THE NOTEBOOK

“ε”

(“EPSILON”)
Contents “Weltwirtschaftliches Archiv” (1916)
(Foreign Capital: Arndt) [1].
“The Economist,” No. 29, on the War, and “The Daily Telegraph” [3 and 11, 14–15, 18–19].
Coal and Iron (Theses by N. I. Bukharin) [33–34].

* See V. I. Lenin, Collected Works, 4th ed., vol. 22, p. 230. Ed.
CAPITALS ABROAD
Capital Abroad: England, France | Germany
1862 3.6 – – 1872 15 10 (1869) – 1882 22 15 (1880) ?
1893 42 20 (1890) ?

FOREIGN CAPITAL: ARNDT
“Weltwirtschaftliches Archiv” (edited by Bernhard Harms). Volume 7, 1916, I.
“The Power of French Capital” by Prof. Dr. Paul Arndt.
The author refers to his article “New Insights into the Question of Foreign Investment” (published in “Zeitschrift für Sozialwissenschaft,” 1915, pp. 311 and 456) and cites therein the figures for capital invested abroad: (p. 35)
|| (Risser, p. 395
and p. 404)
Billions of francs: 62 (Speyer, 1900)
30 (Den, 1902)
31 (25 billion marks)
English: 3 million pounds sterling
= 75 billion francs; French: 60 billion francs
= 60 » » German: 35 billion marks
= 44 » » (( =179»
France, it is true, ranks among the “great economic powers” (p. 37), occupying fourth place after England, Germany, and “North America.”
FROM THE LITERATURE
From the literature:
William English Walling, “Socialists and the War.” New York, 1915 (XII + 512 pages). $1.50. “Since this volume contains important official party documents, the collection appears to be comprehensive” (p. 188).
Zurich City Library for Social Literature:
Larvus, “Nationalization of Banks and Socialism.”
Schumann, “The German State Bank.”
“…the last four private issuing banks!”
Schär, “The Bank at the Service of the Merchant.”

THE NOTEBOOK “ε” (“EPSILON”)
Schulze, “Bank Failures in Saxony.” 1903. Scher, “The Techniques of Banking Operations.” Berlin, 1908. Levi, “Monopolies, Cartels, and Trusts.” Jena, 1909; Kantorovich, “The Problems of Cartels,” Berlin, 1911; Abel, “Sickly England.” 1909. Veritas, “The Future of Austria.” Zurich, 1892. Jakob Lorenz, “On the Question of Italians in Switzerland,” Zurich.
Schär, “The Nationalization of Waterpower in Switzerland,” Basel, 1905.
Schücking, “The Organization of Peace.” Leipzig, 1909 (41); Lassalle, “The Italian War.” Berlin, 1859. Staudinger, “The Cultural Foundations of Politics.” Jena,
1914. Lloyd George, “The Best of Times.” Jena, 1911.
“THE ECONOMIST” ON THE WAR “The Economist,” April 17, 1915,
Article “The End of the War.”
“But the longer the war drags on, the more the peoples—unlike their governments—will be inclined to cry out against the slaughter that day after day, week after week, devastates countless families. Thus we are once again brought back to the question: ‘The State and the Individual,’ and to the question of how long the rulers of a highly organized, bureaucratic state will be able to withstand the internal revolutionary forces…”
THE ARGUMENTS OF SOCIAL-PATRIOTS The Arguments of Social-Patriots
Epton Sinclair’s pamphlet, with its response from Blatch-Ford, presents with particular clarity, directness, precision, and decisiveness a new argument—distinct from Plekhanov’s, Kautsky’s, and others—advanced by social-patriots:

