Pages

Wednesday, July 23, 2025

Finance and Industry: The experts are fallible (1962)

The Finance and Industry Column from the July 1962 issue of the Socialist Standard

The experts are fallible

The economic experts of capitalism—the City Editors, the economists, the financial seers—sit on something of a pedestal. Whatever twists and turns the economy may take, they are never caught without a remedy. Their readers, political parties, even governments, hang upon their words.

Which makes it very embarrassing for everybody, if the experts are shown to be as fallible as the rest.

Mr. Samuel Brittan is the Economic Editor of The Observer and last year, like all men in his position, he was expected to comment on the Selwyn Lloyd “pay pause” Budget. This is what he wrote, on September 3rd last:
I have a feeling that Mr. Selwyn Lloyd is going to surprise many people by his success in carrying out his economic policies . . . many of the people who are now most vociferous in denouncing him may be loudest in his praise a year from now.
Mr. Brittan went on to point out that in some ways the Lloyd policy was following behind events and then gave his reasons for thinking that ". . . Mr. Lloyd has been so much luckier than his predecessors . . ." 

Now—almost a year after—what does Mr. Brittan think of the Lloyd policies? Is he loud in his praise? He is not. He has been doing his homework in The Economist and has been impressed by an article in the 12th May issue of that weekly which drew some striking comparisons between the Lloyd squeeze, and what has followed it, and the Butler squeeze of 1957 and what followed that. This is what Mr. Brittan wrote in The Observer of 10th June this year:
On both occasions the same kind of arguments have led to the same mistakes. Mr. Selwyn Lloyd too often gives the impression of believing that history began in July, 1961, and has not devoted enough time to studying the mistakes of his predecessors.
And later in the same article:
Government financial measures have in recent years actually accentuated the trade fluctuations that they were supposed to control. 
If Mr. Brittan was wrong, a year ago, when he expected the Lloyd policies would be lucky enough to succeed, he could of course equally be wrong now that he is criticising the Chancellor. Capitalism is a baffling system which can catch out the experts. But if that is going to happen, there is no point in basing experts, is there?


By a few shares

A new campaign is announced by the Wider Share Ownership Committee, aimed as its name suggests to encourage more people to buy shares. It would seem to have timed its effort rather badly. After the recent Wall Street debacle we would imagine that many a small investor has gone back to his account in the Savings Bank or the old sock under the bed.

The number of shareholders in the U.K. has apparently increased over the past ten years from about a million to 3½ million. Much of this increase is presumably accounted for by firms like ICI distributing shares to their workers and to lots of small men being persuaded on to the stock exchange band-wagon by tales that capitalist inflation and prosperity were here to stay.

It will be interesting to see what success the campaign has and we hope the Committee will oblige us in due course with details of the number of shareholders in say six or twelve months time. They should make interesting reading, especially if there have been a few more stock exchange shocks in the interim.

At the same time, an analysis of how many hold how much would be useful as well as instructive. We have an idea that the greater part of those 3½  millions hardly matter when it comes to working out who really own stocks and shares.


Do they know?

Our editorial this month deals with the recent stock exchange shake-ups and makes the point that they basically reflect the general unease amongst capitalists concerning present economic prospects.

This unease has spread to most sectors of the economy and is obviously causing our politicians and their advisers some real headaches. Nor, in spite of the long words they like to use and their knowing looks, do they seem to have much idea of what to do about it all.

For example, hardly had Mr. Selwyn Lloyd finished warning us that he might have to lake fresh steps to tighten up demand than he calmly goes and cuts the minimum H.P. deposit from 20 to 10 per cent. Only a little while before, he had eased some of the restrictions on the banks. When it is remembered that he was apparently worried only a few weeks ago about a hire purchase boom, it all seems rather strange.

Some cynics have tried to explain the quick turn round as a by-election gimmick to help the Tories in their present political troubles. Perhaps so. But we have the shrewd suspicion that it only requires capitalism to go into the faintest suggestion of a spin for all the politicians and their economic experts to lose their balance. To be quite frank, we don't think really they have a clue.


The Gold Rush

One further thing we have heard for several years past from our experts is that with the new theories about money, credit, and the general control over capitalism, the importance of gold has become a thing of the past. Some of them have even gone so far as to regard it as a myth, a hoax that has been shown for what it really is by the new economic theory.

Unfortunately, our capitalists only seem to think there may be something in these theories when there is little chance of their being put to the test. Immediately things begin to get uncertain, they forget all about the theories and rush us quickly as they can into gold. Which explains the present sudden interest in gold mining shares and the heavy buying of the metal itself.

This is the classic way the capitalists have always acted in times of stress. Not currency, not stocks and shares; but lovely, shiny, golden, gold. As for economic theory, they will come back to that after the crisis has blown over.

Karl Marx, over a hundred years ago, would have found it a quite natural thing for the capitalists to do. He for one was under no delusion about the importance of gold to the capitalist system. The universal equivalent he called it, and universal equivalent it still is.
Stan Hampson

Prices in the news (1962)

From the July 1962 issue of the Socialist Standard

On the principle that only the rare and unexpected happening is “news”, and as prices have been going up for about twenty years it is at first sight surprising that newspapers still give so much space to reports of higher prices. Maybe the editors and reporters constantly hear politicians promises that there will be no more rising prices, and each time a promise is broken they are so shocked that they feel impelled to tell their readers about it. But this, if true, would only show how unobservant newspaper men are, because broken promises are even more common and less noteworthy than jumps of prices. But the latter are common enough.

The International Labour Office publishes each month in the International Labour Review a record of price movements in about ninety places in different part of the world and the.overwhelming majority of them show prices moving upwards.

In this country the average retail price level is nearly a fifth higher than it was six years ago and in the group covering rent, rates, house repairs, etc. the increase is over 40 per cent.

Among the recent price increases have been the jump in the prices of meat and potatoes, both attributed to temporary shortages. Meat prices were reported to have gone up by 10% to 20%, while potatoes now cost more than twice as much as a year ago.

Naturally the indignation reached Westminster and came into the fight at by-elections. At West Lothian the Communist candidate Mr. G. McLennan spoke about it.
If the boss cuts your wages by several shillings a week you would immediately reach for your jackets, but the Tories have brought about a real cut in wages through price increases. (D. Worker 7.6.62.)
According to the Daily Worker reporter who listened to this speech, “Gordon McLennan had a good reception when he criticised the steep raise in the prices of potatoes, other vegetables, meat and butter No-one can object to the logic of the statement that when prices go up, and until the workers can win a compensating wage increase, their wage will buy less, just as it would if the wage itself were reduced.

But the same logic seems to have escaped the Daily Worker in its editorial comment on the 30 per cent increase of meat prices in Russia and 25 per cent increase for butter. Instead of sympathising with the Russian workers and denouncing the Russian Government for copying the Tories the editor (2 June. 1962) found himself sympathising with the Russian Government for having to make the “difficult” decision to put up prices rather than spend less on armaments. The editor called it a “temporary" sacrifice on the part of the town workers and described it as being “a redistribution of income among the working people, by which those in the countryside will benefit while those in the towns will temporarily make sacrifices".

This would sound reasonable if Russia were a country in which equality of income prevailed with everyone on approximately the same standard; but that is not a fact, only the promise made and broken by Lenin, and conveniently forgotten by his successors.

On the contrary, Russia is a country of extreme inequality and, unless the situation has changed in recent years, among the comparatively rich are collective farmers and traders, who stand to benefit from the higher prices.

In any event the increase of meat anJ butter prices in the towns means a very different thing for the Moscow men and women street sweepers on a wage of about £12 a month, and the Russian “space and atomic scientists . . . bringing home wage packets of more than £20,000 a year” (John Mossman, D. Mail Moscow corespondent, 5 June, 1962.)

If you want to know whether there is any hope that prices, after climbing up for 20 years will climb down again, the answer is that it could happen, but for the workers it will not produce any benefit. Prices were falling for about 15 years from 1920 to 1935 and the workers were just as badly off as now and curiously the economists and businessmen and politicians were then hoping and praying that world prices would rise again particularly for foodstuffs, so that the world’s farming populations would be able to buy more British factory products and make industry busy again.

