( Established January 1949 )

August 30, 1952 Volume IV—No. 35 Eight annas

EDITORIALS Praja-Socialist Merger 885 Praja—Socialist Merger Coal Conservation 886 WEEKLY NOTES T has been remarked that in India, as in many other south-east Asian To Protect Tanjore Tenants— I countries, the light for power is between Left and Further Left, Solvency for Sterling Area— This is the probable pattern of the struggle for power not only in Employment, Up or Down?— this region, but throughout the world. Communists claim credit for Where Has Cloth Gone?— the changed political complexion of the major political contestants in Hindusthan Motors to Manu­ any country. About the gradual transformation in the political judg­ facture Diesel Engines—Trade ment of rival political parties, there is no doubt. Some theoreticians With Western Germany 888 have, however, elaborated the thesis that this is the inevitable outcome of social democracy. Today the Tory Party in Britain is as much LETTERS TO THE EDITOR committed to Welfare State as the Labour Party. It is not without The Trio 891 significance that the Republican Party in America has chosen Mr Eisen­ TCA 891 hower, in preference to Senator Taft, as its presidential nominee. In OUR DELHI LETTER the last two years there may have been a shift from Left to Centre A Bold New Programme 892 in the Western European countries. But this has, and it is not without significance, coincided with a simultaneous shift from Right to Centre. FROM THE LONDON END There will be elections next year in many of the. Western European US Military Bases in Britain 893 countries. The future pattern of political parties in Western Europe OUR CALCUTTA LETTER will be keenly watched. But there are some who confidently predict Jute Exports—The Lost Trail that under a democratic system of elections based on adult fianehise, —N. R. Gopalakrishnan 895 the struggle for power must inevitably be between Left and Further Left. SPECIAL ARTICLES Bombay Tenancy—Promise and At the beginning of the year India undertook a gigantic experi­ ment in democracy. General elections were held. Every adult citizen Performance was, entitled to vote. For a vast country like India, the number of — M. L. Dantwala 897 Community Projects Administration votes polled was highly encouraging. It is widely admitted that, by and large, the elections were free and fair. It is also conceded that K. G. Sivaswamy 899 Trade Agreement between India the elections have proved what they are expected to demonstrate when they are based on adult franchise. In India, as in every other modern and Pakistan 909 State, the fight is between, so the election results have been widely FROM THE CHAIR interpreted, Left and Further Left. To the outside world, and to The Tata Iron and Steel Co. Ltd. 902 America in particular, the elections have levealed certain political Larsen & Toubro Ltd. 907 trends in this country which were not properly appreciated before January. AROUND THE MARKETS Mixed Sentiment 911 Even the Republicans in America no longer regard Pandit Nehru COMPANY NOTES as the "Hamlet of Asia". Even-they now recognise that Congress Bombay Mutual 913 does not owe allegiance to Communism. The emergence of Com­ Bombay Life Assurance 913 munists in the constitutional politics of the Republic has been inter­ Apollo Mills 913 preted as reflection of India's democratic instincts. But the elections CURRENT STATISTICS 914 have also been interpreted to mean that the political fight in India is between Congress, the Party of the Left, and the Communists, the Yearly Subscription post free Party of Further Left. Whether America and the outside world are India and Pakistan Rs 24/- right in regarding the election successes of the Communists as the Foreign RS 27/- emergence of a Party of Further Left, is doubtful. But America's atti­ tude to India since the elections indicate that she is willing to lend The Economic Weekly support to Congress so as to help it to win the country away from Noble Chamber Parai Bazar St, Communism. Fort, Bombay Phone: 23406 Within the country this classification of political parties is not August 30, 1952 accepted without reservations. Assemblies. But they polled a Even it the merger of the two Before the elections, the Socialists considerable number of votes. With political parties has no wider signi­ repeatedly proclaimed that they the exception of the Communists, ficance, it will be welcomed as an alone, and not. Congress, could save all the other political parties expe­ attempt to lay the secure founda­ the country from Communism. rienced the same fate as the Social­ tion of a party system of govern­ They reminded the electorate that ists in the elections. On second ment. More interesting it is to there were reasons why they seced­ thoughts, they realised that Congress speculate whether the experiment ed horn Congress alter independ­ had been voted back to power on towards a party system of govern­ ence. They implied that the forma- a minority vote. They also dis­ ment will be carried on with the tion of the Praja Party by Congress covered that the election successes merged Praja Socialist Party and " rebels ", led by Acharya Kripa- of the Communists were mainly clue the Communists as rivals, or, as lani, indicated the way (Congress to their superior tactics in concen­ the elections seemed to indicate, was going. They described (Con­ trating their efforts in a compara­ with Congress and the Communists