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‘Socialism’ and the Rise of the British Labour Party, 1901-1931: Views from Above and Below; part three – Labour’s Slump: 1929-31.   2 comments

Labour Arrives; Summer 1929:

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In response to John Gorman’s request for photographs for his 1980 book (see the list of sources below), Helen Hathaway of the Reading North Labour Party contributed the picture of women supporters of The Daily Herald at the start of the circulation campaign for the election of the 1929 Labour government. Under the editorship of George Lansbury, before the First World War, the newspaper had become uncompromisingly socialist and was a paper for rebels, supporting strikes, opposing wars and providing a platform for suffragettes and syndicalists. But during the war, Lansbury’s pacifist stance meant that it could not compete with the war stories of the right-wing popular newspapers which were avidly sought by the public. From September 1914, the paper appeared only as a weekly. In 1919, there was a resurgence of the paper, financed by the trade unions and Co-operative societies, but it continued to struggle until 1922 when Ernest Bevin led the TUC and Labour Party into joint ownership. ‘Labour has arrived’, proclaimed the poster proudly held by the working-class women lined up for the photograph, ‘heralding’ the advent of the second Labour government, as shown below:

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Elected in 1929 for the first time as the largest party in Parliament, the second Labour Government had succeeded the Conservatives relatively smoothly, largely as a result of the usual ‘wax and wane’ of party popularity with the electorate. The Labour Party was now the second greatest of the political camps in Britain, having clearly displaced the Liberal Party as the main rivals of the Tories to power. Though its professed ‘creed’ was socialism, it had little in common with the socialist parties on the Continent. Its backbone was the trade unions, which were, according to the writer and politician John Buchan, the most English thing in England. They were more radical than socialist and in a sense more conservative than radical. Their object was not to pull things up by the roots but to put down even deeper roots of their own. Their faults lay in occasional blindness of eye and confusion of head, not in any unsoundness of temper or heart. As a Scottish Unionist MP, Buchan recalled that the hundreds of new Labour MPs …

… brought to the House of Commons a refreshing realism, for they spoke as experts on many practical things, and their stalwart vernacular was a joy amid the clipped conventions of parliamentary speech. But larger questions they were apt to judge on too low a plane and with imperfect knowledge. The corrective was to be looked for in the socialist intellectuals, of whom they were inclined to be suspicious, but who applied to policy a wider education and broader sympathies. … as a group they were serious students of public affairs, with a genuine scientific apparatus behind them. It was well for Labour, and well for the country, to have thislaboratory of experiment and thought. 

It had been five years since Labour had carried the ‘Bolshie’ tag and Ramsay MacDonald introduced his Cabinet as chosen for very hard work and because I believe the nation fully believes they are perfectly competent to perform it. In the event, they proved as incompetent as any of the previous governments to stem the rising tide of unemployment.  But although Labour was the largest party in Parliament, the Labour government of 1929 was still a minority government. Besides, any government, whatever its election programme, has to face the same problems as its predecessor. On taking office, the Labour government floundered in a quagmire of conservative remedies for the worldwide slump. Pledged to solve the problem of unemployment, the newly-appointed ‘Minister for Unemployment’, J. H. Thomas, had boasted I have the cure as he ‘hob-nobbed’ with bankers and watched the number of registered unemployed soar. He demonstrated a complete lack of imagination and ineptitude but was not aided by the resistance of the Civil Service, the innate conservatism of Snowden at the Exchequer and the world-wide financial and economic crises which beset this administration. In her diary for 21 December 1929, Beatrice Webb recorded her conversation with ‘Jimmy’ Thomas, in which she tried to console the unfortunate minister, who naturally thought he was being scapegoated for the Government’s failure to keep its election promise:

We sat down for a chat together. The poor man was almost hysterical in his outbursts of self-pity; everyone had been against him and the ‘damns’ flowed on indiscriminately. Margaret Bondfield and her d_ insurance bill, the d_ floods, the d_ conspiracy between restless Lloyd George and weathercock W. Churchill to turn out the Labour Government, and the d_ windbags of the Clyde responsible for his not fulfilling the d_ pledge which he had never made, to stop this d_ unemployment. There is honesty and shrewdness of his deprecations of doles and relief work for the unemployed. But he took no counsel, not even with Mosley and Lansbury who had been appointed to help, either about the appointment of his staff or about remedial measures. Then he lost his nerve and with it his strength. Poor Jimmy is egregiously vain and therefore subject to panic when flattery ceases and abuse begins. For years he has looked upon himself as the Future Prime Minister; today the question is whether he will be fit for any position at all in a future Labour Cabinet. …

Labour’s Conservatives & Radicals:

Neither is there any evidence that the Labour Government of 1929-31 sought to abandon transference as the main means of dealing with unemployment, though Margaret Bondfield (pictured standing on the left below), now Minister of Labour (and first woman minister of any government), did not consider that the continuance of the policy should exclude attempts to attract industries to the depressed areas or to develop public works schemes. Oswald Mosley also tried hard to get Thomas, whom he considered a ‘useless minister’, to ‘do something’ about the unemployed. He had a ‘sensible plan’ for increased allowances and organised public works, but the ‘old men’ of the party didn’t want to know about it. So he walked out on it early in 1931 to form the ‘New Party’, taking some of the more dynamic men of the Left like John Strachey. But they soon left him when he took off down the right-hand road to Fascism. However, the scale and widespread nature of unemployment in these years, making it more than a structural problem in the ‘staple’ industries, tended to preclude either the possibility of a radical response to the problem, while at the same time preventing the effective operation of the transference scheme. There were few areas that were not experiencing a significant level of unemployment during these years which actually showed the greatest convergence between regional and national figures in terms of absolute volumes of workless.

 

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Ramsay MacDonald was, by all accounts, including that of René Cutforth, a young journalist at the time, a noble-looking creature, in the manner of some great Highland chieftain. Originally the Labour Government of 1924 had had some qualms about wearing even evening dress when attending Buckingham Palace or in Parliament, remembering the lone cloth cap in the House of Commons of their first independent Labour member, Keir Hardie. MacDonald never subscribed to such qualms, as the picture below shows, and the higher he rose in social circles, the more he was in his element. In fact, he became something of a ‘snob’; at one time he so frequently attended the soirees of Lady Londonderry, wife of the coalowner so hated in MacDonald’s own constituency in South Wales that, and an upper-crust socialite and political hostess, that James Maxton, the ILP MP asked him in the House of Commons whether the Labour anthem was still the ‘Red Flag’ or whether it had been exchanged for ‘The Londonderry Air’. Churchill said of MacDonald that he liked the Tory atmosphere and tradition; the glamour of old England appealed to him. Of course, MacDonald was to die with the curses of those in whose service he had spent his life ringing in his ears for the ‘great betrayal’ of 1931.

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The truth is that, even before taking office and despite its pledges to solve the problem of unemployment within three months, the Labour leadership had accepted Conservative economic philosophy. The proposal of the Chancellor, Philip Snowden (on the right of the steps below) to effect economies by cutting maintenance for the unemployed was to precipitate not just the political crisis which led to the formation of a National Government, but the biggest and most controversial demonstrations witnessed in Britain since the days of the Chartists, the hunger marches of the 1930s. Snowden, according to Churchill, …

 … viewed the Socialist creed with the blistering intellectual contempt of the old Gladstonian radical. To him Toryism was a physical annoyance, and militant socialism a disease brought on by bad conditions or contagion, like rickets or mange. …

Snowden’s rigidity of doctrine was otherwise inpenetrable. Free imports, nomatter what the foreigner may do to us; the Gold Standard, no matter how short we run of gold; austere repayment of of debt, no matter how we have to borrow the money; high progressive direct taxation, even if it brings creative enegies to a standstill; the ‘Free breakfast-table’, even if it is entirely supplied from outside the British jurisdiction! …

We must imagine with what joy Mr Snowden was welcomed at the Treasury by the permanent officials … here was the High Priest entering the sanctuary. The Treasury mind and the Snowden mind embraced each other with the fervour of too-long-separated kindred lizards, and the reign of joy began. …

... He was a man capable of maintaining the structure of Society while at the same time championing the interests of the masses. …

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Above: Forming the National Government, August 1931 (see full picture below).

Most of the published memoirs, with the possible exception of Churchill’s, still reek of contemporary prejudice, ignorance, and partisan blindness to facts. The historian’s interpretation of the contemporary judgements both of MacDonald and his ministers by others and by MacDonald himself should depend first on the evidence available, and secondly on analysis of this evidence on the basis of fair-minded, non-partisan criteria. The historian, seeking some ‘truer’ perspective, must recall how different the problems of 1925-31 were compared to those of 1945-51, though at both times Labour faced almost insurmountable obstacles. So, before we fast-forward to the failure and fall of the Labour government in 1931, we need to understand why and how it had accepted Conservative economic philosophy. John Buchan, writing in 1935, provides an alternative contemporary perspective to that of the Labour diarists. He took a longer-term perspective of the economic orthodoxy of the Twenties:

The main concern for Britain, as for other nations, was economic – how to keep body and soul together. In its preoccupation with material needs all the world had gone Marxist. The problem was how to pass from the unbridled extravagance of the war to a normal life. We had been living on stimulants, and we must somehow transfer ourselves from dope to diet. There was a brief gleam of prosperity just after peace, when the replacement of stocks required still further expenditure, and then the nation settled itself to a long, thankless toil in the shadows…

The first duty was to cease spending more than we could afford; no easy thing, for our obligatory expenses were almost beyond our earnings. We had to face some  eight thousand millions of war debt, and this meant a scale of taxation which crippled industry and bore crushingly on all but profiteers. … But while our costs had risen our business was declining. We had lost our industrial pre-eminence in the world’s markets … Our exports, visible and invisible, looked like soon ceasing to pay for our necessary imports. The whole nineteenth century fabric of British trade was breaking down. 

With shrinking markets, and the cost of Government, local and central, nearly three times what it had been in 1913, Britain’s economy was failing to pay its way. The fact was that industrial workers were already receiving a higher remuneration than could be justified according to the value of their products. The situation was met by a vigorous effort on the part of industry both to enlarge its range of products and to set in order its older ones. Agriculture had slipped back into a trough, but a second industrial revolution by which a variety of new businesses arose, chiefly making luxury products and based mostly in Southern and Midland England. There were also notable technical advances in production, which while improving industrial efficiency, also led to increasing unemployment. There was also a growing economic nationalism throughout much of the industrialised world, though not yet in Britain, so that the British industrialist, already heavily taxed, and facing rising costs, had to compete in export markets hedged around by tariffs, and in domestic markets against cheap foreign imports, often subsidised.

Added to all of this, at the heart of national economic policy was a banker’s policy. Deflation was the watchword of this, and the international stability of the currency was considered the key to a revival in trade. In April 1925, as Chancellor of the Exchequer, Winston Churchill had taken the fateful step of returning to the gold standard at the level of pre-war parity. As a result, the amount of money was curtailed, leading to a drop in internal prices while interest charges and wages remained relatively high. In turn, this added to the costs of production at home, while the price of exported goods automatically increased. This return to orthodox fiscal measures re-established Britain’s role and reputation as the world’s financial centre, but at the cost of its export trade, leading to wage troubles in the exporting industries, especially coal.  Seven difficult years followed this decision as unemployment grew and it became clear that some of Britain’s heavier industries had sunk to a permanently low level of output. Under the futile system of war debts and reparations, the debtor countries could not pay their debts since their creditors had erected colossal tariff walls, and the consequence was that their exports were diverted to Britain, the one free-trade area that remained. But the payments received for these were not used to buy British goods in return, but to buy gold with which to pay off their creditors.

The disaster was already imminent by the time Labour took charge in the summer of 1929 as the whole mechanism of the world’s commerce was out of gear, and the climax began in the autumn of that year with the downfall of America’s swollen prosperity. Historians have since argued about the extent to which the Crash of October 1929 and the Great Depression which followed were caused by the First World War, as well as to the extent which it led, in turn, to the Second World War. However, from the perspective of the time, certain facts seemed undeniable. The money system of the world was no longer adequate to deal with the complexities of international trade, made even more complicated by political troubles and economic nationalism as well as by the unbalanced position of gold, and by a lack of trust of politicians and bankers among the general populations.

Bleak Scenes, Hard Times:

The bleak scene shown below from April 1930 at Ferryhill in the north-east coalfield features the lone figure of George Cole, local miner’s leader and militant trade unionist. The small contingent with banners and rucksacks are the north-east section of the unemployed march to London, on their way to join another thousand from Scotland, Plymouth, Yorkshire, Lancashire, the Midlands and Kent. The first march of the unemployed in the thirties, it was a small demonstration compared with those to follow over the rest of the decade, but what gave it special significance was that it was the first of its kind to be directed against a Labour government. The march was organised by the Communist-inspired National Unemployed Workers’ Movement (NUWM), founded in 1921 as part of the British Communist Party’s ‘Class against Class’ policy. The marches, therefore, divided the loyalties of Labour members and supporters. Northampton Labour Party said that it could not support a movement in opposition to the government.

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The marchers arrived in London on May Day, to be greeted by twenty thousand at the entrance to Hyde Park, with another thirty thousand at the meeting inside. That night the weary marchers presented themselves at the Fulham Workhouse, refused to be treated as ‘casuals’, won the right to beds and food and, to the fury of the Workhouse Master, hoisted the red flag over their quarters. Ten months after taking office, the MacDonald government had failed to halt the steadily increasing number of jobless and in fact, unemployment had increased from 1,169,000 when Labour came to power to 1,770,000 by May 1930. After eighteen months in office, the numbers of workless under Labour had risen to two and a half million. Wal Hannington, the Communist leader of the NUWM, sarcastically remarked that as Minister of the Unemployed, J. H. Thomas is a howling success.

The conditions of working-class life had on the whole been greatly improved since the Great War. Higher wages did not lead to waste, but to higher standards of living. The average household had better food, better clothing, more margin for amusements and wider horizons of opportunities. Small wonder then that they struggled to maintain what they had won. That was for those in employment, of course. For the unemployed, who now (by the end of 1930) reached two million in number, there was a bare subsistence and tragic idleness, a steady loss of technical skill, and a slow souring and dulling of mind. In the heavy industry towns of Northern England and valleys of the South Wales Coalfield, unemployment became a permanent way of life, sometimes for whole communities. A problem of such magnitude required for its solution not only the energies of the State but the thought and good-will of every private citizen and public body. Owing partly to the work of the Prince of Wales and the National Council of Social Service, of which he was patron, these were forthcoming. People began to develop a  sense of personal and civic duty for the unemployed, especially the miners in the ‘distressed areas’.

By early 1930, the ‘social service movement’ had obtained a substantial footing throughout a wide area of the South Wales Coalfield in particular. At Brynmawr, one of the ‘blackspots’ on the northern edge of the Coalfield, over a hundred people took part in a Survey which was begun in 1929, but these were mainly professional and business people since the trade unions, the Labour Party and the Urban District Council refused to co-operate. As a former member of the ‘settlement’ reflected in the 1980s, …

… they felt that they had been slighted: they resented interference and they felt their dignity and authority undermined … the local people were suspicious of a group of English Quakers with middle-class backgrounds interfering in the town … the Quakers became known as the BQs (Bloody Quakers)!

Another settlement at Maes-yr-Haf in the Rhondda spawned over fifty unemployed clubs throughout the valleys from 1929 and provided an advice centre for the settlements which were established elsewhere, the first of which was at Merthyr Tydfil in 1930. Percy Watkins, Head of the Welsh Section of the National Council of Social Service, saw the settlements as representing the idea that those who had been privileged to enjoy university education should live and ‘settle’ among the workers. This was, in itself, not a new idea. Clement Attlee, the future Labour leader, had done this in the East End of London before the Great War. But what was new was the way in which these ‘settlers’ were to help open up ‘lines of communication’ between the coalfield communities and the outside world, to act as a means of cultural ‘irrigation’, in order to establish ‘an educated democracy’. Watkins and Thomas Jones, Deputy Secretary to the Cabinet before becoming Secretary of the Pilgrim Trust in the 1930s, combined to offer charitable help for Maes-yr-Haf for it to spread the settlement idea throughout the coalfield. At the beginning of 1930, it had become affiliated to the Educational Settlement Association and it soon became seen as a model of ‘intervention’ in working-class communities.

Some historians have suggested that the movement was not well enough funded to imply that the government saw it as a major barrier to revolution, but it was not the level of funding which the government itself provided which was significant, but the way in which civil servants were able to facilitate and direct charitable funds from the Mayors of various cities, the Society of Friends and those poured in by the Carnegie Trust and Pilgrim Trust. The last of these was established by the New York businessman, Edward S. Harkness, who provided a gift of over two million pounds. The trustees included Stanley Baldwin, Lord Macmillan, Sir Josiah Stamp and John Buchan. Although a Labour Government was in power committed to ending unemployment, these men continued to exert considerable influence over the affairs of the depressed areas both in South Wales and the North of England and over the Government’s policy towards the unemployed. It was the duty of the trustees, …

… to apply their resources at key points of the present distress,  … to prevent many places where moral and intellectual leadership is absent, from sinking into despair.

Meanwhile, in the spring of 1931, 2,500 unemployed marched on London and were met by a baton charge of police in Hyde Park. The march was broken up on what, for a time and for some at least, became a very rough occasion (see the photo below, taken later in Hyde Park). They had deposited an enormous petition which they hoped to present to Parliament in the left luggage office at a London terminus. When they went back to pick it up, it had ‘unaccountably’ disappeared and so was never presented.

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However, the numbers involved in such demonstrations were often limited, of necessity perhaps, to a small segment of the unemployed. As the depression worsened, the political energies of an increasing number of the unemployed were drained away by decreasing resources. Successful political agitation depended upon the addressing of the immediate issues facing the unemployed, such as the actions of the ‘Courts of Referees’, and matters such as these took up nearly all of the time of the Trades Councils in the late 1920s as well as bringing about the growth of the NUWM under the leadership of Wal Hannington. But the available evidence does not suggest any accompanying widespread shift towards the ideological position held by Hannington.

The Crisis of 1931 & The Cuts:

In early 1931, as the Labour government continued to pursue the traditional conservative remedy for a recession by cutting expenditure and wages, the whole European credit system sustained a near-fatal jolt when the Austrian bank, Kredit Anstalt, failed and had to be shored up with a loan from the Bank of England, among others. There had been a steady drain of gold from the Bank of England ever since the US loans had ceased to flow into Central Europe, and now the Bank of England asked the New York banks for a loan. They refused this until Britain had taken steps to balance its budget. The Cabinet turned to the advice of Sir George May, former Secretary of the Prudential Insurance Company and Sir Montague Norman, Governor of the Bank of England. At this point, few in the government were able to read the signs of the impending crisis. The warnings of the Chancellor, Philip Snowden, had little effect upon some of his colleagues, whose financial creed was a blend of mysticism and emotion. During the summer, a creeping sickness was spreading over Europe, and the symptoms were becoming acute, first in Austria, then in Germany and last in Britain.

The crisis came to a head in Britain in the late summer of 1931, beginning with a conference of European Ministers in London in July provided no remedy. At the end of that month, the May Report was published, showing that the Government was overspending by a hundred and twenty million a year. It proposed cutting expenditure by ninety-six million pounds, two-thirds of which was to be made by reducing maintenance for the unemployed by twenty per cent. There followed immediately a heavy withdrawal of foreign balances, but the Bank of England failed in its approach to the United States. Without the US loan, the Government faced the prospect of having to default on its repayments which would result in Britain having to go off the gold standard. The effect of that, the Government believed, would be a drastic reduction in the pound sterling, since the gold standard was viewed as a ‘holy cow’ in international financial circles at that time.

A programme of drastic cuts in Government expenditure was the only answer, and MacDonald and Snowden made a plan to reduce the pay of the armed services, civil servants and school teachers, and to cut unemployment pay by ten per cent. The TUC Economic Committee had warned in March 1931, that the application of such a policy can only intensify the slump by reducing the purchasing power of the community thereby leading to further unemployment. Now Ernest Bevin and Walter Citrine led a trade union delegation to a Cabinet Committee and declared total hostility to the cuts. Sidney Webb, now Lord Passfield and a Secretary of State in the Cabinet, told his wife Beatrice, the General Council are pigs, they won’t agree to any cut of unemployment insurance benefits, or salaries, or wages. But although the Opposition said the cuts were too small, half of the Cabinet refused to accept the cut in unemployment pay. There was much to be said for their point of view as they were, after all, a Labour government which had been committed to ending unemployment within three months of taking office. Unemployment had stood at one million then, but now it had reached 2.75 million: all they had been able to do for the unemployed had been to go on paying them ‘the dole’.

So the Labour Cabinet dug its heels in and MacDonald resigned on 24 August, together with the rest of the government. The stricken statesman went to the Palace to tender his resignation to the King, who had arrived in Balmoral three days earlier, on the 21st, for his annual Scottish holiday only to have to return to London the next day. It was not for him to have any public opinion on economic policy or any preference among the parties. But as the ‘trustee’ of the nation,  the King felt that a national emergency should be faced by a united front. According to many popular Socialist narratives, ‘what happened next’, almost inevitably, was that MacDonald conspired with a ‘traitorous caucus’ which included Snowden and Thomas, in forming a National Government with the Liberals and Conservatives. In fact, the common procedure was would have been for MacDonald to resign, and he was prepared to follow this constitutional precedent, giving way to the Conservatives, but the King’s view was supported by the senior  Ministers, and MacDonald accepted his invitation to form a National Government composed of Conservatives and Liberals as well as some of his own senior colleagues. The next day MacDonald returned to Downing Street to proclaim the appointment to a mixed reception from his former Cabinet members, few of whom were willing to follow him.

Divided Opinion & Reaction – Mutiny & Gold Standard:

Contemporary reaction to the Cabinet split and creation of the National Government in August of that year can be seen from two points of view in the following extracts from The Times and The New Statesman:

The country awakens this morning to find Mr MacDonald still Prime Minister, with the prospect of a small Cabinet representative of all three parties. The former Cabinet resigned yesterday afternoon, and a statement issued last night announced that considerable progress had been made towards settling the composition of its successor, which would be a Government of co-operation formed with the specific purposes only of carrying through a very large reduction in expenditure and raising ‘on an equitable basis’ the further funds required to balance the Budget.

All concerned are to be warmly congratulated on this result, so fully in accord with the patriotic spirit which has inspired a week’s most anxious negotiations. The Prime Minister and the colleagues of his own party who have followed him deserve in particular unqualified credit, both for the manner in which they took their political lives in their hands by by facing and forcing the break-up of the late Cabinet, and for their new decisionto translate courage in the Cabinet into courage in the country. The readiness to share the responsibility – honour is perhaps the better word – of carrying through to the end the policy of retrenchment adds enormously to the prospect of its success.

The Times, 25 August 1931   

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In many respects the situation which confronted the Cabinet was like that of August 1914. … In 1914, Mr MacDonald refused to join a War Cabinet: Mr Henderson accepted. Mr MacDonald was denounced as a traitor: Mr Henderson applauded. In leading arguments in ‘The Times’, for instance, Mr MacDonald’s patriotism is extolled, while Mr Henderson is denounced as a man who put party before country. Meanwhile, in Labour circles all over the country Mr MacDonald is being denounced … for betraying his party. … Mr MacDonald’s decision to form a Cabinet in conjunction with the Liberals and the Tories seems to us a mistake, just as it would have been a mistake for him as a pacifist to join a War Cabinet in 1914. For he must inevitably find himself at war with the the whole of organised labour, and …with all those, in all classes, who believe that the policy of reducing  the purchasing power of the consumer to meet a situation of over-production is silly economics. … An effort is being made to represent the whole issue as merely one of a ten per cent reduction in the dole and the refusal to cut it could only be based on cowardly subservience to the electorate. … We oppose it … because it is only the first step, the crucial beginning of a policy of reductions, disatrous, we believe for England and the rest of the world. …

New Statesman, 29 August 1931    

On 11 September, a supplementary budget was passed by the House of Commons, which by heavy economies and increased taxes provided a small surplus for that and the forthcoming year. The cuts were duly brought into force by Philip Snowden, who remained as Chancellor. He added sixpence to income tax, ten per cent to the surtax, a penny on a pint of beer, and reduced teachers’ pay by fifteen per cent and Police, Army, Navy and Air Force pay by varying drastic amounts. The dole was reduced from seventeen shillings to fifteen and threepence.

There was an immediate reaction to the wage cuts, as on 14 September a naval mutiny broke out in Invergordon when the ratings of three ships refused to obey orders to put to sea. According to René Cutforth, it was the ‘politest mutiny ever staged’ since no-one was hurt or even intimidated and respect for officers was fully maintained. The few ratings who started to sing ‘The Red Flag’ were considered to be out of order by the other ratings, who preferred to sing, ‘the more we are together the merrier we shall be’, a popular drinking song. They sent a written representation of their case to the Admiralty, stating that while they refused to serve under the new rates of pay, they were willing to consider ‘a cut which they ‘consider within reason’. Although the incident was barely mentioned in the British press, garbled versions of it appeared in the foreign press, which made it look like a revolutionary rising. If the British Navy was disaffected, it was suggested, then Britain itself must be on the road to ruin.

As a result, there was another spectacular run on the Bank of England’s gold. The government dealt quickly with the situation, reducing the cuts and restoring the status quo almost at once. Twenty-four ratings were eventually suspended. But the run on the Bank was so exhausting that the Government which had been formed just a few weeks earlier to safeguard the gold standard was now forced to give it up anyway. Instead of crashing through the floor, however, the pound only fell to about seventy-five per cent of its former value which, if anything, improved Britain’s balance of trade. John Buchan commented:

The gold standard proved to have been largely a bogy; it had seemed the only palladium when we were on it, but we found that we did very well without it. The sterling group soon became a force in the world. There was no fall in the purchasing value of the pound at home, and its depreciation in terms of certain foreign currencies was in effect a bonus to our export trade. We had redressed the inequalities of our 1925 ambitions.

Nevertheless, the psychological impact of this event on those now in government could not have been more dramatic, as Paul Adelman pointed out, with a little help from A. J. P. Taylor, in his 1972 book on The Rise of the Labour Party 1880-1945:

On 21 September 1931 … Britain abandoned the gold standard. Bank rate was then raised to six per cent, and for the moment this brought to an end the long-drawn-out financial crisis. As Taylor comments (in ‘English History, 1914-45):

“A few days before, a managed economy had seemed as wicked as family planning. Now, like contraception, it became a commonplace. This was the end of an age”.

MacDonald – Man, Motives & Myth:

In October, the Prime Minister went to the country as the leader of a National Government, and they were returned to power with an immense majority. The General Election of 1931 was a straight fight between the Labour Party and other parties in office led by MacDonald. In an atmosphere of monetary panic, Labour representation in the house had already been cut from 289 to 46. The National Government was returned with 554 seats, while the Labour opposition was reduced to a mere rump of 52, with the Liberals winning just sixteen seats. The country was convinced that the Socialists had brought the pound to the verge of disaster, and it had only been snatched from the brink by the noble MacDonald. The photo below shows the Transport and General Workers’ Union secretary, Ernest Bevin (on the left), at Gateshead in 1931, with a band of loyal Labour Party supporters. Abolish poverty, abolish slums, wipe out destitution reads the poster on the election van. It was Bevin that was to be wiped out, temporarily, from the parliamentary scene, losing a safe Labour seat to the National Liberal candidate by 12,938 votes.

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In the Labour Party, and in the Labour movement generally, there had never been such an uproar as the one which broke out at the end of the election, and the wound would still rankle just below the surface right into the 1970s. No name was too vile for MacDonald and his ‘apostate crew’. Accused of ‘betraying his class’ and ostracised by his own party, he became a tragic, isolated figure for the rest of his political life. Since he was at heart a warm man who needed sympathy and valued loyalty, this rough handling deeply upset him and was directly responsible for his decline and deterioration as a public figure. René Cutforth praised MacDonald’s patriotism, which he identified as the main motivation for his political decisions:

MacDonald was a Victorian. His loyalty to ‘the Nation’ was quite unequivocal. When it was seen by him to conflict with his socialism, it was the socialism that lost out. Though for the rest of his life he was quite sure that he had done his duty by the nation and was unjustly put upon, something in him gave way. … 

According to Winston Churchill, Philip Snowden was similarly motivated by his deep love of Britain and his studiously concealed, but intense pride in British greatness. So, these two key questions still remain for historians to answer:

  • Was MacDonald’s decision to form the National Government one of patriotism or pragmatism?

  • How far did it demonstrate the importance of the consensual nature of British politics, even in times of national crisis?

From the 1960s, historians have been able to look at MacDonald’s decision in a slightly longer-term perspective than just the crisis of July-September 1931 and the subsequent October election. Robert Skidelsky’s analysis of the second Labour government, with his emphasis on the distinction between economic radicals and economic conservatives, began this discussion in 1970, although Ralph Miliband had published his Marxist critique of Parliamentary Socialism in 1961. Perhaps Skidelsky had this study in mind when he wrote that previous studies of MacDonald’s second government had tended to reinforce the tendency to view interwar politics in terms of a struggle between socialism and capitalism, between the Labour Party and the ‘Rest’. The real division, between radicals and conservatives, cut right across party lines, with the latter defeating the former. This economic debate was centred on unemployment, ten per cent of which Skidelsky claims was ‘endemic’ in the 1920s. It was often argued that before Keynes’ General Theory (1936) governments were bound to pursue conservative, orthodox, economic policies. Yet, as Skidelsky pointed out …

… most economists and most businessmen at the time rejected the ‘treasury view’, and dissent from orthodoxy increased progressively as traditional policies failed to restore prosperity. By 1929 there existed a substantial body of economic and political support for a radical unemployment policy embracing an expansionist monetary policy and a big programme of government investment. … 

Why then, he asked, did the Labour Party fail to make use of this dissent for the ends of a radical unemployment policy? He argued that the consequences of that failure determined the politics of the following decade and that it was a failure that could have been avoided. Usually, criticism of MacDonald and his colleagues started with their handling of the financial crisis which began in early 1931, rather than with their omissions over the previous two years. But whereas between 1929 and 1931 there were plenty of effective choices open to the Government, in 1931 itself there was virtual unanimity on the need to defend the gold standard. But MacDonald broke with half his Cabinet, not over economic policy, but over primary loyalty:

As Prime Minister he considered his first duty was to the ‘national interest’ as it was almost universally conceived; the Labour Party saw its first duty to its own people. … The real criticism of MacDonald is not that he formed the National Government, but that under his leadership, the Labour Government had drifted into a position which left it so little choice. … the Government rejected Conservative protection, the Liberal national development loan, the Keynesian and Mosleyite amalgams of both, preferring instead the advice of the least progressive sections of the ‘economic establishment’.    

Skidelsky’s ‘neo-Keynesian’ approach was challenged by Ross McKibben in his 1975 Past and Present article, who criticises the narrowness of an interpretation which was chiefly interesting as an explanation of the Labour Party’s apparent economic conservatism, but didn’t properly identify the alternative strategies available to MacDonald. McKibben provided some useful comparative material to support those who argued for a deflationary policy. He argued that the government fell essentially because it failed to agree on a programme of budgetary economies that would satisfy both the Conservatives and the Liberals, the latter party providing the majority which Labour, by itself, was short of in the Commons.  McKibben emphasised that …

The ‘desertion’ of MacDonald caused great bitterness and generated a partisan history usually designed to justify the behaviour of one side or the other in the debacle. … a newer school has sought only to explain why the Labour government did not adopt economic policies which might appear to have been obviously the right ones. Why did it not, for example, attempt to reverse economic contraction by a programme of public works financed by budget deficits, or by tax-cuts, or a policy less untypical of a socialist party – by a redistribution of income that might have raised demand? Why was the government apparently so inflexibly attached to existing monetary policies?

