From The Communist Constitution vs. The United States Constitution
by Whitney H. Slocomb, 1955

Referring back to the idea of Socializing industry as the logical start of the process of establishing Socialism by peaceful and lawful methods, we find that Fascism will bet the result.

Peaceful and lawful methods obviously will cause us to attempt to socialize industry first, before attempting to socialize land and money, as is happening in England today [1955]. This is probably the real reason why Russian Communists want to overthrow our government by force and violence.

The above situation virtually has caused present-day politics to become a race between money-owning Fascists, and Communists, to see who will first grab power by appointing, or causing to be appointed an economy-planning dictator.

In order to Establish Socialism without a rebellion or revolution bloody enough to destroy private property in land and money, the nation will have to purchase industry, as it is doing in England, today. In this case, through the issuance of national bonds to buy the industry and thus borrowing the money from the money owners and thus establishing an increased national debt, the nation merely will transfer the debt to the money owners, from industry to the nation.

Then, the People will begin to pay the same amount of interest as before, not as high prices for goods, but as higher taxes. What they will save in lowered prices of goods, will be lost in higher taxes.

In addition, the probability will be that the nation will buy the outstanding, capitalized, sellable stock (really evidences of borrowed money), and then buy the physical property of the industry separately, without realizing that the money represented by the stock was used to buy, and to build the industry. This will be a double loss.

But when the State will use the usual conventional methods of buying an industry (through a bond issue which, in being sold is really the process of borrowing money), the result will be merely that the nation will assume the debt of the industry to the money owners.

The People, in reality, are groping about trying to conceive, and to grasp, and to crystallize, and to find the idea of the ,I>social credit of the individual for his share of the goods he helped to produce in our system of mass production.

The people seek economic justice and the elimination of parasites on the economic body. They know that the State has some sort of a tangible responsibility relative to the distribution of gods in cooperative, mass production, and, without thinking it through, think that Karl Marx�s idea of government ownership of industry and land and money will satisfy this instinctive knowledge.

But, when the State thus will buy, and assume the debt of the industry, there will be not one iota of benefit to the People, and the result will be what the People think will be Socialism. But what it really will be will be State Capitalism, and what will SEEM to be State Capitalism, really will be Fascism and rule by a dictator who will be forced, by the power of debt, to take orders from the money-owning owners of corporate industrial monopoly.

In this manner, the People of England, today, think that they have Socialism, but what they really have is dictatorial, fascistic rule by an oligarchy of money owners similar to the dictatorial Fascism of Mussolini in Italy.

The People of England, today, are ruled by those who really are the erstwhile, hated, capitalistic, fascistic, monopolistic owners of industry—the money owners.

In Socialism, the People of England are still ruled by their capitalistic oppressors. As owners of a national debt, the position of these owners of money and industry is more impregnable than it was when they merely owned the industrial debt. The payment of interest collected as taxes, causes the people-peonizing incomes of these money owners, to become more certain than they were when their incomes came from dividends of stock that could become bankrupt.

However, if the People could not, or would refuse to pay interest on the national debt any longer, the State might go �bankrupt.� But in this case, the money owners legally could force the courts to appoint a receiver in bankruptcy for the state corporation. That �receiver� then would be obligated to �dictate to,� or manage, or �plan industry� in such a way as toe preserve dividends and interest at the expense of wages. That dictator when would be our Fascistic dictator, with the result that the masses would become really peonized.

Thus, as long as we drift along as we are, the money owners are bound to come out on top as our rulers. The only formula that will prevent it, will be our proposed money reforms and land reforms. And, these must be inaugurated now—today, in order to prevent the ultimate rule of the money owners through a dictator who will take the form of a resurrected, medieval, feudalistic monarch or king. The money owners are, and will be the real, enslaving rulers in either Capitalism, or Fascism, or Socialism, or Communism, or State Capitalism.

( pages 120 - 123 )

* * *

Socialism Will Result In Fascism

. . . in peace, the people naturally will turn to socializing industry as a first step towards the socialization of land and money and industry, as outlined by Karl Marx in the �Communist Manifesto� of 1848.

This socialization of industry would benefit the masses of the people but little, because, in socializing industry in peace and by lawful methods, the debt of industry to the money owners merely would be assumed by the State.

To buy the industries from their private �owners�, the State would have to issue bonds. The issuance of bonds to buy these private industries, would merely change the industrial debt to a national debt, while the interest on this debt merely would be changed to taxes.

This nationalization of industry also will establish a dictatorial, industrial planner or government employer of all men in industry.

