III: The Alliance Between Mob and Capital
WHEN IMPERIALISM entered the scene of politics with the scramble for Africa in the eighties, it was promoted by businessmen, opposed fiercely by the governments in power, and welcomed by a surprisingly large section of the educated classes.40 To the last it seemed to be God-sent, a cure for all evils, an easy panacea for all conflicts. And it is true that imperialism in a sense did not disappoint these hopes. It gave a new lease on life to political and social structures which were quite obviously threatened by new social and political forces and which, under other circumstances, without the interference of imperialist developments, would hardly have needed two world wars to disappear.
As matters stood, imperialism spirited away all troubles and produced that deceptive feeling of security, so universal in pre-war Europe, which deceived all but the most sensitive minds. Péguy in France and Chesterton in England knew instinctively that they lived in a world of hollow pretense and that its stability was the greatest pretense of all. Until everything began to crumble, the stability of obviously outdated political structures was a fact, and their stubborn unconcerned longevity seemed to give the lie to those who felt the ground tremble under their feet. The solution of the riddle was imperialism. The answer to the fateful question: why did the European comity of nations allow this evil to spread until everything was destroyed, the good as well as the bad, is that all governments knew very well that their countries were secretly disintegrating, that the body politic was being destroyed from within, and that they lived on borrowed time.
Innocently enough, expansion appeared first as the outlet for excess capital production and offered a remedy, capital export.41 The tremendously increased wealth produced by capitalist production under a social system based on maldistribution had resulted in “oversaving”—that is, the accumulation of capital which was condemned to idleness within the existing national capacity for production and consumption. This money was actually superfluous, needed by nobody though owned by a growing class of somebodies. The ensuing crises and depressions during the decades preceding the era of imperialism42 had impressed upon the capitalists the thought that their whole economic system of production depended upon a supply and demand that from now on must come from “outside of capitalist society.”43 Such supply and demand came from inside the nation, so long as the capitalist system did not control all its classes together with its entire productive capacity. When capitalism had pervaded the entire economic structure and all social strata had come into the orbit of its production and consumption system, capitalists clearly had to decide either to see the whole system collapse or to find new markets, that is, to penetrate new countries which were not yet subject to capitalism and therefore could provide a new noncapitalistic supply and demand.
The decisive point about the depressions of the sixties and seventies, which initiated the era of imperialism, was that they forced the bourgeoisie to realize for the first time that the original sin of simple robbery, which centuries ago had made possible the “original accumulation of capital” (Marx) and had started all further accumulation, had eventually to be repeated lest the motor of accumulation suddenly die down.44 In the face of this danger, which threatened not only the bourgeoisie but the whole nation with a catastrophic breakdown in production, capitalist producers understood that the forms and laws of their production system “from the beginning had been calculated for the whole earth.”45
The first reaction to the saturated home market, lack of raw materials, and growing crises, was export of capital. The owners of superfluous wealth first tried foreign investment without expansion and without political control, which resulted in an unparalleled orgy of swindles, financial scandals, and stock-market speculation, all the more alarming since foreign investments grew much more rapidly than domestic ones.46 Big money resulting from oversaving paved the way for little money, the product of the little fellow’s work. Domestic enterprises, in order to keep pace with high profits from foreign investment, turned likewise to fraudulent methods and attracted an increasing number of people who, in the hope of miraculous returns, threw their money out of the window. The Panama scandal in France, the Gründungsschwindel in Germany and Austria, became classic examples. Tremendous losses resulted from the promises of tremendous profits. The owners of little money lost so much so quickly that the owners of superfluous big capital soon saw themselves left alone in what was, in a sense, a battlefield. Having failed to change the whole society into a community of gamblers they were again superfluous, excluded from the normal process of production to which, after some turmoil, all other classes returned quietly, if somewhat impoverished and embittered.47
Export of money and foreign investment as such are not imperialism and do not necessarily lead to expansion as a political device. As long as the owners of superfluous capital were content with investing “large portions of their property in foreign lands,” even if this tendency ran “counter to all past traditions of nationalism,”48 they merely confirmed their alienation from the national body on which they were parasites anyway. Only when they demanded government protection of their investments (after the initial stage of swindle had opened their eyes to the possible use of politics against the risks of gambling) did they re-enter the life of the nation. In this appeal, however, they followed the established tradition of bourgeois society, always to consider political institutions exclusively as an instrument for the protection of individual property.49 Only the fortunate coincidence of the rise of a new class of property holders and the industrial revolution had made the bourgeoisie producers and stimulators of production. As long as it fulfilled this basic function in modern society, which is essentially a community of producers, its wealth had an important function for the nation as a whole. The owners of superfluous capital were the first section of the class to want profits without fulfilling some real social function—even if it was the function of an exploiting producer—and whom, consequently, no police could ever have saved from the wrath of the people.
