Showing posts with label October 1943. Show all posts
Showing posts with label October 1943. Show all posts

Thursday, March 30, 2023

Workers’ Houses in the Next Ten Years (1943)

From the October 1943 issue of the Socialist Standard

Concurrent with the development of the war and long before the housing shortage came to be felt acutely, articles on post-war building reconstruction began to appear in the national press and popular periodicals.

With the bombing of English towns, evacuation, and compulsory billeting, came a marked increase in the numbers of such pronouncements. Like most other aspects of post-war reconstruction, our future architectural environment has been depicted in most attractive and novel forms.

The average reader may have been led to suppose that in some remarkable way the war will have made possible “ideal homes” for everyone and gardens for their children to play in, even though he may not have been so interested in schemes for new civic centres and roof-top aerodromes.

Those who have lost their homes by bombing, those who have been forced to live under the most cramped conditions in single rooms with shared kitchens, together with those who have always lived in this way, have perhaps been buoyed up by these promises of better times to come.

One cannot escape the conclusion that our rulers have been more than ready to accept the assistance of social reformers and unemployed but hopeful architects in this contribution to the maintenance of national morale.

And yet in these same papers, warnings of difficulties ahead seem to make game of their sanguine prospects. We are told that strict economy in national expenditure must be maintained. How much rent then will the wage worker be able to afford ? “Taxation’s burden on industry” will have to be minimised. How much will be spared for housing subsidies ? No secret is made of the possibility of mass unemployment. What kind of shelter will the unemployed be able to buy?

Of the physical difficulties resulting from the wartime cessation of building and disruption of the building industry, of the shortage of materials and skilled labour in face of an unprecedented housing shortage, little need be said here. The recent debates in Parliament have sufficiently exposed the situation and the inability of statesmen and experts to meet it. It is only necessary to add that it took twenty-five years between the wars for capitalism to produce four million houses, the number now said to be urgently required. Even if building were to proceed at its highest pre-war rate it would take over eleven years to build them.

It has been said that demolition has been carried out for us by the enemy, that the public are becoming increasingly aware of what technical progress can achieve, and that it will be in a mind to demand it.

As for the bombing, severe though it has been, it has demolished only a small part of our slums. Moreover, damaged houses can be patched up. According to the Minister of Health, of 2,750,000 houses damaged by bombing “no fewer than 2,700,000 houses in England and Wales have been given first-aid repairs, and more extended work has been done to 1,100,000” (statement in House of Commons, May 4, 1943, and to London Master Builders’ Association July 26, 1943).

Barrack-like tenements can be built on the ruins of slum houses in spite of a “public demand” for houses with gardens. Reporting Lord Latham, leader of the L.C.C., the News-Chronicle (April 1, 1943) states .-
“Thousands of Londoners in the eastern boroughs will, after the war, have to live in flats . . . houses could not be built because of the lack of space and the cost of land (our italics).
Public demand will be unavailing, unless the public understands more fully the nature of the so-called “housing problem”; understands how capitalism sets a limit to the production of houses, as it does to the production of all other things required by the working class.

The capitalist system is based on the production and sale of goods for profit. To obtain this profit the capitalist purchases the physical and mental energies of the workers at their market price. With the ever-present competition of unemployed in the labour market, this price, or wage, is reduced to the bare minimum compatible with the maintenance of the worker in a physical and mental condition suited to the efficient performance of his work and to the reproduction of his kind. With regard to one aspect of this. Mr. Churchill has put the matter plainly: —
“You cannot conduct a modern community except with an adequate supply of persons upon whose education. whether humanitarian, technical or scientific, much time and money have been spent.” (Reported in the News-Chronicle, March 22, 1943.)
This necessary physical and mental standard will vary according to the kind of work on which the worker is engaged The kind of shelter necessary for himself and family will vary in the same way.

The agricultural worker and the miner can work and reproduce themselves even though their only protection is the squalid cottage or “back-to-back” slum. The skilled or “black-coat” worker must have slightly better conditions if the quality of his work is to be maintained, and if his children are to have an environment conducive to a higher standard of development.

By the natural competitive working of the labour market, the worker, then, finds himself, at best, with only sufficient money to rent accommodation of this minimum standard. Indeed, the Industries Group of P.E.P. (Political and Economic Planning) are of the opinion that: —
“. . . the income of the average working class family has been too small to enable it to buy as much shelter as is desirable for comfort and efficiency. (“Housing England,” p. 145—our italics.)
The modest improvement in the standard of new housing does not invalidate these general conclusions, for it should be noted that, between the wars, the technical level of most wage workers was rising. New housing scarcely kept pace with the increase in the number of families, so that the condition of the lower-paid sections was little affected.

In 1935 there were still 38,773 “back-to-back” houses in the “prosperous” city of Birmingham alone (Bourneville Research Trust, “When We Build Again,” p. 31), and according to Mr. Craven Ellis, in the same year there were in Great Britain 4,607,000 houses at least 80 years old, and of these 1,052,000 at least 180 years old (quoted in “Housing Before the War and After,” M. J. Elsas, p. 21).

That this state of affairs was the direct result of the poverty of the wage worker and not shortage of either labour or materials, is shown by the fact that in 1933 the average unemployment among building and public works employees had been 336,503, almost a third of the total engaged in these industries.

