The Daily Worker Newspaper, July 22, 1924, Page 6

4 Page Six ‘THE DAILY WORKER. Published by the DAILY WORKER PUBLISHING CO., 1113 W. Washington Blvd., Chicago, Ill. (Phone: Monroe 4712) SUBSCRIPTION RATES By mail: $3.50....6 months $2.00....3 monthr (in Chicago only): ..6 months $2.50....3 montus $6.00 per year $8.00 per year Address all mail and make out checks to THE DAILY WORKER 1113 W. Washington Bivd. Chicago, IIlinois Editors Business Manager J. LOUIS ENGDAHL WILLIAM F. DUNNE { MORITZ J. LOEB......... Entered as second-class mail Sept. 21, 1923 at the Post- Office at Chicago, Ill., under the act of March 3, 1879. <= 250 Advertising rates on application. More American Imperialism American imperialism appears first unofficially, with loans and missionaries, or investments in the basic industries. Then it is followed by armies, navies, ultimati, and. war. The next war may see the boys from Chicago and Detroit marching into Warsaw. This is fore- cast by the recent announcement that Poland is negotiating a loan in the United States, and that an alcohol monopoly has been created, to raise the revenue to guarantee such a loan. Negotiations are in the hands of Premier Grab- ski. It is a good name the worthy premier has, and typifies also the spirit of those who will make the loan. The American financial sharks will al- low Grabski to grab a bit, but the last grab will be made by American capitalism. The youngsters now graduating from school should study up on Polish language and geography. They will need it when they march on Warsaw and Cracow! to col- lect the defaulted interest and establish “guaran- tees.” Experience by Proxy One of the means by which rulers keep their sub- jects quiet, is to allow them to get some of the thrills of the life of the “better classes,” by proxy thru reading the newspapers. This is the func- tion of the “society pages,” of the elaborate des- criptions of balls, divorce actions, scandals, fancy gowns, etc. Now the capitalist newspapers are going another step in the same direction. They will also give the masses the thrill of murder without the neces- sity of doing the murder onesself. The trial of Leopold and Loeb, in the Frank’s murder case, being crime from the ranks of the higher bour- geoisie, serves admirably to give the masses their experience by proxy. Profits on the extra sale of papers, due to the morbid curiosity aroused by the capitalist press, is an incentive to the publishers also, tho perhaps not decisive. The main spring behind the Frank’s ease publicity is the same as that behind the elab- orate attention given to a funeral in the family of a high politician, to a scandal in high life, or to horse racing. “Give’the boobs something to won- der about. It will keep them quiet.” Solid for a Labor Party Yesterday morning we printed an enthusiastic letter from comrade Joseph M. Caldwell, of Rhode Island, which called for renewed energy and pep in the presidential compaign, now that Foster and Gitlow have been nominated. It was a good let- ter, and we hope that every member of the Workers Party read it. The spirit breathed in that letter is the one that is going to establish our Party as a power in the life pf the American working class. Some comrades might receive the impression (as some have openly stated) that the enthusiasm created by the Foster-Gitlow candidacy is a sign that we were on the wrong track, dnd that now we are right because we have a “pure” Communist campaign. hat is a wrong attitude. It should not be allowed to develop. The Workers Party carries on an entirely independent campaign, not because we chose that road, but because those with whom we should have been allied, deserted the cause of a Farmer-Labor Party and betrayed it to a middle-class politician. We are not surprised by betrayals such as this. We know that the history of a Labor Party will be replete with such betrayals. We know that final- ly tle masses will realize that only the party of the Communists can lead them to victory over capi- talism. But in the process of learning that lesson it is going to be necessary for the Communists: time and time again, to fight in all earnestness and sincerity for united action, for the Labor Party, and to join with non-Communist elements in such actions.’ Our present campaign is no repudiation of this principle of tactics. And one of our main slogans even while we carry on this campaign, must be FOR THE FARMER-LABOR PARTY. Prosperity for the workers expresses itself today in the fact that half the steel mills are shut down, others on part time, textile industry running 10% normal in New England, unemployment increas- ing by leaps and bounds every day. Wonder if the unemployed think that busting the trusts will help them? Republican orators are tuning up to the key, “Farmers, we brought you prosperity,” citing the advance in grain prices. But the only prosperity we have located so far, is on the stock exchange, iestieenecrnne ine anes nee eeteees arena mee THE DAILY WORKER Missouri F.