27 October 2015

Always the Ramsay MacDonalds: Lessons from 1931 for Labour today

Author | John Medhurst

On September 13th 2015 at a packed TUC fringe event at the Brighton Corn Exchange, ex-Greek Finance Minister Yanis Varoufakis delivered a stirring speech on how the Syriza government had been undermined by the EU’s financial institutions and what this portended for a future Labour government led by Jeremy Corbyn. At its close he finished with one last warning to the British left, born from his own experience in office, – “The enemy is always within. The enemy is always the Ramsay MacDonalds”.

Following the election of Jeremy Corbyn no-one would claim Labour is now led by a second Ramsay MacDonald (a role already perfectly filled by Neil Kinnock, who managed to betray his class and his party without even getting elected first). But although Corbyn’s mandate for a real socialist alternative is undeniable and impressive the Labour Party machine and most of its MPs remain unreformed. Too many local Labour parties – like my own in Brighton – are led by midget-Blairs whose response to the election of Corbyn and the subsequent inrush of enthusiastic new members is fear and distrust. Their strategy for the next four years will be to ignore, suppress and defuse their own members who wish to turn the party into a radical anti-austerity opposition. Nor are the unions Corbyn’s automatic allies. One need only see the grotesque Sir Paul Kenny, General Secretary of the GMB, who after accepting his “honour” from the Tories for selling out public sector pensions condemned Corbyn’s stance on Trident as a threat to the “defence of the realm”.

Most Labour MPs are still stunned by the size of Corbyn’s victory, but internal resistance and sabotage of Corbyn’s agenda will inevitably increase the longer he remains leader. The future MacDonalds are plain to see – the likes of Umunna, Hunt, Cooper, Bradshaw, Cruddas, and fair few of his own Shadow Cabinet. These people have no political base inby Bassano, whole-plate glass negative, 5 February 1923the sense of mass support, but they do not need one. They have a platform and high profile cheerleaders in the form of Andrew Rawnsley, Jonathan Freedland, Suzanne Moore and the entire GuardianObserver nexus of corporate liberals. Much of the naivety on the Labour left about this still-powerful strand inside Labour, and the latitude they continue to receive inside the wider party, derives from ignorance about Labour history and the lessons it contains. What, then, are the lessons of 1931, and why are “the Ramsay MacDonalds” still the main enemy?

In 1928 the voting age for women had been reduced from 30 to 21, bringing it in to line with men (a move strongly opposed by Winston Churchill and a host of reactionary Tories). This made the Labour Government elected in May 1929 the first in British history to be elected under equal universal suffrage, and the most legitimate government ever put into power by the British people. This was significant, given that power within British society continued to reside where it always had. A.J.P Taylor, in English History 1914-1945, neatly summarised the social forces aligned against Labour and the organised working class – “Universities, Chambers of Commerce, the civil service, the armed forces, nominally non-party organisations such as the Women’s Institute, and to a great extent the Church of England, were pillars of conservatism in thin disguise. Other things being equal, those who rule go on ruling, and those who are ruled acquiesce”.

Once again, as in 1923 when the first minority Labour government was elected, Labour’s pre-election rhetoric outstripped its intentions in government. Its programme, “Labour and the Nation”, written by R.H Tawney, had declared that Labour’s aim was to “use the weapons forged in the victorious struggle for political democracy to end the capitalist dictatorship in which democracy finds everywhere its most insidious and relentless foe”. The biggest challenge facing the new government was the ever rising tide of mass unemployment, created by the great post-war depression of 1921-22. The problem of “the intractable million”, as it came to be known in the 1920s, carved great wounds in British society as unemployment reached and seldom dipped below 10% of the population. In 1922 the total of jobless had been 1.54 million. In 1929 it was still 1.2 million, about to jump up to nearly 2 million in 1930 and then exceed 2.5 million in 1931, as the effects of the Great Crash and a second, still worse economic depression hit Great Britain. In regions dependent on traditional staple industries unemployment rates was far higher than the national average, and poverty endemic.

After the 1929 General Election Labour did not have an absolute parliamentary majority. This would have been a severe impediment to pursuing radical policies, had that been the intention. However, the only genuine radical success of the 1924 government, John Wheatley, was carefully excluded from the new Cabinet. The reasons for this were made clear at the first meeting of the Parliamentary Labour Party (PLP) after the election, when Wheatley opposed forming a minority government, which he feared would inevitably pursue capitalist policies and end up cutting unemployment benefits to assuage the City. MacDonald ignored him, and said that the greatest danger the government faced was “sniping from within”. The vast majority of Labour MPs applauded him.

