october 1934

Alternatives Before British Labor

Sir Stafford Cripps

Volume 13 • Number 1

The contents of Foreign Affairs are copyrighted.©1934 Council on Foreign Relations, Inc. All rights reserved. Reproduction and distribution of this material is permitted only with the express written consent of Foreign Affairs. Visit www.foreignaffairs.com/permissions for more information. ALTERNATIVES BEFORE BRITISH LABOR

By Sir Stafford Cripps was IN 1929 when the British Labor Party asked for the second a no time to form government it had majority in the House was of Commons. It the largest single party but it could gov ern so as a only long it retained the support of considerable number an career of Liberals. At early stage in its governmental Mr. Lloyd George stated, upon behalf of the Liberal Party, that they would not support any measure of socialism. It then became clear was to that the utmost that Labor could do proceed upon reform more ist lines, similar to, but perhaps rather bold than, those which the Liberal Party could itself have adopted. a Unfortunately promises of definitely socialist character had been held out to the supporters of the Party. These had been en shrined in a document which was afterwards often referred to, was not so a as a "Labor and the Nation." It much program collection of proposals of all kinds, varying greatly in importance and in character. Some of them were definitely socialist, others no as to decidedly reformist, and order of precedence either time or in importance had been laid down. The supporters of the Party the House of Commons included persons of all shades of opinion, on one from the liberal-minded the hand to revolutionary social on went ists of the Independent Labor Party the other. As time on it became abundantly clear that the tactic of the Government a meas was not to ride for fall by introducing definitely socialist as as ures, but to remain in power long possible, carrying through measures as were such reformist possible with Liberal support. to see to meet Those who desired something effective done the more more deepening crisis of capitalism became and discon tented, until the Independent Labor Party members formed a a to themselves into definite attacking group with view forcing the pace. at as This had little practical effect the time, any issue upon which this were to vote the Government group prepared against to aid. But was brought the Liberals and others the latter's it was con not only in Parliament that discontent brewing. In the more more stituencies, too, the keener supporters became and dis so so appointed. Socialism had been talked of much and long that

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Party members believed in the reality of their leaders' intentions. a The excuse that the Government was in minority and that it more to had done than any previous Government alleviate the course lot of the workers helped hold them in line. But the of bye elections showed the Government's waning popularity. It is a common feature with all capitalist governments elected a upon wide franchise that they become progressively less popular the longer they remain in power. The workers who have been at election time soon to realize given magnificent promises begin were. how hollow and false those promises The swing of the is the to and im pendulum necessary corollary extravagant With a socialist it should possible electioneering promises. party nave was been different. This something new, and real hopes were a as entertained of fundamental change. However, time was new or was progressed, it realized that nothing startling out to a coming of Parliament. There seemed little choose between a or Labor Government and Liberal Tory Government; all made none extravagant promises, fulfilled them. came The real testing time in 1931. The financial difficulties in a Germany and Austria frightened the City of London, and when run on must started the pound sterling they decided that action be taken. Some day, no doubt, the true story will be told of the transatlantic telephone conversations which preceded the fall of were com the Labor Government, but these of small importance to was out pared the real issue that fought within the cabinet or whether consciously unconsciously. The moment had arrived when reformism had to be abandoned. It had necessarily increased the difficulties of the capitalists with their rapidly contracting no markets^, and it could longer be tolerated without the danger a were of complete collapse of the whole system. Two paths open: to allow reaction to take and to the concessions charge give up or to which had been extracted from capitalism; to proceed risk a the breakdown while making rapid change-over to socialism. was no It this latter possibility, doubt, which alarmed the City of London. Within the cabinet, as all the world knows, there was a division of opinion. Those who subsequently joined the National Govern ment was more to took the view that it important preserve the economic system than to attempt to establish socialism; the rest to felt themselves bound by their pledges the workers, though no they had very definite ideas of how next to proceed. In the 124 FOREIGN AFFAIRS

