is a question—is really only rightly perceived, rightly taken in, during the subsequent inhalation. In short, inhalation is essentially connected with hearing a content in question form. However, because of the fact that inhalation is engaged by a question being thrown out, the whole process of listening is internalized. What is said goes somewhat more deeply into the soul than if one listens merely to an assertion.

When a person hears a straight assertion his actual tendency is to engage neither his inhalation nor his exhalation. The assertion may sink in a little, but it doesn't actually even engage the sense organs much.

Lengthy assertions concerning logical matters are, on the whole, unfortunate within the spoken lecture. Whoever would lecture as if he were merely giving a reasoned argument has gotten hold of a great instrument—to put his listeners to sleep; for such a logical development has the disadvantage that it removes the understanding from the organ of hearing. One doesn't listen properly to logic. Furthermore, it doesn't really form the breath; it doesn't set it going in varied waves. The breath remains essentially in its most neutral state when a logical assertion is listened to, thus one goes to sleep with it. This is a wholly organic process. Logical assertions are perforce impersonal—but that takes its toll.

Thus, one who wants to develop into a speaker must take care whenever possible not to speak in logical formulae but in figures of speech, while remaining logical. To these figures of speech belongs the question. Also belonging to figures of speech is the ploy of occasionally saying the opposite of what one really wants to say. This has to be said in such a way that the listener knows he is to understand the opposite. Thus, let us say, the speaker says straight out, and even in an assertive tone: Kully is stupid. Under certain circumstances that could prove to be not a very good turn of phrase. But it could be a good formulation if someone said: I don't believe there is anyone sitting here who presumes that Kully is clever! There you have spoken a phrase that is opposite of the truth. But, naturally, you have added something so that you could formulate the opposite to the assertive statement. Thus, by proceeding in this way, and with inner feeling, the speech will be able to stand on its own two feet.

I have just said that the speech will be able to stand on its own feet. This is an image. Philistines can say that a speech has no feet. But a speech does have feet!As an example one need only recall that Goethe, in advanced age, when he had to speak while fatigued, liked to walk around the room. Speech is basically the expression of the whole man—thus it has feet! And to surprise the listener with something about which he is unfamiliar and which, if he is to grasp it, he must go counter to what he is familiar with—that is extremely important in a lecture.

Also belonging to the feeling-logic of the speech is the fact that one does not talk continually in the same tone of voice. To go on in the same tone, you know, puts the listener to sleep. Each heightening of the tone is actually a gentle nightmare; thus the listener is somewhat shaken by it. Every relative sinking of tone is really a gentle fainting, so that it is necessary for the listener to fight against it. Through modulating the tone of speech one gives occasion for the listener to participate, and that is extraordinarily important for the speaker.

But it is also especially important now and then to appeal somewhat to the ear of the listener. If he is too immersed in himself while listening, at times he won't follow certain passages. He begins to reflect within himself. It is a great misfortune for the lecturer when his listeners begin to ponder within themselves. They miss something that is being said, and when—after a time—they again begin to hear, they just can't keep up. Thus at times you must take the listener by the ear, and you do that by applying unusual syntax and sequences of phrasing. The question, of course, gives a different placing of subject and predicate than one is used to, but you ought to have on hand a variety of other ways of changing the word order. You should speak some sentences in such a way that what you have at the beginning is a verb or some other part of speech which is not usually there. Where something unusual happens, the listener again pays attention, and what is most noteworthy is that he not only pays attention to the sentence concerned but also to the one that follows. And if you have to do with listeners who are unusually docile, you will find that they will even listen to the second sentence if you interlace your word-order a bit. As a lecturer, you must pay attention to this inner lawfulness. You will learn these things best if, in your listening, you will direct your attention to how really good speakers use such things. Such techniques are what lead essentially to the pictorial quality of a speech.

In connection with the formal aspect of speaking, you could learn a great deal from the Jesuits. They are very well trained. First, they use the components of a speech well. They work not only on intensification and relaxation but, above all, on the image. I must continually refer to a striking Jesuit speech I once heard in Vienna, where I had been led by someone to the Jesuit church and where one of the most famous Jesuit Fathers was preaching. He preached on the Easter Confessional, and I will share the essential part of his sermon with you. He said: "Dear Christians! There are apostates from God who assert that the Easter Confessional was instituted by the Pope, by the Roman Pope; that it does not derive from God but rather from the Roman Pope. Dear Christians! Whoever would believe that can learn something from what I am going to say: Imagine in front of you, dear Christians, there stands a cannon. Beside the cannon there stands a cannonier. The cannonier has a match in his hand ready to light the fuse. The cannon is loaded. Behind the cannonier is the commanding officer. When the officer commands, 'Fire,' the cannonier lights the fuse. The cannon goes off. Would any of you now say that this cannonier, who obeyed the command of his superior, invented the powder? None of you, dear Christians, would say that! Look now, such a cannonier was the Roman Pope, who waited for the command from above before ordering the Easter Confessional. Thus, no one will say the Pope invented the Easter Confessional; as little as the cannonier invented the gunpowder. He only carries out the commandments from above." All the listeners were crushed, convinced!

Obviously, the man knew the situation and the state of mind of the people. But that is something that is an indispensable precondition for a good speech and has already been characterized in this study. He said something which, as an image, fell completely outside the train of thought, and yet the listeners completed the course of the argument without feeling that the man spoke subjectively. I have also called to your attention the dictum by Bismarck about politicians steering by the wind, an image he took from those with whom he was debating, but which nevertheless frees one from the strictness of the chain of thought under discussion.

These sorts of things, if they are rightly felt, are those artistic means which completely replace what a lecture does not need, namely, sheer logic. Logic is for thought, not for speaking; I mean for the form of speech, not the way of expression. Naturally, the illogical may not be in it. But a speech cannot be put together as one combines a train of thought. You will find that something may be most acute and appropriate in a debate and yet really have no lasting effect. What does have a lasting effect in a speech is an image which grabs, that is, which stands at some distance from the meaning, so that the speaker who uses the image has become free from slavish dependence on the pure thought-sense.

Such things lead to the recognition of how far a speech can be enhanced through humor. A deeply serious speech can be elevated by a humor which, so to say, has barbs. It is just as I have said: if you wish to forcibly pour will into the listeners, they get angry. The right way to apply the will is for the speech itself to develop images which are, so to speak, inner realities. The speech itself should be the reality. You can perhaps grasp what I want to say if I tell you of two debates. The second is not a pure debate, but it still can be instructive for the use of images in a speech which wishes to characterize something.

Notice that those orations that are intended to be witty often acquire a completely subjective coloring. The German Parliament had for some time, in one of its members by the name of Meyer, just such a witty debater. For example, at one time the famous—or infamous—“Lex Heinze” was advocated in this particular Parliament. I believe that the man who gave the speech for the defense was the minister; and he always spoke, as the defender and as one belonging to the Conservative Party, of “das Lex Heinze.” He always said “das Lex Heinze.” Now, no doubt, such a thing can pass. But it was in the nature of the Liberal Party, of which the joker, Representative Meyer, was a member, that it took just such matters seriously. So later on in the debate Meyer asked leave to speak and said somewhat as follows: “The Lord Minister has defended die Lex Heinze¹ and has constantly said ‘das Lex Heinze.’ I didn't know what he was really talking about. I have gone all around asking what ‘das Lex’ is. No one has been able to enlighten me. I took the dictionary and looked—and found nothing. I was about to come here and ask the Minister, when it suddenly struck me to consult a Latin Grammar. There I found it, there stood the statement: 'What one cannot decline must be considered a neuter!”

To be sure, for an immediate laugh it is very good, this coarse wit. But it still has no barbs, it doesn't ignite deeply, because with such a ploy there is aroused subtly and unconsciously in the listener a pity for the afflicted one. This kind of wit is too subjective, it comes more out of a love of sarcasm than out of the thing itself.

Over against this I have always found the following to be a striking image: He who was later to become Prussian King Friedrich Wilhelm IV was, as Crown Prince, a very witty man. His father, King Friedrich Wilhelm III, had a minister who was very special to him, whose name was von Klewiz.² Now the Crown Prince could not bear von Klewiz. Once, at a court ball, the Crown Prince spoke to Klewiz and said: Your Excellency, I would like to put to you a riddle today:

The first is the fruit from the field
The second is something which,
when one hears it, one gets a light shock;
And the whole is a public calamity!

Von Klewiz turned red from ear to ear, bowed, and handed in his resignation after the ball. The King called him and said: What happened to you? I can't spare you, my dear Klewiz!—Yes, but, Your Royal Highness, the Crown Prince said something to me yesterday which made it impossible for me to remain in office.—But that is not possible! The dear Crown Prince would not say such a thing, that I can't believe!—Yes, but it is so, Your Majesty.—What has the Crown Prince said?—He said to me: The first is a fruit from the field; the second is something which, if one hears it, one gets something like a light shock; the whole is a public calamity! There is no doubt, Royal Highness, that the Crown Prince meant me.—Indeed, remarkable thing, dear Klewiz. But we will have the Crown Prince come and we will hear how the matter stands.

The Crown Prince was called.—Dear One, yesterday evening you are supposed to have said something very offensive to my indispensible minister, His Excellency, von Klewiz.—The Crown Prince said: Your Majesty, I am unable to remember. If it had been something serious I would surely be able to remember it.—It does seem to have been something serious, though.—Oh! Yes, yes, I remember. I said to His Excellency that I wished to put a riddle to him: The first syllable is a fruit of the field, the second syllable indicates something which, if one perceives it, one gets something like a slight shock; the whole is a public calamity. I don't think that it is a matter of my having offended His Excellency so much as that His Excellency could not solve the riddle. I recall that His Excellency simply could not solve the riddle!—The King said: Indeed, what is the riddle's solution?—Here, then: The first syllable is a fruit of the field: hay (Heu); the second syllable, where one gets a light shock, is “fear” (Schreck); the whole is: grasshopper (Heu-schreck), that is, a public calamity (or nuisance), Your Majesty.

Now why do I say that? I say it on the grounds that no one who tells such a thing, no one who moulds his phrases or figures of speech in such a form, has need of following the matter through to its end; for no person expects in telling it that he has to explain the tableau further, but rather expects each to draw for himself the pictorial idea. And it is good in a speech to occasionally work it so that something is left over for the listener. There is nothing left over when one ridicules someone; the gap is perfectly filled up.

It is a matter of heightening the vividness so that the listener can really get the feeling that he can act on something, can take it further. Naturally, it is necessary that one leaves the needed pauses in his speech. These pauses must be there.

Now along this line we could say an extraordinary amount about the form, about the structure, of a speech. For usually it is believed that men listen with their ears alone; but the fact that some, when they especially want to grasp something, open their mouths while listening, already speaks against this. They would not do this if they listened with their ears alone. We listen with our speech organs much more than is usually thought. We always, as it were, snap up the speech of the speaker with our speech organ; and the etheric body always speaks along with, even makes eurythmy along with, the listening—and, in fact, the movements correspond exactly to eurythmy movements. Only people don't usually know them unless they have studied eurythmy.

It is true that everything we hear from inanimate bodies is heard more from outside with the ear, but the speech of men is really heard in such a way that one heeds what beats on the ear from within. That is a fact which very few people know. Very few know what a great difference exists between hearing, say, the sound of church bells or a symphony, and listening to human speech. With human speech, it is really the innermost part of the speaking that is heard. The rest is much more merely an accompanying phenomenon than is the case with the hearing of something inanimate. Thus, I have said all that I did about one's own listening so that the speaker will actually formulate his speech as he would criticize it if he were listening to it. I mean that the formulation comes from the same power, out of the same impulse, as does the criticism if one is doing the listening.

It is of some importance that the persons who make it their task to do something directly for the threefolding of the social organism—or something similar to this—take care that what they have to say to an audience is done, in a certain way, artistically. For basically, one speaks today—I have already indicated this—to rather deaf ears, if one speaks before the usual public about the threefolding of the social organism. And, I would like to say, that in a sense one will have to be fully immersed in the topic, especially with feeling and sensitivity, if one wants to have any success at all. That is not to suggest that it is necessary to study the secrets of success—that is certainly not necessary—and to adapt oneself in trivial ways to what the listener wants to hear. That is certainly not what should be striven for. What one must strive for is a genuine knowledge of the events of the time. And, you see, such a firm grounding in the events of the time, an arousal of the really deeper interest for the events of the time, can only be evoked today by Anthroposophy. For these and other reasons, whoever wants to speak effectively about threefolding must be at least inwardly permeated with the conviction that for the world to understand threefold, it is also necessary to bring Anthroposophy to the world.

Admittedly, since the very first efforts toward the realization of the threefold social order, there have been, on the one hand, those who are apparently interested in the threefold social order but not in Anthroposophy; while on the other hand, those interested in Anthroposophy but caring little for the threefold social order. In the long run, however, such a separation is not feasible if anything of consequence is to be brought about.

This is especially true in Switzerland, some of the reasons for which having already been mentioned. The speaker must have a strong underlying conviction that a threefold social order cannot exist without Anthroposophy as its foundation. Of course, one can make use of the fact that some persons want to accept threefolding and reject Anthroposophy; but one should absolutely know—and he who knows will be able to find the right words, for he will know that without the knowledge of at least the fundamentals of Anthroposophy there can be no threefold organization.

For what are we attempting to organize in a threefold way? Imagine a country where the govern ment has complete control of the schools on the one hand and the economy on the other, so that the area of human rights falls between the two. In such a country it would be very unlikely that a threefold organization could be achieved. If the school system were made independent of the government, the election of a school monarch or school minister would probably shortly follow, transforming within the shortest time the independent cultural life into a form of government!

Such matters cannot be manipulated by formulas; they must be rooted in the whole of human life. First we must actually have an independent cultural life and participate in it before we can assign it its own sphere of activity within society. Only when that life is carried on in the spirit of Anthroposophy—as exemplified by the Waldorf school in Stuttgart—can one speak of the beginnings of an independent cultural sector. The Waldorf school has no head, no lesson plans, nor anything else of the kind; but life is there, and life dictates what is to be done.

I am entirely convinced that on this topic of the ideal independent school system any number of persons, be it three, seven, 12, 13 or 15, could get together and think up the most beautiful thoughts to formulate a program: firstly, secondly, thirdly—many points. These programs could be such that nothing more beautiful could be imagined. The people who figured out these programs need not be of superior intelligence. They could, for example, be average politicians, not even that, they could be barroom politicians. They could discover 30, 40 points, fulfilling all the highest ideals for the most perfect schools, but they wouldn't be able to do anything with it! It is superfluous to set up programs and statutes no one can work with. One can work with a group of teachers only on the basis of what one has at hand—not on the basis of statutes—doing the best one can in the most living way.

An independent cultural life must be a real life of the spirit. Today, when people speak of the spiritual life, they mean ideas; they speak only of ideas.

Consequently, since Anthroposophy exists for the purpose of calling forth in people the feeling for a genuine life of the spirit, it is indispensable when the demand arises for a threefold social organism. Accordingly, the two should go together: furtherance of Anthroposophy and furtherance of the threefold social order.

But people, especially today, are tired in mind and soul. They actually want to avoid coming to original thoughts and feelings, interested only in maintaining traditions. They want to be sheltered. They don't want to turn to Anthroposophy, because they don't want to stir their souls into activity; instead, they flock in great numbers—especially the intellectuals—to the Roman Catholic Church, where no effort is required of them. The work is on the part of the bishop or priest, who guides the soul through death. Just think how deep-rooted it is in today's humanity: parents have a son whom they love; therefore they want his life to be secure. Let him work for the government: then he is bound to be well looked after; then he doesn't have to face the battle of life by himself. He will work as long as he can, then go on to pensioned retirement—secure even beyond his working days. How grateful we should be to the government for taking such good care of our children!

Neither are people so fond of an independently striving soul. The soul is to be taken care of until death by the church, just as work is provided by the government. And just as the power of the government provides the physical man with a pension, so the church is expected to provide the soul with a pension when a man dies, is expected to provide for it after death—that is something that lies deeply in present-day man, in everyone today. Just to be polite I will add that this is true for the daughters as well as the sons, for they would rather be married to those who are thus “secure,” who are provided for in this way. Such seems to be the obsession of humanity: not to build upon oneself, but to have some mystical power somewhere upon which to build. The government, as it exists today, is an example of such a mystical power. Or is there not much obscurity in the government? I suspect much more obscurity than in even the worst mystic.

We must have a sense for these things as we commit ourselves to the tasks to which these lectures are addressed. This course was primarily confined to the formalities of the art of lecturing, but the important thing is the enthusiasm that lives in your hearts, the devotion to the necessity of that effectiveness which can emanate from the Goetheanum in Dornach. And to the degree that this inner conviction grows in you, it will become a convincing power not only for you but for others as well. For what do we need today? Not a mere doctrine; however good it could be, it could just get moldy in libraries, it could be formulated—here or there—by a "preacher in the desert," unless we see to it that the impulse for a threefold social order finds entrance, with minimal delay, to as many minds as possible. Then practical application of that impulse will follow by itself.

But we need to broaden the range of our efforts. A weekly publication such as the Goetheanum will have to be distributed as widely as possible in Switzerland. That is only one of many requirements, in view of the fact that the basic essentials of Anthroposophy must be acquired ever anew; but a weekly of this type will have to find its place on the world scene and work in widespread areas for the introduction and application of the threefold social order. The experience of the way in which the Goetheanum publication thus works will be essential to anyone attempting to assist in the realization of such an order in the social organism.