The former radical firebrand George Lansbury, Leader of Poplar Council in the 1920s, had been invited into the Cabinet as First Commissioner of Works, but by 1929 he had lost some of his former zeal. With Lansbury muted the government, as in 1924, posed no objective threat to the British ruling class and its interests, no concrete programme to socialise the means of production, no attack of wealth and privilege, and no deviation from a pro-Empire foreign policy. The Fabian intellectual Sidney Webb, now Lord Passfield and the new Colonial and Dominions Secretary, said of the challenge of leading the country towards the socialist commonwealth, “All I know is that I don’t know how to do it”. Faced with this kind of “socialist”, the UK’s powerful vested interests had no need to resort to underhand or unconstitutional methods to subvert the Labour government. The capitalist economy itself, aided by servile newspaper empires run by rich plutocrats, served just as well.

The Federation of British Industries (the FBI, the pre-cursor to today’s CBI) drove the point home. It informed MacDonald that it had strong objections to an interventionist economic policy, and that it expected “a holiday from social legislation”. The FBI offered the government and the trade unions a deal – that in return for “greater flexibility in labour practice” it would deliver “a truce in wage rate reductions for the next eighteen months”. Robert Skidelsky’s comprehensive analysis of the economic policies of the 1929-1931 Labour government describes the City’s deep economic orthodoxy, and its fear that “Any tendency to toy with unsound expedients such as raising a huge loan for development purposes would seriously undermine international confidence. This was especially true, it was held, if the offending government were a Labour one” (“Politicians and the Slump: The Labour Government of 1929-1931”, p.77).

The City worried unnecessarily. Labour’s Chancellor, Philip Snowden, could not have been more attentive to their needs had he got down and polished their shoes.

The City worried unnecessarily. Labour’s Chancellor, Philip Snowden, could not have been more attentive to their needs had he got down and polished their shoes. He faithfully echoed the Treasury and the Bank of England’s commitment to the Gold Standard and Free Trade. Snowden’s unwillingness to take Sterling off the Gold Standard (to which the previous Tory Chancellor Churchill had returned the UK in 1925, thus stifling the flow of credit and hampering industrial expansion) had crippled from the start proposals to alleviate unemployment through government spending. In complete agreement with Treasury/City doctrine that deficit spending was calamitous and unemployment benefits were excessive, Snowden ensured the Labour manifesto’s “unqualified pledge” to deal “immediately and practically” with mass unemployment was never actioned, although by July 1930 unemployment had topped 2 million, and 2 ½ million by the end of the year.

When not restrained by Snowden’s financial strait-jacket Labour made a few jabs at some of the British economy’s worst injustices. It passed the Coal Mines Act 1930, which revoked the 8 hour day imposed on the miners in 1926 after the General Strike (it legislated for 7 ½ hours) and sought to control coal prices. The new Minister for Health, Arthur Greenwood, also made clear he would continue John Wheatley’s house building subsidies introduced in 1924, which had been under threat from the Tories, and legislated for a programme of slum clearance in the Housing Act 1930. These were resisted by the Conservative opposition under Stanley Baldwin but nevertheless had some residual impact, particularly later in the 1930s when Greenwood’s act led to a massive attack on Victorian slum housing.

These were fleeting moments of radical challenge, overshadowed and virtually extinguished by the economic crisis inaugurated by the Great Crash of October 1929

These were fleeting moments of radical challenge, overshadowed and virtually extinguished by the economic crisis inaugurated by the Great Crash of October 1929, whose ripple effect hit Britain in 1930 and 1931 and accelerated already high unemployment. As the devastating effect of the Great Crash sent shockwaves around the world and impacted on European economies, MacDonald gave voice to Labour’s deep yet incoherent belief that the capitalist system was fundamentally unsound, and it was beyond human ken to address it – “We are not on trial. It is the system under which we live. It has broken down everywhere, as it was bound to break down”. Unfortunately he had no schemes or policies to redress this breakdown, and he was not open to those who had.  macdonald appeal

The government’s doctrinal incoherence left it vulnerable to whoever talked loudest and wielded financial and institutional power. Sadly, this was not its own activists, or those calling for radical departures in economic policy. On the contrary, “the decline in business profits produced a predictable clamour in favour of retrenchment in public expenditure, which was focused in a attack on the “dole”, and its alleged “abuses”, but over which already loomed the spectre of an unbalanced Budget and all its attendant evils” (Skidelsky, p.203). With some exceptions, Ministers internalised and reflected these voices. Ostensibly socialist politicians elected by a primarily working class electoral base to restructure British capitalism and address the burning issue of unemployment began to see the unemployed themselves as the problem. Hugh Dalton, then a junior member of the government, recorded in his diary that “In niggling discussions about abuses and anomalies in the payment, in a small number of cases, of unemployment benefit, most Ministers and their officials quite lost sight of the major “abuse” and “anomaly” of mass unemployment itself”.

