Thursday, December 4, 2025

Notes by the Way: Something to Cheer About? (1947)

The Notes by the Way Column from the December 1947 issue of the Socialist Standard

Something to Cheer About?

On November 6th Molotov announced that Russia had solved the secrets of making atom bombs.

The following is from the Daily Worker (7/11/47) : 
“When a mass meeting of 15,000 in the largest hall in Paris were told of the Molotov atom bomb statement, they rose to their feet and cheered enthusiastically for 20 full minutes.”

* * *

Scientists in Russia

In Scientist in Russia (Pelican Books Edition, 1s.), Professor Ashby tells what happened to a Russian scientist who opposed the scientific theory backed by the Russian Government. He writes as follows :
“The argument by heresy-hunt was used with deadly effect against the most outspoken and devastating critic of Lysenko, the famous Russian biologist N. I. Vavilov. Vavilov probably went beyond safe limits in condemning the new genetics as an outbreak of medieval obscurantism. He paid a high price. He was accused of dilatoriness in getting practical results, of lending support to fascists by his theory of centres of origin of crops, and of aligning himself with Bateson, the leader of genetics in England. In 1940 he was deprived of his directorship of the Institute of Plant Industry. He was subsequently imprisoned and he died, without any announcement or explanation, probably in 1943. The type of argument used against Vavilov is well illustrated by a comment made to me by a prominent animal physiologist in Moscow in October, 1945. ‘I reject Vavilov’s views,’ he said, ‘because Vavilov believed in Bateson, and Timiryazev condemned Bateson.’ The same argument has been put on paper by Prezent.” (P. 111).
In a letter to the Manchester Guardian, as in the book itself, Professor Ashby made it clear that such intolerance is not in his view the whole picture. He wrote :
“It is true that Vavilov was killed because he adhered to bourgeois genetics; it is no less true that there are to this day two professors of bourgeois genetics in the University of Moscow—no other kind of genetics is taught there, and the official text-book was written by an American. This sort of inconsistency is, in my opinion, the key to an understanding of Russian policy not only in science but also in public affairs.”—(Manchester Guardian, 1/11/47.)
To which the Manchester Guardian reviewer replied as follows :
“When Russian scientists see a political adventurer, half charlatan and half visionary, attacking the most eminent scientist of the country with pseudo-scientific, slogans steeped in political venom ; when they have to stand by helplessly and watch the victim standing at bay and being hounded in the end to prison and death (the campaign took about, ten years from start to finish) – then I am sure they felt exactly as any of us would if this happened here. The more dearly they love their country, the more bitter is their shame and horror, and their seeming unconcern is simply a token of the reigning political terror.”— (Manchester Guardian, 11/11//47.)

* * *

Why Financiers Like Labour Government

The following is from the Financial Times, (8/9/47):
“Despite a formidable total of bear points—inadequate supplies of coal, steel and other materials, reduced home consumption, dollar shortage, and a possible autumn Budget—there are more favourable aspects which, at the moment the market tends rather to ignore.

“This is the view expressed in their current circular by a leading firm of Stock Exchange brokers.

”‘There can be no comparison with conditions in 1931 when industry was facing a widespread saturation of its markets through over production,’ says the circular, ‘and while the sequence of events ten years earlier after the 1914-18 war were rather more closely comparable, there is one significant difference—the fact that a Labour Government is in office will surely mean that we need not fear widespread or long lasting strikes of the character which then caused the collapse of post-war industrial activity.”

* * *

Machinery and Unemployment
“NEW YORK, Friday.— Mechanisation and other agricultural developments threaten to make displaced persons of many American farmers, according to a report by the House of Representatives’ Agricultural Committee.

“More than 3,000,000 farm labourers were unemployed last year because of mechanisation, although crops beat all records.