What we need above all is energy, courage, insight, and interest in world events on a broader scale! Let us not isolate ourselves from the world, not get entangled in narrow interests, but be interested in everything that goes on all over the world. That will give wings to our words and make us true coworkers in the field we have chosen.

In this light were these lectures given; and when you go out to continue your work, you can be assured that the thoughts of the lecturer will accompany you. May such cooperation strengthen the impulse that should inspire our work, if that work, especially in Switzerland, is to be carried on in the right way.

And so I wish you luck, sending you out not into darkness but into where light and open air can enter into the development of humanity—from which you will doubly benefit, as you yourselves are the ones who are to bring this light and openness into the world.

• 1. The proper form was apparently “die,” implying feminine gender. “Das” implies neuter gender.
• 2. The two syllables of the name are identical in sound with Klee (clover) and Witz (joke).

Ladies and Gentlemen,

Today I intend a kind of introduction. In tomorrow's lecture we shall begin and try to give a more or less complete picture of the questions of social and political economy which man today must set before himself.

The subject of Economics, as we speak of it today, is in reality a very recent creation. It did not arise until the time when the economic life of modern peoples had become extraordinarily complicated in comparison with earlier conditions. As this Course is intended primarily for students of Political Economy, it is necessary by way of introduction to point out this peculiarity of the economic thinking of today.

After all, we need not go very far back in history to see how much economic life has changed, even during the nineteenth century. You need only consider this one fact: England, for example, already had, during the first half of the century, what was practically the modern form of economic life. There was comparatively little radical change in the economic structure of England in the course of the nineteenth century. The great social questions which arise out of economic questions in modern times were being asked in England as early as the first half of the nineteenth century: and those who wanted to think of social and economic questions in the modern sense could pursue their studies in England at a time when in Germany—for instance—such studies must have remained unfruitful. In England, above all, the conditions of trade and commerce on a large scale had already come into being by the first third of the nineteenth century. Through the great development of trade and commerce in the economic life in England, a foundation was already there in the shape of trade capital. In England there was no need to seek for any other starting-point for modern economic life. They simply had to apply the trade capital resulting from the consolidation of trade and commerce even as early as the first third of the nineteenth century. Starting from this time, everything took place in England with a certain logical consistency; only we must not forget that the whole of this English economic life was only possible on the basis originally given by England's relation to her colonies, especially to India. The whole of the English economic system is unthinkable without the relationship of England to India. In other words, English economic life, with all its facility for evolving large sums of capital, is founded on the fact that there lies in the background a country which is, as it were, virgin economic soil. We must not overlook this fact, especially when we pass from England to Germany.

If you consider the economic life of Germany you will see that in the first third of the nineteenth century it still essentially corresponded to economic customs which had arisen out of the Middle Ages. The economic customs and relationships within Germany in the first third of the nineteenth century were essentially old: consequently the whole tempo of economic life was different in Germany from what it was in England during the first third, or even the first half, of the nineteenth century. In England, during the first half of the century, there was already what we may call a reckoning with quickly changing habits of life. The main character of economic life remained essentially the same: but it was already adaptable to quickly changing habits. In Germany, on the other hand, habits of life were still conservative: economic development could afford to advance at a snail's pace, for it had only to adapt itself to technical conditions, which remained more or less the same over long periods, and to human needs, which were not rapidly changing.

But in this respect a great transformation took place in the second third of the nineteenth century. Then there rapidly took place an approximation to English conditions, a development of the industrial system. In the first half of the nineteenth century Germany had been in all essentials an agrarian country: now it was rapidly transformed into an industrial country, far more rapidly than any other region of the Earth.

But there is an important fact in this connection. We might describe it thus: In England the transition to an industrial condition of life took place instinctively: nobody knew exactly how it happened. It came like an event of Nature. In Germany, it is true, the medieval character still existed in the first third of the nineteenth century. Germany was an agrarian country. But while the outer economic conditions were taking their accustomed course in a way that might almost be called medieval, human thinking was undergoing a fundamental change. It came into the consciousness of men that something altogether different must now arise, that the existing conditions were no longer true to the time. Thus the transformation of economic conditions which arose in Germany in the second third of the nineteenth century took place far more consciously than in England. In Germany people were far more aware of how they entered into modern capitalism: in England people were not aware of it at all. If you read today all the writings and discussions in Germany during that period concerning the transition to industrialism, you will get a remarkable impression, a strange impression, of how the people in Germany were thinking. Why, they actually looked upon it as a real liberation of mankind: they called it Liberalism, Democracy. Nay, more, they regarded it as the very salvation of mankind to get right out of the old connections, the old binding links, the old kind of corporation, and pass over to the fully free position (for so they called it) of the individual within the economic life. Hence in England you will never meet with a theory of Economics such as was developed by the people who received their education in Germany in the height of the period which I have now characterised. Schmoller, Roscher and others derived their views from the heyday of this “Liberalism ” in Political Economy. What they built up was altogether in this sense, and they built it with full consciousness. An Englishman would have thought such theories of Economics stale and boring; he would have said: “One does not trouble to think about such things.” Look at the radical difference between the way in which people in England talked about these things (to mention even a man like Beaconsfield, who was theoretical enough in all conscience) from the way in which Richter or Lasker or even Brentano were speaking in Germany. In Germany, therefore, this second period was entered into with full consciousness.

Then came the third period, the period essentially of the State. It is true, is it not, that as the last third of the nineteenth century drew near, the German State was consolidated purely by means of external power. That which was consolidated was not what the idealists of '48 or even of the 1830's had desired: no, it was the “State” that was consolidated, and moreover by means of sheer force. And this State, by and by, requisitioned the economic life with full consciousness for its own purposes. Thus, in the last third of the nineteenth century, the structure of the economic life was permeated through and through by the very opposite principle to the previous one. In the second third of the century its evolution had been subject to the ideas of “Liberalism.” Now its evolution became altogether subject to the idea of the State. This was what gave the economic life in Germany, as a whole, its stamp. It is true that there were elements of consciousness in the whole process, and yet in another sense the whole thing was quite unconscious.

But the most important thing is this: Through all these developments a radical contrast, an antagonism of principle, was created, not only in thought but in the whole conduct of economic life itself between the English and the Mid-European economy. And, ladies and gentlemen, on this contrast the manner of their economic intercourse depended. The whole economy of the nineteenth century, as it evolved into the twentieth, would be unthinkable without this contrast between the West and Middle Europe. The way in which men sold, the way in which they found a market for their goods, the way in which they manufactured them, all this would be unthinkable without this contrast.

This was the course of development. First the economic and industrial life of England became possible on the basis of her possession of India: next it became possible for the whole economic activity to be extended on the basis of the contrast between the Western and the Mid-European economic life. In effect, the economic life is founded not on what one sees in one's immediate surroundings, but on the great reciprocal relationships in the world at large.

Now it was with this contrast that the world as a whole entered into the state of world-economy and—could not enter! For the world continued to depend on that instinctive element which had evolved from the past, and the existence of which I have just indicated in describing the antithesis between England and Mid-Europe. In the twentieth century, though the world was unaware of the fact, we stood face to face with this situation. The antithesis became more and more immediate, it became deeper and deeper: and we stood before this great question: The economic conditions had evolved out of these antitheses or contrasts and, having done so, they were carrying the contrasts themselves ever more intensely into the future. And yet, if the contrast were to go on for ever increasing, economic intercourse would become impossible. This was the great question of the twentieth century: The contrast had created the economic life; the economic life had in turn enhanced the contrast. The contrast was calling for a solution. The question was: How are these contrasts or antagonisms to be resolved? The further course of history was destined to prove that men were incapable of finding the answer.

It would have been practical to talk in words like these in 1914, in the days of peace. But, in place of a solution, there came the result of failure to find such a world-historic solution. Such was the disease which then set in, seen from the economic aspect.

You must recognise that the possibility of all evolution always depends on contrasts or antitheses in the last resort. I will only mention one example. Through the fact that the English economic life had been consolidated far earlier than the Mid-European, the English were unable to make certain goods at prices as cheap as were possible in Germany. Thus, there arose the great contrast or antagonism of competition, for “Made in Germany” was simply a question of competition. And when the war was over, this question could arise: Now that people have knocked each other's heads in, instead of seeking a solution of existing contrasts, how can we deal with the matter? At this time I could not but believe in the possibility of finding human beings who would understand the contrasts which must be brought forth in another domain. For life depends on contrasts, and can only exist if contrasts are there, interacting with one another. Thus in 1919 one could come to the point of saying: Let us now draw attention to the real contrasts or contra-positions towards which world-historic evolution is tending—those of the economic life, the political life of rights and the spiritual-cultural life—the contra-positions of the threefold social order.

What, after all, was the actual situation when we believed that we must bring the threefold idea into as many human heads as possible? I will only describe it externally today. The important thing would have been to bring the threefold idea into as many heads as possible before the economic consequences ensued which afterwards took place. You must remember when the “Threefold Commonwealth ” was first mentioned, we did not yet stand face to face with the monetary difficulties of today. On the contrary, if the Threefold Commonwealth had been understood at that time, these difficulties could never have occurred. Yet once again we were faced by the inability of human beings to understand such a thing as this in a really practical sense. When we tried to bring the Threefold Commonwealth home to them, people would come and say: “Yes, all that is excellent: we see it perfectly. But, after all, the first thing needful is to counteract the depreciation of the currency.” Ladies and gentlemen, all that one could answer was: “That is contained in the Threefold Order. Set to work with the Threefold Order. That is the only means of counteracting the depreciation of the currency.” People were asking how to do the very thing which the Threefold Commonwealth was meant to do. They did not understand it, however often they declared that they did.

And now the position is such that if we are to speak once more today to people such as you, we can no longer speak in the same forms as we did then. Today another language is necessary: and that is what I want to give you in these present lectures. I want to show you how one must think once more today about these questions, especially if, being young in years, one will still have an opportunity to play one's part in shaping the immediate future.

Thus, on the one hand, we can characterise a certain period—the nineteenth century—in terms of world-historic economic contrasts. But we might also go still farther back and include the time when men first began to think about Political Economy at all. If you take the history of Political Economy you will see that everything before that time took place instinctively. It was only in modern times that there arose that complexity of economic life, in the midst of which men felt it necessary to think about these things.

Now I am speaking, in effect, for students. I am trying to show how students of Economics should find their way into this subject. Let me, therefore, now relate the most essential thing on which it all depends.

You see, the time when men had to begin to think about Political Economy was just the time when they no longer had the thoughts to comprehend such a subject. They simply no longer had the requisite ideas. I will give you an example from Natural Science to indicate that this is so.

We as human beings have our physical bodies, which are heavy just like any other physical bodies. Your physical body will be heavier after a midday meal than before: we could even weigh the difference. That is to say, we partake in the general laws of gravity. But with this gravity, which is the property of all ponderable substances, we could do very little in our human body, we could at most go about the world as automata, certainly not as conscious beings. I have often explained what is essential to any valid concept of these matters. I have often said what man needs for his thinking. The human brain, if we weigh it alone, weighs about 1,400 grammes. If you let the weight of these 1,400 grammes press on the veins and arteries, which are situated at the base of the skull, it would destroy and kill them. You could not live for a single moment if the human brain were pressing downward with its full 1,400 grammes. It is indeed a fortunate thing for man that the principle of Archimedes holds good. I mean that every body loses so much of its weight in water as is the weight of that fluid which it displaces. If this is a heavy body, it loses as much of its weight in water as a body of water of equal size would weigh. The brain swims in the cerebro-spinal fluid, and thereby loses 1,380 grammes: for such is the weight of a body of cerebro-spinal fluid of the size of the human brain. The brain only presses downward on to the base of the skull with a weight of 20 grammes, and this weight it can bear. But if we now ask ourselves: What is the purpose of all this? then we must answer: With a brain which was a mere ponderable mass, we could not think. We do not think with the heavy substance: we think with the buoyancy. The substance must first lose its weight. Only then can we think. We think with that which flies away from the earth.

But we are also conscious in our whole body. How do we become thus conscious? In our whole body there are 25 billions of red blood corpuscles. These 25 billions of red corpuscles are very minute. Nevertheless they are heavy: they are heavy for they contain iron. Every one of these 25 billions of red corpuscles swims in the serum of the blood, and loses weight exactly in accordance with the fluid it displaces. Once again, therefore, in every single blood corpuscle an effect of buoyancy is created—25 billion times. Throughout our body we are conscious by virtue of this upward driving force. Thus we may say: Whatever foodstuffs we consume, they must first, to a very large extent, be divested of their weight: they must be transformed in order that they can serve us. Such is the demand of the living body.

Ladies and gentlemen, to think thus and to regard this way of thinking as essential, is the very thing men ceased to do just at the time when it became necessary to think in terms of Political Economy. Thenceforward they only reckoned with ponderable substances: they no longer thought of the transformation which a substance undergoes in a living organism—as to its weight, for example, through the effect of buoyancy.

And now another thing. If you call to mind your studies of Physics, you will remember the physicist speaks of the “spectrum.” This band of colours is created with the help of the prism: red, orange, yellow, green, blue, indigo, violet. So far (from the red to the violet) the spectrum appears luminous. But, as you know, before the region which shows a luminous effect, what are called the infra-red rays are assumed to exist: and, beyond the violet, the ultra-violet rays. If, therefore, one speaks merely of light, one does not include the totality of the phenomenon: for we must go on to describe how the light is transformed in two opposite directions; we must explain how, beyond the red, light sinks into the element of warmth and, beyond the violet, into chemical effects. In both directions the light, as such, disappears. If, therefore, we give a theory of light alone, we are giving a mere extract. (The current theory of light is in any case not a true one. It is significant that in the very time when mankind had to begin to think consciously of Political Economy, human thinking upon Physics was in such a condition as to result, among other things, in an untrue theory of light).

I have, however, mentioned the matter here with some reason: for there is a valid analogy. Consider for a moment not the economy of peoples, but, let us say, the economy of sparrows or the economy of swallows. They too, after all, have a kind of economy. But this—the economy of the animal kingdom—does not reach far up into the human kingdom, Possibly in the case of the magpie we may indeed speak of a kind of animal capitalism. But what is the essence of animal economics? It is this: Nature provides the products, and the animal as a single creature takes them for him-self. Man does indeed reach down into this animal economy: but he has to emerge from it.

The true human economy may be compared to the part of the spectrum which is visible as light. That which reaches down into Nature would then be comparable with the part of the spectrum which extends into the infra-red. Here, for example, we come into the domain of agriculture, of economic geography and so forth. The science of Economics cannot be sharply defined in this direction: it reaches down into a region which must be grasped by very different methods. That on the one hand.

But on the other hand—just under the influence of the very complicated relations of today—it has gradually come to pass that our economic thinking fails us once more in another direction. Just as light ceases to appear as light, as we go on into the ultraviolet, so does human economic activity cease to be purely economic. I have often characterised how this came about. The phenomenon began only in the nineteenth century. Till then, the economic life was still more or less dependent on the capability and efficiency of the individual human being. A Bank prospered if some individual in it was a thoroughly capable man. Individuals were still of real importance. I have often related, as an amusing example, the story of the ambassador of the King of France who once came to Rothschild. He was trying to raise a loan. Rothschild happened to be in conversation with a leather merchant. When the ambassador of the King of France was announced, he said: “Ask him to wait a little.” The ambassador was terribly upset. Was he to wait, while a leather merchant was in there with Rothschild? When the attendant came out and told him, he simply would not believe his ears. “Go in again and tell Herr Rothschild that I am here as the ambassador of the King of France.” But the attendant brought the same answer again: “Will you kindly wait a little?” Thereupon he himself burst into the inner room: “I am the ambassador of the King of France!” Rothschild answered: “Please sit down: will you take a chair?” “Yes, but I am the ambassador of the King of France!” “Will you take two chairs!”

You see, what took place in the economic life in that time was placed consciously within the sphere of the human personality. But things have changed since then: and now, in the great affairs of economic life, very little indeed depends on the single personality. Human economic working has to a very large extent been drawn into what I am here comparing with the ultra-violet. I refer to the workings of Capital as such. Accumulations of Capital are active as such. Over and above the economic, there lies an ultra-economic life, which is essentially determined by the peculiar power inherent in the actual masses of Capital. If, therefore, we wish to understand the economic life of today, we must regard it thus: It lies in the midst between two regions, of which the one leads downward into Nature and the other upward into Capital. Between them lies the domain which we must comprehend as the economic life properly speaking.

Now from this you will see that men did not even possess the necessary concept to enable them to define the science of Economics and set it in its proper place within the whole domain of knowledge. For, as we shall presently see, it is a curious thing: but this region alone (which we have compared with the infra-red)—this region which does not yet reach up into the sphere of economics properly speaking—this alone is intelligible by the human intellect. We can consider, with ordinary thinking, how to grow oats or barley and so forth: or how best to obtain the raw products in mining. That is all that we can really think about with the intellect which we have grown accustomed to apply in the science of modern time.

This is a fact of immense significance. Think back for a moment to what I have just indicated as the concept which we need in science. We consume heavy substances as food. That they can be of use to us, depends upon the fact that they continually lose weight within us. That is to say, within the body they are totally transformed. But that is not all. They are changed in a different way in each organ: it is a different change in the liver from that in the brain or in the lung. The organism is differentiated and the conditions are different for each substance in each single organ. We have a perpetual change of quality along with the change from organ to organ.

