BL-24 - Flipbook - Page 128
A TIME TO REMEMBER
mis昀椀t. Before the war, Churchill
had been interested in social policy;
in昀氀uenced by Bismarck, he believed
in using the State to improve social
conditions and, like Bismarck, he
believed that men brought up in
happier social circumstances would
make better soldiers.
“As Prime Minister, a few
years later, he had to deal
with some of its military
consequences. Fortunately
for Britain and the world, he
was up to the challenge.”
Churchill and others had been
alarmed by the spavined, hollowchested specimens who turned up at
the recruiting of昀椀ces to try to join
up during the Boer War. During the
Liberal government, he was ready to
cooperate with the Webbs – Sidney
and Beatrice, co-founders of the
London School of Economics – and
other reformers to put matters right.
By 1924, however, a new priority
preoccupied the Treasury. In order to
symbolise a full recovery from the
Great War, the weight of establishment
opinion was in favour of rejoining the
gold standard, at the pe-war parity of
$4.86 to the pound sterling.
Initially, Churchill was unconvinced.
By strengthening sterling, the measure
would have been de昀氀ationary and
would also have priced British
goods out of export markets. This
was especially damaging to the coal
industry. In general, bankers would
bene昀椀t from the gold standard,
but manufacturers would suffer.
Recognising this, Churchill declared
that; ‘I would rather see 昀椀nance less
proud and industry more content.’ But
of昀椀cial opinion prevailed, reinforced
by national pride.
The coal owners responded to
decreased revenues by cutting wages.
This provoked a strike, which led
to the General Strike. At that stage,
Churchill’s natural belligerence
kicked in. Baldwin’s conciliatory
instincts were brushed aside. Churchill
Churchill as a war correspondent during the Second Boer War, Bloemfontein, South
Africa, 1900
took charge of the government’s
propaganda, supervising an anti-strike
newspaper, The British Gazette. After
six months, the miners were defeated,
leaving a legacy of bitterness.
What other legacy? By rejoining
the gold standard. Churchill has
often been blamed for laying the
foundations for the Great Depression.
This is unfair. A large number of
factors were involved. The gold
standard, de昀氀ation in America,
over-exuberance on Wall Street, the
crippling of the German economy
through reparations - and a failure to
counteract the slump by widespread
re昀氀ation.
Keynes understood this earlier than
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most and expressed his views in a
coruscating pamphlet. “The Economic
Consequences of Mr Churchill”. This
helped to pin the blame on Churchill,
to an unfair and exaggerated extent.
Almost the entire weight of frockcoated orthodoxy was in favour of
the measures which led to depression,
slump, unemployment and political
chaos. Economic failure incited
Fascism and Communism.
As Chancellor, Churchill could not
have prevented the Great Depression;
as Prime Minister, a few years later, he
had to deal with some of its military
consequences. Fortunately for Britain
and the world, he was up to the
challenge.
