Thursday, July 24, 2025

Capitalism in the Caribbean - Part 2 (1962)

From the July 1962 issue of the Socialist Standard


The economy of the West Indies underwent a transformation following the abolition of slavery—from a primitive form of capitalism with many feudal features to full capitalism based on wage labour.

With the loss of its tied labour force, the plantation system of agriculture broke down, and the sugar owners faced quick ruin. It was to prevent this sudden loss of their labourers that the sugar plantocracy in many islands introduced a transitory state between slavery and wage-labour—“apprenticeship”. Under slavery, of course, no wages were paid, the slave being kept by his owner and encouraged to grow his own food. Until the sugar owners could buy the labour-power of the “free'’ workers the ex-slaves were “apprenticed” to the estates. They had to work for their former owners for about three-quarters of the week without pay, and from their earnings for the remaining quarter they were able to buy their “freedom" when their apprenticeship ended.

In their efforts to reduce the cost of producing the sugar the owners were forced to introduce labour-saving machines; this became even more necessary in face of competition from sugar planters in other parts of the world, notably the East Indies and the U.S.A., and the introduction of beet-sugar farming in Europe and the U.S.A. To make matters worse for the West Indian sugar owners the British Government drastically cut the subsidy which it had long paid for West Indian sugar when it became apparent that cheaper sources of sugar were available elsewhere. In addition, West Indian cotton and tobacco were virtually eliminated from the world's markets during the middle of the nineteenth century by improved farming in the southern states of America and Eli Whitney's cotton saw-gin.

To combat the twin capitalist problems of the rising cost of labour-power and the falling price of sugar, the West Indian sugar owners were forced to re-organise their industry; apart from introducing mechanisation, absentee ownership was discouraged, immigration (especially of European skilled artisans) encouraged, and serious attempts were made to build up an adequate, dependable, labour force.

In the islands with a long history of slavery, like Barbados, Antigua, and St. Kitts, there was an adequate supply of labour-power but in fast developing countries with little history of slavery (especially Trinidad and British Guiana) the shortage of labourers was acute. To these two countries, therefore, came regular shiploads of peasants from Madeira and India—indentured labourers who signed contracts or bonds to work on the estates as “free" workers. The workers from Madeira did not measure up to the exacting working conditions on the sugar estates in the tropics, but the Indians were quite at home. These “East Indians" were largely responsible for the agricultural wealth of Trinidad and British Guiana, and now number about half the population of Trinidad.

Although sugar-cane farming is the “monoculture" of the West Indies, other agricultural crops in different islands are important sources of profit for sections of the owning class. The (American) United Fruit Co., of which Elders and Fyffes are a subsidiary company, usually lakes about half of Jamaica's large banana crop. Citrus fruit, coffee, and cocoa are also grown on a considerable scale in certain islands. Grenadian planters enjoy a virtual monopoly of the spice trade in the West Indies.

Timber was, and is, the main industry in British Honduras. Timber, including hard woods, is also grown in Jamaica. Trinidad and British Guiana. The tourist industry, catering mainly for vacationing Americans, has developed considerably especially in Jamaica and is now a major source of profit for hotel and shop keepers; on the Jamaican north coast prices are quoted first in U.S. dollars. Trinidad is unique among the West Indian territories in having two important mineral deposits. The famous Pitch Lake, discovered in Raleigh's day, is the only source of natural asphalt in the world; despite competition from synthetic pitches produced during the refinery of oil. profits of the Trinidad Lake Asphalt Co. still assure a comfortable income for its shareholders.

In addition, oil was found in Trinidad towards the end of the nineteenth century. Although production has increased phenomenally since then, Trinidad's contribution towards the world's total oil production is less than half of one per cent; and because of the unsatisfactory geological formation of the oil-bearing layers, the cost of producing oil in Trinidad is among the highest in the world. However, its geographical position plus its stable government gives its oil industry a special importance in the eyes of British and American capitalists. After the second world war, American capitalism entered the Trinidad oil industry by acquiring a large field and the largest refinery. To prevent further American economic invasion, British Petroleum (half-owned by the British Government on behalf of the British capitalist class) recently took over three “independent" oilfields.

The bauxite industry (in Jamaica and British Guiana) is an important recent addition to West Indian capitalism.

As capitalism improved its methods of production in the Caribbean, so also it improved its methods of administration, to control the growing working class and to assure profits for the owners. In British territories, Crown Colony government superseded the inefficient and self-interested rule of the sugar plantocracy. Crown Colony government which has lasted, with few modifications, until the present time of the “wind of change", was largely responsible for the introduction of organised health services, thereby virtually eliminating the two killing diseases cholera and yellow fever and providing a reasonably fit working class. It also built a greatly improved transport system, the British mode of law-making and enforcement and a rudimentary educational system.

