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New Tasks and realignments in the Struggle for the Jewish State

by Alexander Bittelman

־"166 - .ץ

MAX GORDON ־56:335,{=> B ACTIVITIES OF THE CENTRAL COMMITTEE, C.P.S.U.

GEORGI M. MALENKOV ILLUSION AND REALITY By CHRISTOPHER CAUDWELL

—a "study in the sources of poetry" with a philosophy of art in terms of both the individual and society. —begins with a study of the origins of art in tribal life; discusses the development of English poetry from Shakespeare to modern times; examines the language of poetry, the differences between art and science. Price: $3-75

AMERICAN TRADE UNIONISM By WILLIAM Z. FOSTER —selected writings by a veteran Communist Party and labor leader on the past 35 years of trade union activity. —selections include: the Great Steel Strike; Trade Union Educa- tional League; the Question of the Unorganized; Trade Union Unity League; Organization of Negro Workers; Industrial Union- ism; Communists and the Trade Unions; New World Federation of Labor; the Trade Unions and Socialism. Price: $2.85 HISTORY of the LAROR MOVEMENT IN THE UNITED STATES By PHILIP S. FONER —a detailed study of the struggles of the working class to win an improved status in American society. —a history of the rise of trade unions and their influence on the development of American capitalism. —an authoritative work based on new and previously unpublished material. Price: $3.75 NEW CENTURY PUBLISHERS .New York 3, N. Y ״ Broadway 832 ^,״׳״^ ^׳^^׳״ POLITICAL AFFAIRS a to the theory and practice of Marxism-Leninism

EDITORIAL BOARD

־ V. J. JEROME, Editor

ABNER W. BERRY, ALEXANDER BITTELMAN, JACK STACHEL, MAX WEISS

VOLUME XXVII, NO. 2 CoflteTltS FEBRUARY, 1948

Organized Labor and the Marshall Plan William Z. Foster 99 The Communist Manifesto Lives! Harry Martel 110 Mr. Truman's Glove and the Mailed Fist Max Gordon 119 The Activities of the Central Committee of the Communist Party of the Soviet Union (Bolsheviks) Georgi M. Malen\ov 125 New Tasks and Realignments in the Struggle for the ^ Jewish State in Palestine Alexander Bittelman 146 The Economic Theories of John Maynard Keynes /. Mindel 156 FROM THE TREASURY OF MARXISM: The Labor Movement in America Frederick En gels 167 Economic Review of 1947 Labor Research Association 174 - On Changes in the Economy of Capitalism as a Result of the Second World War (A Critique of Eugene Varga's Changes in Capitalist Economy Resulting From the Second World War) I. Glad\ov 181

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NEW CENTURY PUBLISHERS • 832 Broadway • New York 3. N. Y. a cold-blooded scheme of American ORGANIZED LABOR monopolists to establish their ruth- less domination over harassed world humanity. Cynically exploiting the AND THE American people's generous impulses and the country's great industrial MARSHALL PLAN strength, these parasitic capitalists are trying, through the Marshall Plan, to build up their own wealth By WILLIAM Z. FOSTER and power at the expense of the rest of the world. It is a war plan. IN SUPPORTING the Marshall Plan, The Marshall Plan's birthplace is the top leaders of the A. F. of L., Wall Street, its political father is the C.I.O., and the Railroad Brother- Herbert Hoover, and its driving hoods are backing the program of slogan is the Hitlerian cry for a Wall Street for world domination. "crusade against Communism." It Some of these labor leaders are tak- is the discredited "get-tough-with- ing this course because they are just Russia" policy and the notorious as imperialist-minded as the big Truman Doctrine, implemented with bankers themselves; others do it for the great veconomic and military opportunistic, "band-wagon" rea- might of the United States. The sons; and, still others, out of ignor- Marshall Plan, controlled by the ance of the true situation in the most powerful reactionary force in world. But all these leaders of labor, the world, American finance capital, whatever may be their individual is a menace to the democracy, pros- motivations, are violating the most perity, and peace of all mankind. fundamental interests of the masses. The three phases of the Marshall They are betraying the working Plan—economic, political and mili- class and the American people as a tary—are all equally reactionary. whole into the hands of their worst The economic phase consists in enemies, the Wall Street imperial- squandering tens of billions of ists, profiteers, and warmongers. American dollars in order to bring the economies and governments of THE MARSHALL PLAN Europe under Wall Street's control. The Schuman and de Gasperi Gov- All the current blather to the con- ernments of France and Italy, acting trary notwithstanding, the Marshall directly against the interest and will Plan is not a project of the generous- of their peoples, have become, so far hearted American nation designed as their economic policies are con- to help the war-ravaged peoples of cerned, little better than office boys Europe to get back on their feet. It is for the U.S. State Department. Great

99 100 POLITICAL AFFAIRS Britain finds itself unable to refuse may also be described as a fear that vital economic concessions to Wall the masses in Greece and Turkey, like Street in return for badly needed those in Czechoslovakia and Yugo- American dollars. Thus, the four slavia, will abandon the capitalist way billion dollar loan to Britain was a of life ־definite infringement upon that And further, speaking of Ameri country's national independence. A can capitalism's "anxiety to recori- ׳recent Gallup poll showed that 51 struct Germany on the basis of pri per cent of the people in Great vate enterprise," he says: Britain were in favor of rejecting such American aid as being injuri- For such a Germany means not only a great field of American investment; ous to British national independence. it means that American capitalists, as The following incident, reported Germany becomes reorganized, can in the New Yor\ Times, December dominate France—and in partnership 17, 1947, typically illustrates how with Germany 'seek to keep Russia Great Britain is becoming economic- within limits they regard as safe.* ally subordinated to this country. The United States has poured' out The United States agreed today to 15 billion dollars in grants and loans finance the entire cost of the British- to capitalist nations since the war's American occupation of Western Ger- end. Little "reconstruction" has many, assuming an additional $400,- taken place as a result of this gigan- 000,000 liability heretofore paid by the tic sum. For the most part the British, in return for a controlling money has gone down the drain, or voice in the economic affairs of the rather into the pockets of the greedy area." (Emphasis mine, W.Z.F.) exploiters in the various capitalist countries. The 17 billions demanded Thus does the United States beat by the President to finance the Mar- down Great Britain with its superior shall Plan will go the same futile financial power. way if the American people are un- Harold J. Laski, former chairman wise enough to permit Congress to of the British Labor Party, after vote the funds. For all the gold and complaining about American eco- bayonets of Wall Street cannot make nomic dictation to Great Britain, stricken West-European capitalism exposes as follows the imperialist strong and healthy again. Actually, character of American economic the far more badly war-devastated policy: nations of Central and Eastern Stripped of the rhetoric of diplomacy, Europe, which have had little or no the Greek and Turkish loans were a American "help," are recovering defense of American capitalism against much more rapidly than the greatly the danger of what is called in Wash- * Harold J. Laski, "Is Europe Done For?" ington "Russian expansionism" but The Nation, November 22. 1947. ORGANIZED LABOR AND THE MARSHALL PLAN lor "aided" countries of Western Eu- archist-fascist regime and the reac- ״ rope. This is because the former tionary, clerical clique with which it countries have adopted the economic is surrounded. In Spain they are and political reforms necessary for lending support to the butcher recovery, which the West-European Franco. In the Balkans and middle countries, under reactionary Ameri- Europe they are trying to foment can pressure, have been prevented rebellions against the new democ- from doing. racies (Poland, Hungary, Romania, The political phase of the Mar- Czechoslovakia, etc.). Outside of Eu- shall Plan is no less reactionary than rope, too, the aim of the American its economic phase. The United imperialists takes the same course States Government, under the dicta- —active support of the Dutch im- tion of Wall Street's political agents perialists in Indonesia, the French —Hoover, Dulles, Truman, Mar- imperialists in Indo-China, the rot- shall, et al.—has become the center ten Chiang Kai-shek Government in and organizer of world reaction. China, and, the worst reactionaries Representatives of the State Depart- in Latin America—in opposition to ment, allied closely with the Vati- the struggling democratic peoples in can, Right-wing Social-Democrats, those lands. The political line of the fascists, and big landlords and in- Marshall Plan leads toward the re- dustrialists, are supporting reaction- constitution of fascism on a Euro- ary political causes everywhere. pean and worfd scale. In Great Britain, through man- The military phase of the Mar- ipulating the Labor Government, shall Plan comprises the mobilization they are sabotaging the nationaliza- of the armed might of the United tion of industry and other vital re- States behind the economic and po- forms and at the same time schem- litical policies of Wall Street. This ing for the return of Churchill to is the meaning of our atom-bomb power. In Germany they are work- diplomacy, the present gigantic ing in close harmony with the big American military establishment, the Hitlerite industrialists, fascists, and widespread warmongering here, the reactionary Right Social-Democrats. intensive preparations for war In France they had the Communists against the U.S.S.R., the armed in- expelled from the Cabinet and are tervention of the U.S. in Greece, building up General de Gaulle as a China, and Indonesia, the State future fascist dictator. In Italy, too, Department's systematic by-passing they forced the Communists out of of the United Nations, the building the government, and they are co- of an anti-Soviet Western European operating with the remnants of Mus- bloc, and the construction of the solini's fascists. In Greece they are Anglo-American military alliance. backing, with armed force, the mon- In the New York Herald Tribune, 102 POLITICAL AFFAIRS January 6, 1948, Sumner Welles ex- against the U.S.S.R. and the new poses the military core of the Mar- democracies of Eastern Europe. shall Plan by virtually urging war. With no Left elements at the con- The paper characterizes his article vention to bid them nay, the A. F. in the following heading: "Con- of L. leaders gave an unrestrained gress Urged to Warn Kremlin U.S. demonstration of their crass labor- May Use Force in Europe. Welles imperialism. says Marshall Plan Alone is Not The C.I.O., at its convention in Enough. . . ." Boston, held at the same time as The launching of the Marshall that of the A. F: of L., took a more Plan in the face of vast popular op- roundabout course in backing the position to it in many countries, has Marshall Plan. The convention re- split the world into two major solution on foreign policy, a com- camps and thereby greatly sharpened promise, makes no reference whatso- the war danger. American imperial- ever to the Marshall Plan, nor does ism, in a desperate effort to defeat it endorse the imperialist essence of world democracy and Socialism and that scheme. But it has been inter- to make its own reactionary will preted by President Murray as an prevail, is consciously organizing endorsement of the Plan. Delegates another world war to .push through like Walter Reuther, John Green, its aggressive strategy of world con- and their crowd voted for the resolu- quest, of which the Marshall Plan is tion in that sense. The Left forces now the dominant expression. at the convention were openly op- posed to the Marshall Plan, but they made the mistake of not seeing to LABOR LEADERS IN THE it that the resolution was clear and SERVICE OF WALL STREET specific. They should have insisted The A. F of L., at its convention that it propose that all American aid in San Francisco, in October, 1947, should be handled through th« went all seas over for the Marshall United Nations, and failing in this, Plan with the same enthusiasm with should have voted against it. which it had been supporting the Since their respective conventions, Truman Doctrine. The convention the A. F. of L. and C.LO. leaders was an orgy of Red-baiting, Soviet- have demanded labor representation baiting, and warmongering. The in the application of the Marshall principal complaint of such reac- Plan, "to insure its democratic ad- tionaries as Matthew Woll and Da- ministration." But, of course, the vid Dubinsky was that Wall Street imperialist masters of the Govern- and the Truman Administration ment will not agree to any demo- were not going fast and far enough cratic "nonsense" in fastening their in provoking their much-desired war grip upon Europe. They do, how- lor ORGANIZED LABOR AND THE MARSHALL PLAN ever, have important tasks for the leaders, even to the extent of sys- labor-imperialists to carry out in tematic union-wrecking and strike- putting the Marshall Plan into breaking in various parts of Europe. operation. Indeed, the latter are al- For the past several years the ready busy at these tasks. A. F. of L. has maintained in West- First, the Wall Street imperialists ern Europe, headquarters and a big have impressed the pliable leaders staff of agents, whose shameless task of organized labor to help break up it is to split the labor movements of the opposition of the American peo- the Continent and to wreck the pie to the Marshall Plan. To this World Federation of Trade Unions. end, the reactionary labor leaders This they are striving to accomplish are carrying on the Big Business under the Hitlerian pretext of fight- propaganda to the effect that the ing Communism. The A. F. of L. Soviet Union is engaged in a menac- splitters are working cheek by jowl ing expansionist offensive and that with Right Social-Democrats, reac- this country is in danger of attack; tionary clericals, fascists, and anyone that the Truman Administration is else they can enlist to help them. defending world democracy against They are now planning to hold a a threatened Communist revolution; 16-nation conference of trade union- that the United States wants Euro- ists in Western Europe, in the hope pean recovery, while the Commu- of forcing the Marshall Plan down nists want economic chaos. This im- the workers' throats and of splitting perialist propaganda is now being their organizations away from the busily peddled to the American World Federation of Trade Unions. working class by many labor leaders, The C.I.O. betrayed its progressive thereby ideologically confusing the traditions by sending the notorious workers and weakening their re- reactionary, James B. Carey, to Eu- sistance to the attempts of monopoly rope to "sell" the Marshall Plan to capital to achieve its own purposes the unwilling labor unions and to under the sign of the Marshall Plan. engage in union-splitting. Secondly, Wall Street is also using The foremost trade-union leaders the reactionary American labor throughout Western Europe are leaders to undermine the opposition Communists. On the basis of their of the democratic masses of Europe loyal service to labor, especially in to the Marshall Plan. The mass the hard conditions of the under- resistance is especially concentrated ground struggle against Hitler, they in the European trade unions, where, haive been freely elected by the above all, the Wall Street agents are workers in elections more demo- determined to exert their pressure. cratic than those of either the And in this effort they have the A. F. of L. or CJ.O. But the reac- active assistance of American labor tionary American labor leaders, at 104 POLITICAL AFFAIRS the behest of Wall Street, have taken their tacit or open support. And in it upon themselves to oust these Greece, Clinton Golden, former Communist leaders and to force the C.I.O. top official, who was sent to European workers to accept the Mar- that country as part of the American shall Plan, even if they have to military mission, with the blessing wreck their trade unions to do so. of both the A. F. of L. and C.I.O. During the recent great strikes leaderships, endorsed by his si- against semi-starvation conditions in lence the action of the monarchical France and Italy, this union-wreck- fascist government in Greece in ing on behalf of U.S. finance capital enacting legislation providing the reached new heights (or rather, death penalty for strikers. To such depths). Reactionary French and levels have American reactionary Italian labor leaders, supported by labor leaders fallen in their attempts A. F. of L. and C.I.O. officials and to force the European peoples to ac- supplied with American money, cept Wall Street's Marshall Plan. actually engaged in the most shame- less strike-breaking. In the general THE COST OF strikes, they called upon the work- LABOR-IMPERIALISM ers to disregard the official strike calls of their unions, and they also The leaders of the A. F. of L., the used every known employer tactic C.I.O., and the Railroad Brother- to start back-to-work movements hoods have lashed their organiza- among the strikers. In France, after tions to the chariot of American im- betraying and weakening the big perialism. They have merged the strikes, these false labor leaders de- aims of organized labor into the liberately split the labor movement campaign of Wall Street for world in two. Every capitalist reactionary domination. For this betrayal of in the world applauded their disrup- working-class interests the workers tive work. in this country and the whole Amer- In the United States the A. F. of L. ican people will pay through the and C.I.O. leaders are supposedly nose—they are already, in fact, be- fighting the Taft-Hartley Law, ginning to do so. Loss of American which is monopoly's main direct at- labor's prestige abroad and of its tack against American trade union- integrity at home, together with v ism. But these same dealers ap- worsened economic and political plauded the Schuman Government conditions for American workers, of France, a Wall Street puppet, are the sure price that organized la- when it adopted a far more drastic bor in this country will pay for al- anti-strike law than the Taft-Hartley lowing its reactionary leaders to at- Act. Even more, they gave the tempt to ram the Marshall Plan strike-breaking French government down the throats of unwilling Eu- ORGANIZED LABOR AND THE MARSHALL PLAN lor

ropean workers, for its leaders' imperialist drive of Wall Street on cynical betrayal of the struggles of a world scale is necessarily accom- colonial and semi-colonial peoples in panied by an anti-democratic drive Asia against American, British, in this country. These twin drives French, and Dutch imperialism, and are the two sides of the one coin. for its crass abandonment of the The outrageous lynch attacks against workers and peoples of Latin Amer- the Negro people, the shameless ica to the encroachment of Yankee Red-baiting of the House Commit- imperialism. tee on Un-American Activities, the Pro-Marshall Plan labor-imperial- disgraceful "loyalty oath" prescribed ism not only injures workers .in by President Truman for govern- other countries, but also definitely ment employees, the passage of the harms the economic welfare of the Taft-Hartley law, the persecution American workers whose fight for of Eugene Dennis, Alexander Bit- better conditions it compromises. telman, Claqdia Jones, Leon Joseph- The squandering of tens of billions son, and many other Communists of American dollars all over the and progressives, and the emer- world, with organized labor's bless- gence of the F.B.I, as an incipient ing, for reactionary imperialist eco- Gestapo, are only a few of the many nomic, political, and military pur- signs of the monopoly-cultivated fas- poses, is like pouring a huge quan- cist trends in this country. And they tity of oil on the flames of inflation are all directly linked with Wall now raging in the United States. It Street's imperialistic foreign policies. sends prices soaring, makes living Organized labor's fight against these costs prohibitive, and is a major sinister developments, which are de- factor in creating the worst drunken stroying the American people's dem- spree of profiteering that the United ocratic gains, will be of no avail so States has ever known in peace time. long as it continues to support po- The general atmosphere of political litically Truman, Marshall, and reaction and paralyzing class col- other representatives of Big Busi- laboration generated by organized ness in their domestic and foreign labor's support of Wall Street's Mar- policies. shall Plan and its imperialist policies Labor-imperialism likewise flings generally, makes it next to impos- the United States wide open to the sible for the leaderless workers ef- dangers of militarism and war. The fectively to defend their living growth of a stupendous military standards. establishment in this country and Furthermore, labor - imperialism the unfolding of a policy of war disarms the workers in the face of threats by the State Department are the dangerous growth of fascist ten- the inevitable accompaniment of the dencies in the United States. The Marshall Plan. It is because of its 106 POLITICAL AFFAIRS subservience to American imperial- one-fourth of the C.I.O., are remain- ism that organized labor make no ing faithful to the true interests of fight against the establishment of the workers. One should not be sur- U.S. military and air bases all over prised so far as the imperialist at- / the world, the development of a titude of the clique of reactionary ruthless atom-bomb diplomacy, the bureaucrats controlling the A. F. of forcing of armed intervention in L. is concerned. If within the past various countries, the taking over forty years the policies of these reac- of our national government by the tionaries ever coincided with the in- terests of the working class and the brass hats, and the widespread cam- American people, it was purely ac- paign of warmongering. The labor cidental. The C.I.O. leadership, leaders' support of the Marshall despite that organization's progres- Plan thus exposes our country to sive traditions, is on the same path the danger of an atomic war, which of tailing after the capitalists. The would bring untold death and de- C.I.O. top leaders are trying to con- vastation upon our people. In view vince the workers that the big capi- of this wholesale acceptance of the talists who run the American gov- Marshall Plan and the aggressive ernment are striving, out of the militarization program that goes goodness of their hearts, to preserve with it, the fight of the A. F. of L. and strengthen world prosperity and and C.I.O. against the Universal democracy through the Marshall Military Training project of "labor's Plan, and that they themselves as champion," President Truman, is trade union leaders, can therefore waning to the point of being ne- profitably identify the workers' in- terests with those of the Wall Street gated. imperialists. The meaning of all this is that the A. F. of L., C.I.O., and Railroad THE SIGNIFICANCE OF THE Brotherhood top officials have abdi- THIRD-PARTY MOVEMENT cated the working-class leadership which, as heads of the basic eco- The A. F. of L., C.I.O., and Rail- nomic organization of the workers, road Brotherhood leaders have logic- ally taken their labor-imperialism they should be exercising. In these over into the national election cam- crucial times when labor should be paign that is now developing. In the on the alert against its great enemy, main, these leaders, with the exc.ep- monopoly capital, op the foreign as tion of John L. Lewis who has not well as the domestic front, the de- yet made his position clear, are pro- cisive leaders of organized labor are posing the re-election of President tailing after Wall Street's imperialist Truman, and they claim they will leadership. Only the Left-Progres- use millions of the unions' funds for sive trade unions, comprising about this more than dubious purpose. ORGANIZED LABOR AND THE MARSHALL PLAN lor Some of them are supporting Tru- Wallace's independent candidacy man as a liberal, while others are is of the greatest importance politic- backing him as "the lesser evil." ally. Wallace is especially speaking But it is absurd to consider as either in the name of the profoundest a liberal or a lesser evil the man who peace sentiments of the American broke the railroaders' and coal people. This is why the leaders of miners' nationwide strikes and who the two old parties and the reac- threatened to use the Navy to smash tionary press are so greatly alarmed the proposed national strike of mari- by this fact. They fully realize that time workers. Truman is the man the American people do not want who formulated the loyalty oath, war, and they are afraid Wallace who allowed the Taft-Hartley Bill can reach and organize this basic to pass by refusing to fight against mass sentiment of the American it, and who is going along arm-in- people. First, Wallace's candidacy arm with Wall Street in its whole will bring the question of foreign warlike imperialistic foreign policy, policy into the open and cause a There is no real difference between real national debate upon it; until Truman and the Republicans, with now the American people have been whom he is working so closely in simply smothered with pro-impe- foreign and domestic policy. rialist propaganda. Secondly, it will The labor-imperialists are not hav- open the way for a real electoral ing things all their own way in struggle against the inflationists and mobilizing the people to support the profiteers in the cities, states, and na- pseudo-liberal Truman. Millions of , tionally. Thirdly, it will serve to workers, Negroes, small farmers, awaken the American people to the and city middle-class elements have gravity of the attack upon their had more than enough of Truman's democratic liberties by the Red- so-called liberalism and they are baiters and other reactionaries, turning toward Henry A. Wallace Fourthly, it will galvanize into action for leadership. This is particularly millions of otherwise passive voters indicated by their turnout at his disillusioned by Truman and will many huge mass meetings. The peo- thus provide the basis for the elec- pie like Wallace's militant fight tion of a progressive Congress, against inflation, his tireless struggle Fifthly, it will provide a tremendous to preserve American civil liberties force to check the reactionary war from fascist-like attacks, and his course of the Government by bring- dogged battle against the war- ing vast mass opposition to bear mongers and for a genuine peace against it. Sixthly, and most vitally, policy. Large sections of the Amer- it will lay the basis for the long ican people correctly see in Wallace overdue progressive people's party the continuer of the progressive in the United States, policies of ,Roosevelt. The numerical strength of the 108 POLITICAL AFFAIRS

Wallace supporters cannot be of the common people are refusing gauged accurately at this time, but to be led into this trap. it is very large. How large a body With most of the leaders of labor of his many millions of potential going the way of Wall Street, and supporters can be actually brought to with great masses of the workers the polls in November will depend heading in the opposite direction, to a great extent upon the organiz- this situation can eventually have ing capacity of the new Wallace profound effects in reviving and re- movement. Wallace will be sub- juvenating the labor movement. The jetted to the w idest and most un- workers are in the process of break- scrupulous Red-baiting in the history ing loose from the tutelage of the of the United States, and no pains capitalist class and of establishing a or money will be spared to isolate broad, independent, anti-monopoly him from the masses and to prevent people's party. The 1948 elections his great popular support from crys- will undoubtedly mark a most im- tallizing into a solid, organized vot- portant stage in the onward march ing strength and a third party. of labor and the cause of democracy The position now being taken by in the United States. Wallace and the Left and Progres- Big capitalists in the United sive unions'in the C.I.O. regarding States, along with their various foreign and domestic matters is es- types of labor and Social-Democratic sentially the policy that should be stooges, are frightened over the Wal- followed by organized labor as a lace candidacy. And well they may whole. Wallace speaks in the name be; for it is a deep-going grass roots of the basic interests of the Amer- movement against the reactionary, ican working class and the Amer- imperialist policies of Wall Street. ican people. The A. F. of L. and In his January, mesage to Congress -C.I.O. leaders have forgotten these on "The State of the Union," Presi׳ interests and, by their support of dent Truman tried to sidetrack the the Marshall Plan, are surrendering Wallace movement by making a the unions under their leadership to speech designed to v create the im- Wall Street. They are taking a path pression that he has returned to the that can lead only to serious disaster Roosevelt tradition. But behind all for the workers. his wordy pseudo-progressivism was the hard reactionary substance of the The: Wallace movement has very Wall Street-Truman Administration much of a rank-and-file character. policy. Truman reiterated his basic American imperialism has succeeded program of fomenting civil war in in mobilizing the press, the radio, Greece and other countries, of split-. the church, and now the reactionary ting the world into two camps over labor leaders, to support its drivtf the reactionary Marshall Plan, of by- for world domination. But millions passing the United Nations on the ORGANIZED LABOR AND THE MARSHALL PLAN lor 109

matter of world recovery, of estab- they will but reject Wallace. At the lishing universal military training same time, all these pro-Big-Busi- and other features of a huge military ness elements are carrying on an un- program in this country. For the precedented drive of Red-baiting to rest, his talk was all demagogy, a try to intimidate the workers and ! cynical attempt to deceive the masses others into turning against the Wal- of the people with a lot of promises lace third-party movement. But of social reforms which he has not these twin weapons of deceit and the slightest intention of redeeming. threats will fail. The people of the The two major weapons now United States are stirring against being used against the Wallace movement are demagogy and Red- their exploiters and oppressors. The baiting. Politicians, labor leaders, Wallace movement will not be "liberals," newspapers, clericals, ra- stayed. It is the first stage of a far- dio commentators, employers—are reaching political realignment, the engaging in an unparalleled cam- beginning of the formation of a paign to deceive the workers into great new national democratic coali- believing that all will be lovely if tion in the United States.

