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Leon Trotsky: The Transitional programme

Expropriation of Separate Groups of Capitalists

Expropriation of the Private Banks and State-ization of the Credit System


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The socialist program of expropriation, i.e., of political overthrow of the bourgeoisie and liquidation of its economic domination, should in no case during the present transitional period hinder us from advancing, when the occasion warrants, the demand for the expropriation of several key branches of industry vital for national existence or of the most parasitic group of the bourgeoisie.

Thus, in answer to the pathetic jeremiads of the gentlemen democrats anent the dictatorship of the "60 Families" of the United States or the "200 Families" of France, we counterpose the demand for the expropriation of those 60 or 200 feudalistic capitalist overlords.

In precisely the same way, we demand the expropriation of the corporations holding monopolies on war industries, railroads, the most important sources of raw materials, etc.

The difference between these demands and the muddleheaded reformist slogan of "nationalization" lies in the following: (1) we reject indemnification; (2) we warn the masses against demagogues of the People's Front who, giving lip service to nationalization, remain in reality agents of capital; (3) we call upon the masses to rely only upon their own revolutionary strength; (4) we link up the question of expropriation with that of seizure of power by the workers and farmers.

The necessity of advancing the slogan of expropriation in the course of daily agitation in partial form, and not only in our propaganda in its more comprehensive aspects, is dictated by the fact that different branches of industry are on different levels of development, occupy a different place in the life of society, and pass through different stages of the class struggle. Only a general revolutionary upsurge of the proletariat can place the complete expropriation of the bourgeoisie on the order of the day. The task of transitional demands is to prepare the proletariat to solve this problem. [Back to Contents]

Expropriation of the Private Banks and State-ization of the Credit System

Imperialism means the domination of finance capital. Side by side with the trusts and syndicates, and very frequently rising above them, the banks concentrate in their hands the actual command over the economy. In their structure the banks express in a concentrated form the entire structure of modern capital: they combine tendencies of monopoly with tendencies of anarchy. They organize the miracles of technology, giant enterprises, mighty trusts; and they also organize high prices, crises and unemployment. It is impossible to take a single serious step in the struggle against monopolistic despotism and capitalistic anarchy—which supplement one another in their work of destruction—if the commanding posts of banks are left in the hands of predatory capitalists. In order to create a unified system of investments and credits, along a rational plan corresponding to the interests of the entire people, it is necessary to merge all the banks into a single national institution. Only the expropriation of the private banks and the concentration of the entire credit system in the hands of the state will provide the latter with the necessary actual, i.e., material resources—and not merely paper and bureaucratic resources — for economic planning.

The expropriation of the banks in no case implies the expropriation of bank deposits. On the contrary, the single state bank will be able to create much more favorable conditions for the small depositors than could the private banks. In the same way, only the state bank can establish for farmers, tradesmen and small merchants conditions of favorable, that is, cheap credit. Even more important, however, is the circumstance that the entire economy—first and foremost large-scale industry and transport directed by a single financial staff, will serve the vital interests of the workers and all other toilers.

However, the state-ization of the banks will produce these favorable results only if the state power itself passes completely from the hands of the exploiters into the hands of the toilers.

 

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