The Daily Worker Newspaper, December 26, 1928, Page 3

+ in the history of imperialism. ge : ot oe es DAILY WORKER, NEW YORK, WEDNESDAY, DECEMBER 26, 1928 Page Three THESES OF C.E.C . OF WORKERS (COMMUNIST) PARTY On the Economic and Political Situation and the Tasks of the Party HEADLONG TO THE NEW WORLD WAR, “#* The most outstanding feature of the recent development of the international situation determining the course of the policies of the United States is the unprecedented rapid growth of Anglo-American antagonism. The menace of a second world war is looming up bigger than ever before since 1914. The many-sided antagonism on all fronts between Great Britain and the United States of America is today the axis of the imperialist world situation just as the antagonism be- tween Germany and Great Britain was in 1914. A whole series of events have proved the absolute correctness of the analysis of the Sixth World Congress of the Communist International: “The transference of the economic center of capitalism from Europe to America and the growing efforts of Europe, now re- covered and trustified to liberate herself from the economic domination of the United States,...cannot but lead in the final analysis to another explosion.” The tremendous growth of the power of American imperialism, the all-round technical revolution which is taking place in the United States, the acceleration of the development of the monopolistic ten- dencies of capitalism in America bring into bold relief the growing disproportion between the economic growth and power of American imperialism and its “lack” of colonies and its “insufficient” military preparedness. The economic decling of British imperialism is in sharp contrast with the political power of the British Empire, with its huge colonial monopoly. The final struggle between the two imperialist giants to “solve” this disproportion is inevitable and can only be consummated by the one means capitalism knows to solve its contradictions—by force, by war. The export of American capital was and is the basis for European stabilization of capitalism. The investment of billions of American capital in Europe have proved to be veritable dragon-teeth for Amer- ican imperialism; sown, they spring up in the form of a harvest of renewed technique, increased trustification, growth of armaments of the European powers directed against American imperialism. The Anglo-French alliance was renewed, uniting the biggest navy on the seas with the biggest army in the world, directed first and foremost against the most powerful American imperialism. Great Britain and Japan get together in an agreement over China which turns its edge not only against the Soviet Union but also against the United States. A new attempt, more intensive than ever before, is being made to rearrange reparations and international debts, in order to bring about a united front of all imperialist debtor powers against the world creditor, the United States. Tariff conflicts are arising everywhere. The United States government is making preparations to increase its already high tariff, which is one of the most aggres- sive weapons of American trustified capital against its competitors. Under the pretext of “safeguarding” weak industries Great Britain is gradually introducing a protective tariff system. There is a reap- pearance of the tariff quarrel between America and France. United States imperialism is taking decisive steps toward a com- plete domination of Latin America. The conquest of the Chinese market plays a growing role in the reckoning of American imperialism. The recognition of the bloody Nanking government of the Chinese bourgeoisie is not- only a blow directed against Great Britain and Japan but aims especially at subduing the workers’ and peasants’ revolution in China, which is slowly but surely gathering its forces, The growing resistance against the domination of British imperialism is shown by maturing forces of the colonial revolution in India. The bulwark of the proletarian world revolution ,the Union of Socialist Soviet Republics, is making big headway in building up Socialism, in the realization of industrialization, in the collectivization of agriculture, in its cultural reorganization. At the same time the counter-revolutionary, imperialist forces are everywhere preparing for an attack against the Workers’ Republic: the exposure of the ‘French military plots with Poland and the Balkans; the formation of the Anglo-German bankers’ committee for a financial boycott of the Soviet Union; the statement of Kellogg against the recognition of Soviet Russia; the international campaign of wild rumors and sland- ers about peasant revolts; Ukrainian secession, and Party split in the Soviet Union. The international labor movement shows a marked ten- dency of the swinging of the masses to the left; at the same time a, moving to the right of the reformist trade-union bureaucracy and renegade social democracy. In America the tendency toward the complete transformation of the American Federation of Labor into an important war machine of American imperialism hes become an ac- complished fact. The A. F. of L, serves today as the model for the whole capitalist world as a machine to poison the minds of the working class, The tendency toward the complete transformation of the socialist party of America into a petty-bourgeois organization has now become an accomplished