A NEW CONCEPTION OF THE WORLD . . .

". . . With the clarity and brilliance of genius, this work [the Manifesto] oudines a new conception of the world; it represents con- sistent materialism extended also to the realm of social life; it proclaims dialectics as the most comprehensive and profound doctrine of develop- ment; it advances the theory of the class struggle and of the world- historic revolutionary role of the proletariat as the creator of a new Communist society." V. I. Lenin, The Teachings of Karl Marx, International Publishers, p. 7. "the well-born," the aristocrats, and THE COMMUNIST the counter-revolutionaries were then, as today, appalled by "the spectre" of democracy. Here, the MANIFESTO LIVES! farmers and the mechanics, the ma- jority of the people, were waging a struggle for democratic advance By HARRY MARTEL which was related to the struggles carried on by the workers and the other democratic forces in Europe. OkE HUNDRED YEARS AGO, during an The scientific expression of these economic crisis, and on the eve of class struggles was an urgent his- the revolutions which were to engulf torical necessity. It came in the great France, Germany, Italy, and other work of Marx and Engels. continental countries, a small Lon- don printshop issued the Manifesto of the Communist Party on behalf ORIGIN AND AIMS OF of the Communist League. Its THE MANIFESTO authors were the well-known revolu- tionaries, social scientists, and phil- The Communist Manifesto is the osophers, Karl Marx, age 29, and most revolutionary document in the Frederick Engels, age 27. The Ger- whole of man's history. It pictures, man, French, and Belgian police, in images that compel thought and guardians of outworn social rela- inspire action, the birth, develop- tions, had long been ordered to keep ment, decay, and death of capitalist strict watch on these young men society. It speaks to peoples of all who were known to be engaged in nations and of all tongues, because it the "subversive" fight for democ- is derived from their common class racy. struggles, aspirations and experi- The opening lines of the Manifesto ences. It is a product of all great announced: revolutionary struggles of the past, the American Reyolution included. A spectre is haunting Europe—the There was nothing ,accidental in spectre of Communism. All the powers the fact that the Communist League, of old Europe have entered into a holy an organization of workers of many alliance to exorcise this spectre: Pope and Czar, Metternich and Guizot, nationalities, should have called on French Radicals and German police- Marx and Engels in 1847 to draw spies. up for it a statement of its principles, tactics, and program. Young as These "powers of old Europe," Marx and Engels were then, they had enemies of freedom, had their coun- already revealed their genius and terparts also in America. The wealthy, revolutionary zeal in polemic battles 110 THE COMMUNIST MANIFESTO LIVES! Ill with the Bauer brothers, who exalted At the same time, the latter were the elite and looked down on the organizing proletarians in Belgium, masses; with Max Stirner, who was propagating their principles in work- the father of petty-bourgeois anar- ers' groups in Paris, and winning chist individualism; with Hermann over to their views such leaders of Kriege, whose People's Tribune in the Chartists as Julian Harney and New York preached a sentimental Ernest Jones. Marx also became Communism and advocated farms vice-president of the Democratic for the workers as the solution of the League, an international organiza- "social question"; with Wilhelm tion of Left-wing liberals, founded Weitling, who combined a mystical in Brussels. "harmony-Communism" with advo- It was the power and down-to- cacy of revolution by the lumpen- earth quality of Marx's and Engels' proletariat; and, above all, with ideas which impelled the League of Pierre Proudhon, whose petty-bour- the Just, the predecessor of the Com- geois anarchist cooperative illusions munist League, to invite them to re- had become influential in work- organize the League and to make ers' circles in France. In all their clear to the world what it stood for. works the main thought which mo- But Marx and Engels set conditions tivated Marx and Engels was the before they agreed to accept this as- role of the proletariat as the chief signment. The old League of the productive force in bourgeois society Just, reflecting the embryonic stage —as that class which, in achieving its of working-class development, in its own emancipation, is destined to free response to ruling-class terror, was society as a whole. sectarian and conspiratorial in char- While developing the theories of acter. Marx and Engels, after ex- the Communist Manifesto, Marx tended polemics, convinced -the lead- and Engels at the same time were ers of the harmfulness to the work- engaged in the practice of organiz- ing class of the continuation of the ing, coordinating, and leading the old conspiratorial methods of work. class battles of the European pro- They insisted also that the old au- letariat and the general democratic thoritarian centralism be replaced movements. They founded the Com- by democratic forms. The members munist Correspondence Committees of the organization, which now was on the continent and in England. to be called the Communist League, They gathered around them such re- were to be the final power. markable proletarians as Wilhelm Now the revolutionary party of Wolff, to whom Marx later dedi- the proletariat could proclaim: "The cated Capital and Joseph Moll, the Communists disdain to conceal their watchmaker who officially invited views and aims." This statement has Marx and Engels to reorganize the been true for one hundred years. The League and to write the Manifesto. views and aims of the Communist 112 POLITICAL AFFAIRS Party are publicly proclaimed in its reflecting social reality, express the program and constitution. The enemy, deepest impulses and highest aspira- naturally, uses the age-old canard tions of man. The"Manifesto ranks about "secret" aims and "secret" tac- among the supreme achievements of tics with the purpose of dividing the mankind. It holds this place because, workers and the allies of the work- like the greatest of man's cultural ers. Liberals are often victimized by treasures, the Manifesto has its this tale of bogeys in closets. source in the creativeness of the peo- Bourgeois parties, on the contrary, pie and is a stimulus for developing cannot afford to express their real that creatiyeness to ever higher aims. For these aims are detrimental levels. to the interests of the exploited The Manifesto depicted with a masses. Let the bourgeois parties mighty sweep a process which was such as the Democratic and Republi- to result in the most stupendous Can parties in our country, dare to of all of man's creations, the Union proclaim that their reason for exist- of Soviet Socialist Republics, ence is to line the pockets of the The Manifesto was "to be pub- rich at the expense of the workers lished in the English, French, Ger- and farmers! We would then see man, Italian, Flemish and Danish how many Americans would vote to languages." One of its main tenets maintain that gouging "way of life." was that the working class of each What distinguished the Manifesto country must become master in its from all previous statements on be- own house through its own, na- half of the working class was that it tional effort. Emancipation from signalized the historic emergence of capitalist enslavement could not be the scientific world outlook of the brought to the workers of any na- modern proletariat. Here were ex- tion from the outside. The Commu- posed with amazing clarity the con- nist Party, representing the exploited tradictions that gnaw at the heart of and oppressed of the nation, is the bourgeois society. Here too were de- agent of only one power, the working picted the growth and the sharpen- class. ing of those contradictions that are The substance of the struggle destined to put an end to bourgeois of the working class is international, society, "the last antagonistic form as the Manifesto stresses. This is be- for man's social development." For cause the general nature of bourgeois these reasons the Manifesto has be- exploitation is the same everywhere, come, to quote Lenin, "a handbook But the Manifesto warns against for every class-conscious worker." It a pseudo-internationalism which can appeals to the mind and heart, be- only bring harm to the working class cause it is the concentrated expres- because it tries to apply ready-made sion of the proletariat's strivings. schemes to the varying forms of pro- Those works are immortal which, letarian practice. For Marx and En- THE COMMUNIST MANIFESTO LIVES! Ill gels, as for Lenin and Stalin, the ported by the Communist League* nation was the indispensable frame- was led by George Henry Evans, work within which the class struggle who had inscribed its program on in capitalist society is carried on and the masthead of Young America. within which it finds its outcome. The first plank was: "The right of More than that, the forms of the man to the soil: Vote yourself a struggle are dictated by historical farm/' The tenth plank, printed in national capital letters, read: "ABOLITION ן conditions, among which traditions and characteristics play a OF CHATTEL SLAVERY AND major role. Hence the profound sig- OF WAGES SLAVERY." And nificance for us Americans of the Charles Sotheran comments in his following lines in the Manifesto: Horace Greeley and Other Pioneers of Socialism: "The abolition o£ Though not in substance, yet in form, 'wages slavery,' as well as of chattel the struggle of the proletariat with slavery. That is the keynote of the the bourgeoisie is at first a national whole movement. ..." struggle. The proletariat of each coun- try must, of course, first of all settle matters with its own bourgeoisie. THE MANIFESTO'S GROWING INFLUENCE The principles expressed in the Manifesto were new and indeed The history of the Manifesto, said startling, particularly to those who Engels in 1888, "reflects, to a great had been influenced by Utopian Com- extent, the history of the modern munist theories, and, as in the United working class movement; at present: ׳States, also by agrarian reform move- it is undoubtedly the most wide ments. But the advanced workers spread, the most international pro- grasped the significance of this revo- duction of all Socialist literature, the lutionary document because they saw common platform acknowledged by how brilliantly it explained the millions of workingmen from Si- stormy class struggles in which they beria to California." were engaged. Today, sixty years since these In the United States, some of the words were written, wherever the "farmers and mechanics" produced a fight for freedom is on the agenda, program which combined the de- the Manifesto is a manual of pro- mand for individual farms with the cedure. The first Workers' State,, revolutionary demand, the Marxist established thirty years ago, has demand, for the elimination of the emerged from the most devastating system of wage slavery. For in- war in history as the greatest force stance, the movement referred to by for world peace and the spokesman the Manifesto as the "Agrarian Re- of the democratic strivings of the formers in America," which was one peoples everywhere. The new peo- of "the working-class parties" sup- pies' democracies are building a so- 114 POLITICAL AFFAIRS ciety free from dependence on the United States toward labor's acqui- monopolist exploiters and are blaz- sition of class consciousness. ing new paths of development to» Socialism. The people, headed by THE MANIFESTO'S the proletariat, have dug a deep PRINCIPLES VERIFIED grave for the monopoly capitalists and landed interests who betrayed What indeed has happened since the nations to the fascist Axis. In the Manifesto told of the future, as France and Italy, millions of work- well as the past, of human society? ers, farmers, and professional people It heralded a wave of democratic struggle under the banner of Marx- revolutions. And the revolutions ism, held aloft by the giant Commu- came before the printer's ink on the nist Parties. first copies was dry. It stated that the In China, millions, fighting for a contradictions of capitalist society free, independent, democratic life, would sharpen, and that their arena are inspired by the teachings of sci- would be world-wide. Can anyone entific Communism. In the people's deny that this happened? republics of Viet Nam and Indo- Marx stated that economic crises nesia; in Korea, in Africa, in the were inevitable under capitalism, as Western hemisphere, the principles basic manifestations of the laws of of the Manifesto are being studied motion of capitalist society. To hope, in the heat of struggle. The Greek therefore, that capitalism could exist people, resisting American imperial- without periodic crises of increasing ist oppression, are fortified by the severity was equivalent to dreaming indestructible ideas of the Manifesto. that capitalism could exist without the extraction of surplus value from ׳ In the United States, where labor has not yet attained mass class con- the proletariat and the consequent sciousness and where backward, accumulation of capital. More than a bourgeois influences are still preva- hundred years of recurring crises—• lent in its midst, the movement of surely a period long enough to con- the working class nonetheless takes vince the most cautious suspender of the direction of the historic course judgment "until all the facts are in" outlined in the Manifesto. The giant —have demonstrated that all the strides made by the American work- Browder-advertised "intelligence" of ers in recent years in trade union the bourgeoisie combined could not organization have been accompanied and cannot stop the recurring eco- by definite steps toward working- nomic disasters. How often have class independent political action, revisionists begun their miserable careers by denying the Marxian which are breaking down the per- theory of crises! But no picture nicious .theory of the permanence of of the Great Crisis of 1929-1933 is the two-party system• This is the more accurate than that drawn in the concrete historical process in the THE COMMUNIST MANIFESTO LIVES! Ill

Communist Manifesto to describe typical approach of most modern crises in general: "Society suddenly bourgeois "scientists" in the fields of finds itself put back into a state of sociology, political economy, history, momentary barbarism; it appears as and anthropology. if a famine, a universal war of devas- The remarks of the historian tation had cut off the supply of every James T. Shotwell concerning the means of subsistence." The dialectic science of history are therefore sig- of social development brings into nificant. In his article, "History," "sensuous reality" the predictions of in the 14th edition of the Encyclo- the Manifesto. pedia Britannica, Professor Shotwell, The Manifesto's main predictions who is Director of Economics and have been and are substantially be- History for the Carnegie Endow- ing verified in the struggles of our ment for International Peace, con- own times. The greatest verification eludes his account of the various the- of the predictive power of the Mani- ories of history with the following festo is the Union of Soviet" Socialist statement regarding historical mate- Republics. That is why the Manifesto rialism: "It is an exaggeration of impresses the working class reader the theory which makes it an ex- with its contemporaneous quality, planation of all human life, but the both in form and content. whole science of dynamic sociology THE POSTULATE OF MARX rests upon the postulate of Marx." The statement by this eminent Any account of society which does bourgeois thinker that the whole not start from the materialist con- of sociology (history) rests upon the ception of history, so graphically ex- Marxian postulate is a bold recogr pressed in the Manifesto, is doomed nition of a profound truth. to failure. The story of 19th and 20th What is the postulate ? Engels century thought .proves this abun- summarized it most clearly in his (All sorts of bourgeois think- preface to the English edition (1888 ־.dantly ers have, in the unintentionally hu- of the Manifesto: morous language of the sociologists Ogburn and Nimkoff (with refer- That in every historical epoch, the ence to Max Weber), "attempted a prevailing mode of economic produc- brilliant refutation" of Marx. But tion and exchange, and the social or- they failed either to be "brilliant" ganization necessarily following from or to "refute." How absurd, in it, form the basis on which is built up, the face of realities, are the twist- and from which alone can be explained, ings and squirmings of Sombart, the political and intellectual history of Weber, and Croce, whose "skill" that epoch; that consequently the whole was expended in denying that history of mankind (since the. dissolu- tion of primitive tribal society, hold- there were any laws of historical de- ing land in common ownership) has veloptnent!' Yet, this denial is the been a history of class struggles, con- 116 POLITICAL AFFAIRS tests between exploiting and exploited, The greatness of the Communist ruling and oppressed classes; that the Manifesto is that it is a succinct body history of these class struggles forms a of social science. But it is that because series of evolutions in which, nowa- it is the expression of the combined days, a stage has been reached where immediate and ultimate class inter- the exploited and oppressed class—the ests of the proletariat in the great proletariat—cannot attain its emanci- struggle at the heart of society. pation from the sway of the exploiting and ruling class—the bourgeoisie— The Manifesto marks an epoch in without at the same time, and once and human thought. It represents a for all, emancipating society at large qualitative change in the study of from all exploitation, oppression, class society. It made the science of so- distinctions and class struggles. (My ciety possible. Henceforth any study emphasis—H.M.) of society which ignores •historical materialism becomes of necessity, un- Engels adds that this proposition historical and unscientific. was "destined to do for history what Darwin's theory had done for biol- ogy." LENINISM—THE MARXISM One might ask why Professor OF TODAY Shotwell proceeds to cut out from Lenin and Stalin, because they un- this monolithic Marxian postulate derstood the real essence of Marxism, its very core—"the militant philoso- were able to develop and enrich phy of Socialism." In doing so, Pro- Marxism on the basis of the objective fessor Shotwell is forced to separate needs of the proletariat in the epoch the role of the proletariat from the of imperialism and the triumph of theory of the class struggle. To say Socialism. They were able thus in essence that the science of dy- to develop Marxism because they namic sociology rests on the class fought for the purity of Marxist prin- struggle and then to ignore that ciples against all revisionists and struggle is an unusual intellectual deviators. feat, to say the least. Only by resort- It was in line with this struggle ing to such feats can one evade the that Lenin and Stalin built the work- consequences of admitting the foun- ing class party of a new type, the dational character of the Marxian Bolshevik party. It was by fully mas- postulate. tering the essence and the method In the Manifesto, the movement of Marxism that Lenin and Stalin, of classes and class struggles is pro- by applying its teachings to the spe- foundly shown to "form a series of cific world conditions and the con- evolutions" which in the proletariat ditions of Russia in 1917, led the reach a culminating point, and there- masses to the successful overthrow fore ushers in a new era in the social of Czarism and the abolition of development of mankind. capitalism. It was under the banner THE COMMUNIST MANIFESTO LIVES! Ill

of Marxism-Leninism that the toilers the main task of the working class is of Russia, having established the "to establish democracy," that is, Dictatorship of the Proletariat, true, consistent democracy, Socialist achieved the highest form of democ- democracy, whose essence is the abo- racy, Socialist democracy. lition of exploitation of man by man. This party was created and reared Because Communists are dedicated | in the uncompromising struggle to this highest form of democracy against economism which advocated they are foremost in the fight for the ן the theory of spontaneity, the auto- workers' rights and economic secur- matic development of the working ity, in the fight against national and class. In the struggle against spon- racial discrimination, against the taneity Lenin emphasized the cru- crushing of free expression in politics, ' cial role of consciousness, of revolu- science, and the arts, and against 1 tionary theory, for the development militarization, fascization, and war I of the revolutionary movement. incitement. This, indeed, explains But how did the Party of the new why monopoly capital and its agents, type conceive class consciousness? the enemies of even the limited bour- Was it something with which one is geois democracy, are so anxious to born? For Marx and Engels, Lenin suppress the Communist Party. For and Stalin, class consciousness is not they know that democracy and the principles of the Party of the work- a "natural" direct outcome of the ing class are inseparable. To destroy conditions of existence of the work- democracy, as they intend to do, the er. It is, rather, a complicated pro- monopolists must try first to destroy cess ranging from what Lenin called the Communist champions of de- "embryonic" consciousness to Party mocracy. This has been the aim of consciousness, the highest form of reaction ever since the Manifesto class consciousness. This process proclaimed the battle for democracy takes place in and through struggle. as the historic task of the working To confine the notion of class con- class in its march to Socialism. sciousness to narrow trade union in- terests, to wage interests alone, is to constrict the development of the THE MANIFESTO TODAY working class and in essence to sur- render to the ideology and program The Manifesto is alive. It lives in of the bourgeoisie. the mighty Socialist state, the Soviet Class consciousness in its devel- Union. It inspires and guides the oped form among the workers, as forces of people's democracy and So- the Manifesto points out, arises with cialism everywhere. This work of the "the organization of the proletarians youthful Marx and Engels is ever into a class, and consequently into a youthful, militant, and potent. Read- political party." ing it today, one hundred years after The Manifesto makes clear that it was written, is an enriching experi- 118 POLITICAL AFFAIRS ence. The struggle of democracy and States. For Marxism, "democratic peace, headed by the Soviet Union, parties" means all movements against against reaction headed by Wall reaction and for progress. Today, as Street, is destined to end in the vie- always, the Communist Party, as the tory of the people. The struggle of Party of Socialism, supports fully the old and new, so vividly analyzed every such movement. in the Manifesto, is reaching a new In the United States the democratic high stage. The Manifesto teaches us movement embraces all groupings that there is no short road to victory, who wage battle against the twin that the path of the proletariat is parties of the Truman-Marshall doc- strewn with dangers. It teaches us trines of imperialist world enslave- not to fear, but to overcome, the ment, of criminal war preparations, difficulties which arise in the struggle. of the Taft-Hartley slave-labor law, The Manifesto, as Lenin stressed, thought control, and fascization. calls on us to make an objective All the democratic forces of the analysis "of the position of each class people can find in the Communist in modern society in connection with Manifesto principles of guidance in an analysis of the conditions of de- the fulfillment of the immediate his- velopment of each class." toric task—the formation of an anti- Defining the position of the Com- imperialist, anti-fascist, independent munists in relation to all democratic people's party, led by the working movements of the people, the Mani- class. festo declares: "Finally, they [the . This is the historic path of devel- Communists] labor everywhere for opment of the independent political the union and agreement of the role and of the class consciousness democratic parties of all countries." of the American working class. This The substance of this statement is is the road America must and will profoundly pertinent today. Here is take in its inevitable advance toward expressed the vitality of Marxism Socialism. as the guide to action in the United The Communist Manifesto lives! fairs of state in the tradition of his MR. TRUMAN'S predecessor, his performance could hardly be convincing. The fact that his "ten-year plan" GLOVE AND THE for social betterment was projected within the framework of gigantic war preparations emphasizes its hoi- MAILED FIST lowness. The Truman program is geared to give the nation guns, not By MAX GORDON butter. The President's reason for invok- WHEN HENRY WALLACE declared ing the Roosevelt program on do- 1 himself an independent candidate mestic policy was not concerned with , for President, one thing became im- election line-ups alone. For the Wal- mediately predictable with the accur- lace movement threatens not only acy of an exact science; namely, that to affect the outcome of the Novem- President Truman would at once ber Presidential contest, but to ham- adorn himself with the ersatz gar- per the aggressive policies of Ameri- lands of "liberalism." can imperialism at home and abroad. The classic processes of the two- It was necessary for the President party system in the United States to make strong verbal concessions to made it certain that the leaders of the official labor and liberal leader- one of the two major parties—the ships in the nation—both to keep Democratic Party—would make a them in line for his foreign program valiant, if ponderous, effort to con- and to aid them in keeping their tain the new third-party movement memberships and followers in line, by verbal gestures directed at its as far as this was possible. potential following. The obvious tactic was for the THE HEART OF leader of that party to pose as the TRUMAN'S PROGRAM inheritor of the ideals of his great predecessor in office, as the cham- The real content of the "State of pion of the New Deal and F.D.R.'s the Union" message, to which all else Economic Bill of Rights. was subordinated, was the foreign And so it was that President Tru- policy section, which reaffirmed the man's "State of the Union" message Truman Doctrine of military sup- to Congress paid lip-service to the port to feudal, pro-fascist elements aims of the late President in the field throughout the world in their war- of domestic welfare. Considering fare against progress and democracy; that Truman had long ago made it which emphasized the companion plain he was not conducting the af- Marshall Plan for bolstering reaction 119 120 POLITICAL AFFAIRS and "free markets" for Wall Street nation in industry until June 30, investment in Western Europe; 1949, borders on the fantastic. which called for a program of Uni- Neither does it take a blueprint to versal Military Training; and which describe the absurdity of a $37 mil- insisted that "America must main- lion request for national public hous- tain strong armed forces." ing—enough to construct only two If there was any doubt that this housing projects! was the heart of the Presidential mes- Plainly, these social welfare re- sage to Congress, Truman's proposed quests were intended to cover the budget for 1948-49 should have effec- nakedness of the President's imperial- lively dispelled it. In a total of $39,- ist "bipartisan" foreign policy and to 669,000,000, the President set aside give the Republicans a chance to $18 billion, or 46 per cent, for the exercise their budget-cutting energies armed forces and for actual economic without touching the meat of the and military warfare abroad. Truman program. He set aside a total of $463 million ׳> —or a little more than one per cent THE TAFT-HARTLEY RECORD —for all the brave new projects he had talked about in his "State of In his remarks on the Taft-Hartley the Union" message. Contrast the Law, Truman's only positive state- $400 million projected for Universal ment was his pledge that he would Military Training alone with the faithfully continue to administer it. $37 million for national public hous- He made no plea and advanced no ing, with the $15 million for health, program for repealing or even with the one million dollars to fight amending it. He confined himself job discrimination, or even with the merely to calling attention to the veto $100 million to be distributed to the message of last summer. states for various forms of public This reference to the past veto in welfare. order to cover a present acquiescence The $400 million for U.M.T. is underscored the wide interpretation nearly 40 per cent more than the last summer of his veto message as a $290 million which the President political document intended merely proposed for Federal aid to the hard- to place Truman formally on record pressed school systems of all states. against the measure. The token character of the budget American Big Business, following appropriations for these New Deal classic capitalist methods, uses both programs tore from Truman what- repression and bribery in its efforts ever shred of pretense might still to shackle labor's opposition to its have remained concerning his sin- policies. In this case, the concessions cerity in projecting them. The idea offered by Truman have been verbal, of asking for the grand sum of one but the repression has been real. The million dollars to combat discrimi- course taken by the President in rela- TRUMAN'S GLOVE AND TOE MAILED FIST 121 tion to labor's struggles, both before instances under particular circum- the Taft-Hartley Law was enacted stances would controls be applied P and during its passage and operation, Surely such a program could not must lead all but the naive to the inspire the people to act militantly conclusion that he is in thorough in support of price controls. It most sympathy with the repression. certainly could not inspire labor to His price control record is similar, such action, for Truman insisted though the demagogy has been, if upon associating price ceilings with possible, even greater. There was one wage controls at a time when labor's way, and one way alone, by which wages had fallen far behind prices. this Congress might have been forced The Truman "anti-inflation" pro- to yield in its opposition to any posals hinge upon his getting dis- checks on profiteering. Had the cretionary powers in determining President boldly projected, without what items are to be controlled, and apology, a genuine price control pro- when and to what degree. Since Ad- gram around which he could rally ministration policy centers on gear- the hard-pressed people, he might ing the nation for military adven- have forced even the 80th Congress tures abroad, such powers are dan- to make substantial concessions to- gerous. They can, and doubtless ward limiting inflation. would, be used primarily for the pur- He did not do this because he did pose of speeding war preparations not want to. Was he not, after all, and saddling the people with the the man who in 1945, immediately costs. following V-J Day, relaxed price con- trols and scrapped priorities on scarce Any genuine price control program materials vital to home building? must spell out the terms and the Was he not the man who in 1946, scope of controls and not leave it to the President's discretion. It must yielding to the pressures of Big also provide for administration by Business and its Republican spokes- committees in which labor and con- men, destroyed O.P.A. root and sumer bodies are adequately repre- branch? Was he not the man who sented. in 1947 labelled price control the "method of the police state"? Did he not, in the special session TAX-CUT POLITICS last winter and in his most recent messages, ask for secondary powers The one progressive - sounding to "control" inflation and promise to point in Truman's Congressional apply whatever powers were granted program not borrowed in toto from him only after all other methods, the Roosevelt domestic program was including pleas for "voluntary" ac- the proposal for a $40 income tax re- tion, had been exhausted? And did bate to each taxpayer for himself and he not promise, too, that only in rare his dependents, the revenue so lost 122 POLITICAL AFFAIRS

