The Boers also feared the mere presence of the uitlanders because they mistook them for British settlers. The uitlanders, however, came solely in order to get rich quickly, and only those remained who did not quite succeed or who, like the Jews, had no country to return to. Neither group cared very much to establish a community after the model of European countries, as British settlers had done in Australia, Canada, and New Zealand. It was Barnato who happily discovered that “the Transvaal Government is like no other government in the world. It is indeed not a government at all, but an unlimited company of some twenty thousand shareholders.”37 Similarly, it was more or less a series of misunderstandings which finally led to the British-Boer war, which the Boers wrongly believed to be “the culmination of the British Government’s lengthy quest for a united South Africa,” while it was actually prompted mainly by investment interests.38 When the Boers lost the war, they lost no more than they had already deliberately abandoned, that is, their share in the riches; but they definitely won the consent of all other European elements, including the British government, to the lawlessness of a race society.39 Today, all sections of the population, British or Afrikander, organized workers or capitalists, agree on the race question,40 and whereas the rise of Nazi Germany and its conscious attempt to transform the German people into a race strengthened the political position of the Boers considerably, Germany’s defeat has not weakened it.
The Boers hated and feared the financiers more than the other foreigners. They somehow understood that the financier was a key figure in the combination of superfluous wealth and superfluous men, that it was his function to turn the essentially transitory gold hunt into a much broader and more permanent business.41 The war with the British, moreover, soon demonstrated an even more decisive aspect; it was quite obvious that it had been prompted by foreign investors who demanded the government’s protection of their tremendous profits in faraway countries as a matter of course—as though armies engaged in a war against foreign peoples were nothing but native police forces involved in a fight with native criminals. It made little difference to the Boers that the men who introduced this kind of violence into the shadowy affairs of the gold and diamond production were no longer the financiers, but those who somehow had risen from the mob itself and, like Cecil Rhodes, believed less in profits than in expansion for expansion’s sake.42 The financiers, who were mostly Jews and only the representatives, not the owners, of the superfluous capital, had neither the necessary political influence nor enough economic power to introduce political purposes and the use of violence into speculation and gambling.
Without doubt the financiers, though finally not the decisive factor in imperialism, were remarkably representative of it in its initial period.43 They had taken advantage of the overproduction of capital and its accompanying complete reversal of economic and moral values. Instead of mere trade in goods and mere profit from production, trade in capital itself emerged on an unprecedented scale. This alone would have given them a prominent position; in addition profits from investments in foreign countries soon increased at a much more rapid rate than trade profits, so that traders and merchants lost their primacy to the financier.44 The main economic characteristic of the financier is that he earns his profits not from production and exploitation or exchange of merchandise or normal banking, but solely through commissions. This is important in our context because it gives him that touch of unreality, of phantom-like existence and essential futility even in a normal economy, that are typical of so many South African events. The financiers certainly did not exploit anybody and they had least control over the course of their business ventures, whether these turned out to be common swindles or sound enterprises belatedly confirmed.
It is also significant that it was precisely the mob element among the Jewish people who turned into financiers. It is true that the discovery of gold mines in South Africa had coincided with the first modern pogroms in Russia, so that a trickle of Jewish emigrants went to South Africa. There, however, they would hardly have played a role in the international crowd of desperadoes and fortune hunters if a few Jewish financiers had not been there ahead of them and taken an immediate interest in the newcomers who clearly could represent them in the population.
The Jewish financiers came from practically every country on the continent where they had been, in terms of class, as superfluous as the other South African immigrants. They were quite different from the few established families of Jewish notables whose influence had steadily decreased after 1820, and into whose ranks they could therefore no longer be assimilated. They belonged in that new caste of Jewish financiers which, from the seventies and eighties on, we find in all European capitals, where they had come, mostly after having left their countries of origin, in order to try their luck in the international stock-market gamble. This they did everywhere to the great dismay of the older Jewish families, who were too weak to stop the unscrupulousness of the newcomers and therefore only too glad if the latter decided to transfer the field of their activities overseas. In other words, the Jewish financiers had become as superfluous in legitimate Jewish banking as the wealth they represented had become superfluous in legitimate industrial enterprise and the fortune hunters in the world of legitimate labor. In South Africa itself, where the merchant was about to lose his status within the country’s economy to the financier, the new arrivals, the Barnatos, Beits, Sammy Marks, removed the older Jewish settlers from first position much more easily than in Europe.45 In South Africa, though hardly anywhere else, they were the third factor in the initial alliance between capital and mob; to a large extent, they set the alliance into motion, handled the influx of capital and its investment in the gold mines and diamond fields, and soon became more conspicuous than anybody else.
