The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1930-03-26

uescrlDlng Cne world economic ana pouVlcal
situation, stressed the point that the outstand-
ing feature of the Third Period of postwar
development of capitalism is the sharp accentu-
lRtion of the basic internal and external contra
Elections expressed at the present time in an
accelerated shattering of capitalist stabiliza-
tion, in the deepening and widening of the rev.
dictionary tide of the international labor move
ment and in the ripening of anti-imperialist
revolutions in the colonial countries. The reso-
luton of the Tenth Plenum says: "The bank
ruptcy of the notorious prosperity proclaimed
by the American bourgeoisie is becoming more
and more obvious" The economic crisis in the
United States which set in three months after
in the midst of a protracted depression in
number of capitalist countries and in the colo
MES, and which fastened the extreme accentu-
alton of the fundamental contradictions OF
world capitalism, destroys the bourgeois legend
Of permanent prosperity in the United States
l(Hoover) and strikes a crushing blow at the
social democratc theories of organized cap
Italsm."
Exposing the falsehood of the bourgeois re-
eormist views regarding american exception
alism' Uovestone, Pepper), and also the pitt
full hollowness of the theory that the problems
Of the market, prices, competition and CRISIS,
become more and more problems Of world eco
nomy, and are being displaced inside the coun-
try by the problem of organization" (Bukharln)
the crisis in America confirms the estimate
of the Third Period given by the Sixth World
Congress and the Tenth Plenum OF the EC.C'l'
T. The Crisis, Growing Unemployment, and
the Accumulation of the Contradictions
of Capitalism.
1. The significance of the present crisis OF
over-producton in the United States is helght-
ened by the fact that it is unfolding In a period
when the contradiction of markets is becoming
increasingly acute, when the tendency common
to all capitalist countries for periods OF de-
preston to become longer and cause the de-
preston to acquire character is certainly very
marked, when certain important branches OF
world economy focal, textile, shipbuilding, etc.
have failed for a number of years to emerge
from a state of crisis, while other branches
rubber oil non-ferrous metals, silver, etc., are
Hentering a crisis, when the capitalist countries
and the colonies are already In the midst OF a
sharp agrarian crisis which manfests itself IN
some countries in the form of over-product-
tion of raw materials and agricultural produce
UNITED States, Canada, Australia, Argentlna),
and in others, mainly in colonial countries I'm
dia. China) in the form of a serious under
production of foodstuffs.
The American crisis finds considerable part
of the capitalist world already in state OF
protracted economic depression In some coun-
tries of East and Central Europe poland, the
Baltic countries, Austria and the Balkans) the
protracted economic depression and crises which
developed as a result of monstrous lmpoverlsh-
ment of the masses, and which are aggravated
by postwar partition, feudal survivals, slavish
dependence on world imperialism, create in
creasingly the prerequisites for general poll
,tcal crisis. In the colonies the crisis is due to
the development of predatory forms of finance
Eapital which relies on native feudalism, to the
widespread practice of cultvating single type
of crop which makes the colonies economically
totally dependent on market fluctuations in the
imperialist countries India, Egypt, etc.,, and
to the heavy drop in the price of colonial raw
material far greater than the drop in the prices
of all manufactured goods and other agricul-
tural produce The crisis is particularly acute
in countries of the colonial type because the
enslavement of the toiling masses by the i'm
perialists, the native landlords and the bour-
geosie is linked up with unparalleled impover-
ishment of the workers and peasants.
2. The crisis in the United States, which
arose out of the general crisis of the capitalist
system, is beginning more and more to assume
an international character because: (a) the
United States plays leading role in the cap
italist sector of world economy (about so per-
cent of the worlds production and gold re-
serves are concentrated in the United States);
(b) the interests of the individual capitalist
countries are so interlocked as a result of the
organization of international trusts and
Ysyndicates, the development Of the export
tof capital and the system of international
debts, so that all capitalist countries are
drawn into the economic crisis; (c) the
shrinking of the home market in the United
States compels American capital to fight more
fiercely for the world market, which means
that the world market becomes restricted for
other capitalist countries; (d) the struggle
American capital is waging for markets tends
10 force down world prices, thus running the
weaker competitors; (e) curtailed output in
the United States brings in its wake crises in
countries which export raw material and semi
manufactured goods to the United States
(Japan-silk, Indo- China-rubber, Brazil-cof-
fee). Consequently, the crisis in the United
States is beginning to affect the capitalist
countries of West Europe as is already mani
Tested in the drop in prices, the fall of the
value of stocks, reduced emissions, the begin
ming of a currency crisis in number of colo
(nial countries, an increase in the number of
bankruptcies, almost a universal, though not
equal, reduction of output, and finally, wage
cuts and universal growth of unemployment