Yes, the war serves the interests of capitalists, etc., but we are inherently weak; we are clearly incapable of preventing it. Talk of fighting the war, of “uprising,” etc., etc.—such talk is nothing more than “idle speculation,” a hopeless “overestimation” of our own strength.
This line of reasoning resembles the “utopian” approach that Plekhanov also employed in his essays.
From this perspective, the Basel Resolution represents a sincere attempt to warn the governments—not a promise or a declaration of revolutionary action, nor even a commitment to revolutionary propaganda.
[Such a narrow framing of the issue—deliberately narrowed by Blatchford—is one that reduces everything to the notion of “preventive war.” The real task lies in harnessing the crisis for revolutionary propaganda and preparing the groundwork for revolutionary action.]
“THE DAILY TELEGRAPH,” November 17, 1914 “The Daily Telegraph,” November 17, 1914.
Parliament.
…“Mr. E. Jones (representing the Merthyr Tydfil constituency) asked whether it would be permissible to impose censorship on Mr. Keir Hardie’s articles in his newspaper…”
And then, at the end of the session, he stated: “I had informed K. Hardie that I intended to speak about him—and it is not my fault if he is absent.”
He read excerpts from K. Hardie’s articles dated October 31 and November 7, in which K. Hardie accused the British and French of acts of brutality and mocked the loyalty of Indian troops. He claimed that K. Hardie had said the Kaiser was as brave as a soldier—but that he himself had laughed at our “king, who loves his hearth and home.”
Can the government tolerate such remarks from a member of Parliament? “As a result, over the past few weeks we have encountered significant difficulties in recruiting in Merthyr Tydfil—though recruitment had been going well until Mr. Keir Hardie began to employ his particular tactics.”
Then J. A. Piz spoke: “Let me say only this in a single word: when it comes to the matter of pr-

The notebook “ε” (“EPSILON”)
If the government were to consider that all of Mr. K. Gardy’s assertions—upon which Mr. Jones relies—are utterly unfounded and should be met with contempt,”
(End of session.)
POPULATION AND TERRITORY OF BELLIGERENT AND NON-BELLIGERENT NATIONS
(p. 29, “Deutsche Rundschau,” No. 10)
Millions of inhabitants, 1910:
Great Britain: 421; Germany: 78; Russia: 167; Austria: 51;
France: 86; Turkey: 25 (approximately); 674 (the three great powers): 154;
Japan: 70.
(The four great powers): 744 + Serbia
+ Belgium – Non-belligerents:
Group I, belligerent: 744 [750 versus 150]; China: 431;
Group II: 154; United States: 103.
Belligerents: 898; Italy: 36.
+ (The three great
Non-belligerents: 570 powers) 570
1468
The total population of the globe: 1,600.
1912 Square miles (millions)
Great Britain: 10.8; Germany: 1.2; Non-belligerents:
Russia: 10.2; Austria: 0.2 (241,000); China: 2.9; France: 4.8; Turkey: 0.7; United States: 3.25.
2.1; Italy: 0.7; Japan: 0.3 (260,000); 7.3; 26.1
Group I: 26.1
Group II: 2.1
Belligerents: 28.2
Non-belligerents: 7.3
35.5 – The entire globe: 52.0 million square miles.

“THE ECONOMIST” ON WAR AND “THE DAILY TELEGRAPH” “The Economist,” January 9, 1915. In the article “Europe at a Dead End”...
…“It is hardly surprising that, under such conditions” (“the appalling conditions of modern warfare”), “soldiers in areas where mud has rendered forward movement almost impossible are spontaneously concluding armistices—similar to those described by one correspondent in yesterday’s ‘The Times.’ Such armistices, of course, occur only in those sectors of the battlefield where trenches are situated in close proximity to one another—but these armistices nonetheless evoke thoughts of the absurd brutality of war and, for some, give rise to the hope that soldiers on the battlefield may eventually come to protest against the endless prolongation of its horrors” (p. 46)…
Idem, p. 54: “Industrial Profits”:
Net profit (after payment of interest, etc., on outstanding debts)
Amount, %
Reports, quantity (millions + capital—profits published by companies—pounds sterling) in total—capital
for each quarter, on; pounds sterling) overall
1913 1914 % 1914
March 31: 301 20.5 22.1 +8.4 230.1 9.6
July 31: 263 22.6 23.6 +4.2 181.9 13.0
September 30: 131 10.6 9.5 - 9.5 107.6 8.8
December 31: 214 15.3 14.5 - 5.6 116.4 12.4
Total: 909 69.0 69.7 +0.9 636.0 10.9
The “calamities” of capitalists!!!

