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Western Clarion Aug 16, 1922

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,      ,    A Journal of
Official Organ of
No. 873.       EIGHTEENTH YEAR Twice a Month
The Development of Policy in Soviet
Russia ^iS^Si liiill
Editors Note:—This is the second and concluding installment of L.Maiski's article, reproduced In the Clarion
from the "Manchester Guardian Commercial," July 6, 1922.
The first installment appeared in the Clarion Aug. 1, and
ended with the question: Can the retreat really end in
pre-war capitalism? There follows now the author's opinion on the matter which, of course, is subject to the judgment of time and events.
Certainly not. It would be an historical absurdity. The enemies of the Soviet Republic count-upon
the aid of crude counter-revolutionary forces to reestablish pre-war capitalism in Russia.
The Forces of Counter-Revolution.
But do such forces exist?
Certainly not inside Russia. Countei '•volution
of every shade and colour has been decisively defeated, and it is vain for the bourgeoisie to hope for
its resurrection in the ranks of thel peasantry. With
the introduction of the new economic policy of the
Soviet power the village will never rise up against
the proletariat. It will permit the free activity of
the Communist town as long as the latter pays at-
• tention to its essential and immediate interests. And
''that the CWmumst town/is paying attenti6&"%
these interests is sufficiently proved by the recent
utterances of Leriin at the Eleventh Congress of the
Russian Communist party.      ■•
Do such forces exist in the West ?
No. It is true that the Socialist revolution in
Europe has been delayed; nevertheless, ever since
the -outbreak of the Great War, the whole of civilised
humanity has entered upon the transition \from
capitalism to Communism,'
The Decline of Capitalism.
Capitalism is clearly perishing. A symptoni of
this was the imperialist war, which made it clear to
the whole world what frightful destruction threatens mankind by the capitalist methods of solving international conflicts. Another symptom is that profound economic crisis in the throes of which Europe
and America have been agonising for three years.
This crisis is evidence that capitalist resource is
incapable of solving the greatest of all economic
problems—the problem of production. Another
symptom is that warm sympathy which the Soviet
Republic awakens in the best minds of world culture and civilisation. Anatole France, Romain Holland, Brandes. Steinmetz and a number of other
well-known men of science and literature openly declared their sympathy for the Workers' and Peasants' Republic. We see here a repetition of what occurred at the end of the eighteenth century in
France before the great Revolution: the best and
the shrewdest, representatives of the dying class are
coming over to the side of the new class to whom
the future belongs.
The Impotence of the Bourgeois World.
Because capitalism is growing decrepit, it cannot
sum up sufficient force to annihilate the Communist
power in Russia. From 1917 to 1920 the whole bourgeois world levied war against the Soviet Republic;
nevertheless the Republic held its own. Why? First
of all, of course, because Russian workers and peasants, at the cost of incredible suffering, were able
to defend their revolution. But there was aniother
reason. That reason was the impotence of the capitalist world itself.
Today in Europe there are two camps—the bourt-
geoisie and the proletariat. Neither camp possesses
sufficient strength to overthrow its adversary. The
Bourgeoisie is already unable completely to main--
tain its dictatorship. The proletariat is still not
strong enough to accomplish the social revolution.
Of course, the strength of the proletariat constantly increases and the strength of the bourgeoisie constantly declines, but as yet the strength of the two
sides is too equal. Neither can display sufficient
energy. Just for this reason the intervention of the
European bourgeoisie from 1917 to 1920 was not
strong enough to overthrow Communism in Russia.
Just for this reason it will be no more powerful in
the future. For all who have eyes, it is clear that
the force which will crush Russian Communism cannot come from the West.
Russia's Immediate Future.
But if the restoration of pre-war capitalism in
Russia is impossible, what, then, will happen?
It is evident that something is going to take place
which history has never before seen. The Soviet
Republic is the first State in the world where the
worliers 'and peasants'; not only in 'name,'but in fact,
hold power in their hands. It will be an economic
structure, embodying a transition from Capitalism
to Socialism. It will not be pure Socialism, the day
of which has not yet come, and it will not be pure
C?ap'|talism, th'e day of which is already declining.
It will be a unique union of the past and the future
—the co-existence and intermingling of elements of
Capitalism and Socialism. It is upon this intermediary line that the retreat which was begun by the
Communist party a year ago will cease. Here is
the limit beyond which it will not retire. And the
Soviet Republic has now reached that limit.
- What the appearance of that State economic
organism which has developed as the result of thc
Revolution will be it is still difficult to say with any
definiteness. The Russian Communists are now
moulding its concrete outline, and, naturally, like
all pioneers, in the process they are making many
voluntary and involuntary errors. But the crux of
the matter does not lie in the errors; it lies in those
essential foundations upon which the workers and
peasants' State is to be constructed, and which must
combine the inevitable compromises of practical life
with the unshakable revolutionary ideal of the prqp
letariat. The Russian Communists consider that
at the present historical stage these essential foundations are the following:
1. The nationalisation of the land.
2. State capitalism embracing the basic industries and branches of national economy.
These two fundamentals the Soviet Republic
cannot repudiate without repudiating itself. Upon
them stands and falls the whole historical significance of its existence.
But are we simply imagining the protracted existence of the Soviet Republic? Are we simply imagining an economic structure combining a powerfully developed State capitalism with a multiform
system of private capitalism?
Nobody hitherto could prove with conviction that
it is impossible. Tn fact, why should it be impossible? Is it because it is something entirely new,
because nothing of a similar nature has hitherto ex
isted? But is that an argument? Was not the October Revolution* something new, something hitherto unknown in history? Yet it came about. Is not
the form of the Soviet State something new, without
precedent in the centuries of human development?
Yet it has been" brought about.
Every truly great revolution creates something
new, and thereby makes a step forward. The Bus--
sian Revolution has also produced its novelty. It
gave to the world the Soviet State. That State is
now groping forward in the pains and torments of
the Soviet economy, the connecting link between
two great historical epochs. But it is moving forward, and no obstacle will prevent it reaching its
The bourgeois world is accustomed to think according to its old standards. Its consciousness is
a conservative one! It possesses neither elasticity
nor enterprise, for it is nearing its decline. Its gaze
is not forward, but to the rear. Therefore it will
not and cannot understand that new economic and
political structure which the Soviet Republic has introduced. It apjpqarsjtqlit a Utopia wh}c&.mus|,ejid: ,
inevitably by falling back int(f the capitalist swamp.":r
The bourgeois world is terribly deceived. The men
who are now directing the affairs of Soviet Russia
are not dreamers, and they are not bourgeois. They
are Communist realists, and on that account they are
capable of constructing a new Russia, a Russia of
the toilers, without its parallel in bourgeois countries, representing a -great step forward upon the
path of the politieal and economic creativeness of
Russia and the Capitalist World.
This fact has tremendous significance not only
for Russia but for the whole world! For a certain
period upon the continents of the Old World there
will co-exist two distinct economic systems—the cap-
talist and the Soviet,—and the question of their
mutual relationship is of first-class political and
ecohomic importance.
The world of capitalist economy at present finds
itself in an extremely difficult situation, and the •
power of the Soviet Republic extends over the richest areas of the terrestrial globe. It is enough to
mention Siberia with her inexhaustible soil and timber and mining resources. Every attempt to control
even temporarily the machine of world economy
inevitably centres round the exploitation of the economic resources of Russia. And therefore that inflow of foreign capital into Russia, the desirability
and necessity for which has time and again been expressed, is a matter in which the Soviet Republic
and the whole capitalist world is equally interested.
This1 is not a question of charity; it is a' question of
enlightened self-interest. Worker and peasant Russia does not refuse and never has refused this kind
of relationship, as long as it is not accompanied by
the restoration of the system of private property.
This policy it will maintain in the future.
The Russian Republic and World Reconstruction.
The Soviet Republic is at the present time the
advance post of the social, economic, and political
progress of mankind. For thc moment she stands
alone, but one must be blind not to perceive the
world-wide influence of Social ideas. The complete
(Continued on page 4)
The Origin of the World
By R. McMillan.
How did anything originate ? Of necessity! How
did eyes originate? There is a question for you!
The eyes of insects are very different from the eyes
of men. The eyes of flies, of beetles, and of spiders
are simply amazing in their,wonderful complexity:
but the human eye is, like everything else about us,
a miracle. Mind you, a human eye is a very poor
instrument, and its power is very limited. It is apt
to get out of order, and a very little renders it quite
useless. People have a lot of trouble with their
eyes,- but science has come in to help us. We have
eye-glasses now, and spectacles, microscopes, and
telescopes; and we can now help the poor human
eye to see things that used to be invisible to it. But
how do you think eyes originated,at the very first?
I do not think that anybody really knows. All
the same, I have watched the development of eyes
for many years, and I will tell you how I think they
originated.  -
Did you ever siee a jelly-fish? You live so far
far away from the sea that I fear you may never
have seen one.
