INDUSTRIAL
PEACE
VOLUME V
LONDON :
THE ST. CATHERINE PRESS
STAMFORD STREET. S.E. I . '"*>
WB
INDEX TO VOLUME V.
Titles of articles printed thus FOOD FOR THOUGHT.
All paper*, pamphlets, etc . thus Tki C*ll.
IS OF ORGANISED
OUR. 98
priralty,
DUCATION AND THE LABOUR
'54
Adult Education Committee, 154, 156
Kca. Sooth, 25
Amalgamated Engineering Union. 64
iaJgamated Moulders' Union, 64
Bftlfaraated Tool makers' Society. 64
udgamated Union of Co-operative Em*
-<. 4.4
^H)*" 3-6. 10. 1 6. 26. 63. 64, 90, i2i, 159
torican Federation of Labour. 23, 25. 26.
ttafdam. 26
> 1 1 1 1 t -
Bleachers and Dyer*' AiMctetioa, 155
Board of Education. 14. 83
Board of Trade. 45. 62
Bolsheviks, 121. 137. 158. 161
Bolfth' -136
tield. Margaret. 25
Booth. 133
Boston
Bowley. Irof A. L . 133
Brace, Wm.. 175
Bradford. 15.80
Brantmg, 23, 158
Brindley, 2
7, 14. 16. 22, 23. 23. 29 34. 60. 113.
121. 13*. 143. 145. 159. 160. 162, 189
h S<x:iali*t Party. 23. 24. 120-122. 128. 141
Hnfnk Trad* Kevin*, 190
Hrownlie. J. T.. 57
Brussels. 22
Bureaucracy, 66
~9. 92. 155. >6i. 188
Iord. 163
N.9
I- ON. 73
H- and Strikers' Union. 64
181
25
ic Province*. 181
^.194
on. Councillor A.. 190. 101
iat. P.. 37
** 1 * l95
an Socialist^
ium. 24. 26. too
P.O.. 158
e. 26. 138
'hfcml. Robfj
Taillard. Sir Vincent. 138
CM. Tkt. 27. 37 63. 89. 120. 121. 157. 190
Canada. 25
Capital. 5. 26. 37. 3 5*. * 93. 33- 39- M6
174. 77- '85
i TAL. TAXATION OF. 104. 146
.i!im. 56-59 64.90. 120-123. 137. 186, 189
Carmichael. Puncan. 19
Carstx vard. 109
Carter 51-53
^n^ht. 2
CASI T ACTION. THE,
73
CASE FOR DIRECT ACTION. THE. 135
CATHOLIC SOCI \ l>. THE, 118
SirGeoige. 29
Cecil. Lord Hugh. 109
Central Empires, 25
Central Iron moulders' Union. 64
154-156
>S. ORGANISING FOR. 77
Chernov. 158
<tian Social Union. 118
st League. 128
Civil Service. 131
CLASS ILLUSION. THE GREAT. 34
CUM War. 17. 34. 4J. 39- 7 8 . 9. '"
:J7 39- 34. 13. |6 7- 73. *3- *,
CLASS WARFARE AND THE DICTATOR-
I AKIAT. 166
:.. Bi
Cljrnev J l< . 157. 161. 173. 176
Coal Commission. 6, 1 1
COAL MINING. II.. 7
Coal Owner*' Association. 10
Cobbelt. 132
Col.. G H D . 34. 36
. :, :.. :- i:
Combination Acts 1815. 53
Commute* on Production. 81
Commons. House of, 26. 35, 69, 70, 108-110.
i o. i a 4 . 140. 193
Communism 121. 122, 174, 185. 188. 189, 191,
CONSTRUCTIVE MEASURES, 149
Co-operative Commonwealth. 59
COOPERATIVE i Ml'LOYKES. 41
Co-operative Movement. 78. 79
Nfw$. 42
Co-operative Union. 42, 43
Coram. John. 131
Cort. a
County Councils. 14
Conmeres Colliery. 9
Craft Unionism. 52. 53. 185
Craik. W. W.. 155
Cramp C. T.. 25. 154. 194
Crompton. 2
Cumberland. 10
Currency Committee. 46. 47, 106
Czar. 168
>- Slovakia, 181
Eaton. Dr. Cbas . 31
'NOMIC INDEPENDENCE, 18
ECONOMI
Economic for the Central Reader, 38
ECONOMICS. K AL, 37, 71, loi, 169
Economist, Tkt, 146
ECONOMY AND UNEMPLOYMENT, 108
Education, Board of, 14, 83
Kisner. Kurt, 25
Electrical Trades Ur.ion, 64
loyment Exchanges. 124
Kn^iiieering and Shipbuilding Federation, 136
England, 2, 23. 26, 48, 54, 76, 79. 98, 113
'32. 134- '5 1 - 158-160, 167-169, 175
Essex, 80
Ksthnma. 181
fill. NI-.W MAT OF. 181
Europe, 2, 121, 133, 134, 159, 161, 166, 169. 181
Excess Profits, 85, 88
Exchequer, Chancellor of, 148
P.
Fabian Society, 23, 24
Federation of British Industries, 158
Finland, 181
Fisher, Lord, 194. 195
FOOD FOR THOUGHT, 30, 60. 94. 124. 162,
193
FOREIGN TRADE, 2
Forward, 28, 92, 122. 164, 195
f, 2. 9, 22-26, 48. 54, 55. 122, 157-159. 181
French. Lord, 163
French Socialist Party. 122, 157
French T. U. Movement, 26
Dnly Herald. 27 29. 32. 36, 58. 62, 64, 67, 89-91,
:23, 125, 127, 135, 158. 159. l6l. 163
Darwin. 173
Davison. George. 155
Davy. Sir Humphry. 9
DECENTRALISATION IN INDUSTRIAL
QUESTIONS. 80
Democratic Control. 189
Departmental Joint Councils. 151
Devon port. 151
'ns. 1 28
DIRECT ACTION AND DEMOCRACY, 66
DIRECT ACTION, THE CASE AGAINST,
ACTION. THE CASK FOR, 135
Direct Action, 66. 67, 69, 70. 90, 135-139, 173,
173. '76. 185
District Councils. 149, 150, 152
Dock Workers' Union. 124, 175
Domestic Training. 12, 13
Doncasier. 10
Doyle. Sir A Conan. 95
Dublin. 159. 163
Duncan. Charles. 29
O.
Galicia, 183. 184
Galloway, Mr., 9
Garforth, Sir Wm., 9
insky, 25
Geddes, Sir Auckland, 59
Geddes. Sir Eric, 59
Geddes. Sam, 195
General Election 1918, 54
General Staff for Labour, 79, 89, 160
General Workers' Union, 175
George, Lloyd, 30, 31, 58. 59, 61, 63, 108. 161
German Communists. 121. 158, 161
German Independent Socialists, 161
German Social Democrats. 23. 121, 157. 167
Germany, 3-6, 22, 23. 25, 26, 36, 46, 67,91. 121,
! 5 8 . ! 59. 161. 163, 167, 168, 173, i
18 4
Gibbons, Cardinal, 119
Glasgow, 15, 28, 79, 90, 122, 156, 195
Gompers, Samuel, 121
Government. 10, 16, 20, 21, 27-29, 32, 34, 46. 47,
52, 57-62, 67, 69. 70, 77, 78, 82, 84, 88. 90,
91, 93. 96, IO4. IO5, IO7-IO9. 114. 121, 146,
148. 160, 161, 164, 169-171, 194, 195
GREAT* 1HK. 34
Greece. 25
iward, 22
Socialism, 1 1 3
H.
Hal. Jane. Lord, 194
r. aa
: oaves, a
53
Mayday. Arthur
Henderson. Arthur. aa 24. 117. 157. 175
Ml*. 153
Hodge, John. 137
.;. Prank, ia7. 154. 160. 187
'd 23 25
Office. 9. 10
c, Sir Robert, no
and Wanes Board. 4 1
Hungary. 33. 181
i.ns. Caroi lie. U
Hyndman. H M
I.
164. 173
Industrial Council*. Joint Standing. 81.83. 149,
93
liKlustri.il Reconstruction Council*. 43
Indu- lutmn. Tl i ja
Industrial I ; ( 183. 186
Inter Allied I -abour Conference 1917. 23-33
:HK 22
rcond. 26, 1 20. 122, 161
ittonal. Third, 26. 120. 122. 161
ial Conference. February 1919. 25
il Socialist Bureau
Ireland. 154. 160
-r*' Union. 173
Italy. 23. 122. 181
J.
JP". A. 5
Joint Industrial Councils. 81. 83. 149, 131. 152
Jones. Jack. 1-5
167, 168
Kartel System. 3. 4. 6
vv. Karl. as. 121. 138. 173. 173
>rtiiv. Commander. 139
nstable. ao. at
, ! M . 133. 196
Labour. 3. 6. 38, 48. 30. 51. SJ. 5*. 77. 7*. 79.
ta. 84, 83. 90. 9). 98-100 115. in. is **.
9. 159. . 4- 7*-7*.
Labour. Gen^aJ Su* (or. 79. 9. too
L*bo*r Lt*4n. 37
Labour. Ministry of. 43, 83
Labour Party. 23. 24. 20. tao. 140. <37> >^a.
187. 193
Labour Party Ktecutive. 22 25. tao
Lancashirr
Lancaster, 130
ljuisbury, Georxe. 37. 39. 60. 6j. 67. 68. 90.
I jintrrn. Victor. 37
Ijiw. Donar 146
Laag* 1 ' . 34
Leeds. 13-17. 131
< . 161
> 6. 36. 57- 79. o. lai. 137. 5*. 9
ilism. 162
15
I 1MII ATION OF PROFITS. 84
;KJO|. 15. 27. 28. 30. 36. 78. 1 34
Locke. 66
Lodge, Sir Oliver. 93
London, aa. 24. 23. 78. 80-83. 107. 130. 134
I-miguet. Jean. 23. 137, 138
K YOU LI- AP 141
Lucerne. 26
Lyons ft Co , 14
Macaulay. 33
MacCready. General, tg
Maodonald. Ramsay, aa. 25. a6. 78. iaa. 138.
irk. John. 33
Mcl.a.: 63 90,91
Maclean. John. 78. 79. lao. tat. 187. 190. 191
Mcl^an. Neil. 77. 78
McQuisien. Mr.. 109
MA)> K. THE. in
M alone. Colonel. 94
ilieu. T . t
Manchester. 41. 37
Mann. Tom. 30. 79. 92. 153. 161. 188
Marcxy. 156
Markham. Sir Arthur, to
Marshall. Alfred. 71
Mnmton. Jaroe. 19
Martov. 138
156
'". 34 i9. 155. 5*. 73
Mellor. \Vm ,91 176
Merrheim. 137
Metropolitan Police. 28. 19
Mevnelt. Francis
rrvic* Act. 96
Federation of Great Britain, it. a* 51,
53- 5*. 69. 3*. 3*. 54. *T. W
Minimum \Y.ic* Act. 32
jr of Labour. 45. 83
Mirmiry of Munitions. 151
Ministry of Reconstruction. 45
MINORITY PRESS, VIEWS OF, 27, 56, 89.
120, 137. 190
Mistral. 13
Mohammed. 144
Mo! lire. u8
Money. Sir Lao Chiozia. 63. 127, 128
Montefiore. Dora, i ao
Moscow, ao
Munition*. Ministry of, 151
Napoleon. 63
. 160. 161
National Brassworker*' Union, 64
146-148
National Industrial Council. 80. 81
National Sailors' and Firemen's Union, 126
National Socialist Party, 175
National Union of Clerks, 155
National Union of Dockworkers, 124, 175
NATIONALISATION. SOME ASPECTS
OF, 115. 177
Nationalisation, 5. 115, 116, 138. 188
Nations. League of. 54
Navy. 79
New Aft. Tkf. 77
NEW MAP OF EUROPE, THE, 181
NEW UNIONISM. THE. 185
Newcastle. 64
Newton, Isaac, 48. 63
No-Conscription Fellowship, 126
Noel, Rev Conrad. 128
Noske. 157
N.T.W.F.. 51
K., 51. 58, 60-63. 77. i. MO. 154. 155.
75
O'Connell. Cardinal, 119
Office of Works. 151
ON ATMOSPHERE. 75
ORGANISED LABOUR. ACHIEVEMENTS
OF. 98
ORGANISING FOR CHAOS. 77
Oxford. 36
Pannekoek. 156
Paris, 23. 122, 159. 181
Parliament. 10. 16, 17. 56. 57. 67, 79. 80. 99,
126, 132. 135. 136. 187
Parliamentary labour Party, 23
Peace Treaty, 159. 181
Petrograd, 23. 24. 120
Phillimore. Lord, 32
Plymouth. 123
Poland. 181-184
Poland. Austrian. 182. 183
Poland, Prussian, 182. 183
Poland. Russian. 182-184
Police Union. 27-29
Poor Law, 18
rofuldlK. 122
Portsmouth. 151
a I, 25
Posen, 181, 183. 184
Postal Workers' Union, 27, 155
Potu-rv Industry, Council of, 150
I i< \I ECONOMICS, 37. 71,101, 169
Premium Bonds, 123
xeering Committee, 125
AND THE GROWTH OF
1 TAL. 130
Prussia, 160. 181
PSYCHOLOGICAL FACTOR, THE, 48
PUBLIC LIHRAKIES, 15
Quelch, Tom, 89, 90, 120
Railway Review, 63
Railway Strike, Oct. 1919. 54, 55, 57-62. 77, 78.
89,9'
K am say, David. 158
Hank and File Movement, 64, 162
Reconstruction, Ministry of. 45
Reichstag, 167
Renaudel, 25, 26, 157
Renwick, G., 109. no, 124
Representation in Industry. 93
Roberts, G. H., 194
Robertson, John, n
Robinson, W. C., 127
Rockefeller, John D , 93
Roebuck, 2
Rowntree, 133
Ruskin College, 155, 156
Russia. 22 25, 32, 46, 48, 57, 67, 106, 120. m,
138, 157-161, 167, 168. 176, 181, 183, 184.
189
Russian Revolution, 57
Russian Workers' and Soldiers' Council, 23
Saar Coalfield, 181
Savonarola, 31
Scandinavia, 23. 24
Scheidemann. 157
Schweitzer, J. W., 191
Scotland, 72. 78, 79
Scottish Labour College, 57, 63, 90, 92, 156
Scottish Workers* Committee, 187
Serbo-Croatia, 181
Sexton. James. 78, 175
Shakespeare. 63
Shaw, G. Bernard. 126, 144
Shaw, Tom. 175, 176
Shaw, William, 130
Sheffield. 190
> towards' Committee. 138
a. Upper. 181
183
-.Robert. 32, 33. 162. 187. 188
Snowdcn. Mr* , 23
social Revplotioa, 5' > <4
Sottuln:. Ikt, 36, 36, 137. 138
Socialist International, 26
s.x ialUl I:--, .' . i Ji
*t State. 113, 116, 178-180. 193
Socialists. 16. 122. 141, 142. 174.
162
SON! ISATION,
73
Soviet*. 37. 120. 161. 176
BOMnhamland. iM
37- 5. 53. 60. 69, 73. 96, 99, 104,
108. no. i ,6. 130. 131, 156.
166, 168. 171-174. 177-180, 187
title Control, 68
>wnership, 5. to. 69. 177, 187
itanonery Oftce. 151
r Maker* ' Union, 64
itewart. Wm..92
tockh.
rtuart-Bunmng. (>
hither*. R. B.. 64
land. 23
ivme. \\\ Inspector. 18. 29
Syndicalism. 34. 30. 31. 33. 66. 122, 183
T.
! ION OF CAPITAL. 104. 146
Tcitilr WorkcrV Union, i
Thackeray. 128
Thomas. Albert. 25
Thomas. J || . 25, 34. 35. 61. 91. 127. 140, 175.
194
'Mil. 39
Thomson, Col. C B.. 194
Thome. Will. 173
Hen. IA
Tk*.
mi. 162
, Board of. 43. 62
i International. 26
8. 30, 53. 57-39. 68. 98-
loo. 137. 176. 183. 189
15. j6. 127. 176. 185, 192
-neral Federation of, 26, :
^' Federation. 27. 120. 126
104
30
le Alliance. The. 29. 30-33. 61. 77. 137, 138
,'Utra, 23
120, 137
System. 6
77. 35- oo.
. lllackpo
T U C . (ilaagow i 9
T.U.C , Parliamentary Committee.
161
Turat:
Turner, lieu
i7
U.
Ukraine. 181
NISM THE NEW. 183
^foande
- Worker*. 64
rrnroakerV Aaeocialion. 64
Vamlervelde. Emtle. .-3. *
Vienna. 182
VS OF THE MINORITY PRESS. 27.
56. 89. 120. 137. 190
Vinogradoff. Pr..ie%<
a. Lower
W.
>4
. 79. 132- 5
Wales, South, 33. 69. 133. 186. 187
Wales, Sou i' Federation. 133. 173. 188
oalist Society. 186-188
War Aims Memorandum. 23
War Cabin.
office. 131
Waid John. 161
Warsaw, 183
James. 2
A . 44. iS. 134. 136
Wells 23
Wh.trhrad. K 1 . 192
\\hitlev ("ouiuils. 130-132
Wlntley Report. 149-151. 153
Wigan. 195. 196
Williams. Robert. 1 10. 126. 127. 161. 194
WiU* 126
WOM STRIKE.
Wofi/r. Tkt.qo. 187
\VorksCommtttre 149. 130. 132
, Office o!
Workshop Committee. 79. 15*
Y.
Yorkshire. 41
\rthur. 131
120
/immerwald Conference, 23
CORRIGENDA.
Page 60, line 27, for " War wages, and the rest of it knew " read " War
wages and the rest of it, and knew."
Page 1 84, line 27, for "Zlotz " read Zloti.'
No. XXV
SEPTEMBER
MCMXIX
< irntlv, John saintly ilovvnhill. Put
the dr.
v SHII//I.
r - vrr: . ' : j
INDUSTRIAL
PEACE
' - ' - " ' ' ; n ::r: B H
CONTENTS
Foreign Trade
Coal Mining. II.
Apprenticeship
Public Libraries
Economic Irulependence
The IntrriKitional I 1.
of the Minority Press
Food for Thought
INDUSTRIAL PEACE
IOREIGN TRADE.
Great Britain's Early Supremacy.
THE Story of the growth of n:tt i-ms i^ t he history of in ven I i 'ii
a force which stan< the diminishinLr fertility of land
and the demands of a people increasing in niimhcr and in
variety and complexity of \\ants. Since the day of the master
in and the "open field" cultivation of the land, the
evolution of ind nst ry or the growth ol' invention and orsj,:
ti"n has proceeded at an ever-accelerating speed. In tl
between the NapoU I Franco-Prussian wars it is roughly
true to say that Britain was the sole uivat exporting country
of manufactures in the world. The inventions of the
latter quarter of the 18th century which paved the way to
the Industrial Revolution'* of the early 19th century, Watt's
steam engine, Roebuck's iron-smelt in^ and Coil's puddling and
rolling processes, the spinning and waving inventions of
Hargreaves, Crompton, Arkwright, Cartwri.L'hi. and others,
followed one another in rapid succession, and, coupled with
the i te transport facilities brought about by I he con-
st nut ion of Hrindlcy's canals, enabled England to build up
vast trade connections before the rest of Europe had awal
to a realisation of the advantages of power over hand-driven
machinery. By 1820 modern industry and the life of the <_ r
city was an integral part of our national life, whereas in France
in that year it is recorded that there were just si \ty-five steam-
driven engines at work. Such progress as we then made
rightly termed " industrial revolution." At a single bound
we left our rivals in trade and industry hopelessly out-distanced,
and then, like the hare of J able, fell as! .foundly
'.need that we had nothing to learn or to fear IK. in the
slow-going tortoise.
Continuous Evolution of the Mechanism of Foreign
Trade.
But the process of evolution has not slackened in its course.
The means of rapid communication of the present age make it
dillioult for any nation to reap material benefit from the
monopoly value of its own discoveries. The nations of Europe
run neck to neck in their knowledge of the miracles of the age,
and it is therefore more particularly in the invention of new
substitution of new forms of
.
a better a than be, lnt i.irvl.. t) ; .,sjh not
.Chilian failed to ado;
D organisation which necessity bad tbrust
late-comers struggling for an cntr\ into the \N..il<Ts markets.
The GfOWtb of the Kane! Sy
'<! by Bismarck
in ( .
It \\;i . thr
M W<T< ish exporter,
llritish was to seen
had to compete with the
This m.-ant that unless he WCFC
bO sell his a.-tual lahonr at I >rie.- than his Hritish
dueti'.n ..- some
organisation that would <^ivc him an advantage in the
cost his goods. The German concentrated
upro\r rganisation and the Kart.
aros' 1 is the Kuropean form of .
corresponding to t! ican tru
th are much the ft --tun- th
:in agrcniK nt for a given nnml ars to regulate their
output . their pliers accor*' >ns of a
>ody to which each linn studs a delegate. To
<-e to the agreement entered be linns
sill t<> th.ir -.v. ; ixwes
:et in the open nn-
ssary c- remain imlcpn
units. ( , n. and compete
anion<r { . rs j n their methods cf man ami in
s in the han i raw material and of labour.
Equal 1
th. disadvantage under ui Turns laboured, b-
the \\ai-, fitfhtinj: each dually in foreign markets,
euttiiiLr one -m : themselves in
sense! inUi ti ked as a single
organise. I ir |y with
At the sum i- (Germans coiuhined again as a nation to
3
secure their home mark. Is to their own manufacturers under a
system of tariffs. The home market M8Ured, all export trade
meant increased scale of product ion. with its fresh economies
and consequent 1. -xs mng cost of production, placing tin- German
again in a relatively favoir intioo in the open market
abroad. The American trade combination 1 nsibk in
many respects and more susceptible to anti-social uses
worked in much the same way as regards its entry into foreign
trade, and at the outbreak of war Germany and America
were already crowding and jostling us um -omlortably in the
world-markets.
General Lessons of the War.
It is true that the war has brought ns to a sudden and more
ss complete realisation of many facts that we had hitherto
ignored, teaching the Hritish manufacturer the important part
played by massed production and standardisation in cheapening
cost of production, and generally compelling him to modernise
his works, scrapping obsolete machinery, and introducing
modern in place of antiquated methods. But against tin
must debit the tremendous impetus which this same war has
t< American manufactures and to the Japanese industry.
which, adopting German methods, made full use of its excep-
tional opportunity, and now stands firmly on its feet, as fonnid-
an opponent as its European competitors.
There can be no doubt that if the British manufacturer
fails now to interjn lessons of the war and attei
to return to his own individual methods, he will inevitably
be defeated in the near future by the American trusts, the
lan Kartels, and the Japanese trade combinations.
Slow Progress of the Combine System in Great
Britain.
The idea of the adoption of some method of combination is
not unfamiliar to the Hritish manufacturer. The notion has
been played with for the last ten years, and the trend of our own
big industries is most certainly towards combination. But the
Englishman is, before all things, an individualist and a
conservative. His innate distaste alike for innovations and for
team-work have hitherto made progress on the lines of his
German and American competitors perilously slow and un-
certain.
Other Advantages of our Competitors.
Nor is his backwardness in this respect by any means his
only handicap in the race. The frugal standard of living in
4
nt low labour costs, the German's
y'ft common misfortunes now
, the energ prise and i f tin American:
eta whu-h l.-l|. t', .wt-ll the balance in fa
i K 111 : Against ourselves we must
l methods of managen
It' we a. 1.1 (ai v. :h- i.i.-t tliat t i ir dislocation and
st is to a great extent general) the enmity and <li '
seen Capital and Lab rise t<> ^creasing
demands from lh<- workers roupl.d with ndurtion in total
'tit and reil> .-r urn- ca* ei
bad tin il slackening of all
ii-Ji HP ;inge
radit i s \\lftl_ keep abreast of our com-
iii the struggle for mark
Transient Nature of the Coming Trade Boom.
e presci <-ts are abnormal and cannot be taken as
x.Miml pi r up of normal
. tin- artual d -strm ' 1 tht-
wear 1 of stocks of
; will he a pht-iK.iiK nal demuml
and uhni things sett I.- .l-.-.vn again and confidence is rest<
a period of com HP \\ithin tin reach of all.
lint this tr< m< n,iiis i>.>..m m industry will pass; tin- unusual
..ml will be satisfied within a few years, ami tin- struggle
will hi- limn- amtr than t \ >t beware of
this .sj,, nty due to the al i r. millions r\i
nath of war. h al tl I this prriHl Hi
inanufac* Organisi-d thrmsrlvfs that
can compete successful 1> in \\.-rl.l m .nlly
hope to n-tain its p,.siti.ni !' suprnnai-_. al trade.
Nationalisation or Private Enterpriss.
: imhistry as a w!
s must lx put jiside
and nirinlxTs ..fan industry mUSl unit. -and suhmit to some
measure of cut il amoogsf tl. r the n-ali-.
own and . ..nal \\. Idh-
> must i-itluT go forward now, or go back.
i il.oui must be gained. Willing wor
are at least hah .cess of the u , and the
minds of tl, are now turn i of
nalisati ;i and State-ownership. Tlu n workman,
5
however, is amenable to facts where IK is deal 'to argument.
The present is i,,.t tlu- tim- have already
been made and failed so often. 1 iir-t demand is r. M -
a greater share of wealth. It must be demonst rated that
t-> 1 . product -dial, and that both t lie
; he volume of our production dep< nd upon our
trade With other countries. It \\e believe that private Of
ship, duly controlled for the protection of labour and the
cons'. | the sine qud non of industrial prosperity, we must
rcmcmlHT that the only argument in favour of such a s\
that will make any appeal to the mass of Labour is the [
of greater efficiency, greater production per unit of labour and
capital.
Foreign Banking Systems.
Our banking system, too, is o]d-!ashioned and inadequate.
There is the possible association between the C< rman and
the American banks and the big industrial Kartels and Tr
tin latt g on the former to supply the necessary capital
for all industrial developments. In this country the ba:
stand on the fact that he has no right to lend the
public's money in small and somewhat speculative trade, and
fore prefers to lend money in big blocks to the American
and German banks rather than to use it to develop our native
There is something to be said for his argument, as if In lends
money against some easily negotiable s unty he can at any
time realise it. while should he tie it up in some trade COO
he will probably find it unrealisable except at a big loss at a
time of crisis. Greater banking facilities are urgently n<
to-day, but the banks depend to a great extent upon the
industry, and the remodelling of the former must be coinei
witli the reform of the latter. The one cannot go very much
ahead of the ot 1
There is now a tremendous for trade which, if it
can be taken advantage of, will greatly help the present posit ion,
but this general prosperity cannot last. Unless we adopt some
d iinitc scheme of combination we shall lose ground in the
struggle that will follow, the demand i product of our
stapl- v. ill wane and unemployment on a great and
cising scale will result. Gnat Britain can only support
vast population in comfort and prosperity if her unit of
effort is as productive as that of her foreign compel i!
< OAI MINING. II.
mnnth we finhlnhiJ d by Dr. John Scott
'"(* engaged in the inro/i
<tfety of coal mines }> v-flve
years. Below w* gi
II CM I ill ami Safety.
Lint wo 'he sea, <>r in thr |j lerground tends
y to be dangerous. There is , drscrnding or
asccii'li!. *s and confined
spaces, from :<>m th- r<> . explosives;
he-alt ii from \.mu, causes, inrlulmtf r-iinary
impurities in an.! the poisonous gases from explosives or
fires. In c<> lotions.
A very general impression mg all this,
uining must be a good deal
great average oc< is. The Registrar-Gen*
tics show ;irs ago. coal
ug was still in it case. N .was
the a death-rate excess! \ it tlint
was also abo mi-l _. then,
tc of the jrrr:itly iru-rriiscd depth of pits, tin-
death-rate a iitisli ( is has been reduced to
>;il mi- this funtry is now one of thr
with a compara H risk to life. The acci-
:atc among >.il - .ilt hough only about a
ii <f wi: ly was, is still aluionnally high, an
K Mm t th. total death-rate is n aally
safe occu Hut it is nearly
as |,.\\- :is th.it of lairyi rs anl i- msjilcrably below the average
1 1 occu p. . j >kecpers or doctors, for instance,
itr is hi .4 r..:il miners.
Thr following tal-: in tin- last lUue Book on
occupational mortality, illustrates these Owing to
defects in c< >lc and detailed figures are not
:..") ; hut such figures as have been
puhlish.d in.luMt.- that iunong old coal i thedeath-ra
v the same as for average < healthy
us of coal mi : rk do not postpone the advent of old
age. As a contrast to coal mining, I have given also the figures
i. >r\<, >st dangerous or enimtry
that of men i n^a-. .1 in the sale of alcoli"lii- liquors in j;.
7
houses and similar plae- at. 'V\\< ^ men \\ork in
far nire dan<j< Tously polluted at IIH -split -res than coal mines,
and handle substances \\hieh in actual practice an- far more
dangerous to handle tlian machinery or cxplosi-.
DEATII-HATES PKR 1,000 LIVING AT BACH \< i l'i HIOD.
15-25
J.T 5
:ir> ir>
ir> -r>5
upn-.l U
All occupied ami retired coal miners .
All :md retired barristers and
:i-:>
3-9
<r:j
4-9
10-9
8-0
7-6
l.s-7
All occupied ai
Alloccupii .1 ;nnl i
All OCCUpled ami n !n. (1 x,
All <x-<
All (.eel!, . innkeepers,
publicans, anel the i final.
2-4
4-r>
4-8
;V<>
4-IJ
<.,
1 1-1
10*6
6-4
JM
KKS
ja-5
1 I-'J
'I'hc reason^ i.r the relatively low death-rate among c<>al
miners are, firstly, that the actual work of a miner is wh<>|-sumc,
producing a high standard <>f health and physical ellieiency ;
and, secondly, that practical skill, scientific knuNvlcd^e. discipline,
mutual loyalty, and good pay have more than outbalanced the
natural risks to life of mining. One source of danger alter
icr has IMC n faced, studied, and then mastered. Down
the pit, in the offices of managers, colliery staff, and mining
engineers, at the works where all the splendid machinery now
used is designed and made, in engine-rooms, in scientific
laboratories, this work of studying and defeating danger has
gone on, side by siele- with the work of studying and 01 BTO ming
the dilliculties and reducing the expense of getting coal. r l he-
trade unions have played a most valuable part in obtaining and
keeping a good standard of wages and, as one consequence, a
good standard of nutrition. Under that system which, accord-
ing to what seem to me the singularly unfortunate words of the
rman of the Coal Commission. " stands condemned." 1 coal
mining has by continuous human effort been made, in spite of
its natural dangers, considerably safer all round than average
occupations in this country.
To illustrate this statin nut I may briefly outline the story
of how the danger from explosions has been, and is being, met.
In former times these explosions were attributed exclusively to
the explosive gas (firedamp) which is given off from freshly
minl coal. Effort was therefore directed towards the removal
of this and other gases by ventilation. The laws of distribution
and flow of air were studied, and the knowledge gained was
apph- d to pra< i. Coal mines won for long
s HO arranged as to warm the a < upcast
haft and so create a cin v, h-.u
til* lieirnt. safer, and less expensive < fan was
1 practical!) .-ill M! inincH arc now ventilated by
m at tii- top oi -ast shii: ' method
! damp was sin
-'it them with i . the
official who
vkiii'^s before :i shift goes in
M hers of safety lamps the
danger of ac \ lighting firedamp wa^ mushed,
now nearly all coal miners use one form or another of safety
p.
e whole qn >f assuring safety from explosion
>al mines began to assume a new phase
when . a ! - -an ago, Mr. Galloway ( t imc a j \ :
i iisp d out in t
r opposition which 1<.1 to his resignation that firedamp
ul. .in- will not a< >sions, and that coal-
lust plays ;i pr (l..iniii;itit part. His i<lcas were soon c-
and (\trndl in a book embody observations and
r junior inspectors,
Messrs. W. N. and .1. I 1 .. Atkinson, who, t'..rtunat c-oal-
\X and f.r the crrdit of tlu- Home < >
uraduali. . ailrd. till at last it was
reeojjnisrd that coal-dus 4 t t he presence of even a trace of
of rxplodini: \\ ii air, and is
illy responsible for the jjn-at los- ry great
\< pt i- -n. A great explosion may be started
>m a
shot tin-d to Mast th- (oal or rock is th< star 4
most t<Tril>l<- - 1 that 'iirrieres
('..Hi i ; were killed
oer i the complete abaenoe of firedamp. To meet the
clanir tlameless explosives w< ised,
togtt .-ant...: total avoidance
hod of meeting the danger
was to water the m id roads so far as this was possible
without making the roof n- 1 was, how<
practical*]
\ few years ago another method that of adding st<>
ads was tl out by \\illiam)
rth. applied in t! his direction, and
partially tested by experiment in a specially constructed gallery
9
the expense of the Coal Own -cial'ion. These
experiments had to be broken off as they wen- too <lam_rTous.
I WSJ present \\lieii part of the gallery was blown to fragments
and heavy pieces of boiler-plate Inn-led ri^ht over our heads
>\ hile we were standing watching on the mam Midland line. The
apparatus was moved to a safe place on the Cumberland ( -oast,
MI. nts \v re continu. d at ( i< .\ eminent expense,
finally shewed that u hen equal parts of shale-dust are
d \\ith coal-dust the mixture cannot he ignited in the air
iest shots with (laming e\|>l< by
gas c\p!< Large i> s have now adopted
the I i -ting, and > every reason to in 1
y are safe from disastrous explosions. All the recent
explosions have be< n in eollieri. WB* no artificial
-ting and tl - ; al precautions taken were hardly
more than those prescribed by the existing Government
regulations.
It is SOUK times sin ut standard of sal'
and health in coal minim: is the t -lative foresight and
inspeetion. This is only the case to a certain limited extent,
Legislation and inspection have played a most useful part in
'aining a minimum standard of mining practice in relation
to safety; and individual inspectors of mines have, up till
recent years, made very valuable contributions, as has just been
illustrated, to the common stock of mining knowledge. But
actual progress comes mainly from those engaged in the induct ry
itself, or in close touch with its problems. When Parliament or
i lome Office has attempted to move ahead of well-established
mining practice the usual result has been dismal failure. One
potential defect of Government regulation is that it is apt to lead
to endless waste of time, money, and energy over mere triviali-
ties. Over-legislation tends also to stereotype methods which
have become obsolete, and so becomes a direct hindrance to
progress. Unfortunately these faults are prominent in con-
n with various details of recent Government regulation.
Waste of the time of managers and inspectors is in reality a very
serious matter, since it k-eps them from the important pro-
gressive work which they ought to be doing, and so far as I can
judge this effect has been very marked in recent yc
organisation of the mining industry in connection with
speci; tific work nlatin-j to mining is at present \
defective. The only research laboratory in direct touch with
coal mining is that of the Donca-ter Coal Owners' Committee, of
which the late Sir Arthur Markham was chairman. The
American organisation is now much more extensive than ours.
10
> the organisation :idu-tr
alth and safety b i ' I
progress s the organised co-opera-
\ >ay mention th
it head baths and louses f
'.-s in i! ranging t -thcs and washing at th<
pith, ad have been
was I .it head has been the universal
fully
m ten years ago by tin Royal Commission on Health
and f K-s, of whicl I was a member. Or
recommendation tl pithead baths was made
com]
p
'iimissji.!.. \1 .1 * Kobcrtson, now
M I'. Ibf tin- i{oth\\dl d . gave a : pirtun- oi
nul lirt
il.lr n. l.\ husbands and sons coming home
i.iiiL.' an.i ' i full agreement
\\ith hn
he obstacle to j> pithead baths has been
1 suppoi To me person-
alls it was a k< cars ago, so
; i iiuliff- hut I tli-u^ht that 'ili SOOn
as a r \v legislation. 11
hich the prcscn'
> id baths could be dealt \\ it h
Nsfully uiiiiittees such as v
stion and the prac-
ts are a tcrs in \\Inrh such
lllttc(s . -ily !>< \( TV Useful. I (io M"t thillk
strict c. iimnitt' 1 mining council could
ntly do tli- , r on pit
nittcrs ;
ct.d uith mining could be dealt with -t hy
laboratories m close local t<
ll
APPRENTICESHIP.
Domestic Training.
:ENTICE8HIPisone <>f those few things which arc nni\ Of
,1. It c.-riainly eomi.ines a good many advant.--
It confers a status on the aspiring craftsman ( ,r craft s\v. .1
ts up personal relationships of considerable interest and
advantage for the parties. In opening the way t<> livelii
asises the specialisation of work. Specific training
promises a fairly sure footini: in me definite branch of indnst ry.
1 conditions of apprenticeship in this or t hat branch
may, of course, be less praiseworthy than appn ntici ship in
the abstract. In some cases, for example, the term of appn-n-
ip may be too long: in Others the training is .vcrappy.
In some trades apprentice ;m- admitted too freely, while in
other-, refltrii . But apprenticeship, in the l-i
meaning of training, is indisputably a innx! tiling. For lack
of training the output of work suffers. Workpeople suffer too,
and not only because their earnings tend to be low. While
contentment in work arises partly from the concrete rewards of
work, it depends also on the measure in which work confers
status and ministers to self-respect. Work that can he learned
anyhow and done at haphazard, that is not recognised as
suitable matt rial for method and training in short, for the
application of intelligent standards will always leave those
who it ill-satisfied. A great many women's employ-
ments are of this unfortunate character. They are looked on
as incurably unskilled and intractably casual. Women drift
into them, and out of them again. Even if they lr
rather long in them they look on them more as makeshifts
than as careers. This is p inevitable. Home ties and
prospect of marriage will always tempt women to regard
employment, the preparation for it and its working conditions,
less seriously than could he wished. But inevitable as this
may be it is also disadvantageous. To be unskilled and
untrained, to be without quotable qualifications or statn
a miserable condition. So far as it is possible it ought to be
amended or remedied.
With these general suggestions in view let n> consider certain
difficulties about domestic . Definite training and the
more assured status that results from training ar d in
many women's employments both for the sake of the work and
12
of t) I f women ^to home- life
least as rrtfunls soim- mpl<.\ in< nt s. Hut thi>, is n . .t s> with
hut a woman may have gained in domestic service*
!
a woman an advantage when she eoraes to have a home of
t v as a matter of fact, a
has tear, i has set herself
'li stmj.l i business life will not he overcome
later iy tl.-- pr-.i.l. m . ..t' house management, On the other
nan who* without t: without exact req
tias passed years in
> the tasks arc i is a vast
<hffnvmv u-txM ( -n a h.usr - l and order and one
run.. lns< ..at!. ling can be had,
hut 'ic case. Then- un rlcss
i instances, girls as they
encouragement m home
<lM he v
iat arran I t-.r training dom<
i be popularise (1 and domestic efficiency promoted.
nal auth i .ve done something by establi
ses. But these ventures are on a small
scale-. It is possible that t has supplied an important
on Mary's Auxiliary
more familiar as the \\
W.A. \ .* r undertaken \ sorts of work for the
cse are gra \ -sitli
ued, is dom< ' has been a
good sch many LMI N. work of a camp is,
:it fn.iu that of a private h"Use, hut the difference
ar^unu
t ti irnpossihle. I'ainp tfl introduced the LTirls t"
taught then . obligCli the
id the advantages of ortlt rly
ipS not (JUlte
.lillii'iilty N^
not ! 1 have been comparatively trivial.
s had been \iliaries not of an army but
But the essential idea which the
organisation of the \\ \ L( - !u>lds out is that of dom
;>hne and un
gcni m nut hod and set a steady
18
standard ility, For the purpose of thib
argument it is a- 'it t hat 1 IK \\.A.A .( at taehcd to
the llritish Army. It is an essential point thai the \\.-rk they
have done has not been " schoolro' so to sj
I nit real work. They mi^ht equally
well have been attached. fr c\amnl< , to the Huston Hotel or
to some M ! . Lyons' .rants, or they mi^ht have
provide.! the staff of some ho!ida\ institution. BOme all-t he-year-
round l-'ortnitfht-by-tlu'-Sea scheme l'r rel;,
Their Organisation miu'lit have thri\. n as well under an educa-
nty or a philanthropic society as u der the War
Oil!
The running of s me great Poor Man's Hotel 1>\ the sea Of
among the fells would Beared^ interest the uirls who Mocked to
the \V.A much as the : ! of working direct 1\
the British Army, or in <piitc the same way. Hut the change
ti-om tin- military i .vil footing need involve DO seriocu
break in continuity. The NV.A.A.C. idea has enough vitality to
accommodate itsdi to civil ends, while retaining enough of the
quasi -military discipline to give momentum to its activities.
Many people are asking \\hat is to be done with the \\ '.A. A
The prevailing view among military authorities appears t
complete demobilisation. Th ( r<- is no harm in
if an effort is made to formulate clearly what the L r irls
have gained from their experience, and in what analogous form
the organisation can be turned to civil use. And there is no
doubt that the Administrators of the W.A.A.C.'s are a remark-
ably capable body of women. Many of them, if not most, haver
fallen in love with their work. Many of them are well lit led to
run an analogous venture under civil auspi
It would be melancholy if the W.A.A.C.'s should pass away
and leave not a wrack behind. Under the County Councils or
the Board of Education the reconstituted W.A.A.C.'s might
become a valuable traim ,'irK in all domestic
_rirls would work and they would continue to be taught;
and the W.A.A.C. undertakings mi^ht he made practically self-
supporting. A great stream of jjirls would be passing constant ly
through the ranks and out into self-respecting work. They
would have the advantage ever afterwards of having an in-
stitution In-hind them. The community at large would gain in
various ways that will occur readily to anyone who will ponder
on the matter.
14
PUBLIC I ilMAKIIS: A M NV DIM I <>I'MI \|.
is how little puMie interest .hhe
.ries. Ti f course, a wide popularity with
isands of si /:..!:
n the character 'f their \^.rk. N I
electors in November with a public
t hcmsclvcs may give, on a cursory
insp- the imp:- seated complete,
/ a few books annually >>< m^ except ct I
a buildup ;uid furn: sbdvet with books,
an educated and obliging man to assist the public
to find what they wish to read. The rest lies \
1 ar to year little change can be seen in the premises,
ik, or the staff. Hut the appearance of finished
development and all-round s ..- n.t to be trusted.
' ility t! and a measure of
helpless sta^r not t..., \\.ll f,M-rided bel -fessional
lily. Tin- causes of this are to be sought in tl
Ixxfies which :m- n-sp. for the libraries 1
is One tiling for ;i romm . !y to -st;il>lish a library.
te another to face the iin|)lic:itions of a library, and to
Lrrowth. K\cn if ;i coiiiinuiiity were pre-
pared to do tins, it must lirst surmount a legal obsta<
put n prrmiK obscurantist resistance.
mt pul)lic hhnirii-s .. t ware of
. ,,f l,- u r;ii h<'cks on levclopment
would read the Act of 1855 with surprise, and would search m
reasons why a munieipahty shouhi not be as free to
uey on a library as on a bath-house or a dcj
Hut more will be said on this presently.
1 1911 Glasgow took the lead in establishing a techi
It .1 rp. M.I, Hrad-
. : 1.
At tl \vnsarccon - their arrangements,
: l.ut th.it this development will became
popular, provided t hat and t ilieessci.
the ran be found. Hut it is probable that unless the
itory hi i penny rate can be removed, th.
development will n..t have the vogue r In a
way, everyone will feel that the institut com-
mercial lihraries is in keeping with the spirit of and the
new eagerness for knowledge wlueh the war has fostered. Not
only that ; the commerce and the ii - of the nation
have, unfortunately or fortunately, no practical option but
15
to seek after knowledge and ideas more than in the past. and
to use con- - intelligence upon their problems. The
public libraries that would gladly help the trades in this find
themselves barred by poverty, and by an artiiieial poverty
imposed by an Act of Parliament seventy years old, slightly
relieved in some cases by special provisions, \vhieh raise the
limit to a twopenny, or even a threepenny, rate, but in no case
leave a community free t- \\hat it hk<
As regards the work of a commercial library, let me outline
what is being done in t he typical case of Leeds. Theaccon
elation at present is one large, comfortable room, the shelving
of which will not suflice for long. Tl . in genera!
the t and the most important \\hieh the library
possesses upon th-ir subjects. A long series of Government
pnbheati . Uritish, Colonial and American, is available.
These include many series of patent specifications e.g., the
:iian specifications from 1896 to the outbreak of the v
and, of course, Consular Reports ; also books of descriptive
geography and travel which have commercial interest ; works
on all arts and crafts and aj)i manuals of banking,
accountancy, advertising; labour literature and hooks on
industrial conditions; in short, you will find books on all
sides of commerce and manufacture, human, technical, geo-
graphical and political. A large selection of trade journals is
kept ; from these a collection of cuttings of the more important
articles is being formed. These journals, like the Government
publications, are almost exclusively British, Colonial and
American. Foreign periodicals will probably appear in greater
numbers when the world settles down to peace. Another
interesting feature is a collection of atlases and of all sorts of
directories and year books, some/of them foreign. The chief
remaining item is a series of trade catalogues, which it is f..r
traders themselves to help to keep up to date. All of these
collections are card -indexed.
That it is usually difficult to find an empty chair in the room
is proof that the people of 1 appreciate tin new venture.
Those who desire it may have the help of the specialist staff,
not only in the routine work of selecting bouks or obtaining
the answers to questions, but in more ambitious work e.g.,
tin- preparation of memoranda. Telephone inquiries are wel-
comed, and they are being made in growing nun J \\
local lists of some importance are kept viz., a list of all com-
mercial and manufacturing firms in Leeds, with details of their
business, and a list of translators from foreign Ian #11
A " query " book is kept, and the following " queries " picked
16
I '1 ', ... : .', I :.- -. .
