The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1927-08-19
ELEMENTS OF POLITICAL. EDU.
CATION
Continued from last week.
8. WHAT WERE THE DISTINGUISHING FEA-
TURES OF PRE-WAR CAPITALISM?

/
The basic features characterizing pre-war econ
omy were the following:
1. Animated international economic relations
regulated by trade agreements.
2. Tremendous development of world trade
which for capitalist economy is the most important
index of its productive strength. (For the Il
years Immediately preceding the war, the total
of the worlds commodity turnover grew from 90
milliard German gold marks to 178 milliard marks
i. e. by $500
3. The tremendous growth of the incomes of
the biggest European countries. England, Ger
many, and France, from the export of their capital
to other countries. lin 1913 these countries re-
ceived about 100 milliard marks income without
reckoning the porfits from the merchant fleet or
the exploitation of the colonies)
4. The enormous growth of the power and in
tensiveness of industrial production, which is
shown most convincingly in the production of
coal, wrought iron, pig iron, and Steel In the
course of 20 years Germany increased its output of
coal by 3OO@o, England by $50. America by 3OOe6.
the output of iron increased in Germany by
5000, in England by 500, in France by 5000, in
America by 1000; the output of pig iron increased
in Germany by 10000, in England by $40, in
France by 250a6, in America by 5000
5. Great colonial seizures securing for the CAP
talist countries markets for sale for extraction of
raw materials, and the possibility of applying their
capital at higher rate of profit
6. The splendidly arranged international credit
apparatus which aided the development of indus
try and commerce
Z. The tremendous accumulation of riches in
the hands of the capitalists and the overflow of
certain portion into the hands of the skilled in
dustrlal workers, which, although very slowly
raised the standard of living of the workers and
served as basic cause of the relative stability of
capitalist society.
A. WHAT ARE THE DISTINGUISHING FEA.
TURES OF POSTWAR CAPITALISM?
The European imperialist war did not have the
same effect all the capitalist countries. Further
on we shall elucdate the effect of the war on the
different groups of countries but at this point we
shall note only the general features which changed
the physiognomy of capitalism after the war.
These features are the following:
1. A considerable decrease of the international
commodity turnover in all the European countries
z. An acute economic war, extreme protective
tariffs refusal to renew the old treaties, or the
system of "most favored nations" universal tar
iff war of all against ALL
3. decline of production in Europe both in in
dustry and in agriculture
A decrease, and very sharp one. is to be oh
served IN the output of the basic objects of produc
i've use; coal, pig iron, wrought IRON steel cot
Ton, lax, paper, and the most important food pro-
ducts: gram, sugar, meat, butter milk and pou1-
Try products. The output of coal went down 25
per cent, pig IRON 5O per cent, steel As per cent
copper 9O per cent, zinc 55 per cent lead 25 ner
cent; Tor agricultural products we have the follow
ing Ilgures: production of wheat in Europe Tex
cuuhg hussla IN l9O9-1913, 35.5 per cent of world
production, and in 1919-1921, only 28.8 per cent.
4 A stoppage of the accumulation of real
wealth and on the other hand, an insufficiencv of
production as compared with consumption, a de-
cline taking place in the productive apparatus it.
self. This apparatus, bound up with living labor
power suffers from the lowering of the product.
witty OF labor and the general lowering of the phv
seal strength of the workers, as result of insult
tlclent food The material side of the productive
apparatus is getting worn out and is not getting
sufficient replacements
B. The confusion of the internal credit annar
atus which of course refers chiefly to those coun
tries where the process of depreciation of the
Valuta is tawing place. international credit also
suffered shipwreck-g governmental credit because
states where there is crisis cannot obtain credit.
and private, because of the tremendous difference
between the countries with firm, and those with
deprecated valutas
o. The shifting of the center of gravity of world
exchange and food supply from Europe to Aneri-
"a and the weakening of the economic dependence
u the colonial agricultural countries on the Eur
'pean industrial ones which leads to weakening
u the international commodity turnover.
T. political, and with it an economic shifting
II frontiers of Central and Eastern Europe. as a
esult Oh which, instead of few economically DOW
,r1ul governmental units, there were created more
han haf-score little ones, with contradictory in
erests, new tariff horns and different-calibredl
appreciated valutas
O. An excessive increase of fictitious capital in
'aper or funded form, together with the decrease
II real productive capital.
These are the general characteristics of post-
var capitalism
!. WHAT is THE OBVIOUS Conclusion
FROM COMPARISON OF PRE-WAR WITH
POSTWAR CAPITALISM?
from comparison of the situation of European
apiCallsm before and after the war, it is evident
nat the World War brought about decline along
he whole line
. HOW is THE POSTWAR CRISIS OF CAP
ITALISM TO BE REGARDED?
The world