“Further displacement of people now making some kind of living from the land is expected, says the report.–Reuter.”—(Evening Standard, 12/9/47.)
* * *

The U.S.A. and the Mediterranean
“Admiral Bieri, commanding the United States Mediterranean Fleet, has given an interview in Naples to the correspondent of the Milan daily Corriere Lombardo in the course of which he is alleged to have said :

”The United States Fleet is here and intends to stay here in Italian and Mediterranean waters. American interests in Europe will not cease with the signing of the German treaty. In accordance with the policy of the United States Navy Minister American forces will be allocated wherever there are American interests, in closest co-operation with the British’.”— (Manchester Guardian, 10/9/17.)

* * *

The Miners’ New Masters
“Mr. Bernard Rees, chairman of the National Union of Mineworkers’ lodge at Arrail Griffin Colliery, Abertillery, where 16,000 miners are on strike, said this afternoon :

” ‘Surface workers are still being paid wages at starvation level and the National’ Coal Board’s policy of subjection has been worse than anything we ever experienced under free enterprise.

” ‘N.C.B. officials are standing over men to time their movements, and the miners say that they are turning our colliery into something which resembles a concentration camp.’ “—(Evening Standard, 21/10/47.)
* * *

NOT the Socialist Party
“One of the richest men in England has just joined the Socialist Party. He is metal-magnate Steven James Lindsay Hardie, 62-year-old Scot, chairman of British Oxygen Company and its associated companies.

“British Oxygen has a capital of £6,000,000 and directly controls eight companies, with interests in South Africa, Australia, India find Norway.

“Total directorships held by Hardie, 27. Among them is vice-chairmanship of the £2,750,000 firm of Metal Industries, Ltd. As an industrialist Hardie makes metal products ranging from screws to ships.”— (Evening Standard, 14/10/47.)

* * *

Erstwhile Internationalist Proclaim National Sovreignt

The report to the Warsaw Conference at which the new Communist International organisation was formed was made by an influential Russian Communist, Zhdanov. Much of it was reproduced by the Manchester Guardian (3/11/47). One illuminating passage reads as follows:
“Taken up by the bourgeois intelligentsia, dreamers and pacifists, the idea of a ‘world government’ is being used not only as a means of ideologically disarming the people still defending their independence from the encroachments of American imperialism, but also as a slogan specially aimed at the Soviet Union, which constantly and consistently defends the principle of true equality and the maintenance of the sovereign rights of all nations, great and small.”
In the meantime Russia,, like the other capitalist Powers, keeps troops in occupation of several countries and is at the moment trying to induce the Persian Government to carry out the agreement to set up a Russian controlled oil concern in North Persia, the agreement having been forced on the Persian Government last year while Russian troops were in occupation.

A Fabian and his Fabianism (1947)

From the December 1947 issue of the Socialist Standard

If Fabianism came to be the political Bible of the Labour Movement then Sidney Webb (the late Lord Passfield) was its Prophet. Of him, Lord Listowel in the House of Lords said: “That the Labour Party came to regard him much as the Children of Israel must have regarded Moses . . . who pointed a way through the ‘Wilderness to the Promised Land’.” (Hansard, 20/10/47.) Undoubtedly, Webb, more than any other Fabian, foretold of the New Jerusalem which was emerging, painlessly, inevitably, almost imperceptibly from the present Social Order. The Labour Government’s historic mission is, it seems, to demonstrate that this Fabian New Jerusalem is merely Capitalist “Old Babylon,” writ large.

The Liberal Lord Samuel also spoke of Webb as a political pioneer and one of the principal founders of a Great Party. The Conservative Lord Salisbury called him the founder of the Fabian Society and intellectual father of the Labour Party. The Archbishop of Canterbury mentioned the close connection between Webb and the Church on the question of Social Reform. “He also desired to associate himself with the Tributes paid.” (Hansard, same issue.) Speaking for ourselves, “We come to bury Caesar not to praise him.”

The Fabian Society was founded in 1881. A group of “educated people,” so their historian, Mr. Pease, assures us, not without a little unction it seems : “We were aware of Marx,” he says, “but I do not think at the time the Society was founded we had read or assimilated his ideas.” (“History of Fabian Society,” p.24.) A statement probably as true now of the Fabian Society as it was then.