fact. Despite its ebb and flow, unemployment remains a permanent, chronic phenomenon, an organic defect of world imperialism. The “conservative landslide,” the big temporary victory of finance capital achieved by the election of Hoover, marks a turning point in the life of American imperialism. The “Hoover era” means the con- summation of gigantic war plans, the unheard-of growth of imperi- alistic antagonisms, hostility towards the Soviet Union, the final at- tempt to complete the conquest of Latin America, arousing the grow- ing resistance of the Latin American people, increased attempts at financial penetration and partition of China, increased bribing of the labor aristocracy, and increased attacks against the working class The “new Hooverian age” means the tremendous growth of general capitalist reaction, the sharpening of outer and inner contradictions, the sharpening of the class struggle, the growing discontent and re- sistance of the proletarian masses. . THE UNITED STATES STRUGGLE FOR COMPLETE WORLD HEGEMONY 1. The Sharpening of Anglo-American Antagonism. Nothing characterizes more clearly the whole imperialist world situation than the sharpening and deepening of the struggle between British and American imperialism. This fight for the domination of the world occupies the central place in the whole capitalist world situation, The struggle for the redistribution of the world market, of the colonies, of the sources of raw material, and of military means is going on feverishly in every corner of the world on every issue. Rubber, cot- ton, oil are playing the principal role in this fight. The British- | American oil struggle is the bitterest war of competition ever known The newly revived struggle over re- parations and inter-allied debts is first and foremost a struggle be- tween British and American imperialism. Great Britain endeavors to expose the United States in its real role as the Uncle Shylock of the world. America tries to arouse “moral indignation” against the European governments which are arming themselves with America’s money. Great Britain is making desperate efforts to keep up with the United States in the export of capital. But American imperialism is crowding out Great Britain in every section of the world from Latin America to Poland and the Balkans. Great Britain is suffering the heaviest losses in its influence and trade in Latin America. The United States is paying increased attention to Africa, invades even India, and weakens increasingly the chain which links the Dominions to the British Empire. Canada is already virtually an American pos- session. The struggle for Australia has only begun. } An increasingly furious race for bigger navies and more power- ful armless is developing on the basis of the economic rivalries. Since the failure of the Geneva conference naval competition between Great Britain and the United States and between the second rank of the great powers—Japan, France, Italy—is on the order of the day. America, with her newly won economic supremacy, wants to ove! throw Great Britain’s naval supremacy. Blow follows blow in this struggle. The Anglo-French naval accord against the United States ‘was answered by the American note, which is unquestionably the sharpest diplomatic document since the world war. The tenth an- niversary of the Armistice was celebrated by Coolidge with the sharpest war speech of recent years. The speech was justly char- acterized as an “ultimatum to Europe,” and this imperialist ultimatum was backed up by tlte statement of the General Board of the Navy declaring for the most complete policies of naval preparedness. The Naval Board proclaimed the principle of an American navy second to none, but Coolidge’s speech went even one step further, demanding the biggest navy for America. Coolidge’s last message and last budget submitted to Congress—a worthy crown to the presidential eareer of the president-strikebreaker—pleads for the most powerful air fleet and contains the hugest appropriations for th army, navy, tnd aviation é Submitted by Comrades Gitlow, Lovestone and Pepper. Adopted by the Plenum of the Central Executive Committee, December 19, 1928. SUMMARY OF CENTRAL COMMITTEE THESIS *Headlong to the new world war”—this is the keynote of the thesis of the Central Executive Committee of the Workers (Communist) Party. The main features of the thesis are as follows: 1. The United States struggles for complete world hegemony. 1. The sharpening of Anglo-American antagonisms. 2. Attempts at subjugation of Latin America. 5. Fight for the Far-Eastern markets. The delayed economic crisis. 1. The industrial revolution in the South, 2. Intensified exploitation of Latin America. 