THE present period can be called a revolutionary period , and rightly so . Consider able masses of people are now in motion , sharply changing the political landscape of the world and doing so not merely in the lifetime of a single generation , but in a single season . Local changes rapidly acquire international importance , and diplomatic actions are closely interwoven with profound social developments . Let us recall some of the events of the past four months , events which attracted the attention of the whole world . May . At Sverdlovsk a Soviet rocket crew shot down an American spy – plane . In Paris the U.S. President torpedoed the Summit meeting . A military coup d’รฉtat took place in Turkey , the pro – American regime was overthrown , and the President and
The industrial revolution began first of all in England ( in the middle of the 18th century ) where it developed in its clearest form . In the 19th century the industrial revolution spread to other capitalist countries . It was not a mere accident that the industrial revolution began precisely in England . Prerequisites for a rapid development of industry were being created there over a period of several centuries . The early abolition of serfdom and dispossession of the peasants of their land led to the appearance of a mass of free labour hands and development of capitalist methods of agriculture . Both stimulated the growth of the internal market . The colonial seizures gave England guaranteed foreign markets and served as the source of creation of enormous wealth . Lastly , the bourgeois revolution of the 17th century eliminated many survivals of feudalism . The industrial revolution began in the branch of industry where the guild restrictions were felt the least , i.e. , in the cotton industry . Feudal England , as feudal Europe in general , did not have this branch of industry for it lacked raw material . England received cotton only as the result of seizing colonies , particularly India . Cotton fabrics soon began successfully to compete with woollen and linen fabrics . They had a greater mass of consumers and , consequently , a more stable market . This stimulated the development of the cotton industry to such an extent that the manufactories could no longer satisfy the continuously growing demand . Any innovations fostering an increase in production of cotton fabrics brought enormous profits . The invention of machinery began in the spinning industry . A mechanical spinning wheel – spinning jenny – was invented in 1765 , the water frame was invented in 1767 , and the mule was invented in 1779. The appearance of these machines radically altered the technology of cotton – spinning . Spinning factories employing hundreds of workers came into existence in the 1770s . By 1780 England had 20 such facto ries and 10 years later 150 of them . The development of machine technology in cotton – spinning resulted in a lag in weaving . Attempts to invent weaving machines were made and after long efforts succeeded .The first machines were driven by water wheels , which made them usable only near rivers . The need for a general purpose engine that could be used anywhere made itself felt increasingly more insistently . In the 1780s the cotton industry began to use Watt’s steam engine . That made it possible considerably to increase the volume of factory production , ensured the spread of factories over the country and the growth of industrial centres . The increase in the production of machines stimulated a greater need for metal , but the lack of charcoal limited the development of metallurgy . The production of metal began to grow rapidly only after Henry Cort invented the puddling furnace in 1784. Between 1785 and 1797 the production of iron in England was thus doubled . The use of coke instead of charcoal in the smelting of pig iron fostered an increase in coal mining : in 100 years it increased fourfold and by the end of the century amounted to 10 million tons . The introduction of machinery , which began in cotton spinning , subsequently spread to other branches of industry and led to the development of a number of associated branches , particularly the heavy industry . The development of heavy industry was consummated by the creation of the engineering industry . At first machines were produced in manufactories manually . They were very expensive and their production lagged behind the growing demand of industry . Only when mechanical engineering came into existence as a separate branch of industry was it possible to make the machines cheaper and hasten their production . The produc tion of machinery increased at so fast a rate that already in 1824 Parliament allowed machines to be exported from England . The first railway was built in England in 1825 and railway communication between Manchester and Liverpool was opened in 1830 , but by the middle of the 19th century England already had 10,000 kilometres of railways . The machine industry finally supplanted manual produc tion in England in the 1840s . Those were the years of con summation of the industrial revolution . England became the leading industrial country , the ” workshop of the world ” . In 1839 England mined four times as much coal as did France , Belgium and Prussia taken together . From 1826 to 1846 the export of iron and cast iron from England increased 7.5 – fold .
