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Page Four 2 Ae Kt Ny The Political Report of the Central Committee to the XVI. Party Congres of the Communist Party of the Soviet Union Il. The Increasing Progress of New York 6-28 Union Square at 24-28 1) DAIWOREK. NOY Daily 52: Worker Marh Sy mail everywhere: a SUBSCRIPTION RATES: One year $6 ix months $3; two months $1: excepting Boroughs of n and Brous, New York City, and foreign, which are: One yr. $8: six mons. $4.60 ge Central Organ of the Cou. the Building-Up of Socialism and the Inner Situation of the Soviet Union, (Continued) zi | 5. The Dominant Position of Socialized Indus- | try and Its Rate of Growth The development of our national economy is towards industria But over its capialist forms of our industrializa above The characteristic f tien con ts beit the over the p sts of of the sociali ate capita ization, ensuring tr sector .of in the small tradi nd capitalist sector. Now a few data on the growth of capital nvestment and on the gross production of the sectors: ' a) A of the growth of capital in- | vestment of the sectors yields the following: Socialist secto In 19: 1270 million roubles; in 1 8, 1614 million roubles; in million. italist sector: in 1926- 27, 63 million rouble 64 million; in 1928-29, 56 million; in 1 , 51 million. This means, in the first place, that capital investment on the part of the socialist sector of industry has more than tripled in that time. (335 per cent.) { means in the second place that the capi- tal investments of the private economic and capitalist sector have declined by one-fifth (81 per cent) in the same time. | The private economic and capitalist sector is | living at the expense of old capital and is mov- ing onwa rdto decay. }) A survey of the growth of the gross pro- duction of the sectors shows the following: Socialized sector: in 1926-27, 11,999 million s 28, 15,389 million; in 1928-29, 18,903 million; in 1929-30, 24,740 million. Pri- vate economic and capitalist sector: in 1926-27, 4043 million roubles; in 1927-28, 3704 million; in 1928-29, 3389 million; in 1929-30, 3310 mil- lion roubles. This means, firstly, that the gross production of the sc ialized sector of industry has more than doubled in three years (206.2 per cent). ' 1928-29, 2046 million; i Private trading and It means, secondly, that the gross production of the industry of the private economic and capitalist sector has sunk by almost a fifth (18.9 per cent) in the same period. If we consider, not the whole of industry, but only the large seale industry (census in- dustry), taking this again in sectors, we find | | the viewpoint of its optimal alternative, show the following proportions between the social- ized and the private sectors: The specific weight of the socialized sector in the produ tion of the large scale indu: ry of the country 6 per cent; 3 per cent. The specific weight of the private economic sector in the production of the large scale in- 2.3 per cent; , 14 per cent; in 1928-29, 0.9 per cent; in 1929-80, 0.7 per cent. Tt will be seen that the capitalist elements have fallen to, a very low level in large scale industry. It is clear that the question of “Who whom?” the question of whether socialism is to defeat the capitalist elements in industry, or vice versa, has now .been fundamentally answered in favor of the alist forms of industry. It is finally and irrevokably answered (Applause). c) The data on the tempo of development of the state industry controlled by the Su- preme National Economie Couneil, during the period under report, are especially interest- ing. If we take the gross production of the socialist industry systematically planned by the Supreme National Economic Council for 1926- 27 at 100, we find that in 1927-28 the total production of this industry had reached 127.4 in 1928-29, 158.6; in 1929-30, 209.8. This means that the Supreme _National Sconomic Council has more than doubled, with- in three years, the production of its system- atically planned industry, which comprises all branches of industry and the whole industry. It must be admitted that there is no other country in the world able to record such a speed of big industrial development. This circumstance justifies us in speaking of the realization of the Five-Year Plan in four years. ~The Negro Masses and the War Danger By R. B. Y laa Negro workers and farmers have weighty | reasons to be opposed to a new imperialist war. Their super-exploitation and cruel op- pression, expressed in the denial of most ele- mentary political rights and enforced by lynch- ings and terrorism, is only further intensified by a war. After hundreds of years of slavery and exploitation they are today a people with- out a country, without political, social or. eco- nomic rights, an outcast national minority, kept in darkness, fooled, betrayed and “kept in their place” by the iron heel of the lynch law of the white exploiters’ terrorism. War for the Negroes will mean extension of the whole system of discrimination to the bat- tlefront. Stern and merciless white masters’ | martial law will crush every protest