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Russia-West-Russia: Georg von Charasoff, the “Humane Economy”, and the Critique of Marx’s Theory of History

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Russian and Western Economic Thought

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Abstract

The chapter informs about Charasoff’s contributions to economic theory, major Western and Russian intellectual influences on his thinking, and the reception of his work in East and West. The attention focuses on the discussion of Charasoff’s fascination with Tolstoyanism, his novel concepts and original findings with regard to Marx’s economic theory and its critique, and the reasons for the neglect of his innovative ideas by contemporary economic theorists in Germany and Russia.

I therefore already in advance do not expect too much success from my attempt to develop Marx’s, or more generally, the classical economic theory in a positive direction and to round it off. A purely destructive “critical” work could certainly reckon on more recognition, and this the more so, the fewer original ideas it contained and the closer it fell in line with the already familiar critical works.

(Charasoff 1910: vii)

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Notes

  1. 1.

    In the preface to his second book, Charasoff informed his readers that he intended to supplement the two books with a third one, which was to bear the title “Die Probleme der Produktion und der Verteilung” {The problems of production and distribution} and which was to contain “a thorough criticism of the subjective theory of value” (Charasoff 1910: xiv, n.). Alas, this book was never published.

  2. 2.

    Michail Reissner studied law at the University of Heidelberg in 1897–98. He later became a professor at the law faculty of Petrograd University in 1917, and was involved in the drafting of the first constitutional law of the Soviet Union. In the 1920s, as a member of the Soviet Ministry of Sciences and Education, he was responsible for the foundation of the “Communist Academy” in Moscow, which became a centre for Marxist social sciences. He was also a founding member of the Russian Psychoanalytical Society in Moscow, where Georg Charasoff delivered two invited lectures in the 1920s.

  3. 3.

    Buek’s article on “Leo Tolstoy” (1905) was one of the first examples for the application of neo-Kantian ideas to specifically Russian themes. Otto Buek can therefore be considered as one of the founders of “Russian neo-Kantianism” (Dmitrieva 2016). On Buek’s role in the development of an anarchist-socialist variant of neo-Kantianism, merging the neo-Kantian ideas of the “Marburg school” with Tolstoy’s pacifism and anti-modernism; see Hanke (1993), Sieg (1994), and Dmitrieva (2007).

  4. 4.

    The publisher of Charasoff’s books, Hans Bondy, belonged to Otto Buek’s circle of friends in Berlin, which included many (now) well-known artists, writers, publishers, and intellectuals.

  5. 5.

    Franz Pfemfert, the editor of Die Aktion, was a friend of Otto Buek; for the excerpts from Charasoff’s books published in these journals, see Charasoff (1918a, b, c, d, e, 1920, 1921).

  6. 6.

    Alexander (b. 1900 in Strasbourg) was the illegitimate child of Marie Seldovic’s sister, Anna Helena Seldovic, and apparently was adopted by von Charasoff. Arthur (b. 1902 in Zurich) and Helene (b. 1903 in Zurich) were legitimate children of Georg and Marie von Charasoff.

  7. 7.

    Charasoff enrolled for the courses of Professor Burkhardt, who at this very time was one of the examiners of Albert Einstein’s doctoral dissertation.

  8. 8.

    Charasoff’s letters to Chertkov and his wife are preserved in the Chertkov Papers at the Russian State Archive of Literature and Art (RGALI) in Moscow. Charasoff seems to have met Chertkova earlier and to have corresponded with her before. He also must have received an invitation to visit the couple in England, because in his first letter Charasoff declined this invitation on the ground that he had to edit the proofs of his doctoral thesis, which was about to be printed.

  9. 9.

    See “Vormundschaftsakten Kinder Charasoff” (Stadtarchiv Zürich).

  10. 10.

    See Plekhanov (1976: 56–63).

  11. 11.

    See Kautsky Papers (Correspondence D VII 66, International Institute of Social History, Amsterdam).

  12. 12.

    For a more detailed discussion of the Charasoff-Kautsky correspondence, see Mori (2007).

  13. 13.

    See Bortkiewicz (190607, 1907). Bortkiewicz's contributions are discussed by Gehrke and Kurz (2022b, this volume). For English translations of the two papers, see Bortkiewicz ([1907] 1949; [19067] 1952).

  14. 14.

    A more detailed account of the contents of Charasoff’s “Chertkov manuscript” and a comparison with the contents of his German books of 1909 and 1910 is beyond the scope of this paper. It is planned to provide such an account, as well as additional information on the Charasoff–Chertkov correspondence, in a joint project of the author with Denis Melnik (HSE Moscow).

  15. 15.

    Charasoff’s extant correspondence with Chertkov, who in July 1908 left the Tolstoy colony in England and returned to Russia, breaks off without providing any information on the reasons for the collapse of the Russian book project.

  16. 16.