Writing in 1942, M. J. Elsas says : —
“If we could assume the mere quantitative problems of housing were to be solved in a not too distant future, it is to be hoped and expected that the qualitative problem will come to the fore. “(“Housing Before the War and After,” p. 30.)
The failure to supply even sufficient numbers of minimum dwellings is the inevitable outcome of the erratic course of capitalism, with its periodic cessation of building during slumps and wars; but what Mr. Elsas calls the “qualitative problem” will remain unsolved until capitalism, and with it the wages system, is abolished.

Only when a system is established based on the common ownership and democratic control of the means of production, including building materials, land and plant, when wealth, including houses, is produced for use instead of profit; only, that is, under Socialism, will the workers obtain the kind of homes they want, and decent and commodious accommodation be available for all.
John Moore

With or Without Comment (1943)

From the October 1943 issue of the Socialist Standard

Holy Russia
As it was 20 years ago : —
“There is full religious toleration, but the communist party is fiercely anti-clerical and conducts an unremitting controversy with the orthodox church— certainly the most reactionary and grossly superstitious form of belief that survives in the civilised world.— (“The Russian Workers’ Republic.” H. N. Brailsford. Published about 1921. P. 150.)
As it is to-day : —
“A nation-wide programme of church repair and reconstruction has been started in the Soviet Union. 
Archbishop Sergei, head of the Russian Orthodox Church, and the chairman of the Moscow Soviet have visited the new Virgin Monastery in Moscow to inspect damage done. 
Soviet architects are preparing blue-prints of a model type of village church to be erected in place of the  hundreds burned down by the Germans. Work is also going on on plans for restoring to the smallest detail the famous Istra Monastery, which was badly damaged by the Germans in 1941.”—(Reuter, Moscow, March 11. Manchester Guardian, March 13, 1943.)

“Marshal Stalin on Saturday officially received, in his capacity as Soviet Premier, the acting Patriarch of the Russian Orthodox Church, Metropolitan Sergei of Moscow, Metropolitan Alexis of Leningrad, and Metropolitan Nikolai of Kiev. In the course of the conversations Metropolitan Sergei informed Stalin and Molotov . . . that the Church leaders intended shortly to call an assembly of Orthodox bishops to elect a Patriarch of Moscow and All Russia, and to set up a Holy Synod, or Church Council, under the Patriarch. Stalin, as head of the Government, received this information sympathetically and declared that the Government would have no objection.—(Daily Worker, September 6, 1943.)
Mr. Alexander Werth, Moscow Correspondent of the Sunday Times (August 22) suggests that one of the reasons for the favour now shown to the Church by the Russian Government is the desire to increase the birth rate.

Another obvious explanation of the change is that now the Communist International has been formally disbanded the Orthodox Church will serve as a useful means by which Russian foreign policy can exercise influence in those Balkan countries where the Orthodox Church is strong. The Times cautiously remarks that it is better that Russian interest should be expressed through the Church than through Communist channels.— (Times, September 17.)
“The Archbishop of York, 68-years-old Dr. Garbett, travelled to Russia . . . with two small suitcases—one held his ordinary clothes, the other his ceremonial robes, vestments in cloth of gold and the gold-lined mitre.”— (Daily Mail, September 16, 1943.)
Was this journey really necessary?
“We greet you, we salute you, we thank you, we remember you in our prayers, and we say God bless and God guide the people of Russia and their great leader, Joseph Stalin.— (Bishop of Chelmsford; who said also that Christians in Russia form “a far larger number and percentage of the general population than is the case in this country.” Daily Telegraph, June 28, 1943.)
* * * *

An Excellent Precedent
“Mussolini, trying to assert himself in his old blustering manner, complained of the lack of light and running water when he was imprisoned on Ponzi Island, according to neutral travellers reaching Madrid from Rome to-day.

He did not complain for long. According to one account (quoted by British United Press). Mussolini was told by the prison warden :

‘This prison was built on plans signed and approved by yourself. Thousands of your political prisoners have been lodged here—and you are the first to complain.'”—(Evening Standard, August 26, 1943.)
When shall we see Ministers of Health living in “workers'” houses, food millionaires living on the food they sell, Ministers of Labour labouring at the wages they fix?

* * * *

Morals and 1,000,000 Slum Dwellings
“You cannot expect cleanliness, truth and honesty from people brought up in houses which are damp, verminous and without sanitary decency. There must be a million such houses in this country. Sexual morality fails when there is deplorable overcrowding in filthy houses. 
For 50 years after the present war we shall be struggling to regain the moral and social level which our people reached at the end of the Victorian era. The Church can give invaluable service in this task, but we must show a wisdom bred of wide understanding and sympathy.”—(Dr. Barnes, Bishop of Birmingham (reported in Daily Telegraph, May 27, 1943.)
* * * *

A Reform Which Didn’t Reform

A Companies Act was passed in 1928 to remedy abuses of the law governing companies. In 1929 the 1928 Act and all other existing Companies legislation was consolidated in the Companies Act, 1929.