-
,,f i HJ of sweet-making DM
road I.'M nif it on
mi rev (<)) hit rat i. MI nf sewage ; (7) co-
(8) ma:
I will I)- ' above that th^- i,. \s rf, renoe
Leeds cast . embody a tiis-
ii new and good. Their aim is to be an
intelhj/rncr r tin- business ooniinuinty. They
will ha\r I" li^ht agfcil
I'-ui.t. an.l also against the jealousy of those agencies v
are already wo rl lie same end. 1 libraries
have an advantage in their public and non-sectional character.
itelligence staff
towns, j s and i )>> uorkm^ m close
\\ith existing ;t u r ' 'I'ii- two indispensable
.t-cess are up-to-date htrratun an.i a competent
taff of experts. The basis of both these con-
::iust h- rub. At Leeds tin-
, hunt on C\JM -iitiitun- is tin- pnxiut-t of a twoji-
to a sp( unt allowed
in the LTi-nnal Art . f 1855. As the t \s, ,JM -nny limit has been
reach- :. <r is :il><>nt t.> be reached, Leeds is uithin sight of a
1 to the penny rate,
cannot < bark on a commririal >J matter how
iy good tin- n-\v hl)rary pol. how
cheap i: .ing it might prove in
time, im public authority can c\crci it> statutory rate. Muni-
cipal .1.1 regard tbr expert staff and the grow-
.:u f o >al literature as dead was hers,
conliilcnt ..f the pel the expense, were t
Hut t hey arc all bOV of 1855, -r !>;,
sptcially promoted. If the
lici-
paht , stint IIHMI tnnicipalities together n
make short work of any Ai that laid a
:i limit upon sanitation. M s have long ago
vmd (xiom to AP; 'heir expenditure, apart
of loans, as they plcax
:.;h that
'ii resptit >f libraries is an in:
It-gium against knowledge. nesses to the obsti
oars ago. To-day .
an anac) , a provocative and malicious anomaly. What
is wanted is a short Act repealing the main Act of 1855.
17
ECONOMIC INDEPENDENCE.
ONE of the rao^ to progress is the
begging epithet. It is frequently employed by the labour
agitator who has had little or n > nee in t he administration
of labour affairs; hy the tariff reform propagandist who has
never had business expori< nee : by the advocate of land taxation
or prohibition of the drink i rathe in short, hy any and <
:>aiu r ner who k: value of the catch-phrase in
furt herini: his aim. I)urin: U I year or two we seem
destined to hear a great deal about " economic independence."
Already there are signs of a strong and healthy reaction against
the M subsidy habit." Every industry, we are told, should
stand on its own bottom. A nationalised coal industry which
did not " pay its way" would be a calamity. A permanent
subsidy on imported wheat would mean universal pauperism.
v nation, moreover, should "pay its way" and restore Un-
balance of external trade. " Economic independence 7 ' must be
re-established at the earliest possible moment.
The term is worthy of closer discussion. It does not signify
economic sell-sutliciency. Individuals, regions, nations, even
continents, have long since abandoned the ideal of a self-
suilicicncy economy and accepted the fact of their inter-
dependence. Independence, in the sense of self-sufficiency,
would again be sought only if world-wars showed sign
frequent periodic recurrence, and legislation were based on their
expectation. Such a policy would end in world-disaster. The
term economic independence, then, signifies something quite
different. It is a legacy of the Political Philosophers of the
early nineteenth century, who were nothing if not thorough and
consistent. They accepted the implications and corollaries of
the term, which they examined mainly from two standpoints
those of the worker and consumer.
They held that the worker should receive, and live upon,
what he earned, neither more nor less. The Speenhamland
policy of granting subsidies in aid of wages was condemned
without reserve. Those who were unable to find work which
would enable them to exist without the assistance of organ
charity were qualified lor institutional treatment under the
Poor Law. Inability to find such work was, indeed, attributed
to lack of /-st in its pursuit.
Nor were industries to be encouraged to rely upon external
and artificial supports. They, like individual workers, should
be self-reliant and able to meet foreign competition by drawing
upon their own reserves of energy and invention. If these
18
-. io much the worse for
dom ..i rise and of trade wit
corollary of UK* <1 economic inde-
pendence." Consumers, again, should pay for any article what
it cost t< Fhif end would be secured l>> unrestricted
comj>< tit i. .11. v. uri, would also p h wages
representing what he earned. Taxpayers should contribute to
t he benefit conferred upon
tlirni h\ th< : such revenue. People should get
ud work for what th< \ got.
Uy stated, u:i i lais$a favrt school
of thought. It rested up -n tip i. li-i in t he ** harmonies " of
the com | prevalence system.
;il value of
**ec<>' and thr opp to posr
:i in economic affairs h\ ite, such action being
described as "fata encroachm Hut thr
forct i instances was too strong, and a powerful reaction
\sas tirst obscrvji!)!- 1 1 it ude towards
thr probh -in i.i' tax.v nn the difficulties of trans-
tlu-.n-y .r taxation into a definite system,
it came to be ft It t long as the revenue was employed
wholly in p : public services that is, services which
erred benefits on the people as a whole payment s!
be exacted n>t in ; <>n to the benefits received, but in
accordance \M 1 1 : ability to pay. The next development
\ved rapill\. ttcmi which had previously been
regarded as part >useh<l<I budget," to be met on
wages, were placed in tin category of public services, and a
start was made in t \\ of a " modified communism. 9 *
n becai pulsory, local services became
re levied on the principle of
to ability. Moreover, thi- -f an
indirect subsidy to .uicrs" was adopted in respect of
oes which were once regarded as a legitr targe
i wages. Old-age pensions were granted without contribu-
: health and nn< mj.l. -\ ?n. nt insurance was made com-
ry and contributory. Medical treatment and meals were
granted to necessitous school child i \ ttcnu nts in respect
ives and child < allowed upon the taxes paid by
It is noticeable that in dealing with education no distinction
was drawn between rich and poor. Hut other services, such as
the ] food for necessitous children, were of the nature
19
of relief, and restricted to the relatively poor. The most
significant, 1* . are those formerly regarded as diar^'able
to the income of the "independent " \\<>rker. hut now directly
or indiivetly suhsidised by the State. The wage-earner is no
longer "economically independent in the lense in which the
was once employed. Grants-in-aid of relatively poor
districts- and abatements of income-tax to people in receipt of
moderate incomes which provide for dependants, may also be
regarded as weakening the old significance of the term. All
represent an endeavour to secure ultimate distribution according
to need rather than earning capacity.
The growth of monopoly has similarly affected the cousin
Where competition is effective the price of the product will be
determined by cost of production, each unit of product bearing
amc proportion of the overhead charges as every other
unit. The price is, therefore, uniform over the total product,
and this represents the price which the "economically inde-
pend' nsnmer should and would pay. Under monopoly
conditions, however, the consumer is charged what the market-
will bear in some cases little more than prime costs, in others
a price covering a "disproportionate" share of the fixed or
overhead charges. Railway companies issue tourist and excur-
BOO tickets: tramway companies give preferential rate
workmen and people travelling at certain periods of the day ;
eh ctricity and gas are provided at different prices for diff<
users; even doctors' charges vary according to tin presumed
incomes of the patients. Consumers, therefore, enjoy subsidies
without being aware of the fact.
If, again, it be taken for granted that an industry should be
self-supporting, the question naturally arises whether the same-
principle should be applied to each producing unit in that
industry. It is held to be an advantage of State ownership t ha1
some units coal mines, for example might be operated a t a
which would be covered by the gain enjoyed from other
units. The independence of the industry as a whole need not
prevent parasitism within the industry. We are not h< re
concerned with the expediency of a policy based on this principle,
but merely note the fact that it denotes a departure from the
meaning once attached to economic independence. If certain
units are subsidised at the expense of others within the same
industry, such units, together with their workers, cease to be
M independent."
The most recent pronouncement of Government policy
indicates an intention to provide support of some kind to
"unstable key industries." Industries were subsidised during
20
war for sp. ,-ial reasons. Thus special subsidies were paid
aid steel maimfaetiin r-> t *tie neoeflttt>
I
Vgfiin, some colliery companies
were subsidised from tin M j, : -..:it " ..t others to restrict the rise
in prices necessary to cover the costs of wage advances to
isumer* it are subsidised by themselves.
H<it the necessity for these was created by the war; ami
rmal conditions pr-.d i.- 1 h\ war w< taken into
int l>\ tii. . atl\ nineteen! i. ists. Subsidies
purpose of facil prosecution*
. Economic strategy is
Hut the p" lustrics" is not
lie strategy is part of the strategy of peace.
\\ it I).- justiti.-d. may^be
fostered by such : the
l
same criticism will
ipply t.. which are merely protected against the
duiit i>m com mplc reason
jK>rts are sold at prices below th- ir own
COSts
Iris !>,-< n st.-it.il it will he clear that the term
44 eeo 'st iiunl arly significance.
ild it 1). th unlrss its connotation be
mndeexplie least implied in the cont I *rong
reason to believe tl !1 emitinue to march in the
<le<>iiui t o raise the standard
r free or at
Gfl which in\.>l\c nil puhlic fun
nhl ss pro<l -is no longer
accepted as th ! State can no long<
imliffrn-it t> t he category of goods provided ami
\ \vill it he ahle to ignoi as under
;i is ( am< (1 on. Social and political considera-
ti.Mis uill play an 'iiportant p.-t jhtly or
. |)Mlitieal
unstahle k< y industries"; social
,s will deternune its attitude towar I, on tin-
problem of decent ralisa-
pnpulatinn. Whrn p..iiti<al and social factors t-
rid the sphere of M puhlic
.ix r -d. M eoooomic independence n will lose even
more of the force whieh it once possessed as an ideal.
SI
THE INTERNATIONAL.
II. During the War.
JUST prior !' the deelarati !> >rilisli section of the
il Bureau in London received th<- reports of tin-
delegates who were retimuipj lV..in a meeting ,,f the Inter-
national Socialist Bureau, held on the previous day at Brussels.
The British section i-sued an appeal, signed by Mr. .1. K< ir
Hani ir. M.P., and Mr. Arthur 1 1 em !, ; -son, M.P., calling on the
kers to strain every nerve to prevent their (;<>\ < -nmient
commit tin-: them {,. the war. It also organised a hu^e
demons! ration in Trafalgar Square on Sunday, August -Jnd,
1914, hut l>y Saturday, August 1st, Germany had deelan-d war
on Kussia, and on August 5th Great Britain and Germany
were at war.
On August 6th the Labour Party Executive passed a i< solu-
tion stating that t he war was due to diplomatic policies aimed
at maintaining a balan< . and that Sir Kdward (in-y,
without the knowledge of the people, committed the country
by promising to support France iu the event of any war in
which she was seriously involved.
At the above-quoted meeting of the Bureau in Hmssels. the
International representatives stated that "they considered it
an obligation for the worker^ ,f all concerned nation
igthen their demonstrations against war, and in favour of
peace," but with war actually declared the Trade Union and
Socialist representatives in Great Britain found themselves
divided in all directions on questions of policy and activity,
and a precisely similar result followed in practically every
country in the world. There were not only broad divisions
between Trade Unionists and Socialists of the Allied !><,
and Trade Unionists and Socialists of the enemy Powers, hut
within each of the countries on both sides party strife made
any possibility of a resumption of international relationships
exceedingly remote. Certain sections, however, never wea
in their efforts. Sectional Conferences and interviews -official
and unofficial took place ritrlit through 1915, but an Inter-
national Socialist Bureau could not be brought to^-ther.
On May llth, 1915, the British section detailed Mr. Arthur
on, M.P., and Mr. .1. Bamsay Macdonald, M.P., to
proceed to the Hague (where the offices of the International
had been established after the capture of Brussels by the
Germans) in order to report to the Executive of the Bun-au
the position of Great Britain. Mr. Henderson's acceptance
of a seat in the Cabinet necessitated his withdrawal from the
Cation, and it was therefore decided to invite the secretary
Camille Huysmans to visit London. He arrived in March,
22
with M
1 i ' ! bian
and tl 1
I pressed r a meeting of
decided
to gi
oatl ' was prepared to support an
peace. They v
mans and Van ! results could come
the majon'
ish s.ehon dr .Id take n.i part \
i and Belgian soil and the
and ! fused to MO acts of military aggression and
i ' ( , : pan
/inn I '.ntish delegates,
passports brini: unoht. and tins
HOW tO 1 d "lit.
\ r passed, during which the only <\<nt in
worth recording was tl pt of
Labour Party to secure a (
Paris i;jth, 1917. This Coi:
, was postponed. The head. > ional
.list Hunan weiv a^ain mo\.-d. this tune to Stockholm,
and were pnt temporarily in ..Is <.| a Dutc-li-Scandi-
by Branting, the lead*
lish 1' sought to arrange a
nalitics
engaged in the war. An in\itati<>n t. participate reached the
Labour Party, but ibour Party
ii<l to try and call t : ' '--Allied -nce,
!y at th<- end 7. and : the
Ami IK an 1 f Labour. It was agreed that all the
and minority Bed the Al; '.' -ties that is
to sa thos, who we ' ;ind those who were
again t the wa; same time the
1 of \Vorkm n's and S- -s issued
us to a ( h was to tx t Stockholm.
This 1,,1 t..
reasons that are \\. 11 known, the delegates
rograd, wher were to have
isscd the proposal.
Mr. Henderson w issia, and his rejx>rt was
awaited with uie.tt t. On his return it being clear
that the Knssian delegates were determined to lu-ld their
conference, wlntlur the Hntish l > arty were present or i
II
British Party d. ei eed with their own Inter-
Alh'-d ('..ntVrrnoe, and to call it for August St h and '.Mh. Hut
the divided activities in IVtrourad. Stockholm and London
had SO complicated th I ll rnational Socialist and Labour
position that it was dec t- further postpone the
Hritish Conference to August 2*St h \ news
<>f 1i -ion reach' d P< 1 r< "_ r ra< 1 tl.c Stockholm Conic-
was also put off.
6 Labour Party then railed ial National Conference.
which met at the Central Hall. \V< tllliniter, OH I-'riday.
August 10th. P.H7. and it was d- -rid. -d to send del , the
postponed Stockholm Conference ou condition that it was
consultative and not mandatory. An amendment to negative
the appointment on the ground that drlcgai i<-my
countries would be present was lost.
iout trouble then followed regarding the appoint ment of
delegates, the Con I'm -nee insist ing on excluding the Independent
Labour Party, the Hritish Socialist Party, and the Fabian
Society from din ct re presentation, and upon their right to
select the twenty-four delegates decided upon from Un-
parliamentary Committee of the Trade Union Congress, the
Labour Party Executive, and the Conference that was then
ting. This being entirely against the basis of delegation
arranged by the International Socialist Bureau, the Executive
of the party found themselves on the horns of a dilemma.
They had either to reject the decisions of their own Confer
or throw over the constitution of the International Socialist
Hurcau. On this being realised, the Conference was adjou
until August 21st, so that the position could be considered. It
was as a direct result of this conference that Mr. H< nd
left the War Cabinet.
At the adjourned Conference on August 21st the Labour
Party Executive submitted a resolution that it was still desirable
for the Hritish Labour Party to be re; d at the Inter-
national Socialist Congress. This was agreed to. The
Executive then passed a resolution which would have gi
the I.L.P., the B.S.P., and the Fabian Society direct delegation
in addition to the twenty-four delegates previously mentioned,
but the Conference rejected it by an overwhelming majority,
and the resolution of the previous Conference was carried. The
Russian delegates and the Dutch-Scandinavian Commit tee-
subsequently sent in protests against this exclusion of the
minority sections.
Meanwhile the arrangements had gone forward for the Inter-
Allied Conference, which met in London on August 28th, there
being sixty-eight delegates present from Helgium, France,
24
tussia, I e, and Great
>n Congress
.pool, and there again resolutions were pasted in an
ivour t<>
< >n ward the Pa
< mitteeo . Congress comes defi
ii.il movement. SubseqiK
.mitt. . i ;tnd the
Uttre Oi I
randuni of War
," an. I ..ii l)ecemb< nt \sas approved by
-I l> I i> parties. It was thereupon
led to c another l< k I and
Socialist i 1.
him on War Aims wa^ ily acccj
The essential part of tin- document was that there should be
peace terms " in conformity with the principles ol no anm \a-
[>iiniti\ <iities, and 11 peoples to
The Memorandum was sent to '
Socialist pires. and the replies thereto 1
since been pnMish-
18 Saw at least h. r att<ini>t t<> l.rini: th' !
aide Unionists and S ialists t
tinal
at \\hich r< presi ntati\( s \\rre present :
Labour an Canada, in
most of the count ; tied, was
again ai
< was declared, and the Labour and
i made a series of attempts
'he peace terms, the la ..st important 1
( ned iu S\\it/.crland
m 1 r.'i-'. Man] * ' nost prominent Labour men
>us reasons, to attend this
bul .1. II. 'I . M.I rt-Hunning,
Ramsay Mae , Margaret Bondfu
n), and John Mciiurk were
among those presen cnce was (airly repres*
i .01 nas, Mistral, Longu :! were an
present i i aince, while Wt K. -
tsky were typical of the
German delegates, i was a gentleman described as
l 'omrade Gavoni issia, and another named Bachinger
from 11 uni:. known personalities were Vibert and
: :lld.
cnces, none of which have met with any real
success, have recently been held at Berne. At tin- last Con-
ference. h,!d at Lucerne. 101 nations were
vsented, and the n; Second Int. mational were
summarised as f : -" To r alist m<> \CIIK -nts
into one great orga : to maintain in tin- ' -nary
periods a Coi ih distinct cc..n<.mic
objects, l>ut with national ds determined by national
conditions."
The Future attitude of the Trade t Ifl undecided. Then-
is a movement on foot to create a Trade Union International
quite apart from the old Socialist and I. Intcrnati-
Thi> .nt is being well su] I by the American Fed. r-
ation of Labour, tl ration of Trade I'nions in
England, and at least one large section of the French Trade
Union movement. Mr. Ilamsay Macdonald hopes that the
lc Unions wiil not join the Second International. In his
men! sh,,uld he purely political, and the Trade
Unions should co-operate with it through i D Enter-
national. The Trade Union Congress should not join \\ilh
the Labour Party nationally to share votes in the Socialist
rnational. "Its special work is to see thai the Industrial
International is not captured by a f<-w nonentities of the type
that seemed to attend at Amsterdam in too great numbers to
represent America and a small section of our own Trade
Unions."
Mr. Macdonald dismisses the so-called Third International
(Lenin's organisation at Moscow) as the transient creation of
a revolutionary period. Moreover, there are signs ol hitter
antagonism within the component groups of the Second which
must be reconciled before effective progress can be expected.
In (i< -rinany the Minority demands the expulsion of the
Majority. "In France, the old Majority, led by nun like
Renaudel, becomes more and more impossible. It is not so
advanced as the group of Free Liberals in the English II
of Commons." The Belgians are no longer Internationalists,
and the multiplication of the small nationalities has further
complicated the situation.
Of the future it is impossible to prophesy, but that some
form of International will ari-c once more, chastened in spirit
by its past experiences and con lining itself probably to
ambitious projects than those that distinguished previous
:ievitablc in the development of future events.
Capital, Finance, Trade and Industry all tend more and more
as the years pass to vast and complicated international relation-
ships, and the working classes cannot take their right place
in the new world-organisation without cultivating international
relationships on a corresponding scale.
26
VII WS OF THE MINORITY PRESS.
any rcuponsibiht \
-r tii. .ii . L:u-j who art* now paying the
lass-war" strategy, George
thus en rs to regain the confidence
vs he has misled and will mislead again and
again u> n his n h Mr. Lan
justilie tins be the end ever so \<
and controversial and to disclaim rcsponsibi lures
pose, as permissil.: nacy.
Mon-ovrr, Mr. I.ansbury possibly did take can- nt to he directly
responsible t'.r a i]
of a httlc of the \n^ {
thos< fmilJ iii
At the tiiiu- ..! ol Labour Party i^
be local In this they stated
illy s;ttisti-,| that this is a >
satisfied
oqeed m hn-akm^ the l 1 i
1 turn th* i to smashing the power ot
Postal, and ' . and will setae
:lilc as an excuse for tl i fixing of con-
'i MI upon us, and v.iil throw back the Labour Movei
years at lea re advise the trade i.
rt t he Police- i ans in their power .
and to disiv^ard entir.ly tli. PftM lisputr \sitli
Labour icwspapcr. tin- llcrcdd"
ir ntly it was certain t< -uld IK- relied upon.
|K)ol pc.l ken theius,-lv. s isMied a bull
in which they stated that "eith. r the p., hoc are ordinary
lie postal sei
e a trade uni- n. t hm it is or soon w ill
be a en v workmen,
ire to be regarded as an armed force t. support tin lio\
men' ;vil an!
case they become a caste fellow-
Qfl in trade
Th
organised labour, the p<lice can win even n> -landing
the py*Tg of the Polu c Hill. One grave aspect of this matter
17
is that if tliis Union is crush, 1. it is but the beginning fti d,
attack on Trade Unionism, and proridng-etaa leaders may soon
bitterly regret that they did imt strive t> their uttermost to
nt radl a thing happening. Again, the very fact that the
police, a body speciall, apitalist society,
and often used against the v. that this body of men should
have organised as they have and gripped the principl.
Trade Unio; \\onderfnl, and should have commanded
the utmost help of the \\hole Labour movement."
The Daily Herald (August 4th). a Her urging everybody to
" down tools," points out that the violence in Liverpool is not
the work of the strikers but of the (iovenmunt. " The
rnm nt d. ti deliberate and provocative attack on
the whole Trade Union position, and tried by l.-jislat ion to
deprive the police of the strike \\eapon itself. The (io\ eminent
challenge! the strike. It caused the strike. It must hear t he
responsibility ( ,f the Strike.* 1 Protesting with elaborate caution
that it could not accept the responsibility of advising men to
strike, this j n August Gth, advises its readers that it is
incumbent upon the whole Labour movement to baek the police
strike. " The Government's Police Hill is an attack not m
on the police, but on Labour, on Trade Unionism. The Trade
Union Movement lias accepted the Police Tnion as pa-
itself . . . this is no ordinary trade dispute. This is a <jn<
hieh every trade unionist is as vitally concerned Bfl are the
police themselves; moreover, there is the direct obligation of
honour. The police have been given to understand by definite
trade unions that they could count on the support of those
unions. They have counted on it. It is unthinkable that those
who gave the understanding should not stand by it."
Writing in Forward (September 6th), ex-Inspector Syme (
of the original founders of the Police I'liion, but opposed to the
strike), invites the Trade Union Congress, which was then
about to meet in Glasgow, to examine the facts of this terrible
fiasco" in the light of his own disclosures. And a re-readir
the above extracts in this same light shows how prone men an
to misinterpret and to suppress facts \\hich threaten to impede
their aim, and the events at Liverpool and elsewhere show
incidentally how easy and how calamitous for the victin
it is to foster discontent and drive nun to most desperate action
by such misinterpretation and suppression.
"Since April l. : pector Syme writes, "much talk
has been indulged in by the Pn-idrnt and Seerctary of the
Poliee I'nion and by the Daily Herald about the present Com-
mi-sion of Police militarising the Metropolitan Police Force.
28
When General Ma< < was ap-
illi(l in:
1 1 ry element just
rse. Two >nstables have been a; i l>>
DM in th. hist..:
sen men were policemen who had
i'uil.l up a ea-s
bases is absurd, and could n suit
has <KV i
iiscribes the respon-
1 s Marston and Duncan
1 se ncgot r George Ca r the
I in the signing of
r-e Union should
-.."il.it !..!:> and discipline ot
ce force to withhold
that t! i .iild " IM- mtin-ly
WITH 1 1 i a strik- .1 I I ily :J()th,
! thr strike was d< !>ers had !' the
ill<>t and ti iiods adopted to
! i!t. Tin-
accounts for t 1 .d .f tl hody to follow th-
M proc, -. how thr l.allot
was manipulated and adds thai tl: were
hallut wav
in had voted 100,000 towards a
strike fund. Tl i had given a j! ting
.
Lahour will c-nine out
iustrial 1 . ' . tild was
liese statements
and warned not to mislead iiing
FOOD FOR THOUGHT.
who make a habit of criticising the Prime Minister
adversely and there arc many such will find nothing inspiring
in his latest message to the nation. We shall lie told that the
uttering of platitudes is no substitute for statesmanship and
that the WcNi Wi/ard is only conjuring with words when he-
ought to be framing measures and preparing for action. Such
carping, which. aft r all. is nnly another form of verbiajj
popular because it s :i \ ls ||,,. , fioil <f thinking. p>ut vc would
v cut ICB, !' D a NV hile. earnestly to
social and industrial situation in all its
bearings and then to formulate, to their own sj,t intact ion. the
steps tli(\ would take if they \\eiv called upon to act. This
done and the result committed to paj Uiink that tiny,
in spite i,f all their piwious sneers at the futility talk,
would be constrained to confess that they were po\\
bring any scheme to fruition until they had succeeded in
persuading their fellow-con- n to look the facts in the
face, and in directing public opinion into the channels they
desire. Their first step, tl I ably would resolve
its,]!' into words, and we take the liberty of doubting whether
they would produce anything so true or so effective as Mr.
Lloyd George's message.
< :, *
Reaction and Revolution are like negative and pos,
currents which, though mutually repellent, can be produced by
the same kind of friction and create reciprocal and responsive
effects. So he who would remove the danger of revolution is
well-advised when he starts by combating reaction : for it is a
characteristic trait of the reactionary that he is generally
unconscious that there is anything the matter with bin
He feels that his world is picking and he thinks that his sole
duty consists in hanging on, like grim death, to those stays
and props that availed him of old.
This being so, the first essential truth that must be driven
home is that, if the ship is to be saved, a great deal of lumber
that goes by the name of ballast must be jettisoned. (,ood
cargo, even, must be sacrificed in the last resort. But the
reactionary is slow to bcli \- that the emergency has actually
arrived. He must b< t aken by the scmfi neck and forced
to open his eyes to a realisation of tilings as they are.
30
11 ami
lie asks x past in all its
\N : like ? It was a world
i squal<>! and
wret ,. A world scarred )>> slums and disgraced l.y
swca
it fin "f humble homes.
Mth \\.. re was waste- of th-
earth partly throng :incc
and I selfishness.
to an
can s iger. I '> ' -TC are any who
n I., ware 1< -t it fall up..u them and
;m."
!v thns, rcccnllv ! .lit scats
A ill be scan mguagcuh
is addressed ovi i t . th >s. in th. gallery, with an
icst man
of average intrl! that t!
i|U >t<d :in- lit. rally tru-? And if he adii.
trut! ighted as to maintain that
;>lain spea
has s: a {)<>{)ui la who will
warnings of the man who,
!>>gy or diff his
: heirs* in t ;
ug about and wlv> lias .ility
for giving advice to his tVll.\v-e.
i tin- day though it may he. tin- awak-nin-j
;i wool as ad as it
used to be. We douht n..t that
ean, hut th<- t rump, -t s :
lieu listeiir.l hctillles, the walls would Tl SO
ignoiiiiuiousl\ .
4
'I'd i whieli Mr. Lloyd George makes
theme is drawn from the past its :t p; Q has been dealt
notable
. too, begins by
insist !)ossihili-
and i . urges us to find a
81
way of all working toget and exhorts
US to cultivate a new attitude of mind which, as he aptly
remarks, is* 1 dy alien to the dan hatred and materialistic
madness that have e.tine out of Hussia to infect and bed< vil
the world. . . . The destiny of man is his BOIll, and we must
find some way of dn\ inj out Suspicion, ' B1 > . hate and ill-will
before we can create just and reasonable social relations. . . .
way to get rid of a small idea is to put a big idea in its
plac
" A mine-owner is simply a trust. < and servant of t he nat ion.
A mine-work ictly the same. 1
ervioe, otherwise its profits are got by fraud. K\ rkei
is a national servant, otherwise he has no right to demand \\
from the nation for his work. . . . Wa^es and profits both are
paid out of production. And production is our only salvation
to-day. For five years we have 1,- :<>vin<r materials and
men. The world's stock of food and goods is at its IM\\< >t ebb.
. . . There will he more than enough work for everybody, and
ybody must work. Pinch off the social parasites whether
they be cooties or humming-birds and put them to work. . . .
There is no substitute for sweat."
in the Press Gallery are, of course, as prone to
make mistakes as the rest of us, and il is natural that the man
who doesn't hear every word of a speech should i; msly
allow hi. wishes, to be father to his thoughts when filling in the
gaps. But after making the most generous allowance lor the
frailties of human nature, we still have an uncomfortable
suspicion that the divergent records of Lord Phillim
remarks on labour and pn-litecriiia are not altogether <juil<
In the Times we read: " Lord Phillimore said there was one
of profiteering which more than any other contributed to the
at position ; that was tin profiteering of labour. This form
of profiteering ought not to be encouraged by the Government.
Let moral suasion be applied to those who wen pnii!
that mann< i ; let it be pointed out that they \\vre the people
who were really raisin^ p . . ." But the Da Hi/ Herald
prints another, and a very different, version of " Lord Philli-
more's Dictum " : " As a matter of fact, tl ewe pro)
ing in labour than in any other commodity, and it is almost
alone at the bottom of our present troubles." What did
Lord Phillimore really say- rin<r j n labour or o/'lai
Prepositions are small things, but in some cases their significance
is out of all proportion to their i
32
No. XXVI
OCTOBER
MCMXIX
Man is a creature who lives not upon bread
alone, but principally by catchwords.**
R. L. Stevenson.
INDUSTRIAL
PEACE
CONTENTS
I lu ( ,!-.it Class Illusion
I'rat ti< al Economics
Co-operative Employees
Economic Policy
The Psychological Factor
The Triple Alliance
Women and the Railway Strike
Views of the Minor nv Press
Food for Thought
INDUSTRIAL PEACE
Illllllllllllllll
THE GREAT CLASS ILLUSION.
llaey which has been dubbed k ' the great
illusion " has gained SO great an ascendancy over the mind of
a public accustom, .1 to accept catch-phrases at their d< nomi-
nati'iial value, that scarcely anybody stops to inquire what
prcc by the word " claSS," and peopj.
inlinite pains to abuse or excuse, according to their particular
bias, a thing the \< r\ oature of \\hich is of pe ;
character that no one can describe it or even prove that it has
any real exist* nee at all.
When we hear of Mr. .1. II. Thomas protesting that he will
rt his class," and read Mr. (.. II. I). Cole'fl complaint
that nearly every newspaper is full " of proclamations of class
war.' < a mental impression, which is vivid enough
iu so far as it relates to the obvious existence of a stal
conflict between the Government and the railwaynnn, but
which fades away into bafllin^ inddmiteness directly we come
to analyse such statements in their more comprehensive appli-
cation. The all too common presumption that th<
natural line of cleavage along which the nation can be divided
into two hostile camps, each representing contrary interests,
is not only res pon si bl<- fora vast amount of unnecessary mischief,
but is a bogey whose make-up is revealed as soon as its com-
ponents are examined in any detail.
Yet the whole fabric of the Marxian doctrine, as interpreted
by Industrial Tnionists, Syndicalists, and other brand
:list revolutionaries, is based ,n the theory that modern
society is so constituted that the mass can, and will.
automatically into two parts and ran^e itself on the
- of a common ipiarrel, much as "whites and .strip
picked for a football match.
The truth is that phrases such as "the abiding antagonism
between classes," "the inevitableness of the class struggle."
and the lik< ! as they are for propagandist prnj
are only superficially n-lat'-d to the facts of history, grossly
inaccurate as regards the present life of the community, and
fundamentally subversive of every sane hope of future prou
If we examine the structure of the IJritish nation we shall
find that it consists, not it of a large
number of mutually d< t and inextricably interwoven
>ns, some large and ot IK is small, some powerful and others
84
weak, s -s energetic, which group them-
es combinations a >utations i
these t-< md much misrepre-
sentation, do en in the aggregate, to reach progrcati
Apart from li nil categortcf of race, coloi >ex f
mankind cannot be substantially or permanently marshalled
. s .! ! i , i > fix any but an
vcen good and bad, -T >-ung and
i man t- . <hff n nt iate between
s than are tal
acc< the simple reason . person who is
IP it ! i- the oth- .lions of
units sulijrct t \. M!| I. is Macauluv
has said, t '
linn , far asunil i m.iv tln-onsc
possessing class and lrtariat till l-.-m
hit \vh- : t-st .r ielectinf
istrnt priucipl-
ado) ire you arc
thi-.-'iL- . Alphas . gas are located
readily. lmt I.amdns and < able
dilliculties concerning v can reach an agree-
ment. It is .isY - :i'iii::i. ! that the pOSlCBSC)
50O ill !) a- i rich and the c
lesser a: ;>oor, an >pro-
tc classes, but a <l all allowance
age, sex and station, tin mii\ i*lual operated upon
to a< ur ruling, a himsdl' on thr rlass
iocs Mr. says he
'atcmentca
be takm in -nse, because as a Privy Counc illor and
a memhrr <!' tl C of Commons he must be reckoned as
.
to make him < last,
whiUt his m. ntal an-1 lil::ar\ ., him to
ieln.le.1 among the educated class. If. how
he (let -lines to associate with his peers and chooses to
himself \\ith ; e class in which he \\.is horn, t
and
>ei al loaves and fishes. \ ^aid,
is to be taken as the
M
one criterion of class, new < . In what cate-
gory are we to place his lordship \\ t her was a cros
sweeper, and what of a Plantar-net who happens to he also a
proletarian? In any case these personal predilections ami
these- contr mnot he otherwise ihan
embarrassing to the otlieial , doUS ijladia-
\\hen the people conie to lie numbered into their
classes. It may be found, alter all is said and done, thai tin-
actual result has little in common with the much-advci :
forecast.
Mr. Col t her case in point . 1 1-r- \\ e have a promm-
advocate of the claSS-War, a Fcll<w of an Oxford College,
enjoying emoluments, drawn presumably from what he would
call a capitalistic Dourer, complaining that all the n< -\-
are lull of "class" proclamations. TO what does he
ptbnl He approves of dags-consciousness and
preached it in the columns o|' The Ilcntld. hut apparently he
objects to other people following },i s example. Of course, he
ins something, probably something clever, hut. knowii
belt ( r. we can only suppose that h'. ince is that
of class-war he desires is one in which all the knoc
given by his own side an u by the other. This was
Germany's playful little programme hut, as Mr. Cole will
rcmemher. it didn't quite materialise on the lin< s project
Hut then i> iu which an artificially contrived
class- war is likely to become a reality and a grim one. The
stimulation of LT reed and credulity as now practised intensively
upon the least discriminating section of the community cannot
fail, if long continued, to produce a ferment of insensate ill-will
which, gradually spreading amongst those who ar
ccptible to this particular kind of suggestion, will contaminate
the whole body politic. The process has already hc^un and the
first -fruits are manifest for all beholders. Ebullition is wo 1
bring dregs to the surface, a utlook of th
revolutionary enthusiast is exhibited in all its naked crudity
by the extracts from The SdcidHxt. which we quote on an-
page. The barbarous spirit of the r volution with which we
are threatened in some quarters is sufficiently cond< mncd by
the sort of advocacy indulged in by some of t ardent
supporters. Herein is our safeguard, and v console
Ives with the reflection that no problematical advantage
to be gained by revolution would ever reconcile a sclf'-n
nation to submit to the indignity of h< iiiL r I iy by a ]
of m 6 only qualification lor leadership is his pr
in th" dissemination of poison gas.
36
PRACIK :\! I CONOMICS \ I.
CAPITAL.
seitlt in the popular mind against capital It hat bet
to the matte* at a voracious and insatiable monster,
than mure than revolution, exercising on the
'tie action of a vampire, whote power of suction goes
i creasing in// VSTIAT.
i d nearly a ntury ago, but any
it social and economic
press himself in almost the same words.
! ir ul.jrrt here to ex
s and abuses, with a view to indicating the
;iic system, and
responsil'i! social and industrial
us pov. 1 unc mplo\ in. nt [>crsist on a
Calf 'I'' ma^'Ilil II .
an. I welcome m- agitator who
I sweated labour by de
is hk iblcs
tiiat I. t<> dispense
ijine altogether and see how the car would run
NVIi.ii is Capital ?
tirst place Capital is an instrument of labour.
particular form f ,-ff.rt made by man to secure the s.
the product of labour saved and
used to aid production. Th< only respect in v:
al diff. :UT form of wealth is that instead
- ronsinnrd i*\ the o is used by him or by some
t> aid him in his productive work. We have
already seen that in a society ;>nnriplc of division
accepted, some store of wealth must be kept in
M ;i food and raiment, and the use of
sand i rv while they are engaged in new indu-
i a market must be found, perhaps a year
it has been made. We can <>nl\
ii capital by emisuminL:. indi\idually or as a State, lest
may seem absurd and unnecessary to
tor a moment on so self-evident a proposition, but
37
prominent writers and leaders of a school are so
to tempt their follou, rs inl int i-eapitalist campaign |,y
specious argument. impl\ \i\^ that Labour can not only disp
with the OWIUT ;al, but can actual; i and enjoy
the capital at present used in carrying on production -n
that is to say. l>y labour a- truim-nt in procuring such
:hood as is at present po^ . Capital is an CSM nlial
agent of product ion, diff- althinthat
it is sa\ ed and : lined.
Conditions Requisite for the Accumulation of
Capital.
"A modern, society, it' it is in a healthy economic condition,
lives \\ell \vithin its income; consequently it Starts each new
year with a bigger supply of took, machines, materials and
wealth ready for consumption than it did the pi
But then' is not I Me or automatic about this accumu-
lation of wealth. Many individuals and most (iovcrmncnt s
<>nd their income . . .; and society only keeps up
and adds to its supply of capital because the individual nu mbers
of it on the whole spend less than they get."*
It is unwise to rule out the possibility of States acquiring
enough foresight and prudence to live within their inn
and to I v( ntually the best custodians of a public fund
for use as capital. But, as things are, the experiment would be
too perilous. The Government of a country will nc\er be far in
advance of its average citizens, and until we have progr<
a long way in knowledge and self-restraint we must endeavour
to improve the capitalist machinery as \ w it rather
than trust ourselves to a machine of a new and untried type.
>ital, we have seen, is essential to industry. The next
step we must be quite certain about is how to ensure a constant
and sufficient supply. Not only does capital not grow of
itself, but it is an extraordinarily sensitive and delicate growth,
very apt to shrivel up and disappear when improperly handled.
main conditions essential to its accumulation are : (1) A
surplus of wealth after essential requirements ha\< been
lied. ("2) Security that is to say, a Government capable
of maintaining law and order, and a definite trade policy that
will give i able assurance of success to ordinarily prudent
and well-informed enterprise in industry. (3) Opportunity of
using capital remuneratively i.e., a reasonable rate of interest
in return for saving and lending.
* Henry Clay. mics for the General Reader.
38
Interest : its Definition .md :
;md service i > i..rtli.-..!iiin^ only
r a servi Obvi.
man who lends cap us a sen the man
.'. ill be willing to pay. If A lends B a hundred
in- uill n. -t ..nly ah :i the Cnj
*lt he wffl abo fo*e| <-ome h tiave
4 with I) buys ma ;ind raw
liis work with these
is enabled to ga iconic 01 than be
made v .Vs cap is clear that A has
liih i< has himself foregone,
It will IK- willing to pay to A some part of the twenty pounds
his agency. Tin- p . . r th-
.ill. .1 interest.
it crest is :itf:iiii, tin- Socialist
followers, i '-r of an
ideal in-. thcrhnod
.11 and all !r e . (Capital
n histry
is a service win, 1 which
will n. .t ! : unless it is pai.l
I 'fiasis is placed upon present
ystr : he great ntratcd
in the hand i fact ti uld still ha\ to be
its actual possession were distributed more
ignored. The ant nt. of course,
attack the potential evil inherent in the accnmula-
wealth in the hands of the few because it tends to
1 power and to put the guidance of puhlic
"p" 1 ' ' nr course <> . tt much
in the hands of a section of the community which ca:
represent the interests .f the community as a
. Hut to win support for such a cause, I uood it
appear to its advocates, by del isinforming
the public as to the true natu: the possible
effects of a re-distribution of wealth in appeal to a
iity which can ultimately r< 13 a
i.ich must lead to disast
Who is the Capitalist ?
tly he was the man who was first willing to wait and
All but the poorest can become capitalists, and r
be the reformer's aim to demonstrate the value of capital, to
cultivate the desire to save, to encourage the diffusion of
reliable information as t> tin- proper and Bafe investment of
small savings, and to create a widespread appr< elation of the
essential NTVioe capital and the OWnen Of capital render to
labour. 1'ut in the anti-capitalist cnntr>\Tsy the capitalist
is always the man nf gr< at wealth, living on the efforts of others
whom he forcibly robs, controlling home and foreign policy
by virtue only of the power his wealth confers, holding the
workers in poverty and subjection at home and embroiling
them in devastating v <ad, all in order that he may
increase and keep his ill-gotten train. Of course, it is true that
wealth and power go together in most modern States. I',nt
it is not true that the wealth is burbled from the workers.
There are exceptions, but in the main men acquire wealth
because they had the power to confer benefits upon their
country. Their share is but a fraction of the wealth made
accessible to the workers by their efforts. The advisability of
drastically modifying the laws of heredity in such a manner
that great wealth (and. therefore, great power) should not be
concentrated in hands that have not shown the ability to
create that power for themselves is a question which call
the most searching consideration, but it has nothing to do
with the principle of capitalism in industry. ISeneiicial laws
may be devised to control the methods by which capital is
raised; its abuses may profitably be attacked with ardour, but
to attempt to discredit the principle itself because it is subject
to abuse is akin to destroying an orchard because some of the
t n-es are suffering from blight.
40
CO-OPERATIM. KMP1.0YI I -v
.
th\e s.M-ieti, s MM wage-earners, and men
. In Utncashirr and Yorkshire, uhcre this
bfl mini'
BB <> 1 trade in
I.- \\ith tli I.M,I\ Ise, have
_ f es and ; ioiirs.
1: mion should be rcqi
interests of co-op<
in \\hie! .>fits are
.nd u liich is run l>\
basis, uonld Mich i<: t hat
a u: dd IK- superlhi"ii>. lint the
.'i the north have apparent 1\
liking, and
in|><'s( Amalgamated Uni:
( !. Joyces (A.l*.('. ;
the A.U.C.E. and
co-operative societies, and the .popular
the lea.. cut. In t!
tlisplltr the lie^ntiat the societies in
eoiiduetttl 1>\ the Laic and Y
i I and Wages Board. This Hoard stated
that 'the ma] OO-Opcrators and trade unionists \s ho
!LT<- and - isiueSB*'
pinion that tin LU.< " in the
rl)itan! :
has been passed without knw|cd.rr and \\ith.nit care as to N\
61 will I), ar in the n '.res, and
itant. heeause it has been passed \\itli '
'to IM-IIIL: iitsid ssith \\hieh the eo-opt rat i\ c
i-ili'i.; 'ition keener and more
iilar sta>
The \\ ised to grant t he full demands of the union and
the executive <>l' the A.l ired a strike in South
I and in the Airedale d
Board retaliated \\ith a threat to dismiss all those who
members >f the A.U.i ;ind Salford
U
Trades and Labour Council finally int<T\rM<-<l, and a settlement
of the dispute was arrived at. Three weeks later the Federation
repi an essential elans.- in the agreement and a L r ain
imitated a crisis by virtually declaring a lock-out. The
elans, in question is inter, stini: becaUM the ree-nt railway crisis
aros i state of affairs. The settlement arri \ < I at
"thai \\h< re higher rates of V better
t'!al)'>n. i at the date Of this sett lenient . . .
(they) sliall in no way he pn judicially affected by the terms."
stohavebei :i\ dear, but the Federation
proceeded to rcclm < in aceordancc with the general terms
agreed upon in August.
The main objection to tin A.U.C.E. is that it is an industrial
union. Its aim is t.. include all c .-operative worker-, ines]
Ofcrafl distinctions. The craft unions strongly object to
this policy, and the co-operative societies have undertaken
to reco^i mions and to pay the standard i.
agreed by them. The ('..-operative t'nion has pledged its word
to the T-ade Union Congress that it will only employ men \vh<>
are members of the trade union which has been formed for
their particular craft. To m-o^msc the A.U.C.E. would be a
violation of this agreement. The claim of the A.U.C.E. to
t all co-operative workers has already been threshed
out at successive sessions of the Trade Union Congress. The
union, however, persistently refused to give way and was
dually (and still is) excluded from the T.U.C.
