THE SOCIALIST PARTY CONVENTION By GENE . DENNIS Social Legislation in Massachusetts P. FRANKFELD The Schools and the People's Front RICHARD FRANK Farm Problems and Legislation ROBERT CLAY Steel Workers on the March B. K. GEBERT The Railway Labor Act JACK JOHNSTONE Youth in Industry D. DORAN Tv\'ENTY CENTS SPECIAL OFFER A free copy of Earl Browder's WHAT IS COMMUNISM? cloth edition, list price $2.00, will be given with every subscription to one of the following periodicals: The Communist A monthly magazine issued by the Communist Party of the U.S.A., dealing with the most vital social, economic and political issues of the day. Single copies 20 cents. ~ubscription $2.00 The Communist International Monthly publication of the Executive Committee of the Communist International, containing articles by outstanding leaders of the world Communist Parties. ;ingle copies 15 cents. Subscription $1.75. 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Who sets the stage for strikes, for anti-labor laws, for wars, who gives the cues, who directs the plot. We give you the news that's different and you can't get elsewhere. Our subscription list includes thousands of doctors, social workers, actors, aviators, machinists, office workers, artists, writers, lawyers, teachers, and other professional people. But frankly, we don't reach a wide enough audience yet. That's why we want you to fill out the subscription coupon. NEW MASSES VOL. XVI, No. 5 MAY, 1937 7he COMMUNIST A MAGAZINE OF THE THEORY AND PRACTICE OF MARXISM·LENINISM PUBUSHED l\10!'/THLY BY THE COMMUNIST PARTY OF THE U.S.A. CONTENTS Review of the Month A. B. The Socialist Party Convention GENE DENNIS 401 Social Legislation in Massachusetts P.FRANKFELD 421 The Schools and the People's Front RICHARD FRANK 432 Farm Problems and Legislation ROBERT CLAY Steel Workers on the March B. K. GEBERT The Railway Labor Act: A Barrier to Militant Unionism JACK JOHNSTONE Youth in Industry D. DoRAN Entt'red as SI"Cond chtss matter NOt!t'mher 2, 1927, at the Post Office at New York. N. Y., undrr the Art o( 1\larch J, 1879. St'nd cht'clr.s, mollt'Y ordt'r5 ami corresfm11de11ce to THE Co\f\IUl'\IST, 1'.0. nox 14<'1, Sta. D (so E. qth St.), New York. Sullscription rates: $2.00 a year; $1.00 for six months; foreign and Canada $:1..50 11 year. Single copies .20 cents . ...... 209 9lh A: D. RESEARCH LIBRARY 131 WEST 97th ST., N. Y. TWO NEW PAMPHLETS OF WORLD SIGNIFICANCE MASTERING BOLSHEVISM by JOSEPH STALIN Price 5 cents • Orgcmizational Problems ol the Communist Party by A. A. ZHDANOV Price 1 0 cents Reports delivered to the Special Plenum o£ the Central Committee, C.P.S.U., March 3-5, 1937 • Order from Your Local Bookshop WORKERS LIBRARY PUBLISHERS P. O. Box 148, Sta. D. New York, N. Y. Complete Catalogue on Request REVIEW OF THE MONTH Economic and Political Perspectives. Wage Increases Do Not Raise Production Costs. Rising Monopoly Prices and Cost of Living. An Approaching Boom Leading to Crisis. How Shall We Prepare1 The Politics of Present Economic Discussions. Defend Right of Sit-Down. Resurgence of Reaction and Red-Baiting. New York Times Plays a Game. Past and Present of Industrial Unionism. Read Foster's New Book. Compromises and "Compromises". Why Democracy in Unions1 Outlook fer Socialist Party. Stalin Defines Present-Day Trotskyism. A Whitewashing Expedition in Mexico. Lessons From Stalin's Report and Summary. Communist Party Recruiting and Press Czrcula- tion. Greetings to Lincoln Brigade. A New Phase zn Spanish War for Democracy and Peace. NFLATIONARY tendencies, rising With all these vital limitations, capi­ I prices eating up wage increases and talist economy here is still on the up­ a maturing economic crisis-these arc grade. Which means that the time important and significant develop­ continues increasingly favorable for ments in present-day America. Labor trade union organization, for struggle and its allies should discuss these de­ to ~ecure wage increases, shorter hours. velopments with a view of formulating and a general raising of the standards common policies and programs of ac­ of living of the toiling masses. tion on the basis of a clearly ascer­ Note, however, must be taken of the tained economic and political perspec­ fact that the monopolies, whose price tive. Yet one thing has to be empha­ structure has suffered least in the crisis sized right at the outset: American years, are