Its sponsors said it was a very good act. It was based on the report “of a very able Committee” (President of the Board of Trade, House of Commons, February 21, 1928). “The House,” he said, “owes a real debt of gratitude to the members of that Committee.” On April 29, 1929, he said that the Consolidated Act was “a perfect piece of consolidation,” and that a tribute was due to the Parliamentary draftsmen for their work.

It might have been supposed that such a well-favoured Act, running to 385 Sections and 12 Schedules, could be regarded as the last word on the subject; but now the Government has appointed a new committee to inquire into the matter all over again. The Manchester Guardian explains the new inquiry thus : —
“This new review … is dictated, first, by evasive practices (some plainly criminal) which have developed in recent years and, by changes that have taken place in the same period in the industrial and commercial practice of the country. The ‘shameful swindling’ of the inventor (as an authoritative voice called it) by ingenious rogues acting barely within the terms of the 1929 Act is perhaps the principal motive behind the new inquiry.”—(Manchester Guardian, June 30, 1943.)
In short, the ingenious rogues soon found new legal ways of “driving a coach and four” through the 1929 Act; and the Times is sceptical whether the new inquiry will do anything better : —
“Unless the present Committee are extraordinarily successful in interpreting the current of public opinion (as well as in remedying past and present abuses) and in picturing the future form of organisation of industry, the Companies Act of their amending, like the Act of 1929, will itself be wanting amending long before the 1950’s or 1960’s.”—(Times, July 5, 1943.)
It is interesting to record an observation made by the President of the Board of Trade at the time of the 1928 Act. He scouted the idea “that frauds and lesser malpractices can be stopped by the simple expedient of a prohibition by Act of Parliament” (House of Commons, February 21, 1928) and went on to make the illuminating remark that “the imposition of statutory regulations and prohibitions might not merely put a stop to the activities of a wrong-doer but place quite intolerable fetters upon honest business.” It was better in some cases, he said, to refrain from action “because it might be of doubtful advantage and might gravely interfere with the necessary elasticity of business.”

How long will it be before the new Act is shot through like the old one?

* * * *

News About the Next War

A short while ago a Royal Air Force officer said that whether bombing won this war or not, it would certainly win the next war. I doubt if Sir Arthur Harris would agree.
“It appears to me that bombing should be regarded in the framework of military history. No two major wars are dominated by the same weapon. The war of 1914-18 was a submarine war It was very nearly won by submarines. The Germans thought that the following war would be a submarine war; but it has turned out to be a bomber war. That, in itself, implies that the next war will not be a bomber war, but a war dominated by some new weapon, perhaps some form of radio weapon.”—(Major Oliver Stewart, Evening Standard, September 1, 1943.)

“. . . Having had two wars in one lifetime, we are naturally running the second war rather better, very much better, than we did the first. If we have a third war in our lifetime—and I hope we shall not—we shall run that war with almost complete perfection, in the light of this second experience.”—(Mr. Herbert Morrison, Home Secretary, House of Commons, May 26, 1943.)

* * * *

Russia Abandons Educational Experiments

Admirers of Soviet Russia used to make much of their educational methods, co-education, self-government, free secondary education, and so on. One by one these have been abandoned. The following summary is from the Economist (August 28, 1943) :—
“The new school year in Russia starts with a sensational reform. The co-education of boys and girls in secondary schools has been prohibited. . . . The reform is to be enforced with the utmost determination. . . . No reasons have been, given officially to explain this step, which marks a significant departure from Soviet pedagogical principles. Co-education was until recently regarded as one of the progressive features in which Soviet schools took a particular pride. The reform is, no doubt, in keeping with the reforms carried out a few years before the war, which brought the Russian school back to its more or less traditional path. The so-called self-government of school children was then abolished; the authority of the teacher was re-established; uniforms for school children, as well as formal examinations, were re-introduced; and last, but not least, fees were introduced for secondary schools attendance.”
Alexander Werth, Moscow correspondent of the Sunday Times, reports (August 22, 1943) that a Russian paper, Komsomolskaya Pravda, in a recent article, emphasised that “boys must train to be soldiers and technicians. . . . The essential function of girls—who among other things will in the schools receive special training in sewing, hygiene, and cooking—’is to become future mothers.’ ”
Mr. Werth goes on :—.
“In youth organisations today the idea of authority of parents and teachers is being strongly inculcated. The enormous losses suffered in the war . . . coming on top of the various errors in the past, such as the abortion laws, which were not repealed until 1936, have unquestionably prompted the Government to adopt a long-term population and birth-rate policy with a return to strong family principles. In this connection it is interesting to observe the encouragement given to the Churches, especially in rural areas.”— (Sunday Times, August 22, 1943.)
* * * *

Comrades in Arms?
” Nowadays privates and N.C.O.s travelling in a bus, tube or train, must give up their seats to men of senior rank should they be standing.”—(From an article on New Regulations in the Russian Army, Daily Worker, July 9, 1943.)

“There is a very great division indeed between rates of pay for officers and men of the Red Army. The men get 10 roubles a month. That is about 6d. of my money. An officer of field rank on active service in the line earns up to three or four thousand roubles a month.”—(Paul Holt, Moscow Correspondent of Daily Express, May 24, 1943.)

