4 <strong>Piero</strong> <strong>Sraffa</strong>resort to subterfuge, if not outright violation, with respect to lawsand regulations. <strong>Sraffa</strong> concluded with some pessimistic remarks onthe risks involved in direct relations between banks and enterprisesand on the inevitability of such relations given the backwardness ofItaly’s financial markets, as well as the difficulty of bringing about anychange in the situation, due in the first place to the lack of real willon the part of the politicians. New laws were called for ‘to preventthe formation of trusts, to protect the independence of banks, toregulate the reserves to be held on banking deposits’, although eventsin other countries showed that legislative reforms are in themselvesinsufficient to prevent crises. In Italy these risks were aggravated byconnections between the fascist government and the financial elite, as<strong>Sraffa</strong> stressed in a strongly worded final sentence: ‘But even if theselaws were not futile in themselves, what could be their use as long asthe Government is prepared to be the first to break them so soon asit is blackmailed by a band of gunmen or a group of bold financiers?’(<strong>Sraffa</strong> 1922a: 197).All these points remain extremely relevant today, often croppingup in the debates on the choice between a specialised banking system(based on separation between short-term credit and medium- andlong-term credit, adopted in Italy – and in many other countries – inthe face of the difficulties subsequent to the 1929 world crisis) and auniversal banking system (re-introduced, 60 years later and after a longdebate, with the Italian bank bill of 1993). <strong>Sraffa</strong> saw both advantagesand disadvantages in each of the two settings, universal (‘mixed’)banking favouring the channelling of funds to industrial investmentsbut increasing the risk of dangerous connections between industrialcompanies and banks. <strong>Sraffa</strong>’s attack on the role of cross- shareholdingsand interlocking directorates foreshadows Berle and Means (1932);his remarks on the perverse connections between top politicians andfinanciers have also proved to retain enduring relevance on a numberof occasions in recent years, such as in the bankruptcies of MicheleSindona’s Banca Privata Italiana (1974) and Roberto Calvi’s BancoAmbrosiano (1983).The second article (<strong>Sraffa</strong> 1922b) highlights the weakness of Italy’sthree leading commercial banks (Banca Commerciale, Credito Italianoand Banca di Roma), casting serious doubts on the correctness of theirofficial accounts and of the institutional expedient (resorting to aconsortium for industrial stock subsidies) adopted to sidestep the lawwhich had set limits on the support that issuing banks could lend tocommercial banks.Early Life and Writings 5The first article, published in an academic journal, 6 went unnoticedin Italy. The second article, however, was soon noticed and signalled toMussolini, who, seriously irritated and possibly worried by the impactthe article could have on international financial circles in the presenceof impending risks of a banking crisis, telegraphed Angelo <strong>Sraffa</strong>demanding – to no avail – a public recantation from his son. 7 The BancaCommerciale also threatened to sue him, but then failed to implementthe threat. Its chairman, Toeplitz, wrote a letter of protest to Keynes,the editor of the Manchester Guardian Supplement, who published it in asubsequent issue (29 March 1923) with a curt rejoinder.Given these circumstances, Keynes decided to invite the young Italianeconomist to Cambridge. <strong>Sraffa</strong> accepted, but was refused entrance tothe UK when he landed at Dover in January 1923, possibly because theBritish authorities had kindly complied with a request to this effectfrom the Fascist government (which was both <strong>Sraffa</strong>’s and Keynes’sinterpretation of the event), or possibly because <strong>Sraffa</strong> had already beenlabelled as persona non grata on account of the relations he had enteredinto with the British Marxist left on his previous visit in 1921. 8Monetary issues were subsequently to re-emerge among <strong>Sraffa</strong>’sinterests. He wrote in <strong>Piero</strong> Gobetti’s (1901–26) Rivoluzione liberalein 1923 a brief, biting attack against an article published in Popolod’Italia on the exchange rate movements of the lira; two letters on the6As <strong>Sraffa</strong> later recalled (in a private conversation with the author), some timeafter their acquaintance in Cambridge in August 1921, Keynes requested of hima short contribution on the Italian banking system for the Manchester GuardianSupplement he was editing. The young <strong>Sraffa</strong>, recently graduated, set out todo his best and wrote the article on the Banca di Sconto, clearly outdoing hisassignment. On receiving the paper, Keynes found it unfit for the ManchesterGuardian Supplement, but it was so good that he decided to publish it in theEconomic Journal instead. <strong>Sraffa</strong>’s eyes still shone when recalling the incredulousjoy with which he received such good news. Thus, while the first paper went tothe Economic Journal, he proceeded to write a shorter article for the ManchesterGuardian Supplement.7<strong>Sraffa</strong>’s article was published on 7 December 1922; Mussolini’s telegrams weredated 20 and 21 December 1922. The story of Mussolini’s telegrams was first presentedin Roncaglia (1983a, 1984); <strong>Sraffa</strong> had related the story to various Italianeconomists, including Pierangelo Garegnani, Sergio Steve and myself (in 1975he showed me the text of the telegrams). Their existence was put in doubt byFinoia (1988: 301–2), after some unsuccessful attempt on the part of the highlycompetent historian Renzo De Felice to locate them in the State Archives; theywere subsequently found by Nerio Naldi (1998c) in the archives of the Ministryfor Foreign Affairs.8Cf. Naldi (1998a, 1998c).
