Shaughnessy,
Vancouver,
Canada
Dear Father:
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| A man in a business automation ad. Sign of the times |
Your Loving Daughter,
Ronnie
The Economist, 21 April 1956
Leaders
"Missed Opportunity" Macmillan's budget is, like every budget since I've been old enough to read The Economist a disappointment because it doesn't cut spending and taxes enough. That seems a bit crass, though, so the magazine throws in a bit about tax reform.
"Five Months for Algeria" It's not fair, the Mollet government thinks, that just because the French didn't do anything about Algeria during "a generation of colonial inertia" that now the French have to mobilise up to 200,000 conscripts in two call-ups (100,000 now, another 100,000 later) and raise their overall strength in North Africa to 600,000 and reorganise their army for guerilla warfare. It's also not fair thata minority of the socialists and Communists are making a stink about it just when the French public are showing a will to act. It's almost as if those crazy leftists think that the "colonial inertia" started in 1830! Even the Economist finds this a bit much. The Algerian rebels are already administering liberated areas, and the idea that 15,000 rebels are terrorising 8 million Algerians who could just be persuaded to go along with the latest French scheme for anything-but-independence-except-real-change. Even now the government can't commit itself to seating elected Algerian deputies in the French Assembly. Maybe at some later date is the best they can do. Fortunately, the government has given itself a five month deadline to implement its vision, which puts a time limit on Algeria's agony. "France should have wept before these occasions, as Britain should for Cyprus."
"The Feminists Mop Up" The Feminist movement has accomplished most of its worthwhile goals, and it would be a shame if the movement were to fade away because of a popular belief that the only remaining small gains to be made as of 1956 were too radical. Also, the Chinese Communists are uncomfortable with all this anti-Stalinism.
Notes of the Week
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| How you tell that you've pissed off the photographer. https://en.wikipedia.org/wiki/Operation_Gladio |
Letters
Trevor Huddleston's Naught for Your Comfort explains the problem with apartheid, which is that Africans will give up on Christianity because South Africa is so mean. Father Huddleston wants us to know that he is no "negrophile" and "does not like Africans," because no-one can like an abstraction, but all Africans he knows are fine. But then he generalises aboiut White South Africans, so he is a hypocrite, and he just assumes that the Bantu Educational Act will be bad, and dismisses the notion that White South Africans who treat their help well are part of the solution. He doesn't think that economic sanctions will work, and, The Economist suggests, as liberal leaders like him are removed from the scene, Africans will have no choice but to work in secret. The Communist International, 1919--1943: Documents, Volume 1, 1919--1922 is pretty useful because the editor includes a discussion of every document. Other than that, it's a pretty worthy book. Lawrence Abbott's Quality and Competition is a study arguing that "quality"-based competition is more important to economic progress than price competition. Henry Cord Meyer's Mitteleuropa in German Thought and Action, 1915--1945 has an "awkward and American style," but is a pretty good study of the development of the idea of Mitteleuropa" in the interwar period. Edward Bernays is the editor of The Engineering of Consent, is a collection of articles on public relations. Iris Brooke's Pleasures of the Past is a "potpourri" approach, but the author knows a lot about the old days, so it's fine. George Pendle's Argentina is a business-focused look at the "distant colossus," and Charles Larrowe sutdies Shape-Up and the Hiring Hall, explaining how the "shape up" system has led to New York's crime-ridden waterfront.American Survey
"The President's Vein" is a page and a bit on the current farm bill kerfuffle. At some point I might have to pay attention to it! Certainly my father must be rolling over in his grave over my neglect of the process that producers all those pork belly futures he made a career of! The Economist gives its view of the current American inflationary episode and related inventory stockpiling and monetary tightening. A recession in 1958 will only affect the GOP in Conress, and what have they ever done for him? "It is reported that
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| Wiki says that Gruenther was one of Eisenhower's alternatives to Nixon in '56. Nothing about a potential Democratic nod. |
The World Overseas
"Khrushchev on the March" The Soviet Union's main failing these days is lack of housing and food, and although the next Five Year Plan will double home construction, this is "really only a drop in the ocean." Food is another matter. Khrushchev is going all in on maize and the Virgin Lands, and "will probably stand or fall" on its success. The new agricultural law is also fiddling with the collective farm system in a way that will probably better align incentives with production, but the real gains in fodder crops leading to more milk and meat, will have to be made in the Lands, and the magazine is predictably skeptical.
