Showing posts with label The Owenites. Show all posts
Showing posts with label The Owenites. Show all posts

Friday, November 17, 2023

Engels as Utopian Socialist (2020)

From the November 2020 issue of the Socialist Standard

Engels became a socialist some time in 1842 after coming into contact with supporters of Robert Owen in Manchester. He contributed to their paper The New Moral World and was interested in their scheme to establish a network of communistic colonies. He was also aware of other groups in France with similar ideas. He was what he himself would later call a ‘utopian socialist’, which was not meant as a criticism of their aim but of why and how they saw socialism coming about.

In February 1845 he took part in a campaign organised by Moses Hess to popularise the idea of communism in their native part of Germany, now the city of Wuppertal. As part of this campaign a series of three meetings was held in Elberfeld. Engels spoke at two of them. In the first, on 8 February, he set out the case against ‘present-day society’ and for replacing it by communism.

His criticism of the existing system, which he called ‘free competition’, was that it was based on ‘individualism’ in the sense that each individual was left to fend for themselves to obtain the money to buy what they needed to live; this led to a war of all against all in which everyone competed against everyone else. The alternative to this ‘individualism’ was communism (or what Robert Owen and the Owenites he had met in England called ‘socialism’) where, instead of people competing against each other to get a living they would co-operate to produce and share out what they needed. As he put it:
‘In communist society, where the interests of individuals are not opposed to one another but, on the contrary, are united, competition is eliminated. As is self-evident, there can no longer be any question of the ruin of particular classes, nor of the very existence of classes such as the rich and the poor nowadays. As soon as private gain, the aim of the individual to enrich himself on his own, disappears from the production and distribution of the goods necessary to life, trade crises will also disappear of themselves. In communist society it will be easy to be informed about both production and consumption. Since we know how much, on the average, a person needs, it is easy to calculate how much is needed by a given number of individuals, and since production is no longer in the hands of private producers but in those of the community and its administrative bodies, it is a trifling matter ‘to regulate production according to needs’ (his emphasis).
Hess spoke the following week and, besides dealing with the objection that communism was against human nature and the question of who would do the dirty work, made it clear that as in communist society ‘the aim of the individual to enrich himself on his own’ would disappear so would money:
‘We all have to peddle our life-activity in order to buy in exchange the life-activity of other men – and what is the sum total of all our faculties and of all our forces, which we throw on the market and which we must turn into money, but our own whole life? It is not our body, which we only touch from the outside, but its real force that constitutes our life. When we sell this force of ours we ourselves sell our very life. Money is the mark of slavery; is it not therefore but human value expressed in figures? But men who can be paid, men who buy and sell each other, are they anything but slaves? How can we begin to escape from this traffic in men as long as we live in isolation and as long as each person has to work for himself on his own account in order to gain the means of existence? Who gives us the means of life, the means of our physical and social activity if we don’t gain them by buying and selling our own life?’ (www.marxists.org/archive/hess/1845/elberfeld-speech.htm)
At the time Engels saw a communist society as coming into being gradually and peacefully as a result of social reforms such as education for all workers and communist colonies for the unemployed paid for by a progressive tax on incomes. Later that year, as he and Marx clarified their ideas, they came to the conclusion that ‘present-day society’ was not based on everyone trying to exploit everyone else but on the exploitation of the ‘proletariat’ (the working class) by the ‘bourgeoisie’ (the capitalist class) and that a communist society would come about as the result of a political revolution in which the ‘proletariat’ would overthrow the rule of the ‘bourgeoisie’.

However, Engels never changed his view that communism was a society based on the common ownership of the means of life with production carried on directly to satisfy people’s needs and which by the 1880s he had come to call ‘socialism’.

The full speech can be found here: Speeches in Elberfeld, February 8, 1845
Adam Buick

Tuesday, June 20, 2023

Communism as a practical alternative (2023)

From the May 2023 issue of the Socialist Standard

Unlike Marx, Engels produced texts much more directly discussing communism. The first were two speeches in his home town Elberfeld in 1845, where he was trying to persuade good German burghers that communism (as socialism was then more generally known) was a good idea. While in them he describes how resources could be rationalised by everyone living in collective homes (showing that, while later protesting against utopianism, in his younger days he wasn’t above a little bit of speculation). But they do show part of the practical bent of thinking about how things owned in common could encourage rationalisation and improvement of living conditions. As in this passage:
‘if you think about this, you will find that human society has an abundance of productive forces at its disposal which only await a rational organisation, regulated distribution, in order to go into operation to the greatest benefit for all. After this you will be able to judge how totally unfounded is the fear that, given a just distribution of social activity, individuals would have to bear such a load of labour as would make it impossible for them to engage in anything else. On the contrary, we can assume that given this kind of organisation, the present customary labour time of the individual will be reduced by half simply by making use of the labour which is either not used at all or used disadvantageously.’
The context here is Engels noting that the institution of communism would see the abolition of many occupations and jobs created by the capitalist mode of production, which would mean that people could be freed up to do more directly productive work, and unemployment as such could be abolished.

As he noted:
‘In communist society it will be easy to be informed about both production and consumption. Since we know how much, on the average, a person needs, it is easy to calculate how much is needed by a given number of individuals, and since production is no longer in the hands of private producers but in those of the community and its administrative bodies, it is a trifling matter to regulate production according to needs.’
This sounds very optimistic, but, as we shall see, he had some basis for this analysis. But note, here information is the key, and the information is knowing what the supply and the demand are, in advance, rather than discovering through the market place. In the first instance, he gives an extended example of getting a bale of cotton from the USA to Germany:
‘Such a complicated way of transport is out of the question in a rationally organised society. To keep to our example, just as one can easily know how much cotton or manufactured cotton goods an individual colony needs, it will be equally easy for the central authority to determine how much all the villages and townships in the country need. Once such statistics have been worked out — which can easily be done in a year or two — average annual consumption will only change in proportion to the increasing population; it is therefore easy at the appropriate time to determine in advance what amount of each particular article the people will need — the entire great amount will be ordered direct from the source of supply; it will then be possible to procure it directly, without middlemen, without more delay and unloading than is really required by the nature of the journey, that is, with a great saving of labour power; it will not be necessary to pay the speculators, the dealers large and small, their rake-off.’
Indeed, he noted the middlemen would then be available for productive work. This text does talk of a central authority, but in terms of seeing statistics and book keeping as the basis for organisation, it seems of a piece with Marx’s discussions. Note, also, the assumption of no economic growth separate from population growth.

If Engels seems a bit hand-wavy with his ‘this will be easy’ approach, it should be borne in mind that he wasn’t just talking from abstract ideas, but with practical examples before his eye. In 1845 he published an article with the title Description of Recently Founded Communist Colonies Still in Existence in which he affirmed ‘communism, social existence and activity based on community of goods, is not only possible but has actually already been realised in many communities in America and in one place in England, with the greatest success’ and that ‘all communist colonies so far have become so enormously rich after ten or fifteen years that they have everything they can desire in greater abundance than they can consume.’ The accuracy or otherwise of these descriptions is not the point here but that they show how Engels saw the actual practical structure of a communist society.

