Showing posts with label West Germany. Show all posts
Showing posts with label West Germany. Show all posts

Thursday, October 2, 2025

The Passing Show: The Same Everywhere (1966)

The Passing Show Column from the October 1966 issue of the Socialist Standard

The Same Everywhere

The Balance of Payments. Four words which have meant a headache for every British government for umpteen years. “Our” gold and dollar reserves are too low. “Our” imports are too high. “We” are paying ourselves more than “we” are earning. “We” are heavily in debt. And so the moans go on and on. So much so that you could be forgiven for thinking that it is a peculiarly British situation, almost as if the rest of the world was flowing with milk and honey for the average inhabitant. Well, let’s take a look at it.

First of all, if you’re thinking that high exports and a favourable balance of trade mean that we could all sit back and relax, a little bit of history reading will do much to dispel that notion. Indeed, at a time when Britain was just about the most powerful nation in the world, ruling the waves militarily and commercially, working people lived under the most shocking conditions. But come a little more up-to-date if you like, and remember that only a few years ago West Germany had a gigantic balance of trade surplus (“embarrassingly large” one commentator once called it), yet her workers had to struggle just as hard for improvements in wages and conditions, and there have been some really bitter strikes there in recent times.

And today? The German capitalists have been getting jittery about the state of their economy. According to Chancellor Erhard, wages have been rising too fast (it’s always too fast—never too slow), since 1963 by 8½ per cent, while productivity has gone up by only four per cent. He has not been slow to threaten Wilson-like measures: —
. . .  we still have things under control. However, if we let them drift, then the same will have to happen to us, that is, a wages freeze, a prices freeze, a considerable rise in the cost of living, indeed even partial balance of payments control. (Guardian, 6/8/66)
It has been favourite with some people to recommend that British workers take a leaf out of their German brothers' book and work as hard. Doesn’t seem to have made much difference, does it? The cry for them, as for us, is still “work harder and pull your belts in!”

Just to show you that capitalism’s problems are similar, wherever you go, let us take another example, this time from one of the “poorer” countries—a rising power since the end of the war. India. There the government has published its fourth five-year plan, envisaging some £10,000 millions investment; yet even if it comes to fruition, the planners admit it will mean:—
. . . every Indian will have a bare two metres more of cloth each year, and three ounces more of food each day.
Not much to write home about? Ah, but even this miserable achievement has a backhanded slap to accompany it.
A massive export drive, if necessary by curbing consumption at home, and Additional taxation . . . are considered essential. (Guardian, 30/8/66)
This, by the way, is one of the countries figuring prominently in the Oxfam appeals, and there is no doubt about the poverty, squalor and starvation of many millions of its inhabitants. But developing Indian capitalism is interested in this only incidentally. Its prime concern is the sale of its goods on the world market. And if this means that the Indian workers have to make do with even less than they get now, the government and employers will not shed many tears—except a few crocodile ones.


Want to be a Postman?

There is a delightfully colourful set of brochures which you can get from any post office, listing the delights of a career with the G.P.O. Read it, and discover that when you work as a postman you “enjoy” such perks as “ a safe job” and “a steady wage”, to say nothing of “an easy mind” and “a friendly atmosphere”. Just think, at 23 and over, you can earn the princely sum of £15 11 s. a week, basic, if you work within four miles radius of Charing Cross, and the opportunity to work overtime.

Perhaps like me, you have your doubts about the adequacy of such a wage, especially if you have a wife and children to think about. But, of course, you can’t expect the Post Office to introduce such a discordant note into their literature, which reads like a song of self-praise from beginning to end. In fact, if everything in the postman’s garden is so lovely, why you may ask, does the G.P.O. have to try so hard to entice you into it with such garish and elaborately printed leaflets?

The answer lies not so much in what has been said as in what has been left out. Shift work in all weathers, for example. And the fact that even the present miserable rate of £15 11s. a week has been won only after a determined strike two or three years ago—the first in the Post Office for more than, half a century. The G.P.O. leaflet is typical of much of the stuff you will find in the Situations Vacant column of any newspaper. No employer, particularly in times of labour shortage, is going to lead off with a list of snags. They will become obvious only when you start working for him. Then, in the manner of Orwell “interesting” becomes “boring” and you find that those “gd. wages and conds” are not really enough after all.

But that’s the outcome of a wages system. No matter what honeyed words your employer uses, your wages are always a problem to him, and to you, too.


Thoughts on Crime

But not very deep ones. I’m afraid, from the Evening Standard leader writer of August 24. He was no doubt prompted by the recent outbreaks of violent crime, and gently chided Lord Butler and the present Home Secretary, Mr. Jenkins, for their “bafflement over the causes of crime in an affluent society”. Yet for all the contribution to our knowledge in this particular editorial, the writer might just as well have left his pen in his pocket.

He makes some sweeping and quite unsupported assertions in his attempts to cover this pressing problem in about 10 column inches, and ends up just as much without a real answer as when he started. “Man is a basically aggressive and pugnacious animal,” he writes, but gives no evidence for this, or for his quite startling suggestion that the object of wars, military training, etc., is to provide a safety valve for the pent-up feelings of bored youngsters.

This editorial caught my eye for its complete refusal to ask one simple question—why? If young people are bored, what is the reason, especially in a rapidly changing world? Isn’t the prospect of a lifetime of wage work enough to make anyone bored? And what do people fight about anyway? This is the question the writer should have begun by asking, but never did. We agree with him that poverty is not the cause of crime, though it may aggravate the situation at times. People fight and knock each other about for very material reasons, when you get down to the bottom of things. Over private property, in fact.

The outbreak of violence is just one aspect of the general competitive struggle which affects each one of us throughout his life. We are all jockeying for economic elbow room, and on the international field, this throws whole nations against each other in massive armed conflict. That, by The Evening Standard’s criteria, should be classified as the biggest and most violent crime of all, involving wholesale murder and robbery, yet the editorial never touched it. A crime, apparently, is a crime when it does not have the blessing of your own ruling class. Rob and murder on their behalf, and you might even get a medal for it. Under any other circumstances, a nice long stretch behind bars.


Gaspers
"The Treasury has received several hundred pounds in cash contributions from members of the public since the Prime Minister announced his measures to deal with the economic crisis.”
(Guardian, 12/8/66)

"I won't retire—I wouldn’t know what to do all day.” (Mr. H. Jennings, winner of over £92,000 in Vernons Pools. Daily Mail Advert, 18/8/66)

‘The pressure of events is remorselessly leading towards a major war, while efforts to reverse that trend are lagging disastrously behind.” (U Thant’s statement to the United Nations, 1/9/66)

“The government spent £3,600,000 in assisting the Potato Marketing Board to take potatoes off the market and push up prices for the remainder last year . . .
(Daily Telegraph, 26/8/66)
Eddie Critchfield

Sunday, July 20, 2025

Editorial: Tobacco workers' dilemma (1953)

Editorial from the July 1953 issue of the Socialist Standard

At the annual conference of the Tobacco Workers' Union, held in London in June, the delegates were discussing unemployment which has recently increased in the industry. The president of the Union, Mr. D. G. Bowry, drew attention to a problem affecting tobacco workers.
“In a number of our factories we have had to endure short time. We have seen the elimination of certain smaller manufacturers with certain dismissals of staff. Yet we are told that if we are to survive we must produce more. It seems to me that we in our industry are tossing up with a double-headed penny. If we produce more we are faced with redundancy, and if we produce less we are faced with the same medicine.”—(Manchester Guardian, 12th June, 1953.)
The point was neatly put; but Mr. Bowry did not state the problem fully and did not offer a solution.

Stating the problem fully he would have included all industries everywhere, not merely the tobacco industry in this country. He would not have called the factories “ours,” for in no country do the factories belong to the workers or to the community as a whole; in all countries all industries, including those run on nationalised capitalist lines, are run for profit not solely for use.

Consequently it is all workers, in all countries, who are tossing up with the double-headed penny. If they produce too little they get the sack; if they produce too much they work some of their number out of their jobs. And if they follow a happy mean their fate is just the same whenever an industry (or all industries) suffers from one of capitalism's chaotic phases of “overproduction” in relation to the market as did textiles last year. Nowhere at all are the workers free from poverty and safe against insecurity.