"Blueprint for Apartheid, I" Dr. Tomlinson's report on "the socio-economic development of Bantu areas in South Africa" is more than a million words on the 260 "Bantu areas" which are currently underdeveloped. Lots of capital is needed, and the details are not sitting well, especially the fact that factories will have to be built in the areas, but "total separation" of the races is needed or the Blacks will end up running things and there will be "miscegenation." Except that total separation doesn't mean getting rid of Black workers in White areas! Only 70% of the Black population will be in the "Bantu areas" at the end of the century if the plan is carried out, but otherwise the figure would be closer to 25%. The Bantu areas will consist of 47% of the state, but only once the British have handed over Bechuanaland. The Spanish strikes might be a sign of things changing, Singapore's current constitution is a mess, leading to a political impasse. Byzantine political manoeuvres in the North Rhine-Westphalia state assembly require the closest scrutiny by everyone pretending to be a middlebrow, but not because neo-Nazis might be trying to get into the government, look, we've hashed that out already, give it a rest, says The Economist. Not its usual approach to alleged German revanchism, so I assume that there are tax cuts in the works. From India's point of view, Pakistan's inclusion in the Baghdad Pact and American arms aid is just going to lead to a war over Kashmir, and Nehru would like everyone to quit the provocations because he needs the money that would otherwise go to arms for his Five Year Plan.
The Business World
The budget envisions a deficit of £341 million, up £200 million from 1955-6, but this is an improvement on an original projection of £531 million due to cutting spending through the Coal, Public Works Loan, Milk Marketing, and Sugar Boards, and is mainly due to money for the nationalised industries. Some of the money will be raised by the various new savings instruments, which is good, and there is fussing over pensions for the self-employed, the profits tax that Butler originally put up to cover the massive hole that his income tax cuts blew in the budget, and the increase in the cigarette excise tax. We've covered all this a bit, and the profits tax is the main focus of The Economist's concern over tax reform. This is an area of tax policy where I take The Economist with the largest grain of salt I can get on my pretzel, but it does all seem a bit dodgy. Notes discusses the new tax on cider.
Business Notes
Markets are up and speculators against sterling are on the run, so that's good news for Macmillan's budget. On the financial side it is interesting that Shell is showing such solid profits, and the P&O is doing well, too. Crackdowns on consumer credit ("hire-purchase" in British talk) are evidently the way we deal with inflation now, there is some discussion of railway investment, already covered by The Engineer, and metal prices are down. Steel production will be up 11% in 1956, so if Britons want more steel than that, they can import it themselves, says the steel industry. (18,850,000t ingot steel deliveries, meaning 13.25 million tons of finished steel products, up from 17 million tons last year, which was supplemented by 1.2 million tons of imported steel. Things will probably be better than last year overall because industry reacted to the steel shortage last year by stockpiling and can now run them down.
"De Havilland's Rising Star" De Havilland's handsome profits this year after the losses of the year before due have something to do with the MoS absorbing the loss on the Comet, but mainly reflects steady sales of Doves and Herons, Vampire trainers, which are a cheap jet fighter, the last on the market, and, with bomb racks and the instructor pilot position and equipment, a plane that can fill three roles for small air forces. Engines, propellers, and exports are all doing well.
"New Power, But Not for Cars?" Alan Muntz & Co have acquired the rights for the the Pescara free piston turbine engine, which might be just the thing on trucks, in electrical generation, ship propulsion, and locomotives, but not, notwithstanding GM publicity and Renault developmental work, on automobiles.