The world is still full of economists and politicians who say that a price system is a necessity as well as a convenience of twentieth century society, but who in practice are always complaining about the way the price system works; demanding that it be interfered with, either by government action to hold prices down or by government subsidies to increase the price paid to the manufacturer or farmer.

Unlike the non-socialist parties, all of which have their particular proposals for interfering with the way the price system works, we as socialists have no proposals to make except that the price system should be abolished along with capitalism for which it is a necessity.

The theory behind movements of prices is that if left to find their own level in the market a shortage of supply will send up the price and encourage the production of additional supplies to make good the shortage. Conversely an over-supply by depressing the price, will drive some suppliers out of business and make the price a profitable one again.

Socialism, with production carried on solely for use, without sale or price or wage or profit, will have no need for mechanism to adjust production to consumption in a reasonable fashion through the market. Meeting need will be the measure to which the volume of production will be directed, not with the idea of constantly adjusting supplies up and down to market demands (as happens under capitalism) but aiming always to have a sufficient margin of surplus and capacity to meet changes of consumption.
Edgar Hardcastle

50 Years Ago: The Unhappy Rich (1962)

The 50 Years Ago column from the July 1962 issue of the Socialist Standard

Replying to Mr. H. G. Wells apropos of his article on “What Labour Wants” (quoted “Daily News” 5.6.12.), Mr. John Ward, MP remarks: “I am bound to say that I have never in all my experience met with any evidence of jealousy on the part of the working classes in reference to the employment (!) of the wealthy. All the elaborate pictures of envy, hatred, and uncharitableness are practically the outcome of the imagination. In their special way the working people get as much pleasure out of life as the wealthier classes.”


Of course they do ! The pleasure is all theirs, John. And believe me, they haven’t a bit of thought for the rich. Look what ingratitude they show when the rich come along and offer to share their profits with them, or take them into partnership. It really isn’t good enough John, and I’m glad you’ve had the courage to speak your mind. Look at the fun they’ve been having just lately—going on strike, fighting inoffensive bobbies, upsetting the equilibrium of trade, in fact, playing the very devil generally. Of course, it’s all a part of their pleasure “in their special way.” When they are not having fun of this description I suppose they are busy with motor-cars, their yachting trips and their racing stables, which they quite overlook the cares and responsibilities that the unfortunate rich are compelled to undergo. You see, John, the question of what to do with their income is such a serious one, they haven’t time to spare a thought for anyone but themselves. 


Selfishness, of course. But the time is coming, John, when the rich will be relieved of their “employment” and its consequent anxieties and responsibilities, and given a rest. In fact, I believe the need for them will be abolished altogether. So you can console yourself, John, with the thought that their woes will soon be over. I can assure you they’ll get all that’s coming to them.

[From the Socialist Standard, July 1912.]

Obituary: Bert Humphreys (1962)

From the July 1962 issue of the Socialist Standard

A letter from Auckland, New Zealand informs us that Bert Humphreys died recently at the age of 78. He joined the Auckland Branch of the Party in 1932 and was always a tower of strength right through, until the death of his wife some time ago. Next to his family. Socialism was his only interest.
Phyllis Howard


Blogger's Note:
This short notice about the passing of Comrade Humphreys was actually part of the Branch News column from the July 1962 issue, but I thought it merited its own post.


Branch News (1962)

Party News from the July 1962 issue of the Socialist Standard

Wembley Branch has continued active and has seized the opportunity afforded by finer weather to step up efforts. Regular canvasses are still being held at the rate of one a month and a combined canvass and meeting was held at Portsmouth on June 17th. Alternating with Ealing Branch, meetings are being run every other Thursday at Earls Court throughout the Summer Season. All members arc urged to give these their utmost support.

Locally, the branch has plans for advertising its meetings by poster on Railway. Station hoardings in the area and suitable posters are being designed. Lectures and discussions are held every other Monday and these are always advertised in the local press. Often, outsiders attend and help to liven proceedings. A film show “The German Story" was scheduled for June 18th, but we go to press too early for a report on it. We hope to do this next month.

Glasgow have made a very good start and by the end of May four outdoor meetings had been held, average audience 100. Literature sales and collections amounting to nearly £5. The last indoor meeting of the winter season was held at Woodside Halls where the audience was 57 and literature sales and collection was £4. Stimulated by the activity of the elections in the Kelvin Ward, the Comrades are working harder than ever to get Socialist message over to the workers.

Comrades McCarthy and R. Mitchell went to Belfast to assist the World Socialist Party of Ireland in the recent election campaign. Fourteen members attended and supported a meeting in Blitz Square on Sunday, May 27th. Some comrades travelled from Armagh. Two sympathisers assisted the Party members and the audience at one time numbered 100. Literature was sold and a collection taken. In addition a door-to-door distribution of leaflets was made; a tour of the constituency with a public address system, stopping on the way at various housing estates to hold meetings. Leaflets were stuck on all suitable spaces—as one comrade said: "The public must have thought we were paper-hangers gone mad but to us it looked good".

The result was that the W.S.P. of Ireland polled 62 votes. Press statements had been given and three papers reported them in full. Our comrades Mitchell and McCarthy were most impressed by the well-organised hard work put in by the Irish members and commented on the pleasure it was to be of some help to them.

Coventry Group are still going strong and have moved to better premises which they feel sure will be advantageous. The Group has written to Party members in nearby Rugby and Leamington Spa with news of the Group’s activities and it is hoped that they will be able to join in and before long form the nucleus of a Coventry Branch. The Group is also contacting Birmingham Branch with a view to pooling their resources for propaganda generally.

A comrade writes from Wellington, New Zealand that several sympathisers are scanning local newspapers for reviews of the January Socialist Standard which contained articles on the Common Market as copies were circulated to the press. The main point of interest at the moment is the tape recorded lectures which members are able to pass around and so interest many more people than if they had to travel long journeys for discussions. Wherever possible members attend meetings of various organisations in order to meet people and discuss the Party case by way of questions and talks after meetings.

Swansea Branch recently had a debate with the local Liberals. 6 /- worth of literature was sold. Forty people attended and many showed great interest in the Party's point of view. A member met the prospective Liberal candidate recently and he agreed that Socialism would come eventually and that the Socialist Standard was the finest political journal on the market. It is likely that another debate will ensue before very long. In general the Socialist Party is becoming well known in the district. Maybe it won't be all that long time before another branch functions in Swansea?

. . . 

Last but not least. An appeal in last month’s issue for donations to help our propaganda work has resulted in some donations from London. Let more follow. Two comrades from Australia sent £10 to help the cause. This example will be encouraging to all those who wish to bring Socialism nearer.
Phyllis Howard

New Reprint of Art, Labour and Socialism by William Morris (1962)

Party News from the July 1962 issue of the Socialist Standard





Blogger's Note:
This 1962 pamphlet was a reprint of the SPGB's 1907 pamphlet with an added modern assessment. Reprinted below is the foreword from the 1962 Executive Committee, plus the modern assessment.



Art, Labour & Socialism by William Morris

With a Modern Assessment

Foreword

An address that William Morris delivered at University College, Oxford, was reprinted by him in the magazine Today, in February 1884, under the title “Art Under Plutocracy”.

In 1907 the larger part of it was published by the Socialist Party of Great Britain in pamphlet form as Art, Labour and Socialism.

It has long been out of print and we are issuing it again because, in the words of our Foreword to our original edition:
“It is not often that an accepted master in the arts can express himself with lucid brevity in the language of the common people; and even less frequently is that master able to scientifically diagnose the conditions of his own craft”.

“It is therefore the more refreshing to discover a work by an admittedly great figure in the artistic world which gets down surely to rock bottom facts, and in a style of quite charming simplicity establishes the connection of art and labour, and the conditions of labour which, after all—and however distasteful the information may be to the school of the ‘Intellectuals’—art is, in the final analysis, no more than a reflection”.

