1931-09-16 — Page 11

HAS DEMOCRACY FAILED?

STATE CAPITALISM " · DISCUSSED AT RO

CLUB TIFFIN.

DICTATORSHIP OR COLLECTIVISM: MR.

INTERESTING "ADDRESS.

BUSH'S

Addressing members of the Rotary Club yesterday, Mr. J. D. Bush gave highly interesting discouran on Dümocracy, and Stato Capitalism," in the course of which he expounded the mean ing of State Capitalism" as it is kunwn to-day: Mr. Bush also. dealt with the" passibilities it holds out to the world's millions, ith adaptability in the world to-day, its effects on countries which have adopted it and finally, the opposition which has been form ed against, it

The Hon. Dr. S. W. Teo, who presided, in introducing Mr. Bush, said that the latter was educated at the Columbia Uni- Versity, and was, between 1018 and 1920, a professor at Piking University. The Chairman added that Mr. Bush was a keen stu-. dent of polition science and economy and was well qualified to apenk on the, subject.

ITALIAN AND RUSSIAN DESPOTISM.

HONG KONG, DAILY PRESS, WEDNESDAY SEPTEMBER 16, 1931.

Democracy dil not mean a transfer well as railways bidding against one. The world to day is also swaying failed in insight was in believing the Joint Stock Bank. He makes of power from the low to the many, another to secure the traffic of between dictatorship and collea that he could bring about a better out a very good case for that but a disappearance of power from largo shippers. It is still fresh in tivism. Many of us are enamoured world by transforming the organiza simply by pointing out the results the world. The vote is an Instru- our memory that a holding com- of the grand experiment being car tion without transforming its which bave been brought about by Four present daystematised methods ment of defence, and not a con-pany like the Standard Oil Com-ried on in Fascist Italy and Soviet values. structive tool Confronted with pany of Now! Jersey was compelled Russia. I dare not cast doubt that When all is said and lane, the of arranging production without the tremendous reconstructive by order of the United States the young Fascists and young. Suviot régime does servo on uscini watching what demand was likely heeds of our times, political demo- Supreme Court to give up all the Sovieta may not succeed in chang purposo, namely as a powerful anti- to be, and also by making the basis of bank credit, or rather I should cracy has completely failed to subsidiary companies held under ing the whole face of the earth taxin in the prosent-day world body say by extending, crodit, without fulfil ita prominon. Notwithstand control. The problem, of the within the next decade or two politics, against a great deal of the taking into account that the credit ing all the electoral reforms at Federal Government of the United Nevertheless it must be observed evils ascribed to the individualist may sometimes, be used for produc- No doubs a good case can bo States has been to maintain the that Fascism may be adapted to capitalism and contributes towards tive purposes. tempted in recent years, such as

mesgp resources the goal of stats capitalism. It is made out but an equally good cage the Referendum," Proportional Re.economic advantage of large scale Italy with her prosentation, none of thess devices production and prevent abusés. A and her mass of illiterate or semi-coming with an inevitablences: pl,"can be made out against socialism

peasants.

wistently believe, however, that an iron régime of despotism of that sort enn be imposed on democratio countries like England and the United States, although it might

Can wee con graduniness and without the tears can get down to the root of the few instances of leaders of induk-lit ma corruption and incompetence of our tres like "Henry Ford might have

and blood is seen in Soviet Russin modern democratic governments tried to set the example of equaliz

for the past fourteen years, One vital point, however, emerges, ing the economic benefits ne much

The prosent ago is consumed with viz., that ignorance, indifference as possible, jot it is not enough

the all-powerful ideal of Socialier, and incapacity of the common man to eradicate the evils of plutocracy,

yet ideals, like the Bride of has beer the main obstacle to the mercantilist imperialism and mili in China, us under the Kuomintang. Mohammed, declares an English smooth running of political demo- tarism under the individualist The Russian remedy, on the writer," are said to be at once our cracy. The ordinary man does not economic system. Was it not that other hand, is still debatable. The most precious and our most dan and cannot look into his heart to plutocracy and mercantilism pushed whole world looks to the Five gerous possession. How to love, see what it wants; that is why poli- to the extreme that culminated in Years Plan. If that succeede, the honour, and obey them and yet not millenium may arrive in the eyes of have them in their tyrannic beauty ticinta can coax and threaten, the the Groht War of 1014.

this Soviet. Bernard Shaw, after bind us into servitudo or oven, risa; masses na mon make use of the

a visit to Russia, saya that success and slay us, makes a tale as in- instinct of sheep to follow a leader

in the "Hope of the World.” An-, teresting as a novel."

think that "the strain the Soviet lenders have placed upon the coun-

Capitalistle Préfk...