Flight, 20 April 1956
Leaders
"The Civil Scene" The wonderful lads of the USPS are tearing covers again, so I have no idea what is going on as I begin reading, so this might be a special Civil Aviation issue? The introductory Leader points out that, considering how expensive airliners are, the big aircraft companies are doing pretty well.
"Flying for the Farmer" Special purpose crop dusters are better than the WWII surplus that isn't safe to fly any more, anyway, and it's nice that Auster and Percival are working on them.
From All Quarters reports General Norstad's appointment and that Bulganin and Khrushchev are going to see an RAF air show at Marsham before they leave. Canadian Pacific has ordered three Britannias with an option for five more. Deliveries will begin next year. They will be used on the trans-polar route. The East German Airline, as the public relations people have recommended it be named, might be the first non-Soviet airline to operate the Tu-104. Sparrow missiles have been issued to 6th Fleet. Chuck Yeager gave a talk on high speed flying to the RAeS the other night.
"The Mi-1" We get a detailed design study of this new Russian helicopter.
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| By Karl Barnfather at English Wikipedia - Transferred from en.wikipedia to Commons by Leoboudv using CommonsHelper., Public Domain, https://commons.wikimedia.org/w/index.php?curid=8929716 |
"Off the Beaten Tack: Multifarious Activities of Civil Aircaft the World Over" Airplanes do more than just drop bombs on people! For example, they spray crops, talk to elephants (sd I choose to interpret the picture of a BOAC York somewhere in India), and fly in to King Island, which is, I bet, the first time King Island's been mentioned here.
"The British Corporations" BOAC and BEA get facing page articles. BOAC ran a profit, lost its chairman, and has to do something about the DC8, but, say the British papers, what about the Britannia? It's slow, that's what. BEA doesn't run a profit, also lost its chairman (to Bristol Aircraft), but has a nice new plane, the Viscount, and is buying some Vanguards, which, to take away some things very important people have said very heatedly in private, is probably too big to be that slow, just like the Britannia. I don't know if you were at the meeting where your lads decided to buy Britannias, but I'm sure you heard it to over the minority shareholders yelling "We told you so about the Comet!" Anyway, BEA is "not likely" to go ahead with plans to re-engine the Ambassador with Darts or to buy a DC3 replacement, because both ideas are dumb.
"British Independent Operators" So what do unscheduled airlines secretly run by influential Tory backbenchers do? Pick up trooping contracts, mostly, but there are also small islands, tourist junkets, and cargo, providing you're not trying to compete head to head with professionals on the Atlantic run.
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| Christopher Lee was the grandson of a Carandini count. |
The Economist, 28 April 1956
Leaders
The Khrushchev/Bulganin visit was nothing much and The Economist is proud of rude Britain was to its guests. Because they were rude, first! Macmillan's plan for the budget is to find £100 million to cut from public expenditures, which mainly means defence because there is no other money to cut, really. Aside from "waste," there is "a strong case" for abandoning the development of British naval aircraft in favour of buying American types, for smaller forces in the field, and for a replacement of general conscription with selective service. Edinburgh airport is getting a new terminal
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| Iraqis found Salter intolerable, as did Rab Butler By NortyNort - Own work, CC BY-SA 3.0, https://commons wikimedia.org/w/index.php?curid=14272218 |
"The Pattern of a Family Budget" Even though the author, a correspondent, is very wealthy, his family has been living on capital and hasn't saved any money except for the large amount of money that he has saved that he can't count for obvious reasons. The problem, of course, has been the times. Starting with the fact that he couldn't have a car in the war years, extending to spending £900 on education for his children, and the unreasonably heavy burden that comes with five modest European summer vacations and one American in recent years. Tables of figures are produced to show that he is practically in the poor house and won't be able to leave any money for the three children of the next generation except for the £900/year that will start accumulating soon, given that their youngest child is 23.
