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Western Clarion Jul 15, 1922

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A Journal
Official Organ of
No. 871.
Twice a Month
VANCOUVER, ft. C., JULY 15, 1922.
Human Nature
IF one ia intransigent enough to follow the capitalist-minded one through the distractions of
"divide up," "the rewards of genius," and the
"rights of individual initiative," he will finally
come upon the wicket that opens into that great
realm—human nature.
To the mind stimulated by capitalist formulae,
Socialism is Utopia, incapable of realization by weak
and unstable humanity; a fool's paradise, continually voided by the "natural" perversities of the
"old Adam," To "sin" is innate in "human nature, '' says the illusioned wisdom of individual idealism. The erring heart of man muct be regenerated
before the conditions of life can ever be exalted; and
the inordinate greed of desire abrogated before happiness and contentment can reign in the pulsing
world of reality.   We agree—with qualifications.
There is a proverb that "human nature is human
nature." No doubt. But it is something more. It
is no constant of creation. It is a product of human
gregariousnes. It is a result of time and race experience ; and it reaches down in kinship to the very
roots of life. It is not merely an expression of hu-
j^e,,negative of generality. It is
| of a definite character of society.
l^i^*;^o^n*F'to its needs
Those needs and interests determine1
the organisation, and the nature of the
is the reflex of the time-group to
-Im politicaT society there are two economic classes,
the master and owner—the slave and worker; and
because of that primary division there are innumerable variations of class distinction. And also because of that first division, there is a general ideation, and a general nature permeating through the
whole social mass. It is "wrong to steal" because
political society has differentiated between "thine
and mine"; he who steals becomes degraded, because he suffers the "base" instincts of the fallen
man to dominate him, and subvert the morality of
political civilization. It is wrong to undermine the
foundations of class society, because it threatens the
supremacy of privilege; the guilty one is seditious
because the "inherent" evil of "human nature"
overcame the nobler concepts of property. It is
wrong to advocate "free love," i.e., the mutual
choice of individual man and woman, freed from all
economical compulsion; because it saps the security
of the bourgeois state; and the audacious one becomes a particularly conspicuous object of depravity. That is general mass ethic conditioned by interests, and upon it is based "human nature," conditioned by time progress.
Certainly it is wrong.to steal—in a society which
abhors theft. It is certainly uncomely to invalidate
class—in a society of privilege. Certainly immoral
to argue economic freedom to the bourgeois state.
But, it is a mind characteristic of the time which
cannot see that political society is a society of
thieves; and that cannot visualize the inherent immorality of a society that imprisons one for taking
a loaf and honors another for "acquiring" a railroad. It is a mind steeped in the prejudice of class
concepts which is unable to distinguish between
owner and master, worker and slave; and whose concept of freedom is the ruling class "right of opportunity." And it is a mind disturbed by flickering
appearance, perverted by the sophistries of ideal
ism, and rosetted with mythical divinities, which is
incapable of mastering the fundamental difference
—and the inner meaning of its implications—between thc ideal love of economic freedom, and the
subsidized 'romance" of bourgeois convenience.
Time was when thc conditions of society were
not the conditions of capital. For thousands upou
thousands of years Gentile custom held sway over
humankind. The ethic of humankind was then the
ethic generated by Gentile condition, and the human nature of mortal man was fructified by the conditions of Gentile organization. The means of life
were then the common possession of the primitive
commune. These means were the simple resource,
the crude appliance, and restricted experience oi: untutored peoples. The standards of life were precarious ; the mode of existence humble; the hazards of
chance great. Yet the kinship of the group developed a fraternity whieh has not since been equalled,
and will not again exist until society is reorganized
on the comprehensive volitions of the civilized commune. There was an equality of relationship which
finds no place, and could fill no function, in the unlovely standards of bourgeois success. Gentile
society had an ordered, rationale of reason which
was submerged in the political exigencies of organised priestcraft. And it had a dignity of character,
a spirit of equity, and a bond of communion which
became atrophied with the advent of the military
marauder and the predatory merchant. To steal, to
trade, to own, had no significance; for all that was
free to the needs of all. The only privilege that ex-
isted was the natural birthright of kindred; and the
fundamental passions of humanity were satisfied
vithout the fearful licentiousness of the capitalist
Ancient society, with its meagre resource and limited production, with its laws of kin and maternal
descent, developed an ethic consonant with its need
and interest, and its human nature its time ethic.
No full clansman would lie or cheat a brother clansman; but he practised both to a stranger. Within
the tribe human nature was kindness and help; to
enemies it was malignant and cruel. Save for natural calamit es, hunger and want and destitution
were unknown, and human nature would have revolted at the idea of individual ownership of the
means of life, hoarding wealth, or storing common
necessities for thc sole use of a particular class. The
sophisticated missioners of political lands were
shocked at the sexual relations (what they were
wont to call "irregularities") of the "heathen"
Tribes. But the tribal laws of marriage were sacred
and inviolate, and seldom broken, a state to which
the humanity of capitalism can lay no cleam whatsoever. Even in the realm of religion—mythical as
all religions are—it was a worship "in spirit and in
truth," reverence for a deified ancestor. Not at all
the conventional hypocrisy of mercantile Christianity, But the rugged human nature of capitalist
society is equal to almost any burden of imposition.
Human nature is a product of the evolutionary
process, and like everything in that process it is
adapted to changing environments. Surely there is
abundant evidence of that. The human natures of
the East and. the West, are incomprehensible to each
other. To the Westerner, the Chinaman is a "yellow devil," to the Chinaman, the Westerner is a
white variation of the same order.   The human na-
* .  -
ture of the. ecclesiastical middle ages revolted at no
cruelty for its superstitious dogma, the human nature of commercialism scornes that dogma and all
its works, but is equally hardened in its own field.
To the Hindu the cow is sacred; to the) Christian it
is a form of food. To the modern man, his wife is
inviolate; the ancient Greek offered her to his
guest. The South Sea Islander cherishes the skull
of his father in his hut; we are content with photographs. Some tribes ceremonially eat their dead,
we make the solemnity of death a picnic. An Iroquois Indian would not betray a comrade; politieal
times betray even their gods. An Australian aborigine can dine on an antique whale; we—would rath-,
er it were canned. Human nature always revolts at
the unaccustomed; never at the repulsive. Always
it condones its own time usuage; never an abstract
Human nature is not a thing—like a wooden leg or
a glass eye. Like digestion or respiration, it is a
concrete term for a temperamental function; an expression of the manifest of general environment on
particular constitution. Human nature is neither
kind nor callous, good nor evil, idealist nor pervfrt.
It is all, or any of those things, according to its immediate circumstances. And its immediate circumstances rest squarely on the fundamentals of life necessity; on self-preservation, food and reproduction.
Self-preservation has united man, and most animals,
into societies; the search for food has compelled and
maintained common endeavor,- and the laws of reproduction in association have determined social conduct. Through the countless complexities of continual change; through the interactions of ever varying
necessities, and the interplay of their mutual reactions, these three have imposed on social man his nature of virtue or vice.- his impulse of generosity or
greed; his strength or his weakness; his ambition or
his unadaptiveness; and the potentials of the ignoble
or wonderful aspirations of the ideal. They are the
pulsing theme of sentience; the red threading of reality round which, through which, and on which, life
harps her infinite variety of factual existence. And
according to thle circumstantial vicissitudes of the
transient age, and the social complex of roan, they
flash through the human soul, like the coruscating
heavens, lifting it on the wings of sublimity, or
dulling it to the deadness of stone.
There are all kinds of human nature in the same
society—as there are all kinds of men. Because
nature never fashions two things alike. Because in
the incessant play of change and necessity, life pivots
on the laws of adpatation. Because growth, though
it spreads (seemingly) in all directions, is impelled
by the need of the passing moment into particular
channnels—and the cycle, ever growing more complex, starts afresh with the self-same laws and the
self-same material, but from a new point of departure. There is an infinite scope and scale of variation, and the same outward environment, acting—
and reacting—on a different inner temperament,
provokes an unending diversity and pattern of human response. The same cause produced the human
races, but local detail differentiated in character and
color. A common necessity created God, but different climes clothed him with different attributes. A
common motive influences human association, but
differing interests checker the web of its destiny.'
(Continued on page 2) PAGE TWO
The Origin of the World
By R. McMillan.
If you were to see an atlantosaurus now, you
would get a shock of terror, for it was almost a
hundred feet long, a vast creature unlike anything
you ever saw in your life. But the atlantosaurus has
passed away, with nearly all his giant relatives,
so you will never see him except as I saw him, a
monster skeleton in a museum. But he was not a
"primitive." Oh, no; he was a giant, who lived
a few million years ago. The primitives were very
lowly, very simple, and very, very small. If ever'
you have a friend with a miscrop© and a love for
biology (the science of life), ask him to show you
an amoeba.
