Editorial: The Budget (1948)

Editorial from the May 1948 issue of the Socialist Standard

At Budget time there is always a certain amount of excitement among the workers, rather like that about the result of the Oxford and Cambridge boat race—and with about as much justification. Always there is that mixture of hopes and fears—will beer and cigarettes go down? Will overtime be freed from income tax? Will purchase tax be reduced? Sir Stafford Cripps managed to please and displease nearly everyone, a bit on here, a bit off there. Beer and tobacco up a little, income tax down a little, purchase tax up on some things and down on others. The other principal features of the Budget were the capital levy which will raise about £100 millions from 140,000 of the very rich, the reiteration of the policy of freezing wages at their present level except where special factors justify an increase, and a refusal to freeze profits or to tax them more heavily. On this last point Cripps contented himself with a warning that if companies do increase their dividends to shareholders this year he will consider imposing a limit next year.

Speaking for the. Conservative opposition, Sir John Anderson, a former Chancellor of the Exchequer, criticised certain features of the Budget, particularly the special levy, but otherwise be welcomed Sir Stafford Cripps’ “realistic and honest approach.” The Manchester Guardian (April 7th, 1948) praised it as “a strong, honest, and radical Budget,” and remarked of the capital levy that it is “in fact a stiff individual profits tax winch falls where it should, on the large personal capital.” That newspaper’s City Editor (April 7th, 1948) went further and showed that it is not even very stiff:–

”The levy on capital will not be severe even for those holding very large amounts of capital. Assuming an investment yield of 5 per cent. the tax would amount to 2½ per cent. on a capital of over £100.000.”

We may sum up by saying that if the workers find that the Budget makes little difference to their position so do the capitalists, and this is true of all Budgets no matter whether the Government is Conservative, or Labour. It explains why the Socialist refuses to get excited about Budget prospects.

What the working class get out of the capitalist system is the wage or salary they receive for selling their energies to the employers (including the Government and the administrative Boards which are Ihe employers in nationalised undertakings), and wages follow fairly closely the rises and falls of the cost of living. This is not an automatic process of adjustment, but takes place through the pressure and counter pressure exerted by the employing class and the workers in strikes and lockouts. When prices are falling unemployment is usually heavy enough to enable the employers to force down wages. When unemployment is at a very low point, as at present, it is easier for the workers to struggle for higher wages and thus try to maintain their standard of living in face of recently rising prices. Those who urge the workers not to take advantage of the present low unemployment to press for higher wages may discover at no very distant date that the opportunity will have passed. Unemployment will be the order of the day; or, as the City Editor of the News Chronicle puts it (April 10th, 1948), ”with the country probably over the inflationary hump and perhaps set on the, road to deflation with the help of the recent Budget.” Mr. Arthur Horner, Communist secretary of the Miners’ Union, apparently is among the short-sighted. According to the Daily Worker (April 6th, 1948) he said at Leicester, “The miners had not taken full advantage of the law of supply and demand of labour. If they had wages would have been much higher.”

When Cabinet spokesmen oppose higher wages they do so because their immediate and predominant responsibility, by virtue of being the Government, is to keep the capitalist system functioning in the only way that capitalism can function, that is by enabling the capitalists to make profits. The Labour Party grew up on the mistaken belief that under Labour Government there would be great possibilities to raise wages by cutting into profits. Rather late in the day some of them, certainly Sir Stafford Cripps, have come up against the, harsh truth that those who administer the capitalist system have very limited freedom of action—on all important issues they can depart little from the practice of their Conservative predecessors. Official figures on the proportion of the national income which goes as salaries, wages and rent and profits, etc., bring this out clearly. In 1938 wages accounted for 39 per cent., salaries for 24 per cent., and profits, rent and interest for 37 per cent. In 1947 wages accounted for 44 per cent., salaries 20 per cent., and rent, profits, etc., 36 per cent. (See Economist, April 10th, 1948, p. 596.) In each case the figures are after meeting income tax.) It will be observed that the percentage going to wages and salaries together, i.e., 63 per cent. in 1938 and 64 per cent. in 1947 has hardly changed at all, likewise the percentage to rent, profit, etc.—37 per cent. in 1938 and 36 per cent. in 1947.

This is the dilemma of all Labour Governments, but no such dilemma faces Socialists. Socialism is not a scheme for redistributing wealth and income inside capitalism, but a system of society to replace the capitalist system

Notes by the Way: This Millionaire Business (1948)

The Notes by the Way Column from the May 1948 issue of the Socialist Standard

This Millionaire Business

Mr. Bernard Harris, of the Sunday Express, is worried because under Labour Government (he calls it “Socialism”) “you have no chance to-day of starting a business in Britain which will make you a millionaire before you die.” (Sunday Express, April 11th, 1948.) It seems that the harvest of millionaires has been falling for generations so that to-day “there are only 244 millionaires in Britain. They are the people with incomes of £50,000 a year or more.”

Mr. Harris does not go so far as to say that there will be no new millionaires, but he fears they won’t be hard-working lads like their fathers, but will become millionaires the easy way, “by inheritance or out-and-out speculation.”

“The self-made millionaire, in the sense of the man who has created a vast business from small beginnings, is a fast disappearing species. And he is the only valuable kind.”

He quotes an unnamed jam millionaire who was asked 50 years ago “to give 12 rules for making a million,” and replied, “Repeat ‘hard work’ 12 times.”

So the good millionaires make their money by hard work, and the other millionaires are not good ones. This leads to some curious conclusions. Lord Derby, who died in February last, left property valued at £1,937,838 (Evening Standard, April 8th, 1948), but though he inherited his estates and therefore does not fall into Mr. Harris’s group of valuable millionaires, we do not recall that the Sunday Express ever condemned him as an example of a no-good rich man. Nor did Lord Derby think it of himself. When he was Tory Postmaster-General in 1905 it was the postmen whom he thought were no good. He had nasty things to say about some of them who were trying to work up electoral opposition to him and other M.P.s because, after a Committee appointed by the Government had recommended increases of pay, the Government would not carry out the whole of the recommendations. Lord Derby called the postmen blackmailers and bloodsuckers though later he withdrew the “bloodsuckers” when he found what a storm of criticism it produced The postmen, most of them earning probably between 25s. and 30s. a week, were certainly hard-working— their employer saw to that—but it never got them anywhere.

Mr. Harris also tells us that “there were the Wills, of tobacco fame. Eleven members of that family have died since 1909 leaving a total of £38,000,000 between them.”

In November last Sir William Churchman, a director of the Imperial Tobacco Co. and partner in Churchman’s, died worth £1,102,719. (Evening Standard, 7/2/48).

These ladies and gentlemen got their wealth out of business, in the way Mr. Harris approves but if hard work is the explanation one wonders why the hard-working cigarette makers never get into the millionaire group like their employers.

The truth is, of course, that all great fortunes, whether inherited or acquired during the owner’s lifetime, came out of the unpaid labour of the working class.

* * *

The Garibaldi Communists

When Communists fight elections it is on the principle that no dishonesty is barred provided it gets votes. In Italy, according to a correspondent of the Sunday Express (11/4/48), they are appealing to patriotic sentiment.

“The Red Flag is nowhere to be seen; no hammer and sickle signs disfigure the walls. With a lack of scruple that takes the breath away they proclaim Garibaldi their hero. His head appears on most of their posters.”

However, it seems that Garibaldi’s 81-year-old daughter is still alive and she objects to Communists “hiding behind her father’s picture.”

“Her father,” she said, “never approved of Communism.” “It was founded by a German (Marx) who always hated Garibaldi.” (Daily Mail, 12/4/48.)

* * *

“Freedom of the Press” in Russia

In Russia no political party is legal except the Communist Party and no publication is permitted that opposes the Communist Party. At the United Nations Conference at Geneva on 29th March, 1948, an American delegate, Mr. Harry Martin, president of the American Newspaper Guild, was challenged to produce proof of his statement that in Russia the press is controlled by the Government. According to a Reuter and Associated Press report Manchester Guardian, 30/3/48) he did so by reading out the Statute which in 1931 gave control of publications to a State organisation known as “Gavlit.”

“It authorised the Gavlit administration to forbid the publication of any works containing ‘agitation and propaganda against the Soviet authority and the dictatorship of the proletariat.’ It entrusted Gavlit with ‘preliminary and subsequent control over published literature both from the political-ideological and from the military and economic viewpoints,’ and authorised confiscation of disapproved publications and the prosecution of persons ‘violating the demands of Gavlit, its organs and authorised representatives’.” (Manchester Guardian 30/3/48.)