“We do not claim for Morris that he was always a convincing and consistent instructor in economics. Indeed, his work in this direction, regarded as a whole, entitles him to no more than a place in the category of the Utopians . . . But this does not blind us to the fact that Morris occasionally struck shrewdly at the pretensions of a vainglorious and shoddy intellectuality, placed art in its proper perspective, and did effective service by his unequivocal insistence upon the necessity, not only of passive working class discontent with, but active working class revolt against, the system of society that enslaves them, robs them of the results of their labours, and incidentally deprives them of that joy in the work of their hands which stands for him at the very foundation of art”.
Executive Committee

Socialist Party of Great Britain

February 1962

 

A Modern Assessment

I. Morris and His Work

Most of the writings about Morris concentrate upon his work as a poet, interior decorator, printer and designer of coloured glass windows, but neglect the other side of his activities: speaker, teacher, and writer about Socialism.

He was already an international figure in the art world when the poverty, squalor and ugliness that constantly confronted him led him to probe into the problem, and he began to take an interest in Socialism, and finally came to study Marx’s Capital.

He joined the Social Democratic Federation, which claimed adherence to Marxism, in 1881. However, he soon became dissatisfied with its reformist policies and its electioneering tactics. He left the organisation along with Eleanor Marx, Belfort Bax, Frederick Lessner (and old associate of Marx in the production of the Communist Manifesto) and Marx’s son-in-law Edward Aveling. They then formed the ‘Socialist League’ in 1884. Along with Bax he edited the ‘League’s’ Journal The Commonweal. In the first number of this journal, on the front page, there appeared an ‘Introductory’ by Morris and the ‘Manifesto’ of the League. The beginning of the ‘Introductory’ was as follows: – “We beg our readers’ leave for a few words in which to introduce them to this socialist journal, The Commonweal. In the first place we ask them to understand that the Editor and Sub-Editor of The Commonweal are acting as delegates of the Socialist League, under its direct control; any slip in principles, therefore, any misstatement of the aims and tactics of the League, are liable to correction from the representatives of that body. As to the conduct of The Commonweal, it must be remembered that it has one aim—the propagation of Socialism”.

This was certainly an innovation and a very promising start. A few paragraphs from the League’s ‘Manifesto’ will further indicate how far Morris and his associates had progressed in understanding:
“Fellow Citizens,

We come before you as a body advocating the principles of Revolutionary International Socialism; that is, we seek a change in the basis of Society—a change which would destroy the distinctions of classes and nationalities.

As the civilised world is at present constituted, there are two classes of Society—the one possessing wealth and the instruments of its production, the other producing wealth by means of those instruments but only by the leave and for the use of the possessing classes.

These two classes are necessarily in antagonism to one another. The possessing class, or non-producers, can only live as a class on the unpaid labour of the producers—the more unpaid labour they can wring out of them, the richer they will be; therefore the producing class—the worker—are driven to strive to better themselves at the expense of the possessing class, and the conflict between the two is ceaseless. Sometimes it takes the form of open rebellion, sometimes of strikes, sometimes of mere widespread mendicancy and crime; but it is always going on in one form or other, though it may not always be obvious to the thoughtless looker-on.

We have spoken of unpaid labour: it is necessary to explain what that means. The sole possession of the producing class is the power of labour inherent in their bodies; but since, as we have already said, the richer classes possess all the instruments of labour, that is, the land, capital, and machinery, the producers or workers are forced to sell their sole possession, the power of labour, on such terms as the possessing class will grant them.

These terms are, that after they have produced enough to keep them in working order, and enable them to beget children to take their places when they are worn out, the surplus of their products shall belong to the possessors of property, which bargain is based on the fact that every man working in a civilised community can produce more than he needs for his own sustenance.

This relation of the possessing class to the working class is the essential basis of the system of producing for a profit, on which our modern Society is founded.”
Although this was written so long ago, how well it fits conditions today, despite the claims that capitalism has changed and society has progressed. There is a further quotation from the ‘Manifesto’ which makes the comparison even more apt:
“Nationalisation of the land alone, which many earnest and sincere persons are now preaching, would be useless so long as labour was subject to the fleecing of surplus value inevitable under the Capitalist system.

No better solution would be that of State Socialism, by whatever name it may be called, whose aim it would be to make concessions to the working class while leaving the present system of capital and wages still in operation: no number of merely administrative changes, until the workers are in possession of all political power, would make any real approach to Socialism.

The Socialist League therefore aims at the realisation of complete Revolutionary Socialism, and well knows that this can never happen in any one country without the help of the workers of all civilisation.”
The last three paragraphs show how far in advance Morris was in relation to the Socialism in one country Communists, the Labour Party, and the multitude of reformers who misuse the word Socialism.

As this pamphlet shows, what was of abiding interest to Morris was to build up a Socialist system, devoid of wage-slavery and degrading toil, in which conditions would enable the producer to find joy in his labour, and would therefore enable him to make articles that were both useful and beautiful.

In Art, Labour & Socialism Morris had something worthwhile to say to his generation; we must consider now whether it is relevant to the conditions of today—and tomorrow. Some of the problems are examined in the following pages.

II. Has Machinery Lightened Labour?
In Art, Labour & Socialism Morris invited his readers to look at the purpose for which employers had used machinery. Like Marx before him, Morris agreed with John Stuart Mill who had written in his Principles of Political Economy:
“It is questionable if all the mechanical inventions yet made have lightened the day’s toil of any human being.”
Mill went on to say:
“They [machines] have enabled a greater population to live the same life of drudgery and imprisonment, and an increased number of manufacturers and others to make fortunes.”
One evil consequence of the introduction of machinery was that it increased the employment of women and children in the factories. Sir William Ashley in his work, The Economic Organisation of England (Longmans, 1921, page 161), wrote of this development:
“The new machinery rendered the work physically so light that it became possible to employ women and children in large numbers; and the sinking of capital in costly machinery made it seem in the interest of employers to work that machinery as continuously as possible. Neither the employment of children nor excessive hours were absolutely new phenomena. Both had been seen in the domestic workshop. But the employment of children was now systematised and extended on a vast scale; and excessive hours, instead of being an occasional episode, say once a week, became a regular thing, every day in the week.”
In the same year that Mill’s work was published, 1848, Marx and Engels had written in the Communist Manifesto:
“ . . . in proportion as the use of machinery and division of labour increases, in the same proportion the burden of toil also increases, whether by prolongation of the working hours, by increase of the work exacted in a given time, or by increased speed of the machinery etc.”
Marx, Mill and Ashley were writing of a period when machinery was taking away the livelihood of craftsmen and forcing them to work in factories under harsh conditions and for long hours. Since then, as the working hours of most workers have been much reduced and child labour in factories has been made illegal, we may ask to what extent the statements made by Marx and Mill in 1848 would be true today. We can accept that there are fewer workers doing jobs which involve heavy lifting, hauling, hammering, excavating and other hard physical effort, but along with a fairly general shortening of the working day and working week labour has been intensified, the speed of machines has increased (and with it the number of accidents) and more workers are compelled to perform monotonous repetition work which can be as tiring as heavy physical labour. It is the aim of employers to exact as much effort in the shorter working week as before, a fact making itself felt in the workers’ fatigue at the end of the day and the week.

The claim made in the early days of machine production that machinery lightens the labour and increases the comfort of the worker is being made now for automation; but again the high capital cost is leading to a worsening of conditions—this time in the increase of shift working. Mr P. G. Hunt of the Labour Relations Staff of the Ford Motor Company wrote about this in 1958. After claiming that with automation “almost invariably . . . the physical effort of the operator is vastly reduced or even completely eliminated”, he went on:
“A further factor that emanates from the high initial cost of automated plant is the need to recoup on capital outlay within a reasonable period, which can be achieved only by high utilisation of the equipment concerned. Such a recoupment in turn can be achieved only by longer hours, and longer hours mean shift working. . . . There is no denying the unpopularity of shift work particularly night work—with the majority of those who are called upon to operate it. It seems clear, however, that the trend towards such working must continue and increase, and that automation is at least in part responsible for this” (Financial Times, 1 December 1958).
Even the reduced hours of work are an illusory gain because, with the concentration of manufacture in big industrial areas, workers are compelled to travel longer distances between home and work.

