News in Review: Wall Street slump (1962)

The News in Review column from the July 1962 issue of the Socialist Standard

Wall Street slump

Wall Street got the twitch last month and so did London and the Bourses on the Continent. The newspapers rushed out pictures of the panic in 1929 and then had to set their City Editors to work to explain why 1929 cannot after all happen again.

Everybody seemed to have forgotten that just before 1929 the financial experts were assuring us that the crash which was in fact just around the corner could never happen anyway. If this does not make the experts of 1929 look very impressive in retrospect, it must also teach us that the forecasts of all capitalism's economic experts are not worth very much.

Nowadays the experts are fond of pointing out the precautions which (they are confident) would prevent a runaway boom like the one which preceded the 1929 crash and therefore (they reason) would also prevent the crash itself.

This ignores the fact that slumps are not the result of an attack of jitters on the Stock Exchange; rather is it the other way round. Nineteen-twenty-nine was one of capitalism's classic crises and no amount of stock juggling could have averted it.

Nor should we assume that hotheaded speculation is dead. The Observer correspondent in New York reported that the “intellectuals" of Wall Street thought that: “By the end of last year the market had reached heights that brokers now, without blushing, describe as insane." and quoted one New York broker:

"The way some of (the big brokers) have been pushing over-priced stocks at naive investors is nothing short of criminal."

Perhaps a repeat of 1929 is not so impossible after all. For some of the experts were mystified by Wall Street’s 1962 twitch. The Guardian said: "The continuing retreat is puzzling commentators in that there seems to be no apparent reason for it. Mr. Walter Heller, President Kennedy's economic adviser, said there were no economic grounds for the condition of the market." Does this fill us with confidence that capitalism’s economists could not be taken unawares by a repeat of 1929? It does not.

Capitalism could have something up its sleeve, just as it had thirty-three years ago, to surprise the experts and impoverish the rest of us.

Liberal Party promises

Nobody can accuse the Tories of not being worried about the Liberal revival. Faced with the fact that some of the electorate undoubtedly find the Liberal Party attractive, the Conservatives have set out to prove that the very allure of Liberal policy lies in its irresponsibility.

This is being done in the time- honoured way of accusing the Liberals of pushing vote-catching policies without also mentioning that they would increase taxes to finance them. Mr. Iain Macleod has estimated that full application of the Liberal policy would put another eleven shillings on income tax. Most workers are convinced that they are the people who pay taxes: to them, the prospect of a standard income tax rate of 18/9d. in the pound must have seemed like black nightmare.

To back up his case. Mr. Macleod had his research boys dig out some choice examples of Liberal promise-mongering. He quoted Liberal policies for spending more on roads and education, for increasing pensions, repaying post-war credits and much more besides. The Liberals claimed that Macleod‘s quotes were taken out of context.

Yet in one way Macleod had a point, even if he did not know that he was making it. All capitalist political parties have to make a lot of attractive promises and boast that they can do things which they know are beyond their abilities. The Tories, for example, said in 1951 that they would stop prices rising.

Such promises can be effective vote-catchers. The one snag is that a party which is liable to be returned to power cannot make its promises too extravagant, because that would only make their betrayal that much more obvious. On the other hand, the more remote from power a party is, the more reckless its promises can be. The Liberals have little immediate prospect of becoming the government of British capitalism.

We may be sure that if the Liberal revival really gets under way their promises will become dimmer and more sober as the votes mount up. And if they ever get into power again most of the promises will disappear. Grimond and his men would run British capitalism in roughly the same way as the parties they now decry.

End of Eichmann?

No time was wasted, after the Israeli President bad written the quotation from the Bible across the petition for reprieve, in sending Adolf Eichmann to his death and scattering his ashes into the sea.

Why was Eichmann executed? For revenge? One man cannot adequately expiate the murder of six million people; a split-second execution is hardly revenge for the years of pitiless concentration camp horrors.

P

erhaps nearer the mark were those observers who think that the whole thing—the abduction, the trial, the execution—was meant to establish Israel as a political reality among the other capitalist nations. Political acts in themselves do have significance and for Israel to put to death the man who organised the extermination of the Jews is significant indeed.

Israel has asserted her power—even if, in terms of capitalist legality, she had little right—to bring the Jews' tormentors to book.

But what else has Israel done?

Perhaps she has made a martyr of the clerk-like Eichmann. Racial theories still live in capitalism's jungle; the execution of Eichmann could be the grain of sand around which they crystallise and flourish.