6 <strong>Piero</strong> <strong>Sraffa</strong>revaluation of the lira were published by Angelo Tasca (1892–1960)in Stato operaio in 1927. 9 In the letters <strong>Sraffa</strong> criticised the simplisticidea, held at the time by the leaders of the Italian communist party,that the revaluation of the lira was in the interests of the bourgeoisie,as opposed to the working class; against this idea, <strong>Sraffa</strong> pointed outthe contrasting interests of different sectors of the bourgeoisie and ofthe fascist political leadership. From 1928 to 1930 he held courses inCambridge on the Italian and German financial systems, along with hismore celebrated courses on the theory of value. The 1932 controversywith Hayek, to which we shall return, also had to do with problems ofmonetary theory.All in all, <strong>Sraffa</strong>’s early publications show us a ‘complete’ economist,whose interest in pure theory is tempered by a solid knowledge of institutionaldetails and exemplary analyses of specific real-world issues.1.2 Friendship with Gramsci 10In 1919, at the University of Turin, <strong>Sraffa</strong> met Antonio Gramsci (1891–1937). They were introduced by Umberto Cosmo (1868–1944), who hadbeen <strong>Sraffa</strong>’s Italian literature teacher at upper secondary school; he alsotaught courses at the university, with Gramsci as one of his most brilliantstudents. In 1919 Gramsci founded L’ordine nuovo (The new order),and <strong>Sraffa</strong> contributed some translations from German and three shortarticles which he sent from London on the occasion of his visit there in1921. The same year saw the foundation of the Italian Communist Partyin Livorno – Gramsci became its secretary in 1924; <strong>Sraffa</strong> never joinedthe party, pursuing his independence of views while maintaining a closeintellectual relationship with his friend.An important piece of evidence documenting the two friends’ politicalexchanges is provided by a letter from <strong>Sraffa</strong> that Gramsci published9These letters were published anonymously by Tasca, then in exile in Paris.Tasca’s own copy of Stato Operaio, now kept at the Feltrinelli Foundation inMilan, exhibits a pencilled addition, most probably by Tasca, the letters ‘P. S.’;this allowed for identification of their author in 1971. Tasca had requested<strong>Sraffa</strong>’s permission to publish these letters, but <strong>Sraffa</strong>’s positive answer was onlysent on 21 December 1927 (the letter is now among the Tasca papers preserved atthe Fondazione Feltrinelli in Milan: cf. Potier 1987: 114) and, apparently, <strong>Sraffa</strong>was then never informed of their publication; at least this is what he told meand others in 1971.10The interpretation here presented was proposed in Roncaglia (1983). Cf. nowFausti (1998); Naldi (1998c, 2000); Vacca (2000).Early Life and Writings 7(unsigned, initialled S.) in the April 1924 issue of L’ordine nuovo withhis reply (Gramsci and <strong>Sraffa</strong> 1924). In his letter <strong>Sraffa</strong> stressed thefunction played by bourgeois forces of opposition in the struggle againstfascism and the importance of democratic institutions for the social andpolitical development of the proletariat. In a scenario dominated bythe rise of fascist dictatorship, he found the working class absent fromthe political scene and trade unions and the communist party incapableof organising political action, so workers had to face their problems asindividuals, rather than as organised groups. ‘The main issue, takingfirst place over any other, is one of “freedom” and “order”: the otherswill come later, but for the time being they can be of no interest toworkers. Now is the time for the democratic forces of opposition, andI think we must let them act and possibly help them’. (<strong>Sraffa</strong> 1924b: 4)Antonio Gramsci’s response was flatly negative, in line with the positionof Amadeo Bordiga, then secretary of the communist party (wherethe centralist principle prevailed and no dissent to the official linecould be shown). Gramsci rejected <strong>Sraffa</strong>’s suggestions as conducive tothe liquidation of the communist party, subject as it would be to thestrategy of the bourgeois forces of opposition, and went so far as toaccuse his friend of ‘having failed so far to get rid of the ideologicalresidues of his liberal–democrat intellectual background, namely normativeand Kantian, not Marxist and