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TRANSCRIPT
The Speeches of JohnEnoch Powell
POLL 4/1/3Speeches, July 1966-July 1975, 5 files
POLL 4/1/3 File 3, March-May 1968
Image C: The Literary Executors of the late Rt. Hon. .1 Enoch Powell & content '1(:, the copyright owner. 2011.
1/3/1968 The Economy/Industry Exports/Imports Manchester Junior Chamber of Commerce
March-May 1968 Page 89
2/3/1968 Law and Order. Labour/Socialism/Trade Unions . Trade Union Law CPC Conference on Trade Union Law,
DarwenMarch-May
1968 Page 82
15/3/1968 Defence and Foreign Policy Nuclear Deterrent Defence Debate, Conservative Central Council, Bath
March-May 1968 Page 76
19/3/1968 The Economy/Industry Business And Politicians British Refrigeration and Air Conditioning Assoc.
March-May 1968 Page 72
22/3/1968 The Economy/Industry Statutory Wage Control Public Meeting, Bletchley March-May 1968 Page 67
30/3/1968 The Economy/Industry Productivity And Earnings Wales and Monmouth YCs Conference Llandrindod Wells
March-May 1968 Page 60
1/4/1968 The Economy/Industry Exchange Rates Annual Conference, FCS March-May 1968 Page 55
5/4/1968 The Economy/Industry Price Of Gold Burslem Cons. Club Centenary Dinner March-May 1968 Page 52
17/4/1968 The Economy/Industry Industrial Specialisation Aircraft-Marine Products Factory, Bideford
March-May 1968 Page 47
18/4/1968 The Economy/Industry ‘Business For Profit’ Bradford Junior Chamber of Commerce March-May 1968 Page 43
19/4/1968Health and the N.H.S. Education and Literature. Government and Nation.
National Census Businessmen’s Lunch, Wolverhampton S.W. Cons. Assoc.
March-May 1968 Page 37
20/4/1968 Immigration and Social Cohesion Immigration West Midlands Area CPC AGM, Birmingham
March-May 1968 Page 31
3/5/1968 The Economy/Industry Investment And Consumption Liverpool Luncheon Club March-May 1968 Page 26
11/5/1968 The Economy/Industry . Labour/Socialism/Trade Unions . Unions And Inflation Public Meeting, Chippenham March-May
1968 Page 13
24/5/1968 The Economy/Industry Inflation - Government and Nation Blackmail Public Meeting, Gedling, Notts March-May
1968 Page 3
Extract from speech by the Rt Hon.J.EnochPowell,MP, at a public meeting at Carlton-le-WilIows Grammar School, Gedling, Notts
at 7.30 p.m.Friday,24th May,1968.
I recently described the whr,lc, prio*
nr,.7P=' policy as a sustained and succesTul
conspitacy against the common sense of the
public. Unfortunately it is not without pre-
cedent for a small group of intevnted people
to succeed in hoodwinking the vast majority of
their fellow-citizens and thus bringing them
undier their own control. One of the devices
employed is the principle of "divide and rilleV
It is the oldest dodge in the repertoire of
politics, and one cannot help according the
practitioners who have engineered all sections
of the pubdic into acceptance of the need for
prices and incomes control a certain grudging
admiration for the skill and success with whic
on this occasion they have used the old device
Like all artful dodges, it is hasicaily
simple. You tell the consumer and the worker
that the real object is to keep down prices,
which the wicked producers are trying to raise,.
-2-
Then you pop round and tell the producers that
the real object is to keep down wage costs; and
of course they are pleased to hear this, because
that implies higher profits. So the buyers of
labour hope to do the sellers down, and the
consumers hope to do the producers down; and
while they are glaring at one another, the true
culprit, the cause why wages ;:md prices generall)
keep on rising, the government itself and its
expenditure, gets away with murder scot free.
This is the method by which tyrants have
often risen in the past - they make each class i
the community unpopular with the rest, so that
they can always command a majority of support fo
each step in the usurpation of power. This
explains the apparent paradox that a labour
government has put the trade unions in the dock
for causing what is called "wage infltion", no
less than they have put the producers and dis-
tributors in the dock for causing what is called
"price inflation". By tacking nyi the words
-3-
"wage" and "price" onto the simple word "infla-
tion", they have persuaded each class in the
community that the other is to blame - while,
for the benefit or all the rest, there is the
expression "wage-price spiral" to sucgest that
really both of them are to blame alternately.
Of course when there is inflation, prices
rise, including wages, which are the price of
labour. That is what inflation means; the
statement is a mere definition. But it is as
absurd to say that inflation occurs because pric
rise as to say that it rains because the ground
gets wet. You cannot have rainfall without the
ground becoming wet: the one is inseparable from
the other; but we do not mistake the result for
the cause. Yet a prices and incomes policy,
which tries to prevent inflation by forbidding
people to receive h gher wages or obtain higLer
prices, is like supposing that, if one could only
find a way to stop the ground from getting wet,
that would hold off the rain and ensure fine
-4-
weather.
As I say, the spokesmen of the sellers and
of the buyers of labour - the trade unions and the
employers' organisations - have both fallen for
this,Simple trick and admitted their own share of
the imputed blame out of delight at seeing the
blame attributed to the other side as well. But
it is the employers whose capitulation has been
the more disgraceful in itself, and much the
more dangerous in its consequences, because they
have thereby thrown away the entire case, of
which they ought to be the chief exponents, for
a free economy as against a state-managed econom34
Unless the owners and managers of capital
aim at what appers to them to be the best return
obtainable from it, there is no sense or justifi-
cation in private capital and a free economy at
all. The claim that private enterprise in a
competitive economy always tends to direct
resources and effort to the usewhich will give
people generally the greatest satisfaction, can
only be sustained if maximum return - measured o
-5-
course over a reasonable period of time - is the
objective of the producer. Otherwise the machine
does not work. The moment private enterprise con-
sents to "justify" a price except', by saying "I
judge this to be the price whichkill yield me the
best return", at that moment private enterprise
commits suicide. To governments which ask a
producer to "justify" the price he charges for
his goods or services, there is one answer and one
only, which is not self-destructive. It is,
(using the words in the literal, not the abusive,
sense): "mind your own business". The speaker
might add: "If of course you make a law which lays
down the exact price I am to charge, I shall obey
it, and you will be responsible for th conse-
quences, which will be highly unpleasant. Until
then, good-day!"
I am sorry to say that with rare, though all
the more commendable,exceptions this is not the
reply which British firms have been giving. Still
less is it the reply which the secretaries,
directors, chairmen, and all the rest, of their
-6-
so-called representative associations have been
giving. On the contrary, whenever a politician
or a minister or an official has the impudence to
qu4stion them about their prices, they immediate
begin to whine and whimper in a way which would
disgrace the victims of a revolutionary tribunal,
faced with the firing squad. Not a word do they
breathe about maximising profits, or getting the
best return on capital employed. Instead they
talk about costs (as if the cost of an article or
service were an# reason or explanation for the
price); they plead that they haven't raised their
prices for so-and-so many years (as though that
mere something to be proud of); they talk about
their need to finance new investment (as if they
had some self-evident right to exptand); and they
probably finish by burbling something about
exports. In short, they talk about anything but
the sole justification for their cucn ex steuce:
maximum profit.
Many of them do not even wait to he interle-
lrogated, but ero round to the Ministry t'irt and
ask for permission - as though the Ministry had
any right or power to give or to withhold per-
mission - to charge a particular price; 441,4 then
they flourish it at their customers as justificaP
tion, when the mere idea of "justifying" a price
is a contradiction of the private enterprise
system itself. As for dividends, which the
government has never yet had even the shadow of
an enabling power to control or interfere with,
we have been treated for two years now to the
humiliating spectacle of the great household name
in private enterprise going crawling to the
Treasury, to ask what dividend they may be allowe
to distribute, and then pretending to their
share-holders that they are bound by the delphic
oracle df Great George Street.
It would be bad enough if the only reason
for the disavowal of the central principle of
private enterprise by those who profess to
practise and preserve it were fear. No doubt fear
is one counsellor and, as usual, a bad counsellor.
-8-
The industrialist or business man, turned amateur
politicianx for the nonee persuades himself that
it would be"unpopular" or "might be misunder-
stood" or whuld lead to who knows what "diffic-
ulties" with the government if he talked the
plain, straight-forward language of private
enterprise. So he talks the language of social-
ism instead, thus committing two cardinal errors.
ne is to suppose that by standing up to govern-
ment and holding one's ground, one comes off
worse, whereas in fact al) government is a bully
and like a bully takes full advantage of those
who a-e frightened but runs away from anybody who
squares up to it. The otheistake is to suppose
that it is unpopular to state plainly and fear-
lessly the principles on which one acts, whereas
in fact the public has a very fine nose for hum-
bug, and is unimpressed by private enterprise
when it talks the language of socialism. So the
only result is to prompt the thought that if the
very people who represent private enterprise and
make their living by it are read to
it, there must be precious little to be urged in
its favour. Thus they cut the ground from under
the feet oe its exponents.
As I say, fear is a great motive; but it is
not the only one. The prospect that the same
policy which subjects his prices and his dividend
to influence and control will do even more to
keep don the price of labour is the bait with
which the producer, as employer, has been hooked.
He is as unwilling to concede to his labour as he
is to assert for himself the principle of seeking
the best market. Yet the urge of a man to get
the best price for his brains and h's abour is as
essential a driving force in a free economy as th
determination of management to obtain the maximum
return on capital employed. It is t-
ard as ambift self-defeating for private
enterprise to try to deny labour the highest price
the market can offer as to disavow for itself the
maximum profit that can be obtained. The two are
inseparable aspects of one and the same system.
-10-
I am afraid that historically employers,
and above all employers' associations, are very
prone to this temptation. Only last week the
retAring President o the C.B.I. told the annual
meeting that he "hoped no company would consider
withdrawing from their employer organisation in
the belief that acting on their own they could
negotiate a more favourable deal for themselves".