Expansion then was an escape not only for superfluous capital. More important, it protected its owners against the menacing prospect of remaining entirely superfluous and parasitical. It saved the bourgeoisie from the consequences of maldistribution and revitalized its concept of ownership at a time when wealth could no longer be used as a factor in production within the national framework and had come into conflict with the production ideal of the community as a whole.
Older than the superfluous wealth was another by-product of capitalist production: the human debris that every crisis, following invariably upon each period of industrial growth, eliminated permanently from producing society. Men who had become permanently idle were as superfluous to the community as the owners of superfluous wealth. That they were an actual menace to society had been recognized throughout the nineteenth century and their export had helped to populate the dominions of Canada and Australia as well as the United States. The new fact in the imperialist era is that these two superfluous forces, superfluous capital and superfluous working power, joined hands and left the country together. The concept of expansion, the export of government power and annexation of every territory in which nationals had invested either their wealth or their work, seemed the only alternative to increasing losses in wealth and population. Imperialism and its idea of unlimited expansion seemed to offer a permanent remedy for a permanent evil.50
Ironically enough, the first country in which superfluous wealth and superfluous men were brought together was itself becoming superfluous. South Africa had been in British possession since the beginning of the century because it assured the maritime road to India. The opening of the Suez Canal, however, and the subsequent administrative conquest of Egypt, lessened considerably the importance of the old trade station on the Cape. The British would, in all probability, have withdrawn from Africa just as all European nations had done whenever their possessions and trade interests in India were liquidated.
The p
articular irony and, in a sense, symbolical circumstance in the unexpected development of South Africa into the “culture-bed of Imperialism”51 lies in the very nature of its sudden attractiveness when it had lost all value for the Empire proper: diamond fields were discovered in the seventies and large gold mines in the eighties. The new desire for profit-at-any-price converged for the first time with the old fortune hunt. Prospectors, adventurers, and the scum of the big cities emigrated to the Dark Continent along with capital from industrially developed countries. From now on, the mob, begotten by the monstrous accumulation of capital, accompanied its begetter on those voyages of discovery where nothing was discovered but new possibilities for investment. The owners of superfluous wealth were the only men who could use the superfluous men who came from the four corners of the earth. Together they established the first paradise of parasites whose lifeblood was gold. Imperialism, the product of superfluous money and superfluous men, began its startling career by producing the most superfluous and unreal goods.
It may still be doubtful whether the panacea of expansion would have become so great a temptation for non-imperialists if it had offered its dangerous solutions only for those superfluous forces which, in any case, were already outside the nation’s body corporate. The complicity of all parliamentary parties in imperialist programs is a matter of record. The history of the British Labor Party in this respect is an almost unbroken chain of justifications of Cecil Rhodes’ early prediction: “The workmen find that although the Americans are exceedingly fond of them, and are just now exchanging the most brotherly sentiments with them yet are shutting out their goods. The workmen also find that Russia, France and Germany locally are doing the same, and the workmen see that if they do not look out they will have no place in the world to trade at all. And so the workmen have become Imperialist and the Liberal Party are following.”52 In Germany, the liberals (and not the Conservative Party) were the actual promoters of that famous naval policy which contributed so heavily to the outbreak of the first World War.53 The Socialist Party wavered between active support of the imperialist naval policy (it repeatedly voted funds for the building of a German navy after 1906) and complete neglect of all questions of foreign policy. Occasional warnings against the Lumpenproletariat, and the possible bribing of sections of the working class with crumbs from the imperialist table, did not lead to a deeper understanding of the great appeal which the imperialist programs had to the rank and file of the party. In Marxist terms the new phenomenon of an alliance between mob and capital seemed so unnatural, so obviously in conflict with the doctrine of class struggle, that the actual dangers of the imperialist attempt—to divide mankind into master races and slave races, into higher and lower breeds, into colored peoples and white men, all of which were attempts to unify the people on the basis of the mob—were completely overlooked. Even the breakdown of international solidarity at the outbreak of the first World War did not disturb the complacency of the socialists and their faith in the proletariat as such. Socialists were still probing the economic laws of imperialism when imperialists had long since stopped obeying them, when in overseas countries these laws had been sacrificed to the “imperial factor” or to the “race factor,” and when only a few elderly gentlemen in high finance still believed in the inalienable rights of the profit rate.
