Economic League

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Summary

Established in 1919 by conservative politicians and industrialists, the Economic League was a pro-capitalist and anti socialist propagandist group. In public it conducted a “Crusade for Capitalism” targeted at the workforce of local members’ factories, and a against the ‘subversion” of trade union activism and left of centre political parties. Behind closed doors it set up and ran a blacklist of allegedly “subversive” workers, available to member companies. After the Second World War the League continued both strands of propagandist activity and continued to campaign for capitalism especially through partisan apprentice training, and against activism through pamphlets and media stories and more clandestinely through a blacklist made available to members. However from the 1970s its role in pro-capitalism lobbying became less important as a result of the changes to the structure of the workforce in the UK and the demise of Industrial training and apprenticeships, . The League focused on campaigning against trade union activism and continued to provide a blacklisting service for member companies. Construction and Engineering Companies paid an additional premium for this service in their industries and became subscribers to the Economic League Services Group. The League’s income and importance as a pro capital and anti-activist lobbyist declined during the 1980s with an economic recession that reduced the number of corporate members, and Government sympathetic to their political views. Attempts to rationalise and restructure the League lead to internal disputes and at least one discontent employee leaking information and documents to journalists about the Leagues’s continuing blacklisting activities. There was a series of damaging media exposes, notably by World in Action and by Journalist Richard Norton Taylor writing in the guardian, and Paul Foot writing in the “Mirror”. This investigations led the UK Parliament’s Employment Select Committee to conduct a public inquiry into the League’s activities. Its final report in 1992 was highly critical of their blacklisting activities. In 1993 the Economic League was placed in liquidation and wound up. It claimed that the blacklist had been destroyed. The Employment Relations Act 1999 made provision for blacklisting to be made illegal through regulations, these were not however enacted. In 2009 the Information Commissioner’s Office raided the offices of an trade association called The Consulting Association run by a former employee of the Economic League This group had continued to run the Services Group blacklist on behalf the construction companies who had subscribed to it, and he was prosecuted and fined for breaches of the data protection laws. Following this prosecution the Employment Relations Act 1999(Blacklists) Regulations 2010 were finally enacted making Blacklisting Illegal in the UK. There were more than 3,000 workers on The Consulting Association blacklist. A Blacklist Support Group was established with support from trade unions and trade unionist with high profile campaigns against blacklisting companies and private prosecutions. These are continuing. In the UKParliament another Select Committee - The Scottish Selected Committee - decided to examine the current reality of the blacklisting calling number of former Economic League Employees and corporate supporters to give evidence.

History, People & Companies

Origins & Early Organisation

In 1919 a meeting of senior conservative industrialists and politicians was held at the offices of National Publicity Agency, lobbyists for the brewery owners. It was convened by Admiral William Reginald Hall who had retired as the wartime head of naval intelligence to become a Conservative MP for a Liverpool constituency in the hastily called post-war election.

Founders

Also at the meeting were:

National Propaganda

The outcome of this meeting was the creation of a new group to confront and undermine what they saw as a trade union, socialist and communist threat to capitalism within the workplace. This new group was placed within an existing group with anti socialist objectives called the British Commonwealth Union as its National Propaganda Committee but quickly acquired an identity of its own - becoming known simply as National Propaganda. National Propaganda seems to have acted as part co-ordinating body, part public relations agency for a large number of groups campaign for right wing causes and single issues - the British Empire Union, National Citizens Union, National Alliance of Employers and Employed, Industrial League and Council, Industrial Welfare Society, Christian Counter Communist Crusade, Children’s Faith Crusade, the Economic Study Clubs. The League’s main early functions were propagandist. It conducted a “Crusade for Capitalism” targeted at the workforce of local members’ factories, and a wider public campaign campaign against the ‘subversion” of trade union activism and left of centre political parties. To support its campaign against activists, the League gathered information from a variety of public and private sources. It published pamphlets naming activists and organisations of which it regarded as subversive. Under the enthusiastic direction of Reginald Hall and Richard Kelly, National Propaganda developed a regional structure, with membership made up of conservative politicians and/or employers.

Early Organisation

By 1924 the League’s local Structure included:

Royal Central Chambers, Manchester Chairman: Sir William Clare Lees Central Council Representative: Lieutenant Col. Sir Alan J Sykes. Executive members: F. W Astbury, MP In 1923- 24 it held 1,417 meetings of various sorts attended by 333,497 people.