The plain English for those last words is:"pay
their employees a higher wage than 4444 their com-
petitors were able to pay". It is hardly an
advertisement for the private entaprise system
when its leading spokesmen reveal Vlis attitude o_
mind, and hardly calculated to identify private
enterprise with a high wage economy in the mind of
employees and the public. The devilish cunning of
the government is that they have succeeded in
making the employers' associations their accom-
plices in the plot to hold down the price of
labour as part of the guilt-transfer mirmbux
mechanism of the prices and incomes
Extracts from speech by the Rt. Hon. J. Enoch Powe
• M.P. at a public meeting at the Girls' High School,Chippenham, at 3.30 p.m., Saturday, 11th May 1968.
We Live in an age of conspiracies. They are
far more successful and well managed,conspiracies
than the conspiracies ise history. Perhaps th4V
improvement in efficiency is one of the benefits
which we owe to the technological revolution.
At any rate, the age of the o/d-fashioned
conspirator is no more. He no longer gathers
with his fellows in tiny groups, admitted by
paas-word to huddle round a dark /antern in a
dingy garret. Today the conspirators sit in the
seats of the mighty, at the desks of Ministers
and editors; they live in the blaze of continual
publicity; their weapons are the organs of
opinion themselves.
The politics of the last few years have been
little more than a series of conspiracies
conducted by the politicians and the Press againat
the common sense of the public. They have for
the most part been brilliantly, audaciously
- 2 -
411successful. Opposition, criticism, questioning
have been beaten into the ground, not by force
but by something much more efficacious: by
tacit agreement on the part of those who speak
and write to speak and write the same kind of
nonsense, year in year out, until ordinary men and
women no longer dare trust their own wits but give38up the struggle and deliver themselves paiavely
to the guidance and domination of their betters.
The Higher Nonsense is a mightier instrument of
mass repression than machine-guns, grapeshot
and cavalry charges ever were.
The success has been so complete that we fail
not only to be astonished at it, but even to
perceive it.
A fortnight ago people were hailing it as a
unique and paradoxical event that trade unionists
in various parts of the country dow44itoola in
order to show their agreement with what one Tory
politician was understood to have said. The most
-3-
laughable and far-fetched explanations were
invented to account for a happening which seemed to
many people so improbable. The adjeetive out of
all those applied to it which I personally found
the most attractive was vsurrealie*". Yet all
the time something far more paradoxical and 114a-e-umd
was going on, as it had been going on for years,
and the very same trade unionists and their fellow
employees throughout the economy wa were the
examples and the victims of it.
The entire trade union movement has been
brought to accept that the trade unions are
responsible, wholly or partly, for rising prices
and the falling value of money. It is really an
astounding spectacle: the trade unions have
clapped the handcuffs onto their own wrists,
gone into the dock, and pleaded guilty to causing
inflation. Mind, I Gm not blaming them. ae are
al/ lenient when the captives of the 670.4.0m, after
weeks of imprisonment, long interrogations, noise,
blinding lights, lack of rest and nameless
threats and tortures, are brought into court and
4 -
Ilivoluntarily confess to whole catalogues of crimes
against the state. That is nothing to what has
happened to the trade unionists. Al/ the economists,
(almost), all the newspapers (almost), the
political parties and, especially strident/y and
confidently, the party which had been regarded as
their sown", the Labour Party, are at them day
after day declaring that they, the workers, the
men in the street, are to blame for inflation by
doing too little and asking too much.
Everybody around them seems to accept it.
The public at large apparently believes it; the
parson in the pulpit preaches it; unkindest cut
of all, their own trade union in most cases, and
certainty the Trades Union Congress on behalf of
all the unions, admits the accusation and mereltd
argues about who e/se is to blame and about how
their own members are to be "restrained" -
the same word as ona applies to a dangerous madman.common
dho shall complain, then, if even the sturdy/sense
of the British working man gives way at last under
the onslaught? "I suppose', he murmurs, wit must
- 5 -
110be my fault, since everybody says so. I don't
understand how it possibly can be but apparently
I ought to try to be ashamed of myself and to mend
my ways in some unexplained manner,
Yet al/ the time the common sense qf the
people tells them that it is not so. Everyone has
heard the story of how Galileo, as he rose from his
knees after recanting the heragy that the earth
moves round the sun, was heard to remark softly to
himselp 'But all the same it does'. A dangerous
situation builds up when an accusation which they
feel in their bones to be false is fastened mx upon
whole classes of men and women, indeed upon a whole
people. They become resentful, and not without
reason, feeling that everyone is leagued in a
conspiracy against them to pretend that black is
white and innocent i8 guilty.
This indignation qf ordinary people at being
made the butt and aka scapegoat for evils from
which they themselves are the first and principal
sufferers has already gone far to destroy the
Labour Party whose offence in their eyes was not
- 6-
mere/y conspiracy but betrayal as well. In itseU,
would not regard the downfall of the Labour Party
as tragically as Mr. Shinwell does. The evil is
that the thing does not stcp there. The who/e
atmosphere of industrial relations, the whole
attitude sf the citizen to his country and its
future.has been poisoned for years by this
unanimous determination of the -vocal organs of
opinion to pin the blame for our financial and
economic ills where it does not and cannot belong.
To resentment is added frustration.
3xperiments are sometimes carried out on animals,
which, by subjecting them to contradictory
stimuli at the same time, by telling them to
perform incompatible actions, reduce them to a
state of destraoted helplessness. For years past,
Britain has been2e-great laboratory for this sort
of experiment, and her population has provided the
material. They have been told that they ought to
make more profits, that profit is an excellent
thing, and at the same time that they ought not to
receive more profits, because that is against the
- 7-
national interest. Thew have been told that they
ought to oftudiotizthe economic achievements of other
3uropean nations; but when they seek the best price
obtainable for their goods or their labour, they are
told that they are wreching the economy.
remember three years ago happening to say that
man who did not seek for himself and his family what
seemed to him the best return for his effort or his
savings was guilty of economic sabotage; and I also
remember that I was denounced in Parliament and
called a traitor for daring to say such a terrible
thing. The end result cf this process is that
people give up trying to understand what it is all
about, and also give up feeling that it is worthwhil
to try at all. The fashionable word for this
result is "alienation° . The citizen feels alienate
from all parties and all government; for alL of
them seem to be 'agin' him'.
Let it therefore be said, loud and clear,
in the simplest, plainest terms available: the
°trade unions do not cause rising prices, because the
trade unionscannot cause rising prices. Neither
- 8 -
can any other section or individua/ in the
community cause rising prices - neither the
workers outside trade unions, nor the employers,
nor the manufacturers nor the distributors, nor
the shopkeepers nor, for that matter, the
Old Age Pensioners. Inflation, with all its
attendant consequences, comes about por one
reason and one reason only: the Government causes
i t.
To say anything as plain as that is to arouse
a chorus of imprecation. All the c/ever people
start ta/king at once in a loud voice about
'cost push', 'demand pull', and 'monopo/y power'.
But look who is doing the talking. If it is
true that governments cause inflation and that
the citizens are the innocent victims, whose is
the vested interest in denying it? Answer:
governments themselves, and a// those who thrive
on an increase in the power and expenditure of
governments. Governmentecand their attendant
host of commentators and propagandists, have
executed what is perhaps the greatest confidence
• - 9 -
trick of all time, a conjidence trick on a
gigantic scate: they have caused inflation year
after year, and at the same time persuaded
everyone that somebody else was to blame. It is
equivalent to stealing a man's wallet and then
locking him up for thejt. The achievement is
all the more remarkable because the facts are so
blatant.
Whose claim on the national income has been
rising? That of the employees? No: their
money income since the war has barely kept pace
with the rise in prices and in production.
In fact, every year since 1961 the income of
employees has been falling as a proportion of
production, and that proportion is considerably
lower than it was in 1938. What element in
costs has been rising? Wages? Again, no.
In fact, the share of wages in the cost of
turning out a unit of production has been
falling over the last ten years and more.
Whose claim has beerL rising, then? Answer:
the Government's. The Government's claim on
- 1 0 -
production now is haU as large again as it was
in 1938; and although it fell in the ear/ter
half of the 50's, it has been rising again ever
since, until today it is right back to immediate
post-war levels. The effect on costs is even
more startling. If one looks at the money cost
of producing a unit of output, it is the tax
element which has increased over three times as
fast as the payments to employees. Looked at
in real terms, the proportion of costs which is
accounted for by tax has doubled in the Last ten
or twelve years, while the other items have
remained the same or fallen. There is no doubt
who and what has been doing the pushing and the
pulling: it is public, expenditure.
YetAW the unanimous din.year in year out,
lehre574 has been proclaiming the drowses)falsehood
that al/ this.is the fault of the people
themselves, they have been cowed into a condition
of passive acquiescence in the absurd charge.
In that condition, they are vuLnerable to the next
stage of the operation, which is to subject them
- 11 -
to contror—to a dictatorship, benign,
bureaucratic, even parliamentary, but still a
dictatorship, which is to prescribe and enfarce
the whole content of their lives - prices, wages,
production, the lot. This is the operation of
which Mrs. Castle has been put in nominal charge;
but the same machine will be working at full/'
e.1usle churning out the Higher Nonsense, like
some mightli Wurlitzer, chanting: 'Prices and
in-omes poloc,d. We need a prices and incomes
7/e've got a prices and incomes policy.
Our prices and incomes policy works' ...and so
on ad in,finitum.
prefer however, this afternoon not to enter
the gloomy tunnel of that prospect. Let us
instead make the opposite assumption. Let us
suppose that the people of this countru were
somehow to wake up out of the mesmeric trance
in which they lie and with one mighty gust of
Homeric wrath were to shout tc the politicians
ana the economic priesthood, to the planners and
the leader-writers: ' top tc:lking nonsense at us:
It is ljour fault - yours, not curs". Yhat would
- 12 -• they then want some party in the state, and
surely the Tory Party, to say on their behalf?