The amoeba is one of the primitives, but it is
not the first by any means. The first living thing
is lost in the mists of the world's dawn, and no
man can tell you what it was like. An amoeba
was one of the very early forms, and it exists even
unto this day. I think it is just the same today as
it was ages and ages ago, when it developed from
other simpler jelly forms in the steaming seas of
the infant world. The amoeba is a speck of jelly
composed of the gases oxygen, hydrogen, nitrogen,
and carbon. But it is not gas now; it is no more
an "element," but it is a combination of elements,
and it lives. It grows. It is so small that the human
eye cannot see it, and I have hunted for it for
hours together in the muddy water at the bottom
of my acquarium. I would take a glass tube (called
a pipette), and stir up the mud, and then remove
my fingers from the top of the tube, and allow the
mud and water to rush into the tube. I replaced
my finger on the end of the tube and lifted it out
ou the water, and there were the mud and water,
and I hoped amoebae, from the bottom.
Then I got my microscope, and put the mud
from the pipette on a glass slide, and placed that
under the microscope and watched for the living
aboeba. It is a slow process, but he who would
understand the origin of the world must be in no
hurry. When I saw the jelly speck at last, I was
as much interested in it as if it had been an atlantosaurus—more so. maybe, for it was one of the
world's first children. I watched the speck of life
for hours, and the longer I watched it the more
mysterious it grew. I watched till I forgot how
small it was—till it seemed like some vast amorphous (formless) living thing that was struggling
in conscious agony underneath the merciless eye of
the microscope.
That jelly speck was really alive! Yet it was
formless. It had no mouth, no arms, no legs, no
' nerves, as far as I could discern, and yet it was
alive. If I dropped a speck of nitric acid near it,
I could see it retract, as if it felt pain and had
feelings just as a man has. It drew back from the
acid as a man would withdraw his finger from a
red-hot plate. And the movement in each case
was the same—a movement which the scientists
call "reflex action." When a man gets burnt he
does not stop to think why he withdraws from what
burns him; it is done by automatic stimulus, by
reflex action. So in this jelly speck, invisible to the
naked eye, there becomes visible a something which
links it to humanity—the power of reflex action.
When the amoeba is hungry it moves; and so
does a hungry man. The amoeba has no feet, no
legs, and yet it moves. It projects a part of its
jelly mass in one direction, and moves after it. When
it comes across a speck of food—of what we call
organic matter—it pulls itself over the speck and
absorbs it. It has no mouth; it is all mouth. It has
no stomach; it is all stomach. It has no legs; it is
all legs.   It is a miracle!
But how does it reproduce itself?   All living
things must reproduce themselves, and how can
the amoeba do it? It cannot lay an egg as a hen
does. It cannot produce an acorn as an oak tree
does; but still it reproduces. But how? There is the
mystery. Life is all a mystery, and yet it is very
simple. When the amoeba is well fed and ready
for reproducing its kind, it shrinks in the middle
and breaks into two, and so you have two amoebae
where there was but one before. And these two
divide and make four, and the four make eight,
and so on through all human time. The amoeba
in my aquarium today is the direct descendant of
the one that was born in the grey dawn of life in
the world. Is it not wonderful? The amoeba was
born in the warm mud of ancient seas, by the combination of gases, driven by electricity. I wonder
what gas is, and what electricity is. A friend of
mine affirms that electricity is life, and I never contradict him, for I do not know what life is. Ions and
electrons are names given to electrical manifestations, and Sir Oliver Lodge says: "It is a fascinating guess that they constitute the fundamental
substratum of which all matter is composed." I
wonder what ions are, and what life is.
May I assume that you think you understand
what an amoeba is? Mind you, an amoeba is not
a real primitive, any more than one of our black-
fellows is a primitive human being. A blackfellow
is a very high form of human life, even though
some people say that he is one of the very lowest
of human beings. It is all a matter of relativity.
There are, and there weret very much earlier things
that "lived" before the amoeba did, and the reason
why I say so is simply that there must have been.
An amoeba, even though but a speck of jelly, is
really very high in the scale of life, and nothing
ever came into existence full-fledged and ready for
the fight, as Minerva is said to have done from the
head of her father Jupiter. Everything had to
develop from the simplest beginnings, and an
amoeba is not the simplest of all things; so there
must have been a simpler. But you can see that
the amoeba was one of the very early living things.
And it developed. It was born in the sea, and in
some cases it clothed itself in a shell of lime, with
the jelly protruding through tiny holes. I have
towed my silken net in tropic seas, and have captured, this shelly amoeba in millions, so that my net
was slimy with them, although fehey were invisible
to the naked eye.
These foraminifera, as they are called, exist in
countless numbers in the sea today. To them we
owe the chalk hills of old England, which are
really composed of what they call "Globigerina
Ooze." Think of all the time it must have taken to
deposit the "white cliffs of Albion" under the sea,
from the shells of these invisible amoebae, what
a change it was to make English land out of what
used to be the sea bottom! Think of the time!
Think of the miracle! Think of the glory of it all
in this "sad. old world" we live in. It is a miracle
world, once your eyes have been opened!
Prefaoe by tho author.
131 PAGES.
Tot Copy, 15 Cents.
Ton oopioi oo, M o-*nt» Mob.
Post Paid.
(Continued from page 1)
The same cause that drove man to his mate, through
change of time has diversified its satisfaction. ,And
the same force that urged the haunted man of the
wild in quest of physical and social satisfaction compels a continual modification in the conquest of desire, i.e., its attainment.
But precisely the same principle that carried man
from the primitive commune to servitude is steadily
impelling him from servitude into the higher commune of the social commonwealth. The same necessity that harnessed natural passion with political
monogamy is now breaking its long slavery and
driving on to the purification of mutual communion.
And the same spirit of invention and research which
modified the first social industry is again facing man
with the need of further centralization of socialized
effort. Coming face to face with this necessity, the
mind shall see a new light; the beast find a new nature. In the grim hour of necessity we shall discover the regenerating ideal; shall awaken to the
conceptual union of matter and spirit; and shall
scourge the money changers from th© temple courts
of humanity. For in the social administration of
life's necessities there will be no place for greed, for
Ibe ethic of gain shall have disappeared. There can
be no burden of privilege, and consequently none of
its sordid excess. And the mystery of false desire
shall lose its unimaginative forwardness, in the wonder and beauty of natural satisfaction.
Let us have a society where the! fear of authority
and the spectre of "artificial famine" are not; and
the human nature of capitalist exploitation will sheil
its character of degradation, "as the fig tree shed-
deth her leaves." Let us have a society where political devices no longer blight anc^^toderi human
aspirations and efforts, and man shallQ Bop a new
nature as surely as a change of clii
new flora. Let us have a society whi
privilege cannot enter; and that socie|
som like a fertile land. Let us have
omically free, and the natural passions
shall be ennobled with the new beauty of understanding. Let us have a society whose birth-right is
knowledge, and the human mind shall be garlanded
and its craven happiness have vanished away; and
man shall go, mated with the sweetest happiness.
Let us have a world where truth is) the final test of
things, and the human nature of that world must hi
fashioned in the image of its creator. R.
droits a
It will have been demonstrated to all and sundry
who have given any consideration whatever to the
bone-dry results of our Here and Now dissertations
recently, that the 'Clarion"' circulates among those
who, one of these fine days, shall inherit the earth,
but who in the meantime are not corpulent with
wealth and who, in fine, give ample evidence that
they at any rate will never be able to buy the capitalist out.
We have ample evidence on hand that these registrations of the "Clarion's" financial pulse are looked for and noted in many places, and we are not a
bit displeased at the manifestation of interest n the
"Clarion's" welfare. But we need more interest to
be taken in it and more effort, where it can be made,
towards sales and subs.
Any man of the reputed "deep penetration" who
studies our totals can see that the only solution is
to increase 'em.
Following $1 each: C. Redusko, A. Barnes, G. W.
Davidge, F. Harman. W. B. Mitchell, R. Sinclair, G.
R. Rnald, J. Schultheis, G. Beagrie, M. Goudie, J.
MacLean (per J. Hubble), J. Dohohue (per W. A.
P.), J. Hodges, D. MacLeod, Geo. Paton, F. A. Charters. ,#
J. Falstrom, $1.50; Harry Williams, $3; Parry and
Sim, $3; J. A. and T. A. LaFleche, $2.
Above, "Clarion" subs received from 29th June to
13th July, inclusive—total, $25.50. HP^w===555Pa»?
Concerning Value
THE following is the continuation of an article
I left unfinished some six months ago* At
that time I closed with the quotation here
given which is repeated in order to ensure continuity.
"No matter what may be the way in which prices are
regulated, the result 1b the following:
(1) The law of value dominates the movements of
prices, since a reduction or increase of the labor-time required for production causes the prices of production to
fall or to rise	
(2) The average profit which determines the prices
of production must always be approximately equal to that
quantity of surplus value which falls to the share of a certain individual capital in its capacity as an aliquot part
of the total social capital. . . . Now, since the total value
of the commodities regulates the total surplus-value, and
thus the level of the average profit and the average rata
of profit—always understanding this as a general law, as
a principle regulating th© fluctuations—it follows that the
law of value regulates the prices of production."