10 Hatton Gardens Chairman: Sir Max Muspratt Executive members: J. Sandeman Allen, MP. It claimed to have held 200 meetings. Greater London Economic League: 2 Millbank House Chairman: Neville Gwynne. In 1923- 24 it held 595 meetings were attended by 145,000 people. "A special feature of propaganda in London", it claims "Dinner- hour talks" to employees inside factories". The work of the League's paid workers was by 1923 being augmented by "25 working men, all of whom are trades unionists and constitutionalists”.

46 Stuart Street, Cardiff. Chairman: Frank Shearman Executive members: James Miles.

In 1923- 24 it held 751 meetings attended by 111,000 people.

In 1923- 24 it held more than 1,000 meetings

In 1923- 24 it held 347 meetings attended by 32,000

In 1923- 24 it held 295 meetings with a total attendance of 32,000

In 1923- 24 it held 133 meetings attended by 5,400 women and 74 study circles with a total attendance of nearly 1,000. A potentially fascinating area of the League's work, it disappears in subsequent reports.

10 Leazes Terrace, Tyne and Wear Branch Branch Office for Newcastle,Tees and Hartlepool. Central Council Representative: Launcelot E. Smith Tyne and Wear executive members: Clive Cookson, Major General Sir R A Kerr Montgomery

5, Myrtle Street, Hessle. Chairman: G. F. Robinson It noted its gratitude to the local press for "the very comprehensive reports they have given of the meetings in the area". They also recorded the establishment of a branch of the "Children's Faith Crusade" in February 1923. "Results to date are encouraging" and reports ".... The largest Communist Sunday School has been closed".

Hector House, Newbarns, In 1923- 24 it held 1578 meetings included afternoon classes for the unemployed.

Chairman: Gilbert Vyle This regional branch of the Economic League operated over a massive area which included Derbyshire, Leicestershire, Nottinghamshire, Staffordshire, Warwickshire and Worcestershire. It claimed to have been particularly active 1923- 24 in mining areas during a ballot of miners on the National Wages Agreement - "it being of interest to note that in all areas where the League concentrated the vote was for acceptance of the terms submitted”.

A small and short-lived branch of the League run from the Lancashire and Cheshire and Liverpool offices.

The First Labour Government, and the Leadership of Aukland Geddes

In October 1922 the the post-war coalition collapsed. and the liberal Prime Minister, Lloyd George, was replaced briefly by Bonar Law and then, in May 1923, by Stanley Baldwin. One of the first things Law had done was to appoint Reginald Hall as Principal Agent of the Conservative Party. He was the only serving MP ever to be Principal Agent of the Conservative Party. Following he election on December 6 1923 the Conservatives were the largest party, but they had lost their overall majority and Hall was one of 90 Conservative MPs to lose their seat. They couldn’t secure the support of the Liberals so in January 1923 the Labour Party formed it first minority government under Ramsay MacDonald. In March Baldwin sacked Hall as Principal Agent of the party, and the leadership of National Propaganda was passed to Sir Aukland Geddes. The former government minister and US ambassador was only in charge of the Economic League for a year before going to head up the Rio Tinto mining company, Later Rio Tinto Zinc. His Brother Eric Geddes, another former Conservative minister, was at the same time President of the Federation of British Industries. Under his brief stewardship Geddes was a major reorganisation of the League.Geddeschanged the name of National Propaganda to The Central Council of the Economic Leagues and in 1926 it became The Economic League. He was the President of the Central Council on a salary of 4,000 gbp. Geddes also consolidated the blacklisting of workers whom they believed to be political and trade union activists or supporters: "One of the first tasks initiated by Sir Auckland Geddes was the compilation of a chart and dossier of socialist and subversive organisations and their interlocking directorates. Arrangements are in hand for a permanent clearing house of information in connection with alien organisations and individuals. A document containing a considerable body of information on "red" ramifications and methods had already been circulated in confidence to district Economic Leagues. Supplements to the documents will be circulated from time to time.”