Theid would want us to say that 1-;overnment hence-
forth will not ride on the backs of the people
but will keep its demands within the growth of
the nation's genera/ wealth. This is something
the electorate cannot do for themselves; they
do not make up the Budgets and estimates, nor do
they frame the programmes of expenditure. Let
the Government do but this, and the sermons and
threats, the controls and boards, the prices and
incomes acts, the dreary apparatus of punitive
Budgets - all can be shot into the dus bin.
Next weals, this Government will publish,
and the week afterwards they will tru to force
through second reading in the House of Commons,
uet another Prices and Incomes Bill. It ought
to be entitled, ° An Act for blaming the British
people and interfering in a// their affairs in
order to dfstract attention from the real causes
and the true remedy of this nation's financial
predicament"; but I suspect the actual wording
will be a shade less candid. This is our
opportunity. This is the Tory Party's
opportunity to speak out „for the people as a
whole. It is not a time to hum and ha, or to
blur the issue by talking about "voluntary" this
and watstunon-statutory° that. These subtleties
are not understood, and for the very good reason
that they are not intended to be understood and
are not capable qf being understood. What we
have to say is that the Government ought to
conduct its affairs, and that we as a Government
will conduct our affairs, in such a way that
the excessive demands qf public expenditure, the
sole ultimate cause of irmflation, cease to plague
the people qf this country and to interfere with
all their plans and alt their actions. Let us
give that promise. Nothing less will do.
•Extract from Speech on "Saving and Taxation"by the Rt. Hon. J. Enoch Powell M.P. to theLiverpool Luncheon Club, at the CarltonMasonic Club, Eberle Street, Liverpool. At
1 p.m. Friday, 3rd May 1968
Viewed from the standpoint of the economy
as a whole investment and consumption are
descriptions of the kinds of work which people(- r i jz
are doing, ' 'By these terms we classify their
work as devoted to providing on the one hand
for future consumption or on the other hand for-
current consumption. As you see, the terrils413rt',C
very misleading; for the true contrast is not4.
between consumption and something else, but between(e/,f
present and future consumptioni. Thus, the
statement that a country is investing, say,
20% of its gross national product is a
description - but a highly abstract, rarified
and over-simplified description - of how its
people are occupying their brains and their
hands. Unfortunately, like many other abstract
over-simplifications, the politicians have got
hold of this one and made a fetish of it.
- -,
one wishes to look into the
future. The amount of ialk consumption here
and now which we are prepared to give up for
the sake of future enjoyment depends not only
on how much larger that future enjoyment will
be, nor on how much less certain it is, but
also on how distant it is in time. Few
would be interested in giving up a
satisfaction now in exchange for dead
certainty- (the pun was unintended) of twice
as much 200 years from now.
I hav used anothe tricky littlp word,
even shorter than that word, "given". It is
the word "we". Who is this "we", that chooses,
and how does this "we" do its choosing? My
anwwer is that the "we" is all of us,
choice is the upshot of all our individual
choices, acting and reacting upon one another,
and that humanity happens to possess a
wonderfully delitate and sensitive instrument
for doing this sort of choosing. I refer to
the rate of interest - in the widest sense of
that term, including all forms of return upon
• investment. .)-71
When anyone says that there is note
enough investment in an economy; he is
making one of two assertions. Either he is
saying that the collective choice of "we"
ought to be set aside in favour of somebody
else's choise, usually his own or the
Government's; or e±owe he is saying that
somebody or something is playing about so
as to make the,rate of interest lower than
it would naturally be. In thiscase, the
obvious answer is just to stop playing about,
and let the capital market through the rate
of interest perform its function of expressing
our collective choice as between present lwart
and future consumption. On the otherhand,
if the intention is deliberately to set our
choice aside, then we are faced with a bid
for domination, no matter how innocently it
may be concealed under the form of a
proposition about what the national percentage
of investment "ought" to be.
_ 5 _So far, however, we. have been looking
at the wt-n-C/3""tina quantity of investment;
but this is just where the over.simplification
of talking about investment in percentage
terms jipts so ludiabus. Anyone can see that
it is better to have less investment in
what produces more satisfaction, than more
investment in what produces less satisfaction.
Indeed, it is easily possible to conceive
that a nation could be worse off absolutely
as a result of increasing its investment
ratio*, In short, what we want is not only
the righta...maunt of investment but invest-
ment of the right sorts; and once again
there are the two meantings of "right" -
right, in the sense that it is what we
collectively choose, or right, in the sense
that it is what someone else, i.e. the
Government, decides we ought to have. If
the choice is to be th.tt
?
',then the same instrument-, but this time
geared to profit, which signifies the
- 6 -
consumer's sIgicitt approval, ,y-
-.4.474-44-e-151---amt once again4 those who
wish to substitute someonce else's judgment
for ours will wish to damage the profit
mechanism and throw it out of gear altogether.
No wonder that the fetish of more investment
has been so remarkably ineffective in the
hands of the politicians, and that all
attempt..cto produce any correlation between
the percentage of investment and the growth
of national 3,Tell-being have proived
successful&
Speech by The Rt. Hon. J. Enoch Powell, M.P. to tho Annual General Meetingof the West Midlands Area Conservative Political Centro at the Midland HotelBirmingham, 2.30 a.m. Saturday, 20th April 1968.
ei.WA jyy1,4A SC-1‘,64,144Th 11,1",21The suprome function of statosmanship is to provide against preventable
evils. In seeking to do so, it encounters obstacles which aro deeply rootedin human nature. Ono is that by the vcry order of things such ovils are notdemonstrable until they have occurred; at each stage in their onset thoro isroom for doubt and for disputa whether they bc real or imaginary. By thcsame token, they attract littlo attention in comparison with curronttroubles, which are both indisputable and prossings whonce the besottingtomptation of all politics to concern itself with the immediate present atthe expense of the future. Abovo all, people arc disposed to mistake pre—dicting troubles for causing troublos and oven for desiring troubles; "ifonly", they love to think, "if only people wouldn't talk about it, itprobably wouldn't happen". Perhaps this habit goes back to tho primitivebelief that the word and the thing, the name and the object, arc identical.At ail events, tho discussion of future grave but, with offort now, avoidableevils is the most unpopular and at the same timo tho most necessary occupationfor tho politician. Those rho knowingly shirk it, deserve, and not infro—quontly receive, tho curses of those who come after.
A week or two ago I fall into conversation with a constituent, a middle—aged, quite ordinary working man employed in one of our nationalisodindustries. After a sontonce or two about the weather, ho suddenly said:"If I had tho money to go, I wouldn't stay in this country". I made somedeprecatory reply, to the effcct that even this government wouldn't last forover; but ho took no notice, and continueds "I have three children, all ofthem boon through grammar school and two of them married now, with family.I shan't bo satisfied till I have soon them all settled overseas. In thiscountry in fifteen or twenty years time the black man will have the whip handover tho white man".
I can already hoar the chorus of execration. HOT dare I say such ahorrible thing? How dare I stir up trouble and inflame foelings by repeatingsuch a conversation? Tho answer is that I do not have the right not to doso. Hero is a decent, ordinary follow Englishman, who in broad daylight inmy uwn town says to me, his Member of Parliamont, that this country will notbo worth living in for his children. I simply do not have the right to shruFmy shouldors and think about something clse. What ho is saying, thousandsand hundreds of thousands aro saying and thinking — not throughout GroatBritain, perhaps, but in tho areas that aro already undergoing tho totaltransformation to which there is no parallel in a thousand years of Englishhistory.
In fifteen or twenty years, on oresentt-onds, there will be in thiscountry A million Commonwealth immigrants and thcir descendants. That is notmy figura. That is the official figure given to Parliament by the spokesmanof thc Registrar General's office. There is no comparable official figure fort year 2,00C# but it must be 3 region of 5-7million, approximatoly
r
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ono-tenth of thc whole population, and approaching that of Greater London.Of course, it will not bo evenly distributed from Margate to Aberystwyth andfrom Ponzance to Aboydeen. Whole areas, towns and parts of towns acrossnEngland will bo occupiellby different soctions of the immigrant andimmigrant-descended population.
As time goes on, the proportion of this total who arc immigrant-descendants, those born in Pix,gland,Lwho arrived hero by oxactly the sameroute as tho rest of us, will rapidly increase. Alroady by 1985 the native-born would constitute the majority. It is this fact above all which createsthe extromot-:rgency of action now, of just that kind of action which ishardest for politicians to take, action whero the difficulties lio in thepresent but thc evils to be prevented or minimisod lic several parliaments
.)Fahead. 19"e'ce-4'/A-(" ,1"`•il -The natural and rational first quostionwith& nation confronted by such
,a prospect)is to ask: "how can its dimensions be reduced?" "Grantod it be notwholly preventable, can it be limited, bearing in mind that numbers are ofthe essencellle significance and consequences of an alien element introducedinto a country or population are profoundly different according to whether
-.1-that elemont is 1 per cent or 10 per cont. 'rho answers to the simple andrational Question are equally simp;.e and rationalt by stopping, or virtuallystopping, further inflow, and by promoting the maximum outflow. Both answersare part of the official policy of the Conservative Party.