Notes of the Week
"Desperation in Algeria" Moderates Ferhat Abbas and Ahmed Francis have fled Algiers for Cairo and announced that they are joining the FLN because French police and settlers are running amok and no-one seems able to stop them. Meanwhile in Paris, French politics are in crisis for reasons that need to be explained by a double page, four colour diagram, which unfortunately The Economist can't print, and so satisfies itself with a long list of people, a description of what their actions seem to mean, and a suggestion about what they might do in the future. On the other hand, in Britain there has been an absolutely brilliant budget debate, with Tory backbenchers pushing for more tax cuts -excuse me, I misread. "Tax reform" that cuts taxes. Several Notes describe how everyone was very rude to each other during the Khrushchev/Bulganin visit and how various people (Hugh Gaitskell) and institutions (Pravda) were disappointed. "Red Arabs" are wrong about Russia, and there are gratifying signs that some non-Red Arabs see that.
The National Joint Advisory Council on restrictive labour practices recommends no union-busting legislation, which is boring and disappointing but probably the right approach. Ghana probably can't be independent because probably there would be an inter-regional civil war. Greece can't be independent because probably there would be a partisan civil war. Well, I mean, it is independent, except in the sense that it isn't allowed to have certain opinions about Cyprus. The Economist is worried that the Burmese general election will spark unrest. We are suddenly talking about arms control and disarmament in Western Europe. Germans disagree about whether their budget surplus should be spent on tax cuts or social services. The idea that tax cuts might lead to inflation nis ridiculed. Walter Reuther is great because during his trip to India he scolded the Indians sometimes, but also he was sympathetic other times, which will win them over.
Calls for middle class radicalism are just the same old thing; Sweden is cracking down on credit to tame inflation; New Zealand's crackdown on credit to tame inflation was very controversial when it was imposed, but now a report by a government commission says that it was great. Buckingham Palace isn't actually spending that much money. The Economist of 1856 looks at "Russia as Adversary," and concludes that the Crimean War was justified because it showed that Russia was a puffed-up bully. Not that it wasn't a threat to everything The Economist holds dear, mind you, but the point is that everyone needs to shut up about the war being a terrible idea.Letters
"Simplus" writes at great length to point out that the idea of auditing major industries in the way that the nationalised industries are is a "muddle headed proposal." Wallis Taylor of the University of Exeter points out that the "middle class tax reform proposals" championed by The Economist apply mainly to people with incomes of £1000--£3000, who are in reality in the 95th percentile of British incomes. J. L. Williams, the General Secretary of the Society of Civil Servants, asks why civil servants should be forced to move out of London when private business is rushing to put ever more workers into London. John Alexander-Sinclair want to revalue the penny to make everyone's lives more convenient, and after living in London for two years, I actually find his proposals plausible and well worth four paragraphs of The Economist's time. I am part of the problem, am I not?
American Survey
The Leader is an eye-glazer on "Wherefore American foreign Policy?" occasioned by the fact that Dulles is still the main weak point the Democrats can attack the President on with impunity. Down at the end we wander into the suggestion that probably a war in the Middle East is inevitable because no-one wants to rein in the Israelis before they attack, even if the U.S. and Russia will probably combine to nullify the results. This would seem to suggest that war won't happen, but that's assuming that everyone involved is a rational actor. There are two arguments about atoms going on right now. The first is over giant hydrogen bombs, which some people don't like, and testing them, which even more people don't like. The other is the President's "atoms for peace" proposal. It is argued that the two are actually the same issue, because they have "atoms" in the name. This allows The Economist to cram all developments on the atom front into one five paragraph Leader, making it even more important news than word that someone making more money than 99.9% of Britons can't save as much money as he would like. Democrats are pessimistic about '56, it says here. The District of Columbia should be a state, it says here, even though Congress isn't about to let that happen. However, there are going to be Democratic and Republican primaries in D.C. in May, and locals are thrilled that they get to vote for something for a change. Bus desegregation is coming to the South after a Supreme Court decisin, and most specifically to Montgomery, Alabama."Looping the Loop" The ongoing giant urban renewal project in Chicago, involving turning four access routes into the downtown into expressways and demolishing assorted obsolete factories and ultimately displacing 14,000 people (only 4000 are still to be moved) is reviewed.
