The producers news., 1927-07-08
ELEMENTS OF POLITICAL EDU-
CATION
(ConClnueo from last week.
%. WHAT GROUPS OF CAPITALISTS AND
BRANCHES OF INDUSTRY ARE PARTI-
CULARLY INTERESTED IN THE DEVEL-
OPMENT OF IMPERIAIICM9
Continued from last weekl


the modern period, we observe that the chief role
in modern capitalist states is plaved more and
more by so-caled "heavy industry" i. e. metal
Tin particular, metallurgical then transport-con-
struction, machine works, and munitions) and also
coal and OIL Of these, metalurgy has the great
est importance Everywhere it is Incoming, and
in the leading capitalist states has already be-
come, the commanding industry on which depend
many other most important branches of capitalist
economy. Iron and steel materials are the basic
elements from which all machines and implements
are made, and the process of DEVELOPMENT of cap
talism leads inevitably to the growth of the role
of the metallurgical industry both in national and
in world economy.
The metallurgical industry is the basis, the
foundation of modern industry All the big ma
chimes Of modern industry, with their crews and
gears, with their motors and steam hammers, the
whole development of the railroads and the colos-
sal ocean fleets, both naval and merchant marine
all these take their origin from the blast fur
mace of the metalurgical plants where pig iron is
smelted, and wrought iron and steel are poured.
Metallurgy! This is the gigantic smithy where
the iron foundation is hammered out. on which is
supported the heavy maney-storeyed buildings of
modern capitalist economy.
Finally, metallurgy is stronger than all other
industries because it entered before all others on
the path of formation of cartels syndicates and
trusts, and also because capitalist monopoles de-
velOped in metallurgy on the grandest and widest
scale of all; and the other branches of industry
fall more and more into dependence upon the
kings of iron and steel. In the United States the
mghtiest and the first of the trusts was the fam
Gus steel trust, which arose in 1901. This steel
giant, according to data of 1872 owns and con-
trolls total of 785 enterprises with basic CAPT.
tai exceeding the basic capital of the five other
biggest trusts taken together This steel trust is
the actual governor of so per cent of all the ore
bearing districts of America; in its hands lies the
whole coke production of the United States; it
produces ~ per cent of all the metal piping, so
per cent OF the sheet iron (plan and galvanized)
~ per cent OF the steel rails; it owns network of
railroads of several tens of thousands of miles etc
Ohoer the actual control of the steel trust is
also the whole network of railroads serving the dis
VrlctS Where the mines and plants belonging to the
trust are situated Under the immediate direction
Oh TINS steel giant is also all the coal production
that it requires, and latterly, whole series of
different branches of industry locomotive and
car building, shpbuilding, electrical cement. etc
Inc same picture is presented by Germany.
where one of the most powerful alliances is the
gigantic steel syndicate uniting 81 industrial com
panles, including in that number the plants of
Krupp Stein, Thyssen, Wendell, and Kierdon
The branch of industry next il mnortanca af-
ter metallurgy is coal, and latterly the oil indus
try, which is of tremendous Importance for indus
Try, and In particular for the modern naval and
merchant fleets Coal and oil are the bread and
water OF modern industry, modern shipping. and
railroad transport The development of capitalism
leads however to the condition that the gigantic
coal industry of the big capitalist states is more
ana more swallowed up by metallurgy, the big
gest consumer of coal; or in any case falls into
dlrect and increasing dependence upon it.
In the w. S. for example, the coal market simplv
does not exist, having been completely swallowed
up by the steel market and all the coal mines
belong to the steel kings. The same engulfing
OF the coal market takes place in Germany Eng
land, France, and other countries.
Inc two last decades of the 10th century mark
ed an extraordinary development and growth of
tne influence of the oil industry which begins to
play colossal role along with the metallurgical
ana coal industries. Oil as a fuel and source of
notlVe power is supplanting coal more and more
ana IN contract with the 10th century, the goth
century is becoming the century of OIL the intern
al combustion motor, and electricity.
Inc technical and economic advantages of oil ov-
er coal are the reasons for its broad distribution in
Cne Held OF industry and particularly in shipping
One ton OF oil takes the place of four tons of coal
1leet running on oil has decisive ADVANTAGE
over fleet running coal both in speed and in
other regards. The possession of oil is therefore
one OF the most important conditions of mastery
on sea and land
These fundamental branches of heavy industry
Steel coal, and oil, with metallurgv in the CEN
ter-are those branches of modern capitalism
which on the one hand play the most important
ana decisive role in the world of capitalism, and
on the other hand form the foundation and the
cnleI motlve springs of modern Imperialism.
Inc end OF the 10Th century is characterized in
the development of capitalism by the fact that
the chief Importance in the economic life is lost
oy the textile, in particular the cotton industry.
and the other different forms of so-calIed eight
industry" and the center of gravity moves over
TO heavy industry, particularly to metallurgy Only
from this time, and in the interests before all of
heavy industry, begins the period and development
OF imperialism Heavy industry and the interests
OF It's kings thus become the chief motive springs
Oh modern Imperialism. The struggle, before ev-
erytnlng, for the beds of COAL metal and oil, and
also Tor places for the sale of iron and steel in all