Agricultural Protectionism and the Working Class
Learning from the History of the English Corn Laws
(From "Storm Petrel" No.708-720, 1999)
Written by Masaru Machida
Translated by Roy West
CONTENTS
Introduction
-
The Focal Point of Early 19th Century Political Struggle:
|The Period from the Establishment to the Repeal of the Corn Laws
-
The Prototype of the Current Theories of "Food Security":
|Malthus' Defense of the Corn Laws
-
Defending the Interests of Industrial Capital:
|Ricardo's Criticism of Protectionism
-
The Formation of the Anti-Corn Law League:
|A Lavishly Funded campaign
-
Piper Plays the Tune, but the Workers Don't Dance:
|Catching on to the Deceit of the Anti-Corn Laws League
-
The Corn Laws are Ultimately Abolished:
|Victory of the Industrial Capitalists over the Rural Aristocracy
-
Free Trade or Protectionism?
|Fundamental Perspective of Marx and Engels
-
Protectionism is Already Reactionary:
|Marx's Criticism of Protectionism
-
Exposing the Hypocrisy of Free Trade Advocates:
|Marx's Speech on Free Trade (1)
-
Why "Support in Principle":
|Marx's Speech on Free Trade (2)
-
Marxism and Romanticism:
|Lenin's View of the Corn Laws Issue (1)
-
The Core of the Marxist Method:
|Lenin's View of the Corn Laws Issue (2)
Introduction
Recently the Japanese government has decided to shift from a gminimum
accessh policy for rice imports to the method of tariffs. It was
determined that since the import quotas were rising every year, the use
of high tariffs would be a more effective policy than import restrictions.
However, since the shift to tariffs leads, little by little, to overall
trade liberalization it has sparked the indignation of the advocates of
agricultural protectionism, beginning with the Japanese Communist Party
(JCP). How, then, should the working class view this question of
agricultural imports? Here we intend to address this question by
examining the history of the Corn Laws in 19th century England.
1. The Focal Point of Early 19th Century Political Struggle:
@|The Period from the Establishment to the Repeal of the Corn Laws
We will begin by considering what are the English Corn Laws, and provide
an overview of the history spanning implementation up to repeal.
The Corn Laws were legislation that attempted to promote exports of agricultural
products by prohibiting or limiting imports of such products as wheat,
rye, oats, bean, and corn. The origin of the laws can be traced back
to the middle of the 15th century. Since the late 17th century, the
Corn Laws, along with the Navigation Acts (laws mandating that English
vessels be used in colonial trade), represented an important pillar of
the protectionist policies of mercantilism.
With the consolidation of capitalism in the latter half of the 18th century,
however, the industrial bourgeoisie began to raise the banner of free competition
and free trade, criticizing mercantilism. The first person to theoretically
express this view was Adam Smith. In The Wealth of Nations, Smith heaped criticism on the subsidies for exports based on the Corn
Laws and expounded a theory of free trade. At the end of the 18th
century, however, with the advance of the gindustrial revolutionh and
increase in population, England, which had been a great agriculture exporter,
became an importer of agricultural products. With this change, the
focus of the Corn Laws also shifted away from the policy of encouraging
exports to that of limiting imports.
Still, with the outbreak of the French Revolution and the 25-year period
of revolution and war that engulfed Europe, trade between England and the
Continent was severed, as symbolized by the blockade of territories held
by Napoleon. As a result, even without relying on the Corn Laws to
limit imports, the price of corn (this refers to grain in general) during
this period rose quickly (52 shillings per quarter in 1789 to 126 shillings
per quarter in 1812) and rent likewise rose two- or three-fold, thereby
generating huge profits for the landowning aristocracy and tenant-farmers
(agricultural capitalists). But this all changed with the end of
the Napoleonic wars, as Engels points out:
gWhen in 1814 peace removed the obstacles to import, the price of corn
fell and the tenant-farmers, in view of the high rents, could no longer
cover the cost of producing their corn. Only two ways out were possible:
either that the landowners should reduce the rent or that a real protective
tariff should be imposed instead of the nominal one. The landowners,
who not only dominated the Upper House and the Ministry but also (prior
to the Reform Bill) possessed fairly unrestricted power in the Lower House,
naturally chose the latter course and in 1815 introduced the Corn Laws
amid the furious outcry of the middle classes and the people, at that time
still guided by the latter, and under the protection of bayonets.h (gHistory
of the Corn Lawsh)
The Corn Laws introduced in 1815, prohibited imports of corn altogether
if the price in England remained under 80 shillings per quarter.
In this way, the decline in grain prices was stemmed, protecting the interests
of the landowners and capitalist farmers. Since the price of corn
did not exceed 80 shillings throughout the country, this effectively amounted
to a complete ban on corn imports.
There was a famous debate centering on the Corn Laws between Thomas Malthus,
who represented the landowners in defense of the laws and, and David Ricardo,
who opposed the Corn Laws from the standpoint of the industrial capitalists.
We will examine this debate in the next section, and point out that the
arguments of Malthus form the theoretical basis for the reactionary agricultural
protectionism of the JCP.
After some modifications were made to the Corn Laws in 1822, a system of
import duties based on the sliding scale of Huskisson and Canning was introduced
in 1828. According to this system, when the price of corn was 66
shillings, the import duty would be 20 shillings and 8 pence, and this
duty would rise one shilling for each 1-shilling drop in the price of the
corn. For example, if the price of corn were 52 shillings, the tax
would reach 34 shillings and 8 pence. Therefore, this was basically a ban
on imports.
Meanwhile, the bourgeoisie, which had made advances in parliament thanks
to changes in the election laws in the 1832 Reform Act, formed the Anti-Corn
Law League in the late 1830s. The league was primarily led by Richard
Cobden and developed into a powerful movement. The bourgeoisie were
able to win the appeal of the Corn Laws in 1846, but we will examine this
period later.
Because the bourgeoisie tried to win the working masses over to their side
in the course of the anti-Corn Law movement, attempting to ally with the
Chartists, Marx and Engels examined this movement on a number of occasions,
beginning in the early 1840s. Even today, there are many important
lessons that we can draw from their criticism.
2. The Prototype of the Current Theories of "Food Security":
@|Malthus' Defense of the Corn Laws
In the previous section, we saw that the landowners in England were terrified that the revival of trade with the Continent following
the Napoleonic Wars would result in a flood of cheap grain. In response
to this, the English government, which was dominated by this landowning
class, proposed an amendment of the Corn Laws as early as 1813, and in
1815 the Corn Laws were modified so that a ban was placed on foreign corn
if the domestic price of corn fell below 80 shillings per quarter.
Naturally this law, which was intended to salvage the position of the landowners
by preventing imports, met with fierce resistance from the bourgeoisie
and working class. In the midst of this tumultuous situation, Thomas
Malthus, the author of An Essay on the Principle of Population and gdarlingh of the ruling class, rose in defense of the Corn Laws.
