Sunday, November 23, 2025

Russian gold (1947)

From the November 1947 issue of the Socialist Standard

People whose only principle is to praise every act of the government of State Capitalist Russia, need to be very careful how they throw stones at the other capitalist states. In the Daily Worker (23/9/47) Mr. Allen Hutt pokes fun at “our elaborate apparatus for extracting the yellow metal at enormous expense from deep holes in the ground in South Africa in order to bury it again in deep holes in the ground in Kentucky.”

This is indeed one of the daft things that necessarily go with capitalism, but why is it more daft to mine gold in South Africa and bury it at Fort Knox in U.S.A. than to mine it in the gold-fields scattered all over Russia in order to hoard it in Moscow? Already by 1934 Russian gold production, according to the “U.S.S.R. Handbook” (1936, p.197) had been expanded so much that Russia claimed to be second only to South Africa as a gold producer. Mr. Hutt should read “U.S.S.R. in Reconstruction,” May, 1937 (published in Moscow) where he will learn how gold production was increased fourfold between 1930 and 1936 and was still rapidly expanding. He will read how more and more men and materials were being-poured into the remote gold regions, how scientists were perfecting methods of mining, how mines were going to deeper and deeper levels.

“The principal gold fields,” we read, “are situated hundreds of kilometres from railways and navigable waterways. Goods are transported through Taiga, boundless steppe, sand dunes and over mountain ranges to the gold fields.”

And all for what purpose? “Soviet gold flows in a broad stream to the capital of the Union of Soviet Republics, where it is refined and stamped according to the world standard.” Some of it is then sold to U.S.A., to go into the vaults at Fort Knox. The same Russian publication quotes a resolution passed by the Russian Communist Party in 1922 affirming that government policy must be “to maintain the gold fund inviolable and to develop the mining of precious metals.”

Some of the mining is carried on by the State and the rest by individuals organised into co-operative groups. Of course it is all described as “Socialist” gold-mining, whatever that is supposed to mean.

Mr. Hutt in the Daily Worker recalls how Voltaire in “Candide” describes the land of El Dorado, where gold lay about disregarded and treated like dirt. He might also have recalled how Sir Thomas More in his “Utopia ” anticipated the use of gold and silver not as precious metals but to make “chamber-pots.” It was doubtless from that source, or possibly from Kautsky’s book “Thomas More and his Utopia” (p.203), that Lenin got the idea that under Socialism gold would be used “for making public lavatories in the streets of the great cities of the world.” (Quoted by Ralph Fox in “Lenin.”)

Sir Thomas More had another notion, which was that in “Utopia” gold would be used by the masters to make ”chains and fetters for their slaves.” That is certainly the effect on the minds of the workers under capitalism, wherever the worship of the Golden Calf still flourishes.

There is another, more grim, joke that Mr. Hutt overlooked. In U.S.A., while it is an offence against capitalist law to try to make forcible entry into the vaults at Fort Knox, it is at least not illegal to disclose where the gold reserve is situated. In the Russian ‘”Utopia” they have made even that a criminal offence. According to Soviet News (11/6/47, published in London by the Soviet Embassy) the new Criminal Code makes it an offence for a private individual to disclose “information on the current account balance and operative financial plans of the U.S.S.R.,” or to disclose “the place and system and safekeeping and transportation of precious metals of the State Fund, currency valuables and money coins.”

The unlucky Russian worker who lets out that the Russian “Socialist” gold reserve is kept at Moscow or wherever it is “shall be pimishable by confinement in a reformatory labour camp for a term of from five to ten years.”

This “mild” sentence is given “provided such action cannot be qualified as treason or espionage.” What happens for the aggravated offence of giving this information to foreigners and thus committing treason is not stated. If Mr. Hutt had written his little paragraph in Russia he would have been for it.
Edgar Hardcastle

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