There is no easy explanation of the Eichmanns of the thirties and forties; Nazi Germany will remain a horrifying enigma for a long time to come. But we can say that part, at any rate, of the reason for the electoral success of the Nazis was the crisis of German capitalism after 1918 and the despair and cynicism which this bred in the minds of the German working class. In this mood, they would have supported anyone who sounded as if he had the answer to their problems. And Hitler, with his race mania, sounded like that to them.

Capitalism is always liable to convulsion and in any case it will never stop looking for scapegoats for its own shortcomings. This means that racial hatred is still with us and that even the madness of the Nazis need not be very far away.

The world may not have seen the last of its Adolf Eichmanns.

Coal profits

The nationalised coal mines made £28.7 million operating profit last year. If the Coal Board were a normal commercial company, said chairman Lord Robens when he announced these figures, it would be paying a dividend of 2½% from its profits.

But the coal mines are not, of course, a normal concern. The N.C.B. is liable to pay out on fixed interest stock and loans, which means that its dividend payments bear no relation to its working profit.

Last year the N.C.B’s interest payments came to £42.4 million, which turned its working profit into an accounting deficit of £13.7 million.

There are three things to be said about this.

Firstly, nationalising the coal mines was obviously a good move from the point of view of those who get the £42.4 million interest from a profit of only £28.7 million; much more than they would have got from Lord Robens' two-and-a-half per cent!

Secondly, the fact that millions of pounds profit is being wrung from the coal mines is proof—if anymore were needed—that nationalisation does not alter the capitalist nature of society. For profit, in private or state industry, can only come from the exploitation of workers in the industry.

Which brings us to the third, conclusive point. Many workers in this country were misled into supporting nationalisation because they thought it had something to do with common ownership. The figures which the National Coal Board has produced, and those which the other nationalised industries turn out year by year, show up that it was nothing of the kind.

News in Review: Collapse at The Summit (1960)

The News in Review column from the July 1960 issue of the Socialist Standard

Collapse at The Summit

The assembling of the Big Four for the Summit meeting in Paris contained all the essentials for great tragi-comedy, except the happy ending. Summit meetings may yet replace the circus as “the greatest show on earth.” Publicity arrangements on a world scale preceded the actual meeting for some years. The “ Summit ” has dominated the headlines of the world’s press. Millions of words have poured out from lengthy articles under banner headlines, speculating on the date and interpreting the significance of statements made by politicians and Government officials. And so at last three thousand journalists congregated in Paris to report the discussions of four individuals who, it is said, between them can and will adjust the barometer of world tension. With the stage set and the audience breathless, the principal actors took the stage. The so-called “main problems” of disarmament, Berlin and the continued division of Germany were now, it was said, to be seriously tackled. But unfortunately the final curtain came down on the overture. By the old. process of mutual abuse, charge and counter-charge, the meeting quickly degenerated. Suddenly nothing had happened.

There will never be anything so futile in the tackling of social problems as the holding of summit meetings. Such meetings only serve to increase the personal prestige of the politicians who attend them and persuade ordinary working people that honest attempts are being made to stem the threat of war. From any government's point of view, there is nothing that a summit meeting could accomplish that the regularised channels of diplomacy could not accomplish equally as well. All such conferences, even where politicians do succeed in getting together, entirely by-pass the everyday problems of working people. Their whole scope and function is irrelevant to the real and pressing issues of modern society, issues that the working class itself must come to grips with.

Turkey

When Menderes, the Turkish Prime Minister, survived the air disaster at Gatwick, he was acclaimed by the faithful as a saint and a prophet. From the recent events in Turkey, it would appear that the legend is taking some hard knocks. For more than ten years this dictator has used every known method to maintain power. He is himself a big landowner in the west of Turkey — an area in which indescribable poverty is the lot of the Anatolian peasants. We can wonder how is it that the dictatorial regime has survived for ten years. Part of the answer is that the majority of Turks, who are still attached to the Muslim faith worshipped Menderes because of his religious fervour. One interpretation of the cause of the crisis was that it was the work of a small clique inflamed by grudges and ambition. Menderes himself blamed “a handful of youths exploited by certain groups for their selfish political aims.”