"Capital," vol. Iii. page 211.
The explanation here given has excited considerable comment to which it is my intention to devote some little consideration, as it helps to illustrate
one of the points 1 have been driving at in this particular article.
Prof. BohuirBawerk, for instance, has this to say:
"There can clearly only he a question of an exchange
relation between different separate commodities among
each other. As soon, however, as one looks at all commodities as a whole and sums up the prices, one must studiously and of necessity avoid looking at the relations existing inside of thla whole. The internal relative differences
of price do compensate each other in the Bum total. For
instance, what the tea is worth more than the iron, the
iron is worth less than the tea and vice versa.
"In any case, when we ask for information regarding
the exchange of commodities in political economy, it is no
answer to our question to be told the total price which
they fetch when taken all together, any more than if,, on
asking how many fewer minutes the winner in a prize race
had covered the course than his competitors, we were to
he   told  that   all  the  competitors  together  had  taken;
twenty-five minutes and thirteen seconds It is
no answer at all; it is simple tautology. For, as every
economist knows, commodities do eventually exchange
with commodities—when one penetrates the disguises due
to the use of money. Every commodity which comes into
exchange is at one and the same time a commodity and the
price of what is given in exchange for it. The aggregate
of commodities, therefore, is identical with the aggregate
of the prices paid for them; or, the price of the whole national produc-* is nothing less than the national produce
itaelf. Under these circumstances, therefore, it is quite
true that the total price paid for the entire national produce coincides exactly with the total amount of value or
labor incorporated in it. But this tautological declaration
denotes no increase of true knowledge, neither does it
serve as a special test of the correctness of the alleged law
that commodities exchange in proportion to the labor em-'
bodied in them."
— 'Bohm-Bawerk, Karl Marx and the Close of His System, pp. 72-75).
"A law of value," says Prof. Skelton, summing
up the above, "has to do only with explaining the
proportions in which separate commodities exchange with one, another, not with a total in which
all differences are averaged out." (Socialism, a
Critical Analysis, p. 132).
The exasperation of the worthy professor will be
readily understood when we consider that he was of
opinion that:
"Value grows not out of the past of goods but out of
their future Value cannot be forged like a hammer,
nor woven like a sheet What production can do is
never anything more than to create goods in the hope that,
according to the anticipated relations of demand and supply, they will obtain value."—(Bohm-Bawerk. Capital and
Interest, p. 134.)
That is to say that value is generated in the process of circulation; that it is the exchange ratio between commodities determined by the conditions of
the market and, by reason of. the mechanism of the
market, necessarily expressed in terms of money.
*   See Western Clarion 16th Nov. 1921.
Which means that, to all intents and purposes, it is
a price. For Marx, on the contrary, value is generated in production. Necessarily so, seeing that it is
created by labor. It would appear that Marx and
Bohm-Bawerk have something entirely different in
mind when they use the term "value." ,
It is usual to define exchange-value as being '' the
quantitative ratio in which any two goods or services
arc exchanged." (Prof. R. T. Ely). "In fact,"
says Marx, '' in speaking of a value, the value in exchange of a commodity, we.mean the proportional
quantities in which it exchanges with all other commodities."    (Value, Price and Profit).
xnow a ratio or proportion is neither a thing nor
a quality oi a tiling, it is a quantitative proportion
between two or more things or between the amounts
oi some substance or quality which is common to
those things. Further, it does not exist until the
things are brought into relation to or compared with,
each other. That is to say that exchange-value is, a
laet of the market, lt is a matter of perception and
can be observed and verified. This brings exchange-
value into tbe same general category as price, seeing that both emerge in the field of circulation as
distinguished from that of production.
If now there exists, as I hope to show later on,
a difference between the concepts of "value" and
" exchange.<-value,' then the statement just quoted
from Bohm Bawerk, however correct it may be in
itself, entirely misses the point. Speaking to this
question Prof. Veblen has this to say:
"Marx's critics commonly identify the concept of "value"
with that of "exchange-value" and show that the theory of
value does nut square with the run of the facts of price
under the existing system of distribution, piously hoping
thereby to have refuted the Marxian doctrine; they have
for the most part not touched it."—(Veblen "The Place of
Science," etc., p. 422.)
It will be remembered that I pointed out that,
at one time, Value, Cost of Production, Exchange-
value and Price were, to all intents and purposes,
identical,,so much so that they were not differentiated. 1 also indicated a growing divergence between exchange-value ( as measured in terms of
labor-time) and Price. This led to the formulation
of the Cost of Production theory. Prices, in obedience to the conditions of the market (supply and
demand) were said to fluctuate about a point determined by the cost of production. At the same
time, in strict accordance with the point of view
prevalent at the period, the classical economists
were wont to impute to the products of labor a
"natural" value with which, it was inferred, the
market value would tend to coincide, assuming, of
course, normal conditions and a sufficient extent of
time. Any such coincidence, or lack of it, could not
however, be verified seeing that this "natural"
value was purely conceptual in its nature. I have
already quoted Adam Smith in this connection (see,
however, p. 233 vol iii of Capital) and as regards
Ricardo I find that Marx says "that Ricardo (who
doubtless realised that his prices of production differed from the value of commodities) says that the
inquiry to which he wishes to draw the reader's
attention relates to the effect of the variations in the
relative value of commodities, and not in their absolute value."   Capital vol. iii p. 211.
We may describe all this as a condition of affair*!,
in which', if we may so speak, we find Price, which is
a percept— the immediately obvious thing, occupying a place on the right and the concept Value just
taking form on the left while exchange-value, resting on Cost of Production, occupies a central position.
At this point, Marx takes up the as yet nebulous
concept of value and gives it consistency, by pointing out its nature as a "social reality," and validity by demonstrating its serviceability in analysis.
Usefulness, by the way, is the only justification for
the creation of such concepts. He further showed
the increasing divergence between value and price
of production, due to the development of the competitive phase of capitalism, more specifically to the
increasing tendency to an average rate of profit in
Which, moreover, the growing merchant class participated and to the extension of the credit eystem.
More recently, w*e observe that the passing of the
competitive stage and the development of the monl-
opolistic phase of the capitalist system has the effect of widening the gap between cost of production
and price and driving the latter still further to the
In view of Ihe line of development here set forth
it was, perhaps, only to be expected that the more
recent economists should have lost sight ofl the concept of value and have concentrated their attention
on the price-form. "For them," says Marx, "there
exists neither value, nor magnitude of value, anywhere except in its expression by means of the exchange relation of commodities, that is, in the daily
list of prices current."   Capital p 70.
The resulting investigation of prices and of the
factors concerned in their formation and, more particularly, the analysis of demand, led to the formulation of that group of concepts generally referred to
as the "marginal utility" theory. A more detailed
consideration of this theory will, of course, be necessary when vve come to discuss prices. In the meantime we may note that the mechanism used, namely,
Demand, Supply and Cost of Production is essentially
the same as that employed by Marx/when discussing the formation of prices ,necessarily so, seeing
that these constitute the facts of the market.
If, therefore, it should be found that there is anything in the werk of the Austrian- School, of Jevons and Marshall in England and of Clark and
others in America that may be useful to us, and it
is my opinion that there is, then there is no reason
why we should not avail ourselves of it. In any
case the least we can do is to study the science
not only from our point of view but also from that
of the enemy and, if possible, carry the war into
On the other hand the concept of value was
dropped by the bourgeois economists oecause, so far
as they were concerned, it has not only lost its
utility as an instrument in explaining price but had
acquired a positive degree of "disutility," as Jevons would say, through its association with the
Marxian system, particularly in view of the fact
that the only bridge between Value and Price is
by way of the lawr of surplus value, a category which
cannot be admitted by orthodox economics.
To be held at Second Beach, Vancouver, B. C.
Under S. P. of C. Auspices.
The success of the last picnic held by Local Vancouver No. 1, has prompted the cry for another.
So, another is to be held on Sunday 23rd July, at
the same place as before.
Directions: Assemble at Second Beachj Stanley
Park at 1 p.m. Bachelors are requested to bring
fruit. The family baskets will carry whatever else
is necessary to the grub supply for an enjoyable
day's outing.   COME ALL!
Local (Vancouver) No. 1
Next business meeting of Local No. 1 will be held
(July 18th) in Room 12 (First Floor) Flack Block.
N. E. Cor. Hastings and Cambie Streets.
C. H. Lake, $5; -Jim Lott, $5; Walter Wilson, $2.
C. M. F. receipts from 29th June to 13th July, inclusive—total, $12. ,'
Western Clarion
A fa-anal mt History, Soonomics, miosoyky,
sad Ouirent Brents.
PaMiskea twice * month by ths Socialist Party at
Canada, P. 0. Box 710, Vancouver, B. C.
, at 0. V. O. aa a mnrspapsr.
