These Foolish Things: All capitalists now? (1997)

The Scavenger column from the May 1997 issue of the Socialist Standard

All capitalists now?
The controversial Welsh water and electricity company Hyder wants to flush out 50,000 small shareholders because they are too expensive to deal with. The company is spending £150,000 on Project Shrink to persuade the investors to sell their shares. It hopes to save £40,000 a year on printing and distributing annual reports and dealing with dividend payments . . . Other water and electricity companies are understood to be planning to follow Hyder's example and purge share registers of small but expensive shareholders. 

(Financial Mail on Sunday. 23 February.)

Competition? Not likely!
After 18 months of haggling, the giant De Beers organisation is about to reassert its iron grip on the $50 billion world diamond market . . .  For nearly two years Russia has been trying to circumvent De Beers’ near monopoly on the market. Producers in Australia, Angola, and possibly from the nascent Canadian diamond industry are already doing so. But now Russia's President Boris Yeltsin is poised to sign a new agreement to sell the bulk of its diamond production exclusively through De Beers’ Central Selling Organisation. Two-thirds of the world's diamonds reach the market through the controversial cartel . . . De Beers spends $200 million annually reinforcing the image of diamonds around the world. 

(Financial Mail on Sunday, 23 February.)

Of course
When George Soros speaks, the world’s markets listen. This time, though, they may not believe what they hear. Mr Soros is proclaiming that capitalism and its system of speculative trading — the same system that has brought him billions — has supplanted Communism as the principle threat to freedom . . . "I have made a study of the international Financial markets, and yet I now feel that the untrammelled intensification of laissez-faire capitalism and the spread of market values into all areas of life is endangering our open and democratic society." 

(Independent, 17 January.)

Wealth versus ecology

Kuwait, Iran and other oil producing countries are demanding financial compensation from the industrialised world for loss of revenue if any new action is taken to curb global warming.

(Guardian, 20 February.)

Poor health
In an article co-written by Professor Andrew Haines of the Royal Free Hospital. Dr Smith [editor of the British Medical Journal] said wealth was the single most important driver of health world wide, even more important than smoking. The authors said: "We are beginning to understand that, for developed countries, relative poverty — having an income substantially below the mean for that society — is a more important influence on health than absolute poverty (lacking the basic means to live)." They said things are getting worse, not better, with the gap between rich and poor tending to widen between and within countries — with inevitable effects on health. 

(Herald, 21 February.)

Business is war!
Letting your colleagues train with the Reserve Forces doesn't just contribute to the country's defence. It also develops qualities of leadership, motivation and initiative in your staff that are vital in helping to drive business forward . . .THE VOLUNTEER RESERVE FORCES. BRITAIN'S BEST KNOWN BUSINESS SECRET. Issued by the National Employers Liaison Committee on behalf of the Territorial Army and the Volunteer Reserves of the Royal Navy, the Royal Marines and the Royal Air Force.

The Scavenger

Money in Diamonds (1943)

From the May 1943 issue of the Socialist Standard

The Evening Standard of April 18 states that the prices of "gem" stones in Hatton Garden have gone up 20 per cent. in the last few days. Also that it is expected, that more than £10,000,000 will be spent on gems this year. De Beers (the chief South African diamond concern) shares have risen from £7 last year to well over £17, and are still soaring.

Thus, in spite of Sir Kingsley Wood's exhortations, quite a number of capitalists (unless it can be over-paid munition workers, at £4 a. week), instead of lending all their money to the Government, prefer to have something handy and portable like diamonds, in these troublesome times, which can quickly realise a respectable sum anywhere.

Funnily enough, although everybody is supposed to be tightening belts, and "austerity" is the order of the day (its got something to do with winning the war), the most fabulous sums ever known have been spent on racehorses (£70,000 by one man) wines (£7 a bottle), rare orchids, old books, prints and carpets.

Perhaps it is because "austerity" for the lower orders is the counterpart of opulence for the few.

