BourgeoisieCapitalismLenin

Saturday, March 22, 1919 THE REVOLUTIONARY AGE Imperialism. the Final Stage of Capitalism Boycott economic (Continuation)
By Lenin production and of the supply of raw material in one country or in several countries. This transformation HE German economist Kestner has devoted a Translated from the Russian by Andre Tridon of a large number of small intermediaries into a handT special treatise ono rehet sekregled between cartels ful of monopoly holders is one of the main phenomena and outsiders, that is between organizations in the transformation of Capitalism into capitalistic In order to discourage competition in an industry which is so profitable, the monopolists resort to all Imperialism. We must therefore study closely the titled his book Compulsory Organisation, but should concentration of business in the financial world.
sorts of stratagems. They spread alarming rumors istic Combinations. It most instructive to pass in about the unfavorable conditions obtaining in the ce In the year 1907 1908, the deposits in the banking review the various im to date and civilized instruments ment business: anonymous advertisements appear in corporations of Germany having a capital of over of warfare which monopolies use in order to bolster up papers which read: Capitalists, don invest your one millions marks amounted to seven billion marks.
funcis in their organization: 1: Curtailinent of the supply of cement.
stocks. They buy independents out in the year 1912 1913, the amount had increased to of the field, giving them some sixty, eighty or one 800, 000, 000 marks. Out of that additional 2, 800, pelling independents to join the trusts. Curtaii hundred and fifty thousand marks for their plants. 200, 000 marks, 2, 750, 000, 000 went to the fifty seven the the workingmen whereby the latter will only hire them gardless of the means that must be employed, from The following table shows the division of deposits bribe to make a competitor quit to an explosion of among the large and small banks: the means of transportation cürtailment of sales dynamite.
Percentage of Deposits: Nine large. Izanks: Agreements with retailers who are buy exclus Bourgeois papers, always ready to applaud Cap 1907 8, 47 1912 3, 49. 48 other it with a ively from the trust. Prise cutting by agreement. italism, are full of stories of panics forestalled by capital of over one billion marks: 1, 22. 1912 3, 36. 115 banks with a capital or from one to refuse to submit to the trust dictations may be sacrificed making sales below cost; for instance in the monopolies in certain fields of industry accentuates ten million marks: 1907 8, 16. 1912 3, 12 mall benzire industry prices were cut at times from 40 to Sility characteristic of still more the chaotic ways, the lack of system and banks with a capital of less than one rks. 22 marks, almost 50. Curtailment of credit.
position in which capitalist industry. The 1907 8, 1912 3, which the most strongly organw ized industries, the coal and The small banks are being crowded out by the large industries find themWe are no longer witnessing a struggle between small ones, nine of which gather elves, creates even more erratic conditions in other alniost 50 of all the and large concerus, between old fashioned and for fields, as Jeidels, the author of one of the deposits. And we have not yet considered the fact te that a large number of small banks are in reality mere the all those are unwilling submit to man banks industry, is is compelled to their absolute domination. This is the way in which The more developed industry becomes, to quote admit.
the bourgeois economist Kestner views the process: Liefmann. staunch defender of Capitalism. the According to Schulze Gaeverning, out of a total In the field we notice an more readily it turns to risky undertakings, sometimes of deposits at the end of the year 1913, amounting to abandonment of commercial activity in the former in foreign fields, to undertakings which demand years ten billion marks, 5, 100, 000, 000 marks were on desense of the word in favor of new forms of organiz to mature, or which have only a local importance. 18) posit in nine large Berlin banks. Taking into account ation and speculation. The greatest measure of success is no longer attained by the merchant who, by Greater and greater risks attach to the giant com capital, this author wrote: At the end of 1909, nine dint of technical skill and commercial sense, is best binations of capital which spread all over the nation large Berlin banks and their affiliated concerns conable to satisfy the requirements of his customers, and, and even beyond its borders. And at the same time trolled. 11, 300, 000, 000 marks, which is 83 of all the the accelerated development technique brings in its banking capital of Germany. The Deutsche Bank latent stage. but to the man with a genius for specul wake more and more elements of irresponsibility, a which, with its affiliated concerns, controls about ation, who is above all things able to take into account aos, panics. Mankind will witness in a 3, 000, 000, 000 marks, is the largest and, at the same or to discover the various threads of organization, the not remote future. Liefmann writes, profound rev time, the most decentralized accumulation of capital possible connections between certain enterprises and olutions in the technical field. which will be felt even in the world. 22)
certain banks.
in national economy He alludes, of course, to new Translated into human language, this means: The electrical devices, the Aying machine, etc. and he Notice the expression affiliated concerns, for this development of Capitalism has proceeded to the point adds: As a general rule, in such times of radical is one of the most important details of the modern where the production of merchandise is no longer the changes, speculation is especially reckless.
