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Wednesday, November 27, 2024

Notes by the Way: A Tip for Hire Purchase Financiers (1949)

The Notes by the Way Column from the November 1949 issue of the Socialist Standard

A Tip for Hire Purchase Financiers

The Daily Worker (12/10/49) had an article on “Hire Purchase—New Style ” in Hungary. It appears that in “Socialist” Hungary “hire purchase . . . . is now organised as a State enterprise,” and is “no longer a means whereby manufacturers can sell expensive goods to poor people, but one designed to help the poorest and largest families.”

The Worker correspondent does not explain how it is that in “Socialist” Hungary there should be “poorest families” unable to get what they need without hire purchase, but he describes a feature that will make the financiers of hire purchase here and in U.S.A. turn green with envy. One of their bugbears is the worker who gets the goods and defaults on payments or manages to disappear before he has paid them off. If they would take a tip from Budapest it need never happen again, for in that blessed land “hire purchase payments are deducted from pay at work. If the purchaser changes his job the payments are transferred to the new job.”

* * *

Cupboard Love for the Trade Unions

The Tory, Liberal and Labour Parties are all, so they say, anxious to save the trade unions. In 1927 the Tories “saved” them by introducing the Trade Disputes Act which among other things made it more difficult for trade unions to provide funds for the Labour Party and compelled the Civil Service and Post Office unions to disaffiliate. The Act made it necessary for each member of a trade union to indicate his desire to pay the political contribution, thus reversing the clause of the 1913 Act which required those who objected to paying the political contribution to register their objection. It was designed, as everybody realised, to hit at Labour Party funds, and did so effectively. Labour Party trade union membership dropped in 1927 from 3,240,000 to 2,025,000, and income from affiliation fees dropped by £15,000.

In 1946 the Labour Government restored the pre-1927 position with a consequent big increase in trade union affiliated membership and funds. Trade union affiliated membership in 1947 showed an increase from 2,635,000 to 4,386,000, and trade union affiliation fees jumped by about £25,000 to £77,000.

Now the Tories are proposing if returned to power to reopen the question and Mr. Churchill claims— though on what evidence is not known—that about a third of the members of trade unions are Conservatives.

As the accumulated funds of the “registered” trade unions (representing about 85 per cent. of the total trade union membership) amount now to over £50 million, the interest taken in them by the three political parties is not surprising.

Even under the present arrangement of “ contracting out” of political contributions, a considerable proportion of trade unionists do not pay, as can be seen by the difference between total membership of the unions and the number of members who pay the political contribution, i.e.,‘ membership on which the unions are affiliated to the Labour Party. In 1947 the Agricultural Workers' Union, with 130,000 members, was affiliated to the Labour Party on a membership of 71,000. The Transport and General Workers' Union (membership 1,264,000) was affiliated on 800,000; and the A.E.U. (742,000) was affiliated on 609,000.

* * *

Whither India?

Nehru, Prime Minister of India, calls himself a Socialist and declared in 1946 that his party intended to set up a “Socialist Republic of India” (News Chronicle, 22/11/46). Like his friends and admirers, Attlee and Cripps, all he meant was that he would make use of socialist phrases as a bait to keep the Indian workers acquiescent while his government got on with the job of building up India into a first-class capitalist Power. India needs foreign capital which British investors under present conditions are unable to supply in anything like the amount needed; hence Nehru’s wooing of the U.S.A. capitalists, who in their turn are anxious to find a safe area for foreign investments. On October 13th Nehru addressed both Houses of Congress at Washington and had not a word to say about his proclaimed intention of establishing Socialism—that is only for home consumption before working class audiences. Instead he buttered up the Congressmen and Senators with the usual poppycock about how the Indian Constitution “had been greatly influenced by the principles and ideals enshrined in the American Declaration of Independence ” (Times 14/10/49.) The whole of his speech requires interpretation in this way, but his audience would certainly know how to “read between the lines.” What, in effect, he was saying was that his Government have the workers well in hand, will not line up with Russia, and will give security for American capital.

What he asked in return, and this of course was the real purpose of the visit, was in the concluding phrases—“But we . . . need much mechanical and technological aid,” and “we shall, therefore, gladly welcome such aid and co-operation on terms which are of mutual benefit.”

In short Nehru was assuring them that they need not take seriously anything he may have said about destroying Capitalism and putting Socialism in its place.

