The end of the publican
Reference was made in these columns recently to the concentration of the brewing industry in a smaller number of large firms. According lo the Evening Standard (6/8/63) the process is continuing and taking new forms. One of these is that as the big firms find they can make more profit by having the public- houses run by their own paid managers, they are more and more getting rid of the houses run by tenants, as leases fall in. Some experts are forecasting a big fall in the number of publicans who run their own business, and those who remain are finding their freedom of action more restricted. Having been tied in respect of the brands of beer they could sell, they are now finding themselves limited in their choice of wines and spirits, and even cigarettes and mineral waters. The Evening Standard City Editor thinks that the big brewers, who launched their own brand of gin in opposition to the existing brands, will follow this up by producing their own brand of whisky.
He thinks the disappearance of the “free” publican a matter for regret and a positive danger, but does not explain how the all-round powerful drive concentration in industry and trade is to be halted. Governments may promise to turn back the clock by legislation, but capitalism has a habit of largely ignoring it. It was not only the Conservatives who said they were opposed to any form of monopoly, but there was a time when the Labour Party, too, wanted a large number of small capitalists in preference to a small number of large ones.
In any event it seems that the British worker to whom the Conservatives promised “full personal freedom and power of initiative” isn't going to be allowed to exercise it in his choice of pubs, beers, whisky, etc., quite apart from the limiting factor of his ability to pay.
Down with money
As a small by-product of the £2½ million train robbery the Daily Mail in its issue of August 10 had a full-length leader with the caption “Down with Money.” How bold and refreshing? Nothing of the kind: just the usual inanities of the newspaper editorial mind. The theme was that the robbers of the mail train would find it very exhausting trying to spend so much money and would soon discover that “ money is a nuisance and a bother.” So why not abolish it altogether!
After that daring promise of an idea came the flat triviality of the actual scheme: “Why do we not become a credit card nation, and free everyone from the necessity of carrying bulky pockets full of paper? ”
This, according to the leader writer, would save us all a lot of trouble. No money changing hands and being transported about or locked up in safes. Just Bank of England Computers giving everyone a statement each week of what they had spent and what they had left. All accounts would be settled by cheque. The writer conceded that we might still need a few metal discs for slot machines. “But for the rest let us just sign our names and give our numbers for everything from bus tickets to bingo games. ’
We may pause for a moment to contemplate the spectacle of millions of busy shoppers, and travellers signing their names and giving their numbers at shop counters, in buses, ticket offices, etc., and may well wonder whether they would consider it any less tedious than handing out notes and coin.
But there is a catch that the writer overlooked. His brain child all began with the £2½ million train haul and he closed on the note that “there would never again be another train robbery.” But if he thinks that as credit cards come in the opportunity for theft goes out he has overlooked not only the possibility of signing someone else's name and number but also of stealing or forging credit cards.
But let us invite the writer in the Mail to give his mind to a really bold and constructive idea. Let him ask himself why bullion, coins, notes, cheques and credit cards are in use at all; whose interest they serve; and whether they are really necessary?
The theoretical justification for the continuance of a monetary system is that it enables those who lawfully possess goods to sell them, and use the money to buy whatever they choose, when and where they choose. Seemingly a very admirable and convenient arrangement (even if it does get upset much and often by robberies). But it serves to mask the realities of production and distribution which from the point of view of the majority of the population are far from admirable. How do the lawful possessors of (the products of the factories, workshops, farms, and so on, come to be in that position? Because they have laboured to produce what they own and sell? Not at all. Just the opposite in fact. The one undeniable feature of the world we live in is that wage and salary earners who are employed to produce the goods are never the owners of them after production. The owners and the non-producers, simply by virtue of the fact that they are already the owners of the factories, either directly or as shareholders.
So the money arrangements are merely the cover for the legalised exploitation of the mass of the. population, serving primarily the interests of the owning class.
Of course, it needs boldness of thought to consider the fruitful possibility of all the people of the world simply producing what all need, and distributing it directly, without any monetary arrangements (and newspaper leader writers are notoriously timid, and fearful of thought) but having made a small start could not the leader writer of the Mail be induced persevere?