Mr. Bush's addrres was ns fol. the Seven Yehra War and between for of the instinct of a horse to 1 may dwell on the power of the other English observer seems to Prof. Robérison's Comment.

lows:

the period of 1750 and 1780, the I wish to offer to your considera-attention of Europe was contred tion some thoughts on the decline upon questions of social and poli- of Demouracy and the, coming of tical reconstruction, ags of State Capitalism. If the subject is boring to you or if it by the cause of your indigestion at this luncheon, plonso do as the Chinese natura do when they are

For a time, the rules in Europe tried to make an end of crying abuses until the French Revolution came. on and swept everything bo fore it, as the Russian Revolution. has been doing in this age. The

follow its own nose.

ית

If there is time at my dispossi,

business community over the now The problem of government “by paper press in the democratic coub the people may work in theory try. The Press has been coming but certainly not in the practical more and more into the hands of application. We can see no pra the big capitalists. It is the quer tical solution of this political probtion of he who pays the piper will lem in Europe or America to-day,

The Great WAY.

In the economic life of the demo-

call the tune..

Professor Robertson. I should

killed on the stage simply get up French Revolutionists aimed to racratic countries, the outlook is not of the world' dancing the mad dance

period of human constructing society according to any brighter; in fact, it is ever The western nations have for years policy after another in order to anyone been able to say what was

and walk away. We live in history in which All tablished opinions, philosophie. religious, political, economic and scientific,

principles of equality. Afterwards

recall sought to impose their idea

the war expedients, such as gov- are questioned and attacked at not only upon the frontiers but

***ernment control of factories, every turn. Economically and poll-upon the whole of Europe; just s

rationing in all directions, deter- tically the world is going through the Bolsheviks are doing to-day on

mthing of wages and prices reveal hitter and trying times. The con- much larger scale.

ed to the people the economic tinuing insecurity of nutlook in

Drastic Changes,

problems in an unequivocal form the United States. England and Before the down-fall of Napoleon Every citizen was induced to aban- Europe appeara as though the and the settlement of 1815, the two don his former pursuits in favour moorings of modern civilization forers of monarchical reform and of a single purpose, namely to win

the victorious French armies as you from an entirely new angle. All mic policy is entirely, its own stry. At all events, the Five Years' we look around we certainly do

try is terrific, too terrife to be have liked an opportunity of read- borne far long. That is why the ing, beforehand, what Rotarian Soviet Government must try to complete the plan in four years, Bush had to say as you will agree if possible In passing, it may also with me that he has packed into be noted that the Soviet régime this paper a very great deal of has been pursuing a zigzag course,material which is difficult to deal In the realm of banking and cn- trying obe expedient after another with a short notice. In some ro

spoots I found his historical and change, the bankers and the finan to full the Marxist programme. ciers have seen the unstable, money

economic survey somewhat depress Five Years Plan,

ing. It seems to me that at no together for the past few years.

It has abandoned one proletarian period of the world's history has worse. The Great War suddenly been scrambling for gold, insisting make the industry run more smooth going to happen. At present when showed up the economic problems that a nation's financial or econo-

Plan is an adaptation to capitalist see a great deal of confusion. and and suddenly realized the other day incentives and it is state capitalism a great deal of uncertainty. W the interdependence of financial rather than communism. One thing, find. democracy, however, still and economic strength of the however, is certain the Soviet strong, I am glad to say, in Eng- nations, Should the problems of system, if it aims to dominate the land and the United States, and Currency and credit horeafter be left to the chances of private judg-world, will have to discard all the I am still more glad to say as my tyranny and terror, with secret own personal opinion that in- ment and private profita 1 the whole disastrous situationcratising the political and economic

And how are we going to remedy police, espionage, and arbitrary dividualism is still strong in these

execution. Such system of demo- countries.A, NEAR M

In Italy and Russia,, however, wo The answer is that we

must be of a nation may be adapted to find a form of what may be call change our preconceived individua Ecople who were accustomed to ed despotism, one which is quite

economic alist

viewpoint. The the Tsarist despotism, but by no unsuited to the countries from economic problem of to-day is that

the United States und Great learning political leasons. action-joint action by a community Britain.