* * *

The Tito-Stalin Slanging Match

The root of the Tito-Stalin conflict is the desire of the Russian ruling clique to incorporate Yugoslavia economically and militarily into the Russian system and the counter efforts of Tito’s group to strike a better bargain with U.S.A. A fairly close parallel can be found in the way the Italian ruling class changed sides in both world wars; both countries are industrially weak and both occupy a strategically important position, but nevertheless one that is exposed to pressure from those who wield combined naval and air power in the Mediterranean.

The Yugoslav spokesmen have complained that the Russian Government tried to control the Yugoslav army, installed its own agents in the country; compelled Yugoslavia to export to the Russian market at prices below world level, and by setting up so-called joint industrial enterprises that are in fact controlled by Russia alone, sought to turn all the Balkan satellites into Russian colonies. This is the normal relationship that the stronger Powers try to impose on the weaker ones and it did not surprise socialists. The communists have been very much surprised because they have fallen into a trap set by their own tortuous propaganda. Having decided to pretend that Russian State Capitalism is Socialism they have ended by believing it, and have in consequence thought that the economic and class forces that push all capitalist states into rivalry and imperialism would cease to operate East of the “iron curtain." Forgetting their once-held view that international politics could only be explained by looking at the underlying economic forces the communists have been forced into the absurd “idealistic” explanation of the Yugoslav attitude that it is due to Tito and his colleagues having been got at, bribed and flattered by American agents.

An entertaining though tragic aspect of the conflict is the way both sides present their case under a cloud of Marxist phrases. In between blackguarding each other in the choicest invective the Stalinites accuse Tito of betraying Socialism—as if he ever had any to betray—while Tito smartly retorts with references to and quotations from Marx and Lenin. Telling the miners in Belgrade that Russia must not interfere in Yugoslav affairs, because Yugoslavia is one of the countries “which are building up Socialism,” Tito added: “ We must clear this matter up and say—as Lenin once said against Trotsky—it is possible to create Socialism in one country ” (Times 12/9/49).

A little later we find Tito working up the war spirit with talk about fighting to the death in defence “Marxist Leninism”—the enemy of course being the Russians who will be told they are fighting for the same principles. He was addressing high-ranking army officers after the manoeuvres:—
“It is better to die in battle honestly fighting for justice and truth than allow yourselves to be trampled on or bend your necks like slaves and sec the great principles of Marxist-Leninism destroyed without resistance.

"We have carried out these manoeuvres when attempts are being made to frighten our people, disrupt our unity, and render impossible the successful building of Socialism."

The Army, he said, would defend Yugoslavia “until the last breath and regardless when the attack came."— (Daily Mail, October 10th, 1949.)
It only remains now for the British and American Governments to “discover” that Tito is defending democracy. Already Mr. Bevin has dug out the old phrases about a small nation bullied by a big one (at the United Nations), and various articles and speeches have been made on the theme that Tito is really a very fine fellow.

* * *

Ship-owners and Shipyard Workers

Workers in the shipyards are worried. During October many hundreds were stood off, and we are told that “shipyards all over Britain are expected in the next few weeks to declare thousands of workers redundant” (People, 9/10/49). Most of them are skilled workers.
"They have been kept busy ever since the war ended on reconversion of liners and freighters back to peace-time requirements. Now that work is coming to an end. The rush is over. Demand for new ships is also slackening off and there is only enough work in sight in the shipyards to keep occupied the regular peace-time ship workers.” 
Among the factors disturbing the owners and workers is “growing foreign competition.” The Daily Telegraph (4/10/49) quotes an official of the Confederation of Clyde Shipbuilding and Engineering Operatives as saying that with the re-entry of Japan and Germany into the shipbuilding market, “there is no saying what might happen in the future.” And according to the Liverpool Dai Post (3/10/49, quoted in Daily Worker, 8/10/49) shipowners are also worried about the threatened undercutting of Atlantic fares by big, fast Russian liners and on 5th October the first Russian ship to dock at Montreal for years “undercut British and Canadian freight rates and secured a cargo of cereals for Britain” (Herald, 6/10/49).

There are problems here for both owners and workers. The sacked workers are assured by the Herald (14/10/49) that they have not much to be worried about, for they “will be quickly absorbed in other jobs,” the industries named being engineering and the building trades. They may be absorbed in these industries for a time, but the Herald does not take into account either the likely restriction of building or what will happen to these and all industries when Capitalism develops a major crisis. For the building trade there is already talk of curtailing of building plans as part of the plans the Government is considering in order to enforce concentration on the export trades.