against their intolerable positton. And if a few Negro traitors are given an officer’s uniform for the purpose of leading the Negro masses in | slaughter, the Negroes must know that the army is the army of the white exploiters and the imperialist war will be an additional means | for the further enslavement and deeper exploit- ation of the Negro masses. The struggle of the Negro masses must be directed against the whole system of imperial- ist exploitation. The Negro toiling masses have been robbed, exploited and oppressed for 300 years by the same capitalist class that con- scripted them for the last World War, by the same class that today oppresses and merciless- ly exploits them on the cotton plantations, in the rice fields, as well as in the factories and mines, The system of lynching, terrorism and dis- crimination is not an accidental expression of cruelty or ignorance of the white people, but a carefully planned and organized means to keep 12 million people in a position where their blood and sweat can be coined into gold by the greedy, white landlords and capitalists. The Negroes are denied the most elementary political and civil rights so that they may not use these legal means to resist the cruel, super-exploitation to which they are subjected. The Negro tenant-farmer, may not sell his crops because the white landlord demands their right as an additional and extra means of ex-. ploitation and robbery. The poor Negro farmer is denied the use of ballot so that he may not repudiate the white exploiters who sanc- tion and encourage lynching. The whole system of race discrimination and oppression is the American exploiters’ substitute for the military subjugation of an enslaved and exploited national minority. British im- perialism uses troops in India, China, Egypt and other colonies, in order to continue the exploitation of the subjected peoples of these countries. The American imperialism uses marines to do the same in Nicaragua, Philtp- pines, Cuba, ete. But in America, the “land cf the free,” and the “cradlé of democracy,” the direct use of military force to subjugate and exploit and oppress a national minority, the Negroes, is replaced by the more subtle and more “civilized” system of discrimination or denial of those elementary political rights that could be used by the Negro masses at least partially to resist their economic enslavement, their special extra exploitation, War, to the Negro’ masses, will be the re- inforcement of the system of discrimination by. bayonets and machine guns. The last imperial- ist war which the American capitalists called a “war for democracy” has demonstrated to the Negro masses that no sacrifice in blood for the interest of the white imperialist oppressors ean secure any democracy for the Negroes. Even the Negro Gold Star Mothers were seg- ted when the government sent them to view the graves of their dead sons. In the next war the Negroes as well as thg white “ind workers will be used as cannon fodder and those that return alive will find the capitalist class further entrenched and the few remain- ing rights completely replaced by military and police rule. Fascism, which means the gradual elimination of democratic forms and _institu- | tions and the replacement of these by violent dictatorship of the bosses, will rule supreme in the United States. The Negro masses know from long and bloody experience that even a protest against their oppression is met by terror and violence in the South. The recent/ brutal murder of the Negro worker, Levy, and the Latin American worker, Gonzalez, by the New York police, proves that the lynch law finds expression in the North as well. The Negro masses unsupported and alone can never achieve liberation. They must form an alliance with their natural allies, the white working class, and under the leadership of the Communist Party enter a decisive struggle against their common enemy, the capitalist class of the United States. The struggle against imperialist war is one phase of the struggle against the capitalist system that exploits the Negroemasses and the white workers. On August 1st, the interna- tional day of struggle against the war danger, the Negro masses must come out together with the white workers to one vast United Front demonstration against imperialist war and in defense of the Soviet Union. Correct Shortcomings; Help Yorkshire Strikers 7s By ANNA CORNBLATH. LTHOUGH the districts of the National Tex- tile Workers Union have received several instructions from the national office of the N.T.W.U. to organize a campaign for the sup- port of the strikers in the Yorkshire Woolen Mills of England, response has been too slow, and only now, after a decision by the National Trade Union Unity League are they getting under way in this matter. The English textile workers have been en- gaged in a struggle for nearly three months, not only against their bosses who are forcing further wage cuts and speed-up, but against the reactionary unions, just as the workers in America have to struggle, But the workers of Yorkshire have also to fight their so-called “labor” government which is always on the side of the bosses, Led by R. I. L. U. In spite of all the difficulties the English textile workers have waged a heroic struggle. Mass picket lines and the strike itself have been conducted under the leadership of the rev- olutionary Minority Movement, which is under the guidance of the Red International of Labor Unions. We, here in New York, have textile mills where the workers are faced with similar con- ditions té those in Yorkshire. In Yonkers, a few miles from New York, there is a carpet mill with 8,000 workers. Through speed-up and improved machinery the bosses have re- duced the working force now to 8,000. The remaining workers put in only two or three days a week, and get starvation wages. Our Fight, Too. Only through intensive campaigns will we be able to rally these workers under the lead- ership of the National Textile Workers Union to struggle for better conditions. Demonstrate against war and unemployment on August Ist! Demand that expenditures planned for armaments be turned over for the relief of the unem- ployed! jout the d) Some comrades are sceptical slogan: “Five-Year Plan in four years It is not long since that some comrades regarded the Five-Year Plan confirmed by the V Soviet Congress as fantast Not to speak of the bourgeois writers who are simply beside them- selves at the mere mention of the “Five-Year Plan.” But what do we actually see, when we regard the Five-Year Plan from the stand- point of what has been accomplished in the first two years? What does the examination of the realization of the Five-Year Plan, from us? It not only shows that we can accom- | plish the Five-Year Plan in four years, but it shows at the same time that in a number of branches of industry we can accomplish it in three or even two years. This may appear im- probable to the sceptics in the opportunist camp. But it is a fact which it would be foolish and ridiculous to deny. Judge for yourselves! According to the Five-Year Plan, the naptha industry was to supply products to the value of 977 million roubjes yearly by 1932-33. In actual fact it is supplying already, in 1930, an out~ put to the value of 809 million roubles, or 83 per cent of the production envisaged for 193: by the Plan. Hence, we shall fulfill the Five-Year Plan, as far as naptha is con- cerned, in about two and a half years. For the peat industry the Five-Year Plan lays down a production to the value of 122 million roubles for 1932-33. In actual fact its output is already, in 1929-30, something over 115 millfon roubles, or 96 per cent of the pro- duction laid down by the Five-Year Plan. Hence we shall accomplish the Five-Year Plan in the peat industry in two and a half years, if not earlier. Fruits of Imperialist “Disarmament” Signing the naval “disarmament” pact with an appropriation of one billion dollars at- tached to it, Hoover, Wall Street's war president, declared that the naval treaty represented America’s greatest contribution to world “peace.” = Answer the imperialist war mongers on International Anti-War Day August Ist. Into the streets to thunder the cry of the millions of starving unemployed workers: “Not a Cent for Disarmament, All Funds for the Unemployed.” Demonstrate the working class will to turn the imperialist war, especially against the Soviet Union, into a revolutionary civil war against the bosses! For the defense of the Soviet Union. What the Fish Investigation Revealed By L. P. This is the second of a series of articles on the Fish “Investigation,” which is being published in the Daily Worker—Editor. Prd ’ Il. Solving the Economic Crisis.e# 'HE other basic factor which made it neces- sary for American capitalism to begin its attack upon the workers is the present eco- nomic crisis, Before the very eyes of the American workers stands exposed the bank- ruptey of the entire capitalist system and parasitic nature of capitalism. The present decaying stage of capitalism is being brought forward: with particular clearness by the chronic agricultural crisis. We now see that the very forces that capitalism develéped and used to stabilize the shattered post-war econ- omy, had the effect of only further sharpen- ing the contradictions of capitalism and even preventing any solution ofthe crisis. In a period when there is such a great discrepancy between productive capacities of capitalist industries and markets, the method of mass production and rationalization, which capitalism considered as the most effective means of increasing its profits, is now acting as a grave digger for capitalism. It is true that in order to solve its crisis, capitalism will resort to even more intensive rationalization, but this will only fesult in a more intensive crisis. The bourgeoisie fails to utilize to the fullest extent the productive capacities of its machinery. In agriculture, capitalism wants to limit the production of wheat by forcing the farmers to cut down their sowing area by 25 per cent. The price of wheat is sagging 20 cents below’ the cost of production. Mil- lions of bushels of wheat are being stored up in the country’s grain elevators, while at the same time millions are’ starving. Finance capitalism is just skinning the farmers alive and forcing millions of them off their land. No Organized Capitalism. The Farm Board proved that the capitalist government cannot organize planned system- atic distribution and production and “save” the farmer. The parasitism of American capi- talism has reached such an extent that lead- ing, spokesmen of American industry and fi- nance raised the cry against the rapid de- velopment of the technical forces of produc- tion. Otto Kahn, one of the leading American financiers, stated: “, , «but progress, even in the best of causes, must be tempered by wise restraint and must be reasonable in its ‘tempo.’ I think we went too fast, with the result that, apart from other temporary mal-adjust- ments, we have caused, to a regrettable and troublesome extent what is termed ‘tech- nological unemployment.’ ” On the other hand, however, the workers contrast these signs of decay of American capitalism with the rapid growth of economy in the Soviet Union. The superiority of so- cialism over capitalism is today definitely. proven to the workers of the entire world. The political effects of these contrasts are naturally very great. No matter to what the bosses resort to, they cannot conceal the fact that capitalist economy is declining, decaying and torn by its contradictions, while socialist economy is growing and developing. The capitalist class naturally is trying to solve the crisis. Its solution, however, can only be a capitalist solution. To the workers this capitalist solution means more unemployment, more wage cuts, more speed-up and misery. In other words, the bosses try to put the bur- den of the crisis upon the shoulders of the working class. This as well has a tremendous effect upon the working class. The workers will not sub- mit themselves meekly to more intensive capi- talist’ exploitation and terror. Not only do workers already begin to organize and strike against wage cuts; not only is there struggle against unemployment and resistance to bosses’ terror, but the workers begin also to learn the nature of capitalism and the role of the state. Through their very experience, the workers learn the correctness of the program of the Communist Party. Their every-day struggles are being raised to a higher poli- tical level. Because of the very necessity, their economic struggles are assuming a poli- tical character and their class consciousness developed. We Communists do not carry on our agitation on the basis of abstract theory. We apply our revolutionary theory to the every day struggles of the workers. On the basis of the very experiences of the workers we mobilize them for struggle not only for their immediate economic demands but also for our general revolutionary program. This is precisely the thing that is worrying capitalism most. William Green, Matthew Woll, and the other “experts” on Communism, on the basis of whose testimony Fish is going to make his recommendations to Congress, raise the ery, “Don’t let the Communists ex- ploit the present economic crisis and unem- ployment for their revolutionary aims.” Prac- tically every one of those witnesses acknowl- edged the fact that there is unemployment, that conditions are bad for the working class, but one thing they insisted upon, “Why con- nect it up with the present capitalist sys- tem?” Why tell the workers “that unemploy- ment is a direct product of the capitalist sys- tem,” that “capitalism lives on unemploy- ment?”, ete. They even agree that something must be done for the unemployed, but not what the Communists propose. Their aim is to prevent a revolutionary solu- tion of the crisis and unemployment and divert the discontent of the masses into safe channels. Of no little significance is the statement of President William Green, made Comrade I; Stalin’s Addr In accordance with the Five-Year Plan,#gen- eval machine building is to supply products to the value of 2058 million roubles by 1932-33. But already, in 1929-30, it is supplying prod- ucts to the value of 1458 million roubles, or 70 per cent of the output laid down for 1932- 33 by the Plan. Hence we shall accomplish the Five-Year Plan, in general machine build- ing, in two and a half to three years. According to the Five-Year Plan, the pro- duction of the electro-technical industry is to reach a volue of 896 million roubles by 1932-33. It is already, by 1929-30, supplying over 56 per cent of the production laid down by the Plan for 1982-33. These are the unheard of tempi of develop- ment in our socialist industry. We are advancing at an accelerated speed, and are out-distancing, technically and economi- cally, the advanced capitalist countries. e) This does not mean that with respect to the quantity produced we have reached in our industry the level of development of the in- dustry of the advanced capitalist countries. No, it does not mean this by any means. The tempo of development of industry and the level of development of industry must not be con- fused with one another. Among us they are frequently confused