Machinery has clearly failed to give that lightening of toil that it could have given and that economists and employers claimed in the early days that it would. We have an illustration of this in the picture that industrialisation presents to workers in less developed countries. Far from being invited to enjoy the prospect of having machines to lighten toil for them, and raise their standard of living with less effort on their part, they are being told by their leaders to be prepared to work harder: Mr Jomo Kenyatta, leader of Kenya Africans, hit on the appropriate phrase of calling on his followers to be prepared to work as hard as white men! (Daily Express, 6 November 1961).

 III. The Employers’ Attitude to Machinery
We live in a world in which each day brings news of inventions and discoveries in the field of industrial machinery and methods; but not all of them are applied. Some never get beyond the stage of being tested; they are ideas that will not work in a practical way. But some which are proved to be technically sound and practical never come into commercial use. As it is put in a pamphlet on Automation: “Technically about every industrial operation could be made automatic but economically many are impracticable” (What is this Thing called Automation; published by ASSET). It is only the economically practicable ones that are of interest to employers, the ones that will increase their profit.

There could be no clearer illustration of this than the fact that employers, after installing new machinery, will even remove it if it does not pay. Over a century ago a Government Commission of Inquiry into the conditions of hand-loom weavers reported instances in 1834 “where employers gave up machinery and went back to hand labour as it was cheaper” (Industrial and Commercial Revolutions in Great Britain in the Nineteenth Century, Professor L C A Knowles. Second Edition, page 119). That happening in Britain in 1834 has its recent parallel in USA. The pamphlet on Automation referred to above relates how “In Cleveland, Ford management reverted to hand insertion of small liner bearings in the engine-block because automation of this process was uneconomical”.

What most commonly determines whether a new machine will be economic is the level of wages of the workers whom the machine will displace. It follows from this that variations of wage levels can cause machinery to be economic in one place and not in another and at one time and not at another.

Marx wrote about this in the eighteen-sixties:
“Hence the invention nowadays of machines in England that are employed in only North America; just as in the sixteenth and seventeenth centuries machines were invented in Germany to be used only in Holland, and just as many a French invention of the eighteenth century was exploited in England alone” (Capital, Vol. I. Kerr Edition, 1906, page 429).
It is not labour-saving as such that the capitalist seeks, but cost-saving, and if for any reason wages are relatively low the capitalist will be quite content to carry on production by methods which employ large amounts of labour. As Marx put it, “Nowhere do we find a more shameful squandering of human labour-power for the most despicable purposes than in England, the land of machinery”.

It is the same in our own times. Machinery is manufactured in one country or locality where wages are low for use elsewhere in relatively high wage areas.

It was the scarcity of workers in rural areas of Britain and America during the two world wars that led to a great increase in the use of machinery that had been long available. Milking machines were being marketed for many years before labour-shortage caused them to be taken up in considerable numbers. The Encyclopaedia Britannica has the following on the use of these machines in USA: “The shortage and the high price of desirable labour for milking cows has extended the use of milking machine” (1950 Edition, Vol. 6, page 983). Even so it was estimated that in 1944, nearly 30 years after such machines were available, only 25 to 30 per cent of American dairy farmers used them.

Sometimes new machines are brought into use not because they directly save labour or cost, but because they give additional precision, which is of course indirectly profitable for the manufacturers selling the products of the machine in competition with other, less efficient products. And sometimes the gain is simply speed of production. It may be good business for a company to use machinery which is quicker, but the products of which are more costly, if by this means the products can be put on the market for quick sale, in advance of the cheaper but more slowly completed products of rival firms.

This is a particular example of a widespread waste that results from capitalist competition. The successful competitor who captures the market is not concerned that his success may mean the bankruptcy of unsuccessful rivals and the consequent breaking up of plant and machinery which could still be useful. When competition is keen it will induce profitable companies to scrap their own plant and machinery while it still has years of useful life before it in order to install costly improved machinery that will enable them to keep ahead in the race for markets.

The picture of capitalism’s use of machinery is hardly complete without reference to the construction of a £30,000 mail bag, power machine shop in Leicester Prison in November 1961, ending the years-long prison labour of hand-stitching. Mechanisation was needed “to meet the mail bag supply demands from the Post Office”.

IV. Socialism and Work
The establishment of socialism will bring far-reaching changes in production and distribution, flowing logically from the ownership of the means of producing wealth being transferred to the whole of society.

The products of labour will no longer be privately owned; incomes from property ownership and from employment will alike disappear, along with buying, selling, and profit-making.

In distribution the principle will be “according to need”, and, of course, without the double standards that now exist throughout the capitalist world, of best quality for the rich, and varying degrees of shoddiness for the poor; which, in turn, presupposes that in production every person will give “according to his or her ability” and will see to it that there are no poor quality goods turned out.

Unfettered access to educational and training facilities will enable all to acquire knowledge and skill and end the existing barriers between unskilled and skilled, manual and mental labour.

Great demands will be made on the productive capacity of society but there will be ample means of satisfying them. With the ending of capitalism enormous additional resources of men and materials will become available through stopping the waste of arms and armaments, and the innumerable activities that are necessary only to capitalism, including the governmental and private bureaucracies, banking and insurance, and the monetary operations that accompany every branch of production and distribution. On a conservative estimate this release of capacity will double the number of men and women available for the work of useful production and distribution. In addition, we may expect a continuing annual increase of productivity resulting from the accumulation of skill and knowledge and of productive equipment.

With these large additional resources at its disposal society will easily be able—if need be with some loss of productivity in particular fields—to end excessive hours of work, harmful speed and intensity, and unnecessary night and shift work, and to use machinery to replace human labour for types of work that cannot be other than unpleasant. This socialist policy will be a reversal of the capitalist policy applied in the nationalised coal industry, the head of which, Lord Robens, can declare that “there are literally thousands of jobs in industry which can give no satisfaction to the workers and never could” and can at the same time be increasing anti-social hours of work by pressing for shift working round the clock in order to avoid “expensive machinery” standing idle for a large part of the 24 hours (Times, 9 October 1961, and Sunday Telegraph, 9 July 1961).

Morris and Marx stated a positive attitude to labour, but before considering what they said it will be useful to examine the criticism that both were viewing the problem in relation to the ruin of craftsmanship by machinery, and that in the present century the problem is a different one and needs a different approach.

Marx and Engels, in the Communist Manifesto to which reference has already been made, wrote about the advent of machinery in the late eighteenth and early nineteenth century:
“Owing to the extensive use of machinery and to division of labour, the work of the proletarian has lost all individual character, and consequently all charm for the workman. He becomes an appendage of the machine, and it is only the most simple, most monotonous, and most easily acquired knack, that is required of him.”
One critic of Marx was the late Henri de Man who published a study of machine work in Germany in the early nineteen-twenties, part of which was republished in England under the title Joy in Labour (George Allen & Unwin, 1929).

His criticism was that Marx drew a general conclusion about machine work based largely on the textile industries and that while that conclusion remained unquestionably applicable to “large strata of the working class . . . there are other strata to which the technical developments of the last eighty years have made it completely inapplicable, so that of them the reverse is true” (page 85).

Henri de Man’s two conclusions were that even under capitalism “the existence of detail work is not necessarily a cause of distaste for work” and that it is not impossible for skilled machine work to give the work full satisfaction even though much machine work fails to do so. We can accept both points, but they do not affect the validity of the general principle behind Marx’s words. Marx was not arguing that work with machinery is necessarily an evil. Like Morris, he recognised that it would be a positive gain if much unpleasant and degrading manual work was done by machines: as already mentioned, one of his charges against British capitalists was that they had failed to replace labour of that sort by machinery because it did not pay them to do so.

Following on the same train of thought Marx maintained that Socialism would do what capitalists had failed to do and that “in a communist society (*) there would be a very different scope for the employment of machinery than there can be in a bourgeois society” (Capital Vol I, Chapter XV, Section 2).