Now, it is approximately the same when, within a given economic domain, we speak of the value of a commodity. It is nonsense to define some substance as carbon, for example, and then to ask: How does it behave inside the human body? The carbon, even as regards its weight, becomes something altogether different from what it is here or there in the outer world. Likewise, we cannot simply ask: What is the value of a commodity? The value is different according as the commodity is lying in a shop, or is transported to this place or that.

Thus, our ideas in Economics must be altogether mobile. We must rid ourselves of the habit of constructing concepts capable of definition once and for all. We must realise that we are dealing with a living process, and must transform our concepts with the process. But what the economists have tried to do is to grasp such things as Value, Price, Production, Consumption and so forth with ideas such as they had in ordinary science. And these were of no use.

Fundamentally speaking, therefore, we have not yet attained a true science of Economics. With the concepts to which we have grown accustomed hitherto, we cannot answer the question, for instance: What is Value? Or, what is Price? Whatever has Value must be considered as being in perpetual circulation: like-wise we must consider the Price, corresponding to a Value, as something in perpetual circulation. If you simply ask: What are the physical properties of carbon? you will still know absolutely nothing of what goes on in the lung, for example, although carbon is also present in the lung. For its whole configuration becomes quite different in the lung. In the same way, iron, when you find it in the mine, is something altogether different from what it is in the economic process. Economics is concerned with something quite different from the mere fact that it “is” iron. It is with these unstable, constantly changing factors that we must reckon.

Forty-five years ago, I came into a certain family. They showed me a picture. I think it had been lying up in a loft for about fifty years. So long as it lay there, and no one was there who knew any more about it than that it was the kind of thing one throws away in a corner of the loft, it had no value in the economic process. Once its value had been recognised, it was worth 30.000 gulden—quite a large sum of money in those days. What did the value depend on in this case? Purely and simply on the opinion men formed of the picture. The picture had not been removed from its place, only men had arrived at different thoughts about it. And so in no case does it depend on what a thing immediately “is.” The conceptions of Economics are the very ones which you can never evolve by reference to the mere external reality. No, you must always evolve them by reference to the economic process as a whole: and within this process each thing is perpetually changing. Therefore we must speak of the economic process of circulation before we can arrive at such things as Value, Price and so forth. In the economic theories of today, you will observe that they generally begin with definitions of Value and Price. That is quite wrong. The first thing needful is to describe the economic process. Only then do those things emerge with which the theorists of today begin.

Now, in the year 1919, when everything had been destroyed, one might have thought that people would realise the need to begin with something fresh. Alas, it was not the case. The small number of people who did believe that there must be a new beginning, very soon fell into the comfortable reflection: “After all, there is nothing to be done.” Meanwhile, the great calamity was taking place: the devaluation of money in the Eastern and Middle countries of Europe, and with it a complete revolution in the social strata; for it goes without saying that with each progressive devaluation of money, those who live by what I have here compared to the ultra-violet must be impoverished. And this is happening to-day, far more perhaps than people are yet aware. And it will happen, more and more completely. Here, above all, we are directed to the idea of the living, social organism. For it is evident that this devaluation of money is determined by the old State frontiers and limitations. The old State frontiers and limitations are interfering with the economic process. The latter must indeed be understood, but we must first gain an understanding of the social organism. Yet all the systems of Political Economy—from Adam Smith to the most modern—reckon, after all, with small isolated regions as if they were complete social organisms. They do not realise that, even if one is only using an analogy, the analogy must be correct. Have you ever seen an elaborate or full-grown organism, such as the human being, for instance, in this drawing—and immediately beside it a second one, and here a third, and so forth? (see Diagram 1) They would look quite pretty—these human organisms, sticking to one another in this way: and yet with elaborate and full-grown organisms there is no such thing. But with the separate States and Countries, this is the case. Living organisms require an empty space around them—empty space between them and other living organisms. You could at most compare the single States with the cells of the organism. It is only the whole Earth which, as a body economic, can truly be compared with a living organism. This ought surely to be taken into account. It is quite palpable, ever since we have had a world-economy, that the single States or Countries are at most to be compared with cells.

The whole Earth, considered as an economic organism, is the social organism.

Yet this is nowhere being taken into account. It is precisely owing to this error that the whole science of Political Economy has grown so remote from reality. People will seek to establish principles that are only to apply to certain individual cells. Hence, if you study French political economy, you will find it differently constituted from English or German or other political economies. But as economists, what we really need is an understanding of the social organism in its totality.

So much for today by way of introduction.

Ladies and Gentlemen,

It is precisely in this sphere of Political Economy that the first conceptions and ideas which we have to develop cannot but be a little complicated—and for a perfectly genuine reason. For you must imagine the economic process, considered even as a world-economy, as a thing of perpetual movement. As the blood flows through the human being, so do goods, as merchandise or commodities, flow by every conceivable channel through the whole economic body. And we must conceive, as the most important thing within this economic process, all that takes place in buying and selling. That, at least, is true of the economic life of today. Whatever else there may be—and we shall of course have to consider the most varied impulses contained in the economic life—whatever else there may be, the subject of Economics comes home to a man directly [when/if] he has anything to buy or sell. In the last resort the instinctive thinking of every naive man on economic matters culminates in the process taking place between buyer and seller. Fundamentally, this is what it all comes to.

Consider now: What is it that counts when buying and selling are considered in the economic process? The thing that a man cares about will always be the price of a commodity, the price of the piece of goods concerned. In the last resort all the most important economic considerations really merge in this question of Price. All the impulses and forces that are at work in economics culminate at length in Price. We shall, therefore, first have to consider the problem of Price, but it is by no means a simple problem. You need only consider the most simple case: At a given place, A, we have a certain commodity: at place A it has a certain price. But suppose it is not bought there but is first transported to another place, B. Our endeavour will then be to add to the price whatever transport charges had to be paid from A to B. Thus the Price changes in the process of circulation. There we have the simplest—if I may put it so, the flattest—instance: but of course there are far more complex cases.

Assume, for instance, that at a given date a house in a large town costs so much. Fifteen years later the same house may perhaps cost six times as much: nor need we imagine that the main cause of the rise in price lies in the devaluation of money. On the contrary, let us assume that this is not the case. The rise in price may simply lie in this: that in the meantime many other houses have been built around it: the other buildings, now situated in its neighbourhood, greatly increase the value of the house. Nay, there may be ten or fifteen other circumstances accounting for the rise in price. Truth to tell, we are never in a position to apply some general statement to the single case—to say, for instance: The price of houses, or railways, or cereals, can he uniquely determined, at a given place, from certain specified conditions. To begin with, we can say little more than this: that we must observe how the price fluctuates with place and time. Then, perhaps, we can trace some of the conditions whereby at a given place a given price actually emerges. But there can be no such thing as a general definition stating how the price of a thing is composed: that is an impossibility. Again and again one is astonished to find Price discussed in the ordinary works on Economics, as though it were possible to define it. We simply cannot define it, for a price is always concrete and specific. Altogether, in economic matters, it is impossible to get anywhere near the realities by definitions.

I once witnessed the following case: In a certain district land is comparatively cheap. There is a Society with a more or less famous man in its midst. The Society buys up all the cheap plots of land, and prevails upon the famous man to build himself a house there. Then the plots of land are offered for sale. They can be offered at a considerably higher price than they were bought for, for the simple reason that the famous man has been persuaded to build himself a house there.

Such instances will show you how indeterminate are the conditions on which the price of a thing depends in the economic process. Of course, you may say, such developments must be counteracted. Land reformers and people with similar aims try to resist these things. Through various artificial measures they desire to establish a kind of just price for all things. Of course one can do so: but, economically considered, the price is not changed thereby. In the above instance, for example, when the plots of land are sold at a higher price, we can take the money away again, in the form of a high property-tax. Then the State will pocket the difference: but the reality remains as before. In reality the increase in price has taken place just the same. You can take preventive measures, they will but obscure the issue. The price will still be what it would have been without them. You only bring about a redistribution: and it is no true economic thinking to say that the land has not increased in price during the last ten years, simply because you have obscured the matter by artificial measures. Economic Science must stand firmly on its feet, on a basis of reality. In Economics we can only speak of the conditions obtaining at a given time and at the actual place to which we are referring. Needless to say, anyone who desires the progress of mankind will still come to the conclusion that such and such things are to be changed. But, to begin with, things must be observed in their immediate reality at the particular moment. From all this you will see how impossible it is to approach such a concept as this—the most important in Economics (I mean the concept of Price)—by seeking to grasp it with sharply defined notions. In the science of Economics we can make no progress by this means: quite other ways must be adopted. We must observe the economic process itself.

Yet the problem of Price is of cardinal importance: all our efforts must be directed to this. We must observe the economic process, and try, as it were, to catch the point where (at any given place and time) the actual price of a given thing results from all the underlying economic causes.

Now if you take the ordinary economic doctrines, you will generally find three factors mentioned—three factors, through the interplay of which the whole economic process is supposed to take its course. They are: Nature, human Labour and Capital. It is true that we can say to begin with: Tracing the economic process we find these three: that which comes from Nature, that which is achieved by human Labour and that which is derived from, or directed by means of, Capital. But if we take Nature, Labour and Capital simply side by side in this way, we shall not grasp the economic process in a living way. On the contrary, we shall be led to many one-sided points of view—a fact to which the history of economic theory bears eloquent witness. Some say that all Value is inherent in Nature and that no especial value is added to the substance of natural objects by human Labour. Others believe that all true economic Value is really impressed on a piece of goods, on a commodity, by the Labour which, as they some-times say, is crystallised in the commodity. Or again, the moment you place Capital and Labour merely side by side, you will find persons saying on the one hand: In reality it is Capital which alone makes Labour possible and the wages of Labour are paid out of the accumulated Capital. On the other side it is said: No, the only thing that produces real Value is Labour, and all that Capital obtains for itself is the surplus value abstracted from the yield of Labour.

Ladies and gentlemen, the fact is this: Consider the things from the one point of view, and the one is right: consider them from the other point of view, and the other is right. Over against the reality, such ways of thinking remind one of many a method in book-keeping—put the item here and this will be the result: put it there, and that will. One can speak with strong apparent reasons of surplus value, saying that this is abstracted from the wages of Labour and appropriated by the capitalist to himself. But one can say with equally good reasons, that, in the whole connection of economic life, everything is due in the first place to the capitalist, who can only pay his workers from what he has available for the wages of Labour. For both these points of view there are very good and very bad reasons. In fact, none of these ways of thinking comes near the reality of economics. Excellent as a basis for agitations, they are of no importance in a serious economic science. Quite other foundations must be found if we would hope for progress in economic life.

Up to a certain point, of course, all these systems have their justification. Adam Smith, for instance, sees the real, original value-forming factor in the work or labour that is expended on things. Here again excellent reasons can be brought forward in support of this view. Such a man as Adam Smith certainly did not think in a stupid or nonsensical way. Nevertheless, here again there is the underlying idea of taking hold of something static and giving it a definition, whereas in the real economic process things are in perpetual movement. It is comparatively simple to form concepts of the phenomena of Nature—even the most complicated—as compared with the ideas which we require for a science of Economics. Infinitely more complicated, variable and unstable are the phenomena in Economics than in Nature—more fluctuating, less capable of being grasped with any defined or hard and fast concepts. In effect, an altogether different method must be adopted. You will only find this method difficult in the first lessons: but as a result of it—you will presently see—we shall discover the only real and possible foundation for a science of Economics.

To begin with, we may say that to this economic process, which we must now consider, three things contribute: Nature, human Labour and (thinking, to begin with, of the purely external economic aspect) Capital. To begin with, ladies and gentlemen!

But lest us consider at once the middle one of these three, namely, human Labour. Let us try to form a conception of it by going down, as I indicated yesterday, into the sphere of animal life. Let us observe, instead of the economy of peoples, the economy of sparrows, the economy of swallows.

Here, you see at once, Nature is the basis of economy. True, even the sparrow has to do a kind of work: at the very least, he must hop about to find his food. Sometimes he has to hop about a very great deal in the course of a day to find what he requires. The swallow building her nest also has to do a kind of work, and she again has much to do to build it. Nevertheless, in the true economic sense, we cannot call this “work,” we cannot call it “Labour.” We shall make no progress in economic ideas if we call this labour. For if we observe more closely, we shall have to admit: The sparrow and the swallow are organised precisely in such a way as to do the very things—fulfil the very functions—which they fulfil in finding their food, etc. They simply could not be healthy if they had no opportunity to move about in this way. It is part and parcel of their organisation: it belongs to them, no less than their legs and wings. In seeking to build up economic concepts, we can therefore leave out of account what we might here call a mere “apparent Labour,” a “semblance of Labour.” In such cases Nature is taken just as she is, and the single creature, merely to satisfy its own needs or those of its nearest kin, carries out the corresponding “semblance of Labour.” If, however, we wish to determine what is “Value” or “a Value” in the true economic sense, we must disregard this apparent Labour. And this must be our first object—to approach a true concept of “economic value.”

Consider the animal economy once more. There we may say: Nature alone is the value-forming factor. If we now ascend to man, that is, to political economy, it is true we still have—from the side of Nature—the same starting-point of “Nature Value.” But the moment human beings no longer provide merely for themselves or for their nearest kindred, but for one another, “human Labour,” properly so called, comes into account. Indeed, the moment a man no longer uses the Nature-products for himself, but stands in some relation to other human beings—if only to the extent of bartering his goods with theirs—what he then does becomes, in relation to Nature, “human Labour.” Here we arrive at the one aspect of Value in Political Economy. It arises thus: Human Labour is expended on the products of Nature, and we have before us in economic circulation Nature-products transformed by human Labour. It is only here that a true economic value first arises. So long as the Nature-product is untouched, at the place where it is found in Nature, it has no other value than it has, for instance, for the animals. But the moment you take the very first steps to put the Nature-product into the process of economic circulation, the Nature-product so transformed begins to have economic value. We may therefore characterise this economic value as follows: “An economic value, seen from this one aspect, is a Nature-product transformed by human Labour.” Whether the human Labour consists in digging or chopping, or merely moving a product of Nature from one place to another, is irrelevant. If we are seeking the determination of Value in general, then we must simply say: “One value-forming factor is human Labour, transforming a Nature-product so as to pass it into the economic process of circulation.”

If you consider this, you will see at once how very fluctuating is the value of a piece of goods circulating in the economic life. For Labour is something always present, perpetually being expended on the goods. You cannot really say what Value is—you can only say: Value appears in a given place and at a given time, inasmuch as human Labour is transforming some product of Nature. That is where Value emerges. To begin with, we cannot and will not try to define Value: We simply point out the place where it appears. I will put this down diagrammatically. (see Diagram 2) Here on the left side of the drawing we have Nature as it were in the background. Human Labour approaches Nature: what then becomes visible—appearing, as it were, through the interplay of Nature and human Labour—that is the one aspect of economic value? It is by no means a faulty image if we say, for instance: Look at a black surface or at anything black through a luminous medium and you will see it blue. According as the luminous medium is thick or thin, you will see various shades of blue: according as you shift it, its density will vary: it is for ever fluctuating. So it is

with Value in the economic life, it is really none other than the appearance of Nature through human Labour. And that, too, is always fluctuating.

To begin with, we are gaining a few abstract indications and little more: but these will give us our bearings during the next few days and help us to reach more concrete things. After all, you are accustomed to this: for in all sciences one takes what is most simple to begin with.

You see, labour as such has no purpose at all in Economics. A man may chop wood, or he may get up on to a wheel like this. (There are such wheels for the benefit of fat people who go on climbing from step to step; the wheel goes round under them, and so they hope to get thinner.) The man who treads this wheel may be doing just as much work as the one who chops wood. To consider Labour as Marx did, when he said that we should look for its equivalent in the amount that is consumed in the human organism by the Labour, is a colossal piece of nonsense. For the same amount is consumed whether a man chops wood or dances about on this wheel. How much is done in the human being is not the point in Economics. We have already seen how the subject of Economics borders on uneconomic matters. Purely economically speaking, it is quite unjustifiable to point to the fact that Labour uses up the human being's forces. I mean it is unjustifiable in this connection, where, to begin with, we wish to establish a concept of Labour in the sense of Economics. Indirectly it is of great significance, for on the other side the needs of men have to be cared for. But Marx's way of thinking at this point is a colossal piece of nonsense.

What do we need in order to take hold of “Labour” in the economic process? It is necessary, to begin with—quite apart from the human being—to observe how the Labour enters into the economic process. This labour (of the man on the wheel) does not enter it at all: it simply adheres to the man himself. The chopping of wood, on the other hand, does enter the economic process. The one thing that matters is: How does the Labour enter the economic process? The answer is this: Nature is everywhere transformed by human Labour and only in so far as Nature is transformed by human Labour do we create real economic values on this one side. If, for instance, we find it necessary for our bodily health, having worked upon Nature in some way, to dance a little or to do Eurhythmy in the intervals, all this may of course be judged from another standpoint: but what we do in the intervals cannot be described as work or Labour in the economic sense, nor can it be regarded as in any way a factor creating economic values. Seen from another side, it may well be creating values, but we must first get our concepts pure and clear concerning economic values as such.