Horatio

Aladdin Safes for Everyone (1958)

From the November 1958 issue of the Socialist Standard

The press had an unusual story of a locked safe which was bought for 30s. and when opened, out tumbled a jewelled tiara, a collection of antique silver and plate, gems mounted in gold and other jewellery, very much like the contents of Aladdin’s cave. Many newspapers throughout the world spread the news and some published photographs of this unique find. The news obviously caught the imagination of the public and the lucky purchaser was seen on two television programmes, and the whole process was featured in a Gaumont-British film, and even broadcast over the French radio.

One newspaper, using a clue found in the safe, was able to locate an old retainer of the family which had once owned these jewels. He remembered the splendour of their regency home, the big parties they held and the magnificent silver laid for dinner. Also that the mistress would drive along the front at Brighton with her coachman in livery.

They had a large house in fashionable Bryanston Square. London, and would spend two months of the year there. She was a fine regal woman and when she visited the Theatre Royal she would be magnificently dressed with diamonds at her throat and a gleaming tiara.

This was clearly a ruling-class family and it might be both interesting and useful at this point to discuss why it is that jewellery and plate are so closely connected with the lives of these people.

Of what use are gems?

That class who live by the exploitation of working people, have, from historical times, been proud of their privileged position in society which they advertised by displaying the insignia of their wealth, the ownership of which sets them apart from the mere plebians.

Employing workers to wear livery is one method of display, for livery indicates that the wearer is unable to take part in industrial money-making employment, and this, in turn, indicates the wealth and therefore the reputable degree of the employer on whom is conferred blameless social standing.

Jewellery has also played its part for centuries as a distinguishing badge of the upper-class. Gratification derived from the use and contemplation of costly and supposedly beautiful products, is, in great measure, a gratification of our sense of costliness masquerading under the name of beauty. The fact that some precious metals and gems do have a measure of intrinsic beauty is incidental. Great as their sensuous beauty may be, their rarity and price adds an expression of distinction which they would never have if they were cheap. The chief purpose of valuable jewellery is to add distinction to the person of the wearer by comparison with those who cannot afford such things and have to do without. The marks of expensiveness come to be accepted as beautiful features of expensive jewellery.

And, incidentally, this display sets an example to those in lower stations of life and acts like a carrot before a donkey’s nose, goading him on to ever greater effort. This, in turn, rebounds to the benefit of those who own the means of profit-making and thus is completed the happy circle for those who own the means whereby we live.

Indianapolis Star, 12 Sep 1958, Friday

How mad can capitalism get ?

A little reflection will reveal the waste of human labour used in spreading the news of this find, which is of no real help or use to any of the readers. The national press employ large staffs of reporters, on duty day and night, to sift the items of news coming in, with the idea of blowing some of them up enough to hit the headlines, which have to be filled if the papers are to fulfil their main function of profit making. These individuals, though they are professional writers, fritter away most of their time, not on straightforward writing, but on the tricks of their trade, waiting all night outside the house of someone in the news, in order to get a little more information, usually of a senseless but highly personal nature, or, as in the Aladdin Safe story, taking infinite pains in trying to trace the family mentioned on the flyleaf of the bible found in the safe, just to get those people’s reactions to the news. Then there is the paper-pulp for the newspaper itself and its transport across the world and the vast army of photographers, engravers and printers, to say nothing of the fleets of motor-vans racing round the streets delivering the papers to those who have the job of selling them.

Following our particular item of news through, there is the waste of schooling and training of the lawyers engaged in sorting out the ownership of the find—whether it should be the old bedridden lady of 77 who should have the tiara and other jewels, or the man who found them, or the firm that sold the locked safe. The more we consider it, all the more glimpses we get of how mad and wasteful this Capitalist society is.

Why the story of Aladdin is so popular

The question also arises of why the story of Aladdin is so popular. Aladdin was a poor boy who found a cave of jewels and through these riches was able to care for his poor mother and who eventually married a beautiful princess. Any man who suffers from insecurity (and who doesn’t in a class-dominated society) can easily put himself in the position of Aladdin. Any woman can put herself into the position of Aladdin’s bride or mother. No wonder the story has become a hardy annual for the pantomime season. There does not seem to be any reason why the popularity of this story is likely to diminish, at any rate, not for the time being.