From 1814 to 1815, Malthus published three pamphlets in quick succession:
gObservations on the Effects of the Corn Laws, and of a Rise or
Fall in the Price of Corn on the Agriculture and General Wealth of the
Country,h gThe Grounds of an Opinion on the Policy of Restricting the
Importation of Foreign Corn,h and gAn Inquiry into the Nature and Progress
of Rent, and the Principles by which it is regulated.h
Malthusf theory has various aspects, but at its core is the so-called
theory of gfood securityh and gfood self-sufficiency.h Malthus
was forced to generally recognize the significance of the theory of free
trade formulated from the time of Adam Smith, admitting that gfree trade
in corn would in all ordinary cases not only secure a cheaper, but a more
steady, supply of grain.h (gObservationsh) However, he then quickly
rejects this same view:
gIt is alleged, first, that security is of still more importance than
wealth, and that a great country likely to excite the jealousy of others,
if it becomes dependent for the support of any considerable portion of
people upon foreign corn, exposes itself to the risk of its most essential
supplies suddenly fail at the time of greatest need.h (Ibid)
He adds that:
gBut it is not in the power of any single nation to secure the freedom
of the foreign trade in corn. To accomplish this, the concurrence of many
others is necessary; and this concurrence, the fears and jealousies so
universally prevalent about the means of subsistence, almost invariably
prevent.h (gThe Groundsh)
In other words, corn (agricultural products) is viewed as something separate
from gfree trade,h and it is said that if the conflict between states
is aggravated, and war occurs, problems will arise from the sudden cessation
of imports. In this sense, free trade cannot exist for agricultural products
because in each country there are gfears and jealousiesh that are guniversally
presenth concerning the gmeans of subsistence.h
For us, of course, there is nothing new about Malthusf logic which introduces
the idea of the guniquenessh of agriculture (food) in order to warn of
the danger of relying on foreign grain and oppose agricultural imports.
This is essentially identical to the hysterical arguments we frequently
hear from reactionaries and the JCP about gwhat might happen if foreign
countries have control over our stomachs!h This sort of view leads
to the conclusion that gfood self-sufficiencyh is important, and this
is also the conclusion reached by Malthus:
gA system of restrictions so calculated as to keep us, in average years,
nearly independent of foreign supplies of corn, will more effectually conduce
to the wealth and prosperity of the country, and of by far the greatest
mass of the inhabitants, than the opening of our ports for the free admission
of foreign corn, in the actual state of Europe.h (Ibid)
In order to prove the disadvantage of agricultural free trade to everyone
except certain sectors (those involved in such things as importing and
finance), Malthus had to construct an elaborate dogma. For example,
he claimed that ghigh prices of cornh were not disadvantageous to workers,
but rather in their interests. He explained this on the basis of
the dogma that gthe price of corn determines wages,h offering up the
following sophistry:
gBut if [workers] are able to command the same quantity of necessaries,
and receive a money price for their labour, proportioned to [cornfs] advanced
price, there is no doubt that, with regard to all the objects of convenience
and comfort, which do not rise in proportion to corn (and there are many
such consumed by the poor), their condition will be most decidedly improved.h
(gAn Inquiryh)
Moreover, he speaks of the rent of the landowners as, affording gthe most
steady home demand for the manufactures of the country, the most effective
fund for its financial support, and the largest disposable force for its
army and navyh (gThe Groundsh), thereby nakedly glorifying the unproductive
expenditures of this class, arguing that ensuring high rents through import
restrictions is important for the state.
Malthus is essentially identical to the JCP in terms of one-sidedly emphasizing
the instability and griskh inherent in trade between capitalist states,
denying the historical progressiveness of capitalism in propelling production
and exchange beyond the framework of the nation-state and developing relations
of interdependence, and sacrificing the general social interests to maintain
the particular interests of one class. The only difference is the
particular class that is being defended, with Malthus defending the landowning
class while the JCP defends the small farmers.
We can see that the theory of gfood securityh that is currently in fashion
is basically nothing more than a rehashing of a theory whose origins can
be traced back well over a century to the reactionary Thomas Malthus.
3. Defending the Interests of Industrial Capital:
@@|Ricardo's Criticism of Protectionism
Against Malthusf theory of agricultural protectionism and defense of the
Corn Laws from the standpoint of the landowners, Ricardo made the case
for the opposing camp, representing the standpoint of the industrial bourgeoisie.
In response to the three pamphlets Malthus wrote between 1814-15 to defend
the Corn Laws, Ricardo wrote a pamphlet in 1815 entitled gEssay on the
Influence of a Low Price of Corn on the Profits of Stockh that refuted
Malthusf arguments.
Ricardo took up this subject again in 1822 in his essay gOn Protection
to Agriculture,h and prior to that, in 1817, he had published the first
edition of Principles of Political Economy and Taxation, which included a chapter dealing with the theory of rent developed in
Malthusf pamphlets. In this way, the Corn Laws debate represents
an important moment in the establishment of the so-called Ricardian system.
Criticism of protectionist agricultural policies appears in a wide array
of Ricardofs writing, including his discussion of profit, rent and economic
policies, but the main point he makes is that placing limitations on the
importation of foreign agricultural products keeps their prices high, thereby
driving up the cost of wages for which they form the main component part.
Since an increase in wages means a decrease in profits, this ran not only
directly counter to the interests of the bourgeoisie, but also obstructed
the accumulation of capital and inhibited the development of capitalism
-- and for Ricardo and those of his era this was equivalent to the hindrance
of the progress and development of society in general.
Based on his own theory of differential rent (according to which rent is
the transformed part of the surplus production generated from superior
land as compared to inferior land) and his law of diminishing returns to
land (the dogma that with the expanded demand for grain accompanying the
increase in capital and population, each country would be obliged to cultivate
inferior land, which would result in soaring grain prices and wages, and
diminished profits, Ricardo emphasized the following:
gThus by bringing successively land of a worse quality, or less favourably
situated into cultivation, rent would rise on the land previously cultivated,
and precisely in the same degree would profits fall; and if the smallness
of profits do not check accumulation, there are hardly any limits to the
rise of rent, and the fall of profit.h (gEssay on the Influenceh)
Ricardofs policy to prevent a fall in profits had the following two points:
(1) improvements in agriculture (bringing down the value of grain through
increased productivity) and (2) importing grain at lower prices.
In other words, free trade for agricultural products. From this perspective,
Ricardo denounced the placing of restrictions on agricultural products.
gThere is no other way of keeping profits up but by keeping wages down.
In this view of the law of profits, it will at once be seen how important
it is that so essential a necessity as corn, which so powerfully affects
wages, should be at a low price; and how injurious it must be to the community
generally, that, by prohibitions against importation, we should be driven
to the cultivation of our poorer lands to feed our augmenting population.h
(gProtection to Agricultureh)
In this way, Ricardo frankly said that agricultural free trade was above
all in the interests of the industrial bourgeoisie, and he argued that
this would also promote the accumulation of capital, agree with the interests
of the workers by expanding the demand for labor, and thus harmonize with
the overall progress of society. At the same time, Ricardo openly said
that, gthe interest of the landlord is always opposed to the interest
of every other class in the communityh (Ibid) and that restrictions on
the agricultural imports would sacrifice the overall interests of society
to the interests of the landowning class.
Ricardo also rejected Malthusf vulgar theory of gfood securityh in the
following manner:
gIf we became a regularly importing country, and foreigners could confidently
rely on the demand of our market, much more land would be cultivated in
corn countries with a view to exportation. When we consider the value of
even a few weeks consumption of corn in England, no interruption could
be given to the export trade, if the continent supplied us with any considerable
quantity of corn, without the most extensively ruinous commercial distress?distress
which no sovereign, or combination of sovereigns, would be willing to inflict
on their people; and, if willing, it would be a measure to which probably
no people would submit.h [Ibid]
To illustrate this, Ricardo cites the example of Napoleonfs failure to
Russiafs crop exports. prevent the export of raw produce in Russia.