The fact of their Jewish origin added an undefinable symbolic flavor to the role of the financiers—a flavor of essential homelessness and rootlessness—and thus served to introduce an element of mystery, as well as to symbolize the whole affair. To this must be added their actual international connections, which naturally stimulated the general popular delusions concerning Jewish political power all over the world. It is quite comprehensible that all the fantastic notions of a secret international Jewish power—notions which originally had been the result of the closeness of Jewish banking capital to the state’s sphere of business—became even more virulent here than on the European continent. Here, for the first time Jews were driven into the midst of a race society and almost automatically singled out by the Boers from all other “white” people for special hatred, not only as the representatives of the whole enterprise, but as a different “race,” the embodiment of a devilish principle introduced into the normal world of “blacks” and “whites.” This hatred was all the more violent as it was partly caused by the suspicion that the Jews with their own older and more authentic claim would be harder than anyone else to convince of the Boers’ claim to chosenness. While Christianity simply denied the principle as such, Judaism seemed a direct challenge and rival. Long before the Nazis consciously built up an antisemitic movement in South Africa, the race issue had invaded the conflict between the uitlander and the Boers in the form of antisemitism,46 which is all the more noteworthy since the importance of Jews in the South African gold and diamond economy did not survive the turn of the century.
As soon as the gold and diamond industries reached the stage of imperialist development where absentee shareholders demand their governments’ political protection, it turned out that the Jews could not hold their important economic position. They had no home government to turn to and their position in South African society was so insecure that much more was at stake for them than a mere decrease in influence. They could preserve economic security and permanent settlement in South Africa, which they needed more than any other group of uitlanders, only if they achieved some status in society—which in this case meant admission to exclusive British clubs. They were forced to trade their influence against the position of a
gentleman, as Cecil Rhodes very bluntly put it when he bought his way into the Barnato Diamond Trust, after having amalgamated his De Beers Company with Alfred Beit’s Company.47 But these Jews had more to offer than just economic power; it was thanks to them that Cecil Rhodes, as much a newcomer and adventurer as they, was finally accepted by England’s respectable banking business with which the Jewish financiers after all had better connections than anybody else.48 “Not one of the English banks would have lent a single shilling on the security of gold shares. It was the unbounded confidence of these diamond men from Kimberley that operated like a magnet upon their co-religionists at home.”49
The gold rush became a full-fledged imperialist enterprise only after Cecil Rhodes had dispossessed the Jews, taken investment policies from England’s into his own hands, and had become the central figure on the Cape. Seventy-five per cent of the dividends paid to shareholders went abroad, and a large majority of them to Great Britain. Rhodes succeeded in interesting the British government in his business affairs, persuaded them that expansion and export of the instruments of violence was necessary to protect investments, and that such a policy was a holy duty of every national government. On the other hand, he introduced on the Cape itself that typically imperialist economic policy of neglecting all industrial enterprises which were not owned by absentee shareholders, so that finally not only the gold mining companies but the government itself discouraged the exploitation of abundant base metal deposits and the production of consumers’ goods.50 With the initiation of this policy, Rhodes introduced the most potent factor in the eventual appeasement of the Boers; the neglect of all authentic industrial enterprise was the most solid guarantee for the avoidance of normal capitalist development and thus against a normal end of race society.
It took the Boers several decades to understand that imperialism was nothing to be afraid of, since it would neither develop the country as Australia and Canada had been developed, nor draw profits from the country at large, being quite content with a high turnover of investments in one specific field. Imperialism therefore was willing to abandon the so-called laws of capitalist production and their egalitarian tendencies, so long as profits from specific investments were safe. This led eventually to the abolition of the law of mere profitableness and South Africa became the first example of a phenomenon that occurs whenever the mob becomes the dominant factor in the alliance between mob and capital.
In one respect, the most important one, the Boers remained the undisputed masters of the country: whenever rational labor and production policies came into conflict with race considerations, the latter won. Profit motives were sacrificed time and again to the demands of a race society, frequently at a terrific price. The rentability of the railroads was destroyed overnight when the government dismissed 17,000 Bantu employees and paid whites wages that amounted to 200 per cent more;51 expenses for municipal government became prohibitive when native municipal employees were replaced with whites; the Color Bar Bill finally excluded all black workers from mechanical jobs and forced industrial enterprise to a tremendous increase of production costs. The race world of the Boers had nobody to fear any more, least of all white labor, whose trade unions complained bitterly that the Color Bar Bill did not go far enough.52
At first glance, it is surprising that a violent antisemitism survived the disappearance of the Jewish financiers as well as the successful indoctrination with racism of all parts of the European population. The Jews were certainly no exception to this rule; they adjusted to racism as well as everybody else and their behavior toward black people was beyond reproach.53 Yet they had, without being aware of it and under pressure of special circumstances, broken with one of the most powerful traditions of the country.
