The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-09-05
Continued from Page One)

Continued from Page One)
capitalist (tinance) must lower the
tariff in ori er to be able to receive
payment for their capital loans. The
contradictions in this are clear,
Seventh, America is dependent on
certain capitalist countries for it's
Of rubber, nitrates and, in the not far
distant future, oil.
Last, but not least, American i'm
perialism must be more and more ag-
gressive in its policies, more and
more brutal, more and more sharply
imperialist in its international rela-
tions because of the increasing com
petition, because of the sharpening
challenge Of other imperiahst powers
to its domination.
THE present economic situation: the
immediate economic situation
there is no depression, but the signs
of recession in industry are not only
increasing, but are already tangibly
obvious to us. The peak Of the pros
perity in this cycle has been passed.
All official figures and reports in
sion in industry already developed
than the bankers and economic eX-
perts of the bourgeoisie had dared to
indicate or even mention months ago.
Unemployment today shows a sig
nificant picture. 1t is only once since
August, 1921, that employment has
been so low as it is today in such
industrial centres as New York and
Illinois. General employment in the
country today is 10 per cent less than
in 1920. Regarding wages today; the
monthly average is 80 per cent less
than the monthly average in 1920.
Railroads, coal as we'll as the corn
crop-these are some sources of prof
it income. showing sharp trends to-
wards worsening. The seasonal fac
tors which some of the bourgeois eX-
perts might mention here as re-
sponsible are already discounted.
Taking all Of those into consideration,
there is already considerable recess
sion here.
Does that mean that we are on the
eve of a big depression? 1t does not
mean we are on the eve of big
depression. That does not mean that
we will not have a big depression,
but we are not in the immediate
period of depression. In estimating
the Immediate economic outlook we
must keep in mind that the cause of
the present long period that we have
just gone through, the period of pros
perity, the immediate effects of
recession will not be so marked, will
not be so sharp as they would have
been otherwise.
The Political Situation.
NOW the political situation-the
IN political situation in the country
is characterised by the following six
factors:
First, tremendous growth of state
power. The government bureaucracy
is continuing to grow apace. The
presidential power is greater than
ever before in the history of this
country. The president occupies the
office of strike breaker in chief. No
head of any capitalist country in the
world has as much power as the
president of the American ruling
class.
Second, the suppressive side of
American imperialist is becoming
more and more marked and visible
to the masses.
Third, the complete oneness of big
business and government: in no coun-
try in the world is that so clear as
here. When Coolidge Chooses" not
to run for term, no one can say his
choice is final until Dwight Morrow,
Morgan's private adviser visits him.
When one speaks of such elements in
American government as Mellon,
Hoover, Dawes, he has the personifi-
cation of the oneness of the bour-
geoisie, of the ruling class.
Fourth, there are divisions among
the American bourgeoisie. Divisions
over such policies regarding relations
to agriculture, relations to other i'm
perialist powers, our foreign policy,
participation in world court or join
ing the League of Nations, and the
question over tariff. There is grow
ing conflict in the ranks of our bour-
geoisie as L have pointed out, over the
question of tariff The question of
government Capitalization is a very
important source Of division in the
ranks of the bourgeoisie; the petty
bourgeoisie being opposed to govern
ment Capitalization and the biggest
bourgeoisie being in favor of it in the
sense not of paying for it but in the
sense of having powerful govern
ment at their beck and call serving
as crusher and oppressor of the
working farmers and masses.
The sweep of reaction has never be-
fore been as marked and as sharp as
it is today. We might speak of the
days Of Palmer in 1920 and 1921, and
the days of the big strikes. But
never was the system of reaction so
steady, as well planned, so well
worked out as it is today. This is