The News Chronicle's own correspondent at Geneva reported that although the Russian delegate addressed the Conference after the above had been quoted “he made no reference to Mr. Martin’s quotation.” (News Chronicle, 30/3/48.)

* * *

Japan’s the Friend, not China

Honor Tracy, correspondent in Japan of the Observer, reports that American policy has taken a new turn. “Under this policy Japanese economy is to be restored as quickly as possible, with liberal American help, in the hope of creating better conditions, not only in Japan herself but in the Far East as a whole. Japan is thus to become ‘the workshop of Asia’ as she has always claimed is her proper function.” (Observer, 11/4/48.)

The Report continues :

“Travellers returning to Tokyo from China report . . . indignation that the proposed grants and loans to Japan during the present year should be so much greater than what is being offered to China. The American view, on the other hand, is that China is now disintegrating so fast as to make outside help ineffective.”

It looks as if the “brave Eastern allies” in next war may be the Japs, while China qualifies for the position of a horrid dictatorship.

* * *

Lancashire’s Exports

Mr. Harold Wilson, President of the Board of Trade, speaking in London on 9th April, 1948, referred to the struggle to find markets abroad for textiles. “Although the problem of production of textiles this year’ is going to be the biggest problem this country has ever faced, the problem of selling them is going to be even greater, particularly in face of the enormous import restrictions in three-quarters of the trading world. We have put strong diplomatic pressure on every country which is imposing restrictions against us and we have in our various trade negotiations made it a cardinal point to try to open the market wherever possible …” (Manchester Guardian, 10/4/48.)

One of Lancashire’s competitors is Japan and another is U.S.A. Mr. Ewing, Chairman of the Bradford Dyers’ Association, according to a Manchester Guardian report of a speech, “was worried about Japanese competition. Exports of Japanese cotton textiles increased rapidly during 1947 and were equal to three-quarters of Lancashire’s trade. The United States was also developing export trade. Mr. Ewing therefore stressed the need for quality and inventiveness.” (Manchester Guardian, 12/4/48.)

In the meantime, while Japan fights to sell more textiles outside Japan, U.S.A. to sell more textiles outside U.S.A., and Britain to sell more outside Britain, the President of the Board of Trade tells us that “if textile, production does not buck up the clothing ration may have to be reduced.” (Daily Mail, 13/4/48.)

* * *

Is the Church an Essential Industry?

A News Chronicle reporter tells readers that “latest figures show that only 4,000 vicars and rectors have a net income of between £400 and £500 a year. Five thousand earn less than £400—and some hundreds have even less than £300. (News Chronicle, 10/4/48.) He says that parents today will not enter their sons for the Church because of the low pay and “a drive has begun to establish a £500 minimum for vicars and £260 for assistant curates.”

This is all very well but is the Church so other worldly that it hasn’t heard about “wage-freezing” and the policy of allowing increases only in essential industries or where there is increased production?

* * *

Social Reform is not Socialism

While the Daily Express (8/4/48) tells us that things are worse here than in America because “in Britain we have Socialism,” the Daily Mail will have none of it. Criticising a speech in which Mr. Attlee claimed we have had our Socialist social revolution the Mail wrote (24/1/48) :

“For such claptrap read ordinary ‘social reform.’ Bigger names stand upon that role than those of Attlee and Bevin. We cite Disraeli, Chamberlain, Asquith, Lloyd George, Churchill, Baldwin.”

We can leave them to fight out the issue which party achieved more reforms of capitalism. As Socialists we heartily endorse the statement that it is claptrap to describe social reform as Socialism.

* * *

The “Daily Worker” is disappointed with Indian Capitalism

Socialists never supported the Indian Nationalist movement, knowing well that the propertied interests which financed and controlled it were only concerned with making India safe for Indian capitalism. Not so the Communists. They urged Indian workers to support Nehru and the Congress Party. Now the Daily Worker professes to be astonished because Nehru’s government treats the Indian workers in the same way that they were treated under British rule.

“What is happening in India? The British trade unionist may well rub his eyes in astonishment. Trade union leaders are being arrested and repressive action is being taken against the Communist Party . . .

“Such happenings were frequent under British rule, but India is now said to be free . . . The plain fact is that little has changed in India except that it is now ruled directly by the Indian capitalists, landlords and princes by grace of the British Imperialists.” (Daily Worker, 9/4/48.)

There is nothing to cause astonishment in the discovery that Indian capitalism is like any other hut how comes it that the Daily Worker should ever have supposed that it would he different?

Edgar Hardcastle

Alberta Calling—and the Socialist Reply (1948)

From the May 1948 issue of the Socialist Standard

“Most people, I suppose, regard Karl Marx as the prophet of Communism, but that is not really correct. 

“Communism — meaning the common ownership of goods—was known in the world for many years before Karl Marx was even heard of. What Karl Marx preached was Marxism—a form of Communism which relies upon force and oppression.”

This statement, together with many others equally vague or inaccurate, comes all the way from Alberta, broadcast by one Richard J. Needham. Unlike most modern critics of Marx—who usually commence by paying him tribute for the scientific character of his works—Mr. Needham tries to belittle him by referring to him as prophet arid preacher. A good critic should never belittle the object of his criticism at the start, that should emerge as he unfolds his criticism. If Marx had been a mere ranter there would be no special virtue in having exposed him. But what is of even greater importance, Mr. Needham should have made himself acquainted with Marxism before he rushed to the microphone to talk about it.

It is true Communism existed before Marx. It was practised in ancient society, was, in fact, the normal mode of social life, but was obviously not known by that name at the time. The word was first used in the early days of the working-class movement and was derived from the French commune, or village community. The communal way of life prevailed, too, among savage tribes discovered in fairly recent times. It is said to have been practised by the monks in the early days of the Christian era. But none of these examples, as Marx said, is to be compared with the higher communism to come; which is only possible when the working class have come to realise that class ownership of the means of life is inconsistent with the free development of humanity.

To Mr. Needham Russia is the embodiment of Marxism. Soviet Russia, for him, is Marxism in practice, hence, for him, to expose the Russian way of life is to smash Marxism. He says :

“This, of course, is what has happened in Russia. Capitalism has been destroyed, but we can scarcely say that Communism has taken its place. What has happened is that a dictatorship has been set up—not exactly a dictatorship of the proletariat, but a dictatorship acting in the name of the proletariat. Sympathisers with Communism tell us that this dictatorship, as Marx proclaimed, is purely temporary, but it does not seem very temporary. Although it has been in effect thirty years, it still shows no signs of giving way to parliamentary democracy as we understand it.”

Capitalism in Russia destroyed; a temporary state called dictatorship established; and, as yet, no signs of parliamentary democracy as we understand it, Which means: we destroy capitalism, establish dictatorship and progress backwards, or is it forward? to capitalism. What is the truth?

America and Russia are the two greatest capitalist powers in the world, the two greatest powers in the present conflict of power-politics. America with her dollars and her atom bombs, and Russia grabbing oil fields, plutonium and other raw materials in readiness to answer the American challenge for world supremacy.

From this survey of the external facts it would appear that Russian capitalism is very much alive. What about the internal facts? The Supreme Soviet of Russia with all its political and industrial machinery is built on wage labour. The surplus value, over and above the cost of living of Russian workers, now flows into the coffers of the totalitarian state and is divided among officials, political, military and industrial, according to their usefulness in the Soviet schemes for power.

The leaders of the so-called Russian revolution have achieved power over the mass of their fellow countrymen. They lead, or push them into the industrial or military conflict for world domination in a capitalist world, under the dictates of the supreme Soviet. They are as firmly in control of their subjugated millions as the American capitalist class with its control of the political machinery. No Russian worker can escape the efficiency and widely flung tentacles of the Russian Government.

Orders are issued from the top, and they must be obeyed. They are obeyed. What would Wall Street not give to have their wage-slaves under such perfect control? Scared stiff by Hollywood reds and talk of Communists in official positions, they would care little at being dubbed fascist or gestapo, if their power to enforce their orders were equal to that of the Russian leaders.

It is obvious, that there is no dictatorship of the proletariat in Russia, nor anywhere else, nor at any time, now, or in the future. When the working-class is in a position to dictate they will be democratically organised for the purpose they have agreed upon, and their organisation will be intellectually and technically equal to the task. Until then it is the capitalists that dictate, and the workers’ task is an individual one: to understand and help to organise for the day when deeds of ownership and share certificates in the land and means of wealth production will be abolished; and the working-class will carry on production, in a truly democratic manner, for the satisfaction of their needs. Next Mr. Needham quotes from Marx as follows:

“In proportion as capital accumulates, the lot of the labourer must grow worse. Accumulation of wealth at one pole means at the same time accumulation of misery, toil, slavery, ignorance, brutality and mental degradation at the opposite pole.”