Moreover, whereas Malthus said that the flood of cheap produce through
free trade would destroy the agricultural capital that had already been
invested, Ricardo pointed out that this was as reactionary as opposing
the introduction of new machinery because it would destroy the value of
the old machinery. Such arguments amount to an opposition to the progress
and development of production, thereby exposing their own reactionary nature.
As we can see, much of the criticism Ricardo advanced against protectionism
remains convincing today. Still, his logic is marked by some confusion
and errors. Fundamentally, Ricardo does not venture beyond the boundaries
of bourgeois rationalism and liberalism. Workers, therefore, cannot absolutize
Ricardofs theory of free trade. We will examine this point later when
we introduce Marx and Engelsf evaluation of the Corn Laws, including their
views on Ricardofs famous theory of gcomparative costs.h
4. The Formation of the Anti-Corn Law League:
@|A Lavishly Funded campaign
From 1815, movements against the Corn Laws emerged in regions throughout
England, particularly during periods when the price of crops rose due to
poor harvests, and this was at times marked by popular riots. As a result,
the Tory government was forced to take a conciliatory approach, reforming
the laws in 1822 and shifting to a gsliding scaleh in 1828. However,
this was not the sort of simple problem in which the opposition could be
placated and contained by such cosmetic reforms. Still, since the opposition
was initially dispersed regionally, the movement had little success.
The turning point came in 1838, with the simultaneous occurrence of an
agricultural slump and industrial crisis. The crisis, which began in the
cotton mills, continued until 1842, and marked one of the worst depressions
in the 19th century. At the same time, due to a lean harvest, the price
for a quarter of corn, which had been 40 shillings in 1835, rose to 65
shillings in 1838 and 70 shillings the following year. This situation,
in which widespread unemployment was aggravated by the rise in the price
of corn, sparked the rapid growth of the movement against the Corn Laws.
In the spring of 1839 a group was formed to unite all of the organizations
throughout the country that were opposed to the Corn Laws, and this became
the Anti-Corn Laws League. The founders and leaders of the League were
Richard Cobden and Joe Bright, who were cotton-spinning industrialists
Manchester, which was the heart of the textile industry. The two men complained
that the soaring price of grain had resulted in 20 million pounds being
shifted away from the purchase of clothing to the purchase of food.
In his book, Manchesutaa ha keizai shiso kenkyu [A Study of the Economic Thought of the Manchester School], Kumagai Jiro
writes:
gThe cotton-spinners of Manchester thought that this sort of rise in grain
prices from the poor harvest and decrease in the demand for clothing items
would not have occurred, or would have occurred in a milder form, had the
free importation of grain been allowed, and that the limitation of foreign
grain imports shrank Englandfs overseas markets because the countries
that were unable to freely sell grain to England had less power to purchase
English goods, and that this would also result in a rise in manufacturing
in foreign countries, thereby fostering rivals to English industry. Amidst
this serious economic depression and poor harvests, the argument that the
Corn Laws limiting the free importation of grain were the primary factor
impeding the prosperity of manufacturing, gained momentum and were more
strongly propagated, centering in Manchester, and this developed into the
movement against the Corn Laws mentioned above.h (p. 7)
Having achieved a nationwide organization and leadership, the bourgeoisie
opened a general attack against the Corn Laws, which they called gthe
great tree of Monopoly.h The bourgeoisie raised gfree tradeh as the
new article of faith and generously financed the movement against the Corn
Laws. In 1843, the League amassed contributions of 50,000 pounds, and the
following year the enormous sum of 100,000 pounds was raised. Years later
Cobden confided the following in a letter:
gThe big capitalists formed the solid foundation of the anti-Corn Laws
movement. This was because they had unlimited financial resources. They
opened their purse strings, however, not simply for reasons of their own
financial interests, but because they were involved in a crisis that placed
their price as ea classf at riskh (1857 letter--translated from the
Japanese version)
With this wealth of resources, the league launched a huge campaign in which
it gstarted a subscription fund, founded a journal (the Anti-Bread-Tax
Circular), sent paid speakers from place to place and set in motion all
the means of agitation customary in England for achieving its aimh (Engels,
gHistory of Corn Lawsh). In terms of its scale, in 1843 alone, over nine
million copies of various pamphlets were issued, and 650 public meetings
were held throughout the country. And the method of agitation was full
of wit.
gAt the public meetings, the speakers of Anti-Corn Laws League would show
three loafs of bread of different sizes that cost the same price in three
countries: France, England, and Russia. England was the country with the
smallest loaf, which thus meant that the English people were the most deprived.h
(Andre Maurois, Histoire DfAngleterre?translated from French by R.W.)
Incidentally, although political campaigns with large-scale literature
distribution and public meetings are taken for granted today, they were
a new phenomenon at the time. The movement of the Anti-Corn Laws League
established a new style of political struggle and can thus be considered
groundbreaking.
With the reform of the election law of 1832, the bourgeoisie were able
to establish a certain footing within parliament, but the Tories, representing
the landowners, still boasted overwhelming power, and the Whigs, for their
part, didnft go beyond an enlightened standpoint of the old government.
For this reason, in order to achieve its goal of totally abolishing the
Corn Laws, it was necessary for the bourgeoisie to win the working class
over to its side, and bring the force of mass pressure to bear on the old
government.
From the beginning, Cobden and Bright strove to bring the working masses
into their camp, but the year prior to the formation of the Anti-Corn Laws
League in 1837, almost as if on cue, the Chartist movement emerged as the
first independent political movement of the working class in the world.
For this reason, the efforts of Cobden and Bright to win over the working
class placed the emphasis on approaching the Chartist movement, and we
will look at this in the next section.
5. Piper Plays the Tune, but the Workers Don't Dance:
@|Catching on to the Deceit of the Anti-Corn Laws League
Since the bourgeoisie was compelled to involve the working class in the
movement against the Corn Laws it was necessary for them to demonstrate
the repeal of these laws was in the interest of the working class. This
meant, however, that Ricardofs schema demonstrating that gliberalization
of corn imports a lower prices of corn a decreased wages a increased profitsh
was not suitable, since it clearly showed that the repeal of the Corn Laws
ultimately served the interests of capital.
To respond to this, Cobden and others declared Ricardofs law of an inverse
relation between wages and profit a gfallacy,h and they struggled to
cover up this gAchilles heel in the propaganda of the Anti-Corn Laws League.
They proposed a new schema to replace that of Ricardo, wherein: gliberalization
of corn imports a increase demand for English manufactured goods abroad
a rise in commodity prices and increased profits a increase in demand for
labor a increase in wages.h (Incidentally, the landowning class appropriated
Ricardofs schema to try to convince workers of the meaningless of repealing
the Corn Laws.)