* * * *

The Vatican and its Money

The Daily Express (September 4, 1943) reported the arrival in London of a Signor Fummi who is “an important banker in Italy, and advises the Pope on financial matters. The Vatican State is probably by far the richest for its size in the world and its finances are spread in almost every country. The Pope takes a personal interest in the various investments and sees that the resources of the Papacy are carefully nursed. Recently he sent a representative to America to look into investments there, and Signor Fummi will spend some time with Bank of England and other financial experts going into the considerable Vatican finances invested here.”

Forward (September 11, 1943) quotes the following from The Week : —
“What may prove a new factor of international importance is disclosed in news reaching us from an unimpeachable New York source to the effect that the Vatican account has now been effectively concentrated in the hands of the Morgan Bank. And it is stated the account is … probably among the three largest single accounts now handled by the House of Morgan. The account, it appears, by no means represents merely the gigantic Vatican funds raised in the United States, but on the contrary is to a considerable extent composed of moneys raised in Europe and transferred to New York.”
Edgar Hardcastle

Wednesday, March 29, 2023

Editorial: Rifts in the Atlantic Charter (1943)

Editorial from the October 1943 issue of the Socialist Standard

When this war began, as when the last war began, there was a general chorus of “Never again.” To those who accepted the theory that wars are caused by the malevolence and greed of one man, Hitler, or of a group of Nazi leaders, it was easy to sketch the future peace. Remove the aggressors, disarm the aggressor Powers, then, in the words of the Atlantic Charter, a peace will be established which will afford to all nations the means of dwelling in safety within their own boundaries. But the Atlantic Charter, like Wilson’s 14 Points of the last war, is founded on a myth, the myth that nations in a capitalist world are just associations of human beings, able and willing to dwell within their own boundaries and to enter into mutually beneficial trading relationship. Capitalist states are entities in which one class, the owning class, lives by exploiting the property-less class, and must, in order to realise the profits of exploitation, sell goods in the world market in fierce competition with the capitalists of other states. There will be no enduring peace in the world until the world’s capitalists are dispossessed; the means of production and distribution made the common property of society as a whole; and goods produced not for sale at a profit but solely for use. The Atlantic Charter is silent on this point, but whenever the statesmen descend from the clouds of rosy hopes to the practical business of international relationship it keeps on breaking through. After the last war Lord Keynes told America that the only way, short of making an annual present to Europe, was that “America must buy more and sell less”: but the capitalists who own and control America’s great mass production industries (like their fellows in every other country) are not in business for charitable purposes, and their ruthless determination is to sell more, not less. In this war discussions have been going on round rival British and American plans for financing international trade. We need not go into the details, it will suffice to emphasise the fact that they are rival schemes, each group being concerned to safeguard its own interests. Here is the comment of a British Financial Editor (Manchester Guardian. August 24. 1943) on the latest version of the American plan : —
“As it now stands the American plan is entirely unacceptable to any country which has learnt by bitter experience that the attempt to prevent variations in exchange values by internal deflation is bound to produce mass unemployment. This is a grave matter. For three years the pessimists have been telling us not to expect any genuine co-operation from the United States in the financial and economic field and to prepare instead for an independent policy. . . . This plan . . will enormously strengthen British commercial isolationism. If it is persisted in those in Britain who are working for a truly international economic policy will be disastrously weakened. . . Let is be said at once that no British Government could accept anything remotely like these proposals and remain in power beyond the first post-war election.”
Here is the voice of the British capitalist, on the matter nearest to his heart—trade and profits. How far removed it is from the woolly optimism of the Atlantic Charter !

Then let us look at the question of territorial claims. The Charter has it that the signatories “seek no aggrandisement, territorial or other”—but what about the real post-war world in which the armed Powers again look to their defences, strategic frontiers and so on, and invoke the old principle of seeking security by alliances and the balance of power? On August 31, 1943, the Daily Mail, in an editorial headed “Where We Stand,” made a very forthright declaration of British imperial interests. Affirming that the American and Russian Governments at the proposed three-Power conference would “resolutely defend the vital interests of the American and Russian nations,” the Mail summarised the vital interests of the British Empire. Accepting the doctrine of the European balance of power, the Mail says that Britain “went to war, and not for the first time, so that no single Power or coalition of Powers should dominate Europe.” For this reason, says the Mail, “she is pledged to restore the independence of Poland—of all Poland and not half of it. She is pledged to restore the independence of Yugoslavia. She is in honour bound to liberate all the nations, big and small, who have fought on our side. . . . And this is so of all Europe, not only of Western Europe. Eastern Europe is as important in the balance of power as Western. The independence of the south-eastern countries of Europe is as necessary to the security of the Eastern Mediterranean, and therefore of Imperial communications, as the independence of the Low Countries is to the security of home waters.”

The significance of this is that the Russian Government, though pledged to restore “a strong and independent” Poland, has declared its unwillingness to restore Poland’s 1939 frontiers (statement published by Russian Embassy in Washington, Daily Mail, February 27, 1943).

The Daily Mail regards these rival interests as being capable of settlement, but with Germany and France for the time being too weak to exercise much influence, it is obvious that the relationship between America, Britain and Russia after this war will be a crucial question. An American writer on foreign affairs, Mr. Walter Lipmann, in his “U.S. Foreign Policy,” puts the issue in dramatic form when he writes that if the post-war settlement of the European States on Russia’s borders discloses a conflict of interests between Russia and the Western Allies, “then every nation will know that it must get ready and must choose sides in the eventual but unavoidable next war.”

