“Money Must Go”: Letter from the authors (1946)

Letter to the Editors from the September 1946 issue of the Socialist Standard

The authors of “Money Must Go” write the following letter about the review published in our July issue : —

Dear Comrades,

We were pleased to see the review of our book, “Money Must Go,” in the July issue of the Socialist Standard. May we draw attention to several statements made by the reviewer, L.J., which might give a wrong impression?

(1) The book is not intended to be “an attempt to simplify some of the fundamental ideas on Socialism,” if by this is meant the critical analysis of Capitalism, etc., which is the basis of Scientific Socialism and constitutes the bulk of its teaching. It is intended to suggest to the Socialist propagandist a different mode of approach to the problem of interesting workers in fundamental social change. It does this by (a) giving a general picture of Socialist society in order to induce interest in Socialism as a practical project; and (b) by emphasising the moneyless character of that society, which factor sharply demarcates the Socialist aim from those of all pseudo-socialist factions. On the other hand it provides a means of implanting the idea of Socialism as a working system of society in the mind of the non-socialist without using “that blessed word.” We are of the opinion that the word “Socialism” has become so debased through constant use by reformist organisations and “political tricksters” that the use of the word can well be delayed until the idea has sunk in. For the use of the term “World Commonwealth” we have a precedent in the Socialist Standard of May, 1922.

(2) We think that the charge of “over-insistence that money is ‘the root of all evil'” is unjustified. This dictum is referred to but once (p. 15), and there we merely point out that such an idea was current about a hundred years ago. We do refer to the ownership of the means of wealth production by a small minority as the cause of the poverty of the majority (p. 7) and to the class division of society as the source of social evils (p. 13). Neither do we “make a direct attack on money” nor propose its simple abolition. We advocate, and in this book supply a positive approach to the idea of a world without money and in which goods are produced solely for use and/or free distribution as an alternative to the present system of production for profit (p. 16). That with the achievement of such a system the means of production would simultaneously become commonly owned by the whole of the community is implied in unorthodox fashion on page 17. Nevertheless, the statement at the top of page 17 (incompletely quoted by L.J.) is quite true. A statement of the same nature which accords with L.J.’s version is given on page 132. We have found that this approach induces interest, whereas the use of the economic and more precise terminology does not. Interest precedes desire. Workers can themselves easily see the possibilities of life in such a world organisation. It is so simple to visualise a world in which all capable of working take their part in the world’s work and in which all the goods produced are distributed to stores and warehouses from which the people will take according to their needs without payment of any kind. True, money is a medium of exchange. Then surely if there is to be no exchange there will be no need for a medium of exchange. Is not this as simple to understand as the four characteristics of capitalism, given by L.J. ?

(3) We do not define Socialism—we explain it. We conceive it as a system of society. On page 25, and again on the back cover, we concisely sum up the essential characteristics of a Moneyless World Commonwealth. The term “common ownership” may be precise in meaning to those who know what it really means. This did not prevent the Common Wealth Party from using it—to mean something quite different.

(4) To most workers the State appears as an abstraction, an intangible power above society, but controlling it and manifesting itself through the individuals that compose it. Similarly the “heavy hand of ‘the law,'” referred to by L.J. To them, more concrete is the heavy hand of the policeman, and later, the heavier hand of the gaoler. As a “public power of coercion” we do explain the State adequately on page 121.

(5) We deny our “misreading of the class struggle.” In its first and present phase the class struggle is only over the question of the division of the workers’ product. The “wages, hours of labour, conditions of work, etc.,” referred to by L.J. are essentially aspects of this. There is hardly as yet a “political struggle over the ownership of the means of wealth production.” That is yet to come, and we show its necessity in Chapter 18.

(6) “Clarity is essential in explaining Socialism.” We do that. But almost all Socialist propaganda is devoted to explaining capitalism and neglects to explain the features of Socialism as an alternative system of society. It is that we deplore, and we have tried to show how this shortcoming can be made good. The important question directed to Socialist propagandists to-day is, “How will Socialism work?”, and this should be seized upon as a potent means of agitation. Explaining capitalism can well come later.

