Functional socialism

TL2 FUNCTIONAL SOCIALISM

and destroyed either on Scylla or Charybdis. In plain terms, either by State Capitalism, disguised as State Socialism, or by Fascism. It is at least curious that these two schools of thought are ominously agreed on the preservation of present capital values. We now know the mechanism of the Italian Corporative State, which has definitely embedded in its constitution the powers and legal rights of capitalism together with the indefinite continuation of the wage system. All the elaborate scheme of corporate representation does not alter that fundamental fact by jot or tittle. In like manner, the Labour Party at the Hastings Conference, almost, if not quite, committed itself to the purchase of bank shares at market prices. It is true that, in response to my protest, Mr. ‘Lansbury, on behalf of the Executive, undertook to reconsider this proposal; but, as it stands, the Labour Party, when it comes into power, is committed to socialize the “Big Five’ at market prices. Their present shares, in financial jargon “paid up”, stand at the nominal price of £64,715,000, with reserves £44,750,000. But these so-called “paid-up” shares do not represent cash but the price of amalgamations. Probably £25,000,000 would more than cover their original capital. As I write, the market value of those shares is rather less than £220,000,000. With any prospect of State purchase, it would rise to £300,000,000. Imagine the same process of artificial capitalization running all through our industrial system! No functional society would or could recognize any equity in such swollen claims. Should