He began with a description of the Shaker communities of America, noting their religious character is not essential to their communal organisation:
‘Each of these communities is a fine, well laid-out town, with dwelling houses, factories, workshops, assembly buildings and barns; they have flower and vegetable gardens, fruit trees, woods, vineyards, meadows and arable land in abundance; then, livestock of all kinds, horses and beef-cattle, sheep, pigs and poultry, in excess of their needs, and of the very best breeds. Their granaries are always full of corn, their store-rooms full of clothing materials, so that an English traveller who visited them said he could not understand why these people still worked, when after all they possessed an abundance of everything; unless it was that they worked simply as a pastime, having nothing else to do. Amongst these people no one is obliged to work against his will, and no one seeks work in vain. They have no poor-houses and infirmaries, having not a single person poor and destitute, nor any abandoned widows and orphans; all their needs are met and they need fear no want.’
Note, again, the emphasis on abundance. This also relates to his observation that:
‘In their ten towns there is not a single gendarme or police officer, no judge, lawyer or soldier, no prison or penitentiary; and yet there is proper order in all their affairs. The laws of the land are not for them and as far as they are concerned could just as well be abolished and nobody would notice any difference for they are the most peaceable citizens and have never yielded a single criminal for the prisons.’
The laws hadn’t been abolished, but the conditions for their operation had been obviated. In terms of their practical organisation, Engels noted: ‘They enjoy (…) the most absolute community of goods and have no trade and no money among themselves.’ He quoted a traveller describing their society:
‘The board of trustees keeps all the books and accounts in a public office, and the books are open for all members to see, as often as they choose. […] each family has a separate domestic establishment and lives together in a large, handsome mansion; and all get every article required, and as much as they want from the common stores of the Society, and without any payment. A deacon is appointed to each family, whose business is to see that all are provided with every thing they want, and to anticipate their wants as far as possible.’
Furthermore:
‘The property of the Society is vested in the board of trustees, which consists of three persons, oversees the whole establishment, directs labour and carries on transactions with neighbours. They have no power to buy or sell any land without the consent of the Society. There are of course also foremen and managers in each department of labour; however they have made it a rule that no commands are ever given by any one, but all are to be persuaded by kindness.’
(It should be added that the ‘families’ of the shakers were arbitrary divisions, as their beliefs forbade marriage).

Engels also discussed the Owenite colony of Harmony in Hampshire. The description is similar to the American colonies, but he notes:
‘…the members of the community were not the sole owners of the establishment, but were governed by the Directors of the Society of Socialists, to whom the establishment belongs, misunderstandings and dissatisfaction arose at intervals from this too. […] these directors are chosen annually by the congress, to which each local Society sends a member, and they have full, unrestricted powers within the Statutes of the Society, and are responsible to the congress. The community is thus governed by people who live outside it, and in these circumstances there cannot fail to be misunderstandings and irritations; but even if the experiment at Harmony were to fail in consequence of this and of financial problems, which however is not in the slightest degree in prospect, this would only be one further argument for community of goods, as these two difficulties have their cause only in the fact that the community has not yet been fully realised.’
This is an instructive observation when it comes to understanding Engels’ notions of communism: the community of goods must be self-organised.

Hence, in his speeches at Elberfeld, he suggested that the community of goods would come about in different ways in different countries, even proposing that colonies such as Harmony might be the way to communism in England, and that different routes might be applied in France and Germany; it would be a conscious and fundamentally democratic decision. Although these colonies came in for a serious kicking in the Communist Manifesto, the point remains that they did serve as focal examples for Engels’ understanding of how socialism could or would be run.
Pik Smeet

Wednesday, October 23, 2019

Aspect: Labour Time Vouchers (1971)

The Aspect column from the May 1971 issue of the Socialist Standard

A reader has asked us why the Socialist Party of Great Britain speaks of free access to consumer goods in Socialism rather than of the distribution of consumer goods by the labour-time vouchers mentioned by Marx.

The first to suggest the use of labour-time vouchers instead of money was Robert Owen in 1820. The Owenites stood for a society of co-operative communities. Each community would own its own means and instruments of production and each member of a community would work to produce what had been agreed was needed and in return would be issued with a note certifying for how many hours he had worked; he could then use this note to obtain from the community’s stock of consumer goods any product or products which had taken the same number of hours to produce. Owen believed that this co-operative commonwealth could begin to be introduced under capitalism and in the first half of the 1830s some of his followers established “labour bazaars” on a similar principle: workers brought the products of their labour to the bazaar and received in exchange a labour-note which entitled them to take away from the bazaar any item or items which had taken the same time to produce, after taking into account the costs of the raw materials. These bazaars were failures but the idea of labour-time vouchers (or “labour-money”) appeared in substantially similar forms in France with Proudhon and in Germany with Rodbertus and is one source of currency crank theories.

Those who advocate labour-time vouchers can have two different circumstances for their use in mind. Like Robert Owen, they can advocate their use within the context of co-operative ownership and production for use or, like Proudhon, within the context of private ownership and production for sale. Marx exposed as currency cranks those who wanted labour-time vouchers and buying and selling. Where goods are produced for sale, he pointed out, sooner or later one commodity will emerge as the one which can be exchanged for all the others. This special commodity is of course money and its appearance signifies the end of barter. To perform this role of the medium of exchange the commodity must itself have an exchange value. Money is basically a special commodity, a fact which is obscured by the later evolution of money where almost worthless coins and notes have come to circulate as tokens for the money-commodity. Those who advocate the abolition of money and its replacement by labour-time vouchers while retaining production for sale are thus, said Marx, quite confused; wherever there is production for sale one commodity must become money (see his comments in his Critique of Political Economy on the theories of John Gray).

Within the context of common ownership and production for use, however, labour-time vouchers are quite feasible. Then they are not money at all, but merely a method of sharing out consumer goods. As Marx said of the Owenites’ plan for a co-operative commonwealth:
  Owen’s ‘labour-money’, for instance, is no more ‘money’ than a ticket for the theatre. Owen presupposes directly associated labour, a form of production that is entirely inconsistent with the production of commodities. The certificate of labour is merely evidence of the part taken by the individual in the common labour, and of his right to a certain portion of the common produce destined for consumption (Capital, Vol &, Moscow, 1961, pp. 94-5).
Engels says much the same in his comments in Anti-Dühring on Owen’s labour-notes.

The German Social Democrats of the 1860s and 1870s inherited the idea of distribution according to labour-time from Rodbertus. They envisaged a system where, with the means of production vested in the community, workers would be given a labour-time voucher entitling them to a share of the social product; thus they would, as Lassalle put it, get “the full product of their labour”. This phrase is confused because, if everything produced in a given period is distributed in full for consumption, then nothing would be left over to renew and expand the means of production or to store in the case of emergency. This point was made by Marx in one of his criticisms of the Gotha Programme which was adopted by the German Social Democrats in 1875 when the followers of Lassalle united with the group with which Marx and Engels had been working. In the course of this criticism Marx made his well-known statement about labour-time vouchers in Socialism (“not as it has developed on its own foundations, but . . . just as it emerges from capitalist society”):
  The individual producer . . . receives a certificate from society that he has furnished such and such an amount of labour (after deducting his labour for the common funds), and with this certificate he draws from the social stock of means of consumption as much as costs the same amount of labour. The same amount of labour which he has given to society in one form he receives back in another (Selected Works, Vol II, Moscow, 1958, p. 23).
Supporters of state capitalist Russia have used this passage to try to show that Marx thought that  money — and of course gold does function as the money-commodity in Russia — could exist in Socialism. This is so much nonsense since elsewhere Marx specifically stated that labour-time vouchers were not money (see his comments on Owen quoted earlier):
  The producers may . . . receive paper vouchers entitling them to withdraw from the social supplies of consumer goods a quantity corresponding to their labour-time. These vouchers are not money. They do not circulate (Capital, Vol II, Moscow, 1957, p. 358).
Marx nowhere states that labour-time vouchers were the only method of distributing wealth in Socialism; they were only one possible method. [1]  The actual method adopted would depend on the circumstances (Capital, Vol I, pp. 78-9). Alternatives were suggested, as for instance by Edward Bellamy in his Looking Backward written in 1887. He wanted everybody in Socialism to be issued with a credit card entitling them to obtain an equal amount of consumer goods. In any event, later in his criticism of the Gotha Programme Marx made it quite clear that if labour-time vouchers were used in Socialism this would be a temporary measure imposed by the comparatively low level of technology. In time, he saw, when the “springs of co-operative wealth flow more abundantly” Socialist society could abandon labour-time vouchers (or whatever) and go over to “from each according to his ability, to each according to his needs” that is, to free access to consumer goods.

In 1875 the then existing level of technology might well have meant that many consumer goods would unavoidably be available only in limited quantities for some years after the establishment of Socialism. But in the hundred years since, technical progress has made it possible for the springs of co-operative wealth to flow more abundantly than Marx could have foreseen so that free distribution—to each according to his needs—can be implemented almost immediately after Socialism has been established.

Potential abundance has made the idea of labour-time vouchers quite outdated.

