It has often been claimed, though less often of late, by the Labour Party that Socialism was inaugurated in August, 1945, and that quite apart from the more immediate instalments of the millennium, such as old age pensions of 26/- a week, the way to a golden future had been laid open by the good sense of the British people in voting Labour. It was implied that the objective could be attained by nationalization—making the appropriate Minister the chairman of the Board of Directors, as it were, to see that just what the voice of the people demanded was produced. The direction of the industry was otherwise to be at least strongly influenced, if not partially controlled, by the organised workers, either through their unions or more directly. This was regarded as the “practical socialism” of the Labour Party. The new position of the unions under a government and employer both demanding their loyalty caused a few pamphlets to be written (for example Ben Roberts’ “Trade Unions in the New Era”) trying to resolve this difficulty, but few Labourites seriously expected the continuation of the bitter bargaining over wages and conditions, or the recurrence of the problem of consuming the productive output. Yet, with the retention of production for a market, and consumption determined by a wages system, how could it be otherwise? When the unions adhered to their alliance with their new employer and the Government, the workers were increasingly driven to circumvent the unions in their day-to-day conflict with the employers. Both miners and railways workers wanted nationalisation for the industrial democracy it was thought to imply. Both have been disillusioned. Both demanded more say in their State industry and were rebuffed for their impudence.
All this is. given point by the British Electricity Authority’s recent £150 million issue of stock. If the B.E.A. needs equipment it does not have a claim on the community’s production of wealth, as a socialist might consider obvious; instead it must present its case as a sound investment to private owners of investable money—money, being the only access to wealth in this economic system. In prominent headlines the B.E.A. advertises, as if it were a Marks and Spencer’s issue :
“BRITISH ELECTRICITY AUTHORITYISSUE OF £150,000,000 BRITISH ELECTRICITY 3½% GUARANTEED STOCK, 1976-1979Created under the provisions of the Electricity Act 1947, and guaranteed as to principal and interest by His Majesty's Treasury under the Act.PRICE OF ISSUE £99 PER CENT.. . . The stock will be redeemed at par not later than 15-11-1979.”
You will remember that the Tory and Liberal Parties, claiming to disapprove of the division of society into classes (or at least its appearance), urged the “wider spreading of property” until “everyone was a capitalist,” completely ignoring the simple fact that the mere existence of property-derived income could only produce concentration of wealth at a geometric rate. Well, dear classless reader, stand to with your Post Office Bank Book. You now have an opportunity to enter into Anthony Eden’s “property-owning democracy’’—anybody can subscribe to this issue, although of course:
“Applications must be for £100 stock or a multiple thereof; no allotment will be made for a less amount than £100 stock.”
You will of course make application through your broker. “A commission of 2/6d. per £100 stock will be paid to bankers or stockbrokers on allotments made in respect of applications bearing their stamp.” It becomes clear at this point that only mugs work, so in a matter of minutes we shall be out buying a rubber stamp, and with this as our constant capital the half- crowns will only need collecting. One-and-a-half million half-crowns (on £150 million) will be roughly £200,000, for a few hundred ledger entries.
Anyway, let us suppose we have posted off our 10 per cent. deposit for 100 of these £100 shares; this can’t be too artificial because the B.E.A. is issuing one-and-a-half million such shares, and this isn’t the only issue of the year by any means. Then for a minimum of 26 years we will receive for our thrift (i.e. on utilization of our unspendable surplus) £350 per annum, a total of £9,100. The B.E.A. then promises to redeem them at par, i.e. 1 per cent. above sale price. So we have loaned £9,900 and received back £19,100—a marked improvement, of £9,200 to be exact. And all achieved by thrift, providence, enterprise, public spirit, and consequent divine recognition of these virtues. Where it has come from is someone else’s worry (yours), but then the ways of God are exceedingly strange, and this divinely ordained system provides consolation prizes in the next world for those deprived in this.
Tempering our nobler nature with a fractional caution, we can see that we really can rely upon getting a fair return for lending our embarrassingly unconsumable surplus, for the, “ socialised ” authority lists its illustrious composition:
“The Rt. Hon. Lord Citrine, P.C., K.B.E., Comp.I.E.E.Sir Henry Self, K.C.B., K.C., M.G., K.B.E., Comp.I.E.E.Sir John Hacking, M.I.E.E.Sir Norman Duke, K.B.E., C.B., D.S.O., M.C.Norman Elliott, Esq., O.B.E.. M.A., M.lnst.C.E., M.I.E.E.Dame Caroline Haslett, O.B.E., Comp.I.E.E.L. Howies, Esq., M.I.E.E., M.Inst.Struct.E., F.R.S.A.The Rt. Hon. T. Johnston, P.C.C. R. King, Esq., M.lnst.F.Lt.-Col. E. H. E. Woodward, C.B.E., M.C., T.D., M.I.E.E.”
(There is a trade unionist hidden in the picture. Can you find him?) This indisputable aura of respectability is meant to show that our money will not be irresponsibly wasted and that the whole concern is being run on sound lines. This point is also clearly made later: —
“ It is the duty of the Authority so to discharge their functions as to secure that the combined revenues of the Authority and all the Area Boards taken together are not less than sufficient to meet their combined outgoings properly chargeable to revenue account, taking one year with another.”
To be quite fair, they also mention somewhere about maintaining an “efficient and economical system of electricity supply.” These two requirements will not always be compatible, so it will be interesting to watch what happens.
(The statement also points out that interest and redemption is required to be made from a fund provided by current income, and the outline of last year’s accounts show £16 million set aside for interest—about 8 per cent of receipts).
The dream is fading in the Labour ranks. Only on quantity of nationalisation were they divided from their opponents. Now nationalisation is seen to have left unchanged the position of the worker (and the investor), and has only minority support in the Party. The leadership of the Party dropped it long ago provided they continue to wear red ties on occasions, the Party boundaries may remain clear. But if they abandon this disguise then it is going to be difficult indeed for the voters to know what to do—unless they have read our back page.
E.R.G.