This is not what the workers are told. All governments and employers, and many labour leaders, tell the workers that if they produce more they will be better off and will be safeguarding themselves against unemployment.

As it happened, a day or two after the Tobacco Workers’ conference the Sunday Express (14 June) published an article by Dr. Ludwig Erhard, Minister for Economic Affairs in the West German government. In it Dr. Erhard offered to Britain and the British workers the advice he offers to the workers in Germany. Recently, “travelling in his fast Mercedes car he went round the Ruhr urging more steel production," and he would tell the British workers:—
“ It is no use for a working man to say, ‘I’m safe whether I work hard or not.’ It is no use saying: 'I won’t go without food even if I’m not worth a job ’ . . . But I would also add this: If you work hard you should eat well. If you eat well, you will work.”
Dr. Erhard thinks that British industry has nothing to fear from German competition as “there is room in the world for both British and German exports." He notes just one difference between Britain and Germany: “ our men work harder and faster.”

But one thing Dr. Erhard forgot to mention is that in West Germany there were at the end of March 1,392,870 registered unemployed!

So far what we have said could only strengthen Mr. Bowry in his conviction that we live in a hard, cruel world, for we have not yet attended to the remark he made at the end of his speech, that he would be “quite happy to hear the solution to this dilemma."

We are quite happy to supply the solution though surprised that among those tobacco workers there was nobody able to do so on the spot.

The dilemma glimpsed by Mr. Bowry is just an aspect, an inevitable one, of capitalism. And the only cure for capitalism is Socialism.

If, as so often happens, the tobacco workers hear the solution and then dismiss it from their minds on the ground that Socialism calls for a radical change of thought and action and is therefore difficult to grasp and endorse, they should remember that that difficulty will be as nothing compared with the miseries of poverty, unemployment and war they will undoubtedly suffer if they go on hoping that social reforms and Labour Governments and nationalised capitalism will get them out of the mess they are in.

Monday, December 11, 2023

Dear Old Pals. The Anglo-German line up (1954)

From the December 1954 issue of the Socialist Standard

Well! Well! So the Germans are Britain’s Allies now! Dr. Adenauer himself has said “it is astonishing.”
“Britain and Germany have signed a treaty to defend one another instead of attacking each other "—(Sunday Express, 24/10/54.)
It must be a great comfort to the people. After two most frightful wars to smash Germany down, the capitalists of Britain and America are now intent on building Western Germany up.

Those past the half-century mark, with a moment to spare for introspection, may well recall the scenes of days gone by. “Pack up your troubles in your old kit-bag!” “It’s a long way to Tipperary.” “Keep the Home Fires Burning.” The Recruiting Office in Whitehall packed with jostling crowds fighting to get into the army first. The Derby Scheme with its armlet, German bakers' shops looted. “ Society ladies chasing about with white feathers. The Great Shell Shortages! Lloyd-George! Minister of Munitions.

The 1915 disasters, Lloyd-George, Prime Minister 

The same Sunday newspaper which reported the news of the Anglo-German Alliance is serialising a new biography of David Lloyd-George.
“To-day’s episode tells of a military disaster which caused grief and misery in nearly four hundred thousand British homes.”
It is the story of Passchendaele, the most stupid and disastrous blunder of the 1918 war.

Four hundred thousand men floundered through mud knee-deep to their doom, trying to capture a piece of land the size of Green Park, Piccadilly.

This was the area at which Haig’s Chief of Staff, Kiggel, visiting the scene after the battle, broke down and wept, sobbing “Good God! did we really send men to fight in that”

That same Passchendaele of which Siegfried Sassoon wrote:
“If I were bald, and fat, and short of breath 
I’d live with scarlet majors at the base 
And speed glum heroes up the line to death 
You’d see me with my puffy petulant face 
Gulping and guzzling in the best hotel 
Poor young chap. I’d say, I knew his father well.
Yes! we lost heavily in that last scrap 
And when war was o’er and youth stone-dead 
I’d toddle safely home and die—in bed ”
Months afterwards, years afterwards, Lloyd-George was asked, if he knew how idiotic Haig and Robertson really were, why he did not sack them out of hand. In his Memoirs he said he dared not take the risk, when the Press were supporting the High Command, which might have required a General Election.

This explanation may satisfy Mr. Owen and some of his readers. It will not do for Socialists. The Socialist Party has a very vivid recollection of those war years.

It was during 1915 and '16 when Haig was “speeding glum heroes up the line to death" that our public meetings were smashed up by hysterically-patriotic members of the British working class.

The self-same violently nationalistic propaganda-drunk workers who cheered Haig’s ludicrous military blunders—booed the Socialist Party speakers who stood up to say that the war was for profits, and would bring workers nothing but disaster.

While nearly a million British soldiers staggered through a sea of mud in Belgium a tiny handful tried to fight through the sea of lies at home—the odds proved too great—the Socialist Party did the only thing possible, stood down until a few more workers came to their senses.

This is the real explanation of those harrowing events. Even two years afterwards, Lloyd-George could still win an election on “Homes for Heroes,” “Make Germany Pay,” and “ Hang the Kaiser,” though the victory was short lived. The political ignorance of the working-class was the ground upon which Haig could hound them to death.

It was this ignorance which blinded workers to their own interests. Understanding nothing of class society, the majority of workers thought they had something to gain from the defeat of Germany. They thought it their interest to prevent German capitalists acquiring British trade. Most of them thought their employers their benefactors—not their exploiters. In brief, knowing nothing of Socialism they supported Capitalism—and inevitably its wars.

Lloyd-George’s election stunts became notorious. The mere mention of “‘Homes for Heroes” got laughs for years, but, after many twists and turns, Baldwin, Ramsay Mac, Chamberlain and Co., the same old routine started all over again.

The same blunders were repeated in 1939/45 by military commanders who must not be mentioned because they have not yet “died in bed.” 1939, a change of labels—but basically the same—and a working class which still did not know that society is divided into two classes, with opposing interests, marched, or now, was rushed, to the shambles in fast trucks.

By now, science had “improved” war. No need to rush to the front, the aeroplane dropped it on you. Still, the workers support their masters, although 60,000 registered objection to the war.

And now, after two doses, Britain and Germany are Allies, “pledged to defend each other against a common aggressor.” What again? Yes! All over again.

And will all those who marched to smash Germany and “make her pay” rise up as one man in burning indignation at the futile squandering of life and wealth in two past wars, and cry aloud—"We will not fight for Germany, and mock our fallen comrades?”

They will not.

Until such time as a sizeable number of workers are Socialists, the people remain hydrogen-bomb dust for the modern Douglas Haigs.
Horatio.

Tuesday, October 3, 2023

The Cynicism of Capitalism: 2: Partners Wanted (1972)

From the October 1972 issue of the Socialist Standard

The company’s prospectus is a colourful document of orange, red, yellow and gold paper. Pages are perforated by cut-outs of hearts. If all this seems a bit unusual, the prospectus offering is more so, as The Guardian (17th January) revealed. It is an invitation to the West German public by Kohle Liengeschaften to purchase limited partnership in an operation currently consisting of brothels in Konstanz, a town on Germany’s Swiss border, and Kaiserslautern which is near Mannheim and a NATO base.
“The oldest profession in the world is also the solidest,” the Company says on the cover of the prospectus. And an accompanying letter to potential investors suggests that purchasing a partnership in the enterprise “is an investment worth while because Irma La Douce never has a recession.”
The profession may have been around for a long time but it is believed that the Kohle venture is the first time capital has been publicly — and legally — raised in West Germany for an enterprise of this kind. And the financial enticements are substantial since the company is guaranteeing a minimum annual return of 9 per cent. “This is a better investment than stock,” asserts Herr Kohle, founder and managing director.

In Germany prostitution is considered a social necessity. The administration generally approves the existence of bordellos on the ground that they keep prostitutes off the streets (brothel bedrooms are officially referred to as places of work). So accepted is the profession in fact that there is even a slickly-written travel guide to West German brothels and red-light districts that lists each house and its location on a city-by-city basis and rates the house according to parking facilities, prices, service and amenities.