Notes:
[1] Baran and Sweezy are quite wrong when they write in their Monopoly Capital (Penguin, p. 325) that “Marx emphasised in his Critique of the Gotha Programme that the principle of equivalent exchange must survive in a socialist society for a considerable period as a guide to the efficient allocation and utilization of human and material sources”. For Marx there was no “must” about labour-time vouchers (and so more or less “equivalent exchange”); they were just one way of allocating consumer goods before free access could be introduced.

Sunday, October 6, 2019

Letters: Socialism and Communism (1995)

Letters to the Editors from the January 1995 issue of the Socialist Standard

Socialism and Communism

Dear Comrades,

It was not Lenin who first claimed any difference between socialism and communism, but Marx and Engels, and the Manifesto of the Communist Party proves this. When written it could not have been thought of as the Socialist Manifesto because Marx and Engels wanted to distance themselves from the utopian socialists such as Fourier and Owen. It was after all Marx and Engels who put the science into socialism with a vision of a much higher phase in human and social development. Also in Engels’s time "Socialism was on the continent at least respectable, Communism was the very opposite" as Frederick pointed out.

Today, the once communist parties in the once socialist countries of eastern Europe now regard themselves as democratic socialists after the counter-revolutions reduced them to kow-tow to the politics of reformism. Add to this the socialist parties in western Europe whose manifestos are about reform rather than revolutionary transformation.

We should recognise that socialism can only be at its most radical in the period of transition between capitalism and communism, in other words the first stage of communism. Finally Marx and Engels knew that the spectre haunting Europe was communism not socialism.
James Nugent, 
Old Coulsdon, Surrey


Reply:
Your letter confirms what we said: that Marx and Engels used the words "socialism" and "communism" interchangeably to refer to a system of society based on the social, or common, ownership of the means of production, and not, as you imply, to two different stages in the future evolution of society.

In the 1840s, as Engels explained, they used the word "communist" because at that time the word "socialism" was used to refer to the followers of Robert Owen in England and Charles Fourier in France. Indeed, the Owenites actually invented the word (the first recorded use of it was in the London Cooperative Magazine of November 1827) and called themselves Socialists. Marx and Engels didn’t want to be associated with the advocacy by these groups of going to America or into the countryside to establish small-scale communities based on common ownership as the answer to capitalism, as what they advocated was political action by the working class to establish common ownership on a society-wide level. So they called themselves Communists and wrote the Communist Manifesto (rather than the Socialist Manifesto).

By the 1880s, however, these groups no longer existed and the word "socialism" was no longer associated with setting up small-scale communities, and the emerging working-class movement for a society of common ownership and democratic control was able to call itself "socialist". So, when William Morris. Eleanor Marx and others broke away from the Social Democratic Federation with Engels's approval in 1884 they called their new organisation the Socialist League. And Engels himself called one of his best (perhaps his best) writings Socialism, Utopian and Scientific (rather than Communism, Utopian and Scientific).

In short, what in the 1840s Marx and Engels had called communism Engels in the 1880s called Socialism.

In the 20th century usage changed again. After the Bolshevik seizure of power in Russia in 1917 Lenin called his party "communist" to distinguish it from the "socialist” parties of western and central Europe which had been founded in Engels's day but which by then had become openly and hopelessly reformist. But he also made "socialism" a period of transition, when there would be full state ownership with everyone becoming a state employee, between capitalism and communism (by which he meant what Marx and Engels had called indifferently "socialism" or “communism" and what we call "socialism”, i.e.. a society of common ownership without money, wages, the state, etc). But this was state capitalism, not real socialism.

In 1936 Stalin proclaimed that Russia had become a "socialist country” and when the Russian army overran eastern Europe after the war it set up puppet regimes in the various countries there which, together with Russia. Stalin and his supporters called “the socialist countries". You seem to have fallen for this myth when you talk about the “communist parties" which used to govern "the socialist countries". But this — that Russia, etc were socialist — is the Big Lie of the 20th century. They were never socialist: they were always state capitalist.

You are right, however, that, since they were ousted from power by street-level popular action in 1990, these formerly ruling parties have transformed themselves into ordinary reformist parties competing with other parties for the job of running capitalism in their countries. Unfortunately, some of them, as in Hungary and Bulgaria, have chosen to call themselves "the Socialist Party". Needless to say, as far as we are concerned, they are no more socialist today than they were communist yesterday. They have nothing to do with us and are not genuinely socialist parties. 
Editors.


Swedish Searchlight on Capitalism

Dear Editors,

The Swedish section of Amnesty International has now existed for 30 years. Their general secretary said during an interview: "this means that we are still needed, and at the same time we will continue to throw a searchlight on governments who oppress individuals, collectively and otherwise with torture, deportation, violence and the death penalty. We hope however that sooner or later we will not be needed".

No doubt a Swedish entry into the Common Market will certainly increase rising racism here. It would be interesting to hear the SPGB's examination and analysis concerning the performance of Amnesty encased by global capitalism.
Obajimi Holloway, 
Stockholm, Sweden


Reply:
We don’t want to knock people who are doing something to try to help individual victims of state oppression, but it is clear that what Amnesty is doing is no more than this, carrying a few of the wounded off a battlefield without being able to stop the battle continuing.

We say with absolute confidence that as long as global capitalism is allowed to continue Amnesty’s work will never be done. As long as capitalism lasts there will be states and as long as there are states there will be oppression, since states are by nature oppressive institutions whose job is to maintain the status quo in the interests of an entrenched ruling class.
Editors


Blue nose out of joint

Dear Sirs,

Despite being a Young Conservative, I regularly buy your magazine and although I do not agree with much of its content, I read the articles within it with great interest in order to obtain a different perspective on the political issues affecting the world.

It was therefore very disappointing to read the article by Scorpion in the November 1994 issue which revelled in the supposed demise of the Young Conservatives. Surely a party that wishes to put its views over in a democratic setting would welcome the opportunity for young people to take part in political debate whatever their political persuasion.

The article also contained two glaring inaccuracies which require correction:

1. The Young Conservatives are not for the chop; both the Prime Minister and the Party Chairman have pledged their support for the organisation.

2. You do your article no favours by merely repeating the ’’smears" from the left wing press regarding supposed links with racist groups and acts of hooliganism.

Finally the youth wing of the Party will not merely "fade away". There is to be an "Autumn Offensive" recruitment campaign, which should see the Young Conservatives' membership increase dramatically. This will lead to more people taking part in political discussion and activity, something which you as a democratic party will surely welcome.
R. M. Lees,
Vice-Chairman,
Worthing and Shoreham Young Conservatives.


Reply:
Our statement that the Young Conservatives were "set for the chop" was based on articles which appeared in the national press.

As for your denial of “supposed links with racists groups and acts of hooliganism", well, where have you been, because these have been reported in the media many, many times?

For example, a recent TV programme about John Major's "war on yob culture” showed how young Tory yobs in Oxford had smashed up a posh restaurant there, while a headline in the Tory Glasgow Herald (12 November 1990) read "Punch-up mars Young Conservative conference".

And you should know about the well-publicised links which such prominent young Tories as John Bercow, Stuart Millson, etc., had with the BNP. Indeed. Millson left to join the BNP.
Editors.

Wednesday, November 1, 2017

Marx and England before 1849 (1985)

From the February 1985 issue of the Socialist Standard

It was no doubt Engels who first drew Marx’s attention to the key importance of England for any adequate theory of communism. His father was a part-owner in a firm engaged in cotton spinning in the Rhineland as well as in Manchester, then the capital of the world cotton industry.

In November 1842 Engels went to England to work in the office of the Manchester factory of Ermen and Engels. He was already a communist in the sense of wanting to see established a society based on common ownership in which co-operation would replace competition and he soon made contact with like-minded people in England. From November 1843 he was contributing articles to The New Moral World, the organ of Owenite socialism. He was also a regular reader of the Chartist weekly, the Northern Star, then published in Leeds, though he did not contribute any articles to it at this time. He did, however, meet one of its journalists, George Julian Harney (1817—1897), who was later to prove a valuable contact between English and Continental revolutionaries.