The present dispute about hours and wages is thus only one
manifestation of a continuous state of hostility between the
rated co-operative employers and their workpeople. 1
the most satisfactory settlement of the hours and wages quest ion
will not reconcile the conflicting parties. As the Co-operative
News (August U.'Jrd) puts it : M The question of craft unionism,
which is apparently the main stumbling-block, would still
remain, and Ltfl removal is by no means easy. To put the
matter briefly, the societies have no objection to their employees
'.H trade uni in fact, if anything, they would pi
t IK m to be in trade unions rather than out of them ; but what
they do say is that the employees should join the union \\hich
specially caters for their particular craft or industry. This
would naturally limit the propaganda field of the A.U.(
wliieh body that the more members they represent the
greater power they will have when it comes to bargaining with
employers, whether inside or outside the co-operative move-
f . Is it possible for the societies in the North- Western
Section to give way on this point ? We do not see how it is,
42
li exist between the Co-operative
"Whips, we
take !> that ;loyccsof the co-op -ocictk*
f-n speri
war \\ithin tl.-- co-opcr lovemcnt it an
on. It provides a
happen tind
product i !!! i that any diiinteiested
will
1 the elmu in- pniieiple of
carr profit, will '-ml labour disputes,
< ccssaril y agreement as to what constitutes
asatisfa itsprodi. i antagonism
t-st between emplo
so < \ preached !,-. the socialist propagandist, will
apparently :
The indu lal uill MgiM that t'-:. cause of all
the : arises fr are
still car: industry IP capitalist system, and their
rests conllict with th--. of the small, r U.d> working
. I lut this does not aff fact that in the
oo-opcra : we have a system that is practically
vet the old antagonism still asserts and
trade unionists, in the capacity of employers, have to threaten
theii , res \\ith the so-called capitalist WCaDOIl l'ck-
i !it is complete in itsdi. !
ay be a ocause r
i industry, Init
> reason -.i^uiism within the movement.
A body of in, n associate thcmscl ;irp..>- of producing
on 1 1 i dwn and approved I- .selves. They know
the results to be gin IK? conditioned by the
side world.
Socialists t world that
aH labour disputes ai i the capitalist method ol
example of the co-opcr.. ovement proves that this is
not \\ ! ,ts of the labour moveti
examine ; i trade by the h-ht i this experiment, and
dr, adapt or discard, as i instances warrant ?
ECONOMIC POLICY.
PROGRESS h; d as a pi rentiation and
integration of funeh . \^ an MruMiiisalii.il grOWS iii si/c and
becomes more eompl. \ in structure 11 'inaliiii: MI- eon-
tr.-lli ii<> us beOOl responsible and dillieult. Tin-
danger of error at tin- centre incn asea and the <
L-rou i rions. ! 'linn
iitiomd by adequate ki ge of the different!..
acti\ .1 t In ii- in 1 iich an or^'.
ei. \\ as \\c know it In-day. Tin- pr<
differ* ntiatiou. which lias ).. .,pid and c< nit iniH.ns during
tin- last century, is obvioiu t. all. \Vhat i clearly
recognised is th<- r< lati..nship l)(t^^
economic activity. T! I youthful and ii
economist will be careful tO ] t that aizr'u-nlturc
niiniiiLT, iu:muf:irtuiv. transp<.rt and (listril)iition. conm
and finance are all dcpa and i partmei
of production in the obn of the term. Hut i
I'liiversities are wholly !V-- I'rtMii th- error o| splitting the
'iiiies into sections such that the uniuiti.
readers ot' their syllabuses are h d to believe them to
lent parts which may In- studied in isolation.
The W.K.A. <nt, so full of promise ,1 to the
same danger ; a long course <f instruction on BOcia]
may contain little or no reference to fundamental (pi.-stions
relating to commercial and financial function, g the
best ; :icy and hankiui: ignore their .uili-
cance and regard them solely as mechanical arrangemti
The tendency toward- alism in the t!
ment of economic pro!>I< ms. \\ith the resultant seareii
imists who stress the inter-dependence of economic
a'ti\itics and the unity of the science of which these ac'iix
form the content. i> rell-cted in the present altitude of the
Government, and its lack not men uy grasp of lln
but also of the recognition of t i for theory. It is to the
r (that is. the scientist who is aMe to \ iew
the economic situation as a whole, without l>cinj overwhelmed
by any one aspect of it), that ire must look r,r guidance in
shaping the <'conomic policy of the future. Hefore the end of
war there had been evolved an economic strategy vrhich,
subordinate to military strategy, was by no means unworthy
of the latter, and was based upon th same foundation, " unity
of command." The War Cabinet was also 90 far inspired as
cognise that there was such a thing as economic strategy
44
recon, t rod .is a general plan of rcorga
'
Bon rth. .- < mot distinguished
oka, l; r emilil tprrted
success icld of reconstf
belonged. It would
example, i.. . general frinrtiren of
the Minist ' : wag attached to
regie
tactics rather than i
:i was a failure. And
was s task was to construct a general or
i. It was, by implication,
depart nt nt which should have been able to command
the in so far as these
csse; tstask. It should have rrct
I>osals of ti (Mirtinciits, and
examined them in i . I in the !.
1 1 s h o u | , i h ; i \ < 1 1 1 vesttgated their implies-
ijjlit ultimate consist*!
ddiheratixe fun ' the Cabinet
ie of the other de; ts could be CXDCCti
o\\l,du' i if this could be avoided.
.Id the ' , powers
which wen- im; :i ma.l. Ton
: j"ls. Com
!-"hlems t and
rep<>: |K)rts o: c.MiinnttefS, WCTC
lage and issued as pamphlets. A
small ii was established for the purpose
: Indust: B COUIICM:
badly-organised industn<s. Ti, M- was appar tclli-
M>st ditlicnlt of:. iiumuustry
\\hich was | to be a Ministry of Intelligence. If it
n it appeared to have no power even to describe
it saw.
Ministry of RcCUOStrUCUoii
1 by a cabin t here was to be any
real dclcgati corporat K>uld have been
be necessary powers for its per-
1 1 has already been stated that economic problems
be placed in separate w:i t compartments, or
it t different departments between which
there may be liaison o itc details of administration,
but none (apart fn>m the Cabinet itself) to correlate policies.
Economic a act upon each other at every turn.
Ami it' they are to be regulated at all they must he regulated
with one " strategic" aim U If hit to separate depart-
ments the regulations are apt to be inconsistent they may
even be mutually destructive. An important illustration !'
the need for a compn h< nsi\ ,- ami self-consistent economic
policy is provided by the strikes of tin- railwaymen and the
moul<: : . In the former there arc t\. inxolved, first
the adjustment of relative wages paid in dil'f rent oceupati
or in the same occupation by different companies. Apart
from the fate of war honuses in L -< [fl eoiit-nded that
the relative rates in certain grades should he- revised. The
second issue is the future of war bonuses in general. This is
ly related to the issue at stake in the claim of moulders for
a further advance in rates. Moulders do not contend that their
wages are low relatively to those of other craftsmen, and they
would probably welcome a similar demand for advanees by
the lat i
The future of war honuses is mainly a question of currency.
The advances granted during the war to meet increases in tin-
cost of living were but modes of inflating the currency. More-
over they intensified the evil which they were designed to meet .
They did nothing to remove the shortage of goods upon which
the general standard of living depends. To call 1 in gold '2
in paper does not add to the supply of wheat, coal and other
necessaries. There was no gain to "labour" at the expense
of "capital." If it be granted that when normal production
stored some real improvement may be enjoyed by labour
through advances in money wages, it is obvious that such
improvement is not necessarily measured by the latter. For
. the future of war bonuses is clearly a currency question,
i .1. Kussian and (ierman statesmen would find no
cause for alarm in the present state of the currencies of tin-ir-
respective countries. Some time ago the Currency Committee
reported in fav< turn to the gold standard. The
recommendation may or may not have been wise and praet icahlc.
With its merits we are not concerned. Hut its adoption
Ives an enormous contraction in the present volun
currency, which, in turn, involves a reduction in war born
Consequently the attitude of the Government towards the
claim of the railwaymen (in respect of the second i
necessarily defines its attitude towards the recommendations
16
Tin offer of a 44K.
suggests lie Government will not aim at ***Hfif the
ts pre-war HimnnsJons. i corresponding
i'lstries pre-war prices will not be restored.
1- .11 that the Government is not omnipotent
lie matt > i> an int. niatkNial affair, ant)
l l M- largely determined by the rnfr*ii4r
In r States. li> tit. i:*.]: >l>ablc event of one State taking
measures to perpetuate war bonuses whik other State* aimed
at a consider*!. of currency th* J trade
i \\.-iiid be vit>l isturbcd, and would remain
so until tin- u ikpcoplc accepted such a reduction as would
wages to a " comp< liout u<
ii exports would vanish, and imports, being unpaid
iiltmi.it. !> cease. Under certain conditions which need
lc clos< ! o sets of prices would emerge, gold
s .m.l ipcr prices ficoplc might coo*
retain high wages paid in pu|x r money but these
would t r wages measured in gold.
l : th< s|. taxation considerations also arise which
make it important to examine the ecom blem as a whole.
linst a levy <>n ..;>!'. ,J ii ;:: mdly affected by the
lutur< *>t ( unnicy. An expanded < means high incomes
large n .Id thus weaken
case for such a levy. But a currency reduced approximately
to pre-war dimensions would also reduce the national money
md tli <>m taxation, to such an extent as
iake a capital levy not only desirable, but probably in*
. Again, our ministers have repeatedly admitted the
need for raising the standard of h. the general body of
i :iges policy they advocate is based upon
assumption that th<- retention of war bonuses will not
.my real gain, n
will (>tul>ahly be forced to the conclusion that the most important
of advance in tin rtltUwe position f wage-earners is
th. pvoi -f State-sul )sidised services such as education,
insurance, etc. . Another \ i< \s . rue function of taxation
\sill ! oolomed >>y the f.: >m being a necessary evil,
taxation ui ic a desirable and valuable instrument
: ( xistin.u m. .ju.iht u-s of income. These examples are
submitted merely as illustrating the need for consistency.
Consistency can only be achieved by a comprehensive survey
of the economic situation and an examination of the
s and remote consequences
icet specific needs.
THE PSYCHOLOGICAL FACTOR.
AN apple fell from a tree, and Isaac \< \\ton revolutionised
tilie thought }\ his exposition of UK- law of grasily.
time iiniiK mortal apples liad fallen in their millions
without exciting comment . l!i;! 1; -lit cainr when the
railing apple suggested to a mind already pn pared for its
reception a fundamental truth \\liieli, without that particular
stimulus, miuM possibly ha\ med undisc< >\ < i ( < 1 formany
years. History is full >l Mich instances, and time after time
we see epoch-making changes called forth l>y some tri
OCCUi Qg \vhen men'fl minds \\ , i in an abnormally
receptive state.
Easy-going men in all walks of life arc fond of repeating the
.iula that 01. ills have had their counterpart in
cloud-,, they say, have threatened even
more ominously than they do to-day, the conditions have lu-en
much worse, but the .storm has blown OVCT and the weather
has ' a^ain. T deliherately dlOOSC to
ignore, that here and there at various times t hn.n^liout Knropc
the storm has broken, and it has Ix-en found not in human
power to stem the Hoods. Nor are the Great IV mpt
i cataclysm. France had her revolution, and the agony of
ia is not yet complete.
It is argued that the social situation as it affects Labour in
particular is not marly so grievous as it was in the early
nineteenth ci-ntnry. England suffered then, as now. from the
same economic stagnation that follows inevitably upon a
Kuropean war, and the social and industrial conditions under
which the labouring classes lived constituted undoubted hard-
ship and injustice. \Vc w> 1 that crisis without serious
mishap in- , ned much and pi d < \t raordinarily
well. With a little patience and good-humour, a little give
and take, and, above all. no hysteria or M D RTC shall
iind OUnelvi s on top again.
Hut such a summing-up ignores the * force of all in
the determination of the destinies of men and of nations. We
cannot afford to omit the ever-gro\ving momentum of the
hological factor from any calculation of the forces that arc
against us. For five years men hav* faced privation, death,
bereavement. . mutilation, suffering, and sacrifice,
faced it, in the majority of cases, with stoical courage and stcad-
:ermination to pay the price whatever it mii/ht be..
Whether upheld by faith in the cause that they were lighting
for, or driven on by the naked instinct of self-preservation, the
18
i_!<i. !.; idless, undefined, pregnant with
indr.-.r -* were
I sustn , through *r*t
last the dang< moved. i
annihilation n |.iin. r nirnurq us. The tension u
relaxed, men turn < ogerly and expectantly to enjoy the life of
peace to which I
it to wonderful
One need not IK to pictu average
are not normal,
sed so much. ;in<i tii< \ i, i.. promiaed
is of trench life, (nutivrly
the ronst.-in! tlm-at t,i <iaii^. r. and faced <!
wait th< day \sh should nturn to enjoy
> y arc back, an able
has happened : disi 11 u-.-.t. The
n as good a -r many
s nor \\ > and a general
. unci-rtainty ami trade ftagna*
[t is of HtUe use 1 e economic state of the
:ial. Neither are mrn't
nun. Is : an I 1 reasonable, will adopt
' reasons
that would hardly hav.- satisii avowed rebel of former
Mild hank on the old i hat has
in the past must n-m.-inU r th.r
.'ishman is apt to be apathetic and to bra
\\. 11 an . 'as too marked an
d.-m. Hut apathy has given
Men and women are nervous,
\ strong lead, definite action,
with its oiM it" meagre, may calm their
irrit ts. Hesitation and inaction arr
> the worst abuses of the eighteenth
1 1 1 n os, not only because poverty
t.-\ thr. at K^causc injustice or abuse of
.in pant, but because the temper of the
IS abnormal.
THE TRIPLE ALLIANCE.
tlir la- 1 ntlis \\e ha\e heard a great deal about
the Triple Industrial Al. .ml \ve ha\e often been reminded
: he extremists that this Alliance \M. |<U , ;:nar\ indus-
trial power. A strike in the vital industries of mining, railuay
and transport ni.ans the paral practically the \\hole of
the industrial and < rial activities of the country. Of
this the leaders of tin- Triple Alliance have always been fully
conscious, and some of them have not hesitated to take full
advantage of t he strategic position that they enjoy.
The events in the Labour world during the last leveD or eight
years mark an important change in the structure and function
of Trade Unionism. In this period we find that the trade or
craft uni < pt in highly skilled and technical trades, play
an ever diminishing part in modern Labour movements. The
unskilled or general unions, embracing all the workers in an
industry, regardless of craft distinctions, have become pre-
dominant in the conferences of organised Labour, owing mainly
tot! ntly realised numerical strength. Labour policy
to-day is determined, not by the select unions of craftsmen that
characterised nineteenth century trade unionism, but by tl
organisations of Labour that approach the nearest to industrial
unions.
To understand the origin and purpose of the Triple Industrial
Alliance we must recall the big strikes of 1910-1 .'5, which chielly
affected the mining, railway and transport workers. During
this period of labour unrest Mr. Tom Mann was conducting
Syndicalist propaganda among the Corkers in these vital con-
cerns ; and the virtues of solidarity and the sympathetic st ri la-
were preached and extolled. One result of this was the railuay
and transport strike of August, 1911, when, for a few days,
Mr. Mann was practically the dictator of Liverpool. In inpj
was a prolonged strike of miners, which ended in much
mutual loss and but little sectional gain.
Now, while these interrelated industries were more or
paralysed by this epidemic of applied Syndicalism, there
no organisation to co-ordinate the strike movement. The
miners, railwaymen and transport workers acted separately,
pt for temporary joint committees in certain districts, as,
for instance, at Liverpool in 1911, where more than one section
happened to be out at once, or where sympathetic strikes had
been organised.
50
these strikes were not very successful from the
were lessons to br Iran ^ iiem.
.stratcd th< {jendcncc of mines, railways and
transport, and <n lightened the strike leaders apeci
'ist S.M -ti.in -as to what might be accomplished by a
is dowm ..,is in !.,.. three trades. It was
s n that a prolonged . any one of these industrial
two; and. ;
usually meant defeat. a strike often
nds on quick a A prolong* *t frequently cods
i the -rs. li . in these
>ations could act together, giving mutual support,
tin n the result misfit IM differ. : -d and simultaneous
action u-'!iid <|uiekl> paralyse all the public services, and
would be so is to the nation that the
MI MM- pressure, would be compellc
thcs.e: whose behalf the general
sink, had been called. It was believed that such a combina-
i would be almost irrcM
'I 1 ! such a ( orccs of Labour
i of Great Itntani, then, as
>st active and powerful oi
udedon UK- principle of industrial tinfcfMn^
and does not accept as members the craftsmen employed at the
u> ,. It supports the "advanced movements of the
:-atrl unions \\ht-n an\ < n of trade uni-.n principle is
[t provides thi plr iMlisnrn
th.se i the way is o; iirogrcssive or advanced
t hring fon%'ard proposiil he approval of the
M.l. <..!!., and tl.-, ol ; >cr, uith a considerable
cliaiK x them applied on a national scale by means of
e is a very important can-
icy of the M.K(i.H. (and <^jmdly so that
s part ii' r unin.) and the probable policy of the Triple
ult of a resolution carried at
lueh proposed * % that
itive committee of the M.l
iti\e cnmmitt. cs ot (.tl. <ns with a view
>-opcrat i>ort of each other's demands.**
\ccutive committee ci> ito negotiations
with the trade unions whose c li most resembled those
be M. F.u.i;. M/.. the N.U.R. and the N.I \\ -in the
I he Triple Alliance. By George R. Carter.
51
belief t JIM t if a \\MrkiiiL! arrangcn x nt could he concluded with a
few of the larger lections, i \teiisio us to other Croups would
follow in due course." lirst UK IIIL: of t he t Im < < -M cut i\ vs
took place in A: i I I, and a joint conn: .is appoint ed
up a constitution for tl;c Allianc. . This draft W*M
pled at a j..in( eon: I,, Id m I), e< mix i. l'.'i:>.
\\ (1 iH't (jllote its t. Illis. U \\, I,;, :..!|s|\ d,-;i|t with
the constitution of the Triple Alliance in IMHMI;I \i. 1
March, 1919. In this article \\e arc concerned uith the moti\ el
and purposes underh ing it.
\\ : Red to the coal strike of 1918. We are told h\-
Mr. Carter that tin- r.rj iraa ptdly paralysing
than had heen c\p < -t d." and the Alliance WU proposed |\
miners to remedy t! ! in their strike policy. Hut there
nan this in the proposal. The combination
engineered \vith the declar<-d intention of usin^j the strike
weapon for political ends, and th-' real aims of the Triple Alliance
be estimated in the light of the following quotations t.
m the pamphlet above UK ntion, ,|.
' Hut as the President of the Triple Alliance (Mr. Smillie)
observes, joint action could threaten such a stoppage of national
production as would force an immediate settlement. The lack
r^anisation for political action weakens the unit. us in I
and national polities; hut 1'or this the miners would have f
< .ovcrnmcnt to name the definite minima in the Minimum
Wage Act, and the railwaymen would not have had to accept
.iisfactory terms after State intervention to end their 1!11
strikes. The rank and file have been convinced that
control of the machinery of Government is dcsiraMc. not merely
to secure legislation unproving their conditions of work and life,
but also to give their combined unions a i/n-ati r share in t he
ion of national and international affairs, like that held ly
Parliamentary representatives of other vested interest in
industry."
The industrial and political power of the Triple Allia-
depends upon the vital nature of the industri rued. The
workers in these industries M are Inr^flij <itl an*
dent in \OCOii<m, chiefly in the ports, coalfields and industrial
. t he pi v< its of the induvt i-ies concerned, and <>l //// ntil>
1 ' ined action affects the whole nation, and a strike under
such conditions is an attack upon the whole community The
unions involved are of the " industrial " type, and are M or^an-
on a national scale, so as to include all ^/v/Jr.v of employees
within the industries"' covered by the Alliance. All three
unions are strongly opposed to craft unionism M which orgai
kers and maintains
balut as against craft m^^m^ 9 an |
n mutt r.^jgnifte that
are gru ifluencr
Alh. in.-, ,, v. H>ttng in full. |
*:
:I > '"''-'' OIIKiaW
it *i< / a general sinlc that : t .,/ ';/** most'i
Mlllcss t||,. |,-;,,i. COQ.
ceded. It' (h.- pr. .p. .-,al, "I lh. r the nnt ionnJis
of ull mines, mini! Ities, and means of transport are
'' -I. tl' .sill demand a <I
share in th- I control of these .
I - :list m. ml., rs of t h,-
regard t ans towards ap
Mhanc' ilfiS
;tal)le slh.uld the | ,d fitfCC
<\\ to gave t i
H^conomi d admits of only one
' the
in the Alliance because, on grounds of class bias and
sts, they suspret ital author
m 1825, aii
State would thus i,- r,, n -.,i to take
' rade n p as the
ottieialagene must I x; delegated considerable control
i i th. s. politico-economic
respeets that the activities of tin- Alhanee ha\. m . t Mirinii. .I'M .
M.I ,G.B, Nd to ih. Affiance, and aU-. the rank and
onshtiient unions, intend that the Alliance shall be
as .-i means to ir labour over the
;strial and political affairs of the na'
WOMEN AND THE RAILWAY STRIKE.
IF the truth v, (1 most candidates at last C<
Election would be found to have K .dl\ embarrassed by
the multitude of WOmcn who then voted tor the iirst time. I low
to reach them at nil was a grave problem. Most election
1 HILTS are IK Id in the cvenin:. \vlieu t he women of 1 he unrkinu
Classes and they are tin majority can least easily
attend. Many who might have attended \\< re boo shy to come.
The general apathy that ruled among women in November
December last \\as not unnatural, for they knew very little
about politics and elections. Political interest and political
convictions cannot l.c ae(piired in a day. Of the questions that
were being discussed a year ago the setting up of a League of
Nations probably interested the women voters more than any
other. The li\<s ,,f v.om-ii, bound up as they must be with
the lives and the !'< >rt unes of 1 heir male relatives, suffer grievously
and irremediably from wars. It is lair to say in general that
tin various forms of strife, social and political. imp< uliar
mea- ; ardship and loss on w^men. One of the chief clues
to the political action of women will be tln-ir desire to secure
and preserve the profoundest of the inter. -ts of their sex
Their sure instinct for this fundamental condition of their
happiness has scarcely made itself articulate, as yet, in our
politics. In the mass of women their instinctive role of p.
makers is still vaguely unconscious. From the dim l>< -ginnings
of the immemorial past they have suffered and perished by
the quarrels and the warfare to which their men are prone.
ha\e learned an instinctive patience and stoicism, even
towards the most disastrous forms of strife. Thus to many
Englishmen the attitude of the women of France towards tin-
war was almost incomprehensible. A cool, sophistic;
courage, an historical sense of war, a fatalistic pi. MI. nee of
its COnsequenCCS, a Controlled despair, \ :eel\ what they
cted to see. But that was the spirit in which tin women
ranee faced their Great Disaster. They braced thcmseK efl
to endu
It would be contrary to nature if women remained for long
inarticulate and indecisive on the great issues of peace. Among
certain classes of women, engaged mainly in industry and the
professions, there is already a strong ferment. It would not
be very safe to build much on the views or the leadership of the
54
uinist movement. The * gM rktaiioiif at last election
wer women are not greatly moved by the
appeals or t more emancipated types. The
effe< ' in proportion to thrtr
talent and knowfoi Icome prim
in. .ral .jualitics. The def<M
here ami tin iv \\ith the mal .t not with her own
ex. N<
owes ami will \\e m> MM r hampions of
Hut u)i n the awakening comet in it%
full force a i it uill speak aiKHhrr
/imge than theirs.
K>W and it is begi; speak it
Id say OIK t : th steady emphasis yj make an
end of strikes." No class in the community suff. rs more by a
stril. >iv ium t han the strike rV own womenfolk.
t mospherc of strife and to share
- nl* the I'lL'litHiL', th'Mlu'l; ' 1
<-stic cares are increased to t it of hardship and
a successful st ist seem to them a
II y brace themselves,
<li<l during the war, to endure.
y have no remedy, it is true, on the eve of a strike. Hut
btalargeraenaethe] thereon rtuence.
theirs liy tl u-hise. It is usually better
to settl (juarrels by conferences and accommodations than by
fight in*.: th. -in out. Tins IN so true <>f strikes that no one says
it any lngcr. OIK strike, to speak roundly, is just a*
gratuitous as any other. Hut tin railway strike, unheralded,
gigantic and mysterious, Appears to have stirred women voters
to srrius thought. II ..ntinu-
'-.em <lis,.r L Mms ( -,i rapidly on a vast
was in i- hundreds i sands of men
i tin s; (lapsed . so far as they are
satisfactory t.. tl,. rail < nothing fact of
:md, when conctlta-
fcs, arl.iti The reality aid the- SJ meSS of
i\< uill dep. nd .MI the efficiency and the moral
prestige <>t tin ;>.-' -tion and arUt ratio?
unlikely that machinery and pnxvdurr will be
sed. Hut. \. n ' t>. peace will depend on the
of the will (..peace. The signs of t he times are that the
\\ ill use t lu-ir power on behalf of peace.
55
VIEWS OF THE MINORITY PRESS.
REl i tO the preparations for the coining " Social Re\olu-
ti-m." the organ of the says : " It is a sordid business
at best, but s,, is all liiv in its i and we must
find solace in the fact that >nl\ \\ h< a systun of
socialism established will humanit\ IK- able ID the
i\ e ride of life That tar 1 ion <>r the in s t
strin ii|)le and 1)1 muitihi< : -nlid doings in a
u-'ild which '.lid to the core and ! all-mark is
h\ | . . the tilthi.sf job which a lle\ < .hit i< u
imposes upon a K< \ "hit i. >nar\ be nietilied and i.
clean l>\ the purpose of t he Revolution, and likewise distasteful
and repulsive opinions are ennobled when thc\ heroine (1
of the Revolnti The position taken up by the S.L.I*.
rial I! \ "hit ion. and we eons. <pient ly esf i mate
all institutions and mo\< nienls in the ineasnt
their eontril.ution to the ltcv<>lntion. . . ."
It is in this spirit that Arthur MacManus a teacher at the
>nal Classes of the A.S.K. in LivcrjMM.l in\it-s liis
readers in The Socialist to investigate the problem of tin
of Parliament, and it is apparently through t hesc same spectacles
that the Anarchist-Socialist leaders of die section of the
Labour Mo\ invite their followers to examine all the
important political, military and social (pieslions of the day.
HaxiiiLT laid down his test of conformity, MacManus proo
to deal with the future of Parliament: "Parliament and
Pa Hi. tism arc NOT necessarily part of the equipment
of a Social Revolutionary's paraphernalia and eonsecpiently
not absolutely essential for purposes of Revolution. . . ." P.nt,
though Parliament is of no use for pin-poses of administ ration, it
can. as Lenin lias already pointed out, be used for the pur;
of agitation. For the success of a revolution "it is not enough
for those at the bottom not to be content to live as they did
. Tln-if must also see to it thai it l>
those at the top to continue their nlil /W/Y//." MacManus under-
lines the quotation from Lenin, and interprets it as an inst rue-
to the Revolution iafistfl "t ake it impossible
for Capitalism to reign. . . . [t is therefore our duty, when
Capitalism secures a loothold. to be on the spot loosening
id from under its fret, until it finally collapses. ... It
behoves us. therefore, to extend our tentacles throughout the
entire ramifi of Capitalism in order to act as lightning
guiding the Revolution along its proper i
Parliament is included in this category. . . ."
56
irnals of the self-stylet! Labour l're*s
" NS
Manehester shop sto.nl.
I
tidies '
standan 1 workers may judge
has r- good service to Capital
rts and the Press ha > calling
appeal -
uith Capitalist aine-. !
men: < fought ami f-.il- i : r the
war -ore known, are to be
good 1 losses thir
work. rs. M( Iju'nc alleges, are
;ind are consequent hands oft) v lists
sU liavr
u enough
wealth i >w to gv to us all a full
\v, ll-li\,,l 1. tin !.;i
Measured by its ther
agit;i
iiistruin the age a organisation of the Russian
nation on i. .vcment. If the Soviet
!: r as an ndjunct or an al c to Pa:
t. th n ! :inl tli. Russian K* volution
may well \> mns of t ct-ntury as the
gren world war. 1
!i^ in The
/
^e been tin- true m<
th- purposes > . Tkf Call
\ ( ApitaUst Coospirar>*
Trade 1 n-1. r this heading Vietor
i is to be saved from bank-
rupt DQ mlhips... i must work hanl
wages must be lowt i . ReaBsing tins, the Gofvnuttaai
tin- chief potttica] iuNtruim nt >f the Capitalists and financier*
sinoe ii> var, '>een planning the destruction of the
:ss organisation i I nions particularly
organisations like the National I'nion of Hailwa\ men and the
1-Yderation are the only barriers to the economic
depression of the : lor th<- salvation
of Capitalism, ti l.c \\ 1. dcinorai
destroyed. . in multifarious ways prepared the
battleground, the railwa\ m< n w< r< /'//, ike. "The tiuht
has ielilu rately n the opjanist d work< The
Government did not want to negotiate with the railwaynu n.
"It \\anted t< liirht. It v. ant < d t .. \\ a_'e it s w ar of d( st met ion
MH Trade t'ni<.iiism. . . ." The defeat of the railwaymen
"\\ill l>e hut th- pn liminary to matted Capitalist attack
the workers of other indust ries, while a victory for the rail \\av-
men will be a milestone on the road to the dictatorship of the
workin:
1 :i!'i II<r<il<l makes transparent efforts to disguise its
revolutionary propaganda by alternately accusing the Govcrn-
llient of fomenting revolution which it hej s the peaceful
workman to I.. :' and declaring that the s<cial and
industrial revolution is in lull swing. On September :i()th,
under the sub-title of "The Government's Incitement to
liition." Hi- Prime Minister's telegram to C'arnarvon is
declared to be a direct incitement. 'The men a; ited
with an inlol, rahle ultimatum. When they reject it, they are
told that the Government expects them to bel
'Anarchists' and enemies of the community. Troops n
through the streets with fixed bayonets. Warships are con-
centrated as if for naval battle. Everything is done to give
the air of violence to what is, on the men's part, a peaceful,
orderly, constitutional, lawful movement for bettei wages.
We do not believe for one moment that the men will fall into
the trap." The leader for October 1st, under the 1 leading of
"The Men Must Win," asks. " What, then, is actually happening
to the country as a whole ? The functions of Capital are
suspended. The abominable system of private exploitation
under which we live has stopped producing. Capitalist enter-
has broken down." The special arrangements made for
the Out-of-work Donation to be paid during the strike are
bitterly attacked. "Not even this (Government h.-. done
quite so base and cruel a thing before. The design is to bn ak
the spirit of the workers to make them slaves in soul as well
n body."
The leader for October 2nd " Provocation continues the
revolutionary strain. The possessing el are "urging
everyone to smash the Trade Unions. Consequently it is war
58
s most !i *cn*c a war HI
those who have the power to c*
tli. in .. l\rs ami thrir great strength before
moft provocative m nniMT It looks .
'"< n into dUordrr and violmcr.
! ken sta; i -square together and allow no one
nipt ti. ., |
agfnts prurttcatrurs ha.s iilmuiy \isit.-,| tl.. I'nim Mn.i-^r.
may be quite sure that SIM .sill be at v
in,- tlf ir poison Into . We beg
.1 to beware oi who eomes suggesting teeret
irops a word about violence or
iung or dcst
On October tth George Lansbury himself analyses and
- H --alls it Class War." "The
hers arc th<
campaign th< \ It has
>tal de>- Unionism as an
d weapon 1
i\< .-i huge ; . Astern set up under Sir Basil
iangers-on are always ready to at '
agents provocateurs. We Imvi tl > office,
led in all sorts of disguises, with all I and
mad suggest r.th we read th.
t \ ot tlu ra n has defeated the attempt
"f t . and ti I ilUt intm-sts it represents^
idc Unionism and inaugurate an era of low wages."
I design was "to smash Trade Unionism as
sn<)> I ladequate wages upon the railway-
l>e merely the first strp in the creation of a
that it would urrrpt inadequate
,11 indu 4i lesson of the stn
has taught all th<- \-. > ess, and the
which ;i p ' ist Prei^s : the
pni. d togt-t ipttalist
empl
see t (Between MI be the slaves of
militarised, capitalised system
Is them down at present, and
own power the final irresistible power they
< ss as pi wealth of the world to accom-
th- pi a ful Social Uc v.. hit i..n t control their own methods
tain to the full >tat :ce human beings in
tlu Co-operative Commonwealth."
FOOD FOR THOUGHT.
Now that the i by tin- alarums ami
IN <.f tl | aporaled, it is possible
to p( .he broad lint s of t i re in their true perspec-
In th- l.iitish
Equanimity, undismayed and nn\a- the
native quah: e and g< y been displayed to
better ( ffcct than by those multitudinous vietims of thr strike
who through im fault of th. ir OW1 uddenly confront rd
with dangers, losses and im-
unnecessary. At such a crisis one mi^ht h;r hdthatthe
predominant !' -lin^ \\" U ld have been one of Lit i <r indignation
against thr party guilty of aggression. For. of a certainty,
either the e\' Cutive of the (iovernrnent >r the executive of t he
N.U.Ii. must have done something to pmvokc the <pmm 1. and
one or other of the two must have failed in statesmanship. 01
the (jiiarrel would have been composed without the necessity
for r to force, l^ut the man in tin .is habit
is, refused to give way to hysterics. k< pi his temper, and set
rk to make the best of a bad job.
* * *
B bad one, whatever the angle from which
we view it. Let us state the broad facts of the case in plain
English. An important group of \\orkers had an industrial
grievanc me reason or other the Government failed
to appreciate the seriousness of a situation which had been
loping during many months. The larger public had brm
given no opportunity of forming an opinion on the subject of
the stabilisation of war wakres. and the rest of it knew little or
nothing of the rights and wrongs of the railwaymen's ease.
With dramatic suddenness the public became alive to the fact
that an industrial war of considerable magnitude had broken
out, a war in which their own interests 1 t>ly and immedi-
ately involved. They were threatened with the e<piival< .
a blockade which, if successful, would have meant starvation
on a scale more widespread and more acute than any imposed
during the war on any of the belligerent states. Gloze the
matter over how you will, and make what you can, the
bald fact remains that an attempt was made i tin-
State to come to terms by withholding the n< ! life
from the most innoemt s.-ction of the whole com muni ty. This
attempt was approved and supported by the very people who
have been loudest in denouncing what Mr. Lansbmv is fond of
calling ' the damnable blockade " of Britain.
60
cause the Government had not been
eaU wl
1 to
imiwarrft, there waft
also an < surprise in store for th. hloekader*. The
is expected to bleat its uitrrvicting way
be a very ., uu. and
*ith proceeds ? rtneittor* with n
hangccu illll
>cates ii became coin
' the was Ho<xlc<l with propaganda
in t ; The
iil\\a\ ni'-n's case wa
of appeal b uwaftlati
:ow much money
\ i Jt in struggle wa* in
ivss, hut \\ ioiiht t :
i -arli.T stai;-. 1 1. '!"'
i regard to a
iiiti* i so, one would
mas, as the responsible
ad vocat < 1 emandi
was estal-ii In har of public opinion l>. istead of
1 liinr.l th. advantage for tactical
reasons, hut in real n-sult was a draw in favour of a
that is to s.i\. the jMihlir who. m ,i r - .\ .-r. had to
redeem
is gained something substantial
h, we b r due before
hands. was leal
dm- aft :!ow-countryin
to ransom.
(cause t -hrt -.i- Because tkey
did to a.M-( ntnat. hitt.-ni' ss hy humdiating an impoi-
be nation, i
Mu a deal, and he was able to gratify
61
his penchant t" the accompaniment of
very general public appn '\ al. It is hardly necessary to add
that as a matter se The Daili/ lit raid, with its congenital
inability to appr anything that savours of generosity or
sportsmanship. yelled its< If into a passion of invective com)
in about e ( pial parts of truculent threats, smug complacency
1 bombastic paeans t' victory.
1 that the National Union <>!' Kailuav
would li.. ! justice \\ithout giving offence if they had
spen' money on education rather than on direct action.
To this there is the obvious corollary that the (.<> v niment
wonl d the ta deal of money if, b
the strike started, it had off, n d the maximum ions
uhich it would be prepared to grant to bring the men back to
work. k4 Look 1 " is a golden rule which <
incuts cannot afford to disregard.
We c whether anybody in the Government or cut
it has any conception of the pi- mllicted on both
I in such a dispute as that through which we have just
passed. If a statistical department of the Hoard of Trade could
keep and publish a sort of balance sheet showing t In-
cest of strikes and lock-outs to the whole community as
pared with the advantage gained by any section through the
same agency we think that the immensity of the ad
balance would be sulliciently surprising to stimulate the most
lethargic Government into taking drastic steps to piwci
at least to curtail, such a suicidal waste of our nati'-nal resou
Unfortunately the practical dillieulties of compiling an accurate
balance sheet on these lin< probably insuperable; but
some indication of the vast extent of the ad\< TM- balance can
be gleaned without much dilliculty by anybody who can
study such figures as are available.
When, in our nursery days, we were told that the cow jump- d
over the moon we thrilled with excitement at the adventure,
and were never tired of feasting our imagination on the fancied
spectacle of the achievement. l>ut we never tried to emulate
the cow. The thing was too j> . \Ve knew that it
was only make-believe. Now that we are grown up, then- is
much in the Utopian dream of universal Socialism that is
beautiful and pleasant, and that it does men good to contem-
62
you may never be able to jump over
jin
* * *
George Lan > Chios** Money assured a
working m
iiselvcs to-m !,-,!, tl
-
. W.llld
waste a minute in e.>,, , seriously. The
iganda now to rampant
mtsc* * u in
u'raiu <>f truth that
:ison and probnhih' . '> propositions in t r
as moon- jump:
to grasp. They ean
pped iVom M i angles, an<l th.ir aftiftoi *H
rear*
easiest thinjj on earth fr tin- fanatic, st ni^^lniLf \\ith \-\. .
ith a tissue of
is exact is being done
has gone steadily f.-i \\.-ir.i s past among many of
tin . ambitious an<l iir
el;i
I Aiders of the official organ of the VI'. K.. the Railway
'ir, arc told that, " One -union to **p* f aJht
production is th< : .d crisis and industrial
stag! Th -sc always mean uiiemployinent and \
lar^ji- numbers !' workers. .
\vor!. luce. th- fir ay IN tf
oics m ; .-h Labour ( llcgc, assures
readers of The Call \ wealt h aln-ady produced by the
! so great that the capitalists themselves do not
lo with it -ivest it m order tli
i a sure ! Our t ^ pose of the
h produe,,}. . 1 impean war was primarily a
roup should ha\e control of the
markets <>t t The position of the capitalist has
v th< potential and actusJ
utivecapac jneasur-
al.lv jrr, workers of this oou
itput and th. workers of America and other
countries do the s:un<- it in< tain war again in tlu> next
few years to who shall 1 influence 111
the markets of the world. . . . There is enough wealth produced
now to guarantee to us all a full. nobly and well-lived I
: publishes a pamphlet entitled. M M"i
made Easy." in which HP- writ 11. H. Sutbers. provides
the working man \vi' . -mating!)' simple chain of reasoning
as to why high wages and hard WOTi ttO sort of way COH-
Sutbers proves to his owr action and,
plausible is the argument, mod probably, we fear, to that of
most of his readers that the road to progress and prosperity
is through the c: xpansion of ere<lit.
Minents of this kind are only too easy to lind. They
'itinually in the Dnilij Herald, and lill th<- ; ' the
many weeklies and moiit hlies of t he Minority Press. 'The only
effective weapon against the misdirection of the credulous and
ignorant by calculated falsehood is the di r tb*-
truth. An educative campaign is an imperatr. ; not of
the moment, but of all future time. You cannot bluff the
average schoolboy by telling him that the original .Jenisal'-m
is in America. The utter falsity of >ueh ass. i capi-
talism is the barrier that stands in our path " can and inn
made c<nially apparent .
The scheme for amalgamating all the enpinccrini: and allied
trades into One Big Union, which was such a feature <>f the
Rank and File Movement's agitation three years ago. and which
petered out after the fiasco at the Newcastle < has
i revived under new auspices. The project involves a plan
the funds of the undermentioned union> and
societies viz., the Amalgamated Society ; . the
Steam Engine Makers, the United Machine V, the
Electrical Trade Union, the United Brass! on nd'Ts and Finis':
Association, the North of England
Finishers' Society, the Amalgamated Toolma! the
Amalgamated Moulders' Union, the United Patten
Association, the Associated Smiths and Sti the Nati
BrassuorkTs and Metal Mechanics, the Central Iron Moulders'
Association, and the Association of EnL r i and Ship-
building Draughtsmen. The title of the pi <-ombinat ion
be "The Amalgamated Engineering I'mon." which, it is
claimed, \\ould have a membership of approximately 500.000.
and a capital fund of t hive and a half milh
64
No. XXVII
NOVEMBER
MCMXIX
44 All great alterations in human affairs are
produced by compromise."
Sydney Smith.
INDUSTRIAL
PEACE
CONTENTS
Direct Action and Democracy
Practical Economics VII.
On Atmosphere
Organising for Chaos
Decentralisation in Industrial Questions
The Limitation of Profit!
Views of the Minority Press
An Industrial Creed
Food for Thought
INDUSTRIAL PEACE
DIRECT ACTION AND DEMOCRACY.
l * DF.MncH \TK ( i o \r n Illir n t ." Wl'otr "IK of its greatest apostles,
tar more Ilian a piece trf jjofiti -hani-m or ingenious
devi ,ted by political for the management of the
national bu- it is more sen than a plan for s< curing that
'government by consent' which, nnoe the days of Locke, has
always been in the forefront of political st nicies. It is an
opportunity for sharing >'i one of the very grca m-. nts of
ei\'ilisation the government of a nation ; and, for tlie individual
eiti/.'-n. it is an open door to an emancipation into the larger life
of the service of his country a duty rather than a right, an
obligation rather than a gift, a discipline rather than a
Thus, the essence of democracy is participation.
Hut tliis interpretation of democratic government is by no
:s universally accepted. There are people who test by
result rather than by method or machinery. They argue, in
effeet. that what is eflieient cannot be undemocratic, and that
nothing is democratic 'A Inch is inetlieient. To identify ciliciency
with democracy in this manner is either to strain the meaning
of the former so far as to deprive it of significance, or to ignore
the spiritual value of participation in itself. Those whose
test is " eflicieney," narrowly conceived, arc generally bur
ciats. and enemies of true democracy. They sometimes mean
well, but suffer from myopia.
Syndicalism and Bureaucracy.
The twin -brother of the bureaucrat is the syndicalist, who
likewise believes that the will of the " active " minority should
determine the conditions of living for the " passive " majority.
And he naturally belongs to the " active " minority, and will
owe allegiance to that group so long as democracy exists. His
method of achieving his end is called, in this country. ' direct
i," which may be described as the employment of the
industrial weapon the strike to secure a political result.
The final end, as already stated, is government by the minority ;
the method of governing for the time being is to coerce the
existing administration. " Direct action " is essentially govern-
ment by force, and therefore essentially anti-democratic.
OH
t .ill lirect ftHtmihtt arc aati-dcmoeratio in spirit.
vast majority ^nfittt of piniylft who have not
. i plications and corollaries of their attitude;
leadership a A carving propaganda, in which the real
issues have been ohsrnrv.l !.\ th- peflbNDl Id ' fatton '
il questions, and d
instrial .tn,,< There are others who defend t
i tif -i- . ri i t ii;it t IK- ;>;. (iovcrnincnt is no longer
, an. I that tin- i:i.|ilstrinl fttrifce U
<! n |>clling legislation which
opt,
a general one-day's sink
.
abolish, withdrawing British troops
, -i.i. it i- at all time* an easy and comforting belief
among dissentients that they constitute tin- ma
George Lansbury us the Advocate of And*
Democratic GoTcrnment.
some <>f tin- most active leaders <>f the -i
t-ment go inueh 1'urtlier, and deny t
Among t t d be reckoned Mr. George Lansl >
\ -the possibility that the
pposcd >ckadc against Germany, eon*
: parts of the Government's r-ef-nt j>
'nail in the count ry a- in 1* trliamcnt, Mr. Lansbury
Ili-r.i' sth) that. ' f.. r all
this, tii ts, and we have the right to revolt.
It take? Because I am an out-and-out
an opponent of force, <> iec and disor (aim
ilra\v on This U
ited sentence which, removed from the context,
-presents the p. .liti.-al theory expounded at that t
an otli. T example from the leading article of the Daily
JTth: An 1, anyway, all this d< nght
n I n the face of it. A man has a right to v
for anytl. : hinks it riu'lit to st :
1 <>f the ambiguity winch appears in the last quotation,
ans that a min< >nt v of a trade union may render
! any and every agreement concluded b>
Agreements have no binding force : they are mere scraps of
<Ige nobody. The moral right to strike, which
illy believed to be surrendered for the tenure of a wage
67
agreement, may be recovered at will. Desire knows no law,
not even the law of individual contract. Thus the doctrine is
hopelessly inconsistent with and destructive of trade unionism
If. It is not UK n -1\ anti-democratic: it is frankly anarchical.
It excludes all regulations, since these cannot he enforced. It
practised it would destroy all organised life, for even voluntary
organic tie founded upon regulations which must he
obeyed if such OTL: lUTViTC. The ri^ht of the
minority, he it oh -ids beyond that of resignation :
it i revolt "ore revolt active resistance. 1-\.|-
a strike is more than "j istance." ation, or
"simple withdrawal of labour"; it comprises an attempt
(through c withdrawal and picketing) to pr
industries from he ing carried on during the period of the strike.
And the "general strike" is nothing less than active and
organised resistance which, hy the employment of economic
power, aims at making hfe impossihlc until the demands of the
minority are conceded. Hut they never can be conceded, for
the simple reason that unanimity is unattainable. And if then-
is always a dissentient minority which possesses the right, under
all circumstances, to impede the production of the essentials of
life, and exercises that right, how then can life be sustained ?
The theory is thus directly antagonistic to constitutionalism,
democracy, even government itself; by implication it d-
" unofficial " strikes, and disorder as a permanent feature of
industrial society. It implicitly denies the possibility even of
State control of industry, for this, like democracy itself, and all
forms of organised life, involves discipline and obedience to law.