Wage restraint
Mr. Harold Wilson has shown candour in saying again, as he has said before, that any future Labour Government will count on the trade unions accepting wage restraint as part of a policy of restraint of profits, rents, etc. Amid some mild expressions of approval or disapproval, Mr. Hill, general secretary of the Boilermakers Society, got into the headlines by declaring his emphatic opposition to any form of wage restraint. So the battle commences: Hill versus Wilson. And how will the issue be settled? Shall we end with wage restraint or without wage restraint? The answer is that, so long as we have wages, the efforts by workers to push them up and by employers (backed by governments) to push them down will continue: nothing will be settled.
The trouble is that those who argue for and those who argue against wage restraint are not really arguing about whether it should exist or not, but only whether its existence should be admitted in words.
Take Mr. Hill, for example. If, correctly reported, he does not want any form of wage restraint and presumably thinks that if a declaration of “ no restraint” is made, the situation will be different. But, of course, it will be altered hardly at all. For years, indeed for generations, and long before a Labour Government invented the term “wage restraint” to describe its policy, there have been workers and trade unions which have demanded higher wages, and fought bitterly by strikes to get them: and have never got the wages they demanded and thought they ought to have. They have not been restrained by the words “ wage restraint,” but by the resistance of the employers and the power of the government—in the last resort, military power.
What has Mr. Hill to say about his own Union. He has never accepted wage restraint, but he has repeatedly had to accept the fact that his Union members could not get the wages they were asking for. What has Mr. Hill done about it? He has done what he could, but that did not include getting rid of the fact of wage restraint.
As remarked earlier, this is bound to last as long as the wages system lasts, and most people, including apparently Mr. Hill, unfortunately will not get round to recognising that the wages system could and should be got rid of along with the rest of capitalism.
The role of gold
In an address to the Transvaal and Orange Free State Chamber of Mines in Johannesburg recently, the President, Mr. P. H. Anderson, reviewed the prospects of gold mining in South Africa. He stated that in the last 15 years output has more than doubled. It reached a record of 25 million ounces in 1962, and the first five months of 1963 showed a further 10 per cent. increase, but with the exhaustion of mines and in spite of the development of new areas it may now have reached its peak. Employment in the mines has begun to fail from the 1961 peak of 40,000 Europeans and 400,000 Bantu.
The working profit from the gold mines in 1962 was £123 million with a further £21 million from uranium, and dividends of £55 million.
One of the factors stimulating gold production and profits was the devaluation of the pound sterling in 1949, and the South African gold interests have for years kept up incessant propaganda for a general devaluation of world currencies, including, above all, the American dollar. In spite of repeated assurances by the American government that they have no intention of doing this, Mr. Anderson states that a number of South African mines are continuing in operation, though making losses, in the hope that devaluation will sooner or later come to their aid.
As is the way with all vested interests looking for means to increase their own profits, the South African gold interests, backed by a number of economists, argue that it is in the interest of world trade in general, and in particular that it would help the “West” against “Communism,” meaning by the latter the Russian government.
One of the counter arguments from the United States has always been that revaluing the dollar from its present rate of 35 dollars to an ounce of gold to some higher figure (50 dollars is often mentioned in the propaganda) would help the Russian Government since Russian gold stocks would automatically be worth more dollars in the world market.
It has often been claimed that Russian gold production is only second to that of South Africa and rising rapidly (a figure of over 17 million ounces was claimed in 1958). But some of the gold experts outside Russia have been sceptical about Russian output and the size of its gold reserves.
“Lombard” in the Financial Times has recently mentioned various estimates of Russian output, but dismisses them all as no more than “ intelligent guesswork.” But, he claims, if total output and stocks of gold in Russia are not known, what is known is that since the early nineteen fifties Russian gold has been coming into the world market at the rate of something under 7 million ounces a year.
His conclusion is that this figure probably represents something approaching total output and that the supposed enormous gold reserves of the Russian government are mythical—unless the Russian government, like the South Africans, is also waiting for the day when the American government devalues the dollar in terms of gold.
For Socialists it has its own lessons. In spite of the nonsensical forecasts of some alleged experts that the devaluation of the Pound in 1932 would be the end of gold, it still plays its old role in capitalist international transactions, just as much for capitalist Russia as for the rest of the capitalist world.
Edgar Hardcastle
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