The World Overseas Poland is responding to word that it doesn't have to be Stalinist any more by not being Stalinist any more in hopes of getting ahead of public opinion, which is not happy with the Communists. Social Democrats are in trouble in Denmark after the general strike, and Communists are gaining influence. From Russia, revisionism has caught up with the Red Army purges of 1936--8, and the anguished question of how the officers of the Red Army came to inform against each other is raised anew. What did the Tukhachevsky Group really want? Were they heroes, or villains? West Africa is likely due for some turmoil with the fall in cocoa prices. "Blueprint for Apartheid" gets a second installment. It recommends heavy subsidies for Christian missions, and that large amounts of money be loaned South Africa for development of the Black areas by assorted international deep pockets. At this point, both report and story about the report are brought up short by Professor Bischoff's loud throat clearing as he proceeds to explain that this is all Cloud Cuckoo Land and that apartheid is therefore completely impractical, and the sooner you get used to the idea of racial integration, the sooner you'll be over it. As we haven't had nearly enough about the byzantine manoeuvres in Rhineland-Westphalia, it is next off to Wurzburg before finally reviewing the aforementioned commission report showing that New Zealand's experiment in using crushing interest rates to crush inflation and the Labour Party was perfectly justified "Orthodox Finance," and that what the country needs is even more of it since money is still far too easy.Spring Books
"Business Hero" An introductory essay laments that there aren't nearly enough heroic businessmen in British literature. Reviews then open with the English translation of Maurois' life of Victor Hugo, and later MacColl on Roger Casement. I would thrown in Cyril Hughes Harmann on Georgiane Bellamy, except she isn't really a first rank historical figure (famous actress, though!) and the value of the biography lies in the fact that she is an interesting one. In the same vein as Hartmann on Bellamy we have the even more notable Lawrence Stone on Sir Horatio Pallavicino, a secret agent of Elizabeth I, financier, and occasional corsair. Maybe this is one of our heroic businessmen? Lawrence Stone certainly isn't! Buried deep in the section are Anstruther on Dr. Livingstone, and, of course, Stanley, jointly reviewed with the second volume of Wallis' documentary history of the Zambesi Expedition. Even deeper is the first volume of a life of Robert Walpole by J. H. Plumb Perhaps Oliver Simon's Printer and Playground qualifies, but it is as autobiography and those always have heroes.
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| Hands up everyone who heard about the Mycenaean dagger carved into a standing stone at Stonehenge in a science fiction novel. https://stonehenge.archaeoptics.co.uk/scans.html |
The Business World
"Cold Water on Coal" The Coal Board likes to say that it will be able to mine 240 million tons of coal by 1965, so that Britain's energy future is secure. So last Fall it finally surveyed pit managers about what they expect over the next six years, and conclude by putting the 240m ton target to 1970; that is, for deep cut coal, since it will make the 1965 target. but with 10 million tons of upcast taken by surface mining. But for this it needs £860 million in investment (now £1000 million with inflation) through 1965, and 250 million tons is not that much more than the 214m tons of 1953 and 1954, or the 208m tons of 1955. It seems increasingly implausible that the 1965 or revised 1970 target will be met, but what alternative is there?
"Disinflation by Funding" "Now that Britain's effort to stop inflation is so largely entrusted to monetary policy . . ." it is good to hear about some financial wizardry that will help, and which we will now explain in detail.
"Cheaper Titanium" ICI's new reduction method for producing titanium is revisited, and the detailed workings of the operation are laid out in detail.
Business Notes
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| The Dartford Crossing is two tunnels and a bridge. Richard Bird, CC BY-SA 2.0, https://commons .wikimedia.org/w/index.php?curid=6303328nnels and a bridge. |
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| Who exactly is responsible for the "British brains couldn't (didn't) come up with the swept wing," anyway? |
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| There can be a last mover advantage. Too bad for Convair shareholders that it went to the Caravelle. |
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| Farmers need to remember that Ike grew up on a farm and vote for him, never mind that he's screwuip up farm prices. |
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| They really are a slice of old America. |































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