The curious weakness of popular opposition to imperialism, the numerous inconsistencies and outright broken promises of liberal statesmen, frequently ascribed to opportunism or bribery, have other and deeper causes. Neither opportunism nor bribery could have persuaded a man like Gladstone to break his promise, as the leader of the Liberal Party, to evacuate Egypt when he became Prime Minister. Half consciously and hardly articulately, these men shared with the people the conviction that the national body itself was so deeply split into classes, that class struggle was so universal a characteristic of modern political life, that the very cohesion of the nation was jeopardized. Expansion again appeared as a lifesaver, if and insofar as it could provide a common interest for the nation as a whole, and it is mainly for this reason that imperialists were allowed to become “parasites upon patriotism.”54
Partly, of course, such hopes still belonged with the old vicious practice of “healing” domestic conflicts with foreign adventures. The difference, however, is marked. Adventures are by their very nature limited in time and space; they may succeed temporarily in overcoming conflicts, although as a rule they fail and tend rather to sharpen them. From the very beginning the imperialist adventure of expansion appeared to be an eternal solution, because expansion was conceived as unlimited. Furthermore, imperialism was not an adventure in the usual sense, because it depended less on nationalist slogans than on the seemingly solid basis of economic interests. In a society of clashing interests, where the common good was identified with the sum total of individual interests, expansion as such appeared to be a possible common interest of the nation as a whole. Since the owning and dominant classes had convinced everybody that economic interest and the passion for ownership are a sound basis for the body politic, even nonimperialist statesmen were easily persuaded to yield when a common economic interest appeared on the horizon.
These then are the reasons why nationalism developed so clear a tendency toward imperialism, the inner contradiction of the two principles notwithstanding.55 The more ill-fitted nations were for the incorporation of foreign peoples (which contradicted the constitution of their own body politic), the more they were tempted to oppress them. In theory, there is an abyss between nationalism and imperialism; in practice, it can and has been bridged by tribal nationalism and outright racism. From the beginning, imperialists in all countries preached and boasted of their being “beyond the parties,” and the only ones to speak for the nation as a whole. This was especially true of the Central and Eastern European countries with few or no overseas holdings; there the alliance between mob and capital took place at home and resented even more bitterly (and attacked much more violently) the national institutions and all national parties.56
The contemptuous indifference of imperialist politicians to domestic issues was marked everywhere, however, and especially in England. While “parties above parties” like the Primrose League were of secondary influence, imperialism was the chief cause of the degeneration of the two-party system into the Front Bench system, which led to a “diminution of the power of opposition” in Parliament and to a growth of “power of the Cabinet as against the House of Commons.”57 Of course this was also carried through as a policy beyond the strife of parties and particular interests, and by men who claimed to speak for the nation as a whole. Such language was bound to attract and delude precisely those persons who still retained a spark of political idealism. The cry for unity resembled exactly the battle cries which had always led peoples to war; and yet, nobody detected in the universal and permanent instrument of unity the germ of universal and permanent war.
Government officials engaged more actively than any other group in the nationalist brand of imperialism and were chiefly responsible for the confusion of imperialism with nationalism. The nation-states had created and depended upon the civil services as a permanent body of officials who served regardless of class interest and governmental changes. Their professional honor and self-respect—especially in England and Germany—derived from their being servants of the nation as a whole. They were the only group with a direct interest in supporting the state’s fundamental claim to independence of classes and factions. That the authority of the nation-state itself depended largely on the economic independence and political neutrality of its civil servants becomes obvious in our time; the decline of nations has invariably started with the corruption of its permanent administration and the general conviction that civil servants are in the pay, not of the state, but of the owning classes. At the close of the century the owning classes had become so dominant that it was almost ridiculous for a state employee to keep up the pretense of serving the nation. Division into classes left t
hem outside the social body and forced them to form a clique of their own. In the colonial services they escaped the actual disintegration of the national body. In ruling foreign peoples in faraway countries, they could much better pretend to be heroic servants of the nation, “who by their services had glorified the British race,”58 than if they had stayed at home. The colonies were no longer simply “a vast system of outdoor relief for the upper classes” as James Mill could still describe them; they were to become the very backbone of British nationalism, which discovered in the domination of distant countries and the rule over strange peoples the only way to serve British, and nothing but British, interests. The services actually believed that “the peculiar genius of each nation shows itself nowhere more clearly than in their system of dealing with subject races.”59
The truth was that only far from home could a citizen of England, Germany, or France be nothing but an Englishman or German or Frenchman. In his own country he was so entangled in economic interests or social loyalties that he felt closer to a member of his class in a foreign country than to a man of another class in his own. Expansion gave nationalism a new lease on life and therefore was accepted as an instrument of national politics. The members of the new colonial societies and imperialist leagues felt “far removed from the strife of parties,” and the farther away they moved the stronger their belief that they “represented only a national purpose.”60 This shows the desperate state of the European nations before imperialism, how fragile their institutions had become, how outdated their social system proved in the face of man’s growing capacity to produce. The means for preservation were desperate too, and in the end the remedy proved worse than the evil—which, incidentally, it did not cure.