Owe THE COMING ECONOMIC CRISIS Doparfinent hou Please. Depression already has one foot in door,’ avers reader J. ENDERBY, Vancouver: The Financial Post (the rich man’s Racing Form) is shaking its golden locks and fretting: about the current stock market slump. “Jittery traders are asking: where do we go from here? No one is ready to go on a limb with an answer. The market is in the grip of a pessimistic mood. Too many traders see only busi- ness recession ahead.” So reads the Post. Like race-track tip sheets, the Financlal Post carries a “com- ment” section where touts give the come-on to suckers. Using classy monikers, these broker- age houses fulfil essentially the Same function as the shifty- eyed characters who sidle up to prospective bettors at the track and offer hot tips on broken- down nags. Both 'the stock mar- ket touts and their race-track brothers-under-the-skin are mas. ters at the art of double-talk. General opinion of the brok- erage touts is that the present bear market will last for some time. Barron’s tries to be re- assuring: “Rapid fall in prices in industry reflects voluntary in- ventory caution and the cor- rection of imbalances; it is not of the type that characterized 1919-1921 and 1929-1932." NonSense! Most of these tip- sters haven’t any basic under- standing of what makes capital- ism tick: they’re the same birds who whistled in the dark years of the early nineteen-thirties and kept parroting Hoover's politi- cal death rattle: “Prosperity is just around the corner.” Fact is, an elementary under- standing of Marxism capitalism works, and booms and bust are inevitable as long. as capitalism ,exists, » Lenin pointed out the root ‘of crises: social method of produc- tion, private character of expro- priation. The first manifestation’ of a crisis is a glut of capital, re- flécting overproduction of the means of production. The second manifestation: mass lay-offs, a drive to cut down expenses, stagnation of prdduction and markets, It is investment in new capi- tal goods that makes capitalism a going concern. But it always expands beyond its markets, its possibilities, and this is aggra- vated by the fact that capitalist accumulation is expansion of the means of production. A crisis is simply a periodic break in capitalist accumulaton. One of the features of capi- talist accumulation is a tenden- cy to a fall in the rate of pro- fit. Marx called this “the two- faced law of capitalist economy.” | No crisis is caused by over- Production of consumer goods alone. During a boom period cap- italism expands rapidly to meet the increased demand for means of production. Then a break oc- curs at the weakest link in the Capitalist chain (it may be on the stock exchange; or in com- mercial bank transactions) and suddenly the bewildered fat boys discover that their boom derived from production of the’ is neces- Sary to enable anyone, capital- ists included, to understand how why \ - < meé€ans of production for which there is now no use. In 1929 it started in. steel and was reflected in the stock ex- change. What’s the situation to- day? Steel again started the slump. Orders for stee] are dry- ing up. Steel scrap, from a high of $42.75 per ton in 1948, is now Selling at $24.00 per ton, a de- cline of 43.8 percent. Depression has one foot in the door, and looks quite at home, as though it has made up its mind to stay. DIGEST OF LETTERS aM leo ‘army of Occupation. not wanted by Canadians SAM REYNOLDS, Vancouver: I am always amazed when in the downtown area of Vancouver over the weekend, I notice the United States “army of occupa- tion” walking our streets. It is time they were told that the war is over. As one of the most practical peace moves possible, the people should organize a boycott against Americans jin uniform. Let them see that we welcome Americans in civilian clothes, but that they should leave their uniforms at the boundary, Writing strictly as a veteran and a Canadian. I am fed uv to the eyes with the color of khaki uniforms around town. Let’s ostracize these foreign sol- diers back to their own country. A charge of 50 cents for each MEETINGS— tnsertion ot five ee eur: Pie Swedish-Finnish Workers’ Club cents each nal meets last Friday every month f* made for notices ap) in Russian People’s Home— available for meetings, weddings and banquets at reasonable rates, 600 Campbell Ave. HA. 0087, WHEN BUYING OR SELLING at 7.30 p.m., in Clinton Hall. DR. R. L. DOUGLAS HAS OPEN- ed a new office at 9 EAST HAST. INGS STREET, cor. Carrall St. Phone TA. 5552. All old friends cordially invited to drop in for a visit. SIMONSON’s WATCH REPAIR— At 711 E. Hastings. Come and see for yourself how we clean your watch. VERY SMART INBOARD MO- tor boat for hire; 4 to 6 passen- gers; $5 by day. FA. 777R 4 to 6, or after 11 p.m—J. Krasnikoy. WHAT’S DOING? OPEN AIR DANCING AT SWE- dish Park every Saturday night. Dancing from 9-12. Arne John- son's Orchestra. home, acreage or business, CON- SULT CARLTON REALTY. Auto and Fire Insurance, 1749 Kingsway. Phone FA. 4610, or Eve., DE. 3412-L. J. F. Woloshyn. CRYSTAL STEAM BATHS— Open every day. New Modern Beauty Salon—1763 FE. Hastings. HAstings 0094. ; SALLY BOWES— INCOME TAX PROBLEMS, PICNIC NOTICE: Annual Labor Picnic, Sunday, August 7, at Confederation Park. Fine food. popular girl, prizes. Keep this date open. Enjoy a Real Holiday— Galiano Co-op Camp. Available to July 15. Good meals, swim- ming, hiking, fishing. Reason- able rates. Bring your bedding. Apply Irene Howard, FA. 3650L, Room 20, 9 East Hastings: MA, 9965. : evenings. Write 339 West Pen- der St. Vancouver. — So far as I am concerned this is still Canada until such time 2S a people’s plebiscite informs me otherwise. L. MARTINS, Vancouver: You know the old story of the man who looked. everywhere for his glasses and finally found them on his own forehead. ‘Some people look for Pacific Tribune Subs that way; they are con- stantly searching for Potential readers in far away places, and neglect to check and see if their close friends subscribe to the paper. \ A quick look-around in your Own club, lodge, or trade union will probably disclose Several people who should be reading the PT but aren’t Once you find them, presto! the rest is easy, Just pull out a sub book and sign them up. CONSTANT READER, Na- naimo: Now that the federal elections are over, I believe jt would serve a good purpose if the Pacific Tribune set aside a full page for a public discus- sion on the campaign waged by Progressive candidates and the lessons to be learned from the elections. This would help us all breaker. : Whittaker Chambers, star gov- ernment witness in the Alger PA. 8419 Hiss perjury trial, a victim of — DIAMONDS, OLD GOLD HA. 0334 Other Valuable JewelltY Ul f Ltd. mala oo 24Hour$ | STAR LOAN CO. Lt? Insured Service ; Est. 1 2622 613 East Hastings, Vancouver} | 719 Robson St, — MAT: to gevelop a deeper political un- derstanding by exchanging views and experiences, W. HARASYM, Port Alberni: Enemies of labor don’t like the Pacific Tribune. Recently an in- STANTON & MUNRO Barristers, Solicitors, Notaries SUITE 515, FORD BUILDING, 193 E, HASTINGS ST (Corner Main & Hastings Sts.) MArine 5746 +e cident occurred in a local beer ae \ Ee I PACIFIC TRIBUNE — JULY 1, 1949 — PA®