by those who assume that since we haze attained a tempo of develop- ment hitherto unheard of, we have already reached the level of industrial development of the advanced countries. But this is entirely wrong. Let us take for instance the production of electric energy, in which we evince a very high tempo. Between 1924 and 1929 we have at- tained an increase in the production of elec- tric energy by almost 600 per cent, whilst the United States have increased their production of electric energy by only 181 per cent in this time, Canada by 218 per cent, Germany by 241 per cent, Italy by 222 per cent. We have thus attained a tempo far exceeding the tempi of all other states. But if we take the level of the development of the production of electric energy in these countries, in 1929 for instance, and compare it with the level of development in the Soviet Union, the result is not very fa- vorable for the Soviet Union. In spite of the unheard of development in the production of electric energy, this production has only reach- ed 6465 million kilowatt hours in the Soviet Union by 1929, whilst the United States have 126,000 million kilowatt hours to show, Canada 17,628 million, Germany 33,000 million, Italy | exortable conclusion 10,350 million kilowatt hours, and so forth, It will be seen that there is a colossal dif, ference. We are behind all these states as regards th level of dévelopmest. Or let us take, for instance, the output o: cast iron, If the output of 1926-27 (2.9 mil. lion tons) is taken at 100, we find that th output increased in the three years from 1927. 28 to 1929-30 by 190 per cent (5.5 million, tons) thus almost doubling. The tempo of develop. ment is therefore fairly rapid. But if w look at the matter from the standpoint of thq level of the development of our output of cast iron, and compare this with the produc: tion of the advanced capitalist countries, thd result is somewhat sorry. In the first. place we do not reach and pass the pre-war level of cast iron production until the present year, 1929-30. This in itself forces us to the in- that unless we further accelerate the speed of the development of our smelting works,, the fate of our whole indus. trial production is endangered. With respect to the level of development in the cast irom industry in our country and in the West, thy following are the figures: In the United States the output of cast iron in 1929 was 42.3 mil- lion tons; in Germany 13.4 million; in France| 10.45 million tons; in Great Britain 7.7 mil- lion tons; but in the Soviet Union the total ou put of cast iron by the end of 1929-80 ts only| 5.5 million tons. It will be seen that the difference is no small one. We see that the level of development of our| cast iron production falls behind that of all these states. What does all this show? It shows that: 1. The tempo of development of industry! must not be confused with the level of that development. 2. We lag’ frightfully behind the advanced capitalist countries with respect to the level} of development of our industry. 8. Nothing but a further acceleration of the! tempo of development of our industry willl give us the possibility of overtaking and out-| stripping the advanced capitalist countries, technically and economically, 4. Those people who chatter about the neces- sity of reducing the tempo of development of our industry, are enemies of socialism, agents. of our class foes. (Applause.) (To Be Continued.) Hitherto Unpublished Facts in th Mooney-Billings Case By SAM DARCY. ‘HE history of the McDonald confession in the case of Warren Billings and Tom Moo- ney is a history of the heroism of militant workers and treachery of social fascist and A. F. of L. officials. In view of the facts in the case, the attempt of the bourgeois press to make A. F. of L. officials “the heroes of the occasion” is ridiculous. It was not Ed Nockels of the Chicago Fed- eration of Labor who obtained the original confession. As for McGrady, Broening and the other A. F. of L. satellites who are now on the bandwagon, these were silent partners to the frame-up. The confession was obtained by two militants, Jack Johnstone and Leon Joseph- son, at present members of the Communist Par- ty and International Labor Defense. It was a member of the reactionary A. F. of L. clique in Mooney’s own local of the Molders Union, who prevented that repudiation from becoming an effective weapon for the immediate freeing SS in his speech in Toronto, Canada, on July 18, where he stated: “If the government of Canada and the United States want to remain secure, they must join with organized labor in finding a solution of unemployment, for there is noth- ing so disastrous to the social order as un- employment, which provides a fertile field for discontent and even revolution.” The capitalist class and the fascist leader- ship of the A. F. of L. see that the workers begin to learn, that unemployment is a direct outgrowth of the present capitalist system, therefore, to abolish unemployment means to abolish the system that breeds it. This orienta- tion of the working class is precisely what they