The first sign of “anormal” behavior came immediately after the Jewish financiers had lost their position in the gold and diamond industries. They did not leave the country but settled down permanently54 into a unique position for a white group: they neither belonged to the “lifeblood” of Africa nor to the “poor white trash.” Instead they started almost immediately to build up those industries and professions which according to South African opinion are “secondary” because they are not connected with gold.55 Jews became manufacturers of furniture and clothes, shopkeepers and members of the professions, physicians, lawyers, and journalists. In other words, no matter how well they thought they were adjusted to the mob conditions of the country and its race attitude, Jews had broken its most important pattern by introducing into South African economy a factor of normalcy and productivity, with the result that when Mr. Malan introduced into Parliament a bill to expel all Jews from the Union he had the enthusiastic support of all poor whites and of the whole Afrikander population.56
This change in the economic function, the transformation of South African Jewry from representing the most shadowy characters in the shadow world of gold and race into the only productive part of the population, came like an oddly belated confirmation of the original fears of the Boers. They had hated the Jews not so much as the middlemen of superfluous wealth or the representatives of the world of gold; they had feared and despised them as the very image of the uitlanders who would try to change the country into a normal producing part of Western civilization, whose profit motives, at least, would mortally endanger the phantom world of race. And when the Jews were finally cut off from the golden lifeblood of the uitlanders and could not leave the country as all other foreigners would have done in similar circumstances, developing “secondary” industries instead, the Boers turned out to be right. The Jews, entirely by themselves and without being the image of anything or anybody, had become a real menace to race society. As matters stand today, the Jews have against them the concerted hostility of all those who believe in race or gold—and that is practically the whole European population in South Africa. Yet they cannot and will not make common cause with the only other group which slowly and gradually is being won away from race society: the black workers who are becoming more and more aware of their humanity under the impact of regular labor and urban life. Although they, in contrast to the “whites,” do have a genuine race origin, they have made no fetish of race, and the abolition of race society means only the promise of their liberation.
In contrast to the Nazis, to whom racism and antisemitism were major political weapons for the destruction of civilization and the setting up of a new body politic, racism and antisemitism are a matter of course and a natural consequence of the status quo in South Africa. They did not need Nazism in order to be born and they influenced Nazism only in an indirect way.
There were, however, real and immediate boomerang effects of South Africa’s race society on the behavior of European peoples: since cheap Indian and Chinese labor had been madly imported to South Africa whenever her interior supply was temporarily halted,57 a change of attitude toward colored people was felt immediately in Asia where, for the first time, people were treated in almost the same way as those African savages who had frightened Europeans literally out of their wits. The difference was only that there could be no excuse and no humanly comprehensible reason for treating Indians and Chinese as though they were not human beings. In a certain sense, it is only here that the real crime began, because here everyone ought to have known what he was doing. It is true that the race notion was somewhat modified in Asia; “higher and lower breeds,” as the “white man” would say when he started to shoulder his burden, still indicate a scale and the possibility of gradual development, and the idea somehow escapes the concept of two entirely different species of animal life. On the other hand, since the race principle supplanted the older notion of alien and strange peoples in Asia, it was a much more consciously applied weapon for domination and exploitation than in Africa.
Less immediately significant but of greater importance for totalitarian governments was the other experience in Africa’s race society, that profit motives are not holy and can be overruled, that societies can function according to princip
les other than economic, and that such circumstances may favor those who under conditions of rationalized production and the capitalist system would belong to the underprivileged. South Africa’s race society taught the mob the great lesson of which it had always had a confused premonition, that through sheer violence an underprivileged group could create a class lower than itself, that for this purpose it did not even need a revolution but could band together with groups of the ruling classes, and that foreign or backward peoples offered the best opportunities for such tactics.
The full impact of the African experience was first realized by leaders of the mob, like Carl Peters, who decided that they too had to belong to a master race. African colonial possessions became the most fertile soil for the flowering of what later was to become the Nazi elite. Here they had seen with their own eyes how peoples could be converted into races and how, simply by taking the initiative in this process, one might push one’s own people into the position of the master race. Here they were cured of the illusion that the historical process is necessarily “progressive,” for if it was the course of older colonization to trek to something, the “Dutchman trekked away from everything,”58 and if “economic history once taught that man had developed by gradual steps from a life of hunting to pastoral pursuits and finally to a settled and agricultural life,” the story of the Boers clearly demonstrated that one could also come “from a land that had taken the lead in a thrifty and intensive cultivation...[and] gradually become a herdsman and a hunter.”59 These leaders understood very well that precisely because the Boers had sunk back to the level of savage tribes they remained their undisputed masters. They were perfectly willing to pay the price, to recede to the level of a race organization, if by so doing they could buy lordship over other “races.” And they knew from their experiences with people gathered from the four corners of the earth in South Africa that the whole mob of the Western civilized world would be with them.60