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Some thoughts on 1949 Australian election

Magniac

Heh, 4 or so blocks north, that's interesting
Something I posted at the other place, which sums up my starting point for thinking about the federal election that brought the Liberal-Country Coalion to power, and lead to Labor being consigned to Opposition for 23 years:

This is a subject close to my heart, the first substantive debate I ever had on this site was about one important yet misconstrued aspect of the 1949 election.*

Anyway, all the reading I've done over the years since then on this subject has brought me to the conclusion that Ben Chifley always had a fight on his hands for a third full-term, or a fourth term in total (Labor had taken power in the middle of the 1940 parliament), but he signed the death warrant on a close result between, (a.) his attempts at bank nationalisation starting in 1947 (and more specifically, the fact that it was drawn out right through to the middle of 1949, thanks to Evatt's foolish Privy Council appeal strategy), and (b.) the reintroduction of some rationing after the devaluation of the Australian Pound in late 1949, said devaluing being done in conjunction with the UK Pound sterling devaluation.

Rereading Ross McMullin and David Day on these subjects, I find that a theme of Chifley's leadership in those two years is of complacency and emerging inflexibility, which explains that two-year-long political strategic failure I identify playing out. But then I recently read Julie Suares' book on his belief in internationalism, which highlights subtle, engaged elements of his leadership which have never been properly appreciated, and also, among other things, simply retells the story of his victory in getting Labor to support Australia signing the Bretton Woods agreement. That treaty fight is something which has always been viewed as an example of Chifley still being very pragmatic, still being very much on top of internal party political strategy, right in the very same year he made his fatal mistake on banking. So I think Labor could have made 1949 competitive with just a few realistic changes on the part of Chifley and others.

As a base PoD, I'd simply have a combination of, (a.) the public service's high finance expert, Nugget Coombs, not being overseas at a conference with his minister, John Dedman, but being in Canberra when Chifley was receiving news on the Hight Court decision against his banking legislation, and (b.) Chifley not only entering into a deliberative process with Coombs at the Department of Post-War Reconstruction vis-a-vis options, but also reaching out to his old friend ex-treasurer Ted Theodore for advice on what to do (I think Theodore was still healthy enough to travel to Canberra in late 1947, as he was a Packer press board member until 1949). FWIW Coombs in his memoirs declares he would have urged against nationalising the retail banking sector if he'd been present for the decision in August. But he also says that he was perfectly willing to write a position paper citing DeGaulle's nationalisation of France's banks as a viable policy example. I think the combination of complicated devil's advocate advice from Coombs, blunt big-end-of-town advice from Theodore, and perhaps also advice from literally any constitutional lawyer other than H.V. Evatt RE what realistically happens when the High Court gets handed the issue... (Bare in mind, nobody even expected Chifley to go as far as he did IOTL, it was a total surprise!)

Avoiding the banking debacle is the base PoD. That removes the greatest motivating force for conservative middle class mobilisation against socialism (Stuart Macintyre claims the banks put up a fighting fund of £100,000, phenomenal if true; certainly thousands of white collar workers felt compelled to become footsoldiers in this cause, which basically allowed the Liberal Party to reach parity in activism with a historically united and successful Labor movement.)

But I also think a second PoD is needed; Menzies not only has to be denied the political consolidation his Liberal leadership gained in OTL from the bank nationalisation issue, but as Opposition leader his tenure has to be threatened, and at times even downright beseiged, in the two years going to the election. It needn't follow that no bank crusade robs him of all his momentum against a long-in-the-tooth social democratic reformist govt, but it is true that he was not hugely respected by his own side at this time; Ian Hancock's history of the NSW Liberal Party organisation is strong on the idea that it was the nineteen fifties that made Menzies be beloved by his party, not the late nineteen forties.