Prostitution is not a new venture for Kohle Liengeschaften. The real estate operation currently derives its income from renting small apartments to prostitutes and from concessionaires such as the night-club operators at the Kaiserslautern facility. The company, Herr Kohle emphasises, receives no direct part of any prostitutes earnings. Herr Kohle says that there are currently forty-seven “lady tenants” at Kaiserslautern and thirty-five at Konstanz. Generally, he says, a girl stays for three or four years. How long she stays usually depends upon whether she is making money and whether she feels secure.

The brothels are advantageously situated. The Kaiserslautern operation is the only one of its kind near the NATO base, while the Konstanz operation is near a casino and just across the border from Switzerland, where prostitution is illegal. The brothels’ “lady tenants” are checked by the management for police records, among other things. "We don’t take all the girls who apply,” Herr Kohle says. “For example, we don’t want wild women.” The girls, he adds, come from all over Europe. In return, the girls sign rental contracts for an indefinite period. In addition to protection, Herr Kohle says the company also provides apartments at Kaiserslautern where the girls’ relatives can stay when they visit. He adds that the company is also considering construction of a separate facility next year at Kaiserslautern for children of the prostitutes. These features, Herr Kohle says, offer the girls some security and "take some of the harshness out of the profession”.

Herr Kohle’s “new style” operations have borne financial fruit. So far nearly £600,000 in limited partnerships has been purchased by 120 to 130 investors. The limited partnerships are sold in £5,500 units. However, to attract the small investor and to provide anonymity, several investors may each put up £550 and pool their investments to make the minimum for a partnership unit. According to its prospectus, Kohle Liengeschaften is currently offering equity capital equivalent to £1 million or about £150,000 less than the estimated market value of the two properties. By the end of 1973 the company hopes to have eight brothels in Germany and Austria. To reach this goal he says about £4.5 million will have to be raised.

The company is advertising in newspapers and is selling partnerships through investment consultants and through its own sales office, which includes some former IOS Mutual Fund salesmen. Herr Kohle is a 43-year- old entrepreneur who is also in the construction and investment business and says that he put together Kohle Liengeschaften because "there was still room for adventure” in his life. He says he is optimistic about the future of the venture. “Prostitution has weathered all the storms over the past 2,000 years without a crisis and I don’t see one now unless the human race changes,” he says.

Here we have an example of the mentality that views all things as commodities, including the female sexual capacity. The brothel in this case is the market place, the buyers desirous males. Herr Kohle need fear no change in the human race, but he has left out of his calculation the fact that a section of the human race — the working-class section — will change conditions and, as a consequence, will change the behaviour of the human race. This is a change that will remove the commodity status from society and thus eliminate all forms of prostitution — and prevent the likes of him from exploiting women.
R. Ambridge

Friday, September 22, 2023

The Passing Show: Houses (1952)

The Passing Show Column from the September 1952 issue of the Socialist Standard

Houses

We hear a lot about the housing shortage. Officially, housing is considered to be adequate when there is one room per person in a household; though anyone who has to live in a household where six persons are crammed into a six-roomed house may be excused for supposing that the official who arrived at this conclusion has never had a similar experience. But the last census shows that more than a quarter of the total population lives in households where not even this ratio is attained—where there is not even one room per each member of the household.

This is, however, only one side of the picture. There is another, and a happier, side. For like food-rationing, the housing shortage is a problem that affects one class in the country only—the poorer class, the working class. Just as the rich have never needed ration books—the restaurants and hotels have always been able to provide them with all the food they wanted without rationing—so have they never needed to put their names at the bottom of the housing lists. For the question the social system asks of the house-hunter is not "How badly off are you for accommodation? ” but “How much capital have you got?” If, like most people, you have none, you can join the housing queue; but if you have five or six thousand at your command the estate agents will fall over themselves offering you desirable residences with all mod con. Take one issue of The Times—for example, that of August 5th. Here there are a hundred houses and more offered for sale; there are none below £1,000, and only one or two below £3,000, the prices of most being from £5,000 up to £35,000. But supposing there was a worker so frugal that out of his wage of £6 or £7 a week he managed to put away £1 each and every week, even when he was out of work through illness or "redundancy"; how long would it take him to save up £5,000 for one of these desirable properties? If he began saving now, he would have his five thousand in the year 2052. This scheme, though, like all schemes for the amelioration of the working class under Capitalism, has its drawback: the snag in this case is that the worker would almost certainly be dead in 2052. 


Personal Column

While you are looking in The Times for your house, turn to the Personal Column. Here you will find houses for sale at £10,000, houses or flats to rent at £20 a week (e.g., 31.7.52). Here you will come across a number of other items which might lead you to suspect that the Labour Party’s claim to have taxed the rich out of existence is exaggerated. On July 29th there was an advert, inserted by someone who had £100,000 to spare to buy a drapery business; on July 23rd there was offered for sale a book-publishing business for the same sum. Then on July 31st a gentleman going to Scotland for a month wanted a “chauffeur-loader-handyman”; in other words, besides being able to go on holiday for a month himself, he could afford to take a servant along. And students of the rate of interest after six years’ Labour Government will be interested in the following item, which appeared on August 2nd: 
Torquay.—Sound investment offered; 12 new proprietary 4-berth caravans £4,250; net £800 yearly income guaranteed.—Write box . . .
The happy purchaser will be able to rake in £16 a week net, this being a return of nearly 19 per cent., at the expense of the twelve unfortunate families who have to pay what must be high rents for caravans.


Korea

As the war continues in Korea, the headlines still say “No progress in truce talks.” What discussions still go on are now largely taken up with arguments about how to translate “United Nations” into Korean. But each side claims that deadlock has been reached because of the intransigeant attitude of the other side in the matter of the return of the Korean and Chinese prisoners held by the so-called “United Nations” forces. It is certainly difficult for the impartial observer to decide whether these prisoners would be worse off in North Korea under the Stalinists or in South Korea under Syngman Rhee. One thing is clear: whichever part of the country finally gets them, their social position as propertyless workers will be exactly the same. North of the firing line or south of it, the social system is capitalist, and will continue to be so for as long as the present sets of rulers hold power.


The Koreans

Each world group maintains that its forces went into Korea to defend the Koreans against aggression and to uphold their liberties. But while each side poured men and arms into the country, both nominally in defence of the inhabitants, what actually happened to the Koreans? At the meeting in Toronto of the International Red Cross, it was stated that ten million people had been driven from their homes, and another million were permanently injured or had disappeared (Times, 4.8.52). And this in a country the total population of which is only nineteen million!

Woe betide any people when the power-blocs of the world decide that its liberties and independence are in danger.


Wage-freeze

At the end of July the engineering employers turned down the claim of the Confederation of Shipbuilding and Engineering Unions for a £2 a week increase in pay. Two of the reasons they gave are worthy of note. The rise in the cost of living, they said, had been partly offset by higher family allowances. This reinforces the Socialist case that family allowances are in effect merely one of the devices of the employers to keep down wages. In fact, a given sum paid as family allowances is worth more to the employers than the same sum paid in the wage-packet. For wages are paid at the same level irrespective of whether the worker is married or has any children to keep. But family allowances go solely to the man who has a sizeable family to support, and thus allay discontent among that very section of the working class who would be the hardest hit and therefore the first to complain when the cost of living rose. In this way family allowances act to keep the general wage level down.


Germany and Japan

And, secondly, the engineering employers pointed out that the industry was faced with a revival of competition from Germany and Japan. This competition, which is no doubt a very real menace to British capitalists, leads the worker only to speculate on the uselessness of war. For as soon as Germany and Japan were defeated, the ruling classes of Britain and the United States decided that the real danger to their overseas markets and sources of raw material now came from Russia and her allies. After the first world war it was fifteen years before Germany rearmed. This time it has taken only seven years, and Germany is rearming at the instance of her late enemies. Rearmament is impossible without flourishing heavy industries. So the last war, while it halted Germany’s aggrandisement for a time, and while it provided British industry with orders for a time, was only a temporary palliative. In order to prepare for a third world war, British Capitalism has now to watch the resuscitation of its German rival.