Some of them look just like glass, clear as crystal, while others are quite highly coloured. But
there is an immense variety of them, and at times,
when the wind blows landwards, they are driven on
to the beach in thousands. A farmer onee thought
they would make good manure, so he carted a great
heap from the beach to his farm; but next day they
had all melted away. Men and animals are com*-
posed largely of water—say from seventy to ninety
per cent.—but jelly-fish are nearly all water. I do
not know how to count percentages in a case like
*this, but a jelly-fish is about four hundreds of water
to one of solid matter. There is very little of anything in them except water, and. yet they live and
move, and have eyes and ears, and locomotive powers, and are able to sting, and digest, and reproduce
their kind. It is so wonderful to think about that
it grows awesome, and I doubt whether I can explain to you all I know and think about a jelly-fish.
You will see long filaments hanging from
the bell, like whips. In those whips are the
stings, and around the margin of the bell are the
eyes and ears of the animal. The eyes are simply
spots of colour; they are primitive eyes, I think,
the animal is all eyes, to some extent, for a shadow
falling on it would affect the whole glassy body; but
the pigment spots are more sensitive to light than
the rest of the body, and so they are rudimentary
Look into the eyes of your neighbours—into your
grandfather's eyes, for instance—and you will see
that his eyes are colour-masses. If you think it
out, you Avill perceive that they are simply a development of the pigment spots on the primitive
jelly-fish! The human eye has developed, througlP
millions of years, from such a lowly beginning as
that. I discovered early that the pigment spots of
molluscs were their rudimentary eyes, and that
there are no eyes without colour. That is curious, is
it not? The ears of animals are much the same, for
they are parts of the animal which have grown sensitive to sound, as the eyes have grown sensitive to
light. Other parts grew sensitive to smell, and so
the organs of sight and hearing and smell have developed from the very simplest beginnings, and
great books have been written about each of them.
What you have got to keep clearly in your mind
is this: The world began as a fire-mist, and everything has been developed through untold ages of
life and struggle, from the lowest cell of protoplasmic jelly up to man himself, the crowning glory
of development. Nothing began as it is today.
Nothing was complete from the beginning; everything has developed from the simplest form.   The
eyes, the ears, the nose, have all grown through
necessity in the struggle for existence. Life was
dear to the lowliest, because, if an animal did not
love life, and was not prepared to struggle for it,
there was no hope for its success in a world where
every living thing lived on every other living thing.
Life lived on life, and love of life grew into a passion, because it was only through a love of life that
life was possible. But how slowly that love must
have developed during the untold ages of development, and how unconscious we are of its existence
even yet! We cling to life with a fierce tenacity
which we are mostly unable to explain; but it arose
in the ages of strife, long before living things had
become conscious, and it exists today as one of the
roots of life itself..
The form of the jelly-fish is suited to its wandering, sea-borne, wind-driven existence, and it has
probably endured for ages, because it was admirably
fitted for the life it lived. We cannot speak with
certainty about its age, for the. simple reason that
the jelly-fish, being almost entirely composed of
water, has left no fossil remains; but J, am under
the impression that it is one of the earliest forms of
marine life—that is, of the free swimmers. One of
the jelly-fishes begins life, fixed on a stalk as a
jelly-bell, but it breaks off the stalk and swims
away as a little swimming medusa. The free swimmer then develops eggs, or seeds, Avhich grow a little
while, and then fix themselves on the rocks again, as
their grandparents did. This "alternation of generation," as it is called, is a very curious fact in
life, and accounts for a lot of things; but I had
better not stop to discuss it now, because I want to
tell yon a curious thing about the jelly-fish.
I called your attention to the long tendrils which
hang from the edge of the bell of the jelly-fish. If you
saw them in water, you would think they were made
of pure glass; they are so bright and transparent. Yet
they are armed with deadly stings. These are the
weapons of the jelly-fish, both for offence and defence, and they are also a means of securing food.
Yqu may think that eyes are Avonderful, and the ears
marvellous; but these threads that hang from the
edge of the jelly-bell are more wonderful to me. The
tendrils are made of water, but they are armed with
deadly springs of the most cunning description; and
1 think the ends of the springs are poisoned, but I
am not quite certain about that. The springs are so
small that they are quite invisible to our poor human
eyes, but, now that we have a microscope to aid us,
we can see them. There must be millions of tiny
stings on the long, glassy filaments of the jelly-fish.
Scientific people call these poison-arrows (if
they are poisonous) "thread cells." In each cell
there is coiled a tiny armed thread. When anything swimming in the sea touches the filament, it
breaks the thin film of skin, and: the arroAv flies out
and impales the sAvimmer. It is the most marvellous,
Avondrous spring that I ever saw, and yet it is made
out of water, and quite invisible to the naked eye.
This is the cunningest little arrow imaginable;
and if ever you go to the seaside you can experiment Avith it. You may not be able to get a jellyfish, but you can try it Avith an anemone, on the
rocks at low tide. If you find an anemone with its
tentacles outspread, put the palm of your hand on
to it, and you will find that it seems to cling to your
skin. It will not hurt you, but it will give you a
curious feeling of something uncanny. The cause
of the clinging is that thousands of little stings have
attacked your skin, but your epidermis is so thick
that they cannot pierce it.
Those microscopic stings of anemones and jellyfish Avere never intended to deal with human skins,
or with great big enemies, for they were developed
millions and millions of years before men existed
on the earth. They were probably developed before there were any big sAAdmmers in the water.
They were so admirably adapted to capture the tiny
prey Avith which the sea swarms that the jelly-fish
have flourished all through the ages, andi abound in
the sea today as they must have done in the earliest
ages of the world. And yet the jelly-fishes are almost pure water! Think of the miracle of the tiny
springs, made of sea-water! Think" of the jelly-
fishes floating about in the sea, driven by the wind
and the tide, Avith not enough locomotive power to
avoid the beaches or the rocks, and yet swimming
through all ages! They have eyes and ears and
nerves, and they are beautifully fitted for killing
their prey; and they live on life, and they die, and
pass away as we do, and leave their children to
carry on the struggle as they have clone.
You ask about the origin of the world. The development of the gaseous mass was wonderful
enough, but it is not nearly so marvellous to me as
the development of the jelly-fish. All origins are
miraculous to ine. and the forms of living things
are beyond all human comprehension.
A more gloomy view of the actual world situa-
ation than that now given by Signer de Miehelis, the
Italian Commissioner for Emigration, Avould be hard
to find. What adds to the blackness of the picture
is the fact that its painter had every reason to give
it as cheerful a tone as possible. He is the official of
a country which has more inhabitants than it can-
support, which must find an outlet in emigration
for hundreds of thousands of its citizens. Here is
his report, country by country:
Albania—Because of the unstable political situation and the grave economic crisis, emigrants are
not adAriscd to go to this country.
Austria—The present conditions, made more serious by the recent depreciation of the crone, make
Italian emigration here impossible.
Belgium—Though the population has been diminished by the Avar, it is sufficient for the labor
needs of the country.
Bulgaria—Because the labor supply has been increased by the refugees from Thrace, Dobruja and
Russia, there is no place for foreign Avorkers.
Czecho-Slovakia—the fall of the mark, which
makes it impossible for local industries to compete
Avith Germany, and other factors have here created
an economic crisis much the same as that in Poland.
Denmark—Severe economic and industrial crisis
throughout, the country and much unemployment.
Esthonia—Power of absorbing Italian emigration'—nil.
Finland—Can be considered for the present, at
least, as a field absolutely closed to our emigration.
France—Superfluity of Avorkmen except in the
districts of Dijon and Nancy.
Germany—Less unemployment than in other
European countries, but emigration not advised because of the low and changing value of the mark
and the regulations handicapping foreigners.
Great Britain—No reason for nourishing hope at
present, as unemployed number 1,700,000.
Greece—Critical economic situations, especially
because of the conditions in Macedonia and the continuance of the Avar.
Hungary—More than ever a country of emigration, as unemployed are numerous.
Jugoslavia—Bad economic conditions, overabundant labor supply, low Avages and Ioav value of currency combine to mnke it unadvisable for our en-
i grants.
Lithuania, Luxemburg, Monaca, Netherlands,
Norway, Poland, Portugal and Rumania—All suffering seriously from unemployment. No hope, even
in the near future, for Italian emigration.
Russia—Until its industrial activity has been resumed, we must limit ourselves to developing any
agricultural concessibn we obtain. Workmen should
not go there unless they are strongly backed by
Spain—Industry stagnant, business paralyzed,
unemployment general.
Sweden— Possible only for a feAV artisans skilled
in crafts little knoAvn here.
SAvitzerland—About 100,000 noAv unemployed.
Turkey in  Europe—Cost of living extremely
high and more workers than work.
Argentina—As in, nearly all South American
countries, a very grave economic crisis, which! is becoming more and more alarming, makes the usual
emigration to this nation impossible at present.