3. Increased foreign trade with Europe. Structural changes in American economy. The most important trends analyzed here are: tech- nical revolution; electrification; transformation of transportation; establishment of new industries; capitalist offensive against the workers; accumula- tion, concentration and centralization of capital; com- petition between industries; development of two kinds of profit; installment selling in the retail trade and hand to mouth buying in the wholesale trade; organization of the world trade apparatus; exten- sion of finance capital; trustification of banking; growing rentier class, Organic chronic unemployment. Simultaneously the big imperialist robber powers are erecting a smoke-screen of pacifist phrases, “good-will” speeches, get-together meetings, treaties of “friendship.” The League of Nations continues to fulfill its historic mission of deceiving the toiling masses, consti- tuting, under the pretext of an instrument of peace, the tool of the interests of British imperialism. The Kellogg Pact is the American counterpart of the European League of Nations. The Kellogg Pact is the most infamous world-historie fake: it is the quintessence of bourgeois pacifism, which—varying Marx’s words—is the modern “opium of the people.” Under the cover of the pacifist smoke-screen there are already being formed new alliances of the imperialist powers for the coming world war. The Anglo-French alliance is sup- plemented by an Anglo-Japanese agreement. The United States is trying to mobilize her vassal states, the puppet governments of Latin America. The struggle is already on to win the support of Germany. The fight on the reparations question is to no small extent a fight for enlisting the revived German imperialism as an ally. The much- vaunted English-American “cooperation” belongs to the past. The jingoist dream of the blood brotherhood of the big English-speaking nations has been replaced by a sober awakening to open hostility. The common English language serves not as a bond but as a means of clearer expression of imperialist antagonism. The old pacifist bab- ble that “war is unthinkable” between the “Anglo-Saxon” nations is replaced by open war talk, which shows that the jingo imperialst elements of both countries are doing nothing but thinking about war In answer to Coolidge’s preposterous ultimatum to Europe the British capitalist press already compares him to Kaiser Wilhelm; and Field-Marshal Robertson already likens America’s present tati- tude to that of Germany in 1914. Anglo-American rivalry has al- ready manifested itself as a tendency during the last few years, but now this basic antagonism of the imperialist world appears without any camouflage in open hostility in the sharpest possible form. United States imperialism plays the most aggressive role in this struggle. It fights not only for a navy second to none but for the largest navy in the world. It fights now openly for the supremacy of the seas. It aims at the destruction of the British Empire. The growing power of American imperialism is today the greatest menace for the world. It is the first and foremost factor for a new world war. It leads inevitably to the greatest catastrophe. 2. Attempt at Subjugation of Latin-America. United Siates im- perialism is concentrating its efforts on consummating a complete economic and political domination over the Latin-American countries. It is wiping out in an increasing degree all foreign competition from Latin-America. It uses all means of imperialist brutality and bribery to break down the resistance of the nationalist movements in the Latin-American countries. It is attempting to turn Latin-America into an outpose of American imperialism against other imperialist powers. Large sections of Latin-America are already colonies and semi-colonies of the United States, but the new aggressive policy of United States imperialism attempts to transform Latin-America as a whole into colonial hinterland of American capitalism. The Monroe Doctrine, which serves to keep out competition of other imperialist powers from Latin-America, is being supplemented by the new “Hoo- ver doctrine,” which is the cloak for the complete conquest of Latin America. A wide range of methods is being used by United States im- perialism to accomplish its domination; brazenly open military occu- pation, setting up of puppet governments, deals with the native bour- geoisie or with parts of the native bourgeoisie, bribing through loans, increased investments, supervision of elections, open interven- tions, virtual annexations, complete annexations, Pan-American ccn- ferences (including those of the Pan-American Federation of Labor) to forge all American countries together under the leadership of the United States against Europe. United States imperialism is per- sistently and rapidly pushing out the economic and political influence of Great Britain from Latin-America, and is assuming more and more a monopolistic position in expropriating the natural resources of Latin-America. Hoover's Latin-American tour is the summing up of the new aggressive policies of United States imperialism toward Latin-America. Hand in hand with the growth of United States aggressiveness in Latin-America goes the growth there of the forces of mass resist- ance. The governments and political parties of the national bour- geoisie in the Latin-American countries are making in an increasing degree compromises with United States imperialism. In many cases the governments are but open agencies of United States capitalism. But even those national governments which have not yet sold out to Washington manifest an attitude of vacillation and cowardice and betray in a growing degree not only the interests of the workers and peasants but the national independence of the Latin-American coun- tries. The selling out by the bourgeois and petty-bourgeois Latin- American governments increase the independent fight of the workers and peasants. Workers’ organizations, peasants’ leagues, student leagues, branches of the Anti-Imperialist League spring up every- where. Sandino’s small but heroic army still holds out against 7,000 marines of United States imperialism equipped with the most up-to- date killing machinery after more than a year and one-half of fight- ing. The struggle of the Communist Parties in Latin-America is gaining momentum. The Communist Parties of Cuba and Paraguay, the sogialist party of Ecuador, the revolutionary socialist party of Colombia, joined the ranks of the Communist International at the recent Sixth World Congress. The brave strike Rruggle of the 30,000 The Hoover election—a victory of capitalist re- action. Class relations on the eve of the elections. Relations of the political parties. Causes of the Hooyer victory. Outstanding features of the political struggle and the resistance of mass forces, the trend of radicalization. 