    See Kautsky Papers (Correspondence D VII 67–8, International Institute of Social History, Amsterdam).

  17. 17.

    An “Austrian” production model exhibits a finite number of production stages and presupposes the non-existence of basic commodities. See the chapter on Dmitriev in this volume (Gehrke and Kurz (2022a, this volume).

  18. 18.

    In the Preface of his second book Charasoff emphasized: “With regard to the theory of the production equations and the production series developed by me I would like to point out that in this regard priority claims could be made for the contributions of K. Menger, Böhm Bawerk, Walras and others. I nevertheless regard the entire theory of production stages as my own, since I developed it entirely on my own already several years ago (when I had not yet any knowledge at all of the similar theories of the founders of the subjective method)” (1910: xiv). It needs to be stressed that Charasoff, unlike Menger and Böhm-Bawerk, developed his analysis on the basis of an interdependent production system with circular production relations and thus with an infinite number of “production stages”.

  19. 19.

    See his remarks in Charasoff (1909: 65–67), where he relegates the demonstration of his method of price determination to an appendix.

  20. 20.

    There are brief mentions also of other contemporary authors and their views on specific points, including Oppenheimer, Brentano, Eckstein, Hilferding, Lexis, Liefmann, Schmidt, and Sombart, but none of them plays an important role.

  21. 21.

    Boudin (Boudianoff), was a Russian-born lawyer and Communist activist based in New York City. The German edition of his The Theoretical System of Karl Marx in the Light of Recent Criticism (1907), translated by Luise Kautsky, was published in spring 1909. By attacking Boudin, Charasoff clearly meant to criticize also the views of Karl Kautsky, who had written a favourable foreword for the German translation.

  22. 22.

    The final chapter of the 1909 book, entitled “Karl Marx to his bourgeois critics”, is written in the form of an imaginary speech by Marx to an audience made up of capitalists. There, Charasoff puts into Marx’s mouth the statement that Tugan-Baranovsky “merely poses as my disciple” and that his work is marred with “grave misunderstandings” (1909: 90–91).

  23. 23.

    This is unmistakably a reference to a passage in Bortkiewicz (1906/07, I: 4).

  24. 24.

    See Hanke (1993: 117–167) on the debates on Tolstoy’s teachings among German socialists and Marxists. Kautsky, in his Ethik und materialistische Geschichtsauffassung (1906: 43) had referred to Eisner’s neo-Kantian reinterpretation of Marxian ideas as “Gefühlssozialismus” {sentimental socialism}. The assessments of Tolstoy’s novels and teachings among German socialists reached from “revolutionary” (Eisner) to “reactionary” (Kautsky).

  25. 25.

    On Cohen’s neo-Kantianism, see Hanke (1993: 126–128).

  26. 26.

    Charasoff outlined his views on Tolstoy in a letter to Robert Michels of 1914. There he noted that Tolstoy is often wrongly regarded as a thinker in the tradition of Jean-Jacques Rousseau, based on the rather superficial observation that both have advanced a critique of modern science and culture. In Charasoff’s reading, Tolstoy should rather be seen as an antipode of Rousseau: While the latter obliges the individual to defend the constitution, Tolstoy identified the progress of the human race directly with the progression of the individual towards the renunciation of violence and governance. Tolstoy, Charasoff maintains, substitutes for the Roman law as the foundation of society “Christian love”, by which he means not a sentimental feeling, but social relations of a kind in which society has renounced all demands for force and violence on the part of the individuals.

  27. 27.

    On Buek’s contribution to the “anthropological turn” in Russian neo-Kantianism, see Dmitrieva (2010: 89–90).

  28. 28.

    For the conceptual and analytical problems involved in the attempt to scrutinize Marx’s theory of history, see Cohen ([1978] 2000).

  29. 29.

    For a more detailed discussion of Bauer’s review, see Mori (2007).

  30. 30.

    For completeness, it should be mentioned that there was also a short review of Charasoff’s book of 1909 authored by Moride (1909), a young French economist who had just finished a doctoral dissertation on Marx and physiocracy.

  31. 31.

    Bukharin’s book manuscript was completed and first published in German in 1913/14, but the first Russian edition appeared only in 1919, the first German translation of the Russian edition in 1926, and the first American edition in 1927.

  32. 32.

    This is reported in Vormundschaftsakten Kinder Charasoff (Stadtarchiv Zürich). No further information is provided on whether her death was caused by an accident (as a doctor of medicine she may well have worked with poisonous substances) or she had deliberately killed herself (and if so, why).

  33. 33.

    See Gehrke (2015a, b).

  34. 34.

    Charasoff published several “transrational” or “zaum” poems and also provided psychoanalytical interpretations of Russian poetry, including an influential Freudian interpretation of Tatiana’s dream in Pushkin’s Eugene Onegin (Kharazov 1919a, b). On the literary scene in post-revolutionary Tiflis and Charasoff’s activities, see Marzaduri (1982), Margarotto et al. (1982), Janecek (1996), Nikolskaia (1998, 2000), and Ram (2004).