Bolivia—Mining industries almost paralyzed because of lack of demand. Offers, however, a magnificent field for colonization by well organized companies Avith strong backing.
(Continued on page 3) 9
Capitalism and Coal
IN the history of capitalist production in this
country no other industry has had the same fundamental importance as that of coal-mining.
The Avhole fabric of manufacture and trade has been
built up on the use of the one form of fuel that,
until recently, Avas commercially utilisable. Thc
great centres of population (outside London) are on,
the coalfields or close thereto. Every great industry has developed in an area Avhich is, virtually, coterminous with a great coalfield.
Not all the coalfields are, of course, of equal, importance. Some of them, even, some of the more extensive, have a diminishing influence Avithin the
capitalist system.
Those that matter are in: Fife: the Lothians;
Lanarkshire; Northumberland; Durham; South
Yorkshire; Derby and Notts; Lancashire; Staffordshire; and South Wales.
Having considered the last-named in a special
article and nothing of vital import, having occurred
since that study appeared last October, except that
prices have continued to fall and unemployment and
low Avages to prove themselves a chronic rather than
a temporary feature. South Wales will not come in
for treatment in this number.
The coalfields with which we are, on-this occasion concerned a**e those whieh supply the steady
demand for house coal, the comparatively regular
requirements of the railways, gas and electricity
plants, the varying needs of general industry, and
of the iron and steel trades, the diminished wants
of the shipt-bunkering business and the profoundly
disturbed export market.
As a general rule, the miner does not trouble
himself with any thought as to Avhat becomes of the
coal which he cuts and sends to the pit mouth for
loading into the wagons in the colliery siding. He
applies his toil to the coal and thereby gives it value
and, having done that, lines up at the office, draAvs
'his pay and goes away to his home or, in some few
cases to the meeting of his lodge. He has been so accustomed to a state of affairs in which the coal that
he has sent up the shaft has automatically disappeared and the manager has asked for more that
he has never worried himself about the disposal of
the commodity which his labour produces ont of the
rock face.
Prosperity and Contentment.
*As long as British capitalism was expanding, as
long as fhe market for British-made commodities
continued to absorb them and send over here for
more, as long aft British shipping Avas busy and prosperous, as long as British coal found a ready sale on
the Continent and in South America, so long did
the indispensible commodity called coal make its
way, unchecked as on an endless band, from the pithead to the mineral-train and thence by rail and
dock to the market.
The British miner had some excuse fcr taking
himself seriously and walking iip the floor of every
conference serenely conscious, that his organization
Avas the back-bone of the Avorking-class movement.
The whole structure of commerce and industry rested upon his labours and without his agreement to go
on producing the commodity with which steam
could be generated, capitalism Avas helpless.
Industry runs out of coal much sooner than commerce runs out of cotton, Avoolens, boots and other
manufactures. So long as the British miner had a
monopoly of supplying coal to the export and home
markets he was, given moderate intelligence and
honesty on the part of his officials, in an impregnable position.
Causes of the Obsolete Organisation of the Miners.
It is true that the miners were slow to organise
into unions and still slower to come together into a
nation-wide federation. They had the advantage of
working in association and of living, in village communities by themselves. They had no lines of demarcation caused by peculiarities of craft and trade
to divide them.   They had, on the other hand, no
particular skill to protect. They lived under de:-
grading conditions and they were constantly being
"diluted" by the bringing in of agricultural Avorkers with a much lower standard of life.
In Lanarkshire and South Wales, organisation
Avas only achieved wilh the greatest difficulty by
reason of the fact that, in the former area, masters
like Stewarts of MurdostoA-vn and Houldsworths of
Collness had introduced loA\r-paid Irish immigrants,
the victims of famine and poverty in their oavu
•country, whose real menace of a lower standard of
wages and conditions Avas disguised and presented
as an antagonism of religious faith and national
Smillie in the Clyde Valley and Richards in Monmouthshire, to whose pioneer Avork so much of the
miners' organisation in these areas was due, encountered- almost insuperable difficulties in overcoming the jealousies of religion and of race which,
in places like Motherwell and EbbAV Vale, it has for
two generations been the calculated and deliberate
aim of the master-class to aggravate and prolong.
It was factors such as these, counting for all too
much on some of the coalfields, which hindered the
effective exercise of an industrial power Avhich economic conditions had placed in the hands of the
Avorkers. *
Today, Avhen not only has the coal market become international, but the proletariat of Bengal
and of Kail an, newly recruited from the rice and
mullet-fed peasantry of India and of China, is sending up cheap coal from the rapidly developing collieries of the East to bunker ships, formerly getting their fuel supplies from Durham and South
Wales, it scarcely becomes a miner's leader to talk
in terms of contempt, of "the Asiatic mind."
With capital flowing steadily from South Yorkshire to Cammel Laird's extensive colliery properties in India where, last year, the wages scaled down
from ls. l^d. to lid. a day (see Report of Department of Statistics, India. Prices and Wages, 1922,
p. 212) and Ellerman cutting rates at Castleford and
going more and more into Indian coal, the Avorkings
of Mr. Hodges' agile mind seem a little in need of
attention and improvement.
In the nineteenth century it Avas Irishmen and
Lithuanians who Avere employed to weaken the resistance of the miners. Today, it is Indians, Chinese, and Kaffirs. Only last week there was news of
the loss by South Wales of a South American coal
contract of thirty years' duration as a result of
South African price-cutting. Nantgarw cannot compete with Natal. Black labor is given preference
over white because it is cheaper. There can be no
hope for a miners' organisation that does not take
into consideration the raising of the Avages and
standard of life of the black, the yellow and the
dark-skinned wage-workers of Africa and of Asia.
At this moment, the menace in the mind of every
thinking miner is the competition Avith British coal,
pf the coal produced by the low-paid and overwrought miners of Germany. A memorandum, prepared officially for the M.F.G.B., states that "it
will be seen, therefore, that the total loss of coal
exports to Russia, Germany and France, as compared with the pre-war period, amounts (for 1921)
to a figure of 19V- million tons of coal.''
In France, in Belgium, and in Spain, as in the
United States, the miners are, according to "thc
Iron and Coal Trades Review," being met with demands either to work longer hours—to forgo their
eight-hour day—or to accept less wages, to enable
their masters to retain their markets. Even the
Germans are. not exempt from attacks on the eight-
hour day, inspired by just the same arguments.
As for the position in Spain, the facts are significant. The Compendium, in December, 1920, recorded that Seymour Berry and D. R. Llewellyn, the
South Wales coal-owners, were extending their interests in thc Asturia Coalfields of Spain.   The same
publication, in May, 1.922, states: "Coal mining
trouble in Spain. The employers have notified, their
men of the decision, stating that it is impossible to
compete with foreign traders unless wages are reduced, the only alternative being to close their
The Bosses' "Double Cross"
Berry and Llewellyn, who know a thing or two,
went to Spain. They cut wages in South Wales
"to compete with foreign traders" on the Spanish
market. Then they even matters by cutting wages
in Spain "to compete with foreign traders," presumably from South Wales. Next January they Will
try to swing it across South Wales once again and
so on—till Frank Hodges asks them to refrain in
the interests of his Ten Years' Truce of Mammon.
But European competition is not the permanent
danger, it may pass. The competition of Africa
and of Asia has come to stay, to become more deadly.
The Communist (London)
(Continued from page 2)
Brazil—Local conditions make emigration here
most unadvisable. Italians who have lived in Brazil
for years are uoav finding it necessary to return to
Canada, Chile, Colombia, Costa Rica, Cuba, Nicaragua, Panama, Paraguay, Peru—Economic and
financial conditions at present, particularly in Canada, condemn emigrant to hard times.
Mexico—Workmen not counseled to go here, in
vieAv of the grave situation whieh the natives are in,
but the country offers an outlet for business men
with capital! or with goods to sell.
THE Acts of 1799-1800 had been designed to
extinguish trade unionism. The Acts of 1824-
1825 were involuntary confessions of the failure of that design. If trade unionism were still an
evil, it now seemed to be a necessary evil. While it
might be kept in hand, it could mot be destroyed.
One could not have the god, capital, without the
devil of organised Avage-labour.
The year 1824 had been a year of "good business," of constant employment for the "hands,' of
rapid accumulation of profits, and of reckless speculation. So it continued, until nearly the end 1825.
Then, at the moment when perpetual summer seemed
most assured, the crash came. Industry was brought
almost to a standstill. The hands had produced such
an abundance as to make themselves superabundant.
Four years elapsed before any appreciable recovery
Avas made. During this period, trade unionism far" 1
disastrously. All resistance failed to prevent a general fall in wages. Organisations perished in attempting to stem the tide of depression. Many angry
disturbances occurred, in which hunger-maddened
Avorkmen answered violence with violence.