The tragedy behind the story

But behind the story of this modem Aladdin there should also be tragedy. While the great moguls of the press, cinema and television are prepared to devote plenty of publicity to an irrelevant story of a purely chance find, where no intelligence, forethought or imagination is involved, there is no space available, whether in the so-called Labour Press or elsewhere, for a sensible analysis of a society which enables an individual to come into possession of wealth produced by others in society. For such an analysis of the news would contain revolutionary implications.

But what should be the greatest news item in the world today gets no publicity, except in the columns of the Socialist Standard and companion papers. And that is that Socialism, a system of society where all wealth is owned and controlled in common, by eliminating war and insecurity, can confer on everyone even greater benefits than can be obtained from safes full of jewels.

Frank Offord

Russian Diamonds (1964)

From the July 1964 issue of the Socialist Standard

For some years Russian diamonds have been sold in the world market through the South African, De Beers diamond organisation.

The Chairman of the De Beers Company, Mr. H. F. Oppenheimer, recently announced that the agreement they signed with the Russians in January, 1960, is not being renewed, but that is only half the story. All the sellers of gem and industrial diamonds have an interest in keeping prices high and stable, and in wanting to protect themselves against a heavy price fall, which might happen if somebody broke away and flooded the market with diamonds at cut prices. So although the contract with the company is ended, there is no likelihood of any Russian attempt to undersell the Central Selling Organization which regulates the market. As Mr. Oppenheimer puts it:—

  . . .  On account of Russian support for the boycotting of trade with S. Africa, our contract to buy Russian diamonds has not been renewed. These changes will not, however, disrupt the centralised marketing organisation in London, which is essential in the interests of all diamond producing countries, whatever the political differences between them may be. (Guardian, 16 May, 1964).

During the past year the diamond market and the price level were threatened from another quarter, the Congo. Owing to the breakdown of governmental control diamonds were being illegally mined and exported and offered at prices below the world levels. This danger to profits now seems to have passed:

  Fortunately, the Congo Government, which risked incurring severe losses, both in taxation receipts and on foreign exchange, is taking energetic steps to restore law and order in the main diamond-producing area with very satisfactory results.

There are no doubt people in the Congo who take a different view about the “satisfactory" nature of these “energetic steps," but as far as De Beers are concerned the whole year was more than satisfactory, total diamond revenue being up by about 30 per cent, at a total of nearly 82 million Rands (about £41 million).

De Beers ran up against other problems with several African governments because it was politically awkward for these governments to allow the locally mined diamonds to be sold through a company registered in South Africa. The solution has been found. All of these diamonds are now bought “by companies registered and managed outside the Republic of South Africa and which are not subsidiaries of De Beers.”

It matters less to De Beers to keep direct control of the subsidiary buying companies than it does to keep up the world price of diamonds, and in 1963/4 they recorded a rise in the price of gem diamonds of about fifteen per cent.

Edgar Hardcastle

The Passing Show: African Edition (1960)

The Passing Show column from the March 1960 issue of the Socialist Standard

Don't do as I do

Sir Roy Welensky has made the point several times recently that African politicians in the Rhodesian Federation must not presume to aspire to the Premiership. For example, in a statement reported in The Times (18/1/60) Sir Roy said: “Ambitious African leaders wanted a break-up of the Federation because it would mean fulfilment of their personal ambitions to be Prime Ministers and Ministers of black States."

Socialists have their own opinions about "ambitious African leaders," or about ambitious leaders of any nationality. But if anyone can lecture others about their "personal ambitions to be Prime Ministers," surely Sir Roy Welensky can't. He used to be Premier of Southern Rhodesia, and is now Prime Minister of the Rhodesian Federation. Another case, it seems, of "Don't do as I do, do as I say.”

Capital is safe

Any capitalist who is still dubious about the new independent capitalist states now being set up throughout Africa can take heart from a letter written by Sir Robert Kirkwood which appeared in The Times of 27/1/60. Sir Robert, writing from Jamaica, points out that: “When I first came here, 20 years ago, the average white Jamaican openly and vociferously argued, and genuinely believed, that the “black man" was quite incapable of running the country. And even conservative coloured and black Jamaicans averred that universal adult suffrage could never work here."