-L. P. for Foster The third state Farmer-Labor Party to endorse the Foster-Gitlow ticket in the presidential elec- tion, and to denounce the betrayal of the Farmer- Labor movement by the C. P. P. A. and LaFollette is the Missouri Farmer-Labor Party, Their action follows closely upon that of the California Party, which repudiated its executive committee’s en- dorsement of LaFollette, and of the Illinois Labor Party, of which Duncan McDonald is the secretary. The LaFollette “independent” candidacy repre- sents “a calculated betrayal of the Farmer-Labor political movement,” declared W. M. Adams, state chairman of the Missouri party. “The Workers Party is the one party which has striven con- sistently and valiantly for the realization of a| mass party of the wage workers and exploited farmers.” It is not surprising thus to see the political or- ganizations that were striving for the goal of a united front, now throw their support to the Com- munists, rather than to the middle-class movement of LaFollette. For the workers and farmers have learned at least one lesson, thru their bitter ex- periences, and that is the absolute necessity of an organization to control their political candidates. They have a deep suspicion of men who, like La- Follette, reject the organized control of a work- ers’ political organization. That is the first step toward learning that nothing but a workers’ goy- ernment, built from the ground up, will solve their problems. Observe “Anti-War” Week If any worker feels that the “Anti-War” Week, set by the Communist International and observed all over the world, July 27 to August 3, is not of pressing importance, let him think back ten years and remind himself of the days of July and August, 1914. While it was true that in Europe the workers had some faint realization of the war danger, yet it was not taken seriously enough for them to real- ly raise the question: “How can we fight against war?” In America the workers hardly realized that the war had started for weeks after workers had been killed in the tens of thousands. The next war will spring upon us just as quickly and unex- pectedly. The recent death of an American agent in Persia, for example, may be the beginnings of the next world conflagration. Today the great question of war, viewed from the angle of working class interests, is how to turn the conflicts of capitalistic imperialists into the struggle to overthrow the capitalist system. The way to end war is, first to understand its causes, and its agencies within the working class; then to organize the instrumentalities for turning the im- perialist war into the civil war that will abolish the dictatorship of the capitalist class. The “Anti-War” special of ‘the DAILY WORK- ER next Saturday will be devoted to this problem. It is of the most vital importance to the working class. It demands wide circulation, and careful study, that the next war will not find us entirely unprepared. When the workers finally wake up to find themselves in the midst of war, this “Anti- War” edition of the DAILY WORKER will be their handbook of theory and practice. In the Interest of Humanity The editorial columns of our metropolitan and rural press are now filled with glorious boasts about the humanitarian interests which are in- spiring American participation in the London reparations conference. That this propaganda, rather than the American participation, is inspired is obvious to all who have been observing the maneuvers of our employing class in extending its sway over new fields of in- vestments, over more spheres of influence, over new world markets. If one would accept all the talk about humanity indulged in by the Yankee aristocracy of gold, he would be compelled to con- clude that the American capitalists have an in- disputable monopoly on altruism and humanitar- ianism as well as a shaky hold on oil and coal. But we will leave it-to the Wall Street Journal to tell us about the dynamic motive and force im- pelling American participation in European recon- struction. In explaining why the “unofficial ob- servers,” on guard for the United States investors at the conference; are so adamant against any changes in the Dawes plan the Wall Street Jour- nal declared: “Not a cent of American money will be forthcoming on any German ‘interpretation’ of the Dawes plan. As the framers of it have pointed out the plan interprets itself.” Here we have the essence, the height of altruism attained by American imperialism. The attitude of our unofficial and backdoor observers, at the London Conference as well as at all other interna- RUSSIA IN 1924 (Continued from Last Issue.) That arch-political fakir, Lloyd George, said at least one true thing while he was in office. This was during the Kron- stadt revolt early in 1921, when he said that if the Bolsheviki could survive that supreme test, the governments of the world would have to accept them and deal with them. And so it has turned out in fact. Never was the sentiment more pre- valent than now that the economic rehabilitation of Europe is impossible without the participation of Russia. It. has been a hard fight to force this conviction home. But the re- sult is worth it. Already Russian exports and imports have reached 20% of pre-war figures, and are rapidly growing. The growing imports and exports are breathing the breath of life into industry and agriculture all over the country. Speak- ing to.the Moscow Party Conference, on May 14, 1924, on the subject of the development of foreign trade, Comrade Kame- ney said: “The government export (all exports and imports are government controlled) has been so developed by us during the last year that we completely carried out the program laid down in the spring. Last year we decided upon the renewal of the export operations which had been in abeyance for 10 years. We worked out a program for the exportation of 225,000,000 poods of grain this year. We can confidently state that we will carry out this program in full, and in such a manner that we will sure knock out the American grain. In fact, we have reconquered our old position in Europe in the course of one and one half seasons.” 5 The capitalist statesmen are looking askance at the ad- vance of Russia through the barrier of the blockade. But they are powerless to stop it. They have tried to lay down as the basic condition for Russia’s participation in world affairs, the payment of the enormous debts of the Czarist and Keren- sky governments. But without avail. Although the Russians are willing to talk a lot on the subject, they refuse absolutely to pay or agree to pay. They have served notice on the world that they will not allow themselves to be ensalved and robbed of the fruits ofthe revolution. Nevertheless, they are being recognized by more countries and the process of breaking the blockade goes on apace. In another three years the terrible blockade, one of the greatest crimes in history, will be no more than a hated memory. Stable Money—The Budget None of the aforementioned problems is fully solved, but all are on the way to solution. That is the case with the breaking of the blockade, and likewise with the stablization The House at the Corner . - N Wall Street the firm of J. P. Mor- gan & Company is known as “The House at the Corner.” The throne of financial America, in effect of the financial world, is located in the of- fice of J. P. Morgan & Company, oc- cupying the corner building of 23 Wall Street, at Broad and Wall Streets. The nomination of John W. Davis by the democratic party has brought Mr. Morgan again to the foreground. As a matter of fact, the decision of the New York Convention in choos- ing a member of the law firm of Stetson, Jennings, and Russell, whose client J. P. Morgan & Company is, is not an innovation in the extension of Morganatic politics in the United States. President Grover Cleveland was a member of the same law firm which was even in those days the’ legal defender of this international banking house. The Throne of the World. Mr. Morgan is the trustee of mil- lidns of shareholders. It would be more accurate to say that he is the boss of millions of shares. In terms of available ready dollars for finan- cial purposes, rather than in terms of actual dollars owned, the firm of J. P. Morgan’ & Company is an all- powerful financial kingdom. Its finan- cial control far exceeds its dollars possessed. The greatness of the sphere of in- fluence of the House of Morgan can be appreciated only by viewing the far-flung boundaries of its financial empire. The following table indicates in a measure the power wielded by this dynasty in the world of finance and industry: Companies completely controlled $4,800,000,000 Railroads partly finan 3,500,000,000 Miscellaneous interests 1,000,000,000 ‘ Total interests Thus the Magazine of Wall Street has recently declared: “The House of Morgan is today more than ever be fore, the titular head of American finance.” Began In