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1. Toward the end of the nineteenth century, however, a
radical change took place within the capitalist system.

2. Industry in the United States boomed and soared as a
result of the great blood transfusion of the war, both
during the war itself and in the postwar period.

3. Great strikes raged in steel, meat-packing, lumber, rail­
road, textiles, building, marine transport, coal, printing,
garment-making — wherever there were trade unions.

4. As Lenin made clear, and as we pointed out in Chap­
ter 14, monopoly capitalist imperialism developed in all
the major capitalist states.

5. The United States government refused to recognize the
Soviet government until 1933, sixteen years after the

6. Like other parts of the capitalist world, the countries of
the Americas were deeply affected by this vast new
Communist movement.

7. An anti-Negro bias was also to be observed in the affil­
iated AFL unions, reflecting the employers' policy of
discriminating against those workers.

8. There were various reasons why the reactionaries did
not succeed in establishing fascism in the United States.

9. It was primarily because of these concessions to Negro and white labor that big capital came to hate Roosevelt so ruthlessly.

10. Without such concessions undoubtedly a great new labor
or people's party would have been born during the pre-
World War II years, just after the big economic crisis.

11. Obviously, a shift in United States imperialist policy in
Latin America was absolutely necessary.


1. World War I was the making of the United States in­
dustrially for these years; that is, until the entire situa­
tion blew up in October 1929.

2. So the big employers, powerfully organized in the Na­
tional Association of Manufacturers and a host of other
associations, began a wild attack against the workers
and the trade-union movement.

3. Democratic women, as never before in United States
history, were also on the march politically during this
period, countering the reactionary machinations of the
monopoly capitalists.

4. It was a dramatic demonstration of the fact that capi­
talism had plunged into an incurable general crisis.

5. It was true that the anarchy of capitalist production
brought about periodic, crippling, economic crises, that
there were many serious strikes of workers against their
gauging employers, that big capitalists ruthlessly devoured
smaller ones, that colonial uprisings against the im­
perialists occasionally took place, and that destructive
wars between competing capitalist powers were frequent.

6. They rallied the Negro people and their allies against
the lynchers, legal and illegal.

7. The labor leaders were tireless champions of the " Higher
(no-strike) Strategy of Labor".

8. The industrial boom of the 1920's, however, was not

9. This is no sense, however, implied that the basic char­
acter of the countries' economies, producing staple pro­
ducts and raw materials under strong imperialist con­
trols, had been changed.

10. How cynically the United States ruling class looked upon this war was well illustrated by a cablegram by

W. H. Page, ambassador to England, to President Wil­son one month before the United States entered the war...

11. In the matter of trade, United States imperialism, during
the war, when its strong British and German rivals
were busy destroying each other, proceeded to take
advantage of the situation by entrenching itself in the
markets of many countries of Latin America.

12. As Tim Buck says, " Following the war there developed
an almost universal demand that Canada's status and
relationship with Britain should be re-defined."

13. In the decade before World War I the left-wing mili­
tants were increasingly disillusioned by the opportunist
policies of the middle class leadership of the most of
the Socialist parties.

14. The war and the revolution, the basic lessons of which
Lenin made brilliantly clear, matured the developing
ideology of the left-wingers.

15. Inevitably, however, as the trade unions began to grow
in these European countries and the anarchist workers
joined them, these workers developed into characteristic
anarchosyndicalists, or syndicalists, as the tendency
came generally to be called in Anglo-Saxon countries.

16. Because these countries are not so critically situated,
however, this trend is not so sharp as in other parts of
the western hemisphere.

17. The great monopolists, with their mass production meth­
ods, their intense speed-up of the workers, and their
artificially maintained high prices and low wage levels,
were sowing the whirlwind by widening the already
fatally wide gap between what the workers could produce
and what they could buy.

18. In Chile, in 1935, the neofascist Gonzalez Ibanez tried
but failed to overthrow the existing democratic govern­

, 19. The world fascist movement which developed so rapidly during the 1930's, carried an acute threat to the people's democratic liberties, to their labor organizations, to their living standards, to their culture, to their national independence, and to their very lives.

20.... and, second, they hoped that the war which Hitler was obviously organizing would be directed towards the east, against the hated socialist republic, which they had

been trying to destroy since November 1917, when it was founded.

21. Instead, rotten with fascism themselves, they cynically
rejected the Soviet Union's proposals for universal disar­
mament and proceeded to " appease" Hitler.

22. They were determined to put an end to the monstrous
Jim Crow system which in the last sixteen years of the
nineteenth century had resulted in the lynching of
2, 500 Negroes.