The French islands had always been closely tied to France, the colonial assemblies (which were instituted in 1787) being only advisory in character. Following emancipation, attempts to decentralise the islands' administration were abandoned, and Martinique and Guadeloupe became departments of metropolitan France, which they are today.

The development of capitalism in the larger islands of Cuba, Haiti and the Dominican Republic, and Puerto Rico is inextricably bound up with the interests of United States capitalism: capital investment, trading rights, and military bases for the defence of the Panama Canal.

After abolition in the British islands, the British Government pressed for the end of slavery in Cuba, whose sugar was underselling Jamaican sugar. The United States opposed British intervention, and later took the opportunity to gain firm control of Cuban affairs by a decisive and speedy military victory. The excuse for this was the loss of American property in the Cuban civil war of 1895 and the sinking of the American warship Maine in Havana harbour. Although American forces withdrew in 1902, American governors had effectively made Cuba a "friendly" country, and the establishment of the naval base at Guantanamo left no doubts about United States interest in the island.

Despite the oft-stated “principle" of the American State Department in the "self-determination and self-government of small nations”, Cuba has never been free of the intervention of American capitalism, political and military. U.S. naval forces were sent to Cuba in 1912 to protect American property during a Negro revolt, and the U.S. marines were sent in 1917 by President Wilson, also “to protect American lives and property". This touching concern for Cuban affairs apparently paid off. because as a result of the boom in sugar after the first world war a greatly increased concentration of wealth fell into the hands of American capitalists.

The growth of Cuban nationalism brought, first, the dictatorial regime of Machado, then in 1933-4 the left-wing government of Batista. With a history of strong left-wing parties (Cuba is the only country in the Caribbean with a Communist Party of any influence, thought to be a result of Spanish immigration during the 1920's), Cuba was the natural birthplace of Fidel Castro and his followers who seized power in 1958 and have ruled the island since then with all the trappings of a police state.

The Dominican Republic and Haiti have been of minor importance to the United States, both as markets and sources of capital, and any American interference there has been largely because of the islands strategic value. Both states of the island of Hispaniola have developed with dictatorial governments, and are at an uneasy peace with each other. Haiti is economically poor: the country is governed by a mulatto élite and the rest of the population are illiterate Negro peasants. The Dominican Republic, which is largely populated by descendants of Spanish settlers, is richer by virtue of sugar farming and the modest influx of American capital. The dictatorial regime of General Trujillo, which had ruled the country with no pretences of democracy for almost thirty years recently lost its iron control and the Trujillos were deposed. It is still loo early to say whether more democratic institutions for ruling the working-class will emerge; in the meantime the country has been "de-Trujillo-ised ” to the extent of the capital of Ciudad Trujillo being renamed Santo Domingo, the name given it by Columbus.

After centuries of Spanish rule, Puerto Rico was ceded to the United States in 1898 by the Treaty of Paris. America wished to gain control of the island (especially the fort of San Juan), not so much for her own use, but to prevent this strategic outpost failing into the hands of rival imperialist gangs. The sugar industry in Puerto Rico attracted American capital, and within a few years three or four American Corporations gained control of the industry and acquired more than half of the land suitable for cane growing. Although nominally American citizens. Puerto Rican workers soon discovered that, despite housing schemes, improved medical services, etc., they extracted little benefit from possessing American passports. It has been estimated that the average per capita income in Puerto Rico is less than one-fourth of that in the United States. In an attempt to relieve unemployment, the Puerto Rican government has encouraged emigration to the U.S.A., where, especially in New York, Puerto Rican immigrants meet similar problems that West Indian immigrants encounter in Great Britain.

No account of American capitalism's interference in the Caribbean would be complete without reference to the military bases in various West Indian islands granted to the United States during the early stages of World War Two by the British Government in return for fifty-odd old destroyers. The destroyers have all gone (some were reported to have sunk on their first Atlantic crossing), but the bases remain. They are a constant source of annoyance to West Indian politicians. especially Dr. Eric Williams. Premier of Trinidad and Tobago, who has apparently dedicated himself to the task of wresting the naval base of Chaguaramas in north-west Trinidad from the American Government.
Michael La Touche

(To be concluded)

The Passing Show: Agitators (1962)

The Passing Show Column from the July 1962 issue of the Socialist Standard

Agitators

It has been an accepted ruling-class myth for a long time now that strikes are caused by people called agitators. Whenever industrial trouble breaks out, the management’s bloodhounds set out to track down “the agitators”, the sinister background figures who are at the bottom of it all. The papers try to convince us that the workers concerned are perfectly happy with whatever wages and conditions the management sees fit to grant them, and that they would work away at their benches making ever greater profits for their masters without a single complaint — were it not for “the agitators". This must be one of the least convincing theories ever produced, even by a ruling class. It received another severe blow recently, at Ford’s Dagenham works. Here, as at many other factories, these powerful agitators who bring the men out on strike when they don’t really want to stop work are usually identified as the shop stewards. At the end of May the Ford Motor Company rejected outright a pay claim, not offering even sixpence a week more. So the shop stewards, ”the agitators”, called a one-day token strike in protest. But the men simply turned down this proposal, and continued work.