"Wretchedness, ruin and misery swuIIoav up all
in their vortex," said a Member of Parliament. "A
very large portion of the working-classes were approaching starvation," declared another; "the best
Avorkmen could not find employment; the large farmer was reduced to a small farmer, the small farmer
was becoming a labourer and the labourer Avas becoming a pauper."
It was at this time that the movement, for Parliamentary Reform was rapidly increasing in dimensions and vigour. The -Industrial Revolution had
made the old electoral arrangements for representation in Parliament hopelessly inadequate. Large
manufacturing centres like Manchester, Leeds and
Birmingham had no independent representation,
while places barely discoverable on the map had
such representation.
The misery and discontent of the time and the
popular colour "riven to the -ideals of the Reform
agitation, drew many of the Avorkers to look to political reform for the redress of those economic grievances that trade-union action had failed to secure.
The Liberal and Radical leaders of the middle-class
(Continued on page 5) . *m*m*****w
m,-•**.,#*. im H0i»
Western Clarion
A Journal ol History, Economics, Philosophy,
and Current Events.
Published tAvice a month by the Socialist Party of
Canada, P. O. Box 710, Vancouver, B. C.
Entered at G. P. O. as a newspaper.
Editor Ewen   MacLeod
Canada, 20 issues     $1.00
Foreign, 16 issues     $1.00
H_ -if this number is on your address laJbel your
X /^subscription expires with next issue.    Renew
■ ■ "promptly.
AN analysis of Manitoba election returns shows
Comrade George Armstrong, S. P. of C. candidate in Winnipeg, to be counted out. George
Avill very likely enter a vigorous denial at the use of
the words "counted out," but we are in the realms
of arithmetic noAv and are under the spell of the
figures on the proportional representation election
return sheet, Avhich looks like a book page of logarithms.
Winnipeg sends ten members to t)hie Legislative
Assembly, and for the ten seats there were nominated in this election (July 18) 43 candidates.
Of the 43 candidates two received the required
quota, only one of them—-Dixon, I. L. P.—receiving
a surplus over the number required to secure election, the quota being 4030.
Comrade Armstrongs first choice ballots totalled
1273 and at his highest point, after thirty other candidates had been counted out, leaving twelve besides himself, he reached 2126, whieh left him 1904
short of the quota and 636 under the next highest,
total. He received, therefore, 853 second choice or
surplus, votes. Of these 853 second choice or surplus votes 558 were apparently inherited from labor
candidates, so-called, of one sort or another, and 295
attaehed themselves from other sources. Thus he
First Choice Ballots    1273
From Dixon (I. L. P.)      187
From Hammond (Workers' Party)....        4
From Henderson (Workers' Party)       14
From McCarthy (Labor Party)         4
From PopoA'itch   (Workers' Party)     261
From Sullivan   (Labor Party)        24
From Winning (A.F. of L. & LLP.)       64
From Others       295
Total     2126
Of the 43 candidates 13 saved the deposit of $200,
that is to say, only three of the thirty-three candidates not elected saved the deposit, Comrade Armstrong's name being among the three.
Of the first choice ballots cast for the 43 candidates, Armetrong's 1273 stands ninth. Comparison
between this and the votes recorded in the name
of the Workers' Party has been asked for from us,
and here it is . The W. P. had three candidates and
their first choice ballots recorded these totals:
Hammond .    102
Henderson     194
Popovitch     788
Total (first choice)   1084
This shows a difference of 686 between their high
est and lowest candidates.
The comparison shows, therefore, that Armstrong's first choice ballots alone totalled 189 over
the total combined first choice ballots cast for the
three candidates of the Workers' Party.
Of the second choice, or surplus ballots cast for
the three W. P. .candidates Hammond received 10
(all from Dixon), giving him a total of 112; Henderson received 88 (from various sources), totalling
282; Popovitch received 251 (from various sources),
totalling 1039. The total vote cast for the three W.
P. candidates, including second choice and other
ballots, totalled 1433, the difference between their
loAvest and highest candidates on second choice and
other ballots being 927.
The comparison shows further, therefore, that
Armstrongs final total covers a majority over the
final combined total of the three W. P. candidates of
The first choice ballot is, of course, the real
gauge of working class opinion from our point of
view, and in the jumble and medley of such a variety
of candidates of all shades and colors the Winnipeg
result has certainly shewn some appreciation and
understanding of our work and outlook. Our tactical critics and opponents will surely see now the
importance of workingfclass education and understanding, and devote their attention to the reality
of the problem at hand, whieh is to remove the mass
ignorance of the Avorking class concerning its status
as a class of propertyless Avage workers producing
the wealth of society, and without knowledge of the
real basis upon Avhich society carries on all its operations.
Winnipeg has been recently the battleground of
dispute over; organisation, policy, international affiliation, tactics and what not, and a serious examination of the representation sheet we have just been
studying shows the measure of influence the dispute
has had on our felloAV workers outside. They are
apparently unaware of any need for tactics as we
understand the use and application of the term; they
are certainly unaware of the nature of the problem
of Avhich they are the most important-part. The
evidence as we see it is all our way and emphasises
the importance of an educational programme which
strikes at the root of the problem confronting us:
working class ignorance.
The disparity betAveen the votes cast for Hammond, or Henderson, on one. hand, and Popovitch on
the other, all members of the same organisation and
sponsored by it, is indicative of confusion Where
complete organisation Avas supposed to exist. Our
attention is drawn to this particular feature especially following the continuous advertisement
these same men have given to the importance of organisation and their own ability to build it. We
gently remind them of it for their good and for their
So the election is over, and the propaganda
keeps on more vigorously than ever.
We record a somewhat better assay this issue,
and cheers (and further efforts) are in order. Optimism, subject to encouragement, will prompt its
bearer to inordinate tasks, and the bearer, well
primed, may see possibilities anywhere. The matter
of getting Clarion readers brings the Clarion to
queer places and sometimes to places where it is not
a welcome guest. When Ave find that the Clarion
has been lodged in a place where it is not a welcome
guest Ave readily recall the biblical instance of the
gross wastefulness of casting pearls before swinei.
However, a letter lies before us in which extensive references are made to Miss Christobel Pank-
hurst and the Prince of Wales. Comment of the
Vancouver "World" on a speech by Miss C. Pank-
hurst (July 1st) is enclosed. Prepare: "Like the,
fire of Prometheus and the electricity drawn from
Franklin's kite her fire was from the height; her
remedy of the empyrean, from the source of universal dynamic, and to be conducted along a strained dialectic from the universal to the particular."
Our unkind letter-Avriter compares such Avisdom as
this to the soothing effect upon him of a Chinese
orchestra. This, we suppose, is the purpose of the
news-clipping enclosed with our correspondent's
letter—to show the influence of the press on those
"in high places," and that the P. of W., as one of
such is not to blame if he gets queer notions of "democracy" from such reading.
The result being, of course, that we are asked to
play schoolmaster to the prince and send him a
Clarion. Well, the sub. is paid for, but we'd really
be so glad if the prince were a coal miner, a logger,
a farmer or, in fact, anything* usefid.
Well, as Ave said, the assay comes up a little this
time, and the rise is long overdue after all the digging. Efforts for subs, on the part of our readers
are appreciated, not alone by us but by the neAV
readers. They'll never be happy 'till they get it-
Following, $1.00 each: J. Ross, E. W. Fane, B. E.
Polinkos, J. Wilson, F. Varney, H. J. Edwards, C.
F. Orchard, F. Reynolds, A. E. Cotton, G. Wallack,
T. Hanwell, R. Brown, J. T. Redfern, J. Lavery, R.
M. Alexander, J. Stark, D. T. Blackie, T. Benninger,
L. BeitsAvorth, A. C. Binson, R. Maxwell, C. O'Brien,
T. Scott, A. Griffin, G. Gemmell, G. G, Ross ("R"),
J. A. Mitchell, Arthur Jordan, Ben Dworkin.
Following $2.00 each: John A. Beckman, F. W.
Moore, S. J. Rose, John Rivers, Tom Sykes, John
Nelson, W. Fleming.
Following $3.00 each: E. Simpson, Sid. Earp, E.
M. Carruthers, J. M. Sanderson.
J. Knight, ('Frisco) $7.20.
Above, Clarion subscriptions received, from 28th
July to 9th August, inclusive, total, $62.20.
Following $1.00 each: T. Richardson, Ben Simpson (per Sid. Earp), W. Clarkson, S. J. Rose, Catherine C. Rose, R. M. Alexander, John Nelson, Ben
Following $2.00 each: H. G. Churchill, Katherine
Smith, "B.L.J."
John A. Beckman 50 cents; A. Tauren 50 cents;
Johni Rivers $8.00.
Above, C. M. F. contributions, received from 28th
July to 9th August, inclusive, total $23.00.
(Continued from page 1)
transition from Capitalism to Socialism is only a
question of time, and this is clearly felt not only by
the Avorking masses, but also by the more far-sighted
representatives of the Old World. Naturally, the
fact that the Soviet Republic exists cannot but expedite and facilitate the transition from Capitalism
to Socialism.