If the minority enjoy the right to revolt, it is a right to revolt
against the majority : the consequence of it s exercise is a trial of
strength, and government by force. The inalienable right of a
minority in a true democracy is that of converting itself into a
majority, when revolt becomes superfluous and a revolution
has been achieved. This fundamental truth now se< have
been grasped by the miners' leaders, if one may draw the ohvious
conclusion from their present campaign in favour of the
nationalisation of the coal industry.
The Blind Alley of Inconsistency.
Mr. Lansbury does not, of course, declare himself an enemy
of political action. In the article first quoted he wrote as
follows : " Some of us still believe that c passive resistance ' or
the strike is an invaluable method for backing up political
a<-tiun. In a political party there is no room for those who
68
Ian- in favour ..) .!.< action a 4fO*JU* |*np*fr>a| actlOft.
e we accept f a purely political rgiuuatiaa,
rganisation and act i .it, however, ou# . prriTiMt
adopting the method of tin ttfln when* | r of
i slice and wrong cannot .vise be stayed." Him
democratically it >.u ran, I nt achieve your
necessary to p< contradiction in
\\lurh is a i i the ma rulr there ran
! organisation of the natt.
1 action cannot be
irntar\ itualK d. st
( io\v r:imcnt v. Direct Action in the
Mining Industry.
It is (iiMicult t.. estimate th< ititlucncc cxercticd over the
.general body of industrial u.-rktis 1\ ti
-, hut ih- re appear reason to I liat they are
iiis(-rc(litc<l ( \ -I,, y were once regarded with
it is probable t
n uill not again be s-ri..usly nnpl..\< d cr with
regard t<> the snlijrct mew aim at
MI ling State ownership with a considerable degree of
ontrol b selves; and it is fast coming to
must }>< i<.undl on the demo-
and that to place themselves in direct opposition
i pie when applied in the political sphere
is to destroy any chance of success in ti avour to apply
i ust rial sphere. The South Wales extremists who
tly issued a pamphlet descril method of control
would L rivr them satisfaction stand in the same
to the Miners* Federation as the latter threatened to
i t<> the State. And the abandoninc i mocrac>
i theory, b\ tL< Federation would ultimately
Id t.. the disruption of that body.
The Responsibility of the House of Commons.
Hut the danger of direct action, although growing more
has not isappeared. The Government, at the
present ; .v or may not be an effective instrument
M MR effect general will. But even assuming that
its measures itherto met with general approval, Uiere
remains the danger that it may embark upon a policy which,
if submitted to the electorate, would ted by a large
majority. Tlu- \ ( i -\ < rnm< ;it was elected to deal \\ith
a large group of probh ms each callm- for legislation so impor-
tant as to ji ' not to compel, imdei normal peace con-
dition^, an appeal to iiuunity. Moreover.it is In coming
more and on lent thai such i question
political principle ; md such questions are p . hich
'ttl'-d on "party" lines. It', tin; < . -rnmcut
Tails in it ,vour to intcrpn t the ecm-ml will, t he dan<j<
t action will again become acntc. And the influence of the
anti-democratic \\\\\ tend to Lfr'-w with the disap-
p.'intmeut of the electorate. The real n sponsihility <>f the
is therefore greater rather than less than
in t lie past. Nor is it merdy a collecti v< i -p"iisii>ility. N
was it so important that individual nu mhers should be in close
contact with th- , to educate them and he edue
beOL Iu this way alone can <! y h- made effective
and the last vestige of excuse for direct action destroyed. It
was stated at the Ix^innin^ of this article that the e
ocracy is partiei])ati<n. Those who are anxious to shoulder
their responsibilities as citi/ d< nicd the oj)portuuity
of participating in government in the mamu r approved by the
apostles of democracy in the past \vill s ( i k other methods f
participating, and in so doing may fall easy -victims to other
apostles, not of democracy, but of anarch y.
PRACTICAL ECONOMICS Vll
I AM).
the prciont system of land
. t his << .unt is \\ in. -h U open to attack both on J ****v*mfp
ami <al grounds. Hut it is one of the apparent!)
weaknesses of man t rcrption of thr
1 and existing systems blm<i **
I ness there may b< scheme he would dev
y speaking, th<- tilings we have are not wholly bad.
an.i th< things we want are not wholly g ''U is particularly
"'! " .>' land, labour and
1 to take an intelligent
eat in tl m as a whole, there are certain
l>ects of the nat uses
Ahidi prc must s< . :, these,
we can < >ssible actions and reactions
uiiu-h the < .ui.l the \.in. -us proposed systems of the
use and own . n any given set of social
I i area of the earth's surface is
a primary o : that man can do. . . . K
has givi-n ual income of beat and
air and m ' hese man has but litt)<
p .-!' tii. land gives possession of
annuity ; a' space rcqui: and
;. valur .-: this space being
mu.-h affrct-l 1>\ it s geographical posit i
ints to be c'inphaMscil in <1( fining land as an agetr
i 1 it it is t he sole source of all raw material, the foundation
without \vhich life cannot e.\
ists of all those things which man does not produce
Ah (-ff..|-t t '
regards its supply, land is hunt..! in <ju.i
its use necessarily increases
>wth of population. Quite apart from any effort the owner
isc tin- \alur .f his land, the greater
the needs .ommui
be usr >f the land.
Mi \v c shall Where
r any thing, the
sup] hich is limit.. i. tb i '.: : at which it
will IK-
.\lftredManhaU:
71
The Nature of Rent.
But if land is a " free gift of Nature." why pay anything at
all for its uaet In discussing t} ns question we will confine
ourselves to the conditions obtaining in our own country, where
the supply of land is strictly limited in proportion to the popula-
tion. Land is essential to production. Hy the application of
labour and capital to land aim life. Hut all land
is not equally productive: diff.i.nt amounts of labour and
capital mu- 1 ;>. nded to produce equal results from equal
quantities of land. Land varies in fertility and in its site value.
I t fie hill-broker, a few square yards n , Lombard Stn
worth infinitely more than as many acn Hand,
land is limited in supply, H 'id of unequal value,
men compete for its p, , ;i nd are willing to pay for its
a sum proportional to the difference in value that the land
will make to their ability to earn or to produce. Land
requisite of production paid for in accordance with its pro-
ductivity. Kent is the payment made for {he use of land.
Actually, of course, what we term rent nowadays is lar.u r -ly
payment for improvements in land due to the previous in
merit of capital in that land. Hut such payment is really
inter' capital and must be dealt with as such. If we
exclude payment for capital ii that true rent,
generally termed economic rent for the sake of clearness and
accuracy,* is the estimate in terms of money of the diffenne.
in productivity of various pieces of land occurring in the same
market, differences inherent in the land and outside the o\v
control.
Is Rent a Socially Useful and Necessary Payment ?
From the point of view of the community it is an advantage
that the land should be available for use by those who can
render it m6st productive. The welfare of the population of a
country is conditioned by the net amount of wealth extracted
f i "in the land. And the man who can use it most advantageously
will, generally speaking, be the man who is willing to pay the
highest price for it. It may be objected that the man who is
willing to pay the highest price is the wealthy magnate who
will use the land solely for his own pleasure. This is true of a
certain proportion of one type of estate, but it is not the
necessary result of allowing rent to determine the distribution
of land. It is conceivable that legislation could deal with this
* The use of the term ** economic rent is not confined to land, but as
we are dealing only with land we must, for the present, ignore its other
applications.
72
tie principle of
t also be remembered that the possession' of a
estate may be an iitccn' luctng men
s wealth. The nnasiNlll
estates l> ..-aith \\luch they hold without
''rred a corresponding benefit upon the
is certain! v nt so prevention must he
sought in some alt. he conditions under which men
trade an Uws of inhctitan
capital use of any
pier n equal skill. th< man whose land is
'- than i U- able to raise a bushel of
h the a labour
Hut i o m the open market will >
one whose cost of
was l v to good markets
d advantage on ne site as opposed to the
own- : any syst iug at equal reward for
equal eff t m son >uld ha\< to be paid, if not
to tli en tO til
The Economics of Private Owoenhifl.
On the ^rounds oi it appears to be
justified. Thr , -eonomie and the social and ethical aspects of
;>res,-nt lysl NT which this socially useful principle
is applied are not quite so satisfactory. Kent is du t'. .i
nates in and b
iis diff< ' i hongc value of anything
ion between the demand and supply of
but cannot pcrma fall below the cost of
prod' The greater the dema land, the supply of
which U strictly limit. -d. M having a monopoly -value of
will v paid !
will l>c propor' to the excess of its value over that
be least product ivr land brought into use.
if is a payment made for something which has a scar
. the own, r or user thing, but to causes
my individual'i control The essential characteristic
i< that it is
the out, s that arc not. he owner or user
ire ind the payment made t ^ ths*
the payment lor land .lift- n BKMB t he payment made for labour
71
pital in two important ways. Tin supply of land is not
affected by the payment; the total amount of produce would
not be diminished if no n-nt were paid. It is not a necessary
clement in cost of production and doefl not affect the level of
prices, which must always approximate to the cost of production
of the product raised on tin 1 ast productive soil under cultiva-
tion. Prices determine rent : 1 he\ are not determined by it.
An examination of the nature of n-nt must show us that,
considered impartially and without reference to the hi
the actual conditions prevailing, the payment of rent to the
individual is not socially useful or i \. True rent that
is, the payment mad e for differences in the productivity of land
does not KnottM production by stimulating endeavour. The
quality paid for is independent of endeavour. Under private
ownership. t ; . individuals reap the benefit of a ehaiv
industry for which they <:ivc no corresponding return. The
individual contribution to the wealth of the community is not
affected by this payment. Socially and economically t li-
no justification for the unnecessary diversion of public wealth
to private ends.
The Ethics of Private Landlordism.
The ethical case is equally unsound. Under our present
laws of inheritance the ownership of land entails a perma:
inequality of the distribution of wealth which increases the
remoter the title and the greater the needs of the population.
Moreover, it must be understood that the increased land value
shown in a rent rising owinjj to the needs of a growing population
is an increase in its exchange value, not in its productivity of
wealth. The price goes up because the supply is limited and
the demand increasing.
Ethically and socially the payment of economic rent to
private individuals is open to criticism. Economically rent is
an efficient method of equalising the return made by land of
varying fertility <>r site-value to equal quantities of labour and
capital. But it must be borne in mind that the term rent as
roinmonly used covers a composite payment for land and for
improvements due to capital and management. It must also
be remembered that even if we do all come to n cognise clearly
that our present system is economically and ethically unsound,
the land has been in many cases acquired and in practically all
cases held in good faith by the owners, who have invested their
capital in its maintenance and improvement, ignorant of any
flaw in the justification of their title to the property, and
quently entitled to every consideration and full compensa-
tion under any scheme of expropriation.
74
ON ATMOSIMII RE.
MEMBER home yean ago spending moat of a day.
with a !: a matter of passports in a foreign
\ . weary rnn.i : office after oflkr, oAdal
official, till . -M -utn.-ill;. you r. arh th- right room and thr
can set At last we stood by bit desk,
:. hut .-!,.. I'.ji. and i/i..' in advance. We men*
iisiness. He looked up with a j< r k. threw looks and
words at us, stark and sharp, s< tomenU we were
glad to escape from th spasms of his energy.
ng terse and clear. In reality
he conversed like a machine-gun. A v. .
:ny inilii hicrnl Said ' lie
This is certainly a s. nous defii i A picture without
re" may strike or start Ir the behold, r. it may
administer a strong stimulus or a shock, .ill scarcely
W him. Whereas the good ; in stirring thoughts and
ugs, sen his way rejoicing, (iood art
conciliates the elements of his mi is the same with a
poem or the picture
re " lacksa suhtl< f..nn .the broader
issing unity that gives a charm to art. Most work* of
art can be analysed i m<l atmosp!
something ctntral >is laid on it and a vaguer
Icrneath. N may call it
back . <r t>n, . Its !: -n is to support the central
eh mrnts by a general attu: 1 in a tragedy atmo-
'!ic in<>\ plot, and prepares the
for thr tragic dfnouanfnt ; i the comic atmo-
thcrc tf.x-s a <liff-r< nt cxpectai hi all these cases the
ihl iKang helped out
syn
is thr jH.int I was coming to the interplay of aetkm
atn s a most important \ \ IHI will
n-a.lily. p. rhaps, if I put it in other words. Take
comni _r wh<-rr th. r-.- is factiousness or (rieboo of
(>n t the background, so that
any gatlu i ' may happ<
iking a wrong note. \\ nibark on some Joint
nturr. \vhat.-viT be its
ih pend to a surprising extent on a
73
atmosphere. Harmony is hard to build up, but easy to destroy.
'Die harmony I am > ' d with here is the fostering friendly
air in whieh a man's action thrives Cftfil -t . NVit hout cncoura.iie-
ment l'nm others, without a kindl taney to draw them
on and draw them out, men seldom do I heir best . The int ,
'hers doubles or trebles the worth and the force !' most
men's efforts. Look at the home, which is the epitome of tin-
best in human life. There you iind mutual encouragement and
stimulation in an atmosphere of affection. It is thus that
effectiveness and happiness arc combined.
Now I come to the heart of m y argument. For action to be
right, the atmosphere must be riirht. A man's actions are his
own : the surrounding atmosphere that either helps or hind< rs
(fortl is the creation of others. He himself in his turn has
a part reciprocally in creating the atmosphere that lowei
shines upon other men. Thus all alike arc dependent, in part,
access and happiness on the main! of a good atmo-
sphere. In a bad atmosphere of t< -nsion. hostility and alien;
no one does, or is. his best. And atmosphere is not an ac'-ident.
Merc impulsive instincts of friendliness \\ill not assure a [
is \\anted than impulse. The creat inr and
the keeping of a good atmosphere must be realised as the first
d duty. It must be adopted as a permanent policy.
At this moment many things are out of gear in England
because men and women are not fastidious enough about
atmosphere. They allow ignorance to diffuse suspicion, and
divergence of interests to subvert goodwill. Hence then-
spreads the atmosphere of criticism and menace that is weighing
so heavily on the activities of hundreds of thousands. Time
and power are wasted on unsocial feeling. Those who harbour
hate are worse men for it themselves, but they weaken, too, all
the heartiest energies of others. A society subject to these icy
and poisonous influences must needs live under an unnatural
strain. It may sink indeed into pessimism and suffer dis-
integration.
Nothing will excuse the propagation of the hostile feeling
that can be so repressive, just as nothing can prevent it. one*
it is there, from having its due effect. The issue is a moral one.
Good manners and good morals alike impose <>u all of us the
duty of keeping the atmosphere sweet. In proportion as we
fail in this intimate personal duty, so shall we heap up for our-
selves industrial and political evils. Politics is not a realm
apart from morals. In politics there is writ large for all to
the trend of our besetting faults as members of society and the
measure of our failures.
76
OIU;ANISI.\(; i OK
WHAT effect has the recent railway strike had upon the plant
ati'i scheme^ >lutionar\ movement in this count
Th.-re are people who would like us liat it hat *n4rd
a general stn! i Is it the condurioci of
ih observe^:- i ' I* asked in
tif * ' may be said to have obtained a
' ^'"' inipalpable but very mU
tin -.-it ic general t I'hal,
taints, lias entirely disappeared. From being a b
half believed in. it has become, a discredited turnip-head, which
nob< a newspaper paragrapl i r again take
isly."
1 The New Age can take this view, we need not be surprised
at the < Press a at a similar conclusion. This
:!' M-'-A is based upon the fWTftt with which
^port was organised, and upon the effective
p -1 I') mtcers.
\Vhat do t!i would -l>c organisers of revolution think about
recent strik<- and the Com mm ;.t's efforts to defend the
community '.' it is quite dear from their comments in the
Press and at various meetings that the preparations ,,f !,,-
re on a much larger scale than they had antici-
pated. And it is equally
the railu.r leaders had not kept the Triple
< (1 <>t t he progress of the negotiations. The
,is ,M!|. .1 -Ait:..--,; oomuH Triple Alliance, and
Ian of campaign was The explanation
the extremists is that the t . >\ mnient, knowing that a
hands < \rrutive
hem no alter it to strike immedt-
at(l\. It may be observed, h"^-\ r. that t ' '(.Executive
was i whereas UK iiembers
the Triple Alliance couM n-.t do so without a ballot. Mr. x
cLcan M ounces the Parliamentary Committee of the
nigress because they did not at once call
1 tin unions in support of the railwayracn. n if the
rliainentary ( 'iiiinittcc had Ix^en in favour of a general strike,
ey had n <- of authority to order the unions to cease
rk.
.ng back upon the net results, the extremists regard the
strike with mixed feeling are satisfied with tlie
" solidaritx " of the railua\ men. but they are somewhat dis-
appointcil that tin- crisis did not continue long enough to create
a revolutionary situation. They attribute this failure to the
apathy of some of the Labour leaders, and to the lack of
co-ordination between the t ; the Labour move-
. They do not seem to n alis<- that a national stoppa:
railways is an ineo' Art only for the general public,
but also for the orga: is. In fact, the Labour
leaders were as much handicapped by the stoppage of trait
were the general public. SOUK of them had the greatest ditli-
culty in attending hastily summoned conferences. Mr. NVil
MeLean and the Clyde workers may ki lx>o " Mr. Jam*
because he travelled from Liverpool by a train worked by
"blacklegs," but it was probably the only, and certainly the
least expensive, way of getting to London. Mr. Ramsay Mac-
donald L r njoymcnt out of his three days' motor trip from
the north of Scotland, during which he seems to have b < n
ed by motor owners and hotel proprietors. The fact is
that some of the biters were bitten, and the weak links in the
revolutionary chain are consequently in process of being
hauled.
John MacLean, and other promoters of revolution, find a
grievance in believing that the Government forced the railway-
to strike before the organisers of the attack were ready.
mplains that, " Instead of waiting till Labour would take
the offensive on issues giving Labour new power in the (
War, the Government has promptly rushed in and
driven Labour to defend itself." A a result of these
experiences the extremists are now advising caution, and are
urging their docile followers to avoid precipitating a crisis
until the revolution can be carried out " according to pi
To quote the Bolshevik Consul again, " if a general strike can
be avoided at this juncture, I think it advisable ; for the
Government has shown its preparations and its control of t
and \.-hiel--s. A general strike should have behind it the
imp'-tus of a Labour attack, whereas the impetus is on the
of the capitalist Government." Under these circumstances
delay is necessary while the army of the Class War is more
ively organised and equipped. Labour's commissariat,
which is the Co-operative Movement, must be prepared for the
conflict. As MacLean put it: " We must get ready to
see that in the greater clash that is coming we get the foodstuffs
into the hands of our class." Winter is coming on, and negotia-
tions and agitations must be continued M until the people are
thoroughly united for a mighty class effort." But he is still
78
afraid t
lutionary force* are ready. So he aaks^ M Cm the
mm'Ts afford to wait a month or two, .
'>' c *n. a'eanny policy and are
backed u >thcr w<
min.-rs v.,ii u ncrml Staff will be formed to
t militant Labour, afl i :'> the meantime tftep* will u **fmi
rganisc Workshop Committ*-,- rf ht da biaa."
I Workers' Committee m i*ow on Oeto-
b to consider the division of Scotland into area* to be
rolled by Social Committees tit t
:lar scheme is proposed f'-.r Knglan<
local bodies will be closely alhni \\ith the cooperative
and they will he un<l< r th> rcction of a Central
i lands of this revolutionary organisation are to
according to Ma vocio/uofum ays, and
r industries, with M t-ill industrial control by the workers
!\<d, th .:.;;! i modified to permit of the use of the Co-
M t , control of the education of the
a tin ;r week, fifty per cent, increase in
illy prodiK t>d houses, withdrawal of Br -ops and aid
. all parts of the world. 1 1,. ut><>litin <: the Army and the
Navy and the establish mm t of a watiunf d :rceandthe
of the runcti..ns Q| rariuinu-nt to Labour's Central
tee."
In what way do its authors propose to realise this ambrHnoi
program unions t<> the conference at Glasgow on
Octoi to:ih,,%,-. it is stated that* 4
fight with Capitalism is drawing near
parati..ns ,, r be made for the great event, and the
1 uith (if necessary knowledge and machinery
to cam < ral Staff or Central Committee is the
first step towards this did. The local Committees win be
assisted to some extent by the capture of municipal
rease of ; 1 power, locally and nation
ancillary to th< industrial policy of the revolutionary
tinns. How political i: us can be used :
has been fully explained by Lenin and by his
MacManus. The situation, then, industrially and
politically, is regarded "ith me degree of satisfaction by the
iitns ,,f strife and class-hatred. All that is required in the
opinion of thr 1. -adrrs is better organisation, the exploitation of
Cooperative Movement, and, in the words of Maclean, the
responsible positions of " declared 1 1 1 ululionMi "
like Mr. Tom Mann, the new secretary of the AJL
7*
DECENTRALISATION IN INDUSTRIAL
QUESTIONS.
IN one sense it isalittl. me to put forward decentralise
lion as the triK- |)nlicy iii the industrial n aim. 5ToU cannot
decentralise un! ion lias already taken p!
and it is a common error to suppose that centralisation is
already a serious danger j n industrial <picstions. a danger that
Can be met only by cutting away an inflated central organisation.
The truth is that a little organisation for the solution of labour
(piestions exists at headquarters in London, and very little,
at least of an el kind and adequate in scop, ,m\-
\\hciv else. It is but too true that "machinery " is uoefu.'ly
lacking both in London and in the provinces. The nation is
only at the bcgi lining of the " parliam. nlary " era in indn
It will not go far without finding thai representative bodies in
London, and similar hodies in the great industrial i each
well developed in the various departments of the w<
utive. investigatory, judicial and each hacked by public
interest, are the main condition of industrial harmony and
success. Th<' centralised and the provincial onjanisat.ons
should be but the c< >mplemcnt ary B of a sound schcm* .
At the present moment efforts are being made to establish
a National Industrial Council. These efforts will and must
succeed, if not immediately, then soon. Hut when the Council is
set up, that will not be the end. If it were, ih<- National
Council would he too much in tin air to be effective, for its
natural and necessary complement, and indeed its best support,
is a system of local councils. Consider the analogy of Parlia-
ment. No one from the existence of the (wo II"
of 1'arliamcnt at Westminster that Hradford need not have a
town council, or that no local authorities are needed in K
The whole country i d with a network of little and I*
parliaments. These may have less power than the body that
sits at Westminster; but they reproduce, with the i
variations, its main characters, executive responsibility, con-
stitutionality, and representativeness. The moral of town and
county local gov< rnment IB that freedom and efficiency dep
on the application pari passu of on< main conception both at
headquarters and in the provinces. Thus Parliament and the
D council arc complementary: the centralising and the
decentralising tendencies have grown together, and together
borne fruit.
The National Industrial Council is intended to embody the
80
uomous neapftfitihility and
i It \\iil necessarily focus certain
a puMi-
I ;ul analogy between the political
' tt > .::!-, l,c
assumed t! itional l ou
ij. and , r land,
implication of public j^Mtff* u a
Itfeti h\
indast -, nlm** 1
need is r rnachinrry " or
statesmanlike stamp.
I distrustful ;td disbelieving in
as aii ii itself a follower, in short, of the principle of
parsi i dined to deny the
need for mu< im coiuddf > lappcncd duhng the
War. In- lu -u^'iit lit jr. .it !nbcT tO
!> place win-re adequate fa
were t*> i In I...ml..n. 1 1 'vatiocu had
to be i!i:ui . \ MS war mini (ied Labour Depart-
i ( itt(c .n PfHJurtiou was act up at the
supreme arl> And t
iiM-nt. So great a eoneentration of
.uit! <( ssitated measures of deeentralisation.
measures wen- undertaken l- War Ministries,
established a multitud. Qotl in tin- \anoUS
regions. That is what alisatin :...:,. : >r the official
: : tin- planting <*ui ! nates. The Committee on
Prodn.-t tinal court of appeal and also a
: oftirst insianc.. Mu. work was ludicrously irre-
e larger issues.
It u.Miid depreciate the work donr
industrial m War Ministries.
ealisati* -us and
iirs of tliesc luauch offices IS DCCCSSB r industry
i uith better procedure and better machinery.
hraneh -i; f on the whole superior, as
pcrsimntL t Aould have filled these posta
ix>sts had existed in ordinary times. Hut thong!
respect of personality and technical qualifications these officials
were. t proportion, men t standing, they had very 1.
ild do nothing of any consequence
Ixmdon. They were not repre-
tu< had not the backing of any
SI
effective local body, for n< such body existed. They could not.
focus public interest, being thcms, 1\ -,-s but an or^an of the
central government, nor could they create an atmosphcr.
:css a live public opinion. In short, they were not a local
lopment \\ith a democratic basis, hut only a set of temporary
intrud* rs from London. And though they did some good
\\ork. their usefuln tricted in a variety of \\ays.
WCft, indeed, a form of decentralisation, tin- only form,
perhaps, that \\as practicable in the haste of the \var period.
It is possible HOW to sec in what ways th-y ou^ht to be supplc-
ted, just as the national interest demands that by such
supplementing the risks ..f bare bureaucracy shall be guarded
against.
The war system WBM faulty in another n ipeot Not only v,
the local ollices M in the air " as drawing bureaucratic authority
from London, but in London the concentration of executive
authority in the hands of a few overworked groups of adminis-
trators was in itself a serious evil. Too much busin. ss came
to London. Congestion meant delay, and delay was directly
I ieati\e of unrest. Administration at a distance is inevit-
ably faulty, at any rate in industrial affairs. Questions were
apt to go through a cycle initial delay would lengthen into
indecision, and procrastination would end eventually, as is its
common end, in impulsive and perhaps imprudent action. The
provinces were gradually getting at loggerheads with London.
refusal to obey awards and decisions, for instance, in wages
tions, which showed itself in 1918, was due in part to a
growing reluctance to take orders from London. The ill-effects
that might have attended the divorce of decision and adminis-
tration from local feelings, had the war not ended in November,
1918, have been spared us. There were plenty of signs that
they would have been severe enough to compel a real as dis-
tinguished from a bureaucratic decentralisation. Incessant
recourse to London bred a habit of litigation in industrial
matters. The habit and the taste thus formed still exist as a
handicap. Trade union officials came to London to confer
with Government officials and with the officials of the em-
organisations. It was officialdom with a vengeance.
The mass of the working men felt themselves complete outsiders.
The mass of employers felt the same, but perhaps cared
The general attitude of Labour at present oonsistl in part in a
resolve to prevent industrial affairs from drifting again into the
grooves of bureaucracy. Further, the centralised methods
followed in the war had two untoward consequences which are
patent to all observers but are seldom referred to their true
i M-.-ar number of industrial issues are brought for
the same central court or to the
' issues tend to on^tnJHatf with
issues is apt to be
Cases to do with each other are apt to
les and in the same ways. And,
il issues, conct m London and thereby con-
iated, turn \ . ry readily into political issues. From Man
a confusion l.--th industry and politics mutt suffer seriously:
Must rial juestions are settled on irrelevant, that is, poitkal
uds, and the character and temper and
.cs change for the worse.
d of decentralisation lustry is,
is been done lucatioi
cons . has an education n . of iU own, and
legal pow 'in. au- ;irc
limited, win! Msedmpart :. the Board
the responsil .d auth*
are very real th-n^s. Its < basis makes it an organ of
A ..:. ..: : .. :
Hordinates all local
<>n the educational side, and it works in a certain fai
\\hich tly sustained by all the
stances <>t its It is a fair comment on the facts to
say that the just n. . d . ralisation cannot be seen until a
.1 decentralisation has been set up.
Hut co ie with industrial
All sorts of Industrial (
are sectional l general public is beginning to
ise. Masters and men together have little hesitation in
sing wages if they think that the hurd< -n can be
t ely to the consumer. Soon there will be acute
this risk l.y the establishment of non-
sectional bodies. horoughly representative Grand
tola suggested above, for important unit areas,
' T hand many rs are busy building the
re t h. regional agencies hare apparently
a thought o the regional councils cannot be set up
they oii^ht at least to be set up concurrently. Some
m. lust rial questions must be treated " nationally " because they
are general . Hut th. l.ical and special queatioiii are to numrrous
\sould always have enough to do.
uld develop, of course, their o\\n
:u iliation and arbitration, and they would
with, .ut asking the leave of the Minister of Labour.
THE LIMITATION OF PROFITS.
AMONG thr many vexed questions of the day. few are more
ditlieult than that of the limitation ofpfOflt* Militant Labour
claims that prolits should !.< strictly limited, if not entirely
done away with, and all Becttana of the community, snuu
from the exactions of the profiteer, call vaguely for some
remedy. The profits of tin- middleman are, at bottom, sir
to much the same line of criticism ; of the actual manu-
facturing or so-called productive industry. If an indispensable
service is rendered the community must pay the price at which
the requisite amount and quality of that service will be forth-
coming. But for our present purpose it will simplify the argu-
ment if we deal only with the profits made by industrial
com (ins in the ordinary course of manufacture and sale. \Ve
propose to consider brieily whether such profits can be limited
without detriment to the industry and prosperity of the
country, and if so, on what basis such limitation should be
foun< :
Profits generally can be divided into two parts: (1) tin-
ret urn to capital, and (2) the reward of efficiency in managen
and organisation. These may be combined in one ownership, as
when the capitalist is himself the manager and organiser of his
business ; or they may be in quite different hands, as when tin-
savings of the many are entrusted to the management of tin-
few, the latter usually being partly remunerated by a sha
the earnings of the capital they control.
As regards (1), interest on capital consists of two payments.
one for the use of money, and the other for the risk taken by
the lender. In our own country, before tin war. when the interest
on Government securities was round about three per cent..
money could be obtained for sound industrial ventures at
five percent., the extra two percent, being compensation for
uncertainty of return and lesser security of capital. Now that
the rate on Government loans has jrone up to some six per cent.,
new capital will not be widely obtainable for industrial purj
at less than, say, eight per cent., and if the return on such
capital i- pdueed below this figure, money will not be put
into indiist i y to any extent. No man invests money in industry,
with all its risks and uncertainties, at the same return as on
Government funds, with national security. Capital ntial
to regular and remunerative employment. The most obvious
84
' that (from the point of view of
he best advantage, is to all*
those enterprises which can afford to pay the highest
we assti
dcrtakingtt of the mam
if made as binding as U compatible with
risk m good faith.
1 always be prcscn'
ntraet hall ensure the just working of tht
pie.
\ (juentlv asserte<i that, n t he return on capital
thus reducing capital, and *tl
The
to which this \\ "dd actually happen is
i prob DOned with and solved beforr
actually put t<> th. t. is conceivable that
iustry could set ast*
part proceeds of the sal finance the
necessary upk. . p and e\pan- :hc industry; hut past
The teeo
uagement and organ i sat i i The importance of this
t hose who claim to speak
>al conditions, the one,
well manage makeai creenL
re profit than the other, n: management. Hut
thev i are not long maintained in a oomp idtutry.
I and stimulate increased pro-
rrices go down and the economies of the best
>t are forced upon t!.- tl,' Competing firms.
the nniunity benefits. *' Excess Profits **
cann lie lodestar of
industry. It would be a grave error to restrict
the ; ni and thus dept induCC-
nici ^ood ways.
i basis MII irfaj tits may be fairly calculatetl i% *
iiUiculty in the way of n ^al scheme of limitation.
fits are usually paid U issued capital :
hut thi^ tly hears whatever to the actual
int invested. Shares particularly ordinary *hait olfcn
>t represent money at all. They are deeds entitling perms
to a share of profits in ivturn for various services rendered to
the linn : tokens <jiven to directors or managers, to staff or
workpeople as a basis for a share of the profits. To fix a rate
of profit all round, and allow it to he paid alike on sueli capital
and on capital representing money actually invested, would be
an obvious injustice.
On the other hand, in many concerns, especially private
companies and partnerships, the nominal capital represents f;u
less than the money actually invested. Such businesses are
:i started in a small uay \s ith little capital, and are extended
year by year through profits bein^ hit in until the assets may
Lrreatly exceed the nominal capital. To base profits on the
latter would mean ruin to many a flourishing concern employing
considerable numbers of workers.
Then there are the many thousands of family and individual
businesses which have no record of their capital at all, and very
few records of any other kind. To investigate the financial
position of every one would be a gigantic and expensive task :
yet it would be impossible to ignore them. If any class were
exempted there would be an obvious temptation to transfer
other classes into the favoured section, thereby placing a
premium on chicanery and fraud.
It must also be remembered that many a man increases his
profits by making the best possible use of a small capital, and
by working long hours and exercising ingenuity and brains.
Any limitation of profits on a capital basis would ignore all
this ; yet it is frequently far more valuable to the community
than capital itself.
It is true that it might be to the benefit of industry, and
go far towards the elimination of fraud and injurious speculation,
if it were possible to define capital in law, and compel all firms
to adopt a standard method of publishing their returns in such
a way that the exact earnings of subscribed capital, management .
and so forth, would be clearly shown. The possibility of such
a reform might be carefully investigated and undertaken
experi men tally to the great welfare of the community. Indeed,
much labour of this kind must precede the artificial limitation
of profits. The ground must be cleared of rank growth before
the field is sown with grain, or the hoped-for harvest will never
mature.
To base profits on capital is at present impracticable. The
use of turnover as a basis presents almost equally serious
drawbacks. You cannot standardise it as a percentage, and
say that all businesses should pay, say, five per cent, on their
turnover. This might be a perfectly fair rate in some classes
8(5
would I*. u tt ulrquatr.
sted to ^,
lit be 500,000; in others iQO.OOO.
Ar i si ness is to reap mtagr from any rvduc-
ooat, ulncii ,! , QO( nrrfiiiiil , lercased output,
ijreatest factors in low r ,-es goes by the board. Say
a con. pai .\ is already earning the standard rate of five percent.
and can see a means <> nig cost so as to
ease tins to t-n percent. : ordinary u ight
i half per cent., and retain two and a
half; s own reward. Hut \o t> ihoa .able
about the n ran retain n.tf
..ill;, ! iim.iM' ng prices) aod so reduce
its n -tamable profits? A 1 ii a big turnover is the
most advantageous arrangement for the column
A profit based on a monctai is a direct
Uid. asc tin: ItUSUlg pnCCS. If a fir:
to get five per jually UW.OOo
surely aim at : '^ure, ^ competition is not
loujrh t.. pn.t, cnnMniicr's intrrrst. T . base
profits on a p, itstead of a monetary, turnover is still
(iitlii ult. Kvt n in t lir caseof asimplecommcHl coal,
it has led t<> all s,, r ts of intqimlit i-s. 11 -w could such a hasil
- out dozens of varieties of goods
diff.Tm<: ui.i- l\ in material, design, quality, and cost?
cases do all the articles produced in any one works bear
the same porccnta^ 'it : it varies with the demand, the
ti<>n, advertising value, and many other circumstaoeea.
Many factories turn out Ics on which they realise no
t all. l"n less each line of goods is taken scpanr
mji. al>le, as a change in the character of the
ut put mi<;ht render the basis unworkable. To do this
tie em; t of an army of inspectors and
accountants, to u - . into the respective quantities of particular
goods, and profit was to be allowed on each. The
expense of such an undertaking \\ould have to be borne by the
industry, and the cost of production would ris<
-,.t to limit profits to a fixed ratio on cost piiseioli
exactly the same ditliculties. The int. to reduce cost is
<>vcd, and the necessary work of checking every figur
each tinn's accounts gives rise to an absolutely impossible
proposition.
It profits jirc limited, losses must be limited also. We are
just realising the parallel d Ebd in the world of labour.
87
Most firms have periods when they make nood profits, and times
when they make little tr nothing, the circumstances determining
the profit or the loss |>< in^ outside their control. The linn
< >MT the bad period by calling on its reserve from Hie
profits of better times. The workman, on the other hand,
may have to face starvation, because In- lias no reserve. The
it Y !'..r earmarking BOOM portion of the ret\irn to indnst r\ .
to j)i ii adequate UIK in pln\ n, nt fund, is now lully acknow-
ledged. Similarly, SOUK- part of w < profits would have
to be left to form an insurance fund against possible I
industry would he disorganised with every fluctuation of the
market. Tl I' pia ran teeing a minimum return to the eon I
and rail\\a\ Owners is fresh in our minds. Imagine this applied
to every industry, in a period of bad trade, and think what the
financial position of the country would be.
To sum up, in the present sta^e of economic development,
the limitation of profits ;is ;i permanent policy is impracticable.
To subject industry to such an experiment would he to endanger
our . because :
(1) It would tend to drive capital out of industry ;
(2) It would tend to remove all stimulus to efficiency and
progress :
(3) It would involve enormous liovcrnment costing and
inspection stal'i
(4) It would be impossible to find a basis which would be fair
to all.
8J-
VIKWS 01 Mil MINORITY PRESS.
nil Staff " for Labour is not a
;i, hut the i -\|M nriM < . -cent railway t
brought it into great
Press. u a
means < hi. .0,1-,
U desired l>\ th< Mi;i ,t, t , -low, and which onl
manship, the couraj: irity uf
\\ udl that th. r. i* a large eJemer
tli. i:i:^t< i class of this < to-day which defibefatety
res and intends rokc a it ; in order
rs may be shot down like dogs and forced back
v by bayonets and machine-gun /'ofy
.Id is conti.i OOt,
. to a hl-M.,i\ revohiti : ti ** to save
tth <>t the reactionaries,** there must be
inn I for practical and efiY
iinincdiati 1 . . ;t line of the
Tom (iurlch Mr.
ves that 1 1 :i Central reorganisation
I"\ni. LI ' .. h<. 1 \ possessed of courage
events and the
the working-class, and able to give
i<r and Socialist purpose to t !,. entire organised
mass of workers, is the pressing and essential need. The
<>f this Ixxly should primarily be to unr lustnml,
and co-operative m< such a manner as
Nvill ih< \\liule mobile and militant and responsive to
tin n. ( d.s and a ni of the rank and file.
t possesses organisation enough,
igh, to talx- and rt/ the
people. All that is required is the
'tight iwrageous use of its organisation, numbers, and
' U ntral Authority uhirh will act firstly
as a General Staff for all th. f. -r, ioi Lalniur. and
-hadmc Government; cuiductn. ; : t!.. proletarian
)-day and preparing for the dictator^ the workers
;tral Autlmrit tioning as a Shadow
1 :iu-nt. \\ould ;:( pare for the morrow of the Revolution
when it would issue forth as the Government by elaborating
plans, carrying out in\ irdini: the wealth and
resources of the country, the ramifications of the lii^h finance
and hitf capitalism, and BO Aiip-nir its many duties Mr.
(^uelch thinks M It would have to curl) the sanguinary vc
ance of the dark iconoclast
Mr. Tom Qnclch's \i, v, s ,, n the nev, nature and i'unction of
strikes arc interesting, particularly when taken in conjunction
with those of Mr. G bury quoted elsewhere in this
number TRIAL Pi: ACT. (sec kk Direct Action and
Democracy"). "Strikes .f the i'uti; I he wide. hir.
and distinctly ant i-capitalist -Stale strikes. The condil
of to-day determine that tiny must he BO, The decision of
any section of the n 1<> cease working immediately
causes the concentration of the whole (>f tin' nutsscd I
capitalism as e\ ' in the (Government, employers' .-.
eiations. Press, and so on, against that section. H< <
that all strikes will posses* social-revolutionary possibilities.
Tiny will assume tin proportions of civil war. They will be
fought with increasing bitterness on cither side, and. so long as
cither side is neither completely victorious nor completely
defeated, they will but prelude other and deadlier conilie
The Daily Herald (November 5th) draws "the inevitable
parallel" between our own railway strike and the great
miners' strike in America, displaying Machiavellian skill and
ingenuity in keeping the balance between the strik
industrial weapon and as an instrument in the political sell.
of the Direct Actionists. The miners' strike in America, v.
told, " is a strike for better wages and conditions. The
is a purely trade union one. Nevertheless, it is described by
those having authority as a 'war' against the community,
as an ' anarchist conspiracy. 5 . . . En a capitalist community
it must always be so. Capitalism will always grind the
workers to the striking point. The workers strike in
defence. The Government then describes the strike]
anarchist conspirators against the State. This description
should, of course, be applied to the capitalist emplM\. pg. Hut
the Governm- nt represents and is kept in power by, not the
community, but the capitalist employers. , . And the
conflict is, and must always be. between Labour and
Capitalism."
In an article contributed to the Worker (October l.sth), Mr.
\V. MeLaine (teacher at the Labour College, (
good example of the logic and ethics of the type of argument
90
him and Ins ! i: >w- demagogues .
wers to adopt their doubtful pnldsa
1111 no hostilty
wards those who remainrd at work
ke. Mr. Me La tidiflTM in the
ug appareir ithamcd, or
at any rate embarrassed, that necessity should comf>
universal i ootrary
. in the op, n, h- ingeniously contrives to make tbe
14 master-class " resj his sbor During
tells u,. the Q adopted every device
Again, people . trikes " h.
m are always being
invited ti h.i? eaeh other in 4 the other
class \
s if caught shot. The workers are at war.
is armed to the teeth, and is prepared to thoot
n urn) M r ,.f \\orkers MO encourage the others,*
own ranks cannot be tolerated. I 'hem
be asked t .. j >m up and give proof of their good far h If
mini:, then they must be prevented
other occa-si are
i % it so long as they are the only
hut it' t .s are to come our way as a
t of their dirty work the posit i ianged."
As tunteen," th,- -middle class loafers who
1 to try th ir hand at working, our main
cla*$ issue, without
>!inu r rery much about the individual members of any
class; hut where these men are known and can be gat at by tbe
pars- -pkccprrs, caterers, pul
Mild he
work it, hut th.-ir di H ^e have
al *pcac(.' let us spend time a . M ht in per-
tug and impro\ r weapons so that we may hare
<ady wh y are rcqui: . The dan wa
a hi* . In %v.. luty of ooest^i
to oppose it. Wh* icmies are made
ir masters we may think otherwise, but when our
masters are our open enemies we can learn the lessons
N'o forgiveness, th no letting bygooes
be bygones. No forgetful nest."
u Mellor. /> ild (October 81st), gives an account
91
in an interview with Mr. Tom Mann mi the occasion of his
appointment as (iencral Secretary to the Amalgamated
Society of Enjji with its 35,000 members and its trc-
odom rcspoiisibiliti In reply to a query as to what
end he thought the new amalgamation in the engineering
industry should he turned. Mr. Mann is reported to have said:
ic control of industry. I have stood in the past, and 1
stand n the linking up of the unions in the industry
to which I belong so that they may acquire more and m>n-
control, and ultimately run the industry for the benefit of the
community."
The relation of OftUM and effect in production and uncmpl
incut continues to be misunderstood or wilfully niisintcrpi
by the M socialist H propagandists. Mr. Tom Mann per
in feeding the belief that low production is a cure for, and not
a cause of, unemployment. In the interview already quoted,
he says: my policy of unemployment.
I believe the hours worked throughout an industry should
bear some relationship to the amount of unemployment in that
industry. There should be a maximum number of hours,
under all circumstances, and this maximum should be reduced
in proportion to the percentage of unemployment in the
market." On the other hand, " all the war wages or per-
t-fit ages given throughout the last five years must be consoli-
dated, and must form the new standard rate . . . our minimum
demand must be that nothing that has been gained during tin-
war shall be lost now that peace is supposed to have corn
Mr. William Stewart, a well-known I.L.P. propagandist
in Scotland, writing in Forward (October 25th), contends that
if production ought to be increased an idea which he ridicules
-" all the highbrows who never produce anything (and who)
agree that what is wanted is more production should set the
large numbers of unemployed to work." But, it is inferred, the
whole thing is a trap to re-enslave the workers " Do you
think they (the unemployed workers) are going to wait until
you are pleased to grant them a slave standard of life in return
for their increased production ? . . . If it is your policy, as in
years gone by, to create a great unemployment crisis, and thus
force down wages, then, beware the results ! You will have
tried that once too often. But at least be honest with your-
d with the people. Stop talking about more produc-
tion to p.-ople who have no work to do. Irony can be car
too far."
92
AN INDUSTRIAL CREED.*
I m:i.i!.\ !. rests of Capital and
nil ; and that neither can attain the fullest
it the expense of the ot
with tli
irfx.se ,,! industry is a much to
;ince social well-being as material prof. that, in the
"u-j. -.-... 'crests of the C
be considered, the well-tx
Management recognised and Capital
I 1 > K 1 1 1 N tan and every woman has a right to
r wage, to reasonable hours of work
mi i. r i is, to a decent horn opportunity
worship and to love, as well as to toil.
'.ility rests ii
Government an.! see t hat these
niities prevail.
M Vi and efficiency.
ind, should be encouraged and rewarded, and
and res' production
In- discountenanced*
I i:i-:i.ii:\ > .d Harmony u
essen i < ist rial Pro
I 1 Bringing about
industrial haimonj is adequate reprrsrntatioo
he parties eonecrned, each operating in *pcctive
spheres to the general advantage of the whole, rather than to
the i henetit of an> OOC M i ^ Labour U not
al, Capital has no right to coerce
Labour. ling to exploit the
I 111. 1. 11. \ ; the application of right principles will
prodi
are anim f fair play will frukful eo-operatiosi
take the place >f d stiuetive e.mtl;
I : that man r.
ho so co-operates in the organisation of
to afford to the largest inimlx-r the greatest opportunity of
:i:id the -nj..vn llOSC bencflU which
wraith of,
* Adapted from Itipnit***** <n I*+u*y. by Joha D. BoeteMrr. Jar.
