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The Red Flag Sep 6, 1919

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 PAQE EIGHT
TOE RED FLAG
WHAT OF THI WEtt*
-
The Tnrth About the StrikM:  Capitel'i Oa* Canny:
The Only Remedy
By JOHN JACKS     •      |Sifa
(From the "Labor Leader,'' August 14^ 1919.)
ISNT it really time that someone told the truth
about strikes?  Lota of people think it is. But
' what is the truth t
Here is Sir Bobert Hadfield, the great Sheffield
ateel magnate, tailing the readers of the Km,
News his idea.  It is that direct action ia
a deliberate effort to challenge the Government.
Strikes are damaging to industry; they restrict
output; they make the necessaries of life searee,
and therefore dear; they shake the stability of
industry and they handicap employers in competing for big contracts, and therefore rob the
workers of work. The strike is usually an ad-
mission that negotiation has failed.
Now all that is true, and if nothing remained to
be said, I, for one, should not advocate a strike
even as the last desperate hope.
But more does remain. The Hadfields don't hint
at the ease for the have-nots. Sir Bobert Hadfield
carefully ignores tite fact, that there is another aide
to the strike shield. He does not point out to the
Empire News that at the present moment there is
more damage being done to industry, more suffer-
ing, and more scarcity of necessaries due to the
Strike ot Capitalists than there is due to the strikes
of the workere.
If you total up the numbers of men who were on
strike last week in the coalfields, on the Liverpool
trams, the police force* and aU the other industries,
the result will be found to be less than one hundred
thousand. And at the same time there were a mil.
Boa or more worken out of work owing to the
strike of Capital.
For every man who is out of work is so because
Capitalism is refusing to perform that duty the performance of whieh is ite sole justification. For
every man who for one reason or another refused
to work there were at least ten for whom Capitalism refused to "find work.'' •
And if H is the duty of the wage-earner to work,
no matter how little he may be inclined to do so, no
mstter how many grievances he may have, it must
be the equal duty of Capital to find him wotck' no
matter how Capitalism may distrust ita ability to
earn a profit or a satisfactory profit
The master, eT*i|i can't have it both ways. They
ean't say logically or justly. "The workers moat
produce more and more," and at the same time reserve to themselves the right not to produce at all
unless they can be sure of a profit.
Yet that is exactly what they do say or they act
upon the assumpion.
They expect the workers to go on working with-,
out any guarantee that the more they produce the
snore they will enjoy. They expect the workers to
go on working to enable the Nation to pay off its
4eats. They expect the workers to perform their
fraction, which, they say, is to work Without question; but they deny, in deed if not in word, the
right of the nation to insist that they perform their
aelf-professed function of finding work unless their
remuneration shall be to their satisfaction.
The consequence is that at a time when we are
on the verge of national bankruptey, and when the
lords t s. d. are lament
of the workers who are actually at work, the same
lords are holding up their capital and declining to
rkers to apply themselves to it for
whieh, we are told, tim nation witt perfarh.
aming the Capitalists. I am blaming
the Government.. Why .should a Capitalist risk
his money kt industry when he can invest it in Victory Loan or. Funding Loan at a high rate of sure
And why should the Government not compete
with starving industries for capital? It must compete while it continues to maintain an army on the
Rhine, an army in Ireland, and two or three armies
in Bussia, The Government ia spending over four
millions a day on these enterprises. Ths means the
diversion of capital from production; 4t means the
withholding of thi'- tabor of several millions of
workers from production; it means the employment
of ships on the transport of munitions of war. instead of upon the transport'of food and raw material.
It, therefore, means such a eondit.on of society
that Capital refuses to operate.
So Capitalism is on strike, and will remain on
strike until, things are more settled. But things
will never be more .settled until Capitalism consents
to perform its sole [unction of "finding work."
This it will not do while it can earn a sure five per
cent, by lending to U«e Government, even though
the Government wastes. the money on trying to
destroy Lenin and Trotsky and keeping Ireland in
ve*Uo'
How to get Capitalism to perform its function of
finding work for the million or more out of work.
That is the question upon the successful solution
of which the future of the country depends.' There
is no answer except this: Either Capitalism (tilt
private control and ownership of capital) or the
present Government must cease tq exist. But as the
present Government has no intention of destroying
Capitalism by making capital a communal or national possession, both must cease to crist 'r***
present Government—the" Government '. ott Lloyd
George and Bonar Law—must he wiped' out and
room made for a Government which will not faWf
ate to make capital productive, even if it cannot
be made profitable.
"Pie needs of the people sre more urgent than the
need of profit. Capital, under those who at present control it, will not do its duty. It must be
taken out qf their hands and put in the possession
of the democracy, and under the control of those
who can use it. The tools to the man who can use
tiiem!
Remember those boys in Stony Mountain. Word}
comes through that they are taking it easy. Baft
has definitely been refused. An appeal haa. been
sent out from Winnipeg for demonstrations in their-
behalf Butt whatever is done do not forget tha
Defence Fund. No effort should be spared to put
the stiffest of fights up at the Assises. This on?
general principles aa well as for tim sskemf those
on trial.
Take up collections at your union meetings, picnics and at tim
Send all money and make all cheques payable to
A. S. Wells, B. C. Federstionist, Labor Temple, Van-
convey *B.<X
Collection agency for Alberta: A. Broatch, 120S
Eighth avenue east, Calgary, Alto,
< Central Collection Agency:   J. Lawa Secretary,
Defence Fund, Room 12, Labor Temple, Winnipeg-
Contributions wffl   be   acknowledged   through
Labor and Socialist Press.
Lawyers for the defenee in Vancouver, Bird, Mac-
donald & Earle.      ■       '   -
•     •     •    •
*** -m-m'mm VM^mWm'      WJM       W^M^**m*M ftlUauVvSVU       fm^tLUaSSS^Sfp       "m^pBUSjS SS#lS vQ^Fav^S
whose names have been published as sending in
moneys for the defence fund, acknowledgment h>
future will be made by mail.
TOO FILTHY
k We were asked to publish some extract* from »
■book on the insideMiistory of Canadian Politics, but
we refused.  This is a family journal.
•: ■■■•' '.' ."■ ,■<——
URGES TRADE WITH, 80VTET RUSSIA
Vi,
The Capitalists,aw,pot using capital. They are
abusing it by lending it for enterprises in Whieh
the democracy doea1 pqt believe. Thst capital was
produced by the workers. It ia necessary to thelr
existence. It is necessary to the solvency of the
country. It is necessary to prevent us from degeneration into anarchy, chaos and bloody revqlution.
■The Government mu** break the strike ofCapitalists. It can do so only by taking over capital—
the machinery of produetion and exchange—snd
using it for the purpose of cresting a better State
in Great Britain—and leaving Bussia 'to Lenin.
This, of course, the present Government will
never do, since it is a Government of men more concerned for the maintenance of the privileges of
propertythan for the propagation of tiw happiness
of tite people. , .. '^--'"':
But how can thk Government he wiped out 1. It
will not Obey the mandate of the by-electiona, and
get out. It recognises that when it does go, a Government will take its place that will .attempt to nee
the capital of the* country for tiw good of the people of tiie country. That wfll inevitably entail th*}
transference of espitsl to publie ownership, and the
end of luxurious idleness on the one hand, ■ and
starvation on the other hand#
So the GnVenfient will ding to offiee as long aa
it can. and then it will attempt to get hack to
power for anothe lease of life on some scare stunt.
l are being told for tin purpose
of makir uddy-ramded believe that We   are
ruction
hand of t <;d George clique that is making.des-
Gsear T. Crosby,   President of the Ini
Council on War Purchases and Finance   a
and Assistant Secretary of the United States Treasury during the war, fat quoted in an interview   is
the New York ''World,'' August 3, aa follows:
"What we need concerning Bussia is the   troth
only.   Sending two or a dosen men to investigsto
Russia is a grotesque proceeding. Thousands should
go—thst is, sll   who want to go........ Bussia   wilt
work out her own destiny, and we should permit
private business to be resumed. Others will trade
with Bussia, and we will have to, or lose our fair
share.''
Mn.WAUKEE, Wis., Sept 3.—Cudshy Brothers
Company, packers, today pleaded guilty in District
Court to twenty-three violations of the cold storage.
law and Wan fined the maximum amount of  each  '
charge, totalling $2800.
' 0wm^Mmmm****mwmmmmm*a*fm*^^ £
-mm*m**-**--~m*-mt'i'm.ii>iMm9m«mmtIHmmmimim Kill   Illt^a^^^lliWty^H^in^ll—
truction of the present state   of society not   only '.
certain but desirable.
Yes, the putting out of the* Scotland YJerd alleged ••discoveries" as. to "Bed Gold"-by tha
way, I've not seen any* and don't I deserve somef
—and the simultaneous ''determination" te tackle
profiteering (which ean't be defined) are probably
the preliminaries to an appeal to toe country in the
hope thst once sgsin the people can be bamboozled
into believing that you can make parsdisal purses
out of guinea-pigs' ears.
But nothing 2s to be hoped from a'General Election unless tite party which goes into power mean*
to make capital "find work," for Capitalism wiB
continue ita partial strike until it can see a certain
six per cent or more aa a result of ita activity.
And don't forget that when Capitalism downs
tools, the Government gives it employment at fife
per cent interest. When Labor downs tools the
Government gives it—what?
ft is not the spasmodic strikes of Labor that are
causing the unrest   They are mere   ■jmptoma ef
the social disease due to the fact thst Cs
by going on strike hss induced a f e
of the present unrest ia not Bolshevism   hut  Bee-
selfishness. :
HOW BOLSHEVISM IS HADE A BOGEY.
(Continual From Page Six.)
******> • ■ •• *^-"""B   •—   •^■"■*^^^"""""""ff"""S""m ?ma^**qP***mm9 w
Mr. Haywood, like Mr. Keeling, is s strangely
endowed writer of history, for after a pious declaration that his book is no attack ott the theory
of Bolshevism, he writes a 12-page Appendix on
"The Theory of Bolshevism" (which he does not
at all understand) as a root fallacy, a failure in
economic structure and a despising of civil liberty.