I do believe, in some respects, pre-socialist's rejection of the system Soviot Russia and Lenin its adopted vast, social schemes have

of men: From all appearances, the

"Das Capital," the Bible of that those countries which have of private profit so as to equalise prophet, doubtlessly makes an un-not always counted the cost before the people's economic position is answerable, indictment against the adopting them. I believe, in Enga gaining ground daily and even present capitalist system in the land for example, we have saddled hourly. Many of our modern econo-Enited States and Great Britain. ourselves with social responsibilities mists have frankly admitted the Anacrophet of industrial pro- without taking into account how duction, distribution and exchange. Zimmern, save, Chel Marx "is im- power with other nations. urgency of nationalization of protestantiem; as, Professor Alfred these would affect our competitive Mr. John Maynard Keynes, for inmune from criticism, except the one

have been cut adrift and every revolutionary action had wrought the war. Abovo, all, the war ex of utilizing man's capacity for joint means" adaptable to countries like which Italy fifty years ago was

where, from China to Peru, the bonda of Society are in a state of disintergration. Ent and drink what you can get to-day and be merry at all costs, is the univeran philosophy, for to-morrow there anny come another war. Doesn't "the whole aspect seem to justify the most optimistic expectations of the Internationalists 1

„erney,

3

Socialism for Banks

on such a material part of our in- dustrial system as our, banking system.

•

I have listened with great in- terest to what Rotarian Buck has said, and, as I said before, I should have liked & little preparation be fore I make my comment on it as I fear my comments have been all too insufficient. I am sure you will all join with me in extending our warmest thanks to Rotarian Bush for his very interesting, address.

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many drastic changes in the strac-pedients dealt a death blow to the ture of European Society. These philosophy of laissez faire so were the days of the birth struggles Jominant between the period of of Democracy. From the nine- 1780 and 1950, that is leaving the teenth century on, Democracy and individuals to follow the prorapt been gradually on the ascendency, ings of their selfish desire in com Now as Democracy became Recen restraint either by state action or merce and industry, without any dent in Europe, its spirit produced by public opinion. The freedom of a totally new way of life in poli-individual enterprise and contract starce, admits partially that it reminder that, in a world in which ties, Kiterature, art, music, and were taught by economists and is true that many big undertakings, the classes, like the peoples, have The banks recently came in for And where is the hope and the everything else. In political life, it nineteenth centuries. The reason prises and other businesses requir testantism, like patriotism, is not reading this morning an account by philosophers of the eighteenth and particularly public utility enter of necessity to live together, pro- a great deal of criticism. I was way out of such chaos? It is this was the result of Democracy ascen- was that "almost everything which ing a large fixed capital, still need enough" Then Professor Zimmern G. D. C. Cole in which he strongly sullen mood that prompts us to dent, as H. G. Wells anys, that the State did in the eighteenth to be semi-socialised."

mikes one other strong point, in presses for socialism, not only for century in excess of its minimum search and analyse the defects and We have chambers of repre- functions was, or seemed, injurious

Mr. Bernard Shaw tells us in that he says: "Where he (Marx) the Bank of England but also for "The Socialist Woman's Guide to incompetence of Democracy and the sentatives and parliaments spread or unsuccessful. Then on the many legacies of which survive the throughout the world, and we have in those days thought that wealth, alization, coal and hanking, you other hand, the English economists the formula for these two, nation- Intelligence":"When you have present day. The lazy or bored seen the franchise extend until commerce and machinery were the have a formula for the constitu mentality will dismiss the question manhood, and at last womanhood children of free competition that tion! compensated expropriation. of "What is wrong with Demo-suffrage seems everywhere,"

free competition built London. And the Darwiniang at the time even of the coalowners and bankers by cracy" with a cynical remark The fruition and advantages that could go one better-free competi-the expropriation of all propric

taxation; you have the formula for "Demoerney is simply demos the age of Demolicy has brought tion had built man. Thus you have tors. But G.B.S. warns us that or it is merely a cult of to our modern world may be sum ship and the system of private tion is perfectly sound

in a nutshell how private owner though theoretically, nationalize incompetence or a mere mob-wor-marized under these few essen-profit came to be so predominant practically it takes a lot of doing ship. Neither do we want to tials:

in the nineteenth century. With the release of the The motive of money-making ted that the transition from the At this stage, it must be ndrait- behave towards Democrney like human mind from outward beliefs, and profit is inseparable from an

present individualist system to state Diogenes, whe, with drastic energy, organized thought and ascertained individualist system based despised, the citizens from his tuh.science became more and more markets: According to the econo capitalism is no casy task, unless

systematic as well

we adopt the violent and drastic Nor should we adopt the attitude This system of, scientific culture, individullist society; profit is pro-and Soviet Russia. Even Shaw ns coherent. mists of the present day, in an methods adopted in Fascist Italy having its root in the Giacco-Roman minent in at least three ways: hng to admit in The Socialist civilization, brought forth the pre-(1) As the motive for the under Woman's Guide to Intelligence," sent remarkable scientific civiliza taking of business by those with that it is a grese pity: the change whom the initiative lies; (2) as the cannot be made more quickly. 2.-The practice of representative principal source of accumulation: The Brat and last commandment of government in England and the (3) as the principal cause of the in- Socialism is Thou shalt not have As students of political philo. United States has been the paragon equality of inconies."