Now there is a second, altogether different, possibility for economic values to arise. It is this: We turn our attention to labour as such: we take labour as the given thing. To begin with, as you have seen just now, labour, economically speaking, is some-thing neutral and irrelevant. But it becomes an economic value-creating factor the moment we let it be directed by the intelligence of man. I must now speak in a somewhat different sense from before. Even in the most far-fetched cases, you can imagine some-thing that would otherwise not be Labour at all being transformed into real Labour by human intelligence. If it occurs to a man, in order to get thinner, to set up that apparatus which we spoke of in his bedroom and practise on it, there will be no economic value in it. But, if somebody winds a rope round the wheel and uses it to drive some machine, the moment this is done, that which would not otherwise be Labour at all, in the economic sense, is turned to good account by the Spirit. Incidentally the fellow who treads the wheel will get thinner just the same, but the essential point is this: Through the Spirit—by intelligence, reflection, perhaps even speculation—Labour is given a certain direction: the various units of Labour are brought into certain mutual relations, and so on.

Thus, we may say: Here we have the second aspect of the value-forming factors in Economics. Here Labour stands in the background, and before it is the Spirit which directs the Labour. Labour shines through the Spirit, and this creates once more an economic value. As you will soon see, these two aspects are present everywhere. Having shown in this diagram (left) how an economic value emerges when we have Nature appearing through Labour—if we now wish to represent diagrammatically what we have just explained, we shall have to put Labour in the background and in the front of it the spiritual, which gives it a certain modification (right).

These are the two essential poles of the economic process. There are indeed no other ways in which economic values are created. Either Nature is modified by Labour, or Labour is modified by Spirit (human intelligence). The outer expression of the Spirit, in this connection, is in the manifold formations of Capital. Economically, the Spirit must be looked for in the configurations of Capital: these at any rate are its outward expression. We shall realise the facts more clearly when we come to consider Capital as such, and then Capital as a monetary medium.

So you see there can be no question of arriving at a definition of economic value. Once more you need only consider on how many circumstances—on the cleverness or stupidity of how many different people—the modification of Labour by the Spirit in any given instance will depend. There is every kind of fluctuating condition. Nevertheless, this fact will always be in evidence: The value-creating factors in the economic process will always be found at these two opposite poles.

Suppose now we find ourselves at any given point within the economic process. The economic process takes its course in the activities of buying and selling. Buying and selling are essentially an exchange of values: there is, in fact, no other exchange than that of values. Properly speaking, it is wrong to speak of an exchange of goods. The “goods ” that play a part in the economic process—whether they appear as modified products of Nature or modified Labour—are always values. It is always the values that are exchanged. Whenever a process of buying and selling takes place, values are exchanged. Now what is it that emerges in the economic process when value and value, as it were, impinge on one another in the process of exchange? It is Price. Wherever Price emerges, it is always through the impact of value on value in the economic process. For this reason you cannot think truly about Price if you have in mind the exchange of mere goods. If you buy an apple for a penny, you may say that you are exchanging one piece of goods for another—the apple for the penny. But you will make no progress in economic thinking along these lines. For the apple has been picked somewhere and then transported, and it may well be that various other things have been done around it. All this is Labour which has modified it. What you are dealing with is not an apple but a Nature-product transformed by human Labour, representing an economic value. In Economics we must always take our start from values. Similarly, the penny represents not a piece of goods but a value, for after all (or so at any rate we must suppose) the penny is but the sign for the fact that there is present, in the man who has to buy the apple, another value which he exchanges for it.

Today I am anxious for you to get a clear insight into this fact: In Economics we must not speak of “goods ” but of “values” as the elementary thing. It is wrong to try to consider Price in any other way than by envisaging the interplay of values. Value set against value gives you Price. And if, as we saw, value itself is a fluctuating thing, incapable of definition, may we not say that when you exchange value for value, Price which arises in the process of exchange is a fluctuating thing raised to the second power?

From all these things you may see how futile it is to try to take hold of values and prices with the idea of finding a firm and fixed ground in Economics: and it is still more futile, if your object is to influence the economic process in practice. Something altogether different is needful—something that lies behind all these things. You may see this from a very simple consideration.

Consider this for a moment: Nature appears to us through human Labour. Suppose we obtain iron at a given place under extraordinarily difficult conditions. The value that is thus produced through human Labour is a modified object of Nature. If at a different place iron is to be produced under far easier conditions, it may happen that an altogether different value will result. You see, therefore, that we cannot grasp the reality in the value itself: we must go behind the value. We must go back to that which creates the value: here alone can we gradually find our way to the more constant conditions on which we can exercise a direct influence. The moment you have brought the value into economic circulation, you must let it fluctuate with the economic organism as a whole. Consider the finer constitution of a blood corpuscle: it is different in the head and in the heart and in the liver. You cannot say: We will now seek the true definition of blood. The most you can do is to consider what are the more favourable foodstuffs in the one case and in the other. Likewise there is no point in talking round and round about Value and Price. The important thing is to go back to the primary factors, back to that which, if rightly formed, will actually bring forth the proper price. The proper price will then emerge of its own accord.

In the study of Economics it is quite impossible to stop short at definitions of Value and Price. We must always go back to the real origins whence the economic process is nourished, on the one hand, and by which, on the other hand, it is regulated—Nature on the one hand, Spirit on the other.

In all economic theories of modern time, this has been the difficulty: they have always tried to hold fast at the outset that which is really fluctuating. As a result, one who can see through these things finds himself confronted not with wrong definitions—scarcely any of them are wrong: they are generally quite right! (Though, it is true, one must make an exceedingly bad shot to say: The amount of Labour corresponds to that which has been expended and has to be restored in the human body: it corresponds, therefore, to the expenditure of substance. Such a statement is really a howler, and he who makes it has failed to see the simplest things). No, the point is that even men of considerable insight, in developing their theory of Economics, have stumbled again and again over this obstacle: They have tried to observe at rest things that are always in a state of flux. For the things of Nature one can and must often do so: there, however, it suffices to observe the state of rest in a quite different way: and if we have to observe a state of movement, all we have come to do in the modern science of Nature is to regard it as though it were composed of a multitude of tiny states of rest and jump from one to the other. For when we integrate, we regard even movement as if it were composed of states of rest.

On the model of such a science we cannot study the economic process. This, therefore, must be said: The first thing needful in grappling with the science of Economics is to consider how, on the one hand, Value appears inasmuch as Nature is transformed by human Labour—Nature is seen through human Labour—while, on the other hand, Value appears inasmuch as Labour is seen through the Spirit. These two origins of Value are the real polar opposites: they differ as, in the spectrum, the one—the luminous or yellow pole—differs from the other—the blue or violet. You may well hold fast this picture: As in the spectrum the warm colours appear on the one side, so on the one side there appears the Nature-value which will show itself more in the formation of rents. On this side we perceive Nature transformed by Labour. On the other side there appear to us instead those values which are translated into Capital: here we see Labour transformed by the Spirit. Then, indeed, Price can arise, inasmuch as values of the one pole impinge on values of the other. Or again, the several values within the one pole come into mutual interaction. The point is that every time, wherever it is a question of price-formation, there will be a mutual interaction of value and value. We must therefore disregard everything to do with the substances and materials themselves; we must look away from all this and begin by seeing how values are formed, on the one side and on the other. Then we shall be able to press forward to the problem of Price.

Ladies and Gentlemen,

In Economic Science, as I explained yesterday, it is essential to take hold of something that is for ever fluctuating—namely: the circulation of values and the mutual interplay of fluctuating values in the forming of Price. Bearing this in mind, you say to yourselves: Our first need is to discover what is really the proper form of the science of Economics. For a thing that fluctuates cannot be taken hold of directly. There is no real sense in trying to take hold by direct observation of something that is for ever fluctuating. The only sensible procedure is to consider it in connection with what really lies beneath it.

Let us take an example. For certain purposes in life we use a thermometer. We use it to read the degrees of temperature, which we have grown accustomed in a certain sense to compare with one another. For instance, we estimate 20° of warmth in relation to 5° and so on. We may also construct temperature curves. We plot the temperatures for instance during the winter, followed by the rising temperatures in summer. Our curve will then represent the fluctuating level of the thermometer. But we do not come to the underlying reality till we consider the various conditions which determine the lower temperature in the winter, the higher temperature in the summer months, the temperature in one district, the different temperature in another, and so forth. We only have something real in hand, so to speak, when we refer the varying levels of the mercury to that which underlies them. To record the readings of the thermometer is in itself a mere statistical procedure. And in Economics it is not much more than this when we merely study prices and values and so forth. It only begins to have a real meaning when we regard prices and values much as we regard the positions of the mercury—as indications, pointing to something else. Only then do we arrive at the realities of economic life. Now this consideration will lead us to the true and proper form of Economic Science.

By ancient usage, as you are probably aware, the sciences are classified as theoretical and practical. Ethics, for instance, is called a practical science, Natural Science a theoretical one. Natural Science deals with that which is; Ethics with that which ought to be. This distinction has been made since ancient time: the Sciences of that which is, the Sciences of that which should be. We mention this here only to help define the concept of Economic Science. For we may well ask ourselves this question: Is Economics a science of what is, as Lujo Brentano, for instance, would assert? Or is it a practical science—a science of what ought to be? That is the question.

Now, if we wish to arrive at any knowledge in Economics it is undoubtedly necessary to make observations. We have to make observations, just as we must observe the readings of the barometer and thermometer to ascertain the state of air and warmth. So far, Economics is a theoretical science. But at this point, nothing has yet been done. We only achieve something when we are really able to act under the influence of this theoretical knowledge.

Take a special case. Let us assume that by certain observations (which, like all observations, until they lead to action, will be of a theoretical nature) we ascertain that in a given place, in a given sphere, the price of a certain commodity falls considerably, so much so as to give rise to acute distress. In the first place, then, we observe—“theoretically,” as I have said—this actual fall in price. Here, so to speak, we are still only at the stage of reading the thermometer. But now the question will arise: What are we to do if the price of a commodity or product falls to an undesirable extent? We shall have to go into these matters more closely later on: for the moment I will but indicate what should be done and by whom, if the price of some commodity shows a considerable decrease. There may be many such measures, but one of them will be to do something to accelerate the circulation, the commerce or trade in the commodity in question. This will be one possible measure, though naturally it will not be enough by itself. For the moment, however, we shall not discuss whether it is a sufficient, or even the right measure to take. The point is: If prices fall in such a way, we must do something of a kind that can increase the turnover [Umsatz].

It is in fact similar to what happens when we observe the thermometer. If we feel cold in a room, we do not go to the thermometer and try by some mysterious device to lengthen out the column of mercury. We leave the thermometer alone and stoke the fire. We get at the thing from quite a different angle; and so it must be in Economics too. When it comes to action, we must start from quite a different angle. Then only does it become practical. We must answer, therefore: The science of Economics is both theoretical and practical. The point will be how to bring the practical and the theoretical together.

Here we have one aspect of the form of Economic Science. The other aspect is one to which I drew attention many years ago, though it was not understood. It was in an essay I wrote at the beginning of the century, which at that time was entitled: “Theosophy and the Social Question.”¹ It would only have had real significance if it had been taken up by men of affairs and if they had acted accordingly. But it was left altogether unnoticed; consequently I did not complete it or publish any more of it. We can only hope that these things will be more and more understood, and I trust these lectures will contribute to a deeper understanding. To understand the present point, we must now insert a brief historical reflection.

Go back a little way in the history of mankind. As I pointed out in the first lecture, in former epochs—nay, even as late as the 15^th or 16^th century—economic questions such as we have today did not exist at all. In oriental antiquity economic life took its course instinctively, to a very large extent. Certain social conditions obtained among men—caste-forming and class-forming conditions—and the relations between man and man which arose out of these conditions had the power to shape instincts for the way in which the individual must play his particular part in economic life. These things were very largely founded on the impulses of the religious life, which in those ancient times were still of such a kind as to aim simultaneously at the ordering of economic affairs. Study oriental history: you will see there is nowhere a hard and fast dividing line between what is ordained for the religious life and what is ordained for the economic. The religious commandments very largely extend into the economic life. In those early times, the question of labour, or of the social circulation of labour-values did not arise. Labour was performed in a certain sense instinctively. Whether one man was to do more or less never became a pressing question, not at any rate a pressing public question, in pre-Roman times. Such exceptions as there may be are of no importance, compared to the general course of human evolution. Even in Plato we find a conception of the social life wherein the performance of labour is accepted as a complete matter of course. Only those aspects are considered which Plato beholds as Wisdom-filled ethical and social impulses, excluding the performance of labour, which is taken for granted.

But in the course of time this became more and more different. As the immediately religious and ethical impulses became less effective in creating economic instincts, as they became more restricted to the moral life, mere precepts as to how men should feel for one another or relate themselves to extra-human powers, there arose more and more the feeling in mankind which, pictorially stated, might be thus expressed: “Ex cathedra, or from the pulpit, nothing whatever can be said about the way a man should work!” Only now did Labour—the incorporation of Labour in the social life—become a question.

Now this incorporation of Labour in the social life is historically impossible without the rise of all that is comprised in the term “law” or “right.” We see emerge at the same historical moment the assignment of value to Labour in relation to the individual human being and what we now call law. Go back into very ancient times of human history and you cannot properly speak of law or rights as we conceive them today. You can only do so from the moment when the Law becomes distinct from the “Commandment.” In very ancient times there is only one kind of command or commandment, which includes at the same time all that concerns the life of Rights. Subsequently, the “Commandment ” is restricted more to the life of the soul, while Law makes itself felt with respect to the outer life. This again takes place within a certain historic epoch, during which time definite social relationships evolve. It would take us too far afield to describe all this in detail, but it is an interesting study—especially for the first centuries of the Middle Ages—to see how the relationships of Law and Rights on the one hand, and on the other those of Labour, became distinct from the religious organisations in which they had hitherto been more or less closely merged. I mean, of course, religious organisations in the wider sense of the term.

Now this change involves an important consequence. You see, so long as religious impulses dominate the entire social life of man-kind, human Egoism does no harm. This is a most important point, notably for an understanding of the social and economic life. Man may be never so selfish; if there is a religious organisation (and these, be it noted, were very strict in certain districts in oriental antiquity) such that in spite of his egoism the individual is fruitfully placed in the social whole, it will do no harm. But Egoism begins to play a part in the life of nations the moment human Rights and Labour emancipate themselves from other social impulses or social currents. Hence, during the historical period when Labour and the life of legally determined Rights are becoming emancipated, the spirit of humanity strives as it were unconsciously to come to grips with Egoism, which now begins to make itself felt and must in some way be allowed for in the social life. And in the last resort, this striving culminates in nothing else than modern Democracy—the sense for the equality of man—the feeling that each must have his influence in determining legal Rights and in determining the Labour which he contributes.

Moreover, simultaneously with this culmination of the emancipated life of Rights and human labour, another element arises which—though it undoubtedly existed in former epochs of human evolution—had quite a different significance in those times owing to the operation of religious impulses. In European civilisation, during the Middle Ages, it existed only to a very limited degree, but it reached its zenith at the very time when the life of Rights and Labour was emancipated most of all. I refer to the Division of Labour.

You see, in former epochs the division of labour had no peculiar significance. It too was embraced in the religious impulses. Everyone, so to speak, had his proper place assigned to him. But it was very different when the democratic tendency united with the tendency to division of labour—a process which only began in the last few centuries and reached its climax in the nineteenth century. Then the division of labour gained very great significance.

For the division of labour entails a certain economic consequence. We shall yet, of course, have to consider its causes and the course of its development. To begin with, however, if we think it abstractly to its conclusion, we must say that in the last resort it leads to this: No one uses for himself what he produces. Economically speaking, what will this signify? Let us consider an example.

Suppose there is a tailor, making clothes. Given the division of labour, he must, of course, be making them for other people. But he may say to himself: I will make clothes for others and I will also make my own clothes for myself. He will then devote a certain portion of his labour to making his own clothes, and the remainder—by far the greater portion—to making clothes for other people. Well, superficially considered, one may say: It is the most natural thing in the world, even under the system of division of labour, for a tailor to make his own clothes and then go on working as a tailor for his fellows. But, economically, how does the matter stand? Through the very fact that there is division of labour, and every man does not make all his own things for himself—through the very fact that there is division of labour and one man always works for another, the various products will have certain values and consequently prices. Now the division of labour extends, of course, into the actual circulation of the products. Assuming, therefore, that by virtue of the division of labour, extending as it does into the circulation of the products, the tailor's products have a certain value; will those he makes for himself have the same economic value? Or will they possibly be cheaper or more expensive? That is the most important question. If he makes his own clothes for himself one thing will certainly be eliminated. They will not enter into the general circulation of products. Thus what he makes for himself will not share in the cheapening, due to the division of labour. It will, therefore, be dearer. Though he pays nothing for it, it will be more expensive. For on those products of his labour which he uses for himself, it is impossible for him to expend as little labour—compared to their value—as he expends on those that pass into general circulation.

Well, I admit, this may require a little closer consideration, nevertheless it is so. What one produces for oneself does not enter into the general circulation which is founded on the division of labour. Consequently it is more expensive. Thinking the division of labour to its logical conclusion, we must say: A tailor, who is obliged to work for other people only, will tend to obtain for his products the prices which ought to be obtained. For himself, he will have to buy his clothes from another tailor, or rather, he will get them through the ordinary channels: he will buy them at the places where clothes are sold.