The shipowners are also thinking ahead. On October 13th, when Mr. Attlee attended the annual dinner of the Chamber of Shipping at the Dorchester Hotel, Mr. Colin Anderson, the President, let fall a delicate hint that when they are in serious difficulties the shipowners will turn to the Government for some kind of assistance.
“We face a cold decade—we are already feeling the first frosts. Where shall we stand when the winter is really upon us? Rather than be slowly frozen even we may be forced to contemplate applying for the shelter of some form of counter-action—a garment which, in this case, perhaps only the State would be able to provide."— (Daily Telegraph, October 10th, 1949.)
Mr. Anderson (who by the way made his remarks in the course of a speech “ proposing the toast of the Government”) said that the shipowners are trying to work out a sensible way of retaining the valuable aspects of private enterprise, but doubtless “if winter comes” they won’t much mind the Labour Government buying them out with State-guaranteed bonds which will save them from the icy blast that will send the shipyard workers to the Labour Exchange and the dole.

* * *

The Co-operatives and the Sugar Industry

The Daily Express (16/9/49) suggested that the Co-operative societies may not be enthusiastic about the suggested nationalisation of the sugar industry by the Labour Government. It was pointed out that the Co-operative Wholesale Society was not represented at the meeting of Tate & Lyle shareholders when nationalisation was discussed and opposed. And there is a curious item of information in the same issue of the Daily Express, to the effect that the C.W.S., in addition to being Tate & Lyle's biggest customers are also “ the largest single shareholder in Tate & Lyle.”

* * *

Herald Editors Slip Up

On October 6th the Daily Herald editorial described the frigid reception Sir Stafford Cripps received at the Guildhall. Their comment was: —
”We might say that if the bankers and merchants of the City of London received with enthusiasm a pronouncement by a Socialist Chancellor, that would be sensational news. It would also be sinister news.”
But on the same page of the Herald we read the following about a meeting of Wall Street stockbrokers in New York addressed by Mr. Maurice Webb, chairman of the Parliamentary Labour Party: —
”. . . Webb was asked to explain Labour policy to the 24 most important stockbrokers on Wall Street. He was surprised when his only critic turned out to be an Englishman who had emigrated to the States years ago.”
* * *

Another Cotton Revolution on the Way

The industrial revolution made the cotton industry largely a woman’s industry and at present about two- thirds of the workers in the weaving section are women. Now as a result of technical changes recommended by the Cotton Manufacturing Commission it is forecast that men will replace women.
”Thirteen men sitting as the Cotton Manufacturing Commission have come to the conclusion that married women weavers—the bulk of the labour force in the industry—cannot adapt themselves as well as men to redeployment.”—(News-Chronicle, October 5th, 1949.) 
Another report (Daily Telegraph, 5/10/49) says: “The industry must ‘redeploy' or perish. Redeployment—the rearrangement of machines giving highly- skilled operatives more looms, and increasing output and wages by up to 25 per cent.—was the essential part of the Commission’s recommendations.”

The Chairman of the Commission, Mr. Moelwyn Hughes, K.C., told a Press Conference that “he wanted the industry to pay a wage sufficient for a married man to keep a family without his wife going out to work. He visualised the industry becoming predominantly
male instead of female” (Daily Telegraph, 5/10/49).


* * *

A Scientist on Scientists

Professor J. D. Bernal, Professor of Physics at Birkbeck College, London, caused a stir by a speech in Moscow in which he said that science outside Russia and her satellites is under the direction of war makers. He subsequently explained in a letter to the Times (8/10/49) that when he spoke of “capitalist countries” he meant mainly America and not “Socialist Britain.”

The controversy produced a useful admission about the limitations of some scientists when they wander out of their own field, from Sir Edward V. Appleton, Principal of Edinburgh University. Speaking in Edinburgh on October 3rd, Sir Edward Appleton, who was formerly Professor of Physics and is Secretary of the Department of Scientific and Industrial Research, said: —
‘‘The statement by Professor Bernal is a striking illustration of the fact that the reliability of the scientist does not always extend beyond his own laboratory, and one often finds a scientist who, while not ready to accept any scientific result until it is fully tested, is quite ready to voice wholly untested opinions about other matters in the most prejudicial and dogmatic manner.”—(Manchester Guardian, October 4th, 1949.)
If any other evidence is required that the above criticism fits Professor Bernal we have the latter’s own letter to the Times; for without any evidence at all— all the evidence is against it—and obviously without any serious thought, he describes Capitalist Britain as “ Socialist.”
Edgar Hardcastle

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