With the band in front

This underlined still further the obvious fact that workers come out on strike when they want to come out on strike, and not merely at the behest of agitators. No agitator in the world could make men strike if they didn't want to. Shop stewards, men who serve on strike committees, and so on, simply march with the band in front. Children love to run to the head of processions, and march in front of them, to pretend that they are the leaders. But if the band turns off down a side street, the “leader” has to go with it or be left marching on his own, a general without an army. And there is no sadder sight than that.

All day and every day

We are often treated in the press to learned articles about “the real reasons” for the trouble at any industrial plant where there have been a number of stoppages. But there is no need to go beyond the fact that the workers are exploited, plus the methods adopted by managements to screw out ever more surplus value. It is now agreed by almost everybody that the tasks which the workers have to do to stay alive are boring, monotonous, repetitive, soul-destroying, and offer no opportunity whatever for them to satisfy their basic human creative instincts, their need to do a job in which they can take a pride. The correspondent of the Observer (3-6-62) quoted one of the men at Dagenham:
The monotony of the work is another thing that gets you down. You take the Anglia handbrake. Putting it in involves turning four screws, 30 handbrakes an hour, all day and every day.
This particular job consists of putting in 120 screws every hour in every working day throughout the foreseeable future. The worker has to do every two minutes exactly what he did in the last two minutes. These newspaper articles, surely, are tackling the problem from the wrong angle. What causes astonishment to the impartial observer is not that there should be so much trouble at Ford’s, but that there should be so little elsewhere.

Salvation of souls

There is so little beauty in the lives of people living under capitalism, and such a large proportion of the few beautiful buildings remaining to us from earlier ages is destroyed every time we have a war, that one would think what we have is worth preserving. But some authorities in the Church of England believe otherwise, Not long ago the President of the Society of Antiquaries of London was protesting that the Chancellor of the Diocese of Ely had decided to demolish three ancient parish churches — Denton, built largely in the seventeenth century, and Woolley and Islington (Norfolk) which are mediaeval. In reply to this protest, a reverend gentleman from Worcester said that the purpose of the Church “is the salvation of souls and not the provision and upkeep of museums and ancient monuments.”

It is as if the worshippers of Athena Parthenos decided to knock down the Parthenon which was built as a temple for Athena, on the grounds that nobody now wants to pray to Athena in it—which of course nobody does. The fact that a particular superstition was once practised in a particular building doesn't make it any the less beautiful, but obviously the diocese of Ely sets more store upon the preservation of superstition than of beauty.

Cloisters

A similar instance of the benefits of private ownership is the case of William Randolph Hearst and the Spanish cloisters. Hearst, it appears, never even saw the cloisters, which dated from the twelfth century; but he heard that the monks in a remote part of Spain were prepared to sell their cloisters, so he sent along one of his employees to buy them. He then had to assuage the anger of the local villagers (real or pretended) at the removal of this relic by further large payments to them. Next he hired workmen to dismantle the cloisters stone by stone, had a sawmill built to make the cases to pack the stones in, and then had an extra twenty-one miles of railway constructed to transport the stones when they had been packed. They were taken all the way to Hearst’s gigantic fake castle at San Simeon in the United States, and there stored in enormous warehouses along with other art treasures which Hearst had bought from every corner of the world. This vast collection, not even unpacked, was still there when Hearst died years later.

Amber fountains

The next actor in this tragic farce is George Huntingdon Hartford II, an American multi-millionaire who has bought Hog Island near Nassau in the Bahamas, re-christened it Paradise Island, and is now at a cost of twenty-five million dollars turning it into a fantastically luxurious kind of Super-Cinerama playground for other multi-millionaires. A double room at the Ocean Club is said 'continued bottom left to cost up to £50 a day. It is not yet finished. Above the Ocean Club a “gently rising succession of terraces" is to be constructed, and at the summit, above the illuminated swimming pool, the purple creepers and the amber fountains, there will be erected, and floodlit, William Randolph Hearst’s twelfth-century Spanish cloisters. Huntingdon Hartford bought it. complete with packing-cases, from Hearst’s estate. But there is one small fly in the ointment. The plans for the cloister cannot now be found, and no-one knows how the stones are supposed to go together.