result neither the Labor Party nor Parliament was consulted, but a number of the party leaders entered into a coalition with a the combined capitalist forces under the guise of National Gov ernment with the obvious intention of saving capitalism. Within the Trade Union movement and the Labor Party there a is great tradition of loyalty. The leaders who had grown up with were the movement almost idolized; their pictures occupied the place of honor in thousands of working-class homes. It seemed to almost impossible Labor supporters throughout the country that three of these leaders should have joined the enemy, and was as to was there great bewilderment the meaning of all that a taking place. After short sitting of Parliament, during which were sundry reactionary emergency steps taken, the election of the autumn of 1931 was held. During the few weeks preceding the election the parliamentary as a Labor Party, which still remained strong opposition, fever out a new was ishly busied itself with working policy. It obvious that the whole circumstances had changed, and the definitely a socialist elements in the party insisted upon the necessity for decisively socialist program. Shortly before the election the party at statement held its annual conference Scarborough and the that was the whole policy of gradualism had been finally abandoned greeted with immense cheering. Indeed, in the first flush of the realization of the altered circumstances a much more advanced was was little policy adopted, but it hastily put together with not time for consideration. In the result, many candidates did appreciate its implications; many different interpretations of it were put forward from the party platforms; and every opportu was to to nity given the National Government supporters mislead as to its and content. the electors meaning When Lord Snowden, still then Mr. Philip Snowden, announced over the wireless that the very policy which he himself had ap was run proved in "Labor and the Nation" "bolshevism mad" at it was hardly to be wondered that the electorate became notes at frightened. The Prime Minister waved million-mark his audiences and explained the fate that would overtake the poor if the wicked socialists, amongst whom he himself had been numbered but a few weeks earlier, were to be returned to power. not so In this confusion and panic the wonder is that few Labor were but that so a vote was cast for an members returned, large ill-digested but distinctly socialist program. Over six million ALTERNATIVES BEFORE BRITISH LABOR 125 to electors stood by the Labor Party, but owing the combination a of all the capitalist elements in united front of Tories, Liberals and so-called National Labor less than 50 Labor members were returned. Disillusionment set in. The undignified squabbles that ensued in Parliament between members or the late Labor Cabinet who now to found themselves keen antagonists did nothing improve the situation. Apathy and despondency permeated the party was at can we and the question constantly asked meetings: How know that our present leaders will not desert us as our former leaders have done? This was a cry from the heart of the movement no mere a and superficial argument. It became obvious that much more statement as fully considered of policy must be formulated as a next the basis for propaganda and platform for the election. During the ensuing year the Independent Labor Party, which had drifted further and further away from the main party, defi a nitely severed its connection and constituted itself rival organi was zation. In the process it itself split in half between those who were to in favor of disaffiliating and those who believed it wiser movement stay within the and assist inmaking it definitely social a new ist in its policy. There had also been started body within the Labor movement, the Society for Socialist Inquiry and Propa success ganda (S.S.I.P.) which had met with considerable amongst were now left-wing elements of the party. Arrangements made to to bring together those of its elements which had desired remain affiliated and the members of S.S.I.P. At a conference held at Leicester immediately before the 1932 Labor Party Conference the was Socialist League formed out of these elements, with the late as a Frank Wise chairman. In Scotland corresponding body, the Scottish Socialist Party, was formed. Both the Socialist League new and the Scottish Party obtained affiliation to the Labor not some on Party, though without heartburnings the part of several members of the National Executive of the Labor Party. Before the Leicester conference it had become apparent that more were to the right-wing elements in the party beginning get nervous of too socialist At any? decisively proposals. Leicester, the executive which was more on the than ? considerably right the floor of the conference was defeated on the issue of the an nationalization of the joint stock banks. This was important matter even more as in itself, but important showing the trend of movement. thought within the Since that time many things have 126 FOREIGN AFFAIRS

