The Daily Worker Newspaper, February 23, 1924, Page 7

- Aes imperialists are em- barking on new ventures to- wards domination of the world mar- ket and the sources of raw material. Our capitalists are beating new paths towards greater spheres of in- fluence and financial and industrial world supremacy. The recent loan to Japan, not so much because of its size, but rather on account of its terms and intent, is a milepost in the development of the — capitalist imperialist em- A Gigantic Loan. When such guiding forces in American financial and industrial life as J. P. Morgan & Co., Kuhn, Loeb and Co., the National City Co., the First National Bank of New York, Lee, Higginson & Co., the Mechanics & Metals National Bank, and the Bankers & Equitable Trust Com- panies of New York get together with more than a dozen other big banking firms to float a loan of $150,- 000,000 it is an event of extraordi- nary significance in the development of American commercial supremacy. government loan is the largest long term foreign loan floated in the United States since the Armistice. In view of the high credit of Japan, the general improvement in the field of investment, and the easier money tendency in the market, the price of circles as a highly generous figure— @ sure sign that original purchasers will profit by market appreciation. Since the Armistice, November 11, 1918, European loans to the extent of $1,146,750,000 have been floated in the United States. Perhaps no better proof is to be offered of America’s becoming the leading cred- itor nation of the world than that of ‘this gigantic sum only $108,020,900 has been paid. The balance is still outstanding. An examination of the European government and municipal loans made by American bankers since the Armistice, shows that Aus- tria, Belgium, Czechoslovakia, Fin- land, France, Italy, Netherlands, Norway, Sweden, Switzerland, and Great Britain have borrowed heavily during this period. It is especially important to note that tho England gave the imperial Japanese government better terms, American bankers assumed $150,- 000,000 while British bankers lent only $107,000,000. The English bankers were allowed to draw 6% interest. The American bankers are to draw 6%% interest. At their re- spective maturities and terms the British financiers will receive 6.96% Powerful American capi has in the official trade union ‘ine the Brown Bros. & Co. of Philadelphia, ' The naw $150,000,000 Japanese | these bonds is regarded in banking | toile — stron, 7.10%. The money is to be spent mainly “to purchase materials» and supplies for the reconstruction necessitated by the earthquake and fire of 1923” only a small portion of this big loan is to be employed to cover bonds about to mature. The government’s reconstruction program provides for an expenditure of about $700,000,- 000. Of this sum, no less than $390,- 000,000 will be spent to purchase ma- terials outside of Japan. Significance of the Deal. In a sense the terms of the loan indicate a highly important departure from the customary ~ procedure characterizing American banking methods. It has been the practice of Eng- land to make loans on the basis of the borrowed money being expended by the debtor nation im the purchase of commodities manufactured in Bri- tish territory. By this method Bri- tish bankers and industrialists have ‘for a long time been tremendously aided in maintaining their role as the rulers of world finance and manu- facturing. Several months ago, there was a campaign to float an Indian loan in London. A motion was formally |made in Parliament that at least 75 per cent of this loan is to be spent in England. The motion was defeat- ‘ed simply because it was pointed out that there is no need of such action since experience has shown that in the past at least 95 per cent of the money from British bankers bor- rowed by India was voluntarily spent in English markets. America and Japan. Not many people realize the extent to which Japan’s economic relations are bound up with the United States. Forty-five per cent of the exports of Japan go to the United States. Amer- ica is by far Japan’s best customer. China, which is second, takes ouly 24 per cent of the Japanese exports. Great Britain takes only 3 per cent. Of the five commodities exported by Japan to the United States and ac- counting for sixty-six per cent of our imports from Japan, raw silk ranks first. Ninety per cent of Japanese raw silk is sold to the United States. This means that 36 per cent of the entire Japanese export trade is pro- vided for by shipments of raw silk to American manufacturers. The United States purchases a third of Japanese pottery and 90 per cent of its tea. For the fiscal year ending June, 1923, we exported to Japan, commodities valued at $213,000,000 and imported from Japan commodi- ties valued at $372,000,000. In the aimed against the demoralizing in- fluence of the labor. bureaucracy. The American proletariat number- ing’ many millions, is not yet suffi- and class conscious to mightiest capitalist system in the world and to drive out its agents; however, among working class of America there is a sufficient number of class poaket An Advanced Step. The revolutio: workers of America are now publishing a daily militant e DAILY WORKER. Heretofore the at the present is one o SS lene soy ons for the enslavement of the work- TOWARDS WORLD DOMINATION = ssriavesio |while the American bankers w‘ll draw same period, we exported to Japan, 363,668 long tons of steel. The de- mand for steel hy Japan will un-'| questionably increase steadily until ar Tage tt cian requirements are me - The United States supplies Japan commodities more than twicé as much in value as any other country—31 | per cent of Japan’s 1922 imports. were from the United States. Raw} cotton, machinery, lumber, fron bars, | rods and plates, kerosene and eon-| struction material were purchased by | Japan in the last fiscal year to the; extent of more than $200,000,000. | Automobiles, leather, iron tubes, | paper and paper pulp, railroad equip- | ment, nails and Idad, etc., were pur-' chased by Japanese agencies in the United States last year to the extent of about $100,000,000. American capitalists are also mak- ing heavy