Karl Kautsky

“ Under existing conditions there is little incentive to invest capital in undertakings which do not turn over their capital rapidly. Consequently there is the strongest motive to employ capital in money speculations and usury instead of in industry. So long as a capitalist mode of production exists, it is in the interests not only of the whole of society, but also of the workers, that the available capital be embarked upon productive industrial undertakings giving employment to workers and increasing the sum of commodities. ”

“ As no one knows what prices and money values will be in the future, there is a preference for cash payments. Credit is the most potent means to vivify the mass of capital which exists in society. Without credit the scope of a given mass of capital is notably restricted. The effect is especially paralysing at a period when the mass of capital is greatly reduced by the ravages of war. ”

“ The war has used up so much capital, and so much of the productive forces, that with what is left one is only able to live laboriously from hand to mouth. There is neither capital nor resources for undertakings which will repay the outlay on them only after many years. ”

“ It is therefore probable that in Georgia a system of cultivation by village communes will grow up, which, although not socialistic in the sense that it produces for the market, yet will be a nearer approach to Socialism and a better organisation of labour-power than agriculture which is based on small holdings.
Meanwhile, the domain of agriculture is not the only sphere in which it is needful to make good as quickly as possible the effects of the neglect and obstacles due to Feudalism and Absolutism. The general level of civilisation must also be raised by an improvement in education. ”

“ For the present, help can only take the form of the investment of foreign capital in Georgian industrial undertakings.
Foreign loans to stabilise the State finances, to build railways and construct irrigation and drainage works, and foreign capital to establish factories, are urgently necessary in the interests of the Georgian people, and of the Georgian proletariat as well. Where capitalist economy is still the order of the day, the worker thrives best with a rapidly growing industrial capital. A suspension of capitalist growth hits him the hardest. ”

“ The old trade connections were destroyed by the war, which still continues on the borders of Georgia, and renders difficult any relations with other countries. This is doubly unfortunate at a time when world commerce is impeded by various measures arising out of the after-effects of the war and the general lack of confidence, which would be merely ridiculous if they did not involve the ruin of the people. ”

“ The Georgian Socialist Government found itself in the paradoxical situation of being obliged to create conditions which will attract capital—that is, by promising a profit and giving the necessary guarantee that one fine day it will not be expropriated without compensation. ”

“ Communal agriculture would be large-scale cultivation.
There are many reasons why communal agriculture should be adopted in Georgia. We have seen above that the old type of plough requires ten to twenty animals to draw it, with four and more men. Of course, these resources are not at the disposal of an individual small peasant. This difficulty is overcome by several peasants joining together for ploughing their fields. Such co-operation is constantly found convenient for other purposes than ploughing. ”

“ It should not parasitically be employed in speculations and usury, which employs no workers, yield no products, and only increases prices.
The system of paper money not only threatens the State with complete bankruptcy, and with absolute worthlessness of the money which it issues; it has brought growing confusion and paralysis into the whole economic machinery. ”

“ It is recognised even by many supporters of small holdings in agriculture that large-scale production yields a larger net profit than small undertakings, but of the latter it is asserted that the gross yield is greater. But even if this is. the case, it would not dispose us more favourably to small holdings. The mass of mankind who live in society outside of agriculture depend upon its net profits. ”

“ Finally, it is absolutely necessary for the prosperity of Georgia, so to develop its industry that as far as possible the raw materials arc made use of in the place where they are produced. Paper factories and furniture factories to realise the wealth in the form of wood, factories for preserving fruit and vegetables, spinning and weaving sheds for wool, silk and cotton are above all necessary. Next to them are wanted factories for the production of implements and simple machinery for agriculture. ”

“ The old State constitution, being corrupt and inimical to the people, had to be radically reformed, which was not a simple matter, in view of the lack of native experience. The new State machinery did not always work well. It takes time to accustom the emancipated peasant to pay taxes, and the revenue from duties was very slight in consequence of the paralysis of trade. ”

“ Moreover, they suffer from want of capital.
Here there must also be some assistance from abroad if the development is to be rapid and energetic. Only the Western Powers and America have the resources and experience available to permit large undertakings of this kind to be established and properly directed. But! capitalism still prevails in those countries. ”

“ All building activity is paralysed. In addition, numerous dwelling-places situated on the various theatres of war have been destroyed, and the inhabitants driven into countries which were spared by the war. In those counties the accommodation, not having been increased suffices no longer.
Again, in those countries which did not take part in the war the population has been increased by the normal processes, which still more accentuates the housing difficulty. ”

“ This process should also be aided by the introduction of modern agricultural machines, which the individual peasant is too poor to acquire, and which can be employed with success only over a large extent of ground. ”

“ They consist in the dependence of the economic life of Georgia upon foreign countries. Without the importation of corn, as well as of industrial products, and a corresponding exportation of its own products, such as manganese, copper, tobacco, wool, silk, and wine, the country cannot exist. ”

“ As many as fifty small peasants combine together in order to perform the same work in common on one of their fields after another, and thereby enjoy the benefits of this co-operation. This practice, is called by a special name, Nadi, and the songs which are sung during work in common, to give to it the appropriate rhythm, are called Naduri. This system of combined labour would be more successful if the many small fields were not separated, but thrown together and worked according to a common plan. ”