Non-acquaintance with Marx’s ideas has not prevented successive generations of Fabians from solemnly pronouncing him “A great thinker.” It was apparently only what he thought about that for them is of so little consequence. Mr. Pease even thought “That every passing year brought added conviction that the broad principles of Marxism will guide the evolution of Society during the present century.” (“History of Fabian Society,” p.236.) The sentence before, however, had noted that the first achievement of Fabianism was to break the spell of Marxism in England

As against Marxism the Fabians began by denying that Socialism could only be the outcome of historic development. Webb on behalf of the Fabians assured us “that no special claim is made that Socialism has a basis in history.” (“Fabian Essays,” p.36.) Instead we are presented with a plurality of Socialisms each dependant on their particular environment and, it appears, geographical location. “Thus Fabianism,” Mr. Pease told us, “was English Socialism,” The political and industrial conditions being somewhat different in degree in Scotland, he added. While in Ireland an application of socialist principles had not been seriously attempted. Nor, we presume, Wales or the Channel Islands.

Marxism, we must add. is a unified world conception based on an analysis of the sum totality of existing social productive relationships—Capitalism. If is thus able to demonstrate that the very development of capitalism provides the economic and social conditions for its replacement by an entirely different social arrangement based on common ownership and production for use. The present system being universal in character the Socialist Society which supersedes it must have the same universal character. There can then be no different kinds of Socialism, i.e., a Scotch Socialism in contrast to an English Socialism. Socialism being world-wide in extent the same social system must operate and be universally valid throughout the entire Socialist world.

Such is the stuff of which Fabian “Socialism” was made. Indeed Fabianism cut this “stuff” into even smaller parts, and presented us with such microscopic “socialist” portions as “Socialist London,” “Socialist Birmingham,” even “Socialist Poplar” and “Socialist Bermondsey.” Shaw’s admission in the Fabian Tract 41 that “he and the early Fabians had no true knowledge of Socialism” is hardly a confession. For Shaw still holds most of Mr. Pease’s “Socialist illusions.” The venerable Shavian beard would seem to illustrate in this respect that wisdom is not necessarily denoted by whiskers—not even when they are Fabian whiskers.

What then are the fundamentals of Fabianism? Even the Fabians themselves seem wholely ignorant of them. “There never has been a Fabian orthodoxy,” said Mr. Pease, “because no one was in a position to assert what the true faith was.” (“History of Fabian Society,” p.237.) Nevertheless continued Mr. Pease, “We obtained freedom of thought,” An attribute which Pease seemed to think highly desirable.

No doubt for a “Socialist” organisation which included all shades of political opinion advised voting against what it termed Socialist candidates if it meant splitting the vote and keeping the more popular “progressive” candidate out, and which supported Imperialism and war, such “freedom of opinion,” was not merely desirable but essential.

Apparently for the Fabians Socialism, like the poor, has always been with us. According to Webb “Socialist philosophy is but the recognition of the principles of social organisation in great part unconsciously accepted. The history of the 19th century was an almost continuous record of progress in Socialism.” The Socialist cat is thus out of the Fabian bag. Fabian Socialism is merely the acceptance and extension of all State activity. In pursuance of this theme Webb in a grotesque passage records what for him seemed the progress of Socialism. He enumerates such things as State control of the Armed Forces, Gas-works, Parks, Cemeteries, Slaughter Houses, Pawn-broking Establishments and Leper Islands. (“Fabian “Essays,” pp.18-51.) Even State registration of hawkers, dogs, cats, cabs, and inspection of baby farms and Scotch red herrings are all evidence of Socialist legislation ! For Webb a pedlar’s licence was proof that we were enjoying a semi-socialist existence. While such institutions, as the War Office and Scotland Yard were important milestones on the high road to the full Socialist Commonwealth.