All this is substantially true. With regard to the accumulation of wealth Mr. Needham might have discovered that it was beyond dispute. An American work entitled The Modern Corporation and Private Property by Berle and Means, gives the information that one half the corporate wealth of the United States is controlled by no more than 200 companies. While 2,500 officers and directors own between them two thousand million dollars of capital; most of it in the hands of about 250 men who occupy the decisive executive positions.

Mr. Needham does not agree that this accumulation of wealth at one pole means poverty at the other, he says :

“The wages paid to factory workers in Canada and the United States are higher than have ever been paid to factory workers anywhere—not only in the money sense, but also in actual purchasing-power. Millions of factory workers in North America own comfortable houses and up-to-date automobiles.”

A higher standard of living is only made possible by the industry of the workers. But enjoyment of that higher standard by the workers is always opposed by the capitalists. The realisation of it can only come through hard bargaining and often strikes. Higher wages are not the result of generosity or fairness. They are paid for special qualifications, or as a compromise against still higher demands.

But ownership of a comfortable house and automobile is not confined to America. In most capitalist countries, there may not be millions, but there are more or less in a comparable position. This was proved in the last depression, when many thousands worsened the crisis because they could not keep up payments for cars, radio sets and refrigerators.

From the millions of factory workers owning houses and cars take a look at the other side of the picture. Of the slums in all the large towns, where millions do actually live in the grip of perpetual poverty. Where the conditions of existence are below any decent civilised standard. An American periodical, “Fortune,” ,says:

“About 31 per cent. of American homes lack running water; more than ten million dwelling units have no modern plumbing facilities. Eighteen million families are without baths. More than eight million families are without electric light, or power.” (Quoted in Daily Worker, August 1st, 1947.)

These figures possibly cover America’s notorious slums, but weighed in the balance against Mr. Needham’s doubtful millions, the misery side of the scale sags definitely. From the mortgaged or slum home to the factory:

“The factories, of course, have vastly improved under capitalism. People do their jobs under conditions strictly laid down by law. The manufacturing plants of Canada and the United States are the roomiest, the best lighted, the safest and most comfortable in the world. The milk and bread, the fruit and meat consumed by Canadian and American workers has to pass the most rigid tests.”

Who makes the factories roomy and keeps them clean? Not the capitalist owners. Neither is it permitted by them out of consideration for their wage-slaves. The housing of the machine must keep pace with its development. Machines are expensive, and must be suitably housed and protected from weather if they are to replace their value with the sale of products before they are worn out. While the workers who keep them running at top speed must work with ease if they are to last out the shift. And the capitalists who rely on these workers will not tolerate any tampering with food that would diminish their workers’ efficiency or constitute a danger to themselves.

According to Mr. Needham Marx made many mistakes. No doubt he did in minor matters, but in the general analysis of the capitalist system, and the part the workers should play to achieve their freedom he was sound. Mr. Needham says :

“Marx made the greatest mistake when he told the workers to rise up, in blood and fury, and destroy their compatriots: He made his greatest mistake when he called upon them to engage in class warfare.”

Is there a class war? Is there class hatred? The Socialist knows that the capitalists in America, as elsewhere, suppress strikes in blood and fury.” He knows that those strikes are evidence of the conflict of interests in. the basis of capitalist society. Evidences of these conflicting interests are present all over the world; in America, the most advanced capitalist country, more so than anywhere else. The workers all over the world to-day struggle blindly on the industrial field to maintain their meagre standard of living. When, they realise that their struggle is inherent in the system because of its class ownership of the means of life, they will organise consciously for control of the machinery of government, in order that they may abolish class ownership and establish Socialism. A truly democratic system of all the people, who will control production and distribution according to their needs.

F. Foan

“The Third Way” by Wilfred Wellock. A Review (1948)

Pamphlet Review from the May 1948 issue of the Socialist Standard

This topical pamphlet accepts the common outlook to-day that the people of Britain must choose between “Russian Communism,” the “American way of life,” or “a third way,” and Mr. Wellock gives us directions so that we may go with him along his “third way.”

In the present state of world affairs, Mr. Wellock realises that the policies of the great powers in scrambling for export markets is a hopeless solution to their national problems and that when the markets of the world are again glutted a slump will occur. He also realises that the logical end of such policies is a third world war, complete with atomic atrocities.

He also mentions the point that many countries which previously were good markets for the older established producers are now producing many things within their own frontiers which hitherto they have purchased. The extension of this process makes it much more difficult for the, older nations to export more than they used to.

In order to gain the support of the workers for their programme of increased production the Labour Government has produced its version of the old illusion that only by this means can they raise their standard of living. Mr. Wellock, although an ex-Labour M.P., disagrees with this policy, but from a peculiar point of view.

He is much concerned with the spiritual uplift of the people. “The unbalanced economics of to-day are the product of greed and naked power politics, have wrought untold economic and spiritual harm, and must he superseded by an economy that is based on human need, spiritual and economic.” (P. 23.)

He appears to think that an increase in the standard of living will simply result in the workers spending more money on beer, cigarettes, football pools, and other frivolous pleasures and pastimes. The development of mass production has produced the “mass mind and the mass man.” Is the drive to increase the standard of living worth while, then? Mr. Wellock does not think so, unless we change entirely our scale of values, and in doing so revise entirely our concept of the meaning of “standard of living.”

“Our job, in fact, is to find that better way of life for which the whole world is looking, and not- east the people of Britain. That ‘way’ will place in their right order material and spiritual factors so that both may make their maximum contribution to the achievement of that abundant life which the human soul in its silent and better moments knows to be within man’s reach.” (P. 24.)

Following such a “change of heart,” society would demand, according to Mr. Wellock, a reversion to decentralised small-scale economy in which each individual could feel he had a responsible place. Machines would be put to “their right use which is to assist man in making things of the highest quality and beauty.” Consequently, Mr. Wellock visualises a return to an economy of craftsmen and craftsmanship, and his “way” calls for nothing less than the rebuilding of civilisation on new foundations, which are, he believes, the creative and social values of Christianity.

Like the bulk of these petty reformists, Mr. Wellock has a totally false conception of the world in which we live. Whilst he is able to see a lot of the evils which exist, on the surface, they are the results of causes which he has not yet grasped, causes of which he has no knowledge.

All the evils which Mr. Wellock criticises—modern war, dictatorship, “money values,” monotonous labour, etc.—arise from the kind of society in which we live, capitalism. These evils arise from certain material causes, e.g., war from national capitalist rivalries over sources of raw materials, markets, trade routes, etc. ; “money values” from the production of commodities for sale at a profit; monotonous labour from the introduction of machinery for the purpose of cheapening prices. These bad things do not exist because man is bad. These bad things are the normal workings of capitalism. Neither are these bad things bad for everybody. There is no doubt they are had for the workers, the vast majority of the people—not because workers have bad thoughts but because they have no property. Conversely these things are good for the capitalist class, or sections of it, because they serve a purpose in protecting private property and profits.

Mr. Wellock has no knowledge, or studiously avoids disclosing it, of the division of society into two classes, propertyless workers and propertied capitalists, or of the historical development of human society from primitive communism through chattel slavery and feudalism to capitalism, otherwise he would not be wastiug his time advocating a return to the conditions of a mediaeval economy.

His pamphlet bears the hall-mark of the well meaning social reformer who, failing to understand the material causes which underlie the great and grave problems confronting the working class, takes refuge in the worn-out belief that only by retreating to pre-capitalist conditions will these problems be solved.

Far from it—the clock cannot be put back.

The “way” lies forward, along paths not yet trodden by the foot of man, but clearly marked on the map for those willing to read, “To Socialism.”

N.S.

A Letter from Vienna (1948)

From the May 1948 issue of the Socialist Standard

Amongst cables and letters of greeting and good wishes received by our 44th Annual Conference in London at Easter, was the following letter from an early member of the Party now in Vienna.

16th March, 1948.

“Please convey to the Conference a salute and good wishes from a number of comrades and sympathisers in this city.