Militarism

What of the workers, who were exhorted to fight Germany in the last war under the pretence that the real fight was not so much against the German state as against the Nazis and German militarism? If this tale ever carried credence, it should do so no longer, as more and more reports come in of the Nazis and militarists, once supposed to be defeated, still in the seats of office in Germany. The Krupp family were prominent among the industrialist supporters of Hitler; on August 4th it wasreported that the Villa Hugel, the Krupp family home, was being derequisitioned, and that Herr Alfried Krupp von Bohlen und Halbach was building a new house in the grounds—this while many of the British houses destroyed by Krupp armaments are still unreplaced. On August 8th an article in The Times, remarking on the difficulties encountered by the Israeli-German conference on reparations, contained the following comment:
“Some of the Jewish delegates had themselves suffered grievously at the hands of the Nazis and before sitting down to the same table with the Germans had to submit to the difficult process of sinking their own feelings—a process which was not made easier by the fact that some of the German delegates themselves had been members of the Nazi Party or had worked in the German Foreign Office under Ribbentrop.”
In the same paper, on the same day, a letter appeared from Randolph Churchill attacking a suggestion that “no former German officer should be allowed to serve in the German contingent of the European Defence Community,” on the unusual ground that it was un-Christian. Well, perhaps; but if this proposal is un-Christian, it doesn't say much for Christianity. And finally, General Sir John Harding, one of the NATO European commanders, and next year’s Chief of the Imperial General Staff, has said, “I think that German military thinking will contribute immensely to Western defence.” Obviously, if Randolph Churchill and General Harding have anything to do with it, the old gang of German militarists will be fully employed in the expected struggle against the Russians.

So anyone who thought we were fighting against “German militarism” in the last war will have to think again.


Nationalisation

From The Times, 31.7.52:
“Russian armed guards are to-day reported to be patrolling the power station at Amstetten, Lower Austria, to prevent its being taken over by the Newag—the Lower Austria Electrical Supply Corporation — in accordance with the federal nationalisation law."
But if nationalisation is supposed to be to the advantage of the workers, why are the Stalinists denying its benefits to the Austrian workers?
Alwyn Edgar

Thursday, May 11, 2023

The Passing Show: May Day, May Day (1966)

The Passing Show Column from the May 1966 issue of the Socialist Standard

May Day, May Day

Definitions: (1) A radio distress signal, repeated at rapid intervals, for ships at sea. (2) A working class distress signal, repeated at yearly intervals. It's the second definition which concerns us. You want me to justify it? Of course it’s not the way that Labourites and other left wingers will look at it when they assemble once again this year for their processions. To them it will be a fine opportunity to make the usual protestations of “solidarity’’, “peace”, “progress" and so on, with workers abroad which, for all the fire and eloquence with which they may be delivered, will be vague, empty, and not worth the ink that's used to print them in the next day’s newspapers.

May Day demonstrations began with the passing of a resolution by the Second International Working Men’s Association in 1889 to set aside the First of May as a workers holiday, so that mass demonstrations could be made to affirm the international solidarity of labour. But solidarity for what? Workers may have avowed such solidarity in 1889, but there was precious little of it in 1914, except perhaps in the only place where nationality didn’t count—in the grave. It has been the same story many times since then to some extent or another, yet down the years the farce of the May Day ritual has been observed.

But a “distress signal” I called it. Well, take a look at some of the things they will be talking about this time. Vietnam? Wages? The Bomb? Pensions? Housing? A superficial conclusion might be that the scope of May Day has broadened since the early days, yet really all these issues can be put under the headings of War and The Poverty of Labour, both inseparable from capitalism and very distressing indeed. Taken collectively they represent a massive S.O.S., a cry for help from a working class floundering in a sea of bewilderment. But the orators who thump the tubs in Hyde Park and elsewhere are just as ignorant as the listening crowds of the way to answer the cry. There is a lifeline which is there for the grasping, but it cannot be thrown by such as the Labour and Communist Parties; it is the lifeline of Socialist knowledge. When the working class have reached out for that, in no time at all they can haul themselves high, dry and safe, to a new world.


Sing, Bing

The wheel has turned a full cycle and Mr. Geoffrey Bing, Q.C. is back in Britain again. This is the man who was once Labour MP for Hornchurch and who climbed aboard the Ghanaian bandwagon when it began to roll some years ago, becoming Dr. Nkrumah’s principal legal adviser. He wasn't the only one to support that vicious and repressive regime of course, but although the two press interviews he gave at the end of March were noteworthy for the evasiveness of his replies to questions, at least he did say something. The other individuals and organisations in this country who hailed the new state, and incidentally sneered at us for refusing it our blessing, have all been conspicuously silent.

Now, what did our ex-Labour hero have lo say when he got back home? If we accept his version at its face value, whoever was to blame for the disturbing things that went on during Nkrumah's reign, it was certainly not Mr. Bing. He was “not there” when the notorious Preventive Detention Bill was announced in the Ghana Parliament. He was “ill” at the time of Nkrumah’s removal of the Chief Justice, and so on . . . He didn’t say what he was doing in November 1963, when the Preventive Detention Act was amended to increase considerably the government’s already harsh powers. He does seem to have learned, though, how unpleasant prison can be (“the actual physical conditions of prisons in Ghana are deplorable”), and how nasty it is to be “manhandled by soldiers” (his wife had that experience). Perhaps some of the five-year detainees could have told him all about those sorts of things if they’d been let out in time. However, that’s the snag with supporting dictatorships; the boomerang sometimes hits you before you have time to get out of the way.

“I have supported ideas and not individuals,” said Mr. Bing on March 28 in a final disclaimer. Ah, yes. Thats the crux of the whole matter, and if Mr. Bing had not said it, we would have had to say it for him. indeed he has supported ideas, and always the wrong ones just like every other Labour MP. True, not every member of his former party would be a deliberate supporter of dictatorships just like that, but so long as capitalism lasts, there is always the threat of it sometime, somewhere. And no capitalist politician can ever be entirely above suspicion in that respect. Even the best of intentions are derided and destroyed in the capitalist jungle, so that the democrat of today (perhaps without realising it at the time) is often a trainee for the dictatorship of tomorrow.


This is where we came in

Take heart, Lord Robens and others Who supported nationalisation of the mines in 1947. You think you have problems with falling coal demand and competition from oil? Well, so have others: this time it’s the West German coal owners who are running into trouble and are actually being paid by their government to take pits out of production. On March 17th, The Guardian described the Bonn government’s actions as “. . . measures . . . designed to help the coal industry to adjust itself to the realities of industrial life.” Which is a nice way of saying “no profit—no production”, no matter if some people do go short of warmth this winter. Incidentally, it does illustrate one point contrary to Tory claims; and that is that the profitability of an industry is not realty affected by whether it’s nationalised. It’s the current market conditions that count.

But don’t get too shocked or surprised at the news from Germany, will you. Governments often act in this way. A few years back, the British textile industry got the treatment, and before that American agriculture. Yet there are plenty of ill clothed and ill fed people around, aren’t there? Profit is the raison d'etre as far as capitalism is concerned, not human need.


Gaspers

“Just because you caught me polishing my Rolls-Royce doesn’t mean I’m a Tory. I'll vote Labour.” (Man at Morden Hill. Guardian report 16.3.66.)

‘‘While we act to suppress the ugly activities, if anyone dies we shall not be bothered." (Indian Premier Mrs. Gandhi. 16.3.66.)

"He (the Tory) must persuade a substantial mass of the voters . . . to identify the defence of their own interests and values with the defence of privileges which are—and are likely to remain—beyond their reach." (Why I am voting Tory, by Henry Fairlie. Observer 20.3.66.)

"A Conservative speculative builder in Cambourne this weekend described Mr. Wilson as "the nearest thing we’ve had to Churchill." (Peter Jenkins, Guardian 21.3.66.)

"I have a feeling that . . . voters are getting much more shrewd.' (Leonard Beaton. Guardian 30.3.66.)

Saturday, February 4, 2023

By The Way: Canadians on Germany (1945)

The By The Way Column from the February 1945 issue of the Socialist Standard

Canadians on Germany

The Canadian Army newspaper, The Maple Leaf, has conducted a poll among Canadian troops now fighting, on post-war treatment of Germany.
“Less than ten per cent, suggested the partition of Germany, and less than ten per cent, the separation of Prussia from Germany”.—(Daily Herald, January 3rd, 1915.)
The Maple Leaf’s comment was: —
“The whole wipe-out-the-German-nation idea is knocked on the head by these men. Many even mentioned this idea and pointed out that they considered it absurd and impossible. . . . There is a general impression among these fighting men that any term of war debt in money or any partition of Germany is very likely to lead to another war !”
Everybody who does a job of work for a living knows how quickly one’s pre-conceived notions of a particular job vanish when you come up against the job itself.

