The Marconi scandal was a British political scandal that broke in mid-1912. Allegations were made that highly placed members of the Liberal government under the Prime Minister H. H. Asquith had profited by improper use of information about the government's intentions with respect to the Marconi Company. They had known that the government was about to issue a lucrative contract to the British Marconi company for the Imperial Wireless Chain and had bought shares in an American subsidiary. [1]
Allegations and rumours about insider trading in Marconi shares involved a number of government ministers, including Lloyd George, the Chancellor of the Exchequer; Sir Rufus Isaacs, the Attorney General; Herbert Samuel, the Postmaster General; and Alexander Murray, the Parliamentary Secretary to the Treasury. The allegations were based on the fact that Isaacs' brother, Godfrey Isaacs, was managing director of Marconi.
Historians have explored the role of antisemitism in motivating the allegations. The allegations, whether true or not, were well-founded and serious enough to be brought to public attention. Particularly active in the attack was the New Witness , edited by Cecil Chesterton. This was a distributist publication founded in 1911 by Hilaire Belloc as Eye-Witness , with Cecil's brother G. K. Chesterton on the editorial staff. It had a Catholic perspective and was accused of antisemitism. [2]
In February 1913, the French newspaper Le Matin alleged that Sir Rufus Isaacs and Herbert Samuel had abused their position to buy shares in the English Marconi company. Both men sued for libel and Le Matin withdrew and apologised. During the case, Isaacs testified that he had bought shares in American Marconi and sold some on to Lloyd George and Lord Murray. [3] It was not made public during the trial that these shares had been made available through Isaacs's brother at a favourable price. [1] The factual matters were at least partly resolved by a parliamentary select committee investigation, which issued three reports: all found that ministers had purchased shares in the American Marconi company, but while the Liberal members of the committee cleared the ministers of all blame, the other members reported that they had acted with "grave impropriety". [4] The truth of the matter has been described as "obscure". [5]
Cecil Chesterton expected to be sued by the government ministers under the libel laws, which put the burden of proof on the defendant. Instead, Godfrey Isaacs, Marconi's director, brought a criminal libel action against him. The New Age (12 June 1913) described the trial
If circumstantial evidence were ever sufficient to justify a charge, we do not doubt that in the case of Mr. Godfrey Isaacs v. Mr. Cecil Chesterton, the latter and not the former would have won. The case of Mr. Chesterton was admittedly based on circumstances and on such reasonable deductions from them as on the face of the facts any average mind would have felt impelled to draw. Unfortunately, however, for him the circumstances themselves proved insusceptible of any further evidence than their own existence.
The court ruled against Chesterton and fined him a token[ citation needed ] £100 plus costs, which was paid by his supporters. Some of them[ who? ] claimed the decision would have gone differently had Chesterton's lawyer aggressively gone after the accused ministers who were at the heart of the scandal. In the next issue of the New Witness, Chesterton repeated his allegations against the ministers, who still did not sue.
The events were satirised by George Bernard Shaw as the "macaroni shares" scandal in his play The Music Cure , which was written to accompany G. K. Chesterton's play Magic, an attack on deceptive mediums which also referred to the scandal. [6] In 1919, Cecil Chesterton's A History of the United States was published, posthumously. In the introduction, his brother G. K. Chesterton wrote this about him
In collaboration with Mr. Belloc he had written The Party System, in which the plutocratic and corrupt nature of our present polity is set forth. And when Mr. Belloc founded the Eye-Witness, as a bold and independent organ of the same sort of criticism, he served as the energetic second in command. He subsequently became editor of the Eye-Witness, which was renamed as the New Witness. It was during the latter period that the great test case of political corruption occurred; pretty well known in England, and unfortunately much better known in Europe, as the Marconi scandal. To narrate its alternate secrecies and sensations would be impossible here; but one fashionable fallacy about it may be exploded with advantage. An extraordinary notion still exists that the New Witness denounced Ministers for gambling on the Stock Exchange. It might be improper for Ministers to gamble; but gambling was certainly not a misdemeanour that would have hardened with any special horror so hearty an Anti-Puritan as the man of whom I write. The Marconi case did not raise the difficult ethics of gambling, but the perfectly plain ethics of secret commissions. The charge against the Ministers was that, while a government contract was being considered, they tried to make money out of a secret tip, given them by the very government contractor with whom their government was supposed to be bargaining. This was what their accuser asserted; but this was not what they attempted to answer by a prosecution. He was prosecuted, not for what he had said of the government, but for some secondary things he had said of the government contractor. The latter, Mr. Godfrey Isaacs, gained a verdict for criminal libel; and the judge inflicted a fine of £100.