It almost passes bolief that at this moment twenty or thirty additionalimmigrant children are arriving from overseas in Wolvorhampton alone everyweek - and that means fifteen or twenty additional families of a decade ortwo hence. Those whom tho gods wish to destroy, they first make mad. We must be mad, literally mad, as a nation to be pormitting the annual inflowof some 50,000 dopend'Oxits, who are for the most part tho matorial of thefuture growth of the ithmigrant-doscended population. It is like watching anation busily engaged in heaping up its own funeral pyre. So insano axe wethat we actually permit unmarried persons to immigrate for the purpose offounding a family with spouses and fiances whom thcy have never seen. Lot
APolle:41 (11:14-44" 4—no-one suppose that thf4flow of dorondonts w-i-±- ,u cma ica Joy tail of t Onthe contrary, even at the present admission rate of only 5,00C 0 year byvoucher, there is attfficiont for a further 25,000 dependents per annumad infinitum, without taking into account the hugo roservoir of axistingrelations in this country - and I am making no allowance at all for fraudulententry. In these circumstances nothing will suffice but that the total inflowfor settlemort should be reduced at once to negligible oroportions, and thattile nasessary legislative and administrativo measuros be taken without delay.I stress the words "for sttiemont". This has nothing to do with tho entryof Commonwoalth citiztns, any mcro than of aliens, into this country, for thepurposes of study or of improving their cualifications, l e (for instance)the Com onwealth doctors who, to tho odvanti- of their OWE countries, havo
-3-
enabled our hospital service to be expanded faster than would otherwise have
boon possible. These are not, and never have been, immigrants.
I turn to re—emigration. If all immigration ended tomorrow, thd reto of
growth of the immigrant and immigrant—descended population would be
substantially reduced, but the prospective size of this element in the
population would still leave the basic character of the national danger
unaffected. This can only be tackled while a considerable proportion of the
total still comprises persons who entered this country durin thc lest ton
years or so. Hence the urgency of implementing now the second element of the
Conservative Party's policy: the encouragement of re—emigration. Nobody can
make an estimate of the numbers which, with generous grants and assistance,
would choose either to return to their countries of origin or to go to other
countries enTious to receive the manpower and the skills they represent. No—
body knows, because no such policy has yet been attempted. I can only say
that, oven at present, immigrants in my own constituency from time to time
come to me, asking if I cam find them assistance to return home. If such a
policy Toro adopted and pursued with the determination which the gravity of
the alternative justifies, the resultant outflow could appreciably alter the
prospects for the future.
It can be no part of any policy that existing familiss should be kept
divided; but there are two directdons in which families can be reunited, and
if our former end present immigretien laws have brought about the division of
families, albeit voluntar- or semi—voluntarily, we ought to be prepared to4arrange for them to be re—united in their countries of origin. In short,
suspension of immigration and encouragement of re—emigration hang together,
logically and humanly, as two aspects of thc same approach.
The third element ofthe Conservative Party's policy is that all who are6.7.0..
in this country as citizens 45,A..er be equal before the law and that there
shall be no discrimination or difference made between them by public authority.
Is Mr. Heath has put it, we will have no "first—class citizens" and "sucond—
class citizens". This does not mean thet tho immigrent and his descendants
should be elevated into a privileged or special class or that 1=Icitizen
should be denied his right to discriminatelin th,e management of his own
affairs between one fellow—citizen and anothor)or that ho should be subjected11^44-4 -A-Vat.414to ,!Ga:-,1••---1 as to his reasons and motives for behaving in one lawful manner
rather than another.
There could he no grosser misconception of the realities than is
entertained by those who vociferously demand legislation as they call it(e
"against discrimination", raether thev be lea-'er—writers Of the same kidney
and sometimes on the same newspaperrhich year after year in the 1930's tried
to blind this country to the rising peril -which confronted it, or archbishops
who live in palaces, faring do1ioatclwith tho bedclothes pulled right up
over thoir -Heads. They have got it :exactly end diametrically -wrong. The
discrimination and the deprivatien, the sense of alarm end of resentment,
lie* not with the immimrant population but with those among whom they have
come and are still coming. This is why to enact lemislation of the kind
before Parliament at this moment is to risk throwing a match onto gunpowder.
The kindest thing that can be said about those who propose and support it is
that they know not what they do.
Nothing is more misleading thanncompard4 n bo491w4;en the Commonwealth
immigrant in Britain he American negro. The nemro population of the
United States, -which was already in existonco bofore tho United Statos became
a nation)started literally as slaves and wore later given the franchise and
other rights of citizenship, to the exorcize of which they have only
gradually and still incompletely come. The Co:monrealth immigrant came to
Britain as a full citizen, to a country which know no discrimination betTeen
one citizen and another, and he entered instantly into the possession of the
rights of every citlzen, from the vote to free treatment under the National
Health Service. Whatever drawbacks attended tho immigrants - and they wore
drembacks which did not, and do not, make admission into Britain by hook or by
crook appear less than desirable - arose not from the law or from public
policy or from administration but from those personal circumstances and
accidents which cause, and always will cause, tho fortunos and experience of
one man to be different from anothor's
But while to the immigrant entry to this country was admission to
pr vileges and opportunities eagerly sought, the impact upon the existing
population was very different. For reasons which they could not comprehend,
and in pursuance of a decision by default, on which they were never consulted,
they found themselves made strangcrs(in.tleir own country. Thoy found thoir
7ives unable to obtain hospital beds in childbirty their children unable to
obtain school places, their homes anl neighbourhoods changed beyond recogni-
tion, their plans and prospects for the future defeated at work they found
that employers hesitated to apnly t the immigrant workor the standards of
discipline and competence rewired of the native-born worker; they began to
hear, as time rent by, more and more vcicos which told them that they wore now
the unwanted. On top, of :leis thrw now laa r that a one-way prviloge is to
be established by act of parliament a law, which cannct and is not intendod,
to operate to protect th.em or redress their griovancos, is to be enacted to
give the stranger, the disgruntled and the agont nrovec,7;tcr the power to
pillory them for their private actions.
In the hundreds upon hundreds of lotterm I received -zhen I laet spoke
on this subteot tmo or three months P.27o, therc was ono strikina feature whichwas largely nor and which I fir1,1 ominous. All Iiembers cf Parliament arc usd
to the typical anonymous correspondent; but what surprised and alarmed me was
the high proportion of ordinary, docent, Sensible people, writing a rational
and often oll-ednoated letter, who believed that they had to omit their
address bocauso it van dangerous to have conilLitto-.: thesciwco to paper to a
hember of Parliament a _ecinm with the 70073 1 'cL-y1ox=essod, and that theyo ald riak iDthcr penalties or reprioals if ,ney 07..rr_ known to hove done so.
The sense of being a porsecuted minority which is growing among ordinaryEnglish people in the areas of the country which are affectod is somethingthat those without direct experience can hal-4.1y imo#Lno. I am going to alloy: just ono of those hundreds of ocobie to speak for me. She did give hername and addross, which I have dotached from the Jotter which I nm about toroad. She was writing from Northumberland about something which is habeeningat this momert in my own conatituency
"Eight years ago in a respectable stroet in Wolvorhampton a house was sold toa negro. Pow only ono white (a woman old-age pensioner) lives there. Thisia her story. She loot her husband and both her sons in tho war. So sheturned her seven-roomed housel her only ascot, into a boarding house. Sheworked hard and did well, paid off her mortga#e and beat to put something byfor her old ago. Then tho ihmmigrants MO-Ted in. With growing fear, she sawone house after another taken over. The quiet strcet became a place of noiseard confusion. Regretfully, her white tonants moved out.
Olho day after tho last one left, she was a:nakoned at 7 a.m.by twonegrocs who wanted to use her phone to contact thoir ombloyer. When shorctfused, as she would have refused any strangor at such an hour, she Wasabused and feared she would have boon attacked but for tho chain on her door.Immi0Tant families have tried to rent rooms in her house, but she alwaysrefused. Hor.little store of money wont, and after paying her rates, sho hasloss than £2 per week. She wont to abrly for a rate reduction and was soonby a young girl, who on hearing she had a soven-roomed house, suggested sheshould let uart of it. When she said the only people oho could get worenogroes, th,..) girl sail 'racial erojulice won't get you aJnywhere in thiscountry'. So she wont home.
U l'he telephone is her lifeline. her family ray the bill, and help her outas best they can. Immigrants have offered to buy hor house - at a price whichthe prosoective landlord would bc able to recover from his tenants in weoks,or at most a few months. She is bocoming afraid to go out. Windows arebroken. Sho finds oyercta pushed through_ her letterbox. When she goes tothe shops, she is foilowel by children, charming, wide-grinning picc4nies.They cannot speak Englioh, but ono thG7 know. "Racialist", they chant. When the now Race Rolotions Eill is bassed, this wogan is convinced cfft wil7go to briscn. Lrd is sh so 7ironp7? I begin to wonder."
Eno other dangorous dolusion from .!:hioh tnoso who. are wilfully orotherwise blind to roalitios suffor, is summed ur ih the wo1-1 "intcgration".To bo intograted into a population moans to become for all practical purcooesindistinguishable from its other 1TOW, 7t on ioles, where there aro marked ph7sical differences, osbocially of colour, integration is difficult,though, ovr a period, not impbssiblo. Tncre are among tho Commonwealthimmigrants 7;L:: tc, li7 neTe in the last fifteen years or so, many thousands whose wish and 1-::.-.77.2Dc;is to be integrated 'ci whose everythought and endeavour is 'ont in that diroction. •E't to inrgine that such athing enters the hoads of e groat and .72,ToNingmajirity of i=j7canto and their
—4—
descendants is a ludicrous misconception, and a dangerous ono to boet.
arc on the voryge hare of a change. Hithorto it has boon force of
circumstance: and of background which has rorderd the vory idea of integration
inaccessible to the :greater part of the immigrant population — that thcy never
conceived or intondod such a. thing', an: that thoir numbers and physicalA4v4'
concentration meantkthe pressures to7ards integrtion which normally bear apon
any small minority did not operate'. 1.077 7o are seeing tho growth of zpositive
forces acting against intomration, of vested interests in the preservation and
:sharpening of racial gnd ifferonces, ,cith a viow to the cacrciso of
actual domination, first ovor follow—immigrants and thon over the rest of the
population, The cloud no bi,ggor thmn a man's hand, that can so rapidly over—
cast the sk7T, has been visible rocontly in Wolverha=ten and has shown signs
of sproading cuickly. The words I aro about to use, rarbatim as they aPpoared
in the local press on 17 February, are nott mine, but those of a Labour Membor
of Parliament who is a hinister in tho brosont Government. "T'ho Sikh
community s campaign to maintain customs aar --ro'--rio tu in _Britain is much to
be regrcAtesi. Tiorking in Eritain, particularly in ths public services, thoy
shoali be propared to accept tho terms and conditions of their employment. To
claim special communal rights (cr should onc say rites?) loads to dangerous
fragmentation within society, This communalism is a canker whether practised
by ono colour or another s is to be strongly condemnel." /Ili credit to John
Stonohouse for ha-ging lid the Insight to poTtivo thot, and tho courage to say
it,.