The Socialism of Webb, in spite of protests from some Fabian quarters, became the accepted and authorised version. It merely turns out to be but the bureaucratic organisation essential for the maintenance and upkeep of Capitalism. Social reforms can likewise be included under this category. The 19th century Factory Acts constituted State intervention against the unrestrained character of prevailing capitalist exploitation. Such exploitation would finally have led to a catastrophic decline in workers’ productivity and thus profits. Sanitation laws constituted a safeguard for the wealthy against epidemics. Education Acts are designed to give workers’ children the training necessary for the wage-labour status they will one day assume. Unemployment Acts. Health Insurance, Old Age Pensions, merely denote the need to regulate the wide-spread poverty and destitution caused by the economic effects of capitalism on the working class. While certain reforms may give the worker slight but often merely transient amelioration they leave untouched the poverty resulting from his class-position in present society. The undertaking by the State of such activities are on the grounds of cheaper and more efficient administration. At the same time they spread the burden of taxation evenly over the entire capitalist class.

As for Nationalisation of Key Industries, advocated by Fabians for many years, it has come to pass. Nevertheless, the Tories or Liberals do not propose to denationalise them if returned to Power, while the theme of a “planned Capitalism” is as much their theme as that of the Labour Party.

Even the Fabian “Gas and Water Socialism” was but a Radical legacy bequeathed by Joseph Chamberlain. Municipalism, its other name, merely seeks to prevent the whole capitalist class from being used as a milch-cow by the private ownership, often of a monopolistic character, of such things as heat, light, power, etc. As for parks, libraries, museums, etc., being bits of Socialism, Chamberlain, with brutal frankness, regarded them as merely “the ransom paid for the privilege of holding property.” Fabianism is then a thing of shreds and patches. Shoddy remnants, second-hand from the Tory and Liberal political shops, sewn into a Fabian patchwork. Finally, on the subject of Municipal Socialism, we have Pease’s admission that it needed for its adoption and extension no advocacy from the Fabians. (“History of Fabian Society,” p. 81.)

The maturing of Capitalism into monopolistic forms and the integration of the State into its economic functions and activities, have been idealised by the Fabians into a programme of State Capitalism. The very developmental trends of Capitalism and its associated bureaucratic growth has then been presented as its opposite—Socialism.

It was this very evolution of Capitalism towards monopolistic forms that gave to Fabianism its automatic and ineluctable character. If the Mills of Capitalism were grinding small they were nevertheless grinding out “Socialism” every day. Such was the cumulative effect of all this that one day Capitalist Society would become a Socialist Society and no one would notice it. The economic revolution is going on every day, said Mr. Clarke, practically independent of our desires or prejudices. (“Fabian Essays,” p.62.) The Tories and Liberals, declared Webb many times, were committed to “Socialism” as much as the “Socialists.” He added, even people who believe Socialism a foolish dream were its unconscious instruments. According to the Fabians the coming of Socialism was as inexorable as an act of Nature. While the Fabians assigned themselves the role of midwives in the period of social gestation, the existence and growth of the “Socialist” seed inside the womb of Capitalist Society was apparently innocent of human agency. No greater miracle has been claimed since the birth of Jesus. This is a denial of the Marxist dictum, that given the material conditions to hand, men make history. Dressed up in its Sunday clothes this piece of Fabian fatalism is called “the inevitability of Gradualism.”

This was also a denial of the class-struggle and of the need of the working class to capture political power for the overthrow of Capitalism. For effective Socialist action and understanding they substituted political auto-suggestion. Because society was evolving gradually in the “Socialist” direction, they said, things were going to get better and better for the workers. Given the Fabians in control the results were, guaranteed. Such was the pernicious Fabian doctrine which sought to insulate the working class from a true perspective of their class position in Capitalist Society.

With this automatic process went a peculiar Fabian opportunism. With typical Fabian discreetness they called it “Permeation.” While telling the workers they should have an independent party of their own, they felt that they, the Fabians, should be free to work in and with every group or party for the favourable growth and influence of their ideas. Telling the Tories and Liberals “we” were already half way to Socialism, from which there was no turning back, the other half may as well be travelled in unison nnd together.

The Fabians also helped form the Labour Party by their active association with that party’s parent body—The Labour Representation Committee. So well did the Fabians, permeate the Labour Party that it could at length have uttered with some truth, “We are all Fabians now.” This Fabianisation of the Labour Party made, however, the Fabians superfluous. After a time they became an integral part of the Labour Party and as an independent political organisation for all practical purposes the Society permeated itself out of existence. Such is the inevitability of gradualness. However, Sidney Webb could claim that the Labour Party was. not a class party but one representing National interests who were ready to take over the Government of the country. Appropriately enough the Labour Party’s 1918 programme. “Labour and the New Social Order” was drafted by Webb.