M
FOOD FOR THOUGHT.
an first had a mind t> observe natural obj< -els of simple
form, Mich as lichens and crystals, at closer quarters than the
naked eye could achieve, he found that a magnifying glass of
power shows (1 him all that hr wanted to see. !>ut when he
aspired to examine mOTC minnte organisations, sneh as the
amoeba or the sin ptOOOCCUS, he had to invent the D -pc :
wlu-; -tars within visual range he
contrived tli- >pe, and so the conquest of nati
on. one mechanical aid after another being harnessed to the
e, hand and ear, until the capacity of these instrn-
nients has been enlarged beyond anything that the most
ambitious scientist of a past generation could have believed
possible.
Unfortunately those adventitious aids have QOfflfl to the help
of only the cruder organs of the human machine and the
master-organ, the brain has still to make shift with its native
equipment. As, year by year, our social and industrial problems
are multiplied as, month by month, their complexity is
' ased the need for some new sense which would enable us
to grasp greater conceptions, to think more clearly and to
a deeper knowledge of what is essential grows ever more
insistent.
We are aware that any talk of grey matter, brain waves and
the like is suspiciously remini-cent of a certain type of literature
'i leads up to an advertisement of the little grey b(
but Pclmanism is not our theme, nor for the moment ar<
< -rned with the mental development of that infant prodigy,
Colonel M alone, M.P. On the contrary we are quite in earnest
and foresee a time coming when t he human intellect, in t he j,
will positively be incapable of grappling with the vast com-
plexities of the problems which will confront us as a people.
Not long ago it was p< ^iM- for the average person to be
moderately well-informed on the most urgent questions of the
day, to the extent of being able to co-ordinate a sufficient
number of cardinal facts for the practical purpose of arriving
at a considered judgment on any subject that concerned us at
all intimately. This is no longer the case. We have lost our
94
bear ^sed our landmark* in the tofi of
i e are too many unknown factor*. We grow
*' * " dist
I wrong, betwc I and f>c. We are bewildered.
Dovl Ixxige will eomr ifsUtarx-r *ith
! stimul
a and s noment any
assistance to br it quarter is of a wwhat
spc< character, and can hardly be relied upon with any
ievcloprocnU, therefore,
we have li- l> >t we can with what luu already been
hsafcd to us an<l t IMP presses.
Thest .< realms of known and
as to v resting enough in
.mil as food t, are about as
to a man who had
i isiness is to swim, and we, alas, are
all i j.liLrl't. DouMlrss im; tnethods of
ill do something for future generations, but for
present In lp in <>nr tnn ih!.- there seems little hope of
him: l)--tttT than a mak
* * *
K thrrv any lif- !>< It \\itlnn ur reach? Will
serve us ? For a space, per hap .it the cost of
to con \\ Man that .urt, w
face our task \\ it i and get down t
>t th. im !i are carrying us out of our
sustained effort to resist the tendent)
On th< one ! .1: :. we can eschew indolence, banish
isy, abK rig, cease from i^ tnffigging, and
sacrifiee < arest predilections wh< binder our
On tin- othrr hand, we can,
and all. ur business to cont
effort or money -to the common weal
Many will say that a man's first duty is to mind his own
ness, an by so doing his quota is discharged. Tint
is a comfortable doctrine that may have served moderately
well in tin- past, but at a crisis like tin- present it falls short of
tin- minimum requirements <>f the situation. When tin-
Military Service Act cm > operation some men had the
impertinence to ask t he 1 1 -ibuna! -npt ion on 1 1 1 hat
their private fmaneial interests \\..uld suffer if they left home
and took their place in the trenches, and a feu \\ent so far as to
surest, in extenuation of their plea for substituted service,
that it was n<t to the nati'-nal advantage that the State should
forego the income tax that would accrue to the I. r if
they were allowed to remain undisturbed at the more cong
task of money-making. The smug complacency of such men
ived a rude shock at the hands of public opinion and
richly did they < the rebuff: but history repeats itself
old prejudices in favour <>f the primroM- path persist, and too
many of us feel that we are entitled to a holiday.
Yet the present is no time for the slackening of effort.
!y is in the throes of a great emergency, the very founda-
of civilisation arc thr< they have not been for
many generations. Poverty and unemployment can only be
at bay, the forces of disorder can only be controlled, if all
patriotic citizens co-operate intelligently in the task of hus-
banding the national resources, resisting the discordant elements,
and stabilising the fabric of constitutional Government.
The difficulty is to know where to begin. The majority of
people are willing enough to play their part if they are told
what to do and given a definite lead, but in the main they are
diffident because uninstnicted, and so take refuge behind the
easy-going assumption that everything will come right of its
own accord. A multitude of com: solicit the attention
of all and sundry, and this only adds to the prevailing un-
certainty. The conclusion of the whole matter, however, is
simple. Truth is the one solvent of all the difliculties that
beset us, and knowledge of the truth can be acquired only by
thinking t he matter out for oneself. I Jut thought must be based
oji facts, not on conjecture. It is clearly the business of the
Government to lead the way by giving the facts generously and
accurately. And it is the bounden duty of every good citizen,
according to his ability and opportunity, to assimilate the truth
for his own guidance and^to spread it for the edification of others.
06
No. XXVIII
DECEMBER
MCM\
" I his is a time for high taxation, rigid econ
and intensive production "
rling't Jon-
INDUSTRIAL
PEACE
CONTENTS
The Achievements of Organised Labour
Practical Economics VIII.
Taxation of Capital I.
Economy and Unemployment
The Majority Principle
Some Aspects of Nationalisation I.
The Catholic Social Guild
Views of the Minority Press
Food for Thought
INDUSTRIAL PEACE
THE ACHIEVEMENTS OF ORGANISED
LABOUR.
ONE of the convictions most deeply-seated in the subconscious
mind of Labour is the belief that no improvement in the lot of
_ f man ever comes about save on his own initiative
and through the agency of those organisations which champion
his cause and fight his battles.
There is little enthusiasm for co-operation amongst English-
men when the object aimed at is the cheapening of commodities
or the accomplishment of some enterprise that offers a reward
at the price of joint effort. Ask the inhabitants of a village to
combine in running a poultry club and you will get a fine
collection of excuses. Try and induce half-a-dozen neighbouring
smallholders to carry out a drainage scheme that will improve
their farming prospects, and you will learn something about the
penile art of obstruction. Endeavour to persuade the dwellers in
a tenement house to agitate in common for the abatement of
some admitted nuisance, and you will wish that you had never
made the attempt. And so it is, not only in one locality, or
amongst this or that class of people, but, seemingly, as a general
rule which decrees that those who wish to abstain from co-
operation always outnumber those who wish to adhere.
The pioneers of Trade Unionism had an uphill task ; a hand-
ful of enthusiasts is always to be found, but it requires more than
a talent for proselytising, more than a genius for hard work, to
convert a minority into a majority ; and Trade Unionism would
never have become the power in the land that it is to-day had
it not been for the shortsighted contrariness of those employers
who consolidated the movement by attempting to suppress it,
and who justified its existence by acting unfairly towards those
who could not invoke its help.
There is said to be an exception to every rule, and in tins
matter of the Englishman's inherent distaste for joint action wo
find disinclination turned into zeal, lethargy translated into
vigour, whenever the conviction that the strong are oppre^
the weak takes hold of our people. It is the English habit to
take the side of the under dog, and when that sort of sentiment
coincides with the instinct for self-preservation, the latent
faculty for resistence is galvanised into sudden and strenuous
activity. This was the force which quickened the first develop-
merit <>f Tra.l-- Unionism, and this it the tradition that keeps it
Hut tunes change, and though human institutions are eo*
lergotng metamorphosis, the change fe apt to be
more gradual and we fall Miind thr tunes IM-CAUM- thr M-UM- ..f
..i.rancc is more tenacious than the MUM of **"*r*1-rt
if vivid. New factors have coroc into operation, the right of
to coerce the many is tolerated no longer, the weak
have become strong, and the nation as a whole insists ttpon
t s say in matters upon which it was once content to
N s- lesson has to be learnt, and it has
>gniscd that, although t he major
' ascendancy of . crtheJeso,
its rights, and are cnhtk-1. as i mi initials, to as
ation as those who belong to the more numero
.Mimiunitv. I vords, we have begun to reattat thai
II ordered State must be based on mutualism and for-
bearance, not on antagonism and dominance. So long a*
organised Labour routines itself to withstanding exploitation H
>nns a notable public service; hut <lmrtl\ it presumes to
usurp the functions of Parlianu nt it threatens to bfgome a
i ml danger.
The work ised Labour set out to accomplish i%
already more than hall md the strike, which was once
ntilatn i tatc grievances, is no losjtjsr
m. lisp, usable. That weapon has served its warlike purpose.
and now ought to be relegated to a museum for antiques, tike
Mil 1 1 1 ilnnsrn and catapults. The ballot-box and the
uitrlliir, -ntly and comprehensively put to the
licked by \v ( 11 iiit'onnefl put in be trusted to
Labour everything that it has a right to demand, every-
i.l ust ry can be forced to give. The prnfrsainsul
agitator, brought up m the ..1.1 school and accustomed to
n the strike as the one resort both in attack and in
uill not readily hring himself to learn new tricks; but
ike other read must not be allowed to lock the
Is of progress, and public opinion must put an end to his
mischievous activities.
Thr i 1 vements of organised Labour in the past have beeo
rkable. and there is every reason to expect that they will
be even greater in the future. But there is a danger that
exaggeration of bygone successes and misinterpretation of the
h made those achievements possible may hamper
ress. It is important, therefore, that
abuse its mind of the deep-seated conviction
to in the opening sent cue.- ,.f this article. For. in reality, it is
a cardinal error to attribute the general advance in t IK position
of labour to the efficiency of tin strike and a mistake to
u$ive credit for the improved standard of living to t In-
activities of Trade Unionism.
! have, no doubt, been raised by collect i\e
bargaining; and it must be admitted that the prineipl
collective bargaining would not have been recognised had it
not been for the argument of the big stick : but real wages can
be advanced only when increased production has provided a
sufficiency of commodities. The factor which has nude the
largest contribution to the higher standard of living which now
prevails is the general improvement that has taken place in
machinery, organisation and transport. If organised Labour
had had its own way, the introduction of modern machinery
would have been vetoed, and without modern machinery
:n markets eiuld neither have been captured nor retained.
and there could have been no substantial advance in real wages.
Industry cannot stand still. If it docs not pr< it is
(juiekly overtaken and passed by foreign rivals, and stagnation
soon leads to retrogression. If organised Labour confines its
attention to forcing up money wages by frequent stoppag-
work, and refuses to co-operate in bringing about progressive
increases of production, it will only succeed in losing the sub-
stance for the shadow and penalise itself by limiting the potential
wealth of the country. It is not always easy to take long views,
but the general principles must be recognised and insisted upon
viz., that production is the necessary precursor of distribution,
and that the more there is to divide the larger will be the
individual shares. Organised Labour is now strong enough to
ensure that it gets an increasing share of increased production.
and this it can best attain, not by creating a maximum of
friction, not by squandering its energies in pursuing that will-o'-
the-wisp, the class war, not by following blind leaders who cannot
wean themselves from traditional methods of obstruction ;
but by educating itself to understand the wider problems of
industry and to take full advantage of the brilliant opportunities
which fortune has placed within its reach.
100
PRACTICAL ECONOMICS-VI1I.
Value and Price.
IT would scera, prima fads, that
wan the main problem of the social economy ; that if we could
successfully organise the division of labour so that all effort
of some useful service to the community, the
44 SOomI n. Ml.- ,,f th. umxer
f,i( \\Muld. Kut tin al.ihty to direct sll effort in a vast
and e.,mple\ society towards socially and economically useful
ends is contingent upon the use to whieh tin- effort is put
Kff<rt becomes a service <M 1) "In n it bcackmged. The* spinner,
how< \ ' r industrious, must starve if no one consents to use his
yarn anil \rhange services adapted to his pen*>nal
.in<i not \<: \ organised com n,
it is possd.lr, and not altogether inconvci > barter one
ice for another, an. I t. allow the needs and desires of the
to thr particular bargain to drtrrmine tin- relative
values of tin- two things. In a modern State harter heroines
sihl, The n value of all exchangeable things
must s. MIH how be determined ami expressed in terms common
to all. A pound of 1> uorth a pound .>t tea, or five
founds nf sugar, or three quarts of milk, and so on. It would
be highly inconvenient to calculate the exa< t \ alur of a pound
of hutter in t. rms f thr many commodities which thr 1
hant miLrlit wish to have in exchange for Ins Imtter. The
simpli r plan is to express tin < \rhange value of all things in
terms ..t .me commodity which is universally acceptable.
Money is used to Measure Value*
This universally acceptable medium
we speak the \alue of a commodity, but o
. u 1 1 1 r 1 1 i s 1 1 s exchange value in terms of money. Obviously
s no real part of a nation's wealth : it plays thr part
untrrs. indicating t nt to which we are individually
entitled to claim goods frm the community. Periodically we
our claims and hand the counters back to those who
\ the deht. M ;-..m this point of view, is the least
essential part of production and distrihm it t he considera-
\\hirh determinr the relative values of different services
obviously of first importance in coir lx>th what
shall be produced and h,.w it shall be divided. And because
all value is measured in terms of money the mediun
.mire itself evrts a powerful influence ry aspect of
the national ht\. While it is true that it facilitates the division
101
of labour and makes possible production on a large scale, it is
equally true that the characteristic modern problems of unem-
ployment and over-production, foreign markets and tariffs could
hardh he imagined apart from our system of exchange.
What Determines Value.
The price of a commodity or wrvke is its exchange value
measured in terms of money; price denotes the rate at which
_TS will exchange. A theory of value is an explanation
<>f these rates. There must be some definite reason why leather
boots cost more than \\mdcn clo^s \\ hv wool is more expensive
than cotton and why a pound of butter is worth two and a half
pounds of margarine. If we consider only the market price of
goods at a given time, we should say that price was determined
by the relation between the amount brought to the market
and the demand for it. At a given price a given quantity will
be sold. Lower the price and more will be sold. Raise it and
there will he fewer purchasers, or their purchases will be smaller.
Thus, it there is only a small quantity of a commodity, and a
big demand, price will be high. Conversely, if then- is an
unlimited supply, the price will be low however great the
demand. Price, then, at a given moment, appears to be deter-
mined by the relations of supply and demand. But if we con-
sider the question over a longer period, it becomes evident
that while a fruit grower may one year dispose of his apples
at a penny a pound rather than have them left on his hands,
although his expenses of production were a penny farthing a
pound, he cannot continue trade on those lines indefinitely.
If the market price for apples continues year after year at a
penny a pound, the grower who finds that it cost him a penny
farthing a pound to bring them to market will cease growing
apples and turn to some other means of livelihood. In other
words, the price of goods in the long run must be great enough
to cover the cost of production. Further, while the relation
between supply and demand at a given time influences the price
of a commodity, the price in its turn influences supply and
demand. If the price is high, newcomers are tempted to the
industry ; more of the product is put on the market. But the
larger quantity will not be sold at the high price. Demand at
that price was already fully satisfied. At a lower price there will
be a larger demand and the new supply will be absorbed.
Roughly, it is true to say that price is determined by the inter-
action of the forces of supply and demand and of cost of pro-
duction all of which are variable factors. And price in its
turn influences demand and supply.
102
Influence of Price oo Nature of Goods Produced
I'nd'-r perfectly free comrx -titi..n -i.e., supposing that there
ices at work to hamper or limit the action of
uid demand an* i th< .st .1 production we could assume
the above theory of value that price is a fair indicator
direction in \vhn-h the nation should apply iU
. u< in. \. the best satisfaction of it* wants and of the
ion of the nation's aggregate of goods and services among
' who have individually < the store.
us never obtain : competition is never free
and a \an t\
Chief amongst these is the modem use of raon<
What Determines the Value of Money ?
The prosp< a country and of tin- individuals in the
depends on th. abundance of the things to be
changed \\\\\\ ther countries or among the individual members
! the community. '1 which will be paid for
goods < -nply rxpivssrd, the number of counters
h will IM used in effecting the exchange depends on thr
total ii'iniUer of counters bears to the total
me of goods exchanged. If you have a thousand counters
\\itii to effect the exchange of a thousand commod
of equal value, y< MI \\ill use OH6 OOtmter for e*Gh* If you double
rs you will use two in each transaction. Double
juantity of commodities and you will only be able to use
>r each exchange effected. K \ pressed in its simplest
tin valur of money varies inversely with its quantity I*
have a lot of money and few goods, prices are high the
value of money (i.e., its purchasing power, or its exchange value
measured in goods) is low. If you have little money and an
K lance of goods, prices are low and the value of mon<
Hut because money represents to the individual the mea-
t his ability to enjoy the goods and services of the count ry.
.is come to view the acquisition of money itself as the goal of
:!iil>itmn. Perhaps the gravest anti-social error that arises
here is the false inference that because much money brings
> one, the possession of much money must bring
all. It is observed that the artisan lives very
fortably on five pounds a week, and forthwith assumed that
MI give the casual labourer five pounds a week he, too, can
in the same comfort. It is never realised that if you pay
\ one at the rate of 10 a week to-morrow the sum total of
effort in the country will be the same as it is to-day, and that
11 not yet provide for all even the modest comforts
yed by the artisan.
(To be continued.)
TAXATION OF CAPITAL I.
THE writer holds the view that a levy on \\< -alt h lor the purpose
of paying off a substantial proportion of the war debt is IK t
merely desirable, but also, in tin- circumstances which may pre-
vail in the near future, inevitable. It is not, however, his
purpose in these artiel.-s to press that view, but rather to state
tin issues in as impartial a manner as he can, in order to show
where, and why, differences of opinion emerge. Nor does he-
wish to deny that, while a levy might be desirable if it u< im-
practicable, the practicability of the scheme is a matter upon
which only t he Treasury can ultimately decide ; but if a measure
of this character, which is both equitable and practicable, cannot
be devised, it follows that the duty of the Government is to
endeavour to prevent, as far as possible, the creation of those
financial conditions which would seem to render such a levy
unavoidable. The problem is as urgent as any, and more diffi-
cult than most of those which now confront the nation. No one
who really faces its di faculties, and is fully aware of its com-
plexities and of the issues which it raises, dogmatises. There
are objections which may be urged against any scheme which
can be devised to enable the State to fulfil its obligations to
creditors. At the same time it is necessary that the Government .
having measured these difficulties, should act boldly and firmly.
Worse than any comprehensive and definite measure is the
absence of any such measure ; opportunism or vacillation in
Una nee is the enemy most to be feared.
The subject may be approached by reference first to tin
points upon which all careful advocates and critics of a levy
on wealth are in substantial agreement. In the first pla<
is dear that no manipulation of our finances will enable tin
nation as a whole to escape the economic burden of the war. We
are shouldering that burden now. The total national income of
goods and services is less, end for some years will remain
than it would have been if the war had not occurred. The
difference between the two represents that part of the total
economic burden which was not borne during the actual period of
conflict. The financial question is concerned with the distribu-
tion of that burden between different members < f the community.
Nevertheless, unwise finance may retard the economic recovery
of the nation, and therefore add to the material cost which
the community as a whole will be called upon to bear. And
104
,t tli.- di ( ussion of equity should not be restricted
tu the immediate effects . thedist
financial I Uials or groups.
' asure should not be discussed in complete isola-
tion. hut prUk : rerice to those measures (for exaii
restrietion ..r |,,, t*) which were : >coes*ary during
war or may be necessary t t he trans
days of peace we wanted mu< h ink in
<hs< u suing the equity of a small rise or fall >mc tax,
or tli i. .-in-l were fre< j reminded that we should
ate attention upon one element system, but
stem as a who]. , we should now regard
icial measures necessary to liquidate the debt, not as
standing !.\ themselves, but rather as complement a i - gral
iU economic poh ing and after the war, some
parts of which are necessary to fill gaps left, <>r r- move defects
t ed, by other parts.
This leads tot second point of agree-
ment namely, that a tax on war profits differs essentially from
a 1< h takes no account of the mann< r in which that
wealth was acqum d. 1 and as a result of the war a
large number of people amassed < .ihlc fortunes which were
not justified " in equity," and it is h 1<1 th.it these should be
tied hx th. -stat. . lu( -allowance being made for special
savings from incomes not abnormally increased during war
and fr increases due to advancement in the normal course of
ts, Some who advocate such appropriation by the State
t to a further levy on wealth in general: some, again,
regard the former as impracticable, and pin their faith to the
lattt i :>rmer should precede the la
hut that both should be imposed. It is hk some of the
third group mn -ur a capital l \ \ which \\ill
diff Ijctween different fortunes according to the manner
of their acquisition as u < II :is t h. ir amount. In any discussion
s of a lev\ on wealth the two measur M be
carefully distinguished. We are concerned mainly with a
wealth determined ly amount rather than origin.
The third sta ( which will arouse no controversy is
at tin war debt should be paid off as soon
as possible. The bulk was incunv.i during a period of abnor-
ma!l\ high prices; in other words, the actual services rendered
to the liovermnent. judged by pre-war standards, were far leaf
the amounts involved would appear to imply. Services
expensive m terms of m cy was cheap in terms of
ee. If the reduction m the \alue of gold is to remain per-
105
manent that bl -.ices are t<> remain expensive no serious
injin d be caused to taxpayer! by spreading repayment
a long period of years. lint in :eneral fall, and
monc\ thus beOO) -re valuable there \\ill In- a proportionate
increase in the real burden of tl and Hit annual int
payments which it Involve*, It -end-ally a-
liortagcof good- >lace to plen4y there will
iees in general, and a Aiding reduction,
if imt the disappearance, of excess profits, though nut necessarily
any contraction in tin- \olmne uf the currency. Hut the Cur-
i ommittee reported in favour uf a return tu the
a sure which \\ould probably, if not inevitably,
I shrinkage of < y and a consequent further
onate fall in general If it be assumed that the
process is spread over a period of > ars say fifteen tin-
burden of the war debt will he enormously ;it the end of
period than it is at present .
; he ability of the nation to bear the financial bind, n
will be substantially diminished by th- deflation of eurn
goriea (the BOUTt -.-Jiieh are prices) will
benv ; in lower t( ims : the national money income will be
reduced. The tax revenue will therefore suffer. The revenue
i taxation at a given rate will, indeed, be reduced more than
pioj>ortionately to the reduction of the total money income of
the nation ; for the reduction in the individual income, in a large
proportion of cases, will bring it into a category within which
rate of taxation is lower than before. A gradual but
nuoiis rise in the rate of taxation will therefore be ji-
to preserve a constant revenue during the process of deflation.
Nor can it be hoped that increased production will of itself
remedy this state of affairs. It is obvious that an increase
in production is necessary to enlarge the nation's income of
goods and services and to raise the possible standard of living for
the eommunity. But the ability to bear a financial burden is
determined by the money measure of such income ; and this
in turn depends not upon the mass of goods and services but
upon the volume of currency in active circulation. Th< money
income (and t IKK fore the taxable capacity) of the nation was
increased during the war, when the real income was reduced.
The money income of Russia at the present time must be enor-
mously greater than ever in the past, but the real income is
probably far less than it has been for many years.
The distinction between money and real income is of the
utmost significance. Those who regard a substantial levy on
capital as inevitable lay ipon this distinction, and argue
106
that i lemma. It may either retain the
prcs< inflated currency, inflated prices (lower than
present prices when plenty leads to the disappearance of excess
ir above pre-war prices) and inflated incomes, thus
securing a tax to meet current expenses
toget h an adequate sinking fund may deflate the
and face the consequences. It it adopts the first
1 may experience considerable di!licult> m >
idon will certainly lose its pre-eminence
in the international money market. Moreover, in spite <
wishes, it may be dn\< n m the end to the second altern .
thr.ni.rh si,,-, r torn- , istances, determined by the policies
,! industrial rivals and the danger of a severe ftp^n*** 1
I ' voluntarily adopts the second alternative, the
inevitable const-; onresponding fall in prices and
iicomes will be a fall in tax revenue a need for
tional ta Hut there is a limit to the taxable capacity
"i" ti hi.il income, an<i it' t h is is reached before the neces-
sary revenue is obtained a It- \ i pital becomes inevitable I
may th< > more severe than it would be now, before th<
process of deflation has commenced, and :i *'// lx- so if share
.il plus the \alucof real property, houses, etc., are of greater
!i secured sti-
lt \M II be generally agreed that there is a him taxable
capa 'hat individual Ahirh is the result of d
personal effort. Nor is this limit so far distant as is common 1\
si d. It an income of 100 per annum is taxed at the rate
ay, 5 per cent, and an ^200 at the rate of, say,
6 per C*M upon the second 100 of the larger income
it. A man earning 1,000 per annum is already
taxed at the rate of approximately 50 per cent, upon the last
100, and is therefore, strongly aged from further effort
which niiLrht add another 100 to his income. Industrial
"<>r! e to be paid time and a quarter or more for overtime
and \veek-endwork; people in receipt of relatively lar-j' incomes
are paid a 1* t rate for additional work of this character.
ational int. r. ->t that the strain upon human nature
should not prove too great. The taxation of earned incomes
beyond a certain limit would seriously retard the economic
recovery of the nation.
(To tx continued.)
107
ECONOMY AND UNEMPLOYMENT.
ECONOMY is a word more widely used than understood. To
acme the word suggests a policy >r saving every possible penny,
of going without all save the bare >i lit'.-, Others
think it implies renunciation of all the little luxuries and
pleasures that sweeten an otherwise dull routine. Others. ;.
think of it as appl\ in.i: mainly to expenditure outside their o\vn
particular needs they economise by reducing the expenditure
of othci^. or their own expenditure on others. Faced \\ith an
adverse balance sheet, they look around to see where ejq
can be cut down.
This is exactly what the Government did when the Prime
Minister called so emphatically tor economy within the State.
And it is (juite a good beginning ; but it is only a beginning it
is only the less important half of what true economy means.
Economy is not saving, it is not cutting down expenditure.
To economise is to make the hest possible use of all one's
resources.
discontinuation of the unemployment allowance can
only be justified as an economic measure in so far as it conforms
to this latter idea. If the father of a family found himself
unable to make both ends meet, we should not compliment him
on his knowledge of the art of economy if he reduced his
expenditure by cutting off the maintenance of the most helpless
of his children. The case for cutting off the " dole," as
presented by many of the speakers in the debate in the House,
is, prima facie, analagous. The close inter-dependence of the
members of such a State as our own has been again strongly
brought home to us by the experience of the war. During that
period men worked where and when they were called for. It
is true that there was no industrial conscription, but men, more
or less of necessity, shifted their occupations to conform to the
needs of the time. There was work for all because the f<
of the Empire called for more and more support. All Pr
and clothed. All worked, and there was plenty for all. This
state of things could not have continued ; it was, indeed, only
possible because we had accumulated much wealth in former
years. But one irrefutable fact emerged there was no unem-
ployment. Unemployment was seen clearly as the effect of a
mal-adjustment of the forces of supply and demand ; as a
problem of any magnitude it has nothing to do with the vices
106
and virtues of th-- individual. The worker it part of the hug?
social and industrial machine; when the whole tiling U
mij smooth' last worker is calk* If any parts
, at.,1 beii tl,,-n throun nil, and he CO*** top kim*tf.
Those at road fact*. The unemployed arc a just charge
the nation. You cannot economise by disowning them.
tie first place, as Sir Edward Carson pointed out, you are
.by creating bad blood which may cost you dearly at a
later date, and, in the second place, you are probably destr<
more wealth than you can save by such an expedient you are
enffchlmtf the physique of this and of the coming gen era ti
Lord Hugh Cecil, >\h> made the only reasoned speech in
ice of the Government proposal, took the narrow view.
With him there was only room i i QM "'-a reduction of
and he concluded his plea, reasoned entirely on
those lines, by expressing the oOAl iction that it th< II -use were
to hamper the Govern nun t in thm effort to reduce expend r
far greater harm would be done than u<>ul.i i. ,nlt from a
ie reductioi' inemploxincnt >enefit. But, as we
have said already, reduction of c\p ndittm is not economy. It
be, and often is, -.. incident with extravagance and waste.
test b\ tin- unemployment allowance sh
stand <>r fall is nt its l\ i-us or apparent effect on the national
hut rather \ tin- money so dishnrsed is being
well spent by the nation as a whole. Whether, that is to say,
it can be i:ml} regarded as capital we are sinking in a labour
reserve, \\hich \\ill mote than re-pay t he outlay by its power to
increase the flow of wealth within tin when the
roach: s once more able to absrl> its effort, or whether
such a <iistril>iition of wealth is producing idleness and
spirit of paupcri ngst a mass of peopl< \\h<* turn a deaf
ear to the insistent calls of employers "ho are ready and
waiting for them.
Mr. Mac(|uist( n and Mr. G. H< n\siek t>,k the \ u-u that tin-
allowance was uneconomic hccausc there is plenty of work
man and woman who cares to have it. Therefore, from
the side of demand, there is really no unemployment in the
country. Mr. Macquisten instanced the unsatisfied demand
for domestic help, and it is, no douht, true that some of the
80,000 women involved are able to refuse the work as a result
of the allowance. But the domestic service (piestion is a very
special one. The conditions are peculiarly distasteful to the
and the absence of organisation, or any
standardisation of hours and duties, leaves the worker very
gravely at the mercy of the individual employer, who is
frequently herself hard driven and not very conscious of the
just claims of her subordinate. Small wonder that women are
iisinu the advantages conferred on them as workers by the part
they played in the war to resist any return to conditions
thoroughly distasteful, and forced on them by necessity alone.
Iff, <i. Kenwick had himself just come from the docks. \\hrre.
he stated, there \\as an unsatisfied demand for men to earn
anything from 7 to 12 a week. Was he really persuaded that
tin-re were none among the 479,000 unemployed who cared to
exchange the "dole" for work and 7 a week? There is
bound to be malingering under any scheme that permits men
to Uve without working, but much stronger instances than these
must be adduced before we can justify, on such grounds, t he
withholding of the allowance in the name of economy.
Mr. Bonar Law's expressed reason for not continuing the
allowance for a few more months was not the least provocative
of the inadequate arguments brought forward. He feared that
so long as the out-of-work donation was continued there would
be increased difficulty in getting the workers to support a
general scheme of unemployment insurance. What they could
get for nothing they would not willingly subscribe for. But in
the same speech he mentioned that though Sir Robert Home
had spent endless time in trying to prepare such a scheme it
was not yet complete.
It may well be that actually the right course has been
taken, but the motives given in the House were not the right
. Consequently they did nothing to educate the public in
the ethics and economics of good government, while the
suddenness with which the action was suited to the word, the
general acceptance of the principle that the individual must be
sacrificed to the State, in peace as well as in war, and t he-
censure passed on the unemployed, as a whole, will give a s
of bitterness and helpless anger to a class which must sulln
hardship in any case, but not necessarily insult and abuse.
110
THE MAJORITY PRINCIPLE.
:E was probabl a time in the history of human
the majority >nM not have had it* way. The
greater force, and therefor* < nt*
1 on the whol How iU views. The majo
t M. m.lre.l, the poor, in a sense is always
is I But the general rule that majorities always pr<
requires to be qualified. Thus no group of men in a so<
can nuke its view pred<> ' , or even felt effectively, unless
political ma exists which it may use promptly to
roe its opinion, and unless it does use this machinery. If
machinery, or < use of it, is lacking, then the
has its chance. Minorities have always availed
thcmselvs of the chances which the passivity or the indolence
s has given t! In almost all societies
majo i are politically passive. The majority, u
in a sense has the greater force on its side, in another sense is
What its will may be is normally
to state. Often it is little more than obstinacy, or
in lit v. or ignorance in specific matters. Sometimes its
will aims %t positive accomplishment, though even then
sustained purpose or clear p< a lacking. The paradox
remains thai the majority, which, in the common view of tin-
majority priiciple, ought to rule, is more fitted by natur
a passive rdle than for active leadership, so that its rule approxi-
mates to ineria or to a power <
During tht nineteenth century the majority principle was
asserted in a great many departments of activity, and long
practice has von it an easy and unthinking acceptance. The
idea has become so l irmly rooted that its conditional
character is m (huiir- ng forgotten. Taken as an absolute
maxim, tins p meiple can be an instrument of mere obscurancy
and tynmn\ I view of the majority on any specific matter
be foolish or interested, whereas no view but the wise and
just one can really ser\e the commumt\ . An error or a wrong
KM tlu less blameworthy fr having been decided on by
piitc a large surplus of votes. The majority principle is simply
a political ii >nl\ m< nt is to promote good govern-
t, or to discourage bad government, ami. in certain respects,
to make it impossible. If this principle is examined in close
.vitii the political occasions when its use is least
objectionable, its specific limitations will become clear. And
in
because the majority principle belongs to the general theory of
govern i n -nt it . WUie, subject to other limitations of a
general kind.
Now the essential < !< -incut in Soeiet), and therefore in
Government, is tolerance. Government, an artificial invent i >n,
was made for man, and not man for government. By man is
meant all the di\< TM- < -losses and types that exist in any State.
The fundamental motto of society must be " live and let I
attempt by a gm rmm nt . therefore, to suppress free
differences, or t< impose an arbitrary uniformity, \\hether in
termsof min.'i it\ Of majority practice, is unsocial and inhumane.
There is a difference, of course, in the enforcement <>f uniformity
according to whether tin- view enforced is that of the majority
or the minority. The former may be enforced more safely ;
a minority cannot give so much trouble by resisting, It is
fairer thus, too, but only in a certain sense. If one party's
view must be suppressed, then justice would seem tc; suggest
that the minority should suffer. But this is a very equivocal
justice, since it is not really desirable that any -patty's view
or practice should be suppressed. If it is claimed tlat one or
other of two contrasted views must l>e suppressed, tfce grounds
of this claim must be scrutinised carefully.
It is worth while insisting that variety is one of the chi< f
merits of communities. The concrete ground for social variety
is the diversity of gifts and of personal bias among individuals.
There is room in the complex scheme of a nation's work for
the widest difference of type and capacity. Tlr proeess of
differentiation and specialisation is among the essentials of
progress. Yet the results of this process constitute a problem
in themselves. For differences attract attention and even stir
up jealousies and opposition, so that if they are t> emerge and
continue and without them no community can be comfortable
or quite itself it can only be by steady tolerance.
A community, therefore, must conserve its differences. But
no community can live its life without politics and parliaments,
and the actions of governments, rs involving decisions in
disputed matters, must always be suppressive of views and
practices, whether in a general sense or only in specific connec-
. Here is the perennial problem of statecraft, the standing
temptation of political parties and leaders. The parliamentary
system is a way of solving controversies. The system lias
really no absolute merits. It is only useful or needful in the
presence of urgent controversies that must be settled without
delay in one way or the other. But the system, once it gets
going, tends to attract questions to itself. The men and the
112
MS that manage politics acquire the habit of engineering
decisions in favour of this view or that. A parliament or a
government that has confidence in itself tends to ma
office. Quite a moderate degree of urgency in a controversy
\\lll serin to it I
many controversies and differences that ought to remain open
Hut it is hard to safeguard against the
amhition and t he masterfulness that pervade politic*. Cos
ment is a social function with an mh< i- u-ncy to excess.
phenomena of war have emphasised this tendency. The
atmosphere of crisis and the inflation <>t rights of dffltston to
iment of freedom and tolerance have thrown a false
glamour on j - ry and fostered exaggerated hopes
t he resolute action of parliaments. In many
quarters a desire is ma: self to bring questions un-
necessarily to the arbitrament of the vote. A vote, in reality.
is a last resort It means t have failed to find
a basis of tolerance tor their different views, and while this
re may be du t< 1 1. ustances <r tin- QMS it may also
be due to a bad an instinct of domination ., r a wrong
ry. Now a beli- u-\ is at the basis of the British
system of government. And this system the represents
system gives unequalled facilities for the taking of votes,
system makes it possible for mm misl.-d hy instincts or
theories to bring any and all <i arbitrament of
the vote, in sheer cold Mood and in defiance of the democratic
spirit. All that the majority principle really means is that if
things must come to a vote the majority must prevail. It
certainly does not mean that any question may be brought
arbitrarily to a vote in order that the majority may tyrannise.
Yet at the present time this error is uiddy current, ai
int.
The war has occasioned a great awakening in England. This
awakening has been most marked in the lower classes, in the
nt and rather passive mass that is a substantial majo:
of the nation. Th- echoc torian jubilation o
le Ting loudly in the ars of the awakening
classes. "The majority is entitled to rule." is still the ery.
And \\ho arc the majority? The masses can scarcely be.
.' it is themselves. And the 1 -nan
pic is there to bless wha ntmv the majority
scd to embrace. Vox populi vox Dei may be
viceable motto in respect of some of the fundamental moral
icts and sentiments. But the voice of Revelation is
powerful in proportion to its rarity, and to the rightness of its
113
choice < The desires and the interests of one section
of the community, both of tin in in conflict, perhaps with those
sections, are scarcely to be regard* -.1 as Revelation.
c principle of maj^rit y rule is in truth only conditionally
1. The gratuitous suppression, by vote, of a minority view
is an unqualified evil. Social justice requires that majorities
should be very scrupulous in usin<z their power. Far more
important than the actual vote is the discussion that precede, it .
Discussion, indeed, is the central and essential fcatui
representative institutions. Discussion gives the opportunity
for insisting on all those fundamental conditions of social life
\\hieh Government must respect. Prominent among these are
fair play, tolerance, good-will and ncighbourliness. And
discu^ ion is likely to gain at the expense of mere voting. After
all, counting heads is a crude way of reaching a decision. A
crude method suits the earlier stages of political development,
more developed a community is, the stronger the j> re-
sumption that the main lines of its political life have been
settled for good. It is usually about these main lines that
controversy and conflict are keenest. Once the main lines and
principles have been settled, there is less occasion for the
heroics of party warfare, or the glory and profit of being in a
majority. Henceforward the task of government becomes
one of scientific organisation and co-ordination of a people's
work and life, in so far only as the action of government is
indispensable. It is often said that war has ushered in a new
England. So it has in the pertinent sense that England has
gained a clearer sense of her political make-up, her social
instincts and aims and potentialities. This should mean that
the country is more at one than before, and, despite su:
phenomena of apathy and faction, it does mean this. The
nation may well be on the threshold of a new political era, in
which the majority principle will give place to more objective
principles of social justice.
Yet in this transition time the Nemesis of an old part-truth
broods ominously over the political scene. The majority has
become politically conscious. Part a truth and part a lie. the
majority principle flatters the fancies, the desires, the very
hates of the " majority " with the semblance of political wisdom,
and blejses and arms them with a spurious right. The position
is dangerous. The cure lies in strengthening the open spirit
of discussion and using all the avenues of information. Only
by mutual explanation and understanding of the fullest and
sincerest sort can the threatened tyranny of numbers be
averted.
114
M ASPECTS OF NATIONALISATION-I.
recent agitations in the Labour world, and, particularly,
the forthcomi ng campaign of the miners in favuu < \ 'MVuMi*-
raise once : an acute form*
the questions of the relati- he State to m : i the
tut ure. Some of us thr examination of each problem on
, .in tin- assumption that the State should not inter
IK* at all possible to secure the desired end otherwise ; and
. although we may agree that particular indu
should 1>< hr..ui;ht under public control for special reasons *
do imt appl\ t<> industries in general, we ill ourselves
individualists. In other words, the alt Socialism is
not the philosophical anarchism of u v ago, but an econo-
i i ad m 1 1 s the necessity for some degree of control
}ut at th- sainr tune emphasises the valur .M freedom of enter-
pnsr ,i\-cr a wide range of industrial arti\ r
Hut the most consistent advocates of the na
lust rirs uhirh may be regarded as tin- i m of the
structure arr thr thorough-going Collect ivists and
(.u- Id Socialists, n the present campaign represents hut
! sta^r in thr larger campaign in favour of the Socialist
State. It i s , 1 1 1 r refore, not inopport n ill attention to some
oaeimp - n (be it guild or ** bureaucra
wliirh ha\r hithrrto rrrnved scant coiisiderat .
days gone by the Socialist directed attrntxm mainly to thr
inequalities in the .list rilmt i>n of thr ^>xl things in h'r. and
justiiird thr ((>: .nisf.ini hirh he sought by refer-
ence to thr <iisti .vhirh the Socialist State would
secure. It is tun that some at tmt ion was devoted to the waste
involved in thr . and the classic example of
milk distribution \\as i'r< <{u< nt 1\- made to bear witness to the fact;
hut on thr u hole the Socialist appeared to be fairly omtrnt to
show that State organisation would not impoverish the nation
in any way.
During and since the war the need for output has grown so
urgent that it has become necessary, if progress is to be made, to
iust ify any scheme of reorganisation 1>> ntrrencetoits probable
effect upon industrial efficiency. Largely for this reason thr
I laid upon the wastefulness and inefficiency of
the pre-war industrial organisation, its inability to secure that
of product ion necessary to provide an adequate standard
116
of living for the mass of the community, and its failure to produce
that harmony between masters and men and that feeling of
goodwill and service among workers generally which arc the
necessary conditions of efficiency. It is argued that nationalisa-
ssrntial prcliminarx t<> tin- Hlicimt organisation of
production.
It has already been hinted that no one would now affirm t hat
Mm pie com petition represents the last \\ord m effective organisa-
tion. Already, in many highly standardised manufacturing
industries, individual competition has retired before the advance
of combination. Nor, in spite of manifold advantages, is the
combination movement without its dangers, from which tin-
State may be called upon to protect the community by tome
form of regulation. Hut in advocating univ< rsal nationalisat ion
as the remedy the Socialist appears to regard the State as, in the
main, consisting of that perfection of mechanical arrangement
which would secure the desired result. In other words, he
}>r< -eis, ly the result which he sets out to prove. The
State is no better than the citizens of which it is composed : it
may be worse if the organisation is such as to deny the opport u-
<>f self-expression in economic affairs.
The point is one which requires emphasis, for it is d if lieu It to
conceive a Socialist State except as a State in which M industrial
conscription " has taken the place of industrial freedom. The
assumption is generally made that equality of opportunity would
be enjoyed by all, resulting in the distribution of work according
to capacity, if not desire. Nor is it necessary to deny such a
beneficent intention on the part of the administration, which we
may assume to be democratic in spirit as well as in form. The
difficulty of translating the democratic ideal into actual practice
remains, and appears almost insuperable. This dillicult\ is
two-fold. First, those preparing for employment will need to
enter those occupations in which there are vacancies, but which
may not be those which offer the greatest attraction. Liberty
of choice will inevitably be restricted. Closely connected with
this is the fact that the present "money economy" will be
replaced by a " power economy." Promotion will be deter-
mined by the verdict of the officers immediately superior to the
candidates. Promotion will be either by seniority a system
which in practice tends, on the whole, to penalise rather than
urage initiative and enterprise or by recognised merit.
Merit would be more common than recognised merit. A younger
man might rise to a higher platform more quickly than an older
rival ; but, being dependent upon his superior for recognition of
merit, he would rarely overtake the latter. The point is one
116
h \\ill he appreciated by an ambitious University
whose t so largely in the hands of his protosor.
freedom win. -h th- e.,mp, ntive system provides may not
produce an ideal state of affair- is at least an important
factor to be placed upon the credit side of th.- system* In the
last resort- case in the worst possible terms*
skill- I . n-nneer who is dissatisfied with i md feels that he
is be* i iiused, and that i . tfh co-opera-
is) to seek a similar post in another establish
may become a grocer or a scavenger. A lecturer may
become a school-teacher or inspector, or a tobacconist. In a
ist State sue- i > a thmi; \\ould not be easy. If the State
recognisi ^ht to w /xn would almost m. \ itably
be compelled to accept th.- pnn compulsory work.
Socialism, in abolishing lust rial competition, would go a long
way towards destroying personal comp
As an illustrat the ditlieulty of establishing an ideal
alternate.- to the existing system we may take the case where
s to me<-t t he needs of a growing population
by erecting a -pcningancw min.- in a district fairly
rom the large centres of population. Sueh cases v
I! 'A uonld tin- Staff timl the requisite
All the il>I< population would be already
< mplo\<>(i, presumably und< ixiitions, in similar
mt.rprises elsewhere, and would naturally enjoy vrstc <1 human
rests. Ei tin r they would need to be attract.-.! t.. thr new
<hst! wages, as at present, or a sort of
industrial press gang would be employed to select tin-
In thr tormcr case serious wage anomalies would appear
in the course of tim< : tin- latter would be a clear case of con-
tiin ! This is but an extreme example of a difficulty which
1 always be present namely, the prcs<
y \\hile s.-eurini:. not necessarily the most rflieient ee.n
organisat i.. n. hut any form ot enduring orjja I - curtail -
>n the part of th< community as consumers is a
suhjeet which has been canvassed so frequently that it calls for
little comment. It is. ho\\< \. r, notewort 1 the two
real alternatives are rationing and " profit or charging
[ket will hear. Th. vould be unpopular : the
uer would ] for registering needs.
(To be continued.)
117
THE CATHOLIC SOCIAL GUILD.