Oaaada, 10 isamei
Wo**a\*\*S,   If   IfJUM
ghtmoott this aambsr is oa -four address label year
R/ytabscrlptioa expires with asst issue. Beaew
*"****• aromptly.
VANCOUVER, B. C, JULY 15, 1922.
A few days from now will disclose the outcome
of the campaign for representation by the
various groups and parties of working class
opinion in the Manitoba Legislature. The government elected in 1920 had a hard time to hold itself
together, since there had been elected several fairly
evenly balanced groups, all contending fiercely in
the battle of surface politics where no fundamental
issue was before them, for dominant position. The
year before had been the momentous time of the
Winnipeg strike, its effect had been disruptive in
the smooth groove of party politics, and the government of 1920 has been embarrassed ever since.
Winnipeg has been during the past few years the
scene of industrial dispute and political turmoil.
The mind of the workers there in 1920 was agitated
over the imprisonment of working class spokesmen,
yet the result of the election showed considerable
muddle as the prevailing state of mind. Since 1920
they have suffered the influence of programmes
and policies to occupy their attention and, from what
we can gather by reading their discussions, we miss
our guess if they are not muddled stall.
There has been achieved, however, a healthy interest in all matters affecting working class affairs,
and the task of the Socialist is to help it toward
understanding. Comrade Armstrong is described by
Lestor as "an old soap boxer of the plug variety,"
which! is akin to the arts degree among Socialist propagandists. Once elected, if a Socialist holds that
description and takes every opportunity that offers
for Socialist propaganda he shows a proper understanding of his job.
There never was a greater need for unity among
working men than there is in Winnipeg now. Tho
unity cry of course has visited that centre, but it has
been made without any serious consideration ofi the
basis of unity and it has been handicapped by the
recent history of those who have been shouting loudest for it. The variety of working class candidates
is due to divided opinion among the workers. Socialist education is the only course open toward unification of that opinion. Our campaign follows that
Vancouver comrades will observe the notice appearing elsewhere in this issue to the effect that
next business meeting will be held in the Flack
Block, Room 12, first floor. The address is 163
Hastings Street West.
For some time Local Vancouver has had in mind
thc matter of moving to more convenient headquai--
ters where, if possible, a little leniency might be a
feature in the matter of rents. Difficulties have
been encountered, not only in rental figures, but in
the matter of being able to rent a place at all. No
doubt had we been of the Apostolic Faith, The Order
of the Goose, a combination of perfectly respectable
blind-piggers or a company of loan or realty sharks,
we would have had welcome entry but, being Socialists, our presence would over-balance all comers y
any neighborhood.
However, the last landlord having lost money
somewhere and having raised the rent, another had
to be found and he has been found at the address
given above.   In the matter of mail use the P. O.
address: P. 0. Box 710, Vancouver, B. C.
a    a    a
Some enquiries have been made as to Comrade
Lestor's whereabouts, and when he is due to arrive.
His article in this issue on the Winnipeg election
campaign, indicates his present field of activity. The
campaign will end, so far as the present election is
concerned, on the 18th July, following upon which
date we understand Lestor will head west. It is
likely that he -will stop off at points en route and
make speeches, after the fashion of Socialist propagandists and distinguished visitors.   Anyway, there
will be a big crowd on the corner when he gets here.
#   #   »
Talking about corners: Local Vancouver's summer
campaign of street speaking is showing good results
in good addresses and rising literature sales. Mondays, Thursdays and Saturdays at 8 p.m. Here's the
place to sell literature. Get in and help; there can't
be too many on hand. Here's the place also where
you may discover your abilities as a propagandist.
Climb on to the box and open up.
Mr. Wellington Koo, the parade diplomat of the
Peking Government, has transferred the field of his
activity from Geneva to Washington. The very
clever and worthy Chinese was representing his
country in Europe in the League of Nations. For
some time he even presided over that estimable institution, and thus proved how high a Chinese can
rise nowadays within the circles of international
diplomacy if he only understands to swim with the
stream. Mr. Wellington Koo, further, participated
with solemn mien in the decision on the Upper Sile-
sian question. Now he is to participate in the settlement of the Chinese question, and it is perfectly
clear that he will have very much less to say in the
Chinese question than he did in the Upper Silesian
problem. Curiously enough, just twelve days before
the opening of the Washington Conference, a very
unpleasant accident happened—the Chinese Government has not paid the interest on its American
loan whicii fell due on the lst of November. To
put forward demands in the name of a bankrupt
Government is not a very enviable position.
The international position of China, in view of
the political dismemberment of that gigantic country, will in fact bc extremely difficult.   China passed
through its Revolution ten years ago.   The Chinese
middle class at that time overthrew with surprising
rapidity the feudal monarchy of tha Manchus.   The
Chinese bourgeoisie was, however, unable to retain
political power.   In Peking there is a clique of reactionary generals who style themselves the Government of China.    Further, in each province of
China there is a military governor with some thousands of soldiers.   The chief steals precisely in the
same manner as his subordinates, and the military
governors are fighting one another.    The Peking
Government has no authority outside Peking.   The
Chinese Republic serves only as a cloak for a brutal,
corrupt, and confused military rule. Ouly in one
part of that coutnry, with its 400,000,000 population,
is there a really republican, democratic government,
namely, in the big South China City of Canton,
where Sun-Yat-Sen is at the head of an independent
government.    The military governors at all events
pretend to recognise the Peking Government as the
supreme authority, while Sun-Yat-Sen has openly
declared war on the Pekin militarists.   The citizens
of Canton declare that it is their intention to liberate the country from military rule, and toi establish
a united democratic Chinese Republic.   Sun-Yat-Sen
was the most prominent spiritual leader of the first
Chinese Revolution.   He opposed the militarist development, and was striving with his friends of Canton to bring the Chinese Revolution to a successful
issue*  Sun-Yat-Sen was supported in the first place
by the students and generally by the young intellectuals who have grasped the idea that only together
with the workers and peasants of the country will
they succeed in defeating the Reaction.   Thus Canton is giving a newr impetus to the Chinese Revolution.   At Washington, Mr. Wellington Koo is representing the Peking government.   The Canton Gov
ernment is naturally disliked by the International
capitalists because the Chinese Radical Democracy
is ,iust as much opposed to the foreign exploiters as
ihey are to the internal oppressors. At Washington
the Peking Government has been recognised as the
uctual representative of China. To this Sun-Yat-Sen
answered that he will consider as null and voiu. ail
ihe decisions of the Washington Conference regarding China.
The prevailing chaos in China has been very
clearly utilised by the Japanese. The Japanese set
one governor or ruler against the: other, and thus
obtained very valuable concessions. For Japanese
capital, influence in China is an absolute necessity,
because in Japan during the last few years industry
litis greatly developed. Japan has neither iron nor
coal, while China, on the contrary, is very rich ir
mineral wealth, the exploitation of which in most
cases has hardly yet begun. The Japanese are striving to obtain from China the raw materials which
they require for the development of their industries.
Further, they desire to utilise Chine as a mnrket
for their commodities.
After the victory over Russia, the Japanese in
the first place gained the peninsul Liau-Tung,
where the Russians had built Port Arthur. At the
same time the Japanese obtained the railway line
whicii crosses Southern Manchuria. During thc
world war the Japanese exploitation of Chhi;*) made
great headway. Japan then seized Kiao-Chow from
the Germans, and in addition it laid its hand on the
railways and mines of Shantung. By such, meana
tlie Japanese succeeded in actually annexing i.ug-'
Chinese provinces with a population of many mi •
lions east and south of Peking. Notwithstanding
the bitter opposition of the Chinese population,
which docs not wish to be swallowed by Japanese
capital, Japan has since the end of the work war
obtained still more and more new positions of p> \'er
in China.
In opposition to the Japanese aspirations fo
economic predominance in China, America) puts forward the policy of the open door in China. Through
this open door any one is to be able to enter China in
order to do business undisturbed. What American
capital means hy the open door is obvious from a
proposal whieh recently was put forward by America. According to this proposal, American, English, French, and Japanese hanks, which are interested in China, should jointly establish a big consortium. All loans obtained up to the present by
China from individual states should be taker over
by this consortium. China would then have no
longer the separate foreign groups of capitalists as
creditors, but united world-capital. The inter)-
national group of banks would thus establish its
guardianship over the economic life of China, [t
is obvious that in such a fraternity the American
capitalists as the strongest would predominate.
Thus the open door does not mean free competition,
but the replacing of Japanese predominance in
China by that of America.
The Peking Government regards American predominance as the lesser evil since America is further off than Japan, and because the American capitalists would carry through their plans in a milder form than the Japanese. America would, if she
had her own way, still keep up appearances in
China, while Japanese militarism desires to trample
down China as it did unfortunate Korea. Wellington Koo, therefore, declared in Washington that
China demands unconditional political independence, that China must have control over her own
railways, i.e., the Japanese must give up the railways of Shantung and Manchuria. Wellington Koo
further demands that the concessions lately granted
to foreigners in China should be annulled. This, too,
is directed against Japan. It is true the bankrupt
gentlemen of Peking by themselves matter little, but
the American capitalists like to hear these voices.