to be made up by higher tax rates amounts to the same thing as raising on corporations. the exemption to $700 per person It has been repeatedly stated that from the present $500. But prewar Truman did not really make his pro- exemptions, those demanded by labor posal seriously, that he knew both and its progressive friends, were Republicans and Democrats would $1,000 for a single person and $2,500 turn thumbs down on it at once. for a married couple. To meet prewar This is doubtless true. Yet he ap- exemptions, tax cuts would have to peared to have a motive beyond dema- range from $75 to $150 per person. gogy in projecting it. For one thing, Nor did the Presidents proposal he was fearful that the G.O.P. tax- to increase corporate taxes about 12 cut program, by slicing total income per cent meet the situation. Corpor- more than five billions, would place ate taxes would still run far below in jeopardy the program of foreign the yield of 1944 and 1945, years of intervention. His own proposal was, the excess profits tax, though profits first, an effort to stalemate the tax today before taxes are far greater. situation so as to prevent a cut of any Repeal of the excess profits tax was, kind if he could. Failing that, he incidentally, one of the earlier would be in a better position to veto achievements of the Truman Ad- the G.O.P. tax-cut plan by having ministration. offered something positive himself, something that would permit him to THE CIVIL RIGHTS BLUFF emerge from the scuffle as champion of the common man. Finally, the President had some The fact that Truman tied his tax brave words to say about human and plan to the problem of curbing infla- democratic rights. The deeprgrained tion indicated, too, that he intends to oppression of the Negro people, the use promised tax cuts as an argu- continued growth of anti-Semitism, ment against wage increases. Both and the developing witch-hunts have the President and the professional placed the Government at a disad- apologists for Big Business have been vantage in its world quest for power, suggesting that if some concessions a quest that has required its use of are made to the workers in the form "democratic" bluff. Its bluff is being of a tax cut, the pressure for higher called and the President is hard put pay can be relieved. This, they in- to it to maintain it. sist, will slow up inflation on the This is the fact behind the brave false theory that higher wages are words, this and the desire to retain directly responsible for higher prices. in the Truman fold the Negroes, the Regardless of motive, the tax pro- Jews, the other oppressed, and all posals made by the President were who are vitally concerned with safe- of themselves proper in principle but guarding civil liberties. But the real- inadequate in amount. A $40 tax cut ity belies the words. The President TRUMAN'S GLOVE AND THE MAILED FIST 123 continues to play it close to the South- velopment of wide coalitions in sup- ern tories; he continues his "loyal- port of a peace program based upon ty" witch-hunt; he sanctions the no- a policy of friendly cooperation and torious purge list of organizations agreement with the U.S.S.R. and on deemed "subversive" by the Attorney faithful execution of the accords General; he gives his tacit assent to of Yalta and Potsdam relative to the fascist-like operations of the Un- consolidating a democratic peace. American Committee and to the de- These are fundamental conditions portation drive of his Immigration for the reconstruction of the world's Service. devastated areas through the United Considering the direction in which Nations. Coalitions can also be de- the Administration is traveling, it veloped on the widest scale to sup- can scarcely be otherwise. A na- port a civil rights program which ־ ;tion's economy and politics cannot would repeal the Taft-Hartley Law be geared to a reactionary war pol- pass anti-poll tax, anti-lynch, and icy without the suppression of civil F.E.P.C. legislation; eliminate the liberties and the promotion of chau- Un-American Committee, fascist vinism. thought control, and the rest of the If there is little correspondence be- witch-hunting set-up; which would tween his words and deeds, there is support an economic program to re- a close correspondence between his store genuine price controls and aims and those of the G.O.P. lead- higher real wages; gear the Govern- ership in Congress on the issues ment to a full-scale home-building which the President genuinely in- program and real rent control; de- tends Congress to place on its order velop public health and education; of business. The bitter battles be- and fight for the other progressive tween them—partly sham, partly on measures of the Economic Bill of tactics and detail, and mostly for Rights laid down by F.D.R. partisan advantage—should not be These issues are already embodied allowed to obscure this correspond- in the program of the broad forces ence. now gathering around the Wallace- It is not enough, of course, simply for-President movement. The popu- to argue that President Truman's lar, anti-imperialist, third-party move- progressive-sounding phrases mask a ment headed by Wallace has al- reactionary program. The cover of ready rendered the American people demagogy will be ripped from his a tremendous service by opposing policies and their true content re- the disastrous and defeatist "lesser vealed to the people only to the ex- evil" line. The Truman demagogy tent that a popular struggle is waged is clearly calculated to feed the for a positive program of peace, "lesser evil" surrender to the mailed democracy, and social welfare. fist of fascization, militarization, and There is ample ground for the de- the Truman-Marshall plans for 584 POLITICAL AFFAIRS world domination. The "lesser evil" tent that immediate struggles are de- fraud can be defeated, and the people veloped around the program oudined won to the third party to the ex- above.

THE CHARGES AGAINST COMMUNISM . . .

"The charges against Communism made frqm a religious, a philo- sophical, and, generally, from an ideological standpoint, are not de- serving of serious examination. "Does it require deep intuition to comprehend that man's ideas, views, and conceptions, in one word, man's consciousness, changes with every change in the conditions of his material existence, in his social relations, and in his social life? "What else does the history of ideas prove, than that intellectual production changes its character in proportion as material production is changed? The ruling ideas of each age have ever been the ideas of its ruling class." , Karl Marx and Frederick Engels, Manifesto of the Communist Party. THE ACTIVITIES OF THE CENTRAL COMMITTEE OF THE COMMUNIST PARTY OF THE SOVIET UNION (BOLSHEVIKS)*

By GEORGI M. MALENKOV

[Reprinted from For a Lasting I. DIRECTING THE NATIONAL Peace, for a People's Democracy, or- ECONOMY IN THE POST-WAR gan of the Information Bureau of the PERIOD Communist Parties in Belgrade, No. 2, December 1, 1947.] The victorious conclusion o£ the Second World War, which we in the COMRADES, U.S.S.R. call the Great Patriotic The Central Committee of the War, and the passage from war to Communist Party of the Soviet peace, confronted the C.P.S.U. (B.) Union has instructed me to submit with new and complex problems of to the present Conference of . Com- liquidating the aftermath of the war munist Parties an informative report and of securing the further develop on the activities of the C.C., C.P.S.U. ment of Socialist construction. The (B.). The work of the C.C., C.P.S.U. Party had to make a serious turn— (B.) is so many-sided that in order from solving wartime tasks to the to fulfill my assignment successfully solution of economic and cultural and not overtax your attention, I tasks. shall have to limit the scope of my The tasks of the Party and of the report. I propose, therefore, to report Soviet state in this new period were on the activities of the C.C., C.P.S.U. defined with the utmost clarity by (B.) in the postwar period and deal, Comrade Stalin. firstly, with the problems of direct- "We must," stated Comrade Stalin, ing the national economy of the "in the shortest possible space of time U.S.S.R.; secondly, with questions of heal the wounds inflicted on our building the Party; and thirdly, with country by the enemy and attain the questions of foreign policy. prewar level of economic develop- * Informative report to the Conference of rep- ment, so that we can considerably resentatives of a number of Communist Parties held in Poland at the dose of September, 1947. surpass it in the near future, raise the 125 126 POLITICAL AFFAIRS material well-being of the people been retarded in its development for and further strengthen the military dozens of years, and would have and economic might of the Soviet become a second-rate power. But state." that did not happen to the Soviet Our Party took into account the Union.- The Soviet state and social fact that the successful accomplish- system stood the severe test of the ment of these tasks involved over- war and proved its superiority over coming serious difficulties, inasmuch the capitalist system. as the recent war was for the Soviet The great historic victories won by Union the most cruel and difficult the Soviet Union during the war of all wars ever experienced by were possible only due to the prelim- Russia. inary preparations for defense made The war entailed many sacrifices by our country under Comrade for the Soviet people. As a result of Stalin's leadership in the prewar the , German invasion the Soviet years. It would be a mistake to imag- million people, ine that a victory of such historic ך Union lost some who were killed in action, perished importance could have been achieved during the occupation or were forci- without preliminary preparations for bly driven off to Germany. active defense by the entire country, Tremendous damage was done by or that such preparations could have the German fascist invaders to the been effected in a short space of time, Soviet national economy. The fascist say in 3 or 4 years. vandals destroyed and razed to the To withstand the blows of such an ground tens of thousands of indus- enemy as Hitler-Germany, to repel trial plants, state farms, machine and this enemy, and then inflict utter tractor stations and collective farms. defeat on him, required, apart from They destroyed the entire network the unexampled bravery of our of railways in the western part of troops, the possession of armaments our country, devastated and ruined that were quite up-to-date and, more- whole districts, destroyed the fruits over, in sufficient quantities; and of of many years of strenuous work by a well-organized system of supplies the Soviet people, and left millions available in sufficient quantities. To of Soviet people homeless. The dam- make that possible one had to possess age done by the German fascists metals, fuel, a developed engineering _ by the outright destruction of prop- industry, grain and cotton. But in erty alone, amounts to 679 billion order to have all this, our country rubles. had to be transformed from a back- Any other country, even the big- ward agrarian country into an up-to- gest of the capitalist states of today, date industrial state. This historic would, as a result of such losses, have transformation was effected in the ACTIVITIES OF THE C.C., C.P.S.U. (B.) 127 course of the three Five-Year Plan dently marched forward in the teeth periods, beginning with 1928. of all odds. The Party did not adapt Even prior to its participation in itself to backward elements; it was the Second World War, the U.S.S.R. not afraid to go against the stream, possessed the minimum of material always maintaining its position of resources necessary to meet the basic a leading force. Had the C.P.S.U. requirements of the battle fronts. (B.) not possessed this steadfastness _ These material resources were ere- and stamina, it would have been ated as a result of the fulfilment of unable to maintain its policy of in- three Five-Year Plans of national dustrializing the country and collecti- economic development by our coun- vizing agriculture and, consequendy, try and our Party under the leader- would have been unable to prepare ship of Comrade Stalin. Thereby the country for active defense, or to was established the economic base of ensure the economic conditions nec- the U.S.S.R. that could be used for essary to achieve victory in the war the conduct of a victorious war. against fascism. The Party routed As is generally known, the Party's all anti-party and anti-Soviet forces, policy, aimed as it was at the indus- and thus nipped in the bud all possi- trialization of the country and the bilities of a "fifth column" appearing collectivization of agriculture—a pol- in the U.S.S.R. The war demon- icy without which it would have strated the unprecedented unity of been impossible to prepare the coun- the Soviet people, and their solid try for active defense—met with the support of the Bolshevik Party. This furious and active opposition of the constituted one of the major cpndi- enemies of Socialism, not only out- tions of the Soviet Union's victory in side, but also inside, the Soviet the war. Union. This policy of the Party had to be carried out in bitter struggle against various counter-revolutionary However the powerful economic Trotzkyite and Bukharin - Rykov prerequisites existing in the Soviet groupings, against these contempt- Union at the outbreak of the war ible traitors and capitulators, who, could not of themselves ensure vie- being in the pay of foreign intelli- tory. They had to be efficiently uti- gence services, tried to undermine lized, rapidly mobilized to serve the the strength of the Soviet Union needs of the war and reorganized to from within and create a situation meet wartime requirements. In the favorable to our enemies in the event difficult conditions of the war, in the of war. face of the enemy's blows during the The Party gave way neither to the first stage of the war, the Party man- threats nor to the hysterical howls of aged in an exceptionally short space any of these elements, but confi- of time to place the entire economic 128 POLITICAL AFFAIRS life of the country on a war footing, better than in any other multi- in accordance with the needs of the national state."* front, and to subordinate all eco- # # # nomic activities to the slogan "Every- Despite the sacrifices it made, the thing for the front." Soviet Union emerged from the war The hopes placed by our enemies with added strength and might. The on an internal instability of the So- superiority of the Socialist system of viet political system proved to be society and state, the establishment groundless. The Hitlerites based of a developed Socialist industry and their calculations on the disintegra- the introduction of the collective tion, during the war, of the Soviet farm system in the countryside multinational state, on the develop- brought us victory during the war. ment of strife and discord among the Today, also, when the Party has peoples inhabiting our country. They undertaken the work of rehabilitat- utterly miscalculated. The war dem- ing and developing the national onstrated the indestructibility of the economy, this superiority is mani- Union of Soviet Socialist Republics fested with the utmost clarity. and the firmness and enduring char- Whereas the conversion from war to acter of the friendship binding its peace is being accompanied in the peoples. All the peoples of our coun- capitalist countries by the further try, headed by the great Russian aggravation of the general crisis of people, rallied round the Bolshevik the capitalist system and is leading Party and the Soviet government, to a sharp contraction of markets, to rose in defense of their national in- a slump in production, to the closing dependence and liberty, in defense down of industrial plants, to grow- of the achievements of Socialism in ing unemployment, to the impossi- our country. The amity developed bility of finding jobs for ex-service- between the peoples of our country men, and so forth—the Soviet as a result of the triumph of the new Union, thanks to its Socialist system Socialist system and our Party's cor- of national economy, has been spared rect national policy were for the such postwar upheavals. In the So- Soviet Union a source of strength viet Union there are neither crises and stability. ". . . the Soviet state nor unemployment, but a steady de- system," Comrade Stalin said, "has velopment of production and im- proved itself a model for a multi- provement in the material well-being national state ... the Soviet state of the people. system is a system of state organi- The tasks involved in the postwar zation in which the national ques- * J. V. Stalin, "The Results of the War and tion and the problems of collabora- the New Postwar Tasks," February 9. 1946 (The Soviet Union and World Peace, New Century Pub- tion among nations has been settled lishers. New York, 1946, pp. 9-10) .—Ed. ACTIVITIES OF THE C.C., C.P.S.U. (B.) 129 rehabilitation and development of to raising the standard of living of the national economy are set forth the working people by steadily low- in the new Five-Year Plan for 1946- ering prices, and to consolidating 1950. The basic economic and politi- money circulation and Soviet cur- cal task of the Five-Year Plan is to rency. rehabilitate the war-ravaged districts, The Five-Year Plan proceeds from reach the prewar level in industry the premise that it is necessary to and agriculture, and make a substan- ensure further technical progress in tial advance above this level. all branches of the economic life of The Five-Year Plan stipulates that the U.S.S.R., as the condition for a the prewar level of industrial output mighty advance in production and be achieved by 1948. For the subse- increase in the productivity of labor. quent years the plan visualizes a fifty With this aim in view we have set per cent increase in industrial output ourselves the task, not only of catch- over and above the prewar level, and ing up with scientific achievements priority in rehabilitating the heavy abroad, but of surpassing them. industries and railways, without The Five-Year Plan outlines im- which the rapid and successful resto- portant tasks concerning the further ration and further development of enhancement of the material and the country's economic life is impos- cultural standards of the working sible. The rehabilitation of heavy people of the U.S.S.R. It provides for industry will serve to consolidate the the rehabilitation and extension of country's technological and eco- the existing network of schools and nomic independence. universities, the improvement of the The Five-Year Plan sets out to public health service, and the devel- achieve the development of agricul- opment of housing construction on ture and of the branches of industry a large scale, etc. As one of its chief engaged in producing articles of gen- aims, the Five-Year Plan sets out to eral consumption, in order to ensure secure the fullest development of the material well-being of the peo- Soviet culture and art. pies of the Soviet Union and create The Five-Year Plan is aimed at within the country an abundance of the further enhancement of the So- basic items of general consumption. viet Union's defense capacity and at We have to surpass the prewar equipping its armed forces with the level of national income and national most up-to-date material. In order to consumption, and eliminate in the safeguard our country against even- near future the rationing system, re- tualities of every kind, defend the placing it by a highly developed sys- peace and avert fresh aggression tem of Soviet trade. We have to against the U.S.S.R. and its allies, we devote special attention to extending have to strengthen the armed forces the production of consumer goods, of the Soviet Union, strengthen the 130 POLITICAL AFFAIRS military and economic might of the tions that the objectives for 1947 will Soviet state. be successfully realized ahead of The fulfilment of the new Five- schedule. This will signify a speed- Year Plan, while ensuring the re- ing up of the fulfilment of the Five- habilitation and development of our Year Plan as a whole. national economy, at the same time As a result of this work, produc- signifies the resumption of the path tion of coal, copper, aluminum, of development of Soviet society pur- nickel, electric power, tractors, ma- sued by us before the war and tem- chine tools and certain other types porarily interrupted by the war. This of machinery had, in July, 1947, path is the path of consummating approached the prewar figure. the construction of a classless Social- Thus, 18 months of struggle for ist society and of the gradual transi- the fulfilment of the Five-Year Plan tion from Socialism to Communism. have demonstrated the possibility of In this respect the new Five-Year developing certain branches of in- Plan marks an important step dustry at a more rapid pace than was forward. originally anticipated. In view of The results of the year 1946 and of this, certain original target figures 1947 so far, show that the fulfilment of the Five-Year Plan for various of the new Five-Year Plan is pro- branches of industry are being recon- ceeding successfully. In the course sidered and raised. of the first year of the new Five-Year Mention should be made of the Plan period our industry reverted to importance of industrial develop- the production of civilian goods. The ment in the Eastern parts of the rehabilitation of the districts that country. The industrial base in the suffered the German occupation is East, built up during the period of proceeding apace. the Stalin Five-Year Plans, was The fulfilment of the Five-Year greatly extended and strengthened Plan is being accomplished amidst a during the war years in connection mighty upsurge of labor enthusiasm. with the transfer there of over 1,300 Throughout the entire country, in industrial establishments from the industry and the transport system, Western regions. This constituted Socialist competition has developed one of the decisive factors in the for the fulfilment of the 1947 plan victorious prosecution of the war. In ahead of schedule, by the thirtieth the war years the Eastern regions anniversary of the October Socialist provided tens of thousands of tanks, Revolution. Plan fulfilment in such pieces of artillery, aircraft, huge sup- key industrial centers as Moscow, plies of munitions, etc., for the battle Leningrad, the Donets Basin, the fronts. In the postwar period, indus- Urals, Gorky, the Kuznetsk Basin trial establishments located in the and elsewhere, justifies our expecta- Urals, Siberia, the Transcaucasus ACTIVITIES OF THE C.C., C.P.S.U. (B.) 591 and Central Asia have been rapidly cerns the strength of the Soviet state converted for peacetime production, is the fact of its possession of mate- Under the new Five-Year Plan the rial and food reserves. Without re- Eastern regions assume an ever more serves, planned economic develop- important role in the economic life ment would be impossible. Material of the U.S.S.R. reserves are a powerful means of # # # overcoming all sorts of difficulties and serve as a guarantee against the It goes without saying that the eventualities and unexpected dev'el- postwar rehabilitation of the coun- opments of all kinds which may con- try's economic life cannot proceed frOnt us in the course of our eco- smoothly or spontaneously and with- nomic progress. That is why the out difficulties. No small number of Party attaches special importance to difficulties has to be overcome in the accumulation of state reserves, fulfilling the Five-Year Plan. In dealing with the difficulties The transfer of the national econ- attending our development, mention omy from a war to peace footing in should be made first and foremost of itself entails many difficulties of an the difficulties encountered in pro- economic, organizational and tech- curing manpower for industry, nical nature. Nor should it be for- building and transport. These diffi- gotten that reconversion to peace- culties arose even before the war and time production had to be effected were aggravated by the war. amidst such additional difficulties as The absence of unemployment in those created by the drought of 1946 the U.S.S.R. has created totally new —one of the most severe droughts in conditions for the development of the history of our country—which industry and transport from the; led to crop failures in the basic grain- point of view of manpower supply, producing areas. That we were able Under capitalism employers draw in such conditions successfully to the manpower they require from the overcome these additional difficul- reserve army of unemployed, which ties, to cope with the task of supply- swells during periods of crisis, con- ing the population with food, and tracts somewhat in boom periods, moreover to fulfil the program set but never disappears so long as the for the first year of the Five-Year bourgeois system exists. This army Plan, is to be ascribed to the advan- is a constant concomitant of capi- tages afforded by the Socialist eco- talism. The reserve army of unem- nomic system and to the correct ployed is swelled by impoverished policy of the Party in the supervision peasants, driven into industry by the of the national economy. fear of hunger, by impoverished Here I wish to point out how urban petty-bourgeois elements— enormously important as far as con- handicraftsmen, petty traders—com- 132 POLITICAL AFFAIRS pelled in the end to sell their labor less the necessary reserves of man- power to the capitalists. power are built up, there can be no v Socialism has eliminated these development of Socialist industry. sources of the replenishment of man- Hence, the building up of state man- power reserves, which involve untold power reserves, the training of fresh hardships for the working people. contingents of workers in vocational We no longer witness the flight of training establishments and factory the peasant to the towns. We have schools, as well as their distribution no impoverished petty-bourgeoisie in planned fashion in accordance in our towns. There is no longer any with the requirements of the various spontaneous influx of manpower. branches of the national economy— On the other hand, extended So- these are questions of special concern cialist reproduction is unthinkable for the Party. The Five-Year Plan without the steady numerical growth makes provision for the training of of the working class. Our industry four and a half million workers and transport require constantly in- under this system. creasing contingents of workers. In But we are also confronted with the Five-Year Plan period the num- difficulties of another nature. In con- ber of workers and office employees nection with the international situa- in the U.S.S.R. should increase by tion as it has taken shape after the more than six million. The enroll- war, we cannot count on the import of new workers into industry, of any substantial quantity of the ״ment transport and building is therefore equipment we need and must there- one of the decisive conditions for the fore to a still greater degree depend fulfilment of our plan to rehabilitate on our own resources. This entails and develop the national economy. additional efforts in organizing the This task, no easy one even under home manufacture of new types of normal conditions, becomes all the industrial equipment which under more complicated in the postwar pe- more normal international condi- riod when our losses in manpower tions we could import from abroad. during the war inevitably begin to All these difficulties cannot but tell, all the more so since these losses tend to retard the pace of our devel- were at the expense of the most ac- opment, the completion of new in- tive sections of the Soviet working dustrial plans and the carrying out population. of our plans of capital construction. That is why the Party and the Serious difficulties have also to be Soviet state are devoting special at- overcome in agriculture. The war tendon to the planned distribution temporarily held up the development of manpower and to finding new of our Socialist agriculture, weak- sources from which the supply of ened its material and technical base. manpower can be replenished. Un-. Our industry, diverted to the satis- ACTIVITIES OF THE C.C., C.P.S.U. (B.) 133 faction of war needs, was compelled agricultural machines, as well as to discontinue the production of of mineral fertilizers necessary for tractors and greatly to reduce the agriculture. output of farming machinery, spare The Central Committee's decision parts and fuel for agriculture. The outlines a detailed program for the war years saw a decline in the areas development of agriculture in the under crops and a deterioration in postwar period. It enumerates ways the quality of land cultivation; crop and means of increasing the output yields fell, the cattle population de- of grain and technical crops (cotton, creased and the yield of livestock sugar-beet, hemp, etc.), of improving likewise fell. To these difficulties en- cattle-raising, of improving the qual- gendered by the war there were ity of land cultivation, of improving added the difficulties arising out of the work of machine and tractor sta- the drought which gripped certain tions and state farms. The decision areas of the country in 1946. also formulates the tasks confronting Faced with this situation, the Party Socialist industry in providing tech- adopted a number of special meas- nical equipment for agriculture. All ures designed to facilitate the devel- these measures are designed to opment of agriculture and to con- strengthen rapidly and develop agri- solidate the collective farm system. culture in our country and consoli- In February, 1947, the Plenary Ses- date the collective farm system. sion of the Central Committee of the Agriculture must be developed to a C.P.S.U. (B.) adopted a detailed res- degree that will enable us in the olution on measures for the develop- shortest possible time to create an ment of agriculture in the postwar abundance of food for the population period. The Party's main concern and raw materials for industry, and with regard to agriculture at the to accumulate the necessary state re- present time is to achieve the organi- serves of food and raw materials. zational and economic strengthening The Soviet peasantry responded to of the collective farms and to extend these measures of the Party and the the material and technical resources government by a mighty wave of available for agriculture. Violation labor enthusiasm which had a favor- of the Collective Farm Rules, which able effect on the fulfilment of the was detrimental to the collective agricultural program for 1947. So- farms, was resolutely cut short by the cialist competition for high crop Party and steps were taken to im- yields in 1947 developed throughout prove the organization and payment the country, embracing the widest of labor on the collective farms. At sections of collective farmers. The the same time, the Party is taking government established special steps to increase the output of trac- awards for foremost workers in agri- tors, combine harvesters and other culture and cattle farming, confer- 594 POLITICAL AFFAIRS ring on them the title of Hero of production and consumption. The Labor and awarding them drought in certain areas and the״ Socialist various decorations. decrease in state food stocks made it This year's spring sowing was car- necessary to postpone the abolition ried out successfully and some eight of rationing from 1946 to 1947. The million hectares* were added to the Soviet government has already intro- crop area as compared with last duced a number of measures to elim- year's figure. inate the existence of different prices, with a view to preparing for the Harvesting this year proceeded abolition of rationing. with similar success, in a more or- ganized fashion and at a more rapid Our work in fulfilling the Five- pace. The same can be said of the Year Plan constitutes the initial stage grain deliveries now in progress. in the carrying out of the tasks which Comrade Stalin placed before Preliminary figures indicate that the Soviet people. These tasks are to this year our agriculture has made secure a new and mighty develop- an important step forward in solving ment of the nadonal economy which the grain problem, in building up would enable us to raise the level of state reserves of food and raw mate- industry approximately threefold as rial. A new step has been taken in compared with the prewar standard. strengthening the collective farms. In the next three Five-Year Plan This creates the necessary conditions periods we must make it possible for for the further improvement in the our industry to produce annually up supply of food for the population of to 50 million tons of pig iron, up to industrial areas. 60 million tons of steel, up to 500 The successes scored by agriculture million tons of coal, and up to 60 create the conditions for abolishing million tons of oil. the rationing system throughout the Soviet Union this year. Rationing II. PROBLEMS OF BUILDING was indispensable during the war, THE PARTY fought on so large a scale, when we had to cut down consumption in the The chief and most characteristic rear in order to ensure a regular feature in the life of our Party, the supply of food for the army at the foundation of all its successes, is its front. Now that the war is over and indisputable authority among the the army demobilized, the need for people of our country and the un- the rationing system has disappeared limited support which the Party's and it must be eliminated. The So- policy enjoys among the Soviet peo- viet state can return to normal trade pie. The Party's correct policy made and to an all-round development of for the firm moral and political unity