The 1929 Labour government assumed, first, that the problems of the British economy were partly structural, and secondly, that Britain’s place in the international economy almost uniquely influenced its monetary policies. These assumptions were related: structural weakness in the older export-based industries led to falling exports and payment difficulties. On the other hand, the requirements of ‘the City’ led to monetary policies that made internal economic reconstruction difficult. Both these problems weres were powerful disincentives to economic unorthodoxy when it had become obvious that British industry had failed in the Twenties because it was still focused on the old staples, producing goods that people no longer wanted or needed. McKibben further argues that there were practical alternatives available to the Labour government, but these were not ‘drift or reflation’ but rather ‘drift or deflation’. This strategy would not have been such a ‘leap in the dark’, as there was already plenty of evidence from around the world of its efficacy as a remedy:

Until the crisis of July-August 1931, Britain alone of the major countries seriously affected by the depression refused to follow deflationary policies. Her relatively generous social services were not only maintained but somewhat increased in scope; despite the shrinkage of the tax-base, government expenditure continued to rise; no serious attempt was made to balance the budget.

Consequently, when the pressure to abandon drift and adopt deflation became too strong, the government collapsed. Two pressures came together, in fact: the pressure to solve Britain’s internal budgetary problems by deflation which reached a peak when the May Report was published on 31 July, and, almost simultaneously, the pressure created by the European liquidity crisis reaching London, which immediately called into question the exchange rate of the pound. The budgetary crisis and the exchange crisis had been distinct phenomena before this point, but throughout August 1931 they played off each other like thunder and lightning in a perfect storm.

Adelman provided some useful criticisms of Skidelsky’s assertion that the economic failures of the Labour Government before the crisis of 1931 were a necessary consequence of the ‘Utopian ethic’ to which the party was committed. On this, Skidelsky had written:

The Labour Party’s commitment to a nebulous Socialism made it regard the work of the ‘economic radicals’ such as Keynes as mere ‘tinkering’, when in fact it was they who were providing the real choice. It was the failure of the Labour Party to recognise that this was the choice that doomed it to failure and sterility in this crucial period.

In a subsequent article, published in the Society for the Study of Labour History Bulletin in 1970, Skidelsky went further, arguing that the Labour Party’s failure was a failure, not so much of socialism itself, but of Victorian liberalism, the parent ideology from which British socialism sprang and which, in its economic aspect at least, had persisted virtually unchallenged well into the twentieth century. Adelman argued that both Skidelsky’s original thesis, and this later refinement, seemed to exaggerate the influence of ideas, or their absence, as an explanation of economic and political events. Motivation is one of the primary interests of the historian, who cannot explain events without understanding the reasoning behind the people actually involved or connected with them. To deny its importance seems to imply that human action is somehow controlled by impersonal factors like economics or political philosophies, and this would lead on to a deterministic view, and a de-personification of history. Adelman argued the case for the analysis of motives behind MacDonald’s actions, suggesting that the second Labour Government’s failures had rather deeper roots in human psychology:

How are we to explain MacDonald’s conduct? It is probably true that, as his critics aver, he was a vain, ambitious and increasingly out of touch with rank-and-file sentiment  within the party, and this explains his inability to appreciate the depth of feeling over the ten per cent cut. But there is no real evidence … that MacDonald was either in sympathy with or had been planning to become leader of a ‘National Government’ before the events of August 1931 thrust the role upon him. For a generation after this crisis Ramsay MacDonald was branded as a traitor to the Labour movement, but most impartial historians now agree with the spirit of Bassett’s remark that ‘he was moved primarily by his sense of duty’, even though we need not accept his further implication that what was good for MacDonald was also  good for the Labour Party. What gave weight to MacDonald’s actions too was his belief that his leadership of the National Government would be temporary: as he stressed to his colleagues at that last fateful Cabinet meeting, it was to deal with an extraordinary crisis only, and, as had happened in 1918, he would return to the fold later on to lead a reunited party. 

For his Labour colleagues, as MacDonald himself seems to have accepted, the position was different: for them the primary issue was one of party loyalty and not the question of the unemployment cuts (over which the gap between the two groups was very narrow), or a vague ‘national interest’ over whose meaning no one could agree. After all, a majority of the Cabinet had supported all of the cuts, and even the minority must have accepted that they would in any case be imposed by the next Conservative/ Liberal government. For most Labour ministers the major question was, therefore, … how to avoid a major split within the party, and on this issue a majority preferred to resign together rather than follow the Prime Minister into the National Government and accept a major breach in the Cabinet and the party. 

The Dole, ‘Dope’ & The Means Test:

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The newly-returned National Government not only cut the dole by ten per cent but also introduced the means test. The photograph above shows a protest meeting developing spontaneously among the crowd of disappointed unemployed outside the St Pancras Labour Exchange in London. Of all the blows which fell upon the poor and unfortunate in the Thirties, whether by accident, intelligence or design, this measure was the best calculated to divide the nation and the most bitterly resented. The dole had grown out of the old poor law system and the old unemployment benefit system when, back in 1921, it had proved inadequate to cope with the new scale of mass unemployment. The unemployment fund had had to thirty million pounds from the Treasury in order to finance ‘the dole’, with a new bureaucracy growing up to administer it, which after 1931 enlarged itself to administer the means test. The unemployed man who had come to the end of his insurance stamps was now at the mercy of the Public Assistance Committee, empowered to enquire into every halfpenny that found its way into his household, camping out in his front room and then adjusting his dole accordingly.

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There was not much The Labour Party could do to help the unemployed and defend them against the cruelties imposed by the means test since it had put itself out in the cold in 1931 and remained there for the rest of the decade. Outside Parliament, protests and demonstrations were mostly led by the Communist Party and the NUWM. Labour politicians polished up their propaganda and tried to formulate a clear alternative to ‘MacDonaldism’. For a time its leader was yet another Victorian figure who had been in MacDonald’s cabinet before the split. George Lansbury was a Christian Socialist of real integrity and piety. His line was that all would be well when we had complete Socialism and power as well as office. In the meantime, he encouraged his comrades to sing the ‘Red Flag’. John Strachey wrote Marxist books and articles and gave speeches in which he seemed to hover between Fascism and Communism. On the Left, the Independent Labour Party, a few revolutionary Socialists, retained their seats. The most notable and charismatic of these was James Maxton, with his fringe of black hair falling across his burning eyes and reaching his shoulders, looking as if he was ready at any moment to ‘Man the Barricades’. Another ILP MP, John McGovern, recalled his intervention in the King’s Speech following the 1931 Election:

I happened to be standing beside Lady Astor M.P. , and she said “McGovern, this is a wonderful scene. This is what makes Old England such a great nation.” I replied, “But there are two Englands …” (As the King finished his speech) I called out, “What about the restoration of the cuts in unemployment allowances and the end of the Means Test?!” … 

The return of the National Government led to the Social Service movement becoming a clearly recognised substitute for direct State intervention. The Cabinet took the decision that neither local authorities nor the Central Government should assume direct responsibility for welfare work for the unemployed (but that such work could) more appropriately and effectively be undertaken by private agencies with limited financial help in appropriate cases from National funds. The role of the National Council for Social Service as the main agent in this was soon established by its patron, the Prince of Wales. In political, social and economic terms, the year 1931 marked the end of the Victorian régime which had given Britain prosperity. Changed conditions forced it to accept some degree of economic nationalism, and free trade of the nineteenth-century form had departed for good. The corporate effort of total war had led, eventually, to a greater acceptance of the need to seek collectivist solutions to modern problems, like the onset of mass unemployment. Capital came more under state control and direction because it had to seek the support of the State more often. In addition, there was a collectivist stimulus to clearer thinking and Planning. This was to bear greater fruit later in the decade. It was no longer simply a matter of ameliorating the effects and defects of industrialisation, but of transforming industrialism itself.

Socialism, Parties & Patriotism:

Yet the phrase, ‘the new socialism’ remained a misnomer. Collectivist methods were used, not because they were deduced from a particular creed, but because they happened to meet a particular need. In accordance with its long-held secular practice, Britain and its people remained largely uninterested in political theory, accepting change when there was a compelling case for it, supported by clear evidence. Above all, the English working-class remained deeply patriotic, as did the Scots and the Welsh. In 1937, a Nottinghamshire coal miner recalled his interaction with a Socialist speaker earlier in the decade and how his admiration had turned to annoyance when the speaker had turned to this subject:

“What is this England you are supposed to love? It is only a tiny portion of the earth’s surface.  Why should you be expected to love it, or be prepared to die for it, any more than you would for Russia, China or Greenland?”

I was thunderstruck. “Because it’s England!” I yelled out in a fury.

Didn’t he know that most of the happiness that ever I had came from this love of England that he spoke so contemptuously about? Didn’t they know that in the early winter mornings when the frost glittered on the half frozen fields and the air was so clear and so sharp that it hurt one’s nostrils, or in the hot summer afternoons when the forest of Sherwood was quiet under the heavy heat except for the popping of the bursting broom-pods – that England spoke to you? How she told you the wonderful stories of famous men who fought and ruled and died because of their love for her. Of the simple men who toiled, ploughed, reaped, loved every handful of her brown soil and died still loving her.   

In political terms, then, what was this England, and this Britain? In the Twenties, it was more of a changing landscape than it had ever been. Urgent facts had played havoc with party creeds. At no time previously or since, at least until recently, had the party interest sunk so low. That was due to the fact that British democracy had become essentially plebiscitary since that advent of the universal franchise in 1928. The 1929 ‘flapper election’ was the first to become a real scramble for votes and gamble for votes in the first-past-the-post system, compared with the well-planned binary contests which had previously taken place, leading to the turn-taking between the Conservatives and Liberals. The ‘arrival’ of Labour was one of the disruptive factors in this, but perhaps the major factor was the fact that in a crisis like war or national bankruptcy the ordinary party business meant little. The King’s view that a national emergency should be faced by a united front, which was supported by his ministers and confirmed by the people in the 1931 Election, had proved to be correct. As George Orwell was later to observe, patriotism was a far more potent popular force than socialism could ever become in Britain. The Labour Party has always done best when it has demonstrated its understanding of what appeared to be a ‘natural’ force, and worst when the party’s leadership show contempt for it.

Sources:

John Buchan (1935), The King’s Grace, 1910-1935.  London: Hodder and Stoughton.

Michael Clark & Peter Teed (ed.) (1972), Portraits & Documents: The Twentieth Century, 1906-1960. London: Hutchinson Educational.

René Cutforth (1976), Later Than We Thought: A Portrait of the Thirties. Newton Abbot: David & Charles.

Theo Barker (ed.) (1978), The Long March of Everyman, 1750-1960. Harmondsworth: Penguin Books.

John Gorman (1980), To Build Jerusalem: A Photographic Remembrance of Working-Class Life, 1875-1950. London: Scorpion Press.

Richard Brown (1982), Documents and Debates: Twentieth-Century Britain. Basingstoke: Macmillan.

A. J. Chandler (1988), The Re-making of a Working Class: Migration from the South Wales Coalfield to the New Industry Areas of the Midlands of England, 1920-1940. Cardiff: Unpublished PhD thesis.

Posted December 31, 2019 by TeamBritanniaHu in American History & Politics, Austerity, Austria, Britain, British history, Charity, Child Welfare, Christian Faith, Christian Socialism, Christianity, Churchill, Co-operativism, Coalfields, Commemoration, Communism, Conservative Party, David Lloyd George, democracy, Domesticity, Economics, Education, Edward VIII, Family, George V, Germany, History, Humanism, Jews, Labour Party, manufacturing, Midlands, Migration, Militancy, morality, Mythology, Narrative, nationalism, Nationality, Navy, Oxford, Patriotism, Population, Poverty, Quakers (Religious Society of Friends), Reconciliation, Remembrance, Russia, Scotland, Social Service, Socialist, south Wales, Technology, Trade Unionism, Transference, Unemployment, Unionists, United Kingdom, USA, USSR, Utopianism, Victorian, Wales, World War One, World War Two

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‘Socialism’ and the Origins of the Labour Party in Britain, 1870-1900: Part One – Chartists, Radicals & Revolutionaries.   Leave a comment

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The British Labour Party, 1983-2019:

The British Labour Party published its manifesto for the forthcoming General Election in early December 2019. The Party itself claims that it represents its most radical offering to the British electorate ever. Certainly, it is the most left-wing programme to be put forward since the 1983 Election, at which the then leader, Michael Foot, was later accused by Gerald Kauffman of writing ‘the longest suicide note in history’. As a result, Margaret Thatcher won a landslide victory which led to her remaining in power for a further seven years, and the Tories until 1997. There were other factors, of course, not least among them the victory over Argentina in the Falklands Islands in 1982. I campaigned for Labour in Carmarthen in 1983 and, at least in that three-way marginal, Labour defeated both the Tories and Plaid Cymru. Michael Foot delivered a fiery, left-wing speech in the constituency and inspired us, students, to knock on doors in working-class areas of the town to secure their vote for the Labour candidate, Dr Roger Thomas. Across Wales and the UK, however, the Tories destroyed the Labour Party in a manner no-one could have anticipated. In 2019, are we now headed for a similar scale of defeat? Has the Corbyn-led leftward lurch finally brought the party to the end of the road? Or is there an underestimated level of support for radical, redistributive policies in today’s Britain which could yet bring in a government which, to invert the words of a former speaker and Labour MP, George Thomas, would seem to owe more to Marxism than Methodism? To understand these issues, we need to look back to the origins of the Labour Party, founded by, among others, my own grandparents.

In late 1946 a group of historians, friends and members of the Communist Party started regularly meeting in Marx’s House in London, picture here.

The Marx Memorial Library at 37a Clerkenwell Green, London, home to Walter Crane’s ‘Twentieth Century Press’ in the 1890s

Organising the Labourers, 1870-1879:

My great-grandparents were agricultural labourers and marched with Methodist lay-preacher Joseph Arch in the 1860s and 1870s to organise their fellow villagers into the Warwickshire Agricultural Labourers’ Union and then the National Agricultural Labourers’ Union in 1872. One of my great-great-uncles became one of its first local full-time officers. By 1875, NALU was fifty-eight thousand strong and organised into thirty-eight districts, despite fierce opposition from farmers, landlords, and parish priests. It was against this triple tyranny that the farm labourers struggled to build trade unionism in the countryside. Added to that was the sense of isolation, both at work and in the nature of village life. A labourer might work alone in fields from dawn till dusk, a life of unremitting toil unrelieved by holidays for a wage of twelve pounds a year. Even when working alongside his fellows he saw little of the world beyond his master’s farm, the primitive tied cottage in which he lived and a semblance of social life at the village pub. Nor did he share in the fruits of the earth on which he toiled; the harvester, like the one in the photograph below, who killed a rabbit bolting from the last of the corn could find himself before the local magistrate, invariably a farmer. It took a special kind of courage to stand with a few fellow-labourers and sing:

Ye tillers of the soil,

Assert your manhood then,

You get your living by hard toil,

Then all be union men.

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Meanwhile, the industrial advances of the middle-Victorian era eliminated the immediate risk of serious social discontent among the workers, and especially among their potential leaders, the skilled artisans and factory employees. The plight of the poor was made worse by the fact that many more of them lived in towns. In 1871, sixty-two per cent of the population of England and Wales was classed in the census as urban; by 1911 it would reach eighty per cent of a much larger total. Yet in a country like Britain, with a long-established aristocracy and a traditional class system, no very high degree of social fluidity could be attained even in the heyday of industrial capitalism. On the contrary, large-scale industry developed class solidarity among the workers which in the end facilitated effective political election in the interest of labour as a whole. By 1871 the Trades Union Congress had been established and accepted as the central parliament of labour, meeting annually, and its Parliamentary Committee was the recognised agent for applying pressure on behalf of the trades unions at the centre of government. By the Acts of 1871, the trade unions secured a legal status; in the same year, the engineers of north-east England revived the Nine Hours movement and won a strike for this object. In 1875, a Conservative government, showing itself as sensitive as the Liberals to the pressure of the unions in industrial matters, passed two acts which satisfied the unions in respect of breach of contract and picketing.

There were also a few local labour associations active in securing representation for working men on local authorities, and sometimes, as in Birmingham in the 1870s, they carried on their work without any understanding with an existing party. But on a national scale, it is not surprising that few labour leaders regarded the establishment of an entirely independent workers’ party as a practical possibility. Most of them accepted Gladstone’s leadership, for it had been he who had championed the cause of working-class suffrage in the previous decade, and on many issues of policy, the leaders of the artisans found themselves in alliance with the Liberals. The Liberal Party was not a monolithic structure: and the acceptance of the leadership of Gladstone on general questions did not necessarily mean that the labour interest need forego its special organisation. In the circumstances of the time, there was no reason why the Labour Representation League should not continue to exist among, and indeed to struggle against, the other elements of the Liberal Party. This struggle could and did continue at the constituency level. The failure of the League to maintain itself even on those terms indicates the unwillingness of the middle-class Liberals to see working men elected as their representatives. John Bright himself accused the League of disorganising the party unless what are called working-class representatives could be returned. Henry Broadbent, the Secretary of the League, in his rejoinder to this, admitted the failure of its policy:

Up to the present, the number of seats contested by labour candidates have been very few, and in some of these cases the seats sought to be won were those held by the Conservatives, and in many of those instances we singularly enough found large numbers of the middle class electors preferred voting for the Tories rather than support a working-class candidate. Surely, then, we are the aggrieved party. …

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Above & below: The Paris Commune of 1871.

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It was true that the policy of finding Liberal seats for labour candidates had few successes and many failures. At the 1874 election two miners were elected, Thomas Burt for Morpeth and Alexander McDonald for Stafford; but this was a miserable showing for an electorate, the majority of which now consisted of members of the working class. Nevertheless, there were signs of a developing sympathy among them for Socialism at the time of the Paris Commune of 1871 (depicted above). These were mainly to be found among the writings of the Republican movement which sprang up in the period 1871-74 when eighty-four Republican clubs were founded in Britain. But the disagreement among their leaders over the issue of ‘social revolution’ led to division and decline. Its Socialist doctrine was limited to a vague ‘Owenism’, for although Marx was living in London at this time, pursuing his research at the reading room of the British Museum (below), his works were little known in Britain. Nevertheless, Robert Owen’s thinking was not entirely without influence, as it was at this period that many trade unions took up schemes for co-operative production, buying collieries and engineering works in which to try out these ideas. In the years 1874 to 1880, while the Liberals were out of power, it was difficult for a labourist opposition to establish itself as distinct from that of the Liberals.

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By 1878, the Labour Representation League had ceased to attract any public attention and the more independent trade unions, mostly those most vulnerable to the severe trade depression of the late seventies, were killed off by the bad times. Arch’s Agricultural Labourers’ Union was especially hard hit and its membership rapidly declined. In 1881, Arch appeared in person before the Royal Commission on Agriculture, claiming that the only way to ensure higher wages for farm labourers was to reduce the numbers in ‘the market’ through emigration. His Union had aided the emigration of seven hundred thousand men, women and children over the previous nine years, together with the Canadian government. Similarly, the New Zealand government, anxious to overcome the disadvantages of the long, expensive and uncomfortable sea journeys of British emigrants, had offered, from 1873, free passages, especially to agricultural labourers and their families. With the backing of NALU, many families took up the offer, and between 1871 and 1880, the New Zealand government provided over a hundred thousand immigrants with assisted passages.

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This trade union participation in what became known as ‘Liberal Imperialism’ presented a serious challenge to the growth of Socialism in Britain. In general, millworkers and miners were absorbed in their economic struggle for better wages and conditions. This laid some of them open to the argument that faced with stiffening foreign competition and tariffs, Britain could only hold on to or improve its prosperity by having more and more colonies. This ‘bread-and-butter’ argument had a rational flavour, and it would seem that when trade was good most workers were prepared to give it a good hearing. When trading conditions were bad, and especially capital and labour were more at odds than usual, it usually fell into the background, and the instinctive assumptions and loyalties of the class struggle usually took its place. But what historians now refer to as the ‘Great Depression’, far from encouraging that growth and the break-up of the Liberal Party, actually discouraged working-class militancy and destroyed the more ‘advanced’ and independent elements among the working classes in both the agricultural and industrial areas of the Midlands and South of England.

Most of the time, the working classes were simply shut in their own world and its own affairs, including trade union and co-operative activities, the club-life of the public house, the football ground and the chapel, to be either enthusiastic or antagonistic towards imperialism. It never became for them what it was for those higher up; a definite creed, philosophy of life, a mission. But if a long-sustained effort to indoctrinate them with jingoism was rewarded with acquiescence rather than with wholehearted assent, this meant equally that socialist or labour leaders who tried to transform indifference into anti-imperialism met with even smaller success. Some trade union and Socialist spokesmen were reviving an opposition to the empire that had been voiced by Ernest Jones the Chartist, the spirited attacks on it by intellectuals and radical groups fell on deaf working-class ears. Writing to Kautsky in September 1882, Engels commented on working-class attitudes to the empire in response to a question from his continental ‘comrade’:

You ask me what the English workers think about colonial policy. Well, exactly the same as they think about politics in general: the same as what the bourgeois think. There is no workers’ party here, there are only Conservatives and Liberal-Radicals, and the workers gaily share the feast of England’s monopoly of the world market and the colonies.

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Neither could Owenite Socialism, identified with Utopian experiments and lacking any systematic economic theory, provide a basis for a practical political programme. Writing in 1881, Engels felt bound to admit that the working class of Britain had become the tail of the great Liberal Party. The new orientation of economic thought was influenced not only by the impact of the depression but also by long-term changes in the structure of industry which earlier economists had not predicted. The family firms were being replaced by more impersonal limited companies, in which ownership was divorced from managerial skill and from direct contact with labour. As a result, the opportunities for social advancement were curtailed and the workers’ class solidarity was increased. This did not happen uniformly in all industries, and by the mid-eighties, it was common only in iron, shipbuilding and heavy engineering. But the tendency was the same everywhere, and it seemed very possible that it might lead to the substitution of monopoly for competition in the end, as Marx had forecast. But though he had been living in London since 1849, Marx was virtually unknown at this time, even by Liberal Radicals. His major works were written in German and had not been translated into English, and they were more concerned with events on the continent. Engels was better known as a critic of the industrial system in England.

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Engels in a photograph taken in the 1870s

In the earlier years of the Victorian period, there had always been those intellectuals who maintained that the existing industrial system was unjust or ugly or both. The most notable of those who took this view were Carlyle and Ruskin, both of whom were popular in the later nineteenth century. Ruskin had founded a Utopian experiment, St George’s Guild, and bought a farm where a little group of Sheffield Socialists attempted without success to set up a self-sufficient community. His essays on political economy, Unto this Last (1860), and his letters to working men, known as Fors Clavigera (1871-84), did much to encourage the growing spirit of collectivism. They revived, in simple and impressive language, many of the criticisms of classical economics which had first been voiced by the ‘Ricardian Socialists’ of the 1820s. Not that Ruskin had read the works of these writers, who were completely forgotten in this period except for the occasional footnote in Marx. Ruskin was the great amateur of political economy, but influential for all that. It was not without reason that Keir Hardie and many other labour leaders regarded Carlyle and Ruskin as more important in shaping their political views than any writers more fully versed in the abstractions of economic theory.

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It would be difficult to argue that any of the British labour leaders at the end of the nineteenth century, except for a very few Marxists, were able to build their political views upon a reasoned philosophical basis. The British Socialists at this time were a small and scattered minority. The London Commonwealth Club, which John Hales had represented at the Ghent Socialist Congress of 1877, seems to have died out before the end of the decade. Hales led the opposition to Marx and Engels in the British Section of the First Socialist International (pictured below) and tried to revive the Club by founding the International Labour Union in 1877-8 but this, too, was a very short-lived organisation, despite attracting the support of several leading ‘advanced radicals’. What interest there was in Socialism sprang very largely from the success of the German Social Democratic Party (SPD), which in 1877 had polled nearly half a million votes and had won thirteen seats in the Reichstag.

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Engels speaking to the Congress of the First International in the Hague in 1872.

In 1879, an old Chartist, John Sketchley of Birmingham, published a pamphlet entitled The Principles of Social Democracy which sought to show, based on the German SPD, what the programme of a similar party in Britain might be. In Birmingham, Sketchley tried to organise a Midland Social Democratic Association, linking to the city’s working-class politics of the early 1870s. Other Socialist propagandists of the time were Henry Travis, a doctor, who published occasional pamphlets on Owenism, and a young journalist, Ernest Belfort Bax, who knew Germany well, had read Marx’s Das Kapital in the original and had written articles on Marxism in the monthly magazine, Modern Thought in 1879. Also, in 1880, the Rose Street club of German exiles expanded rapidly due to the influx of refugees from the regressive legislation in Germany and Austria, developing an English section although it continued to publish only in German. When the Russian scientist and socialist Peter Kropotkin visited England to lecture on Socialism in 1881, he found himself addressing ‘ridiculously small audiences’. Two years later, Marx’s death in London would have passed unnoticed by The Times had its Paris correspondent not sent a paragraph on his European reputation.

Liberal Hegemony & the Birth of Socialism, 1880-84:

Clearly, at the time of the General Election in 1880, Socialism in Britain was as yet a movement without indigenous strength. Until the early 1880s, there had been no organised working-class support for major democratic reform since the death of the Chartist movement in the late 1840s. The mid-Victorian period was generally one of prosperity, rising wages and full employment, at least for ‘skilled’ workers. The Reform Act of 1867, which extended the franchise to most of the adult male population, was a move towards democratic reform through legislation. At the same time, British socialism acquired some new ideas from refugees who had fled from persecution under autocratic continental governments in the 1870s. The hold of the Liberal Party over the working-class vote was shown to be stronger than ever. Only three working men were returned at the 1880 Election, all of them as Liberals: Henry Broadhurst, Secretary of the TUC, joined Thomas Burt and Alexander McDonald at Westminster. The election showed the strength of Joseph Chamberlain’s new Radical pressure group, the National Liberal Foundation, which dominated the constituency parties to the advantage of the middle-classes and the alarm of labour leaders. The Liberals had a clear majority of seventy-two seats in the new House of Commons. In late 1880 a new weekly paper, the Radical, was established in London ostensibly in opposition to the new Liberal government’s policy of applying coercion in Ireland. However, the leading article in the first issue deplored the small number of labour representatives in Parliament.

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The protagonists of this alliance of Radicals and Irish included Helen Taylor, the stepdaughter of John Stuart Mill, T. P. O’Connor and former Chartists. There followed a proposal for a more permanent organisation of ‘advanced’ Radicals, an idea which seems to have originated with H. M. Hyndman, a Tory Radical who was defeated at Marylebone in the 1880 election, and H. A. M. Butler-Johnstone, MP for Canterbury for many years before resigning over differences with the Tory Party in 1878. He stood as an independent in the 1880 election but was defeated. The views of these two men on ‘the Eastern Question’ provided an unlikely link with Karl Marx, whose advice they sought. In response to their invitation, delegates from various London clubs and associations met at the headquarters of the Social Democrats in Rose Street in an attempt to unite, if possible, all societies willing to adopt Radical programme with a powerful Democratic party. The meeting urged…

… the necessity of the formation of a New Party, the grand object of which should be the direct representation of labour. In addition to Parliamentary reform, the new party would, of course, have to deal with the question of improvement in the social condition of the people. 

A resolution was passed without opposition in favour of an attempt to establish ‘a labour party’, and a committee of nine was appointed to draft a programme. These included liberal trades unionists, social democrats, working-class Radicals, together with Hyndman and Butler-Johnstone. The foundation conference took place in June 1881, and a long advertisement in the Radical invited delegates from advanced political organisations, trade societies and clubs throughout the country. The advertisement advocated a social and political programme which shall unite the great body of the people, quite irrespective of party. The programme was to include attention to labour interests, economy, constitutional reform, the end of coercion in Ireland, and full publicity for the discussion of imperial and foreign affairs. Hyndman’s hand can be detected in the composition of this statement and it is evident that he played an active part in the shaping of the new party. When the conference took place, it was decided that the ‘party’ should rather be called the ‘Democratic Federation’, perhaps in a deliberate attempt to copy and rival Chamberlain’s National Liberal Federation which had proved all too successful in establishing middle-class hegemony over the constituency caucuses.

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Writing to Bernstein in May 1881, Engels had already decided, however, that the Federation was quite without significance because it could only arouse interest on the Irish question. Hyndman’s conversion to Marxian Socialism had taken place on a trip to America the previous year when he read a copy of the French version of Marx’s Kapital given him by Butler-Johnstone. In January 1881 he had published an article in the influential monthly, the Nineteenth Century, which he entitled The Dawn of a Revolutionary Epoch. In June, at the inaugural conference of the Democratic Federation, he distributed to all the delegates a little book he had written called England for All, in which he expounded the views of Marx without mentioning his name. This annoyed Marx and their relations became strained. Marx wrote to his friend Sorge of his irritation with Hyndman’s publication:

It pretends to be written as an exposition of the programme of the ‘Democratic Federation’ – a recently formed association of different English and Scottish radical societies, half bourgeois, half proletarian. The chapters on Labour and Capital are simply literal extracts from … ‘Das Kapital’, but the fellow mentions neither the book nor its author … As to myself, the fellow wrote stupid letters of excuse, for instance, that “the English don’t like to be taught by foreigners”, that “my name was so much detested”, etc. For all that, his little book, so far as it pilfers ‘Das Kapital’ makes good propoganda, although the man is a weak vessel, and very far from having even the patience – the first condition of learning anything – to study a matter thoroughly.

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Above: The last photograph of Marx, taken in the spring of 1882 in Algeria.

In this way, Hyndman lost his brief friendship with Karl Marx and, as a result, that of Friedrich Engels as well. Marx died in 1883, but Engels lived on in London until 1895, aspiring to direct the Socialist movement from behind the scenes. His hostility to Hyndman was to have serious consequences for the movement. Marx and Engels were not, themselves, easy people to get on with, and they were sometimes poor judges of character. Hyndman nicknamed Engels the Grand Lama of the Regents Park Road, a reference to his self-imposed seclusion in his house there, and Engels spoke of Hyndman as an arch-Conservative and extremely chauvinistic but not stupid careerist, who behaved pretty shabbily to Marx, and for that reason was dropped by us personally. Hyndman was by no means a careerist, as his subsequent unrewarding toil in the Socialist movement was to show: Marx himself was perhaps closer to the truth when he described him as self-satisfied and garrulous. Bernard Shaw classified him …

… with the free-thinking English gentlemen-republicans of the last half of the nineteenth century: with Dilke, Burton Auberon Herbert, Wilfred Seawen Blunt, Laurence Oliphant: great globe-trotters, writers, ‘frondeurs’, brilliant and accomplished cosmopolitans so far as their various abilities permitted, all more interested in the world than in themselves, and in themselves than in official decorations; consequently unpurchasable, their price being too high for any modern commercial Government to pay.      