But the British ruling class decided to set up the West Indies as an independent federation. The result has been a great development of capitalism. As the letter says: "More economic progress has been achieved in the short time since Jamaicans elected under universal adult suffrage took over the Government than in the previous century."

Even capital owned by Europeans is quite safe: “Nor have I ever detected that our politicians' felt the slightest inclination to penalize capital of any description going about its legitimate business."

The “legitimate business" of capital being, of course, to wring surplus value out of the workers. Sir Robert warns of the dangers of thwarting the "rightful ambitions" of the native ruling class:

I am certain that most of our present West Indian leaders, who have earned general commendation from Europeans resident in these parts, as well as in their missions abroad, would have been capable. only a few years ago. of leading revolutions, bloody revolutions, if their rightful ambitions to govern in their own homes had been indefinitely and unreasonably deferred.

The letter goes on to assure fainthearts that the African nationalists, too, only wish to develop capitalism in their own countries:

Although I nave not visited Africa myself. experienced and reliable Jamaican friends of mine who know the leaders in Kenya. Nyasaland. the Rhodesias. etc., tell me that most of these men. though dedicated and even fanatical nationalists, are, for the most part, far from holding radical views in economic matters. My friends consider that once elected to power these men would seek advice and assistance, and govern with a sense of responsibility and attention to what is best for the, economic, development of their respective homelands.

It is obvious that Sir Robert Kirkwood, at least, does not see any danger to capitalism when formerly colonial countries become independent.

Diamonds thicker than dogma

The diamond producers of the Western world let the Central Selling Organisation of the De Beers group of companies handle virtually all their diamonds: thus this South African concern is able to maintain high prices and high profits for the shareholders of the diamond companies. The Observer (24/1/60) called it “one of the most efficient organisations for resale price maintenance that capitalism has yet produced." But recently the Russians discovered large new deposits of diamonds in north-cast Siberia and in the northern Urals. It was feared that once the exploitation of these new mines got under way, the Russians would export their surpluses, and undercut De Beers organisation. This would mean a slump in prices and in profits. But now all is well. The Russians have agreed to let the Central Selling Organisation market all the diamonds they export to the Western world.

As The Guardian says (19/1/60): "The agreement to channel these sales entirely through the De Beers organisation shows that the Soviet authorities have no intention of underselling South Africa, but intend to fall in with the price maintenance arrangements of the African producers in order to get the best possible returns.” So the Russian and the South African capitalists join hands to safeguard their surplus value.

Publicity

The recent banning by South Africa of a number of the SPGB's pamphlets has led to a certain amount of publicity for the party there. An article appeared in the Johannesburg Star on November 3rd. 1959. There are the sneers which one might expect when a capitalist paper deals with a Socialist Party, but at least the article contained the following:

The SPGB believes in no war. no leaders, no bosses, no capitalism, and no Soviet Communism. It believes in the common ownership of the means of produring and distributing the world's goods, and does not believe that Russia or China any more than the United States or Britain have achieved this.

Free publicity for the Socialist Party can hardly have been one of the results the South African Nationalists aimed at when they clamped their censorship down on our pamphlets.

Intermingling

You may not be interested in boxing, but it could hardly have escaped your attention last summer that a certain Ingemar Johansson had taken the world's heavyweight title from the previous holder, Floyd Patterson. The South African government believes, however, that such knowledge as this would be seditious for all except the white population of South Africa. As it was reported in the Johannesburg Star (14/7/59):

Non-whites arc not allowed to see any film containing "scenes of intermingling of Europeans and non-Europeans.'' That is why non-whites have been banned from seeing the film now circulating of the recent Johannson-Patterson world heavy-weight title fight. Johannson is white, hut Patterson is a negro. So the film cannot he screened at all in non-white cinemas. And in those where non-whites may sit in the gallery and whites in the stalls, the non-whites have to wait outside until this newsreel ends before taking their seats.

If the South African government really thinks that this will keep the coloured population ignorant of the fact that a black man and a white man fought for the title, they must be well out of touch with reality.

Alwyn Edgar