Why Fascism? by Edward Conze and Ellen Wilkinson 1935
Much has been made of the subventions which Hitler got from the big capitalists in order to prove that far from there being any reality in the Socialist tendencies of the National Socialists, Hitler is the paid hireling of the magnates. As this argument has formed the theme of several recent books, and is the basis of much argument about the Nazi movement, we think it wise to call attention to three relevant factors in this connection.
The Financial Backing: First it must be remembered that it was only a section of the capitalists who financed Hitler with any regularity, or with any substantial sums. Apart from the Ruhr groups, which were his mainstay, there were various groups in the south, particularly in the textile and the iron industries. Of course, as the movement grew, the number of those who thought it wise to pay ‘fire insurance premiums’ to the coming power increased. In 1929, Hitler spoke before 300 industrialists at a meeting arranged by Herr Thyssen. In 1932, his audience, drawn from the same class, numbered 2000. But, on the whole, those who financed him were the more bankrupt elements, who had everything to gain by a change. The more solid men preferred to rely on bourgeois parties of their own, and to share on reasonably good terms with the powerful trade unions.
These included the chemical trusts, some big banks and the other half of the Ruhr industry. Only since 1932 the steel and coal industry have given fairly regular subsidies, and they were needed, for at this time the Storm Troopers were said to be costing 1,600,000 marks per month.
To maintain so large a private army and extensive propaganda did, of course, need enormous funds, but even so these were only provided in part by capitalist subsidies. From the first, Hitler laid down the rule which has proved so successful in the case of the Salvation Army that propaganda must pay not only for itself but bring in money to the cause.
The Nazi newspapers were self-supporting. Hitler insisted that they must be run on commercial lines. As they were interesting and full of scandal they had a large sale. The great meetings were a considerable source of income. These big demonstrations were always magnificently stage-managed, crowded and stimulating. But they had to be paid for. Front seats in the first 10 rows cost the equivalent of an English pound and the rest in proportion.
The Nazi Party soon developed ingenious ways of getting money both from supporters and the public. In fact by 1930 it had become a huge business concern. An insurance company was formed for the Storm Troopers. A cigarette company was founded which could count on a vast and growing market among Nazi supporters, with whom it was a point of honour to smoke the party cigarettes. Even if the quality was mediocre, the slogans on the packets were all right. Bonds were issued with the inscription: ‘Y has given X marks in the time of Germany’s deepest distress.’ The petty bourgeois could hang this up with pride in his sitting-room. It might in certain districts be a good investment to hang one showing a big donation if he kept a shop.
Those who wanted to make the best of both worlds could become ‘secret members’ by the regular monthly payment of at least four marks a month. Nazi secretaries were most tactful about the secrecy, especially to nervous officials and business people who wanted to be sure ‘in case...’. In addition to these, of course there were many hundred thousands of ordinary paying members. Money was collected by Storm Troopers at every street corner, particularly at election time. Levies were put on middle-class supporters and on anyone whom fear or hope could squeeze money out of. Uniforms, office equipment, most of the things needed were bought on credit. Food supplies were collected from friendly or frightened shopkeepers. In short, the Nazis had numberless ways to get money. They could raise it because the booty they were after was the German Empire itself. Many would sacrifice a little in order to be assured of a slice from so large a cake. Hitler pursued the old tactics of Cæsar, who made people believe that one day he would rule Rome, and on this belief got large sums of money. Hitler, like Cæsar, ‘pawned the state before he had it in order to get it’.
The relative proportions supplied by the capitalists and by the Nazis’ own efforts will never, probably, be made public. But even granting that the amount supplied by the capitalists was the greater, what exactly does that prove? That the capitalists still have a hold over Hitler... that is obvious, but why? ... and which?
The Possibility of Sabotage: Gratitude, in politics as in business, is a lively sense of thanks for favours to come. Not the money which has been paid obliges a party, but the amount that is expected from the same or different sources. Hitler in fact seems to have been rather punctilious in paying back his debts by the expected favours.
The motor companies, the steel magnates, certain great engineering firms, have all received the hoped-for concessions. Is this to clear the account or to collect further help as needed? Whichever be the correct reason the past finances have become irrelevant to the issue.
To dwell on the subsidies that have been received and to build upon them a whole theory about the probable lines of Hitler’s future policy leads inevitably to error. To exclaim with joy over each subscription unearthed from a newspaper or through some report and conclude from that that the Nazi government is in some way bound to the subscriber obscures the much more effective pressure which the capitalists as a class can exert on the Hitler government, and of which much more notice has to be taken than any consideration of past favours.
Not once but on several occasions since the war, governments more powerful than the Nazi government have been brought to heel by the use of the weapons which finance capital holds. At any time they choose foreign capitalists can throw their marks on the international market, ruin the exchange and by that means upset the whole German economic system. Such a drastic method is only resorted to in the last event because of its repercussions on the world market. But even for the home capitalist there remains the effective weapon of internal sabotage and the threat to close down works and throw the workers on the streets for the state to support them. A crisis of this kind was threatened by the German industrialists in May and June 1933.
As Roosevelt is finding, the preservation of the capitalists will always create ‘disturbance’ to a planned economy. It is possible to put a recalcitrant worker into a concentration camp, and it is easy to find another to take his place in the factory. The resistance of the capitalists cannot be broken in this piecemeal way. If they see that their profits are in danger they simply lose interest in production and stop working. Theoretically, of course, a few months in prison or a concentration camp would bring them to reason. This is possible in individual cases. The Nazis have even tried it – on foolish employers who made their attitude too clear. But who is to decide whether a factory owner who protests his willingness to do his best is unsuccessful as a result of error, or of the conditions of the market, or of deliberate sabotage? This form of resistance by the employers to a planned economy can only be broken by Socialists who are willing and able to take over themselves the organisation of production.
The Experts: There still remains to the present organisers of finance and industry the most subtle weapon of all. Who understands how modern banking works? How mysterious are the things that happen when even one part is thrown out of joint. The Russians have had to pay enormously for their cheerful assumption that the essentials of the banking system could be grasped by any intelligent worker.
The Nazis, who feel themselves quite equal to writing a new religion, are obviously worried and insecure in face of the modern credit system. With the memories of the inflation still green in German minds they know that here is the heel of Achilles. Among their own ranks the Nazis have few, if any, first-class experts on economics. The others (those that are worth anything) are in the pay of the biggest capitalists trusts. The Nazi leaders do not dare to penetrate too far into this bog alone. Hence the enormous power and influence wielded by men like Dr Schacht. And this influence really cannot be attributed to any subscription to Nazi Party funds which Dr Schacht may generously have contributed during the Brownshirts’ march to power.
The necessity of preserving some kind of balance between incompatible elements leads to those sudden oscillations in policy which leave the world blankly wondering ‘what Hitler really means’. In Italy, as in Germany, the main task of the Fascist leader is to act as the registration apparatus of the strength of the economic forces in the country.