Nearly half a century ago, the Russian Nationalist Socialist N. K. Mikhailovski, in a letter to Karl
Marx, showed that Russia, basing herself upon the
peasantry, might make the transition to Socialism
sooner than the West European countries, and avoid
the intermediary stage of Capitalism. Karl Marx
replied: "Theoretically, it is possible that, basing
yourselves upon revolution in Western Europe you
may make the transition to Socialism and avoid
Capitalism, but I can hardly believe in such a possibility"
Today, not only among the advanced elements of
the bourgeoisie but in the ranks of a considerable
section of the proletariat, the idea of a possible passage from Capitalism to Socialism without a social
revolution is Avidespread. To this pacifist Socialism
the Russian Communists, paraphasing the words of
Karl Marx, might say: Basing yourselves upon the
Soviet Republic, try by .peaceful methods, without
blood or violence, to achieve the reconstruction of
the Avorld. We do not believe in the possibility of
such methods, but Ave shall welcome your proof to
the contrary.   Prove it if you can.
Preface by tht author.
132 PAGES.
Par Copy, 16 Oanti.
•ton copies up, SO cants
Wherefore Rejoice!
Sir:—"Current Topics" on Monday called attention
"to the most awful problem that has ever been presented
to a nation." Are we down and out? Is England, for a
century the lighthouse of the world, to be eclipsed? Will
the millions of unemployed walking our streets ever find
full employment again—or starve?
Truly the problem is awful and "aprpalling, and, unfortunately, "Current Topics" leaves the problem wdth us
The population of England has enormously increased
with the discovery of a plentiful supply of ooal. Sheffield
in 1801 had a population of 45,000, in 1911 454,000. England and Wales, 1801, eleven millions, principally a rural
population, supported by the land; today we have in this
tight little island a population of forty-five millions, out of
which only eight millions are rural papulation—the remainder must buy, beg, or steal the food by which they
live from other countries. Formerly by the abundance of
our coal, Ave have by our exports been enabled to purchase
our food, but at the present time we arei not doing so, and
gradually we are starving. Truly tbis is tihe most difficult
problem that has ever faced a nation.
In France the rural populatiion is twenty-two millions,
the town population eighteen millions (1911). France
has very little coal. Italy the same. But take away the
coal of England (or coal value) what can support us?
Back to the land say the Government, but it is not the land
of England.. Australia or Canada, and th© Government
will shortly tell us lo emigrate—or starve.—Yours etc.,
THE above, taken from the Sheffield "Daily
Telegraph" of May 23rd, will give you an
idea of the thoughts that, are beginning to
take shape in the minds of the un-class-conscious
slaves of Britain.
At the last election Lloyd George received the
backing of those Avho acquired wealth by shady transactions during the Avar—the neAvly rich. Today
■the big-financiers are demanding that things shall
be put ship-shape and the champion bull pedlar of
the world is' Avondering what kind of bubble he will
have to bloAV next. The international situation is so
complicated and so delicately balanced that without the support of the Labor Party no capitalist
government in Britain can stand. Consequently,
plenty of soft soap will be used when treating with
thc "sane" labor leaders. Also, it is quite certain,
that Lloyd George will retain power if possible,
even if it is at the head of a Labor Government
The pie-counter is narrowing, and the late friends
of the Prime Minister who have been pushed off the
end are ready to do anything for anyone who will
promise to alloAV them; to suck at the teat of a government job.
Serious troubles are developing in China. The
'' Chink,'' Avith the American capitalist backing, has
Avon the first round of the new scrap, but the Jap-
British combination cannot allow this. Uncle Sam
is manoeuvring to get the Japs and the Russians
fighting in Siberia'.
We should Worry! When it comes to paper playing the Russians have got everybody else skinned,
still at the same time the show is Avorth watching;
lightning change artists are on the political stage.
One thing is certain—things have reached a crisis
in England. Everything points to another miners'
strike this fall. The South Wales miners cannot
generate the quality of labor-power demanded of
them upon the Avages they receive. Now is the time
when  the  fools in  the  movement   are  the  most
thoughtless and those that are wise are the most
thoughtful. Take the economic situation in Britain.   I quote from Sir Robert Home:—
"We are suffering today from a failure of trade
and from the lack of industrial enterprise. These
conditions affect us more than they affect any other
great nation in the world; We depend more than
any other nation upon the floAV of international
trade. We have built up on a very narroAV base of
agricultural life a huge and top-heavy superstructure of industrialism, and Avhenever there is depression of trade we feel it Avorse than anybody else.
"If you can compare our condition Avith that of
France you will find that France has a very much
larger part of her population engaged in agriculture
and therefore these great depressions of trade do not
affect her appreciably, as compared with the results of our OAvn industrial life. Accordingly, until
this great depression disappears we cannot look for
any great improvement in our condition.
"There is another circumstance to which reference should be made. Britain has built up her great
position in the world by the fact that she has financed and carried out industrial enterprises in every
region of the globe. The raihvays, docks and bridges of the world stand to the credit of British enterprise and manufacture. From out of the City of
London there has flowed more money to fructify the
earth (and to exploit the slaves—C.L) than out of
any other city in the world.
"Unfortunately, there is no longer a floAV of capital to such enterprises; indeed the capital is not being asked for. People are not in a position to bor-
roAV as they Avere before, almost, upon any terms,
without the assistance of the government, and in
many cases they are unwilling to borroAv at this time
because they would have to pay too high a rate of
Meanwhile, slaves are existing on the dole. At
one city recently 15 babies died at birth or were
born dead, and the medical officer stated that their
mothers had been starved to such an extent that
the children Avere too weak to live. Capitalism can
no longer feed its slaves. Emigration is being encouraged to Canada, NeAv Zealand, Australia, any-
Avhere to get them scattered, so that they may starve
quietly or so that they will be in a position to defend thc "Bloomin' Hempire" in the next scrap,
and help to balance things politically between the
Reds and the ruling class of those countries in the
Britain wants peace because she is economically
and politically bankrupt. The situation in Egypt,
Ireland, India, and South Africa, etc., keeps her
statesmen busily engaged trying to hold back thc
advancing tide. Keep your lamps trim and burning, study and Avork as you never did before. We
cannot know too much. When the earth resounds
Avith the crash of the falling system with its out-
Avom creeds and moth-eaten gods it behoves us to
be ready. Those Avho understand will, if society
survives the shock, be called upon to direct, the rebuilding of a fallen Avorld, and to apply the accumulated knowledge of the Avorking class to the task.
The task that history has bequeathed to the proletariat: The abolution of AA-age-slavery, of capitalism,
by making our class oAvners in common of those
things upon whhm they in common depend.
(Continued from page 3)
did not hesitate to rouse the antagonism of the workers to the landed interests and to urge upon the
workmen, as a means of their liberation from the oppressive laAvs of the aristocracy, a radical reform
of the franchise.
In 1832, the Reform Bill Avas passed amid an excitement that bordered on civil war. The middle-
class had not failed to exploit all the misery and despair of the Avorking-class, and they had not been
at all backward in encouraging even disorder and
violence, so long as it was directed against the opponents of reform. When the Bill became laAV, it
Avas found that the working-class had not been included in the franchise. The Act signalised only the
victory of tho middle-class, as a Avhole, over the landed aristocracy.
In what circumstances did trade unionism revive
after 1830?
The recovery of trade, on the one hand, and the
disappointment and distrust created by the results
of the Reform movement, on the other, served to effect a revival of trade-union activity. From 1830,
production increased and employment eixtended.Th-e
revolution in transport especially raised the demand
for labour. In 1830, the Liverpool and Manchester
Raihvay Avas opened. The depression in agriculture
Avas also passing away. Another period of prosperity had set in. Trade-union organisation again came
to the fore, to participate in this prosperity.
In what form did the revival of trade unionism
manifest itself?
The failures of the past had impressed themselves upon the minds of the active trade unionists
at this time, as failures arising from lack of cohesion.
Success in the industrial struggle demanded a changed structure. Local organizations engaging in local
strikes could not hope to succeed. Large-scale
national organisation Avas required in order to ensure effective action.
In 1829, the Grand General Union of the United
Kingdom was formed to include all male cotton-
spinners and piecers. The Lancashire cotton-spinners, Avho had experienced more than once the weakness of local unions, took the lead in this neAV formation. The organisation, hoAvever, never went beyond the limits of a federation and in the end resolved itself into a federation of Lancashire local
In 1830. the National Association for the Protection of Labour Avas formed Avith the idea of inelud*-
ing all Avage-Avorkers. This also became a federation, embracing about 150 more or less local unions
belonging to the textile and other industries. Its
scope Avas confined largely to Lancashire and the
Midlands. In the course of a couple of years, this
organisation, as Avas the case also with the Grand
General Union, decayed. •
In 1832, the Builders' Union, representing most
of the suli-divisions of tlie building industry, came
to the front as a militant body. It was also a federation of more or less local unions. It had an elaborate and fantastic ceremonial, secret signs and
passAvords, and the usage of the oath, customs carried over from the period prior to 1824. In the early
'30's, the Builders' Union became notoriously a>
horrent in the eyes of the masters in that industry.