Perhaps if Lord Vansittart and one or two others (Pollitt & Co., etc.) had a few weeks fighting at the front, it might alter their ideas.

* * *

More Belt Tightening

“Two of our large banks, Barclays and the District, report larger profits in 1944 than in 1943. Barclays’ net. figure has improved from £1,584,000 to £1,673.000, and the District Bank from £434,000 to £449,000. In each case the dividends remain unchanged. Barclays Bank are paying 10 per cent. on the ‘A’ and 14 per cent, on the ‘B’ and ‘C’ stocks, and the District Bank 18⅓ per cent. on the ‘A’ and ‘C’ shares and 10 per cent. on the ‘B’ shares.”(News-Chronicle, January 5th, 1945.)

“Midland Bank profits for 1944 have passed the Two million mark for the first time since 1939. The figure is £2,038,274, against £1,984,396 for 1943. Dividend is maintained at 10 per cent.

“Westminster Bank profits are up. Dividend remains 18 per cent. on the £4 shares, and 12½ per cent. on the stock.

“‘Big Five’ aggregate profits for the year are 4.1 per cent. higher—£8,004,602—a new war peak.”—(Herald, January 10th.)

“Lend to the End” (18 per cent.)

* * *

Can We (?) Afford It?

A spate of writings on this theme is now filling the columns of the public press.

The end of the European war is alleged to be in sight, though some of the optimists (as usual) seem to be equipped with conveniently powerful telescopes.

We are approaching the period when the rosy promises of the early days—”jobs, homes, security,” etc.—made to induce war-enthusiasm, are beginning to fall due.

It’s the “morning after the night before.” The first ominous grey shadows of a frigid winter’s morning to dispel the romantic illusions of Churchillian radio rhetoric.

Members of Parliament, professors and “experts” are vieing in the attempt to calm the people down. “Don’t expect too much !” The things we want have got to be paid for! “There isn’t the money!” “How can we do it? Can we afford it? ” is their monotonous refrain.

Imposing arrays of figures are cited showing how poor WE (?) really are.

“By a great act of faith, we have mortgaged our, as yet, non-existent national income with colossal charges for education and social services. . . . Two questions at once arise. Can we stand this staggering expenditure? Will we stand it?” asks Captain Gammans, Tory M.P. for Hornsey.— (Evening News, December 27th, 1944.)

The “staggering expenditure” referred to is Two thousand millions a year. The current expenditure for 1944, according to Capt. Gammans himself, is Three thousand millions.

The plain simple man might well ask, “If we can stand it in 1944, why not 1947 or 8?”

But, no! it’s not so simple. You see, war-time is “abnormal.’
“What are the things on which we have set our hearts? They are social security, a greatly improved medical service, an educational system which will enable a poor child to enjoy the same advantages as a rich one. family allowances, good houses for everyone at rents they can afford, and on top of all these, and other things I have not mentioned, we are to achieve a rising standard of living”.—(B. Seebohm Rowntree,  Evening Standard, November 30th.)

“Economists tell us that to pay for them we must increase our exports by 50 per cent, above the pre-war figure, but we can only do this if we can sell our goods in the world markets at competitive prices.”— (B. Seebohm Rowntree.)

“The first is that we succeed in restoring a sufficient volume of export trade to provide for the essential imports, without which we do not eat or remain an industrial power at all. The second is that our industry and agriculture are efficient”—(Capt. Gammans.)
Our readers will see at once that we have two bright new boys for the “Export or Bust” chorus, now being produced at colossal expense, in inglorious Technicolour, by the British capitalist class.

They are bright new boys—both of them—because they have thought up one or two new ghost stories to curdle the blood of the British working man.

First, Mr. Rowntree (we’re glad his cocoa is a bit more nourishing than his arguments) : —
“Let us make no mistake. We cannot get these things merely by a redistribution of existing wealth; a little may be possibly got that way, but by far the greater part of the cost involved, which may run into hundreds of millions of pounds a year, can only be met bv increasing the total amount of wealth produced.”
Now Capt. Gammans : —
“If we were to confiscate every income of over £1,000 a year and distribute it among the rest of the community, each person in this country would benefit to the extent of only about 3s. 9d. a week.”
This is a perfectly simple straightforward proposition as old as the hills. It will be found in “Value, Price and Profit,” by Marx, published seventy years ago. It was the argument of Citizen Weston. He said, as Marx graphically put it, that “what prevented working men getting more out of the bowl (of soup) was its smallness.” Marx called this argument “rather spoony.” Interestingly enough, F. A. Ridley in the New Leader and Michael Foot in the Daily Herald say the same thing.

Ridley is supposed to be writing about Socialism and Equality. He actually writes: “Under Socialism everyone would get exactly the same.” (New Leader, September 2nd, 1944.) This is nonsense. Ridley goes on : —
“The extreme left—anarchists, S.P.G.B., etc.—will demand the application of the classic formula, ‘From each according to his ability, to each according to his needs.’ . . . ‘To each according to his needs’ is an Utopian formula … it outstrips the present capacity of society.”
In other words, workers go short because there’s not enough. By the way, the S.P.G.B. is not the “left,” extreme or otherwise, but THE Socialist Party.

Lastly, Michael Foot (Daily Herald, January 9, 1945) :
“Now the subtle point about all this propaganda is that part of it is true. It is true that many British industries are hopelessly inefficient. It is true that an increase in production per man hour could, under certain other conditions, greatly increase the wealth of the community.”
So, according to Ridley, industry has not the “capacity”; to Foot, it is “inefficient.”

The bowl is too small. Seventy years ago Marx said that it was not the “narrowness of the bowl nor the scantiness of its contents” (“Value, Price and Profit,” Chap. II.), but the smallness of their spoons which prevented working men getting a larger portion.

The Government has now published figures of war-time production. The increase in production of wealth, despite war difficulties, is simply staggering. Despite the fact that some things (aeroplanes, e.g.) are produced in quantities for which no pre-war criterion exists—it is not unfair to say that, generally speaking, production has more than doubled, while workers’ consumption has been more than halved. (“Statistics relating to the War Effort of the United Kingdom,” Stationery Office.) It has never been the Socialist case that a redistribution of existing wealth would solve the poverty problem under capitalism.

Reference to our pamphlet “Socialism” (page 9) shows that:—
“Even with the present wasteful use of the productive forces there is enough wealth produced to raise the standard of living of the great mass of the population. Mr. Colin Clark, M.A., in his recent book, “The National Income, 1924-31,” estimates that if the total national income were equally distributed, every family mould have received about £349 during 1929, £311 during 1930, and £298 during 1931. These amounts are equal to about £6 14s. a week, £6 11s. a week, and £5 13s. a week for the years in question. In point of fact, they got about half this sum.”
Now, with production more than doubled, despite the absence’ of millions of the most fit, we’re told we are not producing enough to go round.
“The great inequality of income is, moreover, only one aspect of the poverty problem. Capitalism not only bestows on the rich a large share of the wealth produced, but—even more important—it keeps the total amount of wealth produced far below the possible total.”— (“Socialism,” page 10.)
This is the answer to Capt. Gammans (Tory), Seebohm Rowntree (Liberal), Michael Foot (Labour), F. A. Ridley (I.L.P.).

The abolition of capitalist ownership of the means of wealth production will remove the “chocks” from under the landing wheels of the productive system.

What has happened during this war, where the amazing capacity of a modern working class has been demonstrated, due to temporary, insatiable military demand, is a slight indication of what that working class can do, relieved of exploitation, and with the end of futile occupations like advertising, and fighting for and waiting on parasites.

We Socialists are not to be frightened by horror stories about whether WE can afford it.

We shall not be led up the garden path of renewed fierce competition and rivalry to export more than our American and German brothers, leading to a new war.

To-day we can make our bowl of soup as large as we like—once we’ve knocked the shovels out of the capitalists’ hands by intelligent political action—and issued everybody with a spoon.
Horatio.

Thursday, September 15, 2022

Letters: Who are the cowards? (2000)

Letters to the Editors from the November 2000 issue of the Socialist Standard

Who are the cowards?