* One hectare equals 2.471 acres.—Ed. of the Soviet people. ACTIVITIES OF THE C.C., C.P.S.U. (B.) 135 This enabled our Party to organize and the quality of the work of the the defeat of the enemy in the Pa- Party organizations. triotic War and to rally the entire In the light of these new demands nation to the successful fulfilment of and in connection with the conclu- the work of eliminating the terrible sion of the war and the transition to aftermath of the war. peacetime conditions, it was necessary The moral and political unity of seriously to reshape the work of the the Soviet people found profound Party organizations. This proved all and clear-cut expression in the vie- the more necessary since certain tory of the bloc of Communists and shortcomings in the work of Party non-Party people in the elections to organizations came to the surface, the Supreme Soviet of the U.S.S.R. which had remained unnoticed dur- held last year and in this year's elec- ing the war. First and foremost, these tions to the Supreme Soviets of the shortcomings concern organizational Union and Autonomous Republics. and ideological activities. The elections, held amidst tremen- The successes of our Party and the dous political enthusiasm, once more test which Party and Soviet cadres demonstrated the unbounded confi- withstood during the war do not in dence and support enjoyed by our the least justify any attempt to rest Party among the people. * and to be content with what has been The war demanded of our people achieved to date. On the contrary, the enormous sacrifices and severe hard- new tasks of economic and cultural ships. It is but natural that during the development confronting our coun- war the vital material and cultural try after the war, as well as the en- requirements of our people could be tire international situation, insistently met only to a limited degree. The demand that the C.P.S.U. (B.) con- transfer from war to peace makes it stantly raise, the level of all Party incumbent upon us, therefore, to in- and ideological and educational ac- troduce measures aimed at abolishing tivities. these limitations and at satisfying all One of the prime tasks in xthis con- the material and cultural require- nection is improving the work of our ments of the people. At the same Party organizations. During the war time, during and since the end of Party organizations performed a tre- the war, there has been a steady rise mendous job in organizing work in the political and cultural level of behind the lines and in the transfer the masses. The Soviet people want of industry to war purposes. Under to be able to satisfy all their require- wartime conditions Party organiza- ments, both material and cultural. tions were often compelled to take All of this makes new and more upon themselves the work of $co- serious demands on the Party, as re- nomic administration. This was cor- gards the level of Party leadership rect under the conditions then exist- 136 POLITICAL AFFAIRS ing. However, we could not but no- the necessary knowledge and organi- tice that this gave rise also to certain zational ability, were clearly brought negative phenomena in the work of out in this situation. Patty organizations, led to a weak- At present, administrative bodies ening of inner Party activities, and are bringing to the fore economic and at the same time tended to have organizational as well as cultural and Party organizations perform the educational activities; they are striv- work of state and economic bodies. ing to achieve improved observance Thus, one of the fundamental prin- of Soviet laws, are combating the ciples of Bolshevik leadership was remnants of the proprietory outlook, violated. and are working for the further con- At present the Party has formu- solidation of Socialist property and lated as one of its major tasks that of for higher discipline in all spheres of strengthening local Party bodies and activity. of improving the work of Party or- Under these conditions the Party ganizations. To raise the level of in- has adopted measures for the further ner-Party work as well as the level of strengthening of the organs of State Bolshevik leadership in state and power, for increasing their organiz- economic activities—this is one of ing role in the solution of economic the major tasks of inner-Party work and cultural tasks, and for achieving in the present stage. still closer contact between Soviet The fulfilment of these tasks is in- administrative bodies and the masses. timately associated with the develop- In the near future elections will ment of Bolshevik criticism and self- take place to local Soviets of Work- criticism which constitute a basic ing People's Deputies. These elec- requisite for the development of our tions should serve considerably to Party. improve the work of local Soviet The Party regards as a main task bodies. the further strengthening of the So- * # # viet state, perfection of the admin- The new tasks in Party and state istrative apparatus and improve- activities that have arisen after the ment of its work. war have placed higher requirements During the war the state apparatus on Party cadres and have very sharp- contributed in no small share to, the ly advanced the necessity of enhanc- proper fulfilment of the directives ing the ideological level and general issued by the Party and Soviet gov- efficiency of Party and Soviet cadres. ernment. The results of the Party's The training and perfection of Party work in building up a flexible and and Soviet personnel is one of the efficient state apparatus, in training vital problems on the solution of cadres of state officials devoted to which the Party is now working. the cause of the Party and possessing This training is aimed at helping 597 ACTIVITIES OF THE C.C., C.P.S.U. (B.) millions of Party and administrative nine-month courses have been or- workers to master Marxist-Leninist ganized. They have a total student science, to equip them with a knowl- body of some 30,000 Party, Soviet, edge of the laws of social develop- Young Communist League workers ment, of the country's economy and and newspaper editors. its economic policy, and also to give The Central Committee of the . them an understanding of the prob- C.P.S.U, (B.) has established an lems of international politics and So- Academy of Social Sciences for the viet foreign policy. purpose of training cadres possessing With the aim in view of providing thorough knowledge of Marxist the- means for a serious improvement in ory, for central Party institutions, the political and theoretical develop- for the Central Committees of the ment of Party and Soviet workers, Communist Parties of the Union Re- the Central Committee of the publics and for regional committees. C.P.S.U. (B.) has decided that in the The Academy also trains qualified coming three or four years the basic university instructors and persons for Party and Soviet cadres in the various scientific research institutions and sci- republics, territories, regions, cities entific journals. The Academy's cur- and districts shall be provided the riculum provides for training spe- opportunity of attending Party cialists in the following subjects: po- schools and study courses. In this litical economy, economics and poli- connection, much has been done to tics of foreign countries, the theory reorganize the network of Party of state and law, international law, schools and courses. We have es- history of the U.S.S.R., general his- tablished a higher Party school with tory, international relations, history a three-year term of study for the of the C.P.S.U. (B.), dialectical and purpose of training Party and Soviet historical materialism, history of workers for republican and regional Russian and West European philoso- institutions. At present some one phy, logic and psychology, literature thousand students attend this school. and art. The term of study is three In addition, study courses of nine years. At present there are some months' duration have been organ- 300 students in the Academy. ized at the higher Party school for Our Party's membership substan- the purpose of providing additional tially increased during and after the training for young secretaries of re- war. gional Party committees, chairmen Despite very heavy losses of Party of regional Soviets, editors of regional members at the fronts during the Pa- newspapers, etc. These courses are triotic War, the Party's membership attended by over 500 students. Has increased rather than decreased. In the various republics and re- Before the war the Party totalled gions 177 two-year Party schools and 3,800,000 members and candidates; at 598 POLITICAL AFFAIRS present its membership amounts to J. V. Stalin, which is now being de- 6,300,000. Approximately half of the veloped on a wide scale. Party members joined the C.P.S.U. In 1946 we resumed the publication (B.) during or after the war. of the Collected Worlds of V. I. Len- The history of the Party affords no in, interrupted during the war, and parallel for such a rapid growth. The began the publication of the works overwhelming majority of new mem- of J. V. Stalin. Each of these edi- bers joined our ranks at a time when tions is being printed in 500,000 our country was subjected to mortal copies. danger, in other words the most per- In addition, over 90 million copies severing elements of the people came of Marxist-Leninist classical works to our ranks. have been published since the end of The great numerical growth of the the war. The Short Biography of f. Party and its changed composition V. Stalin has been published in an haye advanced very sharply the ques- edition of one million copies. An tion of improving the work of politi- edition of the History of the C.PS.U. cal education of Party members. A (B.), Short Course, published since considerable section of Party mem- the end of the war, reaches 10 million bers, particularly those who joined copies, thus bringing the total issue the Party in recent years, have not of this work since it was first pub- yet been able to receive the necessary lished, to ove• r 30 • millio* n copies. political training. There appeared a certain disproportion between the The task of building Communism numerical growth of the Party and in our country is indissolubly linked the level of political education of up with the task of the Communist members and candidates of the education of the working people. Un- C.P.S.U. (B.). In view of this the der conditions of the gradual transi- Party is now aiming, not at accelerat- tion from Socialism to Communism, ing a further increase in membership, Communist education and the over- but rather at the political education coming of the survivals of capitalism of members and candidates, empha- in the minds of people assume deci- sizing the need to raise the political sive importance. Following the de- level of Party members; for, in the feat and abolition of the remnants of final analysis, quality is more im- the exploiting classes in our country, portant than quantity. the international bourgeoisie were Of tremendous significance in the deprived of any base whatsoever work of raising the ideological and within the Soviet Union for their ; political level of Party members and struggle aaginst the Soviet state. But in providing Communist education they strive to utilize for their own for the working people, is the study purposes the survivals of capitalism in of the biographies of V. I. Lenin and the minds of Soviet people—the ACTIVITIES OF THE C.C., C.P.S.U. (B.) 139 remnants of a proprietory psychol- sia, this attitude represents one of ogy, the survivals of bourgeois mor- the remnants of the accursed past als, the obsequious attitude of cer- of Czarist Russia. The Party had to tain individuals toward Western deal a resolute blow against several bourgeois culture, manifestations of specific manifestations of this atti- nationalism, etc. tude, since these manifestations rep- Among the tasks of ideological and resent, in the present stage, a serious political work special mention should danger to the interests of the Soviet be made of the task of cultivating state, inasmuch as the agents of in- and developing Soviet patriotism. ternational reaction, in order to weak- ". . . The strength of Soviet pa- en the Soviet state, seek to utilize triotism," Comrade Stalin teaches people infected with a feeling of ser- us, "lies in the fact that it is based vility toward bourgeois culture. not on racial or nationalistic preju- The October Revolution liberated dices, but on the people's profound the peoples of Russia from economic devotion and loyalty to their Soviet and spiritual enslavement to foreign homeland, on the fraternal partner- capital. Soviet power has for the first ship of the working people of all the time made our country a free and in- nationalities in our land. dependent state. Having carried out a cultural revolution and having "Soviet patriotism blends harmoni- created its own Soviet state, our peo- ously the national traditions of the pie tore asunder the bonds of mate- peoples and the common vital inter- rial and spiritual dependence on the ests of all the working peoples of bourgeois West. The Soviet Union the Soviet Union... ."* became the bulwark of world civili- The development of Soviet patriot- zation and progress. ism is intimately connected with the How was it that under such condi- struggle against manifestations of na- tions there were manifestations of tionalistic narrowness and chauvin- servility and obsequiousness to every- ism. The Party educates the Soviet thing foreign? The roots of such people in the spirit of respect for unpatriotic conduct, manifestations other peoples and for their right to and sentiments should be sought in independent development: the survivals of the accursed past In the recent period the Party had inherited from Czarist Russia—sur- to wage a resolute struggle against vivals which still exercise pressure various manifestations of an obse- on the minds of a certain section of quious and servile attitude toward our intellectuals. Foreign capitalists, Western boprgeois culture. Displayed who held such secure positions in in certain sections of our intelligent- Czarist Russia, in every way sup- • Joseph Stalin, Tbe Great Patriotic War of the ported and cultivated in Russia the Soviet Union, International Publishers, New York, conception that the Russian people 1945. p. 135.—Ed. 140 POLITICAL AFFAIRS were inferior in their cultural and and political activities (the C.C. de- spiritual development. The ruling cision on the magazines Zvezda and classes of Czarist Russia, divorced as Leningrad * on the repertoire of they were from the people, had no theatres, etc.), and to the discussion faith in the creative abilities of the on problems of philosophy recently Russian people and ruled out the held on the initiative of the Central possibility that Russia by her own Committee. resources could emerge from her The measures adopted by the Cen- state of backwardness. This gave tral Committee have as their aim the rise to the incorrect conception that triumph of a militant Soviet patriotic Russians must, allegedly, always be spirit among scientists and art work- the "pupils" of West, European ers. They are thus aimed at strength- "teachers." ening adherence to Party principles The survivals of these old capital- in science, literature and art and at ist conceptions are being used today raising to new and higher levels all by agents of American and British vehicles of Socialist culture—the imperialism who spare no effort in press, propaganda, science, literature their attempt to find within the and art. U.S.S.R. support for their espionage In emphasizing the great role of and their anti-Soviet propaganda. literature and art as a means of so- The agents of foreign espionage ser- cial reorganization, their role in the vices are bending every effort to Communist education of the people, seek out weak and vulnerable points particularly in the correct education among certain unstable sections of of the youth, in training a vigorous our intelligentsia who still bear the young generation imbued with faith stamp of the old lack of faith in their in the cause of Communism, a gen- own forces and are infected with the eration undaunted by obstacles and disease of servility to everything for- prepared to surmount all barriers, the eign. Such people become an easy Central Committee of the C.P.S.U. prey to foreign espionage services. (B.) stressed that Soviet writers, ar- The spearhead of the Party's ideo- tists and cultural workers can have logical work under present-day con- no other interests save the interests of ditions. is directed at undeviatingly the people and of the state. That is overcoming the remnants of bour- why all advocacy of art devoid of geois ideology, at heightening Bol- ideas, of art without politics, of "art shevik irreconcilability toward ideo- for art's sake," is alien to Soviet lit- logical, distortions of every nature. In erature, harmful to the interests of this connection, great importance the Soviet people and state»and must should be attached to the decisions of * See the report by A. A. Zhanov, "On the the Central Committee of the Errors of the Soviet Literary Journals, Zvezda and Leningrad," in Political Affairs, December, C.P.S.U. (B.) regarding ideological 1946.—Ed. ACTIVITIES OF THE C.C., C.P.S.U. (B.) 141 not find a place in our books and eliminating these defects and in order periodicals. The Central Committee to facilitate the further improvement of the C.P.S.U. (B.) pointed out that of scientific and theoretical research in our country creative work in lit- in the philosophy of Marxism-Len- erature and art must be guided by inism, publication was begun of a Soviet policy, which constitutes the new magazine, Problems of Philoso- vital basis of the Soviet country. phy. The decisions of the Central Com- At present the Central Committee mittee of the C.P.S.U. (B.) cautioned is working on the preparation of a those active in the sphere of Soviet new program of the C.P.S.U. (B.). culture against a servile attitude to- The existing program of the C.P.S.U. ward bourgeois literature and art (B.) is clearly out of date and must which are now in a state of maras- be substituted by a new one. Together mus and disintegration. with elaborating a new program, The Central Committee particu- work is being conducted to introduce larly stressed the importance of de- changes in the Party's Statutes. The veloping to the utmost objective situation both in the country and in criticism based on principles, with- the Party has in recent years changed out which it is impossible to ensure to such an extent that a number of the further development of Soviet articles of the Statutes have become literature and art. In order to foster obsolete. the development of criticism of short- III. THE FOREIGN POLICY comings in various fields of ideologi- OF THE C.P.S.U. (B.) cal activities, the Central Committee of the C.P.S.U. (B.) established a As a result of the victorious war ־new paper Culture and Life, the or- against fascism the positions of So gan of the Propaganda and Agita- cialism and democracy have been tion Department of the C.C., strengthened, and those of the impe- C.P.S.U. (B.). rialist camp weakened. As a result of the discussion on One of the major results of the Sec- philosophical problems recently held ond World War is the strengthening on the initiative of the Central Com- of the U.S.S.R. and the establishment mittee of the C.P.S.U. (B.) in con- in a number of countries of new nection with G. F. Alexandrov's democratic regimes under the leader- ׳.book The History of West European ship of the working class Philosophy, a number of defects in The defeat of Germany and Japan our work on the theoretical front signifies the weakening of the impe- were brought to the surface, particu- rialist camp and the further aggrava- larly with regard to the elaboration tion of the general crisis of the capi- of problems of the philosophy of talist system. Of the capitalist coun- Marxism-Leninism. With a view to tries, the U.S.A. emerged from the 142 POLITICAL AFFAIRS war considerably strengthened, while the path of hatching new war plans her partners, Great Britain and against the U.S.S.R. and the new France, were weakened by the war. democracies under the banner of In a situation in which America's combating the "Communist men- chief competitors, Germany and }a- ace." The clearest and most specific pan, have been removed and Great expression of this policy pursued by Britain and France weakened, the American capital is provided by the U.S.A. adopted a new, openly expan- Truman-Marshall plans. sionist policy aimed at establishing Such are the two trends in present- America^ world supremacy. day international politics. In these new postwar conditions, The wise Stalin foreign policy of relations between the war allies who the Soviet Union, both prior to the collaborated in the war against fascist war and in the course of its conduct, Germany and imperialist Japan, are enabled us correctly to utilize the changing. Two opposite trends in in- contradictions existing within the im- ternational politics have taken shape. perialist camp, and this was one of One is the policy pursued by the the important factors making for our Soviet Union and the new democra- victory in the war. cies. The foreign policy of the Soviet We proceed from the fact that the Union and of the democratic coun- co-existence of two systems—capi- tries is designed to undermine impe- talism and socialism—is inevitable rialism, secure a stable and demo- for a long period of time, and we cratic peace among the nations, and follow the line of maintaining loyal generally strengthen amicable coop- good-neighborly relations with all eration among the peace-loving na- states manifesting a desire for friend- tions. ly cooperation, on the condition that In following this line, our foreign the principle of reciprocity is ob- policy is supported by the increased served and that obligations under- international significance of the So- taken are fulfilled. The U.S.S.R., viet state and the new democracies. true to its international treaties and The other trend in international obligations, pursues this policy with politics is headed by the ruling clique the utmost consistency and firmness. of American imperialists. In its ef- But at the same time we are pre- forts to consolidate the position pared to repel any policy hostile to which American monopoly capital the Soviet Union, no matter from gained in Europe and Asia during what quarter it comes. The Soviet the war, this clique has taken the Union together with the democratic path of outright expansion, of en- countries invariably exposes all ene- thralling ,the weakened capitalist mies of peace, all foes of friendship states of Europe and the colonial and among the nations, all enemies of in- dependent countries. It has chosen ternational cooperation on a demo- ACTIVITIES OF THE C.C., C.P.S.U. (B.) 143 cratic basis. It combats all attempts outspoken. Plans of fresh aggression, by hostile imperialist circles to dis- plans for a new war against the criminate against thfe U.S.S.R. and U.S.S.R. and the new democracies, the new democracies, belittle their are being hatched. The ruling circles importance or ignore them in the so- of the U.S.A. are coming out as the lution of major questions of interna- initiators of new, openly expansionist tional policy, weave intrigues against plans. the U.S.S.R. and the new democra- It goes without saying that we cies, and set up hostile blocs and must differentiate between the de- groupings. sires of these would-be aggressors The C.P.S.U. (B.) clearly and dis- to wage war and the possibilities of tinctly sees the danger of the reorien- actually unleashing a war. Imitating tation now being effected by certain the Hitlerites, the new aggressors are former war allies of the U.S.S.R. We using blackmail and extortion as one see that the U.S.A. and Great Brit- of the principal means of influencing ain, having abandoned the obliga- the weak-nerved and unstable. tions they undertook in the course of We oppose to the plans of Ameri- the Second World War, are playing can and British imperialists the a game fraught with great danger friendly cooperation of the Soviet and are seeking new allies among Union and democratic countries, anti-democratic sections in Germany primarily the new democracies. The and Japan, in anti-democratic Tur- U.S.S.R. calmly and confidently re- key, monarchist-fascist Greece, are buffs all attempts at blackmail and condoning Franco-Spain, encourag- keeps a watchful eye on all suspicious ing the Dutch imperialists in Indo- maneuvers of its erstwhile allies be- nesia, supporting the reactionary re- longing to the imperialist camp, in gime in China, etc. At the same time, order not to allow itself to be tricked. with regard to such truly democratic With regard to countries that have countries which have made major proved true friends and loyal allies contributions to the defeat of Ger- of the Soviet state—the new democ- many, such countries as Yugoslavia racies—the U.S.S.R. is always pre- and Poland, the U.S.A. and Great pared to come to their assistance, and Britain are pursuing a terrorist policy actually does so by rendering them of slander and discrimination, of un- extensive aid and firmly defending ceremonious bullying, of interference their interests. in the internal affairs of these coun- The U.S.S.R. and the new democ- tries, of openly supporting anti-dem- racies pursue a policy of unswerving ocratic and anti-government ele- support with regard to colonial and ments within these countries, etc. dependent countries fighting for their Propaganda for a third world war national liberation from the yoke of ' is becoming ever more brazen and imperialism. 144 POLITICAL AFFAIRS Such are the foundations of the for- the world, and particularly in Eu- eign policy of the C.P.S.U. (B.). rope, grew and became stronger. # # # After the war Soviet public organ- izations received extensive possibili- Inasmuch as antagonistic classes ties actively to participate in inter- have been eliminated in the U.S.S.R. national trade-union and other demo- and the moral and political unity of cratic organizations, and to develop Soviet society has been achieved, all friendly contact with national dem- the sharpness of the class struggle, ocratic organizations in the vast ma- as far as the U.S.S.R. is concerned, jority of countries. has now been shifted to the interna- The active participation of the So- tional scene. Here we witness compe- viet trade unions and other public tition between two systems—the capi- bodies in international democratic talist and Socialist systems. Here our organizations is of assistance to our Party has to test its arms in battle fraternal Communist Parties in their against case-hardened bourgeois poli- struggle for the unity of the labor ticians. and democratic movement abroad. The C.P.S.U. (B.) devotes much Our participation counteracts the attention to problems of foreign pol- splitting activities of the Right-wing icy and shows special concern for Socialists and other enemies of unity, the selection and proper training of facilitates the growth and consolida- cadres capable of putting into effect tion of progressive organizations, the Party's line in the sphere of for- and, at the same time, strengthens eign policy. the international influence of the The Party devotes much attention U.S.S.R. to equipping its cadres with the Our cultural and political contact knowledge of the laws of interna- with democratic organizations in tional development, with an under- various countries, exercised in vari- standing of the international situa- ous forms, helps to spread the truth tion. It teaches them to defend the about the Socialist state, strengthens interests of the Socialist state on the the influence of the Soviet Union and international scene, to distinguish be- facilitates the activities of democratic tween friend and foe, to detect the organizations. insidious designs and methods of the In concluding my report, I wish to imperialists and their agents. dwell on the question of contact be- During the war and in the period tween Communist Parties. As is gen- following it, the political, ideological erally known, following the disso- and cultural contact of the U.S.S.R. lution of the Comintern in 1943, con- with the working class movement tact between fraternal Communist and genuine democratic progressive Parties was interrupted. Experience circles and organizations throughout has shown that lack of contact be- ACTIVITIES OF THE C.C., C.P.S.U. (B.) 145 tween Communist Parties deprives pean and other countries, and when both the C.P.S.U. (B.) and ether Communists are called upon to de- Communist Parties of the opportu- fine their attitude to these plans of nity to exchange necessary and mu- American imperialism. tual information and elaborate com- In our opinion it is necessary to mon views on the cardinal questions put into effect definite measures de-. of the labor and Communist move- signed to eliminate the present ab- ments. normal situation in this respect. The absence of contact between Communist Parties is a hindrance in That is why we consider it neces- coordinating the actions of Commu- sary to discuss at the present con- nists in various countries in their ference both the international situa- resistance to the plans of the impe- tion and the question of improving ^ rialists, particularly now, when contact between Communist Parties, American monopoly capital is organ- of establishing regular connections izing an offensive against Commu- between them with a view to achiev- nism and democracy, against the ing mutual understanding, exchange U.S.S.R. and the new democracies, of experience and voluntary coor- developing its expansionist plans dination of activities of the Com- with the intention, under the guise of munist Parties whenever they con- "aid," of enslaving a number of Euro- sider this necessary.

COMMUNITY OF WOMEN . . .