These things considered, you will realise that the division of labour tends towards this conclusion: No one any longer works for himself at all. All that he produces by his labour is passed on to other men, and what he himself requires must come to him in turn from the community. Of course, you may object: If the tailor buys his suit from another tailor, it will cost him just as much as if he made it for himself: the other tailor will not produce it any more cheaply nor more expensively. But if this objection were true, we should not have division of labour—or at least the division of labour would not be complete. For it would mean that the maximum concentration of work, due to the division of labour, could not be applied to this particular product of tailoring. In effect, once we have the division of labour, it must inevitably extend into the process of circulation. It is in fact impossible for the tailor to buy from another tailor; in reality he must buy from a tradesman and this will result in quite a different value. If he makes his own coat for himself, he will “buy” it from himself. If he actually buys it, he buys it from a tradesman. That is the difference. If division of labour in conjunction with the process of circulation has a cheapening effect, his coat will, for that reason, cost him less at the tradesman's. He cannot make it as cheaply for himself.

To begin with, let us regard this as a line of thought that will lead us to the true form of Economic Science. The facts themselves will, of course, all of them, have to be considered again later.

Meanwhile it is absolutely true—and indeed self-evident—that the more the division of labour advances, the more it will come about that one man always works for the rest—for the community in general—and never for himself. In other words, with the rise of the modern division of labour, the economic life as such depends on Egoism being extirpated, root and branch. I beg you to take this remark not in an ethical but in a purely economic sense. Economically speaking, egoism is impossible. I can no longer do anything for myself; the more the division of labour advances, the more must I do everything for others.

The summons to altruism has, in fact, come far more quickly through purely outward circumstances in the economic sphere than it has been answered on the ethical and religious side. This is illustrated by an easily accessible historical fact.

The word “Egoism,” you will find, is a pretty old one, though not perhaps in the severe meaning we attach to it today. But its opposite—the word “Altruism,” “to think for another ”—is scarcely a hundred years old. As a word, it was coined very late. We need not dwell overmuch on this external feature, though a closer historical study would confirm the indication. But we may truly say: Human thought on Ethics was far from having arrived at a full appreciation of altruism at a time when the division of labour had already brought about its appreciation in the economic life. Taking it, therefore, in its purely economic aspect, we see at once the further consequences of this demand for altruism. We must find our way into the true process of modern economic life, wherein no man has to provide for himself, but only for his fellow-men. We must realise how by this means each individual will, in fact, be provided for in the best possible way.

Ladies and gentlemen, this might easily be taken for a piece of idealism, but I beg you to observe once more: In this lecture I am speaking neither idealistically nor ethically, but from an economic point of view. What I have just said is intended in a purely economic sense. It is neither a God, nor a moral law, nor an instinct that calls for altruism in modern economic life—altruism in work, altruism in the production of goods. It is the modern division of labour—a purely economic category—that requires it.

This is approximately what I desired to set forth in the essay I published long ago.² In recent times our economic life has begun to require more of us than we are ethically, religiously, capable of achieving. This is the underlying fact of many a conflict. Study the sociology of the present day and you will find: The social conflicts are largely due to the fact that, as economic systems expanded into a World-Economy, it became more and more needful to be altruistic, to organise the various social institutions altruistically; while, in their way of thinking, men had not yet been able to get beyond Egoism and therefore kept on interfering with the course of things in a clumsy, selfish way.

But we shall only arrive at the full significance of this if we observe not merely the plain and obvious fact, but the same fact in its more masked and hidden forms. Owing to this discrepancy in the mentality of present-day mankind—owing to the discrepancy between the demands of the economic life and the inadequate ethical and religious response—the following state of affairs is largely predominant in practice. To a large extent, in present-day economic life, men are providing for themselves. That is to say, our economic life is actually in contradiction to what—by virtue of the division of labour—is its own fundamental demand. The few who provide for themselves on the model of our tailor do not so much matter. A tailor who manufactures his own clothes is obviously one who mixes up with the division of labour something that does not properly belong to it. But this is open and unmasked. The same thing is present in a hidden form in modern economic life where—though he by no means makes his products for himself—a man has little or nothing to do with the value or price of the products of his labour. Quite apart from the whole economic process in which these products are contained, he simply has to contribute, as a value to the economic life, the labour of his hands. It amounts to this: To this day, every wage-earner in the ordinary sense is a man who provides for himself. He gives only so much as he wants to earn. In fact, he simply cannot be giving as much to the social organism as he might give, for he will only give so much as he wants to earn. In effect, to provide for oneself is to work for one's earnings, to work “for a living.” To work for others is to work out of a sense of social needs.

To the extent that the demand which the division of labour involves has been fulfilled in our time, altruism is actually present—namely: work for others. But to the extent that the demand is unfulfilled, the old egoism persists. It has its roots in this—that men are still obliged to provide for themselves. That is economic Egoism. In the case of the ordinary wage-earner we generally fail to notice the fact. For we do not ask ourselves: What is it that values are really being exchanged for in this case? The thing which the ordinary wage-earner manufactures has after all no-thing to do with the payment for his work—absolutely nothing to do with it. The payment—the value that is assigned to his work—proceeds from altogether different factors. He, therefore, works for his earnings, works “for a living.” He works to provide for himself. It is hidden, it is masked, but it is so.

Thus one of the first and most essential economic questions comes before us. How are we to eliminate from the economic process this principle of work for a living? Those who to this day are still mere wage-earners—earners of a living for themselves—how are they to be placed in the whole economic process, no longer as such earners but as men who work because of social needs? Must this really be done? Assuredly it must. For if this is not done, we shall never obtain true prices but always false ones. We must seek to obtain prices and values that depend not on the human beings but on the economic process itself—prices that arise in the process of fluctuation of values. The cardinal question is the question of Price.

We must observe prices as we observe the degrees of the thermometer, and then look for the underlying conditions.

Now to observe a thermometer we need some kind of zero point, from which we go upward and downward. And for prices a kind of zero-level does in fact arise in a perfectly natural way.

It arises in this way. Here we have Nature on the one side. (Diagram 2) It is transformed by human Labour. Thus we get the transformed products of Nature, and this is one point at which values are created. On the other side we have Labour itself. It, in its turn, is modified by the Spirit, and there arises the other kind of value. Value 1, Value 2. And, as I said on a previous occasion, price originates by the interaction of Value 1 and Value 2.

Now these Values on either hand—Value 1 and Value 2—are in fact related to one another as pole to pole. And we may put it as follows: If a man is working in this sphere, for example (Diagram 2 right-hand side), or mainly so—in an absolute sense it is of course impossible, but I mean mainly in this sphere—if in the main his work is of the type that is organised by the Spirit, then it will be to his interest that the products of Nature should decrease in value. If on the other hand a man is working directly upon Nature, it will be to his interest that the other kind of products should decrease in value. Now when this “interest” becomes an effective process (and so, in fact, it is, for if it were not so, the farmers would have very different prices, and vice versa; the actual prices on both sides are, of course, very “occult”) we may be able to observe a kind of Mean Price midway between the two poles where we have two persons (there must always be two, for any economic dealings) with little interest either in Nature or Spirituality or Capital. When is it so in practice? We have the case in practice if we observe a pure trader, a pure middleman, buying from and selling to a pure middleman. Here, prices will tend towards a mean. If under normal conditions (we shall yet have to explain this word “normal ”) a middleman trading in boots and shoes buys from a middleman trading in clothes and vice versa, the prices that emerge will tend to assume the mean position. To find, the mean price-level, we must not go to the interests of those producers who are on the side of Nature, nor of those who are on the Spiritual side. We must go to where middleman trades with middleman, buying and selling. Here it is that the mean price will tend to arise. Whether there be one middleman more or less is immaterial.

This does not contradict what we have said before. After all, look at the typical modern capitalist. Are they not all of them traders? The industrialist is after all a trader. Incidentally he is a producer of his particular goods; but economically he is a trader. Commerce has developed very largely on the side of production. In all essentials, the industrial capitalist is a trader. This is important. In actual fact, modern conditions amount to this: All that arises here in the middle (Diagram 2) rays out to the one side and to the other. On the one side you will soon recognise it if you study the typical business undertaking; and we shall see how it appears on the other side in the course of the next few days.

• 1. now published as “Anthroposophy and the Social Question.”
• 2. see “Anthroposophy and the Social Question.”

Ladies and Gentlemen,

Yesterday I chose from the economic life a somewhat crude example as an illustration. It appears that this drastic illustration has caused some of you a good deal of “brain-racking.” I refer to the example of the tailor, who, I said, works less cheaply if he makes his own suit of clothes for himself than he would be doing if, while making clothes for other people, he bought his own from a tradesman in the ordinary way, like the rest of us. Now it is only too easy to miss the point of such a crude example. For it is quite natural to work it out in this way: “The tradesman, since he must make some profit, will buy the suit of clothes from the tailor more cheaply than he will sell it. Hence it goes without saying that if the tailor buys his suit of clothes, he will pay more for it than he would if he made it for himself. He will, in fact, have to pay the tradesman's profit in addition.” This objection is so obvious that it is bound to occur'; nevertheless I purposely chose the above rather crude example because I wished to illustrate how necessary it is, for present-day economic life, to think not in terms of domestic economy, but in terms of community or national economy'. We must, in fact, reckon with all that arises from the division of labour.

You see, the important thing is not to consider how the tailor will stand directly after he has finished making the suit of clothes. It is true enough that if he proceeds to sell the suit to a tradesman, and then buys another suit back again for himself, he will have made a loss. But that is not the point; the point is, how will he stand when he makes up his accounts after a certain lapse of time? Will he be in a better position if he made his own suit for himself, or will he be in a better position if he refrained from doing so?

In effect when the division of labour works, it makes products cheaper in the right way; they become cheaper, through the division of labour, precisely in the whole system of economic relationships. Whereas, if we work against the division of labour, we force down the price of one particular class of products; but this forcing down of prices will itself go against the main stream of the economic process. In other words, though the tailor may save something on that particular suit, he will—by a very small figure to begin with—force down the price of clothes; if many tailors do the same, the effect will be multiplied; clothes will become cheaper and the result will be that the tailor will have to supply other suits also at a lower price. It will only be a question of time. After a certain time, he will observe in his balance-sheet how much less income he has derived from the other suits than he would have derived if he had not thus forced the prices down.

We must not confuse the issue by thinking in the narrow spirit of domestic economy. I did not mean that the tailor has not a perfect right to make his own clothes for himself, or that he might not quite properly have a taste for doing so. Only he must not imagine that it will save him anything in the long run; on the contrary, it will be more expensive. Taking his total balance after a certain lapse of time, he will find that it is more expensive. I admit that in this crude example the effect will be comparatively slight, for the amount by which the price is forced down will only become evident after a considerable lapse of time. The tailor will have to make a large number of other suits before the very small fraction by which they are cheapened becomes effective. Nevertheless, sooner or later it will appear in his total balance. (See Appendix.)

The economic process does indeed consist in an infinite number of interdependent factors. The single phenomenon is the outcome of an untold number of factors, all of which work into one another. To understand it, it simply will not do to think—if I may put it so—so very near at hand. All your thinking on Economics will lead to disaster if you let your thoughts be guided only by what lies in the immediate neighbourhood of the single persons who are engaged in it. You will never get to grips with the economic process in this way. You must learn to envisage the social organism in its totality. If you do so, you will also feel impelled to illustrate the facts by' such extreme examples, where the effect, though it does not become apparent in a day, may make itself felt very strongly, say, in the course of a decade.

We must indeed take our start from such—if I may say so—half-absurd examples, so as to detach our thinking from the familiar habits and lead it into a mode that comprehends wide issues and, losing its hard and fast outlines in the process, gains power to grasp what is for ever fluctuating. What lies close to us we can grasp in sharp outline, but our task is to achieve a real insight, an insight that gives us always mobile ideas, which never correspond to those we can gather in our immediate neighbour-hood.

I want to mention this especially today, for, while we take our start from comparatively simple matters, we shall have to realise nevertheless how the economic process is built up little by little of the most manifold factors. We must come nearer and nearer to the possibility of grasping the problem of Price. With this end in view, we shall today once more consider the economic process as such from a particular aspect.

Let us begin today with Nature. In the first place, human Labour must set to work on Nature, transforming Nature's products. The product of Nature thus receives the stamp of human Labour; as transformed by human Labour, it receives an economic value. In Economics we are not dealing with the substance; the substance, as such, has no economic value. The coal, the substantial coal, lying in mines under the earth, has no economic value; nor would it gain an economic value if it walked of its own accord from the mine into the house of the man who uses it to stoke his fires. What is it that turns the substance into a value? It is the Labour that has been impressed upon it, that is to say, all that had to be done to bring it to the light of day, to prepare the mines themselves, to transport the coal and so forth. It is only the human Labour impressed upon the substance of the coal which gives it economic value; and this is all we have to do with in Economic Science.

You cannot grasp any phenomenon of economic life if you do not start from such ideas as these. But now, in the application of human Labour to Nature, we come with the further evolution of the economic life to the division of Labour. The division of Labour arises whenever men work together in any task that has significance for economic life.

Let us take a perfectly simple example. In a certain district, a number of men have been doing a certain piece of work. From the various places where they live, they have walked to the common scene of their Labour—to a place where some particular Nature-product is exploited. Suppose we are still in a very primitive period. The workers have no other means of arriving at the place where they' do this work upon Nature; they' must walk there. But now someone conceives the idea of making a cart and using horses to draw it. Henceforth what formerly had to be done by each one alone will be done by each individual in conjunction with the man who provides the cart. A certain piece of work is now divided; that which is done, which is Labour in the economic sense, is now divided. It will, of course, happen in this way, that everyone who makes use of the cart will have to pay a certain quota to the enterprising individual who provided it.

The inventor of the cart, however, thereby' enters the category of the capitalist. For him, the cart is now genuine Capital. Whereever you look, you will always see that this is so: The point of origin of Capital always lies in the division, the qualitative division of Labour. But now, how was the cart invented? It was invented by Mind or Spirit. And indeed, every such process consists in the application of Spirit to Labour. In one respect or another human Labour is permeated by the Spirit. It is Labour permeated by the Spirit which arises in the process of the division of Labour. Where we see Capital arise in the course of division of Labour, we have, in the first place, nothing else than this: it is Labour penetrated by the Spirit. The first phase of Capital always consists in this: Where human Labour hitherto was determined only by Nature, it is now organised, divided and so forth by the Spirit.

It is indeed necessary to see Capital and its formation very clearly from this point of view. Only from this point of view can we understand the function of Capital in the economic process. The forming of Capital is always a concomitant of the division—that is to say, the qualitative, organic division—of Labour.

But in this process something of the direct, immediate intercourse, which man has with Nature when he works upon her, is always loosened. You see, so long as the economic life merely consists in the elaboration of Nature, all that we have to do with is the Nature-products which, being transformed by human Labour, acquire an economic value. But the moment the human Spirit organises Labour—organises, that is to say, Labour as such (for, after all, to the man who creates Capital in the shape of his cart, it will matter nothing to what end or for what purpose he transports the workers from one place to another)—an emancipation from Nature begins to take place.

Here,¹ if I may put it so, we still see Nature shining through human Labour at all points. Although the value is constituted not by' the coal as a substance but by that human Labour which is stamped upon it, nevertheless the Nature-product still shines through the human Labour. This is one side from which economic values originate.

The other side is this. Whatever in human Labour is organised by the Spirit emancipates itself from Nature, is lifted away from Nature, until at length we have the capitalist, to whom the relation of the Labour which he organises to Nature may be a matter of complete indifference. This, after all, may happen in a very simple way. Suppose the man has hitherto been driving people from many places, say, to some piece of agricultural work in the fields. He may suddenly prefer to take his cart away and drive people to quite a different place and quite another kind of work. Wherever the Spirit is applied, you will inevitably find the organised division of human Labour becoming emancipated from the Nature-foundation. Here, then, you have the emancipation of Capital from the Nature-foundation of economic life.

From various points of view the idea has been expressed in Economics that Capital is stored-up Labour-power. But this is no more than a definition, which will only fit the facts at a certain stage, because things are always fluctuating. So long as the organisation due to the Spirit is narrowly bound to a certain kind of Labour, Nature will still shine through. But the moment we emancipate ourselves, thinking only of how to make fruitful what we gain by application of the Spirit—the moment we do this, the more we shall observe the Labour becoming indistinct within the total mass of Capital. In its peculiar and specific character, it vanishes.

Suppose you have been amassing Capital for a considerable time and this Capital continues to work in the economic process. The man who, to begin with, had only a single cart can extend his economic activity' by acquiring a second cart, and so on. His Capital is working in the economic process; but there is really nothing left in it of the nature of the Labour. Look at a miner, for example; in him you still see very much of the nature of the Labour. But in Capital you see less and less of it. And we may go still farther. Suppose the man hands the whole business over to another man. The transfer will very likely mean that the new-comer will only be concerned in fructifying what has thus been brought about by the Spirit. The nature of the Labour which is thus organised will be a matter of indifference to him. He is only concerned in organising, no matter what kind of Labour.

In other words, we have here a real process of abstraction. Precisely the same thing that we do inwardly in our logical thinking, in the process of abstraction, is here accomplished outwardly. The specific quality disappears. The specific qualities, both of the substance of Nature and of the different kinds of Labour, gradually disappear in the masses of Capital. And as you will presently see, if we follow the economic process still farther, nothing whatever is left of the human Labour which was originally organised. The further development of the economic process will be somewhat as follows: The man who built the cart did at least stamp his own Spirit upon the whole invention; but now he earns more values than he can cope with by himself. Are these values to remain unused in the whole economic life? Of course not. Another man must come along, able to cope with them by means of a different kind of Spirit. He will then turn the values to good account—he will make them valuable—in quite a different way.