— Cecil Chesterton [7]
In her biography of G. K. Chesterton, Maisie Ward devotes a chapter to the scandal and notes, "Four days after the verdict against Cecil Chesterton, the Parliamentary Committee produced its report". She goes on to describe that report: "By the usual party vote of 8 to 6, it adopted a report prepared by Mr. Falconer (one of the two whom Rufus Isaacs had approached privately) which simply took the line that the Ministers had acted in good faith and refrained from criticizing them". She concludes the chapter with these words, which suggest that, at the very best, the ministers involved lacked judgment,
As the Times leading article of June 19, 1913, put it: 'A man is not blamed for being splashed with mud. He is commiserated. But if he has stepped into a puddle which he might easily have avoided, we say that it is his own fault. If he protests that he did not know it was a puddle, we say that he ought to know better; but if he says that it was after all quite a clean puddle, then we judge him deficient in the sense of cleanliness. And the British public like their public men to have a very nice sense of cleanliness. That, fundamentally, was what troubled Gilbert Chesterton then and for the rest of his life. He was not himself an investigator of political scandals--in that field he trusted his brother and Belloc, and on this particular matter Cecil had certainly said more than he knew and possibly more than was true. But it did not take an expert to know that some of the men involved in the Marconi Case had no very nice sense of cleanliness: and these men were going to be dominant in the councils of England, and to represent England in the face of the world, for a long time to come.
— Maisie Ward [8]
The historian Ian Christopher Fletcher wrote:
The Marconi scandal had unfolded in the context of bitter fights over such issues as Irish Home Rule and British land reform. Coming amid nebulous charges traded by Liberals and Conservatives about the evils of aristocracy and protectionism, on the one hand, and of plutocracy and socialism, on the other hand, the scandal only served to deepen public disillusionment with pre-war party politics. [9]
In 1936, G. K. Chesterton credited the Marconi scandal with initiating a subtle but important shift in the attitude of the British public:
It is the fashion to divide recent history into Pre-War and Post-War conditions. I believe it is almost as essential to divide them into the Pre-Marconi and Post-Marconi days. It was during the agitations upon that affair that the ordinary English citizen lost his invincible ignorance; or, in ordinary language, his innocence.... I think it probable that centuries will pass before it is seen clearly and in its right perspective; and that then it will be seen as one of the turning-points in the whole history of England and the world. [10]
The opposite view is argued by Bryan Cheyette. [11] He wrote that the negative 'Jewish financier' stereotype was present first and indeed was established in British culture quite some time before the scandal broke.
Season 2 of the television show Downton Abbey included the Marconi scandal as a plot point. Lavinia revealed that she gave information about illegal share dealing to Sir Richard Carlisle.
Distributism is an economic theory asserting that the world's productive assets should be widely owned rather than concentrated. Developed in the late 19th and early 20th centuries, distributism was based upon Catholic social teaching principles, especially those of Pope Leo XIII in his encyclical Rerum novarum (1891) and Pope Pius XI in Quadragesimo anno (1931). It has influenced Anglo Christian Democratic movements, and has been recognized as one of many influences on the social market economy.
Gilbert Keith Chesterton was an English author, philosopher, Christian apologist, and literary and art critic.
Rufus Daniel Isaacs, 1st Marquess of Reading,, known as the Earl of Reading from 1917 to 1926, was a British Liberal politician and judge, who served as Lord Chief Justice of England, Viceroy of India, and Foreign Secretary, the last Liberal to hold that post. The second practising Jew to be a member of the British cabinet, Isaacs was the first Jew to be Lord Chief Justice, and the first, and as yet, only British Jew to be raised to a marquessate.
Joseph Hilaire Pierre René Belloc was a French-English writer, politician, and historian. Belloc was also an orator, poet, sailor, satirist, writer of letters, soldier, and political activist. His Catholic faith had a strong effect on his works.
Maurice Baring was an English man of letters, known as a dramatist, poet, novelist, translator and essayist, and also as a travel writer and war correspondent, with particular knowledge of Russia. During World War I, Baring served in the Intelligence Corps and Royal Air Force.
Cecil Edward Chesterton was an English journalist and political commentator, known particularly for his role as editor of The New Witness from 1912 to 1916, and in relation to its coverage of the Marconi scandal.