'The union rapidly grew in members and in militancy. The thoroughly aroused employers retaliated
With the "document"* and the "lock-out." The
Avorkmen Avere called upon to sign a document renouncing membership in the Builders' Union, with
the alternative of being locked out. Robert Owen
associated himself Avith the work of the Busts'
Uuion. In 1833, he expounded his commiunistic
policy to a delegate meeting of the organisation. The
failure of two large strikes, hoAvever, and the groAVth
of internal dissensions, had, by 1834, reduced the
Builders' Union to impotence.
By far the greatest experiment of the general
union type Avas the Grand Consolidated Trade Union
of Groat Britain and Ireland. It was founded early
in 1834. It Avas in connection with this organization
that Robert OAven figured most conspicuously in the
field of trade unionism. The Grand National Avas, for
him. not merely a means for securing immediate improvements, but much more, for the communistic reorganization of society.
It should be noted that 1he Headquarters of
Local No. 86 are at 134a 9th Avenue West. Business Meetings are hold every alternate Tuesday, at
8 p.m. Propaganda Meeting every Sunday, St.
George's Island (under the big tree) at 3 p.m.
All members-at-leage in Alberta and Saskatchei-
Avan should note that the Secretary of the Alberta
and SaskatcheAvan P. E. C. is R. Burns, same address
as above.
v il
mm**o\o^'tt*m*L    jMPMMBHWWMWBMMMBBMiBHBiBa
Economics for Workers
h \
PRICE (Continued)
WE have had platform, press, etc., haranguing over the increased prices of commodities during the Avar, as if it Avas something
The position Avas such in Canada previous to
1914 that a "High Cost of Living Commission" sat
in 1915, to find out the cause of high prices previous
to the Avar period.
I am going to deal with the prices of the last
century up to 1914 and endeavour to elucidate to
you all doAvn these years the various factors having
their  effect  on  prices,   vieAved from the Marxian
standpoint.   1 have painted numerous charts for my
classes that are easily understood but, unable to reproduce them in the Clarion I will deal in as simple
a manner as possible Avith figures.   If Ave folloAV the
production of gold Avith the rise and fall of prices
there is a striking similarity.   We have of course
some variations in the ups and downsi of prices due
to other factors.   From 1800 to 1810 prices rose in
Britain 85% due to the Napoleonic Avars.    Pricei
took a sudden fall due,to, the depression of trade
following the termination of the war; OAving to the
war market' being cut off something similar to what
we have experienced after the Great War took place.
From 1810 to 1850 prices fell 60%.   In that time wc
had variations due to the following factors.
High prices in 1818 due to bad har.vest; a great
fall of prices in 1823 due to tariff reductions. Ant
increase during the trade boom of 1825. A fall in
prices duirng trade depressions and financial crises,
Avith a very bad trade depression and low prices in
We find high prices during the Civil War in America as a result of the inflated currency in the sixties.
If Ave study the various countries we find a close
relationship in the rise and fall of prices.
If we take from 1890 to 1900 as the zero mark
and call it 100 we find the folloAving:
Years. Germany.       Britain.       U. S. A.
1840-50   136 128
1850-60  130 145 131
18601-70  130 151 140
1870-80  132 144 137
1880-90  108 113 115
1890-1900  100 100 100
1900-1910  115 110 117
The above shows us Iioav prices increased after
1850 caused hy a great industrial development which
Avas instigated by an increased production! of gold,
through the discovery of tho California Gold Fields.
This increased gold production whieh makes a
demand on commodities sends prices up, and you
have a thorough going trade prosperity with an increased employment of the Avorkers. On the other
hand an increase in prices resulting from a limited
supply, through a bad harvest for example produces greater misery.
We notice that prices fell from the seventies to
1896. The factor Which caused this fall Avas not only
the stagnation of gold production but also the improvements in the machinery of production causing
prices to fall to the new value. Through the improvements in the means of transportation Avith the
building of raihvays and ocean liners, the opening
up of large tracts of land in Russia, and America
supplying the Avorld's market Avith abundant food
supply and raw material, prices fell to their lowest
' mark of the last century in 1896. The same facilities of communication and transportation brought
into close proximity those lands Avhich, under the
spur of gold production since 1850 had greatly extended capitalistic Industry with enormous forces
of production in England, Germany and the Eastern
portion of the United States. After the crisis of 1873
the wildest industrial competition broke out among
them, which at times reduced prices below cost,
Which ended in tariff wars to limit the home market to foreign competition; Germany 1879, , France
18^1; and America reached its extreme tariff (Mc-
Kinley Tariff) 1890.
A protective tariff only temporarily raises prices
and cannot throAV off the effect of a world's falling
market. Through the great increased production in
the seventies with a stagnation in gold production
Avhen the new need of it arose, production far outran that of any previous period.
Prices fell rapidly, especially in foodstuffs and raAV
material, because those commodities poured in to,
tho world's market from the new cultivated lands
of Russia and America. Beef fell fast owing to the
introduction of the frozen meat of New Zealand;
likewise sugar, OAving to the growth of the beet sugar
industry and bounties to sell cheaper abroad.
The difficulty of increasing the supply of animal
products kept such commodities from falling as fast
during the falling prices previous to 1880, and animal products rose faster during rising prices.
Animal products, with thc exception of wool, had
fallen very little throughout the eighties, and not
until the eighties Avere Avell advanced did they fall,
as a result of the transportation facilities and the introduction of frozen meat. Tea also fell because of
the better machinery and improvement of cultivation in India which placed a better and cheaper; tea
on the market than that of China.    ..
Foodstuffs rose per unit in- Minnesota from 1873
to 1896 owing to demand. Although the farmer received more tor his grain, it could be: put on board
ship at a less freight rate, owing to the railway-
building after the Civil War. This Avas severely felt
in Europe, resulting from the railway and ship
building mania Avhich had helped the boom of 1869
to 1873 and Avlhich became the ieading factor in still
further reducing commodity prices.
Prices therefor fell until 1896. With the discovery of the Rand gold fields and the introduction of
the Cyanide process, Ave have another increased
gold production accompanied with increased prices,
which caused such great discussion previous to the
Avar that the Canadian Government appointed a High
Cost of Living Commission which brought in its report in 1915. In its report it sihoAved how universally prices were affected, thus:—
11 articles at 100 in 1900 rose to 134 in Canada
and Wurtemburg.
13 articles rose from 100 to 138 in Canada and
20 articles rose from 100 to 140 in Canada and
11 articles rose from 100 to 154 in Canada—1*52
The world price Avas 131 to Canada's 140.
We fiud that tf. S. A. and Canadian prices rose
higher than the most of other countries, especially
in food stuffs. The cause is to be found in the folloAving factors:—
Thc supply of meat declined relatively per capita of the population; an increased immigration,
with an increased urban population from 14% to
45-5% betAveen 1871 and 1911. Loans-to build rail-
Avays, with a 2V> times increase in the currency. The
neAv facilities of communication and transportation,
with Canadian trade entering the world's market
Avhich regulates prices.
In Britain these facilities of transportation had
the opposite effect as she was a country depending
on her foodsupply from overseas, and prices did not
rise so fast during the same period.
The production of gold was enormous, reaching
700 tons yearly in 1910.
On long periods Ave find, then, prices
Rose 85%; from 1800 to 1808.
Fell 60% from 1808 to 1850.
Rose 34% from .1850 to 1873.
Fell 40% from 1873 to 1896.
Rose 47% from 1896 to 1914.
The value of silver which was 15 to 1 in 1870 Avas
38 to 1 of gold 1911. Prices in 1896 fell in gold
standard countries and rose in silver standard
countries. This gave rise to the Bimetallism movement of 1896.
A. J. Balfour at Manchester October 27th. 1892
speaking on the subject said he Avould prefer such a
system of currency if it could be shown to give absolute permanency, and added, ': But of all the con-
seivable systems of currency, that system is assuredly the Avorst which gives you a standard steadily, continuously, indefinitely appreciating, and
which by that very fact, throws a burden upon every
man of enterprise, upon every man Avho desires to
promote the agricultural or industrial resources of
the country and benefiits no human being Avhatever
but the OAvner of fixed debts in gold."
This movement (bimetallism) AA-as a reflex of
the economic conditions of its time. Gold had so appreciated in value that it took twice as much in farm
products to buy an ounce of gold in 1892 as it did
in 1873; on the other hand silver and farm products'
exchange equivalents had not greatly altered. This
meant that the debts being paid in gold in the nineties which Avere borrowed in the seventies could
purchase twice the quantity of commodities, while
if they had been paid in silver the purchasing power
would have varied little.