The essence of the industrial revolution was the creation of a large – scale industry , i.e , industrialisation , which was aimed at building a technical basis appropriate to the pro duction relations of capitalism . However , capitalist industrialisation , as part of capitalist production , was governed by the principal economic law of capitalism – production of surplus value . That is why in the capitalist countries the industrial revolution began in the light industry where , in virtue of the rapid capital turnover , it was possible to make profit more quickly ; only as capital accumulated was it directed into the heavy industry . The capitalist countries were industrialised primarily through the plunder of their colonies . This applies particularly to England and France . Foreign loans are another means of building the industry . Lastly , industrialisation was carried out in a number of cases partly at the expense of the vanquished country . For example , Germany used the indemnities received from France after the Franco – Prussian War to build its large – scale industry . But in all cases , a large – scale industry in capitalist countries is also built through ruination and plunder of the country’s own people , i.e. , increase in taxes , dispossession of peasants , intensified exploitation of workers , etc.
By the middle of the 19th century the natural and social sciences had reached such a level of development that it was possible to create a truly scientific philosophy – a science about the most general laws of development of nature and society . The natural sciences showed that the world had not been created by anybody , but had developed according to its own laws . For example , physics discovered the law of universal gravitation which governs all natural phenomena , while chemistry discovered the law of conservation of matter , according to which nothing is created in the world and nothing disappears without leaving a trace , everything merely changing the form of its existence . The advance of natural sciences helped the further development of materialism and dialectics . The greatest contribution to materialist philosophy was made by the German philosopher Ludwig Feuerbach ( 1804 1872 ) . Georg Wilhelm Friedrich Hegel ( 1770-1831 ) , another German philosopher , generalised the method used by the modern sciences in analysing the phenomena of nature and society and raised dialectics to a new level ; according to Hegelian dialectics everything must be considered from the point of view of continuous change and development . However , neither Feuerbach nor Hegel could create a truly scientific philosophy . Feuerbach , for example , did not recognise dialectics and thereby rejected the method of cognition used by science , whereas Hegel adhered to idealist positions and persisted in the opinion that , according to the laws of dialectics , it was not nature and society , but some Absolute Idea that developed . Moreover , he limited the development of this idea to the creation of the Prussian constitutional monarchy , considering it the highest expression of the Absolute Idea and the acme of development of society .
The Functions of the State The main function of the slave state ( as of all other exploit er systems ) was the suppression of the exploited . In order to capture new slaves the slave states waged constant wars , plundering the defeated peoples , turning them into tributaries or slaves . Herein lies the second function of any state based on the exploitation of man by man : the expansion of its territory . The state carries out its functions with the aid of a state apparatus . To begin with , the state adopted some clan and tribal institutions ; however , they no longer reflected the interests of the entire clan or tribe but only those of a small group of clan elders and tribal chieftains who eventually became hereditary rulers . The military force of the primitive , communal system was composed of all the able – bodied members of the clan , while in a slave system there appeared a new force , removed from the people and standing in opposition to it : a paid army whose duty it was to defend the rapacious , egotistic interests of the slave – owners . The courts appeared in like manner , the guardians of the interests of an insignificant part of society , the slave – owners , not the interests of society as a whole . The clergy were an integral part of the state apparatus , as were the overseers , guards , scribes , collectors of duties , taxes , etc. The former division of the population along lines of blood relationship was now supplanted by an administrative and territorial division .