Little wonder that “Fabian Socialism” representing its establishment as “the co-operative outcome of all sections of the community” was regarded as a welcome substitute by those in the saddle for the Marxist ” Class Struggle ” and “Social Revolution.” A “Socialism”—State Capitalism—that left their real class position undisturbed they could regard with equanimity, even interest. They might even agree with Shaw. ” That it was as easy and matter of course for the average respectable Englishman to become a Socialist as a Liberal or Tory.” (“Fabian Essays” 1908 preface.) The Fabians not merely made their Socialism respectable, they made it fashionable. Thus the announcement by an heir of wealthy interests that be had become a Fabian convert to his family might have merely occasioned a remark from his Mamma that his father had become one at an even earlier age.

The adoration of the State and its administrative functions by the Fabians has interesting implication’s. Thus Webb said “We must take more care to improve the social organism than our individual development. It. is not the individual’s development which is the highest cultivation of his personality but the filling in in the best possible way of his humble function in the great social machine.” Shaw, going perhaps even further, implies in Appendix I of the “History of the Fabian Society” that Parliamentary democracy as understood is a mere calling of fools into a ring. He said “Society could never be reconstructed by the type of men produced by popular elections.” Without qualified rulers a Socialist State is impossible, be declares. In a preface to the “Fabian Essays.,” he also states “the very existence of society is dependent on the skilled work of administrators and experts.” Further in the appendix Shaw hoped that “Democracy would demand that only suitable men should be presented to its choice.” Fabians, of course. This is, of course, a. favourite device of dictatorships which, also scorning the notion that people are intelligent enough to run Society in their own interests collectively, demand that only people favoured by nature and circumstances are qualified to take charge. That Shaw himself at length came riding home politically on the shoulders of Mussolini seems not an illogical deduction from his own premises. Fabian State efficiency rather than Fabian democracy would seem their cardinal doctrine. From this it would also seem that Webb and the Fabians anticipated certain features of Fascism.

When Sidney Webb and his wife, Beatrice, were old people, they went to Russia. Previously they had considered Bolshevism no better than Czarism. “Under Bolshevism the prisons were as full and the rifles as active as under Tsardom.” (“Decay of Capitalist Civilisation,” p.101.) What they now saw on their visit was a vast administrative machine run by a privileged bureaucracy. And what the Webbs saw, they liked. The Stalinists hailed the Webbs’ approval of their bureaucratic machine as evidence “of the establishment of Socialism in one Country.” For the Webbs it was the establishment of that State Capitalism par excellence which they had advocated for years. And the Webbs were right. As their fellow Fabian, Bernard Shaw, announced on returning from a visit to Russia, “The Bolsheviks have merely realised the Fabian Ideal.”

When the Webb’s came home they wrote a book of 1,200 pages;: “Soviet Communism a New Civilisation?” In subsequent editions the question mark was removed. Apparently this indicated their full approval and sanction of the state of affairs in Russia. In such a truly Fabian fashion did “Socialism” in Russia come into existence.

This, of course, led to a New Communist line on the Webbs. True Lenin had referred to them as bourgeois humbugs . . , social chauvanists . . . guilty of the worst kind of treachery, etc. (“Lenin on Britain,” p.152.) Likewise the Communist International had denounced Webb and the Fabians as apologists for State Capitalism under the guise of Socialism. (“Handbook of Marxism,” p. 1,026.) Now the Webbs became “Social Scientists,” “objective thinkers,” etc. In such a fashion did a Communist Party scribe called Allen Hutt, eulogise Webb in the Daily Worker (15/10/47.) Incidentally in a book called the “Final Crisis” (p.96) the writer had approvingly quoted Engels as to the Fabians being a band of place hunters. He also considered the influence of the Fabians to have been disastrous on what he called the Socialist Movement.