In a speech made in 1856 Marx had this to say of the possibilities of machinery: “Machinery, gifted with the wonderful power of shortening and fructifying human labour, we behold starving and overworking it”.

(*) In the middle of the nineteenth century Marx preferred to use the word communism because of the current misleading ideas associated with the word Socialism. Later on, he used the two words interchangeably to mean what the SPGB means by Socialism: which, of course, has no relationship to the misuse of the terms Socialism and Communism as applied to Russia today.

The central point of Marx’s criticism was that man should not be an appendage of a machine, doing monotonous work robbed of all individual character and charm, any more than he should be doing manual work of a like kind.

There are three principles that can be applied to work and production. The capitalist would like to have a working class which “lives to produce”; working class life being subordinated to the need of producing profit. A second attitude is that of many non-socialist workers and trade unions, that workers should “produce to live”; work being accepted as a necessary evil, to be kept to a minimum, and “life” to be lived in the leisure hours.

Marx and Morris took a third view, that the aim for a society of free men and women should be that work is part of life, no more to be neglected than other intelligently conducted human activities.

Marx, writing in 1875, stated his view with force and passion:
“ . . . when the slavish subordination of the individual to the yoke of the division of labour has disappeared, and when concomitantly the distinction between mental and physical work has ceased to exist; when labour is no longer the means to live, but is in itself the first of vital needs; when the productive forces of society have expanded proportionately with the multiform development of the individuals of whom society is made up—then will the narrow bourgeois outlook be transcended, and then will society inscribe upon its banners ‘from everyone according to his capacities, to everyone according to his needs’” (From Marx’s Criticism of the Gotha Programme, SLP Edition, page 9).
There is a certain irony in the situation that while many workers are content to accept tedious, repetition work as a necessity some employers have themselves discovered that its damaging effect on the workers is such that it does not pay. The Economist (2 December 1961), writes about this discovery:
“In the early years of scientific management it was presumed that the greater the breakdown of jobs into their component parts, the greater the efficiency. The trouble with this, however, was that men came to be treated as mere extensions to their machines. Today, industrial theorists have come to realise that beyond a certain point the simplification of work creates so many problems of boredom and dissatisfaction among workers that diminishing returns may set in. as a result, in many firms the pendulum has begun to swing back a little, and some tasks are being deliberately re-combined to make their execution more complex”.
It will be seen that Marx posed the same issue as did Morris. Is it still a real issue? Some people think that automation will abolish all work problems, and that we shall have workless production:
“Today our life is largely shaped by having to produce goods for our feeding, for our clothing, and so on. Suppose we could just turn on a spigot and have all these basic things just as we now have water?” (Robert Jungk, Guardian, 2 November 1961).
That idea came into the minds of many people (Robert Owen among them) in the early days of machinery; but for the foreseeable future it is a fantasy. Not that it would be technically impossible to build a factory operated by very few workers (this is an early possibility); but that is not production without workers, any more than the automatic telephone system or the driverless train system is production without workers. What has been going on for a century or more is the progressive elimination of workers from some manual operations, with simultaneous increased numbers of machine-making workers in the metal, engineering and electrical industries and of workers in engaged on maintaining the machines. Overall, there is a continuing small net saving of labour, but no dramatic developments that would change the present dependence of production on human labour in some form or other.

What then should be the Socialist attitude to the issues posed by Marx and Morris? There is no doubt what the answer must be. In a free society, depending for its healthy functioning on agreement and voluntary co-operation, in which “the government of persons will have given way to the administration of things”, people will not wish to spend the working part of their lives as human automatons serving machines, any more than as human automatons performing monotonous manual operations. The principle must be that people in a Socialist society shall be able to bring to all the various aspects of life, including work, all qualities of body and mind, skill, knowledge, thought and imagination.

Arts, crafts and machine techniques will all have their place as Marx and Morris would have urged. The difference since their day is that powers and methods of production have become vastly greater and more varied; which means that man’s power to control the conditions of his life is correspondingly greater. He has potentially must greater freedom of choice and it is inconceivable that under Socialism man will decide to enslave himself to productive processes of his own making.

We are confident that the reader will find Morris’s work ideas worth thinking about, including that most important idea of all, that in order to get a better system of society it is necessary to get rid of Capitalism and establish Socialism.

SPGB Meetings (1962)

Party News from the July 1962 issue of the Socialist Standard

This Month's Quotation: A Prominent Communist. (1938)

The Front Page quote from the July 1938 issue of the Socialist Standard
"There are no such things as defensive or aggressive wars under capitalism . . . Wars are not caused to 'defend democracy' . . . Wars are caused in the search for profit”
This Month's Quotation
Our Panel this month is taken from the New Leader (20/5/1938), who quote from the pamphlet, Labour & War, by Harry Pollitt, published by the Communist Party of Great Britain in 1934.

Our Practical Policy (1938)

From the July 1938 issue of the Socialist Standard

Readers of the Socialist Standard are far greater in numbers than the membership of the “Socialist Party.” At this time of the year especially, when more meetings are held and more of our literature is sold, the official organ of our Party reaches a still wider circle. The result of this activity reflects itself in wider discussions at our meetings and in the letters we receive from critics.

Now there is one very curious thing about certain of our critics, whether well or ill-acquainted with the Socialist Party’s case. They show as keen a desire to agree with the Party position as they do to disagree with the Party’s exposition of it. A few words in explanation will illustrate the apparently unconscious mental contradiction. Every issue of the “S.S,” includes a statement of our Object and of our Declaration of Principles. The latter, to all but very simple minds, is bound up with , the Object — Socialism. These are a lucid and logical statement of the essential facts about capitalist society, and describe the basic action necessary for its removal and for the establishing of Socialism.

The type of critic referred to often shows some acquaintance with the doctrines and teachings of Socialism to the extent that they will not quarrel with our definition of Socialism nor our Declaration of principles. They will even compliment us on their clarity and will express approval of them —“but” and it is the qualifying ‘‘but” which exposes our critics. In fact, they show that what they agree with is a form of words. They completely fail to interpret the Declaration of Principles in the light of the realities of the modern political world.

What is Policy ?
Consider some of the familiar arguments of our opponents, remembering, too, that they are also the arguments of some professing friends. “The Socialist Party has been in existence for thirty-four years and has done nothing . . .” “After thirty-four years the S.P. has only one candidate for. Parliament . . . ." “The Socialist Party has no policy—has never had a policy.” Like the proverbial Irishman who is “agin the Government,” the obstinate negator offers the same difficulty as trying to get to grips with a shadow. But never let it be said that we evaded the job. We will try to be simple, to avoid phrases, to avoid giving offence by appearing to be clever when really we are merely stating an accurately tested truth. Now: The Socialist Party is organised for Socialism. It has defined Socialism. The definition of our Object, “. . . the common ownership and democratic control of the means and instruments for producing and distributing wealth . . . " appears in every Party publication. The attaining of that Object is the task of the Socialist Party. Logically there could be no other. To achieve this object the Socialist Party must first concentrate upon the making of Socialists. There can be no other policy at this stage, because, simply, there can be no Socialism without first there are Socialists. Nor do our critics who profess to agree with us, "but”— tell us what they consider the policy of a Socialist Party should be. They do not because they cannot or dare not. They cannot because to deny the obvious necessity for the making of Socialists before Socialism can be established would stamp them as being incapable of interpreting the political world with the .weapons of Socialist understanding. They dare not because any alternative policy would reveal its reformist and capitalist character and expose the ignorance of its supporters. Let us not be misunderstood. The making of Socialists is not the end all in Socialist policy. But it is the only policy for the moment. There will come a time when the detailed working out of the necessary steps for the dispossessing of the capitalist class will have to be made. But this will only be practical policy when there are sufficient Socialists for the task. The need for it will, in fact, quite obviously, arise out of the conditions of the time. Just as now the first essentials of Socialist policy, the making of Socialists, arises out of the conditions of the present. Doubtless the working out of a detailed policy for the future, aimed at and showing the step-by-step process by which a Socialist working class would effect the dispossession of the capitalists and the overthrow of their system, would be an interesting task. It would, however, in view of the smallness of the Socialist movement and the fact that the structural administration of capitalism is subject to change, be almost purely academic, and most certainly useless. Even the working out of a tactical policy for pursuing the fight with our opponents in the political field is not even an immediate practicable question because: (1) there can be little struggle with opponents who mostly choose to ignore us and (2) because we have little effective backing from the workers. With regret, but without pessimism, it must be admitted that the immediate task of Socialists is chiefly propagandist, that is to say, explaining and interpreting the events of the capitalist world with Socialist knowledge and understanding. This burden we carry out with all the difficulties of voluntary organisation. We have, therefore, no time for unreal grandiose planning. We are busy working-men who, with Engels, would say: "The man who has something serious to say cannot compete with those who have all day to gossip in.” It is, however, the absence of detailed plans which confuse would-be critics (many who style themselves Socialists) of the Socialist Party.

