The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-09-15
By WILLIAM RUST.


through the gradual transformation of capital
ism. now stands at the head of a National"
Government together with the Tory Baldwin
and the Liberal. Samuel, a government formed
with the avowed object of balancing the budget
bv plundering the workers and lower middle
class.
The breakup of the Labor Government with
the passing of the Labor Party into the OPPOSE
ton dts former leading group, however, remain
ing in their old positions under National"
Government) is a striking demonstration of the
bankruptcy of reforrnism and the rottenness Of
the entire theoretical structure Of Social
Fascism. It is a collapse that will have wide
spread effect in Britain and throughout the
world. Two years of Labor Government have
resulted not only in the continued depression of
the workers standard Of living unemployment
for example, has risen from 1,1OO125, to ANA
359) but in the birth of government openly
dictatorial in character, the ayowed servant of
the financial oGgarchy. Such are the fruits born
by the tree of Social-Fascism.
The National Government has not only been
formed in order to balance the Budget, it repre-
sents definite stage in the development to-
wards Fascism in Britain, it is much more
open expression of the dictatorship of the bou-
geoisie than ever before and it is charged with
the special task of carrying through the now
dominant aspects Of bourgeois policy, namely,
partial destruction of the once boosted social
services and the imposition of the enormous cuts
in wages. The reduction Of the Cabinet from
twenty-one to ten, the decision to sweep aside
normal Parliamentary procedure in order to
carry through the Economy Plan at lightning
speed, and the very fact that the government
was formed during a Parliamentary recess and
without General Election are immediate fea-
lures of the remoulding of the capitalist state
and a confirmation of the resolution of the
Central Committee of the Communist Party of
Great Britain:
The whole dominant tendency of British
capitalism is now in the direction Of Fascism,
the discarding of the old forms of parliamentary
democracy, which is characteristic of a late
stage of capitalist development marked by capt.
talist decay and advancing class struggle.
The present advance to Fascism is marked by
the complete collaboration of the double forces
OF open faccism and social fascsm to effect the
change The reform of the stale takes place
from within with the cooperation of the exist
ing parties alongside outer violence" Decem-
Der, 1900
These developments arise directly out of the
deepening of the economic crisis and the grow
ing resistance of the British working class to
the capitalist offensive. British Imperialism is
in desperate straits. The economic crisis has now
lasted for more than decade and even before
the onset of the world economic crisis industrial
production was below the pre-war level. Late
in the field so far as naturalization is con-
cerned, its industries held back by the dead
weight of huge debt burdens British imperialism
has fallen rapidly behind in the struggle with
giant rivals Now these long years of decline
are eating into the vitals of finance, the position
of London as a worlds money market is men
,-;-;- ~, ffr.eE
tude is developing. In the past the growing ex-
cess of imports, of exports, was met by the
favorable balance accruing from the so-called
invisible exports but now this one time balance
of $50 million pounds or more has dwindled to
practically nothing.
The new feature of the British economic
crisis is the crisis of the city
Clearly the decisive factor is not the balanc-
ing of the Budget. This in itself will not re-
store confidence in the London money market
The notorious Economy Committee set up by the
late Labor Government even went so far as to
declare that, Even a general world revival of
trade may still find US wrestling with our spe-
cial difficulties" The real problem, as capitalist
economists are never tired Of pointing out, lies
in the restoration of industry by an increase in
competitive power in the worlds market through
a reduction in wages and costs. Sir Josiah
Stamp, the director of the Bank of England,
who played leading part in the formation of
the National" Government, recently declared
that:
Balancing the Budget is of course, the first
but not the only element in restoring confidence
in sterling. There are important economic and
industrial factors which we have to secure"
CThe Times" August 26th0
And the Economist" in the course of a spe-
cial leading article on the tasks of the Ma
tional" Government mainly concentrate on argu-
ing for wage reductions explains Stamps Fac
tors" by declaring:
IF these hard facts were laid clearly before
the people Of the country we are confident that
the response would be very general willing
ness to contribute by broad readjustment of
wages, salaries, costs and prices to a national
effort to regain our lost ground in the worlds
markets" august 29th)
1t is thus clear that the present plans for
balancing the Budget are only the beginning of
the new attack on the masses in Britain and
that the NATIONAL Government intends to
carry through huge wage-cuts and to reduce
social services to the veriest minimum. More
over, sections of the bourgeoisie are toying with
the idea of currency initiation while the volume
of opinion in favor of tariffs is growing every
day. The General Council of the Trade Union
Congress has already declared for a revenue
tariff; Henderson, the new leader Of the Labor
Party made the significant declaration that he
would prefer tariffs to the Governments Econ
ony Plan and Baldwin, the Conservative leader,
promised his supporters "a straight fight on tar
ifs" after the Budget has been balanced
The introduction of tariff cannot be long
DELAYED IT is now one of the main nanks II,