dialectical’. However, Gramsci’sthesis – that the communist party should advance ‘its own, autonomoussolutions to the general, Italian problems’ – did not in itself contradictthe proposal of an alliance for action with the other anti-fascistparties, while he could not have openly advanced it, since it differedfrom the party line.Nevertheless the very fact that <strong>Sraffa</strong>’s letter was published, probablyafter a heart-searching discussion between the two friends, amountedto significant recognition of the problems it raised and the politicalideas suggested by the young economist. Indeed, Gramsci drew attentionto this strategy again, and far more explicitly, in a private letter tocomrades closer to his position, and thus less subservient to the Bordigaorthodoxy (reprinted in Togliatti 1962: 242ff.). 11The episode suggests that <strong>Sraffa</strong> played some role in the developmentof Gramsci’s political thinking and the distance he maintained fromBordiga’s line, and in particular from the idea of the total opposition11Failure to take into account this second letter explains why some commentators(such as Sen 2004: 36) attribute to Gramsci only ‘contemptuous dismissal[of <strong>Sraffa</strong>’s views] in classical communist rhetoric’.
- Page 1 and 2: Piero SraffaAlessandro Roncaglia
- Page 3 and 4: ContentsList of FiguresIntroduction
- Page 5 and 6: Introduction ixWith this degree of
- Page 7: 2 Piero Sraffa(1874-1961), professo
- Page 11 and 12: 10 Piero Sraffaadministration of th
- Page 13 and 14: 14 Piero Sraffa1.4 Imperfect compet
- Page 15: 18 Piero SraffaIn many fields of ec
- Page 18 and 19: 24 Piero SraffaAn Italian in Cambri
- Page 20 and 21: 28 Piero Sraffanot something fixed,
- Page 22 and 23: 32 Piero Sraffamonetary factors on
- Page 24 and 25: 36 Piero Sraffapartnered in his lab
- Page 26 and 27: 40 Piero SraffaActually, there was
- Page 28 and 29: 44 Piero Sraffadistribution of the
- Page 30 and 31: 48 Piero SraffaLet us recall at thi
- Page 32 and 33: 52 Piero Sraffathe other hand, the
- Page 34 and 35: 56 Piero Sraffaof production. 24 Bu
- Page 36 and 37: 4Basic and Non-Basic Products4.1 Ba
- Page 38 and 39: 64 Piero SraffaA line of argument s
- Page 40 and 41: 68 Piero Sraffathe system stemming
- Page 42 and 43: 72 Piero Sraffaplan that would yiel
- Page 44 and 45: 76 Piero Sraffaproduced less quanti
- Page 46 and 47: 80 Piero Sraffaterms of labour comm
- Page 48 and 49: 84 Piero Sraffaof value is, and mus
- Page 50 and 51: 88 Piero Sraffabeing invariant to c
- Page 52 and 53: 92 Piero Sraffa(variable plus const
- Page 54 and 55: 96 Piero Sraffaconsumption goods),
- Page 56 and 57: 100 Piero Sraffadirectly required f
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104 Piero Sraffaproduction’ (iden
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108 Piero SraffaCritique of the Mar
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112 Piero SraffaThe growing remoten
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116 Piero Sraffareturns: Sraffa’s
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120 Piero SraffaFurthermore, the cl
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124 Piero SraffaIn this way the pro
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128 Piero SraffaSraffa raised again
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132 Piero Sraffaconnected, but can
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136 Piero SraffaThe bridge between
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140 Piero SraffaSraffa’s work for
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144 Piero SraffaThis debate is stil
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148 Piero SraffaObviously the ‘Ma
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152 Piero SraffaIn comparison to th
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156 Piero Sraffaof the path actuall
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160 Piero SraffaHowever, this const
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164 ReferencesReferences 165——
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168 ReferencesReferences 169Levhari
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172 ReferencesReferences 173——
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176 ReferencesReferences 177——
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180 IndexIndex 181Marx K., 10, 29,