"But you Communists would introduce community of women, screams the whole bourgeoisie in chorus. "The bourgeois sees in his wife a mere instrument of production. He hears that the instruments of production are to be exploited in common, and, naturally, can come to no other conclusion than that the lot of being common to all will likewise fall to the women. "He has not even a suspicion that the real point aimed at is to do away with the status of women as mere instruments of production." Karl Marx and Frederick Engels, Manifesto of the Communist Party. NEW TASKS AND REALIGNMENTS IN THE STRUGGLE FOR THE JEWISH STATE IN PALESTINE*

By ALEXANDER BITTELMAN

THE UNITED NATIONS' decision to implementation. American policy establish two independent, demo- may yet become an obstacle to the cratic states in Palestine—a Jewish establishment of an independent and an Arab state—is an event of Jewish state free of all foreign impe- great historic significance. This deci- rialist domination. American policy sion has laid the basis for a demo- may seriously interfere with the abil- cratic solution in the interests of both ity of the Jewish state to become peoples and of world peace and truly democratic and to follow a democracy. It is primarily due to consistent policy of peace and col- the efforts of the Soviet Union, of laboration with the Arab state. the new democracy of Poland, and For, in addition to internal politi- to the agreement between the Soviet cal considerations, American support Union and the United States. of the United Nations partition plan For the Jewish people this decision is motivated by the inter-imperialist is a historic step toward the realiza- rivalry of the United States and tion of a dream of centuries. It sig- Great Britain for control and influ- nifies that the progressive forces of ence in the Middle East and the the world, headed by the Soviet Mediterranean. In that region, as Union, are actively promoting the elsewhere, Wall Street is seeking to fulfillment of the aspirations of large create economic, political, and mili- sections of the Jewish people for the tary bases for use to prevent the full establishment of a Jewish state in independence and development of Palestine. But we must also recog- the projected Jewish and Arab states nize that, while United States sup- and against the whole anti-imperial- port was one of the decisive factor* ist camp headed by the Soviet Union. in the decision, American policy may American imperialism will try to yet prove a serious obstacle to its make the Jewish state its puppet and

* From a report delivered to an enlarged meet- to exploit and oppress the Jewish -ing of die National Jewish Commission of the people. American and British impe ׳ C.P.U.S.A., December 12. 1947. 146 THE STRUGGLE FOR THE JEWISH STATE 147 rialism together will try to intensify Jewish people. It means orientation and prolong friction between Arabs toward reliance upon the enetoies of and Jews and obstruct the economic an independent Jewish state in Pal- unity and the political cooperation estine, upon the Truman-Marshall of the two states. plans, and support for Wall Street's To guard against this danger to preparation of a new world war. For the Palestine Yishuv and to the Jew- the sake of its own future and that ish people as a whole, we must be of the Jewish people in general, the on the alert against the dangerous Palestine Yishuv—the coming Jew- theory of reactionary circles in the ish state—must take its place in the Zionist movement that the Yishuv anti-imperialist and democratic and the Jewish people everywhere camp, the only dependable ally of should orient their policy toward the our people everywhere. The Yishuv "West" (read, imperialists). Need must realize that a durable, demo- we be reminded that the "West" cratic peace is the first condition for failed to protect our people from the realization and survival of the Hitler—in fact, cold-bloodedly aban- Jewish state. doned us to Hitler during the rise The democratic forces of Ameri- and fall of Nazi-fascism—and that can Jewry must therefore oppose it was the "East," the Soviet Union, American or Anglo-American at- which protected and saved millions tempts to dominate the Jewish state of our people from extermination? in Palestine. There is great danger Great Britain, the strongest power that Anglo-American imperialism in Western Europe, is the imperialist will seek to distort and violate the exploiter and oppressor of the U.N. decision, will strive to exclude Yishuv, and represents one of the the democratic states headed by the greatest and most dangerous obsta- Soviet Union from influencing the cles to the realization of the U.N. implementation of the decision, and, plan for a Jewish state. The other finally, will attempt to prevent the major Western power, the United two new states from emerging truly States, which is now the center of free and independent. We must fully world reaction, is reaching for impe- support the struggle for the estab- rialist control of the Middle East lishment of an independent, demo- and of the projected Jewish state as cratic Jewish state, for the develop- political and military bases for a new ment of economic unity and political world war. As for France, it Is being cooperation between the Jewish and converted by its ruling class into a Arab states, and of the cooperation vassal of Wall Street. of the Jewish state With the anti- The hard fact is that orientation imperialist, democratic camp in the toward the "West" and against the U.N. and throughout the world. "East" means alignment with the Encouraged by the maneuvers of oppressors and persecutors of the British and American imperialism, 148 POLITICAL AFFAIRS the Arab reactionaries and especially on its defense actions under the the pro-fascist Mufti group are in- supervision of the Security Council. citing Arab-Jewish conflict and pre- In the wake of the U.N. decision, paring for prolonged hostilities old divisions and alignments—for or against the Jewish people in Pales- against a Jewish state—are gradually tine. Their aim is to obstruct, and losing their significance. A new force a reconsideration of, the U.N. alignment of social and political decision. Reactionary Zionist circles forces must take place in Jewish life in Palestine, continuing their nation- everywhere on the issues arising alist-chauvinist policies toward the from' the goal of creating the Jewish Arab people, are making the work state. This new alignment will help of the Arab reactionaries and of to consolidate all democratic and imperialism all the easier. Obstacles anti-imperialist forces in the fight for are thus being multiplied to make the carrying out of the U.N. decision. the carrying out of the U.N. decision It will also influence the policies of more difficult. democratic and Left forces in the We must therefore fight for the Zionist movement, in Palestine as quickest implementation of the deci- well as in this country, and will sion. We must demand: move them toward the anti-imperial- 1) That the Security Council of ist and democratic camp. We must the United Nations take full charge work with all our might to accelerate of the Palestine situation and assume and promote its realignment. direct responsibility for implement- To summarize our main analysis ing the decision of the General and conclusions: Assembly. The historic U.N. decision on Pal- 2) That the Security Council call estine became possible in the present upon the Bfitish administration in period because of the following Palestine to cease interfering with factors: first, the existence,,the vital- and hampering the defense actions ity, and the just national demands of the Jewish community. of the Jewish community in Pales- 3) That the Security Council call tine, which is growing into nation- upon all member nations to take hood and becoming an important every necessary measure to prevent political factor in the Near East; shipment of arms and munitions secondly, the favorable international from their respective countries to situation. those Arab groups and countries that But we distinguish between the are attacking the Jewish community two qualitatively different compo- and fighting against the U.N. de- nents of the favorable international cision. situation. The first of these is the 4) That the Security Council take vastly increased moral and political all necessary measures to arm the authority of the Soviet Union in Jewish community which shall carry world affairs due to its decisive role THE STRUGGLE FOR THE JEWISH STATE 149 in defeating the fascist enemy in the on Zionism. It has been asserted that war. This component embraces the Communist support for the estab- rise of the new democracies of lishment of a Jewish state in Pales- Europe and the growth in strength tine became possible only through a of the anti-imperialist camp gener- departure from Marxism on the Jew- ally. In the United Nations this ish question and the consequent camp, headed by the Soviet Union, adoption of some Zionist ideas. has played a decisive part in the deci- Some Zionist leaders welcome this sion for a Jewish state. "departure" from Marxism because The other component is the great they hold that Marxism is thereby weakening of British imperialism, weakened and Zionism strength- the increased strength of American ened. At the same time, certain imperialism, and the rivalry between Marxists disapprove this "departure" them, as well as their desire to com- because they, too, believe that it bine against the real independence weakens Marxism and strengthens ol the Arabs and Jews and against Zionism. This misconception was the anti-imperialist camp headed by advanced, especially by certain Zion- the Soviet Union. These factors, to- ist writers, following the famous gether with internal political con- Gromyko speech in the United Na- siderations, led to the acceptance by tions in May, 1947, which proposed the United States of the Soviet com- the establishment of one, dual Jew- promise offer for the setting up of ish-Arab state in Palestine or, if this the two new states in Palestine. should prove impossible, the consid- We must keep these facts clearly eration of establishing two separate before the eyes of our people. Only independent and democratic states. then will they fully realize who are In this declaration of Soviet policy, the real friends of the projected Jew- Gromyko, according to certain Zion- ish state and of the Jewish people in ists and a few Marxists, was sup- general. Only then will they fully posed to have abandoned the Marx- understand the new dangers now ist position on the national and threatening the realization of the Jewish questions. Jewish state—the dangers coming In November, 1946, the Commu- from American and British impe- nist Party issued a resolution on rialism. work among the American Jewish masses which clearly demonstrated CERTAIN IDEOLOGICAL that the Communist fight for a Jew- QUESTIONS REGARDING ish national home and for Jewish ZIONISM statehood in Palestine flows inevi- tably from the application of Marxist Recent events with regard to Pal- national policy to the concrete con- estine have once again brought to ditions of Palestine in the present the fore certain ideological questions period. Our position, of course, dif- 150 POLITICAL AFFAIRS fered from the Zionist conception. Political Affairs, November, 1946, We could not accept the Biltmore p. 1037.) Program, which denied the legiti- The policy of developing Jewish mate national rights of the Arabs statehood in Birobidjan bears di- and subordinated the Arabs to the rectly and intimately on whether or Jews. While top Zionist officials not Marxism is compatible with down to the last moment opposed Jewish statehood. In an article in the turning the Palestine question over July, 1947, issue of Political Affairs to the United Nations, we had I stated, in dealing with this ques- throughout insisted that a demo- tion, that: cratic solution demanded recourse to . . . when the Soviet government that organization. Furthermore, we promulgated in 1934 the famous decree could not agree with the Zionists for establishing Birobidjan as a Jewish that the achievement of a Jewish Autonomous Region, Kalinin explained state in Palestine would solve the that the purpose was to create a Jewish Jewish question as a whole and for state unit, Jewish statehood, for the all countries. Our conception of a economic and cultural development of Jewish national homeland in Pales- a Jewish nationality. Not only did this tine is based on the Marxist principle constitute no departure from Marxism, of the right to self-determination and but, on the contrary, it was the devel- equality of all nations. As Marxists, opment of Marxism applied to the solution of the Jewish question in the as irreconcilable enemies of imper- concrete circumstances of the Soviet rialism and national oppression, we Union. It follows inevitably from fought for the fulfillment of Jewish Stalin's historic contribution to the so- national aspirations and statehood in lution of the national question and collaboration with the Arab people from the entire Marxist-Leninist policy of Palestine and with full respect for of the Soviet government on this their equal national rights. This rep- question. resents a Marxist approach to such questions, as developed by Lenin And further: and Stalin. Such an approach is in- This proves conclusively that there compatible with the bourgeois- is no contradiction in principle between nationalist ideology of Zionism. For Marxism and the idea of a Jewish state. Marxists hold that "the final com- It also proves that Marxism brought plete and permanent solution of the forth and supported the idea of a Jew- Jewish question will be attained only ish state when the objective conditions under Socialism on the basis of the became ripe for it, when progressive forces had made their appearance on principles formulated by Lenin and the historic stage, forces interested in, Stalin and as developed in the So- and capable of, realizing the aspirations viet Union's solution of the national of large sections of the Jewish people question." (Resolution on work for a Jewish state. This is what hap- among the American Jewish masses, pened in the Soviet Union with regard THE STRUGGLE FOR THE JEWISH STATE 151 to Birobidjan. This is what prompted all lands constitute one single nation Marxists in the recent period to raise is of a bourgeois-nationalist character. the question of Jewish statehood and of a Jewish state in Palestine. Marxist opposition to Zionisrh was different in principle from that of From this it is clear that we make the "Bund," for the latter proceeded no claim that Marxists always posed on the false assumption that it is the question of Jewish statehood in possible to create a Jewish nation the same way or that they have without a common territory and na- always favored a policy of struggle tional economy. Soviet Marxists, on for a Jewish state. the contrary, realized that it was Some people still labor under the impossible to create a Jewish nation misapprehension that Lenin and that lacked these basic features. Stalin opposed a Jewish state in prin- Thus, when it became possible to set ciple and that they shared the op- aside a common territory to be set- portunist and bourgeois-nationalist tied by Soviet Jews and on which to views of the Social-Democratic Jew- develop a Jewish national economy ish "Bund" in old Russia on this and culture (national in form, So- question. Nothing can be further cialist in content), the Soviet Marx- from the truth.-To quote again from ists projected the development of the same article: Soviet Jewish nationhood and state- It was Stalin, in his polemics with hood in Birobidjari. The question of the "Bund" in 1913 and in other writ- Jewish statehood in Palestine must ings, who insisted and demonstrated be approached from the same basic scientifically that a people cannot live Marxist point of view. a normal and full national life—cannot Basic changes have occurred in be a single nation if it does not have a common territory, does not have one the internal and external position of national economy, language, and cul- Palestine and its peoples, as well as ture. Stalin was speaking about the in the general life of the Jewish Jewish people. This meant two things. people in the capitalist world during First, the Jewish people cannot act as the crucial period of the rise and fall a single nation, much as they may of Hitlerism. Failure of the; Western desire it. Second, in the absence of a world to protect the Jews from Nazi Jewish community anywhere on earth extermination, and the tragic loss growing into nationhood, the Zionist of a third of our people at the hands policies for a Jewish state at that time of the fascists during the war, have (1913) were not only Utopian but pro- foundly reactionary since no progres- made the old dream of a Jewish state sive forces of any sort were then present in Palestine the aspiration of wide in the objective situation interested in masses of our people. Most decisive, and capable of realizing the dream of however, are the two factors men- a Jewish state. It is still true today that tioned above, the growth during the Zionist conception that the Jews of the same period of a vital Jewish 152 POLITICAL AFFAIRS community, developing into nation- democratic and anti-imperialist hood in Palestine and the favorable forces, both among the Jews and the international situation following the Arabs, bear their own responsibility war. A democratic realization of for the inadequate struggle for Arab- Jewish aspirations has therefore be- Jewish unity and for a democratic come possible. Arab-Jewish state of two equal peo- Consequently, and in full accord pies. with their basic position on the na- There are some who maintain that, tional question, the Marxists raised by agreeing to the partition of Pal- the question of Jewish statehood in estine, Marxists have once again de- Palestine. They raised it in the most parted from Marxism, have aban- democratic, most desirable and, in doned their proposal for a Jewish- the long run, most durable form—in Arab state, and have accepted some- the form of one, dual, Jewish-Arab, thing advocated by Zionism. But independent, and democratic state. here, too, fancy has won over fact. They also indicated that, if deteri- The truth is that Marxists have not oration of Jewish-Arab relations abandoned their conviction that the made the proposal for a common type of state they proposed would state impractical at this time, it represent the most consistently demo- might then be necessary to consider cratic solution and the most endur- the establishment of two separate ing. Partition itself will be success- and independent states. ful precisely to the degree to which As we know, conditions made it the economic unity and political co- necessary to decide in favor of two operation of the two states develops. separate states. The U.N. plan called In other words, the closer the two for two independent and democratic separate states approach the status of states, with economic unity between one state consisting of two equal na- ׳them. This proposal was, of course, tions, the closer we shall be to a com entirely different from the many par- plete and permanent solution of the tition schemes contemplated by Brit- Palestine question, to the firm and ׳ish and American imperialism. irrevocable establishment of indepen It is important to realize that the dent Jewish statehood. major responsibility for the further Our Party's resolution on Jewish deterioration of Arab-Jewish rela- work stated: tions, from the time of the historic A major task in the struggle for the Gromyko declaration in May to the independence of Palestine is the joint tj.N. decision in December, 1947, Arab-Jewish fight, supported by all rests with British and American im- progressive and anti-imperialist forces, perialism, which was effectively against the British and Anglo-Ameri- aided by Arab and Jewish reaction- can imperialist schemes for the parti- aries inside and outside of Palestine. tion of Palestine for some fraudulent It should also be noted that the 'independence' maneuver similar to the THE STRUGGLE FOR THE JEWISH STATE 153 one in Trans-Jordan, based upon the ing conditions and constitutes the collaboration with imperialism of the application of Marxism-Leninism- Jewish and Arab reactionary forces. Stalinism to the solution of the Jew- (Political Affairs, November, 1946, ish (and Arab) question in Pales- p. 1039). tine. It is therefore clear that the It is now clearer than ever that Marxist position in support of a Marxist opposition to the imperial- Jewish state in Palestine did not de- ist schemes for partition of Palestine rive from the acceptance of Zionist and support for a U.N. solution was political ideology. Marxists will con- correct. tinue to distinguish in the future, as The fight was carried on by the they have done in the past, between anti-imperialist forces despite opposi- the living reality of Jewish nation- tion from reactionary Zionist circles. hood in Palestine—and, hence, of the The fight was effective because it fulfillment of their right to self-de- helped to prevent the carrying out of termination—and Zionism as a po- Anglo-American imperialist schemes litical philosophy, as a bourgeois-na- and forced the issue into the United tionalist ideology incompatible with Nations. The democratic forces Marxism. headed by the U.S.S.R. were thus afforded an opportunity to project ZIONISM AND THE NEW and work for a democratic solution. ALIGNMENT IN STRUGGLE The U.N. decision, which removed FOR THE JEWISH STATE British and/or Anglo-American im- perialism from exclusive jurisdiction Some Zionists claim that the over Palestine, created conditions for United Nations decision was a tri- the democratic states to influence the umph for Zionism, even as a private democratic implementation of the victory for the Zionist parties. And, partition decision. We should note I am sorry to say, some confused at this point that official Zionist pol- progressive non-Zionists are im-, icy was opposed to bringing the issue pressed by this chatter. of Palestine before the United Na- Fortunately, the masses of the Jew- tions. ish people, including the bulk of the It is therefore clear that in their Zionists and many of their leaders, fight for Jewish statehood, for an do not share this belief. The masses Arab-Jewish state, or for two sepa- of our people consider the United rate independent and democratic Nations decision a triumph of jus- states as decided by the United Na- tice and truth. The masses of our United Nations ׳tions, Communists did not have to people acclaim the depart from Marxism on the national decision as opening the way to the, and Jewish questions. On the con- realization of Jewish national aspira- trary, the position of the Marxists tions. They do not consider it a tri- was developed in accord with chang- umph of one particular Jewish pcK 614 POLITICAL AFFAIRS litical movement or party, even ist ideology and official policies of though many Jews grant Zionism Zionism in relation to the Arab considerable recognition for the U.N. masses played an important role in decision. intensifying national tension, pro- The time has long passed when voked by British imperialism and many, including some American- aided by the Arab reactionary na- Jewish Marxists, identified the Jew- tionalists. Zionist policy has always ish Yishuv and the idea of Jewish- insisted on the "negation of the statehood in Palestine with Zionist Diaspora/' i.e., that Jewish life in ideology and its political program. all countries outside of Palestine is Some people concluded that one doomed. This theory, an integral could not favor Jewish statehood in part of basic Zionist philosophy to Palestine, without supporting Zion- this very day, exhibits a complete ism; or, conversely, if one were op- contempt for the achievements and posed to Zionism, that one would be vitality of many Jewish communities obliged to oppose Jewish statehood throughout the world. That it has in Palestine. This erroneous identifi- proved Utopian and reactionary is cation of Jewish statehood with evidenced by the Jewish communi- Zionism was responsible for many ties in the Soviet Union and Biro- past errors of American Jewish Com- bidjan in particular, in the United munists on the Palestine question, States, Poland, etc. This theory has and has been exposed and criticized also had the effect of estranging from in the Party resolution of 1946. the Yishuv large sections of our peo- The central objective of political pie in many lands. Zionism has been the establishment Among Jewish workers and the of a Jewish state in Palestine. How- Jewish masses generally, Zionist ever, this objective was not confined ideology has always tended to culti- to the Zionist parties. It was the as- vate trends toward separation from piration of large masses of our peo- the labor and progressive forces of pie. By incorporating this aspiration their respective countries and from into a political platform, the Zionist other peoples. Such trends play into movement undoubtedly played an the hands of reaction and anti-Semit- important part in the emergence of ism and militate against the sti t'ggles a Jewish national community in Pal- of our people for equal rights and for estine. No one would question that survival everywhere, including Pal- the Zionist movement has become, estine. over the years, an important factor in Zionism as a political movement Jewish life. But it is demonstrable worked for the establishment of a that official Zionist policies have al- Jewish state in Palestine. It thus con- ways been oriented on imperialism tributed to the emergence of the Jew- and reaction. ish Yishuv, whose existence in turn The bourgeois-nationalist, chauvin- helped make necessary and possible THE STRUGGLE FOR THE JEWISH STATE 155 the U.N. decision. But Zionism also state demand a firm alliance with bears a heavy responsibility for many the anti-imperialist forces of the of the difficulties which now confront world. ^ the realization of this decision. Zion- This process will continue. It is a ism is partially responsible for the de- healthy manifestation and one that terioration of Jewish-Arab relations, we must encourage. There is need because of its failure to break with for a powerful united movement of imperialism and join hands with the Zionists and non-Zionists to bring anti-imperialist, democratic forces of the independent Jewish state into the world, which are the most de- full being. The development of the pendable allies of our people lot the anti-imperialist unity of our people realization of the Jewish state. everywhere is imperative for their Now that concrete prospects have survival and flourishing. Welded to opened up for that realization, Jew- the over-all democratic, anti-imperial- ish opinion all over the world is in ist struggle of the entire American ferment, and a new realignment is people, this line of struggle can as- taking place. Within the Zionist sure the eradication of fascism, and movement, democratic elements be- the securing of a durable peace, of gin to realize that the establishment equality, economic security, and and safe-guarding of the Jewish democracy. *31

A MERE TRAINING TO ACT AS A MACHINE . . .

"All objections urged against the Communist mode of producing and appropriating material products have, in the same way, been urged against the Communist modes of producing and appropriating intel- lectual products. Just as, to the bourgeois, the disappearance of class property is the disappearance of production itself, so the disappearance of class culture is to him identical with the disappearance of all culture. "That culture, the loss of which he laments, is, for the enormous majority, a mere training to act as a machine." Karl Marx and Frederick Engels, Manifesto of the Communist Party. unemployment which followed the THE ECONOMIC crisis of 1929, and the struggles of the workers for bread and jobs, made Keynes fearful of the revolutionary THEORIES OF JOHN implications of these struggles. Before dealing with the economic theories of Keynes it is important MAYNARD KEYNES to discuss briefly his philosophy and method. By J. MINDEL THE PHILOSOPHY AND METHOD OF KEYNES THE ECONOMIC THEORIES of John May- nard Keynes formulated in his book, The main moving force of society, The General Theory of Employ- according to Keynes, is psychology. ment, Money and Interest, published The regulating force of capitalist so- in 1936, modify his former theories ciety is the "psychological charac- and are a reflection of the general teristic of human nature."* The av- crisis of capitalism, which was ag- erage man is "strongly addicted to gravated by the economic crisis of the money-making passion."** With- 1929. out this passion, without the activity The victorious Socialist revolution of the huckster and his willingness in Russia, accompanied by the revo- to take a chance, there would be no lutionary upheaval in many coun- progress. The money-mad capitalists tries in the rest of Europe, made him are sensitive individuals. Their ner- fearful for the survival of capital- vous systems are easily affected. They ism on the European continent. He are, according to Keynes, subject to wrote in 1919: hysteria, and even their digestions In continental Europe the earth and their reactions to the weather heaves and no one but is aware of the affect their actions. rumblings. There it is not just a matter Luckily, says Keynes, the "waves of extravagance of "labor troubles"; but of irrational psychology" are not of life and death, of starvation and permanent. There are periods when existence, and of fearful convulsions of the outlook for gain is encouraging, a dying civilization.* and then the capitalists act quite ra- tionally. Keynes was more optimistic as far The method of Keynes is rooted in as England was concerned. He be- his philosophy; it is subjective and lieved that the English workers non-historical. His economic system would pull British capitalism out of its postwar crisis. However, the mass * John Maynard Keynes, The General Theory of Employment, Interest and Money, Harcourt, * John Maynard Keynes, The Economic Con- Brace, New York, p. 91. (Hereinafter referred sequences of the Peace, Harcourt, Brace, New to as The General Theory. York, 1940, p. 4. * * Ibid., p. 374. 156 THE ECONOMIC THEORIES OF KEYNES *57 is an isolated, "closed" system, op- seeks to employ only that amount of erating in all historic periods and labor which will yield the highest epochs. He does not deal with mo- profit. If the employment of addi- nopoly and imperialism. His failure tional workers will reduce the "mar- to do so is a conscious one, since it ginal efficiency of of capital," (i.e., the permits him to avoid a discussion of amount of profit), then no more the worst features of capitalism and workers can be employed. ". . . the the main causes of its decay and of amount of employment," Keynes imperialist wars and fascism. Keynes' writes, "is indeterminate except in so followers try to present him as an far as the marginal disutility of la- enemy of the vested interests, while bour sets an upper limit."* the truth is that Keynes was their Industry reaches the "equilibrium staunch defender. "I am sure," he level of employment" when no more wrote, "that the power of vested workers are hired and none are fired. interests is vastly exaggerated com- Keynes' "equilibrium level of em- pared with the gradual encroach- ployment" is misleading, since it ment of ideas ... it is ideas, not does not mean the abolition of unem- vested interests, which are danger- ployment. ous "* The "income" or profit of the capi- talist, Keynes writes, "We can . . . PRODUCTION define ... as being the excess of the AND EMPLOYMENT value of his finished output sold dur- ing the period over his prime cost."** Keynes' economic theories are those How the capitalist obtained this ex- of the vulgar economists. He follows cess of value over cost, we are not Alfred Marshall and borrows from told. the under-consumptionist school. His Keynes conceals the fact that the theories deal only with secondary source of the excess value over the phenomena of capitalist production cost price is the surplus value created and exchange. by labor. In this way he tries to hide Keynes' description of the capital- the nature and source of capitalist ist process of production is meager. exploitation and the basic contradic- He merely states that the capitalist tions of capitalism. buys all the necessary means of pro- Keynes treats capitalist economy duction and hires labor. The wages as a static economy in which the in- paid for labor and management are fluence of technological deyelopment the "factor cost"; the wear and tear does not operate. But technological of machinery and what the capitalist development is utilized by the capi- buys from other capitalists is the talists to increase the productivity "user cost." The capitalist "maxi- and intensity of labor, ,increased pro- mises" his profit; in other words, he * The General Theory, p. 26. * Ibid., pp. 383-384. **Ibid., p. 53• 158 POLITICAL AFFAIRS ductivity results in the production mists advocated the reduction of of a greater volume of commodities nominal wages to their lowest mini- with a relatively smaller number of mum as the only source of increased workers. The greater production of profits, of greater accumulation of value also' results in a greater mass capital and extended production, and, of surplus yalue, and, hence, of profit, therefore, of a greater volume of em- The employment of a smaller num- ployment. Keynes argued that such ber of workers, which accompanies a policy may benefit some capital- the increased production of surplus ists, while it may be harmful to others value, and the huge accumulation of who cannot force wages down. The capital leads to the creation of a per- real method of increasing the profits manent army of unemployed work- of the capitalist class, he stressed, is ers. Says Marx: the method of reducipg the real ... in fact, it is capitalistic accumu- wa8es of the workers: "When money lation itself that constantly produces, wages are rlsmS • • •11 w1il be found and produces in the direct ratio of its that real waSes are falling; and when own energy and extent, a relatively money wages are falling, real wages redundant population of laborers, i.e., are rising."* He further argued that a population of greater extent than suf- when real wages decline, profits in- Sees for the average needs of the self- crease; and increased profits raise the expansion of capital, and therefore a "marginal efficiency of capital," surplus population* which results in an increase in the The unemployed workers compete volume of employment. According for jobs with the employed. This to Keynes, "an increase in employ- competition tends to reduce wages ment can only occur to the accom- and the standard of living for all paniment of a decline in the rate of workers. Keynes and his followers, real wages."** in setting out to discover the cause of What Keynes advocates is high unemployment, and find a cure for prices and inflation as a means of it under capitalism, ignore this major increasing the profits of the capital- contradiction of capitalist production, "t class and reducing the income of stated above by Marx. the working class. It is worthy of note that in discuss- REAL AND NOMINAL WAGES ing prices Keynes leaves out of con- Keynes criticized the older schools sideration monopoly prices, thus of bourgeois economics for ignoring making it appear that monopoly the problem of real wages and cen- prices are the exception. With mo- tering their attention on the prob- nopoly prices left out of considera- whole discussion of ׳lem of nominal wages. The pre- tion, Keynes Keynesian school of vulgar econo- prices serves only as a smokescreen