5. Changing class basis and function of parties. State capitalistic tendencies. The fraud of capitalist “conquest of poverty.” Military preparedness and pacifism. Fight against social reformism and» for a mass Communist Party. Problems, achievements, shortcomings, and tasks of the Party. Under this chapter the following subjects are analyzed: organization of the unorganized and trade union work; election campaign; struggle against social reformism, work among the Negroes; labor party; unemployment; work among farmers; Party organization: ideological level; work among women; Young Workers League; Labor Defense; Coopera- tives; Party Unity. Struggle against the Right danger and Trotskyism. Contradictions of Amer: struggle and the Party’s unity. n capitalism—outlook for basic line. Need for Party Colombian fruit workers—their determined resistance against the joint attempts of the American United Fruit Company and the troops of the Colombian Government, the Sacco-Vanzetti demonstrations in Latin-America, and the protests against Hoover’s imperialist visit —are other signs of the growing spirit of militancy and resistance. The concentrated attempt of United States imperialism to trans- form Latin-America into the hinterland of American capitalism is setting into motion powerful forces against United States imperialism, forces of the nationalist movements of the 80,000,000 people of Latin- America, forces of the workers and peasants. United States im- perialism, in increasing its power by the conquest of Latin-America, is itself creating the forces which help to undermine the very founda- tions of its power. The most recent clash between the so many times “definitely defeated” Sandino, the bloody struggles in Magdalena Province of Colombia, the armed clash between Bolivia and Paraguay -—manifest clearly the actual presence of imperialist “colonial” war as well as the increasing danger of World War growing out of the aggressive policies of United States imperialism. 3. Fight for the Far-Eastern Markets. The conquest of the Chinese market is the foremost aim of American imperialism in the Far East. A combination of direct military intervention for the par- tition of China and cooperation with the Chinese bourgeoisie is the main feature of the policies of American imperialism in China today. Unceasing struggle of all imperialist powers against each other, groupings and regroupings of alliances—Anglo-Japanese agreement against the United States, but American-Japanese under tanding for the financial penetration of Manchuria—characterize the various maneuvers of the imperialist powers. United States recognition of the Nanking Government, which is covered from top to bottom with the blood of the Chinese workers and peasants, the appointment of American economic and financial experts and advisors, aim to secure a growing share of China’s markets and raw materials for Americar capitalism. f In the Philippines American exploitation is rapidly growing. The open military rule of General Wood is being replaced by the Stimson Plan, which is based upon the bribing of the upper stratum of the native bourgeoisie. The general policy is the dropping of all bars to American imperialism, the abolition and annulment of the land restriction law, the establishment of huge rubber plantations, the in- corporation of the native bourgeoisie in the imperialist system—these are the newest “achievements” of American capitalism. But, on the other hand, there is a growing movement of protest against the increasing penetration of the Philippines by American imperialism and the betrayal of the eause of Philippine independence by the native bourgeoisie. There is a growing cooperation between the revolutionary movement led by the Communists in the Philippines and the forces, of the Chinese Revolution and the Red International of Labor Unions. THE DELAYED ECONOMIC CRISIS The spokesmen of American capitalism, boast about the ‘in- vincibility” of American prosperity. A whole series of theories are being put forward to “explain” the “miraculous secret” of American capitalism, which in the midst of an ebb and flow of prosperity and crisis in the other capitalist countries is able to maintain its un- interrupted prosperity. “Theoreticians” of American capitalism are even going so far as to assert that conscious measures of trustified capital, planned interventions of the Federal Reserve Bank, “high wages” can prevent the recurrence of industrial crises. The crisis which would put at least a temporary end to American prosperity has already been due for quite a long period. But it has been de- layed, though by no