Further, Mr. Haywood tells us that in all his
talks wttfa Mr.-Keeling, he never detected "the
sligh.fsl variation in Lis story." This is curious,
as ih.re are seversi in the book. Mr. Keeling ssy.i
he was srrested "at least six times" (p. 123.) later
that he waa arrested twice (p. 175); apparently
always for s very short time. More serious is the
•"variation" between his savins that the Bolsheviks:
-suppressed the Co-operative Societies (n. 137.) a
notorious inaccuracy, and his references to Cooperation.
Again, he says that the blockade has nothing to
do with the famine (p. 130.) while ten pages later
that "the opening up of trade wtth Western Europe
will esse the (food) situation!" Then there are
other statements wildly inaccurate, e.g., that there
la no lack of fuel in Bussia (pp 166 and 196.) In
fact the parentage of the book seems to be a slipshod and ill-tempered mind supplying material and
an inaccurate, prejudiced pen writing the material
up.
His Charges Against tite Soviets.
The aeridus eharges made against the Soviets in
these pages can be, faced wtth equanimity. Keeling
maintains (what is hard to prove and herd to disprove) that under Bolshevism there is Jess liberty
than avtr, and indeed such denial of liberty that
Britons would not tolerate it a day. Bolshevism
means conscription. Which Britons also-have still to
endure, although their country is net invaded nor
in any danger of invasion. Bolshevism means suppression of newspapers. That. also. Englishmen
have known. Have not printing plants been smashed and works, closed, snd poor men been ruined by
£100 fines In this land tor printing what the government did not like f
Bolshevism means spying on suspects. But is not
the British Government at this moment setting up
a new and permanent spying department (flpecial
Service) in the Home Office f
Bolshevism means that all sorts of permits are
needed to travel or trade. It is just the same here;
'only it appears that passports are got with less delay snd less often refused in Russia than   in   this
Wtth Wilson playing, an amiable Alexander I
to Clemenceau's Metternieh, tim first act of the
drama Of counter-revolution has ended in s brilliant triumph for the Holy Alliance. The history
of the pacification of Hungary, now, accomplished,
is neither very long nor very difficult to understand; and it illustrates very admirably the manner in which* bread and bullets may influence the
self-determination of a free people. In a speech
delivered in Paris towards the end of July, Herbert
C. Hoover, Food Dictator tor the Allies, remarked
that officials of the Relief Commission were maintaining and managing some eighteen separate governments—eighteen well nourished centers of anti-
Bolshevism. A lew days later (July 26,) the Allies offered to give Hungary a place in Mr. Hoover's
bread line on condition that the Soviet government
be overthrown. Unfortunately toe attention of tite
communist officials wss centered for the time being upon military operations against the most
honest of their enemies—the Roumanians. Meanwhile Captain Gregory, an American now functioning as chief Allied bread baiter for central Europe,
dangled before Budapest a most generous offer of
food—to be had at a price. The combined attack
of Roumanian arms and Allied intrigue, was too
much for Bela Kun: on August 31, his government
wss overthrown. The Associated Press dispatch
that announced tiie debacle at Budapest proudly
pointed out Gut Captain Gregory should be ''credited with a large share in the hastening of Bels
KunY retirement*'' In the face of a feeble and
obviously insincere"protest from the Supreme
Council at Paris, the Roumanian army now overran Hungary, occupied the capital, and created
conditions that made easy tiie strangulation of the
the return pf
ig out of tiie
counter-revolution. With the Supreme Council
still uttering stage thunders against Roumania.
Archduke Joseph, "the
the Hapsburg family,''
wuvuaivuo   aaa*,-   *m.mmf*.   mmmjj    aaaa.    ouaagui
new bourgeois-Socialist government, tli
the femigres, and the complete 'worfcrnji
Do you believe that MnUnd would be permitted
» make peace   wtth   the -Bassfan
RepublieT"
"I am no politician and I esn not give you any
definite answer about that Nevertheless. I believe, thai the Entente powers would not approve
of sueh . peaee st this time. In regaid to the food
which is the only question within my
I believe it would not be aa easy to
for food relief in case you would start
h the present Bussian Government"
I understand that this a very delicate point. . .
The problem is by no mesns of a purely human-
tarian character—the delivery of the Finnish people from starvation. Bather the object ia to make
Finland's policies completely dependent on the
poliey of the western imperialists, and to eompel
the Finnish people to remain in a state of war with
the Russisn Soviet Republic. ,
•     •  .-•     •
The war went too far—millions of men and billions of dollars too. far. The Supreme Council acV
mite it when it goes about rebuilding what the war
pulled down at such a heavy east in Mood and
treasure. A monopoly of ruling-class privileges
was the reward expected fay tiw victors; actually
they have fallen heir toe revolution that threatens
tfae destruction of the very system of privilege. It
is the fear of this universal cataclysm that seta tfae
Supreme Council seeking allies among its bitterest
enemies of e year ago. Wttfa the defeat of Germany, tfae fears and animosities tfaat so recently
divided Europe into two rival political systems lost
most of their significance, since tfaat time the fear
of the social revolution has tended more and more
to replace the old national and dynastic rivalries.
The Treaty is the product of the nationalistic system thst gave the conqueror the right   to grind
.
his defeated rival into the dust. But tfae counter-
most popular member of revolutionary' activities of tiie Allied powers are-
dumped   the ad interim   of a different order: they belong net to thc war of
cabinet into the discard and became Regent of Hungary. The sincerity of the Allied'promises to the
first anti-communist government may be judged
from the fact that on the day of the Hapsburg coup
d'etat the members of Entente mission conferred
wtth the Archduke, reached "a full, agreement"
,\iifa him on vaiioin, matters, and ended by dele-
gaving governmental authority to this nev*   Die-
r*tor.
•    •    •     •
land.   Bolshevism means many'decrees issued, not    gathered together    Information relative to i
by Parliament, but by order and bureaucrats.   Is   ,*JMwlo1ioliary' options in Finland an*?
It not exactly the same here?  Has  Mr. .Keeling   ^ ^ w ^   obtainable,' an interview
Counted up the regulations of KJ. G. R. A., or can
he say how many hundreds were issued by the Food
Ministry alone f   Really, the argument, here   and
elsewhere stated, thst the liberty of Bussia and the
souls of her people can only be saved by sweeping
•way the Bolsheviks   is overdone.   Alter   s   few
names snd dates slid transpose a few forms and the
on liberty of which the Bolsheviks are
rilty. can be shown to have been achieved also
he British Government; by the French! by the
ans! by the U. S. A. Government!  Are they all
■
conclusion, let it be fairly   stated   that   Mr.
Keeling does not advise military intervention   hi
though he does not denounce it: he never
is Kolchak; he never praises tile Cadets; he
to have'heard of Gorki or Mart o v. the
fart ons anti-Bolsheviks now   worki
The nature of American activities in Hungary is
essily understood when published fsets   are once
wan?
Bus-
published in the Soumen SostaHdemokrastti, a Finnish
newspaper, may therefore be regarded as " a piece
of preciosity."The speakers sre. first, s Finnish
newspaper reporter; second, Magnus Swenson,
sometime of Madison, Wisconsin, wore recently
Inter-Allied Food Dictator for Scandinavia and
Finland.   To quote:
"Is it true," I (the reporter) asked, "that our
getting foodstuffs depends to some extent on the
political system of our country."
"Yes
nations hut to tim class straggle tfaat divides Europe horizontally and gives the lie to nstionslism
at the very moment when tite war haa brought tt to
the height of its development. Mannerheim ef Finland. Kolehsk of Rns«a. and Joseph of Austria,
have profited in turn fay tiie new diplomacy that
joins dollars and dvnasties in tiie defense of privilege. With these alliances of desperation threatened by tite rising tide of revolt how long will it be
before the Supreme Council is compelled to se-
knowledge tfaat from the point of view of the ruling clsss, the war tiwt started the revolution
a mistake?
We sincerely hope that J it is not yet too late for
leaders of the Jewish eorsmunity hi America to
break off their negotiations wtth the Kolchak representatives here, concerning whieh reports have
eome to us from reliable sources. It ia, or tt ought
to be. well known to those distinguished Jews tfaat
the Kolchak regfanc ia tfaorougfaly imprQgne.od wttfa
anttSemrtism This is tim chief stock-in-trade ef
tfae Kolehsk officers Even tim Halimtfa press
tains Jew-batting statements worthy of
times.   Tfae knout has -returned and tfae
is rarely silent  tseerals, redfamla em
You know, of course, the wish of America' tionaries even of the mildest type are systematically'
inst the invaders of Russia and would-be
lorn; he advocates the sending of
to Russia to show R
ork!  This is a moderate and sensible pro-
me, and may come when war is over and peace
But it is a sign of the futile helplessness
r. Keeling and his Editor tfaat he can leave so
jportant an issue practically untouched.
that your country should have a democratic system
slid that the composition of the government should
answer the party divisions in   the newly   elected
Diet   I kttow thst conditions here are net   quite
satisfactory as yet, but I am sure that everything
will be all right very soon.   I feel   sure   that the
people of Finland under sll circumstances are able
to take       ■      themselves.   Bui we have another
danger before us.   America and the
regard tfae Bolsheviki of Russia
kind.   The position of your
very difficult, end your relations to   tfae Entente
countries would perhaps become impossible, if the
Bolsheviki should get into power here."
hunted down, kidnapped, and killed fay aid Caariat
officers. The American troops under General
Graves are reported to be completely diagnatcd
wttfa Kolchak and km pretensions. How can it help
the Jews of Russia f ot American Jews to be currying favor wttfa such a regime? We do not wfa*
for a moment to question tim motives of tim Jewish
leaders here. :- Bet Is tfarir hatred of tfae Soviet
Government—under which no pogroms have been
reported to have taken pisee—so blinding that'
their only hope is to help tim Black Hundreds into
power? What other explanation esn there fae ef
tim recent misting ef four Jewish leaders with tike;
well-known "posyomefaik.*'   Metropolitan *f*TfalMif . . .
