The producers news., 1927-04-15


IA. WHAT is CONCENTRATION AND CEN
TRALIZATION OF CAPITAL?
The concentration of capital is the increase or
growth of capital as a result Of its constant ac-
emulation.
Capital grows continuously since the further
it grows, the larger becomes the mass of surplus
value in the hand of the CAPITALISTS who continu-
ally reinvest an Increasing norton of it for
the extension of production and consequently for
the further growth of capital
From the concentration of coni+ol vya must dis
tinguish Capitalization of captal Bv this term
is understood the centralization Of the GROWING
capital in the hands of a continually smaller num-
Der of capitalists /. the decrease of the number
Of capitalists and the increase of the amount of
capital in the hands of each of them.
The Capitalization of capital in the hands of
continually lessening number Of canitalists takes
place as result of competition as result of the
ruin, the swallOwing-up of the medium and small
entrepreneurs by the big capitalists and also as
result Of the combining in few hands of the
capital of many separate CAPITALISTS in the form
OF corporations, syndicates and trusts. This con-
centratOn and Capitalization Of canitaI reaches it
highest degree in the second period of the ex
istence of capitalism in the epocb Of finance can
tal with the extension of cantaIist svndcateo an0
trusts
10. WHAT is THE SIGNIFICANCE OF THE
CONCENTRATION AND CENTRALIZA-
TION OF CAPITAL?
First: that as a result of the concentration, o,,d
Capitalization of capital together with the orou,+l,
of capital and the lessenng Of tho nur,bar of con
italists the army of the proetariat grows in num-
Der; and on the other hand there takes place the
concentration of tho
biggest capitalist enterprises and in the big in
dustrial centers
This circumstance strengthens the cohesion. the
organization, the revolutionizing and tba st,,1a
gle OF the broad masses of the workers., with
capitalism
10. WHAT ARE CRISES AND WHY DO THEY
OCCUR UNDER CAPITALISM?
Crises are the phenomena of decline and down
1ah or stagnation of industry as a result of the
absence of market for a part or the majority
u Ine commodltles IN the process of over pro-
ductlon. During crises, the warehouses and mar
KeVS are full OF commodities but they lie without
movement, for there is no buyer, although the
laoorlng masses are suffering severely for lack
OF these commodities. AS a result the prices If
One commodities drop, the weak capitalist enter
prlses particularly the small and medium-sized
oneS) close and are ruined, and the stronger and
bigger ones cut down or temporarily stop produc
tion
Workers are thrown out on the street in masses
ana wages drop. Crises repeat themselves regu-
ariy at given intervals, generally every 10 or IL
years. with tendency to lengthen this interval
N the second half of the 10Th century.
CrlSes thus take place periodically under capi-
-ahsm and strike now the whole capitalist world
now q greater
Crisis IN the history of capitalism that went be-
'ond the borders Of a single capitalist burst out
n Iozo-l626 1t was preceded by a fever of spec-
llation as a result of the opening-up of the south
American markets.
The next general crisis took place in 1836-1837
i was preceded by the tremendous blossoming-
'ut of English industry and export. particularly
o North America.
The third crisis unfoded in 1847. This time ,
apital had been embarl1ng with particular fever
shness upon the construction of railroads Az . |
esult OF the crisis more than $4,000 railroad
workers. were thrown out of work. Besides this |
ne cotton, iron, and coal-mining industries all
suffered heavily
The chief crises of the second half of the 10Th |
century took place in 1851, 1878. 1891-1892 and
9Ol, with more or less wide streaks of industrial
n
ountries in the intervals
Ihe crises of the second half of the 10Th CEN
ury are distinguished by still greater dimensions
no acuteness than those in the beginning of the
9th century. They embrace not only Europe but
lso America and in addition, the duration of the
rises increases. From short crises they have
roWn to be more drawn-out, and chronic. and
all forth greater crash and disintegration
throughout the whole capitalist world.
The last acute and terrific crisis before the
var took place in 1907, and this time burst out
trongest of all in America. The picture of the
curse of this crisis is as follows:
In October 1907, completely unexpected bv the
feat majority of businessmen there broke out
rst OF all, panic in New York
Next whole series of banks not onlv in New
ork but also in other American cities stopned
ayment. The panic became general It's dimen-
IONS may be judged from the fact that at the
nd OF October interest offered for cash loans
eached 1850 and higher. But even at this gi-
anuc per cent credit was not to be obtained.
NUS credit vanished, and together with it, indus
ry and commerce suffered colossal curtailments
nd shocks along the whole line AS result not
My 1907, but the whole of 1908 was marked in
ne United States by extreme industrial stagna-