now recklessly driving up capitalist economy is still on the up­ the prices of their commodities, using ward grade. It is beginning to manifest recent wage increases as an excuse. In some of the symptoms of what is popu­ this way, the price structure of the en­ larly known as a "boom", although tire economy tends to rise inordinately, proceeding unevenly and marked by with the result that wage increases are several specific characteristics, of which fast eaten up and the relationship be­ the 1o,ooo,ooo unemployed, the con­ tween farm prices and industrial prices tinuing agrarian crisis and the lagging tends to become increasingly more un­ foreign trade are the most outstand­ favorable for the mass of the farming ing. population. !87 8ss THE COMMUNIST That the monopolies are using wage industries, to raise wages, shorten increases merely as an excuse to fur­ hours and decrease speed-up, while ther increase prices can be shown both bringing forth more urgently and theoretically and practically. Marx practically the demand for a guar­ has proven long ago .that wage in­ anteed minimum yearly income, labor creases do not raise the cost of produc­ should at the same time take the initi­ tioiJ as measured by the expenditure of ative in bringing about united actions labor (Capital, Vol. III). If the pro­ against high monopoly prices by the ductivity and intensity of bibor remain workers, toiling farmers, middle class the same, that is, if hours, tools and consumers and small businessmen. machinery, speed-up, etc., remain un­ But this is not all by far. The rapidly changed, then the only effect a wage mounting price structure taken to­ increase has is to cut down the surplus gether with the perspective of an ap­ value extracted from labor by capital; proaching new crisis is sharpening the it decreases profits, although not al­ struggle around a number of other ways the rate of profit. issues in which labor and its allies are Practically it can be shown that the vitally interested. Such are: taxation, monopolies kept on increasing prices social insurance, price regulations, re­ much before the present strike wave lief policies and appropriations, the began to compel wage increases. They budget, etc. It is evident that the po­ increased prices while wages remained litical struggle in the country around stationary, whereas labor productivity these issues is increasingly becoming has risen considerably. In the case of more acute, with reaction taking the steel, for example, the Labor Research initiative. It is also evident that the Association has shown "how the recent great political realignment now in steel wage rise can be easily absorbed process (and in the face of the Con­ by steel companies without any ad­ gressional elections of 1938, not to vance in prices" (Steel and Metal speak of 1940) will be vitally affected Notes, March, 1937). by the policies of labor and its allies The same source (Economic Notes, on these issues. April, 1937) cites Standard Statistics It is important to ascertain as far Co. estimates to the effect "that net as possible the immediate economic profits of leading corporations for the perspective. From the available eco­ first quarter of this year will be at least nomic indexes it would appear that 50 per cent over the 1936 first quarter American capitalist economy is enter­ level" and that "steel profits in 1937 ing very unevenly into the so-called will be far above the high record of prosperity phase of the economic 1936". cycle, usually called a "boom". This Clearly, the people's case against the phase of· the cycle is, as a rule, very monopolies for their inordinate and short and leads directly into crash and reckless driving up of prices is com­ crisis. The capitalist press does not plete. Equally complete and urgent is hide its worries and anticipations. The the need of a concerted struggle against Roosevelt administration, including laigh monopoly prices. While intensify­ the President as well as Eccles, Wallace ing manifold the drive to unionize the and Roper, have signalized the ap- REVIEW OF THE MONTH proach of such a perspective in variouo; crisis. Equally, the time element is be­ ways. Voices have been heard from the ginning to play an important part. Department of Commerce forecasting 2. Social insurance in all its phases a leveling off in industrial production must be fought for more energetically.