* Kail Marx, Capital, Vol. I, International • The General Theory, p. 10. Publishers, New York, pp. 643-644. *'IM., p. 17. *57 THE ECONOMIC THEORIES OF KEYNES to cover up the, role of monopoly sumption is the behavior of the capitalism. His theories also serve "wealth-owning class." Another fac- as ammunition for the misleaders of tor that deepens the "gap" between the working class. production and consumption is the The inflationary method of reduc- activity of the Wall Street specula- ing wages by raising prices, Keynes tors, who extend their personal ex- finds politically safer than direct penditures in flush times and curtail wage cuts. According to Keynes, them in times of slack or crisis, for workers seldom fight against rising "a rising stock-market may be an al- prices, whereas they put up a strug- most essential condition of a satis- gle against reduction of money factory propensity to consume . . ."* wages. He says that "a movement Needless to say, Keynes does not by employers to revise money-wage solve the contradiction between pro- bargains downward will be much duction and consumption, because he more strongly resisted than a gradual cannot comprehend the basic contra- and automatic lowering of real wages diction of capitalist production—the as a result of rising prices."* Fur- contradiction between the social char- thermore, Keynes claims that, "Every acter of production and the private trade union will put up some resist- appropriation of the results of that ance to a cut in money-wages, how- production. The "wealth-owning ever small. But ... no trade union class," its ravenous appetite notwith- would dream of striking on every standing, cannot overreach itself and occasion of a rise in the cost of liv- consume all the products of modern ing "** industry and agriculture. Keynes further argues that the THEORY ׳KEYNES "psychological law" of consumption OF CONSUMPTION leaves a portion of the national in- Keynes finds that there is a "gap" come in the hands of individuals in between production and consump- the form of money. If this money is tion which forms one of the con- hoarded, or kept as liquid capital, tradictions of the capitalist system. full employment cannot be reached. He says that "the larger our incomes, To reach full employment it is es- the greater, unfortunately, is the sential that "savings" be invested. margin between our incomes and Without new investments there can- 1 our consumption."*** According to not be extension of production and him, this contradiction is produced employment of new workers. Keynes by the "psychological law" of con- therefore establishes a law for full sumption. employment. This he calls "the A major factor, he says, in creating principle of effective demand." Ef- a "gap" between production and con- fective demand is established when • Ibid., p. 264. the sum spent on individual con- ** Ibid., p. 15. * IM., p. ״ .Ibid., p. 105. 319 • • • 160 POLITICAL AFFAIRS sumption and the sum invested equal vestment will bring profits, Keynes the current national income. If both believes, makes the public hesitate to sums fall short of the national in- part with its cash. This reluctance come and a part is hoarded in the makes loan capital dear, as it tends form of money, full employment is to raise the rate of interest. A high not possible. rate of interest compels the industrial But, Keynes continues, the flow capitalist to part with a large part of of investments, especially of new in- his profit and lowers the "marginal vestments, which he considers of efficiency" of capital, that is, reduces major importance, meets with ob- the rate of profit. When the rate of stacles. The replacement of the old profit is low, there is no inducement worn-out capital does not, by itself, for the entrepreneur to engage in add to the volume of employment. production and give employment to The volume of employment can be workers. Hence, to Keynes, the high materially increased by extended pro- rate of profit is the main obstacle to duction in the basic or capital goods full employment. producing industries. Investments in According to Keynes, the obstacle these industries are long-term invest- to the easy flow of money into invest- ments, the return upon which can- ment channels is due to the state of not be calculated at the present time mind of the public, which is reluc- because nobody knows what the state tant to part with its cash unless a of consumption will be in the future great inducement is offered. In other or whether the commodities pro- words, "the rate of interest is a duced by the new industries will find highly psychological phenome- a market. Therefore, Keynes consid- non."* This tendency of the public ers investments in capital goods in- to hold on to its money instead of dustries to be regulated by the state investing it, is peculiar to human of confidence of investors in the fu- nature, and is of ancient origin. Says ture, that is, confidence that the in- Keynes: vested capital will bring profits now and in the future. . . . there has been a chronic ten- dency throughout human history for There are not two separate factors the propensity to save to be stronger affecting the rate of investment, than the inducement to invest. The namely, the schedule of the marginal weakness of the inducement to invest efficiency of capital and the state of has been at all times the key to the confidence. The state of confidence is economic problem.** relevant because it is one of the major factors determining the former . . .* Keynes avoids a discussion of the role of corporations, of Big Business, THE RATE OF INTEREST in the accumulation and control and The lack of confidence that in- * I bid., p. 202. • Ibid., p. 149. * * Iiid., pp. 347-348. THE ECONOMIC THEORIES OF KEYNES *57 ownership of the wealth of the na- human nature." Divested of all ver- tion. According to him, corporations biage the "multiplier" means only and financial institutions are guided that if industry cannot supply em- in their activities by substantially the ployment, some outside means same "psychological laws" he as- should be found to supply it, such scribes to individuals. as war production or government Keynes writes: projects for the unemployed financed with borrowed funds. This should Apart from the savings accumulated provide employment, not only for by individuals, there is also the large the workers employed on the proj- amount of income, varying perhaps ects, but for many more, affecting from one-third to two-thirds of the total accumulation in a modern industrial different industries in a chain re- community such as Great Britain or action. These government expendi- the United States, which is withheld by tures would increase the "effective Central and Local Government, by demand" and lead to new invest- Institutions and by Business Corpora- ments, thus stabilizing the system for tions—for motives largely analogous to, a short period. but not identical with, those actuating Keynes suggests that the capitalists individuals . . ."* could stabilize the system by invest- ing their money "in building mighty Keynes thus conceals the role of mansions to contain their bodies monopolies and trusts and presents When alive and pyramids to shelter a false picture of present-day, i.e., them after death." Even to " 'dig monopoly, capitalism. holes in the ground'" and seek buried fortunes would increase "the THEORY OF CRISES real national dividend of useful ׳KEYNES Unable to explain the crisis of goods and services."* Keynes envied capitalism by the economic laws that ancient Egypt, which he claimed had regulate capitalist production and no unemployment problem because exchange, Keynes vainly seeks refuge that country kept its people busy in his philosophy. He argues that building pyramids and hunting if psychology can produce bad re- gold.** suits, then perhaps there are "hypo- Keynes' "contribution" to the thetical psychological propensities" theory of crises does not add any- which "would lead to a stable thing to what has been written on system.'!** this subject by other bourgeois econ- Keynes therefore suggests that the omists. The main cause of the crisis, use of a "multiplier" may correspond according to Keynes, is a "sudden to the "psychological characteristic of collapse in the marginal efficiency of

* I bid., p. 108. * Ibid., p. 220. •* Ibid.,, p. 250. * * Ibid., p. 250. POLITICAL AFFAIRS י 162 capital."* Collapse is brought on in the sun spots. Good crops result by ignorant trades and optimistic when, because of these changes, speculators on the stock exchange. weather is good, and bad crops Their calculations as to future profits when, also as a result of such miscarry and, "when disillusion falls changes, weather is bad. The income upon an over-optimistic and over- of the farmer, increased in years of ## bought market," a crash follows. good harvest and decreased in years Recovery depends on the re-establish- of poor harvest, affects the rate of ment of the "marginal efficiency of investment. The changing rate of capital," but attempts to restore this investment produces fluctuation in "marginal efficiency" meet an obsta- production generally and leads to cle in the "uncontrollable and dis- crisis. A surplus of agricultural obedient psychology of the business products leads to deflation and inter- world."*** feres with recovery. Recovery is slow, Keynes is disturbed by the fact due to the deflationary effect of a that a gang of stock exchange gam- "redundant stock." To achieve more biers and speculators can wreck the rapid recovery, Keynes advises de- economy of a country, and he de- struction of stock. Keynes was very mands the intervention of the gov- much satisfied with the policy of ernment, of a government which the the New Deal, which subsidized the same crew controls. But Keynes fails to disclose the secret as to why there destruction of agricultural products. is a stock exchange and what makes Keynes thus separates industry it possible for a set of monopolists, from agriculture, which he considers bankers, brokers, and government to be governed by the laws of nature. officials to wreck the economy of a But, in fact, no such separation ex- nation. ists. The economic laws governing industry also govern agricultural This secret was long ago disclosed production. What is more, capital- by Marx who said that the stock ism penetrates agriculture, not only exchange is a place where "the little in capitalist countries, but also in fish are swallowed by the sharks and colonial and semi-colonial countries, the lambs by the wolves." transforming agricultural production Besides his own pseudo-theory of in colonial and semi-colonial coun- crises, Keynes presents other bour- tries into an appendage to the in- geois theories to explain the causes dustrial production of the imperialist of crises. He modifies Jevons' theory, countries. Capitalist imperialism in- which ascribes the cause of crises troduces the plantation system and 1to the periodically occurring changes peonage. With the aid of the feudal elements and native fascists, it seeks to suppress all resistance of the na- .Ibid., p. 316 יי ***Ibid., p. 317. tive population, and to prevent the development of industry and of *57 THE ECONOMIC THEORIES OF KEYNES diversified agriculture in these coun- nate and corresponds to the mode of tries. production. In the words of Marx: Distribution is itself a product of THE THEORY production, not only in so far as the OF UNDERCONSUMPTION material goods are concerned, since only the results of production can be The theory of underconsumption distributed; but also as regards its is accepted by bourgeois economists form, since the definite manner of par- as the most plausible explanation of ticipation in production determines the crises, and is widely prevalent in the particular form of distribution, the labor movement. Samuel Gompers, form under which participation in for example, made it the official the- distribution takes place.* ory of the American Federation of Those who ascribe the main cause Labor. The Reconstruction Program of crises to underconsumption fail adopted by the A. F. of L. in 1919, to explain why there is undercon- stated: sumption in capitalist society. In this Unemployment is due to undercon- way they cover up the differences sumption. Underconsumption is caused between the capitalist mode of pro- by low or insufficient wages. Just duction and other modes of produc- wages will prevent industrial stagna- tion. They thereby conceal the basic tion and lessen periodical unemploy- contradiction of capitalism and the ment.* revolutionary implications of this The followers of Keynes propose contradiction. As Engels said: to solve the problem of overproduc- . . . unfortunately the undercon- tion by "socializing demand." Their sumption of the masses, the restriction program calls for the capitalists to of the consumption of the masses to carry on production and for the gov- what is necessary for their maintenance ernment to provide a constant de- and reproduction, is not a new pheno- mand for commodities. However, a menon. It has existed as long as there capitalist state cannot insure the de- have been exploiting and exploited mand for commodities. The demand classes. Even in those periods of history when the situation of the masses was of each class is determined by the particularly favorable, as for example position it occupies in social produc- in England in the fifteenth century, tion. The effective demand of the they underconsumed. They were very working class cannot fundamentally far from having at their disposal for be greater than the wages it receives. consumption their own annual total In actual fact, to socialize demand, bf production. Therefore, while under- production must be socialized, for consumption has been a constant the mode of distribution is subordi- feature in history for thousands of

* American Federation of Labor—History, En- * Karl Marx, A Contribution to the. Critique cyclopedia, Reference Book, A, F. of L., Wash- of Political Economy., Charles H. Kerr, Chicago, ington, 1924, Vol. II, p. 255- 1909, p. 284. 164 POLITICAL AFFAIRS j . " I years, the general shrinkage of the new and special features that did not I market which breaks out in crises as apply in the epoch of free competi- j the result of surplus of production is a tion. Cyclical crises in the twentieth | י phenomenon ,only of the last fifty century take place in the epoch of years. . . .* the decline of capitalism, in the pe- Overproduction is due to the social riod of the general crisis of capital- I character of production and the pri- ism. They engulf the entire capitalist vate appropriation of the results of world and are of longer duration, that production. making recovery more difficult. Fur- * י :The contradiction between social thermore, as Stalin stated in 1930 production and capitalist appropriation In the course of development of the reproduces itself as the antithesis be- ו economic crisis, the industrial crisis ttveen the organization of production in the chief capitalist countries has not in the individual factory and the simply coincided, but has become in- anarchy of production in society as a terwoven with the agricultural crisis • whole** in tht agrarian countries, aggravating Planning in separate, individual the difficulties and predetermining the inevitability of a general decline in industries by the trusts does not economic activity. Needless to say, the diminish the anarchy of production. industrial • crisis will intensify the These plans cannot extend to the agricultural crisis, and the agricultural whole of society, so that while order crisis will protract the industrial crisis, may prevail inside the factory, an- and this cannot but lead to the deepen- archy rages outside. Thus, Lenin ing of the economic crisis as a wrote: whole.* | The statement that cartels can 1 abolish crises is a fable spread by KEYNES' REMEDIES bourgeois economists who at all costs The theories of Keynes again dem- desire to place capitalism in a favour- able light. On the contrary, when mo- onstrate the bankruptcy of bourgeois nopoly appears in certain branches of political economy. After erecting a industry, it increases and intensifies the huge theoretical structure, Keynes is anarchy inherent in capitalist produc- compelled to confess that the main- tion as a whole.*** tenance and preservation of the capi- talist system cannot be left in the Keynes and his followers make no hands of the capitalists. The State differentiation in the nature and must take an active part in the direc- features of crises in the different tion and regulation of capitalist econ- epochs of capitalism. The economic ony. Keynes writes: crises of the epoch of monopoly have I expect to see the State, which is in ternational.׳:! ,Frederick Eagels, Anti-Dabrmg * Publishers. 1939, p. 312. a position to calculate the marginal * * Ibid., p. 299• * * • V. Ii tenia. Collected Works, International * Joseph Stalin, Leninism. International Pub- Publishers, Vol. XIX, p. 104. Ushers, 1953. Vol. H, p. 314. *57 THE ECONOMIC THEORIES OF KEYNES efficiency of capital-goods on long capitalist system. In 1937, Keynes views and on the basis of the general wrote: ". . . our knowledge of the social advantage, taking an ever future is fluctuating, vague, and un- greater responsibility for directly or- certain." Even about "the position of ganising investment. . . .* private wealth-owners in the social system in 1970 ... there is no scienti- Keynes leaves to the State the fic basis on which to form any cap- management of the flow of invest- able probability whatever. We simply ment into production and the regu- do not know."* lation of consumption; the manage- Compare this with the penetrating ment of industry itself is left in the analysis of British capitalism made hands of the capitalists. in 1885 by Frederick Engels: It is not the ownership of the instru- ments of production which it is im- . . . the manufacturing monopoly of portant for the State to assume. If the England is the pivot of the present State is able to determine the aggregate social system of England. Even while amount of resources devoted to that monopoly lasted, the markets could augmenting the instruments and the not keep pace with the increasing pro- basic rate of reward to those who own ductivity of English manufacturers; the them, it will have accomplished all decennial crises were the consequence. that is necessary.** . . . How will it be when Continental, and especially American, goods flow in ever-increasing quantities — when the What Keynes wants is to place the predominating share, still held by Brit- burden of rebuilding the decayed ish manufacturers, will become reduced English industries on the shoulders from year to year? Answer, Free Trade, of the people. He further expects thou universal panacea. . . . Capitalist the State to guarantee profits to the production cannot stop. It must go on capitalists. If guaranteeing the profits increasing and expanding, or it must of the monopolists will, make it nec- die. Even now, the mere reduction of essary to "socialize" certain indus- England's lion's share in the supply tries, Keynes raises no objections. He of the world markets means stagnation, advises the capitalists to accept a cer- distress, excess of capital here, excess of tain amount of nationalization, if unemployed workpeople there. What will it be when the increase of yearly necessary, and thus save the capitalist production is brought to a complete system. "The world," he says, "will stop? not much longer tolerate unemploy- ment. . . ." Here is the vulnerable place, the heel Keynes does not seem to be too of Achilles, for capitalistic production. Its very basis is the necessity of con- certain that his remedies would save stant expansion, and this constant ex- capitalism, or that his theories would pansion now becomes impossible. It shed any light on the future of the * The New Economics, {essays by various au- ' The General Theory, p. 164. thors) edited by Seymour Harris, New York, "Ibid., p. 378. 1947, pp. 184, 185. POLITICAL AFFAIRS י 166 ends in a deadlock. Every year England left of it—but America cannot herself is brought nearer face to face with the succeed to that monopoly.* question: either the country must go to pieces, or capitalist production must.* Today the American imperialists have embarked on a policy of world Engels' analysis is a brilliant ex- domination, and Britain, as Engels ample of how Marxism, the science predicted, is forced to play a subordi- of the working class, can see and nate role. Under the Truman Doc- foretell the march of events. trine and the Marshall Plan, Ameri^ Engels clearly saw the general line can imperialism, with Britain as of development of the capitalist coun- junior partner, is preparing a third tries. He foresaw the outlines of the world war for the destruction of the present struggle between the United U.S.S.R. and the new European de- ; States and Britain, although he could mocracies in order to dominate the not of course predict in 1886 the spe- world. But in pursuing the course of cific coaditions in which the an- Hitler, American imperialism will tagonisms between them would take not meet with any more success than place. With prophetic insight Engels did German imperialism. in 1886 forecast the reality of today. He wrote: The eclecticism of Keynes cannot help save capitalism from doom. All America will smash up England's its tinkering with a decaying eco- industrial monopoly—whatever there is nomic system will not prevent the

* Frederick Engels, The Condition of the triumph of Socialism. Working-Class in England in 1844, George AI- len & Unwin, London, 1920, Preface to the 1892 Edition, pp. xvi-xvii. (Quoted by Engels * Karl Marx and Frederick Engels, Selected from his article "England in 1845 and 1885," Correspondence, 1846-1895, International Pub- in the London Commonweal, March 1, 1885.) lishers, p. 443., FROM THE TREASURY OF MARXISM