■
%.T>'
THE RED FLAG
■ - . ■
By M. Phillips Price
==
e Truth About Soviet Russia
■,.
(From the "Soviet Russia." Aug. 2.)
All through the summer of 1911,
Moscow workmen tried to better their
through their own elected factory or ahoj
committees.   But every step timy took   to
tfae actions of the employers was met by w«w
■ of sabotage and often of open iBsistsarr
fay "white gusrds," hired by the employers-to defend tfae ''sacred rights of property." Heads of tim
shop stewards' committees were arrested snd sent
off to the army, raw materials hidden and the men
locked out on the plea of no work to be done. Tfae
workers replied by organizing Red Guards, seizing
the factories and trying to run themselves without
e staff and without technical knowledge. Chaos increased. One group of workmen often struggled
with another group to the attempt to get hold of
die much-needed raw materials. Meanwhile, fsminc
became worse and worse and the Woikers' Soviets
were in danger of turning in'o eonmitteesfor grabbing whatever they cou'd get for their own member, when they came into power
jrlato, gare the latter political as well si
power, aa aa organized proletarian mass.
And so With the peasants. During tim summer of
1M7, the landlords and their agents among tfae
wsr-profiteer parvenus orgsnized a resistance to
tim peasant land committees. Peasant elders were
arrested and thrown into prison, some were even
shot The peasants replied by sseking the landlords'mansions. Anarchy was raging in the provinces long before toe Bolsheviks came into power
in October. The latter, restraining the righteous
indignation of the peasants, declared thrir informal
committees, the first fruits in the villages of   the
waa the time when the ABiee, if they had
thc day of their visitation, if they had
understood what waa the driving force ef tfae true
Russia, would have declared their peaee program
and. sustaining Trotsky, would have exposed to the
world tfae cynical intrigoes of the Prussian mtti-
tsrieta. The Allied governments did not do this
timy eould not They did not dare
people and tell them that they had plana
Tfae moment for uniting tfae moral front
of the Allies with   that   of revolutionary
It never came again. LnTaaMftS
was thus left alone fai
war-lords. Two
to it.   It could either play, the idealist    *
anal decline to aeeept any peace whieh did not embody its principles in toto; or it eould pursue Beal-
Politik and, estimating all tfae forces whieh Were
making for tim internal breakup of their enemies,
ret agreement with them as a temporary
In tim daya proceeding thc signingof
the Brest-Utovak peaee, two very fundamental human impulses Were struggling together inside' thc
"The Prussian warlords, not beeause they wanted
to, but beeause they had to, gave a breathing space
to the Russian Revolution. For they were engaged
in playing their last card in a terrific onslaught on
France. Revolutionary Bussia ia accused of being
responsible for, tfam onslaught, but I submit tfaat ite
did more than anything else to hreak tks>
of Prnrnfoa mflHsiissn Tfae very foot that
the politically imn-consetous elements af the German people got a taste of peaee on tfae Bast front,
broke their will to .war. "If we can have
wttfa Russia," their
"why can we not faave it also wttfa tim Alike." Bet
month went by and timy began to see
the German srmy must either
worid or atea make s aatamiimiiai peace. They
they eould not do the former, beeause of America-,
their own warlords would not let them do the latter. But the example of the peaee with Russia wm
before them, and seeing tt, their spirit af rebellion,
against the war rose ever stronger. Tfae German,
towns began to fill wttfa deserters, workers struck,
discipline collapsed, and with it the army.  And the
.  — Revolution.   Thc one was altruistic, ready    ,;pr ?wrT1f?».^»^T^, m
* ™!l T *"* t-t-ftcaerffiee, Brunnhilda-like, upon the flsming Russian revolutionaries knew how to make mm of
•°* pyre of an idea. The other was wise snd eslculst- this new psychology in tfae German people 'a mind,
ing. prepared to save whst could fae sired no .v in
order to gain the surer in tfae end. The struggle
between these two impulses, old ss the human mme
itself, wee reflected in the controversy between
those smong thc Russian revolutionaries, who would
sign tim Brest-Litovsk peace and those wfao would
not Tfae left soeialist-revolutionsries and tfae ansr-
in Russia, like srtists, lived only   for their
The peace on the East front wax made use of to
flood the Ukraine wtth .iJoishevik agenU vfao
spread revolutionary litcature btoadeeet end w bo,
within a few month?, had turned the JCefamt's glorious "Heer fan Osica" into a tittle better than a
hybrid between a rabble and e revolutionary committee. 51. Joffe. while playing at diplomacy wttfa
the Kaiser's'Ministers, waa distributing pamphkto
March Bevolution, to be the legal authority, pea-
searing the right to take the landloida land   and **** •"T*^1^*1-7T2? ^'*? * »™nal
worfatt in the interesta of the whole  community.   'TT ^\h°*2*f *rikfal* ^^ ^^"^
ideals, wfatefa they would have realized at <mcc or right and left, calling upon tfae German proletariat
else would perish. The greater part of the Bolsheviks, snd the hungry mssses following Lento, lived
net only for their ideals but for the means to realise
them. Tfae former, rather than sign the Brest-Litovsk peace, renounced all claim to participation in
Lang and difficult has been the struggle of tfae Bolsheviks with the disorderly forces among the Bus-
sian peasantry. The letter, divided into rich and
poor, struggled among themselves for the lattd-
loroV land, split up into two contending factions—
one, of small proprietors snd rich speculators- the
other of laborers or those peasants who hire no
labor. The latter group became the "committees
ef the poorer peasantry," or the reconstituted
rural Sonets, whose duty it became to stop the dfav
orderiy scramble for land and to create the new
communal system of land tenure. Thus the seed
sown in the soil of anarchic revolt germinated into
the young shoot, which fed in the stmosphere of
order and discipline.
The Straggle Wttfa fereign Imsmrmliefn.
Tfae regeneration of Bussia could only
when once the Soviets had completed their
ment and conm to the senttfa of tkrir political power.
After October, 1917, tt seemed that order, through
tim Soviets would prevail ever the efaaoa fared in tfae
first days of the Mareh stevehrtton. For tim work-
fog daasea, nhnsaWg timtamtlvM fan timir factory
and village committees, were fighting famine and
struggling to raise production: But tim war was
still nominslly swing on wttfa the Pnissisn war
lords. The country was open to any tyrant that
chose to walk in. The soldmri had nearly all gone
from tfae front fay, Chrurtmaa, 1917. The Bolshevik
leaders of the Soviets had now tim most terrific
task before themJ They had^ to secure some sort of
peaee in order to give tfae ruined and c.haustcd
land a breathing space and tfae workers a efasnee
to repair the damage of tfae war.
There wfll probably be nothing more tragic in
history than tfae picture ef Russia struggling with
tim German war-lords and deserted fay the Allies.
Not possessing any materiel resources to enforce tite
of the tyrants. The latter recoiled, pour mieux
sauter fostered their forces till the day came when
they knew
to overthrow their tyrants. The fear and hatred
in whieh the propertied elssses of Germany hefat
Bolshevik Bussia can be seen by the fact that at
the moment of writing, Bussian Bolsheviks are new
pining in German orisons, are hunted tike bares,
and murdered by the armed hooligans ef tite Rbert-
Seheidemann-Noske government of
Germany. I ask an unprejudiced observer.
tine look ss if tim Bolshevik* are tfae agents of German Imperialism f
—-
ism is
h
a
(By jaaapk King.)
■
Another type of Anti-Bolshevik propaganda is
the book, "Bolshevism: Mr. Keeling's five years
in Russia,*' by H. V. Keeling (Hodder, 2s. 6d.) This
book ia being boosted aa a unique revelation of the
truth; the Times snd Tory papers go into ecstasies
over tt; ttm held to show that the Soviet leaders
can claim nothing save to be justly swept off thc
earth.   What then is
to
in
Tula of Mr.
Mr. Keeling left England in February, 1914,
hdp to establish a patent photo-lhho
Pttrograd. He then knew German but no
He was, and still hiiii sins, a member of an *"faitg*'"*'
trade union, never of a Bussian one. He became
fnemnan (p. 56v) and says of the Russian workers
that "they wfll never work regularly except under
pressure ef aome external ferae," fae treated them
aeeordtogly.
lie admita tfae Gear's tyranny, tfae miserable
wsges before the Revolution, the rajtprrssoon of
trade unions, tfae horrible treatment of tfae soldier*
by the Czar and has officers (p. 77):
the soldiers* punishments make me
to think of them.
for this m that7' fae thought it might enable him to
get more food!"
He speaks wttfa greet admiration and respect of
Lunareharsky, the Bolshevik Commissary ussier
whom he worked (p. 149.) but wttfa utter disgust
of the other Cemiaissaries, of whom fae only beard
things #m saw nothing He tetia us nothing of tfae
ronscription of Englishmen fai Bsmria, eave tfaat fae
Waa himself liable to tt (p. S3-) and seems ignorant
tfaat Russians were' conscripted to Britain. He.
abuses tite Bolsheviks for having eatsbHahed ehrO
tells us nothing about the natfcsmtisation cf woman,
for whteh tim government vouches here.
Waa Mr. Keeling too prod-fa te mention so dhty
* subject! Or too prudent to ten tfae truth, wfaieh
would faave annoyed his aristocratic Csarist friends T
After the Armistice, Mr. Keeling says he wast
liable to fae couauipted toto tim Bed Army (em
aotounding new fact) but tried lairsmfatty to
cross tim frontier into Finland. • He gives a nvely
story Of tide venture, though tt ia hard to credit all
in view of sueh ■Islammis aa tfaat carry to January
it began to get dusk abewt 7 pas. I
. Arrived in 11 a ian. Mr- Heating '
He hates eonseription, and
Labor men for not protesting against it in Russia!
not return to England to join up,   but left Petro-
gradUgot good jolwOsnd eventually, when the Bol-
•nstiee of fab cause. Trotaky relied upon the. con-   sfaeviks came to power, fae worked, for them at. a
setenee and sense of justice of the Western world,   salary of £H30 (1500 reamles) per month; his exeuse
and feted by reason af tfae interview wttfa
fafan aufalmfatd fay. tim Weatonemtar Geaette em
Fefaiuary 96. Mr. Heating- repudiated ■ tads
view in the Forward, of Glasgow, on Mareh 16.
