The Spy Who Changed History. Svetlana Lokhova

Park at 72nd Street in New York City. These Russian patriots arrived knowing that America was the classic country of capitalism,

      the most disgusting in the world, and we sought to see all the evils of capitalism first hand quickly, and we found a lot of it unattractive … We saw the unemployed in line for soup, which was distributed by the Salvation Army. But the unemployed in the queue in 1931, during the Depression, were dressed better than my Moscow friends. We went looking in vain for a slum.¹²

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      But why was there such an intense American interest in news from the first Communist state? The answer lay in the grim, fatalistic mood of the US at the time. Trapped in the midst of the Great Depression, perhaps they were witnessing the death of the American dream itself. Like many of her generation, Gertrude Klivans had, through her travels, come to question the very future and purpose of liberal democracy and capitalism. She had discovered a ‘Soviet atmosphere, an atmosphere strangely free from the tradition of that brand of democracy to be found in the West’.¹³

      The Communist state’s giant socialist experiment polarised US public opinion. Most US visitors to the Soviet Union returned home with their views reinforced. Those who had come seeking alternatives to the raging social crisis in depression-hit America found hope in the socialist experiment; others who sought it found deprivation, oppression and a rising red menace. Enthusiasm in liberal and left-leaning circles for Communism tracked the ups and downs of the US economic cycle. Initially, the Russian Revolution had been greeted with wild enthusiasm, although US banks lost billions on the default of Tsarist debt. ‘I have seen the future, and it works,’¹⁴ proclaimed American journalist Lincoln Steffens, who was targeted by Soviet Military Intelligence in 1931 for possible recruitment as an ‘agent of influence’. The Soviets approached many leading left-leaning cultural figures in this period to play an active role as advocates for socialism. Most rebuffed the approaches. Some did not. Steffens refused to join up, but as an ideologically sympathetic fellow traveller, he promised to help the Soviet Union when the interests of the US and the USSR coincided.

      In the 1920s, as the US economy prospered in the post-war recovery, the Soviet Union had been roundly criticised by visiting international socialists for its failings. Despite thousands of invitations to sympathetic left-leaning artists, writers and politicians to visit, the Russians could garner few friends. Some criticised the Soviets for insufficient radicalism, as they wanted a world revolution. Many found issue with the Communists’ belief that ‘the end justifies the means’. The Communists in power were too brutal for their taste. Lincoln Steffens on the other hand found convenient excuses for the bloody excesses of the ‘Red Terror’. He concluded that the Soviets were not evil per se but that dire circumstances had forced evil on them. ‘Soviet Russia was a revolutionary government with an evolutionary plan enduring a temporary condition of evil, which is made tolerable by hope and a plan.’¹⁵

      In bohemian circles, there was still much praise for Moscow’s artistic freedom, avant-garde theatre, movies and poetry. As the US economy boomed in the 1920s, intellectual socialists were out of touch with the day-to-day issues of the working class. It was only during the crisis of the 1930s that the Soviet Union and Communism started to enjoy broader US support and clandestine help. The crisis of capitalism and the rise of fascism (seen by the left as capitalism with murder) proved to be the catalyst for the growth of the US radical left. Marx’s theory of historical determinism was in vogue.

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      The closing of all American banks on 4 March 1933 marked the nadir for capitalism as the entire nation went into a state of traumatic shock. The illusion of permanent prosperity that had captivated and motivated everyone during the boom evaporated. The deepening economic crisis caught intellectuals such as novelist Theodore Dreiser and socialist writer Upton Sinclair unawares, but they soon recovered to take the lead in asserting that American capitalism was undeserving of support or survival. From 1930 onwards there had begun a quest that took many on a journey leading far from their social, political and philosophical starting points. Along the way some fell into the waiting arms of Soviet intelligence. This was the era when Communists joined the US government, not just to gather useful information for their Soviet controllers but also to influence government policy for Communist ends. Dozens of agents such as Nathan Silvermaster, Lachlan Currie and Harry Dexter White found careers in government service, in particular in the Treasury and the Labor Department.

      The battering of the Great Depression dispelled political apathy. No one could remain indifferent to the capitalist system that was creating havoc and misery. Liberalism was the first political casualty of this political awakening. Its spokesmen had failed to foresee the catastrophe and, the radicals believed, were unable to explain its causes, cope effectively with its consequences or offer answers. In their search for a solution many turned their eyes abroad. If the Russians were achieving full employment and economic growth with their backward technology, surely the Americans could do far better with their advanced facilities? In the US, the factories were built but now lay idle, so the priority was a plan for the economy to put America back to work. The leftward move, coupled with the feebleness of right-wing opinion at the time, made the Communist movement the unchallenged attraction. The starry-eyed saw a promised paradise in the land of the Five-Year Plans, while the more grounded were impressed by the achievements of a planned economy operated on the foundation of nationalised property. A Soviet-style economic policy might provide the means of propelling the US economy forward, eliminating the scourge of mass unemployment.

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      Blamed for causing the Depression, Hoover won only 39.7 per cent of the popular vote in the 1932 presidential election, a dismal result, and in 1933 Franklin Delano Roosevelt replaced him as President. Roosevelt’s reforms derailed the leftward political momentum in the US. A stream of radicals were hired into the federal government to enact depression relief measures adopted from their leftist agenda. Faith in the vitality of American capitalism revived with the economic upturn. Roosevelt’s New Deal aimed to provide support for the millions of unemployed, to grow the economy and to enact reform to prevent a repeat of the financial crisis. It was attractive for some Communists who, as members of the Democratic administration, could be anti-fascist fighters, defend the cause of labour and promote the aims of the Communist Party and the Soviet Union while pursuing a government career with a good salary. It was no wonder at the time that Soviet spy rings flourished unhindered at the heart of the American government. But New Deal reform did not extend much beyond the end of the recession in 1937, when urgent plans for war displaced domestic concerns. And as the vision of an imminent proletarian revolution was eclipsed by the war shadows, the slow journey back to a belief in democracy quickened into a stampede. Patriotic fervour swamped the radicalism of the thirties. Conservatives still depict the Red Decade as an ugly spectacle of rampant subversion in America.

      One clear demonstration of the broad appeal of the radical message at the time, but not of the socialist name, was given by the writer and politician Upton Sinclair. Having founded EPIC (End Poverty In California) to pursue a solution more radical than Roosevelt’s New Deal, Sinclair came close to becoming Governor of California in 1934. He wrote after his defeat that ‘the American People will take Socialism, but they won’t take the label. I certainly proved it in the case of EPIC. Running on the Socialist ticket, I got 60,000 votes and running on the slogan to “End Poverty in California” I got 879,000. I think we simply have to recognize the fact that our enemies have succeeded in spreading the Big Lie. There is no use attacking it by a frontal attack; it is much better to out-flank them.’¹⁶

      Sinclair was a lifelong Socialist who had become frustrated with the New Deal’s inability to end the Depression at a stroke. Rather than putting the unemployed on relief, Sinclair proposed, via EPIC, to put them to work within a state-organised ‘production-for-use’ economy distinct from the capitalist marketplace. Under his scheme, the state would take over idle farms and factories, allowing the jobless to grow their own food or produce clothing and other goods. Any surplus could be traded, through a system of barter, only for other goods produced within the system. Considered the front-runner in the election, Sinclair was subjected to intense attacks from both Republicans and Democrats as ‘a communistic wolf in the dried skin of the Democratic