Tin: Catholic Social Cnild i I tin many denominational
social unions in this country, and it has a vast amount in common
with these other organisations, both in aims and in m< -thods of
\\orkinu. At the same time it is not exactly paralleled by any
<ther denominati'-nal union. In its religions character, in its
insistence upon religion as the essential ba- II true s<
are and upon soeial service as a religious duty binding on
all believers, it may be compared \sith, to take an Angh
example, the Christian Social Union. But in its methods of
working, and in the character of its membership, it more
resembles the \Vork< iV Kdneational \ < lation. For the
organised units of which the Catholic Social Guild is mainly
composed are study Hubs, \vith a membership composed chiefly
of workinijmcn : ^ 111 Lancashire, miners in Durham,
engineers on the Tyne, ironworkers in Middlesbrough, rteel-
workers in ShcfliHd. and so on. The Guild has its study clubs
mainly in the great industrial centres of the North. These
clubs differ from the W.K.A. tutorial classes in one important
respect : they have no tutors. Sometimes there is a priest, or
a layman, who acts as leader of the study circle, but in the
social and economic subjects studied the leader generally knows
little, if any, more than the other members, and he does not
profess to be qualified to give tuition. This absence of tutors
has had interesting results. It has forced the study clubs to
evolve for themselves original but quite simple and effective
methods of study, a description of which may be found in the
C.S.G. Year Book for 1920, just published. The study clubs
are not merely debating circles. They are groups of self-
tcaching students following specified text-books and gaining
a scientific knowledge of such subjects as Economics, Eugenics.
Socialism and Industrial History. It is claimed that the
educational results attained by the best study clubs are equal to
t h >se obtained by the best tutorial classes of the W.E.A. This
comparison is not made with any thought of rivalry, but to give
*some idea of the results achieved by the Catholic Social Guild.
The C.S.G. started some ten years ago, impelled in their work
not by any concern for capitalistic interests, but by a genuine
regard for the maintenance of a high ethical standard in the
dealings between men of all classes. The Guild has been
untiring in proclaiming the principle of the worker's right to a
118
ig wage as formally taugi Mil in \i^
i he Condition of the Working Cloue*- the classic
statement of < .' <*n m.-i. m questums. The
ularly combated the suicidal doctrine of class-
Social Peace Based on Just , h . - motto the ( .
chose in commencing a great deve!< campaign this year.
eks to create and foster a " social sense " as opposed to
itss-consciousnes* " of the Marxians. <i " pro-
s not concern itself \\ith th-- a<i\cacy
trticulai neasures. Broadly speaking, its aim is
to propagat pies and not concrete measures of
educational. It seeks to t
ibers by scientific st t ! problems of society so that
may take an active part in practical rcforn n n^r work ; hut
it has n<> progranmx wn
ccssarily d< and hrokr
unity of th<- sti -. hut the\ (tu-ked up with remark-
able rapidity after th > he cases of men
spontaneous! study Hubs and going thn>iig ;
ks while they were in tin- trmehes. This winter there
I* a great revival and multipli< idy clubs
all c \ will havr the good wishes of all
aiuling and goodwill, for they are important
fore* >g for social stalilit\ thr- -ujii
sound social and Christian prim -iplcs. Although it interfered
ver>' mueh \\ith the study eluhs tlie war did not materially affect
xihlishniL: a --I the (iuild. (> N most successful
puhluations was A Christian Social Crusade, now in its tilth
>g a commentary upon gramme of Christian
Social Reconstruction issued by the Inter-denminational Con-
ice of Social Service Unions. h the (iuild is a
Most oft n the penny pamphlets,
<>f a solidly educational character, and have been extra-
although r ephemeral iKTficial.
Id has in- 1 with ;ii ; o account of its pubUca-
: \-\\ language is spok . it has quit.
>st cordial messages t'r>m C ardinal (;ihl><>ns
and Cardinal O'Coni iihishop of Bost
( 'atholie Social Guild has doi riant and valuable
in the- past ten years, but it is still in it> mt'aney. At the
lit a great forward movement is in progress and we
it will establish its elaim to be one of the most
potent among national moven
based on justice.
VIEWS OF THE MINORITY PRESS.
THE Call, which is the official organ of the British Socialist
Party, published <n November (>th n Special Second Annivt i
Number in coiiiinemoratinn of the Russian Socialist Republic.
This issue included articles by Lenin, Robert Williams, John
Maclean, and Mrs. Dora Montefiore. Mr. Robert Williams,
ml secretary of the Transport Workers' Federation,
who is aKo a member of the Executive of the Labour Party,
here shows hims. ]f in his true colours. The following excerpts
from his article, entitled "All Power to the Soviets." w ill
perhaps help the public to realise better the type of mind with
which they have to deal when next Mr. Robert Williams moves
into national notoriety as one of the leaders of the projected
general stri!.
When the history of the great European war comes to be
written, and when men's minds are freed from the cant and humbug
of sterile nationalism and patriotism, Lenin and Trotsky will be
the great figures produced by the world crisis. ..."
44 The attempt of Yudenitch to take Petrograd was din (ted
not by military considerations, but under instructions from his
masters, the international financiers. ..."
44 Those of us who remain loyal to the traditions of inter-
national solidarity will Jbe shortly compelled to make up our
minds whether we are going to adhere to the puerile and incom-
petent 4 Second International ' (to which the Labour Party is
affiliated) or whether we shall devote ourselves to the formation,
growth and development of the 4 Third International '
(Bolshevik)."
4 The active insurgent spirits in the British Labour Movement
are preparing to take advantage of the imminent collap
Capitalism and Landlordism ; to supersede the present House
of Commons by delegates and representatives from the mine,
the factory and the workshop, more in touch with the product i ve
classes than the Parliamentary puppets at Westminster. . . .
God speed the day when there shall be a notice l To Let ' outside
Buckingham Palace
14 Long live the Proletarian Revolution ! Long live the
efforts of Lenin and Trotsky, and all power to the
Soviets ! "
In an article entitled 44 The Pit or the Republic," in the same
issue, Mr. Tom Quelch writes : 44 Through the smoke of the
120
conflict the giant figure of Proletarian Russia looms, torn and
bleed t strong, defiant, heroic .the van to the estab-
lish the world's Socialist Rcpul at fact imposes
certain action on the workers of other countries. They mutt
choose between thr social pit --the pit <f \\a^ -slav r> uid
the Socialist Repul I we are confident that the workers
u ill not choose the pit They will follow in the wake of their
Russian comrades."
John Maclean is of the opinion that, '* American Labour is
menacing too, and will move faster than British I.ai>ur !.-<a>. -
of the lark of troublous traditions and because >f the dam up
forced by Gompers and his American Federation of Labour
the driving force everywhere is the spirit aroused
Russi Bonar Law's refusal to discuss the secret organisa-
/cn Guard (Britain's Black Guard) is evidence
f the fact that the blunderers here are beginning to tremble
at the Bolshevik spirit that has spread like wildfire since the
N.U.R. defeated the Governm. -nt -r all .italist virtues."
l >iscussing the question. 'Is Capitalism Collapsing ? "
Col/, November 18th). thr same \sntr terminates a
reasoned article, which shows some study, \\ith thr an
14 View it as I may, I cannot see the possibility of a financial
collapse automatically arising out of the contradiction
capitalist process of production. The great contradiction is
losses leading to the collapse of the system
through tin- mighty, n-soimdmu blows of a world-united Labour.
On uith thr Class War."
< Call of November 20th reproduces an appeal by the
HoNhrviks, signed by 1 -id Tclnelu-rme, to British and
American soldiers to desert. The appeal concludes: " You
have arn \\i know how to use them. Will >ou, like
slaves, use them in defence of your masters, or will you use
them to help your class to 1
r Call of November 27th has a characteristically viol
article denunciatory of the German Social Democrats. It
describes Germany as " the blackest spot in Kuropc to-day."
rman revolution has been a miscarriage." According to
the CdlL this is " a failure deeply rooted in opportunism and
fostered by the writings of such autf . e exponents of
Socialism as Kaut i : h< other Left
Party, the Communists, have also failed to offer the masses
a substantial alternative to the Socialism of Treachery instilled
in both/-
Nor do the Belgian Socialists find any t r treatment
at the hands of their B.S.P. comrades. victory of
in
Vandcrvelde is to be viewed as a victory of Belgian Capitalism
and of Allied Imperialism, whose faithful servant he remains. . . .
To plunder abroad, the workers must be pacified at home. .Urn-
is a task for such a practical go-between as Vandervelde. Open
class struggle is dangerous to capitalism ; so he sings of
social peace. To demand the undivided rule of the workers
is revolutionary, so he chants the praises of coalition govern-
ments. Coalition govern inn its .n< the lightning conductors
of tottering capitalist nations. The Social patriots may delay,
they cannot avert, the ultima! dictatorship of the proletariat."
The French Socialist Party comes in for similar denunciation
" The election has a clear moral for the French Socialists.
the complete purging of the Party of all social- patriot traitors,
secession from the Second International, militant class-struggle
against Fn-nch Imperialism and its counter-revolutionary aims,
vigorous defence and popularisation of the Russian Communist
regime and affiliation to the Third International." It is only
in Italy that the official organ <>!' the H.S.I*, finds a crumb of
comfort. "In Italy," it writes, "our comrades are reaping
the fruits of their magnificent fidelity to proletarian Inter-
national Communism, the dictatorship of the proletariat, the
complete overthrow of Capitalism this was the issue placed
before the electorate by the Party. In France the capitalist
parties made Bolshevism the issue, and the French Socialist
Party paid for its timidity and vacillation. In Italy the Com-
munism Party made Bolshevism the issue, and secured a
sweeping victory. The Third International has justified
itself. Its prestige grows. The militant workers flock to its
banners."
The Paris Populaire has recently printed a call to organised
workers to form a Red Guard in defence of revolutionary
Socialist, Syndicalist, Libertarian or Communist ideas, for the
purpose of resisting the agents of financial Capitalism.
Mr. Ramsay Macdonald writes in Forward (November 1st)
that " a Parliamentary (Labour) Party composed of * intel-
lectuals ' exclusively, would be a failure and an anachronism ;
one composed of Trade Union officials only could have a tolerated
existence . . . the greatest misfortune which could befall our
movement would be if it gained the position of commanding
Parliamentary authority, and, on account of the way in which
its candidates had been chosen, was unable to use it."
In Forward of November 22nd there is a report of a lecture
delivered by Mr. W. Mellor, the Industrial Editor of the Daily
Herald, on " Self-Government in Industry," at the Central
Halls, Glasgow. The speaker stated that the workers " must
122
i. Mild up democratic machinery capable of transplanting
industry in.m the capitalist regime." He contended that
t he shifting of economic power must begin where power rests
in the workshop. The new organisation must follow
product, not t! processes. In an industry it should be
Midi l) to stop production all over, and (9) to carry
.MI UK in. in. try after a successful attack. It was no use to
ng it to the raising of wages and the betterment
of conditions of emplovment (} t*Jfeg mn*t /V MSfett //
The democratic principle of organisation was to
direct tl.< immediate superior to be appointed by those of
whom he was in charge experts at least to be
Ownership should be vested in the community, taken by
geographical unit. Hut tin M should be run by an
industrial union. \\ithout mt< rference in the running of r
those who use the commodity. There was bound to be a
dual; i_rli n<>t necessarily a conflict of interests. Here
scheme differed fundamental! inary Socialism.
From Industrial Unionism it differed in recognising the need
the freedom of the human spirit working upon economic
litions."
The Daily Herald (December 1st) ascribes Lady Astor's
success at Plymouth to her well-known benevolence to the
poor "The Labour Movement will always have this kind of
diiliculty to fight. Th m of Health Cen lubs,
of industrial undertakings established by rich people,
must e..! 11 pel a certain admiration from the unthinking,
especially as, m the case of many of these people, it
good nature which makes them spend money in this way,
coupled with a firm helief that God made some people rich and
others poor. . . When tin rich and the poor realise that the
poor are poor because they are robbed, and robbed because
v are poor, we shall not need the charity of anybody."
Premium Bonds are the subject of a leader m the same
paper in its issue ft- iiber 24th. The Daily Herald fails
to sympathise with those who deprecate gambling in Premium
Bonds, and " would like to draw the attention of the protesters
to a fact which may have escaped ther attention the fact of
Capitalist system. . . . The whole principle of Capitalist
is to 'make* money without earning it ... The
objection to Premium Bonds is, howevc whelming. It is
an economic objection. It is the objection to finance by loan
at tuck. There is plen: alth in the country. All that
is wrong with it is its distribution."
123
FOOD FOR THOUGHT.
THE Labour Gazette for November publishes the following
extract from the rncmpl<\ m< nt Registers of the Labour
Exchanges :
November 7. Number on Register. Vacancies rntilled.
Mm . . . . 478,688 . . 28,796
Women . . . . 85,498 . . 42,884
Th< re is a significant and valuable lesson to be gained from a
comparison of the two columns <f figures. Either there is
really no work available for some 450,000 men, or the employers
throughout the country do not register their needs at the
Employment K\eh.-m:es. Many employers do. in Tact, fight
shy of the Exchanges. Their complaint is that the right sort
of man is never sent them from that quarter.
But there is a difference between the Employment Hunan
as we knew it before the war and as it now is, and the reason is
that men of an entirely different stamp are passing through the
Exchanges almost as a necessary part of the routine of demobili-
sation. Whatever may have been his experience in the past,
it is now the duty of every employer wanting labour of any
kind whatsoever (excluding, perhaps, the skilled union groups)
to register his demand at the Labour Exchange. That is the
right step for him to take in discharging his share of responsi-
bility for the unemployed. If this were conscientiously carried
out we should have moved towards some solution of the problem.
If the exact volume and nature of the demand for labour could
be compared with the total supply of unemployed labour, we
should know whether it was fair to say that no real unemploy-
m nt existed because, as Mr. G. Renwick stated in the House
of Commons, there was plenty of work for every man and woman
who wanted it . If it were found that there is actually a demand
commensurate with the supply, but of a different nature, we
should know that there is. in spite of the apparent scarcity of
labour, still a group of genuine unemployed who, nevertheless,
could be made employable if trained and adapted to meet
existing demands.
+ + +
The National Union of Dock Workers in Liverpool has just
issued a new regulation with a view to limiting the supply
124
of labour, which, it states, is in excess of demand at the docks.
I work with non-unionists and, with
dockers* sons and ex-soldiers who were dockers
re the war, all newcomers must pay a union entrance fee
of i
t*
t htnetic is never a strong point with the Daily Harold* and
wing example of propaganda by the statistical method
,
fallacy of your argument in IM- found out. We quot- from an
le " A Modern Song of the Shirt "in the Daily Herald
nber 18th:
It was a sorry l.-.\- I. where the woman who toiled got
[fence for seaming a dozen shirts. She had to pay 7jd.
which ran out before the compl- I the
nmth si The rate of pa was so low that to earn
80 shillings a week she had to make forty dozen shirt
No\\ it nine shuts used up one reel of cotton, twelve shirts
would use up one reel and a third which would cost 7$d. + 2$d.
= lOd. Hut t he woman only received 9d. per dozen. Therefore
dozen she would not make thirty shillings a week. l>ut
lose 8s. 4d.
It is a painful truth that women workers in shirt land "
have to work d-sp-rately hard to make a miserable living
lut reform will not be hastened by those twin favourites of the
Daily Herald -snjtjtrcssw rcri and ttuggrstin falxi.
\\ do not profess to be abl< t.. unravel the skein of misrepre-
sentation in which the Daily Herald has got r
'v nin. pences represent thirty shillings, it is obvious
i that the sum of niiiep-nce per dozen is a net payin
or that the poor woman could not earn thirty shillings for
sewing forty dozen shirts. If the payment is a net one, the
price of eotton does not come i -a at all, and its
inclusion vitiates the whole argument.
We understand that a special committee of the Profiteering
Committee is now sitting for the purpose of investigating the
price of sewing cotton, and we shall be better able to form a
pinion on this very t horny subject when the report of that
committee is published. Meanwhile, however, it may be
pointed out that the common assumption that the price of the
war reel has risen from 2d. to 7jd., or 275 per eent.. is a
delusion. The facts are that the 7jd. charged to-day is for a
of 400 yards as compared with that of 300 yards, which
sold in the shops before the war for 2d. The rise in the
retail price of sewing cotton during the last five years is actually
between 125 and 150 per cent. which is approximately the
in price of most commoditi< -.
At the recent annual conference of the National Sailors'
and Firemen's Union held recently, Mr. J. Havelock Wilson,
M.P., rc( remarkable ovation. This trihute f affection
paid by the seamen to their popular president is not a matter
for surprise, but the interesting question arises why is it that
one particular section of working class opinion should support
a man whose policy differs so widely from that advocated by
r popular leaders ? There cannot be any inherent difference
in the aspirations or in the interests of the merchant seamen
nnd. for example, the transport workers, yet the former will
follow Mr. Havelock WiNon and the latter Mr. Robert Williams
two men whose points of view are as wide as the poles asunder.
The probable explanation of this paradox is that human nature
pins its faith on the man rather than on the cause. If this is
so it follows that personality is more effectual than policy
and that working class opinion does not originate from amongst
the rank and file, as is often asserted, but is dictated by a
comparatively small number of individuals at the top. It
also follows that the speediest method of converting large bodies
of men to the realisation of some new point of view is to con
tratc on the mentality of their leaders, and not to waste time
in haranguing crowds.
In his message to the First National Convention of the No-
Conscription Fellowship (which opened on November 29th),
Mr. Bernard Shaw suggested that we should judge our actions
and conduct by the aid of the Kantian text " Would it be
well for the world if everyone did as I am doing ? "
But familiarity with excellent precepts does not, unfortun-
ately, guarantee the will to understand and apply them correctly.
In a speech on December 2nd on behalf of the Labour candidate
for the St. Alban's Division, Mr. Shaw gave his audience his
interpretation of the lesson to be learnt from the last railway
strike, which he regarded as a triumph of organisation. In
his view, having these organisations of railway workers, trans-
port workers, and the rest of them, meant that if Parliament
did not carry out the will of the people, they could and must
resort to direct action and take the thing in their own hands.
That was the thing before them.
126
E\ ' 1 1,.- railway strike the Daily Herald has repeatedly
canvassed its readers for subscriptions to ena> > publish
on a much larger scale than heretofore. In the issue for Decem-
ber 1st an interesting development is foreshadowed in a state-
ment purporting to define >n attitude towards
paper. A "Daily Herald Trade Union
Committee " (Messrs. Arthur II. -IK tenon, Frank Hodges, W. C.
Robinson. .1. II. Thomas, Ben Turner, Ernest Bevin) has been
icd at the request of "an informal Conference of Trade
n officials to act as a Provisional Committee to assist th<
!> // : gist of the stiit is that it is proposed
to comply with the de*i he Directors If raid
Robert \\ . i.ims and Francis Mcy
t t he Labour Movement shall make \- 1 1 y responsible,
financial!) and managerially, for the existing pap' The
Executives < arious I rged to take
;. -I., -ntui-r stork under tin- proposed wl o the extent
(00,000. The stock will be issued at five per cent, interest,
guaranteed for five years, and it is pointed out that if Trade
Union Executives representing 8,000,000 members subscribe
annuall\ for tin. < years the required sum would be reached.
A memorandum i- h rectors gives the average
!i to December 1st, 1019, as
200,595 copies, and whilst admitting tha* ran offer no
pi It -edged security, points out that "the tradr nnimi inovci
itself is the best security that can be given for th< m
Tin- tradr unions hav- it in thrir power, through the organise
of thrir vast membership, to make secure the property which
are now asked to finance. 1 '
+ +
It is worth noting that in spite of its anti-capitalist principles,
and its deep aversion to robbing the worker of his ** surplus
labour " in ordi-r t provide profits and interest, the directors
of the Daily Herald do in thrir heart of hearts recognise that
there is no enterprise without and th ven the
worker will forego the pleasure of spending unless he be rewarded
for t he abstinence his loan imposes, and for the service it renders
to the borrower.
+ +
Writing on the " False Cry of Rn - Leo Money argues
that there is nothing to be alarmed at in the " swollen state of
our national expenditure,' 1 and concludes that " the talk of
ruin is merely ludii TOUS." What arc the facts t
1*7
1. We have a debt of eight thousand millions as against
MX hundred millions before the war that is to say, every man,
woman and child in this country is in debt to the extent,
on the average, of 177, as compared \vith U3 five years ago.
2. This debt is increasing daily, and must continue to increase
until our expenditure is brought down to the level of our
me.
8. The cost of running the country in 1918 was about two
hundred millions a year. It is now calculated by the Chancellor
that when normal conditions are re-established our expenditure
will ' hundivd millions per annum.
So much for the facts. Now for Sir Leo Money's argu-
ment in support of his statement. He asks us to console
ourselves with tin reflection that we should be a great deal
worse off if the war had still been in progress and costing nine
millions a day. He calculates, therefore, that as we are saving
that amount of money every day we have no need to \\
about our finance. This line of argument is too silly for words.
Moliere, Thackeray, Dickens and many other popular writers
have ridiculed the type of mind that indulges in this form of
speculation. Young Mr. Jarndyce, for example, always counted
his little self-denials in extravagance as positive gains, and so
did Arthur Pendcnnis. But the classic example is that of the
little boy who told his mother that pins had saved thousands
of lives " through people not swallowin' 'em."
* *
A movement which merits some attention is the so-called
" Catholic Crusade " which is being organised by the Rev.
Conrad Noel, of the Established Church. Mr. Noel was, we
believe, formerly the secretary of the Church Socialist League,
and was associated for some years in that organisation with
Mr. George Lansbury. He has now " broken out " in a move-
ment which finds expression in what he describes as " Sixpenny
Sermons" which are delivered at Chandos Hall (the head-
quarters of the B.S.P.) on Tuesday evenings. On Tuesday,
December 2nd, he preached on " Why the Catholic Crusade
welcomes the Irish Republic," and on December 16th, " Why
the Catholic Crusade demands an English Revolution." This
movement inside the Established Church, in association more or
less direct with the British Bolshevik organisation, may be
followed with interest, as, unlike so many of the younger
Christian Socialist clergy, Mr. Noel is a man of marked intel-
lectual capacity and considerable political acumen.
128
No. XXIX
JANUARY
MCMXX
he fi.mul.i- rt\ are challenged.
INDUSTRIAL
PEACE
CONTENTS
Prosperity and the Grout h of Capital
The Case for I)
Look before you Leap
IV. ipital 11
Constructive Measures
Adult Education and the Labour Coll
Views of the Minority Press
Food for Thought
INDUSTRIAL PEACE
PROSPERITY AND THE GROWTH
OF CAPITAL.
"WILLIAM SHAW, sober, laborious and faithful, maintained a
wife and family on two shillings a week for forty yea
Died 1726.*' So runs the legend on a Northern tombstone.
Such biographies arc as rare as they are incomplete. They
leave us pondering many questions. Was William Slia
shepherd in the bleak moorland country in which he lived, ami
were there perchance any perquisites belonging to his trade ?
Did he pay rent for his cottage? Was he the sole hrc id-
winner of his family ? How large a family did he maintain ?
The tombstone is silent.
This man's record was thought worthy of comment ; tl.
fore we may take it that it was not typical. Yet, as we
'consider the statements of those who think that only the rich
have benefited by recent increases in wealth and the modern
organisation of industry, his brief history may send us groping
into the past that we may compare it with the present. lie
lived in the days of the fixing of maximum wages by Justices
of the Peace, and no doubt the commendation bestowed on
his life was intended as a reproof to any who might express
discontent at the rates determined " upon conference with
discreet and grave men." In 1725 the justices of the County
Palatine of Lancaster decided on a scale of maximum wages
varying from ninepence a day for an ordinary sort of husbandry
labourer in the winter, to i/3d. for a mower of hay. A master
tailor might earn as much as a shilling a day, a master work-
man with others working under him i/2d. If meat and drink
were given, the wage was reduced by fourpence, fivepence, or
sixpence a day. This last fact shows that food, of a kind, was
cheap. Yet wheat cost 42/8d. the quarter in 1725, the average
price throughout the first half of the eighteenth century being
37/7jd. We have known wheat to be cheaper than this in our
own day, indeed until after the outbreak of war it had not
been as high since 1883. Meat and dairy produce were
comparatively cheap. When population was sparse and little
of the land enclosed, numbers of cattle were allowed to
wander about large areas to find what food they might at
'30
little cost and trouble. On the other hand clothing was dear,
;iy goods now in common use were unknown, or lo<
on as supreme luxuries. Conditions were .Acuities in
way of good roads, good water supply, street-lighting,
cnt sanitation, care of the sick, belonged to the future.
Viol uc was unchecked by violent penalties. Numbers
of children were left to die m the London streets, a spectacle
oh so horrified John Corain that he established a hotf .
for foundlings*
ur y.umi, writing in the third quarter of the eighteenth
century, paints a less unplcasin re. With a fall in the
c of many impo Uuling wheat, and a rise in
:iey wages, the agricultural labourer was better off than he
His weekly wage varied from 4/61!. to io/6d. in
different parts of the country. Bread cost from a penny to
pence a pound U price common in the- early part of the
twentieth century). Meat was generally threepence or four-
pence, though in some districts it was as little as twopence-
ter was about sixpence half-penny, cheese from twopence
fourpcnce. Potatoes, little known in earlier years, had
become .1 f.iirly OOfl rom one to two
pounds a year and the cost of firing was reckoned at much the
same rates. Still, the margin left between wages and
expenditure on bare necessities is narrow, and Young assumes
that in order to get a decent living many members of the
family should work. He also mentions casually in his notes
on Let a boy of six could earn a penny a day in the
mills. Things were not so bad as they had been and, since
the d of comparison must needs be the past rather than
the unseen future, he could see little wrong in conditions that
would depress a modern tourist.
Details such as those quoted above show that a considerable
proportion of the population lived near the margin of subsistence
centh century as well as in the nineteenth. Neither
the industrial revolution nor modern methods of production
illy be held responsible for the fact. But we need not
rely on details in this mat tor. The strongest proof lies in the
growth of the population of the old world once it had embarked
on large scale production. Before the Industrial Revolution
population grew slowly, afterwards with amazing rapivi
the means of support increased, and that with
a rise rather than a fall in the standard of living. It would
appear, from such cs as exist, that the population of
England and Wales increased up to 1750 by about 15 per cent
in the course of a century. During the nineteenth century it
increased by 265 per cent. In 1801 the population was less
i nine million, in 1901 it was more than thirty-two millions.
Before the Industrial Revolution this country could not support
ist population ; since the revolution it has been able to do
so by exch; the products of its great industries for the
food supplies of other lands.
Any ultimate gain to the masses of the people vrai h -wever
invisible in the social upheaval of the end of the eighteenth
and the beginning of the nineteenth centuries. Many of the
poorer members of the community lost employment through
the over-sudden introduction of machinery, were so impover-
ished by the enclosure of agricultural land, or suffered so much
from the high prices of the Napoleonic wars, that their misery
was greatly aggravated. Professor Vinogradoff points
that the growth of population in those days was largely due
to the recklessness of men who had lost much and of women
who had lost their ordinary occupations, and to the evil
housing conditions of the beginnings of industrial cities. It
was left for later decades to show that the increased number
of people could be maintained at a higher level of comfort than
had been possible before the revolution.
Dazed politicians, their thoughts occupied by continental
events, lacked wits and time with which to build up any
system of social legislation which should keep pace with the
growth, the shifting, and the aggregations of population.
Parliament was not prepared with any schemes to prevent the
overcrowding of industrial cities; or, to use two of Cobbett's
expressions: ** The Collective Wisdom " could not cope with
the " Wens." We emerged slowly. Misery did not altogether
vanish, but it became articulate. There were still people
living at the bare subsistence level, but they were a smaller
proportion of the population. With increasing contact, col-
lective knowledge and collective action became possible.
Large-scale production, helped by modern transport facilities
to reach a large-scale market, brought economies which
benefited, as time went on, every section of the community.
Communication grew swift for all; goods, unknoun before,
became articles of common use ; social legislation slowly
improved ; some of the worst city areas were gradually
cleared ; some of the new wealth of the community was
devoted to securing a modicum of education for every child.
'3*
< s of the new system had been terrible, but in
time that system brougl pread bcnc
.it the capitalist and capitalism are forced
t the benefits of the system, and cannot deny that with
<>f it, poor at well as rich have gained by
il i evolution. Notwithstanding tlic unequal dis-
wealth. ', inual accumulation
use of cap.l.il h.i jit in their wake :<, antagcs
means c h. Social
ns as ilc; . Booth, and later by Rowntree,
Bowley and others, she there is much to be lamented,
tlu- improvement, scarcely perceptible if watched from
year , notable enough to those who look far back
into the past
iprovement, such as it was, depended on invention
the accumulation of ca; iot necessarily on the
ate ownership of capital. How far invention and accum-
ulation depend on private ownership it is difficult to say.
Some hold that since they have grown together so far it is
icnt that they cannot grow separately; others maint
that invention owes little or nothing to private ownership and
tli.it both it ami the accumulation of capital could be more
effc developed under some other system. With the
still smouldering wreckage of a great conflagration behind us ;
with the vast populations of Europe in dire need because of
break-up of the old economic system on which they
depended ; with a new order of thought among all classes of
people at home, we seek in vain for guidance from the past.
Mr. Keynes, in the second chapter of his book on *' The
Economic Consequences of the Peace," vividly indicates the
problem of the capitalistic system to-day. Sketching first the
population in Europe during the last ccnti
he passes to some account of the marvellous organisation by
ch it wa icd with ist mechanism of transport,
coal distribution and foreign trade which made possible an
1 1 order of life in the dense urban centres of new
Then he shows how " Europe was so organised
socially and economically as to secure the maximum accumula-
of capital. While there was some continuous improvement
in the daily conditions of life of the mass of the population,
Society was so framed as to throw a great part of the increased
into the control of the class least likely to consume
The f the nineteenth century were not brought up to
"33
;e expenditure, and preferred the power which investment
gave them to the pleasure of immediate consumption." The
whole mechanism is delicate. Much h.is been broken, hence the
condition of Europe. In England there are SI-MS that consump-
tion is replacing accumulation, and that not only among those
who have been accustomed to consume their whole income.
The listic system did not do badly for mankind in the
old days because of the saving habits of the capitalists. If
they change those habits things will be very different, some
new system may be essential. Continuous improvement
depends upon continuous saving. Capital must grow if we
are ever to see the whole population, not only of this country
but of the world, r l>ovc the level of subsistence, i^ood
housing, good wages, short hours, can only be achieved by its
growth. How is it to be secured?
134
THE CAM I OK DIRECT ACTION.
': the Trade Union Congress will be called upon to
tal verdict on the question of Direct Action to decide
whether the use of the strike weapon should be confined to the
/ area, or whether it should be employed to compel Parlia-
ment cde to political demands. As there it a tendenc
tome quarters to undcr-c he determination of the advocates
of Direct Ac :i sunder stand the aims and objects behind
r policy, we publish the following extracts from a lecture
vered recently at Kingsway Hall by the Industrial Editor of
the Daily Herald, Mr. \V . \!cllor,who is a protagonist in the
n school of thought and an out-and-out believer in the
revolutionary doctrine of physical force )
me," said Mr. Mcllor,
IN the w.i r between classes. I sec no sign of real social
unity or the so-called * brotherhood of the trenches ' brought
' industry at hot. I do see on every ha el and
iccr war between the interests of those who own and !.
power, and those who are owned, who are dispossessed and
have not .ieved power. I believe that the great
1 1 between workers and
. talists. Whether round a table or
of employer towards employed is always the same : * Wl
h.i\e I hold ! ' and the worker's answer to that is : * What you
.e'll tak (Applause)
M I believe that a decision as to whether direct action is
bt, morally justifiable, and expedient, depends upon \
itudc towards society. I have been examining the
speeches and books of eminent labour leaders, and I have
discovered that you can divide the leaders of labour into two
halves. On the one hand you have those who still retain the
:is of the last f< -rs, who still think in terms of
the who believe that by a slow process of evolution and
by the ballot box you can gradually , face of the
world. On the other hand are those who look at life from the
point ot f class, whose form of organisation is industrial
union, whose attitude is ^OM nu d 1>\ the belief that ccono:
power is the basis of all power. y is to be found
the secret of ^tren^th, and that it is useless to talk of demo-
35
cratic forms of government so long as there remain in iiulu
servility and autocracy. 1 * (Applause)
44 Those labour leaders who take up the former view have
been telling us recently that those who support direct action
arc supporting something which is bound to produce revolution
-" (Voice: " A good job too ! ") " that it is that lUshevism
against which the force of all sane labour must be used to the
utmost. Similar charges were made against the strike weapon
and against all trade unionism in its early days, but the strike
is now everywhere recognised as the workers' only weapon."
" Direct action, as now generally understood, is the use of the
power to refuse to work by bodies of workers in pursuit of aims
that, if achieved, will change the order of society. The
opponents of this form of action the most sensible opponents
plead that in a democratic country the worker has a weapon
in the vote which will give him all the economic changes he
desires."
44 But the first question I want to ask is : Are we a demo-
cratic country, and if we are not, how are we going to become
one ? We have the symbol of political democracy in the vote,
but I want to suggest to you that the vote is given to sections
of the community just in so far as those who possess economic
power believe that those sections are going to exert power
in the industrial field. The vote is the symbol of the industrial
or economic power ; it comes after that power has been made
manifest not before. It comes as the result of increasing
strength in the economic field and is merely a symbol that that
strength is recognised. To-day, in this country, so far from
being a democracy, we are fundamentally and by that I mean
economically and industrially an autocracy, but it has served
the purpose of those that own to give the workers the symbol
of political freedom. That symbol is useless unless it carries
with it the power to make the vote effective."
44 If we examine the history of the country during the war
period, and now, the one thing that will strike us is that power
does not rest at Westminster. Power rests in the City, or in
the great centres of commerce, or in the offices of the Ship-
building and Engineering Federation or the Miners 1 Federation.
Behind Parliament, laws are determined, changes are deter-
mined according to the economic strength of the contending
parties. The place where laws arc made is the room where
Labour and Capital come together, with a politician as neutral
chairman. All that Westminster does is to register the fact.'*
"36
*' L T : , it is useless to country
dcu. or the worker free in industry which is gover
inly the -f the trade uni cck
the >cracy. Might hours, ten hours a da
working life arc spent
freedom, and lie cann<: d as a free man merely in
the few hours when he isn't in l>cd. To oppose the doctnr
n in this country, because it is a democratic c
ious, because no country can be democratic until it is
democratic in indust
11 Our opponents declare that to apply the method of direct
. is to produce an i. I a;;
believe in using the indust: ipon to ach
ends that concern n. m the mere people who are striking,
;c in the system of society." (H
.0 industrial weapon and the industrial movement
should be used for a total revolution in the order of society as
know it now. To use trade union organisation merely to
ameliorate conditions under capitalism is to use it for an end
i is bound to fail " (Applause) "To attempt to create a
monopoly of labour power in order tha tiould extract a
iini an hour more wages from your employer, and still leave
him powtf to extract more than a shilling in prices, is to use a
magntficicnt weapon for a very foolish end.'*
41 We believe that the object of trade unionism is to trans-
apitalism. We are revolutionary, and our analysis of
society leads us to believe that in the class war all weapons
are justifiable. In the war between the capitalists and the
vies are engaged in a fi^ht with the gloves off.'*
" I believe that actually we shall only secure a complete
.nge of sock: i labour is so organised that it can, at a
i of command, lay down every tool and just fold its
I don't s it will actually do that,
but it will achieve the change when it is able to do that, and in
so far as Labour is able to do that, Labour will be able to effect
changes. The weakness of the Labour movement to-day is
just in proportion to its inability to conduct strikes in the
industrial field for other than reformist ends."
ess was rejoicing over the threatened
collapse of the Triple Alliance. It was rejoicing over the
threatened collapse for the very simple reason that the Press
uuis thai the Tnplc Alliance, weak though it is, (iocs
resent a new spirit in the Labour Movement. It represents
'37
the coming into existence of the working class consciousness as
against the consciousness of the miners, the railwaymen, and
the transport workers. And with it there has come, too, the
use of power for new ends, and it is significant that much of
the recent discussion around direct action has centred around
the Triple Alliance. With this welding together of interests
has come a widening of outlook amongst the people who form
part of the Triple Alliance. They arc beginning to see that
reformist strikes are a waste of time ; that strikes within the
system, merely to make the system more bearable, will have to
go on for ever, and never make the system really more
bearable."
"Now we come to consider the practicability of direct
action. Many confuse it with the general strike. But by
direct action we mean the use of the industrial weapon for ends
that are regarded as non-industrial. Whether a strike, for
instance, of the miners in connection with the nationalisation
of the mines is practicable or not, depends upon the strength
and coherence of the Miners' Federation of Great Britain. If
the control for the purpose of action is sufficiently centralised,
and for the purpose of propaganda is sufficiently decentralised,
then a strike for an aim other than a reformist aim is certain
of success."
41 I believe that to-day you could use the disorganised trade
union movement of this country to achieve nationalisation of
mines by the application of the direct weapon ; that you have,
in other words, even now, sufficient organisation to secure a
turn-out of workers on the issue. But when you come to the
Russian issue, I am not prepared to say that you could get
direct action upon it. I don't believe you could get a strike
by the Triple Alliance to force the withdrawal of all British
troops from Russia, and the stopping of all British supplies to
the anti-Bolshevik forces, but I do believe that it is because of
the fear of the strike that the British troops have been with-
drawn, that supplies are stopping that there has been direct
action of a kind applied to the problem of Russia with very
beneficial results. Even there, where we could not have
secured a definite strike, the possibility has achieved political
results that no amount of voting would have achieved."
44 1 do not believe in or defend direct action simply because
there was a rush election last December. Every election is a
rush election " (Applause) " and direct action does not
depend on whether it represents the morning-after view, but
whether it represents the power of the capitalists." (Applause)
m't need to argue that because we were fooled
December we can strike in January. We are tooled all the
time, therefore we must strike when we can." (Applause)
iction expedient ? Everybody recognises to-day
th.it i. ruler certain circumstances it is expeJ the worker
to refuse to work. The power to do that gives him a sense of
!om. Believing that, it surprises me that they will not
allow the same weapon to be used for ends that arc
merely ends of pocket, ends that h.ive some touch of idealism
about them, impersonal and great. They agree to a strike for
at ion of industrial conditions, but when it is to be
used for :ig the basis of ownership, they s.iy : ' No, we
are a democratic count: Veil, it seems to me
that if it is justifiable to refuse to work for less than a minimum
wage, it is justifiable to refuse to work under a system of
private ow: ' (Hear, hear) ** If it is justifiable to refuse
to work because you don't like your foreman, it is justifiable
to refuse to work because you don't like your boss and you
want to get rul of him. If a strike is justified because you
want five bob a week extra, it i> justified because you want
the lot. Everybody who supports the strike for ameliorative
purposes should logically support it for any other purpose.
Kxpeviicncy is a calculation of odds. If you think you can Jo
it do it. If you think you can't wait. You have got to
consider expediency from our point of view ; whether we can
achieve the thing we set out for, not whether it is expedient
fr the nation, but within the class war. We can make it
expedient by perfecting our organisation. The use of direct
large scale now is inexpedient because we haven't
the machinery or the conciousncss in the workers to make
live. It is not inexpedient because we are going to
iJ on traditional corns, but because we are not ready for
.t."
**Thc thin:; that the Labour Movement most needs is the
reorganisation of itself so that it will be able to apply economic
pressure when it is desirable. That reorganisation involves a
giving up of the sovereign rights of small nationalities,"
.lighter) **It involves the creation of an army and the
question is whether Labour is going to create it. The desire
for an army of Labour comes from people who desire that army
for other than reformist ends."
'39
"The power of the Labour Party or tin- weakness of the
Party is a reflection of the power or the weaknes
the Labour movement in the country. 'I hcv merely i
something th.it happens outside. The stn n t!i <>f Mr. Thomas
in the House of Commons rests ultimately upon the fact that
he is Secretary of ti ' : >nal Union of Uailwaymcn. The
strength of the miners 1 representatives in the House rests on
the fact tli.it they represent the miners."
' I'he poxver of every c! :lu- power that it has to hold
up society, ami in past history every class has used direct
action to climb up. The very thing the bourgeoisie are saying
the xvorkcrs must never use they used themselves, even to the
extent of chopping off a king's head. We are simply u^
force to combat force, as every other force has been obliged to
do."
*
140
I OOK BEFORE YOU LEA I'
elementary fact th.it we, as human beings,
II continue to need food, c! and shelter, and
shall be ol by some labour process,
the future is unknown, and all efforts to lift the veil, or
of the future, are waste of time and energy."
These words arc quot > the official organ of the
of Great !' .md they deserve the
v serious attention of all sorts and conditions of men
ami women.
(here are many schools of Socialist thought, and whilst
v are unable to agree amongst themselves as to the
precise form of socialism that they desire to see
operation, they are all united in clamouring for a drastic
the organisation of a society, which, wh.it-
its shortcomings, is at least the product of many centuries,
during which it has been moulded by the cautious hand of
experience to meet the varying needs of an extremely
complicated set of problems.
he socialisation of industry " is a high - sounding
phrase that may mean progress or may spell disaster ;
Init no prudent man will venture the whole of his future
on a ship simply because it has a name that sounds
well. lie wants to know whether the ship is seaworthy,
he asks whether the pilot is experienced and he satisfies
himself as to the destination of the voyage before he
embarks with all he has, little though that may be. No
intending passenger would be reassured by being told
that "the future is unknown .ill efforts to lift the
, or plan details of the future, are waste of time and
The ideals of socialism may be admirable, and the
promises held out by counsellors who want to enlist our
sympathies may be glowing, but if we pay any attention
to the claims of common sense we are bound to enquire
whither we are being shepherded, and what is eventually
going to happen to us, as individuals, if we lend a hand
Bringing about the changes that are being demanded.
c is no need to get excited over the subject
so many dc. All that is necessary is to adopt a judicial
MI
attitude and to consider, in cul.l bl->od, whether the game
is worth the candle. If we view the matter in this spirit,
our first questions will be to enquire : What is the
essential feature of the proposition? Who are to benefit,
and who are to suffer, by the change?
Doubtless we shall be told that equality is the goal ami
that equality is to be won by dispossessing tho rich ami
endowing the poor with the proceeds. P>ut who are tin-
rich? That is a question which is seldom asked ami
ily ever answered.
Let us attempt to solve this elementary riddle before
we proceed to consider the other problems that follow
upon this first step on the road to socialism. If absolute
equality is the goal, it is obvious that a halt in the
process of change will never be called until everybody's
income is adjusted to the same level. If absolute equality
is not intended, it is equally clear that the less highly
paid sections of the community will still have a grievance
against the more favoured few for, in the nature of
things, it must always be the many who have the smaller
shares or else it would soon happen that nothing at all
is left over for the few. A simple example will make this
point clear. If there are ten loaves to divide between
ten people and if two people take one and a half loaves
apiece, there remain seven loaves for the other eight, that
is to say, nearly a loaf each. But if eight people take
one and a quarter loaves apiece, not one morsel of bread
is left over for the other two.
It must be assumed, therefore, that when the honest
socialist speaks of equality, he means that relative riche,
and relative poverty would be abolished under his regime,
because if he does not mean this he is perpetuating what
he believes to be an evil, and is deceiving the credulous.
So, again, we ask who are the rich ? And we wonder
how many people take the trouble to enquire to which
class they themselves would belong if all incomes were
equalised. Let us suppose, for example, that an unmarried
engineer, earning 6 a week, attends a socialist meeting
and hears a popular orator declaiming against inequality
and promising a fairer distribution of the national income-
We wonder whether our engineer realises that under any
system which ends in equality he would have to give
up a large part of his wages. We venture to think that
142
such an idea never enters his mind. If he considers the
tcr at all, from a personal point of view, we have little
he assumes th.it he would be one of those who
ng to benefit, not one of those who are going to
offer, by the change.
it is an absolute certainty that there is not
enough wealth in the country to provide an income of
6 a week for all single men, no matter whether they
peers or peasants. There will be some suspicious
ill refuse to admit that this is a fact, but
tlu statement is one that cannot be gainsaid even by
most sanguine socialist who has spent five minutes
m , the matter. It is merely a question of
neither . upon any man's
opin an be explained away by any amount of
nment.
Actual and reliable figures of the national income in
vet available, but, before the war, the total
national income from home sources if divided equally would
icldcd for each family of five persons only 230 a
year gross, or 170 a year net, after rates and taxes
were paid and necessary savings provided for. Now 170
a year is 3 55. 4Jd. a week and this would have been
the maximum and the absolute share per family per week
of all the wealth produced in the United Kingdom if all
shares were equal. It follows that single adults would be
entitled to a much smaller share.
It must he remembered that there is less actual wealth
in the country now than there was before the war and
so, notwithstanding the present inflation of currency whuh
makes him appear better off than he really is, the engineer
question would nevertheless have to "shell out " in
order to bring the shares of his poorer brethren up to the
standard rate.
But, it will be urged, the average working-class family,
>rc the war, had to put with less than sixty-five
shillings a week, and their share would be increased if
incomes were equalised. This is a fact ; but even so
there is a lion in the path, and again prudent people
would be well advised to look before they leap. Let us
ce the case of the father of a family with a weekly
wage of forty shillings a week and see how he would
be likely to fare if the dream of the socialist came true.
'43
Of all the calamities that threaten the standard of
living of the working-class family the most dreaded is
prolonged unemployment, but if a normal wave of trade
depression throws thousands of men out of work, what
would happen during the transition period when the whole
foundations of society were being uprooted? Of a CCT.
tainty there would result an epidemic of unemployment,
such as has never yet been experienced in our history,
and one from which recovery would be slow and painful
at the best.
Imagine, first of all, the absolute chaos that would he
caused if the whole machinery of production was sud-
denly thrown out of gear, and then consider how Ion
would take to organise new industries to take the place
of those that had ceased to exist. If everybody had the
same small income, the so-called luxury trades would be
abolished because nobody could afford to buy expensive
articles ; banking, advertising, insurance, commercial tra-
velling, printing, clerking, domestic service, and many
other types of employment would be seriously curtailed if
the system of producing and trading for profits were done
away with. The whole nation would be suddenly
impoverished and there would ensue a bitter struggle for
existence, in comparison with which our present difficul-
ties would seem unimportant, if not trivial.
