Fallacies of Federal Union. (1940)

From the March 1940 issue of the Socialist Standard

A Warning to the Workers

After the war (1914—18), many members of the working class wasted much of their time and energy in supporting the League of Nations. They thought that, at last, a way to end war had been devised. The socialist warning went unheeded. We pointed out that the League of Nations was bound to fail, since it did not put an end to the real causes of war: —the intense struggle for world trade which capitalism forces upon rival sections of the capitalist class. We urged then, as we do now, that the only way to peace is to get rid of these rivalries which are inherent in capitalism, by abolishing capitalism itself, and by establishing a new social order—socialism.

Again we issue a warning to our fellow workers, for again there is a possibility of their being led up a blind alley in another futile quest for permanent peace. This time the blind alley is FEDERAL UNION. Like the League of Nations, it will, if supported, bring to the workers bitter disillusionment and will direct them away from the path they must finally tread—the path of uncompromising opposition to capitalism.

Federal Union—A Dangerous Utopia

According to the advocates of Federal Union, “the essential root of our trouble is nationalism in the hearts of ordinary men reduced to a political system which constantly inflames that nationalism.” (Mr. Lionel Curtis in an address given at Oxford, September 23rd, 1939.) This “excessive nationalism,” Federalists say, must be curbed by a federation of states. They urge that at first the democratic states ought to federate. Such a federation, they claim, would bring peace, since any attack against it would from the outset be sure of failure. (Clarence K. Streit’s “Federal Union,” p. 25.) Later, it is thought, other states would join, until finally the federation would be world-wide.

The whole idea is Utopian, and, from the working class point of view, dangerous.

It is Utopian because in capitalist society a world federation of states has not the slightest chance of ever being made to function harmoniously.

It is dangerous for the working class because it will not only waste their time but may even lead to greater and greater wars.

Why Federal Union Will Not Work

In his book, “The Case for Federal Union,” W. B. Curry writes: — “The World is not politically or psychologically a society, but economically and technically it is already one community ” (p. 23). This is typical of the way the supporters of Federal Union refuse to get to the bottom of things. Moreover, this is one of the false premises upon which their plan is based : they argue that since the world is economically one unit, logically we ought to have one political unit.

Unfortunately for the federalists, THE WORLD IS NOT ECONOMICALLY ONE COMMUNITY.

It is true that to an ever-increasing extent the different parts of the world are becoming more and more dependent on each other for vital necessities of life. It is true that capitalism, as it spreads to every corner of the globe, breaks down national barriers and creates, or tends to create, similar conditions the world over. Still, capitalism itself, though in some respects a uniting force, prevents the world from being or becoming “economically one community.” It prevents this in the following ways:—

First, in capitalist society, there are TWO CLASSES, and between these two classes a persistent struggle and clash of interests. The capitalist class owns the means of production and distribution and employs the working class which, being propertyless, must work for the advantage of the owners, i.e., to produce profits for them. Over the questions of wages and working conditions, the capitalists and workers are in constant conflict. This class struggle, evident within every capitalist state, is ignored or dismissed as unimportant by the federalists. However, so long as it continues to exist the world cannot possibly become one community.

Furthermore, in capitalist society owing to the existence of private property and the consequent production of goods SOLELY for profit, the world is one big jumble of conflicting capitalist interests. 

Wars are the result of these conflicting interests.

Capitalism is by nature competitive and monopolistic. Different sections of the capitalist class—which to prosper must make profits—compete with each other to obtain monopolies of markets, monopolies of raw materials and monopolies of fields for investments. It is partly for the purpose of protecting or furthering these capitalist interests that the gigantic armed forces of the states exist; and the great powers annex territories, not so that the vanquished natives may benefit, but so that the interests of their capitalists can be developed without interference.

If, as often happens, the flow of profits going to capitalists is interfered with by competing sections of the capitalist class, quarrels break out, and, when other means fail, it is by force that differences are settled.

Developing capitalism has led to the growth of international trusts and rings, but this has not diminished the rivalries between groups of capitalists. On the contrary, it has led to an intensification of those rivalries, for now capitalists of different nationalities work together in exploiting spheres of influence in order that a firmer monopoly may be obtained to the disadvantage of rival groups.

Advocates of Federal Union would do well to remember also that, as time goes on, the competition for markets becomes keener and keener. In recent years, countries which were formerly markets for certain goods are now themselves producing the same goods in such abundance that they too are exporting them, trying to find markets. In recent decades, we have seen the growth of capitalism in Japan, Turkey, and a score of smaller states.

Therefore, this is the position. Though more and more goods are produced for sale, the markets for some of them grow less and less. The result is obvious : a greater struggle between rival sections of the capitalist class for markets where profits can be realised.