Crises are not caused by the evil machinations of individuals; they have their root cause in the way a society is organised. The importance of Turkey in world politics rests partly on the control of the Dardanelles and the Bosphorus. Astronomical amounts of American dollars have been spent in building up Turkey as another “Western bastion of democracy”! Half the Turkish budget is devoted to defence. These measures, coupled with large agricultural credits, have produced the inevitable economic crises which are part and parcel of the capitalist system everywhere. The new Head of State, General Gursel, is described as a Turkish Neguib in search of a Nasser. He has announced that it would be for the next Government to decide whether to put Menderes and his Cabinet on trial. Whatever the outcome, the Turkish working class can look forward to another round of capitalist intrigue and unfulfilled promises.

Eichmann

The news that Adolf Eichmann, a former Gestapo chief, has been captured by Israeli agents, was splashed across the front pages with all the gusto of editors recognizing the sales power of cheap sensationalism. A man-hunt successfully concluded after 15 years, with the quarry a miserable survivor of the Nazi regime, is the sort of titbit that the profit-seeking press can dress up to satisfy the appetites of those who seek cheap thrills in their reading.

To Socialists, the capture of Eichmann in itself is of no importance. The inhumanities which man indicts upon man are not the actions of people who were born monsters, but rather the consequence of inhuman policies and doctrines which a monstrous system conditions human beings into accepting as answers to its economic and political problems. Eichmann was a product of German capitalism which made a scapegoat of the Jews for the failure of Germany to win the 1914-18 war and for the mass unemployment which followed. The massacre of the six million attributed to him was not the work of one “evil genius.” History cannot be so simply explained. But there is significance in the fact that Eichmann is to be given a mockery of a “trial.” What a perversion of the name justice it is which allows the victors in the 1939-45 bloodbath, in which mass murder was committed by both sides, to condemn the leaders of the conquered for the same crimes they perpetrated themselves.

Red Blood

The South African Government has recently published regulations to come into force on 1st September under which “white” and “non-white” blood will be segregated to ensure that as far as possible whites and non-whites will receive blood from white and non-white donors respectively. This segregation of blood has in fact been in practice in South Africa for some years, although blood plasma imported from America was not segregated. The exponents of apartheid claim that the Africans are biologically different to the whites in being “ inherently backward ” and it seems that they think Africans’ blood is different too. Blood from human beings cannot, of course, be identified as to the colour of skin of its donor, but only by its various groupings, A, O, Rhesus, etc. Some biologists have even stated that the blood of some types of gorilla and human beings is interchangeable. This new regulation is another example of the blind prejudice of the South African Government in its policy of apartheid.

Misdirected Energy

On May 21st, sixteen cannibals were sentenced to death in Wewak, New Guinea, for killing, cooking and eating three men, and kidnapping eight women. After lecturing the men, who spent most of the time dozing on the courtroom floor, the judge said that because the raid was a “social and economic one with the dual purpose of providing wives and flesh,” he would make strong recommendations for mercy, and suggested a training programme for the convicted men. In prison they will no doubt be put through a rigorous rehabilitation programme. They will be lectured on the error of their ways and taught how to conform to the moral standards of modern civilisation. Perhaps they might even become so civilised they may be allowed to join the army and do the capitalists’ dirty work for them. Queens Regulations will not, of course, permit them to consume their victims, but they will be able to kill with the approval of the law, the blessing of the church, and if they do really well, they may even become national heroes.

Wyatt Sees the Light

Everything happens finally, if only one can wait long enough for it. This is one reflection that springs to mind after the attack made by Mr. Woodrow Wyatt, right-wing Labour M.P., on the big unions’ block vote as undemocratic. This has been obvious for years, of course — to all except Mr. Wyatt and his right- wing Labour friends. No complaint was ever heard from them about the block vote, so long as the big unions with doglike devotion regularly swung all their millions of votes behind the Labour leadership. But now that the man who wields the block vote of the Transport and General Workers’ Union, Mr. Frank Cousins, has clashed with Mr. Gaitskell over defence policy, a great light has broken in on Mr. Wyatt’s mind. With cries of astonishment, he announces as a new discovery what everyone else had been pointing out for years. Still, one must be grateful that Mr. Wyatt has seen the obvious, even at this late stage.

But Mr. Wyatt's revelations only extend so far as Mr. Cousins. Not a word has come from him about the second largest of the giant unions, whose leader, Sir Thomas Williamson, is a supporter of Mr. Gaitskell, and who recalled the annual conference of his union because they had voted the wrong way the first time. But we must wait. If Sir Thomas is replaced by a leader who disagrees with Mr. Gaitskell, Mr. Wyatt may discover another “arrogant bully with a block vote” (which is the way he now describes Mr. Cousins).