(7) “Confusion plays into the hands of those who defend capitalism.” Again true. And it is for this reason we avoid the use of those precise terms, “capitalism,” ”working class,” “Socialism,” “class struggle.” In spite of their precision in use by Socialists these words have been and still are used by every confusionist party claiming working-class support. Every schoolboy “knows” what Socialism means—so does the Evening Standard ! Precise terms can be used by opponents to spread confusion. We have found mental pictures more useful for our purpose.

(8) “The word Commonwealth is not synonymous with Socialism.” In “Money Must Go!” we do not once refer to “Commonwealth” alone; always to “World Commonwealth,” and at least once in each chapter we add the adjective “Moneyless.” The comment that “its use by all sorts of political tricksters should have warned the writer of its vague and confusing character” therefore does not apply to “World Commonwealth.” The comment as it stands can be applied aptly to the word “Socialism.” Even Hitler used it !

Fraternally,

PHILOREN.

Philo—

—Ren.

Reply:

“Philoren” has swopped horses. In his preface to “Money Must Go” he says that the “main purpose” and the “only justification” for the book is that he is sure that the “great mass of the people” will accept the ideal of World Commonwealth, “would they but take the trouble of understanding the barest essentials of the idea.” His suggestion that it was intended to show Socialist propagandists a different “approach” is only an afterthought. We are answering paragraphs 1, 3, 7 and 8 in one section as they deal largely with the same subject matter.

He does not deny that he avoids using definite terms; on the contrary, he states, “Precise terms can be used by opponents to spread confusion.” Is that a good reason for substituting confusing and vague terms in place of words that have a definite meaning? Why do political parties which serve capitalist interests use such words as “the people” or “the Commonwealth”? Simply because they are vague, abstract and indefinite terms. In 1940-41 a “People’s Convention” was organised, which demanded a “People’s Peace”; others described the war as a “people’s war”; an ex-Liberal formed a “Commonwealth Party,” while apologists refer to the Empire as the “British Commonwealth of Nations”; many other instances could be given of this use of abstract Language, which hides more than it reveals. That “Philoren” had to go to a Socialist Standard of 24 years ago to find the term “World Commonwealth” is a sign that it has fallen out of use with Socialists, while it is increasingly used by non-socialists. Socialism is clear enough without using the ponderous “Moneyless World Commonwealth.” If others use the name of Socialism to spread confusion, that is all the greater reason for us to insist on its real meaning and to increase our efforts to get it understood by workers. The task of doing “long and persistent” educational work cannot be evaded by dropping scientific methods and using the slovenly jargon of our enemies.

(2) If words mean anything, then we are right in saying that “Philoren” insists on money being the cause of social problems. He describes the present system as a “money-based system.” On page 96 he says, “Think of all the misery, the worry and the illness all caused by these funny pieces of metal,” while later, we are told that, “In a sense woman is doubly enslaved—to man and to money” (page 99). We showed that money is not the basis of capitalism and he has not troubled to answer that point. He claims that he refers to the class division as the source of social evils (page 13), but, as a matter of fact, it is the “ever-widening division of the people into rich and poor” that he states gives rise to social problems; a view held by the Labour Party and other reformists who seek to narrow the gulf between rich and poor. “Philoren” knows that nothing was omitted from the quotation from Page 17, which altered its meaning.

(4) Because, it is claimed, most workers regard the State as an “abstraction,” are we to call it that? A feeble reason to give for an incorrect view. The explanation on Page 121 is not adequate but most sketchy. He merely deals with the State as a deterrent to “crime” ; its function as a power holding in check the disruptive force of class struggles is not touched upon.

(5) Because the working class is not class conscious in the sense of understanding the full implications and significance of the class struggle, “Philoren” assumes that the “present phase” of the struggle is only over wages, etc. This, we repeat, is a misreading of the class struggle. The class struggle exists, otherwise how could a political party whose purpose is to end the private ownership of the means of wealth production come into existence? What is the Socialist Party but the expression of the class struggle on the political field. He states that he advocates political action in Chapter 18, but it is after suggesting political action that he refers to the class struggle as “no more” than a struggle over a “bone.” In any case, to state that political action is “yet to come” is simply ignoring the existence and activities of the S.P.G.B.