THE LABOR MOVEMENT many other trades, and especially in IN AMERICA* the preparations, all over the coun- try, for the great Eight Hours1 move- ment which was to come off and did By FREDERICK ENGELS come off in the May following. That I then duly appreciated these symp- Ten months have elapsed since, at toms, that I anticipated a working the translator's wish, I wrote the Ap- class movement on a national scale, pendix to this book;** and during my "Appendix" shows; but no one these ten months, a revolution has could then forsee that in such a short been accomplished in American soci- time the movement would burst out ety such as, in any other country, with such irresistible force, would would have taken at least ten years, spread with the rapidity of a prairie- in February 1885, American public fire, would shake American society, opinion was almost unanimous on to its very foundations. this one point; that there was no working class, in the European sense The fact is there, stubborn and of the word, in America; that conse- indisputable. To what an extent it quently no class struggle between had struck with terror the American workmen and capitalists, such as tore ruling classes, was revealed to me, European society to pieces, was pos- in an amusing way, by American sible in the American Republic; and journalists who did me the honor that, therefore, Socialism was a thing of calling on me last summer; the of foreign importation which could "new departure" had put them into never take root on American soil. a state of helpless fright and per- And yet, at that moment, the coming plexity. But at that time the move- class struggle was casting its gigantic ment was only just on the start; shadow before it in the strikes of the there was but a series of confused Pennsylvania coal miners, and of and apparently disconnected up- heavals of that class which, by the * This preface, dated January 27, 1887, was written by Engels, in English, for the American suppression of Negro slavery and the edition of his' The Condition of the Working- Class in England in 1844, translated by Florence rapid development of manufactures, Kelley Wischnewitzky. The preface was originally published here, in pamphlet form, under the had become the lowest stratum of title, The Labor Movement in America. A new American society. Before the year edition of Engels' work will be issued by Inter- national Publishers in the spring of 1948.•—Ed. closed, these bewildering social con- * * The American edition of The Condition of the Working-Class in England in 1844. vulsions began to take a definite 167 POLITICAL AFFAIRS י 168 direction. The spontaneous, instinc- nent class of modern society; and it tive movements of these vast masses took years again until this class- of working people, over a vast extent consciousness led them to 'form of country, the simultaneous out- themselves into a distinct political burst of their common discontent party, independent of, and opposed with a miserable social condition, the to, all the old political parties, same everywhere and due to the formed by the various sections of the same causes, made them conscious ruling classes. On the more favored of the fact, that they formed a new soil of America, where no medieval and distinct class of American soci- ruins bar the way, where history be- ety: a class of—practically -speaking gins with the elements of the modern —more or less hereditary wage- bourgeois society as evolved in the workers, proletarians. And with true seventeenth century, the working American instinct this consciousness class passed through these two stages led them at once to take the next step of its development within ten toward their deliverance: the forma- months. tion of a political workingmen's Still, all this is but a beginning. party, with a platform of its own, That the laboring masses should feel and with the conquest of the Capitol their community of grievances and and the White House for its goal. of interests, their solidarity as" a class In May the struggle for the Eight in opposition to all other classes; that Hours' working-day, the troubles in in order to give expression and effect Chicago, Milwaukee, etc., the at- to this feeling, they should set in tempts of the ruling class to crush motion the political machinery pro- the nascent uprising of Labor by vided for that purpose in every free brute force and brutal class-justice; country—that is the first step only. in November the new Labor Party The next step is to find the common Organized in all great centers, and remedy for these common griev- the New York, Chicago and Mil- ances, and to embody it in the plat- waukee elections. May and Novem- form of the new Labor Party. And ber have hitherto reminded the this—the most important and the American bourgeoisie only of the most difficult step, in the movement payment of coupons of U. S. bonds; —has yet to be taken in America. henceforth May and November will A new party must have a distinct remind them too, of the dates on positive platform, a platform which which the American working-class may vary in details as circumstances presented their coupons for payment. vary and as the party itself develops, In European countries, it took the but still one upon which the party, working class years and years before for the time being, is agreed. So long they fully realized the fact that they as such a platform has not been formed a distinct and, under the worked out, or exists but in a rudi- existing social conditions, a perma- mentary form, so long the new party, FROM THE TREASURY OF MARXISM 169 too, will have but a rudimentary Labor Union, last November, chose existence; it may exist locally but for its standard bearer Henry not yet nationally; it will be a party George, and consequently its tem- potentially but not actually. porary electoral platform has been That platform, whatever may be largely imbued with his principles. its first initial shape, must develop in In the great cities of the North West, a direction which may be determined the electoral battle was fought upon beforehand. The causes that brought a rather indefinite labor platform, into existence the abyss between the and the influence of Henry George's working class and the capitalist class theories was scarcely, if at all, visible. are the same in America as in And while in these great centers of Europe; the means of filling up that population and of industry the new abyss are equally the same every- class movement came to a political where. Consequently, the platform head, we find all over the country of the American proletariat will in two widespread labor organizations: the long run coincide as to the ulti- the "Knights of Labor" and the mate end to be attained, with the one "Socialist Labor Party," of which which, after sixty years of dissensions only the latter has a platform in har- and discussions, has become the mony with the modern European adopted platform of the great mass standpoint as summarized above. of the European militant proletariat. Of the three more or less definite It will proclaim, as the ultimate end, forms under which the American the conquest of political supremacy labor movement thus presents itself, by the working class, in order to the first, the Henry George move- effect the direct appropriation of all ment in New York, is for the means of production—land, railways, moment of a chiefly local signifi- mines, machinery, etc.—by society at cance. No doubt New York is by large, to be worked in common by far the most important city of the all for the account and benefit of all. States; but New York is not Paris But if the new American party, and the United States are not France. like all political parties everywhere, And it seems to me that the Henry by the very fact of its formation George platform, in its present aspires to the conquest of political shape, is too narrow to form the power, it is as yet far from agreed basis for anything but a local move- upon what to do with that power ment, or at best fork a short-lived when once attained. In New York phase of the general movement. To and the other great cities of the East, Henry George, the expropriation of the organization of the working class the mass of the people from the land has proceeded upon the lines of is the great and universal cause of Trades' Societies, forming in each the splitting up of the people into city a powerful Central Labor Rich and Poor. Now this is not quite Union. In New York the Central correct historically. In Asiatic and POLITICAL AFFAIRS י 170 classical antiquity, the predominant tive Accumulation.") According to form of class oppression was slavery, Marx, the cause of the present antag- that is to say, not so much the expro- onism of the classes and of the social priation of the masses from the land degradation of the working class is as the appropriation of their persons. their expropriation from all means of When, in the decline of the Roman production, in which the land is of Republic, the free Italian peasants course included. were expropriated from their farms, If Henry George declares land- they formed a class of "poor whites" monopolization to be the sole cause similar to that of the Southern Slave of poverty and misery, he naturally States before 1861; and between finds the remedy in the resumption slaves and poor whites, two classes of the land by society at large. Now, equally unfit for self-emancipation, the Socialists of the school of Marx, the old world went to pieces. too, demand the resumption, by so- In the middle ages, it was not the ciety, of the land, and not only of expropriation of the people from, the land but of all other means of but on the contrary, their appropria- production likewise. But even if we tion to the land which became the leave these out of the question, there source of feudal oppression. The is another difference. What is to be peasant retained his land, but was done with the land? Modern Social- attached to it as a serf or villein, and ists, as represented by Marx, demand made liable to tribute to the lord in that it should be held and worked labor and in produce. It was only at in common and for common ac- the dawn of modern times, toward count, and the same with all other the end of the fifteenth century, that means of social production, mines, the expropriation of the peasantry railways, factories, etc.; Henry on a large scale laid the foundation George would confine himself to let- for the modern class of wage workers ting it out to individuals as at pres- who possess nohing but their labor- ent, merely regulating its distribution power and can live only by the sell- and applying the rents for public, ing of that labor power to others. instead of, as at present, for private But if the expropriation from the purposes. What the Socialists de- land brought this class into existence, mand implies a total revolution of it was the development of capitalist the whole system of social produc- production, of modern industry and tion; what Henry George demands agriculture on a large scale which leaves the present mode of social perpetuated it, increased it, and production untouched, and has, in shaped it into a distinct class with fact, been anticipated by the extreme distinct interests and a distinct his- section of Ricardian bourgeois econ- torical mission. All this has been omists who, too, demanded the con- fully expounded by Marx (Capi- fiscation of the rent of land by the tal, Part VIII: "The so-called primi- State. FROM THE TREASURY OF MARXISM 171 ־It would of course be unfair to little absurdities, whatever their plat suppose that Henry George has said form and their constitution, here his last word once for all. But I am they are, the work of practically the bound to take his theory as I find it. whole class of American wage- The second great section of the workers, the only national bond that American movement is formed by holds them together, that makes the Knights of Labor. And that their strength felt to themselves not seems to be the section most typical less than to their enemies, and that of the present state of the movement, fills them with the proud hope of as it is undoubtedly by far the strong- future victories. For it would not be est. An immense association spread exact to say that the Knights of over an immense extent of country Labor are liable to development. in innumerable "assemblies," repre- They are constantly in full process senting all shades of individual and of development and revolution; a local opinion within the working heaving, fermenting mass of plastic class; the whole of them sheltered material seeking the shape and form under a platform of corresponding appropriate to its inherent nature. indistinctness and held together That form will be attained as surely much less by their impracticable con- as historical evolution has like natu- stitution than by the instinctive feel- ral evolution, its own immanent ing that the very fact of their club- laws. Whether the Knights of Labor bing together for their common will then retain their present name aspiration makes them a great power or not, makes no difference, but to in the country; a truly American an outsider it appears evident that paradox clothing the most modern here is the raw material out of which tendencies in the most medieval the future of the American working- mummeries, and hiding the most class movement, and along with it, democratic and even rebellious spirit the future of American society at behind an apparent, but really pow- large, has to be shaped. erless despotism—such is the picture The third section consists of the the Knights of Labor offer to a Euro- Socialist Labor Party. This section pean observer. But if we are not is a party but in name, for nowhere arrested by mere outside whimsicali- in America has it, up to now, been ties, we cannot help seeing in this able actually to take its stand as a vast agglomeration an immense political party. It is, moreover, to a amount of potential energy evolving certain extent foreign to America, slowly but surely into actual force. having until lately been made up The Knights of Labor are the first almost exclusively by German immi- national organization created by the grants, using their own language American working class as a whole; and, for the most part, little conver- whatever be their origin and history, sant with the common language of whatever their shortcomings and the country. But if it came from a POLITICAL AFFAIRS י 172 foreign stock, it came, at the same come off without a deal of friction, time, armed with the experience such as 1is visible at different points earned during long years of class even now. The Knights of Labor, for struggle in Europe, and with an instance, are here and there, in the insight into the general conditions Eastern cities, locally at war with of working class emancipation, far the organized Trades Unions. But superior to that hitherto gained by then this same friction exists within American workingmen. This is a the Knights of Labor themselves, fortunate circumstance for the where there is anything but peace American "proletarians who thus are and harmony. These are not symp- enabled to appropriate, and to take toms of decay, for capitalists to crow advantage of the intellectual and over. They are merely signs that the moral fruits of the forty years' innumerable hosts of workers, for struggle of their European class- the first time set in motion in a com- mates,' and thus to hasten on the mon direction, have as yet found out time of their own victory. For, as I neither the adequate expression for said before, there cannot be any their common interests, nor the form doubt that the ultimate platform of of organization best adapted to the the American working class- must struggle, nor the discipline required and will be essentially the same as to insure victory. They are as yet that now adopted by the whole mili- the first levies en masse of the great tant working class of Europe, the revolutionary war, raised and same as that of the German-Ameri- equipped locally and independently, can Socialist Labor Party. In so far all converging to form one common v this party is called upon to play a army, but as yet without regular very important part in the move- organization and common plan of ment. But in order to do so they will campaign. The converging columns have to doff every remnant of their cross each other here and there; con- foreign garb. They will have to be- fusion, angry disputes, even threats come out and out American. They of conflict arise. But the community cannot expect the Americans to come of ultimate purpose in the end over- to them; they, the minority and the comes all minor ,troubles; ere long immigrants, must go to the Ameri- the struggling and squabbling bat- cans, who are the vast majority and talions will be formed in a long line the natives. And to do that, they of battle array, presenting to the ׳ must above all things learn English. enemy a well-ordered front, omi- The process of fusing together nously silent under their glittering these various elements of the vast arms, supported by bold skirmishers moving mass—elements not really in front and by unshakeable reserves discordant, but indeed mutually iso- in the rear. lated by their various starting-points To bring about this result, the uni- —will take some time and will not fication of the various independent FROM THE TREASURY OF MARXISM 633 bodies into one national Labor whole proletariat, interests independent Army, with no matter how inade- of all nationality; 2. In the various quate a provisional platform, pro- stages of development which the vided it be a truly working class struggle of the working class against platform—that is the next great step the capitalist class has to pass through, to be accomplished in America. To they always and everywhere represent the interests of the movement as a effect this, and to make that platform whole. worthy of the cause, the Socialist The Communists, therefore, are on Labor Party can contribute a great the one hand, practically, the most deal, if they will only act in the same advanced and resolute section of the way as the European Socialists have working class parties of all countries, acted at the time when they were but that section which ever pushes forward a small minority of the working all others; on the other hand, theoreti- class. That line of action was first cally, they have, over the great mass laid down in the Communist Mani- of the proletarians, the advantage of festo of 1847 in the following words: clearly understanding the line of march, the conditions, and the ultimate The Communists—that was the general results of the proletarian move- name we took at the time and which ment. even now we are far from repudiating —the Communists do not form a sepa- That is the line of action which rate party opposed to other working the great founder of Modern Social- class parties. ism, Karl Marx, and with him, I and They have no interests separate and the Socialists of all nations who apart from the interests of the whole worked along with us, have followed working class. for more than forty years, with the They do not set up any sectarian result that it has led to victory every- principles of their own, by which to where, and that at this moment the shape and model the proletarian move- mass of European Socialists, in Ger- ment. The Communists are distinguished many and in France, in Belgium, from the other working class parties by Holland and Switzerland, in Den- this only: 1. In the national struggles mark and Sweden, as well as in of the proletarians of the different coun- Spain and Portugal, are fighting as tries they point out, and bring to the one common army under one and front, the common interests of the the same flag. this earlier downswing. A sharply ECONOMIC REVIEW reduced corn crop set off a specula- tive boom in feed, grain, and other commodities. At the same time, the OF 1947 business expected under the Mar- shall "plan" raised hopes that a re- By LABOR RESEARCH latively high level of exports could ASSOCIATION be maintained in 1948 and beyond. • As Moody's Stoc\ Survey put it (December 15, 1947): "By Septem- As THE YEAR 1947 drew to a ber the Marshall Plan idea had come close, America's monopoly-domi- to appear as the guarantor of infla- nated economy, cradle of reviving tion over a long period to come." world reaction, rocked uneasily near Buying for inventory, which had the top of its postwar boom. Price slowed down to a walk, shot up inflation, it was predicted in busi- again and was running at an annual ness circles, would be allowed to run rate of about $6 billion as the year its course regardless of official talk closed. The elimination of consumer of controls and the campaign oratory credit controls, the cashing by vet- of an election year. erans of terminal leave bonds, and During the spring and summer of the rise in bank loans were other 1947, serious signs of an economic factors that came into play toward decline had appeared and some of the end of the year. the most conservative journals, such This upswing was marked by as the New York Journal of Com- price increases rather than increases merce, believed the "recession" had in physical production. At the year- started. end the industrial production index, The Federal Reserve Board's in- at about 192, was only a little higher dex of industrial production fell than in March. On the other hand, from its peacetime peak of 190 in the index of wholesale prices in the March to 176 in July. The prices of same period (first quarter to year- a number of commodities began to end) had risen more than 10 per slump, as had been predicted at the cent. The consumer price index also opening of the year. New construc- climbed about 10 per cent in this tion and buying for inventory nine month period, while average slowed down as businessmen grew weekly earnings of workers in man- more cautious and fearful of over- ufacturing were rising only about stocking. Employment in manufac- 5 per cent. turing declined. But while the real wages of most Then, toward the fall of the year, workers declined for the second sue- a number of stimulating factors cessive year, net corporate profits, emerged which tended to reverse after taxes, hit an all-time high of 174 ECONOMIC REVIEW OF 1947 175 $17 billion. The figures showing the soundness of economic conditions super-profits of price inflation, in was echoed in the second annual re- comparison with certain previous port of the President's Council of periods, were as follows: Economic Advisers. These econo- mists attributed the current boom to CORPORATE PROFITS "abnormal circumstances," and speci- (after taxes) fied as among these the high military 1929 $8 billion 1946 $12 billion expenditures, foreign aid, temporary 1936-39 4 billion 1947 17 billion crop shortages, and the wartime 1945 9 billion backlog of orders for consumer goods as well as industrial equipment. Profits after taxes, were thus more than four times as great as in the pre- However, the most important of war period 1936-1939. these "props to production"—the war- time Dacklog of orders—was fast melting away as the New Year be- STOCK MARKET TRENDS gan. A review of the year by George These spectacular results, how- A. Renard, secretary of the National ever, failed to influence the stock Association of Purchasing Agents market. Wall Street's estimates of (New Yor\ Times, January 2, 1948) coming events in the economic pointed out that: sphere continued to be distinctly Deferred demand in many manufac- bearish, even though in certain air- tured products has been reduced, in craft stocks the preparation for 1947, by satisfaction through increased another war were already reflected.* production and by the destructive Stock market prices, taken as a squeeze of high prices and reduced pur- whole, closed the year 1947 at almost chasing power on a considerable ele- the same level at which they opened ment of the public. . . . The economic it. There had been no appreciable position is, therefore, more vulnerable recovery from the sharp break in than it was a year ago. . . . Demand is stock prices in the autumn of 1946. declining—even for export, production Wall Street's verdict on the un- is high with some exceptions. Retail stocks and sales are good indicators of both factors and they are flashing signs * In a gloomy prediction of a coming "serious slump," Moody's Stock Survey, December 15, the recession may have been deferred 1947, declared: "There is only one develop- ment, not remote to the imagination, that could only one year. modify the oudook as we see it. This would be the rapid crystallization of all the vague but persistent fears of war with Russia into a GROSS NATIONAL PRODUCT dynamic rearmament program." And the busi- ness news editor of the New York Herald Tri- bune, November 23, 1947, reported that "our The most obvious feature of the government is stepping up its defense measures. This is responsible in part, for some of the economic situation at the end of 1947 price advances which are now taking place in certain products. If war talk persists more strongly was the stagnation or actual decline in 1948, ..further price, rises can be expected in many more items made from raw materials of consumption in the face of in- -creasing production. The most com .׳ ".widely used in warfare 176 ) POLITICAL AFFAIRS prehensive statistical indicators of na- tant lines as automobiles, freight cars, tional production of goods and ser- refrigerators and washing machines. vices are those of the Department of On the other hand, production fell Commerce covering gross national off in 1947 in important nondurable product. These are given in terms of goods lines such as textiles, clothing, current prices and thus reflect both shoes, and in various luxury trades physical volume and price changes. and services. The 1947 gross national product As the year closed, serious dispro- total is estimated at about $230 bil- portions had developed in the pro- lion. This is an increase of about duction trends of the main sectors of 12% over the 1946 estimate of $203.7 the economy. Output was running billion. Allowing for a 10% average ahead of demand in many consumer price increase in the cost of delivered soft goods industries. It was catching goods and services, it would appear up with demand in practically all that the total physical volume of consumer hard goods lines except production advanced very little, if automobiles. Only in the capital any, in 1947, especially if we note goods and construction sectors was that gross national product includes effective demand still ahead of pro- as productive services such questioh- duction. (See below.) able items as the service of men in Along with the 10% increase in the military forces, the services of industrial production, non-agricul- landlords and bondholders (valued tural employment as a whole rose as being equal, respectively, to rents about 5% over the 1946 average. Fac- and.interest received) as well as many tory employment alone rose about other kinds of non-productive ac- 7%. These figures would seem to tivity. indicate that industrial labor produc- tivity increased on the whole some INDUSTRIAL AND 3% in 1947. FARM OUTPUT Agricultural output and employ- As we have noted before, the in- ment remained about the same as in dustrial production index of the 1946. The physical volume of farm Federal Reserve Board is a somewhat products marketed in 1947 rose only more reliable index of basic economic about 3%. The share of farm oper- activity. With 100 equal to the pre- ators in the total personal income of war period (1935-39) average, this the country rose to about 10% in the index averaged 187* in 1947 or about third quarter of 1947, as compared 10% above the 1946 level of 170. with 8.2% in 1945 and only 6.6% Most of this 1947 rise was the in 1940. result of gains in the durable goods industries. New postwar output CONSUMPTION LOWER highs were reached in such impor- Consumer outlays for goods and * Preliminary atiaate. services in 1947 totaled about $164 637 ECONOMIC REVIEW OF 1947 billion, or a rise of about 14 c/0 over past savings and going into debt 1946. However, with retail prices, as which took place in 1947 was for measured by the consumer price in- the purpose of financing purchases dex of the U.S. Bureau of Labor of consumer durable goods, such as Statistics, rising about 15%—from refrigerators, washing machines, elec- 139 in 1946 to an estimated 160 in trical appliances, furniture, and auto- 1947—there was apparently no in- mobiles. Sales of these goods in- crease in the physical volume of con- creased in physical volume as well sumer goods and services purchased as in money value. But for most in 1947. families, savings and loanable re- This fact has been verified by many sources were not high enough to recent statements of spokesmen for permit. these increased hard-goods the retail industry, who confirm the purchases without cutting into their continuance of the downward trend consumption of clothing, food, drugs, in the unit volume of goods sold. and other necessaries. In fact, the Since both population and employ- drop in soft-goods sales more than ment were higher in 1947 than in offset the rise in hard-goods sales 1946, the decline in per capita con- during the year. sumption was even more marked than the drop in total volume. BALANCING THE GAP As American workers and low- income groups generally struggled to maintain their standard of living, The gap between production and more and more of them had to dip consumption expenditures in the into savings and go into debt. Per- gross national product estimates is sonal savings for the population as balanced by government expendi- a whole declined from about 9% of tures (for goods, services, and con- disposable income in 1946 to 6% in struction), by export surpluses, and 1947. by private domestic investment. Installment loans increased sharply As defined by the Department of and new deposits in savings banks Commerce, private domestic invest- declined, while withdrawals from ment is calculated on a "gross" basis, such banks increased. War bond re- that is, it includes expenditures for demptions continued at about the replacement and repair of worn-out same rate as in 1946* despite the plant and equipment. It therefore widespread cashing in of veterans' equals the total of new capital in- terminal leave bonds in the latter vestment plus consumption of fixed half of 1947. capital. It also includes residential A good deal of the ,using up of construction. The estimates for these various * Sales of $4,100 million in new "E" bonds items making up national gross prod- in 1947 exceeded cash-ins by about $155 mil- Lion, it was officially estimated. uct, for the last two years, derived POLITICAL AFFAIRS י 178 from government sources, are as fol ports from the United States, thus lows: contributing to the downtrend in business in the spring and summer. 1946 1947 (in billions of }) However, after the Marshall "plan" was projected, the export surplus be- Gross national product $204 $230 gan to move up again. Referring to Personal consumption 144 164 the effects of the proposed "foreign Balance 60 66 aid" to western Europe, Poor's In- vestment Advisory Service (Decern- Government expenditures* 31 28 Export surplus 5 8 ber 6, 1947) concluded: "Even if Gross private domestic Congress grants all the funds re- quested, the chances are that the 3° 4ג investment total of 1948 exports will be at least Total 60 66 moderately less than those of 1947, Components of private because many countries not subject domestic investment: to this aid have already moved to New construction 8 10 curtail their imports." The Journal Producers durable of Commerce (January 6, 1948) pre- equipment 12 18 dieted that even if approximately $7 Increase in inventories** 4 2 billion were granted for the first 15 months of the Marshall Plan's opera- 24 30 tion (the actual demand of the State As this table indicates, the export Department is for $6.8 billion) the isurplus and private domestic invest- decline in exports would still be ment increased markedly in impor- nearly $1 billion. tance as balancing factors in the economy between 1946 and 1947, THE CONSTRUCTION LEVEL while government expenditures de- clined. Private new construction totaled $10 billion in 1947. In addition, pub- EXPORT SURPLUS RISES lie construction (included in "gov- The export surplus rose sharply in ernment expenditures" in the table) the early part of 1947, reaching an totaled about $3 billion. The Federal all-time peak at the annual rate of Works Agency estimates that for $11 billion during the second quar- 1948 there will be a 6% to 9% in- ter. As foreign countries used up crease over 1947 in the value of con- their gold and dollar exchange, a struction, but that the physical vol- "dollar crisis" developed. This forced ume of construction will still be 20% many countries to reduce their im- lower than in 1941. Public construction in 1948 is esti- * Excludes transfer payments, i.e., social sec- arity, etc., foreign loans and relief. mated at $3.7 billion, with the lion's * * Adjusted to eliminate effect of price changes. share going for highway construc ECONOMIC REVIEW OF 1947 639 tion, schools, and hospitals, and only pending slow-down in new factory lioo million for public housing proj- building and the shift of machinery ects. (The rising cost of credit, how- sales to plant modernization means ever, might reduce the size of these that the upward trend in industrial expected totals.) employment will probably slow up Private construction for 1948 is now some time in the current year and estimated at about the same level as that we shall see the beginning of a in 1947, but with a sharp increase new period of growing "technologi- in residential construction for people cal unemployment," or the displace- in the upper-income groups and a ment of workers by labor-saving ma- decrease in factory construction. chinery. This trend is already con- A National Industrial Conference firmed in reports from various sectors Board survey, published December of industry, for example, textiles. Its 29, 1947, points out that additions to effects are not immediately apparent, industrial plant capacity in 1948 will however, as many of the workers largely represent completion of work displaced have obtained full or part- started in 1947 or 1946. It states flatly time jobs in other trades or industries that very little new factory building and hence are not yet counted among is scheduled to begin in 1948. the unemployed. PRODUCERS' DURABLE THE CREDIT SITUATION EQUIPMENT In the fim v01ume of Capital, in The year 1947 witnessed a record- discussing the general law of capi- breaking $18 billion total investment talist accumulation, Karl Marx ex- in productive machinery and equip- plains how, as accumulation develops ment of all kinds. The dollar total into concentration and centralization was 50% higher than in 1946 and of capital, as the credit system de- four times as high as in 1939. Despite velops, and as wealth in all forms price increases, the physical volume expands, the power of sudden ex- of new equipment installations was pansion of existing capital is greatly undoubtedly at an all-time peak. increased. However, new equipment and ma- Developments in the United States chinery sales have been declining in today illustrate this tendencf. The recent months in terms of physical present rapidly-paced boom is based volume, and the continuation of this not only on the war-created short- trend in 1948 is expected. Further- ages of consumer and capital goods, more, as the N.I.C.B. survey makes It is based also on the tremendous clear, an increasing proportion of the existing accumulation of liquid or new machinery will be used in mod- money capital, ernizing existing plants rather than Certain capitalist circles are begin- in equipping new factories. ning to speak of a tightening of The combined effect of the im- credit, and the trend in the prices of POLITICAL AFFAIRS י 180 government and other bonds is now a big factor both in the speculative .beginning to reflect this condition as price boom (when millions of dol- the: government takes certain feeble lars are used for gambling in grains steps to brake the boom without and other commodities) as well as slowing it down too much in an elec- in the urge of monopoly to export tion year. If we take the economy as capital abroad, which is now being a whole, however, we find that only definitely facilitated under the Mar- a small part of the existing money shall "plan." supply and credit resources is being We should once more note the fact used. that the demand for capital goods, For certain small and middle-size although now very high and in ex- businesses, which are \ loaded with cess of production (as witness the excessive inventories, the shortage of steel shortages), is rapidly being sat- money capital and credit is, however, isfied. On the other hand, effective a reality.* This is one aspect of demand for satisfaction of consumer the concentrated ownership and goods backlogs is also being elimi- control of money capital and credit nated, partly by production and which foreshadows large-scale liqui- partly by the squeeze on consumers' dation of small businesses in the income and savings. period ahead. It is now predicted Although the backbone of the that the number of bankruptcies will boom is weakening, it is still con- soon run far above the 4,000 reported ceivable that the pressure of the still for 1947, which was, in turn, five unused resources of credit and liquid times the very low wartime rate. capital may generate a further and The volume of accumulated liquid final upward speculative twist. But if capital in the United States is far in it does, it will only add to the "steam excess of the investment needs of the in the boiler" and increase the vio- capitalist market. This is, of course, lence of the coming "bust." As one * A story from Washington in the Journal of the leading business weeklies put of Commerce, December 29, 1947, pointed out that "Reports from the field to industrial eco- it recently, "An adjustment post- nomic advisors now show that marginal busi- nesses are becoming over-extended financially. poned until 1949 . . . could mean They are finding it increasingly difficult to get funds, and colleaions are materially slowing inflation checked by its own ex- down. A real credit stringency, therefore, is de- cesses. A 1949 correction would be veloping, a condition seen as impossible two years ago, and one that is putting marginal pro- likely to conform to the classic boom- ducers in a money squeeze that may well spell the start of the deflation." and-bust pattern." ON CHANGES IN THE ECONOMY OF CAPITALISM AS A RESULT OF THE SECOND WORLD WAR*