It is contrary to human nature to expect that the
victims of the experiment would quietly surrender their
property on demand. "The Social Revolution,'* as Bernard
Shaw has said, '* will not be an affair of twenty-four
lively hours, with individualism in full swing on Monday
morning, a tidal wave of the insurgent proletariat on
Monday afternoon, and Socialism in complete working
order on Tuesday." The conflict would be long and
severe. The issue would be doubtful.
The prophet Mohammed promised his adherents a new
life in a new world, but nobody knows for certain whether
his promise can be fulfilled. What we do know is that
" the faithful," in common with other people, have to pass
through the hands of the undertaker before they can enter
paradise, and even Mohammedans are not always in a
hurry to hasten the day of their departure from this
world in spite of the joys that they believe to await them
in the abode of eternal delights.
M4
Unless we arc very greatly mistaken, the British people
wiff*wcigh the pros of Socialist promise against the coot
of inevitable risk before they commit themselves to a change
such as would be brought about by the forcible soc
ion of indus' li all its attendant uncertainties and
dangers.
i when all is said and done, what is the conclusion
of the matter? Does it not reside in the elementary
" tli.it we, as human beings, shall continue to need
food, clothing and shelter, and shall be obliged to obtain
them by some labour process?** Surely there is a better
way of attaining our object than can be secured by leaping
before we look. With what amounts practically to universal
he people can have whatever form of government
they choose, and we shall do well to take to heart the old
; "More Haste less Spec
TAXATION OF CAPITAL II.
MOST people approach the subject of these articles with
a strong bias in favour of income taxation, direct and indirect,
partly because no other method of raising revenue seems at
first possible, but mainly because, in time of pe;icc, net ino
is universally admitted to be the true criterion of capacity to
pay. And it is further agreed that income should normally be
measured over as long a period as possible. Hence, partly,
the administrative practice of allowing a business man to
pay in any year on the basis of realised income over a period
of years. But the problem now under discussion is that
of meeting, not recurrent expenditure on the part of the
Government, but an abnormally heavy and wholly unexpected
financial burden, the very existence of which is regarded by
many as constituting a serious menace to the welfare of the
State, and against which there are no specific assets. The
evil, it is held, can only be removed by drastic measures such
as would be quite unsuitable under normal conditions.
There are many, indeed, who would strongly support the
view expressed in the following words by Mr. Bonar Law
two years ago (see The Economist, Dec. 29th, 1917) :
" Suppose you take this view I am inclined to take it myself
that we ought to aim at making this burden (of taxation
represented by the National Debt) one which will rest
practically on the wealth that has been created and is in
existence at the time when the war comes to an end, not
merely that it should not fall on the wage-earning classes or
on the people with small means with which to meet it, but
that it should, as far as possible, be borne by the wealth that
exists at the time, so that it would not be there as a handicap
on the creation of new wealth after the war, I think that
is what we have to aim at." And they regard a levy on
existing wealth as the inevitable consequence of the adoption
of that view by the community.
Others, of whom the writer is one, argue along a different
line. The debt incurred by a very small war would create
little or no controversy. Interest and an adequate sinking
fund would be provided by a relatively small increase in
income taxation. No question of imposing a levy on capital
would arise. On the other hand, if the recent world war had
146
cost this country twenty or thirty thousand million pounds
no one would seriously contend that a heavy levy on cap.
could be avoided. And what is inevitable cannot be unjust.
Now between these limits there is a point at which a levy
ceases to be inevitable, yet remains highly desirable ; and
a second point at winch the evils of v icomc taxation
become obvious. And between these two intermediate
points there is a third, at which the advantages of a levy
on capital exactly balance its evils. The question of a levy
is therefore not discussed on any ground of fundamental
principle. It is held that the National Debt, even with the
present inflated currency, has already exceeded the amount
Si it is wise to ignore the levy as a method of reduc
f the currency is to be deflated, it will be
impossible (or, if at all possible, very injurious to industry) to
provide by income taxation the revenue necessary for the
interest and the provision of an adequate sinking
fund. A levy on capital is thus an essential preliminary of
any scheme to reduce materially the volume of currency.
The choice is between simple income taxation and continued
ition, or deflation accompanied by a substantial reduction
of debt by means of a capital levy. Among the advantages
of such a levy should therefore be included the advantages
following upon the reduction in the volume of the currency.
Such, in brief, is the line of argument which seems strongest to
the writer.
It is necessary to make perfectly clear what a levy on
1 1th really means. If it is avoided, and the revenue
necessary to provide interest and sinking fund is found by
income taxation, it seems to be generally agreed that the rate
upon unearned incomes will be advanced considerably more
than the rate upon earned incomes. And some advocates of
a levy regard it merely as a means of capitalising the new
differential tax upon unearned incomes, which would there-
not be imposed in addition. Such is not the case :
a capital levy is not a means of further differentiating between
the two forms of income. For under income taxation
unearned incomes derived from future invested savings would
be subject to taxation at the enhanced rate, and, from the
o of its emergence, would contribute no less than similar
incomes from investments which exist at present. If a lew
were imposed upon existing capital it is clear that the tax
Imrden upon incomes derived from future investments would
"47
be proportionately reduced. It is, therefore, not true to say
that if a levy were imposed existing owners of capital would
only pay in lump sum what they would in any case be
compelled to pay in annual instalments under income taxation.
On the contrary, owners of existing capital would be paying
more than under ordinary taxation, and would be contributing
to the relief of other taxpayers in the future. A capital levy
seriously affects the incidence of the financial burden created
by the war, and raises, in a marked degree, the question of
equity at any rate, if it be assumed that income taxation
and a capital levy are real alternatives which may be
adopted at will. This point is of the first importance, for,
as we shall see, it affects the criticisms which have been
urged against each.
A levy on capital would be a levy upon the owners of
existing capital that is, a tax imposed immediately upon
persons. Apart from the National Debt itself (which repre-
sents capital to the individuals possessing Government stock)
such a levy would not destroy capital ; it would merely
transfer the property rights to capital. Nor would it
necessarily reduce the fund of loanable capital, for every
sum surrendered to the Government in payment of the levy
would set free an equivalent sum paid by the Government
to holders of Government stock. Moreover, it would not
necessarily affect the position of joint stock companies beyond
changing, in some cases, the personnel of the stock and share
holding groups. But the position of a one-man business or
private partnership might be seriously prejudiced in the
absence of special provision to meet its particular needs.
Since, however, owners of capital have, in general, invested
in War Loan stock, then the mere surrender of the requisite
amount of such stock in payment of the levy would not reduce
the capital invested in a private business, although the levy,
by its very nature, would naturally reduce the assets of such
business and curtail its individual power to overdraw at the
bank to meet its daily needs.
Many objections have been urged against the principle of
a capital levy. Some of these are based upon misconception,
othen are weighty and call for serious consideration. The
most serious of these were summarised by the Chancellor of
the Exchequer in his Budget speech of April, 1919.
[To be concluded.]
CONSTRUCTIVE MEASURES.
I times of industrial unrest and crisis more publicity it
generally given to the differences between employers and
ii'.n t.) tlic constructive measures that are
..4 taken to improve industrial relations and to facilitate
co-operation in the development of industry. It may therefore
be useful to review briefly the work that has been accom-
plished in giving effect to the recommendations of the Whit
The terms of reference to the Whitlcy Committee were as
follows:
"(i). To make and consider suggestions for securing a
permanent improvement in the relations between employers
and workmen.
" (a). To recommend means of securing that industrial
conditions affecting the relations between employers and
workmen shall be systematically reviewed by those concerned,
with a view to improving conditions in the future.'*
After careful consideration, the Committee recommended in
its Report that in each well-organised industry there should be
established a National Joint Standing Industrial Cou
composed of elected representatives of the Employers*
Associations and the Trade Unions concerned in the indu
The Committee recognised, however, that it was not enough
to secure co-operation at the centre between the natio
organisations, but that it was equally necessary to enlist
the activity and support of employers and employed in the
districts and in in i establishments. The Committee
therefore recommended th dustrics in National
Joint Stand, uil Councils were formed there should
also be established (i) l> . -n-ict Councils, representative of
the I r.ide Unions and of the Employers' Associations in the
industry; and (2) Works Committees, representative of the
management and of the workers employed in particular
works. The Committee further recommended that the
National and i ( Is and the Works Committees
^hould act in the closest possible co-opera t
v, was the threefold structure recommended by
the Whitlcy Committee. It may be added that the Committee
expressed the view that Councils and Works Committees should
meet at regular and frequent intervals, and that the questions
i which National Councils should deal, or should allocate
to District Councils or Works Committees, should inchuH: not
only economic questions, such as wages and hours, but
tically all questions that could affect the relations bct\v
cm] .ind employed and the development of the industry.
Ihe first Whitley Council the Council of the Pottery
Industry was established in January, 1918; and it is
iifyin^ to be able to record that at the present moment
fifty-one Whitley Councils have been f iud, representing
over four million workers. Taking into account the industrial
conditions of the past two years, it will be agreed that
remarkable progress has been made.
Forty-three of the fifty-one Whitley Councils repi\
industries carried on by private employers or by public
companies. It may be useful to give the list :
Asbestos manufacturing ; bobbin and shuttle making ; boot
and shoe manufacturing; bread baking and flour confectionery
(English and Scottish) ; British coir mat and matting; build:
cable making; carpets; cement; china clay; elastic web,
cord, braid, and smallwares fabric; electrical contracting;
flour milling; furniture; gold, silver, horological, and allied
trades ; heating and domestic engineering ; heavy chemicals ;
hosiery (English and Scottish) ; iron and steel wire manu-
facturing; made-up leather goods; match manufacturing;
metallic bedsteads ; music trades ; needle, fish hook, fishing
tackle, and allied trades ; packing-case making ; paint, colour,
and varnish ; pottery ; printing and allied trades ; quarrying ;
road transport ; rubber manufacturing ; saw-milling ; silk ;
spelter trade ; tin-mining ; vehicle building ; wall-paper
making ; Welsh plate and sheet trades ; wool (and allied)
textile ; woollen and worsted (Scottish) ; wrought hollow-ware.
The remaining eight Whitley Councils represent an interest-
ing development of the application of the principles of the
Whitley Report. In its second report the Committee stated
that :
" In considering the scope of the matters referred to us
we have formed the opinion that the expression * employers
and workmen' in our reference covers State and Municipal
authorities and persons employed by them. Accordingly we
recommend that such authorities and their workpeople should
take into consideration the proposals made in this and in our
150
first Re; . to determining how far such proposals
can suitably be adopted in their cu
> recommendation has been taken up by the State and
Municipal authorities and by the trade unions concerned, mod
already great progress has been made. The principle of the
apf> of the Whit Icy Report to Government Industr
Establishments was approved early in last year, and a scheme
lie establishment of Departmental Joint Councils, Trade
>t Councils, and Shop, Works, or Yard and Trade Com-
>cal establishments was drawn up. Departmental
it Councils have now been established fur the Admiralty
the Office of Works, and the formation of similar Councils
for the War Office, the Ministry of Munitions, the Stationery
Office, etc., is now in hand. The Admiralty Departmental
Council is at present setting up Yard Committees at Ports-
mouth, Devonp I other dockyard towns. In addition
.his l.ir^c development a National Joint Council for the
>trative and Legal Departments of the Civil Service
has been formed. This Council has held several meetings,
and has agreed to the appoint men t of a Joint Sub-Committee
-insider the re-organisation of the clerical grades of the
Civil Service. The necessary Departmental Joint Councils
are also being rapidly established.
An equally development has been made in applying
the Whitley Report to the industries and services with which
il government authorities are concerned. A National
Joint Standing Industrial Council has been formed for each
of the four public utility services electricity supply, gas,
waterworks ; and, as it is vital that a Whitley
Council should be representative of an industry as a whole,
each of these four Councils represents both municipal and
company-owned undertakings. In addition to these four
Councils a Joint Industrial Council has been formed for the
m.inual workers employed in the non-trading services of local
authorities in England and Wales ; and a Joint Council for the
administrative, technical, and clerical services of the same
local authorities is now in course of formation.
1 1 will thus be seen that the Whitley Council movement has
already made very substantial progress. But what, it may be
asked, is the value of the work actually accomplished by these
Councils ? As one would expect under recent industrial
conditions, the majority of the Councils have been mainly
occupied with questions of wages, hours, and general
ditions of work. Tli.it is .ill to the ^ood, for if such questions
can be settled by joint consideration and agreement, present
troubles are removed and a good foundation is made for
necessary negotiations in the future. A large number of
Councils have come to agreements on wages, hours, holidays,
overtime, etc., a few have been unable to arrive at agreements
on wages ; and one or two have come to a deadlock on that
subject.
Taking the work of the Councils as a whole on these thorny
and difficult questions, it can truly be said that the Whitlcy
Council movement has fully justified itself. It has already
been pointed out, however, that the functions of these Councils
arc not purely economic, but include practically all questions
that can affect the relations between employers and employed
and the development of the industries which they represent.
Several Councils have accordingly already dealt with such
questions as education, apprenticeship, employment of
disabled men, employment of women and juveniles, research,
organisation, statistics, welfare, safety, commercial matters,
etc., and many other Councils are now in process of dealing
with these and other subjects of a wider nature than the purely
economic.
The Whitley Scheme, however, is threefold. In all save
a few industries, District Councils and Works Committees
must be established in addition to the National Councils
if the purposes of the scheme are to be realised adequately.
National Councils, however representative and capable they
may be, cannot have that detailed knowledge of local
industrial conditions and needs which is essential for the
maintenance of good relations between employers and
employed and for the development of industry ; nor can either
National or District Councils deal adequately with the many
questions which arise from time to time in a particular works
or factory. It is therefore gratifying, and a sign of real
progress, to find that a steadily increasing number of National
Whitley Councils have either established, or are in process of
establishing District Councils and Works Committees.
The Whitley Council Scheme is still, necessarily, in an
experimental stage. It has come into being at a time of
great industrial ferment, following a period in which the
industries of the country had been submitted to unpre-
cedented stress and change. It has thus had great difficulties
to encounter. But it has already shown that the principles
152
advocated by the Whitlcy Committee were sound in theory
and feasible in practice, it has enabled represent*?
:>loyers and trade unionists in many industries to meet
together for the purpose of considering jointly their differences
and the many problems affecting the industry with which they
are concerned. It has been the means of achieving a large
number of constructive agreements on vital industrial questions,
and it has afforded employers and employed the most effect
of opportunities for that mutual understanding and education
which lie at the very root of industrial harmony and prosperity.
'33
ADULT EDUCATION AND THE LABOUR
COLLEGE.
THE final report of the Adult Educational Committee, pub-
li-hed in November 1919, is particularly instructive and is of
such a nature as to invite more than passing comment. The
importance of adult education which, generally speaking,
means the education of the adult working-man as a factor in
determining the maintenance or otherwise of industrial pc.;
is duly emphasised by a body of men, many of whom are
peculiarly competent to adjudicate on the matter. The history
of adult education, and its intimate connection with political
movements in the past, are carefully reviewed ; a detailed
description of existing organisations is given, and recommend-
ations are made for the future conduct of the work. The
Report is signed by the Master of Balliol and seventeen other
members of the Committee appointed as long ago as July 1917
by the late Minister of Reconstruction.
Among those who sat on the Committee and who had a
considerable share in framing the Report were Mr. Frank
Hodges, Secretary of the Miners' Federation, who is an old
student of the Central Labour College, and Mr. C. T. Cramp,
the new leader of the N.U.R., who is a pronounced advocate
of the " Class War/' With two such redoubtable champions
of " the new order " sitting on the Committee, we might expect
to find the report not unmindful of the interests of militancy,
and even the interim report bears traces of a special solicitude
for the future of that robustly militant seminary, the Labour
College in London. We aro not surprised, therefore, to dis-
cover that the recommendations arrived at are designed to
secure the financial support of the taxpayer for that same
institution.
In order to understand the import of the references to, and
the constant backing of the Labour College by the Committee,
and its prominence in the recommendations, two points must
be emphasised. (a) Adult Education, which in 1914 was
"booming " and which underwent a slight set-back during the
war, is now again making remarkable strides, chiefly through
the agency of the Workers Educational Association, the Uni-
versity Tutorial Classes and the University Extension Lectures.
(b) The general character of the subjects taught is determined
by the wishes of the students, which, as is well-known, are
continually moving in the direction of Economics, Industrial
and Social History, Sociology and kindred subjects.
154
These facts should in themselves be sufficient to ensure that
the control and direction of Adult 1 n Classes should be,
before all things, free from that partisanship and political or
economic bias which is adi the e*icntiul characteristic
1 labour College teaching.
The Labour College was formed in 1909-10, when Mr.
mis Hird and his associates withdrew from Ruskin College
in oi.Icr to be free to teach purely Marxian economics and
ikly revolutionary doctrine. Before the war the progress of
the work was slow but evident. If during the war it lost
i ml, the prc spirit of unrest hat now given it fresh
i, and to-day it Appear to be afloat on the high
tide of success, A sum of two thousand pounds has been
spent in decorating and furnishing the two large houses which
ccupies in i'lnvwern Road, Earls Court, and it is proposed
Ac the other two houses at the back, making a solid block
in which at least ico resident students can be housed. The
new session opened in September with twenty-seven resident
i students and two outside women students. It is intended
that a hostel shall be established and the number of women
students largely increased.
In its early days the Labour College was indebted for its
funds to a wealthy anarchist, Mr. George Davison of Harlcch.
Subsequently the necessary financial support was provided by
the National Union of Railwavmen and the South Wales
Miners' Federation, and the six members of its governing
Board are elected by these Unions. More recently it has
received the adhesion of the National Union of Clerks and of
the Bleachers and Dyers Union, which has withdrawn its
support from Ruskin College. It has been promised the
support of the Postal Union and is looking to Mr. Tom Mann
to withdraw the A.S.I from Ruskin College and bring the
engineers into line with the N.U.R.
All these facts give the Labour College an importance v.
must not be overlooked in considering the part it is playing in the
propagation of social revolutionary ideas through its resident
students and through the network of classes it is establishing
in all parts of the country. There arc at least one hundred
C.L.C. correspondence classes in South Wales, and testimony
to the efficiency of their teaching is borne by Mr. W. W. Cr.
stated recently tli.it the students coming up with scholar-
ships from South Wales are already well advanced in their
studies after three years attendance at the local weekly classes.
That the education given at the Labour College is frankly
Marxian is amply proved by the syllabus of lectures in
economics for the present session. The only text-books recom-
mended are : Pannekoek's Marxism and Darwinism, Marx's
Value, Price and Profit, Marczy's Shop Talks on Economics,
Marx's Wage, Labour and Capital, and Ablctl's Easy Outlines of
Economics. The Marxian character of the College is recognised
by the Committee's report which notes the fact that "the
College lays no claim to being non-partisan or non-political,"
but that " as it exists for a partisan movement it must be
opposed to all those in opposition to that movement." The
bias of the Labour College and its offshoots, the Scottish Labour
College in Glasgow and the C.L.C. Correspondence Classes now
springing up in all industrial centres, is indeed not difficult to
establish, yet this College finds favour in the Report of the
Adult Education Committee which, while recognising its
partisan character, nevertheless includes it definitely among
the Universities and Colleges to which promising students
should be sent at the expense of " the Universities, aided by
the Central Authority and by Local Education Authorities."
44 We think " say the Committee, " that special efforts should
be made to offer opportunities of more prolonged study in a
University or at an institution such as Ruskin College or the
Labour College to students who have proved their capacity to
undertake educational work ... to enable students from
tutorial classes to enter Universities and Colleges for courses of
study lasting from two to three years. . . . Funds should be
provided for the purpose by the Universities, aided by the
Central Authority and by Local Education Authorities."
Such is the proposal buried in this interesting Blue Book,
which makes very clear the growth of adult working-class
education, and the dearth of teachers, and then suggests that
State aid should be given to the youth of the social revolution-
ary movement to perfect the weapons of their armoury by two
years residence at the Marxian Labour College.
In March 1918 Industrial Peace called attention to the
attack made by the Plebs League, which is the propagandist
section of the Labour College, upon the classes conducted by
the Workers' Educational Association. Working men who
attended the classes of the W.E.A. were denounced by the
League as traitors to the cause of " class war/' We shall be
interested to watch the future progress of the Labour College
under the new auspices and to see to what extent the State
Endowment is used by the devotees of the Class-War to
thwart the working of the machinery of State.
156
VIEWS OF THE MINORITY PRESS.
THE nuidin.; principle of universal brotherhood is emphasise
Solidarity by the motto, "All for one and one for all," which
appears monthly in bold type on the front page of the journal.
It seems, therefore, a particularly unf piece of tub-
that allowed the following attack on some of our
most reputable Labour leaders to appear on the same page :
itf present day Labour Party is taint , and
tout IK I state that a Labour Cabinet composed of
the type of Henderson, Clynes, Hodge, Barnes, etc., would be
far worse than the Cabinet we have in power at the present
moment : tlu-y. .it .my r.ite, we do know arc bitterly opposed
to the workers* interests. Therefore, it behoves the energetic
ones in the rank-and-file movement at their branches and
meetings to point out the fallacy of political action on
every available occasion : to use their influence to get the
reactionary trade union leaders relegated to obscurity, where
their fluent and baneful tongues can no longer add to the
misery and suffering of the workers/*
Another example of a fraternity strictly limited to those
who hold identical views on the complex question of modern
statecraft occurs in The Call of December 4th, which publishes
a message from Trotsky, in the course of which the Russian
.Bolshevik leader denounces some of the moderate French
Socialists :
Hie rcpellant falsity of Renaudel and Co. is clear and
unmistakable . . . the political school of Renaudel is at
the present moment a force even more reactionary than
clericalism in France. But one cannot imagine a Renaudel
without a Longuet . . . Jean Longuet, who, in all the
principal questions, upholds the inviolability of the capitalist
regime, expends the greater part of his energies and imagination
hiding this activity under the veil of a ceremonial and
liturgy borrowed from the Socialist, even the Internationa
book. ... I was not surprised to hear that Merrhetm
had gone over to our enemies.**
Lenin, reported in The Socialist (the official organ of the
Socialist Labour Party), concentrates a similar attack on
the corresponding group of German Socialists : " Messrs.
Scheidemann and Noske are the Life Guards of the bour-
57
geoisie and the hangmen of the German Communists. 1 '
Kautsky is described by the leader of the Russian Bolsheviks
as the "footman of the bourgeoisie." This outburst on the
part of Lenin is apparently caused by an acid remark of
Kautsky 's to the effect that "the Bolsheviks always finally
reach exactly the opposite of what they aim at they were
against capital punishment, but they are operating by the
means of mass executions '* Lenin proceeds to express the
opinion that "the revolutionary workers of all the world are
turning themselves more and more from Messrs. Kautsky,
Longuet, Macdonald, and Turati. . . . Kautsky, remain
a true reactionary small bourgeois, continues sobbing because
of the horror of civil war." In another part of the article,
Lenin comments on "all the meanness and the trea
committed against Socialism by Messrs. Kautsky, Martov,
Chernov, Branting, and the other heroes of the yellow Berne
International."
The same absence of any spirit of mutual respect or for-
bearance characterises a paragraph in another part of the
paper. Under the heading, " Renegade Tillett tries to sneak
back," The Socialist states "Ben Tillett, the Hun-chasing
variety artist of the Great War period, shows signs of returning
sanity after his war debauch." These sharp divisions within
the family itself, as it were, would seem to justify the view
held by some of us, that it is not the capitalist alone who
stands between the Socialist worker and the realisation of
his dream of an all-embracing brotherhood.
Solidarity, in its December issue, devotes an article by
David Ramsay to the Federation of British Industries, which
it describes as the "Soviet of the master class." It refers
to the proposed amalgamation of the Federation with the
British Empire Producers' Organisation. Ramsay concludes
a summarised reference to Sir Vincent Caillard's speech on
the 1 2th November last in the following words : " What is the
lesson of this article ? Simply that the workers must organise
as the masters are doing. The Shop Steward and Workers'
Committee Movement offers to all who are alive to their true
interests an opening to help forward the work of emancipation.
Join the army of the Revolution and help to sweep capitalism,
with all its artificial barriers to the free exchange of wealth,
from off the face of the earth."
The Daily Herald holds consistently to the attitude of
Germany being always right and France and England always
wrong. Regarding the difficulties attendant on the signing
of the Peace Treaty this paper differs from the French and
IVes* where M a great deal is being made of Germany's
'plot' to secure a n i of the original treaty as
a consequence of America's delay in ratificat The Daily
a/a (December 6th) is "not at all urc that the boot it not
on the other ICL; " It has "a shrewd suspicion that much of
the ' l :i ' and * shuffling ' on the part of Germany has
been manufactured or promoted by the 1 Chauvin
and Imperialists." M. Clemenceau is credited with a scheme
c between France anJ K-i ;I.n 1. The
Daily Herald is strongly opposed, for even if the pledge is to
defend France in case of attack only, " \Ve have heard before
of the weak nation stunjj into retaliation by a policy of
pin pricks, extortion, and commercial repression, and then
accused of an unprovoked assault upon a ' peaceful ' neighbour.
Such a treaty would make the present French Government
the licensed bullies of Europe and ourselves their pledged
bravoes." Writing on the same subject on December 8th,
the Daily Herald tells us that " Paris messages are full
of exultation on the prospect of a further advance into
(icruuuu Commander Kenworthy, however, has
assured the Daily Herald that this scare is an attempt by
the Allies to upset finally any democratic Government in
Germany. "It is being done to give Hindenburg and the
Royalists a chance to say to the people : * This is what cornel
of democrat On December 10 we read : '* The object
of a dual alliance between Great Britain and France would
not, in fact, be defence. The real, the secret object would
be to make France the dictator of Europe, to enable her
to assume the position that we have spent five years in
enting Germany from seizing."
The views of the Daily Herald on Ireland and on the role
that British Labour is destined to assume in the drama are
noteworthy. On December 4th the special correspondent
All over Ireland people are wondering when
British Labour will act up to its resolutions. Postponement
is infinitely dangerous. ... It is felt here (Dublin) that
organised labour has achieved a notable triumph in stopping
the war on Russia, and the sense of that triumph, perhaps,
adds to the impatience, of which there are ui
that no effective action is taken to avert the tragedy at
doors,'* In the leading article for December 22nd we
read: "We have always maintained, and we . -peat, that
there is no Irish problem. The sole problem is that created
by the alien tyranny of English rule in Ireland, and the way to
solve it is to stop it. . " The machine of physical force
which expressed Prussian imperialism has been broken in the
field. Russian imperialism has been overthrown by revolution
at home. The main thin^ that now stands right across the
path of human progress and world-peace is the imperialism
of the British Empire." ". . . in the heart of the British
Government itself, there is a reactionary gang absolutely
determined to prevent any form of Home Rule and powerful
enough to ensure that disorder shall be provoked by intolerable
coercion whenever the prospect of Home Rule comes in si
The course pursued at present by the British Government
can mean nothing but . . . the downfall and dissolution of
that Empire itself. ... If Labour could by any means take
over the control of the country, it could and would save the
country and the world. "
On December 3ist, in a three-column article entitled
" Ireland : A Policy,*' we read : " Under Coalition rule
Ireland will be taunted with physical impotence ; denied
freedom of speech or assembly ; denied elementary justice ;
denied, above all, self-determination. It may be goaded into
the frenzy of despair and then subjected to massacre. The
other parts of the Empire, where subject races are striving
for freedom, will learn the lesson : their bitterness will grow
greater. There will be increasing unrest everywhere. The
civilised world will unite to condemn our treatment of
Ireland as it united to condemn the German treatment of
Belgium. Thus, after a few years of suffering and shame,
the British Empire will go down in blood and ruin." But
there is an alternative. A Labour Government, with a sense
of honour " a simple thing, in which our present governors
are totally deficient " can save the " British Commonwealth,"
which shall ** form the promise and nucleus of a true inter-
nationalism." " If the Irish are convinced that British Labour
means what it says, difficulties will disappear."
The Nation (December I3th) comments favourably on the
decisions of the Trade Union Congress. It is surprised at
Mr. Hodges' opposition to the General Staff scheme, but it
expects this opposition of the miners will be modified by
February. " Meanwhile the Congress is obviously sick of
soothing syrup from Downing Street," and it will be interest-
160
ing to ice how " Mr. Lloyd George treats its new
passports for a delegation to Russia. The
con that the ' icnt was preventing access to the
truth about the internal state of the cou Tke Nation
stat the election of Tom Mann to the secretaryship
of the A Brings back an explosive into the
His example is likely to rest passionately
oratory which has latterly yielded to the Josely -reasoned,
arguments; hods of men like Mr. Clyncs. Those who
nicd the developing statesmanship of the Congress
listen apprehensively to the sound and fury of the fierce battle
lr. Mann, Mr. John Ward, and Mr.
Robert is took part
IMui riting as the Special Correspondent to the
Di/y II f raid (Dec. loth), reports that at the German
pendent S >ci.ilists' Conference at Leipzic it was decided
pendent & v stands for the &
System, and aims at the building up of Councils of hand
and brain workers as organs for realising the dictatorship
he prolctar e Trade Unions are regarded as
: of the fighting organisation of the Soviet system-
" Thus," Mr. I Vice points out, 41 since the November
lut ion of last year, the Germans have undergone a process
of mental evolution which brings them, in all but a few
details, to the same general position as that of the Russian
Bolsheviks and the German Communists. And this change,
let it be remembered, has taken place in the strongest
Labour Party in Germany, numbering three-quarters of a
million hand and brain workers." It was further "decided
to leave the Second International and to declare that the
:.inds wholeheartedly for the Third Internationa!
Moscow.'* Mr. Price interprets the significance of this
change for the guidance of other Labour Parties, and con-
cludes that i4 it stands to reason that the other parties in
c, if they want an efficient international
Labour organisation, will sooner or later have to follow su
In other words, we suppose, if Germany will not follow
Western Europe, Western Europe must follow Germany.
161
FOOD FOR THOUGHT.
Of all the many evil influences that militate against
the attainment of industrial and social peace, the most
active and the least tolerable is rancour. Freed from this
blight, human reason could advance in other fields, with
the same certainty that marks our progress in the province
of science ; and human understanding, no longer hampered
by the distractions of party strife and class war, would
soon find a way out of our major embarrassments.
Wherever rancour flourishes, truth languishes and truth
is the sole corrective against the forces which threaten to
disintegrate society. Instead of that genius for compromise
which is supposed to be a British characteristic, and in
place of that co-operative effort without which the
advance of civilisation is impossible, we are now exhorted
to pursue the cult of Ishmael, bidden to put strife on a
pedestal and advised to adopt the strategy of the Kilkenny
cats.
The gospel of mutual extermination as preached by
political hotheads is less serious than dangerous. It is
even amusing. Thus Solidarity starts the ball rolling by
an appeal to the Rank and File to destroy the Labour
Party Mr. Smillie carries the game a stroke further by
insisting that "the first duty of the Labour Party is to
destroy Liberalism " ardent Radicals are more concerned
with the defeat of Toryism than with the task of com-
posing the differences within their own ranks, and the
hidebound Tory would gladly complete the circle by
excommunicating all who transgress the orthodox canons
of his particular creed.
But if political partisanship, carried to excess, is bad,
extreme class hatred is far worse. The former is like a
quartan fever that subsides when it has run its periodic
coarse, the latter is like a malignant cancer which grows
only when it destroys healthy tissue. Under the venomous
influence of class hatred, every rule of human conduct that
mankind has accepted as the result of centuries of ex-
perience is jettisoned without compunction, and a new
standard is set up, which submits to no laws but those
of force, and which excuses every crime that is committed
162
service of hate. Even murder, which civilised
has always c< t as altogether o he pale.
now condoned by those who cl.um to be in the vanguard
of
Commenting on the attempted assassination ol the
croy of I, The Daily Herald of December a and
gives a version of what it is pleased to call " Dublin
opii .-.M,l finishes off with a coat of whitewash, as
>ws : " And there is, too, a feeling that military
governors, escorted by troops, are some t Inn. very near
and tl: ' murderers * did, after .ill, come
out and face the soldiers' rifles. The attack was n<
shot in a dark street, unsuspecting policeman.*' We
suppose the term " murderers " is put in inverted <wtftf
because their ; irksmanship was at fault ; but even The
\ld must know that to talk of these would-be Tittiiftint
coming out to face the soldiers* rifles is sheer bunk
nor, so far as we can recollect, has The Herald been at
any especial pains to record its condemnation when
suspecting policemen " have been done to death by the
same type of miscreants as those who plotted to murder
Lord French.
If there is one lesson that the war should have
us it is that the appeal to force does not pay in the long
run. If there were any logical outcome of the unrcstri,
use of force, Germany would be master of the world
to-day. But those who lived by force, whose inspiration
was force, and who reduced the use of force to a science,
are now of little account, and this notwithstanding all the
rs of efficient organisation devoted to perfecting the
machine which, as we now see, was foreordained to ruin
the nat t put its trust in the right of the strong
to coerce the weak.
Discussing the question of increased production. Lord
Askwith declared that there were no less than 5,427 bodies
and or ions concerned with the settlement of in-
rial disputes and that fifteen hundred such disputes
had arisen during the first eleven months of the y
He calcuted that eighteen million working days would
have been lost by the end of the year. Small wonder,
165
under the circumstances, that production fails to keep
pace with dc and that rising prices continue to
neutralise the wages advances which are obtained with
such waste of ef
Amongst a number of '* points " for Labour candidates at
county and parish elections, Forward gives the follow
under " Housing ":
" If a house is built at a cost of a thousand pounds borrowed
money, over 3,000 has to be repaid during the repayment
period of sixtv \rars. That means that for every penny of
rent which goes to pay for actual materials, lalvnn, and
maintenance, twopence goes to the money-lender, who
neither produced the materials nor put them together. The
Government must supply money interest free.'*
Fortunately for the Labour candidates, elections are not
often lost or won by force of reasoned argument, or the
aspirant who relied on the " points " so thoughtfully provided
for him by the organ of the I.L.P. might find himself seriously
44 let down."
If a house is built at a cost of 1,000 borrowed at five per
cent., and if repayment is made in sixty annual instalments,
the amount of interest charged for the loan would be exactly
1,500, and not "over 3,000," as stated.
The calculation in Forward is based on the false assumption
that 50 interest has to be paid every year for sixty years
whereas, in fact, it would be reduced gradually from 50
payable for the first year, down to i6/8d. payable in the
sixtieth year.
Nobody wants to wait sixty years for his money and in
some cases where re-payment is spread over this exceedin
long period it is done to suit the convenience not of the lender
but of the borrower. The money-lender could do better by
investing his capital in War Loan. If repayment of the 1,000
is spread over twenty years the total interest payable at five
per cent, during the whole of that period would be 525.
Government has no money except what it takes from the
public in taxation. Therefore: if Government finds capital,
interest free, it is merely robbing Peter to pay Paul, i.e.,
financing one section at the expense of the others.
164
No. XXX
FEBRUARY
MCMXX
The business of those who believe in the
cntial virtue of private
enterprise is to remove us
INDUSTRIAL
PEACE
CONTENTS
Class Wai faro and the Dictatorship of t
Proletariat
Practical Economics, IX
The Case against Direct Action
Some Aspects of Nationalisation, II
The New Map of Europe
The New Unionism
Views of the Minority Press
Food for Thought
INDUSTRIAL PEACE
CLASS-WARI AKi: AND THK DICTATORSHIP
OF THE PROLETARIAT.
POLITICAL philosophy is a curiously local product. Theorising
about the State and society is impossible, of course, without
a reference to ideals and standards th.it ignore locality. I
it is local causes that lead to the theorising being undertaken.
Some theorists are inspired to think and write by admirat.
of what they find in the societies ti ly. Others, again,
write in order to protest against cu 1 fact, and to point
out the p.ith of reform, or inflame the desire for it. K
the views of the theorist who is in ardent revolt against the
facts that surround him are yet relative to those facts. His
resentment against facts and his zeal for change scarcely
guarantee, by themselves, the positive value of the suggestions,
or the policy to which his strong feelings lead him. Thus
political philosophy is often of more value as showing what
is, or was, being done in a certain society under certain
circumstances, than as defining what any society might be
expected to do under any circumstances whatever. Now
human society has ever been devoid of class distinctions, or of
a proletariat, or of tendencies towards the dictatorial method ;
and no two societies, probably, have shown an identical degree
of tension among the elements that compose them, or the
same balance of tendencies. The doctrines that reflect the
existing situation in one society may have very little bear
on another society. For comparative study of SOCK :
everything depends on the circumstances that tend to
accentuate or to modify the ambitions of some classes and
the depression of others. Unless the cases are genuinely
similar it will be dangerous to draw suggestions for the benefit
of one State from the special difficulties encountered by
another, and the solutions that may-have been applied to these
difficulties. Whether cases are similar or not, I
doctrines are continually being transplanted. Thus the
doctrines of class-warfare and of proletariat dictatorship,
which are being preached in certain quarters of this country
are transplantations. They have come across the sea. Their
habitat is Central and Eastern Europe. In the region that gave
them birth they reflected, not unfaithfully and not very exag-
geratedly, an existing situation. They illustrate that situation
106
by protesting against it, and by the tPfftfif character of their
L*estions for reform. These suggestions snow a cntSons
away from the modes and the spirit o! social
i> the protest itcH is directed*
; ;! in'. iiis country, the doctrines of class-warfare
(congruous and "Vir fill woes
prove thereby that
feet of historical sense am
imagination.
The doctrines of class-wai 1 class-dictatorship
from ssia. And why? Because
countries su are and such dictatorship have
1 from of old. It is fair to say that the
.ccn the classes in pre-war Germany was exceptionally
gre.t i- beyond aiuthm ; known in this country.
U existed between the &>o a I -Democrats
the other political parties ificant evidence of this.
was not that social or industrial differences made
themselves felt, not only in society but also in the Reichstag,
is embitterment of politics. The fundamental
c of all the class-tension lay in the dictatorial system of
government which prevailed in Gcrma That system
msly the normal tension between classes.
atonal politics necessarily react on social and indust
relationships. The government of Germany, despite some
isible merits in dct hat were carefully used so
10 impress foreigners, was simply a system of dictation.
The German people could not turn out its government, for
the government was responsible, not to the Reichstag or to
the people, but to the Kaiser. The dictatorial government
con be dealt with after the iiad been dealt \\
'.i w.is t i legacy of constitution-building that
Bismark left to Gc: :o Europe.
In Russia the realities of autocracy were displayed
than in Germany, though the Russian autocracy
Countries the two ideas of
government and rial method were intimately
associated with each other in the popular mind. What
follows from this is surprising, at first sight, but perfectly
natural. The ideas of reform arc themselves affected by the
pre ics of political dictation. Those who softer
pel d other disabilities under the autocracy reflect that
if the State is an agency of dictation yet some forms of
dictation are worse and some better than others. The best
167
form, obviously, i> lh.it in which the largest possible numbers
take a share in dictating and the fewest arc dictated
Thus, granted that dictatorship is a good thing, or rather
an unavoidable quality in the action of the State, the dictator-
ship of the proletari.it i> the best, or at least the n
unobjectionable dictatorship that can be 1 1
The dictatorship of the proletariat, therefore, is almost
the appropriate answer to the dictatorships of Kaisers,
Czars and War Lords of all sorts. It can be, of cours<
bloody and destructive answer. But it is only an
because the State as an agency is irremediably comp;
for both parties autocracy and proletariat by the prevalence
of the dictatorial method. Now dictation is wrong. No
matter what sections of a nation assume dictatorship, no
matter for what reasons they do this, the sectional dictator-
ship is fraudulent and retrograde. In a good many modem
countries the State has emancipated itself from the dictate
conceptions. It has gained greatly in these cases, in
adaptability, in elasticity, in moral control, in p<>
growth and enrichment, in tolerance and goodwill. A morbid
tenseness rules throughout the whole fabric of the dictatorial
State. No developed society, of course, can live without
tensions. As between the dictatorial State and the re:
erate State it is the vital question of relieving or not relieving
the tensions in wholesome ways, of turning or not turning
them into productive energy. Elasticity in a State is what
humour is in the individual. It is the prime condition of
self-control and effectiveness.
The cure for the evils of a State is not an alternation of
tyrannies, but the creation of machinery whereby sectional
dictation shall be made impossible. That is precisely what
responsible representative government has done for England.
That is what it will do, when it is given the chance
and time, for Germany and Russia. Yet a few men, who
claim to be thinkers, preach the proletariat dictatorship in
this constitutional country. They prove thereby their blind-
ness to the historical development of the State here, and to
the significance of the lack of it elsewhere in Germany
and Russia. There has seldom been seen such confusion of
political lessons. England was learning centuries ago the
lessons which Germany and Russia have not yet grasped
fully. It will be some time before the internal politics of
these countries can afford England any useful lessons in
state-craft. England has long ago done with dictators.
168
PRACTICAL ECONOMICS, IX.
VALUE AND PRICE, 2.
The Came* of Pffmat High Prioe*
Wi have s.u! that lly depend on the relation
between the total quantity of goods to be exchanged and the
I quantity of money. More accurately we should say that
icpend on the relation between the total purchasing
power of a country ant! the goods to be exchanged. By
purchasing power we understand not money in the ordinary
sense << and notes, but all forms of credit; anything
which cnal>Ics a man to transact business at a distance with
unknown agents. The conduct of the war created an
cccdented demand for goods and services of every kind.
rt, for example, of the clothing and feeding,
hou 1 transport of our vast army constituted a new
demand over and above our normal needs.
Vastly increased sums of money were needed to carry out
the new volume of exchange. The Banks were called
n both by Government and their private customers to
by far the greater part of the
power of the country is derived from the credit
1 l>y our hanking system ; from the use of cheques
hills of exchange I hy we 11 -known banks. Ordin-
umcnts represent a claim on money placed
h the hanker and have no permanent effect on the t
imc of pur. power. But in circumstances such
as those just described, the Hanks, seeing that their
the Government) cannot carry out necessary and
t limit more money than they actual
them with deposits at the bank, thus enabling
to c to write cheques and underwrite bills although
they have exhausted all their ready money. When this is
ijreat scale, as it was during the last five Tears,
volume oi .; power grows enormously and
becomes greater than is necessary to facilitate the total
of exchange carried out cs are high then
irrespective of the actual abundance or scarcity of goods,
because money is relatively more abundant. When, 2% in
the present case, for five years the resources of Europe have
69
been in part wilfully destroyed, and in still greater part
devoted exclusively to purposes of destruction, it is obvious
that prices are high because the stocks of available com-
modities are low. The deflation of currency would lo
prices, but the cost of all the necessities of life must still
remain high as compared to pre-war prices. We c
only obtain really low prices by so reducing wages, pr
anil interest, that we had individually only sufficient pur-
ging power to procure comparatively small quantitu-
the things we want The stocks of the ordinary necessities
of life are low, the machinery for their manufac out
of repair and their means of transport restricted. Prices
must be high or goods must be scarce until by our efforts
we greatly increase the flow of exchangeable commodities.
Prices and Profiteering.
It was stated above that the level of prices was always
affected in some degree by influences other than the inter-
action of supply, demand and cost of production. Monopolies
in general must be discussed in a separate paper, but some
of their influences on prices must be noted here. Profiteering
as a cause of high prices, whether it be the most important
or the least important, not unnaturally receives the most
attention and arouses the most animosity among the \\ !
body of consumers. The sense of justice is outraged and a
feeling of hate and contempt engendered for the individuals
who victimise us and the Government which allows, even
compels us, to play the role of the impotent victim. In its
broadest sense a monopoly is the power to sell something
which others cannot. Roughly speaking, when there is a
world shortage and demand far exceeds supply, all the sellers
have a partial and temporary monopoly. Competition
virtually ceases to exist. Price is determined only by
the amount of money at which the comparatively small
stock will be taken over by the consumers. This, as a
temporary condition, involves hardship and, unfortunately
involves uneven hardship where wealth is unevenly distri-
buted, but it is not in itself deserving of the censure so
generally passed on the trader. The conscious evil of
profiteering begins when any attempt is made to preserve or
artifically prolong the conditions of scarcity with a view to
private gain.
170
Importance of Change* in Price*.
If the general ' termined by the relation
purchasing power and the flow of
goods in the country, it is a matter of indiflerence, wit
one count r prices are high or low. The
poii matters is whether there are plenty of food* to
be exchanged within t! I question of
to foreign trade is excluded for the
a unless all economic relations
usteJ /><iri /NIMH with changes in
that is, in the declare
^v
> and some must lose whenever prices move up or
s no actual loss of wealth, hut the claims of one class
are increased at the expense of the claims of another. Under
our present system, economic relations adjust themselves
but sit. cs in price. When prices
rise creditors lose what debtors gain. On the other hand,
when prices rise interest n capital generally rises too, and
there is no definite connection between the two things,
- together and are mutually compen-
satory. Moreover, generally spcal. movements are
too gradual to affect debts '.-a periods. The present
exceptional circumstances are note wort'. The Government
of this country are debtors on an enormous scale and a large
i of their debts th ? undertaken to repay at f;
must repay whether the con-
>ns of the moment favour them or their creditors, and
the value of money the exchange relation between money
and goods at the time when the debts arc set
cry appreciable difference in the gains that will accrue
to } ils in proportion to the extent to wl
. were able to help the State with money during the
iod of war. If prices fall, wh.it the mdr. idi. tors
i the community will I se at large. In the particular
e we are discus- >*e who made monetary gains
during the war and saved them will gain more. The
SoK! the sailor, the clerical worker and the
class as a whole will lose.