happened in Europe and America, and these have had their effect upon thought and plans within the party. Economic nationalism has made headway in all directions and in the field of international policy there have been growing diffi culties and tension. But apart from all this there have been the to out a attempts by various nations work political means of eco solving their internal economic difficulties. The continued more nomic crisis in capitalism has rendered these efforts desper ate or more extreme. The three most outstanding experiments which have engaged the attention of the Labor Party are those in Russia, Germany and the United States of America. Russia has been proceeding steadily with her experiment in communism and, judged in the light of the difficulties of other met a countries, has with very considerable degree of success. She at as has last succeeded in bringing in the peasant population co-adventurers in the new the state, perhaps greatest accomplish ment of the whole revolution. The standards of life are low in when western or Russia compared with Europe America, though not when compared with Tsarist Russia. This low standard, how as a ever, has been largely self-imposed, in order that large volume of as be devoted to productive? energy? possible might capital ! to war. as a goods and alas munitions of With Japan neighbor, and with the rape of China before her eyes, Russia felt to to arm herself forced arm, and heavily. a Germany has witnessed revolution of reaction. Social democ which had a chance of the economic in racy, converting system not a 1918, did take that opportunity. Instead, reformist policy was was followed and economic power left in capitalist hands. war The load of foreign debt resulting from the and the perpetua tion of to some extent forced capitalism, upon Germany by cap to italist nations who looked her for reparations and deot payments, led to the breakdown of her industrial and financial structure. was no save There remedy that could capitalism which could be applied with democratic consent, so democracy was a swept aside and its place taken by dictatorship financed and supported by big business. The social democratic and trade union movements of Germany had been looked upon as the most were influential and stable in the world. When they wiped out in a the course of few days it came as a far greater shock to the Labor Party than similar events in Italy had been. Ominous, too, was no an the growth of this extreme form of capitalism. It was longer ALTERNATIVES BEFORE BRITISH LABOR 127 a isolated experiment in comparatively distant country, but a movement rather growing world the first evidences of which were in our own becoming apparent country. In the United States of America, President Roosevelt has ever staged the greatest experiment made in liberalism. With tremendous courage and determination he has set himself the task of saving capitalism, if such salvation is possible. This idea to more naturally appealed the right-wing elements of the Labor was some Party; in fact, the experiment hailed from labor plat as was not forms full of hope. It until the succession of strikes were showed that the American trade unionists not wholly satis fied with the development of the situation that doubt crept into even the minds of the most right-wing supporters of the Labor Party. The socialist element in the party frankly stated from the outset however admirable and the that, courageous experiment was to was might be, it bound fail unless the President prepared to assume the economic power in the state and utilize it to ter minate the chaotic injustices of capitalism by reorganizing the in dustrial life of the a socialist basis. That view I country upon was held and still hold; it reinforced by the conversations which I had when in the United States last spring. a came At later date the tragedy of the Austrian social-demo crats. a to It had for long been commonplace in labor speeches hear descriptions of the marvellous post-war developments in Vienna. The houses, schools, hospitals and social amenities for the were ex workers in the Austrian capital constantly held up as a amples of what socialism might do for great city. When the ad were ministrators and supporters of this r?gime forced against their will to defend their work and their party by force of arms were mown against the fascism of Dollfuss, and down in their to the effect work attempt protect social-democracy, amongst the ers was in England profound. One of the last citadels of social on a democracy the continent of Europe had fallen victim to the rising tide of fascism. was to At first the tendency in the Labor Party disregard as a sort fascism serious danger in England. That of violent action never to might suit foreigners but it would appeal the English man with his tradition for tolerance and constitutionalism. There was a tendency, which the socialists in the party attempted to to new as combat, look upon this phenomenon something purely as outcome political rather than the of the economic difficulties 128 FOREIGN AFFAIRS

that not of capitalism. When it became evident fascism only could be started but had been started in England the necessity new menace was for dealing with this generally acknowledged. But how? The right wing, like the Liberals, believed in stressing as an insistence upon democracy end in itself. The left wing took the view that some more effective and realistic program of action must be put forward if fascism's superficially attractive appeal was to be defeated. While agreeing that the militarization of must be far more a politics stopped, they placed emphasis upon as a means of bold policy of out-and-out socialism keeping the out of of the younger people especially the reach fascists. to build an The English press has tried very hard up antagonism between the Labor Party and the Socialist League, but with pecu success. liarly little The Socialist League represents definitely more some of the left-wing elements within the Labor Party. It is not in any sense a rival party. It neither puts forward candi or dates nor nominates candidates for local parliamentary elec so tions; in fact it is prohibited from doing by its constitution. It does, however, seek within the Labor Party to propagate ideas are to influence the in the that completely socialist and party more direction of advanced policies. laid down at its annual con The policy of the Labor Party is ferences upon the basis of reports and programs submitted by the at National Executive. At the 1933 conference held Hastings the was moment not party marked time. It felt that the had arrived was to dissolve the between when it necessary compromise gradu a alism and socialism. Since that time number of fresh policy an made to reports have been produced and attempt has been of the in a document en recapitulate the whole program party to titled "For Socialism and Peace" which is being submitted the conference at Southport in the first week of October 1934. The National Government has now been in office for three a years. There must, in normal circumstances, be general election not later than the autumn of 1936. It is possible that by necessity or for tactical reasons the Government may call an election it sooner, and it is therefore generally agreed that after this year to will be too late for the Labor Party make any major alterations the in its election program. It is essential that the propaganda for next until the election party should proceed from October general a statement authorized the upon the basis of final policy by at party in conference. It will therefore be necessary the South ALTERNATIVES BEFORE BRITISH LABOR 129