Dear Editors,

There could hardly be a better symbol for how governments treat their mass public, than the 306 “cowards”, executed by British authorities during the First World War. Nothing has changed, either. There is no essential difference between the military, flexing its muscles, or the Thatcherite revolution throwing people out into the street, or even a Blairite dogma to “modernise”, but actually preparing everyone and every aspect of life to be merely the plaything of global capitalism. Then, if war is an extension of diplomacy, and business is a substitute for war, all this becomes more understandable, but not defensible, given the catastrophic effects on society’s weaker members.

The incompetent Earl Haig treated his troops as cannon fodder; Thatcher said there is no such thing as society; and Blair’s modernity will expose the unwary to a life of being only a marketing statistic. All these three were, and are, immune to the shock imposed on others less able to defend themselves, by pursuing their social revolutions. They also maintain their advantage, through an elite status. Hence, “deserters”, the dispossessed and disabled, or the incapacitated, are treated by their elected leaders as inferior, and therefore, fair game. These people are losers, and consequently seen by the elite as an embarrassment to their inflated opinion of themselves—and here we have the underlying reason for New Labour’s attitude to voters in wheelchairs: punish them.
Jeffrey Wheeler, 
Nuneaton, Warwicks


The Morgenthau Plan

Dear Editors,

The article “Why war is no accident”, (August Socialist Standard) claimed that “on the eve of allied victory the leaders of the victorious countries accepted a plan drawn up by . . . Morgenthau to de-industrialise Germany” Not so. The Quebec Agreement between Churchill and Roosevelt on proposals to de-industrialise Germany was “initialled” (i.e. agreed to informally) by them on 15 September 1944. Neither Churchill nor Roosevelt had with them their top advisors and there were no representatives present from the Soviet Union, the third of the wartime alliance.

British Foreign Secretary Anthony Eden and American Secretary of State Cordell Hull were “horrified” by the proposals. Eden recalls in his Memoirs “I did not like the plan, nor was I convinced that it was to our national advantage.” Hull rejected it as being “a plan of blind vengeance.” The American Secretary of War Henry Stimson also strongly opposed it; it was “just fighting brutality with brutality.”

Historians have variously characterised the Morgenthau Plan as being “still-born”, “abandoned”, “pigeon-holed”, “did not…become official policy” and was “never put into effect.”

It was realised that a weak Germany with high unemployment brought about by de-industrialisation would be prey to political extremism (as it had been in the 1920s and 1930s) and liable to fall into the Soviet camp. American policy-makers planned for an “open” Europe of free trade which would be a market for US produce.

It has been suggested that Churchill had been reluctant to go along with the Plan but did so because he was at the time in negotiations with Morgenthau over post-war Lend-Lease arrangements. Britain had been offered $6.5 billion post-war credit and he did not want the promise jeopardised. His claimed that the Morgenthau Plan would leave Britain “chained to a dead body”. Although a de-industrialised Germany would remove an economic rival it would also entail the loss of a lucrative market for industrial goods produced in Britain.

A Germany integrated into a “United States of Europe” would be economically more efficient which would in turn (in the view of the US Department of State Division of Economic Studies at the time) give higher levels of real incomes leading to an increased demand “for imports of raw materials, food, and manufactured articles, of which the United States would be the primary beneficiaries.” (In 1937 Europe had been the destination for 41 per cent US exports and the source of 27 per cent of its imports).

It was these arguments that eventually won the day. Germany was not subject to “ongoing economic attacks” as the launching of the European Recovery Programme (the “Marshall Plan”) in mid-1947 demonstrates.

By 1946 there were an estimated 14 million “displaced persons” (i.e. refugees) in Europe—10 million in Germany (7 million in the Western Zones.) Deaths “may have been anything between 2 and 3 million” according to Hugh Thomas (Armed Truce). In their two volume study A History of West Germany D.L. Bark and D. R. Gress estimate that two million Germans died as a result of the immediate post-war disruptions. It is not clear on what authority the author of the article bases his claim of 5 million deaths and on what evidence it rests.

John E. Farquharson (in The Western Allies and the Politics of Food.) shows that the Allied system of food rationing was a continuation of the German one already in place. Ration allowances were supplemented by theft, forgery of ration documents, barter, recourse to the black market, self supply (e.g. allotments), and additional allowances for those employed in heavy work. In one area of occupied Germany the number of ration cards presented in one accounting period was twice the number officially issued. Less than a quarter of the population of the Western Zones were “normal consumers”, the majority claimed supplements of one kind or another.

This not to say that hunger and malnutrition did not occur, it did. However the “hard” figures represented by official ration issues for calories per day do not represent the true state of affairs. In the circumstances the Western Allies did what they could and it is incorrect to state that the Allies imposed blockade and starvation upon the defeated German nation. We do not need to exaggerate to make out a Socialist case against the pernicious nature of capitalism and its wars.
Gwynn Thomas, 
Colchester, Essex

Reply: 
Thanks for your interesting and useful clarification. The article’s main point was that blockading a rival state is a policy capitalist states are prepared to consider (as the existence of the Morgenthau Plan shows) and to implement (today as in Iraq) regardless of the consequences on the civilian population. And, as your letter brings out well, again as in Iraq, those capitalist politicians who oppose this option do so because they are more interested in export prospects than in the plight of the population. The source of the 5 million figure was the book Crimes and Mercies by James Baque, mentioned in the article.
Editors.


How I became a socialist

Dear Editors,

In the beginning, way back in the 1960s, I became, in my late teens, a so-called “hippie”. The hippies were a more progressive, creative and imaginative development from the beatniks in the USA—who were basically scruffy, layabouts, poets and artists. I remained in the hippie phase for about eight years, until the early 70s, when I changed my outlook gradually and became, so to speak, politically “radicalised”. I began to support the left wing, and joined CND, voting Labour, attending meetings, and taking part in protests and demonstrations.

By 1979 I grew deeply disillusioned with Labour and rejected its policies and ideology: I was then far-left in outlook. Almost a Trotskyite, in fact. It seemed to me that only a violent mass movement would change society, and that “direct action”, including the general strike and armed insurrection, could and would overthrow the state and ruling class.

This barricades mentality persisted in my mind until the mid-1980s, when I began to study the various “schools” or styles of anarchism. Reading the works of Peter Kropotkin, Michael Bakunin, Errico Malatesta, Emma Goldman, etc, etc. I became a militant anarchist. I was very determined and began fighting the police; even after several jail terms (in which I fought the screws), I persisted and persevered in anarchism. But by 1986, grave doubts and misgivings surfaced; I discovered serious flaws and errors in anarchist theory and practice. My conclusion was that it actually leads nowhere and achieves nothing but more bloodshed and frustration.

So, early in 1986, I abandoned anarchism altogether. A few months later my attention was drawn to some examples of Socialist Party literature. By chance, I came across a few issues of the Socialist Standard. After reading carefully and reflecting on it, I accepted the concept of socialism. Then I obtained some of the works of Karl Marx from a public library—in particular, the Communist Manifesto of 1848.

This really transformed my whole outlook on history, society and politics. Marx profoundly impressed and inspired me in a way no-one and nothing ever had before. Thus, acquiring a Marxist understanding and analysis of capitalism and of how to get rid of it, I became a scientific socialist by the spring of 1986: after which I contacted the Socialist Party, and subsequently joined.

The one thing about the Socialist Party that persuaded me, above all else, to join, was that all its literature is strictly honest, truthful and accurate; also that the party is fully and truly democratic in its organisation and activities. This meant a lot to me: I realised that here was one political party which not only had genuine principles but stuck to them through thick and thin without any compromise or “sell-out”.

So that is how and why I became a socialist, fourteen years ago. I lapsed from membership some time ago—but that is solely due to chronic, incurable disabling illness and my personal circumstances, which make it impossible for me to travel around and attend its debates and meetings. The only sort of contribution I can make is by writing articles and collecting the party’s audio tapes. I also argue the case for socialism with friends and acquaintances—and, occasionally, with strangers I meet in pubs, cafés, etc. (I’ve made a lot of enemies this way!)

Through the years, I have amassed a great deal of vital information on many subjects—including political history, religion, ecology and conservation, anthropology, the history of the socialist movement, and so on—and have written a book on the origins and development of capitalism, comparing it with the only sane alternative, World Socialism. My final draft typescript of this book is now in the possession of the Socialist Party’s archivists. I hope some day that it will be published.