After a time, for instance, the values created by the inventor of the cart—the fructification which has thus resulted—may pass over to a skilled smith. The smith has the Spirit, the intelligence, to erect a workshop; but with his Spirit alone he can do nothing. The other man has already created certain economic values; these he must now transfer to his fellow-man, the smith. Here you have indeed, in the outer world of reality, the completest imaginable process of abstraction. Moreover, it is essential if the thing is to go on at all (for how else could the cartwright transmit his values to the smith?)—it is essential for something to be there which is related as an abstract element to all the specific elements that are contained in the economic process. What is this something? It is, of course, in the first place, Money. Money is nothing but the externally expressed value which is gained in the economic process through the division of Labour and transmitted from one man to another.

Thus we see arise, in the process of division of Labour, Capitalism, and in the process of Capitalism (at a pretty early stage) Finance [die Geldwirtschaft]. In relation to all the particular economic processes, Money is the thing completely abstract. If you have five francs in your pocket, you can buy a midday meal and a supper for it just as well as an article of clothing. To the Money itself it is irrelevant what you acquire for it, or what it is exchanged for in the economic process. Money is the thing absolutely indifferent to the single factors in the economic life, in so far as they are still influenced by Nature. For this very reason Money becomes the means of expression, the instrument, the medium for the Spirit to enter into the economic organism in the division of Labour. Without Money being created, it is absolutely impossible for the Spirit to enter in and play its part in the economic organism which depends on the division of Labour. We may say then: “What in a primitive economic condition is originally all together—what every single human being in his egoism does for himself—is now divided up among the whole community.” Such is the division of Labour, and in Capital the single parts are gathered up again into a total process. The forming of Capital is essentially a synthesis. And now the man who first emerges as a creator of Capital, being able to change it into Money Capital (since Money must necessarily appear at this stage) becomes a lender to another man, who possesses nothing but his Spirit. The latter now receives the Money, which is the true and proper representative of economic values created by the Spirit.

We must really consider this from the point of view of pure Economics. However evil money may be from a religious or ethical point of view, in the economic sense Money is the Spirit at work in the economic organism. It is so indeed. Once more then: Money must be created in the economic process, if the Spirit is to progress at all from the initial point where it applies itself merely to Nature. Spirit would remain in an altogether primitive condition if it could do no more than this. To pour back again into the economic process what has been gained by spiritual application, it must be realised as Money. Money is the Spirit realised. But the concrete quality comes back into it again. In the first place, Money is an abstract thing, for, as we said before, to the Money it is a matter of indifference whether, for the 5 francs in my pocket, I buy an article of clothing or get my hair cut (several times, if you like). But the moment Money returns to the individual human being, i.e., to the individual human Spirit, it becomes economically active once more as a concrete and specific fact. For the Spirit is economically active in the Money.

Now at this point a very special relationship arises. He who acquired the Money to begin with becomes the lender, the creditor. The other, who receives the Money—the man, we will suppose, who only has the Spirit, becomes the debtor. You have here a relationship between two human beings. The same relationship will also come about if the lenders are a whole number of people who hand over their superfluous Capital to the individual, so that a higher synthesis is brought about by his intelligence, his Spirit. He is then the debtor, and works on a foundation entirely emancipated from the Nature basis. For what he actually receives from the original capitalists themselves is in his hands a nonentity. He will have to give it back again after a time—it does not really belong to him. In effect, it is only from one side that he works economically as a debtor. From the other side he is economically responsible as a spiritual creator. Truth to tell, this is perhaps one of the healthiest relationships (this point is especially important in relation to the social question) for a spiritual worker to work for the community, being enabled to do so by the community giving him the necessary money. (So far as he is concerned, it is the community.) How property, possession and the like enter into the matter is a question we shall have to consider another time; our present object is only to trace the economic process as such. Here it is a matter of indifference whether or not you conceive the lender as the real owner and whether or not you conceive the debtor as jurisprudence does. For the moment we are only concerned with this question: How does the economic process take its course?

Here then we have a part of the economic process where the work is founded purely on what has already been spiritually achieved and acquired. That is to say, the very foundation of the work is already emancipated from the Nature-basis. True, it originated in the organisation of Labour; but we are now at a second stage, and if at this second stage—where a spiritual worker works as a debtor—you were still to describe the borrowed Capital which he receives as “crystallised Labour” or the like, you would be talking—economically—sheer nonsense. It is immaterial to the economic process how the Capital which he owes originated. The important thing now is: What is the Spirit, what is the intelligence, of the man who receives the Money? Will he be able to lead it over into fruitful economic processes? The original Labour through which the Capital arose no longer has an economic value. The Spirit which the man applies in turning the Money to good account (giving it value)—this alone will have economic value at this stage. For, however much Labour you conceive as being stored up in the Capital, if a fool gets hold of it and “scatters it all to the winds,” it is an altogether different thing than if a clever man gets hold of it and starts a fruitful economic process with it. At this second stage, therefore, where we have to do with lender and debtor, we are dealing with Capital from which the Labour has already disappeared. What then is the economic significance of this “Capital from which the Labour has disappeared ”? It is twofold: In the first place it has been possible to raise and collect the Capital for lending purposes, and in the second place the Capital thus raised can be given value by spiritual means. Therein lies its true economic significance.

The reality which emerges from the process is the relation between the debtor and his creditors. In the economic process to which he now gives rise, the debtor stands in the middle. On the one hand we have him as a debtor; on the other hand we have that which proceeds from him as a spiritually productive man. What on the one hand is “lent” or “invested” Capital—through the very fact that it becomes “owed” or “borrowed” Capital—passes over into the second stage of the economic process.

This is simply the circulation of Capital—nothing else. But this circulation is part and parcel of a social organic activity, just as you have the blood in a human or animal organic activity, when it flows through the head and is used for what the head produces. I may put it in this way: What is it that is brought about through this relationship of lenders and debtors? It is, ladies and gentlemen, very similar to the “difference of level” we meet with in Physics. If you have water up here it will flow down there, simply through the difference of level. In like manner there is a, social difference of level between the first position of the Capital and the second—the position of the lender who does not know what to do with it, and the position of the debtor who can make good use of it. This difference works as a difference of level.

But you must pause a moment to consider: What is the active driving force in this difference of level? The active principle is not simply the Spirit which is at work in the whole process. It is the diversity of human talents and dispositions. That is the determining factor in the difference of level. If a dullard possesses Capital, then, in a healthy economic organisation, he will be up here, while the clever man will be down there. The result is a “drop,” or difference of level and the Capital flows downward to the clever man. It is through the difference of level between the talents of individuals that Capital is brought into flow. It is not even the positive activity of men; it is simply the human qualities of those who are united together in the social organism which produce this “difference of level” and, in doing so, carry forward the economic process.

Look at this economic process quite concretely, and you will say: We start from Nature, which has as yet no value. Clearly it has no value, for the sparrow, satisfying its needs from Nature, pays nothing for it. This is evident from the contrast of sparrow economy and human, or political, economy. Economic value begins where human Labour unites itself with Nature. Next, the economic process is continued through the division, the differentiation of Labour. Let us take it to begin with in an absolutely general way: We have human Labour applied to Nature. I will put it down as follows (though the full economic meaning of this will only emerge in the further course of these lectures). Let us designate what arises at this stage by Nl—“Nature taken hold of by human Labour.” What is it, economically speaking? It is, as we have already seen, a value. I will call it: “Nature taken hold of by human Labour, and thus made into a value”—Nl^v. That is one side.

Now comes the division of Labour. What does it signify? It signifies a dividing up of those processes which were performed in the first place as single completed Labour-processes applied to Nature and which now live a separate life. If I make a whole stove, I shall be performing many, varied Labour-processes; if I now introduce division of Labour, I peel and part the Labour-processes one from another. I divide. If Nl^v is “Nature-product transformed by Labour and made into a value,” then what arises by the division of Labour (of course, we might denote it in many different ways) will be ${\mathrm{Nl}}^{\mathrm{v1}}$, ${\mathrm{Nl}}^{\mathrm{v2}}$, and so on.

Now if all this is a real process, how shall we express what happens when the division of Labour makes its appearance? Clearly, by a division, by a fraction. When the value which I have here written down passes over into the division of Labour, the thing that is there in the reality must in some way be divided. The only question is: By what is it divided? What is the dividing principle? What is it that divides up the process? Well, we must now look to the other side. In pure Mathematics we only have to take what is given as number; but when we are to seek such arithmetical processes in the world of Reality itself, we must look for the real divisor, the real dividing principle. Now, as you will remember, we found, on the other side of the picture, “Labour taken hold of by the Spirit.” Over against this ${\mathrm{Nl}}^{\mathrm{v}}$ we may, therefore, place Labour taken hold of by the Spirit. This becomes a value on the other side: ${\mathrm{Ls}}^{\mathrm{v}}$. But we have today reached a certain conclusion concerning this “Labour taken hold of by the Spirit.” We have seen what must arise if it is to work on beyond a certain point in the economic process, and if this ${\mathrm{Nl}}^{\mathrm{v}}$ is divided and is to work on in the economic process—we have seen what enters the process for this ${\mathrm{Ls}}^{\mathrm{v}}$ (Labour organised by the Spirit and made into a value): It is Money.

But the Money appears at this point not in its fully abstract nature; it is abstract, to begin with, if I may put it so—abstract as the substance to which the Spirit first applies itself—but it grows highly individualised, highly specific, when the Spirit takes hold of it and uses it for this or that purpose. In doing so, it is the Spirit as such which determines the value of the Money. Here, you see, Money begins to gain a concrete and specific value. For whether the man is a fool and throws the Money away on a thing that turns out unfruitful, or whether he applies it in a useful way, this now emerges as a very real value in the economic process. For your denominator, therefore, you will here get something that has to do with Money; while your numerator, I need hardly say, will have to do with the fact that you have before you that into which the substance of Nature has been transformed. What is a substance of Nature, transformed by Labour and present in the economic process? It is a Commodity. This, then, is the numerator; and for the denominator, corresponding to “Labour organised by the Spirit,” you will have Money—thus:

New values come to light:—the “Commodity-value” and the “Money-value.” In the economic process founded on the division of Labour, we must recognise this truth: The quotient of the total commodities present in the economic organism and the Money present in the economic organism (taking as “Money” not what is reckoned up in the cash-books, but what is actually taken hold of by the Spirit of the human beings) will represent a real inter-action. The Money is the divisor. This inter-action, which cannot be represented by a subtraction but only by a division, represents the real health of the economic process. To understand wherein this health consists, we must learn to understand what is at work in the numerator here and in the denominator. We must understand more and more wherein the essential nature of a Commodity on the one hand, and of the medium of circulation, the Money, on the other hand, consists. The most essential economic question cannot be solved at all unless we proceed in this exact way. But we must not forget that whatever appears in the economic life will always be fluctuating. Thus the moment the Commodity is taken from one place to another, the numerator here will change. Indeed, I can do no other than point out at every turn, how fluctuating all things are in the economic process.

There is a great difference between the purse I have in my pocket which contains 5 francs, and the purse another man has, also containing 5 francs. It is not a matter of indifference whether the 5 francs are in the one pocket or the other. This too must be taken as a thing that belongs to the real economic process. Otherwise you will only get a few rigid, abstract, arbitrary concepts of Price, Value, Commodity, Production, Consumption and so on; you will get nothing to lead you to a true understanding of the economic process.

This is the infinitely sad thing in the present day. For many centuries mankind has grown accustomed to sharply outlined concepts, such as are inapplicable to a living process. Today we are called upon by the facts of life to get movement into our concepts, so as to penetrate the economic processes with conscious understanding; and we cannot do so. This is what we must attain: mobility of thinking, so as to be able to think a process through to its end quite inwardly. True, in ordinary science we also contemplate processes, we “think them through,” if you will; but we always see them from outside and that is of no avail in Economics. To contemplate the economic process as the chemist contemplates his processes, from outside, you would have to go far up above the Earth in a balloon. The economic processes are distinguished by the fact that we ourselves are in them; therefore we must see them from within. We must feel ourselves within the economic processes, just as a being would do who was inside the chemist's retort where, with a great generation of heat, something is being concocted. The being in the retort, whom I am now comparing with ourselves, cannot of course be the chemist. It would have to he a creature taking part in the heat, boiling with it, as it were. The chemist cannot do this; to him the whole thing is external. In Natural Science, we stand outside the process. The chemist could not take part in it, with the temperature in the retort far above boiling-point. But the economic process is different; we ourselves partake in it inwardly at every point. Hence too we must inwardly understand it. A mathematician may well object: You have written something like a formula, but we are not used to building up our mathematical formulas in this way. True enough; for as a rule we only build up a mathematical formula as a result of contemplating natural processes from without. We must evolve a faculty of insight to get a numerator and denominator in this way, or to understand that it must be something like a division—that it cannot be a subtraction in this case. We must try to think our way into the economic process. For this very reason I chose that crude example yesterday. I did not introduce to you a tailor and a tradesman from outside, as a scientist would. The essential could not have been found in that way. But with our thinking accustomed to see things only as the natural scientist does from outside, we feel it uncanny to get inside a thing. Nevertheless, we must conceive inwardly the countless processes that intervene between the tailor and the effects which follow in the economic process.

I should not be true to the task you have set me if I described these things in any different manner. I am well aware that it makes it somewhat difficult at the outset.

• 1. Steiner referred to diagram 2, left-hand side.

Ladies and Gentlemen,

We are now going to pursue a little further the sequence of events within the economic process which we considered yesterday. The economic process, as we have seen, is set in motion by human Labour working upon Nature, so that from the mere raw Nature-product—which has as yet no value in the economic process—we get the Nature-product transformed by human Labour. At the next stage, Labour is, as it were, caught up by Capital, which divides and organises it, till it eventually disappears in the Capital. For the further advance of the economic process, therefore, Capital itself must labour. But this labour of Capital is not labour in the old sense; rather the Capital is taken up by a purely spiritual activity. The economic process now goes forward by the Spirit “making good” the Capital, giving it additional value, as I described in the last lecture.

We must try to understand more and more the formula which was indicated yesterday. To this end, let me now describe diagrammatically—symbolically, as it were—what I explained yesterday. We may say: Nature goes under in human Labour (see Diagram 3. We have therefore this stream from Nature into Labour. Nature goes under in Labour. Labour continues to evolve. Then the values evolved stream onward, as it were, till Labour vanishes in Capital. We have traced the process up to this point (see Diagram 3). You can easily continue it for yourselves. The cycle must necessarily be completed in some way. The Capital cannot merely be blocked at this point, for otherwise we should be dealing not with an organic process but with one that would come to an end in Capital. The Capital must disappear once more into Nature. But you must first call to your aid another idea if you wish to understand this rightly.

Consider for a moment the economic process as we have traced it up to the present. First the elaboration of Nature by human Labour, then the organising of Labour by the Spirit and with it the rise of Capital, for Capital is a concomitant of the organising of Labour by the Spirit. Then the existence of Capital as such. Capital passes over from the Spirit which organised the Labour. The Capital becomes independent. The Labour disappears in its turn, and now the Spirit works in the Capital as inventive Spirit in connection with the whole social life. The technical aspect of invention need not concern us here; this will only come into question at a later stage.

If you now review all that I have described to you, you will see that I have presented everything from one side only. This was inevitable; for, apart from a few occasional hints, I have been speaking only of. production. I have indeed included, now and then, ideas that had to do with consumption, especially when we were trying to approach the question of price. But apart from that you will have found practically nothing about consumption in our discussions hitherto. I have been speaking of production. And yet, the economic process does not merely consist of production—it consists also of consumption.

A simple reflection will show you that consumption is exactly the opposite pole to production. We have been endeavouring to find the values that arise in the economic process within the sphere of production. Consumption on the other hand consists in a perpetual elimination of these values. In consumption they are constantly being used up. That is to say, it consists in a constant devaluation of the values. It is this that plays the other important part in the economic process—this constant devaluation of values. Indeed it is just through this that we have a certain right to call the economic an organic process, an organic process in which the Spirit presently intervenes. For it is of the essence of a living organism that something is continually being formed and again unformed. In any organism there must be a continual production and consumption, and this must be so in the economic organism too. There must be a constant producing and a using-up of what is produced.

At this point we begin to see in a different light, and from a different point of view, the value-creating forces which we have been considering. Hitherto we have only shown how values arise as the process of production takes its course. But now, every time a value approaches its moment of devaluation, the whole movement which we have been witnessing hitherto will change. So far, we have been observing a progressive, forward movement. Thus, values arise through the application of Labour to Nature; values arise through the application of the Spirit to Labour; values arise through the application of the Spirit to Capital. All this is a forward movement.

In fact, we have been observing the value-creating movement in the economic process. But as the devaluing factor of consumption enters into the process at every point, there will be something else as well. There will be that development of values which arises as between production and consumption themselves. When a value enters the process of consumption it no longer moves forward. It does not attain a higher degree of value, it no longer moves; for something now stands over against it. This is consumption—the development of a need. Here the value enters into a very' different sphere from that which we have hitherto been studying. We have been considering the value in its progressive, forward movement. (see Diagram 3) Now we must imagine it moving up to a certain point and being there arrested. Every time a value is arrested, there arises, not a further value-creating movement, but a value-creating tension.