Hughes, if he wishes to snatch from the Japanese
their Chinese booty, can pretend that America, acting unselfishly as usual, appears now as the protector of the suppressed Chinese people. Meanwhile
the directors of the America China banks are laughing in their sleeves.
The Communist Review, London. WESTERN   CLARION
THERE is no question in anyone's mind but
that the struggle for existence in highly developed Capitalistic countries is growing
more acute eaehi day. For the worker this is espec-
ialy true. When land—good fertile land—was
given away free both in the TI. S. and Canada, the
chances for a worker to emerge from his class were
excellent. With a few years of hard work a worker
had an opportunity to become a fairly prosperous
farmer. Today, however, the situation is reversed.
Land is offered free for the asking but the quality
is extremely doubtful or else, even if the land is
fertile, it is situated miles away from a railroad or
the money required to put the farm on a profitable
basis is beyond the means of the embryonic farmer.
No longer do we see huge caravans blazing a way
to the Golden West. No longer do we see workers
trending either by foot or wagon with their eyes lit
up by its rosy expectation. Where once were wagon
trails we now see snorting, smoky locomotives rushing through pell mell. The west is still here but) it
lost its golden garments—its golden lure—that is,
as far as the worker is concerned. Gone are those
days of hope; gone forever.
Robbed of his opportunities in the west, the worker sought other means through which he might
emerge from his class. He sought the glittering
gold of thc Klondike—but generally left his bones
glittering on some lonely Klondike trail. True, a
few attained wealth, but they were very few. The
great many starved and suffered untold pains so that
they could become rich overnight. They either remained to work for some exploiter of labor or left,
rich in experience. Even nowr workers are sacrificing their all, their very lives, for a chance to find
some gold in the dreary and icy lands of North Ontario for a chance to escape wage slavery.
The days of the gold rush are over. So the ambitious worker tries to become a petty capitalist.
Sometimes he .succeeds, but in general he fails. Not
being able to escape wage slavery by means of so
called liiii'd work and frugal habits, he relies on
chance. Ie becomes a gambler, a petty gambler if
you will. It seems to the writer that gambling increases directly in proportion to the increase of poverty among the masses. In European countries,
gambling is a craze. The peasant or worker will
spend his last sou on the lottery.. Why? Because
the lottery gives him a chance to become rich immediately. In reading about loteries we learn how
• ertain peasants or workers become rich through
possessing lucky numbers. That seems to be a
strong magnet for the masses. Lotteries are very
popular in Europe, so popular that recently even
German municipalities are using them as a means for
raising revenue.
In this country horse racing is a very popular
sport. Thousands attend the average horse races.
Horse racing is a profitable business not only to the
proprietors of race tracks but also to the govern-
u. ent. Those who are familiar with horse racing
know that the thousands who attend them are not
interested in the game from a sportsmanship, stand.
They go there for one thing—and that is to win
money, and win it quickly.   With two dollars, one
may win hundreds at a race track. True the great
majority do not win, but that fact does not make
much impression upon the minds of its devotees. A
few win, and that is sufficient. Although the) average bettor on horse races realizes in a dim way that
horse racing is more or less "crooked" he still keeps
lotting expecting his chance to come any day. He
is a worshipper of the Goddess of Chance.
Oil stock investments also seem to lure a large
number of workers. Here again Ave see a few workers suddenly become rich through the ownership of
oil stock. This is also a gamble. Most of the time
the stock the worker buys is valueless. The fact
that John Jones or some other miserable worker
made a fortune out of oil stocks is more than sufficient evidence that the oil game is reliable as far as
the average worker is concerned.
Barnum was credited with the statement that a
sucker is born every minute. It is only a part truth.
A sucker it seems is born every second. A suit of
flood clothes, a pleasant smile, a good line of chatter,
a few pieces of beautiful engraved paper and presto 1
you are a stock salesman. It requires very little
effort to find dupes. They are everywhere and many
are workers.
Real estate seems to attract many unsophisticated
Avorkers. Without hesitation they will buy lots in
some forsaken place, always waiting for the so-
called land values to rise either through the erec-
lion of some large factory near by or through some
Miracle. Most of them are very conscientious in
their payments. They live in an unreal world. They
have dreams—dreams unfortunately based on thin
air. Any land shark will tell you that the average
purchaser of lots invaiiably quits making payments.
He soon becomes discouraged.
And then again we have such petty gambling
games as cards, roulette wheels and dice. Here we
see workers trying to get rich at the expense of their
fellow-workers. Here again Ave find card sharks and
dice shakers Avho use the average player as a dupe
as a means of earning easy money.
Despite all their efforts, the fact still remains that
Ihe workers as a class are doomed to stay workers
the rest of their natural lives. The adage "Born a
Avorker, die a worker," seems to hold true in this
country. Gambling on chances is a poor Avay of getting rich. The same is controlled by unscrupulous
men who in the main profit at the expense of millions
of dupes. Even if gambling were put on an "honest" basis, it still would help the Avorker very little
as a means of escaping the hard knocks of life. A
dollar Avon today means tAvo lost tomorrow.
Why then depend on luck or chance? Why not
depend upon science, Avhich is based upon real, hard,
cold facts. Socialism, that is, the science of human
society, teaches us that the cause of all the poverty
existent in modern society is due to certain Avell-
establishcd causes. The elimination of these causes
means the elimination of poverty. Socialism also
teaches us that these causes can be eliminated only
through the concerted action of the mass as a unit
and not through the action of individuals, microscopic parts of the mass, who base their actions on
n.cre chance. JOHN TYLER.
Manitoba Election Features
THE stage is noAv set for the Manitoba Provincial election, and the prospective candidates are already beginning to take the
stump and peddle the political wares of the parties
they represent. Polling day is on the 18th of July.
Up to date there are forty-three chosen for the 10
vacant Winnipeg seats.
Liberal, Conservative, Progressive. Workers' Party, Dominion Labor, I. L. P., Independents, Moderation and S. P. of C.
"You gets your ballot and takes your choice."
There is one thing about it: We shall know how
many real Sicialists there are on the voters' list in
Winnipeg after this election.
The S. P. of C. candidates are George Armstrong
and Sydney Rose. Armstrong, as the Comrades
know, served a year in jail following the Winnipeg
strike. It was during his incarceration that he Avas
elected to the Provincial house. George is universally respected, even his political enemies paying
tribute to his sterling Avorth and honesty of purpose.
He is an old soap boxer of the plug variety, and is
one of the best knoAvn men in Manitoba. Sydney
Rose, the other S. P. of C. candidate, has been a member of the Party for many years, and has done much
work for the organization.   He has a clear under
standing of the proposition and should make a good
team mate for Armstrong.
The I. L. P.
Two conflicting elements are trying to reconcile
their differences in the I. L. P. organization, the pro
and the anti-Socialists. The "pros" are of the
Blatchford type and the "anti's" of the Henry
George brand, with a dash of Dixonism thrown in.
The pro's are in a majority, but the anti's have more
hot air aud the latter dominate. Some members of
the outfit recently wavered and strayed into the
Workers' Party, but their love of liberty Avas so
strong that the Dictatorship of the Workers' Party
executive caused them to return to their Utopian
home, wagging their democratic tails behind them.
The S. L. F. was the ghost of the S. D. P. This
organization lost itself in its pants during the war,
Queen, Heap, Blumberg and others were members,
and when the Workers' Party cleaned it up Heaps
and Blumberg found their Avay tc the I. L. P., while
Queen, not able to stomach either the 1. L. P. or the
Workers' Party Avas left high and dry and is running on his lonesome. The attitude of the I. L. P.
toAvards us is one of fear. The average member of
this outfit knows that his knowledge is not equal to
that possessed by the average member of the S. P.
of C.   He is fully conscious of his mental inferiority
The Dominion Labor Party have tAvo candidates in
the field. This bunch is thc Avreckage left when tha
1 L. P. was formed. The latter took upon the D.
L. P. as reactionary The difference between them
cannot be perceived; they are both on a vote-cateh-
irig ticket. The fend between them is due to personal matters. Officials of the A. F. of L. are at
loggerheads with the 0. B. U. The ;T„ L. P. is heavily
lepresented on the O. B. U. central council; the I).
L. P. on the Trades and Labor Council. The two men
who are running were nominated by a call of Trade
Unions by the Trades Council where 30 responded
ont of 7,000.
Workers' Party.