For these dangerous and divisive eloment the logisabion croposod in the
Face Foltions Bill is the very oabulam mhey nan t flouris4. Fore is theirmeans of thoc::nn that the immigrant communitico can cranise-sto consolidate
thoi-c members, to aitate and camp,a4n ainst their follow citizens, and to
esorawe and deminato te.) rest 71th tho lesal 7oapeho igion the ignorant and
the ill—informed h,:vo TrOni let. Lo I lock ahead, I am filled with foreboding.
Like tne Roman. T soom to 7-s:eo "tlle 17miver Tiber foaming with much blood".
That tragic and intractable phenomenon ThiC?L 72-.-'6o'n with horror on tho other
sidc of the Ltlantic but which the're is interwovon tith tho history aMevistonco of the States ftsolf, is coming u_pcn us harc by our own volition
and our 0,7)n nolcos. Inieed, it has all bat come. In numerical terms, it
will bo _of Lmerican proportions long before ths ciod •f the century. Cn17
rosolute and grgont actlon t;lll avert it ovon f107. 7nether there will bo the
v;ill to demand and obtain that action. I dc net know. JILT , know is
that to see, and not to speak7 would be tne great botrayl.
Extract from speech by the Rt. Hon. J. EnochZowell at a Businessmenls,Lunch of.theoolverhampton soutn—wes ...onservativeAssociation at the Moline-1.x Hotel, Wolverhampbn1 p.m. Friday 19th April 1968.
"77-77,644 j'IWCt77-- The mania of the questionnaire bids fair
to be one of the curses of our age. T#e
amount of time which people who hare something
better to do spend in completing perfectly
futile forms and answering utterly fatuous
questions would, if put to better use,
represent a considerable addition to our
>"--
nat'onal inc
There are signs of this mania spreading
to the general register office, which conducts
the national census. I don't know whether any
of you was fortunate enough to be selected as
a recipient of a recent communication from the
Registrar General, enclosing a questionnaire
which I hold in my hand. If you were, and
have not yet completed it, you rill have
received a further request, dated January this
elling you that "the response has
been excellent", and that "most -f the people
approached have sent in their completed forms".Assuming tl-,at this information lakes youthorouFhly ashamed of your f'Olure --s far to
cooperate, you will I hope address yourself to
filling in the questionnaire.
It starts off swimmingly: "Have you ever
had an operation for i?:allstones?" to which
most people should have little difficulty inreturning a straight affirmative or negative.
Things soon begin to thicken however. You
have to write down 'how many cups of tea,
coffee and other hot beveraes (cocoa,
chocolate, 'Ovaltine' — is that advertising!? —
etc.1 you consume before breakfast, at
breakfast, morning break, midday meal, tea—
time, evening meal, bedtime and other". I
like "other" presumably that is for the
people who brew up at 2 in the morning. Butthat's just for a start. en the ney.toage
we get down to business. "How many tea—
spoons of sugar do you take" in eachbeveraEe, and "are the spoons level or
heaped?" (Ore can't be too careful what one
does in a modern state!) Then comes a bit
of personal history: "have you alwaz,,s taken
the same amount cf sugar in these beverages?"
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We then turn to solids. On an "averageday" how many slices of bread do you eat': Anddon't just imagine you can slap down any oldfiEure. You have to pick youx way through"average slice", "extra thick" and "extra thin'cut off "large loaves" and "small loaves"; soit's lucky fcr you if you only eat "rolls ".
The candidate is now in a position toapproach the more advancedparts of the paper.For instance: "how many fizzy drinks., non—alcoholic" by the glass do you drink per week,or, if you take sugar on your breakfastcereals, are the spoons you use tsa s000ns ordessert spoons, and are the spoonfuls level crheaped? Don't fill that in if you are like me,and prefer porridge; for there is a separateentry on its own for those who taLe porridge.
Now I am sure yon ne ' to knowt7qat the coot of this lark is being out ofthe research funds of een ali:,:abet7a Colle7e, and that you Th7e been partioi'
in a diet ar. 'urve:for to ,,,:nefit 2,f
leet yeu not 'oe so e:eeased if ,y71:. 7St
allothr form, dated Larch of this also
from the ceneus office, which aeks (hold it:)
for details af your earnings in the financial
year Apri1 19-66 4 Larch 1967. All quite
confidential, of CoUr30; guaranteed nc leaks
even to 'other government deoartments" (RUE34;1
whichl); and you really cught to feel
flattered, because this is a servey for the
Derertment or Education and 3oince on the
earnings 4' 2eople with particular academic.,
profeseional or vocational qualifieations'.
The questions include, for instance, whether
one had "selosidieed or free housing cr car
for own dee previdild by the employer" and
"what was the total net profit before tax
,but after dedIcting expenses, from aelfa
ployment in the financial year 1966/7.
T.;ow, I have it on the aethority of the
Registrar General that "sugveys ef this: tyee
are a relatively new development of ear een-
sus work". "Each ene," he eays, "hao so far
been jaiged on its eerite". fhie ie jest as,4e11; for •f these are e
exee-1..
—
the "merit", then this promising new .7rewth
of volunteer bureaucracy had better be stamped
on here and now. A glimpse of what will
otherwise be in store for us is eforded by th
complaisant self—satisfaction of the authors.
"We feel", says the Re,,zistrar General, "that
to use the census as a sample frame for this
kind f enquiry is a valuable deve.Lopment and
a step forward in making the fullest use of
the material we have. ae approach to the
public has to be made by as because we cannot
give anyone outside the census organiatioh a
list of names and addresses".
ometimes it is a minor detail which
casts a flood of light upon the malaise f a
whole scciety. 7ais inciDient 1:ervereion of
he cenTae machinery deril'es from the 7ery
same general assumption which is ervadirig and
stranling our life and oar economy, nee:y,
he conviction that tlie citizen is perfectly-
aff;Ilo:
unlos nxia-.7:ad controlled,
nlanned and (.).,7i;:anis ,
frc
which 'Dureaucrats have condut‘ted intc hisbenihted behavitqr. he Hatin=,1 Econol::ic
Plan cf the — 7:e are threatened ',vithancther, kno7 — and the Diet and helth
Survey cf the 'ae: eral 2e7ieter Cffice, they areail branc'f:es, scme tiny, s=e larize, of this
sas, ;ervasive, tciscncus uirae treecsntemlot for the inds-,::endence, liizn-lty and
cam2etence 32 the individual.
'.2cu have maie ''•-)uoineeo -7or rfiYtheme. fm•..-,•. have not done oo from ahv nar,:-ow
motiveo of self-interaat. In-deei, I know thh,t
:oany pf your metnbere. ara ".en,-7a.zod Ln
'fc.. have taken thIo t'oeo-,e
hecaee Lbt"on7'.;:ction that the 1,rofit
ir.ore than, ah7 other 7yote:7; devLool
-.7i7ao" evezvhoi7, rich ah.•7 oort
available cnance tf hat the;,, -:•ohoLb 7stOin7 it. If yo,..1, "dld not 'oel1e7e t'at
"..-:sineoo for jor,ofit ,i;ac Ln tha
intereot, :fohl wt-_,11,1 not otand '+
Of co.,r':.e :ao do n-)t '"ay that.
motive al""Nayo -"oado to the -:':eet aoonoL-Oo
man 1:911.1 ,H.i0•2that. dc
you mwet zay-,
ethci mi 7111 7_oad to azythin,:'" och 7ooi
economic deod--,7"no _-,00n the 7,,ha'.e.
(1;az2t IJIck toe "!;inhere', ,1,•Tou - ahd
- then '„ertain7,::- noo• d.•.• eloe can':
: hear add eotto ,-ctoe 'ahd
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instance, that undefinable yet insistent im—perative known as "fairness". 3at beca„zsea counsel is a counsel of perfection, that 4sno excuse for imoring it and doing the exactopoosite. e ought to strive to get as near to the ana tainable as possible; and you,whose theme is "business for profit', oa.27ht
to keep us up to the mark by demanding t#eutmost neutality in the tav system andscrutinizingevery departure from neut7-alityto see if it is unavoidable or can beeliminated.
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NEWS SERVICEReeasetiam 20.00 Hours/5th pril, 1968
309/68
Extract from a speech by the Rt. Hon. J. EnochPOWELL,M.B.E., M.P.,(Wolverhamton S.W.),Opposition Front Bench bpokesman on Defence,at the centenary dinner of the Burslem Conser-vative Club, an Friday, 5th pri1 , 1966.
Throughout this week the brice of gold on the London
market has fluctuated around 37 or 36 dollars an ounce.
This may seem a strange observation with which to celebrate
the centenary of a Conservative club in the Potteries.
Yet that fact carries a message of immense encouragement
and cheer to all of us in the Conservative Party. Rightly
understood, it is one of the best pieces of news that has come
our way for quite a time.
Yoa probably know the story of the man who grabbed a
rope while falling down a dark shaft and just managed to
hang onto the end of it. Hour after hour he swung there,
enduring agonies of fear and exhaustation, screaming in vain
for help. .Lt last his fingers could maintain their hold
no longer and he fell three inches. The bottom had been
there all the time, dry and firm, just beneath his toes.
Three weeks ago do you remember the fateful Ides of
March, the gold crisis, the blateing headlines round the
world, the Chancellor of the Exchequer coming down to Parlia-
ment at three in the morning in an atmosphere like Chamberlain's
announcement of war with Germany. Then the financial pundits
of the nations lushed helter-skelter to aahingtrIn,,and the
world held its breath while their deliberations continued.