■ Sine* that Aate. tide bosk has been wrttto
fay Mr. Hee**ns> * ut appanallj fay Mr. E. H.
. weed, wfao wr>Tr* tim rVafeee and AnntmtHx.
i iplsfm, faeer tito faeem/sasgm fpu HL),;
(Continued On Page Seven.)
We*.
and THE RED FLAG
PAGE FIVE
bus and Big OH Fklds--~Who Is Hoover':
By J. T. Walton Newbold and G. HL Martin
("Labor Leader," London.)
THE threatened attack upon the Hungarian
Soviet Republic has been successfully made,
end, from ell accounts, the Roumanian Army is io
occupation of Budapest, more than willing to act
ea "hum bailiff" for the idealistic financiers whose
executive site snd plans in Paris.
Hew far tim Al bed Governments favor the retention of Budapest by their Roumanian mercenaries it would Jm difficult to estimate. However,
of one thing we can be certain, viz., that the Rou-
manians are preferred to Bela' Kun, Who put himself hopelessly out of court by sorislizing the petroleum industry of Hungary.
When Smillie and Smith sre seeking to drive
Harwood Banner, the Coalition coalowner, out of
the Lancashire snd Yorkshire mineral industry it
would have been too much to expect that Harwood
Banner, the Coalition oil magnate, would acquiesce
in Kun's dastardly behavior on tim very edge of
his Roumanian properties. There would have been
one less refuge for that capital which he and his
felleW coal-owning, oil-sucking exploiters of the
Federation of British Industries mean to send
abroad when socialization overtakes them.
The assault on Hungary, like the support given
fay the Allies to the tottering government of Bou-
mania and their decision to transfer Galicia from
the Ukraine is part of a combined political offensive conducted over a long period by the petroleum
syndicates of Britain, France, Holland, .Belgium and
the United States.
■ This astounding conspiracy is so staggering in tts
cynicism that, since they tell the tale so prettily
and so naiVely, we Will let the petroleum newspapers for the most part tell it for themselves.
Tom nal du Petrole, February,   1919,   in   an
article by J. Crinan on "The Petrol Age,*" toils us:
Tins importance Of petroliferous deposits thst
has guided toe armies of the belligerents in certain of their efforts towards Galicia, Roumania
and Persis, wfll sppear tomorrow ss remarkable
when we come face to face wtth that lad: of coal
and labor which threatens us.
If it be true, aa a mineral prospector told me,
that, upon the accession to power of the Toung
Turks, these lax adherents of the Moslem faith
disclosed the secret archives of tfae Ottoman Empire, archives kept private, rinee their capture from
tiie Byzantine regime, to Western prospectors and
coneesrion-huntei-s, the Mesopotamia, Dardanelles
end Salonika tragedies have a sinister explanation.
We know, because the Mesopotamia Report tells us
so, how thst Expedition waa sent to guard the pipelines.
Mr. Herbert Allen, addressing the Bibi Eital
Company's shareholders, spoke of Roumania • as
"rich in priceless petrol." and tfae Petroleum
World for Mareh lamented:
The news of the Roumanian revolution fa   deplorable from the point of view Of those Interested in the oil industry, even should some   of the
, messages prove to he exaggerated.
Its April issue tells us that " Bourn s n*a" wants
tile Hungarian state-owned oilfields ef Petroefaaaf
and the whole of the Siebenhurgen natural gesfiekl
In Transylvania.    *
The June issue, recording tim Soviet Republic 'a
decree of socialization, states that the Vacuum Oil
Company, a subsidiary of the   Standard Oil' Com-'
as lattge interests la Hung
Romano-American
tfae Prtluteum Times. (S6-7-19) reporte-
stmwato fat petroleum as amounting
s desirona of shouldering   for
'fnt-
Amerieas, the organ ef "Standard CUV* Katisuai
Ctty Bsnk of New Tarit puWiahes a glowing   ar
ticle, replete with pirtures and a amp of tim
ket possibilities of tite
An American
worked up to give tim United States the
also, tfae Armenia, and tim meat cursory glanee at
the map of Asia Minor ahows tfaat region to abut
upon the Caue
oilfields.
" '*'',.
rm bedded deep down m s
these officers having been sent fay the Interallied Commission in order to investigate tiie ptt-
roleum question and especially tfae manner in
which the Ukrainian Government has dealt wttfa?
it-Petroleum Times, April 26, 1919.
we find this
mineral periodical, em begin to
tions
kad keen asked,   Mr. Francis
"Just one word, gentlemen, before
I should like to propose a
*"hf rm^Mm.mmA     ■BaSSSSUL
nv*jTT naiu
''-. we separeti
vote of thanks to our. ahaiimou (Leslie Urquhart.) . .'•* I sfaould Hike to add that cam
friends. Mr. Hoover and Mr. Leslie Urquhart, ae
long ago aa Sept., 1914, began work in connection wtth the scheme wldefa tfae Government is
now putting jfotwaid fat its Nam-Ferrous Metals
Bill. They themselves represented to the Government the serious position in which tfae spelter
industry in general was at tfaat time, and* they
have been working on toe scheme ever since.
I myself introduced Mr. Hoover to tfae Government and it has token three years fop the
Government to bring forward their proposals and
to grasp tim idea nnderiying the scheme of Mr.
Hoover and , Mr. Urquhart. We congratulate
both Mr. Urquhart and Mr. Hoover on what they
have accomplished in tins direction. Mr. Hoover.
as you all know, is now the Food Controller of
the U. S. A—Mining Magazine January, 1918.
Mr. Leslie Irquhart speaks of Admiral Kolchak
ae '
A good friend of mine . . . a patriot, who
thinks only of tfae good of his eountry.—Mining
u^TmssMhavuea^a   ^TeswaensensuV'     ■^BarOn
Their relations are notorious. Now we know
that Mr. Hoover, wfao fai blockading Lenin's Government and tfae Russian Republi •. and was bloek-
sding Huiursry. is another "good friend" of Me.
Leslie Urquhart
Turning to page 1635 of "Who's Wfao in America" (1918-19.) we read tfaat Herbert Clark Hoover,
now Food Administrator in tim U. S. A., was "representative of bondholders in construction of
Chihg Wang TOW Harbor. .1900. and between 1906
and 1914 was director of  y
Zinc Corporation. Ltd.; Kysfatim Corporation,
Ltd.; Tsnslyk Corporation Ltd.: Oroya Exploration Co. Ltd.; Russo-Asisti/ Corporation Ltd.
His clubs in New York include "Lawyers' "and
"Bsnkers.'"  So far so bad.
Petroleum (Berlin-Vienna) 13th April. 1915 Records:
The news is very interesting tfaat at Paris.
through the St. Petersburg Tnterutional Bank
of Commerce, tim negotiations which tim American petroleum trust (Standard Oil Co.) had already started during the wstfftr i^bming wtth
tim four formerly Russian tnaptfae concerns (Russian-General Oil Corporation, Nobel. Shell. NeftV
have been, renewed.
'. So'the plot thickens the further down we bore.
Tfae Boyal Dutch Petroleum Co. controls tfae
Shell "Transport and Trading Co„ and tfae Astra
Romans Co., as well m tim Mexican Eagle Oil Co.-
Ltd., mad the Angl^Bayptiatt QsTfieM* Ltd. Last
year it paid 40 per cent, ami fai ltTT, 48 per cent.
Now it has sold a bag block of shares to Standard
OS's bankers. Messrs. Kufan. Leefa and Co;, of New
Next for the diplomacy of Paris and  tite   pre-
cral assault upon Hungarian
perseverance and energy
wfatefa Mr- Perkins has shown as chairman of the
International Committee stands out weli, for fab
has been a steady, uphill work on behalf of the
Allied oil interests in Galicia and those of the
British shareholders in particular.
At one time—and net many months ago—it
looked ss if the Ruthenians might hsve hsd some
chance of obtaining their objeet. but as we then
pointed out, if timy succeeded, a bridge would
immediately be created between the Bolsheviks
of Russia and Hungary. Fortunately, tim Government realized this in time and have now prevented aR possible source of trouble by creating
a United Poland, thus sweeping aside what, without doubt would faave soon been a serious menace to European affaire—Petroleum Times, July
This was the policy whieh this paper had
stantly sdvocsted" snd it elsims:
When we recollect thst there is more
£10,000,000 of British capttal invested fat Gslicis's
oil industry, we feel that we have been more thsn
justified in taking up the attitude that we did
-IWd.
This Mr. Perkins, the indomitable chairman of
the Internstionsl Committee, is a Mr Chsries Perkins. We are not certain, but we suspect that he fa>
Mr. Charles Perkins, of J- P. Morgan and Co. Wc
do know that J. P. Morgan and Co. are at tfae faced,
of tfae International Committee looking after Allied
interests in Mexico- snd thst the British, French
and American Governments are acting fat Mexico
"on behalf of their respective oil companies.
Mr. Churchill fans been talking of s cordon across
Europe to interpose a military snd political barrier between Bolshevism and the West. It is a
barrier of Paris chosen Poles and Paris supported
Roumanians. It is to interpose* a barrier between
tfae Soviets and Smillie, between the socialisation
of petroleum wells and the nationalisation of collieries.