conference for a decision to be arrived at the port upon major issue: or how this issue will come gradualism socialism? Exactly up is not material; but itmust be presented to the conference and upon it the conference must decide. When it is this issue more a of tactic analyzed appears question or than of political economic beliefs. Undoubtedly the growth of non-manual workers, particularly in the managerial, technical and clerical grades of industry, of labor in together with the great extension largely unorganized a new to the distributive trades, has added problem those which mem must be considered by any social-democratic party. Every ber of the Labor Party is in agreement with the insistence upon to eco the use of the machinery of democracy bring about the to use an nomic change socialism. To that machinery electoral must be Two thus arise for decision. majority gained. questions? ? First, should the attempt be made at all cost to obtain that as soon as can a majority possible ?Second, how such majority be are of gained? Upon both these points there wide differences of opinion between the right and left wings the party. even at The right wing take the view that the risk of delaying to a at socialism it is necessary get majority the earliest possible are to moment. They therefore prepared modify the program in to extent to the direction of gradualism the necessary enable them to obtain the maximum support from radicals and pro stress gressives. They the disarmament and humanitarian sides of war to the peace and problem in preference the economic aspect. a The program gives the impression of definite though compara tively short reformist period before any serious attempt is made to deal fundamentally by socialist measures with the economic situation. Their position is somewhat akin to that of so many Americans who think that there would be a better chance for were name socialism if it disguised under another and the central means were feature of the socialization of the of production omitted from the program ! on The left wing, the other hand, insist upon telling the people must frankly that certain definite things be done immediately if to to it is be possible bring about the economic change demo are to neces cratically. They prepared take the risk of waiting, if a can sary, until sufficient body of electors be convinced of the a necessity for socialist program. They realize fully the impor tance of middle-class support but believe that if the case is pre 130 FOREIGN AFFAIRS

to voters sented these properly they will be prepared to follow more the bolder and logical lead.1 The decision taken by the Labor Party Conference upon this no or issue will doubt profoundly affect for good ill the party's moment electoral chances. At the present it is probably fairly accurate to say that the party could count upon over 8 million votes in the country. At the 1931 election it obtained rather over vote 6 million, while in 1929 its reached the peak figure of 8,362, 000. a To obtain clear working majority in Parliament it is reckoned that 15million votes would be required. Can the Labor Party add 7 million votes before the next general election? To that no one can an answer. If the question give present general to next economic situation continues up the election it is fairly certain that the 8 million votes will be to some extent increased; to no beyond that it is useless speculate. There is doubt that the effect of the virtual extinction of the Liberal Party has been to more to a make it difficult for the Labor Party get parliamentary vote vote majority. The combined capitalist will defeat the Labor in a number of areas where in 1929 the Labor candidate was a vote. elected because of split capitalist On the other hand, in a quite number of rural and "backward" areas there has been a remarkable growth of socialist opinion in the last few years; but it is doubtful whether this can do more at the next election than create large Labor minorities. as If the present slight boom in trade flattens out, it appears to be doing, and another decline then sets in before the next the number of those who are for a general election, prepared radical change of system might be increased. The National a to Government have had perfectly free hand try every capitalist our device for saving existing economic system. They have tried are now a on an them all, and thrown back upon reliance im at no provement in international trade. There is present sign of as any such marked improvement in this direction would assist them to a considerable of expansion exports. same There is developing in this country the conflict between a the agriculturist and the industrialist which is such potent factor in the American situation. In England the form which it at moment a has assumed the is strong urge from the agricultural