The Workers' Party depends for its existence here
in Winnipeg upon a fight between a Ukranian unit
of the O. B. V., mostly lumber Avorkers, and the
executive of thc 0. B. LT.   The latter decided they
would not stand for a separate language unit, and
demanded that the Ukranians become part and parcel of the general organization. Mr. Popovich, Avhose
history is one of exploiting the national Ukranian
sentiment, and Avhose record during the war was a
series of retreats into the backwoods every time
any patriotic Britisher raised the cry of "foreigner," Avas not. prepared to let the bunch get out of
his hands and succeeded in holding them.   This was
the nucleus of the Workers' Party. Mr. Kaplan, of
whom much is knoAi'n, together with others, not lumber Avorkers or any other kind of workers, dropped
into a: home amongst these people, and started their
machinations.   They tried to levy blackmail on Bob
T-'usscll during the last Dominion election, and are
an unprincipled gang.   T have no respect for the
Workers' Party.   The 1. W. W. were bad enough,
but they had at least courage.   The Workers' Party
are yelling about Moscow arid the Third International, but they are too cowardly to join it.   It is a
fly-trap, and may function as a reform agency for a
Avhile, but it has no future.
You will see by the above what we are up against
and I sincerely hope that the boys in Vancouver will
do their best and raise what cash they can to help
in the fight, "We are putting all there is in us into.
Hie conflict, and although avc are small in numbers
yet we have behind us all the social forces on the
The S. P. of C. never was so strong as now. Amid
the Avreckage of freak parties it stands amid their
ruins stronger in knowledge and consciousness than
ever before. Events have vindicated our position
and left all our opponents with nothing but a platform of helpless ignorance to stand upon.
Editor's Note.—On account of the deposit required by the Provincial Government, of Manitoba, $200
for each candidate, Comrade Armstrong's name was
the only one the Comrades of the S. P. of C. in Winnipeg managed to put forward in official nomination
day, July 8th. PAGE SIX
Economics for Workers
OLD has many advantages over all previous
mediums of exchange.
1st: lt is generally accepted and can be used for
ornaments and other industrial uses; is easily con-
a erted into bullion, or vice versa.
2nd: Is chemically uniform.
3rd: Has great durability.
4tih: Has great value in small bulk.
5th: lt is recognisable by its weight and through
the acid test.
6th: It is beautiful to look at, hard and portable,
easy to handle; it retains the government stamp
easily and long; it was bound to win. out in competition with other money, such as skins, tobacco or
cattle money, or other metals.
All previous money fluctuated easily in value,
therefore it had less stability than gold. Gold has
other remarkable qualities. One grain can be beaten
out to the extent of 75 square inches so that it takes
365,650 leaves of decorator's gold to form one inch
in thickness or the 1200th part of the thickness of
ordinary newspaper.
One grain can be draAvn into a Avire 500 ft, long,
and one ounce made to cover a silver wire 1300 miles
long, therefore it has many industrial uses combined with the money use.
Diamonds have a number of "gold qualities."
They are of small bulk and are portable, but diamonds have not the divisible quality. A twenty
carat diamond is Avorth more than a twenty-one
carat diamond, and cannot be converted into coin or
When tobacco money existed among the Colonists
in America Ave had the value fluctuation so great as
to cause riots.
In 1628 the tobacco price was expressed in silver
at 80 cents. The cultivation of tobacco increased so
rapidly that it fell to 12 cents in 1631. In order to
raise the price steps were taken to restrict its
growth. Carpenters and mechanics were forbidden
to grow it. These measures Avere ineffective, and
by 1639 the price of tobacco expressed in silver was
six cents. It was then enacted that half the good
and all the bad tobacco be destroyed, and therefore
all creditors accept 40 lbs. in place of 100 lbs. and
the crop of 1640 be not sold undei*25 cents a lb. and
50 cents in 16*41. This law also was ineffective,
causing great injustice (the historian says) between
debtors and creditors by impairing the obligations
of their contracts, in 1645 tobacco was only Avorth
two cents a lb., and in 1693 the tobacco price was so
low the people wanted its giwth forbidden by legis-
lation. The request not being granted, large bands
Avent through the country destroying the crops. This
evil had reached aueh a stage that it was enacted in
1684 that if any persons to the number of eight or
more should go about destroying tobacco crops they
should be judged traitors and suffer death. In 1727
tobacco notes were issued and legalized. These Avere
in the nature of certificates of tobacco deposited in
government Avarehouses. These notes were convertible into tobacco just as our notes are (supposedly)
convertible into gold. Therefore we see the disadvantages of grain or tobacco money.
Platinum AA*as tried as a currency in Russia in 1828
but was a failure. It had many qualities fitted for
money, particularly in durability and density, which
made it easily distinguishabel. It oxidises slowly,
but there has been no great amount of use for it in
commerce. Because of its high melting point the
cost of manufacturing coins was high, and it was not
easily converted back into bullion (or vice versa)
like gold, so it was abandoned in 1845.
The social monopoly of money has been obfained
by gold, or the "token money" which represents
gold. Token money is silver, copper or "paper,
money" whieh circulates above its commodity value
because of its promised redemption into gold on de-
mand. Gold as the basis of our money system is a
commodity, its value determined likei all other commodities by the amount of socially necessary labor
«'ibodied in its production. When we treat gold
as a commodity Ave find an intelligent explanation
of the problem of prices. Gold has the two characteristics of all other commodities, usefulness to human society, and is a product of labor.
Marx says: "As a measure of value and a standard of price, money has two entirely distinct functions to perform. It is a measure of value in as
much as it is the socially recognized incarnation of
human labor. It is a standard of price in as much
as it is a fixed weight of metal. As a measure of
value it serves to convert the value ofall other commodities into imaginary quantities of gold. As a
standard of price it measures those quantities of
gold In order to make gold a standard of price
a certain weight must be fixed upon as a unit.''
Only in so far as it is a product of labor can it
serve as a measure of value. The change in the value
of gold does not affect its function as a standard "of
price. Marx says: "With English writers the confusion between tho measure of value and the standard of price is indescribable. Their functions as
well as their names are constantly interchanged."
"No matter hoAV its value varies, the proportions
between the values of different quantities remains
the same. However great the fall in value, 12 ozs.
of gold will still have 12 times the value of 1 oz.
of gold, and in prices the only thing considered is
the relation betAveen the different quantities of gold.
Since, on the other hand, no rise or fall in the value
of an ounce of gold can alter its Aveight, no alterations can take place in the weight of its aliquot
parts. Thus gold ahvays renders the same service
as an invariable standard of price, however much
its value may Arary."
Engels puts it: " The value of the precious metal
from which money is coined is itself determined by
the amount of socially necessary labor time required
in its production. ' Gold cannot determine its own
value. One oz of gold equals one oz of gold does not
express value, as value is a social relationship and
can only be expressed Avhen a commodity is brought
into exchange with another commodity for its equivalent, which is the socially necessary labor embodied
in production. Value does not reside in the stamp
that makes money legal tender. The precious metal
Avas used as money long before people ever thought
of stamping or coining it. The people in Queen Elizabeth 's time weighed the silver whether it was stamper not, the stamp on the coin having no significance.
The names of our coins are traceable to the time
when precious metal passed by weight, before coining and stamping existed. The Shekel of the ancil-
ent Hebrew Avas a Aveight. The livre of France, the
pound sterling of England, were all significant
The pound sterling comes from the time when the £
was a pound weight (12 oz.) of silver—troy weight.
20 penny Avorth: 1 oz.
12 oz—£1- 240 penny-480 cents.
When gold was introduced the same ratio of gold
to silver was called a £1. the pound sterling has been
reduced in weight so that 20 shillings is but 5/18
of a pound weight.
The sovereign equals 123.27 grains 11/12 fine,or
113 grains pure gold.
The dollar equals 25.8 grains 9/10 fine or 23.22
pure gold AA'hich equals $4,866. to the £1.
Dollar and sovereign's relative value is based on
the amount of gold in them. One ounce of gold at
the U. S. A. mint is Avorth $18.60; the price paid in
Britain is £3 17/— 101/*.
Of course the market price today is higher, but I
Avill explain this when dealing with prices.
The Bank of England pays individuals £3 17/— 9
keeping the 1M> pence for interest, and the Bank Act
of 1844*.requires the Bank to receive gold at that
The introduction of so much paper money in
England not only forced non payment in gold but
also loAvered the silver standard of the small coins
Avith alloy metals, as they would be melted and sold,
as silver had a higher market price, than that of Dhe
coin long maintained. Knowledge of money being
greater than in previous years led the governments
to suspend payment in gold. The season for this
suspension Avas because they were unable to meet
the demand.
Sir Thomas White in the .Montreal Gazette of
March 5th, 1921 told of the Toronto case where a
demand Avas made for half a million in gold from a
bank in Toronto, and to save a panic the Government Avas forced to suspend payment in gold.
The Canadian laAv compelled 25% of gold to back
the first $30,000,000 paper above this gold, equal to
thc excess.
Before the war $113,000,000 in paper.
Before the war $90,000,000 in gold.
The people need so little for small change the
full amount is never demanded, and while the gold
demand has been suspended, the law now allows
only 25% gold up to 50 million instead of 30 million!
as before the war.
In 1919 there were 298 million dollars Dominion
notes.   237 million dollars bank notes.