Then, this government employer will have to choose whether to

(1) Destroy money owners and land owners and their unearned incomes of rents, if he would help the masses to have a higher standard of living, as we have found, or

(2) Take orders from these money owners and land owners and allow them to keep their unearned incomes of rents.

If he will take orders, then we will become a fascistic Corporate State, a la Mussolini, in Italy. The owners of private industry (the money owners) will absorb the functions of government, and private industry will be government.

If he will abolish money owners and land owners, he will establish the State Capitalism of Communism.

But, he won�t have the power to abolish money owners and land owners without an accompanying rebellion and revolution bloody enough to destroy private property in land and money, as Stalin was enabled to do, because of the revolution.

So, Socialism, in peace, will turn into Fascism and a rule by an agent of the money owners. . . .

. . . Socialism and government ownership of industry, established in peace and by lawful means, must result in Fascism and the Corporate State, and rule by an agent of the money owners. And, anything that will be a tendency to strengthen the power of central government . . . will be a trend toward Socialism and Communism (which will turn into Fascism).

On the other hand, a growth of private monopoly and debt to the money owners, will be a tendency to take a direct route towards Fascism.

( pages 394 - 396 )

To have free enterprise truly, these must be no government interference with business, as long as business is motivated to produce wealth, as individuals, and it does not infringe on the right of others to do the same.

Incidentally, the only reason for government is to

(1)To restrain criminal, selfish, unsocial activities of individuals in the group or tribe or nation, and

(2) To be the organization for self-defence incase of a need for defence against the criminal aggression o the part of the person or groups or tribes or nations.

* * *

On the other hand, what about Fascism ? As a concept of Fascism, let us say that anything which tends to concentrate the ownership of
(1) Industry and
(2) Land and
(3) Money
in few and fewer, private hands, is a tendency towards Fascism.

Tendency Towards Fascism

Why is this a tendency towards Fascism ? Because it is the power that Socialists and Communists hate and fear. They recognize it as their mortal enemy. it "exploits" and robs them of their labor products. it is the force which they call "Capitalism." It is the power which to pay profits and rents of money and land, robs the wages of all the men engaged in the genuine production of wealth (including employers).

What is the chief thing which concentrates the ownership of land and money and industry into the hands of fewer and fewer persons ?

Is it the re-investment of unearned incomes of rents and profits not needed to buy goods to consume in the process of living, and the fact that these incomes can be made thus to increase without limit, as by a vicious cycle.

Ultimately, these increasing incomes of unearned rents and profits, will cause industry and land and money to become owned by so few who will get such large incomes, that these few virtually will absorb and become government.

This government will be Fascism.

These few owners of industry and land and money ,i>will become Fascistic government by a process of
(1) Increasing the government's debt to them, as money owners, and this will be coincidental to
(2) Allowing the

(A) Corruption and
(B) Decay and
(C) Bankruptcy
of true government.

Then, when the money-owning owners of industry (through a capital debt to them) will have absorbed and replaced the true government, and the owners of industry will be government, industry will be planned by a Fascistic dictator in the interests of these money owners who will
(1) Own industry and
(2) Will have abolished land owners (as independent powers) through the purchase of land in the process of making investments of capitalized money (money not needed to buy goods to consume in the process of living).

There are several ways by which either, or both Communism and/or Fascism can be brought into existence:
(1) We can go directly to one or the other by either

(A) the Will of the people, in a lawful and orderly manner, by the process of electing men dedicated to the establishment of one or the other, or by
(B) A rebellion and revolution led by men dedicated to one or the other.

(2) Present-day trends will take us to one or the other, inevitable. By this, we mean that forces tending towards one or the other are running neck and neck relative to the power of their influence on the present-day set-up.
(3) In the process of establishing Socialism or the government ownership of industry, as a step towards Socialism in a peaceful and orderly manner of law, the product will turn into Fascism before our eyes.

Result of State Ownership

What will be the result of State ownership of land and money and industry ? It will be the State Capitalism of Communism similar to that which exists in Russia today [1955].

What will be the result when private, corporate industry will grow so large as to absorb, and cause true government to become subsidiary to it, thus peonizing the ordinary individual. It will be the Corporate State of Fascism similar to that which existed in Italy under Mussolini.

On the path to Socialism, Germany, under Hitler, was stopped by the land owners of Germany, after he partially socialized industry and money. The result was that, at the height of the war, Germany was a modern system of mass production superimposed on a medieval system of government by the baron in his castle on the hill.

When we realize that Hitler and Mussolini and Stalin all three started out in life as Socialists, the above reasoning becomes significant.

Boston : Meador, 1955.