If Engels had gone to Manchester earlier on in 1842 he would have witnessed the second wave of Chartist agitation and unrest in Britain. The "People's Charter" was a document that had been drawn up in 1838 in the form of a Bill to be presented to the House of Commons providing for six changes in the electoral law: universal suffrage for men. secret ballots, equal electoral districts, payment of MPs, no property qualification for MPs. and annual parliamentary elections. In itself this was a demand to continue and complete the "Reform" of Parliament begun with the Reform Act of 1832 enfranchising the capitalist class, or "middle" class as it was then known, but still leaving the workers voteless. A number of Radical MPs, as representatives of the capitalist middle class, had in fact played a part in drafting the Charter, regarding it as a means of further undermining the political power of the landed aristocracy.

The working class, however, whose acceptance of the Charter had been prepared by the trade union agitation and by the formation of Working Men’s Associations up and down the country in the preceding years, gave the Charter a social content — rejection of the economic system of "profit- mongering" and "wage-slavery" which the capitalist class had introduced and was extending — which was to make Chartism essentially a political movement of the working class, distinct from and hostile to the capitalist middle class.

The recognised leader of the Chartists in the 1840s was a former Irish MP and landlord, Feargus O’Connor (1794—1855). O’Connor was a very effective orator and enjoyed immense popularity among the working class. The Chartist movement also had its political thinkers such as James "Bronterre" O'Brien (1805—1864). dubbed by O'Connor "the Chartist schoolmaster" O'Brien had translated into English in 1836 the seminal work of European communism. Buonarotti’s History of Babeufs Conspiracy for Equality (1828). In the columns of the Northern Star and in other Chartist and Radical papers. O’Brien never ceased to emphasise the antagonism of interest between the working class and the middle class and to insist on the need for the workers to gain political power — through the implementation of the Charter — before they could do anything effective to improve their social position.

The Chartists faced competition, in their bid for working class support, from the Anti-Corn Law League which had been set up in 1838 to campaign for the repeal of the Corn Laws. Its most prominent leaders were the industrialists John Bright (1811—1889) and Richard Cobden (1804—1865). The Corn Laws, passed after the end of the Napoleonic Wars to protect British (including Irish) agriculture from foreign competition, imposed a duty on imports of corn whenever the price fell below a certain amount. The effect was to maintain the price of corn and so of bread, in Britain at an artificially high level.

The Anti-Corn Law League tried to attract working class support by promising a "cheap loaf". The Chartists replied that, as a dispute between the capitalist and landlord classes, the repeal of the Corn Laws was not an issue that concerned wage-workers but a diversion from what ought to be their main aim: the winning of political power through the implementation of the Charter. The Chartists also pointed out that a "cheap loaf" would mean cheap wages.

A first petition for the Charter had been rejected by the House of Commons in May 1839. A second, more radical, petition was presented to Parliament in May 1842. As in 1839 it was rejected and. as in 1839, unrest broke out. In July and August, a few months before Engels’ arrival, the North of England experienced a wave of strikes. These were primarily industrial in that the basic aim was to restore the wage levels that had prevailed in 1840, but the demand for the implementation of the Charter was also put forward by some of the strikers. It was suggested at the time that some of the strikes had been deliberately provoked by the employers in order to create unrest as a means of putting pressure on the government to repeal the Corn Laws.

Engels was planning to write a book on the social history of England and, for this, besides reading Chartist and Owenite literature and participating in their meetings, he read the works of English writers on economic theory, or ’political economy" as it was then called. On the basis of this reading he sent an article entitled "An Outline of a Critique of National Economy" to Marx in Paris (who had meantime, during the winter of 1843-4, himself become a communist) which was published in the first — and only issue of the Deutsch–Französische Jahrbücher in February 1844. This article was a criticism of the theories of the political economists, as represented by Adam Smith (1723—1790), David Ricardo (1772— 1823) and his disciples James Mill (1773— 1836) and J.R. McCulloch (1789—1864). and by Malthus (1766—1834) and the Frenchman J.B. Say (1767—1832). It greatly impressed Marx and helped orient his studies towards economics. In fact, the "critique of political economy" which Engels had suggested needed to be done was to become virtually Marx's life work.

Marx began his study of economics by reading — in French translation — the authors mentioned by Engels and made some preliminary notes for a work on economics of his own, some of which have survived as the ’Paris Manuscripts" of 1844. Marx does refer once or twice to England in these manuscripts noting, for instance, that landed property there was no longer feudal but money-making, a point he was to incorporate into his later analyses of English history, society and politics.

Engels remained in Manchester until August 1844. The book he wrote on his return to Germany was not the social history of England he had originally planned but one describing the terrible conditions under which the working class lived in England which, according to the theories of the political economists, was the richest country in the world. This book, The Condition of the Working Class in England, was published in Leipzig in May 1845 and also influenced Marx’s thinking, this time with regard to the political development of the working class. In the chapter on "Labour Movements", which gave a very sympathetic account of trade unionism, Chartism and Owenite socialism, Engels outlined a pattern for the evolution of the working class movement under capitalism. Working class resistance to capitalist class domination first took the form, said Engels, of individual acts of crime, then of machine-smashing before evolving into trade unionism with the strike, or "turn-out", as its weapon. Out of trade unionism, Engels went on, had developed Chartism, a general political movement of the working class against the capitalist class:
Chartism is the compact form of their opposition to the bourgeoisie. In the Unions and turnouts opposition always remained isolated: it was single working-men or sections who fought a single bourgeois. If the fight became general this was scarcely by the intention of the working-men; or, when it did happen intentionally, Chartism was at the bottom of it. But in Chartism it is the whole working-class which arises against the bourgeoisie, and attacks, first of all, the political power, the legislative rampart with which the bourgeoisie has surrounded itself (p.254).
Finally, said Engels, the Chartist movement could be expected to become explicitly socialist (communist).

Marx was expelled from France in February 1845 and went to live in Brussels. Engels joined him there a few months later. In July and August they went to England for six weeks. Marx's first visit to the country. In London they met Wilhelm Weitling (1809-1864), the German tailor whose communist writings had influenced the German artisans in Paris who had helped convert Marx to communism. They also met Harney, still a journalist on the Northern Star, now edited from London, who agreed to accept articles from Engels, the first of which was published in September. From London Marx and Engels went on to Manchester where they spent most of the time they were in England. Marx was particularly interested in reading some books on economics which he had been unable to obtain on the Continent. particularly those by English-language authors who criticised the existing economic system from a communist or working class point of view such as the Owenite, William Thompson (1785 -1833), from whose An Enquiry into the Principles of the Distribution of Wealth he made extensive notes.

Another of these writers who particularly impressed him was John Francis Bray (1809-1897). Bray, a journeyman printer, was the author of Labour's Wrongs and Labour's Remedy which had been published in Leeds as recently as 1839. He, like Thompson, had been influenced by Owenite ideas and advocated "the system of community possessions" as the long-term ideal society. As a transition to such a communist society, he proposed the exchange of goods according to their labour content.

In the criticism of Proudhon s views which Marx wrote in the winter of 1846 7 and which was published, in French, as The Poverty of Philosophy in Brussels in July 1847. Marx quoted extensively from Bray (whose book he described as "remarkable ”) in order to show that Proudhon's views had been anticipated in England:
Anyone who is in any way familiar with the trend of political economy in England cannot fail to know that almost all the Socialists in that country have, at different periods, proposed the equalitarian application of the Ricardian theory. We could quote for M. Proudhon: Hodgskin, Political Economy, 1827; William Thompson. An Inquiry into the Principles of the Distribution of Wealth Most Conducive to Human Happiness, 1824; T.R. Edmonds, Practical Moral and Political Economy. 1828. etc., etc., and four more pages of etc. We shall content ourselves with listening to an English Communist. Mr Bray (p.77).
Later on, after he had moved to England. Marx read other works in this tradition and was particularly impressed by another book by the same Thomas Hodgskin (1787-1869) he mentions here, Labour Defended against the claims of Capital (1825), describing it in Capital as “this admirable work". Hodgskin, a retired naval lieutenant, was not in fact an Owenite but he was staunchly pro-trade union and pro-working class.