want to prevent. The Workers Will Decide. The working class, just as it is the deter- mining factor in the outcome of imperialist war, so is it also the determining factor in the out- come of the economic crisis of capitalism. Capitalism naturally tries to solve the eco- nomic crisis by ‘capitalist means and prevent the economic crisis from turning into a poli- tical crisis of capitalism, which in turn can create a revolutionary situation. The deci- sive factor in this situation, however, will be the working class. It will depend upon the readiness of the working class and the fight- ing capacities of the Communist Parties. Therefore, in order to prevent the working class from a revolutionary solution of the crisis, it has to resort to its usual method of doing everything in its power to crush the working class. To achieve this, capitalism must first of all annihilate the revolutionary leader of the working class—the Communist Party. This is precisely the aim of the Fish investigation Committee. So long as there exists a Com- munist Party, the bourgeoisie does not feel safe in a period of war and crisis, because the Communist Party will not cease to train and mobilize the working class for struggle for their immediate class interests and for the proletarian revolution. It will exploit every opportunity to achieve its aim. These oppor- tunities at the present time are very favorable. The bourgeoisie is conscious of this fact. This, therefore, explains the reason why there is such a concentrated struggle against the Party and the other revolutionary organiza- tions of the working class. By means of ter- ror, they aim to isolate the Party from the masses and thereby get a free hand in an un- limited exploitation of the working class and preparations for wax. ‘ of the victims of this most outrageous and atrocious frame-up. In the winter of 1921, Mr. Kesselman, a sym- pathizer of the revolutionary movement who owned a cheap hotel in Trenton, informed Leon Josephson, that he had a boarder in his hotel who, he was certain was McDonald, the state’s witness whose testimony convicted Mooney and Billings. Josephson, immediately went to the hotel and convinced himself after seeing the man that the likeness was very strong. He got in touch with Jack Johnstone, then secre- tary of the Mooney Defense Committee in Chi- cago. Johnstone came to Trenton. A plan of strategy was worked out. This called for Johnstone being presented as a local character to McDonald by Josephson and Kes- selman, Johnstone was to make friends with McDonald and eventually get from him the truth about his testimony in the trials. Weeks passed by. Johnstone ate, slept and otherwise stayed with McDonald constantly. The task, however, proved harder than was first anticipated. McDonald was ready to talk about every city and state that he was in but California. Johnstone carefully played the part assigned to him. He presented himself to Mc- Donald as a desperate character who was thoroughly acquainted with the police and their ways from long personal experience. But Mc- Donald did not exchange the confidence. Finally, with the help of Frank P. Walsh, a story ‘was printed in the newspapers as originating from San Francisco which told of McDonald’s perjury and warned that unless the truth were told the perjurers would suffer the consequences of their deed. Johnstone pretend- ed to run across the item accidentally. He showed it to McDonald and casually asked him if he was the man in the case. He also told McDonald the story of an imaginary strike in Toronto over which he (Johnstone) got into trouble with the police. But, he explained, he was able to get out of the situation because he knew how to handle himself with the police. And he was sure he could help anyone in a similar predicament. McDonald “came through.” In a burst of con- fidence he told Johnstone the entire story of the frame-up. Johnstone impressed upon McDonald the seriousness of the crime he had committed and urged him to correct it immediately. After further discussion it was agreed’ that John- stone go to New York and arrange a confer~ ence with Frank P. Walsh, A short while later in the presence of Walsh, Nockels—who came from Chicago for that purpose—and innumer- able reporters, photographers, etc., McDonald told his now infamous tale. But the work was to be at least partially negated by the treachery of the A. F. of L. and socialist party. Representatives of the Mooney Defense Committee of Chicago went to Gompers. They explained to him that they had obtained the confession of perjury from McDonald and asked him for two thousand dol- lars to help cover the expenses in carrying the case through. Gompers, a leer on his frog-like face, answered: “You obtained a confession? Confession is good for the soul.” He then turned on his heel and walked out. (To be concluded) March from factories, shops and mines directly after work on August Ist to the demonstrations against war and unemployment. Rally your shop mates under the slogan: “Not one cent for armas ments; all funds for the uneme ployed!” ce ess on 27th June 193(