In conclusion, I want to express my gratitude to the Socialist Party for providing me with the understanding and insight I sorely lacked before; and to Karl Marx too, of course: we all owe him a great debt for the tremendous work he did and his great achievements. We can’t all be like Marx, but at least some of us might approach his level of intellect if we make the necessary effort. Marxian knowledge can increase intelligence, I have found: and it produces the “quantum jump” in consciousness among workers everywhere which makes socialism possible. Speed the day!
David E. Finlay, 
Brighton


Labour history

Dear Editors,

I am writing on behalf of the North West Labour History Group. As part of our work in popularising knowledge of labour history we publish an annual journal and I would like to appeal to your readers for contributions to two forthcoming issues, one on the 1960s to be published in 2001 and one on the 1970s to be published in 2002.

We believe the time has come to examine the radical social, political and labour movement of those decades in the North West. We invite anybody interested in writing an article to contact us in the first instance at: North West Labour History Group c/o Working Class Movement Library, 51 Crescent, Salford M5 4WX.
Michael Herbert, 
North West Labour History Group

Saturday, August 13, 2022

Finance and Industry: Business Men in Russia (1960)

The Finance and Industry column from the August 1960 issue of the Socialist Standard

Business Men in Russia

A team of business men from the Institute of Directors visited Russia to meet the heads of Russian industry, “to get an overall picture of top Russian management policy in industry and commerce.” An interview with one of the team, Mr. Geoffrey Kitchen, Chairman of the Pearl Assurance Co., by Mr. Alexander Thomson, City Editor of the Evening Standard, was published under the heading, “This Capitalist was so impressed by Russia” (Evening Standard, 8/7/60).

When we read what so impressed him we may surmise that he is rather naive. 

He tells us:
There are no strikes. But not because they are forbidden, as we sometimes imagine. The reason is that everybody in Russia realises that strikes do more harm than good.
Mr. Kitchen accepts that this is true because his opposite numbers in Russia told him so, and, as he says, “all doors were thrown open to us. We were given every facility to ask questions. There were no barriers anywhere.” But are we to take this literally? Did Mr. Kitchen actually ask his questions of Russian workers themselves, in conditions safeguarding them against possible consequences? Or did he ask only the Russian bosses (rather like being assured by the governor of a prison that all the prisoners are happy!)

Did it not seem odd to Mr. Kitchen that in all the countries of the world where workers can organise and strike with comparative impunity they do so, yet the tens of millions of wage earners in Russia decide, unanimously, not to? And note the implied criticism of British, American and all other workers, all except those in Russia: every one of the latter realises that strikes are no good, but the rest of us just haven't enough sense to see it. Perhaps Mr. Kitchen hopes that British workers who have the habit of going on strike against the advice of the managements will be a little more co-operative when reminded of the example set by workers in Russia.

Mr. Kitchen was asked by Thomson to sum up his impressions of Russia:
Both our systems seem to be working towards the same end. We are approaching it from different directions. But we are both aiming at the prosperity and goodwill of our people.
Does it make Mr. Kitchen sad to see that while every Russian worker gratefully responds to the kindness and good intentions of his bosses, workers here still harbour unjust suspicions that their bosses have something else in view besides the “prosperity” of those they employ?


No Stability for Profits

In his last speech as Chancellor of the Exchequer, Mr. Heathcoat Amory, on 11th July, told the House of Commons that among his aims during his 2½ years of office had been to maintain full employment and price stability, and he was worried concerning the possibility that rising wages might endanger the stability achieved. One thing he did not achieve was stability of profits. According to an analysis of industrial company profits made by Exchange Telegraph Co. and reported in the Evening Standard (8/7/60) industrial profits of 2,387 companies were about 20 per cent. higher in six months of 1960 than in the first half of 1959. If the companies reporting on the rest of the year show a similar increase, 1960 will be a record year for shareholders since the end of the war. Though profits, with some setbacks, have been rising for a dozen years on no previous occasion has there been a jump of anything like 20 per cent. Between 1958 and 1959 the increase was about 6 per cent.


German Success Story

In Western Germany there are now almost no unemployed, though for years there were rarely fewer than a million. It is an interesting example of the way capitalism “proves” that there are first too many people and then too few. When trade was stagnant, work could not be found and many people in Germany deplored the inflow of refugees from Russian-controlled Eastern Germany. Then production and trade expanded, the unemployed were absorbed and hundreds of thousands of workers are now being brought in from neighbouring countries to fill the vacant jobs.

There are other instructive things to note about Western Germany. In Great Britain employers and politicians (including the retiring Chancellor of the Exchequer, Heathcoat Amory) warn us of the importance of boosting exports, of keeping up the exchange value of the £ and of piling up a larger gold and dollar reserve. They tell us that if these things are done all will be well, but if we fail to do them we shall be in trouble. Claims for a reduction of working hours to 40, and claims for higher wages are resisted on the ground that such measures would weaken the export position of the £ and be generally dangerous.

On occasion the employers have quoted Germany as a land in which the workers work harder and longer and complain less. Let us then look at Germany: truly a capital success story. Exports booming, the mark strong and getting stronger, a gold reserve twice as large as that in Britain and production increasing much faster. Surely in such a country the government and the employers must be coming forward to reward their diligent and faithful workers, showering higher wages on them and begging them to work less hard and take more leisure?

But not at all. The German Economics Minister, Professor Erhard, talks just like the British political and business heads. The following is from The Times (4/7/60), reporting Erhard:
He gave warning against the union's demand for a 40-hour working week, and wondered if a slump was necessary to bring people to their senses. He criticized employers for passing on increased costs to the consumer: an annual price increase of 3 per cent. was no bagatelle, he said, if it continued year after year.

Automation was not the universal panacea. German workmanship was not what it was, and craftsmanship had an important role to play if quality was to be maintained.

Dr. Amory’s "Cures ”

In our issue for March of this year reference was made to the claim that Heathcoat Amory’s 1959 budget was successful in curing the growing industrial and trade stagnation; and to the retort by Mr. Enoch Powell that the government’s budget policy had nothing whatever to do with it because in the normal fashion of trade contraction and expansion recovery was already taking place before the budget could have had any effect. As he put it, “the patient was up and playing golf before he could swallow the medicine.”

Now we are presented with the reverse side of the same problem. After expansion had been going on for some time, and seemingly in a manner regarded by the Chancellor as satisfactory—after all the patient was supposed to have been restored to health and vigour by medicine prescribed by him—notes of alarm were heard again and the patient’s incipient fever was to be damped down by the credit restrictions and then by the higher bank rate. But if the evidence shows that the patient was on the upgrade before taking the medicine in 1959 it now seems that the fever was already passing away before the new medicine of 1960. For the idea of the credit squeeze was to lessen the hire purchase buying of consumer goods, but many critics of the Chancellor’s action are arguing that sales were already falling off before the squeeze was imposed so the squeeze was unnecessary. A Guardian editorial (4/7/60) said:
The past week has brought fresh support for those who questioned the need for the Chancellor's latest round of credit restrictions. The Board of Trade’s admission that hire purchase sales in May dropped below last year’s level simply confirms the view, expressed by many manufacturers and traders, that the boom in demand for consumer durable goods had already slackened off. Reports continue to come in of growing stocks of household appliances in the hands of retailers; and Vauxhall has announced the ending of overtime on its car assembly lines. Since the pressure of the consumer boom is letting up just at the time when capital investment by industry is beginning to rise sharply, the Government ought to have been congratulating itself on achieving a desirable balance in the economy, rather than imposing new restrictions.
Mr. Andrew Shonfield, Economic Editor of the Observer, wrote (3/7/60) in similar vein: “There is now firm evidence of the official figures showing that production of consumer goods by the engineering industries actually turned down in the first quarter of the  year—well before the Budget.”