investments in Japan. At the close of last year, there was or- ganized a. powerful Japanese-Ameri- ean Construction Company of Tokio. This corporation, known as the “Jap-' States, anese-American Engineers & Con- tracting Corporation,” is capitalized at $50,000,000, is to be financed and controlled jointly by American and Japanese interests, and is to establish branches in other parts of Japan as conditions demand. Thru the or- ganization of this company Americsn capitaists have assured themselves most 25 per cent of our total foreign the role of the dominant group in the reconstruction of Japan. Recent months have also seen American electrical interests secure a gtrangle-hold on the Japanese elec- tric industry. of this character in Japan. It is capi- talized’ at $111,000,000 and has re- cently absorbed nine competing com- panies. This concern has just formed a combination with the Westinghouse Electric Company of America. Like- wise, the General Electric ‘Company |war, is planning to organize a cam- has concluded a combination with the | paign of propaganda to win over the Shibaura Electric Works; the West- ern Electric Company has formed a inati ith the Nippon Dento/jern markets against foreign competi- combination wi The ‘Aueucheet in-|tors. The nao of our wg ge jtally concerned with the | government is “American mus' su- mae a afforded | preme in the Pacific.” F “on reap fabulous profits in the | war, the German capita ists had as eemiieaice of Japanese railways. |their battle cry, ‘ We must drive to The hand of American capital is|the Near Rast.” Today the Ameri- e recently an-| can imperiajists have as the? war cry, Electric Works. tremendous __ possibilities also suspected in th nounced union of flour mill com- panies in Japan. Thru this merger view of the collapse of the European six of the biggest companies with a|market American bankers and manu- combined daily producing capacity | facturers are more and more concen- of close to twenty thousand barrels united. This corporation is now planning to swallow up fifteen small- er companies and organize itself into Eastern spheres of a national federation. The Struggle Against Fascism In America record. I think that the capitalist press of every country is entitled to the world record in this sphere. But can there be more than one cham- pion in.any one sphere? Apparently, yes. For each of the capitalist pa- pers of the various countries is more mercenary, more corrupt, more bil- ious than the other. You will raise the voice of the revoluti proletariat... against American capital used to enslave your class, The Task of the Daily. You will have to carry on from day to day a desperate struggle both against your direct tradi! ‘ labor movement, the struggle to win Beattie. 2b —~ Br of the work- Workers Watch America. The Tokio Electric|cial supremacy in this theatre of Company is the largest corporation world capitalism. According to the Effect on Japan. The steady encroachments of American .capital on Japanese re- sources and the growing dependence of Japan on the American market spell events of intense complication and danger in the future relations be- tween the two countries, Japan is today in the throes of a serious political upheaval rocking the very foundations of the government. There is a gigantic struggle, now go- ing on in Japan for increased popu- lar participation in the government. Besides, the country is involved in a severe economic crisis, because of the great losses suffered thru the earth- quake and fire. The people are hold- ing almost continuous mass meetings in the ruins of Tokio, demanding greater democratization of the gov- ernment. The Germs of New Wars. The establishment of American im- perialist hegemony in the Pacific is a menace to the peace and security of the working masses of the United The bonds bearing interest to be received by the bankers of Wall Street also bear the germs of new devastating wars. American commerce with the Ori- ental countries is now three times what it was a decade ago. Our trade with the Far-East accounts for -al- commerce. In the last year alone, we increased our trade with the coun- tries of the Orient by 25 per cent. But. Europe is swiftly recovering its poise in the conflict for commer- Department of Commerce reports of January 21, 1924, Europe is gradu- ally regaining its trade with the Far- The government, in its anxiety to help-American capitalists maintain their advantages they won during the working masses of this country to the necessity of protecting the Far-East- Before the “We must drive to the Far-East.” In trating their efforts at world supre- macy in the Latin American and Far influence and markets. DAILY WORKER, which js the standard bearer of the revolutionary part of the American proletariat, be- come a ringing call for the battle to the mighty proletariat of the United States of America, which is still tied hand and foot. Let all the fakirs of the pen and the scoundrels of the press attack you, let all the Gompers valets viciously slander you, they cannot stop the approaching revolu- tion any more than they can stop the earth from revolving around its axis. The social revolution is upon us and a few years sooner or a few years later, it will conquer the entire world. Zineviev, at the Congress of Scien- tifie Workers of Russia. At.this Congress which, I am sure, will mark an important date in the history of our revolution and of our intellectual class, you will form your ranks in order to set yourselves with ardor and devotion to the task of re- constructing our country. We want to give a place of honor in the faia- ily of peoples to our Russia which has groaned for such a~long time under the yoke of autocracy and which was ruined, set on fire, and its blood spilled under tiie rule of the capitalist class, We will see to it that there shall be no more illiterates; we will create a vast network of in- stitutions of instruction; we will lead upon the broad road of the future our great people which was a century late in its bourgeois revolution, but which, by a combination of fortunate circumstances has been the. first to make its proletarian revolution, and we will help it to occupy in the world the place which it deserves.