  35. 35.

    He still owned a factory which however had been shut down.

  36. 36.

    The two elder children, Alexander and Arthur, left Tiflis and found employment in Azerbaijan.

  37. 37.

    Interestingly, Charasoff also referred to his earlier contributions to political economy in an autograph letter from 1921, dedicated to the actor Nikolay Khodotov, at that time his neighbour in Tiflis. On the front page of this letter is a typed list of Charasoff’s books, supplemented with the hand-written quotation (in German): “Regierte Recht, so läget Ihr vor mir im Staube jetzt: Denn Ich bin Euer König.” (Schiller: Maria Stuart.) [“Ruling right, you’d lie before me now in the dust: for I am your king.” (Schiller: Maria Stuart.)]. On the back page is a poem that he wrote (in Russian) to the memory of the recently deceased Peter Kropotkin, under the title “I won’t resurrect”.

  38. 38.

    In the preface of the 1924 book, Charasoff notes that he corrected the students’ notes of his lectures and “poked out” on his typewriter a compilation of text passages that had been taken from his German books, from a “Summary of Political Economy” published two years ago by a local publishing house, and from some unpublished manuscripts. No copy could be found of the “locally printed” “Summary of Political Economy” of 1922.

  39. 39.

    Charasoff refers to a footnote in the German edition of Bukharin’s Politische Ökonomie des Rentners, which corresponds to the following note in the American edition: “Even the “benevolent” critics fail to understand this; cf. George Charasoff, op. cit., pp. 260, 26” (Bukharin [1927] 1970: n 41).

  40. 40.

    The reference to Bukharin’s Historical Materialism ([1921] 1926) shows that Charasoff also after 1915 continued to study the recent literature on Marx.

  41. 41.

    Natalie Moszkowska, of Polish descent, came to Zurich in 1908 in order to study political economy. She wrote her doctoral dissertation (published in 1917 but completed already in 1914) on workers’ savings banks in the Polish coal and steel industry under Heinrich Sieveking's supervision. It seems very likely that she and Charasoff met in Sieveking’s seminars at the University of Zurich. On Moszkowska’s life and work, see Howard and King (2000).

  42. 42.

    Peter’s thesis was submitted at the University of Tübingen in 1928 and then published in three parts as Grundprobleme der theoretischen Nationalökonomie (1933, 1934, 1937).

  43. 43.

    Peter refers to Tugan-Baranovsky (1901, 1905) and Charasoff (1909, 1910).

  44. 44.

    Klimpt had studied mathematics and economics in Berlin and Heidelberg in the 1920s. He submitted his doctoral dissertation, published subsequently as Klimpt (1936), at the University of Heidelberg in 1931.

  45. 45.

    Independently of Charasoff, a number of similar findings, including a proof of the duality properties of linear economic systems, have been presented in papers published between 1911 and 1913 by Father Maurice Potron, a French Jesuit and trained mathematician. For Potron’s contributions, see Bidard and Erreygers (2010).

  46. 46.

    The underlying mathematical reasoning and proofs had to be reconstructed; see Egidi and Gilibert (1984, 1989), Duffner and Huth ([1987] 2013), Mori (2011, 2016), and Parys (2014).

  47. 47.

    The location of the archive sources used in this paper is as follows: the “Vormundschaftsakten Kinder Charasoff” are held at the Stadtarchiv Zürich, the Kautsky Papers at the International Institute of Social History (Amsterdam), the Chertkov Papers at the Russian State Archive of Literature and Art (RGALI, Moscow), and the Roberto Michels Papers at the Fondazione Luigi Einaudi (Torino).

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The location of the archive sources used in this paper is as follows: the “Vormundschaftsakten Kinder Charasoff” are held at the Stadtarchiv Zürich, the Kautsky Papers at the International Institute of Social History (Amsterdam), the Chertkov Papers at the Russian State Archive of Literature and Art (RGALI, Moscow), and the Roberto Michels Papers at the Fondazione Luigi Einaudi (Torino).

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Acknowledgements

I am most grateful to Denis Melnik (Higher School of Economics, Moscow) for his invaluable help in tracking down the Charasoff correspondence in the Chertkov files at the State Archive of Literature and Art (RGALI) in Moscow and providing me with a summary account. I would also like to thank Vladimir Avtonomov, Harald Hagemann, John E. King, and Heinz D. Kurz for helpful comments and suggestions.

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Gehrke, C. (2022). Russia-West-Russia: Georg von Charasoff, the “Humane Economy”, and the Critique of Marx’s Theory of History. In: Avtonomov, V., Hagemann, H. (eds) Russian and Western Economic Thought. Springer Studies in the History of Economic Thought. Springer, Cham. https://doi.org/10.1007/978-3-030-99052-7_9

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