In this connection it will be recalled that Russia has its own version of the balance of power; in the words of Foreign Commissar Molotov : “We have always held that a strong Germany is an indispensable condition for durable peace in Europe” (speech to the Supreme Soviet, October 31, 1939).

These are the European and Anglo-American problems that will confront a capitalist world after this war, but each continent and ocean contributes its own further problems. China hopes to emerge as a dominant Pacific Power controlling lands formerly held as colonies by Western Powers, and bent on speedy industrialisation and entry into the world market as a powerful competitor. The South American Republics have their rivalries with each other and with U.S.A. Africa will again be the scene of struggles for trade between European, British and South African interests and the Eastern Mediterranean has its problem of Jew and Arab—”Trouble is brewing in Palestine,” says the Cairo Correspondent of the News-Chronicle (August 30, 1943). “Both Jewish Zionists and Arabs are armed and both are preparing to use their arms against each other. … As the menace of the world war ebbs from the shores of the Mediterranean, a wave of civil war threatens to break over Palestine.” The struggle between Indian and British capitalism has yet to be decided, under the slogans of national independence. Turkey and the proposed Federation of Arab States have to carve out their place in the sun.

In short, the world will still be a capitalist world based on private ownership and competitive struggle. The remedy lies neither in the amiable hopes of the Atlantic Charter nor in the so-called “realism” of the Daily Mail, but in the achievement of Socialism, which alone can destroy the forces which make for wars and organise world co-operation of the human race.

The Origin and Growth of Nazism (Conclusion) (1943)

From the October 1943 issue of the Socialist Standard


Like a thunderbolt, the world slump struck German economy amidships towards the end of 1929. The capitalist magnates of New York, London and Paris who had financed Germany’s industrial comeback, hastily called in whatever part of their loans they could lay their hands on. Thus the German crisis assumed even more disastrous proportions than that of other countries. Her industry had rehabilitated itself on foreign credit and when this credit vanished, the bottom fell out from Germany’s reservoir of production.

This crisis of “overproduction” is an inevitably recurring feature of capitalism. It is “overproduction” indeed, over-production of the surplus value accumulated by its capitalist owners and which they cannot use or dispose of profitably. But for the workers it means unemployment and reduced standards of living. For the German masses the post-war years had been a continuous ordeal of extraordinary strain. The new republic had never settled down politically because the economic background was seldom stable enough (in the capitalist sense of “stability”) to allow for the mental adjustment necessary. When, therefore, the government of Bruening (Right Wing Catholic) was defeated in the Reichstag in July, 1930, the electorate went to the polling booths on September 14, 1930, in an atmosphere of a world  crisis which appeared to them as the consummation of years of distress and bewilderment. From this election the Nazis emerged as a mass party. They secured 6,400,000 votes and 107 seats in the Reichstag – eight times the number polled by them in 1928. The percentage of total voters who actually voted jumped from 50 per cent to 73 per cent: nearly four million new voters had entered the lists. It is estimated that most of these, probably three million, hitherto non-political elements, went to the Nazis. Thus the party of  “National Socialism” is revealed as a product of the world crisis – a party of wild despair and wild hopes.

The Nazis owed this unparalleled success to the fact that in the eyes of many their policy and make-up promised a complete break with the past. The fanatical fervour of the “Brownshirts,” their demagogy and displays, did not appear out-of-place under the circumstances. It reflected the neurosis of the modern troubled world. Compared to them, the parties of the republic, particularly the Social Democrats, were compromised with the “old order” and completely lacking in  “dynamic.” The German Communist Party, under the circumstances prevailing a possible rival to the Nazis, secured 3 ½  million votes. They, too, competed for the votes of those who wanted a break with the “old system” (in fact, large blocks of votes repeatedly fluctuated backwards and forwards between the Nazis and the Communists), but their past inconsistency and support of Social Democracy lowered their standing as a political party. And their ties with Moscow limited their appeal as a Russophile organisation. German industrialists  and big business owners now turned in increasing numbers to Hitler’s party as a means of helping them to give Germany what they were pleased to call “political stability.” They themselves, as “Nationalist” and  “Conservative” parties, had dismally failed to secure any backing of consequence among the people. In the September elections they had even lost a good deal of their previous support to the Nazis. In the “National Socialist” movement they saw an organisation that could compete for “mass appeal” with the Social Democratic and Communist  parties whilst at the same time providing a check to the political and economic threats of the disgruntled workers.