There were ideas to tackle the blight of mass unemployment and the threat to social peace it represented, but they were advanced by an odd consortia of Independent Labour Party (ILP)/left Labour MPs, progressive Liberals and economists like J.M Keynes, and championed inside the Labour Government by Minister of Works George Lansbury and Chancellor of the Duchy of Lancaster Sir Oswald Mosley. Although these alternative policies were far and away the most creative and energetic proposals put forward at the time, and would eventually find effective expression in the USA as part of Roosevelt’s New Deal, they suffered in Britain by association with Mosley. Brilliant but erratic, he eventually left Labour to form the New Party, and all his potential was wasted as he declined into fascism.

In January 1930 Mosley put all his proposals for dealing with unemployment into a document subsequently known as the “Mosley Memorandum” and sent it to the Prime Minister. Amongst other things it called for greater public ownership, control of banking and credit operations to ensure stimulus to the economy, increased pensions and social security payments, and protectionism. It also recommended the creation of a Development Bank that would co-ordinate government credit, rationalisation and regulation of the banks, and planned industrial development. The Memorandum was explicitly critical of the inability of British banks to focus on the long term national interest, considering them “…unfitted by tradition and present practice to play any such part”. Mosley had discussed an earlier draft of the memorandum with Lansbury, and also with J.M Keynes, who considered it “a very able document”.

MacDonald set up a Cabinet sub-committee consisting of himself, J.H Thomas (who had responsibility for tackling unemployment, and whose inactivity had driven Mosley into independent action), Arthur Greenwood, Tom Shaw and Margaret Bondfield. Only Bondfield, Minister of Labour and a former member of the TUC General Council, had any sympathy for the proposals. The Memorandum was also sent to the Treasury for views. After cursory consideration the Cabinet sub-committee rejected the memorandum, partly prompted by a negative assessment from the Treasury, partly by the savaging of Mosley’s proposals from a press that with minor exceptions was extremely conservative. The Daily Mail editorialised (May 22 1930) that “No reasonable person would refuse the Government in general and Mr J.H Thomas in particular commendation for the firm stand they have taken against the crazy proposals put forward by irresponsible members of their party, and against the wild-cat schemes of Sir Oswald Mosley”. Instead the Mail strongly recommended “…the most drastic economy in expenditure, accompanied by large remissions in taxation”.

The leading members of the government feared and followed the wishes of the press and shaped policy around the headlines of the Mail. In frustration, Mosley resigned his government position and tied to bring the fight for alternative policies to the Parliamentary Party. At a packed and dramatic meeting of Labour MPs Mosley laid out his proposals in what those present reported as a brilliant and passionate speech. Nonetheless he was soundly defeated by 202 votes to 29 after MacDonald demanded loyalty to the leadership, and only a small minority of left-wing MPs (amongst whom was the young Aneurin Bevan, elected in 1929) were prepared to defy the Prime Minister. After this Mosley self-destructed, producing a manifesto supported by only 17 Labour MPs and in early 1931 leaving the Labour Party.

Although Mosley’s proposals were rejected by the Cabinet sub-committee and by most Labour MPs, his stinging criticisms of the lack of focus within Whitehall on the problem of unemployment had enough effect that MacDonald felt compelled to create a new Ministerial “panel” to bring greater coherence to government attempts to tackle the problem. To assist the panel a new Secretariat of senior civil servants was created headed by Sir John Anderson, Permanent Secretary of the Home Office. Yet the force and logic of the Mosley Memorandum had clearly left an imprint on MacDonald, even if one he wished to discard. In July 1930 he sent the memorandum on to Sir John Anderson to “examine the proposals made here and see what is in them”. Whilst Sir John did not specifically reply to the Mosley Memorandum, he did respond on 31st July with a detailed summary of the findings of the Secretariat during its seven weeks of existence. Sir John wrote to MacDonald that the Secretariat considered the scale of the unemployment problem had been exaggerated as “a large number of people really abused the insurance scheme”. Rejecting the possibility of “radical measures” such as government funded schemes to promote employment in the depressed regions, he added that “we are now reaching the limit of works which will conform to any reasonable standard of economic utility or development” and the government must dispense with “illusions that a substantial reduction of unemployment figures is to be sought in the artificial provision of employment”.