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“The Economist,” December 19, 1914. “Military Supplement,” p. 10: Russia’s expenditures on army and navy
1903: 466 million rubles %
1904: 491 + 25 + 5.3
1905: 496 + 5 + 1.0
1906: 504 + 8 + 1.6
1907: 493 - 11 - 2.0
1908: 612 + 119 + 24.1
1909: 631 + 19 + 3.0
1910: 648 + 17 + 2.7
1911: 669 + 21 + 3.3
1912: 809 + 140 + 20.9
1913: 944 + 135 + 16.6 “The Economist,” December 19, 1914, p. 1059, article: “War and Modern Commercial and Industrial Enterprises”: …“Until the most bloody of historical storms broke out in late July, it was difficult to distinguish where Krupp began and where Crespo ended. Military loans were closely intertwined with peacetime financing; unproductive debt was blended with productive capital investment. Whether the aim was destruction or construction—whether it was the building of canals or fortresses, ocean liners or warships—the entire business and financial world seemed to be concentrated in London, Paris, and Berlin. Financial firms were almost invariably Anglo-German, Anglo-French, or Anglo-American; boards of directors were interwoven, and branches or agents could be found in nearly every major city across the Old and New Worlds. Giant corporations and joint-stock companies eagerly welcomed shareholders of all nationalities, paying scant attention to diplomatic alliances… Just six months ago, the assertion that nationality posed no obstacle to commercial agreements had become a truism… But all of this came to an abrupt end… Yet neither the business community nor the working class, one might suppose, bear any responsibility for this. The war is universally blamed on a small number of individuals—emperors, diplomats, statesmen, military leaders, or “philosophers”… Let us hope for a swift return to sober judgment, a restoration of common sense, a revival of religion, and a clearer understanding of human consciousness.”
“The Economist,” 1915, No. 3724 (January 9, 1915) * (p. 51): NB “European Military Expenditures”

Over six months
Millions of pounds sterling
Millions of pounds sterling
Army strength (millions) Military expenditures Losses due to production cuts Cost of lost lives Population, 1913 (millions) Foreign trade (per capita) National income, 1913 (per capita) National wealth, 1913
Germany: 4.35 395 830 294 68 1063 (15.6) 2100 (31) 16,000 (235)
Austria-Hungary: 3.50 7.85 320 715 500 1330 141 435 50 118 264 1327 (5.3) (11.2) (25)
?3,000 ?25,000 (212)
Russia: 5.4 490 110 218 170 269 (1.6)
France: 4.0 365 600 232 40 583 (14.6) 1250 (31) 13,000 (325)
United Kingdom: 1.0 90 100 83 46 1344 (29.3) 2,250 (49) 18,000 (390)
10.4 945 810 533 256 2196 (8.6) ?5,000 (20) ?40,000 (156)
18.25 1660 2140 968 374 3,523 (9.4) ?8,000 (21) ?65,000 (174)
Ibidem, p. 46 – the possibility of soldiers protesting as their trenches draw ever closer to one another.