The Net Gain of
It is uMi.il to regard rising prices as a sign of prosperity.
As a matter of fact. \ery steadily rising prices do bring good
results, mainly because they stimulate business enterprise.
However strongly one may feel the injustice aiui hardship of
the bias which many of our economic dealings seem to have in
favour of money rather than of individual worth or need,
\\c cannot afford to underestimate the all-important part played
by individual enterprise in tlu -sat isfaction of our want >. Ri
prices do tend to bring real and substantial > cmplov
of labour because changes in wages invariably lag behind changes
in price. To this extent labour loses what organisation gains,
and if over a very long period prices rise steadily, and money
wages remain approximately stationary, it is obviou^ that n-al
wages fall and ultimately wage-earners suffer not only relatively
but absolutely. This actually happened during the ten or twelve
years preceding the labour unrest of 1912. But the business
man's -ain from rising prices is not all at the expense of the
wage-earner. Neither does the wage-earner lose all that the
business man gains. Rising prices engender a psychological
force which makes a real addition to the sum total of produc-
tive effort and to the subsequent share of all in its product. The
more certain promise of success stimulates the organiser, more
labour is called for, employment is more constant. The energy
and consecutiveness of productive work depend almost entirely
on the " captains of industry.* 1 The ideal would seem to be a
gradual and steady rise in prices, to which wages are adjusted
more and more exactly and with as little delay as may be,
so that the increased wealth ctm be consumed, and the steady
demand which flows from a well-to-do working population
lessen, if it does not entirely abolish, the dangerous and ugly
phenomenon of over-production in a community where the
bare needs of many go unsatisfied.
All these actions and reactions of the system of exchange
and the use of money are worth our closest study and must be
understood and accepted before we can hope to get the best
out of, and for, ourselves as a State. The advantages of the
system are immense. The use of money alone makes large-
scale industry possible, but it is also the occasion of errors and
inequalities which might be greatly modified and corrected, to
the advantage of all, if properly and widely understood.
172
THE CASE AGAINST DIRECT ACTION
LAST month we published a tpeech in
ivours to prove tin- justice and expediency ol the ote
fines the term as " the use of power
fuse work by bodies of workers, in pursuit of aims that*
if I c order of society." i
class-war principle. The
>wer, he asserts, lies in industry, and on the plea that
iiulustry is ii - " servile and auto*
lie claims th.it direct is the workers' only weapon,
and "in the class war all weapons are justifiable." I i.r
expediency of the method, he continues, depends only on
wh in'cvc its object. I 'ton may be
inc. the nation as such, hut if it can achieve
victory in the class struggle, then, says Mr. Mellor. it
expedient. Quite simply put, the will of the direct actions**
section of soci- lie will of God and it is expedient that
it he imposed on all. In this gospel one recognises the creed
of imperialist Germany the refusal of the State to acknow-
ledi 1 Imt that of "power and expediency*'
! of Spencer's conception of Darwin's efficient animal
the pagan whose standard of right is a self-interest which
iit he subor
Mr. Mellor endeavours to knock the ground from under
the feet of those ^rho counsel constitutional and democratic
action by denying the existence of democracy. When
" economic power is the basis of all power " real democracy
can only mean democracy in industry. Tl ' Mellor
says, must be achieved by force.
But direct action is not contemplated particularly i
advocates as a continuous state : it is the revolutionary
weapon forged for the specific purpose of smashing capitalism
and establishing ttv socialist and democratic S
11 other considerations and
Mr. Mellor's own criterion, let us see how the case for direct
action fares at the hands of Karl Kautsky the ablest living
exponent of Marxism who, summarising the direct actioniet
amcnt in his recently published M Dictatorship ol the
Proleta ays: "Under democracy, by virtue ol which
the majority of the people rule, socialism can only be brought
about when a major it favour is gained. A long and
73
tedious way. We reach our goal far quicker if an energetic
minority which knows its aims, seizes hold of the power of
the State, and uses it for passing S< measures."
"This sounds very plausible," he continues. "It has only
one defect: that it that which has to be proved. . .
The first step consists in the suspension of universal
suffrage and of the liberty of the press, the disfranchisement
of large masses of the people ; for this must always t
place if dictatorship is substituted for democracy As
small shopkeeper*, home workers, peasants who are
1 off ami in moderate condition, and the greater part of
the intellectuals : as s< tor^hip deprives them
of their rights, they are changed into enemies of Socialism-
. Thus all those who adhere to socialism on the ground
that it fights for the freedom of all would become enemies
of the proletarian dictatorship."
44 Without doubt material well-being will lead many to
Communism who regard it sceptically, or who are b\
deprived of their rights Only this prosperity must really
come, and that quickly, not as a promise for the future, if
the object lesson is to be effective."
** How is this prosperity to be attained ? The necessity
for dictatorship presupposes that a minority of the population
have possessed themselves of the power of the State. . . ."
"Socialism . . . would only be possible thron
powerful development of the productive forces which capi-
talism brings into existence, and with the aid of the enormous
riches which it creates. . . . Uninterrupted progress of
production is essential for the prosperity of all The des-
truction of capitalism is not Socialism. Where Capitalist
production cannot be transformed at once into Socialist
production, it must go on as before, otherwise the process
of production will be interrupted, and that hardship for the
masses will ensue which the modern proletariat so much
fears in the shape of general unemployment."
" Where . . . capitalist production has been rendered
impossible, Socialist production will only be able to replace
it if the proletariat has acquired experience in self-govern-
ment, in trade unions, and on town councils, and has
participated in the making of laws and the control of govern-
ment, and if numerous intellectuals are prepared to assist
with their services the new methods. . . ."
44 It may therefore be taken for granted that in all places
where the proletariat can only ma -self in power by
a dictatorship, instead of by democracy, the difficulties
M Socialism is coi. are to great that it would
to be out of the question that dictatorship could rapidly
about prosperity for all, and in this manner reconcile
he masses of the people who are thereby
! rights."
fact, we see that the Soviet Republic.
i nine months of existence, instead of diffusing
proij . obliged to explain how the
arises."
It may be a sky says, that this indicates
more th the conditions are not ripe. But, he continues,
"docs it not sti how that an object lesson on the tines
of Socialism is, under these conditions not to be
44 So we are driven back upon democracy, which obliges
us to strive to enlighten and convince the masses. \Ve
must repudiate the method of dictatorship which substitutes
compulsory object lessons for conviction."
Thus Karl Kautsky condemns direct action because it would
not bring about the realisation of working-class ideals, li
, the Independent Labour Party, Mr J. Ramsay
.donald, Mr. J. R. Clynes, M.P. (General Worker
\V. Brace, M.P. (South Wales Miners.
(Dock Labourer), Mr. Tom Shaw, M P. (Textile W-.rkcrs).
hur Mayday, M.P. (General Workers), Mr. Ben Tillet.
M.P. (Dockers), Mr. T. Mallalicu, csident of
General I-'c ;i of Trade Unions, Mr. Arthur Mmdcnon.
M.P. (Iron Moulders), Mr. J. H. Thomas, M.P (Gen. Sec.
of the N.U.R.) .. Robert Blatchford, arc amongst those
responsible leaders of labour and socialist thought who have
definitely rejected Direct Action because it is not eipedir
The National Socialist Party at their Annual Conference
last August when Messrs. H.M.Hyndma Jones, M
and Will Thorne, M P., were the chief representatives
presentprotested against direct action because "it might
mean that the miners ihe transport workers two or three
trades by a simultaneous strike, could force the nation, the
democracy or the mass of the people, to adopt a course of
:i they had not approved or demanded."
The consensus of serious labour opinion is that direct action
is essentially undemocr tempts to impose by force
15
the will of a section upon the whole community. It is anarchical :
it recognises no authority save its own, no rights other than
its own interest-. It presupposes endless factions and per-
petual warfare. In the words of Mr. Tom Shaw il it is a
ie that all can play. There is not a class in society, f
the top to the bottom, that cannot make things awkward
for all the rest of society if it tries." I; is the negation
of all authority. " It would give to every section of the
community the right, in the days of a Labour Governm
to imitate the bad example which labour had set." (Mr.
Clynes).
Such arguments alone should suffice to warn Labour to
beware of what Mr. Robert Blatchford calls "the specious
declamation! of such ill-informed and irresponsible f
prophets as the Soviet-mongering apostles of direct action."
But there are other reasons and of a more positive character
why direct action should be rejected. The use of force
as the sole test of right must finally destroy Trade Unionism
f, destroy the one tried weapon on which Labour has
shed the patient endeavour of nearly a hundred years.
The examples of Russia and Germany suffice to prove that
the successful use of direct action does not mean the rule of
labour, or of the people, but the dictatorship of the minority
which is powerful or cunning enough to capture the seat of
power. On the other hand, as we have pointed out el
where*; "the irreconcilable right of a minority in a true
democracy, is that of converting itself into a majority, when
revolt becomes superfluous, and a revolution has been
achieved. 1 ' In spite of Mr. Mellor, the average trade unionist
will not be blind to the fact that our present constitution
contains, at least, the essential rudiments of a pure democracy,
and that his association with six and a half million workers,
representing as it does a very large percentage of the total
voting power of the country, is too powerful and too sure
a leaven to be abandoned in favour of the doubtful issue of
anarchical innovations.
Direct Action and Democracy, Industrial Pea<t, V. III. 68.
176
SOME ASPECTS OF NATION \ I ISAHOM
-le (sec No. IV., p. 115)
to the difficulty of reconciling S
.ill alum; the line with personal competition
>, based upon equality of oppor
v of achievement. The only alternative to
ition an lality is equality of
upon industrial compuliion. Kquality of payment is an ttfttl
...uld never be accepted, for, among other thing
opposes ind e conditions of work and equal
:ies of eif'it 1) c * there must be : and the $'
.Id l>r i.i. : 1 u problem of determining rate* of
incut exhibiting differences which would satisfy UhlFii
tests.
Clearly, re, a labour problem would exut which, in
practice, might prove even more difficult to solve than that
whuh existed before : ch stress has recently
been laid upon the contlict between labour and capital on the
one side, and, on the other, between producer (in the sense of
ma hant) and consumer. But it is clear
the ultimate conflict is between producer and
that the u lucer covers the industrial
as well as his employer. The conflict would
if the Socialist ideal were applied to every department of
omic activity, arid the State became the only
Trade Unions would continue to be necessary :
unionism would probably still be regarded as desirable by
many groups.
For there would always be dissatisfaction with the
of the State. If any homogeneous group (whether it be
of professional workers, employers or industrial wort
ted with the task of fixing relative payments for dirt-
ercnt classes of occupations, it would deal justly with all
after dealing generously with its own nportance of
h would be involuntarily exaggerated. Hence
difficulty of reconciling the relative claims of different
ay workers. This difficulty, in the general
d be fundamental in State-organised industry; and far
more serious than in a State-controlled industry within an
industrial community organised on a basis of private
in the latter case there is, at
;ie rate paid by public authority is subject to
the test of its effect upon workers employed elsewhere.
Again, in private industry, there arc obvious tests provided
for the claims of the workers. These are limited by what
'the market will bear'; if they exceed the limit a percentage of
the workers themselves will suffer through unemployment
created by the reduction in the demand for the goods which
they assist in producing. If, on the other hand, the workers
arc well organised and wisely led, their wa-cs may be made
to reach that limit. Here lies the value of conciliation Boards,
: task is to determine where, under competitive
conditions, this limit lies.
Such conditions would not obtain in a Socialist State. The
State, which we may assume to be democratically governed,
and wisely led, would determine, with the assistance of the
trade unions, the relative rates to be paid in different occupa-
>. And these would be the rates regarded as 'just' by
the community as a whole. But they would not secure peace
and contentment. An individual group would still regard
itself as underpaid, and would agitate, possibly strike, for an
advance. Here the real difficulty of the State would IK
There would be no room for arbitration since the principles
of payment would themselves be the question at issue. An
arbitrator could not be * independent/ nor could he be
entrusted with the task of determining government policy.
Even the policy of the State to-day on the subject of railway-
men's wages is not a subject which could be submitted to
arbitration, which is only possible where the question which
arises is the application of an agreed general principle to
local or peculiar circumstances, or is one regarding a principle
which itself is not deemed to be sufficiently important to
justify pressing. Again, there would be lacking the corrective
which exists at present, namely, the test provided by the
competitive force, which is found, as already shown, on the
4 market ' side, and on that of Labour. The State would be
regarded as able to * bear ' any advance demanded by the
workers.
The State would, therefore, be faced by insurgent bodies
which would deny, by implication, either th it the State had
been just to themselves, or that it could enforce what was
just to the community as a whole. Every strike would be a
strike against the community ; the declaration of a strike
would be tantamount to the declaration of civil war. The
point requires emphasis. It is assumed that democracy is
real and effective. It is further clear that there is no denial of
the right of the State to lay down just principles of payment,
178
an<! Me 4s>i*t4nce. i translate tuch
!es into specific terms of employment. The corollary
is the denial by the State of the <m the part
member* to trike ag linst the terms under which they are
c control uf
remove the cause* of
but in so far a nove their cause* it would he
war on itnkes. But it would inevitably
their 111.1*1 potent cause, which . not undcf-
pa\m ..!, but the fcelin titly based on fact) among the
y to others, And
r perfectly organised the S
ire themselves convinced that the
equipped to deal with their own individual
cases.
re too much to hope that the Socialist Stale
would be free from stnl. Hut these, when they occurred,
would be ruthlessly dealt with. The State would now be a
.e-brcakcr, and, even though its Socialism be bind upon
guild prin . as much authority would be
dele ic workers as they could bear, it would come to
he regarded a* a harsh and singState. Trade union
funds, if there were any, would not be available for distribu-
tion, for th 1 inevitably have been invested with the
ii would not be likely to release them for the
purpose of assisting the strikers to defeat iuelf. It is by no
means unlikely that a reserve army of workers would need
to be k >se of carrying on important Industrie*
in which strikes had occurred. It might even coerce the
Lcrs by refusing to supj h the necessaries of life
cs. For it would be the policy of the State
,c all necessary means of bringing the strike to an end;
and it early be necessary that the State should
in all cases, if its autb <: > to remain
else w lu
These dangers, it is suggested, are inherent in Socialism
If, rather than merely contingent upon impede
trat here arc others which would be
serious during the process nmg mechanical per
One example must suffice. Under the present system individ-
ual manufacturers may, and do, make mistake*. But so long
these arc not their consequence* are no*
serious to the community, though they may be fatal to the
turcr's business. What most compel;
v is a procession of firms, some of which lag behind ami
ultimately fall out. Others forge ahead, an ! maybe joined
by entirely new and vigorous firms. The leaders force others
to quicken their pace, and the procession moves forward, until
brought to a temporary halt by some serious obstacle, sucli
a financial and industrial crisis. If such industries were
nationalised, they would be controlled 'from the top,* and
the consequences of an error of judgment at headquarters
would be felt in all the controlled establishments. So m
illustrations of the danger of centralised control have been
provided during the war and afterwards that the statement
requires no elaboration. But it should be observed that the
organisation of industry for ordinary requirements in time of
peace is vastly more difficult than its organisation to meet
limited and specific requirements in time of war, and that the
danger of error at the centre is therefore far more serious.
The difficulty would be reduced to the extent that industrial
control was decentralised ; it would be removed by complete
devolution, giving powers to the managers of individual
establishments similar to those now enjoyed by their owners.
But it would be equally dangerous to separate such powers
from the responsibilities which are at present inseparable
from their enjoyment, from the consequences which now
follow upon their faulty employment, and from the str
incentive which now exists in the possibility of amassing
relatively large profits through foresight, rapid adaptation
to changing needs, and heavy initial expenditure. That is
the dilemma of the large trust, centrally controlled, for it is
well known that such an organisation tends to become
* top-heavy ' and relatively inefficient. It is the dilemma
which the cartel formation aims at solving by the separation
of commercial and purely manufacturing functions of an
industrial enterprise.
The dilemma would be more serious in a Socialist State
for the reason that the test would be lacking which is
provided, even for trusts and State industries, by the competitive
:em. One of the chief weaknesses of that system is that
it penalises failure too heavily, rewards success too highly
and sometimes interprets both success and failure too loosely.
A serious danger of the Socialist State is that it would fail
to penalise failure and reward success that, indeed, it would
;i fail to provide an adequate test of either. Where there
is no real test of effort it is difficult to provide any incentive.
1 80
I HE NEW MAP OF EUROPE.
business world is not unnaturally a little perplexed at the
inges which the IV aty has nude in the political
geography of I traders and manufacturer* are
no .1 ready getting used to such i
ikia, Serbo-Croatia, and Esthonia, but they want
i-.tc knowledge as to the boundaries, natural
iustries of these new countries, so that they may be
.v their own conclusions as to the kind of business
iy be able to transact with them. It has therefore
bee-. ;cd to publish month by month short articles
icse aspects of the new countries.
The present re-making of the Map is partly the outcome of
is of the Conference in Paris, and partly the
result of internal upheaval in the countries concerned. The
as a whole arc too many and too great to be taken in
at a glance. It is necessary to examine them one by one and
to see what they really amount to. The first difficulty is with
the names of the States, old as well as new. The new
names in many cases indicate peoples rather than territories
and suggest the part that race has played in tl
ic\v frontiers. Many of the old States, on the
hand, have bee d up, and the part to which the old
still remains is but a shadow of its former self.
The most important changes naturally concern the three
great 1 ral and Eastern Europe the German,
i, and the Russian.
The Germany of to-day is very different from the Gei
Empire - She has lost all the territory taken
e in 1870-71, together with the Saar Coalfield, while the
greater part of West Prussia, Posen and Upper Silesia are
led to Poland.
The I) irchy of Austria-Hungary is entirely broken
up, Czecho-Slovakia is carved out in the north, while
south the new Serb-Croat-Slovene State and Italy each
a portion. The exact boundary lines of the
Austria and of the new Hungary are still to be defined, bat
they are sufficiently distinct from the old to make them
ew States.
The great Russ pire no longer exists. Various parts
of it such as Finland, the Baltic Provinces and the Ukraine,
tSi
have declared their independence, while Russian Poland goes
to form part of the new Polish State.
But the changes go much further than the mere altir.it ion
of frontiers. New independent states have come into bcin^.
Each of them has to establish itself politically, socially and
economically ; and the third of these may almost be said
to be the most important task, because it so vitally c
the other two. Each State must have within itself the
elements of economic well-being. It must rely on the capacity
and industry of its people, and on its natural resources. If it
hi- not accumulated wealth of its own it must inspire sufficient
confidence to induce capitalists in other countries to come
to its assistance. And further, since no country is entirely
self-sufficing, and must of necessity have economic relations
with other countries, it must be able to develop an import and
export trade, must find markets abroad for its own goods, and
provide a market at home for the goods of other countries.
The succeeding articles will, it is hoped, supply such
information as to the general economic conditions prevailing
in these States as may be of use to those commercially
interested in them.
(I) POLAND.
POLAND is a very good example of the new States inasmuch
as it is based on nationality, certain parts of it have been left
to self-determination by means of a plebiscite and due regard
has been paid to the necessities of Economic Independence.
The new State of Poland differs from the Poland we knew
before the War not only because it has become independent
politically, but because it covers a very much larger geo-
graphical area. From the settlement at Vienna in 1815 to
the recent changes, Poland meant Russian Poland, whereas
the Poland of to-day includes the greater part of Austrian and
Prussian Poland, and a so-called " corridor " of land connect-
ing the latter with the Baltic. From the Economic point
of view this is a fact of first-rate importance. It means that
Poland possesses far more natural wealth, that her productions
are very much more varied in character, that she is far more
independent as regards the essentials of industry, and that by
the control of the Lower Vistula, and by her direct access to
the sea, she has the opportunity of becoming a great com-
mercial country.
The best idea of the resources and economic development
182
Poland will be obtained by *+altng separately with its ^th
coi Poland, n Poland (Gali<
1 Prussian Poland (Posen).
Russian Poland is 'v an agricultural COuatf| w
manufacture \ arc im|w>rt4nt and developing.
urc absorbs about four-fifth* of the working population
t be said to dominate the activities of the other
one-fifth iMnuch as it provides the raw materials for
of its in.muf.iciurcs for example, potatoes for
root for sugar, ami hops for brewing. Tkc main crops in
of import a i potatoes, rye, sugar-beet, oats, barley and
u 1 > once an exporter of cereals, the country's
present production is not even adequate for home nerds, and
e is a considerable import.
stan Poland is not rich in minerals. Coal, iron, tine,
lead and copper are found, but, as an industry, mining is
comparatively insignificant, and for some years before 1914
was steadily on the decline.
Manufactures on the other h.md have been TTiV'ftg rapid
progress. As already mentioned, sugar-refining, distilling and
brewing are important industries, and to these may be added
textiles ami, in a lesser degree, iron and steel, cement, starch,
leather goods, paper and tobacco. Before the war Russia
was the chief market for Polish goods, but the new
ical conditions will probably lead to an alteration in
respect. As an importing country Poland relied very largely
on the outside world for the raw materials for her industries,
for coal and coke for machinery, chemicals and dyes, and she
will no doubt continue to be a considerable buyer of these
goods. Warsaw is the great commercial centre of the country,
and much business is done at its two annual fairs, the wool fair
in June and the hop fair at the end of September. The principal
uulustri.il districts are in the Western parts of the country
with Warsaw also as their centre.
Austrian Poland is also predominantly agricultural.
She is, however, well provided with minerals, though on the
whole they are not extensively worked, the t wo main exports
in this respect being petroleum and salt. The former is the
more important. In 1914 the Galician oil fields provided
;>er cent, of the World's output and 9 per cent, of the
European. The export is very considerable as also is that
of Ozokerite solidified petroleum wax.
The principal crop arc rye. oats, wheat, barley.
but there is no surplus for export. Stock raising is a very
important industry. Horses, cattle and pigs, together with
various animal products, appear largely in the export returns.
About one quarter of the country is under foiest, and timber,
both raw and worked, finds a ready market abroad.
The manufactures are undeveloped, the most considerable
being food products and wooden articles, such as bentwood
furniture, barrels, etc. Consequently, Galicia relies on other
countries (before the war she relied chiefly on Germany) for
the textiles, leather goods, machinery and other iron goods,
fertilisers, etc., th;it she needs for domestic consumption.
Prussian Poland (Posen). Here, as in other par
Poland, agriculture is the main industry, but with this differ-
ence that Posen produces a surplus for export, especially of
rye, which is her principal crop, of live stock and of the
alcohol and sugar which are manufactured from her home-
grown potatoes and sugar-beet. The manufactures are for
the most part those dependent on local agriculture, to which
reference has just been made. For manufactured goods in
general, Posen has hitherto relied on German industry, but
in the future her markets would naturally be open to the goods
of other countries.
At present there is no uniform system of currency through-
out the new Poland. Polish marks, German marks, Austrian
crowns and Russian roubles are all being used. The Polish
mark is .much depreciated and a new currency entitled
"Zlotz" is shortly to be introduced. The " Zlotz " is based
on the Latin Union currency system. As regards weights
and measures, the metric system has not yet been introduced,
but there is a talk of putting it into force legally next year.
It may be inferred that Poland as a whole is likely in the
future to produce most of what she needs in the way of food
and to have some surplus for export, but that for manufactured
goods in general, as well as for most raw materials, she will
for a time continue to be an importing country. The indus-
tries of all three parts of the country which were formerly
hampered by their connection with Russia, Austria and Ger-
many, respectively, have now a much greater chance of
development, and the new national spirit added to the new
opportunities for communication with the outer world would
justify the expectation that commercially, as well as indus-
trially, Poland has a bright future before her.
THE NEW UNIONISM.
THE most significant fact in the Industrial World to-day is
the rise .f what is called the New Unionism The
covers several schools of political a Syndicalist,
Communist and Socialist. But all are at one in certain
immediate aims. Firstly, all are revolutionary, i.e.. they
aim at overthrowing the present social and Industrial
Secondly, all are opposed to the Old Trade
the system of Craft Unions, and seek to
large Industrial Unions or by "one big union." Thirdly. Ul
aim not only at Industrial, but also at Political ends. Fourthly,
all seek to attain these ends by what is known as M Direct
Ac; c., the use of their Industrial nrinieifson to
disorganise Industry, leading up to a M General Strike " which
shall, with the weapon of famine, compel the nation to submit
to their dictation.
The attitude of the New Unionist to the old Trade
may be gauged by the following passages from a
entitled " The Development of Socialism in Great Britain,"
issued by the Socialist Labour Pat
tie early Unions" says the author, " had no desire to
overthrow Capital, but merely to obtain better wages and
shorter hours of work . The cry of * No Politics
in the Union * was accepted as the motto of the Ui
. It was neither rare nor improbable for the
of a hundred years ago to become an Employer
Consequently, it is not to be wondered at that they
claimed hostility against the class to which they
to rise themselves.*'
s is an interesting admission, as it gives the key to the
whole psychology of revolt.
The author goes on, " Hence arose that form of Unionism
uln.ii is known as British and execrated as such all over the
globe by class-conscious workers of all natior.
included. Its main features arc (i) the Trade or Craft
of organisation ; (2) its disavowal of the
defence of what its constitution in many cases esplk
to as * the just rights of employer and workers,' Le n the
maintenance of the Capitalist system ; (3) its opposition to
working class political action."
A little further on he describes the British Ideal as " the
system of organised inter-trade scabbery known as ' Craft* or
radc ' Unionism.'*
He then attacks the Trade Union official. "The * Labour
Leader ' who to-day, in the face of the facts of history, in
the face of the awful results of Capitalist domination ....
with the knowledge of the steady decrease in wages, the
recollection of a hundred lost strikes .... still professes
to disbelieve in the class war and to believe in the discredited
and worthless system of craft organisation, is cither a con-
scious and deliberate traitor, or else is possessed of a degree
of absolutely fatuous stupidity that utterly unfits him to
exercise the functions of leadership .... low cunning, a
keen eye to the main chance and complete ignorance of
economic science, are the principal characteristics of the
Trade Union official.*'
In a passage setting forth the aims and methods of Indus-
trial Unionism the author tells us that, " The Industrial Union
organises the entire working-class in one Union. It breaks
down the barriers of trade and craft, of skilled and unskilled
labour.'* Further information on the subject may be learned
from a pamplet entitled " Industrial Democracy for Miners,"
recently published by the South Wales Socialist Society. In
this we read " no solution of the problem will be satisfactory
which does not limit the amount of work required of the
individual miner." In other words, the better workers are
not to be allowed to produce more than the worse. The
policy of the New Unionism appears to be based on the
fallacy that limitation of output secures work for all, and
therefore tends to raise wages, owing to there being no surplus
unemployed labour available. This is, of course, not true,
and a manifest injustice is done to the diligent worker, who
is not to be allowed to reap the fruits of his efficiency. Only
the inefficient could possibly benefit from limitation of effort,
even were the theory sound.
The falseness of the plea that a low output is the cost of
private ownership, and that a high output will follow the
transfer of the industry to the nation or to the workers, is
proved from the text of the above-quoted pamphlet.
" At frequent intervals," it says, "conflicts between the
owners and workmen occur, of such vast dimensions as to
threaten the disruption of the economic life of the nation."
As though these conflicts were not deliberately engineered
by the very persons who talk thus of their * occurring.' "These
* conflicts," it proceeds .... have sounded the death-
knell of private ownership. Some form of collective owner-
186
ship and control it seen to be immediately necessary if
the basic industry is to function at its full po*
Mark the last words, for only a few pages further on. H
contends that joint control hy the Miner* and the Star
open to the same objection so long as unlimited r*oduction
Compare this with the above-quoted pita that withe*
collective ownership the m lu-.tr . cannot "function at full
Could there be a more transparently frandttleat
argument ?
But that is not all. The document says, " State
and control lie open to the same objection as that
against the private coal owner, in that it would have the
essential l-isis. It would afford no consolation to the
to know that he was c\ to relieve national taxation
cad of for private pr<
So says the South Wales Socialist Society. But Mr. Smillie
on December i8th, addressing a meeting called by the Nelson
and Colne Labour Party said, ' The miners believed that hy
the el >n of private on cs mod land and
also the mM lie man, they could furnish an adequate supply
of coal and the miners would be prepared to it rain every rrr.
when they knew they were working for the Community
rather than for building up fortunes, to inrrras* output." In
the pamphlet already quoted, the South Wales Socialist
Society, on the other hand says, "Quite a number of iclisaei
ted to this end have been propounded, mostly centred on
the proposal to nationalise the mines, and to administer
under a Ministry of Mines, controlled by Parliament,
schemes offer no attraction to the miner, who sees in
only a proposal to nationalise HIM, together with the
But this is the very scheme advocated by Mr. Smillie.
speaks for the whole Federation, to which the South Wales
icrs belong. Then who arc we to believe?
The key to the mystery is furnished by an article which
recently appeared m'The IPMs* (the organ of the Scottish
rkcrs' Committee). The author, Mr. J..hn Maclean, says,
I Hie accepts nationalisation lor the
reason as the Reform Committee adopted the i\-
.-r .inline round which to prosecute the class-war
thus our class is being prepared for the final
overthrow of the common enemt. the propertied class
can rely on this fight led by Smillie and Hodges
.ight on to the final conflict. The advent of Tom Mann
as secretary of the A. a cheerful sign of the times,
tli.it the rank and file are prepared to thrust into power
declared revolutionists .... Smillie will not desert his
ivl if we decide on Communism, Smillie will go there
with us."
In other words, the miners' leaders are advocating National-
ion not because they believe it will n ve more
cheaper coal to the consumer, not because the miners want
it, but because the wirepullers believe it will lead .straight to
Revolution.
The whole plot is revealed in another notorious pamphlet,
"The Miners' Next Step," written for the South Wales
miners: "The antiquated method of striking on account of
grievances is to be discarded, and the method of 4 irritation
strike ' is to be adopted ; that is to say, the workers are to
remain at work while reducing the output." Surely this
affords an explanation of one cause at least of the pre:
coal shortage, and of the remarkable fact that in many pits
the output per man hardly exceeds what is necessary to earn
the minimum wage? The policy of the Revolutionaries is
obvious. They are manufacturing a case. They are injecting
the Industrial and Social poison for which they offer their
quack remedy. And they are restricting output now, hoping
that on nationalisation they can, by a sudden increase of
output, prove that the men do work better for the State, the
very thing which is denied above by the South Wales
Socialist Society.
The whole plan seems as though it were conceived by
"slackers" for "slackers," and is aimed at the honest and
efficient worker. It is well-known that if any hewer exceeds
the limit per day fixed by the Union, his number goes up on
the board, and pressure is brought to bear to make him obey
the autocratic rule of the leaders of the Miners' Federation.
But there are other respects in which the skilled or efficient
workman is at the mercy of the unskilled and inefficient.
In the case of the miner, for instance, there is a system in
some pits under which the hewer will not get his props or his
"tubs" unless he "squares" the shunter who controls the
points on the rails. Or take the case of the skilled rivetter.
If he is found to be doing more than the permitted number of
rivets per hour, it is easy for the " holder-up " to shift the
hammer by a fraction and the rivetter will take twice as
1 88
strokes to finish the job. Or the
I'ooltd tnntcttntly to
double the work. If the brickla too many
bricks his hodman can *low down, or the labourer who mur*
the mortar or cement c.m keep him waiting. Only those who
done tbe work themselves can realise folly to what
extent the skilled workman or mechanic is at the mercy of
his unskilled assistants. And tbe New Unionism obtains fo
among the ranks of
among the young " dilutees
luring the war.
On tbe other h:iml, at the present time there
more discontent among the skilled craftsmen than
led labourers, and fora very good reason. Owing to
:di war-increases in wages have been given.
tbe unskilled labourer has in general benefited more in
proportion th.in the skilled craftsman. Indeed, in many
lie mechanic hardly covers Ufc
in the cost of while the labourer, whose scale of living
ir days was lower, has gained very sobsUr
by the change. This is one cause of the apparent M mnumml
left" in the ranks of skilled labour. And tem-
porarily at least it has strengthened the hands of the extremists
tbe advocates of "direct act:
To recapitulate, the New Unionism is a revolutionary
movement \\-\\\.\\ attacks Trade Unions quite as fiercely
attacks the Capitalists. It also endangers the interest of
the skilled craftsman and the advantages it promise* the
unskilled workman are offered at the expense of the skilled
man, and at the expense too of tbe general efficiency of
National Industry- That such a system, if adopted, conld
not last, must be obvious to any thinking man. And in Russia
where the system of so-called 'Democratic Control** has been
r Communist Government the result has been the
collapse of indus: incredible suffering! famine
Before they decide to risk the experiment of National
the craft Unionists of Britain would do well to exam*
the origin, methods, and motives of those persons who
the New Unionism. Tbe movement is alien to
traditions and is promoted for tbe most part, by those
grained internationalists whose record
of defeatism abroad and suicide at home.
VIEWS OF THE MINORITY PRESS.
IN The Call of January 29th, Councillor A. Barton, of Sheffield,
has dealt with the question of " The Burden of Interest" in
a "A Study of Municipal Finance." He points out that the
Corporation of Sheffield owes 10,000,000. It has assets of
about 13,500,000, in electric power, water, tramways,
schools, sewage-works, parks, etc. He estimates that one-
third of the rates, a large portion of the tramway fares,
electric light charges, etc., go in payment of interest on
capital borrowed.
He suggests that the way to avoid what he describes as
the * burden of interest * is for the City authorities to issue
its own notes or currency, without paying any interest at all.
He contends that no confusion will arise from such a procedure,
having regard to the fact that no confusion arises from the
issue of cheques or bank-notes issued by different banks, and
that any difficulty that might arise could be avoided by a
national clearing-house.
Mr. Barton meets the possible criticism that capital is not
currency but goods, and that capital cannot be increased by
issuing currency, by the statement that this is one of the half-
truths which are worse than falsehoods, and that capital is
not strictly goods, nor currency, but the power to levy tribute
on labour. " In order to do this," says Mr. Barton, " it is
necessary for a minority of individuals to have a monopoly
of land and other means of production and labour."
While on one page of The Call Mr. Barton is thus advocating
further inflation of the currency, on another page of the
same paper, Mr. John Maclean quotes with qualified approval
an article on paper currency and high prices published in
The British Trade Review for January 1920, which urges the
deflation of currency. The contributor to the British Trade
Review argues that by the continued redemption of the
present excess supplies of paper money, prices of commodities
will be lowered. As soon as this happens, the worker will
perceive that his wages will purchase more of the nece saries
of life ; he will sell his labour for less; he will moderate his
demands and there will be a greater incentive to increased
production. " But," says Mr. Maclean, "the workers will
not accept lower wages." It is the business of Socialists to
190
urge them on to demand a minimum of jo/- per di
n is dead and cremate ' : tote* to
l>c more miserable for all until rnenaiunaiui coe*es t
fullness. The workers must not increase production until
tli-it ba I, finally, si. idicimg **
brother political-economist, Councillor Barton, Mr. Madeaa
<-s his by an appeal to hu reader* to
BURN liK \DIil I
Under the t.tl I he Curse of Piece-work," a writer
Solidarity that piecework breaks up solid*
forces the worker to labour at top-speed. \t the
end of the day . ... all his life energy bat gone into the
Boss's bank account. Piece-work also encourages rivalries
and jcalouses in the shop, preventing strong organisation, ttfH
thus i the Boss's hands again. It leaves the worker
in doubt as to how much money he will get in his nest pay.
<>rk keeps the wage scale down, by allowing
the luckier or more skilful \oorkcri to earn mere UMM tke
. . Piece-work makes the worker stand the
from accidents, unfavourable weather conditions,
machinery, bad shop organisation worst of all,
piece-work stimulates over-production and thereby
the day of unemployment. It is a trick of the Boss to
up the workers, keep down wages and increase profits. .
Time-work, like the abolition of overtime, reduces over-
production and thereby postpones the period of unemployment
inevitable under the capitalist system With time-work, the
slow-down' system becomes possible in cases where it
needed to bring the Boss to his senses."
" Intelligent fighters in the class struggle everywhere should
work unceasingly for the abolition of piece-work, because it
is a hindrance to effective organisation and action."
The spirit of this article is admirably expressed in a series
of verses in the same paper, entitled "WORK." the gifted
I of wlr.v h signs himself J. William Schweitier. We
quote one verse from this poetic get
Work.
Great God ! hut the fright
The (i.imn >Me, odious ught >i
rk that keeps us down in the mire.
And sets both the body and brain afire.
Oh ! what is so base as the crime of
The despicable, vile, filthy crime of fc.
And what is so cruel as the stem command.
Of the roaster who drives both brain and band
The S^ur, devoted to the dissemination of Communistic
ideas, contains an article by Edgar T. White-head, entitled
" Commonsense about Work," in which he writes: "With
the modern cry of * More Production ' for someone else to
enjoy it is high time some accurate thinking on this all-
important subject was propagated. If you want to see the
effect of work, look at a cab horse, and compare him with a
race horse, and there you have it. Note the lack of spirit
and natural energy, note the lack-lustre eyes, showing the
benumbed intelligence beneath, note the listlessness from
continual fatigue in our cab horse all these are the result
of work. .... The tiger does no work he basks and
sleeps more than half his time, but he is neither lacking in
beauty, nor spirit, nor energy. The native African similarly
passes his life in idleness and freedom from toil, yet he has a
more splendid body, a nobler face and finer eyes than any
Londoner can ever show "
** What we want is not more work but less work if we did
less work, and fewer hours, there would at least be a chance
of work for all who wished it, instead of perpetual toil for
some and starvation for others "
44 One other point on which clear thinking is necessary, and
that is the question of overtime. The man who does overtime
is openly immoral for, as things stand at present, he is just
doing some starving person out of a job. So, too, is the man
who works at a hot pace immoral, for he too is preventing
some other from access to work for subsistence."
"So long as this competitive system lasts and we have
production for monetary gain for the Boss, as the ruling spirit
over all work, it should be the avowed principle of every
Trade Unionist to work as few hours as possible making
the 6-hour day and the 5-day week one of the immediate
goals and to work steadily and easily, so that weaker
brethren not so blessed in health and strength do not have
to compete with the full resources of your brawn and
muscles. . .
192
FOOD FOR THOUGHT.
The projected alliance between manual worker* and that
somewhat net ulous conglomeration of individual* that ha
..r.. upr.I together urulcr the generic, but inaccurate.
likel'. results. In the
organised labour will ^ain not a few volet ami
will lc able to fight teats in con c* where iit lag hat
not hitherto !>ccn unfurled. Thit will mean that three
cornered contettt will become the rule instead of the
excei vl no teat will be safe for Const: r Liberal
at long as they distipate their forces in squabbling over the
non-essentials of antediluvian controversy. Sooner or Ulcr
nbinc to present a united front or find thcmteUet
anted by tl n.cr, \\lio, having all the ilmm that
45 to initiative, all the foric that goes with defm
purpose, and all the advantage that novelty confer*,
capture the spoils before the old-fashioned coaches have
begun to rumble or their occupants to realise that the race
has started.
That representation of Labour in the House of
can permanently be kept down to its present level i* n-
possible nor desirable. Danger lies, not in the gradual
leavening of the parliamentary lump, but in the abmpt
reversal of all our social, political and economic organisation.
!i would result from a too sudden inheritance of
a host of eager, inexperienced and militant iconoclasts.
an invasion in force is by no means an improbable contingency.
Recognition of the fact that Labour is a coming power in
politics is the first step in the process of visualising the
resulting transformation. Broadly speaking, one of three
things must happen. Either the Labour Party, at at present
constituted, and therefore quite unready for the task, wiB
suddenly find itself called upon to govern an Empire or a
transition stage will supervene during which it will increase
its parliamentary strength and experience without any great
change of personnel or the party will undergo a metamor.
phosis which will alter its nature, broaden its aims, supersede
caders and, to tome extent, remove itt temptations
Of these three alternatives, only the last two can be
regarded with any equanimity. Government by organised
labour in its present aggressive mood could not fail to be
disastrous, and for this amongst many other reasons. The
moderate element which, for the moment, is allowed for
strategic purposes to exercise its talents in the diplomatic
field, would be altogether out of the hunt when events begin
to gallop. What sort of chance would Messrs. Roberts and
Barnes, for example, possess if the sweets of office came to
market to-morrow ? How would Mr. Thomas fare at the
hands of Comrades Cramp and Williams ? What store is set
upon stale bread when highly spiced cakes are coming hot
from the oven ?
Things being as they are, we need not be greatly perturbed
at the threatened advent of the " black coats," for perchance
it is from that quarter that salvation will come. If any
section must rule, let the power be held by that section which
contains the greatest number of citizens and the greatest
variety of groups. Once the process of accretion begins it is
likely to continue in an increasing ratio until the Government
of the day is backed by a real and a convinced majority.
Before long the inevitable cleavage between those who are
always agitating for a change, and those who would leave
well alone would occur and then we should have reverted to
the old position of Radical versus Conservative.
Meanwhile there is much innocent entertainment to be had
out of speculating on the motives of the individual recruits
and watching the reception that they get when they first
enlist. Though Lord Haldane has not actually signed on, he
may be said to be sitting up and taking more than casual
notice. So far his overtures have been received with favour
and he may expect a formal invitation in due course. Colonel
C. B. Thomson is already a full private in the ranks of Labour
and has been adopted as a parliamentary candidate at the
next election. He is credited with knowing a thing or two
and may be relied upon both to deliver, and to experience
shocks.
m m m
The last-joined recruit is that octogenarian sailor, Lord
Fisher of Kilverstone, who gives six reasons for supporting
Labour at the polling-booth. It may be observed, incidentally,
J94
that people who do not poenni the Fisherian faculty far
argument by inversion, will arrive at conclusions diametrically
opposed to those deduced by the Admiral from the |inmim
he advances. His objection to government by bureaucrats,
> harrass every trade and fuddle all they touch.** is not a
very lucid reason for advocating State Socialism, not
easy to see how our financial position can be retrieved - K
iing less," at the same time if t tion ol workers ie
encouraged to force up wages, and consequently prices,
casing output. l...r.l Knhrr tcllt us that
simple and so otwious plan of getting rid of industrial m
ic v, ..I'KIM.- man sharing in the profits is carped at
omits to add that most ol the
i Is emanate from Labour Leaders, not from
Lord Fisher can do better than this when he tries, and if brain
Ivcrs are going to be of any real value to the Labour ca
they must not leave their brains on the door-mat, as
doff their shoes, before they enter sacred
Those black-coated brain-workers who aspire to high
political office, and who propose to use the rungs ol the La boor
Ladder for that purpose would perform a notable public
service if they would devote their attention to eradicating
some of the cruder fallacies which they will meet with m
their climbing. Much good work might be
of elementary economics, and many unnecessary
would be avoided if, for example, the difference bcf
money and wealth could be explained to the optimists who
propose to solve our financial difficulties by multiplying
currency notes.
Last month we quoted the Glasgow paper " Forward "
calling upon the Government to supply money, interest-free*
for building purposes. A Labour Leader in Belfast. Mr. Sam
cs, goes further when he asks why, instead of borrowing
money at five per cent., the whole amount of the War Loan
was not issued in Treasury notes, bearing no interest, and
four lunuiieil millions a year thereby saved. The isme idea
crops up again at Wigan, where the Labour majority in the
County Borough Council carried a resolution demanding
Government should supply Wigan with Treasury
notes at the cheap rate of eighteen pence a thousand for
financing housing and other municipal schemes.
$
Lacking any special knowledge of the Wigan Labour
Party, it is only fair to assume that, in their ignorance, they
have quite innocently taken the bait prepared by cleverer
people than themselves, and that their intentions are honour-
able. They probably realise that there is a point beyond
which you cannot inflate the currency without involving the
nation in economic ruin, but they persuade themselves that
the security provided by the proceeds of local taxation ;
their proposal on a sound financial basis. I5ut credulity is
none the less dangerous because it is innocent in intention.
m
The significance of such proposals is brought home to us
by Lenin's exposition of the part played by the manipulation
of currency in the organisation of revolutionary chao> In
his " Economic Consequences of the Peace," Mr. J. M.
Keynes says, " Lenin is said to have declared that the best way
to destroy the capitalist system was to debauch the currency.
By a continuing process of inflation, governments can con-
fiscate secretly and unobserved, an important part of the
wealth of their citizens. The sight of this arbitrary rearrange-
ment of riches strikes not only at security, but at confidence
in the equity of the existing distribution of wealth. ... As
the inflation proceeds and the real value of the currency
fluctuates wildly from month to month, all permanent relations
between debtors and creditors, which form the ultimate
foundation of capitalism, become so utterly disordered as to
be almost meaningless ; and the process of wealth
degenerates into a gamble and a lottery/'
S K M
* 4 Lenin," continues Mr. Keynes, "was certainly right, there
is no subtler, no surer means of overturning the existing basis
of society than to debauch the currency. The process engages
all the hidden forces of economic law on the side of destruction
and does it in a manner which not one in a million is able to
diagnose." It is a fact worth serious attention that the only
cry for a continuance of the desperate financial policy forced
upon us by the war comes from the ranks of revolutionary
labour. In this same connection the keen student of current
affairs will observe without surprise that the fall in the
value of the sovereign is viewed with unconcealed glee, and
chronicled with unnecessary persistence, by people who can
have no legitimate reason for satisfaction in its decline.
PLEASE DO NOT REMOVE
CARDS OR SLIPS FROM THIS POCKET
UNIVERSITY OF TORONTO LIBRARY