In its short existence Anderson’s Secretariat had not examined the provision of the “dole”. More reliable data from the Ministry of Labour disproved Anderson’s assertion that there was wide-spread abuse. In the later opinion of a resolutely non-Marxist commentator, the explanation for Anderson’s complacency lay in the class solidarity of the British ruling elite – “It is perhaps not unfair to speculate that, far from having thoroughly investigated all possibilities, Anderson had met a number of captains of industry and the City, over luncheon or dinner at Brook’s or the Athenaeum, who had warned him that any “radical measures” would undoubtedly so damage confidence as to produce economic collapse” (Skidelsky, p.219). There was in any case virtually no chance that Mosley’s policy prescriptions would get past MacDonald and Snowden. After the fall of the government Mosley’s successor as Chancellor of the Duchy of Lancaster, future Labour leader Clement Attlee, confirmed to Hugh Dalton that “Snowden had been blocking every positive proposal for two years”. Now Snowden moved beyond inertia into outright Tory policy. With the threat posed by Mosley eliminated and unemployment now topping 3 million Snowden confirmed in February 1931 that, in line with Treasury orthodoxy, he envisaged a massive attack on social spending.

To provide him with the political cover he needed to force through measures he knew would be unpopular with his own party, Snowden took advantage of a Liberal motion (supported, with astonishing naivety, by most Labour MPs) for an independent committee of “experts” to examine the public accounts and make recommendations for cuts in public expenditure. To chair the committee he appointed the industrialist Sir George May, recently President of the Prudential Assurance Company and a man with no background or expertise in government finance. Four of the committee were likewise leading industrialists, balanced by two senior trade unionists. Snowden was prepared to wait upon their recommendations, and so his April 1931 Budget was comparatively mild. He was planning a much more severe “austerity” Budget in the autumn.

On August 1st the May Committee reported as expected, “a report compounded of prejudice, ignorance and panic” (Taylor, p. 288). It exaggerated the total deficit and strongly recommended that it be dealt with immediately by a £96 million programme of “economies”, most of which would be achieved by a 20% cut in unemployment benefits allied to an increase in contributions. In addition, conditions for receiving benefit would be tightened and receipt would be limited to 26 weeks in any one year. Teachers salaries would be cut by 20% and police officers by 12.5%. Public works programmes would be cut back. Keynes considered the report “”The most foolish document I have ever had the misfortune to read”. The two trade unionists on the committee dissented from its conclusions, suggesting there be fewer economies and increased taxation instead. Snowden ignored their dissent. MacDonald created another Cabinet sub-committee to consider the report, to meet later in August after the summer break.

On August 11th the Deputy Governor of the Bank of England, Sir Ernest Harvey, laid out for MacDonald and Snowden his view of the seriousness of the economic crisis, now compounded by a run on the pound and contracting government finances. Sir Ernest then met the Conservative and Liberal Treasury spokesmen, and was more forthcoming than to the Prime Minister. According to Shadow Chancellor Neville Chamberlain, Sir Ernest made clear that “The cause of the trouble was not financial but political, and lay in the complete want of confidence in Her Majesty’s Government existing among foreigners”. The Bank of England’s concern was for the views of the big New York banking houses, whom the British government was asking for a short-term loan to tide over its deficit. New York did not believe a Labour Government, allied to the trade unions and the wider labour movement, would institute massive cuts to social spending. It needed reassurance and proof of compliance.

One of Chamberlain’s advisers, J.C.C Davidson, telephoned Tory leader Stanley Baldwin, on holiday in France, and told him to return home immediately. He sensed that the government “was already breaking up”. He may have been assisted in this by secret communications from MacDonald’s Parliamentary Private Secretary, who broke Civil Service rules to pass information to the Opposition Front Bench. Davidson’s diaries record “MacDonald’s Private Secretary, Usher, kept me closely informed of the situation”. Apparently Usher doubted that Labour would survive much longer, as “…only Snowden and Thomas could be relied on to see the situation through, particularly if the correct solution to the crisis was a cut in unemployment insurance.