This is the second element in the economic process. In the economic process we have not only value-creating movements but value-creating tensions. We can observe such value-creating tensions most conspicuously and simply where a consumer stands face to face with a producer or trader and in the very next moment the creation of value comes to an end, passing over into devaluation. Here there arises a tension—a tension which is maintained in equilibrium by the human need on the other side. Here the value-creating process is arrested. Human need or consumption confronts it and there arises the tension between production and consumption. This tension is also most decidedly a value-creating factor—albeit one that is comparable to a force that is arrested, held in equilibrium, rather than to a force that is working itself out. There is here a true analogy with the contrast in Physics between kinetic and potential energies—between kinetic energies and those energies of position where an equilibrium is brought about. If you do not take into account these energies of tension, these potential energies, in the economic process, you will be driven to the strangest misconceptions. Evolving the ideas as indicated here, we gain an intelligent conception of every economic relationship. Otherwise we are led into the greatest confusion. If, for example, you limit yourself to considering the movements of economic energies, you will never understand why the diamond in the King of England's crown has such an immense value. For here you are at once obliged to have recourse to the idea of economic tension-value. Many economists take into account the rarity of particular products of Nature; but we can never understand rarity as a value-creating factor if we regard the movement in the economic process as the only creator of values. We must also learn to understand how there arises here and there—most of all through consumption, but through other relationships as well—what I would call the creation of value by tensions, situations, equilibria.

Thus you see that devaluation can also take place in the economic process which, as I said, you can therefore regard as an organic process—an organic process in which Spirit constantly intervenes. There must be—or rather, there is constant devaluation. As the values proceed on their way (see Diagram 3) from Nature through Labour to Capital, they will be accompanied by a continual process of devaluation. What would happen if this corresponding devaluation could not take place? You can see this from the diagram.

To make it clear, let us consider the question of credit. To place Capital into the service of the Spirit in the sense which I explained yesterday, the man who produces by means of Spirit becomes a debtor. It is only through his having credit that he becomes or can become a debtor. At this point in our diagram credit steps in—the thing which may be properly called “personal credit.” A man has credit. The credit can be expressed in figures. The Capital which many others advance to him is, so to speak, his personal credit. Now, as you know, this personal credit has a certain consequence, at any rate if we consider it within our present economic conditions. Its economic effect is connected with the rate of interest.

Assume that the rate of interest is low. If as a spiritual creator in the economic process I become a debtor, that is to say, if I demand credit, I shall only have to pay a small sum for it. Having less interest to pay, I can produce my goods more cheaply. Thus I shall have a cheapening effect on the economic process. We may say, therefore: Personal credit cheapens production when the rate of interest falls. So long as the Capital continues to be turned to good account or made valuable by the Spirit in the economic process, it is always so. When the rate of interest goes down, he who requires credit has more freedom of movement. He can play his part far more intensively in the economic process—more intensively, that is to say, for his fellow-men. For if he cheapens his commodities he is playing a fruitful part in the process—at any rate from the point of view of the consumer.

But now let us take the other side. Assume that credit is given on land—“real credit.” When credit is given on land, the situation is essentially different. Assume that the rate of interest is 5%. A person borrowing Capital on the security of land must pay 5%. Capitalising this, you will get the Capital corresponding to the particular piece of land—that is to say, you will get the amount which would have to be paid to buy the piece of land outright. Assume now that the rate of interest falls to 4%. More Capital can then be “credited into” the land—this at any rate is what actually happens. Thus we see everywhere, as a result of a falling rate of interest, land becoming not cheaper but more expensive. When the standard rate of interest goes down, land does not become cheaper but more expensive. “Real credit” makes things more expensive while “personal credit” makes things cheaper. That is to say, real credit makes land more expensive while personal credit makes commodities cheaper. Now this means very much in the economic process. It means that, when Capital returns to Nature and simply unites with Nature in the form of real credit (in other words, when there is a union of Capital with land, that is to say, with Nature), then the economic process will tend more and more in the direction of dearness.

Thus the only sensible thing will be for the Capital at this point (see Diagram 3) not to preserve itself in Nature but rather to vanish into Nature. How then can Capital vanish into Nature? So long as it is at all possible to unite Capital with Nature—that is to say, so long as you can make Nature in its original unelaborated condition more and more expensive through the accumulation of Capital—so long as this is possible, Capital cannot vanish into Nature; on the contrary, it penetrates into Nature and maintains itself there. Thus in all countries where the law of mortgage makes it possible for Capital to unite with Nature, we shall find a congestion of Capital in Nature, i.e., in the land. Instead of the Capital being expended at this point (see Diagram 3)—instead of its disappearing at this point, instead of a value-creating tension arising—there is a further value-creating movement, which is harmful to the economic process. There is only one way of preventing this. In a healthy economic process we must not and cannot give “real credit ”—credit based on the security of land—even to a person working on the land. He too should only receive personal credit—that is to say, credit which will enable him to turn the Capital to good account through the land. If we simply unite the land with the Capital, the Capital will become congested the moment it arrives again at Nature (see the diagram). If on the other hand we unite it with the spiritual capacities of those who have to administer the land and further the economic process by working upon it, then, you see, the Capital vanishes. As it reaches Nature at this point, it will not become congested; it will not be preserved, but will go right on through Nature, back again into Labour, and will begin the cycle once more. It is one of the worst possible congestions in the economic process when Capital is simply united with Nature, that is to say, when (to trace the economic process hypothetically from its initial stages) after Labour and Capital have evolved from the starting-point of Nature, the Capital is enabled to take hold of Nature instead of losing itself in Nature.

At this point you may, of course, make a serious objection. In the course of this movement, you may say, the Capital has come into being. Suppose it now arrives again at Nature and there is too much of it. (It would be different if we were able to lead it over into Labour—if we were able, let us say, to invent new methods so as to further the exploitation of raw products. For in such a case we should be uniting not Nature but Labour with the Capital. If we arrive at this point with our Capital and exploit the raw products in a more economical way, or open out new sources or the like, then we are leading the Capital directly over into Labour). But suppose there is too much Capital. The several owners of Capital will become painfully aware of the fact; they will not be able to start anything with their Capital. This is indeed the case if you look into the matter historically. In actual fact, too much Capital did arise, and the only way out which it could find was to conserve itself in Nature. Thus we witnessed in the economic process the so-called rise in the value of land.

But, ladies and gentlemen, consider the matter in our present, larger context. The Land Reformers always describe these things in an inadequate way, so that the thing cannot be understood. Consider it in a larger context and you will say: If I unite Capital with Nature, the value of Nature will of course be enhanced. The more a thing is mortgaged, the more will eventually have to be paid for it. The value is constantly increased. But is this increase in the value of land a reality? No, it is no reality at all. By nature, land can never receive a greater value. It can at most receive a greater value by being worked upon in a more rational and scientific way, and in that case it is the Labour that increases the value. But to imagine the land itself, the land as such, increased in value is absurd. It is absolute nonsense. If you do improve the quality of the land, you only do so by working upon it. In so far as it is mere Nature, the land can have no value at all. All you can do is to give it a fictitious value by uniting Capital with it. So that we may say: What is called the value of land in the sense of present-day Economics is in real truth none other than the Capital fixed in the land. And the Capital fixed in the land is not a real value but an apparent value—a semblance of a value. That is the point. In the economic process it is high time that we learnt to under-stand the difference between real values and apparent values.

You see, if you have an error in your system of thought you do not observe its full effect to begin with. For however many disturbing processes in the organism are in fact connected with the error in thought, the connection is only recognisable by Spiritual Science. It escapes the crude Natural Science of today. People are unaware, for instance, how digestive and similar troubles in our peripheral organs arise as a result of such errors. But in the economic process it is just the errors and semblances which are obviously effective, which grow real and have real consequences. And, economically speaking, it makes no essential difference whether, for example, I issue money which has no foundation in reality but represents a mere increase in the amount of paper money, or whether I assign capital value to the land. In both cases I am creating fictitious values. By inflating the currency I increase the prices of things numerically, but in the reality of the economic process I effect absolutely nothing except a redistribution which may do immense harm to individuals. In like manner the above-described capitalising of land does harm to those who are involved in the economic process.

It would make a very interesting study to compare, for example, the mortgage laws existing before the War in the Mid-European countries with the English mortgage laws. In the Mid-European countries it was possible to screw the so-called value of land up and up and up without limit. The law itself made this possible. While in England on the other hand it is true to say, in a certain sense, that this is not so. Compare the effect on the economic process in the one case and in the other. The thing would make an interesting subject for a dissertation. It would make a very good subject, to compare statistically the working of the English mortgage laws with those of Germany.

I have thus illustrated the essential point in our present context. At this point (see Diagram 3) Nature simply must not be allowed to tend towards a conservation of Capital. Capital must be allowed to work on, unhindered, into Labour. But what is to happen if it is actually there—more of it than we are able to make use of? The only thing to prevent its being there in excess is to see that it is used up along this path (see diagram), so that in the last resort only so much of it is left at this point as can enter once more into the work to be done upon the land. That is to say only so much of it is left, as is required for this work. The essential and obvious thing is that the Capital should be used up, consumed along this path (see diagram). Indeed—assuming for a moment for the sake of hypothesis that it could be so—it would be a most appalling thing if nothing were consumed along this whole path. We should have to take the products with us. The process only becomes organic through the fact that things are used up. Just as the Nature-products, transformed by human Labour, get used up, just as the Labour which has been organised by Capital gets used up, so in its further path the Capital itself simply must be used up, properly used up. This using up of Capital is a thing which positively must be brought about.

It can only be brought about if the whole economic process from beginning to end—i.e., right up to its return to Nature—is ordered rightly. There must be something there like the “self-regulator” in the human organism. The human organism, at any rate when it is functioning normally, manages to prevent promiscuous deposits of unused foodstuffs. And if unused foodstuffs are deposited here or there, we are ill. Suppose, for instance, that in the process of digestion in the head, substances are deposited, that is to say, an irregular digestive process arises in the head. The substances that are deposited are no longer carried away—that is to say, their consumption is not properly regulated. Then we get migraine conditions. In like manner you will see the same principle at work in all parts of the human organism. The cause of morbid symptoms lies in the inadequate absorption and removal of what has to be digested. It is just the same in the social organism, when that which ought really to be used up at a certain point becomes accumulated. It is a matter of sheer necessity for the Capital to be used up along here, (see Diagram 3) in order that it may not unite with Nature and so become unliving—a petrified deposit, as it were, in the economic process. For capitalised land is in fact an impossible deposit in the economic process.

Let me expressly state that there can be no question here of any sort of political agitation. I simply unfold these matters as they take shape out of the natural process itself. We are only considering the scientific aspect. But a science that deals with human actions cannot possibly be pursued without indicating the kinds of morbid symptoms that can arise; just as we cannot study the human body without indicating the various possible morbid symptoms. There must, therefore, be a proportionate using up, consumption of Capital—certainly not a total consumption, for it is necessary that a certain amount should pass on, so that Nature may be elaborated once more.

This again I can make clear to you by a picture. Consider a farmer in his economic life. He must certainly try to get rid of the yield of his acres; but he must also keep sufficient seed for the next year. Seed must be preserved. This is a very apt comparison, and we may well apply it to the process we are now considering. Capital must be used up, until that alone remains which we may conceive as a kind of seed to kindle the economic process anew—once more from the starting-point of Nature. That alone must remain which may be necessary for a more scientific exploitation of natural resources—of raw products, or for an improvement of the land, let us say, by the creation of better manures and the like. Now in every such case Labour must be applied. Thus it is that amount of Capital, which can work on as Labour, which must be withdrawn from consumption. But before this point in the diagram is reached, the surplus Capital which would otherwise unite with Nature in an inorganic way must be used up.

Here you may say: “Well, tell us how it is to be done? How is it to be brought about that only just enough Capital arrives at this point for use as a seed for the future? Tell us how it is to be done.”

Well, ladies and gentlemen, in the science of Economics we stand on the ground, not of logic, but of reality. We cannot give the kind of answers which are sometimes given, for example, in the theory of ethics. In the theory of ethics we can admonish a criminal very soundly and we shall have done all that is required. But the economic process must go on, and we must speak of realities. When we spoke of Production, showing how it created economic values, we were indeed speaking of realities. And, that Consumption is a reality, everyone is well aware. In Economic Science one must always be speaking of realities. Ideas by' themselves have no effect in the real world. That which will rightly regulate the economic process, at this point in the diagram, finds expression in what I called the “Economic Associations ” in my book The Threefold Commonwealth.

If you make the economic life independent; if you bring together, in Associations suitably composed, the human beings who are actually taking part in the economic life—whether as producers, as traders or as consumers—then, through the economic process itself, these human beings will find it possible to arrest the formation of Capital if it is too intense and to stimulate it if it is too feeble.

This of course implies a right observation of the economic process. For instance, if at any place a certain kind of commodity becomes too cheap or too dear, those concerned must be able truly to observe the fact. The mere fact in itself is not the point. But when, through experiences which can only grow out of the concerted counsels of the Associations, they are able to say, as a result of such experiences: “Five units of money for so and so much salt are too little or too much, the price is too low or too high”—then and then only will they be in a position to take the necessary steps.

If the price of a commodity becomes too cheap, so that those who produce it can no longer receive sufficient remuneration for their excessively cheap services and their excessively cheap products, it will be necessary to assign fewer workers to this particular commodity. Workers will therefore have to be diverted to another piece of work. If, on the other hand, a commodity becomes too dear, workers will have to be led over into this branch of production. Thus the Associations will always be concerned with a proper employment of men in the several branches of the economic life. We must be clear on this. A real rise in the price of a given economic article indicates the necessity for an increase in the number of those who are working on this article, while an undue fall of price calls for measures to divert workers from this field of Labour to another. In reality we can only speak of prices in relation to the distribution of men among the several branches of Labour in a given social organism.

The kind of view that sometimes holds sway today, where people always have the tendency to work with notions rather than realities, is illustrated by some advocates of “free money” [“Freigeldleute”]. To them it appears quite simple. If prices anywhere are too high, so that too much money has to be spent in purchasing a certain article, they say: Let us see to it that the amount of money becomes less; then the commodities will be cheaper, and vice versa. But, if you think it out more deeply, you will find that this signifies nothing else for the economic process in reality, than as if by some mischievous device you were to cause the column of mercury to rise when the thermometer indicates that the room is too cold. You are only trying to cure the symptoms. By giving the money a different value you create nothing real.

You create something real if you regulate the Labour—that is to say, the number of people engaged on a certain kind of work. For the price depends on the number of workers engaged in a given field of work. To try to regulate these things bureaucratically, through the State, would be the worst form of tyranny; but to regulate it by free “Associations,” which arise within the social spheres, where everyone can see what is going on—either as a member, or because his representative sits on the Association, or he is told what is going on, or he sees for himself and realises what is required—that is what we must aim at.

Of course this also involves quite another social need. We must see to it that the worker is not restricted to one solitary manipulation throughout his life, but is able to turn his hand to other things. Moreover, as I beg you to consider, this will be necessary, if only for the reason that otherwise too much Capital would arrive at this point in the diagram. You can use up the surplus Capital, which would be excessive at this point, to instruct and educate the workers in one thing or another, so as to be able to transplant them into other callings. You see, therefore, the moment you think in a rational way, the economic process will correct itself. That is the essential thing. It will never correct itself if you say: “By this or that measure, by inflation or by the issue of such or such official instructions, the thing will be improved.” By such means it will never be improved. It will only be improved by enabling the economic process to be clearly and transparently observed at every place, assuming always that those who make the observations are in a position to follow them out to their logical conclusions.

I wanted to reach this point in our argument today, in order that you might see that there was no question of starting any “agitations” with the “Threefold Commonwealth” as we intended it. We wanted to tell the world what follows from a real and true study of the economic process itself.

Ladies and Gentlemen,

You know, perhaps, that in my Threefold Commonwealth I endeavoured to express in a formula how we may arrive at a conception of “true price” (as we will call it to begin with) in the whole economic process. Needless to say—to begin with, such a formula is only an abstraction. And it is the object of these lectures (which, I believe, in spite of the shortness of the time, will really form a whole)—it is our very object in these lectures to work the whole science of Economics, at any rate in outline, into this abstraction.

The formula which I gave in my Threefold Commonwealth was as follows: “A ‘true price’ is forthcoming when a man receives, as counter-value for the product he has made, sufficient to enable him to satisfy the whole of his needs, including of course the needs of his dependants, until he will again have completed a like product.” Abstract as it is, this formula is none the less exhaustive. In setting up a formula it is always necessary that it should contain all the concrete details. I do believe, for the domain of economics, this formula is no less exhaustive than, say, the Theorem of Pythagoras is for all right-angled triangles. But the point is—just as we have to introduce into the Theorem of Pythagoras the varying proportions of the sides, so shall we have to introduce many, very many more variables into this formula. Economic Science is precisely an understanding of how the whole economic process can be included in this formula.