(6) Both here and in the latter part of section 2 (Workers can themselves easily . . . without payment of any kind) he shows that he is nothing more than an Utopian Socialist. He wants us to cut down our criticism of the ugly economic system under which we live and draw up beautiful schemes of the new society in the hope that they will attract workers. Many Utopian Socialists did this in the past and their beautiful schemes are infantile in relation to modern conditions. Not merely that; Socialists are not building a “brave new world” from any “blue prints”; they have, in the words of Marx, “to set free the elements of the new society with which the old bourgeois society itself is pregnant.” Capitalism fetters the free production of goods—and it is through explaining the nature of those fetters, the economic laws of capitalism, that we create amongst workers the desire to break those fetters. The problems that face workers are the problems of capitalism, and we concentrate on explaining capitalism in order to pave the way to Socialist understanding. Workers who understand capitalism, generally desire and work for Socialism; they want no fanciful dreams to stimulate them to play their part in ending the hideous reality of capitalism.

L. J.

"Money Must Go": A Review (1946)

Book Review from the July 1946 issue of the Socialist Standard

We have been asked to review a booklet, “Money Must Go” (Published by J. Phillips, 203, Lordship Lane, N.17. Price 2s. 6d.). The subject matter is dealt with in the form of conversations between “Professor” and “George.” It is a genuine attempt to simplify some of the fundamental ideas on Socialism, although the writer, instead of using the word “Socialism,” uses the vague term “World Commonwealth.” Some of the ideas are all right, but we haven’t the space to deal with them here. There are, however, weaknesses, due to the over-insistence that money is “the root of all evil.”

The writer apparently holds the view that it is easier to make Socialists by a direct attack on money than by a direct attack on Capitalism. We do not hold this view. In our experience it is most difficult for workers to see that it is possible to produce and distribute wealth without the use of money, unless they have some knowledge of the elementary facts of capitalist production. Most workers regard money simply as a means of exchange, and nothing in this book will remove that idea. Money is a means of exchange, but, as gold in its metallic form, it is also a commodity, and it will be abolished as money only when commodity production is abolished. The expression “a money-based world” is repeatedly used, and if it is intended as a simple definition of capitalism it gives a wrong impression. Money is not peculiar to capitalism, nor is it the basis of capitalism. The essential characteristics of capitalism are: (a) Private ownership of the means of production and distribution ; b) a dispossessed or propertyless working class; (c) the production of goods for sale (commodities) ; (d) large-scale industrial production. These elementary facts can be grasped by any worker and cannot be easily simplified without becoming meaningless. The term “money-based world” is meaningless.

Another difficulty is the mixture of right and wrong ideas in the book. It is slated that “the abolition of money alone would solve no problems” (page 16), but on the next page we read, ” . . . . since money would not exist …. no person could say that he owned a share …. in the people’s means of production. In fact, all the world’s means of production would, then belong to the people of the world.” In this passage it is clearly implied that it is the abolition of money that will lead to common ownership. The correct position is that when the means of wealth production and distribution are commonly owned and democratically controlled there will be no exchange of goods and the need for money disappears. On both these pages efforts are made to define Socialism, but somehow the author leaves out the term “common ownership.” Also, while he states that every form of slavery will disappear, he fails to state that the present form of slavery is wage-slavery.

There are also serious theoretical errors. The, State is called an “abstraction” (page 120). This will appear strange to those who have felt the “heavy hand” of the law. The State is the public power of coercion used by the dominant class against the subject class. Later he explains, the “civil war” raging in society as a struggle over the goods produced by the workers. He says, “This war — or perhaps more accurately — this struggle is nothing more than a conflict between two dogs for the same bone” (our emphasis). The bone is the wealth produced by the workers. This is a misreading of the class struggle. In the industrial field the class struggle is a struggle over wages, hours of labour, conditions of work, etc., but it is something more than that; it is a political struggle over the ownership of the means of wealth production.

If the purpose of the book was to present a simple statement of the Socialist case, it is by no means a success. Subjects can be so over-simplified that they lose meaning. We can be sparing with words, but we cannot be sparing with sound definitions and clearly understood terms. Clarity is essential in explaining Socialism. Confusion plays into the hands of those who defend capitalism. It is strange, therefore, that, the writer avoids using such precise terms as “capitalism,” “working class,” “Socialism,” “class struggle,” but uses vague words such as “the people ” and the “World Commonwealth.” The word Commonwealth is not synonymous with Socialism. Its use by all sorts of political tricksters should have warned the writer of its vague and confusing character.