Finally the TUC woke up to the scale of the crisis that was upon them. On the TUC General Council Ernest Bevin was the leading voice against the cuts programme. On August 17th he told the TGWU National Executive “The crisis has not arisen as result of anything the Labour Government has done, or of its social policy, or the cost of unemployment. It has arisen as result of the manipulation of finance by the City…”, and he was firm that “The City should not be saved at the expense of the working class and the poorest of our people”. Inside Parliament Arthur Henderson, hitherto a MacDonald loyalist but also linked to the trade unions, started to voice discontent with the May Report. Under immense pressure the Economy sub-committee reported back early to the full Cabinet on 19th August with proposals to implement much of the May Report, though trimming some of its severer recommendations. The Cabinet agreed to authorise a lesser programme of £56 million of economies, though there was vocal disagreement as to whether this would include cuts to unemployment benefits. The Opposition parties insisted that the full programme of cuts, including the 20% cut in unemployment benefit, must be made to ensure New York retained confidence in the UK economy.

Impelled by Bevin, the General Council sent a special deputation to meet the Economy sub-committee to convey its “complete opposition” to the proposed cuts. Asked for alternatives to Snowden’s cuts programme, the TUC General Secretary Walter Citrine questioned whether the “crisis” of sterling was really as catastrophic as the City maintained, and he outlined a programme of tariff reform and increased taxation for higher earners (especially those on “fixed yield” interest, i.e. rentiers) that could start to address it. The meeting became rancorous, with Snowden firm on the need for financial discipline as disaster would follow if sterling went off the Gold Standard. When he asked sarcastically why, if the TUC supported increased taxation on rentiers it did not support taxing teachers and policemen as well, Bevin answered that the latter were useful to society whilst the former were not!

A subsequent letter from the General Council to the Cabinet made it clear to those who supported the cuts, and to those who did not, where the organised labour movement stood. Whilst this gave strength to those, like Henderson, who were now disengaging themselves from MacDonald, it infuriated those in the Cabinet (still a majority) who supported him. Snowden, happy to accept direction from Treasury mandarins, snapped that interference by the TUC was an affront to democracy. Sidney Webb, having spent a lifetime lecturing the working class on what they should do and not do, was infuriated that their representatives should disagree with him. “The General Council are pigs” he raged to his wife Beatrice, although he did not exhibit similar hatred for the Opposition parties, the Bank of England, Sir George May or the New York banks.

But the crucial decisions were not to be made by the General Council, or by Labour MPs, or even the Labour Cabinet. MacDonald was subject to a tidal wave of extra-Parliamentary pressures. On August 20th MacDonald and Snowden met Neville Chamberlain and other Tory and Liberal leaders to discuss a common approach to the economic crisis. Chamberlain insisted that nothing less than the full May Report was acceptable to the Opposition. Snowden agreed this was required but was worried he could not carry his colleagues with him, whereupon Chamberlain urged MacDonald to consider the formation of a “national government” to carry forward the full cuts programme. This would be done “in the national interest”.1931 cabinet

Many others were making this suggestion, including George V. When MacDonald saw the King on the morning of August 23rd he told him the government could not reach agreement on the cuts and might have to resign. After MacDonald left the Palace the King saw Sir Herbert Samuel, the Liberal leader, and told him what the Prime Minister had said. Samuel was concerned, and told the King that “In view of the fact that the necessary economies would prove most unpalatable to the working classes, it would be in the general interest if they could be imposed by a Labour government”. He explained that if Labour did not stay in power the next best outcome would be a national government composed of representatives of all three parties, with MacDonald as Prime Minister to give the impression of continuity.

Later the same morning, the Editor of the Times, Geoffrey Dawson, fully informed of Whitehall and Palace discussions, called the King’s Private Secretary, Sir Clive Wigram, and suggested that the King needed to impress on MacDonald that it was his responsibility to “get the country out of the mess” and to do so “with any flattery he liked”. By this stage MacDonald did not need flattery to see himself as the national saviour rising above petty party concerns. The King, his Private Secretary, the editor of the Times, the Treasury, the leaders of the Conservative and Liberal Parties, and increasingly the Labour Prime Minister himself, were all converging on the belief that democratic party politics should be suspended in favour of a “national” government that would respond swiftly to the dictates of the City and Wall St.

The King, his Private Secretary, the editor of the Times, the Treasury, the leaders of the Conservative and Liberal Parties, and increasingly the Labour Prime Minister himself, were all converging on the belief that democratic party politics should be suspended in favour of a “national” government that would respond swiftly to the dictates of the City and Wall St.

