The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1927-08-26


at first glance Serious industrial financial and
political crises are undermining the existence of
European capitalism The partial and relative
Sterilization IN Europe was achieved by terrific
exploitation OF the toiling masses, by more inten-
slve pressure upon the colonies and by the entry
OF American capital into the European economy.
But these staolhzatlon" measures are producing
new contradictions and even more serious crises
The tollng masses of Europe resent this shifting
OF the staOlhzatlon burden to themselves and
movement OF resistance is growing all along the
line. Inc colonies answer the increased imperial
lst pressure oy uprising and revolutionary wars
winch are shaking the very basis of modern i'm
perlahsm. ana the entry of American capital in
10 the european economy which for the moment
had saved european capitalism from collapse, is
already proving to be the cause of insolube con-
tradictions and sharpening struggle between
European and American canitalism.
Inc ahmmlatlon OF productive forces by the
world war did not take place uniformly. Eastern
and Central Europe suffered most of all, its ma
terlal and productive apparatus shrinking in the
extreme; England and the non-European countries,
on Che contrary, expanded their production, and
multiplied their material wealth
Capitalism, which has developed uniformly be-
lore the war, concentrating its strength around
the most developed Western European countries,
split after the war into two dissimilar sections.
The center of gravity of capitalism moved over
to America and Japan. At the same time that
the production of Central and Eastern Europe was
not sufficient to balance their current consump-
ton, the production of the countries untouched bv
the crisis and decline was unable, on the other
hand to find sale on the world market. This
phenomenon IS characterized as the spit-up of
the world into two sections: American. Japan
England and the neutral countries-the section of
oYerproduction; and Central and Eastern Europe
-Che section OF underproduction. The world mar
ket in which everything is based on commodity
exchange and which was previously bound up with
one uniform gold valuta as the universal money
unit, has split into parts with different economic
8. TO WHAT DOES THE SPLTT-UP OF THE
WORLD MARKET LEAD?
The spllt-up of the single world market into
TWO chief parts leads to an economic crisis which
OF course, does not manifest itself similarly in
each of these parts.
In the countries of underproduction we observe
a CRISIS evoked by insufficient production result
ing flrst OF all from nsufficiency of the very
means OF production; on the other hand in the
countries which have preserved their productive
apparatus, we observe a crisis of overproduction
winch IS a result of the insufficient purchasing
power OF the underproducing countries with de-
preciating valuta.
together with this we observe protracted ag-
rcultural and industrial crisis in the colonial
countries, which find sale for their raw nateri
al ana are not In position to protect their infant
industries from the competition of the old indus
trial countries.
ms manufactured crisis in the world market
leads to the condition that the general decline If
becomes chronic In countries of nm
reproduction, the insufficency of capital (means
u pfoducuon) leads to the low and continually,
aiilhg wage level and to the insufficient feeding
u the working masses, and as a result To the
oWerng OF the productivity of labor. In the
countries with an expanded industrial apparatss
many branches of production stop work and mil
ions OF workers are periodically thrown ont If
work. and all because dying capitalism cannot
ind market for its wares
|. WHAT ARE THE ECONOMIC CHARACTER
lSTICS OF THE POSTWAR PERIOD OIL,
CAPITALISM? u
Inc essential features of postwar canitalieno on
ne economic side are the following:
l. Inc geographical boundaries of caoitalisn
ecome narrowed, since Russia with the United
oVlet republics Zone sixth of the globe) have ;
EFT the ranks of capitalist countries.
z. Within the different capitalist countries is
eVeaed return to pre-capitalist forms of econo
ny; the transition of capital which has been in
ested IN industry to non-productive CONNER
ial form.
g. The international division of labor is CIR
aied; the highly developed capitalist countries
ave entered on the path of raising the customs
driIIS TO protect their domestic markets; the col
MAI and agrarian countries also protect their in
ant industries which were developed during the {
ar by high customs duties and import nrobib- e
onS' In Europe number of dwarf states have I
risen, each one carrying on an independent tar !
poncy' On the other hand the old industrial /
'untres are attempting to develop their agricu- '
nal All this leads to a serious lessening of '
i'ernaConal commodity exchange.
=, Inc dlsslmilar movement of prices of indus '
la products and of agricultural products in the
lOS' important region of overproduction- Ameri- n
(which leads to the arrangement of the eouili-
rum between the city and the farm.* This cir n
instances serves as cause of the American in Z
aStrla crisis, and together with it, of the crisis
world economy h
II america we observe beginning with 1919. S
iI III the prices of agricultural and indus