a greater or less income than thy of political thought and action to sophy, you agree with me, that we the rest of the world in the course

neighbour. Mr. Shaw tells us that want none of this counsel of des- of the nineteenth century. It is

before such commandment could pair. We would much rather look the basis of this system that makes ciple, like the political, democracy cess would involve hundreds of new be approximately obeyed, the pro- at the issue squarely and disthe Weectru nations apparently so that has just been discussed, has Acts of Parliament being passed passionately. To live is to change

homogenous, "externally indepen and to live long is to have changed dent and internally self-moved and been tried and has failed to and hundreds of old ones being re- often. And now conditions create self-controlling." The most inter the nation. Profit, in short, under Departments created and organized. equalize the economic benefits of pealed and many new Government new difficulties. Instead of poursive of nationalism has been evoked ing contempt on perplexing changes ahend, it is up to us to remove the from this system of representative the individualist systein, has been Then in Bo far as regards" the difficulties so far as we can in our government, which in one sense has the case of the tyranny of com changes and confiscations, the generation and times. The remedy done mere harm than good to merclism, industrialism and mili-question always looms up as to how

far and how fast you can go with Europe.

the test of time In other words, the test of time out crashing is not to stop thinking in face of 3. The freedom of science, ex- difficulties but to think again. In

has shown to us that Society, based

Between Commercialism and the transitional stages of human periment "and enterprise has been on the individualist economic prin- history, Democracy has done its the potent factor in building up ciple, is fruitful of abuses. For

Socialism. good work and it is now entering on the western system of production, example, the power of the business a new phase of development.

Perhaps this is the explanation transport, banking and marketing, community is so great in a demo-

of the Arabs, who, when they kill a lica, vent themselves in insulte, kick and spit upon the harmless corpse.

Policy of Despair.

in

tion.

Triod and Found Wanting. The individualist economie prin

tarism.

4. The western Bystem of cratic country like the United why the world to-day is a wanderer Before chanting, the swan-song of national education not only maker States, that group of influential in the desert between commer- Democracy, let us recall for a brief sulture the possession of savants business men can keep on control cialism and socialism. Many in moment the splendour that was. and literati but also brings culture ling the affairs of the state from deniocratic countries like England Democracy had its germination within easy access of the general bohind the scenes. Mr. James W. and the United States are hopeless- in the sixteenth century when the body of the people... philosophers, scientists, essayists 5.-The most characteristic and Gerard, the former Ambassador toy unfitted for socialism by their and particularly dramatists distinctive literature of the age of Germany, once set forth a list of bringing up, although they cannot and conduct with such intensity and influence upon social and political the country. Mr. Gerard firat began story told of the Irishman who France reasoned about human life democracy is the newspaper. Its such business men who exert great stick to the saddle for ever. The political power and practically rula position is a good deal like the clarity that their reasonings exert life has been far more extensive with a list of forty, then extended evinced distress on being told that ed the profoundest influence in than that of the novelist or oratorit to sixty-four,

Home Rule would soon be an he Europe and the world thereafter.

When asked by Thus this reliance on reason caused Deficiencies of Democracy, A thorough discussion of the evil complished fact

of big business groups dominating the surprised Saxon: "But surely, By way of leading up to the ques the political and economic life of you told me you prayed every day to question old political beliefs, aa they had questioned the religious. tion of State Capitalism, we may a Demperney for golfiah ends is in- for Home Rule 1. the Irishman The questioning of political belief now proceed to consider some of possible within the scope of this replied that he did really pray, led to man's right to investigate the deficiencies of Democracy in paper. For our prosent purpose, both that Home Rule might come the phenomena of nature, the the light of twentieth century con- it is sufficient to state that various and that he might go to Heaven, night to rule and mentions. In the first place, our device have been adopted by the but he whis not anxious that either right to protest against injustice. modern democratic governments-re: Federal Government in the United of these events should happen too Those well instruated in history veal clearly, as H. G. Welle poiste States to regulate commerce and quickly. It is indeed & long way

coinbinda and trusts as to Tipperary. remember that after the close of out, "that the onset of Modern restrain

men in the 17th and 18th centuries

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