The Fabian belief in the silent and peaceful evolution of Capitalism with its bedtime stories to the workers of constantly improving conditions has been shattered by the history of Capitalist developments. No such progress has taken place. Economists like Chiozza Money, Bowley, Campion and others have shown how decade after decade road little change in the share of unpaid labour appropriated by the capitalists. Webb, himself, confessed, over 30 years after the founding of the Fabian Society, that one-half of the social product was taken by one-ninth of the community.” (“The Decay of Capitalist Civilisation,” p.17.) While Pease admitted that “little progress has been made towards Socialism. Private ownership flourishes almost as vigorously as it did thirty years ago.” (“History of the Fabian Society,” p.243.) Indeed the Webbs’ “Decay of Capitalism” was a tearful admission that mass unemployment, slumps, and wars were catastrophes not provided for in the peaceful Inevitability of Gradualism, On p.174 these curious Socialists admitted they had never during thirty years in the Socialist Movement, framed an indictment of Capitalism. True that in doing so they seemed to have discovered that there is something inherent in Capitalism which prevents it from functioning in the interests of the vast majority. (Same book, p.18.) What they never saw was that the “Decay of Capitalism was also the decay of Fabianism.” For that reason they did not disappoint us by failing to reach a truly Fabian conclusion. “In order for the workers and capitalists to understand their problems and each other a little better” they said in the last paragraph, “we offer, perhaps in vain, this little book.” The Webbs in setting out to find out what was wrong in Capitalist Society ended up by offering “a little book” as the solution for its social problems. As usual Class Co-operation was their panacea. Thus the long-chanted formula of these disciples of John Stuart Mill’s humanitarianism, “if only sections of society would be reasonable and sympathetic to each other’s claims.” If, of course, the lion was a vegetarian he might be persuaded to lie down with the lamb.

Such was Sidney Webb and his fellow Fabians. “Educated people” and tireless, seekers after statistical facts, yet never once in their researches did they discover the simple and fundamental truths which underlie present class society; simple truths known to the humblest student of Socialism. While these truths remain simple the confusion caused by people like Webb makes the work of expounding them infinitely much harder. By his advocacy of a Capitalism reformed in working-class interests he helped to blunt the sharp edge of the clear-cut Socialist solution. By accident or design he and the Fabians became formidable political fifth columnists in the ranks of the International working class. As an investigator of social facts and part author of a work like “The History of British Trade Unions,” he may be remembered. As a sociologist and a scientific interpreter of his times he is already in the process of being forgotten.
Ted Wilmott

Boom and Bust (1947)

From the December 1947 issue of the Socialist Standard

The waste and destruction of the late total war has presented capitalism with a new burst of business, if only in replacing the bombed fixed capital and equipment made obsolete or worn out by six years of constant war production. With this leeway to make up, together with the general dearth of consumer goods, capital can look forward to a period of activity fulfilling the requirements of the “sellers’ market.” Only occasionally, amid the clamour of capitalists, “communists” and labour leaders, hounding on the workers to more production, is a voice heard warning that the sellers’ market will be of short duration. And what then? Will there be the usual slump?

The socialist answer is an affirmative, for whether production is carried on by private enterprise, or is planned through the medium of the state, the mechanism of capitalist production and distribution acts the same, no matter the ideology of those selected to control the pulling of its levers.

The memory of the world slump of the 1930’s is still green among the working-class, a slump which only ended with the preparation for World War 2; while significantly enough, a similar position existed before World War 1. In fact looking at the history of capitalism it will be seen to proceed with a movement of feverish activity followed by a crisis of stagnation. Why is this? What goes wrong with capitalism’s “works”?

At the risk of reiteration it must be repeated that the motive of capitalist production is a surplus of wealth which through the medium of money is distributed to the owners of both private and state capital; a surplus comprising the unpaid labour of the workers who having no stake in the “means of production” must perforce hire out their energies for a “cost of living” wage. The difference between this “cost” and the wealth turned out during the workers’ employment, figures in company shares, state bonds, etc. as rent, interest and profit. The “means of production” covers all those productive processes using plant, machinery, etc., with the factories which house it, as against the “means of consumption” consisting of food, clothing, luxuries, etc., consumed by the workers and capitalists, via wages on the one hand and “income” on the other.