In a sense Marx, too, could be classed among those who "proposed the equalitarian application of the Ricardian theory" since he also started out from Ricardo's labour theory of value and analysis of society divided into a landlord class, a capitalist class and a working class and gave these theories a pro-working class interpretation. In fact, until he made the key theoretical distinction (in 1858) between "labour" and "labour power ”, which enabled him to realise that what workers sold to the capitalists for wages was not their labour (the product of their labour, what they produced) but their labour-power (their mental and physical energies, their capacity to work), Marx's explanation of how the working class was exploited under capitalism was not basically different from those of writers like Thompson, Hodgskin and Bray.

They thought that workers were paid less than the value of what they produced because competition held wages, as the price of their "labour", down to subsistence levels, the surplus over and above this being the source of the profits of their capitalist employers. Marx's solution — "union", "combination", "association", "co-operation". to overcome the effects of competition — was not all that different either. Marx in fact always had the highest respect for the original "English Socialist". Robert Owen (1771-1858). who made himself the champion of this idea.

But, unlike Owen, Marx held that the working class would have to gain control of political power before anything lasting could be done to improve their lot. This once again was derived from the English working class movement. In the final section of The Poverty of Philosophy on "strikes and combinations of workers”, Marx puts forward the same pattern for the evolution of the understanding and organisation of the working class as Engels, basing himself on the experience of Chartism, had done in 1845:
England, whose industry has attained the highest degree of development, has the biggest and best organised combinations. In England they have not stopped at partial combinations which have no other object than a passing strike, and which disappear with it. Permanent combinations have been formed, trades unions, which serve as ramparts for the workers in their struggles with the employers And at the present time all these local trades unions find a rallying point in the National Association of United Trades, the central committee of which is in London, and which already numbers 80,000 members. The organisation of these strikes, combinations, and trades unions went on simultaneously with the political struggles of the workers, who now constitute a large political party, under the name of Chartists.
  The first attempts of workers to associate among themselves always take place in the form of combinations. Large-scale industry concentrates in one place a crowd of people unknown to one another. Competition divides their interests. But the maintenance of wages, this common interest which they have against their boss, unites them in a common thought of resistance—combination. Thus combination always has a double aim. that of stopping competition among the workers, so that they can carry on general competition with the capitalist. If the first aim of resistance was merely the maintenance of wages, combinations. at first isolated, constitute themselves into groups as the capitalists in their turn unite for the purpose of repression, and in face of always united capital, the maintenance of the association becomes more necessary to them than that of wages. This is so true that English economists are amazed to see the workers sacrifice a good part of their wages in favour of associations, which, in the eyes of these economists, are established solely in favour of wages. In this struggle — a veritable civil war — all the elements necessary for a coming battle unite and develop. Once it has reached this point, association takes on a political character.
    Economic conditions had first transformed the mass of the people in the country into workers. The combination of capital has created for this mass a common situation, common interests. This mass is thus already a class as against capital, but not yet for itself. In the struggle, of which we have noted only a few phases, this mass becomes united, and constitutes itself as a class for itself. The interests it defends become class interests. But the struggle of class against class is a political struggle (pp 194 5).
The same pattern is again described in The Manifesto of the Communist Party (1848) and it remained Marx's view to the end of his life and was to be the basis for his intervention in the English working class movement in 1852-6 and in 1864-72.

Meanwhile, in 1846, the Anti-Corn Law League had achieved success when the British Parliament voted to repeal the Corn Laws with effect from 1848. This marked the beginning of the era of Free Trade for Britain and was a significant economic event which Marx, as a student of economics, did not let pass without comment. In September 1847 he attended a conference on Free Trade in Brussels. He had intended making a contribution to the discussion, but was denied the opportunity of doing so. The text of his intended speech was later published in the Belgian French-language journal L'Atelier. It was also translated into English and published in the Northern Star, of which Harney was now the editor, on 9 October and so became the first article by Marx to appear in print in England (and indeed in English). Marx returned to the question of Free Trade in another speech in Brussels on 9 January 1848 in which he declared himself in favour of Free Trade on the sole ground that it would hasten the revolutionary confrontation between the working class and the capitalist class:
The English workers have made the English free-traders realise that they are not the dupes of their illusions or of their lies; and if, in spite of this, the workers made common cause with them against the landlords, it was for the purpose of destroying the last remnants of feudalism and in order to have only one enemy left to deal with (pp.241-2).
In November and December 1847 Marx was in England for a second time, to take part in the second congress of the Communist League (Kommunistenbund) at which he and Engels were appointed to draw up a statement of the communist aims and principles of this German workers' organisation. While he was in London Marx was invited to make one of the speeches at a dinner, organised by the Society of Fraternal Democrats with which Harney was associated. to commemorate the Polish uprising of 1830. This was the first occasion Marx spoke to an audience in England (even though he spoke in German) and. addressing himself to the Chartists, he told them that the best way they could aid the cause of Polish freedom would be to achieve "the victory of the English proletariat over the English bourgeoisie" Marx and Engels later met Harney privately, together with another Chartist and Fraternal Democrat, Ernest Jones (1819-1868), to discuss the organisation of an international congress of "Democrats" (which then referred to those who wanted a thorough-going bourgeois-democratic revolution).

The planned international congress never took place, even though Harney and Jones did meet Marx in Paris in March 1848 where he had returned following the overthrow of King Louis-Philippe in February. It was overtaken by events as the European refugees, including Marx and Engels, hurried back to take part in the bourgeois-democratic revolutions which were breaking out in their native countries. Thus in April Marx moved to Cologne where he revived the newspaper he had edited there before he was a communist in 1842-3 calling it the Neue Rheinische Zeitung. Most of the articles he wrote for this daily concerned the day-to-day conduct of the bourgeois-national-democratic revolution that was then going on in Germany — which Marx held communists should work for on the grounds that it would be, as he and Engels had put it in the Manifesto of the Communist Party, “the prelude to an immediately following proletarian revolution". One or two of the articles did mention England in passing: a comparison of the French and English bourgeois revolutions with current events in Germany and an article on the prospects for the year 1849 which mentioned the abortive "Young Ireland" uprising of June 1848 and which declared:
Only a world war can break old England, as only this can provide the Chartists, the party of the organised English workers, with the conditions for a successful rising against their powerful oppressors. Only when the Chartists head the English government will the social revolution pass from the sphere of utopia to that of reality (184. 1.1.1849 NRhz).
But 1849 was not to live up to Marx's expectations. Not only was the bourgeois revolution in Germany not immediately followed by a proletarian revolution, but the bourgeois revolution itself did not take place properly as the King of Prussia re-asserted his feudal-bureaucratic rule over the Rhineland. As for the Chartists, they had already missed their chance in February 1848 when they had failed to react after Parliament rejected. for the third time, a Petition for the Charter. The British government was quick to exploit this weakness and Ernest Jones and a number of other prominent Chartists were already in prison while Marx was speculating about the conditions for a successful Chartist uprising in Britain.

In June Marx left Cologne for Paris and, being made unwelcome there, moved on in August to London, where his permanent home  was to be for the rest of his life.
Adam Buick

Sunday, February 14, 2016

The Labour Theory of Value Before Karl Marx (1934)

From the July 1934 issue of the Socialist Standard

The labour theory of value is the view that the value of an article is determined by its cost of production in human labour power—according to the conditions of the time. In its fully developed form it was analysed and explained in detail by Karl Marx in “Capital.” We are not concerned at the moment with the theory as it was finally worked out. We are only concerned with the forerunners of Marx, who contributed something to the view. Owing to limits of space we can only consider briefly the most outstanding of these forerunners.

Value presented an insoluble problem for over two thousand years. The first glimmerings of a solution did not appear until the middle of the seventeenth century, when a society mainly concerned with the buying and selling of goods began to take definite shape in this country and was in process of taking shape on the Continent.

As far back as the time of Aristotle—two thousand three hundred years ago—the problem was in the air. Aristotle himself, in his “Politics,” and in his “Ethics,” had something to say about it. He knew that there must be some property common to objects as unlike as bread and shoes that made it possible to measure them against each other. He knew that the common property was not their usefulness, but he was unable to find out what it really was. He ends his examination rather lamely with the remark that people have agreed to estimate value in money. And this after he had already pointed out that exchange existed before money. He makes the illuminating remark, however, that profit-making originated with coin.

For hundreds of years this formed the limit of knowledge on the subject.