As for the left-wing of the Labour Party, who have been denouncing the block vote of the unions throughout the time it was automatically used against them, they have become strangely silent. The block vote used against them, and the block vote used by Mr. Cousins in their favour, are apparently two quite different things. How circumstances alter cases, even to the extent of turning democracy into bullying, or bullying into democracy!

50 Years Ago: Eichmann: Who is responsible? (2010)

The 50 Years Ago column from the July 2010 issue of the Socialist Standard

It is impossible to condemn too strongly the terrible brutality of the killing of millions of people, Jews and others, of which Adolf Eichmann is accused. The majority of people have reacted to the press reports with a demand for his punishment. Learning of Eichmann’s deeds, they take the short-sighted view that to deal with him as an individual is enough. But Eichmann is the end product of a vast process; he arose from the inhuman conditions of capitalist society. The very people who condemn him are content to leave those conditions untouched.

 The working class, not only in Nazi Germany but in post-war Germany—and throughout the world—blindly support capitalism. None of them can escape responsibility for the consequences. For the power wielded by the rulers of world capitalism is a reflection of the political ignorance of the working class everywhere. It is absurd to blame one man, when he is only the instrument of a policy supported by millions. (…)

 War is caused by the struggles between national capitalist Powers over markets and economic resources. This can only be cured by the abolition of capitalism. As long as workers support this system, so will they be vulnerable to the racial theorist who, on nationalist grounds, gets support for his programme of mass murder. The dictators of yesterday, and the dictators and leaders of today, with their frightening military machines, only reflect the preparedness of their workers to ignore the bloodshed of two world wars and still to die for capitalism.

 It is futile to punish an individual whilst ignoring the vicious conditions which made him possible. Eichmann was involved in some terrible things—but the exterminations which he so methodically organised are only a part of the greatest atrocity of all—the capitalist system of society. As the movement for a classless world—for Socialism—takes root and spreads, so will the possibility of inhuman murderers like Adolf Eichmann decline and die.

(from the editorial, Socialist Standard, July 1960)

Editorial: Eichmann: Who is Responsible? (1960)

Editorial from the July 1960 issue of the Socialist Standard

It is impossible to condemn too strongly the terrible brutality of the killing of millions of people, Jews and others, of which Adolf Eichmann is accused. The majority of people have reacted to the press reports with a demand for his punishment. Learning of Eichmann's deeds, they take the short-sighted view that to deal with him as an individual is enough. But Eichmann is the end product of a vast process; he arose from the inhuman conditions of capitalist society. The very people who condemn him are content to leave those conditions untouched.

The working class, not only in Nazi Germany but in post-war Germany—and throughout the world—blindly support capitalism. None of them can escape responsibility for the consequences. For the power wielded by the rulers of world capitalism is a reflection of the political ignorance of the working class everywhere. It is absurd to blame one man, when he is only the instrument of a policy supported by millions. 

After a war, the defeated leaders are vilified, some imprisoned and others executed. The victorious leaders are enshrined as heroes. It is fortunate for the leaders of the 1939-45 Allies that no cloak-and-dagger men are hunting for them. They, too, are responsible for terrible slaughter. President Truman gave the orders for the atomic bombing of Hiroshima and Nagasaki. Churchill, Attlee and Stalin supported this atrocity. In Hiroshima alone, 80,000 people were incinerated in a flash and hundreds more have since died—and are still dying—from various causes. Thousands of Germans were killed in the bombing of Hamburg and in the destruction of Dresden.

These are the vicious conditions which make possible the race hater and the mass exterminator. Although tens of millions of people have been butchered in the last two great wars, the world is not safe. The fear of war is still with us. Nowadays, many nations have vast armaments poised in readiness to exterminate each other. How many future Eichmann's wait to stalk upon the scene?

If only workers would find out why all this madness takes place! War is caused by the struggles between national capitalist Powers over markets and economic resources. This can only be cured by the abolition of capitalism. As long as workers support this system, so will they be vulnerable to the racial theorist who, on nationalist grounds, gets support for his programme of mass murder. The dictators of yesterday, and the dictators and leaders of today, with their frightening military machines, only reflect the preparedness of their workers to ignore the bloodshed of two world wars and still to die for capitalism.

It is futile to punish an individual whilst ignoring the vicious conditions which made him possible. Eichmann was involved in some terrible things—but the exterminations which he so methodically organised are only a part of the greatest atrocity of all—the capitalist system of society. As the movement for a classless world—for Socialism—takes root and spreads, so will the possibility of inhuman murderers like Adolf Eichmann decline and die.