The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1929-12-09
LEON PLOTT.

LEON PLOTT
IN spite Of all the desires Of Lovestone the
right wing renegade, to see capitalism going
upward; tho Lovestone thinks it is wrong to
say that as a result of the developing econ
omic crisis that american Imperialism is also
beginning its process of decline" yet it must
be stated that the developing crisis is ire
mendousy effecting American economy and
is driving capitalism downwards. This Is
fact and even the Annalist had to admit this
too:
Most of the traditional fOrecasters of
future business conditions decidedly
unfavorabIe to any immediate termination
of the current decline. The stock mar
kct collapse was worse than any one had
anticipated. and will undoubtedly effect
business adversely" Annalist Nov. Is.
1t is quite natural that the collapse of the
financial structure of American capitalism
which was caused by certain economic fac
tors shall in turn effect American economy.
This fact was already established that the
large Wall Street spectators were the owners
and directors of important American indus
tries In the last few months American in
dustria corporations invested on the stock
market over four billion dollars in stock specu-
lation. Capitalism from its experience learned
that
The effect of the stock market crash
on business is the paramount question at
the moment. According to precedent,
declining stock market followed by such
sharp breaks as we have experienced
since September of this year is THE
FORERUNNER OF A DECLINE IN
BUSINESS, that is to say, practically
every previous occasion of crash in the
RI barn a
cline of varying magnitude in business"
GIagazine of Wall Street, November 16)
However. while the bourgeoise learns
through its experience and feels that IN the
present period industry and finance are or
ganicay connected and any crisis IN finance
must Immediately effect industry, Lovestone
comes out with an entirely different theory.
Lovestone, like the propaganda writer in the
Hearst papers, states that:
Nowadays the Stock Exchange is no
longer an accurate or a sensitive barome-
ter of the state of the capitalist produc-
tive economy
This theory is not only erroneous, because
capitalism through its experience and develop
ment, as discussed in the Magazine of Wall
9 rect, sees that its industry and finance are
organically connected and that crisis in its
financial structure reflects developing crisis
in its economy, which in the present period OF
capitalist development becomes more accen-
tua-~d This position of Lovestone also repre-
sents an anti-Leninist conception of the ma
ture of finance capital, under which we live
today. First we do not speak of the stock
exchange generally. The question before US
is does the stock market crash we have wit
messed in the United States reflect a certain
condition in American economy? Lovestone
completely denies that, and in the manner OF
the most vulgar bourgeois economist PROCEEDS
to separate industry from finance in the pres
ent period of finance capital
Lenn in his Characterization Of the present
stage o. -9italism stated:
simultaneously there develops so to
speak a personal union between the banks
and the largest industrial and commercial
establishments. a consolidation between
one and the other by the mutual holding
of stock in each others establishments, by
members of the board of directors OF
banks becoming members of boards OF
control or boards of directors OF the IN
dustriaI enterprises and vice versa.
-LENIN.-Imperialism the final stage
of capitalism, p. 49,
This absolute feminist truth which Mr.. Love-
stone is perverting is clearly brought out by
the DEVELOPMENTS in American economy after
the crash We are not only in position TO-
dav to give general forecasts of the capitalist
class itself is making on the damaging effects
of the stock crash on American economy, but
we already see definite signs Of the develop
ing economic crisis in the United States.