No plan appears to them to mean no policy.' They are wrong and misled by interested leaders whose positions depend upon producing plausible plans purporting to aim at a short cut to social salvations What is not recognised is the irrefutable fact that the subject social position of the worker is bound up with' the Capitalist social system and will only disappear with capitalism, and that any policy which is not directed to bringing capitalism to an end is useless from the Socialist point of view.

The Day-to-Day Struggle
Almost a term of abuse now is the charge that the Socialist Party does not take part in the “day-to-day struggle.” The charge is, of course, untrue. In relation to our numbers our members are engaged in trade union activity comparable to those in any other political organisation. Some of our members hold official positions in their trade unions. Heavy demands are made on the time of our speakers in visiting trade union branches in order to state the case for the Party. Trade union activity is encouraged to its fullest extent. At all times Socialists enter the struggle on the economic field conscious of its limitations. But more often our critics have in mind the struggle on the political field when they charge us with ignoring “the day-to-day struggle.” In that field the struggle is represented to centre around the struggle for peace, democracy, and so forth. We are represented as having no interest in these things because we refuse to line up with the conglomeration of parties in the Labour Movement which is organising to demand them. It is not understood that the amount of democracy possessed by any section of the workers is the result of its struggles with its own capitalist class and independent of the struggles between sections of the capitalists; that when workers are able to impose peace upon the capitalist world they will have achieved such a degree of understanding that they will be in a position to impose far more than that. There is never peace in the capitalist world, only Socialism can guarantee peace. But let us look at the so-called working-class parties with whom it is assumed we should have some common interests and a common policy.

The Communist Party: It is committed to the policy of advocating the military alliance of Great Britain, France and Russia. This has been interpreted by one British Communist writer (T. A. Jackson) as willingness to defend the British Empire. In France the same policy found its expression in Communist advocacy of a Popular Front, which in reality is a premature anticipation of the war-time need of a coalition of all parties in order to defend French capitalism. Though Maurice Thorez has gone further and has said: 
“ Our policy of the People’s Front was not a transitory or temporary tactic, or an electoral pact, but an application of the fundamental principles of Marxism and Leninism, an alliance that will last between the working class and the middle classes'' (Discussion [Communist monthly], July, 1937).
Imagine a parallel picture applied to England. The Communist Party, the Liberals (including Mr. Lloyd George), and “progressive” Conservatives, like the Communist Party’s new sweetheart, the Duchess of Atholl, all included in a Popular Front which is represented to be an alliance between the working class and the middle classes that will last, and as an application of Marxism!

So far as the Labour Party is concerned its difference with the Communists seems to be that it will not have anything to do with them. But, like the Communist Party, it is committed to "Collective Security.” What that means can be measured by the statement of the Minister of War in the British Government that “Britain would only fight in ? future war with allies, that is to say, within a system of Collective Security.” All that need be said about the I.L.P. is that they are at present attempting to negotiate electoral arrangements with the Labour Party. These “working-class” parties are certainly engaged in the day-to-day struggle— but for the benefit of the capitalist class, not for the working class.

It is sheer self-delusion and a misrepresentation of Socialist principles to suggest that because these parties have their origin in the working-class struggle and screen their reform activities with high-sounding working-class sentiment and what appear to be Socialist phrases and slogans, that Socialists can make common cause with them.

The Socialist attitude on war, as on other major questions, is so fundamentally different from that of these parties that it would be a betrayal of Socialist principles and working-class interests to pretend that there could be any point of contact between them and us which could provide a basis for common policy, and no Socialist has any illusions about it. This position, we know, results in our isolation and prevents us engaging in activity which to masses of workers appears to be in their interests. The plaudits provoked by demagogic appeals to political ignorance and popular sentiment are attractive to the weak and the unstable. For us, for the moment, lies apparent isolation and unpopularity—but independence. The ability to endure it in the face of the attractions of demagogy is a test for real virility.

The Making of Socialists
Spontaneous discontent with capitalism rarely in itself makes a Socialist. Something else is necessary. That something is the assimilation of ideas—Socialist ideas. The extent to which the workers are able to do this depends on many factors, but the chief one is propaganda. In a clear field, without the strains and stresses of capitalist propaganda pulling in the opposite direction, Socialist propaganda would easily win a rapid and decisive victory. Whilst all prophecy is speculative, the facts of history are pertinent. In the earlier days of capitalism capitalist propaganda was brutally anti-Socialist. When the Labour movement came into existence (after two hundred years of capitalism) a gradual change took place. Capitalist propaganda is now more subtle and has learned how to use pseudo-Socialist phraseology to serve capitalist interests. Hitler and Mussolini are excellent examples of the use of this trick. The British capitalist class are able to use the British Labour Party and its doctrines for the same purpose. How far the working class will have to acquire Socialist knowledge to nullify the influence of capitalist propaganda will depend upon how far that propaganda exposes itself. Enough to say that at the moment a worker has to be well grounded to escape that influence. But the capitalist has to be everlastingly on the look-out for new ways of preventing the worker from seeing his social relationship as it really is.

Each new effort on the part of the capitalist class expresses a weakening of its influence. As this goes on it will be easier for the worker to interpret the world in the light of his interests. The stresses and strains of capitalist propaganda will lessen their pull. At a given point the acceptance of Socialist ideas must become more general and consequently develop more rapidly. No one with a knowledge of historical movement would deny the possibility of reaching that historical stage within our lifetime. Those who are Socialists will work for it as tenaciously as the Socialist Party has worked for it for 30 years. We have worked for it, never once betraying Socialist principles nor obscuring the immensity of the task. We have maintained our existence on a voluntary basis and have outlived organisations which had far greater resources in finance and membership. We have never been guilty of fostering disillusionment, like the Communists in 1919, when they prophesied the end of capitalism in Europe in a few months and in America in a few years.

In short, the Socialist Party’s policy is based upon a sound understanding and application of Socialist principles, which expresses itself in the immediate and urgent task of making Socialists.
Harry Waite

Who are the malingerers? (1938)

From the July 1938 issue of the Socialist Standard

To be unemployed means to be without work to do. But who is likely to worry much about that ? Does work give us such a grand and glorious feeling that we need lose sleep over its absence?

It may be true, it certainly is true, that labour is “an eternal nature-imposed necessity” to secure the continued existence of the human race, but it is equally true that the march of humanity from savagery to civilisation has been largely motivated by the desire to avoid “work" or to lighten its load. That in this process more and more work has been effected is another side of the story. Whichever way one cares to look at the matter the fact is that work in modern society has assumed such paramount importance that people have actually demanded the "right to work.” It was this that prompted Paul Lafargue, the able and witty son-in-law of Marx, to summon the working class to proclaim the “right to be lazy.”