As commerce spread over society and accumulating money became increasingly the aim in social dealings, the question of the value of money came more and more to the front, particularly when succeeding representatives of the royal treasury sought to build up waning funds by debasing the coinage. Consequently, during the later middle ages, a considerable literature grew up around monetary matters. With the dawn of capitalist society, in the 17th century, the question became acute. The problem before the writers was: How did wealth originate? Or, as we would put, it: What was the source of surplus-value?

Out of these discussions two main schools of thought developed. The Mercantilists and the Physiocrats, one English and the other French. The Mercantilists claimed that wealth accumulated by means of trade, through buying from the foreigner cheap and selling to him dear. In other words, by having a favourable balance of trade,” an idea that still persists, as witness the nature of the discussions during the recent financial crisis. The Mercantilists, consequently, propagated the view that the traders were the most important group in the nation and were the builders of the nation’s wealth. An idea quite in harmony with conditions that were raising the trader to the most influential position in society.

Thomas Mun, a leading merchant of the time and a director of the East India Company, wrote a book that was published in 1664 entitled “England’s Treasure by Foreign Trade,” which puts forward the Mercantilist view very clearly and vigorously.

The Physiocrats, a group that originated nearly a hundred years later in France, a country whose main prop at the time was agriculture, held an entirely different view. According to them, wealth originated solely in agricultural production, as it was only by farming that a man received back for his work more than it cost to keep him, and, out of the surplus, the trader and the rest of the population lived. Turgot, a prominent Physiocratic writer, who appeared towards the end of their influence, puts their outlook very clearly in his book, “Reflections on the Formation and the Distribution of Riches,” published in 1766.. The Physiocratic doctrines were an expression of the interests and outlook of the capitalist farmer, and Mirabeau, one of their leading political representatives, took a prominent part in the French Revolution.

Turgot was a very clear thinker. He had a considerable knowledge of history and had travelled far enough intellectually to point out that the labourer’s wage was determined by his cost of subsistence.

Sir William Petty, an important member of the Mercantilist school of thought, was the first to make a real contribution to the labour theory of value. In a book he wrote that was published in 1662 and entitled “A Treatise on Taxes,” he states quite plainly that it is labour that gives value to things, but, under the influence of his trading outlook, he defines exchange-value as money, and the particular labour employed in the production of gold and silver as the value-producing labour. Hence he was led into confusion.

He wrote a series of essays in "Political Arithmetic,” which represents the first form in which economics is treated as a separate department of knowledge. These essays are remarkable for brevity and clarity. In one of them he explains in a paragraph the significance of the division of labour as illustrated by a watch, and he does it in a manner that showed he had a clearer grasp of the point than Adam Smith, although, writing a hundred years earlier. Adam Smith confused the social division of labour with the division of labour inside a single workshop, but Petty made no such mistake.

In 1733, Richard Cantillon, another merchant, wrote his book “On the Nature of Commerce in General." In it he stated that the value of a thing was nothing more than the measure of the land and the labour which enters into its production. He was influenced by the Physiocratic idea of the importance of agriculture, as also to some extent was Adam Smith. Cantillon held the view that the daily work of the humblest slave corresponded in value to twice the produce of the land on which he subsisted.

After Petty there was another thinker, probably the clearest thinker of his age, who put forward the labour theory of value in a broad form. This man was Benjamin Franklin, who, in 1729, when barely twenty-three years of age, wrote an essay entitled “A Modest Inquiry into the Nature and Necessity of a Paper Currency." In this essay he argues that the value of articles is measured by the time taken to produce them, but he considers that money has an extra value on account of the way in which it facilitates exchanges. In spite of his clearness of thought he, like his predecessors, was lost in the mystery of money. In fact, all those who preceded Marx got into difficulties when they came to treat of money. In their efforts to analyse money they frequently contradicted the sound views they had previously put forward on value in general.

Another youthful writer, an Italian named Ferdinando Galiani, published a book, in 1750, entitled, “Dell Moneta." He was only twenty-two years old when he wrote it. In this book he pointed out that labour was the sole source of value, but he confused the wages of the worker with the value of the article produced. For instance, he contended that the value of a woollen article was equal to the cost of the raw wool plus the cost of supporting the men who produced the woollen article.

In 1777, Adam Smith’s “Wealth of Nations" appeared. In it he attributed the accumulation of wealth to the division of labour. He made a considerable advance in the analysis of questions concerning economics, but he was still far from understanding the real nature of value. He held that the determination of the value of an article by the labour-time taken to produce it was true of earlier times, but not of the developed capitalism of his day. He also fell into the same error as Galiani, confusing the value of what a man produces with the value of what he gets—his wages. If this view were accepted, then the value of all the articles produced would only be equal to the total wages paid to the workers who produced them.. This was the state of affairs the later Utopians yearned for and what they would have called “fair exchanges." Adam Smith also failed to see that the labour of an engineer and the labour of a bootmaker could not be compared as such—they had both to be reduced to a common basis, the simple expenditure of human energy.

How weak Adam Smith’s grasp of the problem was may be gathered from the fact that he put “labouring cattle" under the heading of productive labourers, and also attributed value-creating properties to “profits of stock” and to the forces of nature.

The progress in knowledge of the labour theory before Marx really ended with David Ricardo, a stockbroker, who made the final contribution in his book, "On the Principles of Political Economy and Taxation,” published in 1817. His fundamental proposition is that the values of all articles, including the value of labour-power, is determined by the labour required to produce them with the prevailing skill and methods. But, as Frederick Engels has pointed out, Ricardo did not see that it was labour-power and not labour that was the value-producing quality, and hence, that the transformation of money into capital was based upon the buying and selling of labour-power. It was the discovery of this fact that gave Marx the key to the problem, and it was Ricardo’s failure to see it that landed him into difficulties when he came to treat of the more complex forms of money.

As a capitalist himself, and one who made a fortune on the stock exchange, Ricardo was quite clear, in fact brutally clear, about the basis of the present social system and its aim, which, he pointed out, was production for profit. He was against State interference in industry, and contended that wages should be left to free competition. He also held the view that the prevailing economic tendency was for wages and rent mutually to increase until they swallowed profit, and he foresaw a time when all property would belong to owners of land and receivers of tithes and taxes. He was quite clear, however, about the fact that neither wages nor profit, nor rent, entered into the determination of the value of an article. Surplus-value, he showed, was the portion of value left after deducting the wages of the producer from the value he added, but he was inclined to confound surplus-value with profit.

As already mentioned, the analysis of value really ended with Ricardo. Nobody after him added anything of importance to his work. The so-called “Ricardian Socialists” who followed him accepted his view that labour was the source of value, and, on the basis of it, demanded that all products should belong to the labourer.

The first of these writers was William Thompson, an Irish landlord, who, in 1824, wrote a book entitled “An Inquiry into the Principles of the Distribution of Wealth most conducive to human Happiness.” As the title of his book suggests, the ideas of the “Utilitarian” philosopher, Bentham, had an influence on his outlook. He defined the existing social system as one of force and fraud, and he proposed a new system on Owenite principles. He was very much interested in the Owenite co-operative experiments and visited the Owenite colony at Ralahine, in Ireland.

He took as his basis the view that all wealth is the product of labour. He contended that all men are equal, or nearly so, and therefore capable of producing equal quantities of wealth. Wealth is unequally divided, therefore the few possessors must abstract it from the many producers.

Neither he nor those of the same group who followed him really understood the nature of value. They thought the seller arbitrarily raised the value of articles above the wages paid to the producers, which they took to be the real value. He held that labour was not, at present, an accurate measure of value, on the ground that desires are apt to vary, but he contended that in a future social system such as he proposed, commodities would exchange at the “ value of real use." He assumed that the future system would also be a system of commodity production, but “fair" exchange would be the social principle.

Thompson's confused views of value are illustrated by the fact that he believed machinery added additional value to products beyond the value as mere instruments of production, and also that, in certain instances where labour is saved in the production of an article, value is added to it by this saving of labour.

In 1825, a year after Thompson's book, appeared, Thomas Hodgskin wrote his “Labour Defended against the Claims of Capital," and, in 1827, “Popular Political Economy." Hodgskin, a retired naval officer, was a friend of ] Francis Place and a member of the radical circle that gathered round Jeremy Bentham.