The Whole cackle about small nationalities is a
device to secure the establishment of smell States
under "League of Nations'' auspices and by military mesns. small States that, like Aserimjan, in
the Caucasus, exist only to counter-sign tim decrees
Of tfae international exploiters, Tfae Balkans faave
been cleared of the Ottoman Empire to make room
for the Oil Trust. Simultaneously, we imagine, wc
shall hear that tfae "cross" has triumphed over the,
"crescent" and tim combined choirs wfll render
those touching lines from Mrs. Ward Beeeker "s
"Bsttle Hymn of the BepuMie;"
Wc are trampling out the vintage in the Garden
of Urn Lord.
As .our God goes marching on!
TORONTO 8TA11MMG BY
a     / 'm.■ »».    fl**L  -
n. leiegram irom o
Freneh mission, eonmating of C
Lieutenant Simon, has arrived
rtobostand
►rofao Cyer,
TORONTO. Ontario—Contemplating trouble in
tfae future, the executive of the. Trades and Lsbor
Council here haa formed a committee for political
defense,'tts aim being to resist all aoreiiimeiit action in tfae way of making arrests and to oaBeet
funds from Labor orgsnlsstionn throughout Cen-
ada so that plenty of money would be on hand to
defend any Labor man wfao urigfat be arreated. It
is tfae intention of tfae conmtittee to call a mesa
meeting on Aug. 29. to protest agslnst tfae^deten-
tion of Winnipeg strike leaders in Stony Mountain
Pvsmm. owfaBe awaitine trial and also to send s protest to tfae United States authorities sgsinst tfae
Hfe sentence pronounced upon Thomas Mooney. for
alleged complicity in a bomb outrage in Sen Fran-
in!9P THE RED FLAG
THE RED FLAG
i    ■ .  'I.  ***■
-** "■ '¥y^**wV"E
A Journal of Newa snd Views Devoted to .the
Woi*king Clsss.
Published When Circumstances ami Finances Permit
By The Socislist Party of Canada,
*01 Pender Street East. Vsneonver, B. C.
Editor '"1 •£ — a fltipliwilB
Subseriptjons to "Red Flag" . . . 90 issues $1.00
SATURDAY—
SEPTKMBKR, 6.   1919
The Socialist Movement and
Mr. Cohan
OCR attention has been called to an article on
..*, revolutionsry conspiracies in Canada in Mean's Msgsriim through reading a leader in the
Vancouver "Provinee" of Sept. 4^The "Prorinee"
article is headed Mr. Cahan's Version, and version
is right Mr. Cahan's version, as rehashed in the
"Province," originally appeared in McLeans
Magazine. Mr.,e*hans version in McLean's Msga- *
sine is a rehash of series of hysterical articles he
wrote for the Christian Science Monitor during the
war, when he wea Director of Public Safety in Canada. By tim way, is this the McLean's Magarine
which, during one of the most critical stages of tim
war attacked virulently the British War Office,
said in fact that tt and its policies were dominated
fay skirt and that the English officers and the clsss i
they were drawn from were degenerates. We remember : Yellow, neurotic, sensational dope tt wee
too. Suen* as it pays our "magazine editors to publish snd upon which they fatten their circulation,
fay flirting with the obscene in pothics or in human \
relationships in such fashion as is more obscene
than starkanaked lechery iteelf.
To return to Mr. Cafaan and faia assertions tfaat
hundreds of tooussnds of dollars in German money
entered Canada during the war and that Bolshevik money was now coming into tim country. Where
ia itf He makes general charges, aanting certain
working class organizations, yet fae fails to produce
one specific instance although a single ease in it
self would not support bis sweeping charges. To
us tt appears strange, that tor over fire years awhile
the country waa flooded wttfa police spies, with
posters calling for amateurs to take up the same
service and in spite of what he says sbout tim press-
that organ strained tfae facta to absurdity to arouse
hostility and suspicion against all radical organizations—in spite of all tins, net asm case, so far aa we
know, can be shown as proof that anyone in Canada
was being suborned either in behalf of tfae Germans
or the Bolsheviki Not among tfae working class
anyway. Why was every working class organization, labor or Socialist, instantly suspect? Was tt .
a esse of bad conscience on tim part, of ear rulers,
in view of the manifold injustices tiw worken.
endure.and tfaat they eould not in troth conceive of
them ss being loyal
It wfll be useless to deny that the »ahnet Party
ef Canada or tts members received any of tfae alleged funds, because our enemies would say tfaat
we might be expected to deny it fai any ease, We
will point out however, tfaat wo faave been under
surviellanee by tfae secret service, net to speak of
-enthusiastic amateur slueths, for ..five years-. Our
meetings have been under observation. Our mail.
"both of tim party and of individual members, has .
been aerotinixed.   For more than three months at
of the Party and of its Locals and tim homes ef its
members have several times been ranted snd corres-
pondeeee and account books attached. Yet it has
evidently not been found possible to put us without
the Jaw. We are a highly unpopular organisation,
even hi the labor muTaUnena, becsuse Ttfco diffeteuee
in principles between us
wttfa us runs too deep snd sheer to adssit of
ing or of compiosshm.  This last five years
ly. feeling has run high, hate and
judiee have run riot.   We faave   been, as  a   fame
barque on tumultous seas, buffeted from every side.
We understand, none better, thst tfae people   ate
net wttfa us.  'We understand the State,  tt ia  on*
especial study, and we reslize more than amy one
its rnthlessness and power,   b   it   reasmnahla   to
think that we sfaould put ourselves in tts
insignificant minority of tfaeorista. fay
conspiracies to QMi.Je.ua fay violence   tide
and this order of society whiefa is supported by s
huge majority ef tim people.
versstion and scrag ends of i
interested persona for ulterior matins, we
are no criterion of our settled petiema as a  party.
These policies are educational and above board. If
our theories are wrong let
on public platform or in the columns of the
For twenty years, while we faave seen the
class movement struggle snd develop,
lenge has been open.   Our opponents faave wesltfa
snd can buy brains in their defence.   If they faave
any case st sll they win resort to that method-   If
they resort to force and lies instead, then they have
no ease but possession, and timy are already  <fav
feated. >
They charge us wttfa desiring the downfall of the
present socisl order snd the establishment of a new
one. Is tfaat a crime? Do timy conceive thst the
hellish thing, which is thrusting
into the void- will last for evert
"which is the eritigue of the present order, cam timy,
by suppressing a few individuals or sn organization, suppress it? Tfam t'pmmiiiifcm, which is the
ideal of a new social order, can timy by any manner of means kill tt. May! timy must fin* loll tfae
human spirit for wfafle tt lives, m lis lima mad eoss-
munism issue out of capitalism as a child from its
mother's womb, follow eapttafasss as daylight follows the night
In tiie Christian Science Monitor of August 30.
there is an editorial on "Ideas and Tanks," and
whoever esn, should read it It quotes Lord Bobert
Cecil as raying, in tfae British House of
in his protest sgainst intervention in
can not stop, the course of sn ides wttfa a
gun." Says the "Monitor." whiefa by tfae way m
no friend of the Bolsheviks, in comment: "The religious world- indeed has spent centuries endeavoring to convert aerifies to orthodoxy wttfa tim help
of Rons and atones, fires-and racks,
nMmmmmmmS' -*-'-1- *m ■■******■     *s-***iTa** ■-l Ia*f—,» t •.. ."   *»■
tmns and amamnties . . . Nor, jsnera tt
to politics has the effort been so immmmlj
similsr.
" . . It is possible, indeed, it m
enough, to drive Bolsfaerism under surface in Bua-
sia, ami communism in Bpdspest ;'bot is tt going to
effect the idea? Hero gave tim Christian to tfae
lions, the Inqnisifion sent tim Protestant   to   tite
.    a ,    W\mm    mm '      .   . .,  ,m . a   .     :   m*W      a   -a a.
staxc.   uu wero   exnrpase   imranmnny.
Borne destroy Protestantism?  .
"There is Bela Kun, Lenin's other self  A
or ao ego fae was threstening ta maim tim pfaysfcmt
fl|^^^^^Jk#.^^^^^       m-^a     ^-mm^mm.'    *ffgfia^^^^^^K^^^       mmjm      WL  ' mmmmmmmmm\      ^^mmmmmm^mmmmm       ^^n5a*"kl      dHk^M^MBl
ironuers oi tne jmsptre ex uenm mason won nose
of Switzerland.. Today he is an euliaat, fas am Amv
trian prison, and wfayf Not faaeamm tim communal idea has been dfeesfded fay tim. people .aa?
even fay tfae mob. but beeaose tite Bsrasnian esjsv
slry rode into tfae ssjfanrfas of tim capital, and  he-
tmM%m^   Immm' w^Mm-mmfil    mW   TP^ffe'S^S^ta   f#
tfaat e Communist Government h
no recognition- no trade, above em no food.   Bet
dees .any sane person angpasu, for .a single instant.
tfaat -.tim senses] frontiers of Ditlifai i issi faave faeen
pushed back a single yard- by soefa taeties-
At tim same time, would ■iijuno Bfae to gmuantet
tfae ojisuseptifalltty of tim Rumanian troops to tim.
communist idea, and to undertake tfaat rsresentiv s
—    ■■ I II   ■   ■-       m\mmymwmmmj . .    ..- -*^ -a   -a-    ■    ^^^— a.« -a.   m   m ^B ■ mm+.  .     m »^^VV    . Ww^m.WMWWmmmmmmmmm^m- mm*
Bela Hun will mat Hit Ufa head in Bucharest. Yon
can net fight wttfa Romanian cavalry and
Paris rescripts.   .   . ntil sueh   time as   tim
•eeeW frarlrea wsfmaajbiii if ft ever <• hi imah i tt,
it will not get tt: wfaer
will prevent tt getting if
I
Tfae official organ of tim Russian Soviet Bureau,
"Sevmt Bussia.'' in tbe Aug. 16 issue, announces
that:
A eonuaunieation just received direct from the
Soviet Go-rernmenf in Moscow, authorize* the Russian Soviet Government Bureau in New York to
offer upon the American market a greet quantity
of raw material* now ready for immediate
■sent from Rnsris. Our eommnnieatioe
"We have here ready for shipment 432,000000
of flax, 21S.000.000 pounds of hemp and a
ammnt of furs, bristles, hides, platinum snd
unlimited amounts of lumber."