Hyndman’s Conservative origins and leanings made him suspect to many of the Radicals, who mostly preferred the Liberals if they had to choose between the parties. In his Marylebone election address, he had declared his opposition to disestablishment and Irish Home Rule and this was not forgotten by his contemporaries. Following his ‘conversion’ to Marxian thinking, and under its influence, he soon gave up these views, but he was still sufficiently conservative in his leanings to arrange a meeting with Disraeli, now the Earl of Beaconsfield, at which he poured forth his views, apparently in the hope that the Tory Party might adopt them. Disraeli listened patiently and politely but told him that private property which you hope to communise and vested interests which you openly threaten, have a great many to speak up for them still. Despite this rebuttal, Hyndman always hated the Liberals more than the Tories, a feature which was to distinguish his politics from those of many of the other British Socialists. The Democratic Federation’s intransigent opposition to the Liberal Party became unpalatable to many of its early members. Its vigorous support for a Land League candidate against the Liberal nominee at a by-election in Tyrone in the autumn of 1881, at which it issued a denunciation of ‘capitalist radicalism’ in a special manifesto, led to the defection of all the Radical clubs and its original membership contracted. As Socialism began to spread, however, Hyndman was able to convert it into an openly Socialist body at the annual conference in 1883. The Federation now adopted his declaration of principles, Socialism Made Plain, but it did not change its name until the following year when it became the Social Democratic Federation.

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The new recruits to Socialism who joined Hyndman in running the Federation, several young public school men, included H. H. Champion and R. P. B. Frost, who had been contemporaries at Marlborough and held office in the newly founded Land Reform Union, which publicised the views of Henry George in Britain. A more notable convert was William Morris, already a radical writer and artist with a distinguished reputation and an honorary fellowship at Exeter College, Oxford. Morris had been active in the Eastern Question Association, which had brought him into contact with Liberal labour leaders a few years before, so his attitude to this question was Gladstonian, the opposite to that of Marx and Hyndman. But he had not been active in the land agitation, and it was Ruskin rather than George who seems to have been his introduction to Socialism. Therefore, as the working-class Radicals left the Federation, the middle-class Socialists came in. Paradoxically, however, by November 1882, Morris had decided that no really far-reaching reforms would be carried out by a party under middle-class control. He wrote:

Radicalism is on the wrong line … and will never develop into anything more than Radicalism … it is made by the middle classes and will always be under the control of rich capitalists: they will have no objection to its political development if they think they can stop it there: but as to real social changes, they will not allow them if they can help it.

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So it was that on 13 January 1883 he committed himself to socialism by joining the Democratic Federation. Becoming a Socialist at the age of forty-nine was not a step which he took lightly. During the winter of 1882-83, he attended a series of lectures, intended as an introduction to Socialism, organised by the Federation. Immediately after joining, he read Das Kapital in French, as it had not then been translated into English. Marx died two months after Morris joined the Federation, and Morris therefore never met him. Nevertheless, Morris regarded himself as a communist and his adoption of the socialist cause was, at first, based on an instinctive response to what he felt to be injustices of capitalism. In Marx’s account of the alienation of the worker in an industrial society, and of his liberation through the class struggle, he found a theoretical base to underpin these instincts. He summed up his position in a letter to C. E. Maurice in July 1883:

In looking into matters social and political I have but one rule, that in thinking of the condition of any body of men I should ask myself, ‘How could you bear it yourself? What would you feel if you were poor against the system under which you live?’ … the answer to it has more and more made me ashamed of my own position, and more and more made me feel that if I had not been born rich or well-to-do I should have found my position unendurable, and should have been a mere rebel against what would have seemed to me a system of robbery and injustice. … this … is a matter of religion to me: the contrasts of rich and poor … ought not to be endured by either rich or poor. … such a system can only be destroyed, it seems to me, by the united discontent of numbers; isolated acts of a few persons in the middle and upper classes seeming to me … quite powerless against it: in other words the antagonism of classes, which the system has bred, is the natural necessary instrument of its destruction. … I am quite sure that the change which will overthrow our present system will come sooner or later: on the middle classes to a great extent it depends whether it will come peacefully or violently.

Early on, Morris had understood that there were serious ideological, strategic and tactical divisions within the Federation, not to mention clashes of personality. Morris wrote about these divisions in his letter to Georgiana Burne-Jones in August 1883:

Small as our body is, we are not without dissensions in it. Some of the more ardent members look upon Hyndman as too opportunist, and there is truth in that; he is sanguine of speedy change happening somehow and is inclined to intrigue and the making of a party. … I … think the aim of Socialists should be the founding of a religion, towards which end compromise is no use, and we only want to have those with us who will be with us to the end.

These millenarian beliefs also had an impact on Morris ‘inner’ struggles with his own conscience. The contradiction between his socialist views and his position as a wealthy, middle-class businessman was from the first pointed out by his critics. His workers do not appear to have been disturbed by this apparent inconsistency, however, because Morris treated them with respect as fellow workers and paid them more than average wages. In any case, he felt (perhaps all too conveniently for him personally) that individual tinkering with the system, in the form of profit-sharing, was useless – it must be overthrown in its entirety. He regarded revolution, whether violent or not, as a historical necessity which would certainly come in his lifetime. Nevertheless, in 1884 he calculated that every worker in his employment should receive an extra sixteen pounds a year. He also introduced a form of profit-sharing for his ‘core’ employees, though the Firm overall remained a standard limited company.

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Marx’s grave in Highgate cemetery; photographed c. 1895.

In 1884, the Federation became the Social Democratic Federation (SDF) and seemed to have every hope of rapid progress. Though not strong in numbers, the SDF had important footholds in the Land Reform Union and the National Secular Society, and it had both weekly and monthly journals in addition to the services of some able men and women, including William Morris and Annie Besant. When, in March 1884, it organised a procession to the grave of Marx in Highgate cemetery on the first anniversary of his death, those who took part amounted, according to Morris, to over a thousand, with another two or three thousand onlookers. This was, at least, a beginning, Morris thought. Once convinced of the rightness of Socialism, Morris threw himself into the work of the Federation, not allowing himself to be deterred by his instinctive dislike and distrust of Hyndman. Morris resolved to tolerate the leader of the Federation because of his genuine belief in Socialism. Unlike Morris, he had met Marx and, like Morris, had converted to Socialism after reading Das Kapital. Morris told his business manager that as he is trying to do what I think ought to be done, I feel that everyone who has similar ideas ought to help him. 

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Marx (standing with Engels) with his daughters (seated), Jenny, Eleanor & Laura, c. 1867

The Social Democratic Federation aimed to educate the working class and to organise them for the socialist revolution which members of the Federation believed to be imminent. In his book, The Historical Basis of Socialism in Britain (1883), Hyndman had implied that the time would be ripe in 1889, the centenary of the French Revolution. It was, however, the disagreement about the means of achieving Socialism that brought the clashes of personality into prominence. Hyndman had captured the Democratic Federation for Socialism, and he expected to go on dominating it and leading it along the line of policy which he favoured. But he did not find favour in all quarters: Marx and Engels never regarded him as a genuine Socialist by their standards, and although Marx’s daughter, Eleanor, was a member of the SDF, both she and her partner, the scientist Edward Aveling (of whom G. B. Shaw, scarcely exaggerating said, he seduced every woman he met, and borrowed from every man) regarded Hyndman with suspicion. Indeed, he was dictatorial, devious and vain; what Morris had identified as Hyndman’s genuine belief in Socialism was now more obviously accompanied by his desire to use the Federation as a vehicle for his parliamentary ambition. He wanted it to become a conventional political party, campaigning for reforms and, as soon as possible, putting up candidates for local and parliamentary elections.

William Morris resented Hyndman’s domineering ways and eventually decided that he could no longer tolerate him. At the SDF conference in June 1884, it was decided not to put up parliamentary candidates and Hyndman was displaced as president; instead, members of the executive took turns to act as chairman. Nevertheless, as Morris recognised, Hyndman was determined to be master, and though Morris did not oppose getting members into parliament once the Federation had a strong enough base, he did not feel that it should be their aim at all costs, as Hyndman did. In particular, Morris was very much opposed to sordid electioneering and to gaining concessions by doing deals with other parties. Along with others in the SDF, he felt that their principal aim should be the preparation of the working classes for their part in the coming revolution: Education towards Revolution seems to me to express in three words what our policy should be. 

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Despite Morris’ efforts to act as a mediator in the intrigue and in-fighting with the Hyndmanites, the crisis came in December 1884. The split took place on 27 December, when ten members of the Executive Council resigned, denouncing what in a signed statement they called the attempt to substitute arbitrary rule therein for fraternal co-operation. The signatories included Morris himself, Eleanor Marx and Aveling, More congenial to Morris was Belfort Bax, a journalist, musician and philosopher, who was a confidant of Engels with whom Morris later collaborated in writing Socialism, its Growth and Outcome (1893). The remaining nine members, led by Hyndman, remained in control of the remnants of the SDF. On the day of the split, and even before the critical Council meeting took place, Morris received an ex-cathedra summons to visit Engels, who gave him his advice on the way to organise a new organisation. Next day Morris acquired headquarters for it: as it had the support of the two leagues of London and Scotland, the new ‘party’ was called The Socialist League. The League began to publish a new journal, Commonweal which in Morris’ hands was a paper of real literary merit. Morris much regretted the split, realising that it had seriously weakened the socialist cause, and hoped that before long the British Socialists might be reunited in one party. Indeed, in his last years, he himself did rejoin the SDF. The two associations managed to stay on reasonably amicable terms. Nevertheless, writing in the Commonweal in 1890, Morris bitterly described the Federation as composed in the early days of …

… a few working men, less successful even in the wretched life of labour than their fellows: a sprinkling of the intellectual proletariat … one or two outsiders in the game political, a few refugees from the bureaucratic tyranny of foreign governments; and here and there an unpractical, half-cracked artist or author.

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Educators, Agitators & Trades Unionists, 1885-89:

But in spite of Morris’s great activity up and down the country, the League did not displace the SDF and after six months it still had only two affiliated bodies and eight branches with 230 members. When Morris resigned from the SDF, its membership amounted to no more than five hundred. Morris became depressed about this, as he wrote to Mrs Burne-Jones in May 1885:

I am in low spirits about the prospects of our ‘party’, if I can dignify a little knot of men by such a word. … You see we are such a few, and hard as we work we don’t seem to pick up people to take over our places when we demit. … I have no more faith than a grain of mustard seed in the future history of ‘civilisation’, which I know now is doomed to destruction, and probably before long … and how often it consoles me to think of barbarism once more flooding the world, and real feelings and passions, however rudimentary, taking the place of our wretched hypocrisies. … 

This letter explains very clearly the nature of Morris’s views on the character of the future Socialist revolution. Like Hyndman, he believed in a coming catastrophe and even looked forward to it with millenarian enthusiasm, though he did not, like Hyndman, regard himself as marked out for revolutionary leadership. Rather, he believed that the immediate role of the Socialist was to educate people for the great inevitable change which could bring back the simpler, sounder society of medieval times when craftsmen took pride in their work and when there was no capitalist exploitation or industrial ugliness. In this thinking, he was clearly influenced by Ruskin, shaping a criticism of contemporary that was to form the basis of Syndicalism and Guild Socialism in the early twentieth century. Morris disagreed with those who favoured efforts to get Socialists elected onto public bodies, including Parliament because he thought that this would encourage careerists and threaten the purity of the Socialist ideal with the corruption and compromise inevitably involved in politics. But even his own Socialist League divided on this issue, a division which hastened its collapse at the end of the decade. Morris was a fully convinced Socialist, and though he did not know much about Marxian economics, he was quite prepared to take them on trust. His attitude is well illustrated by his answer to a Hyndmanite questioner who asked, Does Comrade Morris accept Marx’s Theory of Value? He replied bluntly:

To speak frankly, I do not know what Marx’s Theory of Value is, and I’m damned if I want to know. Truth to say, my friends, I have tried to understand  Marx’s theory, but political economy is not my line, and much of it appears to me to be dreary rubbish. But I am, I hope, a Socialist none the less. It is enough political economy for me to know that the idle rich class is rich and the working class is poor, and that the rich are rich because they rob the poor. …

In retrospect, Morris’ fine literary and artistic gifts make him, for many, the most attractive personality among the early British Socialists. But to contemporaries, especially among the working class, his opposition to Parliamentary action was unpopular. The SDF, by contrast, seemed more practical than the Socialist League, and better organised as a party. Morris saw his role as that of a propagandist, educating the working classes in socialist theory. As he explained in an interview with the Liberal newspaper, Daily News, in January 1885,

the discontented must know what they are aiming at when they overthrow the old order of things. My belief is that the old order can only be overthrown by force, and for that reason it is all the more important than the revolution … should not be an ignorant, but an educated revolution.

By the summer of 1886, the Socialist League’s membership had risen to seven hundred. Morris’ political work took two forms, writing and public speaking. He was well aware of his deficiencies as a speaker, particularly before a working-class audience, with whom he found it a great drawback that I can’t speak roughly to them and unaffectedly. He candidly commented to Georgiana Burne-Jones that this revealed the great class gulf that lay between him and them. He regarded writing lectures as a laborious chore. He lectured 120 times between 1885 and 1886, touring East Anglia, Yorkshire, Lancashire and Scotland, also travelling to Dublin. In addition, he played a full part in the Socialist League’s campaign of open-air speaking on Sunday mornings. Despite the failures in his delivery and his tendency to speak over the heads of his audience, his sincerity was impressive; so was the simple fact that such a famous man was prepared to devote so much time to speaking on street corners or visiting the East End to address sometimes no more than a handful of workers.

A  severe trade depression in the mid-1880s brought high unemployment and a receptive audience. Attempts by the police to suppress socialist speakers addressing crowds in public places created a good deal of unrest and further publicity for the socialist cause. It united the disparate radical and socialist groups in opposition to the police. The Socialist League offered support to the SDF after charges of obstruction were brought against its speakers in the summer of 1885. In September, Morris himself was arrested and brought before a magistrate, accused of striking a policeman and breaking the strap on his helmet during an uproar in court after a socialist speaker had been sentenced to two months’ hard labour, having been found guilty of obstruction. Morris denied the charge, and when questioned about his identity, replied, I am an artistic and literary man, pretty well known, I think, throughout Europe. He was allowed to go free. His arrest was the best possible publicity for the Socialist League, was reported as far afield as the United States and rallied supporters to the cause of free speech. But the contrast between the court’s treatment of Morris and of his working-class comrades was highlighted both on this occasion and in the following August, when Morris and two others, both working men, were arrested for obstruction. Morris was fined only a shilling because, as the judge explained, as a gentleman, he would at once see, when it was pointed out to him, that such meetings were a nuisance, and would desist in taking part in them. His two working-class accomplices, however, were both fined twenty pounds and bound over to keep the peace for twelve months. Unable to pay, they were sent to prison for two months.

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There was a further division in the mid-eighties among the early Socialists, between those who were for placing economic problems in the prime place, and those who favoured subordinating them to ethical concerns. The former founded, early in 1884, a separate society which they called the Fabian Society, taking the name from the Roman general ‘Fabius’ who waited patiently for his opportunity to strike against Hannibal. Apart from the fact that they were Socialists, it is difficult to determine what the Fabians’ views actually were. Right from the start, the Society was opposed to the revolutionary views of the SDF; while Bernard Shaw, who attended his first meeting in May 1884 and was elected to membership in September, later declared that the constitutionalism which now distinguishes us as being as alien at those early meetings as it was at those of the SDF or the Socialist League. Although most of its early members were constitutionalists, some were revolutionaries and even anarchists. The Fabian Society was not committed to ‘constitutionalism’ at first, only to ‘caution’, which nevertheless was an implied criticism of the tactics of the SDF. It’s clear that, in some quarters, Fabian Socialism became something of a fashion of the middle-class ‘drawing-room’ which kept out nearly all the proletarians in favour of a very miscellaneous audience.

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The first Fabian Tract, issued in April 1884, entitled Why are the Many Poor? simply stated the extent of wealth and poverty but offered no remedy. The second tract, issued in September, was drawn up by Shaw in his most scintillating style and advocated Land Nationalisation, State competition in industries, the abolition of gender inequalities and of all types of privilege. It concluded with the rather stark observation that we had rather face a Civil War than another century of suffering as the present one has been. At this time Shaw was an aspiring novelist, so far unknown. His political interests had first been aroused by Henry George, whom he heard speak in London in 1884:

He struck me dumb and shunted me from barren agnostic controversy to economics. I read his ‘Progress and Poverty’, and wet to a meeting of Hyndman’s Marxist Democratic Federation, where I rose and protested against its drawing a red herring across the trail blazed by George. I was contemptuously dismissed as a novice who had not read the great frst volume of Marx’s ‘Capital’.

I promptly read it, and returned to announce my complete conversion to it. Immediately contempt changed to awe, for Hyndman’s disciples had not read the book themselves, it being then accessible only in Deville’s French version in the British Museum reading room, my daily resort.

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The reading room of the British Museum, used by both Marx and then by G. B. Shaw,

the former when writing Das Kapital, the second when reading it.

In 1884-5, Shaw was prepared, in his enthusiasm for Marx, to defend him against all comers. But even then, so far as a revolution by violence was concerned, Shaw was beginning to have doubts, and by February 1885 he was urging the middle-classes to join the Socialist movement to counteract the influence of a mob of desperate sufferers abandoned to the leadership of exasperated sentimentalists and fanatical theorists.  this precept, he brought into the Fabian Society his friend Sidney Webb, a clerk in the Foreign Office, who was a disciple of John Stuart Mill. He had, at Shaw’s suggestion, read Marx, but had not been converted to Marxian Socialism. Shortly afterwards, Annie Besant, who had a long record of Radical agitation, also joined the Fabian Society, and under these new and able recruits, it developed a distinctive constitutionalist strategy within British Socialism.

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The 1884 extensions of the electorate spelt the end of the already moribund principle of government non-intervention in the economic sphere. As soon as the control of elections passed out of the hands of those who paid income tax, the age-old doctrine of laissez-faire was dead. But it was a far greater leap to Socialism in the stricter sense of either the ‘Marxists’ or of the Fabians, who were more eclectic in their reading of political economy. In 1885, the Socialists were not an electoral force at all, since it was impossible for a body like the SDF, with just a few thousand members, to fight a Parliamentary election, unless those members were al concentrated into one constituency. Despite having never fought an election, however, they were determined to do so. First of all, in October it put up four candidates for the London district school boards. All were unsuccessful, but the system of cumulative voting to some extent concealed the severity of their defeat. Then its leaders began to plan the Parliamentary campaign, but the difficulty was their lack of finance. Desperate to find a new source of funding for the Federation ahead of the General Election, they approached the Liberal Party in the guise of Joseph Chamberlain who was trying to rally the agricultural labourers, miners and the Nonconformists, without alienating the industrialists. They hoped that if they promised him their support, Chamberlain would give them a seat to contest in the Birmingham area: but though he met the Socialist leaders, he rejected their proposals.

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In 1883, one of Hyndman’s young recruits, H. H. Champion had become the secretary of the Social Democratic Federation, having similar political attitudes to those of Hyndman as a ‘Tory Socialist’. Then, in 1885, Champion received an offer of funds through a former Marxist and member of the First International who was then working as a Conservative agent. The money was offered for two candidatures in London, which the contributors no doubt thought would split the Liberal vote. Accordingly, two working-men members were put up, J. E. Williams for Hampstead and John Fielding for Kennington. Neither was a working-class constituency, and the candidates got only fifty-nine votes between them. Another SDF candidate, John Burns, an unemployed engineer, stood in Nottingham, however, where he polled 598 votes. The reaction to the London candidature fiasco was immediate and furious. Outside the party, the result of the so-called ‘Tory Gold’ scandal was that there was almost universal condemnation of the SDF, and even the Fabian Society passed a resolution expressing strong disapproval. J. Hunter Watts, who, as treasurer of the SDF, had been left in the dark by Hyndman and Champion, and a member of the Executive Council denounced the two leaders for ‘irresponsibility’ and for trying to run the Federation in military-style. Another schism took place in the Federation, with a new body called the ‘Socialist Union’ being set up, one of whose ‘bright sparks’ was a young Scotsman named James Ramsay Macdonald, who had picked up Socialist ideas in Bristol before settling in London. Both the Bristol and Nottingham SDF branches came over to the Socialist Union, and new affiliates were formed at Carlisle and Manchester. But there was little demand for a fresh Socialist organisation and, lacking wealthy backers, it did not last long.

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In 1886-87, the SDF had been organising demonstrations of the poor and unemployed in Trafalgar Square and elsewhere in London and the south-east, resulting in their leaders’ arrests. In 1887, Engels was also encouraging Eleanor Marx and Edward Aveling in their agitation in East London. Morris continued to embarrass the authorities and the police who did not know how to deal with him at demonstrations and were reluctant to arrest him. Well aware of this, Morris tried to be present as often as possible when there was liable to be trouble with the police, who were often brutal in their treatment of working-class agitators. Even in loyal London, the Jubilee year saw, on 13 November 1887, ‘Bloody Sunday’ – as it became known – when troops were used to clear Trafalgar Square while other British troops were ‘pacifying’ Upper Burma.  A meeting which had first been called to protest against Coercion in Ireland became a huge demonstration in defence of free speech in Trafalgar Square, attracting support from all radical and socialist organisations. Processions attempting to enter the square in defiance of an official ban were broken up by police charges in which two of the demonstrators were killed and two hundred hospitalised. The following Sunday a young worker, Alfred Linnell, died after being ridden down by a mounted policeman in Northumberland Avenue, one of the streets leading into Trafalgar Square. His death became the focus for popular outrage, and the procession at his funeral on 16 December was the largest in London since the death of Wellington in 1852. Morris was one of the pallbearers and made an emotive speech at the graveside. The funeral concluded with a song specially composed by him for the occasion which was sold to benefit Linnell’s orphans as a broadsheet, with a design by Walter Crane (see part two).

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Morris continued to write extensively for the cause, especially in The Commonweal, the journal of the Socialist League which became a weekly in May 1886, with Morris as sole editor. He also financed the paper and was one of its principal contributors. Two of his major later works, The Dream of John Ball and News from Nowhere (1890) were published in the journal in serial form. In the latter, Morris looked to the future for hope. This utopian novel is perhaps the most accessible of Morris’ writings for the modern reader. In it, the narrator falls asleep in Hammersmith and wakes up in the future. In 1952, a revolution has taken place and the narrator finds an ideal society in which people work for pleasure, mechanisation and private property have been abolished, and there is no money. There is equality of class and sex, and there are no cities; people live in smaller rural communities, working on the land and at hand-crafts in harmony with the natural world. By the time he wrote this, Morris had come to realise that the hoped-for revolution was further away than he thought.

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The Socialist League lingered on, consisting not only of anarchists but also of the Marx-Engels clique who while not hostile to Parliamentary methods, did not rule out the possibility of violent revolution. Engels, a shrewd political strategist, had already put on record for British readers his view of how the Socialists could win power in Britain. In his articles for Shipton’s Labour Standard (1881), he had advised them to build up a labour party which, provided that from the start it was independent of the parties of the ruling class, he believed would gradually become more and more Socialist as time went on. He now drew fresh inspiration from the example of the American United Labour Parties, considering that there was an immediate question of forming an English Labour Party with an independent class programme. Writing to Bernstein in May 1887, Engels claimed that the Radical clubs were…

… aroused by the American example and consequently were now seriously thinking of creating an independent labour party.

This policy had begun to attract other members of the League: among these, whom Engels called ‘our people’, occur the names of young men active in the Socialist League, including J. L. Mahon who, temporarily resident in Newcastle, wrote to Engels in June advocating an amalgamation of the various little organisations in one broad definite political platform. They had been largely responsible for the establishment, early in 1887, of a North of England Socialist Federation among the Northumberland miners, another indication of a real attempt to bring Socialism to the working class. This was built up jointly by SDF and League agitators in the course of the Great Miners’ Strike of 1887. Although the nearest attempt yet made to create a mass movement, it was a transient success, for with the settlement of the strike its branches, numbering twenty-four at the peak, rapidly faded away. Yet the published aims of the North of England Federation were an indication of the way young Socialists were thinking. There were four, but it was the second point which caused most controversy within the League:

Striving to conquer political power by promoting the election of Socialists to Parliament, local governments, school boards, and other administrative bodies.

016 (3)Morris was sceptical of the practicability of this aim and expressed the hope that our friends will see the futility of sending (or trying to send) Socialists or anyone else to Parliament before they have learned it by long and bitter experience. But Morris could not escape the implications of this clash of opinions within the League: as early as March 1887, he noted in his diary, Whatever happens, I fear that as an organisation we shall come to nothing, though personal feeling may hold us together. The issue was raised at the annual conference that year, and, on being defeated, most of the supporters of Parliamentary action retired from active participation in the running of the League. After the annual conference of the following year, 1888, when they were again defeated, their point of view was explicitly repudiated in a statement by the Council of the League, and they took no further part in its work. The Bloomsbury branch, which included the Marx-Avelings and several German Marxists, left and transformed itself into the independent Bloomsbury Socialist Society. Meanwhile, Mahon and his friends seceded and formed a ‘Labour Union’ which aimed at providing a national platform. It published a document pointing to what the Irish Party have achieved by a similar course of action, which attracted the signature of a Scottish miner, James Keir Hardie (see part two) among other sponsors, but it, too, petered out after a few years as a working-class group in Hoxton (in Hackney). Morris, meanwhile, often despaired at the apathy of the men he was trying to convert, though he also understood and sympathised with their demoralisation:

If I were to spend ten hours a day at work I despised and hated, I should spend my leisure, I hope, in political agitation, but, I fear, in drinking …

( … to be continued…)

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A Century Ago – Britain & the World in 1919 – ‘The Year of Victory’: Part Two.   Leave a comment

Part Two; June – December:

lloyd george 1915

The British Delegation to the Paris Peace Conference, including (in the centre),

Arthur J Balfour & David Lloyd George, Foreign Secretary & Prime Minister.

This is not a peace. It is an armistice for twenty years.

(Marshal Foch at Versailles)

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Victory Celebrations in London & Paris:

In the victory celebration parade that took place in London in July 1919 units of every ‘race and creed’ from Britain’s worldwide empire marched in symbolic unity. Men in their millions, latterly conscripted, had responded to the call to uphold the glorious traditions of the British race. 

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Below: British sailors march through Whitehall in July 1919 to celebrate ‘Victory’.

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Two weeks after witnessing the humiliating scenes in the Galerie des Glaces, Harold Nicolson watched the Allied victory procession make its way through the Arc de Triomphe. Perched high on the roof of the Hotel Astoria, he was overcome by a wave of patriotic fervour as he applauded the British Grenadiers and behind them hundreds and hundreds of British regimental flags – stiff, imperial, heavy with gold lettering, “Busaco”, “Inkerman”, “Waterloo” – while the crowd roared with enthusiasm. Cries of “Good Old Blighty” were heard. Harold wept at the spectacle of the most glorious, the most democratic and the most final of Britain’s victories. For Nicolson, these three months in Paris, despite his private agony and professional frustration, ended on an emotional high. But this sense of relief and elation at the coming of peace did not last long, either in Paris or London. The Treaty of Versailles did not deal, except incidentally, with the problems arising out of the liquidation of the Austro-Hungarian empire, nor with the two other ‘enemy’ powers, Turkey and Bulgaria. Four further treaties were required to deal with these: St. Germain, concluded with Austria in September 1919; Neuilly, with Bulgaria in November 1919; Trianon, with Hungary in June 1920, and Sévres, with Turkey in August 1920, though later replaced by the Treaty of Lausanne in 1923.

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Above: At the Peace Conference at the Quai d’Orsay, by Sir William Orpen.

Unfinished Business – Break-up of the Austrian Empire:

The most spectacular change in the post-war map of Europe was the disappearance of the Hapsburg Empire, which for seventy years had been saved from collapse by its dynastic rulers. There was no unity between the different nationalities. Czechs, Slovaks, Ruthenians, Poles, Croats, and Slovenes were dominated by German and Magyar masters; yet because one dynasty had linked together in its chain of bondage a huge territory in Central Europe, centring on the Danube Basin, certain economic advantages accrued to its million inhabitants. There was free trade within the vast empire; a unified railway and river transport system and an outlet to the Adriatic Sea assisted the national trade and commerce. But the empire had already collapsed and its former territories were already split into seven territories before the conference started. Austria and Hungary were both reduced to the status of minor states before the treaties of St. Germain and Trianon were signed and sealed. The fragments of the Austro-Hungarian Dual Monarchy were in a dire condition. Austria was reduced to one great city and a narrow arc of productive land around it which could never form an economic unit by itself, and Hungary, recovering from Bolshevik Revolution was also bankrupt, confused and impotent. The map below illustrates the areas, races, population, and economic resources of the partitioned empire. A comparative study of the four sketch-maps reveals the different characteristics of these divisions:

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From the ruins of the old Hapsburg Empire there emerged the small republic of Austria, mostly a mountainous territory in the Alps, with its huge capital, Vienna, retaining all that was left of its former greatness. Reduced by disease and starvation, its very existence threatened, Austria was one of the first states whose difficulties engaged the attention of the European statesmen. As a result of the Peace Settlement, there were many more small states than there had been in 1914. The League of Nations gave them their opportunity to co-operate and thus influence the decisions of the Great Powers. The frontiers of the countries in the Danube Basin were settled upon national lines. As a result, a group of aggressively national states was brought into being intent on securing economic as well as political independence, a situation dangerous alike to the prosperity and peace of Europe. Jealous of their neighbours and fearful of their former ruling peoples, the Germans of Austria and the Magyars of Hungary, they immediately began strengthening their military resources. At first, the ‘Peace’ appeared to be a decisive victory for democracy, as the autocratic empires of the Hohenzollerns, Hapsburgs and Romanovs were replaced by democratic republics. But the rival doctrines of Communism and Fascism began to undermine their stability almost as soon as they were created, and in these ideological positions, there was little room for representative institutions.

The Economic Consequences of the Peace:

While the Austrian and Turkish Empires were broken up, the German Empire was not drastically partitioned, as we saw in the first part of this article. This was chiefly because except at its eastern edges there were fewer national minorities under its sovereignty. However, it did lose all its overseas colonies and many thousands of German-speakers were placed under the rule of the new neighbouring states. These territorial losses alone were enough to create a sense of injustice in the minds of many Germans, but the effect of the economic provisions of the Treaty of Versailles was to convince them that the Allies were bent on their total ruin. The prosperity of Germany depended on her industrial and commercial development. The territorial annexations had taken away from her valuable mineral resources as well as fully grown industrial enterprises, e.g. textile-mills in Alsace. Not content with this, the Allies proceeded to imperil what remained by demanding reparations in the form of coal, the cession of railway stock, and its mercantile shipping; they interfered with her control over her navigable rivers and took away the special rights it had obtained in Morocco, Egypt and China. The reparations were to be paid in recompense for damage done to civilians in the Allied countries where the fighting had taken place.

The overall effect of these arrangements was to ruin Germany economically, and since all nations were, to some extent, mutually dependent on trade with each other, they caused economic distress throughout Europe. Germany had been at her last gasp before she surrendered, but surrender did not break the fortitude of its people. They crushed a communist attempt to follow the Soviet Russian model and produced, even while starving and bewildered, some semblance of a national Government. They received the harsh conditions of Versailles with protests but with dignity, and then they set themselves against desperate odds to rebuild their economy and society. The Allied blockade was continued well into the second half of 1919, and it was only the protests of the British soldiers on the Rhine that forced the Allies to attend to their duty of provisioning a starving population. A huge proportion of this, children especially, were suffering from malnutrition. There was an extreme shortage of raw materials, and there was no money to purchase these abroad, nor were there ships to import them. The highly developed agricultural system was in ruins and yet the country was saddled with a huge but yet undetermined debt. The new republic had to quickly improvise a new social order and governmental system, threatened by anarchy at home and Bolshevism from both within and without.