He also argued that the labourer should receive the whole of his product, but he included in the term "labourer" the master and the buyer and seller. He accepted commodity-production as the basis of a future society, but wanted to rule out profit. On the question of value, he was not clear. He confused the value of goods with the quantity, and asserted that the more goods there were the greater was the total value, in spite of a proportional decrease in the quantity of labour required to produce them. He also appeared to think that profit and rent were amounts added on to the value of articles.

Although his outlook on this fundamental question was confused, Hodgskin’s destructive criticism of existing society provided the Chartists with useful weapons in their struggle. He did a considerable amount of lecturing, founded with Robertson the “Mechanics' Magazine," in 1823, and was instrumental in the founding of the Mechanics' Institute, where he lectured. He later joined the staff of the Economist and the Morning Chronicle, dropped out of the active propaganda movement, and lived to a ripe old age.
 
After Hodgskin comes John Gray, a successful business man, who delivered a series of lectures on "The Nature and Use of Money," which were published in book form in 1831 and again later in 1848. In these lectures he claimed to have discovered the real source of social troubles, which he attributed to a flaw in the monetary system. He urged that demand should be based upon production, instead of production being based upon demand, which, he claimed, was the basis of the existing system. He proposed to rectify matters by establishing standard banks which would issue credit in the form of transferable vouchers based upon the stock, etc., or, in other words, based upon the powers of production.

So convinced was Gray of the soundness and the magnitude of his discovery that he had his book widely distributed, particularly to economists and universities, and he offered a hundred guineas to anyone who could refute his views. In recent times the Douglas Credit Theory has had a certain popularity, but there is little in the fallacious theories of the Douglas scheme that was not anticipated by Gray a hundred years ago.

Gray's views on value were quite erroneous. He believed that gold was no true measure of value and that there was none. He contended that the scarcity of gold prevented its value from being determined by labour. He, again, took for granted the continuation of commodity-production, but proposed that, in future, labour should be the measure of value. This was to be accomplished by the producer fixing his own price for his product and the competition of producers determining whether this price was right or not!

Gray was, at one time, considerably influenced by the views of Robert Owen, and, in 1815, he managed an Owenite colony at Orbiston.

The last writer we will refer to is J. F. Bray, a journeyman printer and the author of "Labour’s Wrongs and Labour's Remedy," published in 1839. His book is long and very wordy and full of conceptions of justice and equal rights, inspired by the economic analysis of Ricardo. His fundamental proposition is that as the earth is common to all, and labour is the sole source of wealth, each human being has a right to the fruits of his own labour. He claimed that as wealth was produced by labour, the capitalist, who did not work, lived by the legalised robbery of the producer. He claimed further that the problem was the same in all countries, whatever their form of government, and that, therefore, the solution applied internationally. A strain of anarchism runs through his writings, but he made some very apt criticisms of existing arrangements and had very clear conceptions on particular points.

His fundamental ideas, however, clouded his analysis of the present economic framework. He believed that the capitalist made his profit through unequal exchanges—buying goods at their values and selling them for more than their values. For instance, he saw that the capitalist paid the worker for a day’s labour a wage that was only equivalent in value to the product of half a day’s labour, but he did not see that what the worker was paid was the value of his labour-power. He did not realise the implication of his view. He fell into the same error as many before him and believed that value was equivalent to the wages paid to the producer.

Like the rest of the Utopians, Bray believed that the world had been searching for thousands of years for a just form of society and it was now discovered. To him the correct society was the result of knowledge based upon first principles which were true for all time, and could have been established as easily two thousand years ago as to-day.

It will, therefore, be seen that he had no fresh contribution to make to the labour theory of value. On one point, however, he was quite clear and emphatic—that mere governmental changes would not alter the worker’s position. Hence he advocated a complete change in the social basis—but it was not really so complete as he imagined.

To sum up, it may be said that the analysis of value from the point of view of the labour theory begins in 1662 with Petty, and ends in 1817 with Ricardo. Although the Utopians did not further this analysis, they did excellent service in pushing forward the worker’s case, in the course of which they made valuable and biting criticisms of capitalist society. As Marx has pointed out, the kernel of the matter was contained in their outlook, and their attitude logically led to Socialist ideas.
Gilmac.

Monday, July 20, 2015

Frederick Engels: A Lifetime's Service (1995)

From the August 1995 issue of the Socialist Standard

1995 is the Centenary of the death of Karl Marx's friend and collaborator Frederick Engels, and Engels spent his entire adult life working for socialism. A prolific and popular writer as well as indefatigable activist and theorist, his name is justly coupled with that of his life-long friend as the originator of scientific socialism.

Engels became a Socialist (or Communist in the language of the time) earlier than Marx, in October 1842—at the age of 22—after a meeting with Moses Hess. Hess, Engels wrote a year later, was the first of the "Young Hegelians" to embrace socialist ideas, so founding a school of German "philosophical communism". 

The Young Hegelians were a group of intellectuals who gave Hegel's philosophical views a radical twist and used them to criticise the then existing political and social order. Engels associated with them when he was in Berlin doing his military service in 1841-2. 

Hegel (who had died in 1831) was a conservative who supported both Protestant Christianity and the Prussian monarchy, but as he saw the history of humanity as a progression through stages towards the goal of a free and rational society it is easy to see how his philosophical views could be given a radical interpretation, He himself saw "the end of history", or the goal towards which society had been moving throughout history, as being the Protestant monarchy; the Young Hegelians saw this as a democratic and non-religious state; Moses Hess saw it as a society of equality and common ownership, a view to which Engels, as stated, adhered in 1842 and which Marx came over to towards the end of 1843. 

Owenite Socialism 
Soon after becoming a Communist Engels went to live and work in England, in the office of the Manchester branch of the cotton-spinning firm, Ermen & Engels, in which his father was a partner. Here he encountered another group which advocated common ownership, but which had reached this conclusion by a quite different route: the Owenites or, as they called themselves, the Socialists (they in fact invented the word). 

Robert Owen, who could justly be called the father of modem, or industrial era, socialism, had developed a materialist theory of human behaviour and argued that marriage, religion and private prop­erty "together form the great trinity of causes of crime and.immorality among mankind". 

The Owenites were essentially a propaganda group carrying on agitation against this trinity. They repudiated state and church sponsored marriage for life and advocated divorce, birth control and worn en's liberation. They attacked the bible and Christianity as untrue (some from an atheist point of view, but others advocated a new "religion of humanity. They denounced private property and competitive individualism and advocated a "rational system of society" where there would be common ownership and distribution according to needs without money or buying and selling. Insofar as they did more than propagate these ideas they attempted to set up settlements in both Britain and America on communist lines. 

At this time—the early 1840s—the Owenite Socialists were the strongest they were ever to be. Their national association had tens of thousands of members they were able to open meeting places up and down the country, like the Hall of Science in Manchester. They also ran a weekly paper called the 'New Moral World' as well as publishing numerous tracts and pamphlets. Engels attended the Sunday lectures at the Manchester Hall of Science and was clearly impressed both by the hundreds of people attending but also by the quality of the lectures and discussions. There can be no doubt that, after becoming a philosophical communist under the influence of Hess, Engels learned much of the rest of his socialist ideas from the Owenites.

One obvious example is his views on marriage and women's liberation. Not only did he not believe in marriage but he did not practise it either. He and Mary Burns lived together as partners for 18 years until her death in 1863. Afterwards he and Lizzie Burns lived together as "Mr and Mrs Engels" till her death in 1878. In neither case were these relationships sanctified by the church or state (though Engels and Lizzie Burns did go through a formal marriage ceremony on her death-bed as her last wish). Marx's wife was so shocked by this flouting of bourgeois convention that she always refused to meet Mary Burns.

Engels's book on The Origin of the Family, Private Property and the State, published in 1884, shows an evident sympathy for the plight of women as an oppressed group, as when he describes the ending of descent through the female line and the coming of the father-dominated patriarchal family as "the world-historic defeat of the female sex", a wrong which he argued would be undone through the (re-)establishment of common ownership in place of private property. The Owenites of the 1840s would have appreciated both the book and the sentiment.

