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II. The Economic Position.

Meanwhile the ruination of mankind is going on.

The war has mechanically destroyed those universal economical ties, the development of which was one of the most important conquests of capitalism. In 1914 England, France and Italy were separated from Central Europe and from the near East, in 1917—from Russia.

During the few years of the war which has destroyed all that has been created by many generations, human labor which had been reduced to a minimum, was applied principally in those spheres where it was necessary to transform the reserves of raw material into goods, chiefly into arms and weapons of destruction.

In those basic branches of economy where man must enter into a direct struggle against the hardness and inertness of Nature, namely fuel and raw materials which have to be excavated and brought out from the bowels of the earth—production progressively died down. The victory of the Entente and the Versailles Treaty have not stemmed the economic process of economic disorganization and decay, but have only changed its ways and forms. The blockade of Soviet Russia and the artificial kindling of civil war against her fertile bordering states have been and are causing incalculable damage to the welfare of humanity at large. If Russia had the minimum technical support this country could, under the conditions established by the Soviet form of production, provide two and three times the quantity of provision and raw material to Europe than that which was provided by Czarist Russia;—the International states this in the face of the entire world. Instead of this Anglo-French Imperialism is compelling the Labor Republic to direct all its forces towards defense. In order to deprive the Russian workers of fuel England held firm in its claws that source of fuel,—Baku, from which only an insignificant part of this wealth could be exported. The richest coal basin of the Donetz was periodically devastated by the white guard bands of the Entente. French instructors and sappers have worked hard over the destruction of Russian bridges and railroads. Up to the present moment Japan is robbing and ruining Eastern Siberia.

German technique and the high productivity of German labor—these most important factors in the renaissance of the system of production are now after the Versailles peace, being paralyzed much more than was the case during the war. The Entente is faced with contradictions. In order to extract payment it is indispensable that work be supplied. In order to supply work

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