The new schema was based on the gtheory of supply and demandh of Adam
Smith, which Marx called a vulgar theory, but gby dint of repeating this
theory day after day and year after year the official representatives of
the League, shallow economists as they were, could at last come out with
the astounding assertion that wages rose and fell in inverse ratio, not
with profits, but with the price of food; that dear bread meant low wages
and cheap bread high wages.h (Engels, gThe Wages Theory of the Anti-Corn
Law Leagueh)
In this way, the Anti-Corn Law League, based on what was later called the
Manchester School of (vulgar) economics, made it seem as if the repeal
of the Corn Law was solely in the interests of the working class, and attempted
to draw in the Chartist movement. However, the workers did not go along
with the deceptive call of the bourgeoisie. This is because although Chartism
brought to the forefront the demand for universal suffrage included in
the gsix pointsh (secret ballots, payment for MPs, etc.), this was not
simply a movement demanding political democracy, but was gof essentially
social characterh (Engels). That is, for the working class the real task
involved so-called gknife and fork question.h
In its initial stages, the Chartist movement mingled with the radical bourgeoisie,
who, in line with the Anti-Corn Laws League, tried to make the repeal of
the Corn Laws and struggle for free trade the main tasks of the movement.
But, as Engels wrote:
gThe Chartist working-men, on the contrary, espoused with redoubled zeal
all the struggles of the proletariat against the bourgeoisie. Free competition
has caused the workers suffering enough to be hated by them; its apostles,
the bourgeoisie, are their declared enemies. The working-man has only disadvantages
to await from the complete freedom of competition. The demands hitherto
made by him, the Ten Hoursf Bill, protection of the workers against the
capitalist, good wages, a guaranteed position, repeal of the New Poor Law,
all of the things which belong to Chartism quite as essentially as the
eSix Points,f are directly opposed to free competition and Free Trade.
No wonder, then, that the working-men will not hear of Free Trade and the
repeal of the Corn Laws (a fact incomprehensible to the whole English bourgeoisie),
and while at least wholly indifferent to the Corn Law question, are most
deeply embittered against its advocates. This question is precisely the
point at which the proletariat separates from the bourgeoisie, Chartism
from Radicalism; and the bourgeois understanding cannot comprehend this,
because it cannot comprehend the proletariat.h (Condition of the Working Class in England)
Of course this does not mean that workers are opposed to the repeal of
the Corn Laws and free trade or that this would be justified. Rather, to
borrow the words of Engels in latter years, spoke of the gChartist opposition
not to Free Trade but to the transformation of Free Trade into the one
vital national question.h (gEngland in 1845 and 1885,h MECW vol. 26, p. 297) Engels argued that it was correct to not bury the independent
class struggles of the workers against capital beneath the anti-Corn Law
movement of the bourgeoisie. Even though workers do not oppose free trade
in general, this does not mean that they actively support the movement
of the liberal bourgeoisie, becoming its appendage or tail. This was the
consistent view of Marx and Engels and we will look at this in more detail
later.
In the midst of these developments, the Prime Minister Peel (Tory Party)
attempted to ride out the situation by partially reforming the Corn Laws
in 1841. Encouraged by this, the bourgeoisie employed deceitful tactics
to encourage workers to riot the following year, but this did not turn
out well for them.
gOn this point the Anti-Corn Laws League miscalculated. The masses who
were driven to riot by the league, which hoped to force the repeal of the
corn laws, was not thinking at all about the Corn Laws. The masses were
seeking 1840 wages (a return to pre-depression wage levels) and the Peoplefs
Charter. When the league became aware of this, their former friends became
their enemies. The members of the league swore allegience to the special
police, and in for the sake of suppressing the riots they aided the government
to which they were hostile by organizing a special militia.h (Kumagai
Jiro, A Study of the Economic Thought of the Manchester School)
With this incident the conflict between the Chartist and the Anti-Corn
Law League became decisive. And the attempt by the bourgeoisie to win over
the workers ended in failure.
6. The Corn Laws are Ultimately Abolished:
|Victory of the Industrial Capitalists over the
Rural Aristocracy
In the last section we saw how the riots of 1842 marked the parting of
the ways between the Anti-Corn Laws League and the Chartist movement. The
League, which had earned the hatred of the workers, even became unable
to hold public meetings in factory districts. For this reason they were
forced to focus their efforts mainly on agricultural regions and claimed
gtheir only achievementh as gfreeing tenant farmers from the spiritual
influence of the landed aristocracy.h
gUp to now, no one has been so indifferent to political issues as the
English tenant farmers, i.e., the entire agricultural section of the nation.
As a matter of course, the landlord was a Tory and evicted every tenant
who voted against the Tories at the parliamentary elections. The result
was that the 252 Members of Parliament which the agricultural districts
in the United Kingdom have to elect were, as a rule, almost all Tories.
Now, however, due to the effect of the Corn Laws and the publications of
the League, distributed in hundreds of thousands of copies, the tenant
farmer has been awakened to political consciousness. He has realized that
his interests are not identical with those of the landlord, but are directly
opposed to them, and that to no one have the Corn Laws been more unfavorable
than to himself. Hence a considerable change has taken place among tenant
farmers. The majority of them are now Whigsh (Engels, gThe Corn Lawsh)
Due to the bountiful harvests from 1842 and the following year, there was
a temporary lull in the situation. The critical moment came in 1845. That
year marked a state of collapse, with a huge drop in English grain production
due to heavy rain and the outbreak of a potato blight in Ireland. For these
reasons, England was forced to import a large amount of grain. Ireland,
for its part, was struck by horrible devastation, with mass starvation
and large-scale migration to the United States, resulting in a halving
of the population of 4 million.
Voices demanding for the gliberalization of corn importsh spread and
the Anti-Corn Law League pressed the government for the immediate enactment
of this. Given this situation, Prime Minister Peel decided in October 1845
to repeal of the Corn Laws, and the laws were repealed by parliament in
June of the following year, thereby finally brining the Corn Laws to an
end.
After some provisional measures, starting in 1849 English grain imports
became subject to a nominal tariff, while the tariffs on some 1,150 products
was removed. In 1849, the Navigation Acts, the other great pillar of mercantilism
along with the Corn Laws, were repealed. The repeal of the Corn Laws thus
marked the shift in England to a system of free trade.
The fierce struggle centering on the Corn Laws between the landowners and
industrial bourgeoisie, since the time of the debate between Malthus and
Ricardo thus ended with the victory of the industrial bourgeoisie. And
this gwas the victory of the manufacturing capitalists not only over the
landed aristocracy, but over those sections of capitalists too whose interests
were more or less bound up with the landed interest: bankers, stock-jobbers,
fundholders, etc.h (gEngland in 1845 and 1885,h p. 296).
The fundamental cause leading to the victory of the industrial bourgeoisie
in this class conflict spanning a quarter of a century was, needless to
say, the rapid development of capitalism since the industrial revolution
and the increased power of the industrial bourgeoisie. The reform of the
election law in 1832 was the first victory of the ascending bourgeoisie,
and already at this point no power could stem this historical current.
Indeed, the fact that a government led by the Tory party, the stronghold
of the landowning class, was compelled to take the decisive action in repealing
the Corn Laws eloquently speaks to this. As we have already seen, with
the tenant farmers moving to the side of the Whigs, the base of support
for the Tories was shaken and splits within the party were aggravated.
And the party leader Peel himself, although a dyed-in-the-wool Tory, had
class origins belonging to the industrial bourgeoisie (his father a great
weaver in Lancaster). He openly said that gthe prosperity of agriculture
restricts the prosperity of industry, and that more than the Corn Laws,
agriculture depends on the prosperity of industry,h (A Study of the Economic Thought of the Manchester School), and he was certain that agriculture (landowners) had no future without
adapting to the rule of capital.