/hat was it
issued by Pubhcity Department, Conservative Central Office, 32 Smith Square, Locdon SW1.01-222-9000
309/68 POWELL - 2 -
What was it all about ? bimply this (please try not to laugh
while I tell you): for twenty-two years W'estern mankind had
been convinced that utter disaster and confusion would ensue
unless gold was worth.35 dollars an ounce, no less and no
more. In order to maintain that sacred equation, called
"the key-stone of the world monetary system", the United
States (which looked upon it with much the same-reverence as
the star-spangled b:ssmep itself) continued to sell gold at
35 dollars an ounce until the huge accumulation in Fort Knox
was in sight of exhaustion, while it plared one set of rest-
rictions after another upon the freedom of .Lmerican citizens
to travel and invest.
To the .Lmericans these hardships were novel; but of
course to us they have long been familiar. We affect to
look with horror upon earlier centuries when it was a crime
to dispute a tenet of orthodox belief. 1i4e do them an in-
justice. Here and now it is a crime for an Englishmen to
dare to put the proposition that one ounce of gold equals
35 dollars to the practical test by buying and selling. You
had better be caught with hard drugs on you than buying or
selling gold.
time went on, the most extravagant ex-,Dectationsmounted.
The more stubbornly the central banks maintained that gold
was worth no more than 35 dollars an ounce, and the more it
cost "dmerica to maintain the assertion, the more people dis-
believed it and the higher they -pitched their estimates of
the true or free price. .t last the rope-hanger had to
loose. The United States itself could not cling on any
longer. In future they would only sell gold at 35 dollars an
ounce to other central banks: the rest of us scrAtle for
what we wanted in the open market./This week
309/68 PaivELL - 3 -
This week in London the open market price was two or three
dollars.up - yes, sir, just two or three dollars. All that
agony all these contortions, all the pretences and protestations,
all the restrictions and the regulations and the criminal
offences - all for two or three dollars, a margin of well
under 10 per cent.
'-hat a lesson there is for us here. If once you stop
price from working, there is no end to the difficulties into
you which elunge deeper and deeper. "Oh what a tangled web
we weave, when we first practise to deceive •.. The inSidious
thing is that when reality is left behind, when genuine price
is abandoned, eeople begin to fear the truth and want to be
protected from it. They become a prey to all sorts of nameless
dreads and superstitions. That is the path on which this
country is set by socialism to-day. The Socialists say:
Vie dare not have erices and wages op nly and freely fixed
in the market; that wpuld be too dangerous; they must be
controlled: Then people begin to imagine that the gap between
the true ;Tice and the artificial price - between the mans
permitted earnings and his market worth - must.be very g-reat,
and so more pressure builds up, and more controls are called
for, more criminal offences are created, more antagonisms
arise between different interests. V4e have to come to facts
in the end. In the end they force their way through and make
themselves effective. How much better to face them steadily
and continuously, by letting Price - genuine, com;etitive,
market price - tell us the truth. If we did, we shoud
often find how narrow is the intervening sap, which sel,arates
our controlled, confined and tildid existence from the self-
assurance and the unfettered choices of free men.
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BRITISH REFRIGERATION AND AIR CUNDITIONIUG ASSOCIATION
S esch by the Rt. Hon. J. Enoch Powell M.B.E. M.F'. at the Annual Luncheon oe 1 March 1968 at the Euro a Hotel London.
Mr. Chairman, my Lord, Ladies and Gentlemen,
I am often surprised that you people in industry have any patience at all
with us in politics. The fact that you continue to associate with us - ney, more
- that you are so generous from time to time as to make us your guests on an
occasion like this is a standing paradox. For do we not spend our time alternately
thwarting you and patroniaing you by our acts and by our words. Nothing is a more
popular activity for politicians than telling industry how to run its own affairs.
We seem to be convieced that unless we form councils and committees amply staffed
with bureaucrats and academics you wouldn't be able to get on at all in the hard,
practical world where you have gained your experience and made your way. It
doesn't occur to us that you would haee made arrangements for the reforms of
education and teainiee wheel necessary in your respective industries; it doesn't
seem to occur to us that you have been buseeas the Chairman has juat mentioned,
about training within your own specialities. Ana so we pass legislation, we,set
up boards, we impose levies and we multiply the paper and the bureaucracy. We
don't seem to think that you have the intelligence to identify the facts which
are important to you in your business and to set about acquiring them. Your
Association has, and here again the Chairman has referred to this, has devoted
effort on behalf of its members to securing and aasembling that information which
you know is relevant and which you think it worthwhile paying to get. But we,
knowing nothing af all this, have set to work to establish censuses of production
and to send out questionnaires which add to the labour of industry and to its costs
whilevery often contributing little, if enything, to its illumination. And then look
at what we do with tilt!economy - At some times we heat it up so that air conditioning
is urgently called for! And then again quite suddenly we plunge it, we plunge down the
scale of the thermometer with a speed which the most efficient refrigeration system
night envy. 'Stop - (k)1 has been part of our special contribution to the world in which
you have to live. And so we come around and approach you in fatherly fashion and
exhort you to do those thinge which ought to be done in the nutionel interest. ae
appeal to your patriotism to get the nation out of the difficulties into which the
politicians have brought it • and we offer the cold comfort cf pe1it1eF1 commendation
to those who do, in response to our invitation, thing') which they woularat dream
of doing on sound commercial principles. I say ull this, while it renders it
inrinitely gratifying to a politician that he should still find himself kindly and
even honourably treated by your industry, adds up to a veey substantial paradox;
the paradox expressed in the simple question 'Why do you put up with it?'
• 2 •
Now I think that those who are invited to an occasion such as this as guests, whilethey're duty bound to refrain from telling their hosts their business ought to seeif there is anything from their own profession which might shed light upon questionsthat may be puzzling their hosts. So I should like to offer to you the explanationof this paradox - of this strenge fact that despite the goiegs-on of the politiciansyou still seem to be linked together with them in an almost aiemese twin relationship.Why, I notice that amongsithe objeots of your Association, admittedly subject toconfirmation at ennual General Meeting, March 1968 but no doubt the Chairman willtell me if you failed to confirm object number 3, object number 3 is to providethe government eith facilities for conferring with thomengaged in the industryand you know what that means. Why is it, why is it then that you can't keep awayfrom usl...that you are like moths around the political flame. Let me offer youmy explanation.
Prom the earliest times of our human species aen has felt the necessityfor methods of escaping, if only for a short time, from the harsh realities of thereal world as it was actually created. Some of these mcIthods are of a physicalcharacter. Many of them are amongst the most pleasant of our minor vices. Othersare psychological appliances. But there is a whcle raeae of these methods whidhmankind has adopted to soften the impact upon himself of the ineluctable faotsof the inhuman world and resort to politicians is one of those methods. Youuse us from time to time, and the present age is a supreme example of this, youuse us to deoeive you. You use us to help you to believe that the le:possible ispossible. To believe, for example, and this has been the aepiration of human naturefrom the very start, to believe that one can have the cake and eat it. Now we havebeen ready with our devioes for doing tnis. The politicians have devised methodsfor spending without taxing, believe it or not, and of borrowing when no-one loans.And for a time, az _with any other narcotie, the effects are pleasant, if notstimulating. But there is always, with this narcotic, as with others, a kick backor a hangover and in that particular instance the hengover is keown as inflation.Another deep yearning of humanity in for stability. Lan liven in a eorld of constantand unforseeable change. And to all living organisms, however successful they maybe ia adapting themselves to change, the necessity of doing so is in itself demandingand often highly unpleasant. So we all resort to means of believing that there can,in this changing world, nevertheless be contrived - stability; that et .1:/rate
the thinge which affect US can,by some magical process, be held absolutely stationaryso as to relieve us of the impact and the consequences of alteration. And for thisyou apply to the politicians. And the politicians have been ready to oblige ty,ypresenting a megical procese, by telling a fairytale designed to evoke a world inwhich, unlike the real world, there is stability of those thinge that, if fact, areconstantly changing. how we have just seen the payoff, the hangover from teis narcotic
- 3 -
in the last five days. The greatest nations upon earth have made it an act - had
made it an act - of faith that the relative supply and demand for gold and for their
national currencies was exempt from the general law of change and had henceforward
become one of the unalterable facts of the universe. The American people regarded
it as part of their national honour to assert that the price of gold In 1934 must be
the price of gold in 1968 and forever. But, at last, reality broke in. Chaney had
to be acknowledged but not until the attempt to pretend the chanee was not taking
place had cost the American nation and other nations very dear indeed over a series
of years and had imposed quite unnecessary limitations and hardships upon their
industry, their commerce and their citizens. But hardly is one pretence abandoned than
you expect your politicians to present you with another. And in the vere moment in
which at last that pretence was given up, the nations proceeded to assert with
undiminished vigour the equally absurd proposition that the relative supply and
demand for the principle paper currencies of the world was destined to remain
unaltered and unalterable. And no-one can predict the hardships to which you end
others are destined to be subjected before we are brought to admit thatchange,
inevitable Change, applies to this human relationship as it applies to all others.
And that the effort to pretend chaege away from the real world, only recoils at the
end of long periods of growing discomfort and inconvenience upon those who attempt
it. Sometimes we resort to an entirely unreal world to some new invention to achieve
this purpose and in that class falls the now international currency which men to-day
are imagining. They are doing so because it enables them to go on believing that if
they can invent something n•w then they can endow it with those characteristics
of changelessness which they have found to be imposeible in the old things that they
know already. Now as I was saying we are living throw;h a veey bad period for the
narcotic use of politics. It is the addiction, the drug eddiction of our time,
the almost universal addiction to implorethe politician to wishaway the real world;
and we are suffering correspondingly. You in industry suffer correspondingly. And
I am, therefore, here toeday to give you sound advice - to get yourselves cured of
this addiction; and to offer you, to suggest to you a useful and simple anti-narcotic
which, if taken and if persisted in over a course of time, will liberate you from
your addiction to the politician and will render you independent of his fairytales
and his magical practices. For mankind has devised a method, not of preventing
change but of coping with change. It has devised a method very germane to the life
of industry and commerce, of expressing all the changes that aan happenin a wey that
makes it possible to cope with them and to hendle them. And this device, this method,
is known as price. For the function of all price is to tell those whom it concerns
about the changes which are taking place. As long as we let price do it's work in the
- 4
world then Change, though it will continue, though it will not be deprived of it's
unexpected and unpleasant characteristicsowill have no power permanently to harm us.
