The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1935-01-03
Much Perblexity

THE beginning of the new year finds the
capitalists in a more troubled mood than
they were a year ago. They no longer shout
that recovery is around the corner. In
stead their forecasts for 1885 reflect the
lack of assurance and the instability that char
acterize the economic picture.
The Herald Tribune speaks of limited recovery;
the Times confesses TO much perplexity" and to
future that is obscure" In fact all Of the usual
optimistic assertions about the coming year are care
fully tempered by admissions that in many respects
the situation is worse today than last year
In the first place unemployment is greater than
ayesr ago. even according to the A. F. Of L. which
consistently underestimate the correct figures.
Heavy industry is still stagnant. And business as
whole is far below normal" In the last six months
of 1894 the business index of the Federal Reserve
Board averaged only 70 per cent of the period from
ie23-1925 while Roosevelt in his budget message last
year predicted the level would be 90 per cent.
There has been no new capital investment such
as heralds the approach of boom. The banks
have reduced their business loans by 100000 and
despite all efforts to loosen the frozen money market
money continues to pile up in the banks as the
capitalists see prospects for profitable private
investments.
To weather the economic storm the capitalists
took many energetic measures which introduced pro-
found changes in our economic life. But the New
Deal and the NRA., while they enabled the capital
lists to improve their position at the expense OF the
living standards of the workers, accentuaed all the
contradictions which brought on the economic
crisis. The New Deal did not lead to a new boom.
On the contrary the financial editor Of the Times
admits every upward movement is followed by
abrupt reaction and falling markets"
American capitalism is in the midst Of what
Stain called "a depression of special kind" 1t has
made enormous profits through speedup the infla
tionary rise in prices and the continued impover-
ishment of the poor and middle farmers. But
although the economic curve is above the low point
Of the crisis it shows signs Of rising to boom
levels The special depression" is interviewer with
the general crisis of capitalism, and every measure
employed by the capitalists only deepens this gen.
eral crisis.
AS the thirteenth plenum of the Communist In
ternational pointed out, the capitalists in their
frantic efforts to find way out will resort to moves
that will lead to still greater disturbance of the
state finances and to still further intensihcaton
Of the general crisis Of capitalism"
The correctness of this analysis Is borne out by
the events of the past year. At the end of 1884
the government debt was s2s5OO0OOOOO twenty
eight and half billions plus contingent liabilities
amounting to another three billions. This mounting
debt the greatest in the history of the country
must sooner or later lead to new inflatonary
as the government maneuvers to find funds to meet
It's expenditures.
The New Deal has therefore not solved the crisis
1t has strengthened the power of the monopoles
and enormously increased the profits of the capital
lists. but reduced the living standards of the
The bourgeoise by their own admission see no
way out of the crisis Why they find no way out
will be shown by the Daily Worker in subsequent
issues 1t will anayze the annual summaries of the
capitalist economists, and show that these prove
that for the workers there is but real solution
for the crisis-the Communist way out.