This great increase of currency had a great effect
on prices, which I will deal with under prices.
When we go back to the 90's we have a great
fight between the politicians of the gold standard
and the bimetalists. Governments endeavoured to
force the taking of both metals as legal payment.
I think a short history of the failure of legislative law when it conflicts with economic law is
pertinent here.
The first secretary of the Treasury of the U. S.
A., Alexander Hamilton, because of the great variety of British and Spanish money circulating, inaugurated a gold and silver currency with the ratio
of silver to gold 15 to 1.
He fixed this as most close to the value of the
two metals at that time, but no gold was taken to
the mint because of the inaccuracy of Hamilton's
ratio. When his mint was built the ratio of silver
to gold was loAA'er, and it was more profitable to
take gold and purchase silver on the market, and
get the silver minted"' A dealer with one pound
Aveight of gold could get it minted approximately
into 250 dollars.
If he exchanged his gold for silver on the market,
and if the exchange be 15% silver to 1 of gold, by
taking this silver to the mint he coined 260 dollars
iu silver which had the same face value as gold,
avIiich meant 10 dollars more than if he took his
gold to the mint.
Then again the Spanish West Indies and American dollars Avere legal tender in both countries.
The West Indies dollar was heavier than the U.S.A.
dollar and the merchants were exchanging U. S. A.
dollars for the West Indies dollars, melting them
and ha\'ing them minted in U. S. A., receiving more
dollars. Gold Avas driven out of circulation and
silver was the circulating money because the ratio
of gold was under-rated by the Act of 1792.
When this Avas discovered President Jefferson
suspended the coinage of silver in 1806.
In 1834 the ratio declared was 16 silver to 1 of
~" This act overvalued gold, and silver became
Avorth more as bullion, therefor the act of 1792
drove gold out of circulation, while the aet of 1831
drove silver out of circulation for a similar reason.
T.t was 40 years after before the market ratio reached the fixed mint ratio.
In I860 $1,000 dollars in coin was worth $1045
dollars as bullion.
In 1870 $1,000 coin equalled 1,027 bullion.
In 1873 $1,000 coin equalled 1,003 bullion.
In France the ratio was also fixed at 15V& silver
to 1 of gold and as the laAV permitted the payment to
any extent in either metal the bank of France al-
Avays paid out the cheapest metal.
The Act of Feb. 12th, in the United States in
1873 made gold the standard, but as the ratio of silver was quoted 16 to 1 of gold and 16 ounces of
silver had a greater purchasing power than 1 oz.. of
gold, it was the act of 1834 that disposed of silver
and brought about the gold basis. The same effect
happened in England when the currency changed
from silver to gold before the passage of the act of
1816, which decreed gold to be the standard. It,
again, was a result of the ratio of silver at the mint
being unvaluated and the heavier coins were melted
and sold as bullion. Sir Isaac NeAvton, Master of the
Mint, in a report to the Lord of the Treasury stated
that silver bullion was worth tAAro pence to three
pence more per ounce than the silver coins, face
We saAv something similar with gold cropping up
during the late Avar, in England. In May 1920 six
men were implicated on a charge of melting gold
sovereigns into bullion; they were found guilty and
received 6 month's imprisonment.
They obtained somehow 110,000 sovereigns, which
the authorities confiscated, and at the trial it was
proved that they had draAvn from the Bank of England during 1919 gold Aveighing 18 hundred weight.
During December alone it was charged they disposed of bar gold worth 914 pounds sterling. Yon
will readily understand the reason these men, dia!-
mond merchants and barristers, did this, when gold
had risen in the market from the mint price of £3
17/_ loy2d to as high as £6—0—0. Many people
were surprised to learn that as much as 29/— 6d
was being paid for a sovereign (illegally of course)
but that is one reason Avhy the law Avas passed to
stop gold being paid on demand, as sovereigns would
have all gone to the melting pot. This is an abnormal incident of gold leaving its fixed price of
that given at the mint, or Bank of England.
We see therefore when the legislative law is in
conflict with the economic law it is obsolete and that
the gold standard of the various countries was
brought about by economic law before legislation
made it legal.
This fixed price of gold confuses the best of our
economists. Professor Fisher of Yale University is
one who was very confused Avhen he entertained the
idea of stablizing the dollar, because he fails, to differentiate between value and price. He spoke before the Ottawa Canadian Club in 1912 in a manner
as if because gold had a fixed mint price it should
be made to have a fixed value, and most people are
apt to think that way.
Let us not forget the fact that gold is a measure
of value because it is a product of labor, and that it
is a standard of price because of a fixed Aveight, that
it has become a measurement of value precisely as
a yard is a standard of length, the pint the measure
of liquid, or the pound of Aveight. As length and
distance can be stated longer and shorter than each
other expressed in yards, so the relative Avorth of
commodities can bc expressed in money. Thus
money is merely the expression of value, but labor
is the source of that value.
Professor Fisher in 1912, said: "I believe the two
great causes of the high cost of living is the great
production of gold, and consequently the expansion
of the Avorld currency, and the increase in the use of
cheques Avhich are used as substitutes of money, and
therefore tend to have the same inflationistic tendency." He then illustrated this by the story of a
domestic servant having 100 dollars in the bank for
15 years at compound interest, who would draw 150
dollars, yet who was SAvindled out of her interest by
the depreciation of the dollar. He wranted to stabilize the dollar by adding or subtracting the amount
of gold gijains to keep prices at 100.
He stated the government paid $16.80 an ounce
and asked if there should be any difficulty at fixing
the price at 5, 8 or 10 dollars. "We talk about the
law of supply and demand," he said, "yet the great
supply of gold does not lower its price because we
artificially hold it up." This is confusion with a
vengeance, as to have a measurement of value expressed in prices you must have some zero point to
measure from, just as length or weight, or zero on
a thermometer. Although you have an abundance
of summer Aveather it does not change the freezing
point of 32 on the thermometer. Fisher says, "If
we discovered gold in sea water tomorrow so that
gold became as common as sea pebeles, it Avould still
be worth $18.60 cents an ounce."
The war has disillusioned Fisher on the stabilizing
of the dollar. However, the "Ottawa Citizen"
quoted him frequently at this time, and in a letter
to the "Citizen" I endeavored to point out that
value is not measured by money, that the value of
the gold in the dollar has no genetic relation to the
value of a dollar as a standard of price, as the price
is fixed by laAV, but that gold would have a lower
value in its exchange for other commodities that had1
remained constant. Therefore the amount of gold
necessary in exchange for other commodities being
greater, it expressed itself in a higher price because
the value of gold Avhich is its relationship in exchange had fallen.
To put it plainer, let me use thc following llustra-
1 unit of gold—1 dollar—1 hour labor.
4 lbs butter—1 dollar—1 hour labour.
Butter would be 25 cents a pound.
If we had an enormous increase in gold production and no increase in commodities which, for simplicity, we will call butter, we might get this effect
with double quantity of gold produced in the same
time of 1 hour.
2 units of gold—2 dollars—1 hour labor.
4 lbs. butter—2 dollars—1 hour labor.
Butter would be expressed in 50c a, lb., yet there
has been no increase in the value of butter because
it still takes 1 hour's labor to produce 4 lbs., but the
value of gold has fallen, 2 units being produced in
the same time as the 1 unit previously. This question will be dealt with in more detail under price.
To understand the problem intelligently we must
also remember "that the quantity of money functioning as a medium of exchange is equal to the sum
total of the price of all commodities, divided by the
number of moves made by the coins of the same denomination, and the circulation of commodities can
only absorb the necessary quantity."
For example, if 1,000 dollars express the total
value of commodities, 100 dollars with 10 turnovers
might be sufficient currency. The inflation of the
currency during the Avar absorbed more than the
necessary quantity expressed in the face value of
the dollar. This seems a contradiction, but the system is full of contradictions and our opponents point
to Marx as being contradictory because he points out
contradictions. The explanation of the above contradiction is because the fundamental difference between paper money and gold money briefly stated is;
Paper currency is only a value in circulation, and
lias this value because it circulates.
Gold has value in circulation because it meets
commodities as an equivalent of value because of its
labor source of value, and, unlike paper, if it could
not obtain its equivalent value in circulating as
money it would be melted and leave the circulatory
Junction, as Ave saAv it illustrated in England.
Thc changing quantity of paper in circulation
changes the prices of commodities.
The circulation of commodities can only absorb
a definite quautity of gold, but will absorb any
amount of paper. The reason a definite quantity of
gold can only be absorbed is because gold, being a
value itself, can realize its equivalent as bullion and
leave the circulating function, as Ave have seen when
government attempted to fix the ratio of silver and
You would have to add an enormous amount of
paper money before its intrinsic value as a product
of labor would be reached, as paper is of very Ioav
value; that is why it is possible to carry on inflation
Avith paper money.
I, have endeavored to prepare you to deal with
our next subject: Price.
Book Review
HUGO STINNES: By Hermann Brinckmeyer. New
York, B. W. Huebsch, Inc. Cloth, 150 pp. $1.50 (U. S.
