Page - 93 - in Otto Bauer (1881–1938) - Thinker and Politician

a contribution to the theory of imperialism 93 flowof capital into economically less developed regions, and themergingof national capitals.17 These tendencieswereprecededbyan increasedconcen- trationof industrialandbankcapital.18Deriving these ideas fromHilferding’s FinanceCapital,Bauerreferredtothreeofitscorethesesanddrewconclusions thatwere just asone-sidedasHilferding’s.19Headopted the followingpoints fromHilferding: – Firstly, the thesis that individual enterpriseswillmerge andbecome joint stockcompanies,cartelsandtrustswithsimultaneousstronginvolvementof thebanks.Much likeHilferding,hewasconvincedthatcapitalistsadvance from being productionmanagers to shareholders over the course of this process.20 One consequence of the interrupted connection between the ownershipof capital andproductionmanagement is a change inproperty relations.Companyprofit issupersededbyanewcategory–‘founderprofit’ (Gründergewinn). It is a factor of accelerated accumulation accompanied bycapitalconcentrationandcentralisation,whichoccursat theexpenseof smaller enterprises (which are eliminated). This process is encouragedby thecreditpolicyofthebanks,whichfavourhighinterestrates,andtherefore favourcorporationsandsupporttheestablishmentof industrymonopolies. – Secondly, the thesis of industrial and bank capital merging into finance capital.21 This type of capital possesses greater financial powers than the sumofcapitalsof all individual entrepreneurs.Consequently, bankcapital seizes industrial capital.AlongwithHilferding,Bauer committedanerror: hebelieved this tendency tobepermanent.Bothdisregardedtheantagon- 17 CompareLederer 1965,p.375.Until 1908,Bauerwasconvincedthat itwas impossible for Austriancapitalismtodevelop towards imperialism. Inhis laterwritings,heaptlypoin- ted to the role of German capital in the emergence of Austrian imperialism. German protective tariffs at thebeginningof the twentiethcenturymadethe importofAustrian agriculturalgoodstoGermanydifficult.Afterthe1905tradeagreementbetweenGermany andAustria,Germanexports toAustriadoubledby 1914,whileAustrianexports toGer- manyremainedconstant. 18 SeeBauer1980b,p. 170. 19 According to Kluza-Wołosiewicz, Hilferding’s Finance Capital (1910) met with greater interest in Russia than it did inGermany. TheRussian labourmovement brought it to Poland. There are also echoes ofHilferding’s theory in the imperialismanalyses of two Polish authors: JędrzejMoraczewski andOskar R. Lange. See Kluza-Wołosiewicz 1963, p.259. 20 SeeHilferding1981,pp.204–7.CompareBauer1976q,p.847. 21 Hilferdingwrites: ‘I call bank capital, that is, capital inmoney formwhich is actually transformedinthiswayintoindustrialcapital, financecapital’–Hilferding1981,p.225.