“If the promises and hopes held out in previous messages to Conferences have remained unfulfilled— which no one regrets more than I do—let us find consolation in the fact that we have at least survived bombs and totalitarian terrorism so that we can still kindle the light that must eventually pierce the dark clouds and penetrate the hearts and brains of the workers. Greater efforts in these past years might very possibly have led to the extinction of even these few torch bearers in this tortured Continent. Remember we are not in England, but East of it. As it is, we can still watch our opportunity, and opportunity is a fine thing for us also. So, when the stock taking is made at the Conference, delegates might be justified in booking even this weak point of contact as a small asset for the movement.

“The existence of the scientific and solid instrument of the S.P.G.B. has always been a strong ray of hope and comfort to me. It seems to shine brighter and brighter as the world situation is deteriorating and increasingly menacing, and confusion in the labour movement is growing apace. As the bankruptcy of ideas, policies, and the general helplessness becomes glaringly more evident, can it be doubted that when the third crisis approaches, the party’s message will at last be heard and taken up in wider circles as the only possible way out of an appalling dilemma?

“I am forever grateful for the education received at the S.P.G.B. University, which puts people on the track of understanding and explaining social phenomena when every other theory and action has failed and events leave men utterly bewildered. The scientific outlook on and attitude to life which Socialism gives, has enabled me, too, to steer clear of all vicious temptations and avoid the pitfalls of quackery and confusion.

“As long as I live, you can always count me amongst the most ardent and steadfast upholders of the cause. My work has in the past had to be on a very limited scale, but who can say whether even the humblest of us will not sooner or later become the medium of quickening the pace of progress and find his hands strengthened and forced by events? At this juncture, we cannot, of course, escape the vital importance of seeing at least Democracy maintained as against the renewed evil onslaughts that are being made in many quarters, including the country from which I write.

“With renewed good wishes for the success of your Conference, I remain, Yours fraternally……”

Rudolf Frank

Although the Socialist message penetrates to and finds acceptance in many parts of the world, the points of contact are small and limited, hut we definitely assure our Viennese comrades that we regard our contact with them as a real asset to our movement. We can also assure all our well-wishers in other lands, that if hopes held out in messages to this Conference remain unfulfilled by the time we hold our next one, it will be our misfortune and not our fault.

Overseas Secretary.

What is Socialism? (1948)

From the January 1948 issue of the Socialist Standard

What is Socialism? Socialism is a new form of society; a form in which the whole of the people of the world will own in common the means to produce wealth and will distribute it according to the needs of each.

All that people want is the satisfaction of their needs, but private ownership has given its own particular slant to what some people need today. To be wealthy today not only means to live in comfort and security, it also means to be the subject of social approbation. Hence the wealthy ostentatiously display their wealth, live in huge mansions, attend lavish balls bespattered with jewels, own numerous motor cars and so forth in order to inspire the admiration of their fellows. Millionaires without a trace of artistic culture accumulate quantities of pictures and other works of art, as well as patronising artistic movements, for the same purpose. When the possession of jewels, motor cars, and pictures is open to anyone who wishes to weigh themselves down with these things the desire to accumulate them will vanish because society will only look upon the accumulator as a lunatic. Water is one of the most precious things in the world to the human race yet no one attempts to hoard up and display huge tanks of fresh water, nor do they carry air balloons to balls and Command Performances. Water and air, except under extreme circumstances, have not been denied to all but those that can purchase them. Under Socialism the products of human ingenuity will be as free to all as water and air are now, and the badges of vanity and superiority will vanish.

One of the fundamental needs of humanity is occupation for the mental and physical faculties. As work at present is a badge of inferiority most of those who belong to the privileged section of society try to find other means of employing their energies; of these sports, dancing, dinners and philandering appear to be the most popular. But a surfeit of aimless pleasures becomes wearying and there is an endless search for new thrills. Under Socialism this wasted energy would he directed towards objects that would bring permanent enjoyment to the individual and to his fellows.

Socialism would not be a dull, dreary, state-regulated system as so many of its opponents suppose. As the whole of the people in free association would control the conditions of existence the aim would be to make that existence as satisfying as human ingenuity could contrive. Productive operations would be carried out under the best conditions that could be devised and harmful occupations would be abolished; people would be prepared to do without those few. things that could only he obtained at the cost of evil consequences to the producers. Humanity is essentially reasonable and where free to act reasonably does so. Educational facilities would be of the best, open to all, and not clouded by the necessity of learning in order to find the right road to employment and social security.

There are workers who, while agreeing that Socialism is desirable, despair of its accomplishment because they believe it would not work owing to the evil propensities which they think Capitalism has bred into the mass of the people. The basis of this view is “I am alright, but the other fellow is hopeless”; it is unconscious vanity. The evils about which complaints are made are the direct product of Capitalist conditions and will disappear with the latter. For example it does not require much imagination to appreciate that when money is no longer needed no one will sell his self respect for it; when bread and other things are as free to all as air is now no one can become a thief; when each participates equally in arranging social affairs no one can become a despot; when all the avenues of happiness are open to everybody no one can gain by bribery or corruption. And so one could go through the whole of the evils that have a corrupting influence today and lead to social misery.

Today the workers of the world produce the wealth of the world but they do so under oppressive conditions on behalf of a privileged class—the Capitalist class. In return for their labours the workers only receive, at best, on an average what it costs them to live meagrely ; but even this condition is doubtful, and the workers follow their occupations with shadow of unemployment darkening their lives and threatening to cast them into the depths of poverty. When the workers desire to cast off their backs the idle and privileged class that lives in comfortable security upon the results of the workers’ labours they will be able to so organise society that essentials of life will be produced with ease and all will he able to live in comfort and security. Then mankind will be on the road to universal happiness, but not before.

Gilmac.

A feeble criticism of Marx (1948)

From the January 1948 issue of the Socialist Standard

Modern criticism of Marx tends to crystalise itself into the concession that Marx discovered but unfortunately over-emphasised certain important truths about the nature of social development. Thus do his capitalist critics damn him with a faint praise. Mr. Christopher Hollis, broadcasting “On the Merits and Defects of Karl Marx” (Listener, 4/9/47) offered a slight variation of the theme by at least appearing to praise him with rather more than faint damns. Apart from that his treatment of Marx has no further claim to originality.

Marx himself, sensitive to the fact that his analysis of existing social forms demanded some insight, into his historical method, presupposed in the preface, to “Capital,” people who were willing to learn something new and therefore think for themselves. Viewing his motley crowd of critics by and large, might suggest that this presupposition erred on the side of over-optimism. Indeed many of Marx’s critics have resolutely refused to take him neat. Instead they have preferred to swallow him heavily diluted with secondhand versions and hear-say of others. The sharpness and flexibility of Marx’s method must, however, be judged by the way Marx himself used it. The fact that certain people have criticised Marx without troubling to discover what can be learned from Marx himself has not prevented them from offering their own versions “of what Marx really meant” or should have meant. It did not, of course, prevent Mr. Hollis.

Calling Marx’s Historical Materialism crude economic determinism he nevertheless conceded that economic circumstances have a great influence on men’s views and conduct. “It is a naive and adolescent crudity that they are the sole influence,” he added. It is more naively adolescent for Mr. Hollis to attempt to foist on Marx a view he never held and the fallacy of which he himself exposed. Education, philosophy, religion, law, and political struggles, as Marx revealed, in their action and reaction on each other, played an important part by in turn modifying and influencing the main trend of economic development. What Marx did say was that the key to the whole social picture was to be found in the economic relations under which men live, for it is this which constitutes the most important influence over men’s lives and through their lives their ideas, institutions, and general cultural activities.

For Marx all social development is historically conditioned. That men make history is central then to his doctrine. Not out of any old circumstances it is true but out of the material conditions they find to hand ; again for Marx the vital difference between a colony of bees, or an organisation of ants lies in the fact that men’s historically determined social behaviour is consciously formulated for given purposes and directed towards given ends. Mr. Hollis could even learn that Marx’s theory of Historical Materialism is not only a way of understanding history but through that understanding a way of helping to make it.

According to Mr. Hollis Marx’s economic determinism merely formulated the fact that human nature had been predominantly ruled by greed throughout history. To expect human nature to change, except by the most gradual evolution, was from the standpoint of Marx’s own logic and materialistic thesis, utterly irrational. Socialism being ruled by a spirit of love and service was therefore impossible. Capitalism may pass, said Mr. Hollis, indeed it is reasonable to think so, but on the day of its overthrow the new Socialists and Communists speaking the language of the classless society will establish themselves as a new governing class.