Observe, that always the politician, when you employ him to deceive you, starts
by falsifying price. He rigs the international price of money; he rigs thedomesticprice of money; he manages the price of articles; he conrols the price of labour.
This is itself the sign and the proof that where price works, delusion cannot be;
that the restoration of price is always the end of delusion. And so, I offer you
to-day the simple remedy for your addiction to the politician, and for all that you
suffer at his hands. Hold fast to price. Let him keep his hands off prices of all
kinds. Make yourselvys the champion of price in all its forms from free exchange
rates,to profits, interest rates and the rest. Grapple price to your bosoms and you
will be free from the evils which otherwise will come from asking the politicians
to erect for you a wish fulfilment world in which those things would be made possible
which cannot be possible to man. here is an industry which, I believe, is destined
to climb into spheres and to spread into areas as yet barely suspected. Its guide
and its stimulus in doing that, its evidence of those changes in the world which will
create the demand and the opportunity for its work lies simply in price. So. If you
and we, industry and politicians, are to live together in a fruitful co-operation
and not in this nightmare embrace which has held us together in recent years let
it be the businese of both of us in our respective spheres to respect the truth,
and particulaxly, to respect the truth as it is expressed by price. If we do that
then we can have true friendship together. You can do your work the work which
you know how to do and I can be set free from pandering to the delusions of the public
to do the real work of government and such real work there still is to be done.
F4411•
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e cceptarC. I iht suni-:-.arize it ir7. se7t ehce
Cr ra' s stat ement to C or..zress t mor!ths
"the threet of ocreio1e dction tE o t
ti 7e (-1,- te-^rept".
It is im7ossioLe to e...,1a.7Ee-2:] the.
is ch...-77.ge for ourselv,,- both .3s in islana
nation The„.
have been the first beriod for three ed ea:rs
ariti e f:-..)res of 1-; country hale rot
it as t'eir prime obje t
prevent 9r enem:2 from bloc:K,73d1:7 these islands or
airi .Jis.cess to them sea. 2 hi s s ha
bec.,ause e rsuade4i iurselves 1s7,-Lg '"Jar
at se., sc ion 3;3 e he to 'Ho 3e-v.e ,1-2?:. times
in 0:42 history, ':33 lo-Le:
2he .rer, 3jhllt. scout ed: 01-_1,k, secureI
2 (.7., 1-
'rjyeg of no oar or ucle--,r aicide. 2. is
7 tien - ;ofoorse, tO do
ith u`' e erfeo1 T3tional t'eor;" -0c1:3.ar
dete--r,,rt qucie 3r "?.21' or 5iac:=11].. — aa;.1 a•Li 3
. diffic
0,$ T17-`..4-.3 0-<1 170, I.n4
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01-•19T--,e4,U0 OTdU4 YE u 49
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E: J.5.70 T6ATLJITE ITUC if4.Gjer,T
17.0 P."... S E3Egor. s o A's s 4G1d oac
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q 72,T ro
oc 1JT73, L.,27E T2eT osas
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i:TTP zuno::(71 pa uo pus cm u 9o,
• 4
and the .;,arsaw Pact, an(.7'. that, thouEh the bal.nce
7“)1l5 first •7,e, -?.,y then the other 2fter
mobilisation, it Dd'd n9t berrran:ently incline
TTr'-onderis nopreciation
implies the possibilit- not Orl'i of a Y5 -7:t sea.
but of o2olongecl. covati nal onerations the
Continent.oo-1
.The political b,,.ck_round of
the :arsa,N l'act forces has to oe te.c.ren into as-
coun-6. The joviet divistons i ast Crer:Lany are
there 2t least :7Is much .ith Est J-eri3nj itself
ir iea o confront O. 2he forces of the
Iron Curtain countries cannot simn.:f ho to
those of ti.e ..;oviet Urion. T.here are circumstrce
increetrElyisonsle, hen it
..ould be r'Irer tbe truth to subtr2ct them. fhere
is a ,T,)roverb aoout the r.ar.ho held a.a:Dlf b the
'21ae tSa1S ecLj_vA.ant of th,=.t proverb must
oftcr occur%c-.) i7 &din.
deep frbst acn nas can5raeaster
Europe f or t:.ent,/ years rot ed,Ire for ev-er.
Joon_er or later t'.7e ice fioec be-irl "to mr:;-ve
• 5
and tiTe pLeces of the European kaleidoscope to
reassemble themsaves ir re,:v n:atterns.
All this is immediately relevant to I.iritish
defence policy; for it meen2 that, if ErIttain is
to have an influence in theurocean balance of
cover, eo vital to her safety und even he2 exist-
efl C e e :Lust have an arr4 that can be da.3cribe.
in talls often receated b.; the Ocoosition, Thich-
make no apolog,,, for reee,stl r a "
"an army in being, eTual ir arr,-ao:ent, trairinr:and philodophy to iLny other in Europe, and of suckdimen sions and structure, and sopoortei ..11c‘7 reserves, as to be able, end to be seen to be ob:L'
plo," 73n importaInt C ti;n pert in con-tinental ',*-:,9rfsre, ever - part
n-la'ke it th cerc ant fulcrui- of the in -dis7_,
All tirnuh these ..::reat c'a touct
directly the ,7;7 e :octore of ritair' defen.ce
:.ostare, the ..",4,,,,c-eary of tte for Jefence 1-pzi
blind and de-af to repl
lsuna ard djdb1i:, or the front
bonen. .2he fact fo,J,7: of tis oar succe2sive
defence policie hale collac.braL.-isdocio OH
0
o3sert3 the rtightnes3 of hi fifth. --E,uit
tiie C-ov ef-Ine t Q. re e _re r o r e 1/;_n_ e 2 he r t
"ITATC eJ, ±L o on.
It ii t•••-•_ t j ift
`.2rrI tit 1 ,•?,r
-•J, it left
ever farther behl_r:d
shfUt t-
cocoon. cf :Je1lciD7
'r"
t • /
Extract from sbeecki by the tt. Eon. J. EnochPov:ell, Y.P., at -- -_ ,
41.. e ' c 1(...;,-v4--L L-Ct-,c2 ez,t.I. rrel-Aee ‘1444.-t- z. ALI-1) AU_ Aaw oe.m../ X.-d, 4117,
/ner..-La,There is probably no more difficult area for
legislation than that 7whdch opens before parliament
in approaching the reform of trade union la. There
a branch of the lav; is directed toserds specifically
defined purboses, it con oe e%amined in the light of
its efficiency for achieving thoge purposes,
.hen the nurposes themselves chan:2e or become
obsolete, the leislation can be altered or repealed
accordingly. Trade union lo,J is not of this sort.
The trade union is at bottom a social p,e. amenon,
and its prevalence in so many different societies
and economies bears ,A.tness to the depth cf its
social roots.
it is a social phenomenon 7Nhich inevitably
enters into relationship 7iith the general law. In
our ton country this relationship has pased through
several phases: there ')e-F. the chase in ':;hich the
trade union 7Jas combatible with the gen:J.ralla,;
this wos succeedea by ..,nother in it ceased
-2-
be compatible; finally, in the last hundred years
we have lived throup:h a period when the trade union
has been 2iven a place of its own ,:)ithin th.e genera
law.
In this last phase it could be said that the
trade union was a creation of law, and certainly the
trade union as -ive kno'. ,J it exists by vtrtue of
certain statutes which confer privileges and
immunities, without which it would be something
very different. There is here 3 double meaning of
the same term, which, 93 usual with double meanings,
can be the cause of mucti misunderstanding and
animosity. In one breath when :,;e say 'trade union'
we refer to somethiruz that exists 3nd functions by
reason of a specific set of statutes; in ti-e next
breath, by 'trade union' we refer t t17e basic
social phenomenon, the association of persons
engaged in the sal e occupation or emoloyment. Hence
tlre freuently meaninless arguments whether such
and such a nerson or policy or oarty is anti trade
union".
7
Yet in spite of 4-ts legal clothin the tradeunion remains obstinately social by nature.such it is not surprising that its practice andbehaviour is not deducible ir advance from its
legal garments but reflects the assumptions and
habits and outlook of its own 4t-Tillet society. Thiexplains a paradox vvhich has often been oointed out.Comparison of the ITN of trade unions in thiscountry on the one hand and in, say, ;estern (;ermanyor the United 3tates on the other, '.Jould lead theobserver --ho simply looked t the respective i3W5
to conclude th.=:t the trade union aias more restrict-ionist and co servative in mentality tn Clermany orthe 'UnitedJtates than in 3ritain. fet the oayosit
is the case. The member of ,.-erman.or Americantrade unionsl-hich 3re legally far more institutionalised a-d entrenched, can barely be Orouht to
comprehend the ork-snreading, profit-hating,
almost Luddite attitude of tlieirLiritish namesakes.In practice, the trade union reflects the society;
not the legislAion. It is a f-ct the le,=_L7islator
does .v.)e 1 to .ras,J;for t-le extent to ,',hich
(AAAA44 4-14/1;
(4,-..)
illleislation can change and mould society is strictly"eti.t) -
limited. 21-41- /1,11-4914"-- • IA- tl kt•-41-4.--kvi-
eecea4,t,t-,4" OY PIA-CC74-“ikz-a 4-14,t)ea.ft o q C6/2
If more evidence -,4ere needed of the profoundly
social character of trade unionism it is afforded
by the persistence of characteristic traits
independent of marked cang.es in lao and environ-
ment. Those ';:ho point out the characteristics of
the i-3riti h trade unions yThich I have just mentioned
are apt to assume th-opi te—be of recent occurrence,
untypical of the 'bad' or 'good' old days, ho,:4ever
one looks at it. '2his is only the rev,rsed tele-
scope throuh vqhich most people, for their con-
verierdi or their comfort, vieo t1-.e unprotestng
past. In fact, the ssme contrast, do-;Jn to t1-.e
actu-1 vords, bet7,=Ieen the attitude of tie L>ritish
and the -kmericen trade unions -ere a commonplace a
century or a century ,Jin:d a half : the strenth
of the IJritish trade union and its resistnce to
change 7Jas a by-word oefore the rAddle of the nine-
teenth century, before .any of the suose7oent trade
n leAslation ,'aS thought of.
