GIPE-PUNE-OIIOI2 - DSpace@GIPE

WORLD~CRISIS : INDUSTRIAL REVOLUTIONS 289
.effects on Great Britain have been registered in the sus~
pension of the Gold Standard (September 1931). In
America alone there were 2300 bank~failures in 1931.26
All these tendencies of the capital market are entirely
prejudicial to the promotion of the investment spirit.
Attempts to raise business to the level of paying concerns
constitute the fundamental problem 'of to~day.
The second problem has reference to the temporary
,or cyclical aspect of unemployment. It consists in
reducing the number of unemployed, that is, creating
employment for working men and farmers of all descrip~
tions. This is a fun~tion not so much of the Govern~
ment as of the people, i.e., ultimately of the employer,
classes. From both ends, then, we arrive at the same
point, namely, the creation of new profitable enterprises,
i.e. the establishment or carrying on of such concerns as
are economically worth while. And here lie the diffi~
culties as much of the famine~stricken as of the unem~
ployment~ridden regions. The burden will fall in the
last analysis on the capitalistic class, the bourgeoisie, and
their capacity to furnish the "sinews of war," i.e. to
bear the burden.
We are then led to discuss the question as to why
it has been difficult to run 'the enterprises in a paying
manner. The answer is simple. The markets' are not
.extensive enough, i.e., the number of buyers is not large
25 See the Second Annual Report of the Bank for International Settle·
mentS (down to March. 1932) in Federal Reser"e Bulletin for June 1932,
pp. 365·370.
26 "Banking conditions in the United States·' (The Economist. London.
Banking Supplement. May 14. 1932). pp. 9·10. For 660 bank suspensions
from January to May 1932 see Federal Resewe Bulletin, June 1932, p. 403.