Marx’s belief in the coming of Socialism, was, according to Mr. Hollis, the rewriting of his ancient Jewish ancestral creed, Marx being the son of a Jew who became baptised in the Christian faith, Marx himself the inheritor of generations of Jewish faith translated the coming of the Lord in terms of the coming Communist revolution. Other “psychologists” have also explained Marx’s theories in terms of personal motivation. With that delightful lack of agreement and refreshing inconsistency which characterises “the finding” of these mind experts they have arrived at different conclusions to those of Mr. Hollis. Thus Marx’s theories of social revolution have been rationalised, as a desire to be revenged on his father for turning a Christian; the result of an ineradicable inferiority complex ; and even as a bye-product of an unhealthy liver. Doubtless a perverse ingenuity could think up a, dozen more reasons equally good—or bad. We for our part confess our utter inability to attempt an objective assessment of a many ideas in terms of subjective personal motivation. Generally speaking, such is the vast range of human motives that they are mostly too complex and obscure for people themselves to be really clear about them. For us the only satisfactory criterion of a man’s ideas is whether it is a more, or less objective representation of the processes he seeks to explain. Mr. Hollis’ attempts to deal with Marx’s theories from this aspect were, however, singularly unsatisfactory.

Mr. Hollis even described Marxism among other things as a psychology. Although he added “there is no psychologist today who would accept Marxian Psychology.” He thought that in the realm of psychological motivation there was infinitely more truth in Adler’s lust of power theory than in Marx’s crude economic determinism. Not only Marx himself but also his theories are shifted by Mr. Hollis into the realm of “psychological motivation.” The results of Mr. Hollis’ efforts in so doing are sensational. For if we are to believe Mr. Hollis it is not Marx’s view that it is the historical development of social productive forces which put men’s social needs and economic interests in a definite social cast but rather it is certain fixed and inflexible psychological attributes which bring about the social superstructure necessary for their expression. Mr. Hollis, with a wave of his psychological wand, is thus able to turn Marx the materialist into Marx the idealist. For Marx, if we are to believe Mr. Hollis, merely regarded historic social changes as but the derivative and outcome of a state of mind, albeit a greedy state of mind. Social productive relations are not then the prior and indispensible conditions for men’s existence but some ghostly process tacked on as it were to their immutable economic behaviour. All of which leads to the inescapable conclusion that Marxism is but the affirmation of the subjectivist claim that nothing exists but thinking makes it so. Mr. Hollis is probably unaware of the fact that it was Marx who with objective criticism and scientific acumen scourged those idealistic thinkers, such as Stirner, Bentham, etc., who held such notions! Incidentally, although innocently, Marx also scourged the idealistic Mr. Hollis.

Marx, however, denied that men’s economic interests and needs were to be found by an abstract psychological study of men’s minds; any more than they can be found in a physiological study of their bodies. Such interests are not psychologically derived but socially conditioned. More specifically, men’s social interests and economic exigencies have their origin not in the consciousness or unconsciousness of individuals but in the role these individuals play as members of a social group or class, in the organisation of production. Whether a man is born into that social group which makes him slave owner or slave, feudal lord or serf, employer or wage earner, depends not on his good or bad intent but on a set of productive relations indispensable to his existence and independent of his will. A mode of production based then on private property relationships, expresses the way different classes stand to each other in the division of wealth and the manner and extent in which the total social product is divided between them. In a society such as Capitalism the continued social well-being of the class who own the means of wealth production is dependent on the exploited class who are non-owners. It is true that hero and there an individual succeeds in changing his independent status, but for the overwhelming majority of the dependent class their social and economic conditions are given. Consequently their position of social servitude cannot be changed without revolutionising the productive relationships which make this servitude indispensable for the exploiters The interests of an individual are then but the expression of the common interests of his class. Whatever incidental differences may arise between members of the same social group they are subordinated and subservient to those common benefits that serve their class needs.

In the same way the conflict of class interests is never a conflict which originates and centres around abstractions like “human greed” and “lust for power.” These class conflicts themselves have their objective source in the antagonistic character of social relations based on class ownership of the means of living. The solution for the resolving of these class conflicts likewise is not the outcome of arbitrary choice or ethical preference. On the contrary it is the conscious realisation of concrete class needs made possible by the objective opportunities provided by the development of the social forces within present day society. For it is only when social production is freed from the restraint of private ownership which gives power over the lives of the many and hampers their- free development can a state of affairs—common ownership of the means of living—provide the social basis on which “the free development of each individual is the condition for the free development of all.” Which shows how much or how little Mr. Hollis understood of the subject he so kindly undertook to explain.

Nevertheless, Mr. Hollis assured his listeners that Capitalism was passing away. While Mr. Hollis was reticent about the shape of things to come he was at least emphatic that the shape would not be Socialism. Sombrely his political horoscope pointed instead to the emergence of a new ruling class. From his statement that the new Society was in its birth pangs we may deduce the fact that the exploited section will continue to be the working class. The economic function of the working class is, of course, to produce surplus value, i.e. the difference in value over and above the cost of their own subsistence and the value of the total product they produce. The appropriators will then be Mr. Hollis’ “new ruling class” who will monopolise the means of living. But it is this method of exploitation based upon the conversion of the dispossessed labourers’ working energies into a commodity and a section who appropriate their unpaid labour which is the starting point and distinctive feature of Capitalism as an historic mode of production. Nothing in essentials will be changed in Mr. Hollis’ “new society.” For a new ruling class to come into existence it must presuppose an entirely new set of economic conditions having entirely different social aims and economic objectives. To call managers, functionaries, bureaucrats, etc., operating and monopolising the means of production under the aegis of the State, a new ruling class is a misnomer. As appropriators of surplus value they would merely be fulfilling the same economic function as the entrepreneur and private corporations they had replaced. The method of exploitation would still exist in the form of capital and wealth accumulation ; or more strictly capital accumulation by the process of seeking, as far as possible, the expansion of surplus value, would be the dominant economic aim and objective. What distinguishes a ruling class is not a particular set of personalities who make up its ranks but the particular way a ruling class, by ownership of wealth resources, appropriates the labour of others. Mr. Hollis’ new ruling class would then be merely different individuals of the old ruling class. In the same way as the former Nazi leaders by forced purchases, appropriation and penetration into large scale industry did not, as some have fondly imagined, form the, nucleus of a new ruling class, but as recipients of surplus value, became part of the German Capitalist class.

It is also an illusion held by Burnham and other supporters of the so-called “managerial revolution” that State intervention weakens and finally destroys the basis of Capitalism. What, in actual fact, does happen is that with the monopolistic growth of modern Capitalism the political functions of the State become more and more integrated into the economic functions of capital. The purpose of political controls is then to ensure as far as possible the smooth running of the various branches of Capitalist production ; the easing of the friction between various sections of the Capitalist class; and the regularising and spreading over of some part of the capital resources of the ruling class in the main field of Capitalist production. State intervention, so far from weakening Capitalism, attempts to strengthen and preserve it in the interests of the Capitalist class as a whole. Even where a considerable measure of State control of industry has been carried out it merely means that the appropriation of surplus value is carried out by the State on behalf of collectivised capital. That is why Mr. Burnham, in his desperate attempt to find a new economic basis for his Managerial Society, merely discovered the novelty of another name for a form of highly developed State Capitalism.

Mr. Hollis also tried to foist on Marx an economic breakdown theory. He said Marx held that only by loans to undeveloped countries was Capitalism able to stave off the breakdown due to its inability to generate sufficient purchasing power ; finally, however, collapse would come. Nowhere did Marx put forward such a doctrine.

Mr. Hollis also thought that the increase of the wealth of the poor was a denial of Marx’s forecast about the development of Capitalism. To talk of the increase of the wealth of the poor is a comical phrase, like talking about the increased health of the permanently diseased. He argued that the worker’s standard of living has increased incomparably more than in all previous recorded history. Yet, strangely enough, never, perhaps, has history recorded such vast inequalities of income on the scale obtaining in Capitalism. What is true is that in spite of the incomparable increase in producing wealth in ever vaster quantities the poverty of the great majority in Capitalism is not merely a logical deduction from Marx’s theories but a physical and social fact.

Mr. Hollis complained that the taxation of the rich was becoming increasingly heavier. One can only say that a system of society, such as the present, where the State is compelled to spend vast resources on the upkeep of such things as armies, navies and armaments in general, can hardly constitute a satisfactory defence of capitalism. If anything it is another excellent reason why Capitalism should go.