gress as a Party of the Right. tively few constituencies. And the as the rival organisations. It is Pandit Nehru had the political Socialists did not miss the advan­ inevitable that the light must he sense to realise that this challenge tages that the Communists enjoyed between Left and Further Left. to Congress had to he met to in the southern States through their This does not necessarily mean that ensure its success in the elections. skilful alliances with the local, the Communists must inevitably be In his election speeches he empha­ splinter groups. one of the rival parties. India sised that Congress was fighting the Belatedly, the Socialists began shows no indication of going the elections on the issue of the Five rectifying their electoral mistakes. way of China. Developments since Year Plan. He graciously acknow­ Immediately after the elections the elections suggest that the Com­ ledged the principles of Socialism. they formed a parliamentary alli­ munist influence can be exaggerat­ But be pleaded with the electorate ance with the Praja Party. With ed, and has certainly not grown that by voting Congress it would the exception of Madras, where the since the elections. The Praja be supporting a Party whose policy Praja Party co-operated with the Socialist Party has all the character­ incorporates the essence of Social­ Communists to form the Opposi­ istics and attributes for being label­ ism. tion, these two parties combined to led a Party of Further Left. Hut Subsequent events have proved lorm a single Opposition bloc in can Congress be described as a how right Pandit Nehru was in Parliament as well as in State Party of the Left? Many have emphasising this aspect of Congress. Assemblies. Their merger to form their doubts and misgivings about It is no exaggeration to say that in the Praja Socialist Party is a logical Congress. Its approach to econo­ voting Congress, the people voted sequel to their parliamentary alli­ mic planning is far from Left. for Pandit Nehru. They had the ance. Common political ties bind Pandit Nehru has more than once conviction that Pandit Nehru would the Socialists and the Praja Party. warned that if Congress does not not let the people and the country Through experience each has real­ go ahead, something else will move down. They were assured that, ised that it may be difficult for ahead. Those who cherish social under Pandit Nehru's leadership, either to oust Congress from power, democracy will hope that the fight Congress would be prompt in imple­ but both can combine to form a between the Left and Further Left menting the Plan. They were im­ formidable rival to Congress. !f will be between Congress and the pressed with Pandit Nehru's argu­ the elections demonstrated India's Praja Socialist Party. There are ments that Congress alone had the democratic, inclinations, post-elec­ some who feel that Communism may not thrive in the soil aid machinery and the organisation to tion developments, culminating in sociovtvligious climate of India. execute a bold economic plan; that, the merger of the Socialists and Before the next elections the pattern the Socialists were doctrinaire and the Praja Party, underline the Re­ of the political parties will be more lac keel administrative experience; public's endeavours to establish a distinct. But if the light is to be that, he would exert his influence party system of government. Such between Congress and the Praja to force Congress to fulfil its elec­ a government can function only when there are two strong political Socialist Party, the former will have tion pledges if returned to power. to move further to the Left, and The people had, and have, faith parties in opposition to each other, so that the people can have a free the latter will have to develop a in Pandit Nehru's honesty and inte­ strong, organised and disciplined grity. They gave him the oppor­ choice between the two possible alternative governments. party machinery. tunity he demanded. Hut they left no room for doubt that they were prepared to give only a conditional mandate to Congress. Coal Conservation This is the wider political back­ ground against width the merger HE broad facts of the coal take time. Prima facie there would between the Socialists and the Praja T industry are well known. seem little point in stepping up Party has to be assessed. 'There are There has been an increase in pro­ coal production, merely to pile up structural reasons for the fusion be­ duction and a phenomenal rise in stocks at the pithead. tween these two parties. Imme­ exports but internal demand is not Conservation of metallurgical diately before and during the elec­ still being fully met because of the coal has engaged the attention of tions, the widespread dissatistaction inadequacy of wagons. 'Transport several committees with which the willi Congress was reflected in the still remains a problem, despite coal in dustry has been favoured. formation of many splinter groups. significant improvement in this There has been, until recently, a To a large extent the splitting of diiectioii also. Supply of wagons, general consensus of opinion in votes helped Congress. The Social­ however, has not been able to keep favour of conserving reserves of ists won few seats in the elections pate with coal production. Further good quality coking coal. There for Parliament, as well as for State improvement in wagon supply may are now, however, differences about 886