With tli-e increased gold production and the rise
of prices after 1896 to 1914 the Bimetallism movement died because the repayment of loans had been
beneficially transferred to the debtor, side owing to
increased prices. The following table taken from
the United States Labor statistics of April 4th, 1913,
No. 114, shoAvs the following prices:
All com
1890 ....110
1896      78
1912 ...1.71
If we analize the above from the Marxian standpoint the different variations in price become clear. We find farm products had fallen the
lowest because of the great increased supply of
Russian and American Avheat, frozen meat, beet
sugar, etc., with the increased facilities of transportation), causing a greater fall in value in 1896. Clothing fell in price as a result of cheayer raAV material
and improved machinery.
The same causes affected Metal and Lumber.
The great increased production of gold Avith accompanying higher prices after 1896 sent farm products
up highest, followed by lumber, metal and clothing
in 1912.
Farm products not being adaptable to increased
production/ by machinery to the same extent (e.g.,
you may have milking machines but you cannot
groAV coavs with machines, or grow grain with machinery) therefor the depreciation of gold could not
be offset to the same extent'as in manufacturing
clothing Avhich rose the least-.
Next to farm products came lumber. Again you.
cannot introduce machinery to the same extent
(e.g., to grow lumber) and the bush is still going
further back giving a greater distance of transportation. Metals, belonging to natural resources, are
also limited to machinery of transformation and
transportation; so that Ave see commodity prices are
dominated by value, which Ave have already had under consideration.
Next Article: Prices continued; from 1914 up
through the war. WESTERN   CLARION
Paying Our Way
THE same principle Avhich governs individual
payment, applies similarly to nations. The
unit is merged in the collectivity; individual
enterprise summarised in trade statistics. The merchant class gather up the production of their respective countries and exchange it with each other, securing in the process profit and livelihood. They
neither cut, nor carve, nor carry. They merely
translate incorporated value into market price, ex-,
pressed in national currency, but in the terms of international exchange. T.n the terms of international
exchange, because market price is not set or controlled by individual or nation, but by the continually fluctuating conditions of the world market.
This process of exchange is based on money
value, on the par value of gold. That is, the unit
of national money—the £ stg. for instance—indicates a precise quantity of social labor. The value of
gold—in its time-settiug—may be "regarded" as
constant, but price is always changing in accordance with market necessities. And although over a
period of time, value and price equilibrate, in the
transient conditions of actual practice, they never
do. The technique of social production of a given
time puts the hall-mark on commodity value; the
volume of trade and state of the market govern
Capitalist exchange is based on sale; on exchanging all its production for gold. And in terms of gold,
payment is made. But with the mighty expansion
of capitalist commerce, actual gold became inadequate to the circulation of commodities. More and
more credit became a necessity, and only by continual extensions of credit could business be carried
on. Paper became legal tender, therefore, in token
of payment in gold, while gold itself—in bar or coin,
passed into the passivity of reserves, i.e., it acts iii
commerce as the gryroscope in mechanics as a stabi-
. User, steadying the constantly groAving baloon of
credit. So that, roughly, movements of specie correspond with movements of commerce. Potentially,
they correspond exactly. But in the actual ebb and
floAV of trade, Avith its shifting balance of "invisible"
returns, this correspondence does not always appear.
Consequently, the wealth of capitalist nations
appears as an increase of exports, not at all as an
increase in production. And it is calculated in the
moonshine of money profit; not in the fundamental
essential of social use. Obviously capitalist production is stimulated by the incentive of gain, not
for the benefit of capitalist society as a AA-hole, but
for the benefit of the capitalist class in particular.
As obviously, the advantage of the capitalist class
can only be secured in the exploitation of the governed mass. In tbis servitude is the key to the whole
position. Without this exploitation there could be
no buying or selling. For in a society economically
free, the principle of service would take precedence
over the interest, of profit, and it would be accounted
in the terms of value, not by the ratio of price.
'In commercial practice, consequently, commodities are not actually exchanged for gold, but, in
effect, for other commodities. It, is only in the final
balancing of international accounts that specie is
shipped—and then not ahvays. The "settlement"
is frequently postponed (especially in continental
Europe) even when, seemingly, it would pay better
to ship gold and gold is actually in existence. The
process of commerce is carried on by bills of exchange. * These bills ar« precisely similar to checks'
on a local bank. They are orders to pay stated monies to named individuals. They are bought and sold1
in the open market, at the current price of "money"
in international trade. They represent exchange
commodities (in goods, services or securities)^ and
the-condition of trade between two countries is reflected in their prices, in the prevailing rate of exchange. If one country exports more to another
country than it imports from it, the rate of exchange will move in favor of the exporting country,
and the price of bills of exchange will move in sympathy. If, for example, Britain imports more from
America than America imports from Britain, then
the price of dollars, as measured in sterling, in London, will rise, and the price, of sterling, as measured
in dollars in N. Y. will fall; because, since bills
of exchange represent, commodities shipped there are
of necessity, more bills on London, in N. Y., than
there are bills on N. Y. in London. Sterling in N.
Y. is weak, and the supply strong, because buying
in N. Y. has been light, and feAV people have payments to meet in London. While conversely, dol
lars are in demand in London, and the supply '' Avan
as the pale moon," because buying in London has
been heavy, and many people have payments to
make in N. Y.
The rate of exchange is determined, mainly, by
the volume of commerce, and the "mint par" around
Avhich the exchange fluctuates is determined by the
social labor in the gold unit (£, $, mks., or kr.), of
the respective countries. The mint par of dollars
and sterling is $4.83%; cost of shipment is 2%,
making par exchange of £1—4.86 2/3. If, thercfoie,
exchange moyed in favor of London, i.e., if 'dollars
in London fell to—say—$4.90, N. Y. would lose gold
to London. Conversely, if exchange favored N. Y.,
and sterling in London fell to $4.80, London would
lose gold, to America. The mint par of the franc is
25f 22c, shipment 8c: equals par of exehange * 25f,
30c; of the mark: 20m, 43p; ship 5p.: equals 20m.
48p. And trade vicissitudes happen to all alike. Gold
is lost on an adverse rate, because for an equal value
of gold of the same Aveight and fineness, one receives
a lesser value in exchange.
Let us translate this by the "moving finger" of
today. Sterling ih N. Y. is quoted at $4.45 i.e., £1
stg. is worth in N. Y. 18/— (about).
The franc at London is, 55f 60c; i.e., £1 sterling
is worth ih Paris 44/— (about.
The mark at London is 2200, (about) i.e., £1 sterling is worth in Berlin £100 (about)
Kr. at London is, 94,000 (par 24) i.e., £1 sterling
is Avorth in Vienna £4000 (about)
Lire at London is 9S.25 par (25.22) i.e. £1 serling
is worth in Rome £4 (about)
Florins at London is 11.48 (par 12) i.e. £1 sterling
is worth in Amsterdam 18/6 (about)
That is to say, that Britain is losing gold to Holland and the States. The others quoted are all losing to Britain.
The N. Y. quotations on Foreign markets, are,
(European) in cents.
Franc 8.25 (par .20) the dollar is therefore worth
in Paris $2.50. (about)
Italy 4.67 -(par .20) the dollar is therefore worth
in Rome $4.50 (about)
Belgium 7.75 (par 20) The dollar is therefore
worth in Brussels $3.00 (about)
Holland 38.80 (par. 40)
Germany .14   par 96)
Austria .00030 (par 24).
Hence Europe is losing to America.
Normally, an adverse exchange can be rectified
by gold shipments and so equalise prices (of commodities bought in exchange). Unless that, for purposes of credit security, or rate of interest, or stock
exehange ventures, the losing country deems it prudent to take the loss, hoping to recover itself later.
But in the cases given above, merchants in Britain
Avho go into the market for bills on N. Y. (i.e. for
dollars in America) must pay 22/6 in the £ stg; while
the liberty loving Frenchman Avho draAvs on London must relinquish for £1 stg—£2. 4/—; and thc
banana man must give £4; Avhile Germany and Austria may be reckoned as bankrupts. The relation of
Europe to America is similar. Clearly, Britain can
buy cheaper from Europe than from America. Yet,
she buys to her destruction. For it closes the doors
of her own factories, cuts off the foreign market, and
prevents the functioning of her slaves. To' agree to
trade almost seems to agree to war.   For to be ef-
*—Gold point.
feetive it must be Avorld wide, and go with a sAving.
The scanty trade of cautious "agreements" and diplomatic "settlements" is Avorthless as a broken
Avheel. Clearly there can be no specie shipments to
such an. extent. Gold does not exist in sufficient
quantity. And clearly there is no prosperity in the
transhipment of goods, on a credit which demands
such enormous interest on exchange.
The Allied Avar debts run into fancy figures. Allied Europe is alleged to owe Britain about £1%
billion. France owes over £500 million; Italy £500
million: and Belgium £9 million. The Avar debt of
Europe to the IT. S. goes into billions, (dollars).