It is this commercial rivalry which causes states to set up tariff barriers, which inspires the “We must export or die” pleas of the German and British ministers.

In short, markets are necessary for the well-being and prosperity of any section of the capitalist class. This being so, it is evident that the federalists will have an enormous task to persuade the “have” powers to place non-self-governing dependencies under the control of an international commission of ALL states. (See “The Case for Federal Union,” p. 191.)

The capitalist class and their representatives realise how dependent they are on markets. Marshal Foch, during the Great War, admitted that the struggle for markets was an important cause of war. He said : —

“What do we all seek ? New outlets for an ever-increasing- commerce and for industries which, producing far more than they can consume or sell, are constantly hampered by an increasing competition. And then ? Why ! New areas for trade are cleared by cannon shot.”— (United Service Magazine, December, 1918.)

The late Lord Brentford, too, who was the Conservative Home Secretary, 1924-28, once stated in very definite terms that for markets capitalist states are prepared to go to war. During a speech, he said :—

“We did not conquer India for the benefit of the Indians. I know it is said at missionary meetings that we conquered India to raise the level of the Indians. That is cant. We conquered India as the outlet for the goods of Great Britain. We conquered India by the sword, and by the sword we shall hold it.”

Mr. Curry, in his “Case for Federal Union,” mentions the rivalry between states caused by conflicting capitalist interests. We suggest to him that he give more attention to this; he will then talk less glibly about the world being “economically one community” and about “substituting international government for international anarchy.”

The Blind Alley

When production is carried on for the SOLE PURPOSE OF PROFITS as it is to-day, powers which hold colonies or have spheres of influence where raw materials are available or where there are valuable markets for products, will be very loath to give up their monopolies over them. After all, to do so would perhaps mean a serious reduction in the profits going to the sections of the capitalist class they represent and the enrichment of rival groups.

Capitalism FORCES this “cut-throat competition,” this struggle for spheres of influence upon the different sections of the capitalist class.

It is, therefore, capitalism which gives rise to wars, not that abstraction Mr. Curtis spoke of: — “nationalism in the hearts of ordinary men.”

Federal Union does not attempt to get rid of the deep-rooted clashes of interests, inherent in capitalism. It does not aim at ending private property and production for profit. Struggles for markets, for raw materials, would still persist, therefore, even if a Federal Union were to be formed, and even if federalists would wish it to be otherwise.

What Federal Union aims to do is to try to curb these rivalries by having a larger political unit.

It may be that with the development of capitalism and the growth of international trusts, some form of very close co-operation between certain states will result. However, were this co-operation to take the form of a federation of those states which, for the moment, found their economic interests more or less in line, it would be no victory for peace.

We have shown that a world federation is out of the question. Rival capitalist interests prevent that. A Federal Union of only a number of states would lead to the formation of rival federations, or to closer co-operation on the part of other states. The struggle for world trade would necessitate that. Federal Union offers, therefore, not peace, but more intense rivalries AND GREATER WARS.

Although federalists offer their scheme as a means of ending war, they themselves are doubtful about the success it would have. And so in Streit’s proposed constitution, he suggests the machinery which would carry on war if Federal Union were established. He writes:—”The Union shall have the sole right to deal with foreign governments, provide for the Union’s defence, raise, maintain and control standing land, sea and air forces, make peace and war. …”

Furthermore, it is admitted by Mr. Curry that war might break out within the Federal Union itself. This is indeed very likely, for capitalist interests which are in line to-day may in the near future be in conflict. America’s attitude towards Japan is clear proof of how capitalist interests and sympathies change. On this point Nathaniel Peffer writes:—

“In the Russo-Japanese war, we were pro-Japanese to the point of sentimentality. Japan evicted Russia and took over its ambitions for hegemony in the Far East. Almost immediately, we began protesting against Japan’s actions in Manchuria, adumbrated schemes for neutralising or internationalising Manchurian railways, and in less than five years tensions had arisen between Japan and the United States. The tensions have never eased.” (See “Empire in the East,” edited by Joseph Barnes).

Within a Federal Union, rivalries might well lead to friction, withdrawals from the Union (just as from the League of Nations) and war. As Mr. Curry writes : —”The Federal Union may even have to face civil war, as the American Union had to face it” (p. 130).

We repeat that to end war, its cause must be abolished. Until capitalism is swept away, all the forces making for armed conflicts will be at work. Attempts to clamp down these forces by Federal Union would be doomed to failure.

We urge the working class, therefore, not to waste its time on Federal Union, which, leaving untouched the causes of war, cannot possibly put an end to it.

Only when capitalism has been overthrown and socialism established will the causes of war—production for profit, trade and commercial rivalries—be removed.

Other fallacies of Federal Union will be discussed in future articles.

Clifford Allen

Link to Part 2.