Today I intend to start from one essential feature of the formula. It is this. The formula does not point to what is past but to what is going to happen in the future, for I say in it, of set purpose, “the counter-value must satisfy the man's needs in the future—namely, until he will have made a like product again.” This is an absolutely essential feature of the formula. If we were to demand a counter-value, literally, for the product which the man has already finished—if we expected this to be true to the real economic facts—it might well happen that he would receive a value which would only satisfy his needs, say, for five-sixths of the time which he will take in finishing the new product. For the economic facts alter from the past into the future. He who imagines that he can draw up any kind of table from the past, will invariably go wrong in economics. Economic or business life essentially consists in setting future processes in motion with the help of what went before. But where past processes are thus used to set future ones in motion, it inevitably happens in some cases that the values are considerably shifted. Indeed they are constantly shifting. Hence in this formula it is essential to say: “If someone makes a pair of boots, the time he took to make them is not the determining factor in the economic sense. The determining factor is the time he will take to make the next pair of boots.” That is the point, and we must now try to understand its fuller implications within the whole economic process.

Yesterday we brought before our minds this cycle (see Diagram 3): Nature, Labour, Capital—that is, Capital endued with value by the Spirit. At this point I might just as well write (instead of “Capital”) “Spirit.” To begin with we followed out the economic process in this direction, counter-clockwise, and we found that at this point congestion must not be allowed to occur. On the contrary only so much must be allowed to go through as will act as a kind of seed to carry on the process. A state of economic congestion must not be allowed to arise through a fixation of Capital in ground rents. Now, as I said, fundamentally speaking, the return for land when it is sold—i.e., when land is given a value in the economic process—works in direct opposition to the interests of a person engaged in the manufacture of valuable goods. For if a man wishes to manufacture valuable goods with the help of Capital, it is to his interest that the rate of interest should be low. Having less interest to pay, he will be less hampered in his use of the Capital he has borrowed. The landowner, on the other hand (I may go fully into these things, as they are of economic significance), the landowner, or anyone who has an interest in the land becoming dearer, will be able to make it dearer simply by a reduction in the rate of interest. If he has a low rate of interest to pay, the value of his land will grow, it will become dearer and dearer. Whereas a man engaged in the manufacture of valuable commodities will be able to make them cheaper because of a low rate of interest. Commodities, therefore, which depend mainly on manufacture, become cheaper when the rate of interest is low. Land, on the other hand, which gives a yield without first having to be manufactured, becomes dearer when the rate of interest is low. You can easily work it out. It is an economic fact.

It would appear then to be necessary to arrange for two different rates of interest: We ought to have a rate of interest as low as possible for the installation of works for the production of valuable commodities; and a rate of interest as high as possible for everything that falls under the heading of “land.” This follows directly from what we said before. We want a rate of interest as high as possible for all that comes under the heading of “land.” But that is a thing which cannot easily be carried out in practice. A slightly higher rate of interest for Capital advanced on land might be practicable, but this would be of little help. A considerably higher rate of interest—say, for instance, the rate of interest which would keep the land at an ever constant value, namely, 100%—would be extremely difficult to realise in practice without taking additional steps. 100% interest for money borrowed on land would mend matters at once, but it cannot be carried out in practice. In all such cases, the first point is to see with full clarity into the economic process. When we do so, we soon realise that the life of Associations is the only thing that can make it healthy. Rightly to see the economic process will lead to our being able rightly to direct it.

In the economic process we must speak, as I indicated yesterday, of Production and Consumption. We must observe the producing and the consuming process. This contrast has played a great part recently in various much-canvassed economic theories which in due course have been used for purposes of agitation. There has especially been much dispute upon the question, whether spiritual or intellectual work, as such, is in any way value-creating in the economic sphere.

The spiritual worker is certainly a consumer. Whether he is also a producer in the economic sense is a question which has been much discussed. The extreme Marxists, for example, have again and again cited that luckless fellow, the Indian book-keeper, who has to keep the accounts for his village community. He does not till the fields or do any other productive work; he merely registers the productive work done by others. The Marxists deny him the faculty of producing anything. They declare that he is simply and solely maintained out of the surplus value which the productive workers create. This worthy book-keeper is worked as hard in Economics as Caius is in the formal Logic which we did at college. Caius's job is proving the mortality of man. You remember: “All men are mortal, Caius is a man, therefore Caius is mortal.” His everlasting function of proving the mortality of man has made him immortal in the world of Logic. The same thing has happened in Marxian literature to the Indian bookkeeper who is maintained simply by the surplus value of the productive workers. He has become a classic.

This question is, if I may say so, extraordinarily full of “snags,” in which we very easily get caught when we try to work it out economically. I mean the question: How far (if at all) spiritual work is economically productive? Now here it is especially important to distinguish between the past and the future. For if you consider, if you reflect statistically on, the past only, with respect to the past and to all that is only the unbroken continuation of the past, you will be able to prove that spiritual work is unproductive. From the past into the future within the material sphere, only purely material work and its effects can be held to be productive in the economic process. It is quite a different matter when you turn your eye to the future. And, as we said, to be engaged in economics is to be working from the past into the future.

You need only think of this simple instance. Assume that in some village a craftsman, who manufactures this or that, falls ill. Under certain given circumstances—let us say, if he falls into the hands of an unskilful doctor—he will have to lie in bed for three weeks, during which time he will be able to do nothing. He will disturb the economic process to no small extent. If he is a cobbler, for three weeks long the boots and shoes will not be brought to market—taking the word “market” in the widest sense. But now suppose he gets a very skilful doctor who makes him well in a week. He can go back to work again in a week. In all seriousness you can now decide the question: Who made the boots for the remaining 14 days, the cobbler or the doctor? In reality it was the doctor. And now the thing is altogether clear. As soon as you take into account the future from any given moment onward—towards the future—you can no longer call the Spiritual unproductive. In relation to the past, the Spiritual—or rather, those human beings who work in the spiritual sphere—are consumers only. In relation to the future they are decidedly productive, indeed they are the producers, for they transform the whole process of production and make it pronouncedly different for the economic life. You can see this from the example of the tunnel. What happens when tunnels are built nowadays? They could

not be built unless the differential calculus had been discovered. To this day, therefore, Leibnitz is helping to build all tunnels. The way prices work out in this case has really been determined by that exertion of his spiritual forces. You can never answer these questions in Economics if you consider the past in the same way as the future. But, ladies and gentlemen, life does not move towards the past, nor does it even prolong the past; it goes on into the future.

Hence no economic thought is real which does not reckon with what is done by spiritual work, if we may call it so, that is to say, fundamentally by thinking. But spiritual work is not an easy thing to grasp. It has its own peculiar properties which are not at all easy to grasp in economic terms. Spiritual work begins the moment work itself—that is to say, Labour—is organised. The organising work of thinking begins the very moment Labour itself is organised and divided. Thenceforward, it grows more and more independent. Consider the spiritual work of one who directs some undertaking within the material sphere. You will see that he applies an immense amount of spiritual work. Nevertheless he is still working with the resources with which the economic process provides him as from the past. But even on quite practical grounds you cannot get around the fact that the sphere of spiritual activity (if I may now call it “activity” instead of work or labour) also includes the entirely free kind of activity. When a man invents the differential calculus, and even more so when he paints a picture, there we have a case of entirely free spiritual activity. At any rate, relatively speaking, we can call it free. For whatever materials are derived from the past—the paints and the like—they no longer have the same significance in relation to the eventual products as do the raw products, for example, purchased for material manufacture.

Passing into this region, therefore (see Diagram 4), we come into the sphere of the completely free spiritual life. In this sphere we find, above all things, teaching and education. Those who have to teach and educate stand undoubtedly within the sphere of the completely free spiritual life. For the purely material economic process, it is especially the free spiritual workers who are, in relation to the past, absolutely and exclusively consumers. Of course, you may say, they produce something, and, if they are painters, for example, they are even paid something for what they have produced. In appearance, therefore, the economic process is the same as when I manufacture a table and sell it. And yet the process is essentially different as soon as we cease to consider the buying and selling of the individual and turn our attention to the economic organism as a whole—and this is what we must do in the present advanced stage of division of Labour.

Now there are also pure consumers of another kind within a social organism, namely, the young and the very old. Up to a certain age, the young are pure consumers; and those who have been pensioned off are again pure consumers. A very little reflection will suffice to convince you that if there were no pure consumers in the economic process—mere consumers who are not producers at all—the thing could not go forward at all. For if everyone were producing, all that is produced could not be consumed if the economic process were to go forward at all. It is so at any rate as human life is, and human life is not purely economics; it must be taken as a whole. The real advancement of the economic process is only possible if it includes pure consumers.

But I must now illumine from a different angle this fact: that we have pure consumers within the economic process.

You see, this circle (in the diagram) can be made very instructive. We can endow it with all manner of properties, and the question will always be, how to bring the several economic processes and facts into this circle, which represents for us the cycle of the economic process. Something very important happens when, in buying and selling in the market, I pay on the spot for what I get. The point is not that I pay for it with money; I might equally well barter it for a corresponding commodity which the other person was willing to accept. The point is that I pay at once. Indeed it is this that constitutes “paying” in the proper sense of the word. Now here once more we must pass from the ordinary, everyday conception to the true economic conception. For in the economic life the several concepts constantly play into one another. The total phenomenon, the total fact, results from the interplay of the most diverse factors. You may say: “It is conceivable that some regulation should be made, so that no one need ever pay cash down; then there would be no such thing as ‘paying at once’; one would only pay after a month or after some other interval of time.” But the point is this: We are forming our concepts altogether wrongly when we say: “Some-one hands me a suit of clothes and I pay for it after a month.” The fact is that after a month I no longer pay for this suit of clothes alone. In that moment I am paying for something quite different. I am paying for something which circumstances, by raising or lowering prices, may have made quite different. I am paying for an ideal element in addition. In fact, we cannot do without the concept of “immediate payment.” This is the concept which holds good in cases of simple purchase. Nay more, a thing becomes a commodity on the market through the very fact that it is paid for at once. This is generally the case with those commodities which are “Nature transformed by Labour.” For such commodities I pay. Here payment plays the essential part. There must be such payment. I pay at the very moment when I open my purse and give away my money; and the value is determined in the very moment at which I give away the money, or exchange my commodity for another. That is payment. That is one thing there must be in the economic process.

The second thing, which plays a similar part to payment, is the thing to which I drew attention yesterday. It is Lending. This, as I said, does not interfere with the concept of payment as such. Lending, once more, is an altogether different fact, a fact which simply exists. If I have money lent me, I can apply my Spirit to this loaned Capital. I become a debtor; but I also become a producer. In this way, lending plays a real economic part. If I have intellectual or spiritual capacities in some direction, it must be possible for me to obtain loaned Capital. No matter where I get it from, I must have it. Thus in addition to payment there must be loan (see >Diagram 4). Here then we have two very important factors in the economic process: Payment and Loan.

And now by a simple deduction—we must verify it here (see diagram)—by a very simple deduction you can find the third. You will not doubt for a moment what the third thing is. We have had Payment and Loan. The third thing is Gift. Payment, Loan and Gift—this is a real trinity of concepts, essential to a healthy economy. There is a prevailing disinclination to include “free gift ” in the economic process as such, but, ladies and gentlemen, if there is not a giving somewhere, the economic process cannot go on at all. Imagine for a moment what we should make of our children if we gave them nothing. We are constantly making free gifts to the children. If we consider the economic process as a whole—as a process that goes on and on continuously—Gift is part of it. There is no escaping the fact. It is wrong to regard the transfer of values from hand to hand, representing a process of free gift, as something inadmissible in the economic process as such. Precisely this one of the three is found—with horror by some people—worked out in my book, The Threefold Commonwealth, where it is shown how values are to be transferred, how means of production, for instance, are to be transferred, by a process really identical with giving, to one who has the faculties necessary for managing them further. Provision must, of course, be made that the giving is not done in a haphazard way. But in the economic sense they are none the less free gifts, and such gifts are absolutely necessary.

You will find it more and more to be an economic necessity. The trinity of payment, loan and gift is there in the economic process. Consider the matter thoroughly and you will say: In every economic process this must be contained. Otherwise it would be no economic process; it would lead to absurdities at every point.

People may rebel against these things for a time; but we must remember that economic wisdom is today not very great. Those especially who want to teach it should be under no illusions on this point. Modern economic knowledge is by no means great. People are little inclined to go into the real economic relationships. This is an obvious fact, so obvious that if you look in today's Basler Nachrichten you will find curiously enough a reflection on this very fact. Neither Governments nor private people nowadays, it says, are inclined to evolve real economic thinking. I think we may take it that anything expounded in the Basler Nachrichten is likely to be obvious. It is indeed a palpable fact and it is interesting to find it discussed in this way. The article is interesting, inasmuch as it endeavours to set in a glaring light the absolute impotence which prevails in the economic sphere; interesting, too, because it says that these things must be changed—it is time Governments and individuals began to think differently. But there the matter ends. How they are to think differently—on this you will, of course, find nothing in the Basler Nachrichten—which is also interesting!

Now it is possible to interfere in the economic process in a disturbing way, if one does not rightly relate the one thing with the other in this trinity. Many people today are enthusiastically demanding the taxation of legacies (which, of course, are also gifts), Such proposals have no deep economic significance. For we do not lessen the value of the inheritance if, say, it has a value V and we divide the value V into two parts, V₁ and V₂ giving V₂ to some other party and leaving the legatee with V₁ alone. All it means is that the two together will now do business with the original value V, and the question will be whether he who receives V₂ will husband it as advantageously for the economic life as would the original legatee who would otherwise have received V₁ and V₂ together. Everyone of course may settle this question for himself according to his taste, whether a single clever man, receiving the whole legacy, will husband it better, or whether it will be better for one to receive only part while the State receives the other part, so that the individual is obliged to do business in conjunction with the State.

This sort of thing definitely leads us away from pure economic thinking. It is a thinking based on resentment, on feeling. People envy the rich heir. There may be reason for it, but we cannot look at it only from this point of view if we claim to be thinking in an economic sense. The point is, how must the thing be conceived in the economic sense, for whatever else has to be done must take its start from this. You can, of course, conceive a social organism becoming diseased through the fact that payment is not working together in an organic way with loan and gift, since one or the other is being obstructed and one or the other fostered. But they will still go on working together in some way. If you abolish giving on one side, you merely effect a redistribution, and the question to be decided is not whether this ought to be done, but whether it is necessarily advantageous. Whether the individual heir alone should receive the inheritance, or whether he must share it with the State, is a question which must first be settled on economic grounds. Which is more advantageous? That is the point.

The important thing is this: Free spiritual life arises almost of necessity out of the entry of the Spirit into the economic life. As a result of this free spiritual life, as I said just now, there will be pure consumers so far as the past is concerned. But what of the free spiritual life in relation to the future? Here it is productive—indirectly it is true—but none the less extraordinarily productive. Imagine the free spiritual life in the social organism really freed, so that the individual faculties were always able to evolve to the full. Then the free spiritual life will be able to exert an extremely fertilising influence on the half-free spiritual life—i.e., on that spiritual life which enters into the processes of material production. Considered in this light, the thing takes on a decidedly economic complexion.

Anyone who can observe life with an unbiased mind will say to himself that it is by no means a matter of indifference whether in a given region all who are active in the free spiritual life are exterminated (for instance, if they got nothing to consume, the right to live being admitted only for those who work directly into the material process) or whether really free spirits are allowed to exist within the social organism. For the free spirits have the peculiar property of loosening and liberating the spirituality, the “gumption” of the others. They make their thinking more mobile, and these others are thus able to work into the material process more effectively. But it is important to remember that the free spirits are living men. You must not try to refute me by pointing to Italy and saying: There is a great deal of free spiritual life there, yet the economic processes which proceed from spirit have not been stimulated to any unusual degree. Granted, it is a free spiritual life. But it is a free spiritual life handed down from the past. There are statues, museums and the like; but they do not have this effect. Only what is living is effectual—that is to say, what proceeds from the free spirit and passes on to other spiritual producers. This is what works as a productive factor into the future, even in the economic sense. It is certainly possible to exert a healing influence on the economic process by giving a free field of action to free spiritual workers.

Suppose now that we have a healthy Associative life in a community. The task of the Associations will be to arrange production in such a way that when too many people are working in any sphere they can be transferred to some other work. It is this vital dealing with men, this allowing the whole social order to originate from the insight of the Associations that matters. And when one day the Associations begin to understand something of the influence of free spiritual life on the economic process, we can give them a very good means of regulating the economic circuit. I mentioned this in my Threefold Commonwealth. The Associations will find that when free spiritual life declines, too little is being given freely; they will grasp the connection. They will see the connection between too little giving and too little free spiritual work. When there is not enough free spiritual work, they will realise that too little is being given. When too little is being given, they will notice a decline in free spiritual work.

There is then a very definite possibility of driving the rate of interest on Nature-property right up to 100% by transmitting as much Nature-property as possible in the shape of free gifts to those who are spiritually productive. In this way you can bring the Land question into direct connection with what works particularly into the future. In other words, the Capital which presses to be invested, the Capital which tends to march into mortgages and stay there, must be given an outlet into free spiritual institutions. That is the practical aspect. Let the Associations see to it that the money which tends to get tied up in mortgages finds its way into free spiritual institutions. There you have the connection of the Associative life with the general social life. Only when you try to penetrate the realities of economic life does it begin to dawn on you what must be done in the one case or in the other. I do not by any means wish to agitate that this or that must be done. I only wish to point out what is. And this is undoubtedly true: What we can never attain by legislative measures—namely, to keep the excess Capital away from Nature—we can attain by the life and system of Associations, diverting the Capital into free spiritual institutions. I only say: If the one thing happens, the other will happen too. Science, after all, has only to indicate the conditions under which things are connected.