Engels contributed articles to the New Moral World from November 1843 to May 1845. He returned to Germany in August 1844 where he remained in his father's house in his home town of Barmen (near Düsseldorf in the Rhineland). Here he joined with Hess in carrying out a campaign in the area of basic socialist propaganda, i.e. straight arguments for a communist society without private property, competition, buying and selling or money. It was here too that he wrote his first book The Condition of the Working Class in England based on information he had gathered while working in Manchester and associating with the Owenites, Chartists and trade unionists of the North of England. 

Agitation for Socialism 
In February 1845 he and Hess spoke at a series of meetings in Elberfeld. At the first of these Engels began by denouncing existing society in these terms: 
In our present-day society, each man works on his own, each strives for his own enrichment and is not in the least concerned with what the rest are doing; rational organisation, or distribution of jobs, is out of the question; on the contrary, each seeks to get the better of the other, seeks to exploit any favourable opportunity for his own private advantage and has neither time nor inclination to think about the fact that, at bottom, his own interests coincide with those of all other people. The individual capitalist is involved in struggle with all the other capitalists; the individual worker with all the other workers; all capitalists fight against the workers just as the mass of workers in their turn have, of necessity, to fight against the mass of capitalists. In this war of all against all, in this general confusion and mutual exploitation, the essence of present-day bourgeois society is to be found. But, gentlemen, such an unregulated economic system must, in the long run, lead to the most disastrous results for society . . . (Marx-Engels Collected Works, Vo1.4, p. 243).
Among these "disastrous results" were commercial crises. These would be impossible in a communist society: 
In communist society, where the interests of individuals are not opposed to one another but, on the contrary, are united, competition is eliminated. As is self-evident, there can no longer be any question of the ruin of particular classes, nor of the very existence of classes such as the rich and the poor nowadays. As soon as private gain, the aim of the individual to enrich himself on his own, disappears from the production and distribution of the goods necessary to life, trade crises will also disappear of themselves. In communist society it will be easy to be informed about both production and consumption. Since we know how much, on the average, a person needs, it is easy to calculate how much is needed by a given number of individuals, and since production is no longer in the hands of private producers but in those of the community and its administrative bodies, it is a trifling matter to regulate production according to needs. Thus we see how the main evils of the present social situation disappear under communist organisation. "(Marx-Engels Collected Works, p.246). 
Because he was arguing directly for Socialism Engels had to face the same objections as Socialists do today, in particular "it' s a nice idea, but it would never work". Engels chose to counter this by saying that "community of goods" and voluntary work had been tried and were working in various communistic colonies set up by the Shakers, the Rappites and others, to show that people could live in communist conditions. For his informa­tion he relied heavily on a series of articles by the Owenite John Finch which had appeared in the New Moral World between January and October 1844. Engels quoted Finch's description of how the Rappite community at Economy functioned: 
They live in families of from twenty to forty individuals, each of which has a separate house and domestic establishment. The family gets its supplies as much as it requires from the common stores. They have an abundance for all and they get as much as they wish without charge. When they need clothing, they apply to the head tailor, the head seamstress or shoemaker and are furnished with it made to their taste. Fresh meat and the other foods are divided among the families according to the number of individuals in each, and they have everything in abundance and plenitude." ("Description of Recently Founded Communist Colonies Still in Exist­ence", Marx-Engels Collected Works, Vol.4, p.220). 
Engels envisaged a communist society (as opposed to a communist colony or commune) functioning on this sort of principle too. But what would be the incentive to work? Who would do the dirty work? Engels had already answered this in the first article he wrote for the New Moral World in November 1843: 
It was Fourier, who, for the first time, established the great axiom of social philosophy, that every individual having an inclination or predilection for some particular kind of work, the sum of all these inclinations of all individuals must be, upon the whole, an adequate power for providing for the wants of all. From this principle, it follows, that if every individual is left to his own inclination, to do and to leave what he pleases, the wants of all will be provided for, without the forcible means used by the present system of society. This assertion looks bold, and yet; after Fourier's mode of establishing it, is quite unassailable, almost self-evident—the egg of Colombus. Fourier proves, that every one is born with an inclination for some kind of work, that absolute idleness is nonsense, a thing which never existed, and cannot exist: that the essence of the human mind is to be active itself and to bring the body into activity; and that, therefore, there is no necessity for making people active by force, as in the now existing state of society, but only to give their natural activity the right direction. He goes on proving the identity of labour and enjoyment, and shows the irrationality of the present social system, which separates them, making labour a toil, and placing enjoyment above the reach of the majority of the labourers; he shows further, how, under rational arrangements, labour may be made, what it is intended to be, an enjoyment, leaving every one to follow his own inclinations." ('Progress of Social Reform on the Continent', Marx-Engels Collected Works, Vol. 3, pp394-5). 
Ahead of their time 
Engels later revised his rather optimistic view of these communist-type settlements within capitalism. In 1848 in the Communist Manifesto, which he and Marx drafted, the section on "Critical-Utopian Socialism and Communism" refers to "small experiments, necessarily doomed to failure", explaining this failure as being due to the fact that conditions weren't yet ripe for the establishment of socialism: industry wasn't developed enough nor was the working class. 

This left the ideas the early Socialists expressed—ideas of common ownership, voluntary work, distribution according to need and no money and no buying and selling—hanging in the air, as it were, with no material or class basis. As a result they appeared as abstract propositions unrelated to practical reality, or "utopian" in that sense. The ideas themselves, however, remained perfectly valid as a description of the content of socialism, of the features of the society workers would have to establish to free themselves from the exploitation they suffered under capitalism. 

Engels's criticism of the Utopian Socialists was not of their ideas for a new society but of the fact that these were not connected to the working class movement as a means of realising them, and in fact could not have been at the time they were first put forward in the 1820s and 1830s. As he and Marx went on to say in the same section of the Communist Manifesto
But these Socialist and Communist publications contain also a critical element. They attack every principle of existing society. Hence they are full of the most valuable materials for the enlightenment of the working class. The practical measures proposed in them—such as the abolition of the distinction between town and country, of the family, of the carrying on of industries for the account of private individuals, of the wage system, the proclamation of social harmony, the conversion of the functions of the State into a mere superintendence of production, all these proposals point solely to the disappearance of class antagonisms.
Although Engels was never again to enter into such detail as to what a socialist society might be like as he did in 1843-5, he never departed from this view that the classless society the working class should strive for should be a society of common ownership, democratic control, production and distribution for needs, without buying and selling, money, wages or the coercive state.
Adam Buick



Engels - what to read . . .

The Condition of the Working Class in England
Classic description from a Socialist point of view of the conditions industrial capitalism imposed on the newly-formed working class in England in the 1840s. Written in 1845 when Engels was still only 24, it was based on his first-hand experience of living and working in Manchester at the branch of his father's cotton business from 1842 to 1844.

Socialism, Utopian and Scientific
The third part of a longer work Anti-Duhring published as a separate pamphlet in 1880. The most widely-distributed of all Engels's writings and still the best introduction in the words of one of them to the social and political ideas of Marx and Engels.

Origin of the Family, Private Property and the State
Another Socialist classic, published in 1884, in which Engels traces the origin both of the state as a separate coercive institution standing over the rest of society and of the patriarchal family and the subjection of women to the coming of private ownership of land and other resources and the dissolution of the communistic  conditions in which humans originally lived. The re-establishment of common ownership, Engels argues, will lead to the disappearance of the state and to the restoration of equality between men and women.

The Housing Question
Series of articles Engels wrote in 1872-3, published as a separate pamphlet in 1887, analysing typical attempts to deal with a social problem by means of reform measures within capitalism. Engels shows how such measures can never solve the problem; at best they can only relieve it temporarily, as any measure which permanently reduces the cost of living of the working class will exert a downward pressure on wage levels, so taking away with the one hand what the other had given.

Articles from the Labour Standard
Series of articles in English for a London trade-union paper in 1881, aimed at persuading English trade-unionists that pure and simple trade-unionism was not enough and that workers should also organise politically with the aim if abolishing the whole system of having to work for an employer for a wage. Still sound advice today.