23. Although Roosevelt was against all proposals to nation­
alize industry, he linked capitalist monopoly with the
state in many ways. During his term in office, monop­
oly capital prospered, making the greatest profits in its

24. The imperialist character of the economic side of the
Good Neighbor policy was clearly demonstrated by the
fact that it was the Roosevelt Administration that for­
mulated and presented to the Latin American peoples
early in 1945 the notoriously imperialistic Clayton Plan,
a scheme designed to subordinate the whole economy of
Latin America to Wall Street.

25. In this current period of imperialism, which, as Lenin
says, is the final stage of capitalism, anarchic capitalist
production creates world sweeping economic crises, far
worse than the typical cyclical crises of earlier years.

26. It even lost some of the industrial gains it had won dur­
ing the war. But such industrial expansion as was made
in the war period was doubly important, inasmuch as
it led to a corresponding growth of the working class,
urban middle classes, and capitalist class, along with a
strengthening of the democratic currents in these coun­

27. The most dynamic of these forces were the Communist
Party and the Trade Union Educational League.

28. In 1926 there was a liberal uprising in that country
against the reactionary Chamorro government.

29. This meant still fewer and less firm ties with Great
Britain and a freer hand for the United States in Cana­

30. The government, therefore, had to enter in with its stim-
ulation-of-industry program, a development which strik­
ingly emphasized the basically sick condition of the
capitalist system.

31. The parliamentary sessions of 1934 and 1935 were crowd­
ed with the passage of a long series of social security
laws, labour statutes, and economic control measures.

32. In particular, he was responsible for Section 7A of the
National Industrial Recovery Act, which was later in­
corporated into the Wagner Act.

33. Even now as he lies in his grave, Roosevelt's Wall
Street detractors are still frantically trying to destroy
his democratic prestige among the people.

34. In the democratic World War II the workers were justi­
fied in accepting posts in the war-time bourgeois gov­
ernment, but Roosevelt wanted no such close collabo­

35. Cuba was becoming more and more restive under the
Platt Amendment, which permitted legal intervention.

36. Their aim was to keep the economies of these countries
complementary to, not competitive with, the economy
of the United States.

37. The line-up of powers in this imperialist global conflict
was on the one side, the Entente, consisting of Russia,,
France, Great Britain, Italy, Japan, Rumania, Serbia,
Belgium, Greece, Portugal, Montenegro, and eventually
the United States and several Latin American states; and
on the other side, the Central Powers — the alliance of
Germany, Austria-Hungary, Turkey and Bulgaria.

38. The basic contradiction between the rapidly expanding
producing and the restricted purchasing power of the
masses caught up with the war-produced boom and there
was a dramatic end to the " prosperity".

: 39. Especially was the fury of reaction directed against the

Negro people. 40. They demanded United States recognition of the Soviet


! 41. Then came a dizzy increase, for British sources of in-- vestment funds were dried up and the American dollar λ was for a time at a premium.

42. The Communists, also, have always been indefatigable
defenders of civil liberties and the democratic rights of

; the people.

43.... they are untiring battlers against lynching and Jim
Crow and are against every form of discrimination

against Negroes, Indians, Catholics, Jews, the foreign-born, and all other peoples and minorities pertaining to race, sex, religion, or national origin.

44. They are devoted defenders of the special rights of wom­
en, youth and children.

45. Active defenders of the national interests of their peo­
ple, the Communists are at the same time true inter­

46. Although striving for every possible protection and ex­
tension of the people's gain under capitalism, they fully
realize and continue to educate the masses to the great
fact that only by ending capitalism and establishing so­
cialism can real prosperity, democracy, and peace be
established in the world.

47. The worst sufferers of all were the Negroes who, al­
ways the lowest paid, experienced about twice the aver­
age rate of unemployment.

48. Canada had much the same experience as the United

49. This was a further sign of the decay of capitalism.

50. Bennett's defeat was a definite rejection by the Cana­
dian people of a man and a party that had brazenly
protected big capital while the people went hungry.

51. The period between 1933 and 1941 was one of violence
by the reactionaries. The Negroes, the main target of
these activities, were shamefully harassed and perse­

52. The unemployed were slugged and arrested all over the

53. But when they realized the administration's favourable
attitude toward organization in the basic industries, the
big capitalists' opposition to Roosevelt grew to bound­
less proportions.

54. Mexico resented the exploitation of her oil wells and
mineral resources by foreign corporations.

55. During this historic period the struggle of the toiling
masses of the Americas reached new heights of organi­
zation and activity.

56. The workers, from one end of the western hemisphere
to the other, built vast trade unions, far better in size
and structure than any of their previous achievements.

57. The reactionaries were also wise enough to understand
that the " liberalism" of the Good Neighbor policy was

peculiarly adapted to the rising mood of class and na­tional struggle among the Latin American peoples. 58. At the end of World War I, the big monopolists held the United States within their grasp more firmly than ever, both industrially and politically.

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