The Unemployment Assistance Board has undertaken an enquiry into the "causes of prolonged unemployment in individual cases.” Lord Rushcliffe, chairman of the Board, in his report for the year 1937, says that—"It is expected that, as a result of this enquiry, information of great practical importance will be obtained. It has already become clear that there is a considerable number of men and women who have lost interest and are content to remain on unemployment allowance.” The report goes on to point out that—"There are those whose unemployment is due to wilful idleness, who avoid or refuse work when it is obtainable, or throw up jobs upon some flimsy pretext.” It is admitted in this report that the percentage of such cases is small, “but the number is sufficiently large to cause the Board much concern.” That ”much concern” is ominous! From inquiries made in December over 250,000 of the male applicants to the Board were 45 years of age or over, and of such men about 140,000 were 55 years of age or over. Nearly one-third of the men of these ages have been unemployed continuously for three years or more. But the significance of another statement contained in this report may, we are afraid, pass unnoticed. “It is obviously against good policy,” says the report, “that an able-bodied person when out of work and dependent upon public funds for support should be as well off as or, indeed, better off than he would be in work.” What a handsome reward for work there must be that it can be so bluntly stated that men are better off without it.

We are told that half the male applicants declare normal wages of less than fifty shillings per week. In about six per cent., or over 30,000 of the cases, the applicant was receiving an allowance from the Board which was within four shillings of his normal wages. And what is normal wages? The following instances are given in the report. Applicant, aged 48, wife and eight children—scale allowance, 54s., normal wages, 38s., allowance paid, 45s. Applicant, aged 31, wife and seven children—scale allowance, 48s. 7d., normal wages, 40s. 6d., allowance paid, 45s. These are figures that tell their own story, but let us leave it at that for the moment, we have some comments to make. This Britain, which is called ours, but which in reality does not belong to 90 per cent. of the population, is one of the richest parts of the world. Yet, significantly enough, this is but another way of saying that poverty is as commonplace here as anywhere on the earth's surface. For riches and poverty exist side by side under capitalism as surely as night follows day; the one lives, leech-like, on the other’s existence. The wealth of this country or of the world does not descend from heaven, nor does it grow from the earth in the manner of a tropical vegetation.

The rich or ruling class lives, as it can only live, on the proceeds of the labour of the poor, and the poor are the people who are known as workers. They work for the benefit of others because, as things are, they have no other means of obtaining a livelihood. But our highly industrialised, civilised form of society is such that not even all those who are able and willing to work have the opportunity of so doing. At the moment there are roughly about 1,750,000 men and women in this country unemployed. This means that the rich, or employing class, can find no profitable use for them. But the time is past when the ruling class can with safety to itself leave so vast a number of people to starve, they cannot be left to rot and die. Hence we have the “dole” and Poor Law Relief, besides various charity societies ministering to “the poor and needy.” Of course, the whole thing is at bottom a gigantic swindle. For take a glance at the position of those who have need of the dole or Poor Law Relief and charity. They belong to the only useful class in modern society, the only class which actually produces the wealth of the world. The wheels of industry and commerce are dependent for their motion not upon the rich but upon the poor. But what is their reward for all this under capitalism? If the average worker is fortunate enough to be in employment for the major portion of his life, he generally finishes up much as he began, without means and often in debt. Throughout their entire lifetime the workers’ experience is usually a “hand-to-mouth” existence. It has been calculated that out of a total population of 47 millions 13½ millions are seriously undernourished, are compelled to eke out a miserable existence on less than six shillings per week to spend on food.

As we are writing these notes there comes to hand a Press report of a woman charged with stealing goods valued £8 10s. She stated in defence that she stole the goods to sell them to buy food for her children. Two years ago her husband had to go into hospital through eye trouble, the eye was finally removed. Meanwhile, she fell into arrears with the rent and her home was taken from her. When the husband left the hospital he was confronted with the double problem of finding work and a home.

On being asked by the magistrate what she had for dinner the previous day the woman replied—” The children had an egg, I had a corned beef sandwich, and my husband had nothing.”

The woman was placed on probation for twelve months!

The Grand Contrast
But the above state of affairs does not apply to all. The ten per cent. of the population who practically own “this England of ours” experience no such sensations. They live without fear of economic insecurity, in luxury, are never “out of work”—and never in. The same editions of the capitalist Press reporting the case mentioned above and the “concerns” of the Public Assistance Board display picture after picture of the grand scenes at Ascot, that historical annual parade ground of every conceivable kind of social parasite.

“Ascot,” says a leader writer in the Daily Telegraph, “is like the King’s Birthday, the Tower Bridge, the cliffs of Dover, It has a purpose and a meaning. Do not run away with the idea that it is merely a race meeting. It is part of the English scene, as integral as a pack of hounds, a coster in his pearlies or a field of buttercups.” May we say that we haven't the slightest doubt about the integrity of it all. Ascot is as much an integral part of our great British tradition as the poverty of the woman who was placed on twelve months’ probation or that of the workers in general.

The King and Queen lead the way in the Ascot procession, not the stable lads who were recently on strike for a wage barely above the subsistence level. As a prelude a large dinner party was held in the Waterloo chamber of Windsor Castle. At this function the Press announced that the famous Windsor gold plate was in view on a specially-constructed stand and illuminated with tubular lighting. On the racecourse itself, “Beautifully-tailored coats and skirts of pastel-tinted silks were a dress feature.” The Duchess of Kent “wore a triple row of large pearls round her throat, after the style of a choker necklace, and had diamond clips in her hair.” And so on is one celebrity after another described in these Ascot scenes, which might conjure up to the mind the Arabian Nights or a horde of painted savages, whichever way one cares to look at it.

Shortly the King and Queen will visit Paris and their visit is to be marked by a banquet to be held in the Hall of Mirrors.

“M. Carton, President of the Association of the Chefs of France, has called for ten of the best-known chefs to collaborate with him in the preparation of the meal,” There is no mention in this forthcoming event about corned beef sandwiches. Perhaps those are reserved for the French waiters, to remind them of the great slogan of the French Revolution: "Liberty, Equality and Fraternity.”

Now the Public Assistance Board have nothing to do with the class of people who dominate the Ascot parades. It is not they who are referred to as malingerers. Yet they are the people who “toil not, neither do they spin.” The wealth they enjoy is obtained from the blood and sweat of the working class. Among the men who are described by the Public Assistance Board as having been continuously unemployed for three years are those who have helped to make possible the wonderful clothes and ornamentation of these Ascot and other “society” gatherings. Malingering is a disease arising from the anarchy generated in human relationships through class exploitation. To live without working, to live above the standard of those who have to work, that is the hall-mark of “success” in capitalist society. Parasitism is an essential part of social life to-day, therefore, the fact that here and there a few who belong to the working class may sometimes attempt to “get by” without work is but mere child's-play when it is compared with the gigantic exploitation by ten per cent. of the population of the other ninety per cent. Socialism will end social parasitism in every form. Experience proves that when people are given decent and reasonably healthy conditions in which to work they do not shrink from the task. Even the report of the Public Assistance Board is compelled to admit that “of the 451,700 homes covered by the inquiry, 415,060, or 91.9 per cent., were described as well-kept, and only 36,640, or 8.1 per cent., ill-kept.” Further, the percentage of “ill-kept homes is, as might be expected, lowest where the dwelling is of good type."

When the workers awaken to an understanding of the causes of their social conditions they will realise the mockery and insults heaped upon them by the real malingerers, those who live upon the proceeds of their exploitation. The Socialist Party urges the working class to study their position to-day and to end it through Socialism.
Robert Reynolds

Before Hitler (1938)

From the July 1938 issue of the Socialist Standard

The decade before Hitler was for German capitalism mainly a period of stabilisation and attempted recovery. Many new parties and groups were thrown up, ranging from different brands of Communism to currency reform fanatics and types of Fascism. The working class, not understanding Socialism, but merely possessing a reformist outlook and suffering deeply, alternately swung their support over to each fresh demagogue, and illusion and despondency were the inevitable result. American capitalism, after helping to smash Germany, now undertook to restore it. This served two purposes. It provided a new outlet for American investments and rebuilt a formidable competitor to Britain, as an offset against the growing Anglo-American rivalry for world dominance.

If it was possible to restore Germany to a healthy economic (capitalist) condition, the prospects would be rosy for profitable financial investment.

