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grow ever higher. Every Capitalist power is waging a bitter
currency war with every other power, each desperately striving
to secure an advantage over the other. Internally, Capitalism
calls on the State for protection and aid; State subsidies, State
regulation of the profit systems and secured in its desperate
attempt to bring regulation into the anarchy it has created and
which it cannot destroy.

This appalling situation cannot be remedied unless we are
prepared to change the whole economic system. Under
Capitalism every individual owner of any of the means of
production, farm, factory or mine, must be assured of such a
price for his output as will enable him to receive or pay profits,
rent and interest. Prices so fixed are too high to enable all
those who need the commodities to purchase them. They have
to subsist on low wages, the pittance of unemployment benefit,
Poor Law relief, that rents profits and interest may be main-
tained. Capitalism, however much its defenders may claim,
cannot distribute the goods it can produce. Millions of people,
because of this, lack to-day the elementary necessities of life--
food, shelter, warmth; they suffer from unemployment because
there is insufficient effective demand for the goods at the price
at which they are offered in the market.

A World in Arms

Side by side with this economic chaos there proceeds a
terrific armaments race--economic rivalry breeds of necessity
its final product, devestating war. The Disarmament Con-
ference has been transformed into an Armaments Conference
which will create not peace but new groupings of Imperialist
Powers. Japanese Imperialists, scorning half-hearted and
insincere grumblings at Geneva, have, without regard to the
rights of the Chinese people, turned Manchuria into a military
base for the conquest of all China and waging war on the
Soviet Union.

British Imperialists have met in Singapore for the reorgan-
isation of their military, naval and air plans, ready for war in
the Pacific. The U.S.A. has plunged into the armament race
with vast new naval and air contructions. The "National"
Government has in Britain declared its readiness to embark on
huge extentions of war preperations--in the name of Defence.
Fascism is re-arming Germany so that it shall become again a
"first-class" military, naval and air power. Italy and France
are armed to the teeth. The Soviet Union has been forced

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