By I. GLADKOV

THE ECONOMICS INSTITUTE of the ga's work touches upon the most U.S.S.R. Academy of Sciences re- important questions of present-day cently conducted a discussion on capitalism—such as, the character of Academician E. Varga's book, the war economy of capitalist coun- Changes in Capitalist Economy Re- tries; concentration and centraliza- suiting From the Second World tion of production and capital dur- War. The three-day discussion at- ing the war; war economy and tech- tracted a large audience—scientific nics; the war and manpower; pro- workers, teachers of the capital's col- duction, distribution and consump- leges and universities. More than tion during the war; changes in the twenty persons took part in the live- sphere of international division of la- ly exchange of opinions, among bor and foreign trade of the capital- whom were Academicians Strumilin ist countries; colonies during the war and Trachtenberg; correspondent- and in the postwar period; changes members of the U.S.S.R. Academy of in the development of the indus- Sciences Ostrovityanov, Smit, and trial cycle; prospects for the eco- Arzhanov; Professors Khromov, nomic development of capitalism; Motyliov, Schneierson, Figurnov, the advance of a new economic Rubinstein, Mendelson, and others. crisis. With respect to all these ques- The great interest shown in the tions Academician Varga's book con- discussion evidences the timeliness tains a great deal of factual mate- of the theme and the significance of rial and a number of theoretical gen- the problems posed in Acadcmician eralizations. Varga's book. This is the first at- However, the discussion showed tempt in our literature on economics that Comrade Varga's book contains at a theoretical generalization of the essential shortcomings as well as changes that have occurred in capi- questionable and erroneous proposi- talist economy as a result of the Sec- tions with regard to a number of ond World War. Academician Var- most important problems of present- day capitalism. These shortcomings * Translated from the Bolshevik, Moscow, No. 17, September 15, 1947. and questionable propositions in the 181 POLITICAL AFFAIRS י 182 book occupied the center of the dis- tinguishcs two stages, which sup- cussion. posedly have their own inherent The basic shortcoming of Com- laws. "In the first period, approxi- rade Varga's book consists in the fact mately the first decade after the end that it does not furnish an integrated of the war," writes Academician characterization of present-day im- Varga, "the unevenness of economic perialism. This deficiency, as the par- development, which occurred during ticipants in the discussion noted, is the war, will have a decisive influ- explained primarily by the fact that ence upon the course of capitalist the author considers the changes in economy." (P. 12.) The second pe- the economy of present-day capital- riod, the author indicates, will pro- ism as isolated phenomena unrelated ceed under the sign of "protracted" to the sharpening of the general changes in capitalism caused by the crisis of capitalism as a result of the war. These changes "will find their Second World War. The problem expression in the sharpening of the of the development and deepening basic contradiction of the capitalist of the genefal crisis of capitalism is system, i.e., the contradiction between essentially passed over in the book. social production and private appro- And yet, a correct evaluation of the priation, and first of all in the sharp- character and significance of the ening of the problem of realization, changes in capitalist economy during or in other words, the problem of the the years of the Second World War market." (P. 12.) and in the postwar period is impos- Such a posing of the question sible without scientific analysis of the called forth well-founded criticism further development and of the from the participants in the discus- depth of the general crisis of capi- sion, who noted the incorrectness of talism. The book does not give a the separation between the uneven- general picture of the growth of ness of the development of capitalism parasitism and decay of capitalism, and the basic contradiction of the of the sharpening of the basic contra- capitalist system. Comrade Varga, dictions of the capitalist system, of incorrectly, "postpones" for a decade the growth in the uneven develop- the sharpening of the basic contradic- ment of capitalism, and of the sharp- tion of capitalism and the problem ening of the problem of markets. of the market connected with it. It should also be noted that the This contradiction is an incessantly author gives a one-sided analysis of operating law of capitalism. Just as the phenomena and tendencies of incessantly does the law of the un- present-day capitalism, in that he even development of capitalism oper- separates economics from politics. ate. In the post-war development of Reality shows how devoid of value capitalism Academician Varga dis- is Comrade Varga's position on the CHANGES IN THE ECONOMY OF CAPITALISM 183

postwar development of capitalism omy, they sing praises to the panacea and especially his prognosis concern- of State regulation of capitalist ing the basic contradiction of capi- economy during the postwar period talism. The postwar period is char- as Well. acterized by the sharpening of all the The Soviet economists, who base contradictions inherent in the capi- themselves on the guiding direc- talist system—by the intensified ex- tions of the classics of Marxism-Len- ploitation of the workers, by the inism, in effecting a scientific analysis growth of unemployment, by the of present-day capitalism, must strag- sharp lowering of the living standard gle decisively and ceaselessly against of the toiling masses, by the exten- the reactionary theories of the apolo- sion in the operation of the indus- gists of capitalism and the harmful trial plant below production capacity, illusions created by them. However, by the intensified struggle for mar- not all our economists duly fulfill kets and spheres of capital invest- this task. ment, by the growth of militarism, In this respect Academician Var- etc. ga's book has serious shortcomings. * * * "One of the most important phe- nomena of the Second World War," Especially sharp was the criticism the author states, "was the fact that directed against Academician Varga's in all bourgeois states, belligerent or incorrect statements on State-mo- neutral, the State acquired a decisive nopoly capitalism, on the role of the significance in the war economy" (P. bourgeois State in economy, on the 15). The author asserts further that, essence and meaning of State regu- during the period of the war, capi- lation of war economy in capitalist talism's most difficult problem, the countries. problem of realization, the problem As we know, bourgeois economists of the market, was fully solved (P. and politicians fashion numerous 9). According to Comrade Varga, projects for the "cure" of diseases of the State itself decided "what had to the bourgeois social system through be produced"; it "determined the the "planning" of capitalist economy. utilization of the major part of the They assiduously advertise various material means of production"; it "plans" for securing "full employ- distributed the manpower, organ- ment," for preventing crises, etc. The ized the supply of commodities to bourgeois economists and politicians the population, etc. "And this," con- refer besides to the experience of eludes Academician Varga, "would State regulation of war economy dur- have been absolutely impossible, if ing the years of the Second World the complete anarchy of production War. Setting up war-capitalist econ- existing in peacetime had remained iomy as an example of planned econ- unchanged in wartime. . . ." (P. 17.) POLITICAL AFFAIRS י 184 Thus, the capitalist war economy in ulation of the capitalist economy the light of Comrade Varga's ex- during the war years not only did planation loses its anarchic charac- not weaken, but strengthened the ter, and appears like some kind of economic might of the large monop- organized economy. olies. The apparatus of State regula- This general concept of Comrade tion and control in all capitalist Varga, not only as developed in the countries was actually in the hands book (in the first chapter it appears of these monopolies. The major war as a picture of a uniquely organized orders were distributed among the war-capitalist economy), but as re- large monopolies; the State helped peated even in a sharper form during them with priority on scarce raw the discussion, does not correspond materials, guaranteed them high to reality and contradicts Marxism- profits, etc. It is known that the war- Leninism. economy organs of the U.S.A. and Marxism-Leninism teaches that England were organized and headed the economy of the capitalist coun- by the magnates of monopoly capi- tries is not in the hands of the bour- tal, by representatives of the steel and geois State, but in the hands of pri- chemical trusts, armament manufac- vate owners and their combinations; turing combines, etc. It is also known that, on the contrary, the State itself that in capitalist countries the State is in the hands of the large capitalist turned the lion's share of all war owners, who direct the entire activity orders over to large monopolies. In of the bourgeois State. If the interests the U.S.A., of the total sum of war of capitalism sometimes demand (es- orders from June, 1940 to November, pecially in periods of economic crises 1942, amounting to $60,000,000,000, and wars) a certain State "interfer- over 70 per cent fell into the hands cnce" in private economy, then such of 100 large firms; one-third of these interference does not change the orders was turned over to five of the mature of the economy: the capitalist largest monopoly concerns. •economy remains as before anarchic. The practice of the capitalist coun- The bourgeois State can only to a tries clearly demonstrates the limita- certain extent limit the individual tion of the regulatory measures of •excesses of the anarchy of produc- the bourgeois State in the sphere of tiori. The entire history of capitalism economy. Under the domination of corroborates these theses of Marx- private ownership of the means of ism-Leninism. The experience of the production, the State, even during Second World War likewise con- the war, was unable to eliminate firms them. anarchy of production and compe- Monopolies played universally a tition, or to coordinate the activities decisive role in the capitalist war of competing private concerns and economy. All measures of State reg- individual capitalists. CHANGES IN THE ECONOMY OF CAPITALISM 185 In bourgeois society, whether the interests of monopoly capitalism under conditions of peace or in war- in peacetime, as well as in time of time, the means of production—fac- war. Notwithstanding this Marxian tories, mills, land, railroads, banks, thesis, Comrade Varga holds that in etc.—are in the hands of capitalists time of war the bourgeois State and their combinations. The State stands over the capitalist monopolies, remains the tool of the owners of entering into conflict with the capi- means of production, the servant of talists; that this State, in wartime, as the monopolies. it were, resisted the bourgeois profit Marxism-Leninism demands that principle. The bourgeois State,, the question of State regulation of writes Academician Varga, "con- economy should be viewed always in! stantly clashed with the private in- immediate connection with the char- terests of individual capitalist enter- acter of the State rule which effects prises, with their concern for the the reguladon. Lenin pointed out extraction of the highest possible that the entire question of economic profits" (P. 10; see also p. 18). On regulation, of control, "reduces itself page 37, the author again under- to the point of who controls whom, scores that "the concern of the capi- t£., which class is the controlling and talists for high profits and their which is the controlled one."* striving to conduct production ac- Life daily confirms the correctness cordingly even during the war is in of the Marxian thesis: wherever the constant contradiction with the striv- imperialists rule, the strengthening ing of the State to place production of State interference in economics and consumption to the maximum means the strengthening of oppres- degree at the service of the war." sion and exploitation of the toilers, These erroneous assertions of the the consolidation of the omnipotence author were subjected to serious crit- of the monopolies, the strengthening icism by the participants in the dis- of reaction within the country \ as cussion. In reality there is not, and well as in foreign affairs. cannot be, any constant contradiction The fundamental and decisive between the bourgeois State and the factor in the character of the role of capitalists; for the bourgeois State the State in economy during the itself is the class organization of the epoch of imperialism is the organic capitalists, defending their interests de-up between finance capital and both under peacetime and wartime the State. The largest monopolies conditions. hold in their hands the apparatus of State power and direct its activity in As far as capitalists are concerned, war is first of all a profitable busi- * V. I, Lenin, Collected Works, International ness; and in wartime profit remains Publishers, New York, 1932, Vol. XXI, Book I, p. 196• the major motive for capitalist pro- POLITICAL AFFAIRS י 186 duction. The bourgeois State in no triple or even tenfold profits for the way infringes upon this principle of capitalists."* capitalism. On the contrary, in war- # # * time the State guarantees to the capi- Academician Varga's book also talists and their combinations higher contains other serious errors as re- profits than in peacetime, by shifting gards the character of the aims and all the burdens and privations of the tasks of State regulation of war econ- war period to the shoulders of the omy under the conditions of capital- toilers. In the U.S.A., even on the ism. For example, according to the basis of minimized data published book, without State regulation of in the bourgeois press, the capitalist supply to the population of the capi- profits for the years of the Second talist countries, "a considerable por- World War, were, after deduction tion of commodities available in lim- of taxes, nearly three times the pre- ited quantities would have been war profits. Evidendy, State inter- hoarded and consumed only by well- ference in the economy in no way to-do people." (P. :8.) But such a limited the capitalist appetites; on picture of supposedly just distribu- the contrary, it promoted their im- tion of commodities in the bourgeois measurable gain. State does not correspond to reality. Notwithstanding the measures of Comrade Varga's assertions to the State regulation of consumption dur- contrary, measures of State regula- ing the war and in the postwar don of capitalist war economy not period, speculation and the "black only do not contradict the principle market" flourish widely in bourgeois of extraction of profits, but are in countries, and this condition strikes general possible only in so far as they solely at the budget of the toiling guarantee the capitalists an augmen- people. Lenin, writing in 1917, char- tation of their profits. The experience acterized the bourgeois state as not of the Second World War showed "in the least degree attempting actu- that the bourgeois State in its "regu- ally to regulate consumption in the lating activities" consistendy adhered sense of control over the rich " who to this principle. The bourgeoisie supplement "the meagre govern- during the war entrusted the State mental ration , by all sorts of 'addi- with realizing certain measures of tional' products on the side." In all economic regulation because it bourgeois States, as Lenin pointed found it advantageous to do so as out, "we observe how the rich con- a class. As Lenin pointed out during stantly evade 'norms' of consump- the years of the First World War, tion."** An analogous picture came such measures of the bourgeois State * Collected Works, International Publishers. are nothing but "systematic meas- Vol. XX, Book II, p. 189. ures taken by the State to ensure ** Collected Works, Volume XXI, Book I, pp. 200, 201. CHANGES IN THE ECONOMY OF CAPITALISM 187 to notice in the capitalist countries states that "during the war the qual- during the Second World War. ity of food of the British population Comrade Varga writes that but was even improved." In his uncriti- for State regulation of the supply of cal repetition of data from bourgeois products, "the physical strength of sources, the author clearly minimizes the urban workers, whose restoration the difficulties and privations suf- was necessary to guarantee the nor- fered by the toilers in capitalist coun- mal work of war industry, could not tries during the war years. have been restored because of mal- As justly noted in the course of nutrition, which would have led to the discussion, Comrade Varga's a rapid fall in output." (P. 18.) This treatment of State regulation of war- assertion of the author's also basically time capitalist economy creates an contradicts reality. It is universally incorrect idea of that regulation, as known that the capitalists, whether though it had a supra-class character. in time of peace or in wartime, exact For example, the author declares a high output, in the first place that the bourgeois State "as a rule, through intensification of labor and directed the manpower of all citi- the physical exhaustion of the zens, by utilizing them either in the workers, without a thought for the army, or in the rear serving the material well-being of their hired army." (P. 23.) But the bourgeois slaves, for the creation of normal State never so much as thinks of conditions for their labor. equal distribution of the difficulties In his characterization of "civilian and expenditures of war among all consumption" during the war classes and layers of the population. (Chap. VIII), Academician Varga Under any measures of State control operates with average indexes, which and regulation of economic life in lead him to erroneous conclusions. the bourgeois countries, the rich By lumping together American mil- were always able to avoid personal lionaires and workers and unem- participation either on the battlefield ployed, the author concludes that, or in the field of work. Characteriz- during the war years and in the post- ing the wartime financial policy of war period in the U.S.A. "the people the bourgeois states, Comrade Varga consumed 20 per cent more food writes (P. 22) that "the State took than was necessary for normally from its citizens, in the form of healthy fare." This picture, distort- taxes, a considerably higher share of ing reality, was drawn by Comrade the national income than it did in Varga from the words of lying "ob- peacetime," forgetting even here to servers" and from the false sources point out that the bourgeois State of the bourgeois press. In such rosy distributes the burden of taxation far hues Comrade Varga pictures Eng- from equally among all citizens, and land's "civilian consumption." He that the pressure of taxation in the POLITICAL AFFAIRS י 188 bourgeois State is borne mainly by of toilers in the bourgeois countries the toiling masses. during the war. With such talk of # # # the "impoverishment" of the capi- Another important shortcoming of talist countries, the bourgeois econo- Academician Varga's book lies in his mists attempt to cover up and justify abstract conception of the "impover- the attacks of capital against the ishment" of capitalist countries dur- toilers, summoning the people to ing the years of the war. He sub- new sacrifices ostensibly to increase stituted this artificial, imaginary the national wealth, but in reality to concept for the real law of uneven safeguard and swell the profits of development of capitalism and the the capitalists. Academician Varga's general law of capitalist accumu- book uncritically reproduces the as- lation. sertion of the British bourgeoisie and The book omits such questions as its scientific myrmidons about the that of the condition of the working "impoverishment" of England, cir- class in the capitalist countries. In- culated for the purpose of obtaining stead of analyzing the intensified foreign loans, postponement of debt exploitation of the workers in the payments, etc. It is likewise known capitalist countries, Comrade Varga how many crocodile tears are being talks of "increased use of manpower shed by advocates of the German for the heightened output of produc- imperialists in the attempt, under the tion," of "the improvement in the pretext of the "impoverishment" of methods of using manpower in war- Germany, to release her from paying time" (Pp. 99, 114); instead of giv- reparations. * # ׳ # ing us a clear characterization of the absolute and relative impoverish- A great deal of attention was paid ment of the proletariat, Comrade in the discussion to the analysis of Varga confines himself to abstract the economy of the lands of people's assertions to the effect that the im- democracy. The consensus of opin- poverishment of the proletariat "the- ion was that Varga's hook gave an oretically proceeds all the time, in incorrect presentation of the ques- peacetime, as well as in wartime" tion. There was decisive criticism of (P. 67). the author's assertion that the na- It was correctly noted in the course tionalized enterprises in Yugoslavia, of the discussion that the thesis on Bulgaria and Poland represent State the "impoverishment" of the capital- capitalism (P. 291). The facts are ist countries is assiduously advanced that in these State-owned enterprises by bourgeois politicians and econo- there is no exploitation of labor; the mists for the very purpose of mask- profits do not go to capitalists, but ing the colossal enrichment of the to the people in the person of their capitalists and the impoverishment State, This is an economy of a new CHANGES IN THE ECONOMY OF CAPITALISM 189 type, securing an enhancement in tries in the capitalist world economy the welfare of the toilers, and thus as a whole is relatively small, and constituting the basis for further for the present they do not basically progress in the lands of people's change the general perspectives of democracy. the development of capitalism as a It should be noted that during the whole." (P. 291.) In criticizing this discussion Comrade Varga admitted statement, the participants in the dis- to an erroneous evaluation in his cussion brought out the fact that book of the nationalized enterprises according to population the lands of in the lands of people's democracy. people's democracy almost equal It was shown in the course of the those of England and France com- discussion that Comrade Varga's bined, while in area they exceed the book does not reveal the significance territory of these countries. of the democratic reforms in the In estimating the perspectives of lands of people's democracy. In a Europe's postwar economic develop- number of cases the author incor- ment, Comrade Varga writes that "it rectly evaluates these reforms. For will take not less than a decade" example, he declares that the land until the countries of Europe "can reform, along with the drought, was again bring their productivity to the one of the factors in the postwar prewar level" (P. 304). This state- failure of agrarian production in ment, too, rightly encountered objec- Eastern Europe (Pp. 131, 169). The tion on the part of the participants bourgeois press similarly evaluates in the discussion, who showed that the agrarian reforms; but such ac- the book did not take into consider- counts do not correspond to reality. ation the economic and political The facts show that the transfer of transformations which conditioned feudal estates to the peasantry saved the difference between the perspec- the toiling peasantry from starvation, tives and tempos of the reconstruc- and opened the way to quick rehabil- tion process in the lands of people's itation and upsurge of the agrarian democracy and those of the other economy in the lands of people's European States. The States of peo- democracy, despite the terrible dev- pie's democracy, basing themselves astation by the German invaders. on the social ownership of the basic Many participants in the discus- means of production and on the sion criticized the author for his principle of planned economy, are underestimation of the role and sig- successfully rehabilitating their econ- nificance of the lands of people's omy. The introduction of a new, democracy in world economy. They democratic order is helping to speed pointed out that Comrade Varga the tempo of economic reconstruc- confined himself to a quantitative tion in these countries, while the characterization in declaring that subjection of certain European coun- "the specific gravity of these coun- tries to foreign imperialism retards 190 POLITICAL AFFAIRS the economic rehabilitation of these nies from debtors into creditors of "ward" States. imperialist metropolises. This course Comrade Varga's book gives an of development, which has hardly incorrect appraisal of the role and been suspended after the war, repre- significance of American "aid" to the sents a profound change in the r'ela- rehabilitation of Europe's economy. tions between the colonies and the We read on page 12: "The produc- metropolises." It would appear from tive capacities of the impoverished this that the colonies and metropo- countries will, in about ten years, lises have almost changed places, and again be raised to their prewar level that a process of economic liberation (partially with the help of American of colonies, as it were, is taking place. credits)." Life has refuted any such These assertions of Academician judgment of American credits as an Varga differ radically from reality. instrument for the economic im- The speakers in the discussion - provement of Europe. The dollars showed that Comrade Varga's book of the American imperialists are fails to expose the new way of plun- 1 everywhere a means for political dering and enslaving colonies. The pressure and economic enslavement. book glosses over the indisputable As far back as 19x7, when the British truth that the colonies cannot achieve and American imperialists sought to freedom and independence through thrust similar financial "aid" upon economic evolution, that this necessi- Russia, Lenin remarked that " 'the tates a national-liberation struggle financial aid of the Allies,' while against imperialism. enriching the bankers, 'supports' the Comrade Varga's book presents Russian workers and peasants even an utterly incorrect characterization as the rope supports the hanged of the relations between the U.S.A. man."* and dependent countries of Latin Criticism was directed at certain America. The situation is presented statements in Comrade Varga's book in such a way as though during the regarding the colonial question, war these relations were marked by statements that present incorrectly a chivalrous disinterestedness. The the inter-relationships of imperialist U.S.A., we are told in the book, States, colonies, and dependent coun- aided the industrial development of tries. Thus, we find on page 219: the countries of South America by "An absolutely new, unprecedented "giving them the necessary machin- fact in the history of imperialism is ery" (P. 203). The U.S.A., particu- the• almost universal reduction of larly, "furnished the capital for con- financial dependency of colonies and structing a metallurgical plant and dependent countries on the empires, for expanding the rubber production the transformation of certain colo- in Brazil, and for increasing the ex-

* Ibid.., p. 260. traction of copper in various coun-, I CHANGES IN THE ECONOMY OF CAPITALISM 191 tries. It bought up the rubber self-criticism among the economists. extracted in the South American Some comrades, instead of criticizing countries at prices higher than those the errors and effectively discussing obtaining on the domestic markets, the questionable theses of Comrade etc." (Pp. 27-28.) On the next page Varga's book, respectfully called for the author again underscores the fact some sort of "agreement" with the that "the U.S.A. paid in South author, some sort of "please all" America far higher prices for copper formulation. than it did at home." The book fails to show the growing dependence of The discussion represents a posi- the economy of the Latin-American tive event. In the course of it a num- countries upon the monopolv capital ber of most important questions of present-day capitalism were dis- of the U.S.A. # # # cussed. Along with the serious shortcom- Today, when millions of toilers ings of Academician Varga's book, the world over show a rising interest the discussion disclosed the weak in the perspectives of social develop- sides in the work of our economists, ment, and persistently seek an ex- and primarily in the work of the planation of the facts in present Institute of World Economy and events and a way to solve urgent World Politics of the Academy of socio-economic problems, the Soviet Sciences of the U.S.S.R., with respect economists face honorable and re- to theoretical research on the present- sponsible tasks. By pursuing the day stage of imperialism and the study of present-day capitalism, con- general crisis of capitalism. ducted in the light of the Leninist- We must note still another signifi- Stalinist theory of imperialism, they cant result of the discussion. It made will serve the cause of progressive apparent the weak development of mankind. BOOKS RECEIVED Studies in the Development of Capitalism. Maurice Dobb. (International Pub- lishers) New York, 1947. 396 pp. $3.50. Science and Idealism. Maurice Cornforth. (International Publishers) 1947. 267 pp. $2.50. Literature and Art. Karl Marx and Frederick Engels. (International Publishers) •צPP• ?1•8 154 •1947 Art and Society. Sidney Finkelstein. (International Publishers) 1947. 288 pp. $2.75. Culture in a Changing World: A Marxist Approach. V. J. Jerome. (New Cen- tury Publishers) New York, 1947. 94 pp. 35^. Quarantine the Warmongers. William Z. Foster. (New Century Publishers) 1947. 15 pp. 3ff. What Is Socialism? Nemmy Sparks. (Communist Party of Los Angeles) Los Angeles, 1947. 32 pp. 15^. Step-Children of a Nation—The Status of Mexican-Americans. Isabel Gonzalez. (American Committee for Protection of Foreign Born) New York, 1947. 15 pp. Wall Street on the Warpath. Peter V. Cacchione. (New Century Publishers) 1947. 23 pp. Hierarchy Over Labor: Honeycombing the Newspaper Guild. Thomas Bledsoe. A reprint from The Protestant, Nov .-Dec., 1947. 8 pp. ... of the People. (Organizing Committee, Independent Progressive Party of California) San Francisco, 1947. 50 pp. 10^. New Foundations: A Cultural Quarterly By and For the Youth. Volume I, Num- ber 1. (New Foundations Cooperative) New York, 1947. 96 pp. 25^. La Verite sur l'U.R.S.S. (Editions du Parti Communiste Fran^ais) Paris, 1947. 24 pp. 4 francs. Defendrc la Republique, Sauvegarder notre Independance Nationale. Maurice Thorez. Report to the October 29-30, 1947 meeting of the Central Com- mittee of the Communist Party of France. Paris, 1947. 32 pp. 5 francs. Sur la Situation Internationale. Andrei Zhdanov. Paris, 1947. 32 pp. 5 francs. We Fight for Freedom. Evidence submitted by the Communist Party of Pales- tine to the United Nations Special Committee on Palestine. (Central Com- mittee of Communist Party of Palestine) Jerusalem, 1947. 63 pp. Two shillings. "Ma\e certain that this form of treachery shall never endanger us again." With drawings by Gropper. (International Fur and Leather Workers Union) New York, 1947. 32 pp. N. Y. Herald Tribune's 23 Questions About the Communist Party, Answered by William Z. Foster. William Z. Foster. (New Century Publishers) 1948. 31 pp. 10

An incisive study of the ideological straggle in the cultural sphere, including a critical examination of reactionary ideas advanced by various exponents of bourgeois ideology, the people's counter-forces moving toward a democratic culture, and the special role of Marxist cultural workers. Price: $.35

LITERATURE MD ART By KARL MARX and FREDERICK ENGELS

The first collection in English of the writings of Marx and Engels on the foundations of a Marxist approach to art. Selections are included on such subjects as the origins and development of art, art in capitalist society, realism in art, and literary history. Required reading for an understanding of Marxist esthetics. Price: $1.85

ART MD SOCIETY By SIDNEY FINKELSTEIN

A new kind of book about literature, music, and painting, a vigorous and original study of the social roots of art, the germinat- ing power of folk art, form and content, the artist and his audience, main currents in the history of art, and the struggle for a living culture. Price: $2.75

NEW CENTURY PUBLISHERS 832 Broadway • New York 3, N. Y. SCIENCE AND IDEALISM By Maurice Cornforth A clear, objective exposition of the views of philosophers from Francis Bacon and Thomas Hobbes, through British empiri- cism, to the schools of "modern logic" and the logical analysis of science" as represented by Bertrand Russell, Wiggenstein, and the logical positivists. PRICE $2.50 STUDIES IN THE DEVELOPMENT OF CAPITALISM By Maurice Dobb An examination of the main factors which have determined economic development in modern capitalism; the decline of feudalism, the beginnings of the bourgeoisie, the rise of capital and investment, forms of capital accumulation and growth of monopoly, the formation of the proletariat, and the influence of the labor market on economic and political policies. PRICE $3.50 NOTES FROM THE GALLOWS By Julius Fuchik The final testament of a Communist leader of the anti-Nazi underground movement in Czechoslovakia, describing his Golgotha, his mental and physical tortures until the last moments before his death on the gallows. It is permeated with the spirit of struggle and confidence in the ultimate triumph of the people over fascism. PRICE $.60

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