One of the main economic features of imperialism is the export of capital . Export of goods was typical of pre – monopoly capitalism when free competition had undivided sway . Under monopoly capitalism foreign trade continues to expand , but the export of capital acquires exceptional importance . During the period of monopoly capitalism the export of capital becomes the main instrument of systematic exploitation of the greater part of the world by a handful of eco nomically developed capitalist countries . Vast amounts of ” surplus capital ” arise in a number of capitalist countries . Under imperialism the domination of monopolies with their enormous concentration of capital , and the development of joint – stock companies and banks which concentrate vast amounts of the population’s free money give rise to ” sur plus capital ” in a number of capitalist countries . This ” sur plus capital ” is conditional and relative . The living standards of the masses of people under capitalism remain comparatively low , while agriculture , which greatly lags behind industry , is very much in need of money for its develop ment . But monopoly capitalism cannot use the ” surplus capi tal ” to raise the living standards of the people because that would reduce the profits of the monopolists . In pursuit of higher profits the monopolies export capital . In the beginning of the 20th century capital was exported mainly to the backward , colonial and dependent countries where the scarcity of capital , low land prices , low wages and cheap raw materials ensured fabulously high profits . Capital is still being exported to underdeveloped countries . Between 1946 and 1960 the U.S.A. withdrew from Latin American countries 8.800 million dollars of profits , whereas the new American direct private capital investments in Latin America during the same period amounted only to 4,500 million dollars . Export of capital from one highly – developed capitalist country to another has been rapidly developing in recent years be cause of intensified competition and the difference in wages . Capital is exported in two basic forms : firstly , as productive capital consisting in investments in industry , agriculture , transport , etc. , and , secondly , as loan capital , i.e. , loans to governments and private credit . Despite the different forms of export of capital its exporters pursue the same aim , namely , to obtain high monopoly profits . Both private and state capital may be exported . In the beginning of the 20th century the export of capital was almost entirely private business . Today state capital amounts to about half the total export of capital and continues to increase because private capital prefers to take no risks in connection with the increasing danger of nationalisation in the liberated countries . Imperialist states use export of capital to extend the old and seize new sources of raw materials . markets and spheres of capital investments , and to effect eco nomic , political and military strategic expansion .
The development of commodity – money relations was the basis on which the Russian centralised state was created . The united Russian market evolved in the 18th century , but its sources go back to the 16th century , when town crafts and local markets entered a period of rapid growth . In the early 1580s there were close to 200 various crafts in Novgorod and close to 100 in Kazan . The main feature of craft pro duction was its great diversification . The metal workers were subdivided into pin – makers , button – makers , etc .; there were bow – makers , sword – makers , dagger – makers , etc .; in the manu facture of clothing there were specialists for every garment worn . The social division of labour brought about an increase in trade . In the 16th century many Russian towns were major trading centres . In Pskov in the 1560s – 1570s there were a trading court , where most of the commercial transactions took place , and a total of 1,300 other trading premises ; in Kazan there were 644 ; in Kolomna , near Moscow , there were close to 450 . Peasants brought their produce to the market in town . Local markets began establishing ties among themselves . Thus , there were the so – called trading courts , known as the Tver and Pskov Courts , in Novgorod in the 16th century . There were fairs in some regions . Moscow , which had become a major centre of crafts and trade in the 15th century , was the binding link in inter – city trade . Foreign trade was fast developing . There were many trade routes to the Baltic regions . The Volga route connected the European markets with the Caspian area and Central Asia . The development of commodity – money relations created a more complex social structure of society and increased differentiation among the craftsmen , merchants and peasants . The leading merchants formed a separate estate , the mer chants ‘ guild , and two privileged ” hundreds of merchants and cloth – makers . Documents of the time mention ” middle ” merchants and town craftsmen , as well as ” black people ” , the poorest stratum of the population . In the villages a stra tum of wealthier peasants emerged from among the serfs , having bought their freedom from their masters ; these peas ants often became craftsmen or merchants .