I think Menzies then facing problems with fellow Coalition MPs, over his welfare state policy of extending child endowment, something very easily demagogued from the Right (who in this scenario would not be usefully diverted over the bank issue) as either Labor-lite socialism, or as a bribe for large Catholic families, plus also a garbled Opposition response to the currency devaluation in September 1949, possibly with Menzies-sceptics talking up committing to 'putting value back in the pound' regardless of the effects on primary exports, is enough to get to a Labor reelection.



*The notion that Chifley's breaking of the NSW coal miners strike in the winter 1949 lead to an actual working class, pro-union revolt at the polls against his government. This is a belief held by many Left sectionalist labour (deliberate use of both the small 'l' and 'u' there) people, in that they draw on the implication that because that strike and its legal suppression were so controversial, it must therefore have been a factor at the election in the exact activist, determinative way they believe it was, i.e. dedicated, militant, working class solidarity voters withdrew their support for Labor, electing the Liberal-Country Party coalition in its stead.

This is, to put it bluntly, contested. Because it's a claim based on either the work of polemicists, or of certain historians inferring things they inevitably all fail to follow through on in their conclusions RE the 1949 election results. When debating this in long ago 2008, I was simply relying on my memory of what Ross McMullin had written in his history of the ALP, what veteran class-of-'49 Labor politician Clyde Cameron wrote in his memoirs, and also the fact that original local New Left historian Humphery McQueen hadn't even bothered to mention it in his then new history of Australian society (a case of absence of evidence being actual evidence of absence, as it turns out).

Going further into the weeds, I find many accounts of 1949 will infer a complex relationship between the demoralising effects of the strike and the ALP's subsequent election defeat, because that is objectively true; but no credible writer will outright endorse the workers' revolt thesis. But it's an important origin myth for anti-Cold War Left ideology in this country, not to mention having been an important element of the revival of anti-parliamentary Left thought at the time.

Recently, the closest thing to an endorsement of the workers' revolt thesis I've come across was by new Evatt biographer John Murphy, who goes close to saying it was an actual determinative factor in the election; but his two sources for this are Clyde Cameron and Kim Beazley Sr. And I know for a fact Cameron never made a causative link between the strike and the psephology of 1949, he simply cited it as a demoralising factor for Labor internally. I haven't read Beazley's book, though it's on my reading list, but I'd be surprised if his conclusion was much different than Cameron's.


Very much a subject I'd like to return to, either in discussing 1949 or the successive events that came out of it.
 
Interesting stuff.

I don't know enough about the 49 election to discuss it in detail. In terms of consequences: Menzies probably goes, right? He's surely developed a reputation as an effective organiser, but a man out of touch with the country, trying to hard for a comeback.

The early Cold War will be very different. On the one hand, there will be no quixotic attempt to ban the Communist party or amend the Constitution to be permitted to do so. That actually helps the Coalition, as it provided something for the left to rally around.

On the other hand, if the Coalition takes power in the early fifties under someone else and gets to kick things off with some version of the Petrov affair before they engage in the legislative red-baiting, that might give them the momentum to ram through their changes.
 
I don't know enough about the 49 election to discuss it in detail. In terms of consequences: Menzies probably goes, right? He's surely developed a reputation as an effective organiser, but a man out of touch with the country, trying to hard for a comeback.

If he doesn't have the bank issue to consolidate his leadership from 1947, and he still goes on a six month world tour in 1948/49 (that's not a typo, he really was out of the country that long) then at that point I think he's only hanging on going into the 1949 election simply because Dick Casey isn't back in parliament yet, the NSW MPs who could challenge him weren't respected enough, and aggressive leadership challenges weren't a thing in that era.

If Chifley wins '49, then the Liberal-Country hierarchy tap Menzies on the shoulder, no question.

The early Cold War will be very different. On the one hand, there will be no quixotic attempt to ban the Communist party or amend the Constitution to be permitted to do so. That actually helps the Coalition, as it provided something for the left to rally around.

On the other hand, if the Coalition takes power in the early fifties under someone else and gets to kick things off with some version of the Petrov affair before they engage in the legislative red-baiting, that might give them the momentum to ram through their changes.