For a moment, but only for a moment, after the signing of the treaties, there was a sense of peace and stability. Then everywhere came unsettlement and confusion, economic or political, or both, except in the United States. Britain, desperately busy with setting her own house in order, was compelled to lend a hand in straightening out the world’s tangle which, of course, it had been party to creating. On the peace and prosperity of the globe depended its export trade, vast system of overseas lending and its position as a financial centre, as well as its hope of building up a new and better society and thereby winning something  from the sacrifice of war; and the interests of its Empire was vitally engaged in this ‘project’. The background to any picture of inter-war Britain must, therefore, be, as John Buchan put it in 1935, the vast shifting kaleidoscope of the world. By then, J M Keynes’ damning contemporary indictment of the French attitude at the Paris Conference had helped to develop the policy of ‘appeasement’, often confused with the ‘policy of fear’ of 1937-39. Appeasement had a coherent intellectual foundation with a high moral tone, as in Keynes’ famous book, The Economic Consequences of the Peace, which he published soon after the signing of the Treaty of Versailles:

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In this forecast, he found support from Lloyd George and Winston Churchill among other leading politicians and thinkers in the early twenties. Although particularly critical of the French attitude at Paris, Keynes understood clearly enough its economic motives for this:

In spite … of France’s victorious issue from the present struggle … her future position remained precarious in the eyes of one (Clemenceau) who took the view that European civil war is to be regarded as a normal, or at least a recurrent, state of affairs for the future. … Hence the necessity of ‘guarantees’; and each guarantee that was taken, by increasing irritation and thus the probability of a subsequent ‘Revanche’ by Germany, made necessary yet further provisions to crush. Thus … a demand for a Carthaginian peace is inevitable. … By loss of territory and other measures (Germany’s) population was to be curtailed; but chiefly the economic system … the vast fabric built upon iron, coal, and transport, must be destroyed. … 

It is evident that Germany’s pre-war capacity to pay annual foreign tribute has not been unaffected by the almost total loss of her colonies, her overseas connections, her mercantile marine, and her foreign properties, by the cession of ten per cent of her territory and population, of one-third of her coal, and three-quarters of her iron ore, by two million casualties amongst men in the prime of life, by the starvation of her people for four years, by the burden of a vast war debt, by the depreciation of her currency to less than one-seventh of its former value, by the disruption of her allies and their territories, by Revolution at home and Bolshevism on her borders, and by all the unmeasured ruin in strength and hope of four years of all-swallowing war and final defeat.

Al this, one would have supposed, is evident. Yet most estimates of a great indemnity from Germany depend on the assumption that she is in a position to conduct in the future a vastly greater trade than ever she has had in the past. …

We cannot expect to legislate for a generation or more. … We cannot as reasonable men do better than base our policy on the evidence we have and adapt it to the five or ten years over which we may suppose ourselves to have some measure of prevision. … The fact that we have no adequate knowledge of Germany’s capacity to pay over a long period of years is no justification … for the statement that she can pay ten thousand million pounds.

If we aim deliberately at the impoverishment of Central Europe, vengeance, I dare predict, will not limp. Nothing can then delay for very long that final civil war between the forces of Reaction and the despairing convulsions of Revolution, before which the horrors of the late German war will fade into nothing, and which will destroy, whoever is victor, the civilisation and the progress of our generation.

(1924 edn.)

According to Gilbert, writing in the mid-1970s, Keynes destroyed British faith in Versailles by opening the ‘floodgates of criticism’. For the following twenty years, the Treaty was ‘assailed by means of his arguments’. But he may have underestimated the difficulties of peacemaking in 1919. The task of the Allied statesmen was indeed difficult, because they had to take into account the views of the peoples of Europe, not just their leaders, in re-drawing the map of Europe. In the former treaties in Vienna in 1815, for instance, they only had the claims of the rulers to consider.

Lines on the Map of Central Europe:

In the main, Poles, Czechs, Slovaks, Romanians, Serbs and Greeks had every reason to be satisfied with the treatment they received. Though divided for a century, the Poles had never ceased to resist their conquerors, and they speedily asserted their independence on the collapse of their oppressors. They were generously supported at the conference. Clemenceau welcomed the renaissance of Poland as a bulwark against Germany and Russia, and Wilson had proclaimed at the outset that it was the duty of European statesmen to assist the Poles. The Czechs were a cultured people long oppressed who had resisted their Austrian masters in the nineteenth century. France realised that the position of their land gave the northern Slavs a strategic position in Central Europe, forming a barrier against potential Austrian and Hungarian aggression. President Wilson was impressed by the Czech leaders, who welcomed the setting-up of the League of Nations enthusiastically.

Czechoslovakia was, both industrially and politically, the most important of the new states which emerged out of the ruins of the Austrian empire. It consisted of Bohemia, a rich industrial and manufacturing region, with a fertile and intensively cultivated soil, densely populated with a literate people, the Czechs; Moravia, another important area, with a strategic position between the plains of the Vistula and the Danube, and the mountainous area in the Carpathians, Slovakia, where the cultivable areas were few and the minerals unimportant. The population there was sparsely distributed and illiterate; communications were difficult. Czechoslovakia, therefore, inherited from the Austrian Empire industrial wealth and fertile land which enabled it to be self-supporting. However, it still had large numbers of minorities along its frontiers, including Germans, Magyars and Ruthenians, which created internal difficulties in administration and led to unfriendly relations with Germany, Austria and Hungary, which surrounded it. These negated the advantages of its position in central Europe.

Romania had taken advantage of the weakness of Hungary to seize Transylvania, and the preoccupation of Russia with its civil war to take possession of Bessarabia; at the Peace Conference, it successfully asserted its claims to these on the grounds that Romanian people were in the majority. In many parts of these new territories, the ethnicities were very mixed, and the problem of achieving a fair division of the territories proved insoluble. In Southern Dobruja, however, there was unquestionably a Bulgarian majority, but this territory was left in Romanian hands. As a result of the Treaty of Neuilly in November 1919, Bulgaria was also forced to cede Western Thrace to Greece. The northern boundaries of Serbia and the Southern Slavs, what became the new state of ‘Yugoslavia’, were finalised under the Treaty of Trianon with Hungary in June 1920, but before that, Wilson supported the claims of the Southern Slavs against Italy, to whom the Allies had promised the lands along the Dalmatian coast, which was peopled by Slavs. Clemenceau agreed with Wilson, not because he was interested in the idea of satisfying the national aspirations of the Slavs, but because it afforded a practical method of detaching the provinces from Austria without the dangerous necessity of transferring them to Italy.

For the first time in modern history, Europe was divided along national lines, yet there were many injuries and injustices to minorities, especially to those who lived in the defeated countries. People of different nationalities, especially in the south-east of Europe, were inextricably intermingled; a great number of different solutions to the problems, apparently equally just, was possible. Frontiers which would enable nations to have a chance of economic existence had to be devised. To ensure this alongside satisfying national demands, the Allied statesmen were faced by an almost impossible task. Harold Nicholson’s views on the ‘mistakes’ and ‘misfortunes’ of the treaties scarcely changed over the years. He would argue that Britain’s freedom of action had been severely limited by its war-time treaties with Italy, France and Romania, and with the Arabs, in the short run beneficial but in the long run positively harmful. He would further argue that democratic diplomacy, being captive to narrow, partisan, democratic pressures, was ‘irresponsible’, and that the fundamental error of Versailles was the ‘spirit not the letter’ of the treaty. He blamed the peacemakers. They had not combined to elaborate a ‘formal procedure’, nor had they settled upon an ‘established programme’, the upshot being that their deliberations were ‘uncertain, intermittent and confused’.

The Allied Powers were in every case deliberately antagonistic to the claims of the defeated and it became obvious that decisions reached were frequently the result of other considerations than that of satisfying nationalities. Lands were transferred on the grounds that they were strategically important for the security of the new states, e.g. the Southern Tyrol, peopled by Austrians, was handed to Italy, while the German minorities of Bohemia, once in the Austrian Empire, were still included in the new northern Slav state of Czechoslovakia. Attempts were made to solve some of these difficult problems of satisfying nationalities by the use of ‘plebiscites’ where there was a doubt about to which state territory should be transferred. With the creation of the League of Nations, some states pledged to treat alien populations fairly and to respect their rights. The League undertook the responsibility of supervising the care of such governments towards their minority subjects. The map below illustrates the boundaries which were adjusted on the decision of the Allied statesmen as well as the principal areas where plebiscites were arranged:

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The new Austria comprised a large area of the Eastern Alps, of little economic importance except for its forests, alpine pastures and scenic attractions, and a small plain along the Danube surrounding Vienna and along the Hungarian border (Burgenland). A third of the country’s population lived in the old capital, previously one of the most important cities in Europe. It had thus attracted in pre-war days large numbers of officials engaged in government, banking, insurance, transport and administration. These professionals were no longer required in such large numbers by 1919, as Vienna no longer supplied the needs of so large an empire; neither were its newspapers, clothes and furniture required in great quantities any more. The luxury-manufacturers of the city were excluded from the new countries which surrounded it by their imposition of high tariffs, and Austria could not easily export goods to buy the food that its people could not grow for themselves. The satisfaction of the national aspirations of the various peoples included in the old Austrian Empire created economic problems which affected the prosperity of all the states. Each tried to be self-supporting and erected tariff barriers against the others. Though they came to realize the folly of these restrictions on trade, attempts to form a Danubian Trade Federation proved unsuccessful.

Germans in Austria were forbidden to unite with Germany under article eighty of the Treaty, despite being entirely German in language and culture. This was confirmed in the Treaty of St. Germain, by which Austrians in the Tyrol, Galicia and Bohemia were also left under alien rule. Control of Galicia, a wealthy area across the Carpathians, passed to Poland. Its soil was fertile and productive, with coal, iron, zinc, salt and petroleum resources also contained beneath its earth. The western part of the region was inhabited by Poles, but in the eastern part, the people were Ruthenians, creating a difficult minorities problem. Attempts made by these people to unite with their fellows in sub-Carpathian Ukraine (then part of the USSR) were frustrated by the Polish Government, and an insurrection was ruthlessly crushed by Pilsudski (see below) in 1919. South Tyrol and Trentino were both Alpine territories. In the latter the majority of the population was Italian, but in South Tyrol, the Germans were in the majority, and the union of both provinces to Italy created grave dissatisfaction.

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The Peace Settlement also disappointed Italy, however. The Allied offers made in the Secret Treaty of London by which Italy entered the war in 1915 were not fulfilled. Having acquired Trieste under this treaty, Italy now wished to consolidate its control over the northern Adriatic, including the entire Dalmatian coast down to, and including Albania. Meanwhile, the break-up of the Austrian empire had left the lands to be claimed by the Italians in the hands of the Serbians with the creation of Yugoslavia out of the south-western provinces of Croatia, Slovenia and Bosnia. They were largely mountainous areas of little economic importance. Their people were largely Slav in identity and so united with the Serbs to form the new Kingdom of the Serbs, Croats and Slovenes, which soon became known as Yugoslavia. Although a large country, its economic resources were limited and undeveloped. Its population also included large Magyar, German and Albanian Muslim minorities, within a country already combining Roman Catholic and Eastern Orthodox Christians. From the beginning, the Croats resented the greater influence of the Serbs and therefore grew closer to their coreligionist Germans.

Italy failed to secure what it had been promised in 1915, the Dalmatian Coast, including Istria, and a Protectorate over Albania (see the map above). It did not even secure the port of Fiume, ‘the jewel of the Adriatic’, which had a large Italian population and had become a symbol of Italian nationalism and at the centre of Italy’s demands. In August 1919, Harold Nicolson attended an Allied meeting in Paris convened to sort out these problems. Italy put forward a series of transparent formulas designed to mask its true aims. The Italian delegate, M. Scialoga, suggested that Fiume and its hinterland should be recognised as a ‘free state’, but the island of Cherso, which dominated and effectively blocked the Gulf of Fiume, should be annexed to Italy, as should the high ground surrounding the port. The railway system, extending from Fiume island, should also be under Italian control. Abandoning all claims to Dalmatia, Scialoga nevertheless insisted that the Dalmatian coast must be neutralised, and called for Italian sovereignty over certain key areas; the zone of Zara, for example. Lastly, he put in a claim for a mandate over Albania.

By these means, Italy hoped to achieve mastery of the Adriatic, but their strategies failed to gain support from the British and the Americans, though the French were prepared for a deal ‘on any terms’. Nicholson backed the American delegate, Major Johnson, in repudiating Italian claims to Fiume and Istria. Eventually, it was agreed to set up Fiume as ‘a free city’, an arrangement ultimately accepted by both Italy and Yugoslavia. Bitterly disappointed, however, the Italians turned on their government, and there was great discontent throughout the country. This manifested itself in September 1919, a month after the Paris talks, when a group of soldiers, led by D’Annunzio, an admired national poet, attacked and seized Fiume. Nicholson considered him a fine poet, but a political dimwit, barnstorming out of ‘sheer swank’. D’Annunzio’s posturing proved him right. The Allies forced the Italian Government to expel them, and they returned to Italy indignant and disgusted at the weakness of their government.

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Polish leaders realised that the War provided them with an opportunity to gain their freedom, though at first they did not anticipate complete independence and struggled only for self-government. Though the mass of the Poles fought in the Russian armies, an influential group, led by Pilsudski, supported Austria. In 1918 a group of Poles organised a National Committee in Paris and raised an army which fought on the Western Front. The Allies in return promised the Poles to complete independence. The independent Polish state was proclaimed at Warsaw and in Galicia immediately after the collapse of the Central Powers. The new state was represented at the Peace Conference, and its independence was recognised. The western frontier was agreed upon, with the provinces of Posen, West Prussia and Galicia to be included in the new Poland. The eastern frontier was settled provisionally, with the disturbed state of the Soviet state giving the Poles an opportunity to secure a more favourable frontier than they had had to begin with.

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President Wilson had promised that Poland should have access to the sea. This involved adding to the indisputably Polish territory an area along the coast west of the Vistula delta in which there was a mixed population of Germans and Slavs. Germany strongly objected because East Prussia would be cut off from the rest of Germany; when the German President wished to visit his family estates in East Prussia he would have to cross a foreign state. In spite of the fact that its population was overwhelmingly German, the Poles claimed that the city of Danzig was the ‘natural outlet’ of the Vistula basin (see map above left). A compromise resulted in the creation of the tiny independent state of the ‘Free City of Danzig’, under the supervision of the League of Nations. Neither Germany nor Poland was satisfied with this arrangement, however. The fate of Upper Silesia was eventually settled by plebiscite (see map above right).

The division of the former Austrian territory of Teschen, an area with valuable coal-mines and the centre of a major railway network, on the Polish-Czechoslovak border, was arranged by the Allied Statesmen. How many members ever heard of Teschen? Lloyd George asked the House of Commons, disarmingly admitting that until recently he had not. Teschen presented the peacemakers with an intriguing problem: whether to honour the sacrosanct principle of national self-determination; or whether to secure the prosperity of a model, democratic state emerging in central Europe. Edvard Benes, then Foreign Minister of Czechoslovakia, told Nicolson, who had been charged with producing a report, that the fate of Teschen depended on the attitude adopted by the British Delegation. The territory was ethnically Polish by a ratio of two to one, but it was considered essential to Czechoslovakia’s economic well-being. In early 1919 fighting had broken out between the rival parties, a ceasefire being imposed by the Allies with some difficulty. Nicolson set out the options for the delegation: either appeasing Polish nationalism or, more precisely chauvinism, as he saw it, or allowing Czechoslovakia some economic breathing space. There was considerable friction between Poland and Czechoslovakia over this; the final settlement, reached after strong French pressure, effectively partitioned the region: the Czechs acquired the coal mines and most of the industrial basin of approximately 1,300 square kilometres; the City of Teschen was divided into Polish and Czechoslovak quarters, with the latter containing the invaluable railway station.

Policies of Punishment & Appeasement – Britain & France:

For the following ten years, Gilbert claimed, appeasement was the guiding philosophy of British foreign policy. British official opinion doubted whether a secure Europe could be based upon the treaties of 1919, and had strong hopes of obtaining serious revisions to those aspects of the treaties that seemed to contain the seeds of future conflict. With the disintegration in 1918 of the Russian, Turkish, German and Austro-Hungarian Empires, the final stage had been reached in a process that had begun in Europe during the Napoleonic wars – the evolution of strictly national as opposed to dynastic or strategic frontiers. Post-1918 diplomacy was geared towards securing the final rectifications of frontiers still not conforming to this principle. Most of these frontiers were the result of the Versailles boundaries which had been drawn to the disadvantage of Germany. Thus there were German-speaking people outside, but contiguous to the German frontier with Poland and Czechoslovakia. Many Germans lived in the frontier provinces of Alsace-Lorraine and Holstein, which were also lost to Germany. Germans in Danzig and Memel were detached from their mother country. The claims of Poland were preferred to those of Germany in the creation of the Polish Corridor to the sea and the in the division of the Silesian industrial area.

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There were other national ‘inequalities’ which were also part of the Versailles Treaty, and which were equally prone to the ‘egalitarian touch of appeasement’. The German Government could only maintain itself against communist and nationalist opponents by a continuing protest against the impossible severity of the reparations clauses of the Treaty. They docilely submitted to the disarmament provisions at first. The problem of the next few years was how to square what France regarded as her rights and necessities with the hard facts of the difficult and dangerous situation Europe was in. For France, the War had ended in anxiety and disappointment. Germany had been defeated, but that defeat had not been the victory of France alone; without the help of Britain and America, the French leaders knew that they would have been beaten to the ground. The glory which was due of their soldiers’ heroism was revealed as tarnished and insubstantial. With a population of forty million, France had to live side-by-side with a population of sixty or seventy million who were not likely to forget Versailles. As John Buchan put it, …

She was in the position of a householder who has surprisingly knocked out a far more powerful burglar, and it was her aim to see that her assailant was not allowed to recover freedom of action. Therefore her policy … must be to keep Germany crippled and weak, and to surround her with hostile alliances. The terms of the Treaty, both as to reparations and disarmament, must be interpreted according to the strict letter. No one can deny that her fears were natural. It is easy for those who live high above a river to deprecate the nervousness of one whose house is on the flood level.

To Britain, it seemed that, with every sympathy for French anxiety, it was impossible to keep a great Power in perpetual tutelage, and that the only hope for France, as for the world, lay in establishing a new international system which would give political security to all its parts. Lloyd George, while he remained in power, strove honourably for this end. The disarmament of Germany, while France rearmed, was a German grievance which could either be met by disarming France or allowing Germany to rearm. Both alternatives were considered by British policy-makers, and when the first proved impossible to secure, the second became logically difficult to resist. A further ‘inequality’ was the exclusion of Germany from the League of Nations. British policy worked for German inclusion and looked forward to a time when the differences between the ‘Allied’ and ‘Enemy’ Powers, as embodied in the Treaty would disappear. The policy of appeasement, as practised from 1919, was wholly in Britain’s interest, of course. Britain’s policy-makers reasoned that the basis of European peace was a flourishing economic situation. Only by success in this policy could Britain avoid becoming involved, once again, in a war arising out of European national rivalries and ambitions.

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At Paris, the British diplomats had vacillated between the Americans, who contended that under the League of Nations all international disputes would be settled by ‘sweet reasonableness’ and the French, who, obsessed with their own security, suffered from no such illusion. Harold Nicholson took his reasoning a step further by suggesting that if only the British had wholeheartedly supported either the American or the French perception of peace, a golden age of worldwide tranquillity and harmony might have been inaugurated for a century. Nicholson also remained consistent in his view that war-torn Paris was clearly the wrong venue for a peace conference. Geneva, he wrote, would have been a more judicious choice. In addition, given the circumstances, with passions running high among both public and politicians, he would have preferred to see an initial treaty followed by a final one, after a suitable cooling-off period. With the Congress of Vienna still in mind, he argued that it was a grave mistake to have treated Germany as a ‘pariah state’: the stability of Europe would have been better served by inviting it to participate in the conference, particularly as Bolshevism threatened to despoil the defeated country further. He damned the reparations clauses as patently absurd. As a result of the infamous ‘war guilt’ clause, the peace which emerged was unjust enough to cause resentment, but not forcible enough to render such resentment impotent. Summarising his overall disillusionment, Nicholson wrote (in 1933):

We came to Paris confident that the new order was about to be established; we left it convinced that the new order had merely fouled the old. We arrived as fervent apprentices in the school of Woodrow Wilson; we left as renegades.

If he had had to choose a hero at Paris, he would surely have chosen Lloyd George, fighting valiantly for a moderate peace, with Venizelos, the Greek Prime Minister, and Smuts running a close second and third. Until the end of 1919, Nicolson was based mainly in Paris, working for Sir Eric Drummond, a senior Foreign Office mandarin and designate Secretary-General of the League of Nations. He was supremely confident that the League was a body which was certain to become of vital importance. … a great experiment. He was also putting the finishing touches to the treaties with Austria, Hungary, Bulgaria and Turkey. Lloyd George and Balfour had left Paris to immerse themselves in Westminster politics. Much committee work was delegated to him, particularly on those bodies dealing with the Czechoslovak and Greek questions. He scored a minor success regarding the vexed question of Teschen, and continued his involvement with the Austrian and Bulgarian treaties and delineating Albania’s frontiers in the face of Yugoslavia’s demands. He clashed with Lloyd George over the Italian policy, arguing for a tougher line in view of Italy’s recent mischievous behaviour. Lloyd George responded angrily: The Foreign Office always blocks me in whatever I wish to do. But as the year drew to a close, the most pressing issue was how to meet British commitments to Greece, an undertaking that was slowly but relentlessly unravelling.

Independence Struggles & Imperial Designs:

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Above: (Unofficial) President Eamon de Valera inspects an IRA unit of ‘levies’

Refusing to sit in the British Parliament, the Sinn Féiners continued to meet in the Dublin Dáil (parliament), where they had declared the Republic of Ireland earlier in the year (see part one of this article). Eamon de Valera was elected President of the Republic and the MPs also elected their own ministers, set up their own law-courts and disregarded the authority of the Crown and the British Parliament altogether. Although severe measures were taken against them and the Dáil was suppressed, British law and order could not be restored. After the failure of the appeal to the Peace Conference in Paris, and amid the growing repression of Republicans, a more coherent campaign began for independence began, leading to the outbreak of a brutal war between the levies of the Irish Republican Army (IRA) on the one side and the police on the other, enlarged by the “Black and Tan” auxiliaries, a part of the British army. James Craig, the Ulster Unionist MP and founder of the protestant paramilitary Ulster Volunteer Force, who became the first Prime Minister of Northern Ireland in 1921, was already preparing for ‘partition’ in 1919:

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From 1919 to 1921 the IRA killed hundreds of policemen and soldiers, and the police and ‘black and tans’ killed hundreds of IRA men in retaliation. In Dublin, there were IRA men and women everywhere, but it was hard for the British to find them. Michael Collins, the IRA leader, was known to the British authorities as a prisoner after the 1916 Uprising, but they didn’t even have a photo of him.

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Meanwhile, another imperial dream came true in 1919 when Cecil Rhodes’ ‘Cape to Cairo’ scheme came into fruition when Britain took Tanganyika (now Tanzania) from Germany, completing that chain too. The Union of South Africa took over the administration of South-West Africa from Germany, and the spoils in the south Pacific were divided between Australia and New Zealand. With Britain’s existing Dominions and colonies, this all meant that the British Empire in 1919 was more extensive than it had ever been. But in fact, while the war had added new colonies to Britain’s ‘collection’, it had also weakened her grasp in her old ones. In the self-governing dominions, the co-operation with Britain which imperialists gloried in was misleading. That they had co-operated in wartime did not necessarily signify that they wished to be shackled in peace. The Great War was a European war which Britain only just won, with their support and at great cost in lives, especially for the ANZACs. Gallipoli had been just one of many defeats along the way; in itself, this had damaged the prestige and authority of the ‘mother country’. She had had to issue ‘promissory notes’ of ‘self-determination’ to the Egyptians, the Palestinian Arabs and the Indians, which they expected her to honour. The war had therefore provided an opportunity for a more vigorous assertion of nationalism with a harder edge than before.

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The overthrow of the Turkish armies in 1918 was complete; all the provinces from the Mediterranean to the Persian Gulf were overrun, and the great cities of Baghdad, Jerusalem, Damascus and Aleppo were captured. The Turks were forced to acknowledge defeat and signed an armistice at Mudros in October 1918. Allied troops occupied Constantinople. However, it soon became apparent that settling the conflicting claims of the victorious powers would prove very difficult. By secret treaties made during the war, promises of Turkish territories had been made to Russia, Italy, France, Greece and to the Arabs. The Allied statesmen postponed the settlement of the difficult issues until they had settled the more urgent needs of Europe. They permitted the Greeks, however, to occupy the port of Smyrna in 1919 and supported the occupation with an Allied fleet. This action aroused indignation among the Turks.

The ‘Greek question’ had begun on a high note, with a virtual agreement between the British and American delegations in meeting most of the Greek Prime Minister Venizelos’s territorial goals. These included Smyrna and its hinterland, roughly corresponding with the Ottoman vilayet of Aydin, some form of international régime over Constantinople, and the whole of western and eastern Thrace up to the vicinity of the Turkish capital, claims that, if realised, would have given the Greeks control over the Straits. Harold Nicolson was, initially, among the many who fell for Venizelos’s charm, but he soon recognised, as did the Americans, that the Greek PM’s extravagant empire-building heralded disaster. Harold was instructed to inform Venizelos that there would have to be a compromise regarding the future of Thrace. Then the Smyrna landings were besmirched by Greek atrocities against the local Turkish populace, which sparked off the Turkish national revival under the leadership of Mustafa Kemal (Ataturk).

Map of the Sykes–Picot agreement, which was signed by Mark Sykes and François Georges-Picot on May 8, 1916.

In the British Empire, the support and the opportunity for colonial aggrandisement were both there; consequently, the main result of the war for Britain was a considerable augmentation of its empire. The middle east was divided up in accordance with the secret war-time Sykes-Picot agreement (see map above, showing the division into ‘A’, for France, and ‘B’ for Britain). The Arabs were given the Arabian desert, Britain took for herself Palestine, Transjordan, the Persian Gulf states and Iraq: which together with its existing protectorates in Egypt, Cyprus and Aden made up a tidy little middle-eastern empire. Of course, Palestine and the other middle-eastern territories were not ‘annexations’ or even ‘colonies’. They were called ‘mandated’ territories (see the map below), which meant that they were entrusted to Britain and France by the League of Nations to administer in the interests of their inhabitants with a view to their eventual independence. Nevertheless, this award almost fulfilled Curzon’s old dream of a continuous belt of influence or control between the Mediterranean and India, which was completed in August 1919 when the final link in the chain, Persia, was secured by means of a one-sided, widely resented treaty.

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In India, General Dyer’s violent massacre of the crowds at Amritsar considerably increased the natives’ resentment and united Hindus, Muslims and Sikhs against the British ‘Raj’. ‘Mahatma’ Gandhi continued to mount his campaign of ‘passive resistance’, encouraging his mainly Hindu followers to refuse to co-operate with the British Government. Dyer’s unnecessary action was the child of the British mentality then dominating India. Jallianwalla Bagh quickened India’s political life and drew Gandhi into politics. In his evidence to the Hunter Committee Appointed by the Government of India to Investigate the Disturbances in the Punjab, given in November, he re-articulated his commitment to passive resistance and non-violence, Ahimsa, without which he said that there would be confusion and worse. He stated:

All terrorism is bad, whether put up in a good cause or bad. Every cause is good in the estimation of its champion. General Dyer (and he had thousands of Englishmen and women who honestly thought with him) enacted Jallianwalla Bagh for a cause which he undoubtedly believed to be good. He thought that by one act he had saved English lives and the Empire. That it was all a figment of his imagination cannot affect the valuation of the intensity of his conviction. … In other words, pure motives can never justify impure or violent action. …

Gandhi had always resisted political involvement. After his return to India, he had attended annual sessions of the Congress, but his public activity at these assemblies was usually limited to moving a resolution in support of the Indians in South Africa. But on the other hand, he was not simply interested in building a mass movement. In his November testimony, he commented:

I do not regard the force of numbers as necessary in a just cause, and in such a just cause every man, be he high or low, can have his remedy.

In Gandhi’s non-cooperation campaign, his followers boycotted British goods, refused to teach in British schools and ignored the British courts. They were imprisoned but offered no resistance. Gandhi’s programme included a number of ‘self-improvement’ elements:

  • the development of hand-weaving in the villages;

  • the prohibition of drugs and spirits;

  • the granting of increased freedom to Hindu women;

  • the co-operation of Hindus and Muslims;

  • the breaking down of the ‘caste system’ as it affected the ‘Untouchables’, the lowest class of Hindus, who had been debarred from the communal life of India (they were banned from the temples and were not allowed to use the drinking-wells in the villages.

These points were also the key elements in his Satyagraha, his struggles with truth or the ‘spiritual force’ of non-violent resistance to British rule which dominated the next the next three decades in the campaign for Swaraj, the ‘self-rule’ or Independence of India.

Race Riots and Reconstruction in Britain in 1919:

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As 1919 progressed, civil strife in Britain continued, principally among the miners, shipbuilders, railwaymen and farm workers, that is, in the declining sections of the economy. The standard of living had improved dramatically during the war, and the working-classes were determined to resist any diminution in their wages when it came to an end. There were also mutinies among those awaiting demobilization in the armed forces which reminded the upper classes uncomfortably of the Russian Revolution; they were followed by a series of strikes which led The Times to proclaim that this war, like the war with Germany, must be a fight to a finish (27 September 1919). The railwaymen, miners and transport-workers formed themselves into a ‘triple alliance’ in which they agreed to support each other in disputes.

The ‘showdown’ did not begin in earnest until 1921 and came to an end five years later, but in 1919 comparisons were drawn with the unforgiving bitterness of class war on the continent. The social divisions within Britain, however, were always mitigated by a number of factors: a common heritage of what it meant to be British; reverence for the monarchy; a residual common religion and national churches; the instinctive ‘communion’ of sport and a saving, self-deprecating humour.

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This popular myth of social integration in Britain was exposed as somewhat fraudulent when it came to matters of ‘race’, ‘colour’ and ethnicity, however. The Cardiff ‘Race Riots’ of 1919 were an attack on the black and coloured community of Cardiff living in districts adjoining ‘the Docks’ when certain boarding-houses occupied by them were attacked. At 10.15 p.m. on the night of Wednesday 11 June, disturbances broke out in Butetown, as a result of an earlier incident involving black men and their families returning from a picnic. Some white women accompanied by coloured men had been passing in carriages through one of the main streets of Cardiff (possibly St Mary’s Street, see map above). When uncomplimentary remarks were made by people in the street, the coloured men left the carriages and an affray took place in which a number of white men and Police were injured. Some five minutes later, a white man named Harold Smart was killed. This escalated events as crowds were formed and began a more serious assault on Butetown, where the black population lived. The next day a prolonged storm restricted the disturbances until it cleared in the evening. About eighty soldiers were held in readiness, but the police and stipendiary magistrate deemed it unnecessary to use them. The Chief Constable’s report of the disturbances provides a clear statement of the distribution of ethnic settlements in 1919 and the effect of this on policing:

The coloured men comprised principally West Indians, West Africans, Somalis, Arabs and a few Indians. They live in boarding houses kept by coloured masters in an area bounded in the north by Bridge Street, the east by the Taff Vale Railway not very far distant, on the West by the Glamorganshire Canal, and on the South by Patrick Street. Some of the Arabs and Somalis live in the northernmost portion of this area but the majority, particularly the West Indian negroes, live in the southern portion. The area is divided by a junction of the Glamorganshire Canal which has two bridges, one in Bute Street and one at East Wharf.