Britain owes at least a billion dollars- France $200
million; Belgium $100 million and Italy $11 millions.
And there are other debts outstanding, and millions
of dollars of accrued (Unpaid) interest. Looked at
in the terms of present exehange, those figures
sparkle like an April morning.
Canada and the states are about the only countries with a favorable trade balance—and that precarious. The. exports of all others have declined,
in some cases, .almost to nonexistence. But without
.exchange of commodities on a large scale, not only
will exchange not maintain its present level, but will
totally collapse; or it might be balanced by cancellation of all Avar and floating debts. But that would
he a violation of the property right on Avhich the
whole edifice of capital stands, and none but the
strongest monopolies could Aveather the storm. If
budgets cannot be balanced without cancellation,
they will never be balanced at all.
To safeguard property right—that is Avhat stands
at the back of every political utterance, international
conference and diplomatic intrigue the world over.
That is Avhat inspires the Franco-British controversy
on Alien property in Russia—the oil and minerals
of the unexplored Middle East.    The Hague conference Avas but a smoke screen to hide the movements of Dutch shell, Empire steel and coal, and the
syndicate of the "big five" (Hritish finance).   That
is Avhy Rapallo was denounced and condemned. It
Avas a threat against private possession.    That is
Avhy Hritain and France quarrelled over the French
Treaty with Angora.   It Avas a menace to the "man
da+es" of the Near and Middle East, i.e., the newly
acquired resources of British exploitation.    That i?
Avhy Poland received support and "presents"—of
munitions—from the Allies.    As a bulwark against
Soviet Russia.    That  is, against the principle of
social  possession  and social  production  for social
welfare.    That avus why the Allies supported the
"Avhito "Republic of Georgia.    It was a means to
crush Russia in thc interests of private property, and
validate the fruitage from the immense oil investments of the Caspian.   Greece and Turkey battled
for Armenia and its borders and laid it Avaste—under the auspices of Britain and France respectively,
because,  from  tho  first   France had  acquired the
"right" to exploit part of ancient Syria, and from
the Greek, Hritain (Anglo-Persian oil) had the petroleum rights of Macedon.   That is why the "unspeakable Turk"  is allowed  his foothold  in Constantinople.   Because tho rivalry for thc hegemony
of Europe has iioav divided tho war victors: while
mortal fear of tho "groat king of tho North" holds
them in a common sympathy.    That is why there
are. oveywhere, wage cuts and strikes in resistance.
Because the cost of production must fail to meet
foreign competition.   The cotton mills of Lancashire
are idle, because profit distribution prevents the absorption of their products.   Reparation coal has paralysed British mining and brought "prosperity" to
the gunmen and sheriffs of West Virginia. The British engineers Avero locked out because the acquirement of thc Gorman merchant marine has tied up
millions of tons of shipping in British harbors, and
the slump in the Avar market prevents production
for profit.   Tho whole world has been sacked, that
profit and privilege might retain its "right" to the
(Continued on page 8) PAGE EIGHT
Socialist Party of
Analyzed and contrasted from the Marxian and
Darwinian points of view. By Bishop William Montgomery Brown. D.D. Its bold recommendation*-:
Banish the Gods from the Skies and Capitalists from
the Earth and make the World safe for Industrial
Seventy-fifth thousand now ready. Pp. 224.
Cloth edition, Be Luxe, $1.00.   This whole edition of
2,000 copies is a Christmas gift to the sufferers by
famine in Russia.   Every copy sold means a whole
dollar to them and much education to the buyer.
New  paper  edition,  25,000   copies,  artistic  design,
Publishers, 102 South Union Street, Gallon, Ohio.
Or from
P. 0. Box 710, Vancouver, B. C.
very beautiful, one copy 25 cents, six, $1.00.
"It will do a wonderful work in this the greatest
crisis in all history."—Truth.
Socialist Party of Canada
STAR THEATRE, 300 Block, Main Street
Sunday, August 13th
C. Lestor
(Second Lecture)
All meetings at 8 p.m.
Questions. Discussion.
"Wa, tha Socialist Party of Canada, affirm our allegiance to, and support of   th* principles mad profi-emme
of Mi* revolutionary working- olaaa.
Labor, applied to natural resourcea, produoaa all
wealth. Th* present economic ayatam ls based apon
oapitaliat ownership of th* maana of produotion, oonee-
quanjtly, all the produeta of labor belong to ths oapitaliat olaaa. Tha capitalist ls, therefore, maatar; ths
worker a slave.
80 long aa the oapitaliat olaaa remalna ln possaaalon
of tho rains of government all tha powers of ths Stat*
will b* used to protect and'defend Its property rights ln
the meana of wealth produotion and ns eontrol of the
produot of labor.
The oaptlUllst aystem gives to the capitalist aa ever-
ewalllng e-tream of profile, and to the worker, an ever-
tnereaeing measure of misery and degradation.
The interest of the working olaaa Ilea ln aettlng itself
fr«* from capitaliat exploitation by th* abolition of th*
wage aystem, under which thla exploitation, at the point
of produotion, la cloaked. To accomplish this necessitates the tranaformatlon of oapUtallat property ln the
means of waalth production into aooially oontrolled i
omic forces.
The lrrepreseible conflict of Interest between the
Italiat and the worker necessarily expresses Itself as a
struggle for political eupremacy. This Is the Class
Therefore we call upon all workera to organise under
the banner of the Socialist Party of Canada, with the
objeot of conquering the politioal powers for the purpose of aettlng up and enforolng the eeonomie programme of the working olaaa, as followsi
1—The transformation, aa rapidly as possible,
of oapitaliat property In the means of
wealth production (natural roeouroes, faotor-
toriea, mills, railroads, eto.)> Into collective
means of production.
I—The organisation and management of Industry
by the working olaaa.
I—The establishment, as speedily as possible, of
produotion for use Instead of production for
(Continued from page 7)
life of man, and its ownership in the wealth of society.
But the fundamentals of social necessity are not
thus voided and broken. They are but stemmed
back and in due time they will burst through the
frail bonds cf legality, imposed by temporary interest, and take their toll of reality in the broad
field of social principle. No man, however great,
can fling social necessity aside; no financier, however wise, restore the delicate mechanism of exchange Avithout the full application of social labor.
The application of that labor—in terms of profit-
is an impossibility. The wheels of industry cannot
turn till the market demand is effective. And the
market is dead beyond resurrection; for it has been'
stripped of the wherewithal to "buy," stripped
naked, because the labor of the world is the wealth
of the world, and if the labor of the world is idle-,
the market of the world must be stagnant.
The ruthlessness of war shattered the conventional refinements of plunder and brought the necessitarian economic squarely to the front. And the
logic of "the peace" is forcing the lesson home to
our consciousness. The commodities of the war are
gone, leaving behind them a long trail of astronomical figures. The debt represented by those figure*
cannot be "paid," for there is nothing wherewith
to "pay.
Thev are but a mortgage on the indus
try of posterity, a burden on human effort, and even
at that, the authority of capitalist society cannot
permit social effort, for it can only function at a
loss to private property, The "wealth," which those
figures show once existed, is all consumed, absorbed
into the, life and effort of society, and they can be
reproduced only by the service of new life and effort. For "payment" consists in the bondage of
man to the interest of class, in the further looting of
social production. If iron or cotton, or wheat is
"bought" they can only be "paid for" by the reproduction of equivalents, i.e., by the expenditure
of more labor. There is nothing outside of labor;
and it is plain as the sun in heaven that if social
labor received the total value of it's production
there could be no surplus, and consequently no
"sale." Payment is wholly a matter of credit; of
borrowing from the future- of continually augmenting the volume of indebtedness. And it is this immense augmentation of credit that is swiftly driving
capitalism to bankruptcy and ruin. • J'ust as the
same cause precisely humbled the power of Rome
and the pride of Greece; made Thebes1 and Memphis
names; and buried Babylon and Nineveh and As-
calon deep in the dust of centuries.
The "romance" of commerce is the tragedy of
slavery. Its enterprise is exploitation; its objective,
money success; its honor a legal process. Its "glory"
rests on degradation; its Empires on the bleaching
bones of misery; its power on cultivated ignorance;
and its wealth on the broken lives, the ruined hopes,
and the unconsummated efforts of men, struggling
under the impulse of must for the idealisation of
reality. It has wrung wealth alike from the tyranny
of need, and profit from the aspirations of hope. U
has planned and created, toiled and accomplished;
lifted society—potentially—from the limits of want
and hardship to an almost fabulous bounty of
abundance . For its blood stained gold it has traded and triumphed. For society it has accomplished
the economic revolution—the social perceptions of
social harmony in human satisfaction. And its end,
(lashed world-wide on its jangling wires of trade,
and written in the language of exchange, is posted
daily in the wonderful cities it has conjured for its
profit—and their desolation. R.
— of tht —
(Fifth Edition)
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