That Mr. Hollis should read into what he calls the logic of Marx his own crudely naive and adolescent fatalism of a world in the grip of iron laws based on human greed is lamentable. What is perhaps more lamentable is that it should obtain licence to be performed publicly. Doubtless, however, the traditional “B.B.C. impartiality” is best preserved by letting its listeners hear Marx explained by non-Marxists or even anti-Marxists.

In conclusion we may add that from Mr. Hollis’ discourse on Marx we failed to discern either “the merits or defects of Karl Marx.” We did, however, in this respect discover the defects of Mr. Hollis.

Ted Wilmott

Juvenile Delinquency (1948)

From the January 1948 issue of the Socialist Standard

It is well-known that over a very large number of years the figures for Juvenile Delinquency have been constantly rising until, in recent years, they have reached such proportions as to constitute a formidable problem to the Capitalist State.

During the war years complete statistics were not available although what evidence there was showed a sharp increase. More figures, however, are now becoming available.

The “Report of the Commissioner of Police of the Metropolis for the year 1946” emphasises the seriousness with which the problem is regarded.

The Report (p.38) states “Statistics in age groups of the population within the Metropolitan Police District are not available to facilitate deductions as to the growth of crime among children but comparisons of the number of children arrested in 1946 with the figures for those of similar ages arrested in 1945 and 1938 make it only too clear that juvenile crime is increasing among the very young,” and later, “Nobody can fail to be impressed by the figures showing the large numbers of children up to 16 years old who are engaged in crime: the graphs of ages of persons arrested show very large peaks for these ages.”

The figures for juvenile crime approach very closely the figures for adult crime and the Report says of this (p.39) “Nearly half the arrests for burglary and housebreaking were of persons under 21 years of age and 25 per cent. were persons of not more than 16 years old. As regards shopbreaking, the position was even more deplorable. Two-thirds of the persons arrested were under 21 and 30 per cent, were schoolchildren.” The Daily Telegraph, commenting on this Report, says (11/7/47) “The distressing evidence of a fresh growth of juvenile criminality indicates that crime has no difficulty in enlisting thousands of new recruits each year.”

The figures given refer to the Metropolitan Police District only and it is interesting to note that in the Home Office Circular 807624 (1941), the proportion for the total indictable offences, in 1938, is given as: “committed by adults 21 years and over” 49 per cent., “committed by juveniles under 21 years ” 51 per cent. (36 per cent. of the whole total by those under 17 years of age). Many reports have been made on the subject and a large number of books written on it with, it would seem, every author advocating a different solution to the problem, ranging from the sadistic to the Utopian. More punishment, less punishment, corporal punishment, kindliness, State control of children, removal from environment, treatment by psychologists, punishment of parents, education of parents, more hostels, the abolition of slums—all these and more are the remedies of the reformist and humanitarian authors.

The overwhelming mass of delinquency is “crime” against property and, as the Capitalist system of society is based on the class ownership of the means and instruments of production and distribution, the ownership of private property and the inviolability of that ownership is, of necessity, the prime concern of the Capitalist class and of the State, which functions in the interests of that class. The full resources of law and jurisprudence are directed to the protection of the rights of property ownership and the monstrous machinery for the enforcement of those laws intrudes into, restricts and controls the life of every human being in contact with them.

So well is the conception of the inviolability of private property ownership absorbed into the ideas of society that it has become accepted as an absolute rule and its validity is rarely questioned. Therefore, the violation of these laws, even by children, results in the drastic and summary punishment of the offender.

Should private property ownership rights be violated it becomes of paramount importance to the property owning class to apprehend the violator and, having done so, to use the methods they consider best suited to prevent subsequent violation by that person and as a deterrent to potential violators. In past days society regarded juvenile law breaking as a symptom of inherited wickedness and children were imprisoned, transported or hanged, for their offences and until quite recently the most effective deterrent was considered to be severe punishment including imprisonment and birching. The ruling class have never been particular about the means used to gain their ends, but in the case of juvenile delinquency the results were disappointing to them.

In spite of the severity of punishment the delinquency always increased. Savage sentences neither reformed the delinquent nor served as a deterrent to others, and so the methods of dealing with the delir-qnent juvenile have gradually changed. Imprisonment and corporal punishment have largely given way to the approved or reformatory school where the young delinquents are “taught” rather than whipped.

Much is heard lately of the newest editions of these approved schools, known as rehabilitation centres. These modern institutions rely on a more scientific and psychological treatment of the young, dealing with them more from the angle of children who, because of various unfortunate circumstances, have strayed from the path of rectitude and can be reclaimed. Part of this psychological treatment is in kindlier and more tolerant usage and more freedom.

Reformists will claim that the changing law, the new institutions and the less harsh methods of dealing with the inmates are the results of long years of effort on the part of individuals and institutions interested in the reform of juvenile law and corrective establishments. Whilst it may be true that a large amount of data has been collected by such individuals and institutions on the behaviour and reaction of children to certain forms of treatment, and whilst some of this information may be utilized in these new establishments, it is much more true to say that the State has been forced into using new and somewhat experimental methods because of the failure of the old, and, if these have followed lines advocated by the reformists, it is not from any humanitarian motives but because such methods may offer a better chance of turning the potential criminals into what the State, on behalf of the ruling class want—docile and honest wage-slaves.

One point with regard to the modern corrective institution is invariably stressed—and it is a key to the insolubility of the,problem—that detention in it must be a deterrent to further delinquency and as such, must not be made too comfortable lest the children should prefer to be in it rather than go back to their homes and “live in conditions worse than those which would be tolerated in any place of detention and so find compensation in being punished.” (“Juvenile Delinquency and the Law,” p. 168, A. E. Jones.)

It is a moot point, however, whether the new methods reclaim or deter any greater number of juveniles from criminality than the old. What is certain is that both criminality and juvenile delinquency are increasing in spite of a more mobile and efficient police force using the most up-to-date methods and equipment.

Either method, old or new, of dealing with delinquency, must inevitably fail for the simple reason that neither are dealing with causes but both with effects—the effects of Capitalism and, like other effects of Capitalism, such as poverty, insecurity, ill-health, unemployment and war—the very social conditions that give rise to delinquency—there is no solution within the Capitalist system of society. Juvenile delinquency is the inevitable outcome of a system of society that is based on the class ownership of the means of living and which, as a consequence, determines that the vast majority of society shall be divorced from ownership and shall live in poverty and insecurity all their lives, exploited by a minority in order that they, the Capitalist class, shall have wealth, power and luxury. Juvenile delinquents are, almost entirely, working class children. Therefore poverty, whether absolute or relative, is the common denomination of delinquent juveniles, for from that poverty arise the immediate motives of the delinquency—insecurity, frustration, overcrowding, ill-health, ill-treatment, inhibitions and resentments arising from lack of opportunity for self-expression, feelings of inferiority engendered by their class position and “the perplexities, anxieties, frustrations and fatigue associated with employment, the bleakness of unemployment.” (“Child Welfare Outside the School,” p.201, Michael Kaye).

Whilst it is probable that all investigators into the problem of juvenile delinquency agree broadly upon the fact that the social conditions are the root cause of delinquency, they have no solution to the problem. A few reforms in the treatment of delinquents, a few modifications to the laws dealing with juveniles, a pious hope to mitigate poverty or abolish slums, a call for more opportunities and amenities for youth—these have no reality nor any relationship to the real problem.

Subjected to a Socialist analysis the problem is seen to be a manifestation of the social conditions of the time which, in themselves, constitute and produce crime.

The Socialist sees that the existing social conditions are the result of the class ownership of the means of life, that Capitalist relationships are property relationships, that goods are produced, not primarily for use, but for the purpose of making a profit. That the worker is robbed of the values he creates and gets back only sufficient to enable him to exist from week to week in poverty. That in a world of potential plenty the working class go in need always.

Whilst this system of society remains there will be juvenile, as well as adult, delinquency and crime, and no reforms will alter this. Rather, in spite of reforms, will delinquency increase ever further as the working-class position continues to deteriorate and the social conflicts and class antagonisms of Capitalism become yet more fierce as Capitalism becomes increasingly anti-social and decreasingly able to satisfy the needs of society.

Only the Socialist can offer the solution to this problem, which lies in the abolition of Capitalism and the establishment of Socialism, for when the means of life are commonly owned, there will be no more exploitation of man by man and consequently no poverty, no slums and no overcrowding. No need to steal or lie, to cheat or go hungry, no need to prostitute either body or mind or be overburdened with the cares of the economic struggle for existence because there, will be ample of the means of life for all and each will have free access to them. That is the world that is possible for children if their parents want it, but if the parents fail them then the children become the next generation of wage slaves.