means prevented as apologists of imperialism maintain, It is necessary to give an account of the reasons for this delay. The 1920-21 crisis, which shook the foundatins of American capi- talism, was followed by a period of prosperity, which lasted from 1921 to 1924, Then, in the middle of 1924, there followed a short- lived depression, which was replaced by renewed prosperity, which lasted from the second half of 1924 until the middle of 1927, Then a depression set in. The resolution of the May, 1928, plenum of the CEC gave the following evaluation of the depression: “Though the depression gives every evidence of continuing for some time and though there are many indications of the tendency to deepen the present depression and develop an in- dustrial crisis, there are insufficient facts at hand to indicate to- day that we are facing a crisis of the dimensions of the 1921 crisis.” But at the time the May Plenum resolution was written the de- pression had already reached its bottom and a new ypward trend hand begun. Since March, 1928, the volume of production has been steadily increasing. The depression did not develop immediately into a crisis, but was transformed into a new wave of prosperity. But it would be wrong to say that it is an all-around prosperity. The coal and textile industries are still lagging behind. Agriculture is in many respects in bad shape. But the fact remains that the 1927 depression did not develop into an industrial crisis. The crisis has been delayed, but, despite all the babble of the capitalist theoreticians and bankers, the crisis has not beefi prevented, and the recent break- down of the New York Stock Exchange is perhaps the first storm signal of the new devastating cyclone. The following three reasons are mainly responsible for the de- laying of the crisis: » v 1, The chief reason is the rapid industrialization of the South, 2. Intensified exploitation of Latin-America. 3. Increased foreign trade with Europe. “i i 1. The industrial revolution in the South. The extremely rapid industrialization of the South—which has been going on for the last score of years, but which very recently is being accelerated with an unprecedented speed—is first and foremost responsible for the delay- ing of the industrial crisis. The industrial revolution in the South, which amounts to the creation of a new Ruhr of America, was not sufficiently evaluated by those analyses which predicted the early coming of the crisis. The industrialization of the South worked in the following three ways: 1, It created an outlet for the “export” of capital from the northern capitalist centers of the United States. * 2. It opened up a tremendous market of 40,000,000 popula- tion for manufactured products of the trusts of the northeast. 3. Based on cheap labor and water power, a most modern large-scale industry has been established in the South which has increased the competitive capacity of the United States in the world market. The first period of the industrialization of the South assumed the character of developing an extensive light industry, first of ali textile. The pregent, second period is of a different character. Its main feature is the building up of heavy industries—coal, oil, potash, electrical power, machinery, especially heavy transmission machinery. The significance of the industrial revolution in the South ean he correctly estimated only if the former “colonial” character of the South is taken into proper consideration. Before the industrial revo- lution the Solid South—with its Negro share-croppers, half-feudal, half-slave conditions, big plantation owners, its political system still bearing the earmarks of the period of slavery—constituted virtually a colony within the body of the United States of America. (Large sections, which are not touched by the new industrial revolution, still have in many respects a colonial status, despite the fact that they ana within the most powerful imperialist country in the world. The industrialization of the northeast of the United States was based on coal and steam. The new industrial revolution in the South is based on water power and electnicity. The industrialization of the northeast assumed he form of building individual factories, and only in a later stage of dévelopment did company towns, mill cities, mining camps crystallize around the plants. The industrial revolution in the South starts out with the building of whole factory towns, mill vil- lages, and industrial cities. Glorified company towns for the workers with all the sophistica- tions of the most modern methods of exploitation and complete tax- exemption for the capitalists—this is the situation in the industrialized South. Cities, advertising, offer to new industries: “ample American labor; freedom from strikes.” The American-Plan, open-shop con- ference, held November 15-17, 1928, emphasized proudly: “The South is a mighty bulwark in defense of the American open shop.” A new working class has been created in the South, almost en- tirely American, English-speaking. The eastern division of native- born and foreign-born labor is replaced in the South by a division be- tween Negro and white workers. The capitalists are doing everything to intensify prejudices against the Negroes in the minds of the white workers. The proletariat of the South receives the lowest wages, works the longest hours, is enslaved in every respect. The last