THIS is a brief story of one of those men who
stride the world like a colossus, but in a different sense than Caesar did. The modern
masters of the earth are not soldiers, nor are their
armies composed of such. They are at best insignificant looking enough, and often so in every
other sense. But their ownership of large industrial plants confers upon them all the powers possessed by the master of thirty legions two thousand years ago.
How much fiction and dramatic atmosphere
might be Avritten into the personality of our "great
ones" is common knoAvledge to readers of the "Clarion"; of little concern then are the little anecdotes
Avhich portray Stinnes as the hard working director of industry. That he rides on a street car
and dresses like a foreman might furnish a text for
a Sabbath sermon, or as an example to the extravagant slave; singular, if true, but it is not the source
of his wealth.
While peculiar to industrial magnates in this
country, the captains of industry on the Rhine, we
are told, are invariably of this breed. When we
recollect Avhat half-baked fools possess enormous
industrial plants, Ave lose interest in those indusj-
trial people Avho Avork eighteen hours a day and do
their figuring when they sleep. Of mores interest to
us is the statement of Stinnes himself: "When I
am about to start a new enterprise I always ask two
preliminary questions. In the first place, where ia
the man to organise it? Secondly, where are the
efficient workmen? (Emphasis ours) Like Byron's
little urn, these words say "more than many homilies."
The Stinnes fortune commenced early in the 19th
century with Mathias Stinnes, Avho operated a small
licet of barges on thc Rhine. Its history is the epitome of capitalist development in Germany. We
read of Mathias, riding rough-shod over petty government officials at the borders of the many principalities AA'hich then comprised the German Empire; of his taking trips to Berlin and, in the seat
of bureaucracy, overaAving the pompous officials
there. A verbatim account of Avhat old Stinnes said
to those retainers of the non-steam age would be of
infinitely greater value than Avhat Wellington said
to the Guard at. Waterloo. But, although! our author deals in generalities, Ave can Avell imagine what
the old felloAV said. Steamboats had visited the
Rhine in the year 1830, but Stinnes Avas the first to
apply steam to hauling bai'ges. His first tug-load,
displacing the labor of many workers, met with
armed resistence from those displaced. The pilothouse had to be iron-clad, bnt finally the steam-tug
••roved itself to be the fittest to survive. Not only
did it overcome the antipathy and energetic resistance of the slave, but. it pushed the old natural
boundaries of the German people into thc limbo for
things lost and, Avith its steam companions of the
land, set at naught the deliberations of tihe Avise
men who sat at Vienna to determine the boundary
line of nations.
From transporting coal in barges, Stinnes, in
tune Avith the infinite—or is it the timesf—proceeded to mine coal, build ships and produce iron.
Parallell Avith Stinnes there devoloped those other
great fortunes, Klockner, Krupp, Siemens, and
Kathenau. Of the last mentioned Ave had the news
recently that its representative Avas assassinated by
monarchists. As Avith these other familiies, the
children of old Stinnes carried on and extended the
enterprises thus begun,—no doubt to the tune of
Where are the men capable of handling the job?
Here AArc read of gigantic merges familiar to us in
the steel and oil trust, where, AA'ithin the confines of
a single company every particle is used up, passing
as it were from the great bridge girder and place
steel mills doAvn to the pin and nail factories. Coal
and iron mines, railroads and shipping, harbours,
chemical plants, paper mills and neAvspapers,—
(Continued on page 8) <v
Children's Corner
The Hotel of the Co-operative Commonwealth is
{.roing to be built by working men upon a foundation
of liberty so far as liberty is possible. The working
men and Avomen are going to live there, and the
key will have stamped upon it "Working class ownership of the means of life."
Literature Price List
ONCE upon a time there existed in a very large
city a very large hotel. This hotel contained over three thousand rooms. It covered an
acre of four acres and Avas sixteen stories high. So
you can see that it was no small affair. Everything
Avorked tolerably well, and although the numerous
families had their quarrels and petty grievances still
they managed to overcome these Avithout disturbing
ib-e general harmony. One day. hoAvever, the foundation of the structure started giving Avay and the
building assumed an uneven and curious appearance.
The inhabitants all started complaining to the janitor. In some rooms the stove pipes had become dislocated ; in others the Avater pipes had burst. Doors
Avould not latch. Some Avould not open and others
Avould not close. The different families started quarreling as they never quarrelled before. Children
started fighting. Working men, heretofore sober,
began to drink because they had no comfort. Everything seemed to go wrong.   Pendemonium reigned.
The janitor kept sending for plumbers and carpenters and workmen of every description, but as
soon as they had got one room fixed another Avould
go wrong, and sometimes when they had made a
special effort and apparently got things ship-shape
the foundation Avould give Avay a little more and
everything would go wrong again.
At last it dawned upon the tenants of the hotel
that they Avould have to either make the foundations
good in some way or another or find another residence that Avas more reliable. They started to examine the foundation themselves and found that it was
absolutely impossible for any building to stand upon
it and permanently retain stability, and they told
the owner, through the janitor, that they Avere going
to have another place to live in, and if he didn't provide one they would build one themselves. The
owner and the janitor both protested that it was the
best hotel, the biggest hotel, the finest hotel that
could be built, and they said the tenants were unrea:
sonable and hard to satisfy, and called th°n all
manner of names. The tenants, however, met together and talked the thing over and set certain of
their number to find a suitable locality where an
hotel could be built, and gave careful instructions
that the foundation was the main thing. Having
found what they required they all set to work Avith a
will and on firm solid rock they erected a building
suitable to their requirements. The new hotel which
defied both storm and frost stands today, and will
stand for many generations. .It is so much superior
to the old that the older inhabitants are surprised.
"To think," they say. "that Ave Avere so fooled as to
think the old building Avas a home Avhen it Avas in
reality broken doAvn.''
Now, children. Ave arc today living in an hotel
called Capitalism, and just you notice that everything in the Avorld is going wrong. We have Avars and
suicides, unemployment, murders and robberies, diseases and poverty and Avretchcdness of every description. Even yon children are far from happy because you feel and know there is something wrong.
You know and feel in a dim Avay the Avorries and
cares of your parents.
The foundation of Capitalism is giving Avay. It
is based upon slavery and no form of society based
upon slavery can stand long. The slave owner is
the capitalist. He can command the services of the
working man and take from him what he produces.
Tlie owner of the chattel slave could do no more than
Some people are trying to repair the building,
they are called reformers and are hoping to be permanently employed, but they can't reform the system. The only thing is to have a new structure, and
therefore the Socialists have decided to build one,
hut not on the old foundation.
(Continued from page 7)
though our author suggests that the reputed recent
purchase of sixty neAvspapers is exaggerated.
There is also a new line in trusts in this regard—
horizontal and vertical. The first applies to those
Avhich merely produce the main article; the second
to those which, to use up all the scrap, take in all
manner of by-products.
There is some valuable information bearing upon
the disposition of property in Belgium during the
\Vyir, and also the development of industry since the
declaration of peace.
There is an extended account of Stinnes' argument before the Allied Council on German coal reparations, and the outcome of the stand taken by
him—that the demands could not be met.
It is interesting to note that Allied politicians
did not harbour the same animosity toward Germany 's capitalists Avhich their working class at that
time manifested.
The position taken by Stinnes on the After-the-
War problems is that of a hard headed industrialist, and we make no apologies for quoting it in full
(page 123)
"We are merely losing time through the chatter of
politicians who are wound up like automatons by parliament and the newspapers. What we need is a conference
of business men who can talk to each other without hate.
There must be no more conferences at which everybody
lays down his revolver at his side. This sick world can
only be saved by a. consultation of a few physicians behind
closed doors. It would be insane ou the part of Germany
to declare its willingness to pay even the interest on a
loan of 50,000,000,'OGO marks. If the Allies are figuring on
any such sums they are going to have another disappointment. France could have had material and labour for "construction two years ago, and no German would have refused to deliver tnem. France, however, was not really interested in reparation, but was seeking to humiliate Germany. At the present moment there are only two kinds
of countries in the world—those which can buy raw materials because of the; state of exchange, and those which
can not do this. Both are bound to perish unless some
form of cooperation can be agreed upon. Money is to be
found, but only by giving the world, an example of perfect
cu-operation. Every business man knows that money is to
be had, only the politicians do not seem to know it. I
mi trying to save my country from destruction, and at the
same time save the other countries."
Full of real meat for the Marxian student, it is
a valuable book for the library. It contains the
same material on a scanter scale than De Gibbins'
"Industrial History of England," and, dealing with
facts Avhich can be applied to a proper understanding of society, Avould find a proper place beside De
Gibbins' on the shelf, to be read in conjunction with,
the latter portion of that excellent book.
We can fully recommend the purchase of this
book AA'here possible.
Socialist Party of Canada
STAR THEATRE, 300 Block, Main Street
Sunday, July 16th
W. A. Pritchard
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