L. J.

Blogger's Note:

An excerpt from Money Must Go was reprinted in the World Socialist No.4 Winter (1985-86).

A PDF of the book is available over at Libcom.

Classic Reprint: Money Must Go (1985-86)

Classic Reprint from the World Socialist No.4 Winter 1985-86

Money Must Go

This was the title of a short book published in 1943. Written by two sympathisers of the Socialist Party who used the name "Philoren" (from their names Philips and Renson), it was an attempt to expound the case for socialism without using conventional jargon which they considered to be an obstacle to the spreading of socialist understanding. The book had its limitations, but can generally be regarded as one of the finest political documents not to have come out of the World Socialist Movement. 5000 copies were printed and sold but as the book is now out of print these are some selected passages from it to show the clarity of its ideas.

Professor:- I am not proposing the abolition of money alone, nor a return to barter. In fact, the abolition of money alone, would solve no problems and undoubtedly create many difficulties. But what I do propose is, that the whole system of money and exchange, buying and selling, profit-making and wage-earning be entirely abolished and that instead, that instead community as a whole should organise and administer the productions of goods for use only, and the free distribution of these goods to all members of the community according to each person's needs.

Since money would not exist, and wealth could not, therefore, be measured in terms of money, no person could say that he owned a share of such-and-such value in the people's means of production. In fact all the world's means of production such as land, factories, mines, machines, etc, would then belong to the whole of the people of the world who would co-operate in using them.

The main features of the World Commonwealth are really quite simple, so I'll proceed to sum them up for you in a few sentences.

Firstly, the new social system must be world-wide. It must be a World Commonwealth. The world must be regarded as one country and humanity as one people.
Secondly, all the people will co-operate to produce and distribute all the goods and services which are needed by mankind, each person willingly and freely, taking part in the way he feels he can do best.
Thirdly, all goods and services will be produced for use only, and having been produced, will be distributed, free, directly to the people so that each persons needs are fully satisfied .
Fourthly, the land, factories, machines, mines, roads, railways, ships, and all those things which mankind needs to carry on producing the means of life, will belong to the whole people.

Suppose that the new social system were to start tomorrow; the great mass of people having already learnt what it means and having taken the necessary action to bring it about.

Everybody would carry on with their usual duties for the time being, except all those whose duties being of an unnecessary nature to the new system, were rendered idle: for example, bank clerks, commercial travellers, salesmen, accountants, advertising and insurance agents etc. These people would, in time, be fitted into productive occupations for which they considered themselves suitable. Periods of duty would then be regulated so that over-production would no ensue . Some sort of shift system would be necessary in some countries to begin with, and it would be as well to add that duty periods could not be reduced very much at the beginning.

George:- Why not Professor?

Professor:- Obviously, George, because there would be need for an immediate increase in the volume of production of many kinds of goods to relieve those people who were suffering from the evil effects of the old system and to supply the needs of those who were in the process of transferring themselves from obsolete to useful occupations.

For example, it would be necessary to produce lots of clothes of all sorts to be distributed to the millions of poverty-stricken people who always lack them nowadays. The agricultural parts of the world freed from the restraints of the present "money-based system" would pour out the abundance of health-giving foodstuffs to feed the half-starved populations of the world; not, as often happens nowadays, to be burnt, thrown into the sea, or otherwise destroyed because they cannot be sold at a profit.

For the first time, the conditions would exist for turning into reality the beautiful plans for housing people in real homes instead of the sordid slums or dull cities which the present social system has called into existence. These plans exist today - on paper - and will remain so, while it is necessary to have money to get a decent home. Released from the "money" necessity, architects, builders, designers, artists, engineers, and scientists would be enabled to get together to build towns, homes and work-places which would be a joy to live and work in, a job at which even today their fingers are itching to get.