con- vention of the American Federation of Labor, held at New Orleans, started a fake organizational drive to embrace the workers of the South. The labor bureaucracy will never seriously tackle the question of the organization of the South, which is one of the biggest prob- lems for the American working class. The first effect on the Ameri-+ can working class of the industrialization of the South—of the shifting | of the center of the coal and textile production to the South—v-s the breakdown of union conditions in the older central coal fields and the endless series of wage cuts for the textile workers in New Eng- land. But this is only the first effect. In the long run the industriali- zation of the South, the creation of a huge; ‘new proletariat in thes* Southern section of the country will strengthen immensely the power. of the American working class and will play a decisive role in the overthrow of American capitalism. 2. Intensified exploitation of Latin-America. The second cause of the delaying of the crisis has been the increased exploitation of Latin-America by the United States. Recent developments have shown an unprecedented ‘opening-up of the Latin-American countries, _ which are becoming increasingly integral parts of the world market. - The direct effect of this on the economic conditions of the United States were: 1. Possibilities for an unprecedented increase of export of capital. 2. Rapid growth of export of industrial commodities. id The growth of the export trade to the Latin-American countries has had all the greater effect on the economic situation of the United States because it consists first of all of manufactured goods, in a much larger degree than the United States exports to Eurepe. The export of United States capital to Latin-America is characterized by the following two features: : 1. It is directed more and more to corporation investments and” not to State loans. In other words, it flows into production and net to cover expenses of armaments or armies. 2. It does not serve to establish manufacturing, but is invested in the opening up of natural resources (minerals, oil, etc.) In other words, it does not create a competing manufacturing industry. Quite the contrary: it opens the way for the export of United States manu- factured commodities. 3. Increased foreign trade with Europe. The present relative stabilization of Europe has been achieved by American capital and is maintained by further American capital export. Stabilization of. European currencies was completed through the recent export of over ‘ $500,000,000 gold. The reestablishment of the gold basis of European currencies increases the possibilities of purchasing manufactured com- modities of the United States by the European countries. These three factors have been mainly responsible for the pro- longation of the present industrial prosperity, for the liquidation of the 1927 depression, and for the delaying of the crisis. These factors have made possible the opening up of new markets to keep pace with increased production—despite the tremendous growth of the forces of production, the general increase in the productive capacity of American industries, the intensive rationalization and speed-u», and the continual introduction of improved labor-saving machin ad other devices of mass production. The opening up of the South as a new market and place for capital investment, the growth of the Latin-American market, the possibilities of an increased export to Europe, show that Ameritan capitalism has not yet exhausted all its reserves, that it has been ™ able to overcome, temporarily, the shrinkage of the home market and to increase extensively its hold on the world market. The crisis has been delayed, but it has not been prevented. The present prosperity itself crgates the factors which will pre- cipitate the crisis: the wild stock “exchange speculation, which is reaching its climax in the “Hoover boom”; the wide extension of credit; the “sick” industries, like coal and textile, which already suffer a crisis of growth; the very extension of installment buying, which will make the crisis when it comes deeper and more general; the very ~ industrialization of the South, which, with its powerful growth of forces of production, will be one of the most effective competing factors; the disproportion between production and consumption, which is part of the general anarchy, of the general disproportion of the various branches of capitalist production; the gap between industry and agriculture, which is still wide and is getting wider, despite the technical progress in agriculture; consumption limitations of the toiling farmers and workers; the increased competition of foreign — powers in every corner of the world market—all these factors work — together to contract the market for American imperialism and to bring about the next crisis. Y STRUCTURAL CHANGES IN AMERICAN ECONOMY Deep-going structural changes are taking place in the capitalist system of America. These changes are partly the results of the st1 tural changes in the world system of capitalism, of the shifting | the economic center of the world from Europe to the United St partly they grow out of the inherent inner contradictions of capitalism. The most important features of these structural in American economy are the following: A powerful technical revolution is taking place in the Continued on Next Page