Through the Experts Commission (chairman, General Dawes) the chaotic reparations demands and methods of payment were regularised, and German firms, municipalities and local governments were able to obtain the foreign loans necessary to resume their former profit-making activities. The aim of the Dawes Plan was to make of Germany one vast international (and especially American) financial undertaking. American capitalists came to the rescue (on terms) of their German brethren, and in all but name Germany became an American colony. The foreign loans gave such an impetus to German trade that for five years (1924 to 1929) German capitalism was able to quite easily pay its interest claims and reparations demands. It was, however, without solid foundation, for its prosperity was only made possible with the assistance of foreign loans.

Guarantees to the American and other capitalists were included in the Dawes Plan. The State railways were taken out of the control of the Reich and placed in the hands of a company formed for the purpose. The Reichsbank was also taken away from the German Government and transformed into an instrument under “foreign” capitalist control, allowing pickings for the home capitalists, etc. French capitalism now received its reparations share regularly and withdrew its forces from the Ruhr. Herr Stresemann now devoted his energies to securing the evacuation of the Rhineland by the Allied armies, and out of this need of German capitalism was born the Locarno Pact and Germany joined the League of Nations. An era of mad speculation commenced; for the sake of American money German capitalism abolished some of its customs, including Martial Law. The Generals made way for the Dollar.

With the death of President Ebert an election took place (1925). The Social-Democratic candidate, Braun, came second with 8 million votes, withdrew their candidate and supported the nominee (Marx) of the reactionary Catholic Centre Party, as the “ lesser evil."

At the elections in 1928 the Labour Party obtained its greatest victory—over 9 million votes, and the Communists three and a quarter million—on a programme differing very little from the ordinary capitalist parties. Very few among the voters wanted or understood Socialism and were mainly captured by the promise to break the shackles of Versailles. The Social-Democrats now joined a “People’s Front" and entered the capitalist coalition government, demonstrating their political unity and ideological agreement with Stresemann and the capitalists in general. Germany had its Snowdens, MacDonalds, etc. The chief task confronting this motley crew was to make Germany “independent,” that is to say, now that German industry was yielding large profits, the home capitalists wished to limit the grip of American finance and reap the harvest for themselves. The rĂ´le of the Social-Democrats was the same the world over—to act as the facade and to harness the working class to the capitalist machine. For this they received the usual Judas price—a share in the Government and the large salaries that go with it.

Severing became Minister of Interior, Wissell Minister of Labour and Hilferding Finance. The Dawes Plan was superseded by a definite settlement named after its chief-financier, Young. Under the Young Plan the payments to be made by Germany were definitely fixed for 60 years. German capitalism was now master in its own house and the control imposed by the Dawes Plan finished and the Army of Occupation marched out of the Rhineland. Just at this time the “world economic crisis” made its appearance. The financial smash in the New York Stock Exchange let loose a flood which swept everything before it. How this affected Germany will be seen in our concluding article.
Lew.

A Pill For The Public (1938)

Book Review from the July 1938 issue of the Socialist Standard

Patent Medicines,” by Professor A. J. Clark (Fact, May, 1938).

The select committee set up by H.M. Government in 1914 to "consider and enquire into the question of the sale of patent and proprietary medicines” expressed the hope that the National Insurance Act would curtail the business in secret remedies. Their optimism has been far from justified, and the N.H.I. Act, having failed to put an end to illness, fanned the belief, already widespread, that health could be obtained from a bottle. A number of capitalists, more perspicacious than H.M. Commissioners, were well aware of this. They sank money in the production of patent medicines, and by one device or another encouraged the belief. The sick public, uninformed and receptive, swallowed thousands of panaceas from almost plain water to poisonous drugs, and paid well for the privilege. The proprietors, on the other hand, waxed prosperous.

Prof. A. J. Clark has set out the details in the Fact for May. Let us say here that the monograph is not written from a working-class angle, and that this entails a certain criticism, to which we shall allude later. But, subject to these limits, practically every aspect is covered in a simple and straightforward manner. We think that Prof. Clark might have detailed some of the huge profits made in the trade—for instance, Beecham’s Pills, Ltd., which markets many well-known proprietaries, such as Germolene, Iron Jelloids, Veno’s, Amami shampoos and the like, and has a capital of about two and a half million pounds, declared this year a profit of over £600,000 and a dividend of 85 per cent.

All sections of the community take patent medicines (the expression “Patent Medicine” only strictly applies to those registered under letters patent, of which there are actually very few). The volume of retail trade is, therefore, very large — possibly between £20 and £30 millions annually. The Government takes a rake-off in the shape of medicine stamp duty, which amounted in 1928-9 to one and one-third million pounds, since when it has declined by 44 per cent. Manufacturers found that by slightly altering the composition and printing on the package a pseudo-scientific formula, meaningless to the man in the street, they were legally exempt from paying the duty and pocketed the difference. We know of no case in which the price to the public was afterwards reduced. The law relating to patent medicines is, in fact, a confused jumble of statutes and regulations dating from 1787. It is still possible to use bogus testimonials from fictitious physicians, and perhaps even real physicians! There is a law of the most severe character against the supply of abortifacients; but under cover of wording which is well understood a loophole exists for the business to go on, a business for the most part in either useless or dangerous and always expensive drugs.

Various committees of enquiry have been set up, notably that of 1914, referred to above. Their report was devastating in its revelations and indictment of the patent medicine trade. “Naturally, however, it attracted no attention whatever at the time of its appearance and was allowed rapidly to pass out of print and is now very difficult to obtain. The reasons for its rapid disappearance are unknown” (page 29). The publications of certain analyses carried out by the British Medical Association vanished in an equally mysterious manner. The interests concerned were quite averse to anything being done, and it was pot until 1920 that a “Proprietary Measures Bill" based on the 1914 report, was introduced into the Lords, but “was allowed to perish for lack of Parliamentary facilities.” There' were further Acts in 1931 and 1936, both of which failed to become law. In 1936, however, the Government became alarmed at the decline in revenue, and a committee was set up to. consider this aspect alone. Their report, published in 1937, suggested a much wider basis of taxation, and “a Bill was promptly prepared in accordance with the recommendations of the select committee of 1937; it did not attempt any reform of the secret remedies fraud, but was simply designed to increase revenue by extending the scope of the incidence of the Medicine Duties. . . . The Bill perished chiefly because it proposed to tax cosmetics, a reasonable but highly unpopular proposal” (page 2$). As a matter of fact, there was much internal opposition to the bill, in particular from chemists, who would have lost certain privileges by its provisions and been placed on the same footing as grocers and other traders. No attempt whatever was made to protect the consumer at any stage.

Patent medicine proprietors are able to exercise a considerable pull over the Press, as the biggest single group of advertisers. One firm stated that it spent one-quarter million pounds in 1937 on publicity, largely in the Press. One of the effects of this expenditure is a virtual censorship of anything likely to endanger the patent medicine interests. Millions of people every year, who from malnutrition, bad housing, and overwork fall ill, succumb readily to the clever propaganda of the big advertising, often handled by firms which specialise in this work. And the more readily since the occasional exposures of danger and fraud rarely creep into the popular Press. These dangers and fraud are very real. A certain check is provided by recent poison regulations, but only this year 73 people in the U.S.A. were killed by a preparation before supplies were stopped. And there would have been no legal restriction on its sale in Great Britain. There is no account, of course, of those drugs which only kill if taken in time, or of the false inducement of security and hope. It is also certain that many workers afford patent remedies by cutting the purchase of vital necessities.

Prof. Clark suggests measures for dealing with the problem. It may be that for a variety of reasons a Government will one day be persuaded to frame new laws. They may even be operated. But the real trouble is that people are ill, and the problem one of preventing it—an impossibility while capitalism lasts. The patent medicine proprietors are in business for profit and indifferent to the harm and suffering they may inflict. Capitalist governments have already had 24 years since the first commission’s report to demonstrate their care for the working class. And the last Bill presented to the House was an attempt to increase revenue from the industry! Is it unlikely that any advantage to the workers from future enactments will only be incidental? There can be few grosser instances of the evil workings of the profit system than the patent medicine industry.
Kilner.