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The riots ripped through Cardiff’s Docklands. Credit: British Pathe

At first, the violence centred on the multi-ethnic neighbourhood of Tiger Bay. But it quickly spilt over to other parts of Cardiff. The police concentrated their attention on the southern portion of the area and, having secured this, they proceeded to clear the northern area, although they failed to prevent damage being done there. That evening many of the attacks were concentrated in that zone, while the police continued to defend the southern area, which had long been seen as the proper place for black minorities, known as early as 1907 as ‘Nigger Town’. The police decision to defend that area may have owed something to their view of what the proper social geography of the city was. The Northern district became a ‘no go’ area for blacks during the riots, and some black families had to move out of their homes, though they returned afterwards. Physical boundaries between, for example, the blacks and the Irish, were very important, and the policing of 1919 played its part in strengthening them. The Police claimed that they had done their best to cope with the Riots. After the turbulence had subsided, the Chief Constable observed:

The coloured races, the majority of whom were practically segregated in their own quarter in Bute town, are showing a tendency to move more freely in that portion of the city where the disturbances took place. … The police made strenuous efforts and succeeded in keeping the white population from the Southern portion by guarding the bridges as otherwise if they had penetrated into that area the black population would have probably fought with great desperation and inflicted grave loss of life.

Below – A newspaper report from June 1919:

riots newspaper

Credit: ITV/Glamorgan Archives

What were the causes of the riots? They were sparked by racial tensions during a period of acute unemployment. In Cardiff’s docklands, servicemen who had returned from the war found themselves competing for jobs with a local workforce of largely black and Asian men, who were also desperate to make ends meet. The Chief Constable summarised the grievances of the black population as follows:

The coloured men resent their inability to secure employment on ships since the Armistice as they are being displaced by white crews; 

They are dissatisfied with the actions of the Government;

They regard themselves as British subjects;

They claim equal treatment with whites and contend that they fought for the British Empire during the war and manned their food ships during the submarine campaign.

newspaper 'negroland'

By June, unemployment was a serious problem among the black community. According to the Chief Constable, the number and ‘nativity’ of the coloured seamen who were unemployed and living in the port were as follows:

Arabs – who claim to belong to Aden:  400

Somalis:  200

Egyptians:  50

Portuguese; Indians, Cingalese and Malays:  60

West Africans – Sierra Leone: 100

West Indians:  400

Roughly a half of these were seamen of different grades and the other half consisted of different men who had no experience as seamen until the war made it necessary to recruit them to man British Merchant shipping. Four of the principal Arab and Somali boarding masters met the Chief Constable in the middle of June to ask him to make representations to the Government on their behalf, as they had a large number of men ‘on their hands’ who were in debt to them and wholly dependent on them for subsistence. Some of these men had been unable to get a place on a ship for the past six months. This was, in part, due to the imposition of a ‘colour line’ on the engagement of crews.

newspaper 'wild scenes at Cardiff'

The race riots of 1919 brought bloodshed to Cardiff. Three men died and hundreds more were injured. That same summer, the South Wales docklands of Newport and Barry also experienced brutal outbreaks of racial violence. The effects of the riots rippled throughout the Empire. From the start, the police felt that the answer lay in repatriation and this suggestion was made to the Home Office in a telephone conversation after the first two nights of the riots. However, the scheme which was introduced offering financial inducements failed to have an impact, unable to tempt people out of their established homes and relationships. Some were married to white women and so could not be repatriated; for other married men, the terms were simply impracticable. The funds available covered only a fraction of the costs involved and proved impossible to administer fairly. By August of 1919, some six hundred men had been repatriated. The voyages did not prove to be plain sailing either. The SS Orca which sailed from Cardiff on 31 August with 225 black mercantile ratings on board experienced what its owner described as a mutiny, exacerbated by the fact that the seamen went on board with arms, including revolvers, in their possession. The mutiny was instigated by a group of eighty prisoners who were boarded at Le Havre, but the mercantile ratings joined in what became a ‘general uprising’.

Nor did discontent end when they arrived in the West Indies. One group of repatriated men sent a complaint about their treatment to the Acting Governor of Jamaica. This took the form of a petition, dated 1 October 1919, in which they claimed that there had been an undercurrent of hostility towards blacks in Britain for some time before the riots began:

… there was a premeditation  on the part of the whites which savoured of criminality that before the mob started the race riot it was published in a newspaper in England that the Government must deport all the coloured people in England. … it was also further published that if the Government did not deport the coloured they the whites would take the law in their hands and see to it that they be got rid of;

… as we heard the cry of riot in the streets knowing that we were and are still loyal British subjects we kept in our houses but this did not deter the whites from their wanton and illegal attack for on the following day our houses were attacked… and we were compelled to hide ourselves in our houses as the rioters (whites) outnumbered us in the ratio of 100 to 1… and as we had no intention of rioting we had to lock ourselves in all the time and at one o’clock in the night we were taken out of our houses by the Government Black Maria and there locked up for days before we let out. … while the Government was taking out some of us the rioters… were setting fire to some of the coloured lodging houses; 

… on the following day a detective was detailed and sent round to all the houses taking statements of our entire debts and after receiving same he told us that the Government would give us the amount of money to pay same and when we arrived at our native home (British) we would receive ample compensation for our ill-treatment as we were bound to leave on the first ship; if we didn’t worst trouble would come on us.

… the riot by the whites on us was going on for fully eight days before the Authorities there could cope with it and attempted to take any proceedings to stop it.

… we have no monies; we are in a state of almost want and destitution having to move away so quickly all our belongings goods and chattels were left behind all we have to subsist on is the 25/- which was given to us by this Jamaica Government and this is a mere trifle as the high prices of food stuffs and the high cost of living, food, clothing etc. make it hard to live on.

In response to the allegations made in the petition, the police claimed that they were not aware that racial feeling was incited by the publication of articles in the press. Welsh Labour historian Neil Evans has suggested that this more general atmosphere of hostility was partly in response to racial clashes elsewhere in Britain and stemmed from the general mood of chauvinism engendered by the war. The authorities in Cardiff denied that any houses were fired during the riots, but reported that some furniture had been burned. They also denied the claim that ‘refugees’ were taken from their houses by night and conveyed in a “Black Maria”. The repatriation scheme was in place before the riots under the administration of the Board of Trade. Apparently, the Treasury arranged for payment of a re-settlement gratuity of six pounds per man on his arrival in his colony of origin. The Town Clerk of Cardiff claimed that the Riots only lasted for two days and were intermittent rather than continuous.

The Corporation had agreed on compensation claims to two of the boarding-house keepers and twelve other claimants, who had left Cardiff without leaving a forwarding address. But when some of the repatriated men arrived in Trinidad, the stories of their mistreatment in Cardiff played a part in the upheavals on the island in December 1919. One particularly gruesome story circulated there that a crowd in Cardiff had stopped the funeral of a black man, decapitated him and played football with the head. There is no documentary evidence of this, but references exist, apparently, in Colonial Office Papers. Eye-witnesses asserted later that the press had not told the full story of the riots, and that many violent incidents associated with the outbreak had not been reported to the police. Some of this testimony has only recently come to light. Leslie Clarke’s family found themselves caught up in the conflict. Leslie’s mother and grandparents were living in a quiet terraced street in the Grangetown area of the city, near where this author used to live as a student in the early eighties.

somerset street
                           Above: Somerset Street in Grangetown. Credit: ITV Cymru Wales

Leslie’s grandmother was white; her grandfather was from Barbados: “A thousand people came rioting down the street looking for black people,” Leslie explained in a 2018 interview for HTV Wales.

Leslie's grandmother
                         Above: Leslie’s grandmother, Agnes Headley. Credit: Leslie Clarke 

“So my grandmother persuaded my grandfather to go out the back way and to climb over the wall and go and hide. She reckoned that nobody would hurt her.

“But they did. They beat her up. They beat her really badly.

“My mother was only nine at the time and she was terrified. She hid behind my grandmother’s skirts.”

Leslie's mother

Above: Leslie’s mother, Beatrice Headley. Credit: Leslie Clarke

 

The family home was looted. Rioters doused the downstairs rooms with paraffin, planning to set the building on fire. All that stopped them lighting the fuse was the discovery that the house was rented, owned by a white man. Leslie’s grandmother never recovered from the incident:

“She changed from then onwards. From being a bright, confident woman she became very withdrawn and quiet. She suffered a lot.”

Quite clearly, much of this oral testimony of the victims of the riots was not shared at the time because of fear of further reprisals. Even in recent years, white supremacists and extremists have continued to publish propagandised versions of the Riots. Despite the claims and counter-claims, the black ratings’ petition provides further evidence of such incidents and is a rare example of black victims’ viewpoint of racial violence, which would otherwise be hidden from history. In modern-day Cardiff, you won’t find any reminders of those riots. No memorial, no marker. They’ve become a forgotten chapter in the city’s history.

The promised post-war economic ‘Reconstruction’ of Britain was, however, not quite the ‘myth’ that some historians have made it out to be. In the economics of heavy industry, ‘war socialism’ disappeared as Lloyd George always meant it to, and with it went the sense, in the Labour movement at least, that an activist government would do something to moderate the inequities of the old industrial system. The coalition government, largely Conservative and Unionist in composition, was determined to dismantle as quickly as possible the state control of raw materials, manufacturing, communications, wages and rents. Demands by the trade unions for the nationalisation of the coal industry, the docks and the railways were swiftly swept aside. The termination of ‘war socialism’ and the restoration of monetary orthodoxy became synonymous with post-war ‘reconstruction’ in Britain. Tory traditionalism trumped any idea of the development of social democracy along continental lines. But there was still room for a continuation and perhaps completion of the ‘new Liberal’ reforms which had led to a nascent ‘welfare state’ before the crises of 1910-1914 and the impact of the World War.

The liberal historian and president of the Board of Education, H. A. L. Fisher raised the school-leaving age to fourteen, a small act, but one of immense significance, and wages and salaries were standardised throughout the country. Old-age pensions were doubled, and unemployment insurance extended to cover virtually the entire working population of Britain. Through the extended Unemployment Insurance scheme, which began to operate at the beginning of 1920, the state became involved in the ‘problem’ of unemployment in a way it had never been before the First World War. This was to lead, through all the stumblings of a stubborn mule, into unparalleled intervention in the social conditions of working-class communities throughout the nations and regions of Britain. Mass unemployment was to become a new phenomenon in the inter-war years, and one which had not been properly quantified before the War. The pre-war trade union figures had revealed an annual rate of under five per cent between 1883 and 1913, never getting above eight per cent. Between 1912 and 1914 London had the highest level of unemployment with an average of eight per cent, whereas south Wales had the lowest level at under three per cent. In the decade following the end of the war, these positions were entirely reversed, and average unemployment increased by as much as tenfold in certain regions and ‘black spots’.

Party Politics, ‘Pacifism’ & Foreign Policy:

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During the war, party politics had been discarded, and the Coalition Government was set to continue under Lloyd George. In 1918-19 the Liberal Party was in a grave condition due to its internal divisions and the Labour Party had taken its place as the main party of opposition. It appeared that the party structure might change profoundly. In one way or another, it can be argued that the ‘challenge of Labour’ after the war confronted all the politicians who had come to prominence before 1914. Their uncertainty moving forward was to be compounded by the major extension of the franchise, among all adult males and partially among females in 1918. Lloyd George was convinced that he could govern through a combination of sheer charisma and tough political muscle. The coalition faced little opposition in parliament, where there were only fifty-nine Labour MPs and a withered ‘rump’ of ‘pure’ Liberals led by Asquith, who had never got over Lloyd George’s ‘coup’ against him in 1916. The prime minister rarely put in an appearance, preferring to preside instead from Downing Street, which became headquarters for a circle of cronies. Honours were up for sale and insider commercial favours were expected in return. Under the leadership of J. Ramsay MacDonald (pictured below), the Labour Party had adopted a Socialist programme in 1918; so for the first time, the party system had to adapt to the two opposition parties, Labour and the Asquithian Liberals, holding fundamentally opposite views. It failed to do so.

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As early as 1919, it was evident that the relationship between the new democracy, based on universal suffrage, and foreign policy, might have to be worked out afresh in an international environment which was still far from stable. During the war, a group of intellectuals, publicists and politicians, both Liberal and Labour, had formed the Union of Democratic Control. In the view of this group, the outbreak of war had shown the futility and inappropriateness of existing diplomatic procedures and assumptions. Secret diplomacy belonged to a bygone era and it was time to involve ‘the people’ in policy-making, or at least to ensure that there was democratic control over decision-making. However, when it came to details, there was little unanimity about how either ‘democratic control’ or the League of Nations was to work. For some, the former concept went beyond parliamentary control and there was talk of plebiscites and referenda. Others concentrated on trying to devise mechanisms whereby the executive would be subject to scrutiny and restraint by various foreign policy committees of the House of Commons.

There was another popular post-war myth, that ‘the British people’ were inherently pacific and had only been involved in wars by the machinations of élites who initiated conflicts for their own ends. These views enjoyed some support and bore some influence on policy-makers. They blended with the contempt for secret treaties displayed both by Vladimir Lenin on the one hand and Woodrow Wilson on the other. They also related, albeit awkwardly, to the enthusiasm for the League of Nations on the centre-left of British politics. The more these matters were considered, however, the more difficult it became to locate both ‘foreign policy’ and ‘public opinion’. A similar range of views surrounded the League of Nations. Some supporters saw it as an embryonic world government, with ‘effective’ military sanctions at its disposal, whereas others believed that its essential purpose was to provide a forum for international debate and discussion. Enthusiasts supposed that its creation would render obsolete the notion of a specific British foreign policy. But, at the end of 1919, supporters of these new concepts and structures were still four years away from truly coming to power.

Sources:

John Buchan (1935), The King’s Grace, 1910-1935. London: Hodder & Stoughton.

Irene Richards, et. al. (1938), A Sketch-Map History of the Great War and After. London: Harrap.

Norman Rose (2006), Harold Nicolson. London: Pimlico.

J. M. Keynes (1919, 1924), The Economic Consequences of the Peace. Basingstoke: Macmillan.

Neil Evans (1983), The South Wales Race Riots of 1919: a documentary postscript. Llafur (The Journal for the Study of Welsh Labour History), III. 4.

ITV REPORT, 3 November 2018 at 9:00am, https://www.itv.com/news/wales/2018-11-03/one-thousand-people-came-rioting-down-the-street-reliving-a-notorious-chapter-in-cardiffs-past/

A Pictorial Appendix – These Tremendous Years:

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Below: Piccadilly in 1919. Note that it is not a roundabout, and there was still room to move at walking pace across Piccadilly Circus. Note also: The “Old Bill” type bus, on what is now the wrong side of the street; as many men in uniform as not; “As You Were,” on at the London Pavilion; the ageless violet seller installed on the steps of Eros.

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Above: The Summer of 1919 was very hot. The grass was burnt yellow, and the cricket ball dropped like a cannonball on the cracked earth. Victory weather, just right for a summer of Peace parades and celebrations. And just right for those who had to sleep out: the returning warrior found London short of houses.

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Lady Astor, the first woman M.P., went to the House of Commons dressed as above. She was elected member for Plymouth in a by-election. Her speech after the declaration of the poll began: “Although I cannot say that the best man has won…” This first woman M.P. took the oath in the House sponsored by Lloyd George and Balfour. “I wish to be regarded as a regular working member,” she said, “not as a curiosity.”

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A Century Ago: Britain & the World in 1919 – ‘The Year of Victory’: Part One.   Leave a comment

Part One – January-June: A Tale of Five Cities.

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The Winding Road to World Peace:

The New Year’s Eve of 1918 that hiccupped a welcome to the first year of peace began a long procession of almost hysterically happy crowds which took possession of London on every possible excuse. Life was not yet back to normal (it never got back to whatever ‘normal’ was): food was only beginning to be de-restricted – meat, sugar and butter coupons were no abolished until August; five million men were taking time to demobilize and were not finding jobs easily, and money was short. Any spare money was needed by the country, as the photograph of Trafalgar Square at the top of this article shows. The Victory, or “Peace and Joy” loan brought in forty million pounds in three days, and the smallest amount that could be invested was five pounds. The total collected was seven hundred million. By November 1919 there would be just 900,000 still in ‘khaki’ uniforms. The wounded, like those photographed above, later in the year, were given blue uniforms. More than two million were wounded, and in January one man died as a result of a bullet wound received in 1918.

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At the beginning of 1919, “Hang the Kaiser!” was the cry in Britain. The newspapers discussed who would be his judges when he was brought from Holland to the Tower of London, and what they would do with him. Those who suggested that his life should be spared were considered unpatriotic, unless they also argued that, like Napoleon, he should be sent to St. Helena for the rest of his life. Despite an application for his surrender, he remained in the Netherlands. A Daily Express reporter who had first seen him at close quarters before the war said that over the previous four years, his hair had turned completely white.

At 11 a.m. on 3 January, Harold Nicolson (pictured below), a thirty-two-year-old diplomat at the Foreign Office, left Charing Cross station for Paris. He arrived at the Gare du Nord twelve hours later and drove without delay to the Hotel Majestic on the Avenue Kléber, where the British delegation to the Peace Conference was due to be housed.

Alwyn Parker, a Middle East specialist who had been made responsible for the well-being of the British delegates, had instituted a security-conscious, home-cooking environment consistent with sound British standards. Staffed by British domestic servants and reinforced by nameless security agents, the catering standards were, apparently, tasteless in the extreme.

 

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Overworked and underpaid, Nicolson served as a technical adviser on the committees that were drawing up the new maps of central Europe and the Balkans. Sketching in fresh boundaries for Czechoslovakia, Romania, Yugoslavia, Hungary, Greece and Turkey consumed his working hours. Although he found the work ‘passionately interesting’, it was not all plain sailing. His letters reveal how at times he was conscience-stricken by the burdens imposed on him:

How fallible one feels here! A map – a pencil – tracing paper. Yet my courage fails at the thought of people whom our errant lines enclose or exclude, the happiness of several thousands of people. … Nobody who has not had experience of Committee work in actual practice can conceive of the difficulty of inducing a Frenchman, an Italian, an American and an Englishman to agree on anything.

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Harold Nicolson & Vita Sackville-West at the Paris Peace Conference, 1919.

These committees were not concerned with constructing the framework of the newborn League of Nations, President Wilson’s obsessive brainchild. Still, they stood at the heart of the conference’s deliberations, dealing with the fate of national minorities, reconciling the all-too-often conflicting and exaggerated claims of the great and the small powers. It was approvingly noted that the French Premier, M. Clemenceau, always audible, was equally rude to both. And as the plenary sessions of the conference, the politicians had neither the time nor the knowledge to challenge the recommendations of the ‘experts’, they became, in effect, the arbiters of these disputes, the final court of appeal. It was a responsibility that Harold Nicolson could have done without. Interminable committee meetings, drafting endless position papers, irregular hours, hurried meals, late nights and competing with closed-minded politicians, all put Harold under an intolerable strain. Exhausted, he had reached the point when he found himself reading sentences twice over. He sought advice from Arthur Balfour, the Foreign Secretary, whom he usually found languid in his habits, usually draped over a chair, ‘always affable and benign’, at his apartment in the rue Nitot. Balfour told him to…

… return at once to the Majestic – arrived there, you will go to bed. For luncheon you will drink a bottle of Nuits St George and eat all you can possibly swallow. You will then sleep until four. You will then read some books which I shall lend you. For dinner you will have champagne and foie grás – a light dinner. You repeat this treatment until Sunday at three, when you drive alone to Versailles and back. In the evening of Sunday you dine – again alone, that is essential – at Larue and go to a play. By Monday you will be cured.

He did as he was told and on Monday he noted in his diary that he felt again a young and vigorous man. Refreshed, he returned to his duties which, of course, included faithfully serving Balfour’s needs. Harold worked in close tandem with Allen Leeper, an Australian graduate of Balliol College, Oxford with a working knowledge of French, German, Italian, Spanish, Dutch, Flemish, Russian, Greek, Latin, Hebrew, Serbo-Croatian and Ladino. In keeping with the Zeitgeist, he was in favour of creating compact nation-states, to unite the Poles, Yugoslavs, Romanians, the Arabs and the Greeks, a process which would pave the way for the demise of the old, discredited system ruled by the Great Powers and lead to a new era regulated by the League of Nations and Wilsonianism. To Nicolson, at the time, these ideas were admirable, but later, writing in 1935, he thought they might appear utopian, but added even then that to many of us it still remains the most valid of all our visions.

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Thirty nations met at Paris to discuss the post-war world. Bolshevik Russia and the defeated Central Powers were excluded. On the fifth anniversary of the assassination of Archduke Franz Ferdinand and his wife in Sarajevo on 28 June 1914, the Treaty of Versailles was signed. Each of the other four which were signed subsequently was also named after an area or landmark of Paris. The Conference opened officially on 18 January 1919 at the Quai d’Orsay. Raymond Poincaré, the French President, greeted the delegates, but his Prime Minister, Georges Clemenceau soon took command in his typical high-handed, machine-gunning fashion:

Y a-t-il d’objections? Non? … Adopté!”

Edvard Beneš.

Harold Nicolson continued to be absorbed by the minutiae of the territorial commission’s deliberations, niggling questions that at a distance seem esoteric to an extreme, but which at the time took on grave importance. He explained to Balfour why the Italians should not be awarded Fiume, a judgement that was upheld by Wilson and Lloyd George. He was also considered something of a Czech expert and was impressed by Benes, the Czech Foreign Minister (pictured right), whom he described as altogether an intelligent, young, plausible little man with broad views. Benes based his case not so much on securing national rights as on sustaining the stability of central Europe. Nicolson agreed with this view and confidently told the Supreme Council that the historical border of Bohemia and Moravia needed to be respected, in spite of the fact that many Germans would be included. Teschen, Silesia, Oderburg were to be included in the new Czechoslovakia, along with Hungarian Ruthenia.

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All the Allies were invited to the Peace Conference which met at Paris in January 1919, but the important decisions were made by the ‘Big Four’, pictured below. The German government had accepted the terms of the Armistice of 11 November 1918 because the Allies made a solemn promise that the principles which US President Woodrow Wilson had set out in the ‘Fourteen Points’ of his War Aims (see the map above) which he, and they, thought would form the basis of the peace settlement.

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The ‘Four Big Men’ were (left to right), the British Prime Minister, Lloyd George; the Italian Prime Minister, Signor Orlando; France’s Premier, M.Clemenceau; and Woodrow Wilson, President of the USA. They were the big figures at the Paris Peace Conference.

Wilson’s ideas were, therefore, the hope of victors and vanquished alike, and he was sincerely anxious to carry out his promises. But he lost influence because he had few practical plans to offer upon which his ideas of a just settlement could be built. By the time John Buchan published his account of these events in 1935, many histories of the Peace Conference had already been written in detail in many volumes. Its work had been bitterly criticised, and on it had been blamed most of the later misfortunes of Europe. But, as he observed, …

… it is probable that our successors will take a friendlier view, and will recognise more fully the difficulties under which it achieved. Its position was very different from that of the Congress of Vienna in 1814. Then the victors held most of Europe and had armies ready and willing to carry out their commands: now they were so weary that the further use of force was almost unthinkable. Then a little group of grandees, akin in temper, met in dignified seclusion. Now a multitude of plenipotentiaries sat almost in public, surrounded by hordes of secretaries and journalists, and under the arc-lamp of suspicious popular opinion. 

The difference in the complexity and scale of the two conferences is shown by the resulting treaties. The hundred and twenty articles of the Treaty of Vienna were signed by seventeen delegates; the Treaty of Versailles contained 441 articles and seventy signatures. The business was so vast that the mechanism was constantly changing. At first, the main work was in the hands of a Council of Ten, representing the five great Powers; then it fell to the US President and the European Prime Ministers; at the end, the ‘dictators’ were Wilson, Clemenceau and Lloyd George. Had the three ‘architects of destiny’ been fully in agreement, or had they been men with broader personalities and more open minds, both the peace process and its products might have been better. To be fair to them, however, all three had to take different circumstances into consideration besides the merits of each case.

Wilson, who had been detached from the actual conflict, might have been expected to bring a cool and dispassionate mind to the deliberations, as well as a unique authority. But he found himself, quite literally, on unfamiliar territory, and his political mistakes in his own country had made it doubtful that Americans would ratify his conclusions. In diplomatic skill, he was not the equal of the other statesmen. Because he believed that the establishment of the League of Nations was the only hope of permanent world peace, he soon had to compromise on matters where the views of the practical statesmen conflicted with the ideals of his fourteen points in order to secure their acceptance of the Covenant. Moreover, he had the support of only a small minority of his fellow Americans; those who upheld the traditional policy of non-intervention in European affairs were hostile to him. This hostility back home also weakened his prestige at the Conference. Eventually, the Senate of the USA refused to ratify his work in establishing the League of Nations so that the country did not join the organisation, and at the election following the treaties, he failed to be re-elected. It soon appeared to John Buchan, that Wilson’s was …

… the voice of one crying in the wilderness, and not the creed of a great people. His self-confidence led him to cast himself in too high a part, and he failed to play it … The framers of the Treaty of Vienna a century before were fortunate in that they were simpler men, whose assurance was better based, and who were happily detached from popular passions: “There are times when the finest intelligence in the world is less serviceable than the sound common sense of a ‘grand seigneur’.” (F.S. Oliver, The Endless Adventure: III, 109.)

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Georges Clemenceau (left), French Premier & Woodrow Wilson, President of the USA.

As Chairman of the Peace Conference, Georges Clemenceau was a realist and had no faith in Wilson’s ideals. He was also an intense nationalist, whose policy was to give absolute priority to the security of France, and he translated every problem into the terms of an immediate and narrowly conceived national interest. He worked for the interests of France and France alone. He knew exactly what he wanted, which was to crush Germany while he had the chance. He regarded Franco-German hostility as natural and inevitable and wanted revenge not just for the Great War but also for the Franco-Prussian war of 1870-71 in which Paris was occupied and Alsace-Lorraine was surrendered. Had Germany won, he believed, France would not have been spared destruction. Now that Germany had been utterly defeated, he had the opportunity he had desired, to destroy its power to threaten the security of France. He dominated the conference and his uncompromising attitude earned him the epithet, ‘Tiger’.

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David Lloyd George (above) was subtler and more far-sighted, taking broader views, but his power was weakened in his colleagues’ eyes by the election he had just fought and won on intransigent terms. Nevertheless, he recognised the need for a peace settlement that would help restore German prosperity as an important trading partner. He, therefore, favoured more moderate terms, but gave only limited support to Wilson’s ideals because Britain was bound by treaties concluded during the war for the satisfaction of her Allies at the expense of the defeated powers, and he was bound by his election pledge by which he had promised to ‘Make Germany Pay’, demanding penalties from the enemy. At least 700,000 British servicemen had perished in the Great War, and a million and a half had been wounded. Another 150,000 were lost to the influenza pandemic of 1918-19. Some 300,000 children had lost at least one parent. One in ten of an entire generation of young men had been wiped out. By 1919, the euphoria of victory was tempered with the reality as ex-servicemen returned to the fields and factories to seek their old jobs. If anything, As Simon Schama has put it, …

… this had to be the moment, perhaps the last, when the conditions that had produced the general massacre were removed. Away with the preposterous empires and monarchs and the tribal fantasies of churches and territories. Instead there would be created a League of Free Nations … This virtual international government, informed by science and motivated by disinterested guardianship of the fate of common humanity, must inaugurate a new history – otherwise the sacrifice the sacrifice of millions would have been perfectly futile, the bad joke of the grinning skull. 

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Above: The Menin Road (detail), by Paul Nash, 1919

Fit for Heroes? – Boom-time Britain & the ‘Bolshevists’:

Britain was experiencing a post-war boom in trade, evidenced by the fact that the number of trade unionists rose to an unprecedented figure of almost eight million. As the unions flexed their muscles, thirty-five million days were lost by strikes and lock-outs, the highest figure since 1912. Trade unionists in Belfast and Glasgow fought bravely to reduce the working week to help absorb the demobbed servicemen. In Scotland, their demonstrations, which included (for the first time) serious demands for Home Rule, were viewed as ‘riots’ by the authorities. The demands were fuelled in part by the astonishingly disproportionate numbers of Scots casualties in the War: over a quarter of the 557,000 Scottish servicemen had been killed, compared with a rate of one in eight among the rest of the British army. Ironically, it was the long tradition of being the backbone of the imperial army, from the American Revolution to the Indian Mutiny, that had resulted in them being put in front line positions during the Great War, often in the ‘vanguard’ of some suicidal lurch ‘over the top’.

Despite this contribution, in Glasgow, an eighth of the population was still living in single-room accommodation and the Clydeside economy was especially vulnerable to retrenchment in the shipyards. As men were demobilized, unemployment rose and the unions responded with demands for a shorter working week, to spread the work and wages available as broadly as possible. The campaign for a 40-hour week, with improved conditions for the workers, took hold of organised labour. They also demanded the retention of wage and rent controls. When they were met with stark refusal, a forty-hour general strike was called, culminating on 31 January in a massive rally, organised by the trade unions, which took place on George Square in the city centre of Glasgow. Upwards of ninety thousand took part. A red flag and calls were made, for the first time, for the setting up of a separate Scottish workers’ republic. The police read the ‘Riot Act’ and their lines charged the demonstrators and, mindful of having been caught by surprise in Dublin by the Easter Rising of 1916, the government claimed that the demonstration was a ‘Bolshevist’ uprising, sending twelve thousand troops and six tanks (pictured above) to occupy what became known as ‘Red Clydeside’.

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Many of these ‘Red Clydesiders’ soon found themselves ‘victimized’, out of work and on the road to England and its ‘new’ engineering and manufacturing centres. By 1919, for example, Coventry’s population had continued to grow from 130,000 in 1918 to 136,000, partly due to the delayed expansion of the British motor industry, inhibited during the War as manufacturing industry turned its attention to meeting wartime demand. As soon as hostilities were over the production of motor vehicles was again embraced with enthusiasm as both old and new contenders entered the market amongst the heavy competition. In 1919 and 1920 at least forty new car producing firms emerged. Many of these firms later failed and their names disappeared or were taken over by companies like Singer in Coventry, but in 1920 the President of the City’s Chamber of Commerce reflected on its recent growth:

Few towns and cities can point to a growth as quick and extensive as that which has been the lot of Coventry in the last two decades … The way Coventry has moved forward is more characteristic of a new American city fed by immigrants, than of one of the oldest cities in Great Britain.

Growth and immigration were beginning to have an effect on local politics. In 1919, as the city enjoyed its boom, so the fortunes of the Labour movement also prospered, with Labour capturing a third of the seats on the City Council. The short but strong national economic boom funded some, at least, of  Lloyd George’s promise to make ‘a country fit for heroes to live in’. Christopher Addison, the minister of reconstruction, oversaw the building of 200,000 homes, effectively marking the beginning of council house construction in Britain. Again, in 1920, the Coventry Chamber of Commerce was keen to advertise the fact that the Corporation had already, since the war, built a thousand houses for its workers at rates varying from six to ten shillings per week which were regarded as ‘comparatively low’.