The evolution of slave – owning resulted in the establish ment of a whole system of slave trading . Slave markets sprang up in Rome and in other regions . Foreign trade prevailed . Agricultural produce and luxuries were imported from the many Roman ” provinces ” ( conquered regions and dependent countries ) , while Rome exported metal implements , wine and olive oil . Imports were greater than exports . However , the lack of exports was compensated for by outright pillage of the conquered lands and , in particular , by the influx of large sums of money . By seizing the silver mines of Spain , Rome was provided with a permanent source of mint . The growth of commerce and money in circulation Created usurious capital . Companies of tax – farmers , the so – called publicans , were formed to carry out various operations involving credit and usury . Money – changers ‘ shops , sprang up everywhere . Their owners not only changed coins , but banked money , provided loans at an interest and remitted sums . Persons whose occupation was commerce and usury gradually formed a separate estate of the ruling class ,
Basic Forms of Monopolies The basic forms of monopolies are cartels , syndicates , trusts and corporations . A cartel is an alliance of large capitalist enterprises . Its participants agree on the conditions of sale of their goods , the purchase of raw materials and dates of payments , divide the markets among themselves , fix the prices on the goods produced and the raw materials purchased , decide on the quantity of goods to be produced by each participant , etc. The enterprises belonging to a cartel retain their indepen dence .
A syndicate is a monopolist alliance of enterprises , in which the participants lose their commercial independence . The goods are produced independently , but their sale and sometimes the purchase of raw materials are effected through a common office . A trust is a monopolist association in which all the enter prises belonging to it lose their production and commercial independence and merge into a single enterprise , while their owners become share – holders and receive profits according to the number of shares they hold . The management of the production , financial and commercial activities of a trust is effected by a board elected by a meeting of the share – hold ers . The persons elected to the board of a trust are usually holders of a large block of shares . After the passage of the antitrust law in the U.S.A. in 1911 , the trusts began to call themselves companies . For example , Rockefeller’s giant oil trust , Standard Oil , divided itself into several companies Standard Oil of New Jersey , Standard Oil of California , etc. All these companies are controlled by the Rockefellers . A corporation is a monopolist association of enterprises of different branches of industry , banks , commercial firms , transport and insurance companies based on common financial interests and common financial dependence on a group of big capitalists who effect control over the enterprises belong ing to the concern . In the U.S.A. the electric industry is controlled by the General Electric Corporation , the aircraft industry is con trolled by the Douglas Aircraft Company , the aluminium industry – by the Mellon concern , and the chemical industry by Du Pont de Nemours and Company . In the automobile industry in 1956 only two monopolies – the General Motors Corporation and the Ford Motor Company – produced and sold 80 per cent of the automobiles . In each of the 43 branches of the manufacturing industry four corporations concentrate in their hands more than 75 per cent of the output , while in 102 branches of industry four of the biggest monopolies turn out from 50 to 75 per cent of the gross production The monopolies not only fail to eliminate the competition The competitive struggle is waged between monopolist associations within them , and between the monopolies and non – monopolised enterprises . Various methods of pressure , to the point of ruin by commercial machinations , are used against those who do not yield to the monopolies . In the bitter struggle among the monopolies all unfair means are used : bribery , violence , blackmail , sabotage and other criminal offences to the point of physical annihilation of the rivals .
By the 6th century B.C. more or less similar religious beliefs were held in common in all regions inhabited by the Greeks . These beliefs formed the basis of the Olympian religion , so called after Mount Olympus which was believed to be the home of the Gods , headed by Zeus . The Olympian religion was not connected with any organised religious body , dogma or ritual . The temples of the gods , though of definite significance in the religious lives of the people , did not , how ever , form a single system ; likewise , there was no special strata of religious attendants , no high priests . When necessary sary , persons chosen by the popular assembly carried out various religious functions . By making the gods human , the Olympian religion was able to penetrate deep into the masses and influence the working people . In time the cult of the Olympian gods became the official religion of the Greek polises , sanctifying the class suppression of the slaves and poor labourers . The masses , dissatisfied with their lack of civil rights , often countered the official religion by inaugurating cults of their own patron gods . Such , for instance , was the cult of Dionisius , patron of the tiller , in whose honour feasts and celebrations were held . This religious dissention can be considered the prototype of all later religious heresies .
Capitalism Society 