The union between the Nazis and a large section of the German capitalist class was publicly sealed by the parliamentary co-operation of Hitler’s party with the “nationalist” bloc led by Huegenberg, the leading business magnate. This does not mean, however, that the two parties had merged or that the capitalists of Germany were willing to commit their fate into the hands of the Nazi leaders. Nor would it be correct to assume that the Nazis from then onwards became the puppets of the German capitalists. There was in fact a great deal of distrust between the two groups. The Nazi movement was at no time comparable to the orthodox political parties which capitalism had hitherto thrown up. They were not a “class” party in the sense that the Conservative Party in Britain is the party of present-day British capitalism. Their membership and supporters held views as varied as the colours of the well known chameleon. The Race-mythology which attempted to concoct a special philosophy of its own, was merely one wing, and not the whole, of the Nazi movement. Its spokesmen is Alfred Rosenberg (this is definitely a Jewish name). The mass-appeal of the Nazis certainly does not rest on the race-myth. The S.A. (Storm-troops) led by Captain Ernst Roehm was largely composed of unemployed as wells as those dregs of society which Marx called very descriptively the “Lumpenproletariat.” It was this body that carried the terror against the Jews and other opponents of the Nazis. Numerically the most powerful section of this political hybrid was the “radical” wing led by Gregor Strasser. Strasser later attempted to detach this wing from the party and come to terms with trade union and Social Democratic elements. He, like Roehm, was later murdered by his former “comrades” in the “blood-purge” of June, 1934.

This political incoherency is the real explanation of the “Leader-cult.” The more backward and confused politically a people are, the stronger is the gravitation toward absolute personal leadership as a unifying force. Conversely, to the extent that the masses become politically enlightened, the need  for “leadership” disappears.

These differences, as well as the appetites for power of individual Nazi politicians, caused serious conflicts within the movement. But the momentum of the crisis, plus the powerful financial backing from the capitalists, boosted the Nazi Party from strength to strength. In July, 1932, the Nazis polled nearly fourteen million votes, and thus became the strongest single party in the country. To illustrate the unscrupulous lengths to which these political adventurers relied on the credulity of the German electorate (or a large part of it), the following items from their “Immediate Economic Programme,”  published at this election, can be quoted:

“Four hundred thousand houses for single families to be built within a year!”

“To increase the annual yield from German agriculture by two milliard marks,” a fantastic notion.

And, of course, these “revolutionary economists” proposed to abolish the gold standard!

What was the reaction of the so-called “working class” parties to this mortal challenge to all the principles and traditions which the workers since the time of Marx and Engels have built up by their historic struggles? Now, after the event, accusation and counter-accusation are hurled at each other by the parties involved. The worker who has no knowledge of the recorded events is confused. The facts, however, condemn both the Communist Party of Germany and the Social Democrats as equally guilty. The Communists who still claim that they proposed a “United Front” would have defeated the Nazis are, as usual, lying. They had no intention of combining forces with the Social Democrats against Hitler. On the contrary, their avowed purpose was to destroy the German equivalent of the Labour Party by every means, fair or foul. So intense was their hostility that they supported the plebiscite on August 9, 1931 organised by Huegenberg’s reactionary “Stahlhelm” and the Nazi Party, to turn out of office the Social Democratic Government of Prussia. As late as May, 1934, after more than a year of Nazi tyranny, Palme Dutt, the well-known British Communist, declared in his book, Fascism and Social Revolution:
“It would be more correct to say of Social Democracy and Fascism: their aims are the same (the saving of capitalism from the working class revolution); they differ only in their methods.” (Page 155.)
It was a year later, in 1935, when the Russian Government had reason to fear  the threat of war from Nazi Germany, that the Communists obediently turned themselves inside out again and clamoured for “Unity against Fascism.”

And yet no argument can be shown to prove that a combination of Social Democracy and “Communism” would have stayed the Nazi onslaught against the Weimar Republic. This Republic had virtually ceased to exist when Bruening became Chancellor in the spring of 1930. Bruening governed the country by emergency decrees which were authorised by Hindenburg (President of the Republic since 1925). Hindenburg, the Monarchist General, who had not a good word for the republic, but who nevertheless had taken the oath of loyalty to the Weimar Constitution. Bruening’s emergency decrees violated the constitution, but the only party in the Reichstag, who genuinely upheld the principles of Weimar, the Social Democrats, shrank from challenging Bruening and the popular figure of the President who was behind him. They feared that the defeat of Bruening would mean the triumph of Hitler. It was the age-old reformist illusion of compromise; the suicidal tactic of the “lesser evil.” In pursuit of this self-destructive policy the Social Democratic Party of Germany first linked itself with the Junker Generals, then with the catholic Centrists, and lastly again with the militarist Junker, Hindenberg. These alignments sapped the German Labour movement of most of its strength, destroyed the hopes and enthusiasm of  its working class supporters, and finally handed the sorry remains to the Nazis for the death blow. How many more tragic lessons must the workers learn before they abandon once and for all the folly of the lesser evil?

By the end of 1932, the world crisis was at its climax. The markets of the world, glutted by the fertility of modern wage labour, became additionally restricted from the high tariff walls erected by the frightened governments. The Ottawa Agreement barred the way to the raw materials of the British Empire. The capitalist class of Germany were confronted with problems involving their very existence. One half of their industry was at a standstill (the unemployed numbered six and seven millions). Their attempts to impose a semi-military rule on the country through Hindenberg, Von Papen, and general Schleicher, had broken down owing to the hostility of the Reichstag. Germany, although its peculiar development and abnormal condition had, for the time being, brought the democratic forces to failure and disaster, was yet too highly developed to be governed by a regime which did not grow out of a mass political organisation in the country. The Nazis, although they suffered a set-back at the election following their triumph in July, 1932 (they only polled 11,730,000, and thus lost two million votes within a few months, i.e. on November 6, 1932), were the only hope of consolidating German capitalism. Consequently, an agreement was reached between Von Papen (the confidant of Hindenburg) and Hitler, and by it Hitler was installed as Chancellor by Hindenburg in January, 1933. Immediate preparations were made for a further election in order to present the new government to the country as a “national” government so as to strengthen the popular support. The elections, held March 5, 1933, gave the Chancellor, with the backing of the President, attracted millions of additional Nazi votes. Seventeen million votes were cast for them at this election. The seats in the Reichstag were divided as follows:-
Nazis………………………………………….288