"The National Campaign to Combat Socialism"

Geddes’ salary as President of the League was 4000gbp , a very substantial sum for the time, indicating the level of investment that was going into the League and it satellite organisations. On April 8th of 1924 the British Empire Union launched an appeal for £100,000 per year to support a "National Campaign to Combat Socialism". That income would today be worth around £2.5m. Contributors were asked to mark subscriptions for either the General Fund, British Empire Union or National Citizens Union. The appeal was signed by Colonel O. G. Armstrong, president of the Federation of British Industries; Sir Vincent Caillard, of Vickers; Lord Gainford, coal owner; Lord Invernairn; Sir Allan Smith, chairman of the Engineering Employers Federation; Sir Alan Sykes, chairman of the Bleachers association; and Evan Williams, president of the Mining Association of Great Britain. It was to be a fighting fund for the the next election, which would be th third in two years. The League’s 5th annual report reflected their role in opposition to the Labour Government: "The period covered by the Annual report witnessed the establishment in office of the first Labour-Socialist Government. The question whether or not "Labour" is fit to govern has thus become academic. "Labour" HAS governed and a cabinet of Socialists is tacitly accepted by the nation as a potential alternative to a Cabinet of Constitutionalists.” It goes on to argue: "The fact that there were found five and a half million British citizens willing to place in power as well as in office a body of men plunged in uneconomics, pledged to the nationalisation of industry, and plighted in troth to subsidise Russian Bolshevism with British savings, is a measure of the educational work that remains to be done.”

The "Zinoviev Letter"

MacDonald’s minority government only lasted until November. during which most of its activity was devoted to attempting to reach an agreement with the Russian go

People

A Who’s Who of the Economic League

The following list takes two historical snapshots of the membership of the Economic League's main governing bodies: in the mid 1920's and at the time of the formation of the Limited Company in 1951. "1925", "1926" or "1927" after a name indicates the first known date of appointment; in some cases it might have been earlier be earlier. "1951" indicates that the person was a founding member of the Economic League Co Ltd. As as the way of things in Powerbase titles have been omitted in the name. however the are given at the end of the entry to assist in identification in other documents.

Companies

Companies Making Subscribing to the Economic League

Those marked + had a Director on the League's Central Council 1975-1989

Resources

Publications on the Economic League

“Blacklist: Inside Story of Political Vetting”, Mark Hollingsworth, Richard Norton-Taylor, The Hogarth Press, London, 1988, ISBN 9780701208110

Parliamentary Reports:

Scottish Affairs Committee - Thirteenth Report: Blacklisting in Employment-Update: Incorporating the Government's Response to the Sixth Report of Session 2013-14, May 2014, http://www.publications.parliament.uk/pa/cm201314/cmselect/cmscotaf/1291/129102.htm

Scottish Affairs Committee  - Oral and Written Evidence, Blacklisting in Employment, February 2013, http://www.publications.parliament.uk/pa/cm201213/cmselect/cmscotaf/156/contents.htm, see also http://www.publications.parliament.uk/pa/cm201213/cmselect/cmscotaf/writev/blacklisting/winder/contents.htm and http://www.publications.parliament.uk/pa/cm201213/cmselect/cmscotaf/writev/blacklisting/kerrcontents.htm


2nd report, session 1990-91 : recruitment practices. Vol. 1, Report Great Britain. Parliament. House of Commons. Employment Committee. Employment Committee, London : HMSO, 1991. ISBN 0 10 273691 X

This is not available online. The full recommendation reads: "Under the Consumer Credit Act 1974, any consumer denied credit can obtain the name of any credit reference agency consulted, and can thereafter obtain details of the information held about them. WE BELIEVE THE SAME SHOULD BE TRUE OF INFORMATION ABOUT POTENTIAL EMPLOYEES SUPPLIED TO THE EMPLOYER BY ORGANISATIONS KEEPING SUCH INFORMATION; IF THE POTENTIAL EMPLOYEE IS REFUSED EMPLOYMENT THE INFORMATION SHOULD BE PASSED ON TO THE EMPLOYEE; INDEED IT SHOULD BE PUT TO THE EMPLOYEE SO AS TO PROVIDE A CHANCE FOR THE EMPLOYEE TO REFUTE IT. "WE ALSO RECOMMEND THAT LEGISLATION SHOULD PROVIDE THAT, WITH THEEXCEPTION OF PREVIOUS EMPLOYERS PROVIDING REFERENCES, ALL ORGANISATIONS SUPPLYING INFORMATION ABOUT POTENTIAL EMPLOYEES SHOULD BE SUBJECT TO LICENSING AND TO A CODE OF PRACTICE, PERHAPS SIMILAR TO THE LICENSING SYSTEM FOR EMPLOYMENT AGENCIES UNDER THE EMPLOYMENT AGENCIES ACT 1973. "We believe that the recommendations we have made would go some way to lessening the disadvantages faced by those who apply for jobs at companies using the services of organisations who provide information about them."

Web Page: http://spiesatwork.org.uk/

Economic League publications

Notes

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