We have just received a cable from tfae representative of tfae Itossian Soviet Bepublic inStoek-
holm advizing us to ship merchandise immediately:
Mr. Strem, tfae Soviet Bepresentative in Stockholm,
in tfam cable that he is authorized by the Mos-
ent to guarantee payment for sucfa
fae Petrograd ami to issue the proper
permits for importation into Russia Mr. Strem.
also states tfaat fae is making arrangements for
cstafaiiesdnf credits in Stockholm for the Bureau to
Initial orders faave been received fay tint Bureau t
weow for purchases amounting to $150,000.-
000 for railway material end equipment; $30,000,-
090 for agrieultural implements end tractors; $10,-
nOOOOO for machinery and machine tools: $5,000,-
000 for hardware and metals; $30,000,000 for boots
snd shoes: $20,000,000 for textiles; drygoods, etc.;
$5,000,000 for paper, rubber, "etc.; $25,000,000 for
and $25,000,000 for foodstuffs.
MTJJTARIBM OH THE INCREASE
Uoyd George's statement that England is facing
nan is doubtless but little exaggerated. But who
is responsible fop* this terrible situation f Why,
primarily those who made the secret treaties and
indulged in tfae secret diplomacy with Russians and
French, and tfaen Uoyd George himself, who carried on the war long after it eould have been wisely
settled to tfae satisfaction of all friends of France
snd of Belgium. But these are vain regrets now.
The truth is that Europe is on thc verge of ruin
and tfaat England herself fears financial collapse—
siid the peace treaty not only does not give as-
suranees of peaee and good will, but has sowed the
seeds of bitter hatred and future wars, and involves
tfae nmntt«naime of large armed forces. But the
smugly satisfied Lloyd George sees nothing of this.
He preaches harder work ami greater savings, lest
America carry off England's foreign trade. Tho
best thing about ius speech is tim flat assertion that
if the great nations sfaould increase their arma-
nmnta, "tim League ef Nations would be a mere
ahem and a scrap of paper." What nation is fa>
ereasmg their armament today? Why, tiie United
States. .Our navy, so Washington dispatches report tide week, tt pressing England's Jard for first
place. Mr. Newton D. Baker, formerly a charter
member ef tfae League to Iamtt Armaments, is urging Osagreas to give him twice as many regular
* thc United States ever had before and
military service for our* youth. And tim
|a tim White Blouse remains discreetly
mmnt ready to
■!.,„ ;     -—a.
To hear our reactionaries bewailing snd threatening, erne would thank tfaat Canada stood atone ia
faaving a.1isia,.ea of a new social order, Aaa matter of fact, not Germany or her Allies, not Great
Allies, nor way neutral country, nor
' tim wurkl of men began have escaped from tim age-long   struggle   between, pro-
*m ^****m^*^^aPm^j +     saimay   mmm   miv ^eaw*me>*fifffffp  ^^ta>
tt is to be Imped tfaat timy never
will until the end of time Only stagnating peoples
eesdd fcsve uniformity of ideas.
with   congested
who can not see thst so We must
WW
carry '    -
.    .*>■■
■
■'•''>;'•■ "•"';;'; V'"J-  i    .'.■'»..",*..■     „'"     !';' .    .""-■'"*
i
=
(From the "Glasgow Socialist.
1MPORTAHCE OF THE WAGES
TEVER may be your
■
ith the Workers
your wages were, say,
that-your real standard of living haa been maintained, even if you hate four pounds today, while
you have to put Up wttfa putrid   margarine, bully
ism, general polities, religion, or
definite
'MW. upon sll of timet tidnga  there la one subject
wfatefa you can not afford to ignore, and tfaat la tim
Try as you msy to dodge it
turn with tim fasjgfacer ef fiii
flight of imagination,, allow your tht
out to suburbia, and foe a
self in s nice house smidst
swsy from the evil smell of tite city, you are
brought back to earth with the bitter reflection
that you can't do it. Or tt may be a case of neees-
**wM wrwmim Mmfm mmm m^wmmw era"""* your hubbub w
some of the children to the country to brace them
up for the struggle of life, again the answer is "tt
*Mt*e?a^i A^k'Si.
It may be, aa fa) tfae ease wttfa most seen of character, tfaat tfae wanderlust crosses your mind. Ton
have faeen reading tfae adventurous stories ef
Bobinson Crusoe, Jack London or some favorite
author, snd you would like to "go away."  Ton de-
t-*msTw   fp'*"' o*e»">v  un atw   •naansanaa'^B  enanes*  fuv *4raa   Saas*o  jj"'***e» w*
realising your ambition when you get the "saek"
aad you are "done" again. Thus your whole life
is colored and shaped by the   eternal   quest   for
The fallacy
do well to
would
foiling to distinguish between
the different forms tfaat wages take. Here, perhaps, the truth of our observation upon things
familiar ia best flha^atooV *>* know that what
you gut on . Saturday in the form of * a. c% fanya **.• -*»***' *******
more or less of particular articles at different   in- The Trick of
Another point connected with the
nominal wages is the matter  of
Sirsisw^jsxstrr
n? \j
hundred per cent.
tervals, according to whether prices are high
low. In other words, tfae money form of your wages
and what they esn buy are two totally different
things.   Tfans, before the Wsr, you could get a .half.
decent suit of clothes for sbout three pounds.   To-   "55T*
■&.sMk*mfm > mmwms.     ,     ■.-   **^    w?:     T.  pounds a
day you have to pay five pounds, ten or six pounds
for an inferior cloth. There is. nothing original fai
this to you because you are familiar with the circumstances. But in the language of political
economy we are working out a particular, form of
wages. That form Is called the nominal form of
wages. From the foregoing you msy now guess
what in economics is meant by talking about nomi-
i wages is the
Thatisto
say the actual £. s. d. or coins tfaat you receive  in
or-fan
egg
*
question   of
On
t you,would do well to stick a pin. If, for
your Wages have risen from two to   four
pounds a week, your nominal wage hss risen on-
Reverse the process and
As is the ease with sll things common and familiar, their very fsmiliarity obscures their import-
anee, and since we are born ef wage-working parents the tendency b to ignore the significance of
tim wages issue and look for tfae explanation of
our various grievances elsewhere. In tins direction you are encouraged, of course, by the politicians, professors in economies and other **kept"
representatives of tfae employing clsss, since it is
to their interest to have you chasing all kinds of
wifl-o'-toe-wisps.
If, for instance, you ssk for a rise of wages, you
ate. immediately told it is bad policy, since tfae
"boss*' wifl only tack tt on to prices. If you complain that your wages are too low and that you are
unable to get ends to meet you are at once told
thatyour difficulty is due to high prices. In all
cases you are advised to do anything but interfere
wttfa wages.
Basts of the Labor Movement
Now it is just because of this wages issue that
there ia s Lsbor movement fat fact, the Wanes issue
is the basis of the Labor movement, with varying
opinions ss to how the question fat to be tackled.
Some believing, as. for instance, the Conservative
Trade Unionist that aU would be well if only we
eould get a fair day's wage for a fair day's work.
Others, called extrenusts, like tim S.L.P.-ers, believe thst there is no permanent remedy for the
many grievances arising out of the wages; system
so long aa profit-taking is allowed to exist But,'
pending the time when a complete remedy is found,
tfaat ia to aay, when our clsss controls all the instru-
of wealth production and operates them for
and social purposes, tfaere are one or two
things concerning wages yon would do well to get
acquainted wttfa.
You can readily see at a glance how many Workers might very well be deceived in merely fixing
their eyes on tite actual coin and not thinking about
what these will purchase. A safe method fai reckoning your wages is rather to think always in terms
of tim things you are accustomed to procure rather
than dwell on the names or number of coins you
are getting. .  "|^^^^^; '"'.:'
If, for instance, before the war you were accustomed to getting butter, beef, milk, eggs, etc., and
ual vi
each case is two pounds. While such sn illustration
may appear simple enWfjlt in tie form given, when
it» not so easy to see through the trick, as many
piece-workers knew to their cost. Again, y«w
would notice all tfae bother at present ever the decision of Bonar Lgw to put six shillings on the ton
of coal. This juggling with prices is intended to
intimidate those who are inclined to be upset by
any proposal to make it more difficult for tile
•money-wages to go round.
Ton would do well, however, not to be alarmed
at such threats, since the. ultimate decision ss to
whether coal can stand the extras proposed, is determined by forces much stronger than even a
Cabinet Minister can command. Such little tricks
in conjunction Wttfa tfae various movements in
prices go a long way to aggravate the life Of the
wage'worker. That is why it is not worth pottering with the system, rather should we bend our
energies towards rooting it out for good.   T. B.
In Sight of Bankruptcy
(From-toe "Common Sense," Aug. 9.)
Yon msy have heard some of the old people of
our etesa Indeed it ia common argument af tfaeers
—when dhsmaufaig wages and prices, to talk of
tfaefr young days and how they used to live on very
much less than you are getting at present.
If you are a tradesman and getting, say four
pounds a week, they take a delight in bragging
- .s^ j^ aaaji their wages were tiiirty years ago
1 you can depend upon them making it as low
aa tfaey can. But, dfatatnattiaej tfaatr somewhat
curious kink ef vsntty. end assuming timy got
thirty sfaflHngs a week, tfaey eonelude and insist
tfaat you are now better off than they were by at
least a hundred per cent
AMONG "the Immortal services" whiefa Mr.