1 as See such books G. D. H. Cole's "The Intelligent Man's Guide through World Chaos," G. G. Mitcheson's "The First Worker's Government/' and the author's "Why This Socialism?" (all published by Victor Gollancz, London). ALTERNATIVES BEFORE BRITISH LABOR 131 to terms interests modify the of the Ottawa Agreements, and the are trade agreement with the Argentine, which they allege per mitting dumping of agricultural produce from the Dominions and to the Argentine upon the home market, the detriment of the a common English farmer. This is, of course, factor in capitalist countries where the private interests of the profit-earners of industry, agriculture and finance constantly find themselves in no a opposition. There is solution for such difficulty within cap a of some sort or another. italism, except by compromise moment At the the National Government is dealing with the situation by subsidies. The British farmer has already been completely freed from local taxation and has had large subsidies to given him upon his wheat, sugar beet, dairy products and meat. a To offset this policy it has been necessary to offer subsidy to to a no British shipping due the falling off of cargoes. For time, to doubt, this wholesale granting of relief producers of various kinds, who do not get the indirect assistance of tariffs, will be no popular. Subsidies will doubt buy many votes; but in the long run can no cure we they provide for the evil from which suffer. It may, however, have a considerable effect at the next election in one of two ways. The industrial workers as consumers may resent cost increasingly the increase in the of living brought about no by this policy; and the agricultural workers will doubt find or no that they get little share of the subsidies. This should lead to a growing unpopularity of the Government. On the other a a hand, there will be created for time spurious air of prosperity in the rural constituencies, little understood by the workers, as and loudly claimed by the Government the beginning of the not solution of their difficulties. It is possible to foretell which of these two influences will be the stronger. one There is final factor of great importance and that is the or war. question of peace Capitalism inevitably drifts towards war: economic nationalism is the precursor of economic rivalries which are root cause war. war the of In times of difficulty the spirit of a capitalism grows with its fears, and it finds too great solace in the that the manufacture of munitions creates argument employ ment. It is forgotten that the manufacture of many really useful create commodities would equally employment! In Great Britain on the National Government has changed its policy disarmament now a and has definitely adopted policy of rearmament, which will probably accelerate as time passes. 132 FOREIGN AFFAIRS

It was claimed in the first instance that the tariff policy and nationalism were measures of a but economic transitory nature, now an they have become integral and all pervading part of the rearmament Government's policy. Similarly the program which is now stated to be small and tentative will no doubt grow and a more more become and important factor in the Government's international The same who for and ob policy. people pressed are now tained the former pressing for and will obtain the latter. create a areas This will good deal of employment in certain where depression of trade has become almost chronic, and may produce the appearance of a considerable revival in trade. Although the workers desire peace, yet the offer of employment a to and the false cry of national safety will be great temptation them to believe that the National Government's action is justi fied. No doubt the Government will conduct a terrorist program to voters on frighten and intimidate the this question. Speaking on on in the House of Commons July 30, the Labor Party's vote of censure on increased air armaments, Sir John Simon indicated cannot this line of propaganda when he said: "I help thinking that there are some crowded towns in the Midlands and in the North, constituencies which voted without distinction of party for the return to this House of Honorable Members sitting in to towns at different places support the National Government, present quite open and unprovided against the possibility of air attack, which will be much interested to see how their faithful themselves on this occasion." representatives comport ? can How far such arguments if they be dignified by that ? to term will affect the electoral situation it is not possible say, but it does not appear unlikely that the National Government will attempt to fight the next election partly upon the basis of usual scare statements as to socialism and a war their partly upon course to panic. It is of the intention of the Labor Party educate so and inform the electorate that they may not be stampeded by to a such scares. Fortunately it is always far easier raise panic cry against the Government than against the opposition. to Reviewing the whole situation, of which I have been able seems to give only the barest outline here, it reasonable expect no that, unless something unforeseen occurs, there should be very great difference in strength between the socialist and capitalist next parties in the Parliament.