J. R. Hall

Notes by the Way: “No Reparations, No Indemnities” (1948)

The Notes by the Way Column from the January 1948 issue of the Socialist Standard

“No Reparations, No Indemnities”

At the time the Communists seized power in Russia their favourite slogan for winning the support of the war-weary workers of Europe was “No Reparations : No Indemnities.” They bitterly attacked the Allied victors for trying to collect vast reparations from the defeated Central Powers, opposed the Versailles Treaty and encouraged the rebuilding of Germany as a great power. As Foreign Commissar Molotov was still saying after the outbreak of war in 1939, but before Russia was attacked, “We have always held that a strong Germany is an indispensable condition for a durable peace in Europe.” (Speech to Supreme Soviet, 31/10/39.) In 1929 the British Communists put forward the same plea at the General Election. They demanded “repudiation of all imperialist treaties and pacts—the Versailles Treaty, the Locarno Pact, the Kellog Pact” and “annulment of the Dawes Plan ” (a plan for the collection of reparations from Germany).

Now the tune is altered. Russia’s demand is for the payment by Germany of 10,000 million dollars as reparations. (Manchester Guardian, 15/12-’47.) Curiously the Daily Worker during the meetings of the four Foreign Ministers in London in December, while this was being discussed, was very coy about reporting it and managed on more than one occasion to report the debates without mentioning the figure. Perhaps they have a fear that readers may remember what they used to say about the futility and iniquity of reparations.

* * *

Why Workers Read the “Daily Worker”

The following is a notice issued by the Daily Worker and published by them as an advertisement in the News and ‘Book Trade Review and Stationers’ Gazette (6/12/47). It needs no comment.

“IT GETS AROUND. 

News has a habit of spreading. People soon get to know what’s happening. For instance, there’s a lot of talk in the sporting world about the consistent success of Cayton, the Daily Worker’s racing tipster. After all, 752 winners in the flat racing season is worth talking about! So you will understand why more people are asking for the Daily Worker. If you have difficulty in getting copies get in touch with us, we might be able to help.”

* * *

Some “Austerity” Fortunes

Among the fortunes reported in the Press recently on the death of the holders are the following:

Mr. H. Mountain, £1,122,616;

Sir W. McLintoch, £410,203;

Mr. Hermann Marx, £1,262,492;

Marquess of Lansdowne, £1,023,792;

Mr. Frank Hodges, one-time Secretary of the Miners’ Federation, £132,959.

Mr. Frank Hodges after leaving the trade, union movement went into the more lucrative occupation of company director.

All of the amounts given above are before payment of death duties

Another interesting news item recently was a comment by the City Editor of the Evening Standard (9/12/47) on the Ellerman fortune. After stating that Lord Ellerman holds £519,000 Deferred Stock of the Ellerman Shipping Lines, his holding being estimated to have a present value of over £2,500,000, and also holdings in a group of investment and brewery companies worth another £1,050,000 the Editor goes on as follows about the total present value of all investments :

“No firm estimate can be made of the Ellerman fortune today, but many people in the City believe that he would not lose in the comparison with his father. The first Sir John left £40 million.” (Evening Standard, 9/12/47.)

* * *

Grain Shortage?

”BUENOS AIRES, Wednesday. — The Argentine has been forced to burn £125,000,000 worth of crops, chiefly maize, says a Government statement tonight.

“It blames an economic blockade which keeps out machinery, cars, and rolling stock.

“Ports and railway terminals are jammed with grain which cannot he loaded in ships.” (Daily Express, 30/10/47.)

* * *

Growing Imperial Importance of Equatorial Africa

The following is an extract from an article on Equatorial Africa in the Times (14/11/47).

“As the British Empire in its old significance tends to shrink, with the gradual advance of its peoples to self-government and with the transfer to United Nations trusteeship of responsibility for certain territories at present administered by Britain, attention must he increasingly directed to the remaining British Colonies. That several of these are to be found in Africa is a fortunate fact in view of the withdrawal of British power from Egypt, the uncertain future of Palestine, and the consequent insecurity of the Mediterranean and Suez Canal route to those parts of the Commonwealth and Empire lying in the East.

“The search for alternative routes more secure from attack and for areas more conveniently situated for the disposition of imperial military resources must focus attention on West and East Africa, where there are great territories which, on examination, may be found to provide in great measure alternatives capable of making up for losses elsewhere. It might on the face of it seem that from a general move southwards into Africa only military advantages would accrue, such as safer lines of communication, areas suitable for British troops, and even alternative resources of man-power to succeed those lost by the changing conditions in India.”

* * *

Echo from Bikini

“King Juda of Bikini and his 165 subjects are to be uprooted afresh and shipped to a new island. Eighteen months ago their ancient atoll home was sacrificed to the atom bomb tests. Now, in the words of an official American Navy report, they are ‘a destitute, defeated, frustrated, poverty-stricken and hungry people.’

“Before the bombs exploded they were persuaded to make their ‘contribution to the advancement of science.’ Lock, stock and barrel they were moved to Rongerik Island, 120 miles away.

“There they found: 416 acres, instead of the 1,500 they were used to ; fire, which devastated their coconut trees ; and a lagoon with poisoned fish.

“They were driven to cutting palms and eating the leaves.” (News-Chronicle, 4/10/47.)

* * *

“The Greatest Social Reform Parliament in History.”

The Labour Party likes to make the claim that it is a Socialist party committed to the introduction of a Socialist system of society, but whenever its leaders set out to defend themselves against the Tory Opposition their line is always the very different one that they are a better social reform party than any of their predecessors. In a speech at Bermondsey Mr. Herbert Morrison is reported by the Daily Mirror (16/12/47) as making the claim thai “the present Parliament is destined to be the greatest social reform Parliament in history.”

He may prove to he right but the workers will discover that after all the Labour Party reforms have been put into operation Capitalism will still be with us.

* * *

I.L.P. History

In the Socialist Leader (6/12/47) Mr. F. A. Ridley writes an article on the theme “Had Rosa Luxemburg lived, Stalin might never have come to power in Russia, nor Hitler in Germany.” He writes:

“For had that amazing woman survived, she, at the head of German Communism, might have been able to establish a ‘Balance of Power’ in the new International which would have offset the Russian domination that subsequently monopolised it, in other words the ‘Third International’ might have become really international.”

Without going into elaborate arguments to answer this too-easy re-writing of history it should surely be obvious that as Socialism was impossible in 1918 because there were too few Socialists inside and outside of Russia, the Russian Government, if it had failed to control its instrument, the Third International, would have scrapped it and created other instruments for carrying out its foreign policy. We might just as well say that if Ramsay MacDonald had not been born or had succeeded in his first ambition, that of becoming a Liberal M.P., the Labour Party might have been Socialist.

Or perhaps now that Mr. Ridley has shown Stalin where he is wrong Stalin will mend his ways and do what Ridley thinks Luxemburg would have done.

* * *

A.R.P. Again

The following is from an Editorial, “Atom Age A.R.P.,” in the Daily Mail (12/12/47).

“To most people the revival of the A.R.P. service on a national scale is like a blow between the eyes. 

” ‘It is little more than two years since the end of the last war,’ they say, ‘ and now we seem to be getting ready for the next one. Has the world gone mad?’

“No, it has not gone mad, because it always was in that condition. But there are degrees of lunacy, and the wild state of this age is shown by the extent of the new Civil Defence plans.

“The aim in future is that everyone shall be trained in these warlike duties. The professional element will be provided by a full-time force of A.R.P. ‘commandos’ ready to move anywhere at a moment’s notice. An ‘incident’ in a future war may be the blotting-out of an entire town.”

In the meantime the war-time allies have finally ended the London meeting of the four Foreign Ministers quite unable to agree about the future of Germany. More or less open hostility now replaces the protestations of everlasting friendship. And the remedy is not more A.R.P. but the abolition of Capitalism.

Edgar Hardcastle

The Gravesend by-election by Eye Witness (1948)

From the January 1948 issue of the Socialist Standard

The Labour victory in this hotly-contested by-election—we were told at almost every meeting that the eyes of the world were on Gravesend— must have been a surprise to the Tories. They believed that the discontent of the masses with their living conditions would assure them of victory; but two things the Tories forgot: first, that the worker’s have a memory which they sometimes use and secondly, that the Labour Party are at least their equal at pulling stunts out of the bag.