For this reason, members of the Tory old-guard, such as Disraeli, warned
of gbetrayalh from Peel, and true to their fears Peel allied with the
Whigs with the aim of pushing through the parliament the repeal of the
Corn Laws. Immediately following this, the old-guard=landowners joined
the Whigs to topple the Peel government, and the following year, in 1847,
established legislation for a 10-hour workday in the face of opposition
from the bourgeoisie, thereby enacting grevengeh on them for the repeal
of the Corn Laws, even thought they already had no hope of restoring these
laws.
The significance of the repeal of the Corn Laws was of course not simply
limited to the liberalization of imports. This was also the penetration
of free trade and free competition, the free development of capitalism,
and the removal of all barriers to these objectives, which resulted in
a transformation of the entire social system. This symbolized the ultimate
victory of the industrial bourgeoisie over the landed aristocracy, and
the fact that they had risen to become the ruling class in both name and
reality. Indeed, Engels pointed out that capital declared itself the ultimate
power in England, and herein lies the historical significance of the repeal
of the Corn Laws.
7. Free Trade or Protectionism?
|Fundamental Perspective of Marx and Engels
In this section I would like to introduce the views of Marx and Engels
on the English Corn Laws and questions generally concerning the choice
between free trade and protectionism.
As we have seen from various sources quoted already, from the early 1840s
up until the end of their lives, Marx and Engels dealt with this topic
on a number of occasions which addressed each important issue. In this
short paper, however, I wonft be able to introduce all of these writings,
and will instead mainly look at Marxfs famous gLectures on the Question
of Free Tradeh and Engelsf preface to the American edition of gOn Taxes
and Free Trade,h which deal with this topic in a comprehensive way.
In the final chapter of his early work gA Characterization of Economic
Romanticism,h Lenin looks at Marxfs gSpeech on the Question of Free
Tradeh and contrasts the approach of Marxists to this problem with that
of petty-bourgeois romanticists, making it an excellent source for deepening
the understanding of Marxfs view. Lenin deals with the views of Sismondi
and the Narodniks, but the views they express are the same sort of reactionary
romanticism seen today in the standpoint of the JCP. For this reason, this
work of Leninfs is even more interesting to us and I would like to introduce
this work later as well.
We need to begin by first grasping the angle from which Marx and Engels
raised this issue, how the discussed it, and their most fundamental standpoint.
In his preface to Marxfs lecture, Engels traces the changes in policy
in Europe and North America regarding this issue in the forty years following
the repeal of the English Corn Laws, and characterizes the new tendencies
in the following way:
gThe question of Free Trade or Protection moves entirely within the bounds
of the present system of capitalist production, and has, therefore, no
direct interest for us socialists who want to do away with that system.
Indirectly, however, it interests us inasmuch as we must desire as the
present system of production to develop and expand as freely and as quickly
as possible: because along with it will develop also those economic phenomena
which are its necessary consequences, and which must destroy the whole
system: misery of the great mass of the people, in consequence of overproduction.
This overproduction engendering either periodical gluts and revulsions,
accompanied by panic, or else a chronic stagnation of trade; division of
society into a small class of large capitalist, and a large one of practically
hereditary wage-slaves, proletarians, who, while their numbers increase
constantly, are at the same time constantly being superseded by new labor-saving
machinery; in short, society brought to a deadlock, out of which there
is no escaping but by a complete remodeling of the economic structure which
forms it basis. From this point of view, 40 years ago Marx pronounced,
in principle, in favor of Free Trade as the more progressive plan, and
therefore the plan which would soonest bring capitalist society to that
deadlock.h (gProtection and Free Trade,h MECW vol. 26, p. 535)
This is the unchanging, fundamental perspective from which Marx and Engels
discussed this question. Engels said that this problem was of gindirect
interesth for the working class, but not of gdirect interest,h because
the choice of gfree trade or protectionismh is a problem that gmoves
entirely within the bounds of the present system of capitalist productionh
That is, the choice between free trade or protectionism is determined by
the particular development stage of capitalism in the country involved,
as well as the global development of capitalism, and in either case amounts
to nothing more than a method or policy implemented by the bourgeoisie
of a country for the sake of expanding production and markets in a manner
that best suits its own interests, in line with the particular conditions
and power relations of the time. In this sense, there is no difference
between the two. At any rate, the implementation of either policy depends
on the class interests of capital, and to this extent even though the choice
between free trade or protectionism is a vital question that impacts the
interests of the bourgeoisie, the same is not true in the case of the working
class.
At the same time, however, Engels emphasizes that this question is not
a matter of indifference to the working class. He says this is because
this issue has a large impact on the development of capitalist production
and consequently on the development of the contradictions particular to
it as well, and because the emancipation of the workers through the fundamental
transformation of capitalism?which is the gdirect issue of concernh for
the working class?and the gfateh of capitalism, depends on the development
of productive power under capitalistic production and the intensification
of its inherent contradictions, and on the concomitant development of the
class struggle. Therefore, in examining gthe question of free trade or
protectionism,h the working class must adopt this perspective of evaluating
the issue in terms of the effect on the development of capitalistic production,
and the promotion of the class struggles of the workers against capital.
Herein lies the consistent and fundamental standpoint of Marx and Engels
regarding this question.
8. Protectionism is Already Reactionary:
@|Marx's Criticism of Protectionism
In September 1847, a gFree Trade Congressh was held in Brussels that
brought together scholars, politicians, and industrialists from throughout
Europe. The conference was held because the English bourgeoisie, which
had won the repeal of the Corn Laws the previous year, was calling for
the opening of European markets to English manufactured goods in return
for having opened the English market to foreign grain, and this was one
link in the gstrategic maneuversh (Engels) of the free trade movement
they were advancing.
At the congress, the question of whether free trade is in the interests
of the world (and in particular the interests of the working class) was
debated by the participants from each country over a period of three days.
Marxfs name was also on the list of presenters at the congress, but fearing
his damning criticism, the advocates of free trade brought the conference
to an end before he had a chance to speak. The conference closed
with the adoption of a declaration stating that gFree Trade is extremely
beneficial to the working people, and will free them from all misery and
distress.h
For this reason, Marx gave the speech he was planning to present at this
congress at the Democratic Association of Brussels in January of the following
year. The Democratic Association of Brussels was an international organization
of revolutionary democrats mainly composed of German exiles and Marx was
one of the vice-chairmen.
In his speech, Marx was mainly compelled to criticize free trade since
it was the object of such ridiculous fantasies at the time, but his brief,
simple references to protectionism brilliantly unearth its essential nature
they grasp its essential nature (This criticism is not contained in Marxfs
gSpeech,h but rather in the draft for the speech entitled gThe Protectionists,
the Free-Traders, and the Working Class,h and also appears in a speech
by Marx that is included in Engelsf gThe Free Trade Conference at Brussels,h
and the citations below come from these works.)
Marx looks at the example of Germany in his criticism of protectionism,
but he also says that there are two currents of protectionism, and he distinguishes
between the two.
The first current involves the bourgeoisie who base themselves on the ideologue
List, which Marx characterizes in the following way:
gThe protectionists never protected small industry, handicraft propercwhen
they demanded protective tariffs they did so only in order to oust handicraft
production with machines and patriarchal industry with modern industry.