The Economist (2/7/60) took the line that the Chancellor had become alarmed about the prospect of demands for higher wages being met halfway by employers who hoped to be able to recoup themselves by charging higher prices, and that the credit restrictions were imposed by Amory in the desire to discourage that frame of mind and make wage increases more difficult. The Economist thinks that “once again, wages are becoming a key issue in British economic policy ”—as if there was ever a time when they weren’t.
Edgar Hardcastle

Saturday, April 24, 2021

Shall Germany Re-Arm? (1954)

From the April 1954 issue of the Socialist Standard

The old tragic farce “Shall Germany Re-arm?” that occupied the European stage between the end of World War I and the emergence of Hitlerite Germany, has been revived and is playing to full houses wherever the world's statesmen gather together to discuss peace and war. The revived version is much the same as the old one but some of the actors are playing different roles. In the nineteen-twenties, with Russia out of the running, the near-disarmament of Germany under the Versailles Peace Treaty brought as its consequence the threat of Europe being dominated by French capitalism and its Polish and other allies. So the British and American capitalists had an interest in helping Germany to recover and in this, though for different reasons, they were pursuing the same policy as Russia. The Russian Government took the view that a stronger Germany would curb the power of all the Western capitalist groups. So as late as the end of October, 1939, when Hitlerite Germany was armed to the teeth and was actually at war, Mr. Molotov, who is now furiously denouncing the re-armament of Germany, was still telling the world what a good thing it was that Germany was strong, because “we have always held that a strong Germany is an indispensable condition for durable peace in Europe.” He was to discover not long afterwards that the Germany whose re-armament the Russian government had encouraged was to turn those arms against Russia as she had already turned them against Britain and France.

But after World War II Russia faces the western powers with huge armed forces equalled only by those of the U.S.A. So now it is not French expansionism that the other Powers fear. They fear Russia and, despite the obvious risks, they prefer to see Germany re-armed to offset the Russian threat.

The decision is a difficult one for them all since they can only guess whether German capitalism will in the long run seek to use the West to squeeze the East, or use the East to squeeze the West.

All the West European political parties including the Tories are worried about the problem but above all the British Labour Party. As long ago as 1950 the Labour Government's Foreign Secretary, the late Ernest Bevin, accepted in principle the re-armament of Germany but he did so against the wishes of many Labour M.P.s and their supporters. When the question was voted on in the Parliamentary Labour Party in February, 1954, the Executive secured the passage of its resolution favouring German unity and re-armament and German assistance in the defence of Western Europe, by only 113 votes to 104 (Daily Herald 25/2/54). The justification urged for this policy is “fear of Russia,” just as, 30 years ago, an earlier Labour Party Executive was using “fear of France” as a reason why the Labour Party should support armaments.

Some of the present spokesmen of the Labour Party have evidently been studying the arguments current at the time of the old controversy. In the nineteen-twenties Mr. Lloyd George used to talk about general disarmament and indeed it was the announced intention of pursuing such a policy that was used by him and others as justification for keeping Germany with strictly limited armed forces. Now it is Mr. Aneurin Bevan who says that “we should be seriously discussing the possibility of universal disarmament” as an alternative to uniting and defending Western Europe (Sunday Despatch 14/3/54). It is as unrealistic now as it was then.

In those days disarmament was to come through the League of Nations as now through the United Nations; though already the manifest failure of the latter has led Mr. Attlee to say in a speech to the Oxford University Labour Cub: “I think that in our Commonwealth we have something which is really better than the United Nations and something to set an example on how the United Nations should work” (Daily Telegraph 23/2/52). It is odd to recall now what were the explanations then given for the failure of the League. The most plausible line was that if only U.S.A. and Russia would join the League and if only the League bad power to enforce its decisions all would be well.

Now indeed U.S.A. and Russia are members of United Nations but each pursues a policy of building up huge armaments on the ground that the other is a war maker. And in Korea, where a large scale “United Nations” war was fought, these two Powers were backing the rival armies.

An argument used by Labour Party and other opponents of German re-armament is that the Germans have caused two world wars, are a militarist nation and cannot be trusted. In other words that the Germans are an “inferior race” by comparison with all or some of the others.

In the controversy each national group can state what, in its own estimation, is an unanswerable case. As each group maintains that its own armaments are purely defensive, and as each can provide ample evidence of fiendish barbarities used by other Powers in war, this is easy. All war is bestial and no nation has a record much less horrifying than any other. The whole argumentation is bedevilled by a blank inability to recognise why capitalism needs arms and why wars occur. The capitalist-minded patriots of all countries denounce the methods used by the others but fail to recognise that they are pursuing the same objectives in the same way. They all seek to control sources of raw materials, seek to invade new markets, and seek strategic bases to protect their territories and trade routes. But each and every one regards its own activities as necessary, lawful and legitimate, and for those who accept capitalism and seek to perpetuate it so they all are. Given a capitalist world Russian attempts to dominate the Dardanelles or seize North Persian oil (as in 1946) have just as much necessity and legitimacy as the British hold on Suez or Abadan or the American control of Panama or oil resources in the Middle East. It is the law of the jungle.

Not recognising this, those who argue superficially about war being caused by American, Russian, British or German aims of world domination allow themselves to be deluded into the belief that aggression is an inherent characteristic of one particular nation or is the outcome of some ideology. It is only necessary to glance at the present trouble spots of the world to see how remote this is from the truth. Is it “ideology” that sets Egyptian capitalism against British at Suez. Russian against Turkish in the Dardanelles, French against Indonesian, Argentine against British over control of territories in the Antarctic, America against Russia in Europe, the Pacific and elsewhere, Israel against the Arab States, India against Pakistan over Kashmir, British against African in Kenya? The list could be enormously extended and the explanation in all cases is that capitalism is by its nature a competitive, expansionist system breeding rivalry, hatred and war. There is no way out of this terrifying threat of continuing wars except by abolishing capitalism and establishing world socialism in its place.

Monday, April 27, 2020

Letter: "The poisoning of the Rhine" (1987)

Letter to the Editors from the April 1987 issue of the Socialist Standard

Comrades.

Carl Pinel does not, unfortunately, quote the source of his figure of 30 tons of poisonous chemicals "accidentally" released into the Rhine. ("The poisoning of the Rhine", Socialist Standard February 1987 p.265).

According to the New Scientist (13 November 1986) Sandoz, the superpolluters involved, admitted the amount to be 1,300 tonnes — including 934 tonnes of pesticides and 12 tonnes of compounds containing mercury.

But this is merely one incident, spectacular in itself, in a steady routine of pollution in the name of profit. In the same month BASF leaked 2,000kg of herbicide from rusted pipes; Giba-Geigy spilled chemicals into the Rhine on the day prior to the Sandoz incident, didn't tell anyone, and were only discovered because the journey of the Sandoz chemicals was being monitored; Hoffman LaRoche leaked toxic liquid methyl vinylketone from its Sisein (Switzerland) plant; the German state of Hesse claimed that the chemical giant Hoechst spilled 50kg of chlorobenzol into the Main, a tributary of the Rhine on November 22.

Clearly the Rhine is an open sewer. By the time it reaches the sea its daily load of pollutants is a staggering 60,000 tons (40,000 tons of salts. 16,000 tons of sulphate, over 200 tons of iron, and thousands of other poisonous products). At the height of public concern over the pollution of the environment it was reported that the city of Basle (home of the Swiss chemical industry) dumped its sewage direct into the Rhine, and that many other cities downstream only had mechanical sewage works. Prior to European Conservation Year (1970) Hoechst were spending a mere £5m per year on anti-pollution measures compared to £30m paid in dividends. Bayer's dividend for one year equalled what they spent against pollution over 15 years. (Figures quoted in the "European Business Magazine" Vision, October 1971.)

The argument that capitalism pollutes because of its need for profitable trade, and will continue to do so, was underlined at the time by the following comment from Vision (December 1971)
  . . . complicating the pollution control issue are the likely repercussions on international trade. It is difficult enough to ensure uniform application of anti-pollution standards (and hence equal sharing of costs) within national frontiers; how much more difficult it will be internationally once a number of major trading nations have set up differing standards.
  . . . German firms facing tough legislation governing pollution by their products — as well as in production processes — thus claim their competitive position is being unfairly prejudiced by costs not imposed on their foreign competitors . . . Bayer's annual report for 1970 claims that such costs are already reducing the competitiveness of German industry.
  . . . pollution control means eating into profits. And business is about profits . . . Firms can only afford and will only be willing to act against pollution so long as their competition does the same.
Fifteen years later the problem remains — and the solution is still socialism.
Fraternally
Gwynn Thomas,
Welling. Kent


Reply:
The source of the figure of 30 tons was the Independent 10 November 1986.
Editors