Social Democrats………………………….......120

Communists………………………..……….......81

Centre…………………………………..…….....73

Huegenberg’s Nationalists ……….…..................52

All others……………………………..…….........14

 Total                                                                     647
88 per cent of the total electorate voted.

Thus the Nazis together with the nationalists, with whom they were in coalition, held a clear majority. The question arises: To what extent were these figures representative of national opinion freely expressed?

The Reichstag Fire (February 25, 1933) had been blamed on the Communists, and this party was certainly at a grave disadvantage. Nevertheless, the party lost only 19 seats compared with the previous election (November 6, 1932) and a mere eight seats compared with the elections previous to that (July 31, 1932). The Social Democrats lost only one seat.

This proves not only that the votes cast were, in the main, representing popular opinion (although it must be remembered the facilities for propaganda were almost wholly monopolised by the Nazis and their Nationalist allies), but more important still, despite the fact that Hitler was chancellor and his Brownshirt thugs roamed the streets at will, a considerable section of the German people, mostly the industrial working class, were yet determined enough to declare their opposition to the new regime, and the new rulers were not able to prevent them from doing so. Only later, when the government had managed to pass a special measure through the Reichstag, did they abolish the old constitution and establish the dictatorship of the “Third Reich.”

It is admittedly an impossible task to assess here comprehensively the import of events to which tomes have already been dedicated, and of which some aspects remain obscure. The main conclusions from the foregoing analysis are stated herewith:

Political democracy was born in Germany under most unpromising circumstances and against an unfavourable historical background. Its birth was not the result of a struggle by the workers nor the desire or need of the German capitalist class. It was thrown to the nation by the defeat of 1918 and the temporary impotence of ruling class elements.

Nevertheless, the power of the constitution was such that only a mass movement could break it. The Nazi Party was able to rally those sections of the masses who were most backward politically and who had not yet shed their dependence on absolutism. Their success was contributed to by the weak and compromising character of German Social Democracy which attempted to combine the role of working class reformist party with the guardianship of capitalist interests. The Communists drew a large section of the working class into opposition to the democratic method and so the elements whose co-operation was essential to ensure a popular basis for the Republic, were split from the beginning.

The militarist class or junkers who had been the real power behind the absolutist throne up till November, 1918, were seriously weakened by the army’s defeat. The re-arming of Germany placed them once again into a key position in German politics. This time, however, they were dependent on mass-parties for their link-up with the people; this was provided in the first period by Social Democracy and other Republican parties. The world crisis in 1930-33 barred the world market and access to raw materials to the capitalist class of Germany (most of whom are industrialists). This determined the capitalist and militarist elements to embark on a policy of territorial annexation involving war. The Nazi Party then appeared as a means of ending the violent political fluctuations and preparing the country materially and psychologically for the coming conflict. The Nazis, therefore, could never have formed a stable regime of any permanency. Their rule was bound to involve a series of climacterics leading to war. They were in the last analysis a party of crisis and war.

Finally, the Nazis owed their triumph directly to the world economic crisis. Thus the periodical crises of capitalism now emerge as a powerful force for the shaping of political mass opinion. In this particular instance the circumstances combined to give the spoils to a party of reaction. But the future may well atone for this setback. With the fuller experience of workers everywhere, the crises to come -“planners” notwithstanding – should provide an immense stimulus to the world movement for Socialism.
Sid Rubin

SPGB Meetings (1943)

Party News from the October 1943 issue of the Socialist Standard










Tuesday, November 21, 2017

Money and Socialism (1943)

From the October 1943 issue of the Socialist Standard

Many people are incredulous when Socialists declare that money and banking will have no part to play in Socialist society.

Those on the "left" who are informed at all keep a discreet silence on this particular subject, or have been won over to the belief that Socialism has been established in Russia. Events and more information of the internal set-up of that country will in due course dispel the illusion from workers' minds. Yet such is the inroad that apologists of Russian “Communism" have made into the general theory that is essential to the workers' understanding of Socialism, that we are prompted to quote the Soviet War News pamphlet, "Believers and Clergy of the U.S.S.R." (Hutchinson & Co., 3d.). It contains a list of monies deposited with the State bank by priests and the acknowledgment of same by Stalin. One priest gives as follows: “I paid into the Government Bank on the 28th all my private savings, totalling 273,000 roubles'' (p. 6), (equivalent to about £11,000).

How these ecclesiastics came by their money need not detain us; what is exposed are the features of capitalism that Socialists have for years contended arise from the capitalist basis of Russian economy. What are the features of which we speak? Here a brief glance back is necessary in order to view capitalism in perspective.