J. L. Garvin declares the Prime Minister to
have rendered the country must, of course, be included the economic and financial condition of
Great Britain. Mr. Asquith carried on the war for
over two years on the principle of sacrificing "the
last man and the lest farthing" in Order to gain a
crushing victory over the Central Powers snd to
carry out the Secret Treaties with Bussia. France,
and Italy. Mr. Llloyd George improved upon tins
by proclaiming the doctrine of the "Knock-out
Blow" and prolonged the war for two years mow
at a greatly increased expenditure of British life
and tressure. Not content With this, he continued
war expenditure on a prodigious scale after the
Armistice, and his Government since April has
been spending at the average rate of £4,442,000 a
day and fat still employing conscription for the purpose of fighting in eoUntless wars ef the moat
costly snd indefensible kind. The results sre now
visible to the naked eye. No microscope la required
to detect tfae mischiefs at home—no telescope to
discover tfae ruin abroaaV All hia promises of an
Iiidnstrisl Paradise have faded aWay from the
horlson en wfatefa timy went painted In sucfa efow-
tag enter* at tite last gcnsral election, 1-faoujfatfae
taxpayer's money matters not at afl to either Mr.
Uoyd George Of Mr. Chnrehill. and every kind of
mflitsry and naval and rivil extravagance is in full
swing, all our socisl troubles sre being aggravated.
Thanks to the inflation Of prices by war Iwrrewtag
and trade embargoes, the gran* housing scheme is
a glaring fiasco, an* the only result so far has
been to make tt impossible for the building trade
to supply houses in the ordinary way.
The rise of prices and tiie exorbitant cost of tiv-
ing have caused continue) and increasing discontent
among all elssses of wage-earners. The loss of a
great part ef ear foreign trade foHewa naturally
on tfae following circumstances:
1. Tbe loss of London's financial supremacy and
of the gold standard.
2. The ruin of many of our foreign customers.
3. The loss of shipping1 during the war and the
diversion of merchant shipping to feed Mr. Churchill's Russian and Asiatic expeditions.
4. The elaborate system of embargoes and restrictions by which the Board of Trade is strangling
our foreign commerce.
5. The reduction of the coal output
6. The employment of hundreds of thousands of
'able-bodied workers in military occupations   who
should long sgo have returned to productive work.
7. As a consequence of all these, tim higher* cost
of production.
Let us trace the results. The wealthier elssses,
who provide h . large amount of the capital required for trade and employment, are now taxed
from six to ton shillings in the pound on their incomes during life, and from one-fifth to two-fifths
of their capital at death. The plight of the middle
classes is deplorable, and the-Free Churches will
soon find that half their ministers can hardly keep
body and soul together. The working flames are
taxed to the hiK on their comforts and luxuries—
sueh ss tea, sugar, beer and tobacco—and all tim
things tfaey need are doubled or trebled in price-
boot* clothing and food Nevertheless, tfaere ia a
yswning defiett between tfae pufatie sxpsndltute
and tim public revenue.
Meanwhile, the Government gets more and more
unpopular, and is already driven to restoring
D.O.B.A.*
l-Ltmmro or thi socialist putt
OF CANADA
A statement of the theories and conclusions
of Scientitte BoelaHsriv
taper 100 \     lOcperOopy
■  '  id. ■
M
•     , y.-Jt,. .' -■   -J v, t
PAGE TWO
hi
THE RED FLAG
m
m
s***|\HB Vancouver "Province"' ef Saturday. Aug.
X      30. contained the first of a aeries of articles
entppgm "Unselvefj^JF^ of Social Justice."
The suthor of tfae series is Stephen Leacock, Professor of Beonomies in   MeGill   Univeratty.
wiR appear,in eaefa Saturday s issue of
+**»-*?* until 'tiu
e Unsolved Riddle
fae does better when he touches on matters germane
to hfa) own field of the science
theless anything of conseqm
has already teen said by Mai
us nothing new, only restating it in his
ay.   He concludes this first srtiele by saying thst
can not agree .wttfa the Socislist soli
evils of the prerent^regfaie.   This   of
eoek's contribution to the cfeemnemi of tiTaoeuti  ^°^fr'_"!['&&.*&£'^B.ffeS!
problem will be well worth tfae attention Of every
worker. To Socialists, the series will be Welcome
es a new departure for the Canadian press w-uch
fans hitherto suppressed any discussion which u mid
tend to uncover the connection between: our
stein of product
faave been abused for using
pretation" because it leads to s questioning of tim
socisl validity of the very foundation ef tite present
social order. Evidently those who sre responsible
for Professor Leacock's articles appearing in the
press are realizing the futility of abuse- misrepresentation, and the appeal to ignorance and pre-
for combatting the scientific education ear-
on by the Socialists on tite political field, mid
no they are bringing on their intellectual big guns
to challenge our educational monopoly of that
field. We gladly welcome their change of policy,
tardy though it be. We have persistantly pointed
out that tim surest mesns to pesceful progress is
free and open discussion of mstters upon whieh men
find themselves in disagreement and tfaat if there
are untruths and anti-social idesls being propagated, then the open forum is the surest place to
kill them.
Tfae problem -today is not a question of suppressing a minority whose opinions may challenge the
present Order. As pointed out Ire Professor
cock, It is the conditions of eapftalfatm* wMeh si
out of tts own inherent contradictions, that constitute the real dsnger to society. A danger whose
magnitude grows more menseing as the days go by.
One of these contradictions is tfae poverty which,
exists alongside a boundless rapacity to produce
wealth. Curtailment of production, "mines, factories, workshops closed down, human, labor power
unemployed, wfafle social wants, even the very
necessities of multitudes go unsstisficd. The truth,
which no militarist government can suppress, is.
that considering society ss a unit, the owners of
the mesns of production are sabotaging on the
rest of society. It is estimated by some expcrtepujtt;
tfae productive equipment fat only exercised to the
extent of 25 per cent of its possibilities and others
aay it fat nearer 10 per cent Why is this! Because
profit is the aim of cspttalist production, and proftt entails a curtailment of production in view of
the market To flood the market is to send prices
down and extiiiguish profit. The capitalist, studies
tfae purchasing capacity of tite market, not the consumption ranactty Of the community.
Tn this first of hit aeries, Professor Leacock
makes a sweeping survey of the prese^£ state
affairs end tfae conditions out of which they have
arisen, and traces tite development of the modern
socisl productive processes from the individual
nandicraft stage, In tfais sweeping survey, cramped by lack of space, fae perforce, mimes mucfa thst
fai necessary for a proper understanding of tfae problem, but he also, what fa) hardly excusable in a man
of science, in one or two instances, sacrifices accuracy to picturesqueness of phraseology. Near
the beginning of his article he says, . . "Strike
follows strike A world which Jias known five
years of fighting has lost its taste for tim honest
drudgery of work. Cineinsttns 'will not back to
his plow, or at best stands sullenly between his
plow handles, arguing sullenly for higher wages."
submit that tfaat is a dra
the cause for strikes or of unemployment.   We also
deny thst^fah, otimr flamboyent statement regarding Soviet Russia'la in accord wtth facts. However,
more interesting, both as to how he will avoid their
conclusions and as to his conception of what the
Socialist solution really is In terms too vague for
criticism he says it is " a beautiful dream, only fit
for sns^''-^ |^ar penple have defined it as one
long continued round of materialistic idleness and
glrmony at the expence of the State. Both of these
definitions look like straw socialisms erected to he
knocked! down, i Persdventore the Socialist solution is described by neither. Professor Leacock,
however, has' already made one fundamental concession to the Socialists, in that he is using the
' 'eeenomie interpretation**i on his problem. « Wc
shall watch with interest when slid where he uses
it and when and where he refrains from doing so.
Here follows a few comments rn points raised in
his article
"the persons) employer—owner has virtually dis-
''P^^'M^^-^^^   •** $***M
ow fille^^ e Ifaa of corperati|| securities   snd
a staff of corporation   officials and employees.*'
.   and "the personal note is no longer to be
hsd in the wage reJstioiv except tethose backward,
obscure |H jBU^iiOdiary   industries   in which   the
mreharira. reorganisation of thc new order haa not
taken place."   Ownership has no function in   the
processes of production of the   machine industry
snd large scale Organisation.   K is now   sbsentee
ownership having only an interest in the earnings
of the corporation.   In short, tite coming   of   the
After passing notice on rising prices and wages,
and inferring a connection with that and a world
flooded with depreciated paper money, fae ssys,
'tander such circumstances national finance seems
turned into a delirium.   Billions are voted where
machine produced two separate and distinct
The thing of significance in which is, not that one
is rich and the other poor, but that the members
of the capalist class are toe owners of society's
means of production, though taking no part in its
operation and that the workers, while operating industry itre divorced from ownership snd control
over it. Out of this condition arise conflicting interests between the two, classes. One, because of
the wage relation which exists between them and
another more fundamental one in their conflicting
interest to the means* of existence. To, the workers*
production is a means of livelihood. To; the capitalists a means of proftt. In order to realise profits, production must He regulated, curtailed fat
the interest of price. The market, the purchasing
capacity of those in it. sets the pace in quality and
quantity, not the social capacity in consumption.
Professor Leacock draws attention    to a great
paradox of the system, in that, though our ability
once a few poor millions were thought extravagant., t0 ^^ ^ j, meet ham8n ^ ^ mnlti
The war dents, not vet fullv-cornniited     will «m    -is.'j .i^ «... ..   . ..
The war debts, not yet fully computed, will run
from twenty-five to forty billions apiece. Bet the
debts of the governments appear on thc other side
of the ledger as the assets of the citizens. What is
thc meaning of it",'**   ** |
Since August 1914,. the world has been expending thc products of lsbor in the wasteful, unproductive expenditure of war from which there are
no returns in materials embodying values with
which to cancel the debts oh the ledger. Labor products expended productively, as in a weaving loom,
reappear -as values in the cloth. The values of
labor products, as in munitions of war, disappear
for ever. Nevertheless, as those values are on the
ledger in money of account as debts, they must be
liquidated. They are a mortgage on future values
known as surplus values over and above Wages,
which the capitalist class will realise from future
productive operations. In. reality, the capitalist
class owe the debt to themselves. This, however,
is not to say that they will not try to impose the
payment of some of that debt on tho workers by
foreipg their standard of living down. Regarded
socially, of course, the war debts represent values
which are a total loss.