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Allied Nations – Both sides of the Entente
Direct (military) expenditures over six months: 725.990 million francs sterling
Losses due to production shutdowns (Iv Ghoio (me)) 1,330.810 million
Total expenditures over six months: 2,055.180 million
Normal national income over six months (“permissible”) 1,500.2,500 million
Ratio of direct expenditures to national income: 48% 40% 43%
Ratio of total expenditures to national income: 137% 72% 96%
National wealth: 25,000 40,000 65,000 (a) The source, Iv Ghoio, is clearly biased!
Ibidem (January 2, 1915), p. 12:
“All eyewitnesses speak of a profound revulsion at the extreme barbarism and cruelty of modern warfare. Everywhere, people are asking themselves: how long can humanity, by its very nature, endure the horrific torments of this indescribable war? Will exhaustion and the looming threat of starvation soon drive nations to revolt? Some German newspapers are already pinning their hopes on revolution in Russia—and they may well find themselves confronting that very revolution on their own soil, for it is quite possible that Germany’s working class will unleash a fierce backlash against the aggressive militarism that has proven so ruinous to them.”
This passage comes from the article “The Habsburg States,” which notes that the situation of the population and of the various nations within Russia is worse than in Austria.

January 9, 1915, p. 57: Romanians living in Russia fare worse than in Austria…
Ibidem, p. 66: Russia’s war expenditures (for the first half of the year) totaled 6.234 million rubles—roughly 1.3 million rubles per day.
p. 72, new book: P. Vinogradov, “The Russian Question.” (1 shilling?)

“The Daily Telegraph” (No. 18,631), December 29, 1914, The Independent Labour Party and the War.
“One of the resolutions concerning the final item on the agenda of the annual conference of the Scottish section of the Independent Labour Party—scheduled to take place in Glasgow on Saturday, where Mr. Keir Hardie, Member of Parliament, will address the delegates—calls for the expulsion of all members of the Independent Labour Party who are assisting the government in the current recruitment drive. Another resolution expresses regret that the National Labour Party failed to convene a conference at the very moment war broke out, in order to clarify its policy.”
BIBLIOGRAPHICAL NOTES AND LITERATURE REFERENCES
“The British Review,” July 1915, “What We Ought to Feel Toward the War” by John Freeman, pp. 87–88… “an anti-patriotic pamphlet” by Mr. Barrett (title?)
(from the “Freedom Working Group”). “We still have one more war to fight,” he proclaims—a war against the wealthy, a new Reformation-style struggle… p. 88.
“Recht und Wirtschaft,” June 1915.
“The German Trade Unions During the War” by Dr. V. Trältch (praise!! quoted by “Sozialislische Monatshefte”),
A split in Württemberg (Stuttgart). “Frankfurter Zeitung,” No. 319, II morning edition, November 17.
Indexes of acquisitions for the Winterthur City Library (published since 1907), 7th year of publication, 1913/14.
In fiction: Lucien Décave, “Bloodletting” (1870–1). Nexe, “Pelle the Conqueror.” A. Schnitzler, “Novellas.” 1914.

THE NOTEBOOK “ε” (“EPSILON”)
Literature on Switzerland:
Paul Berge. “After the Great Defeat: The Partition of Switzerland.” Lausanne, 1914.
Written before the war: It predicts Germany’s victory and warns of Switzerland’s potential partition.
NB: p. 31—preaching a furious campaign against “revolutionary socialism” in the military and in schools.
A. Rüegg. “From the Life of a Waitress.” Zurich, 1914.
Section III (“Works of General Educational and Scientific Content”): “Doctrines on Origins.” 1914. (“Culture of Modernity,” III, IV.)
Og. Bernard. “Morocco.” Paris, 1913.
E. Haeckel. “God-Nature.” Leipzig, 1914.
Rud. Kellen. “The Great Powers of Modern Times.” Leipzig, 1914.
A. Manès. “The Social Side of the World” (on Australasia). Berlin, 1914.
Rud. Martin. “German Rulers.” 1910.
Ude. “Feuerbach.” Leipzig, 1914.
A. Zart. “Fundamentals of the Universe: Atoms, Molecules.” Stuttgart, 1913.
Taylor. “The Foundations of Scientific Management of Enterprises,”
COAL AND IRON
“Internationale Monatsschrift für Wissenschaft, Kunst und Technik” (Leipzig), January 1916 (10th year of publication, No. 4).
Hans Arlt, Dr., mining assessor in Munich.
“Coal and Iron and Their Significance in the Modern All‑World War.” Statistics on coal and iron reserves in the warring nations.
(World iron ore reserves)
(“World” coal reserves)
(Conferences of geologists in Stockholm in 1910 and in Toronto in 1913).
By coal reserves: iron reserves:

1. United States 1. United States
2. Canada 2. Newfoundland
3. China 3. Germany,
4. Germany

The extraction of coal in 1913: England – 287.4 million tons; Germany – 278.9 (Consumption: 250.3; Germany: 233.8, England).
Thomas’s remarkable invention in 1878—replacing the Bessemer process for iron production with the basic or Thomas process—marked a turning point.
This method gave Germany the upper hand, as it involved removing phosphorus from ore—a process that proved particularly advantageous in Germany, where iron ore is notoriously rich in phosphorus (NB).
It was through this very innovation that Germany ultimately outstripped England.
The chemical industry produced coal tar (1 million tons in Germany in 1912).
The regions of France occupied by Germany contained roughly 70% of France’s coal reserves
and approximately 80% of its iron ore.
(Without America, France would have long since been doomed.)
LEADERS OF THE TRADE UNIONS — Leaders of the trade unions, October 7, 1915, The Daily Telegraph.
After listening to the speeches delivered by the Prime Minister and Lord Kitchener, the elected labor leaders, following lengthy deliberations on the issue of recruiting new troops, issued a vigorously worded appeal to volunteers, stating that “to safeguard the principle of voluntary enlistment, recruitment must yield at least 30,000 recruits per week.”
Mr. S. W. Bauermeister, Member of Parliament and Secretary of the Parliamentary Committee of the Trades Union Congress, handed a copy of the appeal to a representative of The Daily Telegraph yesterday afternoon. The text read as follows:
The Crisis.
An Appeal to Free Men.
“Fellow citizens… Never before in the history of our nation has our people faced such a grave crisis as we do now… The aggression of Germany, etc. … (the goal:) to achieve a victory that will liberate the world from the fear of military tyranny which Germany would seek to impose upon it…” The Call

NOTEBOOK “ε” (“EPSILON”)
To send men into battle—why?… “not only because, by acting thus, they will be defending their own interests, but also because their actions will safeguard the vital interests of the people”…
…“We know that defeat—or even a dubious peace—would mean not only the loss of our national prestige and the certainty that conflict would erupt again within a few short years, but also the loss of those freedoms and individual rights for which centuries of struggle were required to secure…”
G. Gosling / Parliamentary Committee of the
S. W. Bauermeister / Trades Union Congress.
J. O’Grady / General Federation of Trade
U. E. Appleton / Unions.
J. J. Wardle / Executive Committee of the Ra-
U. S. Sanders / Party.”
Ibidem, October 9, 1915 (Saturday). In addition to mass meetings (X x), a meeting was scheduled for Monday, October 11, 1915, between Lord Derby, the newly appointed Director of Recruitment, and the signatories of the important manifesto issued last Thursday, October 7, 1915, by workers’ organizations. “This conference, to which representatives of workers’ organizations had been invited by Lord Derby, will be held at No. 12 Downing Street…”
( )… “the Executive Committee [of the three signatory organizations] has already made available, free of charge, halls suitable for holding mass meetings”…
Beyond mass meetings, outreach campaigns are being organized, including “meetings in the workshops,” “gatherings during lunch breaks,” and so forth.
…a large quantity of propaganda materials will be prepared, primarily in the form of leaflets to be distributed at various rallies… and so on.
NB
On the Question of Financial
Capital
Ibidem, October 15, 1915. A laudatory review of Ellis Powell’s “The Evolution of the Money Market” (Y u. 6 p.). London, 1915 (“Financial News”).