Lloyd George’s only obvious rival was Winston Churchill. Having banged away in the 1918 election campaign about making Germany pay through the nose, Churchill then made appeals for greater flexibility and leniency, opposing the continuation of the naval blockade. But his calls to strangle the Russian Revolution at birth seemed to spring from a deep well of sentimental class solidarity with the Russian aristocracy and the Tsars which marked him out, in the view of many, as an aristocratic reactionary himself. Churchill was reckless as well as tireless in calling for a commitment of men and money to try to reverse the communist revolution in Russia by supporting the pro-Tsarist White Army, which was certainly no force for democracy. But if he was deliberately goading British socialists by harping on about the Bolsheviks as dictatorial conspirators, it turned out that his diagnosis of what had actually in Russia in October 1917 was exactly right. There was ample reason to feel gloomy about the fate of liberty in the new Soviet Russia. By 1919, anyone could see that what had been destroyed was not just the Constituent Assembly but any semblance of multi-party democracy in Russia. After the war, British, as well as American troops, occupied parts of Russia. There was disagreement within the Cabinet as well as in the country as to what the British attitude toward Russia ought to be. Lloyd George felt that the perpetuation of the civil war by foreign intervention would give the revolutionary leader, Vladimir Lenin, the perfect pretext to institutionalize his police state and find reinforcements for the Red Army, and he wrote to Churchill pointing this out to him in February 1919:

 Am very alarmed at your… planning war against the Bolsheviks. The Cabinet have never authorised such a proposal. They have never contemplated anything beyond supplying armies in anti-Bolshevik areas in Russia with necessary equipment to enable them to hold their own, and that only in the event of every effort of peaceable solution failing. A military enquiry as to the best method of giving material assistance to these Russian armies is all to the good, but do not forget that it is an essential part of the inquiry to ascertain the cost; and I also want you to bear in mind that the War Office reported to the Cabinet that according to their information intervention was driving the anti-Bolshevik parties in Russia into the ranks of the Bolshevists. 

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The Empire – Nationalists Strike Back:

With the evaporation of the authority of the US President in Paris, and the limited tenure of the French wartime prime minister, his fellow peacemakers, it was Lloyd George who grew in stature as the future arbiter of the European settlement and world statesman. While France sought military security, Britain sought naval and commercial superiority through the destruction of the German Empire. The British Empire, as Curzon had boasted the previous year, had never been so omnipotent. But despite Curzon’s complacency, all was not well in the far-flung imperial posts. First of all, however, and closer to home, trouble was brewing again in Ireland. Following the 1918 general election, in which the old Nationalist party disappeared and Sinn Féin won most of the Irish seats. The members of Sinn Féin who had been elected to the Westminster parliament decided to set up their own Irish parliament, called Dáil Éireann, in Dublin, which first met in January 1919. It declared the Irish Republic in defiance of the British Crown for a second time. Eamon de Valera, who had escaped from an English jail, became its President and the King’s writ ceased to run in Ireland. At the same time, the Irish Volunteers, who now called themselves the Irish Republican Army (IRA) became increasingly violent.

In themselves, the pledges Britain made on imperial matters during the war did not determine anything that happened afterwards. Britain gave no one self-government simply because it had promised it to them. If it kept its promise, it was because the promise had raised expectations that could not be denied, making the plaintiffs stronger and even more resolute claimants. But if it had not had this effect, and if Britain could prevaricate or break a promise with impunity, it would. The colonial settlement when it came after the war, and as it was subsequently modified, was determined much more by the conditions of that time; the interests, strengths and weaknesses of different parties then, than by pledges and declarations made, cynically or irresponsibly, in the past. The conditions of 1919 determined that, initially, Britain would get a great deal out of the war for itself. In the first place, the fact that there were outright winners and losers meant that there were, suddenly, a large number of colonies ‘going begging’ in the world, with only Britain, France, Italy, the United States and Japan in a position to ‘snaffle them up’. Japan was satisfied with controlling the north Pacific, America didn’t want colonies and Italy, whose contribution to the Allied victory was seen as negligible, was not thought to deserve any. That left the German colonies in Africa and the Turkish territories in the Middle East as ‘gift horses’ for the British and the French if they wanted them, which they did.

Any British government of that era, of any colour, would probably have wanted its share, but the fact that the coalition government in 1919 was basically the same as the one that had fought the war and was full of imperialists made it even more probable. Balfour, Curzon and Milner (as Colonial Secretary) were not the kinds of men to look gift horses in the mouth and exercise colonial self-restraint, and neither were the Dominions which had fought, represented by Smuts in the Cabinet. Lloyd George himself was not much bothered about the empire either way and put up little resistance to his imperialists’ accepting extra colonies. If he had any qualms, Leopold Amery quieted them by writing to him at the end of the war, that whereas they had fought it over Europe, they would also…

… find ourselves compelled to complete the liberation of the Arabs, to make secure the independence of Persia, and if we can of Armenia, to protect tropical Africa from German economic and military exploitation. All these objects are justifiable in themselves and don’t become less so because they increase the general sphere of British influence. … And if, when all is over, … the British Commonwealth emerges greater in area and resources … who has the right to complain?

In 1919, the British empire seemed secure enough from external threats, but it was more vulnerable than ever to attacks from within. It might be able to deal with one at a time, but what if it were challenged by nationalists on three or four fronts simultaneously? The first of these opened up in North Africa in March, when Egyptian nationalists, inflamed by Britain’s refusal to allow them to put their case for independence to the Paris peace conference and by the arrest and exile of their leaders, began a series of demonstrations, riots, acts of sabotage, and assassinations of British army officers.

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M. K. Gandhi

Meanwhile, in India, there was a series of boycotts, walk-outs and massacres led by the lawyer and hero of the campaign against the ‘pass laws’ in South Africa, M. K. Gandhi, who had recently arrived ‘home’. Nearly a million Indian troops had been in service, both in the ‘barracks in the east’ in Asia itself, on the Western Front, and, earlier in the war, in the disastrous campaign in Mesopotamia. Before the war, there had been violence and terrorism, but mainstream colonial nationalism had been represented by Gokhale’s Congress; moderate in its aims, not embracing absolute national independence, and in its aims, which were constitutional. ‘Mahatma’ Gandhi’s movement, however, worked unconstitutionally, outside the system. His distinctive contribution to the nationalist struggle was ‘non-cooperation’. This spelt danger for the empire: danger which even in peace-time it might not be able to contain. In April there was a rash of rebellions in Punjab serious enough to convince General Dyer that the Indian Mutiny was about to be repeated: which persuaded him to open fire on a crowd of unarmed Indians in a public square outside the Sikh ‘Golden Temple’ in Amritsar, and to continue to firing into their backs until his ammunition ran out, killing at least 380 and wounding 1,200. Also in April, the first serious Arab-Jewish clash occurred in Palestine. In May, Britain was at war with Afghanistan, and about to go to war again, it seemed, with Turkey.

Towards the Treaties – The Big Three & The Council of Ten:

As the Paris conference moved forward, Harold Nicolson became increasingly depressed by the self-centred, ill-informed, arrogant behaviour of the world’s leaders who had gathered in Paris.

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Ion Bratianu, the Romanian Prime Minister was a bearded woman, a forceful humbug, a Bucharest intellectual, a most unpleasing man who aspired to the status of a Great Power; the Baron Sidney Sonnino, the Italian Foreign Minister, emerged as the evil genius of the piece, obstructing everything with a breathtaking obstinacy and malevolence, while Signor Vittorio Orlando (pictured right), the Italian Prime Minister, was never able to rise to the level of his own intelligence. When the Italians decided to leave Paris in protest at their allies’ refusal to meet them half-way on their demands, Nicolson waved them off with a hearty “good riddance”, but they returned a fortnight later.

During the rest of the conference, Orlando remained interested only in securing an expansion of Italy’s territory and in discussions which concerned the satisfaction of these ambitions. Nicholson soon concluded that the conference was proceeding in a rather irresponsible and intermittent way. For this sorry state of affairs, ‘the Big Three’ were culpable, as far as he was concerned, especially Wilson. Hampered by his spiritual arrogance and the hard but narrow texture of his mind, he appeared conceited, obstinate, nonconformist … obsessed, in fact no better than a presbyterian dominie (schoolmaster/ pedagogue). Nicolson was not alone in this opinion: Wilson’s traits were soon picked up on by the Parisian press. Bitter at these public assaults on his character, Wilson contemplated moving the conference to Geneva, where he hoped to benefit from the more Calvinistic, sober and sympathetic Swiss. Paris was an unfortunate choice for a peace conference, as passions among the people were inflamed by close contact with the War and its miseries. Statesmen could not free themselves from the tense atmosphere that prevailed.

Wilson, Nicolson believed, was also responsible for what he and others regarded as a totally impracticable agenda and timetable. The three main subjects were territorial adjustments, reparations, and the provision of machinery to ensure peace. Under the first, the map of Europe was to be redrawn, and some parts of the map of the world. The Conference did not, of course, with a clean slate; the Austrian Empire had collapsed and fallen into pieces, and Poland and Czechoslovakia had already come into being. A number of treaties, not just that of Versailles, would be needed to lay down the new boundaries – St Germain, Trianon, Neuilly and Sévres. Mandates dealing with territories taken from enemy states were to be settled later by Allied Ministers sitting in the Supreme Council. But instead of giving top priority to the main purpose of the conference, the peace settlement with Germany, Wilson kept his colleagues busy playing word games in drafting the Covenant of the League of Nations, his pet cause, and by fiddling with the maps of central and eastern Europe and Asia Minor.  In this way, the German treaty was effectively put on hold until the end of March, nine weeks after the conference had opened.

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David Lloyd George, British Prime Minister in 1919, at the height of his power, the man who won the war. As the head of the Conservative-Liberal-Labour wartime coalition, his government was returned at the General Election in December 1918, with an overwhelming majority of more than three hundred in the House of Commons. The majority in the total of votes was strangely less marked – five million for the government and 4.6 million against.

Neither did Lloyd George escape Nicolson’s criticism. Dressed in a bedint grey suit, the British PM hadn’t the faintest idea of what he is talking about, Nicolson complained. He tried to prime Balfour to protest against his Premier’s ‘madcap schemes’, but Balfour proved ‘infinitely tiresome’ and fobbed him off: Yes, that’s all very well, but what you say is pure aesthetics! But before long, Nicolson came to appreciate Lloyd George’s uphill struggle at the conference against those who were more extreme: Quick as a kingfisher, in Harold’s view, as he saw Lloyd George fending off excessive Italian or French demands, not always with complete success. He fought like a Welsh terrier, he told his father, as Lloyd George strove to modify the ‘punitive’ terms of the German treaty. Invited to attend meetings of ‘the Big Three’ in his capacity as an expert, Nicolson witnessed their capricious handling of affairs, which he recorded in his letters to his wife Vita:

Darling, it is appalling, those three ignorant and irresponsible men cutting Asia Minor to bits as if they were dividing a cake, and with no one there except Hadji … Isn’t it terrible – the happiness of millions being decided in that way?

When he politely protested, Nicolson was condescendingly put down by Clemenceau: “Mais, voyez-vous, jeune homme … il faut aboutir.” But there were opportunities to advise and influence, or educate the three men, usually over a huge map on the carpet of a nearby study. Already dispirited at the way the conference was, or rather was not, proceeding, by mid-February Nicolson was beginning to despair, as he wrote to his father:

The Council of Ten are atrophied by the mass of material which pours in upon them … We are losing the peace rapidly and all the hard work is being wasted. The ten haven’t really finished off anything, except the League of Nations, and what does that mean to starving people at Kishinev, Hermannstadt and Prague? It is despairing.

In a similar vein to Oliver’s statement above, Nicolson added that What we want is a dictator for Europe and we haven’t got one: And never will have! As the conference ‘progressed’, both Europe and the Middle East continued in a state of confusion. The old empires had fallen; new nations had already set up governments. Starvation and disease aggravated the horrors resulting from war. The statesmen were forced to act quickly. They had to consider not only what they believed ought to be done, but also what their electorate demanded. On April Fool’s Day, Harold Nicolson and Leeper left Paris on a special mission headed by General Jan Smuts, the South African member of Britain’s War Cabinet. They were bound for Budapest where Nicolson had spent part of his childhood during his father’s diplomatic posting there and where, on 21 March, a communist revolution led by Béla Kun had taken place; their assignment was to investigate its ramifications. For the world’s leaders gathered in Paris, the spectre of Bolshevism was truly haunting Europe: it threatened widespread starvation, social chaos economic ruin, anarchy and a violent, shocking end to the old order. Harold wrote to his wife, Vita, about how the Germans made use of this threat:

They have always got the trump card, i.e. Bolshevism – and they will go Bolshevist the moment they feel it is hopeless to get good terms.

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This was one of the main themes of Lloyd George’s cogently argued but largely ignored Fontainebleau memorandum. Small wonder, then, that Béla Kun’s strike for communism in Hungary registered many anxious moments for the Supreme Council. I have written more about Smuts’ mission to Budapest elsewhere on this site. During Nicolson’s absence from Paris, the prospects for a settlement based on Wilson’s new world order had receded. The French put forward extreme ideas that would extend French sovereignty or influence into the Rhineland. Lloyd George and Wilson hotly opposed these demands, seeing in them the seeds of another war. Eventually, a compromise was worked out that called for an allied occupation of the Rhineland with staged withdrawals, backed by an Anglo-American guarantee of the French frontiers. But Nicolson and many others harboured a ‘ghastly suspicion’ that the United States would not honour the signature of its delegates: it became the ghost at all our feasts, he wrote. From mid-May to mid-June the German treaty hung on a razor’s edge. Word reached Paris that the German government was prepared to sign it but that public opinion would not allow it without allied concessions. Nicolson agreed with the German public:

The more I read (the treaty), the sicker it makes me … If I were the Germans I shouldn’t sign for a moment. … The great crime is the reparations clauses, which were drawn up solely to please the House of Commons.

The peace treaties which resulted reflected the spirit of the conference, in which were represented opposing forces demanding, on the one hand, the rewards of victory, and on the other, the magnanimous settlement of conflicting claims designed to secure permanent peace. The result was a decisive triumph for the victors, but the influence of the need for a permanent peace was not entirely lost. On the one hand, there was no open discussion, and the main points of the settlement were secretly decided and imposed by the ‘Big Three’. The defeated Powers were disarmed, but the victors maintained their military strength.  On the other hand, it may be claimed that the map of Europe was redrawn to correspond with national divisions, to some extent at least and that the ‘Covenant of the League of Nations’ seemed to be a definite step towards the preservation of international peace. It formed the first part of each treaty, followed by territorial changes and disarmament clauses, such as the following from section one of the Treaty of Versailles:

By a date which must not be later than 31 March 1920, the German Army must not comprise more than seven divisions of infantry and three divisions of cavalry. 

By this article, the German Army was limited to a hundred thousand men and committed to the maintenance of order within the territory and to the control of frontiers. The long list of other restrictions included the prohibition of German use of submarines, tanks and poison gas. The disarmament of Germany was to be strictly enforced, but it was combined with a solemn pledge by the other nations themselves to disarm, which promised trouble in the future. In spite of Wilson’s principles, penal clauses were added to the treaties. The penal proposals, which had played so great a part in the ‘khaki’ election in Britain, were reduced more or less to the matter of reparations. Reparations were to be exacted from Germany alone; she had to undertake to pay the cost of the War, as her Allies were bankrupt. John Buchan commented on the futility of this exercise:

No victor has ever succeeded in reimbursing himself for his losses, and a strange blindness seemed on this point to have overtaken the public mind. 

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While rich in capital wealth, this could not be ‘extracted’ for its creditors, and its exportable surplus had never been great and was now likely to be very small. It could only pay large sums by borrowing from one or other of the Allies. At Paris, there was no agreement on the total sum of reparations to be paid, but there was much talk about what items should be included in the reparations bill. Smuts, whom Harold Nicolson considered a splendid, wide-horizoned man, now showed that his character, though ‘simple’, was also exceptionally ‘intricate’. Concerned that the bulk of the reparations would go to France, he concocted a creative formula to include separation allowances for soldiers’ families, as well as pensions for widows and orphans. His prescription effectively doubled the potential bill, however, and would not have been to Nicolson’s liking. Yet a special committee of solemn ‘pundits’ in Britain had fixed its capacity to pay at the preposterous figure 24,000 million pounds sterling. The Conference reduced this sum to less than half, and in 1921 a special allied commission whittled it down to 6,600 million, then to two thousand, and in 1932 further payments were dropped. But more unfortunate still was the clause which extorted from Germany a confession of her sole responsibility for the War. This was article 231 of the Treaty, the notorious ‘war guilt’ clause, that compelled Germany and her allies to accept full responsibility for…

… causing all the loss and damage to which the Allied and Associated Governments and their nationals have been subjected as a consequence of the war imposed on them by the aggression of Germany and her allies.  

It was not, Buchan suggested in 1935, …

… the business of any conference to anticipate the judgment of history, and to force a proud nation to confess that her sacrifice had been a crime was a breach of the human decencies. 

The Final Week – Scuttling Ships & Salvaging the Settlement:

Could anyone salvage something from this mess? Surprisingly, perhaps, Nicolson looked to Lloyd George for this. Hitherto, he had been quite critical of Lloyd George’s policies, especially in Asia Minor, which eventually to lead to his downfall. As he sought to scale down the reparations bill, which he saw as ‘immoral and senseless’; to revise the territorial settlement in Silesia to Germany’s advantage; and to grant Germany membership of the League of Nations, Nicolson’s admiration grew, particularly as he fought alone. The French were, quite naturally, furious at him for what they considered to be a betrayal of their interests. By contrast, Wilson’s passivity infuriated Harold, who couldn’t understand why the US President would not take the opportunity to improve the draft treaty. He wrote again to his father, voicing the view of the younger generation of British diplomats:

There is not a single person among the younger people here who is not unhappy and disappointed at the terms. The only people who approve are the old fire-eaters.

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After much hesitation, and under the threat of renewed force, the German government accepted the treaty. Despite his disappointment with its terms, Harold Nicolson breathed a huge sigh of relief that there would be no return to hostilities. Exactly a week before the treaty was due to be signed, however, there was a dramatic turn of events when Admiral von Reuter ordered the scuttling of the German fleet blockaded at Scapa Flow off Orkney, eight months after its surrender. This is shown in the pictures above and below. Of the seventy-four warships interned, forty-eight sank within an hour when the German sailors opened the sea-cocks on the Admiral’s order. He said that he was obeying the Kaiser’s orders, given to him before the war, that no German battleship should be allowed to fall into enemy hands, and denied that he was in breach of the Armistice terms, since he had had no notice of its extension beyond 21 June, the day of expiry. The German sailors risked their lives in carrying out von Reuter’s orders. At noon on the 21st, the German ensign was run up, the battleships began to settle, and their crews crowded into boats or swam for it. Some of the British guardships, uncertain of what was happening, opened fire, and there were over a hundred casualties.

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The treaty was signed on 28 June 1919 in the Galerie des Glaces (‘Hall of Mirrors’) at the palace of Versailles, where half a century before the German Empire had been founded on the degradation of France. Harold Nicolson witnessed the occasion and recorded it in careful detail. The ‘Galerie’ was crowded, with seats for over a thousand. Clemenceau, small and yellow, orchestrated the proceedings. “Faites entrer les Allemands,” he called out. Dr Hermann Müller and Dr Johannes Bell, heads held high, eyes studying the ceiling, one looking like “the second fiddle” in a string ensemble, the other resembling “a privat-dozent“, were led to the table to sign the treaty. No-one spoke or moved. Having committed Germany to the treaty, they were escorted from the hall “like prisoners from the dock”. Over the “breathless silence”, Clemenceau rasped: “Messieurs, la séance est levée.”  Outside, salvoes were fired, while a squadron of aeroplanes flew overhead. Crowds cheered and yelled, “Vive Clemenceau … Vive l’Angleterre.” After the ceremony Clemenceau, with tears in his eyes, was heard to say: “Oui, c’est une belle journée.” Exhausted at the end of an extraordinary day, Nicolson lamented that it has all been horrible … To bed, sick of life.

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General Smuts signed the Versailles Treaty only on the grounds that something of the kind, however imperfect, was needed before the real work of peace-making could begin. But, according to John Buchan, the Treaty proved to be a grave hindrance in that task. For John Maynard Keynes, the British economist, the ‘peace’ was a ‘Carthaginian’ imposition. In The Economic Consequences of the Peace, first published in 1919, he wrote a damning indictment of both the process and product of the Treaty:

Moved by insane delusion and reckless self-regard, the German people overturned the foundations on which we all lived and built. But the spokesmen of the French and British peoples have run the risk of completing the ruin. … Paris was a nightmare. … A sense of impending catastrophe overhung the frivolous scene. … Seated indeed amid the theatrical trappings of the French Saloons of State, one could wonder if the extraordinary visages of Wilson and Clemenceau, with their fixed hue and unchanging characterisation, were really faces at all and not the tragi-comic masks of some strange drama or puppet-show. …

010For John Buchan, the hopeful element in what had been signed lay in its prefix – the Covenant of a new League of Nations, the one remnant left of Wilson’s dreams; the hope was that the reaction against the horrors of war might result in an abiding determination for peace. Machinery was provided to give a system to fulfil this desire. Membership of the League was open to any self-governing state which accepted its principles; it required its members to refrain from war until the quarrel had been submitted to its judgement and to take corporate action against any breaker of the peace. It was not a super-state with a military force as its sanction, but a league of states whose effectiveness in a crisis would depend upon how far its members would be prepared to act collectively. There was no abandonment of sovereign rights, except to a very minor extent. It began as a league of the victorious and neutral Powers, but the defeated Powers were given the right of delayed entry.

 

Above (Right): a facsimile of some of the signatures on the Treaty.

Concluding Versailles – A Toothless Treaty? The Covenant & Council of the League of Nations:

From the start, the League was handicapped by the facts that it was widely regarded as the caretaker of the Peace treaties and therefore suspect to those who found them difficult to come to terms with, and by the fact that the USA refused to join, thereby weakening any chance of collective action. But it was the best that could be done at that juncture by way of international cooperation, and even its flawed and modest beginnings were soon seen as an advance in peacemaking and peacekeeping in the world. It was often said in the 1920s and ’30s that a fundamental weakness of the League of Nations that it ‘lacked teeth’, that it was not prepared to threaten potential and actual aggressors with military force. However, the original clauses in the Covenant contradict this contention. They state that in the case of aggression or threat of aggression, the Council of the League should advise upon how this threat should be met: military action was not excluded. Moreover, if any member of the League did resort to war, the Council would recommend to the governments concerned what effective military, naval and air force the members of the League should contribute. Members of the League were expected to permit the passage through their territories of the armed forces of other members of the League. These articles, therefore, totally envisage the possibility of military action by the League in order to deter aggression. Although the requirement of unanimity on the part of the Council could effectively negate these provisions in certain circumstances, the ‘teeth’ were there, if only the principal Powers were willing to put them to work. In his course notes for the Open University, prepared in 1973, Arthur Marwick pointed to the scope of the problems facing the peacemakers in 1919:

A war on such an unprecedented scale obviously left problems of an unprecedented nature. Insulated as we have been in these islands, we can easily forget the immense problems involved in the collapse of old political frontiers, from the mixing of races in particular areas, from the reallocation of territorial boundaries, and from the transfer of populations…

The Treaty of Versailles altogether consists of 440 articles and it takes up 230 pages of Volume LIII of the ‘Parliamentary Papers’ for 1919. From the document itself, we can see the very real complexities and difficulties which faced the peacemakers. From the detail in some parts of the Treaty, we can see what peacemaking is really like, as distinct from the brief text-book accounts which merely summarise the broad principles; we can see what is involved in putting those principles into practice. The Treaty of Versailles expressed certain intentions about settling the map of Europe. But, as with all historical documents, we do learn things from it about the fundamental assumptions of the men who drafted it. And throughout the entire Treaty, there is a good deal of ‘unwitting testimony’ about the political events, social conditions and cultural attitudes in Europe in 1918-19. A rapid glance at the map below will show that a serious attempt was made in 1919 to arrange the frontiers of the states so that the main boundaries coincided with the national divisions of the European peoples. As a result of the treaties, only a small minority, about three per cent, was still under the subjection of other nationalities. In many cases, the peoples themselves had taken the initiative and proclaimed their independence and the peacemakers simply had to accept what had already been accomplished. Their task was ‘simply’ to fix the new boundaries of these ethnic groups. But in doing so, they were responsible for some gross injustices, as the map also shows.

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(to be continued).

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Roots of Liberal Democracy, Part Two: Hungary from Revolution to Revolution, 1919-1956.   Leave a comment

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Lines of Demarcation – Neutral zones (November 1918-March 1919)

Revolution and Reaction – Left and Right, 1919-20:

Following the end of the First World War, the collapse of the Habsburg Dual Monarchy, and the chaos which followed under the Károlyi government in Hungary, the Party of National Union, established by magnates and experienced politicians in 1919, and led by the Transylvanian Count István Bethlen, wanted to restore the pre-1914 relations of power. While they realised the need to improve the conditions not only of the ‘historic middle class’ but also the peasantry and the urban working classes, they adamantly rejected the radical endeavours of the ‘immigrant intelligentsia’. This term was, of course, their euphemism for the Jewish middle classes. They also envisaged the union of the lower and the upper strata in the harmony of national sentiment under their paternalistic dominance. A more striking development was the appearance of political groups advocating more radical change. Rightist radicalism had its strongest base the many thousands of demobilized officers and dismissed public servants, many of them from the territories now lost to Hungary, to be confirmed at Trianon the following year. In their view, the military collapse and the break-up of ‘historic Hungary’ was the fault of the enervated conservative liberalism of the dualist period, which they proposed to transcend not by democracy and land reform, but by an authoritarian government in which they would have a greater say, and measures aimed at the redistribution of property in favour of the ‘Christian middle class’ and the expanse of mobile, metropolitan capital, with its large Jewish population. Groups such as the Hungarian National Defence Association, led by Gyula Gömbös, had been impatiently urging the armed defence of the country from November 1918.

For the time being, however, the streets belonged to the political Left. Appeals from moderate Social Democrat ministers for order and patience evoked the contrary effect and served only to alienate the disaffected masses from them. Their new heroes were the Communists, organised as a party on 24 November 1918 by Béla Kun, a former journalist and trade union activist recently returned from captivity in Russia. Within a few weeks, the Communist Party had acquired a membership of over forty thousand, and by January 1919 a range of strikes and factory occupations had swept across the country, accompanied in the countryside by land seizures, attempts to introduce collective cultivation and the demand to eradicate all remaining vestiges of feudalism. While the radicals of both the Right and the Left openly challenged the tenets of the new régime, Károlyi’s own party effectively disappeared. Most of the Independentist leaders left the government when Jászi’s plan to keep the nationalities within Hungary was aborted. The main government party were now the moderate Social Democrats, struggling helplessly to retain control of the radical left among their own members who constituted an internal opposition to Károlyi’s government and were influenced by the communists.

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The growing pressure from this radical left and the loss of territory undermined the Károly régime. The communists, led by Kun, forced Károly to resign and the Hungarian Soviet Republic came into being on 21 March 1919, with a bloodless assumption of power. It lasted for 133 days. It began with not inconsiderable success when Soviet Hungary quickly linked itself to the Bolshevik aim of worldwide revolution which the war created and which looked at the time to be taking hold and spreading. Instead of redistributing land, Kun nationalised large estates and thus, by giving priority to supplying the cities and by issuing compulsory requisitions for food products, he alienated the mass of the peasants. Many of the intellectual élite, who had applauded the democratic reforms of the autumn of 1918 were initially drawn to the attractive goals of the Soviet Republic. They included not only Communists like Lukács, who became ‘People’s Commissar for Education’, but also members of the Nyugat circle who held positions in the Directorate of Literature, as well as Bartók and Kodály, who became members of the Directorate for Music. Gradually, however, most of these figures became disaffected, as did the middle classes and intelligentsia. Gyula Szekfű, a historian and one of the professors appointed to the University of Budapest, had already, by the end of July, begun work on his highly influential Three Generations (1920), hostile not only to the communist revolution but also to democracy and liberalism which he blamed for paving the way for Kun; soon after, Dezső Szabó, another early sympathiser, published The Swept-away Village, with its anti-urban, anti-revolutionary and anti-Semitic content, which were in high currency in inter-war Hungary.

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The measures which were taken against the opposition, the counter-revolution, were inconsistent and alienated the middle classes. The anti-clerical measures taken by the Kun government also annoyed the traditionally devout peasants, concerned about the security of the ‘family hearth’. All of this made them more susceptible to counter-revolutionary propaganda, which did not fail to emphasise the ‘foreign’ (that is, ‘Jewish’) character of the revolution (over half of the ‘commissars’ were indeed of Jewish origin). Organised counter-revolution consisted of two groups, both of them based outside the territory controlled by the Kun government but operating through sympathisers within it: the Hungarian National Committee (Anti-Bolshevik Committee) created in Vienna in April created by all the old parties and led by Count István Bethlen (pictured below), and a counter-revolutionary government set up at Arad on 5 May, led by Count Gyula Károlyi, later moving to Szeged. Apart from these errors of Kun’s leadership, it soon became evident that the hoped-for, swift-moving worldwide revolution had come to an abrupt halt almost at its inception. The failure of the even more fragile Bavarian Revolution and the failure of the Soviet Red Army to break through on the Ukrainian front into the Carpathians to provide assistance to Kun and his supporters put paid to any fleeting chance of success that the Hungarian Soviet Republic might have had of survival.

The ever-growing group of politicians and soldiers who saw the white and not the red as Hungary’s future colour organised themselves in Vienna and in Szeged, the latter being on the edge of the neutral zone agreed with the Entente powers on 31 December 1918 (see the map at the top). The Entente regarded them with far less suspicion than Kun’s “experimental” workers’ state. They represented a conservative-liberal restoration without the Habsburgs, which was far more acceptable in the French, British and Italian statesmen who were meeting in Paris. In August 1919, a Social Democratic government took charge again, temporarily, and a large band of leaders of the Soviet Republic fled to Vienna by train. Wearing the feather of the white crane on their field caps, detachments of commissioned officers quickly headed from Szeged in two prongs towards Budapest, which, in the meantime, had been occupied by Romanian troops at the invitation of the Entente powers. A brutal sequel followed the reprisals upon which the Romanians had already embarked. Executions, torture, corporal punishment and anti-Jewish pogroms marked the detachment of ‘white feathers’ to the “sinful” capital, the main seat of the Hungarian Bolsheviks. Counter-revolutionary terror far surpassed the red terror of the revolution both in the number of victims and the cruelty they were dealt.

Following the flight and the other communist leaders to Vienna, where they claimed political asylum, Gyula Peidl, a trade union leader who had been opposed to the unification of the workers’ parties and played no role under the Soviet Republic, took office. But with the country war-torn and divided between armies, a rival government in Szeged, and the eastern part under foreign occupation, it was unlikely that the new government would last long. Although it planned to consolidate its position by rejecting the dictatorship of the proletariat on the one hand and defying conservative restoration on the other, it was still regarded by its intended coalition partners – Liberals, peasant democrats and Christian Socialists – as crypto-communist, and failed to gain recognition from the Entente powers. Assisted by the Romanian Army, which had occupied Budapest, a coup forced the government to resign after only five days in ‘power’, on 6 August 1919. The government which replaced it, led by a small-scale industrialist, István Friedrich, not only dismantled the apparatus set up by the Soviet Republic, but also the achievements of Mihály Károlyi’s democratic government, in which Friedrich had himself been a state secretary. In particular, civil liberties were revoked, revolutionary tribunals were replaced with counter-revolutionary ones, which packed the prisons with workers, poor peasants and intellectuals, and by the beginning of 1920 nearly as many death sentences had been carried out as during the ‘red terror’.  The intellectual élite were persecuted; Bartók and Kodály were prosecuted, Móricz was imprisoned and several others, including Lukács, fled the country.