concentration of capital. Large concerns, and in parfundamental function of business, where it is already ticular banks, not only absorb smaller concerns, but Crises of all kinds, especially in the economic field, shorn of its importance. and where the big prizes go but in many other fields too, will in turn accelerate make them a part of their group, which is the official cause others to affiliate with them, they dominate them, to men with a head for financial tricks. The concrete the tendency to concentration and monopoly. Here is basis of all these tricks is the socialization of pro a most illuminating interpretation from Jeidel pen participation in their affairs, by purchase or exterm for that sort of thing; this is done through a duction, and the enormous advance made by mankind of the crisis of 1900, which, as we know, proved to be change of stock, loans, etc. Professor Liefmann has which has conditioned that socialization only serves the turning point in the history of modern monopol written a book of some five hundred pages on that to fill the speculators pockets.
ies: form of financial operations, which unfortunately conWe shall now see how the reactionary critics of The crisis of 1900 called into existence, besides tains many trashy and unproved statements. To what capitalistic Imperialism dream of a return to free, gigantic undertakings in the main branches of busi extent that system of participation leads to concen peaceful and honest competition.
ness, many other undertakings of an antiquated form tration is shown clearly in a treatise written by Risser. The constant rise in prices caused by the organiza of organization, independent concerns, which rode the banking manipulator, on the subject of the large tion of trusts, Kestner writes, is only noticeable thus crest of the rising industrial tid. Shrinking prices German banks. But before examining his data we far in the case of the most important means of proand a diminishing demand beggared those independent may offer a concrete illustration of the participation duction, coal, iron, etc. but it is not noticeable in the undertakings while it barely affected the large combin system.
case of finished products. The resultant increase in ations and that only for a short period.
The Deutsche Bank Group is one of the largest, if profits has been limited to the industry supplying the means of production. We may add that the industry tely more industrial concentration than the crisis of As a consequence, the crisis of 1000 caused infininot the largest, among the large banks. In order to estimate properly the threads uniting all the banks of of trusts, at the expense of industries turning out technique being what it was then, that crisis was not orly makes larger profits, owing to the organization 1873 a the latter operated of course a certain elimina that one, we must define the thrce clegrees of parttion among the strongest concerns. but the average icipation, in other words, the three degrees of dependence in which smaller banks siand in relation to the finished Deutsche Bank. lustries a dictatorial attitude which was unheard of likely to endow with monopolistic characteristics the under the system of free competition.
concerns which had successfully breasted the storm. Participation in the Deittsche Bank The words have italized allucle to facts which At the present day, the most monopolistic industries First degrec Second degree Third degree Jourgeois economists are so loath to admit, and from are the iron and electric industries whose technique is 17 banks out of 34 out of which the partisans of modern opportunists, with highly developed, whose organization is thorough, whose Temporary Karl Kautsky in the Icad, are trying to escape. Dom capitalization is enormous. next to them come machin occasionay ination and its concomitant oppression are the charery concerns, certain branches of the metallugical inacteristic trait of the latest phase in the development dustry, means of communication, etc. 20)
30 banks 14 out of 48 out of of Capitalism, they are tire unavoidable corollary of Monopoly is indeed the latest phase in the evolution the formation of all powerful economic monopolies. of Capitalism. But our understanding of the power Among the eight banks in the first legree of deHere is one nure example of the way in which and importance of the modern monopolies would be rendence we find three foreign banks, one Austrian trusts conduct their warfare. Wherever the main quite superficial and inaccurate, if we did not realize bank, the Bank Verein of Vienna, and two Russian raw materials can be easily placed under the role played by banking institutions.
banks, the Siberian Comunercial Bank and the Rusone control, trusts are easily organized and monopolies sian Bank for Foreign Commerce. The Deutsche established. But it would be a mistake to assume that Bank Group included then, in whole or II.
part, directmonopolies do not establish themselves in branches of ly or indirectly, 87 Hanks: the capital of the bank itindustry the raw niaterials of which easily can not be The New Role Played by Banks self and of the affiliated banks, of which the entire cornered. The materials necessary in the cement in The primary and essential function of a bank is to group disposes, amounts to between two and three dustry can be found anywhere on earth. Yet that in act as an intermediary in effecting payments. Besides, billion marks.
dustry is strongly concentrated in Germany. The banks transform inactive capital into active capital. It is obvious that a bank, heading such a group of cement factories have been united into local syndicates. that is into profit earning capital, and they gather all other hanks, and working in concert with half a dozen the South German, the Rheinish Westphalian Synd sorts of moneys which they place at the disposal of slightly less important banks, in order to carry out icates. etc. Their products fetch monopoly prices. capitalists. Owing to the development of the banking large and profitable financial operations for instance from 230 to 280 marks per carlád. the cost of pro husiness and its concentration into a few establishto underwrite government loans, is 110 longer a inere cluction being only 180 marks Ceinent stock pays ments, banks have ceased to be mere intermediaries intermediarv, but constitutes properly a league of mohetween 120 and 10 in dividends, and we must not and have become powerful monopolistic concerns, con nopoly holders.
forget that the geniuses of the world of speculation trolling almost all the capital of all the small and large reap large profits in adition to dividends.
l»usiness enterprises, a large part of the means of (To be continued. 8 5 14 2 Total sources