The CPA ban attempt was a pretty outrageous thing, certainly by the time it got to the referendum proposal stage (because the High Court had overturned the bill), I actually wonder if it can be done by any Liberal PM once Korea is winding down vis-a-vis Ike-initiated peace talks, which will be happening in the early months of a Coalition govt winning office by Dec, 1952.

I doubly wonder whether Liberal PM Casey or Lib PM Percy Spender would initiate it. (Btw, I don't see how Labor isn't defeated at an election held at the end of the parliament commencing in 1950; Korean War inflation was too much for a long in the tooth govt to survive. As it was, Menzies had real electoral problems in 1954 thanks to the legacy of his horror budgeting done to quash that inflation, which was several years past at that point.)
 
How much did the banks usually put into a federal election?

I think MacIntyre is probably accurate with that hundred grand figure; I'd go as far as to say it undercounts the volunteer labor of bank workers who were doing a lot of activist work, some being impressed into it, but many being genuine true believers in the fight.

On capitalism in Oz elections, it's an interesting subject, in that the liberal-conservative or non-labour organisations that came together in the Edwardian era to serve as the backbone to the main party opposing the Labor Party were close to being peak industry bodies, and were easily accused of being run from gentlemens' clubland; the ultimate expression of this was the push to recruit Labor defector Joe Lyons to lead the United Australia Party in 1930/31, which is generally considered to have originated as much outside of parliament, in the high tory National Union at Melbourne, as much as in Canberra.

But by the time Menzies reconstitutes the centre-Right into his brand of Liberals, that was all changing, structurally, even as the bank nationalisation fight made it look like it might actually be reaching new heights.

Ian Hancock in National and Permanent?: The Federal Organisation of the Liberal Party Of Australia 1944-1965, goes into detail about how Menzies wanted to get away from this old structure of Nationalist and (loyalist) Union clubs and businessmens' committees controlling the election budgets for the centre-Right. IMO the biggest break he made was to tell the Institute of Public Affairs, the free enterprise thinktank which had emerged out of clubland and peak industry, that it would no longer be a fundraiser for the new Liberals. This was a consequential development, as it meant CD Kemp, the intellectual who ran the IPA, couldn't pursue a vision of building a postwar centre-Right intelligentsia hand in hand with an electoral party organisation, something which the US Republicans were doing in fits and starts throughout this era.

Otherwise, getting middle class men and women into volunteerism for the new Liberals, away from clubland/chamber of commerce direction, was a relatively easy thing in the era of good feeling coming out of wartime victory, from everything I've read. The young veterans sweeping onto the Coalition benches in '49 is the great data point; the specific example of John Gorton, enthusiastic and naive do-gooder, becoming a Menzian Liberal after having been a member of the surprisingly anti-establishment Victorian Country Party, is the most famous example.

Bank nationalisation is a strange, one-off, and final reversion to the mean, when it comes to Australian capitalist leaders and the centre-Right party working so institutionally closely. Menzies had no further need of this integrated relationship once in power. The end result of this are the ideological fights over protectionism and industry policy that break out immediately after he leaves office in '66, but which really must have been incubating for several years while he was still running the show. That leads to Rupert Murdoch and anti-tariff businessmen & econocrats wishing for, helping even, the election of Whitlam Labor in 1972.

In the long run, I'd say the political finance from high finance in the late forties, isn't equalled as an extraordinary monetary intervention, until Clive Palmer this last decade went and started dropping tens of millions into his quixotic vanity campaigns to either win balance of power or outright swing elections.
 
As someone who isn't especially into Australian history- did the collapse of Kuomintang China in the same year have any discernible effect on the 1949 election, with the spectre of the Red Menace and Domino Theory and all that?
 
Good question. It had an immediate effect on the new government's policy, what with the attempt to ban the Communist Party mentioned upthread, but I don't actually know whether it was an election issue in its own right.
 
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