Historically, capitalism, or the production of commodities for a market, breaks the fetters of feudal economy, based on domestic handicrafts and land cultivation, by revolutionising the means of production, thus changing the class relationship of landed proprietors and serfs to one of wage-workers and capitalists.

The erstwhile peasants become the employees in the capitalist's manufacturing workshops for wages.

Thereafter the development of the capitalist class itself goes apace with capital accumulation, and the invention of power-driven machinery to cheapen their commodities. Small private enterprise gives way to limited liability companies and trusts, tending always to remove the capitalists further from the activity of personal supervision by the delegation of a host of technicians, managers, etc., who carry out the capitalists' mandate, until in the case of State capitalism itself the State is used as the central organisation for managing capitalism as a national whole.

Whatever form it develops, the capitalist system produces commodities, and for their exchange and circulation needs a medium for expressing their value and price. All other commodities have been ousted by gold for this supreme position by the fact that gold enshrines in a small compass much human labour for its production.

Gold is therefore the commodity par excellence for expressing value in terms of money, on the basis that the labour-time expended to produce a given quantity of gold by modern methods—i.e., socially necessary labour—can be equated to an equivalent of socially necessary labour incorporated in any other commodity.

Most national currencies are therefore related to gold— an ounce of gold of certain fineness, for instance, divides up into nearly four pounds sterling, or in currency terms £3 17s. 10½d. The fact that gold, having doffed the commodity form and given the State stamp of money, can be replaced by metal or paper tokens, gives the clue to the basis of the capitalist arrangement of credit money, or exchange without immediate payment in gold, which enables the finance capitalist to offer to the whole capitalist class the total loanable wealth via the medium of banks, much to the dismay of the “small man," who finds difficulty in getting credit as against large concerns.

Any mismanagement of token currency by the capitalistic state in, say, the printing of too many notes to do the work of gold coin leads to inflation, and a comparable rise in prices.

Money is rightly said to be the lubricating oil that enables the capitalist mechanism to move, but it is not the motive power, for the true drive is the human need of the necessities of life. Standing in need of these necessities, the workers must sell their labour-power before they can buy commodities for their subsistence; and by the social legerdemain of money they are legally robbed of full access to the social wealth which they have produced, the trick being that wages will purchase but a portion of the total wealth made by them, the surplus being split up among the employing class.

With the foregoing as a background we return to the subject of Russia.

The social upheaval that took place in Russia opened up the country for industrialisation. The Bolsheviks seized power by the support given them by war-weary workers, soldiers and peasants, for the slogans of peace, land and bread; taking control of a state where the partly foreign capitalists were very weak politically. But could they jump the successive stages of capitalist development into Socialism? The S.P.G.B. declared an emphatic no! No intellectual minority could perform the social miracle of introducing Socialism with a non-socialist majority! Around the "Communist" dictatorship gathered those who determined to end the slough of semi-feudal Czardom. Learning from the large- scale producing countries, and applying this technique to a huge backward country, they tackled the problem that once faced all capitalist countries, namely, how to get cheap food for the towns. This was done by buying at a fixed price all peasant produce and by urging peasants into “Collectives" for the more economical use of machinery leased to them by the State. Alongside with this, industry was planned on the' basis of payment by results, or piecework, thereby increasing that part of the population dependent on wages paid by the State.

Thus at a stroke, this form of state capitalism removed any would-be capitalist to the completely impersonal owner of capital vested in the state, and created a social stratum of managers, experts, and functionaries who are appointed and salaried by the government. The class relationship in Russia is not yet sharply defined, but at first glance it could be described as one of state investors as against mere wage workers.

The official account of the state debt to hand is in the Statesman’s Year Book, 1942, which gives the following: "In January, 1933, the internal debt was 10,088,900,000 roubles; the internal debt has been increasing annually; some are lottery loans, and others bear interest of 4 per cent."

“National debts, i.e., the alienation of the state," says Marx, “whether despotic, constitutional or republican, marked with its stamp the capitalist era. The only part of the so-called national wealth that enters into the collective possession of modern peoples is their national debts." He then continues, “As with the stroke of an enchanter's wand, it endows barren money with the power of breeding and then turns it into capital without the necessity of its exposing itself to the trouble and risks inseparable from its employment in industry or even in usury."—Capital Glaisher Edition, p. 779, Genesis of Industrial Capital.)

Those simple souls who look for a capitalist class in Russia living in luxury will look in vain; for accumulation has had a chequered career in that country, being sunk in the fixed capital of new industrialisation, in the shape of roads, factories, power undertakings and equipment, much of which was bought and paid for from abroad, and this, together with the necessary heavy taxation drained away by the needs of modern war, leaves little time for the production of luxury goods. It would seem that the creditors of the young Russian state must wait for better times. Austerity is the mode at present for the monied class in Russia, although glimpses can be had of the upkeep of villas and servants which suggests a much higher living standard than that of wage-workers.

In contradistinction to state capitalism and those who advocate the nationalisation of the financial system, Socialists stand for the complete ending of the assessment of values in terms of money. Socialist society will not produce exchange-values or spend any part of its labour force obtaining the metal gold for currency, so essential to capitalist production and payment.

It will, undivided by classes, produce and distribute goods and services without money or price for use by the whole community.
Frank Dawe