The main issue of the election was “Which party can better administer Capitalism, the Labour Party or the Conservatives?” Througout the campaign, the question of Socialism—the abolition of private ownership of the means of life and the consequent ending of wage-labour and capital—was mentioned by neither Party.

It is true, of course, that Sir Richard Acland, the Labour candidate, mentioned the word “Socialism,” and when reaching rhetorical heights claimed that the mines and the Bank of England were “ours,” but he never once referred to the fact that the previous private owners were given State-bonds in exchange for their company shares, and that, in consequence, they are still drawing their profits in the form of interest.

For Acland, as for other Lahour Party members, Socialism means the nationalisation of the key industries. Thus he was able to argue that “Socialism” would enable the village shop-keeper and the small, businesses to operate as they do now. He did not point out to his audiences that Socialism is a system of society fundamentally different from Capitalism; that, whereas under Capitalism goods are produced to be exchanged (sold) at a profit, they will, under Socialism, be produced solely for use. He did NOT point out that Socialism means the end of all exchange, including the exchange of the workers’ labour-power for wages.

It is not surprising, therefore, that there was in this election nothing fundamentally different between the policy of the Labour Party and the Tories. Even Anthony Eden did not speak in opposition to nationalisation—what he did say was that “before further nationalisation is tried, we should first see how the nationalised industries work.”

The bulk of the Tory attack was concentrated on the administrative blunders of the Labour Party, the lack of “leadership and foresight” by the government. Acland’s reply was that the Labour Parly had done a better job of administration after this war than the Tories did after the last.

On the question of controls the difference between the Parties was more apparent than real. The Labour Party stood for the retention of controls ; the Tories for ending those which are “irritable without being really useful,” but for retaining those judged necessary.

As stated in the first paragraph, the Tories perhaps underestimated the importance of the workers’ memories. At every Labour Party meeting the unemployment figures between the wars were hammered home and blame for them rivetted on the Conservatives. It was amusing to hear how the Labour Party speakers blamed world conditions for the present shortages of foodstuffs reaching the workers’ tables, but ignored these same world conditions as the main cause of unemployment between the wars. They even proudly claimed to he responsible for the present-day relatively low unemployment figures. They boosted the export drive, but they did not tell their audiences what is going to happen when the export drives, so madly indulged in now by Britain, America, Canada, etc., etc., have glutted the world’s markets and when, in consequence, goods produced cannot he sold. That time is fast approaching.

The Labour Party flattered the electors by telling them that they were intelligent people and able to use their reason in deciding which party to support. And yet they did not shrink from making the biggest emotional appeal either party attempted. With about 3,000 present at a meeting, lights were put out and a miners’ choir, complete with helmets and little lights shining, entered the hall from the rear, walking in single file and singing as they came. The applause was tremendous, as it was after each hymn and song rendered by the choir in the darkened hall. Sympathy of other workers for the miners had been won and, in the speeches which followed, the audience was told that every Tory vote would be a smack in the face for those miners. As an emotional appeal this was terrific and worth many votes to the Labour Party. The Tory stunt of carrying around a potato, dressed in Conservative colours, was puny in comparison.

Lastly it need hardly he said that the Communist Party had its finger in the pie. They said, in a leaflet, that if the Tories got back the queues at the labour exchange would be 1,000 times worse than before the war. And we have only 45,000,000 population in Britain ! They’ve been so busy changing policies and organising stunts of one kind and another that they cannot be expected to remember that unemployment reached anything from one to two millions before the war. In brief, the Communists came out strongly in favour of the Labour candidate.

Readers will see, therefore, that the main issues of the much discussed Gravesend By-Election were concerned with the administration of Capitalism. Time will show that Capitalism, notwithstanding the Party in power, means endless poverty for the masses.

C.A.

Editorial: Russia also juggles with finance (1948)

Editorial from the January 1948 issue of the Socialist Standard

The more the Communists proclaim how different everything is in Russia the more events disclose how much that country resembles the other Capitalist States. The latest example is the decision of the Russian Government to issue a new currency in place of the old, thus doing what Belgium did in 1944 and what rumour says the British Government has been contemplating for some time past.

The Russian Government’s scheme, though rather complicated in detail, is simple enough in its broad intention. Wherever there is rationing and the sale of rationed goods at controlled prices a “black market” is bound to arise as those with enough money try to supplement their rations and get scarce high-priced luxuries. Russia was no exception though the “free” market in that country was officially recognised and anyone rich enough could buy what was offered at the enormous prices ruling there. The government’s scheme is to abolish rationing, reduce the prices of a few foodstuffs while raising the prices of other goods so that the new price level as a whole is raised to a point somewhere between the present low “rationed” prices and the present very high “free”market prices. At the same time they aim at a drastic reduction of the amount of money available to be spent, by the simple device of giving fewer new rouble notes in exchange for the old ones. If you have 100 roubles in cash in your pocket or at home you get only 10 in exchange. If you have 10,000 roubles deposited in a savings bank you get the full rate for the first 3,000 and two-thirds for the remaining 7,000 roubles. We can illustrate the effect by putting 10,000 roubles into pounds at the rate of exchange (32 to the pound) allowed to foreign diplomats in Russia. It means that a. man with £312 in a savings bank will find it reduced to £240. If his £312 was invested in a State Loan (except the most recent loan in 1947) he will have it cut to one-third of its value, £104. Wages are not being reduced but the workers, in addition to losing some of their cash and savings will be hit by the higher prices.

Of course the Daily Worker had to rush in and say what a fine thing it all is—”a step forward,” “a triumph for the Socialist economic system,” but the article (published on December 16th) indicated a certain amount of uneasiness. The writer, Mr. Andrew Rothstein, had to admit that “everyone will inevitably be affected to some extent because the new prices must lie somewhere between the ‘rationed’ and ‘off-rationed’ prices.”

Some other interesting points are thrown up by the new policy and by the Daily Worker comment on it. Just as Sir Stafford Cripps, at a time when prices are rising, tells the workers it will soon be all right because harder work will increase supplies and bring down prices, so the Daily Worker says “the existence of ample supplies . . . will soon more than compensate for the temporary difficulties.” This is printed in the “Worker” alongside the reproduction of a Russian “plenty to eat” poster which tells how much meat, fats, sugar, etc., etc. will be produced “in the five-year plan to be completed in 1950.”

During the war when news came out of Russia about the rouble-millionaires the Communists hastened to explain that this was a good thing and natural to a “socialist” country, and that we should note that it was all earned money and there were no speculators able to accumulate fortunes by speculation and black market operations as in Britain and U.S.A. Now we learn that the new policy is designed to hit “speculators, who amassed considerable sums ” and were, able to “buy up stocks, create artificial shortages and lower the purchasing power of the rouble.” (Daily Worker, 16/12/47).

It should be observed incidentally that the new policy, while reducing the big fortunes, does not by any means wipe them out. The speculator or other wealthy person with 1,000,000 roubles in State loans will still possess 333,000 roubles of investments and will, of course, gain to the extent that he can now buy goods at much lower prices than he formerly had to pay in the “free” market, prices which ranged up to ten and fifteen times pre-war prices. (Manchester Guardian, 15/12/47).

One wonders, too, how the Communists are going to wriggle out of their claim that the Russian Government, unlike other governments, does not descend to slick tricks in its dealings with workers’ savings. It is going to be very difficult to square what has just been done, with the claim made in 1946 that “money put into the State loan is, of course, absolutely secure” and that holders of bonds “can redeem them at their nominal value at any time within the 20-year period.” (Article by S. Grigoryev in Soviet News, published by the Soviet Embassy in London, 16/5/46.)

Readers of the Daily Worker (15/12/47) who read that “the new rouble of full value will be much stronger that the old,” will perhaps recall how the Communists jeered at the late Lord Snowden when he defended the economy cuts of 1931 on the ground that they would enable the pound to be strengthened and “look the world in the face.”

Doubtless one of the reasons for the new policy in Russia is to back up the campaign to capture the support of the European workers by pointing out that the West European governments, notwithstanding loans from U.S.A., are behind Russia in abolishing rationing. If the British Communists try to push the same policy over here they will be in the same position as those Conservatives who press for the abolition of controls and who argue that it would be better for the workers in the long run even though it would mean higher prices immediately. The truth is that for the workers it would be merely a choice of evils and so far, judging by results of by-elections, the majority of workers prefer the evil of rationing that they have got used to and are not enamoured of the Conservative alternative.

Socialists, of course, are not in favour of Capitalism anyway, whether with or without controls.