It seems that everything that capitalism touches, it defiles.
Alwyn Edgar

Notes on Russia: Russia and world trade (1962)

From the July 1962 issue of the Socialist Standard

In recent years there have been many signs that Russian industry is becoming more and more interested in finding foreign markets for its products, from ships and motor cars to oil and from timber to diamonds.

Immediately after the Communists captured power in Russia in 1917 they introduced State control of all foreign trade largely because they feared that German and other exporters would undercut Russian home industries with a flood of cheap goods. It was the aim of the Russian Government to restrict imports to those articles regarded as essential and to pay for them by exporting surpluses produced in home industries. There was at that time no urge to expand trade and in 1938 the volume of foreign trade was only fifty per cent of what it had been before they came to power, though trade was expanding fast in the world as a whole. But by 1959 with the successful building up of great manufacturing industries Russia had come into line with the general expansion of foreign trade, and her imports and exports had recovered so far that they were half as large again as in 1913 and three times what they had been in 1938.

This change of trend found expression during June of this year at the Conference of the Russian bloc countries in Moscow, which dealt with industrial and trade relations with each other and with the rest of the world. They are reported (Times 9 June, 1962) to have “expressed their desire for the further expansion of foreign trade with capitalist countries”, and also supporting a call for an international conference to set up a worldwide organisation to promote trade, and remove discriminatory actions by one country against another. Doubtless, from the Russian government’s standpoint, the latter proposal is directed against the development of the European Common Market and the possibility of Britain joining it, both of them developments that may threaten Russia’s position as expanding exporter in world markets.
Edgar Hardcastle

Notes on Russia: Squaring the circle (1962)

From the July 1962 issue of the Socialist Standard

Alongside the development of Russia as a great capitalist trading power it is interesting to look at the attempt made by Stalin a few years before his death to square Russian policy with Marxist principles.

Frederick Engels in his Socialism, Utopian and Scientific (1892) had written that with the capture of power and “the seizing of the means of production of society, production of commodities is done away with, and simultaneously, the mastery of the product over the producer ". He also wrote that as a first step “The proletariat seizes political power and turns the means of production into State property.”

Someone put the question to Stalin, why was it that years after capturing power the Russian Communist Party still continued commodity production, i.e. production of articles for sale. Stalin, in his Economic Problems of Socialism in the U.S.S.R. (Published in Moscow in 1952) set out to answer the question. He did so by arguing that in the first of the two passages quoted above Engels meant all the means of production, and the Russian Government had in fact taken possession of only some of them, the industrial means of production, but not the agricultural means of production.

This in itself is a hollow excuse as far as Engels is concerned because Engels certainly did not write, or think, that 35 or more years after gaining political power an essential part of the means of production would still not have been taken over.

But Stalin had another and even more curious defence. It was that Engels had had in mind the one country, Britain, in which agriculture had in 1892 been “capitalised” and concentrated; and Stalin then expressed doubt whether Britain could abolish commodity production, because of its dependence on foreign trade.

Why Stalin's thoughts were concerned with the problem of foreign trade was made clear elsewhere in Stalin’s book because he had realised that Russia too was becoming more dependent on foreign trade. He wrote: -
. . . it will soon come to pass that these countries will not only be in no need of imports from capitalist countries but will themselves feel the necessity of finding an outside market for their surplus products, (p. 36)
By “these countries” Stalin meant Russia and the other miscalled “socialist” countries.

Though Stalin's tortuous “explanation” may have satisfied his questioner it landed him in the further dilemma that while Engels had seen the capture of power and the ending of commodity production bringing to an end “ the mastery of the product over the producer”, for Mr. Stalin the producers in Russia and the other countries were increasingly coming under the “necessity” of finding foreign markets for exports, just like the rest of the capitalist world.

The recent big increase of prices of meat and other foods in Russia in order to increase the income of the collective farms and peasants and encourage them to raise output and efficiency of production, shows that the problem of agriculture is still far from being settled. British capitalism solved the problem in 1846 from the standpoint of the industrial capitalists by abolishing the corn laws which protected the landed interest and maintained high food prices. Agriculture was allowed to decline, cheap food was imported from abroad which kept prices (and wages) low and enlarged the profits of the manufacturers and shipowners. Russia now is in a somewhat similar position since the Russian Government could lower its own food prices if it allowed the importation of cheap food from America and other countries in which agricultural production is more efficient and cheaper. But this of course would involve problems even greater than those faced by British capitalism over a century ago.

To put the matter into perspective from a socialist point of view it need only be added that trade problems are capitalist not socialist. The idea of “socialism in one country” is a false one. In a capitalist world there can only be capitalist economy, with its associated need for commodity production and foreign markets. Socialism is an international concept and in that framework such problems do not exist.
Edgar Hardcastle