-5-
• In the fundarrental.V social n--ture of trade
unionism lies the explanation of the central
problem ;:thich besets all trade union le,is1:-ation:
the difficulty of identifying an economic object
hich can be 7:]...ade tena`nle, con .::,.-stent
asioectahle. 'fhe difficulty is accounted f or,
,-4;,u-gia----n&t. • rernovel, if the underly ing sy chologt-
rrotivetion of trade unionism is not itself economic' - • '
since the environment of the tr9de union 1.2
economic and the I •inguage in 7;hich its dialogue is
conducted is economic , it ';,,,as natural .1nd indeed
inevitable th-at the mythology, so to sneak, of trad!
unionism should consist of v:ht a:yoear to be
economic propositions. .:.very social organism needs
a myth to qccount for its existence nd its
behaviour. It is not surprising if economists and
Lioy al Oommissions from 1.86c on:a rds - perha ps the
one due to report this ye':un •;111 be no exception -
h3ve found theLselves nonplussed by the economic
myths of trade unionism.
ith the app.arently si
ror ex-mole, if Je st-rt
pro po aition tuat oh e
-6-
111function of 3 trade union is to secure for its
members higher remuneration th:an th ;';ould other-
-.Nise receive, e im.medistely find, ourselves lost in
a jungle of difficulties. fe not only nave to
axcount for the fact that no dventage in t Matter
of remuneration can be shown actually to accrue to
those in unionised as compared ith non-unionised
emblo;iment s. have to explain Itny the buyers of
labour should be oermitted to combine to counter-
balance the combination of t'le sellers.e b e to
explain ;:hy, if hi.,:her price of labour th.3.n :Jould
otherise obtain is ia the buolic interest, this
ought not to be secured by the oper-tions of the
p.:eneral law or of the governirent, ind also ho. it is
to be kno'n b„ ho. rnuch the price of lsoolr. ouht
- irtificially to be r.u9ed. have also t-; attempt
to justify the ftct t -t if the ,rice of labour is
raised .3bove that Ahich: ''cle'iirs the market", tie
result, as the Gummi -,;sion of 1889 already pointed
out, is to reduce dem_-,nd, in other ,ords to cause
uneruployment.
-7—
2his is only a small snecimen of the
difficulties in vihich 7Ne become involved if ,Ne are
tempted by popular mytholoEy to Treat combination 9S
an economic instrument and not rather aS a social
fact, 3S a phenomenon of society rhich haq to be
kept in harmony 'td_th sener ,3l opinion and the
oresumptions of the p:enc.ral 21e business of
the reform cf tr3de union laa is brecisely to restor
th9t tca ony .
•Extract from speech by the i-tt. Hon. T. _:;noch
at the •nnual lAnner of the lanchester ',TuniorChamber of Commerce, at the -:,.anchester Club,
Yanchester 7 o.m. Frida- 1st 1,.arc 188.
It is my experience not infrecuently to have
the -Nord ':;.anchester' thron 9t me 9s a term of
abuse. =di over the ,.vorlfi the Y4ord 1::anchester
continues to be rat:cie44-ite -tlord. It is linked for
ever i.th an idea ,Nhich l,;93 once fashionable and is
unfashionable. 12his is the ide,a that
Individuals in different countries throughout the
globe ouht not to be prevented from exbhanging
their goods and their services viith one another if
they judge it advantaeous. lhere is morye-t-c—i-t
t4t-4r/-41.1..e-t. It is )1 -so the ideal thLat individuals in
different countries ouFht not to be prevented from
1eriin mirroin,: from ono another if they judg
it advantageous. 4- ,'2oday this 4-9-an outlandish -41$41, -t
the thoughtieas laugh, as tYou:ghtless people
alays -i:ill laugh at saTethin unfamiliar. o it
ccces that the -ord el:anchester' clr oe 1-eard 35 a
...,,,,
fi '
term of mockery and derision.On-familiar cert,3inly_ ,
/Lsuch freedom i . in this country -:e aye A.44 knoln'-,;-4,ything approaching it for ne:Jrlythixty years. -in
—f the ..orld it is -tsii-ejexception, though
there are some parts of -Ourobe -;here 4,4944 of it is
--ei:qttra,717.17to be found. America 3iso 'Aas in many
respects an exception until recently; but there the
administration in the last to 32 three years have
made rabid strides in abolishing &44"4.-7.7F.—.':-/ .
,citizens the freedom to exchange goods and services,-., ..or to lend and borr&N across the frontiers 12.04.44-e-
major ir,lastry. 2he totAl manbo,er consumed in
this -ork of crejention is stub ndous, and much of
that m-;npo',er is not of an, means unskilled. raKe
te ..)ank of zn.-2,-land and tl-e 2reasur, alone: it ,ould
be interesting to kno':) hon many man. hours per teek,O4Yp#:1/
are cbnsumed in €0.i.i.9.0i44- ,4r7,2,- anblic.7.ti-e-ns from the
humbl,est individuals to the lare_t corportions.'•h
-;ant to spend Or lend their ci money - their own
not somebody else's - abroad. ,e ?re .:3t) used LC)
In most countries the bsiness of denyin;t thei
—3—• - 1-
this, ,t .2,ives it a thought: Of
those jho do o7ive it a thou,zht, the majority probably
say: 'erie tlem right , too, for bein,7, sc un-- W
patriotic 3S to .-7,ntto do such a thin. -;.,,,a4.14, goslap
ro.;nd 31-1,] stxxX a 31L_ILIIIJIsticker on to the boot
of thei,- car'. •
o drenched are :Le -Jith economic nationalism —
and this, ironically,Hhen pl-,rases like -±,.uropeen Free
2r3de Area, North Atl5ntic Free 2rade Area 3re on
everybody's lips. For se have forgotten a -imple
but infinitely importnt fact: interrtional trade
is not trade beteen nations; it is trace tet-iJeen
individu3ls. Ho ever lon,or aril complex the steps in
the transaction, tle reality is tht n individual
in one country and an individual in another country
are exchangin.: the 7:or1c of tl-eir hands or brins
because it has seemed good to them, freely and
spontaneously so to do, eacL believin tat t'neoeby
they ::ill be beter off. in doing so, ;s in rr.king
similar exchanges mith their cn fellov, citizens,
e y
• -4-
they are assisted by a great variety of profession-
als and experts - merchants, insurers, financiers,
wholesalers, warehousemenletc. etc. - but all is
designed to serve the basic act of individual chdic
How far sway from this 'Ne aret -11.'overnments Y:3Ve
stepped in 3nd appropriated vThat should not belong
to them: "our exports", they say, "our imPorts",
and they institute policies to "increase exports"
or "xeduce imports". It is only because e 3re so)
..Li.a.ikd to this language that e do not laugh out loud
, hen we hear ..9.-44:T :By definition there are to-
sides to every exchan:ge snd cannot increase one
s—e without increasing J:his onl, appea0 -
to happen because governments have conspired to
deprive their citizens of freedom of choice - bi
them lend ii-44- 414reTTe'rrtoanother country or by
making them accept in exchange for their o7,)n g.00ds
or services somethng which they do rot wsnt, such
as gold or foreign money, and then loci:ing it up in/--a vault.--
Only a state here individual choice has been/-,, /, , 7.";„ 10-ite :#
r
-5-•eliminated can logically soy: "I intend to
increase
0.44-4my exports-gy imoorts;,'that iso-i haie deci
ded
e t.
exchange of oroduce ,lahour itr;- t
that of other nationa1s7 l'he state-trading
oraanisations of the communist countries do just
thatj .4749 they are discovering, in their present
exploration of the possibilities o2 economic
freedom intorniy, , that freedom of the citizen to
exchanae ilcross;the frontiers is a no.tural41.Q.44.ter-
-.7t-errt e . 41cbody Tfih-e-t-Wer If
the individuals in a country are free to choose,
-=4-e-tF14.e-r they decide to exchane more with
foreigners next year" than this year, nor if so, ho%
much, more. 3t111 less can anybody pre-/yr-1,i) /e1A-6 (02- ' I-
diot 4titeltoor ood s .,3nd services.i t'7ey nill ctooQe
to sive and to receive in excllange alli be crde un.
Unless the state is to deci:le ni t ;e shall do anr.
consume , there is no trik7ht' I evel of exports and
imports except the one th t oens.,
fr. . freedom of coice can e tsken rco people
openly and violently. It c3n also, 7:i orY1M6 frore
-0-
dangerously, be taken fram them by stealth. If I
may LiSe 9 metaphor, they may 'be chsine. to,7ether and
dragged do'An a certain road b1 force. Alternatively
the signposts on all the roads can be removed or
altered, so that ;4.4ec tl-ey cannot find their ';ay
.th.ey. submit toguidance and direction, to f;hich
indeed there then seems to ce nu alternative. :2his
is the method ,hich ,estern countri6s freedom
to exchandrefis denied. Ihe lidecost of the4%-
individual choice is artificially altered,9 t"e price of an article
,xchange rate of a c,-rrency tl'e rest tl-en
folio .7Js inaLorably.
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