How long this period would last depend on the size and mess left by this "precious" system of ours. Personally, I don't think it would take very long since we have seen how quickly even the obstacles of the present social system, backward countries can be developed by modern industrial methods. It should not, therefore, take very long for those parts of the world which are already highly industrialised to turn out enough goods to make the whole of humanity tolerably comfortable as far as the fundamental necessities of life are concerned.

Well, having got rid of the worst relics of the old order, production would then be adjusted so that enough is turned out to satisfy fully, the needs of everyone, making, of course, due provision by storage for the possible, though, infrequent, natural calamities such as earthquakes.

Having produced all that is required, all that is necessary is to distribute it to the people so that each person's needs are fully satisfied. In the case of perishable goods it would merely be a matter of transport from factory or farm direct to the local distributing centres, and in the case of other goods to large regional, county or city stores or warehouses. From there it is but a step to the local distributing stores which would stock the whole range of necessary goods - a kind of show-room or warehouse - and from which goods could be delivered to the homes of people, or, of course, collected by them if so preferred.

After all, George, the daily, weekly, and monthly needs of any given number of people in a district are easily worked out, even nowadays - take, for example, the distribution of milk - so it should not be very difficult to find out what stocks the local stores would require.

We wont want boundaries and frontiers in the World Commonwealth, nor the hundreds of rules and regulations that go with them. The World Commonwealth rule will be "fitness for purpose", and it will be solely that, whether it be man or mankind with which it is concerned. Just as the man most fitted for as certain duty will do it because he wants to, and not through bureaucratic compulsion or unfortunate necessity, so will these regions of the world most suited for the production of certain goods be used for their production, because it would be stupid to do otherwise. In the World Commonwealth goods will be "distributed" not "exchanged", neither "exported" nor "imported"; just as if the whole world's goods were pooled and then each region were to draw what is required.

When I say that production will be planned, do not make the mistake of imagining some super-bureaucratic organisation or World State imposing such a plan. This would not be necessary as the process would be so simple. The average requirements of a person are known : say X pounds of this, Y pounds of that; multiply by the number of people in that locality concerned, and you have on an average the total amount necessary to be "shipped" to that place for local distribution.

Now, isn't that, though in a difficult and complicated way, exactly what's being done now? Doesn't Mr Brown, the wheat importer, know almost exactly, how much wheat he can distribute to his factors and doesn't he import accordingly? Why should things be different in the World Commonwealth, tell me that? Though perhaps I'm being somewhat hasty. Things will be different, but only in a small way. Whereas now you have dozens of importers for wheat, eggs, butter, and so on, in the World Commonwealth there will be a food control or administration

George:- There is nothing new about that, Professor , it's the usual thing in war-time.

Professor:- Quite, George, but with this difference. The function of such a control in war-time is a rationing of supplies due to the possibility, or the actual existence, of a shortage. The World Commonwealth control will have no need to concern itself with rationing or shortage. Rather the reverse. Its function will be to organise production so that there is no excessive surplus, and that distribution so that the demands of the people are satisfied.

I was saying that production will be planned; I should have no need to add, it will be planned for plenty. The food control in each region will arrange for the satisfaction of the needs of that region, and will in addition plan for distribution of its own products in excess of its needs, to other regions. There will no doubt be need of a central world organisation - probably a statistical body - to control the whole output of the World Commonwealth, but I can foresee few difficulties in that direction.

I believe I have already explained how distribution would proceed from this point. From place of production to distribution depot, and from there to local depots. From the local depots there would be daily delivery of perishable goods, such as we have today for milk, and possibly weekly and monthly deliveries of other foods. Clothes and other goods not required frequently or regularly, would be obtained at large stores somewhat similar in layout, I should imagine, to present-day Selfridges or Gamage's/ These will be placed at points in the various localities according to the needs and convenience of the local population. At these stores people will do their "shopping" without money, much as they do today with; but of course with this difference. Whereas they would be able to obtain all their requirements without money, most people nowadays are unable to do so because their purchases are limited by the amount of money they get as wages.

That's all, George. Simple, isn't it?

George:- It is, truly, and not very different technically from nowadays.

Professor:- That's the point, George. Its shows quite clearly we are not planning a Utopia. We are taking the people of today and the world of today and simply changing the methods of working, the organisation - for use instead of for money-making.

PHILOREN