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Meanwhile, the Romanian Army continued their ‘pacification’ of the countryside, systematically transporting cattle, machinery and the new crop to Romania as ‘war reparations’. There was also the ‘National’ Army led by Admiral Horthy, who transferred his independent headquarters to Transdanubia and refused to surrender to the government. Without any title, his troops gave orders to the local authorities, and its most notorious detachments continued to be instruments of ‘naked terror’.  In three months, they may have killed as many as two thousand actual or suspected former Soviet members, Red Army soldiers, and sometimes innocent individuals who were Jews. Besides the executions and lynchings, about seventy thousand people were imprisoned or sent to internment camps during the same period. The emissary of the peace conference to Budapest in October 1919, Sir George Clerk, led finally to the withdrawal of the Romanian troops from Budapest, and their replacement by Horthy’s Army, which entered Budapest ceremonially on 16 November (see the picture below). In his speech before the notables of the capital, he stigmatised the capital as a ‘sinful city’ that had rejected its glorious past, Holy Crown and national colours for red rags. The people hoped to heal the wounds of the war and its aftermath by returning to order, authority and the so-called Christian-national system of values.

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It was also due to the increasing influence of Horthy and the changes in the political balance that Clerk abandoned his initial insistence on securing an important role for the Social Democrats and the Liberals in the new coalition government whose creation the Peace Conference demanded.  Since he commanded the only troops capable of maintaining order and being ready to subordinate them to the new government, it had to be an administration acceptable to Horthy personally and to the military in general. As a result, the government of Károly Huszár, formed on 19 November, the fourth in that year, was one in which the members of the Christian National Unity Party and other conservative-agrarian groups prevailed over those of the Independent Smallholder Party, the Social Democrats and the Liberals. Although the great powers insisted that voting in the national elections in January 1920 should take place by universal suffrage and secret ballot, the circumstances were unfavourable to fulfilling any illusion of a democratic outcome, according to Kontler. The Huszár government made only half-hearted attempts to ensure the freedom of the elections and the terrorist actions of the detachments of the National Army together with the recovering extreme Rightist organisations were designed to intimidate the candidates and supporters of the Social Democrats, the Smallholders and the Liberals. In protest, the Social Democrats boycotted the elections and withdrew from the political arena until mid-1922. The Smallholders and the Christian National Unity Party emerged as victors in the election.

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The ‘monarchists’ were now in the ascendancy over the ‘republicans’, and they argued that the monarchy should be retained to emphasise the historical continuity and legality of Hungary’s claim to the ‘crown lands’ of King István. However, as neither the great powers nor Hungary’s neighbours would countenance a Habsburg restoration, the medieval institution of the ‘Regent’ was resuscitated and Horthy was ‘elected’ regent on 1 March 1920, with strong presidential powers. Three days later, a new coalition government of Smallholders and Christian-Nationalists was formed under Sándor Simonyi-Semadam, its major and immediate task being the signing of the peace treaty in Paris.

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Restoration & Right-wing Ascendancy, 1920-1940:

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The Horthy régime owed its existence less to internal support within Hungary than to international contingencies, according to László Kontler. In spite of its roots in the extreme right, it bore the imprint of the priorities of the western peacemakers that assisted at its inception, even in the 1930s, when the changing international atmosphere made it lean even more heavily back towards these roots. Admiral Miklós Horthy had played no part in politics until, in the summer of 1919, already over the age of fifty, he temporarily took the helm of the radical anti-parliamentarian aspirations of the Christian (that is, non-Jewish) middle class which wanted authoritarian courses of action.

His inclinations made him a suitable ally of Hitler in the 1930s, although he was always a hesitant one. His views were always conservative and traditionalist, rather than radical. Having restored first public order and then parliamentary government, enabling the old conservative-liberal landowning and capitalist élite gradually returned to the political scene and overshadowed the extreme right until the 1930s with the rise of fascist Italy and Nazi Germany. The restoration concerned only the élite of the old dual monarchy, but not its political system, which was more democratic, with an extended suffrage and the presence of workers’ and peasants’ parties in parliament.

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At the same time, however, it was less ‘liberal’, with harsher censorship, police surveillance and official anti-Semitism of increasing intensity. The architects of this political outlook were Hungary’s two prime ministers in the period between 1920 and 1931, Count Pál Teleki and Count István Bethlen. Both of them were from Transylvanian families owning large estates and were sincere admirers of the liberal achievements of the post-1867 era. But the post-war events led them to the conclusion that liberalism had to be controlled, and they both argued that Central and Eastern Europe, including Hungary, was as yet too immature to simply graft western-style democracy onto the parliamentary system, which they nevertheless considered to be the only acceptable form of government. Teleki and Bethlen, therefore, advocated a ‘conservative democracy’, guided by the aristocracy and the landed gentry, as the proper response of the region to the challenges of the democratic age. They opposed all endeavours aimed either at the radical extension or the complete abolition of the liberal rights enshrined in the ‘parliamentarism’ of the dualist period. Kontler argues that they did so because:

Liberal democracy seemed to them a mechanical application of the majority principle, undermining political responsibility and stability. They despised communism and were suspicious of social democrats because of their campaign against private property. Finally, they opposed right-wing radical and fascist trends epitomised by Gyula Gömbös and the other ‘protectors of the race’ who thought that the parliamentary system had outlived itself and ought to be replaced by authoritarian rule which would facilitate a redistribution of economic functions at the expense of the Jewish bourgeoisie and in favour of the Hungarian Christian middle classes. 

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The fundamental character which the political system of the country retained until the German occupation of March 1944 emerged at this point as a result of Bethlen’s consolidation. Hungary became a parliamentary state with strong elements of authoritarianism and a hegemonic party structure, in which the institutions inherited from ‘the liberal era’ were operated in an anti-democratic fashion. The government acknowledged a lawful political opposition, consisting of Social Democrats, bourgeois liberals led by Vilmos Vázsonyi and later by Károly Rassay, and after 1930 a rejuvenated Independent Smallholder Party; and on the right, of different groups of Christian Socialists and Rightist radicals, such as the Party of Racial Defence founded by Gömbös, which seceded from the government party in 1923. However, the adjustment of interests took place, not at the sessions of parliament, but rather at conferences among the various factions within the government party; its decisions might have been criticised but were rarely changed by the opposition, which the vagaries of the system also deprived of a chance to implement alternative policies by assuming power.

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“No rebellion, but neither submission”

The ‘Trianon syndrome’ also accentuated the general infatuation of all things Hungarian, easily falling into chauvinism and racism, that characterised much of public discourse throughout the whole of the Horthy era. In the beginning, the Horthy régime sought solely to correct the unquestionably misconceived and unjust territorial provisions of the 1920 Paris agreements through the revision of national borders in ways that benefited Hungary. Instead of reconciliation and cooperation in reducing the significance of the borders, it opted to the end for national, political, ideological and military opposition. The irredentist and revisionist propaganda shown in the postcards below reveal how it did not recoil from crude devices that wounded the self-esteem of neighbouring Slavic peoples who, of course, replied in kind. But the régime was differentiated from first fascist Italy and then Nazi Germany by the fact that it never even considered mobilising the masses for violent extra-parliamentary action against a post-feudal, aristocratic order, or against the ethnic and linguistic minorities, especially the Jews. Neither did it attempt a systematic regimentation of the press and cultural life in general.

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In the mid-1920s, Hungary was a bourgeois conservative-liberal state living in relative peace, with a functioning parliament. It also retained many antiquated and obsolete features, but these did not obstruct moderate modernisation in the spirit of both progressive conservatism and liberalism. Public health and education reforms improved conditions in the towns and villages, where many new technical courses were offered, and an extensive network of marketing cooperatives developed under the name Hangya, (Ant). Count István Bethlen was the ‘unruffled father of the consolidation’ but Count Pál Teleki was the first prime minister, an academic geographer who was an authority on ethnic groups and economic geography (pictured below); as such, he participated, by invitation, in the first demarcation of the state borders of modern Iraq in 1924-25. At that point, Bethlen himself became the head of government. The Communist Party was illegal and the Social Democratic Party, in a pact with the Smallholder Party, renounced its agitation among the majority agrarian population in order to secure its ability to function in the cities and urban areas.

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On the question of Trianon, although the British Tory governments of the mid-1920s lost interest in Central European affairs, the Hungarian cause found at least one influential and steadfast British supporter in the person of the press magnate Harold Sidney Harmsworth, Lord Rothermere who, under the charms of a Hungarian aristocratic lady, published his article, Hungary’s Place under the Sun, in the Daily Mail in June 1927. Rothermere’s proposal was that, in the interests of peace in Central Europe and the more effective containment of Bolshevism, the predominantly Hungarian-inhabited borderlands of the other successor states should be restored to Hungary. His proposal embarrassed the British government and evoked a mixed response from within Hungary itself. On the one hand, it was welcomed by the Hungarian Revisionist League of several hundred social organisations and corporate bodies; on the other hand, an ethnically inspired revision of the Treaty seemed less than satisfactory for many in official circles and was fully acceptable for the social democratic and liberal opposition. Rothermere’s intervention coincided with two developments: growing and well-founded disillusionment with schemes for peaceful revision, and the recovery of Hungary’s scope of action through the departure of both the foreign financial and military commissioners by early 1927. As soon as the surveillance was lifted, Hungary, like the other defeated countries in the First World War, began to evade the military stipulations of the peace treaty and began making overtures to both Italy and Germany.

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Király útca (King Street), Budapest, in the 1920s

The world economic crisis of 1929-31 reached less-developed Hungary after a brief delay at the end of the ‘reconstruction’ period. It immediately muddied the puddles of prosperity that were barely a few years old. It set back the regeneration of Hungarian industry that had switched from a war to a peace economy and manufactured mostly consumer goods and was therefore very sensitive to the development of a buyer’s market. Not for the first or last time, it choked the agrarian economy into a cycle of overproduction. The economic crisis was not yet over but receding, when the right-wing army officer, Gyula Gömbös, pushed István Bethlen aside to become PM, and an unmistakable fascism gained ground. This was signalled by corporate endeavours, populist demagogy (including some ‘leftist’ arguments), racism and brutal violence and unbridled friendship with Benito and Adolf. After a forced and modest turn to the left dictated by consolidation, the pendulum swung to the right. And when the economic crisis ended, hopes for war kept the economy growing. Gömbös’ successor, Kálmán Darányi, announced the Győr Programme in the “Hungarian Ruhr region”, putting the heavy industry in the gravitational centre of industrial activity which served the rearmament drive previously prohibited by the Entente powers.

Changes in the international scene between 1936 and 1938 encouraged fascist organisations in Hungary. Hitler’s re-militarisation of the Rhineland only evoked consternation and protest, but no action on the part of the western powers; the German-Italian axis eventually came into existence, with Japan also joining in the Anti-Comintern Pact; General Franco’s armies were gaining the upper hand in the Spanish Civil War. At the same time, PM Darányi’s foreign minister, Kálman Kánya negotiated in vain with his opposite numbers from the ‘Little Entente’ countries during the summer and autumn of 1937 in order to secure a non-aggression pact linked to the settlement of the minorities’ problem and the acknowledgement of Hungarian military parity; and he also failed to reawaken British interest in Hungary in order to counter Germany’s growing influence. As a result, these moves only served to annoy Hitler, who, having decided on action against Austria and Czechoslovakia, nevertheless assured the Hungarian leaders that he considered their claims against the latter as valid and expected them to cooperate in the execution of his plans.

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The Anschluss on 12-13 March 1938 still took the Hungarian establishment by surprise, the more so since they were expecting Hitler to cede the Burgenland to Hungary, which he proved unwilling to do. On the other hand, the German annexation of Austria was hailed among the followers of Szálasi, who despite the banning of his Arrow Cross Party shortly earlier, were able to exert formidable propaganda and political agitation. This prompted Darányi to work out an agreement with the extremists, who, in return for moderating their programme, were legalised again as the Hungarist Movement. This was too much for the conservatives as well as for Horthy himself. Darányi was dismissed by the latter on 13 May 1938 and replaced by Béla Imrédy, who had a reputation as an outstanding financial expert and a determined Anglophile and ‘Hungarism’ was averse to his political taste. Yet it was under his premiership that the Hungarian parliament stepped up rearmament by enacting the new military budget which resulted in a great economic boom: a twenty-one per cent increase in industrial output by 1939, nearly as much as the entire economic growth since 1920. It also enacted the anti-Jewish legislation prepared under Darányi, the law on the more efficient assurance of equilibrium in social and economic life established a twenty per cent ceiling on the employment of ‘persons of the Israelite faith’ in business and the professions, depriving about fifteen thousand Jewish people of jobs for which they were qualified. Some of the governing party as well as Liberals and Social Democrats in parliament, in addition to prominent figures in cultural and intellectual life, including Bartók, Kodály, and Móricz protested, while the radical Right found the measure too indulgent.

However, he was vulnerable to his political opponents, who claimed that they had discovered he had Jewish ancestry. In order to deflect attention from this accusation, Imrédy crossed over to the extreme right and became the main promoter of anti-Semitic legislation. Therefore, the main legacy of his premiership was, therefore, a second anti-Jewish law (May 5th, 1939), which defined Jews as a racial group for the first time. As it was not a definition based on religious observance, it became the harbinger of the Holocaust. People with two or more Jewish-born grandparents were declared Jewish. Private companies were forbidden to employ more than 12% Jews. 250,000 Hungarian Jews lost their income. Most of them lost their right to vote as well. I have written extensively both about the anti-Jewish Laws and Hungary’s international relations, particularly with Britain, elsewhere on this site:

https://chandlerozconsultants.wordpress.com/2014/05/14/horthy-hitler-and-the-hungarian-holocaust-1936-44/

https://chandlerozconsultants.wordpress.com/2014/04/01/magyar-british-relations-in-the-era-of-the-two-world-wars-part-two-world-peace-to-world-war-1929-1939/

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Territorial changes affecting Hungary, 1938-41

Here, I wish to concentrate on Hungary’s internal politics and the domestic policies of the Horthy governments. Nevertheless, the international situation soon made it difficult for the Darányi government to follow policies independent from German influence, whether foreign or domestic. The blitzkrieg on Poland of September 1939 forced many Poles to cross the Carpathians into Slovakia (by then under Hungarian occupation thanks to the country joining the Axis alliance, and gaining – under the First Vienna accord – considerable territories in Slovakia containing significant Hungarian populations) and into post-Trianon Hungary itself. In spite of German protests, the Polish refugees who decided to remain in Hungary were made welcome, in keeping with the historical friendship between Poland and Hungary,  But this brief interlude of Polish asylum, as István Lázár has pointed out represented not even a momentary halt in our country’s calamitous course. Lázár has also pointed out that although most of the Jews living in the Slovakian territories declared themselves to be Hungarian, this did nothing to improve their ultimate fate, and that many of the Hungarians who “returned home’ bitterly observed that though they had been subject to harmful discrimination as members of a national minority “over there”, on the other side of the Danube, the bourgeois Republic of Czechoslovakia did uphold civil rights and equality to a much greater extent than did a still half-feudal Hungary, whose gendarmes were abusive and where an increasingly intimidatory atmosphere developed between late 1939 and 1944.

The Death Bed of Democracy, 1941-1956.

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At the beginning of this period, Pál Teleki returned to the premiership. Lázár has described him as a ‘schizoid character’ and a ‘vacillating moralist’. He supported serious fact-finding sociological investigations about conditions among the poorest members of Hungarian society, but also arrived at agreements with the extremists of aggressive racism, perhaps to take the wind out of their sails in the spirit of his own more moderate nationalism. But his plan to form a counterweight to Nazi racism by appeasing Hungarian racists was blown apart by the Regent’s decision in the spring of 1941, to allow the transit of German forces to attack Yugoslavia. Finding himself in an impossible situation, and in a genuine but ultimately futile gesture, Teleki shot himself, leaving a confused letter for Admiral Horthy, which accused ‘the nation’ of perfidiousness and cowardice in siding with the scoundrels … The most beastly nation. He blamed himself for not stopping the Regent in this. In June 1941, Hungary entered the war against the Soviet Union and subsequently with the Allied Powers. Not consulting Parliament, Prime Minister László Bárdossy had, in fact, launched Hungary into the war illegally in answer to the bombing of Kassa, which he claimed was a Soviet provocation.

By entering the war, Bárdossy and his successors as PM expected at least to retain the territories re-annexed to Hungary between 1938 and 1941, and all other aspects of the inter-war régime were intended to remain unchanged by Horthy and Kallay, who not only repudiated any communication with the Soviets, but were also unwilling to co-operate with the representatives of the democratic alternative to the Axis alliance which was beginning to take shape by the summer of 1943. This even included an exclusive circle of aristocrats around Bethlen who established a National Casino and then went on with the Liberals of Károly Rassay to create the Democratic Bourgeois Alliance with a programme of gradual reforms. Endre Bajccsy- Zsilinszky and Zoltán Tildy of the Independent Smallholder Party not only submitted a memorandum to the government urging it to break away from Germany and conclude a separate peace but also worked out a common programme of democratisation with the Social Democrats. Despite the great wave of persecution in 1942, the Communists also reorganised themselves under the cover name of ‘the Peace Party’, which made it easier for them to collaborate with anti-fascists in the Independence Movement who, at the same time, harboured anti-Bolshevik sentiments.

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I have written elsewhere about the Movement, Magyar Függetlenségi Mozgalom, founded in late 1941 under the leadership of Domokos Szent-Iványi (right), whose recently published memoirs deal with the period from 1939 to 1956, though mainly up to his arrest by the Communist-led government in 1946.

The western powers would have preferred to be dealing, after the war, with a thoroughly reformed Hungary governed by a ‘popular front’ of Liberals, Smallholders and Social Democrats. While the Nazis called for an intensification of the war effort, the Hungarians tried to diminish it and to make overtures to the Allies. However, their cautious and secretive diplomacy was closely followed by the Germans, who did not permit the Hungarians to reach a separate deal. Kállay had no alternative but to continue the military co-operation with Germany, though he protected the Jews living in Hungary, including the refugees from the Third Reich. He also permitted anti-Nazi groups to re-emerge and operate more openly. Above all, he hoped to be able to surrender to Western troops, thus avoiding a Soviet invasion. The US sent the Hungarian-American Francis Deák to Lisbon with instructions to talk to the Hungarians with the objective of keeping Hungary out of Soviet control. On 1 October Roosevelt met the Habsburg Otto von Habsburg, who had remained as his guest in the US during the war and assured him that if Romania remained with the Axis and Hungary joined the Allies, the US would support a continued Hungarian occupation and retention of southern Transylvania. The Hungarian government was willing and sent a message to Lisbon to that effect.

In January 1944, the Hungarian Government authorised the Archduke to act on its behalf. An American military mission was dropped into Western Hungary on 14 March, calling for Horthy’s surrender. Twenty thousand Allied troops were then set to parachute into the country and the Hungarian Army would then join the fight against the Germans. However, these moves became known to German intelligence, which had cracked the communications code.  By the time Horthy came to believe that his government could reach an agreement with the Soviets to end their involvement on the eastern front, it was again too late. On March 18th, 1944, Hitler summoned Horthy to a conference in Austria, where he demanded greater collaboration from the Hungarian state in his ‘final solution’ of his Jewish problem. Horthy resisted, but while he was still at the conference, German tanks rolled into Budapest on 19th March. Italy managed to pull out of the war, but while Horthy was still conferring at Hitler’s headquarters, a small German army had completed its occupation of Hungary by 22 March. By this time Horthy possessed neither moral nor physical strength to resist, and simply settled for keeping up appearances, with a severely limited sovereignty.

002On March 23rd, 1944, the government of Döme Sztójay was installed. Among his other first moves, Sztójay legalized the overtly Fascist Arrow Cross Party, which quickly began organizing throughout the country. During the four-day interregnum following the German occupation, the Ministry of the Interior was put in the hands of right-wing politicians well-known for their hostility to Jews. I have written extensively in other articles (see the references above) about the Holocaust which followed, both in the Adolf Eichmann’s deportations of the estimated 440,000 Jews from rural Hungary and the occupied territories to Auschwitz (pictured above) and other ‘death camps’. The devotion to the cause of the ‘final solution’ of the Hungarian Gendarmerie surprised even Eichmann himself, who supervised the operation with only twenty officers and a staff of a hundred, including drivers, cooks, etc. Very few members of the Catholic or Protestant clergy raised their voices against sending the Jews to their death. A notable exception was Bishop Áron Márton, in his sermon in Kolozsvár on 18 May. But the Catholic Primate of Hungary, Serédi, decided not to issue a pastoral letter condemning the deportation of the Jews. When news of the deportations reached British Prime Minister Winston Churchill, he wrote in a letter to his Foreign Secretary dated July 11, 1944:

 “There is no doubt that this persecution of Jews in Hungary and their expulsion from enemy territory is probably the greatest and most horrible crime ever committed in the whole history of the world….”

The idea that any member of the Hungarian government, including the President, or Regent, was unaware of the scale and nature of the deportations is fanciful, to say the least, as is the idea that Horthy was responsible for stopping the deportations from the countryside and/ or the capital. It is true that Horthy ordered the suspension of all deportations on July 6, but by then the Regent was virtually powerless. This is demonstrated by the fact that another 45,000 Jews were deported from the Trans-Danubian region and the outskirts of Budapest to Auschwitz after this day. The Sztójay government continued to ignore the Regent and rescheduled the date of deportation of the Jews of Budapest to Auschwitz to August 27th. What prevented this was that the Romanians switched sides on 23 August 1944, causing huge problems for the German military, and it was on Himmler’s orders that the cancellation of further deportations from Hungary was enacted on 25 August. But with the German high command preoccupied elsewhere, Horthy regained sufficient authority to finally dismiss Prime Minister Sztójay on 29 August. By then the war aims of the Horthy régime, the restoration of Hungary to its pre-Trianon status, were in tatters. The First and Second Awards and the acquisitions by force of arms would mean nothing after the defeat which now seemed inevitable. The fate of Transylvania was still in the balance in the summer of 1944, with everything depending on who would liberate the contested territories from the Germans. When Royal Romania succeeded in pulling out, the Soviet and Romanian forces combined forces began a joint attack and the weakened Hungarian Army was unable to contain them.

024A later ‘reign of terror’ followed the coup which brought the Szalási Arrow Cross government to power and ended Horthy’s rule in Hungary on 15 October 1944 (in the picture, top right, Ferenc Szalási in the foreground). Following this, tens of thousands of Jews of Budapest were sent on foot to the Austrian border in ‘death marches’ (pictured below), and most of the remaining forced labourers under Hungarian Army command were deported to Bergen-Belsen. Two ghettos were set up in Budapest. The big Budapest ghetto was set up and walled in the Erzsébetváros part of Budapest on 29 November. Arrow Cross raids and mass executions occurred in both ghettos regularly. In addition, in the two months between November 1944 and February 1945, the Arrow Cross shot between ten and fifteen thousand Jews on the banks of the Danube.

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Soviet troops liberated the big Budapest ghetto on 18 January 1945 (pictured above, bottom right). On the Buda side of the town, the encircled Arrow Cross continued their murders until the Soviets took Buda on 13 February.

 

As the front rolled westwards through Hungary,  revolutionary changes were already taking place behind it. However, Hungarian society could not achieve these by its own efforts: they were brought about with the help of foreign troops. This did not mean the immediate or forceful introduction of the Soviet political system. In the summer of 1945, the diplomat Domokos Szent-Ivanyi was optimistic about the future of Hungary, arriving at the conclusion that there were still opportunities for a return to democracy which could be realised with a well-planned strategy. One of his key observations in support of this was that…

The decisive factor in the Carpo-Danubian Basin as well as in the whole of East Central Europe is, and will be for many decades to come, the Soviet Union. In consequence any solution and settlement must be made with the cooperation of the Soviets.

As to the Western Democracies they are only of secondary important to the region. In handling the problems of Central Europe, the Western Democracies had shown a frightening weakness. In spite of all previous promises and obligations, countries and individuals alike had been abandoned by the Anglo-Saxons… My opinion was that no Hungarian Government must compromise its good relationship with the Soviet Union… Even in the case of a future war in which the Soviet Union lost, the immense territory of the Russian Empire would still be there, and she would continue to be Hungary’s most powerful neighbour.

This was a prophetic statement of the course which the second half of the twentieth century would take, and indeed the first decades of the twenty-first. Of course, the ‘future war’ turned out to be a long, cold one. But first, from his point of view, Hungarian-Russian relations could only be achieved by the removal from power of the Rákosi-Gerő clique, but this must also be achieved by legal, constitutional means and not by conspiracies and intrigue, by holding and winning indisputable elections. His MFM, the ‘underground’ inheritor of the conservative-liberal democratic tradition of Bethlen and Teleki, pledged its support to the Smallholders’ Party in this transition process. When the full force of the atrocities receded, the Soviet military leadership was more inclined to trust the routine business of public administration to the experienced Hungarian officials rather than to radical organisations, including previously banned communist ones, which had been suddenly brought to life with renewed popular support. Many of the Communist veterans of 1919 had spent the past thirty-five years in exile, many of them in Moscow, and though some wanted to see an immediate reintroduction of the dictatorship of the proletariat, these individuals were discouraged by the fact that a return of a ‘conservative-liberal democracy’ rather than a ‘people’s democracy’ was already on the national agenda. This sense was soon reinforced by the arrival of delegates from the western wartime allies; British, American and French officers belonging to the Allied Control Commission were present to oversee the domestic situation in Hungary.

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Although the fighting sometimes left large areas untouched, death and destruction were nationwide. According to rough calculations, the economic losses suffered during the war amounted to five times the national income of 1938, the last year of ‘outright’ peace, or forty per cent of the total national wealth. In the fighting itself, between 120 and 140 thousand people were killed and another quarter of a million never returned from captivity in Soviet Russia. They either died there or found new homes elsewhere. At least half a million Hungarians were kept in these camps for longer terms, most released after two or three years, though tens of thousands were set free only in the next decade. Of course, these losses were in addition to the loss of some 600,000 Hungarian Jews, Roma and other Holocaust victims referred to above. And then many thousands of ethnic Swabian Hungarians were either deported to Germany or taken to the Soviet Union for so-called ‘reparations’ work. Many women and girls in Budapest were raped by Red Army soldiers. In other ‘material terms’, Budapest and several hundred other settlements lay in ruins and not a single bridge across the Danube remained intact. The Nazis had plundered the gold reserves of the National Bank, most of the railway rolling-stock, machinery and other equipment, farm animals, museum treasures and a great deal of private property. What remained of food and livestock passed into the possession of the Red Army, which used them to supply their forces stationed in Hungary, as well as those in transit to the west.

These were just the basic, enforced costs and scars of war. There were many other problems related to the changing borders, mass internal migrations and emigration, racism and discrimination, economic reparations and inflation, all of which had to be dealt with by central government. Under moderate military supervision, local self-government bodies proved effective in upholding the law and new possibilities for further education opened up for the children of workers and peasants. Between 1945 and 1949 Hungary’s national political scene altered radically and violently. A dozen or so political parties revived or were established in 1945 and contested the fair and free elections of 1945. At first, everything went according to plan for the Independence Movement and the Smallholders’ Party, which overwhelmingly won both the municipal and general elections of autumn 1945.

However, straight after the general election, an argument broke out among the leading party members as to who the candidate for President should be (to be elected in the Parliament) and who should be Prime Minister. Also, they were forced into a Coalition government with the Social Democrats and Communists. The twelve parties were then quickly reduced to four by the manoeuvring and ‘salami-slicing’ tactics of the Communists. Over the course of the next year, the leaders of the Independence Movement were intimidated and finally arrested. Of the two peasant parties and two workers’ parties remaining, the Social Democrats and the Communist Party merged in 1948 to form the Hungarian Working People’s Party. As in the rest of Eastern Europe, a “people’s democracy” was then established which essentially promised to follow the peaceful path of socialist revolution. In some countries, other parties survived on a nominal basis, or in alliance with the ‘leading party’. In Hungary, however, political activity could only continue within the framework of the People’s Front.

Initially, the Smallholder-led Coalition government gave an impressive economic performance. Reconstruction proceeded quickly. Land reform benefited 650,000 landless and Smallholder peasants. Although workers wages fell to a fraction of what they had been earlier, industrial recovery was very rapid. As well as catering for the domestic market, trade began with Soviet, Czechoslovak and Romanian partners. But most of the progress of the 1945-49 period was then destroyed in the period which followed, 1949-53. The unrealistically ambitious plan targets set, the rapid pace of industrialisation and armaments production and the compulsory collectivization of the land, undermining the spontaneous organisation of cooperatives led to a deterioration of workers’ conditions at all levels and to peasants fleeing from the land, causing further ‘dilution’ of labour. It also led to a variety of further acts of intimidation of small-scale producers and the middle classes, appropriation of property and class discrimination throughout society, even involving schoolchildren. Production was emphasised at the expense of consumption, leading to directed labour and food rationing. Finally, there were the show trials and executions,  which were becoming the familiar traits of Stalinist régimes.

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The Congress of Young Communists – a poster by István Czeglédi & Tibor Bányhegyi

At the beginning of the 1950s, every poster displayed a pure smile or healthy muscles. Portraits of Mátyás Rákosi, the “people’s wise leader”, filled the streets. 

After Stalin’s death, Imre Nagy, himself a former exile in Moscow, returned from the periphery of the party to the centre of events. In 1944-45 he distributed land in his capacity as minister of agriculture in the Debrecen provisional government; in 1953 he was prime minister, though Rákosi remained as the Party’s first secretary. Consequently, the next years failed to produce the necessary political corrections, even after the momentous Twentieth Congress of the Soviet Party. Although Nagy succeeded in putting the economy on a sounder footing and those sentenced and imprisoned unjustly were rehabilitated, Rákosi and his clique launched one counter-attack after another. At the end of his memoirs on the Hungarian Independence Movement, Domokos Szent-Iványi draws ‘telling’ conclusions about the whole period of authoritarian government in Hungary. Written with the benefit of hindsight following a decade in prison and the subsequent Revolution of October 1956, his view of recent Hungarian events had clearly shifted his view of  Hungary’s place in European history, especially in relation to the Soviet Union, from those written in the summer of 1945, quoted above:

The dictatorship of Rákosi and his gang had no other support but the bayonets of the Red Army or rather the power of the secret services of the Russian Communist Party and of the Red Army. It was a situation which, within less than a decade, led to the Hungarian Revolution of October 1956, the end of the Rákosi dictatorship and a more peaceful and less disturbed period of the History of Hungary.

The period of the “Twenty-Five Years of Regency” (1919-1944), as well as the dictatorship of the Nazi supported Szálasi régime (1944) and the dictatorship of Mátyás Rákosi and his gang, supported by Stalin’s and Beria’s régime, cannot be considered or treated as independent chapters of Hungarian History. They were the continuation of Hungary’s history of the previous centuries and they do not mark the end of the natural evolution of the Hungarian people. This evolution has been determined by political and geographical factors and the future of Hungary will be influenced similarly by the same factors.

Hungary belongs to Western Civilization and she is essentially a European country. Yet, on the other hand, she had always been on the very line between Eastern and Western Civilization, and has never freed herself from Eastern influence entirely.