If production and consumption are to balance it follows that the owners of the means of production should turn out no more equipment than that needed by the owners of the means of consumption. There should, for example, be the right total of ovens for bakeries or tractors for the land, while the amount of bread, etc., should not exceed the capacity of the consumers. But this presupposes a non expansive capitalism befitting its early days when domestic industry knew the limit of the local market and the means of production were puny and individually owned.

The development of the means of production ended this self-ownership and transferred the scene of production to the factories where men and women labour, not as owners but as wage-workers, and where handicraft is replaced by a division of labour suited to the pace and handling of power-driven machinery. A revolution from private production to social-production or commodity production by social effort.

Here lies capitalism’s dilemma. The productive capacity has long overflowed the local sphere and demands continuous and expanding markets, while competition for these markets creates an open race to minimise the amount of human labour in every commodity by automatic factory production and mechanical land cultivation. Capital, therefore, moves in the direction of spending more on labour-saving mechanisms than on workers’ labour-power, while the mechanism itself takes on the character of a Frankenstein which must be constantly fed with orders and “contracts.”

Take for instance a modern steel plant built to turn out girders, railway lines, etc., for the world market. From the iron to steel process, to the actual rolling, all its departments, must work at full capacity if the product, is to be economically produced, while this in turn requires the requisite amount of orders for rails, etc. To build a smaller works on the receipt of lesser orders requiring only half the capacity of the normal works would obviously he uneconomical. Repeat this example in other spheres of production and one sees the picture of capitalist production driven on to produce above the need of the market in the hope that stock will later be sold.

Eventually the ominous sign of glut appears in this drive for production and profits, by the banks shortening up on credit. “Cheap money” for borrowers comes to an end, and the stage where “stock is as good as money” changes to one where “money is the only real wealth.” To meet payments and obligations, every owner rushes to market with everything saleable for what it will fetch, for fear that market prices will reach a lower level. The crisis is on. The capitalist whales eat the capitalist small fry, now-gone bankrupt. Labour-power like every other commodity becomes a drag on the market where millions are idle because they have produced too much. In short, the forces of production are fettered and in conflict with the method of distribution.

All this may seem far away in these days of shortages, but heed the forecast of Sir Robert Johnson, chairman at the annual meeting of Cammell Lairds, shipbuilders. Criticised by a shareholder for the policy of consolidating reserves, he said : “We have to look after our money in shipbuilding because the slump comes as sure as night follows day. There are always seven years of plenty and seven years of famine in shipbuilding.” (Evening Standard, 4/4/47.)

Again, and this time from labour quarters: “America is heading for the biggest economic blizzard in history. There may be 20,000,000 unemployed and that blizzard will hit this country.” (Jake Woddis, Clerical and Administration Workers Union. News Review, 4/4/47.)

The “trade cycle” of slump and boom is inevitable for the reasons previously outlined and results from the wage system which denies the bulk ot the consumers the possibility of owning the total consumable wealth which they have produced. The capitalists stop production as soon as it ceases to be profitable and allow the piled up stock to rot or be destroyed. These they cannot give away to the needy even if they wished, for goods without price would mean the end of trade while furthermore a large part of the unsold stock is means of production, useless save as capital. Fared by such a problem periodically, national capitalism has struck out for the undeveloped areas of the world only to find that the export of means of production to these parts has resulted in their development as competitors.

There appears then only one desperate way out for world capitalism’s problem of overproduction, and that is to engulf the world in a periodic destructive war, arising from the national struggle for markets to absorb the surpluses thus giving capital elbow room, by furnishing the costly means of destruction followed by the breathing space given by the necessary reconstruction of the “peace.”

The only hope of ending this social madness and the drift to World War 3, is for the workers to advance beyond the support of capitalist planning controlled by “labour” or any other government, and to press forward to the goal of socialism where social production will be balanced by social ownership. With the means of life in their own hands they will cast off their servitude by ending the wage-system by which capital appropriates the fruits of their labour.
Frank Dawe