•    •    •    • '
His description of the introduction of the machine-age, lacks at least one essential factor which
sfaould have been noted..m a* effect of peculiar historical signif/cance to the student of sociology,
That is, that it was the mschine age which produced the modern propertylees. iiidustria) proletariat. Small handicraft production betokened that
the producer owned his own tools snd consequently
the product. But ss the mechanical production
processes developed, the cost >of them became more
expensive, required great capitals and* so became
vested in fewer* hands. The hand loom weaver
found it more and more impossible to compete as
time went on, until he finally disappeared. The factory hand took his place. It tt recorded that tim
cotton machines Of Lsncsshire tore the means of
existance foam tfae hand loom weavers of India in
three short Ions of the Hindoos
perfohed from sheen tion wfao had formerly
made a comfortable living. And to what effect?
That the factory workers of Lancashire might have
one so-cslled prosperous year in ten. So the process went on all over the world, until now,   even
plied thirty or forty "times, we yet find the masses
of the people suffering from a lack of these goods.
The roots of that paradox lay in production* for
sale.   "Ifae cpnun^
means of life is determined by the purchasing
capacity of their wages. To the extent of that
purchasing capacity are the goods produced in in-
dustry for them. Labop power is a commodity and
its price is determined primarily by its cost of production in those things necessary for its reproduction, and secondly, by the effect of supply and demand on the labor market As there is always an
over-supply of labor power, this operates effeetoal-
ly in preventing a rite in wages beyond that whiefa
is necessary for tim bare support of the working
class as a whole. That is why if society's productive power wag ten thousand times greater, it
wouid hot relieve the poverty of the working class
Not so long as labor power is bought and sold. Our
forefathers, in the low productive days, perforce
received sufficient of the riecessaries of life to live
snd work, and propagate their kind to meet thc
needs of their masters industries. And so must we
of the modern proletariat.
ITAXIAH PEASANTB
The agricultural populations ere the brake en
the forward movement to a new order. But ae-
cording to reports trm Italy, in,that country at
least they are coming into line with tfae industrial
proletariat. The Peasants' Congress at Bologna,
representing 400,000 members, has declared for' tim
immediate socisliration ol the land—not for the
purpose of dividing tt up in the fashion beloved of
the peasant but for a system of social ownership
and working. In particular esses "t is said the peasants have begun the process of "sodalirfng" already. The Directing Council of the Italian Confederation of Labor and the Executive of the Socialist Party were present at the Bologna Congress,
snd a Joint manifesto hassbecn issued. "Avsnti"
expects a complete linking up in consetroence, and
when that hsppens results msy be looked for.
Newsagents handling "Red Flag" in Vane*nrver.
W. hart- next to Royal Theatre. Columbia News
Agency, cor. Columbia and Hastings. <John Green,
Csreali staeet, near Water street
I     % //fn
Ten Minutes'Talk With the Workers
The Socialist
Professor Leacock and the Unsolved Riddle
A Journal of News and Views Devoted to the Interests of the Worltfng Pass
 "   '"*     ' '      —aal—«a—mm.a«a—immmm.a———— .    ^    _jaaaaaaaaaaaaMaaaa^aaaaaaagaaajaaiaaja|aa»aaa»aa»aaa»^^
FIVE CENTS
=m
From the Point of View Of, the
Extract from Thorstien Veblen's
"State of toe -todustrial Arts."
Good
Vk0^3,
[Veblen's theory is that the late-modern outlook
on social institutions is that they are to be justified
only in.terms of output or service, in contradistinction to the older metaphysical ones of' "natural
right" or "divine right." The most advanced expression of the former conception are the industrial proletariat who faave come to hold tfaat materialistic conception through their dose association With the mechanistic processes of modern production. In consequence of this, they view livelihood as the primsry purpose of productive activity.
On the other hand, the bourgeoisie view production
in terms of profits which they hold to be the "nat-
xtefat" and outcome of invested capital.
sential industries presumably does not exceed 50
per cent, of the normal productive capacity, even
when driven under tfae jealous eye of publie officers, vested wttfa power to act, is presumably due
in great part to tim feet that these officers, too,
are capable business men; that their past training
has been given them by long, exacting and successful experience in toe businesslike management of
industry; lhat their horizon sud perspective in all
that concerns industry are limited by the frame of
mind tfaat is native to the counting house. They,
too, have learned to think of industry and its administration in terms of profit on investment, and,
indeed, in no other terms; that being as near as,
their dsfly work has allowed them to take stock of
the ways and means of industry. . , . In so characterising toe. situation there is, of course no desire
to impute blame to   these   business-like   officials.
.V
.   .   .   "Tfaey are all honorable men."
market, Veblen discusses to What   extent   the re-
' sultant loss to toe community as a whole is greater
than the business community's gain.]
The question as to how mucfa this "incapacity by
advisement'* has amounted - to may be attempted
somewhat after this fashion.   Today, (Oct, 1918.)
under compulsion of patriotic devotion, fear, shame
and bitter need, and under unprecedently shrewd
surveillance of'public officers bent   on maximum
production," thdjtrreat essential industries controlled by the vested interests may, one with, another,
be considered to approach perhaps even conceivably to exceed a fifty  per   cent   efficiency;   as
counted on the basis Of what should ordinarily be
■   accomplished by use of an equally costly equipment
having the disposal of sn equally large and efficient
labor force and equally good natural resources, in
case the organization were designed   with an eye
single to taming out a serviceable product, instead
of, as usual, being managed with an eye single to
private gains in terms of price.
. To the spokesman of "business as usual"   this
rating of current production under tim pressure of
war needs msy seem extravagantly low; whereas,
to the experts In industrial engineering, wfao   are
in the habit of arguing in terms of material cost
and mechanical output it will seem extrovaawntiy
falgfa^  Publicly, and eoncessively, tfam kstter eums
wfll speak of a 25 per cent  erfleieney; in private
aad confidentially timy appear disposed   to  say
that the rating should   be nearer   to 10 per cent
than 25.   To avoid  any
: bins. then, prest production   in
ould fae
Ikt, enntrol lookrns t ^onsble pro-
hess affairs that lie sofliev-hat remote   from   the
domain of technology, from that field where   the
mechanistic logic of the industrial arts has something to say,   .   .   . To return to the argument, it
may be conceded that produetion in the essential
industries, under pressure of war needs,   rises to
something like 50 per cent, efficiency. At the Mint
time it is presumably wdl within the   mark   that
this current output in these essential todusttic;, will
amount to something like twice their ordinary output in time of peace and business aa usual.   One-
half of 50 per cent is*|&5 per cent.;  and   so  one,
conies fat sight of tfae provisional conclusion   tost
under ordinary conditions of business-like management, the habitual net production   is fairly to'be
rated at something like one-fourth   of the industrial community's productive capacity; presumable
under that figure rather titan over.
. , If the aeeount as presented above docs
not appear to foot up to ss mucfa aa the conclusion^
would seem to require, further account may be
taken of tfaat side-line of bustness enterprise thst
spends work and materials in an effort to increase
tim work to fae done, i icrease the coat per
utttt of the increased work; sll for the earnings of
the concern tor whose profit tt was arranged. It
may be called to mind that there still are half-a-
deaan railway passenger stations in sucfa s town
as Chicago, especially designed to work at erom
puipoms and hinder tfae traffic of competing fafl-
way corporation*; that on the basis of this ingeniously contrived retardation of traffic there has
been erected a highly prosperous monopoly in the
transfer ef baggage and passengers, employing a
large equtome
travelling pub cleat outlay
hmgbettt
wrangles, twenty-four 1 day; and thi
out tfae country aa oft
there is an exemplary weekly   periodical   of the
most widely reputable, and most profitable class,
with a circulation of more than two millions, which
habitually carries some 60 to 80 largo pages of competitive advertising matter, at a time   when   the
moat exacting economy of work and materisls   fai
a matter of urgent and public need; with nothing
better to show for it than an increased cost of all
thc goods advertised, most   of which   are   superfluities.   This too, is only a typical ease.   ...
Indeed tfae   whole   business   community   is   run
through with enterprise of this kind so thoroughly
that this may fairly be said to be the warp of the
fabric ....."
-All these intricate arrangements ........ are by no
means maliciously intended. Tfaey are only tite
ways and means of diverting a sufficient share of
the annual product to the benefit of the legitimate
beneficiaries, the kept classes. But this apparatus
add procedure for capturing and dividing this
^^^^^^TRiiual dtt""
proposition ' ij
enongh. inasmuch ss the income which it brings to
the beneficiaries will presumably foot up to something like one-half* of the country's annual production.
There is nothing gained by finding   fault wttfa
any, of this business-like enterprise tfaat fat bent on
getting something for nothing, at any cost.  After
all, it is safe and sane business, sound" and legitimate, and carried on blamelessly within the rules
of thCagame.   One may also believe dutifully   tfaat'
there is no real harm done, or at least thst it might
haveabeen worse.   It is reassuring to note that at
least hitherto the burden of this overhead charge
of 50 per cent, plus has not broken the heck of the
industrial community.   It also  serves   to   bring
under a strong light the fact that tbe state of tfae
industrial arts as it runs under the new order,   far
highly productive, inordinately productive. - And,,
finally, there should fae seme gain of serenity   in
realising how singularly consistent   lias been the
run of economic law through tim ages, and recalling
once more the reflection which   John Stuart Mill
arrived at some helf-a-eentury ago, tfaat, "Hitherto
tt is questionable if all the   mechanical inventions
yet made hsve lightened   the day's   toil .of any
humsn being." '
MB. GARY wHLL BBT DEAL WITH UNIONS
NEW YORK,—Elbert H. Gary, chairman of the
board of the United States Steel Corporation, made
public yesterday a communication sent by him to a
committee of the American Federation of Labor,
whiefa is organizing workers in the iron and steel
industry, asserting that his corporation would decline to discuss business relations wttfa trades
unions as such.
Mr. Gory's letter was addressed to John l*ttr-
•hairman of the committee, and his saunas a reply to a renuest for sn intevvtew
'   -mm
orhing conditions, and union recognition.

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