That evening MacDonald received a telegram from the American banking plutocrat J.P Morgan, in the name of the New York banking houses from whom the government was seeking credits. He read it out to the Cabinet, emphasising Morgan’s blunt enquiry whether the programme of cuts under consideration “…had the sincere support and approval of the Bank of England and the City generally” since it was necessary that there be “internal confidence” in the government. It was clear that if it did not, and unless the programme included at least a 10% cut in unemployment benefits, the American loan would not be forthcoming. At this the Cabinet broke up in loud shouting. Eight Ministers (including Henderson and Lansbury) were adamant that they would not be dictated to by New York and would not accept the cuts in benefits.

MacDonald had no choice but to go back to the King and offer his resignation, which he did at 10.20 pm on August 23rd. Sir Clive Wigram recorded that the Prime Minister looked “scared and unbalanced”. The King reassured him that he was still needed, and that he if he could not carry his Cabinet he should from a national government. Relieved, MacDonald agreed to meet Baldwin and Samuel to discuss this, which he did in the presence of the King at 10.00 the next morning, August 24th. With the King’s promptings (already discussed and agreed with Baldwin and Samuel in separate meetings) MacDonald agreed to form a national government with himself as Prime Minister. At this point no member of the Cabinet had resigned and none, except Snowden, were even aware of MacDonald’s meetings with Baldwin and Samuel.

The last Labour Cabinet of that government was held that afternoon. In a tense atmosphere MacDonald informed his colleagues that at the request of the King he was to lead a national coalition government to institute “emergency measures”. He asked Snowden and Thomas to join him and they agreed. No other Ministers were even asked. That afternoon the Palace formally announced that MacDonald had resigned. The communiqué went on “The King then invited him to form a national administration. Mr MacDonald accepted the offer, and kissed hands on his appointment as the new Prime Minister”. At the same time it was announced that the new National Government would implement cuts of £70 million which would include a cut of 10% in unemployment benefits. New York was pleased. The loan was assured.

MacDonald, Snowden and Thomas ended their careers as mere figureheads for a “national” government that was essentially a Tory-Liberal coalition. They provided political cover to impose savage spending cuts and immense suffering on Labour’s heartlands, where unemployment was severest. The reasons for Labour’s collapse in 1931, for its inability to resist the austerity that the “national” government would inflict on the country throughout the 1930s, were many and varied, but fundamentally it was an intellectual failure. Macdonald and his closest supporters held to a narrow, anaemic conception of politics, a naive reformism with no understanding of how utterly ruthless the UK’s ruling class are and how far they will go to protect their power and privilege. Whilst the Labour Government was subject to unprecedented political and economic pressures during 1929-31 these could and should have been predicted. Even after the first effects of the Great Crash had reverberated across Europe and hit the British economy, the government could have survived, and protected those who had elected it, through a combination of greater flexibility in economic thinking, a firmer alliance with Labour’s core constituency and the trade unions, and political backbone. Instead, it allowed itself to become the willing victim of “a ministerial revolution engineered in the City, Downing St and Buckingham Palace” (Michael Foot, Aneurin Bevan, vol 1, p.118).

Labour’s servility to the institutions it ostensibly set out to control was nowhere better illustrated than by the issue of the Gold Standard. A few days after the formation of the National Government MacDonald was asked why, before he collapsed the Labour government, he had not first summoned Parliament and candidly explained the situation to them. “There was no time” MacDonald replied. “Prompt action had to be taken to prevent the disaster of going off Gold”. A month later, on 21st September 1931, after advice from Treasury officials that despite the £80 million New York loan Britain’s gold reserves were still dangerously low, the National Government took Britain off the Gold Standard. The Treasury mandarins and newspaper editors who had insisted that the only way to prevent this national disaster was to slash unemployment benefits, made no complaint. Sidney Webb, when informed that Britain had, after all, left the Gold Standard, was incredulous, and his reaction summed up the first generation of Labour Ministers and the government of 1929-1931. “Nobody told us we could do that” he said.

If a transformed Corbyn-led Labour Party is elected – and it is a huge if – there will be many inside the Labour and Trade Union movement, and in the “liberal” media, lining up to tell it what it can and, more importantly, what it cannot do. Whether directly or indirectly these people are the compliant, instinctive servants of the 1%. They speak the language of an Oxbridge-BBC-Guardian elite, well schooled in visionless pragmatism and unquestioning acceptance of capitalist realism. Their every action will be devoted to undermining a Corbyn-led opposition and a socialist government. They should be recognised for what they are – our future Ramsay MacDonalds.