Sources:

László Kontler (2009), A History of Hungary. Budapest: Atlantisz Publishing House.

István Lázár (1992), An Illustrated History of Hungary. Budapest: Corvina.

Gyula Kodolányi & Nóra Szeker (eds.) (2013), Domokos Szent-Iványi: The Hungarian Independence Movement, 1939-1946. Budapest: Hungarian Review Books.

 

Posted December 14, 2018 by TeamBritanniaHu in Affluence, Agriculture, Anglo-Saxons, anti-Semitism, Assimilation, Cartoons, Christian Faith, Christian Socialism, Christianity, Church, Churchill, Civil Rights, Civilization, Co-operativism, Cold War, Communism, democracy, Education, Empire, Ethnic cleansing, Europe, Germany, Great War, History, Holocaust, Hungarian History, Hungary, Immigration, Imperialism, Iraq, Italy, Japan, Jews, Journalism, liberal democracy, manufacturing, Marxism, Migration, Monarchy, Mythology, Narrative, nationalisation, Population, populism, Racism, Refugees, Russia, terror, tyranny, Unemployment, Unionists, USSR, Utopianism, Warfare, Yugoslavia

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Britain, Ireland and Europe, 1994-99: Peace, Devolution & Development.   Leave a comment

LSF (1947) Nobel Peace Prize obv

Unionists & Nationalists – The Shape of Things to Come:

In Northern Ireland, optimism was the only real force behind the peace process. Too often, this is remembered by one of Blair’s greatest soundbites as the talks reached their climax: This is no time for soundbites … I feel the hand of history on my shoulder. Despite the comic nature of this remark, it would be churlish not to acknowledge this as one of his greatest achievements. Following the tenacious efforts of John Major to bring Republicans and Unionists to the table, which had resulted in a stalemate. Tony Blair had already decided in Opposition that an Irish peace settlement would be one of his top priorities in government. He went to the province as his first visit after winning power and focused Number Ten on the negotiations as soon as the IRA, sensing a fresh opportunity, announced a further ceasefire. In Mo Mowlem, Blair’s brave new Northern Ireland Secretary, he had someone who was prepared to be tough in negotiations with the Unionists and encouraging towards Sinn Feiners in order to secure a deal. Not surprisingly, the Ulster Unionist politicians soon found her to be too much of a ‘Green’. She concentrated her charm and bullying on the Republicans, while a Number Ten team dealt with the Unionists. Blair emphasised his familial links with Unionism in order to win their trust.

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There were also direct talks between the Northern Irish political parties, aimed at producing a return of power-sharing in the form of an assembly in which they could all sit. These were chaired by former US Senator George Mitchell and were the toughest part. There were also talks between the Northern Irish parties and the British and Irish governments about the border and the constitutional position of Northern Ireland in the future. Finally, there were direct talks between London and Dublin on the wider constitutional and security settlement. This tripartite process was long and intensely difficult for all concerned, which appeared to have broken down at numerous points and was kept going mainly thanks to Blair himself. He took big personal risks, such as when he invited Gerry Adams and Martin McGuinness of Sinn Fein-IRA to Downing Street. Some in the Northern Ireland office still believe that Blair gave too much away to the Republicans, particularly over the release of terrorist prisoners and the amnesty which indemnified known terrorists, like those responsible for the Birmingham bombings in 1974, from prosecution. At one point, when talks had broken down again over these issues, Mo Mowlem made the astonishing personal decision to go into the notorious Maze prison herself and talk to both Republican and Loyalist terrorist prisoners. Hiding behind their politicians, the hard men still saw themselves as being in charge of their ‘sides’ in the sectarian conflict. But Blair spent most of his time trying to keep the constitutional Unionists ‘on board’, having moved Labour policy away from support for Irish unification. In Washington, Blair was seen as being too Unionist.

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Given a deadline of Easter 1998, a deal was finally struck, just in time, on Good Friday, hence the alternative name of ‘the Belfast Agreement’. Northern Ireland would stay part of the United Kingdom for as long as the majority in the province wished it so. The Republic of Ireland would give up its territorial claim to the North, amending its constitution to this effect. The parties would combine in a power-sharing executive, based on a newly elected assembly. There would also be a North-South body knitting the two political parts of the island together for various practical purposes and mundane matters. The paramilitary organisations would surrender or destroy their weapons, monitored by an independent body. Prisoners would be released and the policing of Northern Ireland would be made non-sectarian by the setting up of a new police force to replace the Royal Ulster Constabulary (RUC), whose bias towards the Unionist community had long been a sore point for Nationalists. The deal involved a great deal of pain, particularly for the Unionists. It was only the start of a true peace and would be threatened frequently afterwards, such as when the centre of Omagh was bombed only a few months after its signing by a renegade splinter group of the IRA calling itself ‘the Real IRA’ (see the photo below). It murdered twenty-nine people and injured two hundred. Yet this time the violent extremists were unable to stop the rest from talking.

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Once the agreement had been ratified on both sides of the border, the decommissioning of arms proved a seemingly endless and wearisome game of bluff. Though the two leaders of the moderate parties in Northern Ireland, David Trimble of the Ulster Unionists and John Hume of the Nationalist SDLP, won the Nobel Prize for Peace, both these parties were soon replaced in elections by the harder-line Democratic Unionist Party led by Rev. Dr Ian Paisley, and by Sinn Fein, under Adams and McGuinness. Initially, this made it harder to set up an effective power-sharing executive at Stormont (pictured below). Yet to almost everyone’s surprise, Paisley and McGuinness sat down together and formed a good working relationship. The thuggery and crime attendant on years of paramilitary activity took another decade to disappear. Yet because of the agreement hundreds more people are still alive who would have died had the ‘troubles’ continued. They are living in relatively peaceful times. Investment has returned and Belfast has been transformed into a busier, more confident city. Large businesses increasingly work on an all-Ireland basis, despite the continued existence of two currencies and a border. The fact that both territories are within the European Union enables this to happen without friction at present, though this may change when the UK leaves the EU and the Republic becomes a ‘foreign country’ to it for the first time since the Norman Conquest. Tony Blair can take a sizeable slice of credit for this agreement. As one of his biographers has written:

He was exploring his own ability to take a deep-seated problem and deal with it. It was a life-changing experience for him.

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If the Good Friday Agreement changed the future relationship of the UK and Ireland, Scottish and Welsh devolution changed the future political shape of Great Britain. The relative indifference of the eighteen-year Tory ascendancy to the plight of the industrial areas of Scotland and Wales had transformed the prospects of the nationalist parties in both countries. Through the years of Tory rule, the case for a Scottish parliament had been bubbling under north of the border. Margaret Thatcher had been viewed as a conspicuously English figure imposing harsh economic penalties on Scotland, which had always considered itself to be inherently more egalitarian and democratic. The Tories, who had successfully played the Scottish card against centralising Labour in 1951, had themselves become labelled as a centralising and purely English party. Local government had already been reorganised in Britain and Northern Ireland in the early 1990s with the introduction of ‘unitary’ authorities.

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Scotland had a public culture further to the left than that of southern England, and therefore the initiatives on devolution came from the respectable middle-classes. A group of pro-devolution activists, including SNP, Labour and Liberal supporters, churchmen, former civil servants and trade unionists to found the Campaign for a Scottish Assembly. In due course, this produced a Constitutional Convention meant to bring in a wider cross-section of Scottish life behind their ‘Claim of Right’. It argued that if Scots were to stand on their own two feet as Mrs Thatcher had insisted, they needed control over their own affairs. Momentum increased when the Scottish Tories lost half their remaining seats in the 1987 election, and, following the poll tax rebellion, the Convention got going in March 1989, after Donald Dewar, Labour’s leader in Scotland, decided to work with other parties. The Convention brought together the vast majority of Scottish MPs, all but two of Scotland’s regional, district and island councils, the trade unions, churches, charities and many other organisations, in fact almost everyone except the Conservatives, who were sticking with the original Union, and the SNP, who wanted full independence.

Scottish Tories, finding themselves increasingly isolated, fought back vainly. They pointed out that if a Tory government, based on English votes, was regarded as illegitimate by the Scots, then in future a Labour government based on Scottish votes might be regarded as illegitimate by the English. In a 1992 poll in Scotland, fifty per cent of those asked said they were in favour of independence within the European Union. In the 1992 election, John Major had made an impassioned appeal for the survival of the Union. Had the four countries never come together, he argued, their joint history would have never been as great: Are we, in our generation, to throw all that away?  He won back a single Scottish seat. Various minor sops were offered to the Scots during his years in office, including the return of the Stone of Destiny, with much ceremony. However, the minor Tory recovery in 1992 was wiped out in the Labour landslide of 1997, when all the Conservatives seats north of the border, where they had once held the majority of them, were lost, as they were in Wales. Formerly just contestants in middle-class, rural and intellectual constituencies, in 1997 Scottish and Welsh nationalists now made huge inroads into former Conservative areas, and even into the Labour heartlands, and the latter despite the Labour leadership being held consecutively by a Welshman and a Scot.

By the time Tony Blair became the party leader, Labour’s commitment to devolution was long-standing. Unlike his predecessor, he was not much interested in devolution or impressed by it, particularly not for Wales, where support had been far more muted. The only thing he could do by this stage was to insist that a Scottish Parliament and Welsh Assembly would only be set up after referenda in the two countries, which in Scotland’s case would include a second question as to whether the parliament should be given the power to vary the rate of income tax by 3p in the pound. In September 1997, Scotland voted by three to one for the new Parliament, and by nearly two to one to give it tax-varying powers. The vote for the Welsh Assembly was far closer, with a wafer-thin majority secured by the final constituency to declare, that of Carmarthen. The Edinburgh parliament would have clearly defined authority over a wide range of public services – education, health, welfare, local government, transport and housing – while Westminster kept control over taxation, defence, foreign affairs and some lesser matters. The Welsh assembly in Cardiff would have fewer powers and no tax-raising powers. The Republic of Ireland was similarly divided between two regional assemblies but unlike the assemblies in the UK, these were not elected.

In 1999, therefore, devolved governments, with varying powers, were introduced in Scotland, Wales and, following the ratification referendum on the Belfast Agreement, in Northern Ireland. After nearly three hundred years, Scotland got its parliament with 129 MSPs, and Wales got its assembly with sixty members. Both were elected by proportional representation, making coalition governments almost inevitable. In Scotland, Labour provided the first ‘first minister’ in Donald Dewar, a much-loved intellectual, who took charge of a small group of Labour and Liberal Democrat ministers. To begin with, Scotland was governed from the Church of Scotland’s general assembly buildings. The devolution promised by John Smith and instituted by Tony Blair’s new Labour government in the late 1990s did, initially, seem to take some of the momentum out of the nationalist fervour, but apparently at the expense of stoking the fires of English nationalism, resentful at having Scottish and Welsh MPs represented in their own assemblies as well as in Westminster. But there was no early crisis at Westminster because of the unfairness of Scottish and Welsh MPs being able to vote on England-only business, the so-called Midlothian Question, particularly when the cabinet was so dominated by Scots. But despite these unresolved issues, the historic constitutional changes brought about by devolution and the Irish peace process reshaped both Britain and Ireland, producing irrevocable results. In his television series A History of Britain, first broadcast on the BBC in 2000, Simon Schama argued that…

Histories of Modern Britain these days come not to praise it but to bury it, celebrating the denationalization of Britain, urging on the dissolution of ‘Ukania’ into the constituent European nationalities of Scotland, Wales and England (which would probably tell the Ulster Irish either to absorb themselves into a single European Ireland or to find a home somewhere else – say the Isle of Man). If the colossal asset of the empire allowed Britain, in the nineteenth and early twentieth century, to exist as a genuine national community ruled by Welsh, Irish and (astonishingly often) Scots, both in Downing Street and in the remote corners of the empire, the end of that imperial enterprise, the theory goes, ought also to mean the decent, orderly liquidation of Britannia Inc. The old thing never meant anything anyway, it is argued; it was just a spurious invention designed to seduce the Celts into swallowing English domination where once they had been coerced into it, and to persuade the English themselves that they would be deeply adored on the grouse moors of the Trossachs as in the apple orchards of the Weald. The virtue of Britain’s fall from imperial grace, the necessity of its European membership if only to avoid servility to the United States, is that it forces ‘the isles’ to face the truth: that they are many nations, not one.

However, in such a reduction of false British national consciousness to the ‘true’ identities and entities of Scotland, Wales and England, he argued, self-determination could go beyond the ‘sub-nations’, each of which was just as much an invention, or a re-invention, as was Britain. Therefore an independent Scotland would not be able to resist the rights to autonomy of the Orkney and Shetland islands, with their Nordic heritage, or the remaining Gallic-speaking isles of the Outer Hebrides. Similarly, the still primarily Anglophone urban south-Walians and the inhabitants of the Welsh borders and south coast of Pembrokeshire might in future wish to assert their linguistic and cultural differences from the Welsh-speakers of the rural Welsh-speakers of West and North Wales. With the revival of their Celtic culture, the Cornish might also wish to seek devolution from a country from which all other Celts have retreated into their ethnolinguistic heartlands. Why shouldn’t post-imperial Britain undergo a process of ‘balkanization’ like that of the Former Yugoslavia?

LSF RSF Lets build a culture of peace LR

Well, many like Schama seemed to answer at that time, and still do today, precisely because of what happened due to ethnonationalism in the Balkans, especially in Bosnia and Kosovo, where the conflicts were only just, in 1999, being brought to an end by air-strikes and the creation of tides of refugees escaping brutal ethnic cleansing. The breaking up of Britain into ever smaller and purer units of pure white ethnic groups was to be resisted. Instead, a multi-national, multi-ethnic and multi-cultural Britain was coming into being through a gradual and peaceful process of devolution of power to the various national, ethnic and regional groups and a more equal re-integration of them into a ‘mongrel’ British nation within a renewed United Kingdom.

Economic Development, the Regions of Britain & Ireland and the Impact of the EU:

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The late twentieth century saw the transformation of the former docklands of London into offices and fashionable modern residential developments, with a new focus on the huge Canary Wharf scheme (pictured above) to the east of the city. The migration of some financial services and much of the national press to the major new developments in London’s Docklands prompted the development of the Docklands Light Railway and the Jubilee line extension. The accompanying modernisation of the London Underground was hugely expensive in legal fees and hugely complex in contracts. Outside of London, improvements in public transport networks were largely confined to urban and suburban centres with light railway networks developed in Manchester, Sheffield and Croydon.

Beyond Canary Wharf to the east, the Millennium Dome, which Blair’s government inherited from the Tories, was a billion pound gamble which Peter Mandelson and ‘Tony’s cronies’ decided to push ahead with, despite cabinet opposition. Architecturally, the dome was striking and elegant, a landmark for London which can be seen from by air passengers arriving in the capital. The millennium was certainly worth celebrating but the conundrum ministers and their advisers faced was what to put in their ‘pleasure’ Dome. It would be magnificent, unique, a tribute to British daring and ‘can-do’. Blair himself said that it would provide the first paragraph of his next election manifesto. But this did not answer the current question of what it was for, exactly. When the Dome finally opened at New Year, the Queen, Prime Minister and celebrities were treated to a mish-mash of a show which embarrassed many of them. When it opened to the public, the range of mildly interesting exhibits was greeted as a huge disappointment. Optimism and daring, it seemed, were not enough to fill the people’s expectations. Later that year, Londoners were given a greater gift in the form of a mayor and regional assembly with powers over local planning and transport. This new authority in part replaced the Greater London Council abolished by the Thatcher government in 1986.

However, there were no signs that the other conurbations in the regions of England wanted regionalisation, except for some stirrings in the Northeast and Cornwall. The creation of nine Regional Development Agencies in England in 1998-99 did not seek to meet a regionalist agenda. In fact, these new bodies to a large extent matched the existing structures set up since the 1960s for administrative convenience and to encourage inward investment. Improving transport links were seen as an important means of stimulating regional development and combating congestion. Major Road developments in the 1990s included the completion of the M25 orbital motorway around London and the M40 link between London and Birmingham. However, despite this construction programme, congestion remained a problem: the M25, for example, became the butt of jokes labelling it as the largest car park on the planet, while traffic speeds in central London continued to fall, reaching fifteen kilometres per hour by 1997, about the same as they had been in 1907. Congestion was not the only problem, however, as environmental protests led to much of the road-building programme begun by the Tory governments being shelved after 1997. The late nineties also saw the development of some of the most expensive urban motorways in Europe.

In the Sottish Highlands and Islands, the new Skye road bridge connected the Isle of Skye to the mainland. A group led by the Bank of America built and ran the new bridge. It was one of the first projects built under a ‘public finance initiative’, or PFI, which had started life under Tory Chancellor Norman Lamont, five years before Labour came to power when he experimented with privatising public projects and allowing private companies to run them, keeping the revenue. Although the basic idea was simple enough, this represented a major change in how government schemes were working, big enough to arouse worry even outside the tribes of political obsessives. There were outraged protests from some islanders about paying tolls to a private consortium and eventually the Scottish Executive bought the bridge back. At the opposite corner of the country, the Queen Elizabeth II road bridge was built joining Kent and Essex across the Thames at Dartford, easing congestion on both sides of the Dartford tunnel. It was the first bridge across the river in a new place for more than half a century and was run by a company called ‘Le Crossing’, successfully taking tolls from motorists.

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Undoubtedly the most important transport development was the Channel Tunnel rail link to France, completed in 1994. It was highly symbolic of Britain’s commitment to European integration, and millions of people and vehicles had travelled from London to Paris in under three hours by the end of the century. The town of Ashford in Kent was one of the major beneficiaries of the ‘Chunnel’ rail link, making use of railway links running through the town. Its population grew by over ten per cent in the 1990s. By the end of that decade, the town had an international catchment area of some eighty-five million people within a single day’s journey. This and the opening of Ashford International railway station as the main terminal in the rail link to the continent attracted a range of engineering, financial, distribution and manufacturing companies to the town. In addition to the fourteen business parks that were established in the town, new retail parks were opened. Four green-field sites were also opened on the outskirts of the town, including a science park owned by Trinity College, Cambridge. Ashford became closer to Paris and Brussels than it was to Manchester and Liverpool, as can be seen on the map below. In addition to its international rail link, the town’s position at the hub of a huge motorway network was in a position to be an integral part of a truly international transport system.

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Modern-day affluence at the turn of the century was reflected in the variety of goods and services concentrated in shopping malls. They are now often built on major roads outside towns and cities to make them accessible to the maximum number of people in a region.

Economic change was most dramatic in the Irish Republic, which enjoyed the highest growth rates in Europe in the 1990s. The so-called ‘Celtic Tiger’ economy boomed, aided by inward investment so that by the end of the decade GDP per capita had surpassed that of the UK. Dublin, which remained if anything more dominant than London as a capital city, flourished as a result of a strong growth in the service industries. Growth rates for the ‘new economy’ industries such as information and communications technology were among the highest in the world. Generous tax arrangements and the city’s growing reputation as a cultural centre meanwhile helped to encourage the development of Dublin’s ‘rockbroker belt’. Even agriculture in the Irish Republic, in decline in the early 1990s, still contributed nine per cent of Ireland’s GDP, three times the European average. In the west of Ireland, it was increasingly supplemented by the growth of tourism.

Nevertheless, while the expansion of Ireland’s prosperity lessened the traditional east-west divide, it did not eliminate it. Low population density and a dispersed pattern of settlement were felt to make rail developments unsuitable. Consequently, Ireland’s first integrated transport programme, the Operational Programme for Peripherality, concentrated on improving: the routes from the west of Ireland to the ferry port of Rosslare; the routes from Belfast to Cork; Dublin and the southwest; east-west routes across the Republic. Many of these improvements benefited from EU funding. The EU also aided, through its ‘peace programme’, the development of transport planning in Britain, with infrastructure projects in, for example, the Highlands and Islands of Scotland. In 1993, the EU had decided to create a combined European transport network. Of the fourteen projects associated with this aim, three were based in Britain and Ireland – a rail link from Cork to Larne in Northern Ireland, the ferry port for Scotland; a road link from the Low Countries across England and Wales to Ireland, and the West Coast mainline railway route in Britain.

The old north-south divide in Britain reasserted itself with a vengeance in the late 1990s as people moved south in search of jobs and prosperity as prices and wages rose. Even though the shift towards service industries was reducing regional economic diversity, the geographical distribution of regions eligible for European structural funds for economic improved the continuing north-south divide. Transport was only one way in which the EU increasingly came to shape the geography of the British Isles in the nineties. It was, for example, a key factor in the creation of the new administrative regions of Britain and Ireland in 1999. At the same time, a number of British local authorities opened offices in Brussels for lobbying purposes and attempts to maximise receipts from European structural funds also encouraged the articulation of regionalism. Cornwall, for instance, ‘closed’ its ‘border’ with Devon briefly in 1998 in protest at not receiving its EU social funds, while the enthusiasm for the supposed economic benefits that would result from ‘independence in Europe’ helped to explain the revival of the Scottish Nationalist Party following devolution. ‘Silicon Gen’ in central Scotland was, by the end of the decade, the largest producer of computing equipment in Europe.

The European connection was less welcome in other quarters, however. Fishermen, particularly in Devon and Cornwall and on the North Sea Coast of England, felt themselves the victims of the Common Fisheries Policy quota system. There was also a continuing strong sense of ‘Euroscepticism’ in England, fuelled at this stage by a mixture of concerns about ‘sovereignty’ and economic policy, which I will deal with in a separate article. Here, it is worth noting that even the most enthusiastic Europhiles, the Irish, sought to reject recent EU initiatives which they felt were not in their interests in their 2001 referendum on the Treaty of Nice. Nevertheless, the growth of physical links with Europe, like the Channel Tunnel, the connections between the British and French electricity grids, and the development of ‘budget’ airlines, made it clear that both of the main ‘offshore’ islands, Britain and Ireland were, at the turn of the century, becoming increasingly integrated, both in economic and administrative terms, with the continent of Europe.

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At the beginning of 1999, however, a debate began over British membership of the euro, the single currency which was finally taking shape within the EU. Though he was never a fanatic on the subject, Blair’s pro-European instincts and his desire to be a leading figure inside the EU predisposed him to announce that Britain would join, not in the first wave, but soon afterwards. He briefed that this would happen. British business seemed generally in favour, but the briefing and guesswork in the press were completely baffling. For Gordon Brown, stability came first, and he concluded that it was not likely that Britain could safely join the euro within the first Parliament. When he told Blair this, the two argued and then eventually agreed on a compromise. Britain would probably stay out during the first Parliament, but the door should be left slightly ajar. Pro-European business people and those Tories who had lent Blair and Brown their conditional support, as well as Blair’s continental partners, should be kept on board, as should the anti-Euro press. The terms of the delicate compromise were meant to be revealed in an interview given by Brown to The Times. Being more hostile to entry than Blair, and talking to an anti-euro newspaper, his team briefed more strongly than Blair would have liked. By the time the story was written, the pound had been saved from extinction for the lifetime of the Parliament. Blair was aghast at this.

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The chaos surrounding this important matter was ended and the accord with Blair patched up by Brown and his adviser Ed Balls, who quickly produced five economic tests which would be applied before Britain would enter the euro. They required more detailed work by the Treasury; the underlying point was that the British and continental economies must be properly aligned before Britain would join. Brown then told the Commons that though it was likely that, for economic reasons, Britain would not join the euro until after the next election, there was no constitutional or political reason not to join. Preparations for British entry would therefore begin. This gave the impression that once the tests were met there would be a post-election referendum, followed by the demise of sterling.

In 1999, with a full-scale launch at a London cinema, Blair was joined by the Liberal Democrat leader Charles Kennedy and the two former Tory cabinet ministers Ken Clarke and Michael Heseltine to launch ‘Britain in Europe’ as a counter-blast to the anti-Euro campaign of ‘Business for Sterling’. Blair promised that together they would demolish the arguments against the euro, and there was alarmist media coverage about the loss of eight million jobs if Britain pulled out of the EU. But the real outcome of this conflict was that the power to decide over membership of the euro passed decisively from Blair to Brown, whose Treasury fortress became the guardian of the economic tests. Brown would keep Britain out on purely economic grounds, something which won him great personal credit among Conservative ‘press barons’. There was to be no referendum on the pound versus euro, however much the Prime Minister wanted one.

Very little of what New Labour had achieved up to 1999 was what it was really about, however, and most of its achievements had been in dealing with problems and challenges inherited from previous governments or with ‘events’ to which it had to react. Its intended purpose was to deliver a more secure economy, radically better public services and a new deal for those at the bottom of British society. Much of this was the responsibility of Gordon Brown, as agreed in the leadership contest accord between the two men. The Chancellor would become a controversial figure later in government, but in his early period at the Treasury, he imposed a new way of governing. He had run his time in Opposition with a tight team of his own, dominated by Ed Balls, later an MP and Treasury minister before becoming shadow chancellor under Ed Miliband following the 2010 general election. Relations between Team Brown and the Treasury officials began badly and remained difficult for a long time. Brown’s handing of interest control to the Bank of England was theatrical, planned secretly in Opposition and unleashed to widespread astonishment immediately New Labour won. Other countries, including Germany and the US, had run monetary policy independently of politicians, but this was an unexpected step for a left-of-centre British Chancellor. It turned out to be particularly helpful to Labour ministers since it removed at a stroke the old suspicion that they would favour high employment over low inflation. As one of Brown’s biographers commented, he…

 …could only give expression to his socialist instincts after playing the role of uber-guardian of the capitalist system.

The bank move has gone down as one of the clearest achievements of the New Labour era. Like the Irish peace process and the devolution referenda, it was an action which followed on immediately after Labour won power, though, unlike those achievements, it was not something referred to in the party’s election manifesto. Brown also stripped the Bank of England of its old job of overseeing the rest of the banking sector. Otherwise, it would have had a potential conflict of interest if it had had to concern itself with the health of commercial banks at the same time as managing interest rates. As a result of these early actions, New Labour won a reputation for being economically trustworthy and its Chancellor was identified with ‘prudent’ management of the nation’s finances. Income tax rates did not increase, which reassured the middle classes. Even when Brown found what has more recently been referred to as ‘the magic money tree’, he did not automatically harvest it. And when the ‘dot-com bubble’ was at its most swollen, he sold off licenses for the next generation of mobile phones for 22.5 bn, vastly more than they were soon worth. The produce went not into new public spending but into repaying the national debt, 37 bn of it. By 2002 government interest payments on this were at their lowest since 1914, as a proportion of its revenue.

Despite his growing reputation for prudence, Brown’s introduction of ‘stealth taxes’ proved controversial, however. These included the freezing of income tax thresholds so that an extra 1.5 million people found themselves paying the top rate; the freezing of personal allowances; rises in stamp duties on houses and a hike in national insurance. In addition, some central government costs were palmed off onto the devolved administrations or local government, so that council tax rose sharply, and tax credits for share dividends were removed. Sold at the time as a ‘prudent’ technical reform, enabling companies to reinvest in their core businesses, this latter measure had a devastating effect on the portfolios of pension funds, wiping a hundred billion off the value of retirement pensions. This was a staggering sum, amounting to more than twice as much as the combined pension deficits of Britain’s top 350 companies. Pensioners and older workers were angered when faced with great holes in their pension funds. They were even more outraged when Treasury papers released in 2007 showed that Brown had been warned about the effect this measure would have. The destruction of a once-proud pension industry had more complex causes than Brown’s decision; Britain’s fast-ageing population was also a major factor, for one. But the pension fund hit produced more anger than any other single act by the New Labour Chancellor.

Perhaps the most striking long-term effect of Brown’s careful running of the economy was the stark, dramatic shape of public spending. For his first two years, he stuck fiercely to the promise he had made about continuing the Major government’s spending levels. These were so tight that even the man who set these levels, Kenneth Clarke, said that he would not actually have kept to them had the Tories been re-elected and had he been reappointed as Chancellor. Brown brought down the State’s share of public spending from nearly 41% of GDP to 37.4% by 1999-2000, the lowest percentage since 1960 and far below anything achieved under Thatcher. He was doing the opposite of what previous Labour Chancellors had done. On arriving in office, they had immediately started spending, in order to stimulate the economy in classical Keynesian terms. When they had reached their limits, they had then had to raise taxes. He began by putting a squeeze on spending and then loosening up later. There was an abrupt and dramatic surge in public spending, particularly on health, back up to 43%. The lean years were immediately followed by the fat ones, famine by the feast. But the consequence of the squeeze was that the first New Labour government of 1997-2001 achieved far less in public services than it had promised. For example, John Prescott had promised a vast boost in public transport, telling the Commons in 1997:

I will have failed if in five years’ time there are not many more people using public transport and far fewer journeys by car. It’s a tall order, but I urge you to hold me to it.

Because of ‘Prudence’, and Blair’s worries about being seen as anti-car, Prescott had nothing like the investment to follow through and failed completely. Prudence also meant that Brown ploughed ahead with cuts in benefit for lone-parent families, angering Labour MPs and resulting in a Scottish Labour conference which labelled their Westminster government and their own Scots Chancellor as economically inept, morally repugnant and spiritually bereft. Reform costs money and without money, it barely happened in the first term, except in isolated policy areas where Blair and Brown put their heads down and concentrated. The most dramatic programme was in raising literacy and numeracy among younger children, where Number Ten worked closely with the Education Secretary, David Blunkett, and scored real successes. But unequivocally successful public service reforms were rare.

At first, Labour hated the idea of PFIs, which were a mixture of two things associated with Thatcherite economic policies, the privatisation of capital projects, with the government paying a fee to private companies over many years, and the contracting out of services – waste collection, school meals, cleaning – which had been imposed on unwilling socialist councils from the eighties. Once in power, however, Labour ministers began to realise that those three little letters were political magic because they allowed them to announce and oversee exciting new projects and take the credit for them in the full knowledge that the full bill would be left for the taxpayers of twenty to fifty years hence. In this way, spending and funding of new hospitals or schools would be a problem for a future health or education minister.

PFIs were particularly attractive when other kinds of spending were tightly controlled by ‘Prudence’. Large amounts of capital for public buildings were declared to be ‘investment’, not spending, and put to one side of the public accounts. The justification was that private companies would construct and run this infrastructure so much more efficiently than the State and that profits paid to them by taxpayers would be more than compensated for. Ministers replied to criticisms of these schemes by pointing out that, without them, Britain would not get the hundreds of new school buildings, hospitals, health centres, fire stations, army barracks, helicopter training schools, prisons, government offices, roads and bridges that it so obviously needed by the nineties. Significantly, the peak year for PFIs was 1999-2000, just as the early Treasury prudence in conventional spending had bitten hardest and was being brought to an end.

Sources:

Andrew Marr (2008), A History of Modern Britain. Basingstoke: Pan Macmillan.

Simon Schama (2000), A History of Britain: The Fate of Empire, 1776-2000. London: BBC Worldwide.

Peter Catterall (et. al.) (2001), The Penguin Atlas of British & Irish History. London: Penguin Books.

Posted November 23, 2018 by TeamBritanniaHu in Affluence, Agriculture, Balkan Crises, BBC, Belfast Agreement, Birmingham, Britain, British history, Britons, Brussels, Celtic, devolution, Education, Ethnic cleansing, Europe, European Union, History, Immigration, Integration, Irish history & folklore, John Major, Margaret Thatcher, Migration, morality, nationalism, Nationality, New Labour, Population, privatization, Quakers (Religious Society of Friends), Reconciliation, Respectability, Social Service, south Wales, Thatcherism, Unionists, Wales, War Crimes, Welsh language, Yugoslavia

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