In a word, they wish to extend the dominion of the bourgeoisie, and in
particular of the big industrial capitalists. They went so far as to proclaim
aloud the decline and fall of small industry and the petty bourgeoisie,
of small farming and the small peasants, as a sad but inevitable and, as
far as the industrial development of Germany is concerned, necessary occurrence.
(gThe Protectionists, the Free-Traders, and the Working Classh)
The other protectionist current was composed of the petty bourgeoisie.
This current said that gin Listfs system the welfare of the working class
is only a sham and a pretence,h Marx characterized this tendency as follows:
gThe second school of protectionists, required not only protection, but
absolute prohibition. They proposed to protect manual labour against the
invasion of machinery, as well as against foreign competition. They proposed
to protect by high duties, not only home manufactures, but also home agriculture,
and the production of raw materials at home.h (gSpeech of Dr. Marx on
Protection, Free Trade, and the Working Classes,h in Engelsf gThe Free
Trade Conference at Brusselsh)
As we can see, the views of this second tendency are the sort of thoroughgoing
protectionism that the JCP is calling for and is the inevitable outcome
of this sort of logic.
Marx said that ultimately the conclusions of this tendency lead to gnot
merely preventing the entry of foreign industrial products, but also hindering
the progress of national industryh (Ibid) and after referring to this
sort of closed-nation policy as an gillusionh he returns to the criticism
of the first school of protectionism.
After sarcastically pointing out that although this first schoolfs view
that git is better to be exploited by onefs fellow-countrymen than by
foreignersh is gindeed very patriotic,h for the workers gis little
too ascetic and spiritualh for the workers, Marx adds that: for
people whose only occupation consists in the production of riches, of material
wealth.h
gBut the protectionists will say: eSo when all is said and done we at
least preserve the present state of society. Good or bad, we guarantee
the laborer work for his hands, and prevent his being thrown on to the
street by foreign competition.f I shall not dispute this statement, I
accept it. The preservation, the conservation of the present state of affairs
is accordingly the best result the protectionists can achieve in the most
favorable circumstances. Good, but the problem for the working class is
not to preserve the present state of affairs, but to transform it into
its opposite.h (gThe Protectionists, the Free-Traders, and the Working
Classh)
Marx then draws the following conclusion:
gFrom the moment the protectionists concede that social reforms have no
place in their system and are not a result of it, and that they form a
special question ? from this moment on they have already abandoned the
social question.h (Ibid)
The perspective from which Marx criticizes protectionism is clear. This
is the same fundamental perspective of Marx and Engels that we examined
in the last section on the question of gfree trade or protectionism.h
In other words, Marx develops his criticism on the criterion of whether
or not the development of capitalism and the class struggle is advanced,
thereby hastening the social revolution closer.
In the section on primitive accumulation in Capital, Marx provides us with a historical definition of the gsystem of protectionh
as being gan artificial means of manufacturing manufacturers, of expropriating
independent laborers, of capitalizing the national means of production
and subsistence, of forcibly abbreviating the transition from the medieval
to the modern mode of production.h
While recognizing that the protectionist system in German at the time (1847)
only played a partial role (the German Tariff Union centering on Prussia
that was created in Prussia in 1834 still existed), Marx declared that,
in line with the global developmental stage of capitalism, this protectionist
system had already generally become conservative and reactionary and that
workers could not support it principally.
9. Exposing the Hypocrisy of Free Trade Advocates:
|Marx's Speech on Free Trade (1)
gThe Repeal of the Corn Laws in England is the greatest triumph of free
trade in the 19th century.h (This and subsequent citations are taken from
gOn the Question of Free Tradeh)
This is how Marx began a speech on the question of free trade that he delivered
to the Democratic Association of Brussels at a public meeting in January
1948. While thus recognizing the historical significance of the repeal
of the Corn Laws, Marx thoroughly exposed the hypocrisy of the dogma spouted
by the Anti-Corn Law League and other advocates of free trade in order
to win the support of workers--such as the idea that the repeal of the
Corn laws and free trade would be in the workersf interest because it
would lead to cheap food and high wages--and he clarified the influence
that free trade would have on the situation of the working class
Marx says that no workers could trust the bourgeoisie, since gon the one
hand, they nibble at the wages of the worker in the pettiest way, by means
of factory regulationsh while on the other hand they claim to be gundertaking
the greatest sacrifices to raise those wages again by means of the Anti-Corn
Law League.h Marx adds that:
gThe English workers have very well understood the significance of the
struggle between the landlords and the industrial capitalists. They know
very well that the price of bread was to be reduced in order to reduce
wages, and that industrial profit would rise by as much as rent fell.h
Marx then mentions what was said by one worker at a meeting of the Anti-Corn
Law League as an example of the hostility of the working class towards
the bourgeoisie:
gIf the landlords were to sell our bones, you manufacturers would be the
first to buy them in order to put them through a steam-mill and make flour
of them.h
As we have already seen, the League relegated to the background Ricardofs
view of the antagonism between wages and profit, which they replaced with
a different gargument,h which Marx, speaking for the geconomists,h
sums up in the following way:
gWell, we admit that competition among the workers, which will certainly
not have diminished under free trade, will very soon bring wages into harm,
only with the low price of commodities. But, on the other hand, the
low price of commodities will increase consumption, the larger consumption
will require increased production, which will be followed by a larger demand
for hands, and this larger demand for hands will be followed by a rise
in wages.h
In response to this, Marx offers the following criticism. The passage is
quite long, but since this is a view that is important for our understanding
of the workers movement in general I will quote it in its entirety:
gThe whole line of argument amounts to this: Free trade increases productive
forces. If industry keeps growing, if wealth, if the productive power,
if, in a word, productive capital increases, the demand for labor, the
price of labor, and consequently the rate of wages, rise also.
gThe most favorable condition for the worker is the growth of capital.
This must be admitted. If capital remains stationary, industry will
not merely remain stationary but will decline, and in this case the worker
will be the first victim. He goes to the wall before the capitalist.
And in the case where capital keeps growing, in the circumstance which
we have said are the best for the worker, what will be his lot? He will
go to the wall just the same. The growth of productive capital implies
the accumulation and the concentration of capital. The centralization
of capital involves a greater division of labor and a greater use of machinery.
The greater division of labor destroys the especial skill of the laborer;
and by putting in the place of this skilled work labor which anybody can
perform, it increase competition among the workers.h
Marx then adds:
gThe growth of productive capital, which forces the industrial capitalists
to work with constantly increasing means, ruins the small industrialist
and throws them into the proletariatcFinally, the more productive capital
increases, the more it is compelled to produce for a market whose requirements
it does not know, the more production precedes consumption, the more supply
tries to force demand, and consumption crises increase in frequency and
in intensity. But every crisis in turn hastens the centralization of capital
and adds to the proletariat.h
Marx concludes that:
gThus, as productive capital grows, competition among the workers grows
in a far greater proportion. The reward of labor diminishes for all,
and the burden of labor increases for some.h
This is in fact the fate of the working class under capitalism. Even
supposing that the schema of the free traders according to which gthe
liberalization of the market a fall in prices a increase in consumption
a expanded production a increased demand for labor,h which is that this
is the gmost favorable condition for the worker,h this remains the fate
that of the workers. The hypocrisy of the arguments of the free-traders
should be clear.
Such views, however, are not the exclusive property of the free traders
of Marxfs time, but are rather still being repeated by bourgeois trade
unionists today. The view that workers must cooperate with management
for the sake of the expansion of production and prosperity of capital,
which will in turn lead to their own happiness, is basically the same as
the above schema of the free traders. A look at the situation facing
workers in Japan shows us where such ideas lead, and this is precisely
how Marx envisaged it occurring.