Joseph Pearce, is an English-born American writer, and as of 2014 Director of the Center for Faith and Culture at Aquinas College in Nashville, Tennessee, before which he held positions at Thomas More College of Liberal Arts in Merrimack, New Hampshire, Ave Maria College in Ypsilanti, Michigan and Ave Maria University in Ave Maria, Florida.
This is a chronological bibliography of books and a general bibliography of articles by the author Hilaire Belloc. His books of verse went through many different editions, and are not comprehensively covered.
John Cameron Andrieu Bingham Michael Morton, better known by his preferred abbreviation J. B. Morton, was an English humorous writer noted for authoring a column called "By the Way" under the pen name 'Beachcomber' in the Daily Express from 1924 to 1975.
G.K.'s Weekly was a British publication founded in 1925 by writer G. K. Chesterton, continuing until his death in 1936. Its articles typically discussed topical cultural, political, and socio-economic issues yet the publication also ran poems, cartoons, and other such material that piqued Chesterton's interest. It contained much of his journalistic work done in the latter part of his life, and extracts from it were published as the book The Outline of Sanity. Precursor publications existed by the names of The Eye-Witness and The New Witness, the former being a weekly newspaper started by Hilaire Belloc in 1911, the latter Belloc took over from Cecil Chesterton, Gilbert's brother, who died in World War I: and a revamped version of G. K.'s Weekly continued some years after Chesterton's death by the name of The Weekly Review.
The New Age was a British weekly magazine (1894–1938), inspired by Fabian socialism, and credited as a major influence on literature and the arts during its heyday from 1907 to 1922, when it was edited by Alfred Richard Orage. It published work by many of the chief political commentators of the day, such as George Bernard Shaw, H. G. Wells, Hilaire Belloc, G. K. Chesterton and Arnold Bennett.
John Angus Macnab (1906–1977) was a British fascist politician who embraced Roman Catholicism under the influence of G. K. Chesterton and Hilaire Belloc. He was a close associate of William Joyce and later became known as a Perennialist writer on Medieval Spain and a translator of Latin and Greek poetry.
James Falconer was a Scottish solicitor and Liberal Party politician.
Joseph Peter de Fonseka was a Sri Lankan essayist and editor. His essays were noted for their trenchant humour and defence of Catholic values in the style of G. K. Chesterton and Hilaire Belloc. He was a friend and collaborator of the former.
Charles Granville was an English book publisher, publishing in the 1900s and early 1910s as Stephen Swift or Stephen Swift Ltd. He published two literary magazines, the Oxford and Cambridge Review and the Eye Witness, which carried works by "up and coming" literary authors, and also a third, Rhythm. In October 1912 he was wanted for embezzlement and bigamy, and fled the country. He was brought back, tried, and imprisoned for bigamy. His publishing company was liquidated.
Godfrey Charles Joseph Isaacs was a British businessman, and brother of the politician Rufus Isaacs, 1st Marquess of Reading.
The Four Men: A Farrago is a 1911 novel by Hilaire Belloc that describes a 140-kilometre (90 mi) long journey on foot across the English county of Sussex from Robertsbridge in the east to Harting in the west. As a "secular pilgrimage" through Sussex, the book has parallels with his earlier work, the religious pilgrimage of his autobiographical The Path to Rome (1902). "The Four Men" describes four characters, Myself, Grizzlebeard, the Poet and the Sailor, each aspects of Belloc's personality, as they journey in a half-real, half-fictional allegory of life. Subtitled "a Farrago", meaning a 'confused mixture', the book contains a range of anecdotes, songs, reflections and miscellany. The book is also Belloc's homage to "this Eden which is Sussex still" and conveys Belloc's "love for the soil of his native land" of Sussex.
The Music Cure, a Piece of Utter Nonsense (1913) is a short comedy sketch by George Bernard Shaw, satirising therapeutic fads of the era and the Marconi scandal of 1912.
Magic: A Fantastic Comedy is a 1913 comedy play by the English writer G. K. Chesterton. The plot centres around the conflict between a conjurer, a young woman who believes he is really magic, and her arrogant brother who rationalises everything. When the conjurer begins to do tricks that the brother cannot explain, he begins to go insane and the young woman and the other characters – a wealthy duke, a family doctor, and a local priest – attempt to convince the conjurer to divulge how the tricks were done in the hopes of curing him of his madness.