The world in the year after the great war was like a man who has had some vital surgical operation very roughly performed, and who is not yet sure whether he can now go on living or whether he has not been so profoundly shocked and injured that he will presently fall down and die. It was a world dazed and stunned. German militarist imperialism had been defeated, but at an overwhelming cost. It had come very near to victory. Everything went on, now that the strain of the conflict had ceased, rather laxly, rather weakly, and with a gusty and uncertain temper. There was a universal hunger for peace, a universal desire for the lost safety and liberty and prosperity of pre-war times, without any power of will to achieve and secure these things.
Just as with the Roman Republic under the long strain of the Punic War, so now there had been a great release of violence and cruelty, and a profound deterioration in financial and economic morality. Generous spirits had sacrificed themselves freely to the urgent demands of the war, but the sly and base of the worlds of business and money had watched the convulsive opportunities of the time and secured a firm grip upon the resources and political power of their countries. Everywhere men who would have been regarded as shady adventurers before 1914 had acquired power and influence while better men toiled unprofitably. Such men as Lord Rhondda, the British food controller, killed themselves with hard work, while the war profiteer waxed rich and secured his grip upon press and party organization.
In the course of the war there had been extraordinary experiments in collective management in nearly all the belligerent countries. It was realized that the common expedients of peacetime commerce, the higgling of the market, the holding out for a favourable bargain, were incompatible with the swift needs of warfare. Transport, fuel, food supply, and the distribution of the raw materials not only of clothing, housing, and the like, but of everything needed for war munitions, had been brought under public control. No longer had farmers been allowed to under-farm; cattle had been put upon deer-parks and grass-lands ploughed up, with or without the owner’s approval. Luxury building and speculative company promotion had been restrained. In effect, a sort of emergency socialist state had been established throughout belligerent Europe. It was rough-and-ready and wasteful, but it was more effective than the tangled incessant profit-seeking, the cornering and forestalling and incoherent productiveness of “private enterprise.”
In the earlier years of the war there was a very widespread feeling of brotherhood and the common interest in all the belligerent states. The common men were everywhere sacrificing life and health for what they believed to be the common good of the state. In return, it was promised, there would be less social injustice after the war, a more universal devotion to the common welfare. In Great Britain, for instance, Mr. Lloyd George was particularly insistent upon his intention to make the after-war Britain “a land fit for heroes.” He foreshadowed the continuation of this new war communism into the peace period in discourses of great fire and beauty. In Great Britain there was created a Ministry of Reconstruction, which was understood to be planning a new and more generous social order, better labour conditions, better housing, extended education, a complete and scientific revision of the economic system. Similar hopes of a better world sustained the common soldiers of France and Germany and Italy. It was premature disillusionment that caused the Russian collapse. So that two mutually dangerous streams of anticipation were running through the minds of men in Western Europe towards the end of the war. The rich and adventurous men, and particularly the new war profiteers, were making their plans to prevent such developments as that air transport should become a state property, and to snatch back manufactures, shipping, land transport, the public services generally, and the trade in staples from the hands of the commonweal into the grip of private profit; they were securing possession of newspapers and busying themselves with party caucuses and the like to that end; while the masses of common men were looking forward naïvely to a new state of society planned almost entirely in their interest and according to generous general ideas. The history of 1919 is largely the clash of these two streams of anticipation. There was a hasty selling off, by the “business” government in control, of every remunerative public enterprise to private speculators.... By the middle of 1919 the labour masses throughout the world were manifestly disappointed and in a thoroughly bad temper. The British “Ministry of Reconstruction” and its foreign equivalents were exposed as a soothing sham. The common man felt he had been cheated. There was to be no reconstruction, but only a restoration of the old order—in the harsher form necessitated by the poverty of the new time.
For four years the drama of the war had obscured the social question which had been developing in the Western civilizations throughout the nineteenth century. Now that the war was over, this question reappeared gaunt and bare, as it had never been seen before.
And the irritations and hardships and the general insecurity of the new time were exacerbated by a profound disturbance of currency and credit. Money, a complicated growth of conventions rather than a system of values, had been deprived within the belligerent countries of the support of a gold standard. Gold had been retained only for international trade, and every government had produced excessive quantities of paper money for domestic use. With the breaking down of the war-time barriers the international exchange became a wildly fluctuating confusion, a source of distress to everyone except a few gamblers and wily speculators. Prices rose and rose—with an infuriating effect upon the wage-earner. On the one hand was the employer resisting his demands for more pay; on the other hand, food, house-room, and clothing were being steadily cornered against him. And, which was the essential danger of the situation, he had lost any confidence he had ever possessed that any patience or industrial willingness he displayed would really alleviate the shortages and inconveniences by which he suffered.
In the speeches of politicians towards the close of 1919 and the spring of 1920, there was manifest an increasing recognition of the fact that what is called the capitalist system—the private ownership system that is, in which private profit is the working incentive—was on its trial. It had to produce general prosperity, they admitted, or it had to be revised. It is interesting to note such a speech as that of Mr. Lloyd George, the British premier, delivered on Saturday, December 6th, 1919. Mr. Lloyd George had had the education and training of a Welsh solicitor; he entered politics early, and in the course of a brilliant parliamentary career he had had few later opportunities for reading and thought. But being a man of great natural shrewdness, he was expressing here very accurately the ideas of the more intelligent of the business men and wealthy men and ordinary citizens who supported him.
“There is a new challenge to civilization,” he said. “What is it? It is fundamental. It affects the whole fabric of society as we know it; its commerce, its trade, its industry, its finance, its social order—all are involved in it. There are those who maintain that the prosperity and strength of the country have been built up by the stimulating and invigorating appeal to individual impulse, to individual action. That is one view. The State must educate; the State must assist where necessary; the State must control where necessary; the State must shield the weak against the arrogance of the strong; but the life springs from individual impulse and energy. (Cheers.) That is one view. What is the other? That private enterprise is a failure, tried, and found wanting—a complete failure, a cruel failure. It must be rooted out, and the community must take charge as a community, to produce, to distribute, as well as to control.
“Those are great challenges for us to decide. We say that the ills of private enterprise can be averted. They say, ‘No, they cannot. No ameliorative, no palliative, no restrictive, no remedial measure will avail. These evils are inherent in the system. They are the fruit of the tree, and you must cut it down.’ That is the challenge we hear ringing through the civilized world to-day, from ocean to ocean, through valley and plain. You hear it in the whining and maniacal shrieking of the Bolshevists. You hear it in the loud, clear, but more restrained tones of Congresses and Conferences. The Bolshevists would blow up the fabric with high explosive, with horror. Others would pull down with the crowbars and with cranks—especially cranks. (Laughter.)
“Unemployment, with its injustice for the man who seeks and thirsts for employment, who begs for labour and cannot get it, and who is punished for failure he is not responsible for by the starvation of his children—that torture is something that private enterprise ought to remedy for its own sake. (Cheers.) Sweating, slums, the sense of semi-slavery in labour, must go. We must cultivate a sense of manhood by treating men as men. If I—and I say this deliberately—if I had to choose between this fabric I believe in, and allowing millions of men and women and children to rot in its cellars, I would not hesitate one hour. That is not the choice. Thank God it is not the choice. Private enterprise can produce more, so that all men get a fair share of it....”[512]