10. Why "Support in Principle":
|Marx's Speech on Free Trade (2)
Letfs examine further Marxfs speech on free trade.
Marx criticized another hypocritical argument peddled by the free traders,
which sought to gpalliateh the workers by telling them that although
it is true that the development of the division of labor and machinery
will displace many older male workers from factories in favor of unskilled
female and child workers, those that lose their jobs will probably find
others. Marx says that this gwhole doctrine of compensationh amounts
to the following:
gYou thousands of workers who are perishing, do not despair! You can die
with an easy conscience. Your class will not perish. It will always
be numerous enough for the capitalist class to decimate it without fear
of annihilating it. Besides, how could capital be usefully applied if it
did not take care always to keep up its exploitable material, i.e., the
workers, to exploit them over and over again?h (gOn the Question of Free
Tradeh)
In this way, Marx thoroughly exposed the hypocrisy of the advocates of
free trade who said that free trade would bring about a dramatic improvement
in the condition of the working class.
(In subsequent years Marx and Engels often heaped scorn on those who viewed
free trade as a cure-all, and in his 1864 gInaugural Address of the First
International,h Marx exposed the fact that, ultimately, this comes down
to the accumulation of wealth for capital at one pole, and the immiseration
of labor at the other pole. In his 1848 speech gOn the Question of Free
Trade, Marx makes it clear that law of capitalism in which gthe working
class will have maintained itself as a class after enduring any amount
of misery and misfortune, and after leaving many corpses upon the industrial
battlefield,h becomes increasingly certain with the realization of free
trade, and he concludes his speech as follows:
gTo sum up, what is free trade, what is free trade under the present condition
of society? It is freedom of capital. When you have overthrown the few
national barriers which still restrict the progress of capital, you will
merely have given it complete freedom of action. So long as you let the
relation of wage labor to capital exist, it does not matter how favorable
the conditions under which the exchange of commodities takes place, there
will always be a class which will exploit and a class which will be exploited.
It is really difficult to understand the claim of the free-traders who
imagine that the more advantageous application of capital will abolish
the antagonism between industrial capitalists and wage workers. On the
contrary, the only result will be that the antagonism of these two classes
will stand out still more clearly.h
Marx says that in the case of free trade and free competition, gfreedomh
means nothing more than the gfreedom of capital to crush the worker,h
and the idea that free trade and the international division of labor allows
geach country the production which is most in harmony with its natural
advantageh really amounts to calling gcosmopolitan exploitation universal brotherhood.h
Marx warns workers: gDo not allow yourselves to be deluded by the abstract word freedom! At the same time, Marx emphasizes that the repeal of the Corn Laws means
the elimination of those other elements that the bourgeoisie could blame
for the wretched condition of the working class so that the conflict between
capital and wage labor assumed a more pure and open form?and this precisely
is the significance of free trade according to Marx. And Marx underlines
this point, saying: gDo not imagine, gentlemen, that in criticizing freedom
of trade we have the least intention of defending the system of protection.h
He ends his speech with the following:
gMoreover, the protectionist system is nothing but a means of establishing
large-scale industry in any given country, that is to say, of making it
dependent upon the world market, and from the moment that dependence upon
the world market is established, there is already more or less dependence
upon free trade. Besides this, the protective system helps to develop free
trade competition within a country. Hence we see that in countries where
the bourgeoisie is beginning to make itself felt as a class, in Germany
for example, it makes great efforts to obtain protective duties. They serve
the bourgeoisie as weapons against feudalism and absolute government, as
a means for the concentration of its own powers and for the realization
of free trade within the same country.
gBut, in general, the protective system of our day is conservative, while
the free trade system is destructive. It breaks up old nationalities and
pushes the antagonism of the proletariat and the bourgeoisie to the extreme
point. In a word, the free trade system hastens the social revolution.
It is in this revolutionary sense alone, gentlemen, that I vote in favor
of free trade.h
As we have seen, Marx does not mechanically or absolutely juxtapose free
trade and protectionism, but rather grasps their reciprocal relationship
in a dialectical historical way, elucidating the fact that in the world-historical
stage of capitalism of the time, protectionism had already become gconservativeh
and free trade unavoidable, and it had become clear that with the development
of capitalism and emergence of enormous productive power, that free trade
would further propel the development of capitalism, foster the emergence
of enormous productive power and the contradictions particular to capitalism,
and intensify the class struggle. Marx indicates that the only possible
solution to these contradictions is social revolution, and expresses an
attitude of support to free trade only for this grevolutionaryh reason,
or to the words of Engels, because gfree trade is the natural, the normal
atmosphere for this historical evolution, the economic medium in which
the conditions for the inevitable social revolution will be the soonest
createdh (Engelsf 1888 preface to gOn the Question of Free Tradeh).
In the next section the significance of Marxfs approach to the question
of free trade will become clearer when we examine a work by Lenin that
contrasts this approach to that of Sismondi and the Narodniks.
11. Marxism and Romanticism:
|Lenin's View of the Corn Laws Issue (1)
In the last chapter of Leninfs book A Characterization of Economic Narodism, In which he criticizes the economic theories of the Narodniks who adhered
to the views of Sismondi (18th century petty-bourgeois Swiss economist
and creator of the theory of gunderconsumptionh), Lenin takes up the
issue of the Corn Laws and their repeal, and throws into bold relief the
fundamentally different approach of Marx and Sismondi concerning this gpractical
problemh that is also gone of the biggest, most fundamental problems
of capitalism.h
In the final two sections of this paper, I would like to introduce Leninfs
book, which clarifies the method and characteristics of the Marxist theory
concerning the issue of free trade..
In his work published in 1827, Nouveaux Principes dfEconomie Politique, Sismondi refers to the English Corn Laws. Lenin says that Sismondi, like
Marx, recognizes that the issue of the Corn Laws gwas by no means a specific
problem relating to tariff policy, but the general problem of Free Trade,
of free competition, of the edestiny of capitalism.fh (Lenin).
However, Sismondi goverlooks the general trend of capitalist development
in agriculture and the inevitable acceleration of this process with the repeal of the Corn Laws,h and equates the decline of the small
tenant farmer resulting from the liberalization of agricultural imports
with the general decline of agriculture in England. His argument is as
follows:
gWhat will become of the 540,000 families who will be denied work? Even
assuming that they will be fit for any kind of industrial work, is there,
at the present time, an industry capable of absorbing them?cCan a government
be found that will voluntarily subject half the nation it governs to such
a crisis?cWill those to whom the agriculturists are thus sacrificed benefit
by it to any extent? After all, these agriculturists are the nearest and
most reliable consumers of English manufactures. The cessation of their
consumption would strike industry a blow more fatal than the closing of
one of the biggest foreign marketsh
In this way, Sismondi notes his concern that the repeal of the Corn Laws
would lead to the gshrinking of the home market,h cries out about the
gdangersh of the system of capitalist agriculture and how it is gdangerous
to subordinate the whole of agriculture to a system of speculation,h gresorts
to every possible argument,h including gthe threatening competition of
Polish and Russian grainh and the theory of food security (worrying about
what would become of gEnglandfs honorh if the Emperor of Russia were
in a position to cut off grain exports to gain concessions), argues that
the repeal of the Corn Laws even harmed the interests of industrial capitalists,
calls the path being followed by the gEnglish fatherlandh a gwrong one,h
demands measures to graise the significance of the small farms,h and
emphasizes the importance of a self-sufficient lifestyle.
However, gwhen [Sismondi] dropped from his world of fantasy into the maelstrom
of real life and conflict of interests, he did not even have a criterion
of how concrete problems are to be solved,h and ultimately he is unable
to offer any real solution. Lenin characterizes the impotence of Sismondifs
gromanticismh in the following way:
gRecall how easily and simply romanticism gsolvedh all problems in gtheory"!
Protection is unwise, capitalism is a fatal blunder, the road England has
taken is wrong and dangerous, production must keep in step with consumption,
while industry and commerce must keep in step with agriculture, machines
are advantageous only when they lead to a rise in wages or to a reduction
of the working day, means of production should not be alienated from the
producer, exchange must not run ahead of production, must not lead to speculation,
and so on, and so forth. Romanticism countered every contradiction with
an appropriate sentimental phrase, answered every question with an appropriate
innocent wish, and called the sticking of these labels upon all the facts
of current life a gsolutionh to the problems.h
There is of course a big difference between the tenant farmers (capitalist
farmers) that predominated in England in Sismondifs time and the family
farmers prevalent in Japan today, but still it is striking how the views
of the JCP resemble those of Sismondi. If the followers of Sismondi in
Russia were the Narodniks, in contemporary Japan they are undoubtedly the
members of the JCP.
Like the Narodniks, the JCP opposes the liberalization of agricultural
imports because it would ruin the small-scale family, viewing this as equivalent
to the decline of agriculture in Japan in general. They declare that
the liberalization policies of the bourgeois government are gmistaken,h
mobilize every sort of argument, starting with the concept of gfood security,h
to support this position, shout so energetically about measures to protect
small farmers and achieve food self-sufficiency that they put Sismondi
to shame, and generally clamor for retrograde, reactionary policies that
ultimately would not salvage the workers or the even the farmers (and are
only intended to win the popularity of the latter). In terms of treating
these policies as some sort of arbitrary gchoiceh unrelated to the developmental
stage of capitalism and its real relations, the JCP are truly petty-bourgeois
romanticists. In short, the scornful criticism heaped on the Narodniks
can, in terms of its most fundamental points, also be directed against
the Japanese Communist Party.
12. The Core of the Marxist Method:
@ |Lenin's View of the Corn Laws Issue (2)
In examining Sismondifs views, Lenin draws from Marxfs gSpeech on Free
Trade,h and compares Sismondifs method to Marxfs approach to the problem.
Lenin first of all points out that Marxfs gvery presentation of the problem
is quite different from that of Sismondi.h The task Marx proposed was
gfirstly, to explain the attitude of the different classes of English
society towards the problem from the angle of their interests; and secondly,
to throw light on the significance of the reform in the general evolution
of the English social economy.h Unlike Sismondi, who abstractly posed
the problem in terms of what path England should choose, Lenin says that
Marx gforthwith presents the question on the basis of the present-day
social and economic systemh and asks himself gwhat must be the next step in the development of this system following the repeal of the Corn Laws?h
Marxfs response to the question he poses here is different from Sismondi,
in that he expected that the repeal of the Corn Laws would not lead to
the decline of English agriculture, but rather promote its capitalistic
development, and Lenin says that ghistory has confirmed his forecast.h
Lenin next points out that Marx, like Sismondi, also gadmits that the
ruination of the small farmers and the impoverishment of the workers in
industry and agriculture will be the inevitable consequences of Free Trade,h
so that it seems at first glance that Marx has slipped into the same ghopeless
dilemmah as Sismondi. In fact, however, this is not the case, and Lenin
stresses that it is here that gthe radical difference between the new
theory and romanticism begins.h That is: gThe romanticist turns from
the concrete problems of actual development to dreams, whereas the realist
takes the established facts as his criterion in definitely solving the
concrete problem.h
Lenin then provides a detailed examination of the passage of Marxfs speech
that we have already introduced concerning the influence that free trade
has on the development of capitalism and the conditions of the working
class, and after citing the conclusion that gFree Trade signifies nothing
but freedom for the development of capital,h he says that Marx, by means
of this sort of scientific analysis of capitalist reality, gwas able to
find a criterion for the solution of the problem.h
gThe criterion is the development of the productive forces. It was immediately
evident that the problem was treated from the historical angle: instead
of comparing capitalism with some abstract society as it should be (i.e.,
fundamentally with a utopia), the author compared it with the preceding
stages of social economy, compared the different stages of capitalism as
they successively replaced one another, and established the fact that the
productive forces of society develop thanks to the development of capitalism.
By applying scientific criticism to the arguments of the Free Traders he
was able to avoid the mistake usually made by the romanticists who, denying
that the arguments have any importance, gthrow out the baby with the bath
water"; he was able to pick out their sound kernel, i.e., the undoubted
fact of enormous technical progress.h
Here we have what can be called the core of Marxfs method of approaching
the question of free trade.gThe development of the productive forces of
society though the development of capitalismh--on the basis of this scientific
criterion, one can uncover, within the necessary historical process of
intensified capitalist contradictions, the development of the class struggle,
and the inescapable arrival of social revolution, fundamental solution
to the question of free trade.
Of course, Romanticists who lack this perspective (such as Sismondi, the
Narondiks, and JCP members) could only conclude, to borrow the words of
Lenin, that Marx had gopenly taken the side of big capital against the
small producerh and was nothing more than gan apologist of money power.h
They are utterly incapable of understanding that gto admit that big capital
is progressive as compared with small production, is very, very far from
being eapologeticsfh and that Marx gdescribed the contradictions that
accompany the development of big capital much more exactly, fully, straightforwardly
and frankly than the romanticists ever did.h Unlike the romanticists,
Marx gnever descended to uttering a single sentimental phrase bewailing
this developmenth and gnever uttered a word anywhere about a possibility
of ediversion from the path.fh -- Herein lies the decisive difference
between Marx and the romanticists.
Lenin ends this discussion by saying that, gthe above-mentioned fully
scientific criterion enabled [Marx] to solve this problem while remaining
a consistent realisth and he offers the following explanation of the concluding
party of Marxfs speech (already quoted in the section ten):
geDo not imagine, gentlemen,f said the speaker, ethat in criticizing
freedom of trade we have the least intention of defending the system of
protection.f And he went on to point out that under the contemporary system
of social economy both Free Trade and protection rested on the same basis,
briefly referred to the ebreaking-upf process of the old economic life
and of the old semi-patriarchal relationships in West-European countries
carried through by capitalism in England and on the Continent, and indicated
the social fact that under certain conditions Free Trade hastens this ebreak-up.f
And he concluded with the words: gIt is in this sense alone, gentlemen,
that I vote in favor of Free Trade.h
In this series of twelve articles, we have traced the history of the English
Corn Laws and considered the standpoint of workers towards protectionism
and free trade. It is clear that workers cannot generally support
protectionism, but on the other hand, even though workers support free
trade in principle, this does not mean that workers must tail after the
economic liberalization and rationalization of the bourgeoisie. In
order to avoid slipping into this tendency or deviation, it is essentially
to have a solid understanding of the Marxist perspective on the issue of
free trade.
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