Civil War. J. P. Morgan is now fifty-six years of age. Amongst financial overlords, he is a relatively young man. Next to George F. Baker, Mr. Morgan is the most silent man in financialdom. After having been graduated at Harvard University, Mr. Morgan en- tered the London Branch of his fath- er’s firm. Here Mr. Morgan special- ized in foreign exchange. Apparently the czar of American finance had his eye to the future. His father, whose banking mantle he in- herited, died one year before the war broke out. The present Morgan knew that it was the Civil War with its national financing that gave his father’s firm a great impetus towards development. He likewise knew that the trend of the times in industry, politics, and finance was towards in- ternational action. Morgan therefore, made it ‘his business to prepare him- self as the successor to his father in the field of international exchange and finance. Soon it turned out that Mr. Morgan was right. What nation- “STILL REPUBLICAN” By EARL R. BROWDER, EENATOR FRAZIER of North Da- howling for a rope around LaFollette’s neck, but now—well, Coolidge vetoed kota announces his support of La-;the bonus, and the democrats re- Follette, because Coolidge did “not represent his brand of republicanism.” Frazier is a member of the republigan party, he remains a member, but he supports LaFollette in his personal compaign for the presidency. tional conferences, is decisively an attitude of the| Senator Wheeler of Montana an- investors, the business men. American bankers see a sound investment in a huge German loan provided they and they alone will be the one’s to set and interpret its terms. The American bankers, all their humanitarian and altruistic talk to the contrary notwithstanding, are not accustomed to sinking two hundred million dollars in questionable enterprises. This accounts for MeDonald laying down the law at the Confer- ence that the Dawes report must not be changed in the least. Ambassador Kellogg’s flourishes about the perfection of the Dawes scheme also take root in such self-sacrifice. Our bankers and manufacturers are now rushing No the reconstruction of capitalist Europe with the same humanitarian interests guiding their class policies, with the lofty principles that char- where one “investor” cleaned up a million and a|acterized their entry into the World War after half last, week. Perhaps the farmers will rejoice] which they became the masters of international nounces his support of LaFollette be- cause Davis does not represent his brand of democracy. Wheeler is a member gf the democratic party, he remains @ member, but he supports LaFollette in his personal compaign. These two men are typical of the LaFollette movement. They are mere protesters against the particular ma- chines in their parties. They main- tain their party allegiance, block the door open carefully for a later return to regularity, and declare “I am a re- publicap” or “I am a domacrat.” Bugene Debs goes thru the same motions. He is still loyal to the 8. P., he declares, but hopes to make a la- bor party out of the Fraziers and Wheelers. He has not their other arguments, he 1s not revolting against P. machine, for there is none. le jeeing from a bankrupt house. @ American Legion vote is still hesitating. Not ap lank as it was jected Berry. So the Wisconsin Sena- tor, especially since he has sabotaged all effective organization of the work- ers and farmers, looks good to these budding Fascisti. J u Klux Klan-ites received a bet- ter reception from the LaFollette crowd than most anywhere else. They were not rebuked, the welcome sign was on the doormat for them, and pothing was said or done to make them feel uneasy. So LaFollette ought to get quite a K. K. K. vote. And now, according to rumor, the Gompers’ machine is preparing to get on the bandwagon. It is*not impossi- ble, That would add the Igst touch tor complete the pot-pourri of middle- class confusionism that make the La- Follette movement the most entertain- ing spectacle seen in decad also be the last item make it the most futile the American masses. Still there are people who expect that out of this welter of muddle- headedness, timidity, self-seeking, and political ‘bankruptcy, can come a la bor party. What is much more likely is the emergence of the party of \ Tuesday, July 22, 1924 By WILLIAM Z. FOSTER of the ruble and the balancing of the state budget. When the Bolsheviki came into power, they found themselves under the necessity of making tremendous expenditures to carry on the war, to keep the limping industries going, et. To raise suf- ficient money by taxation was out of the question, so the ex- pedient of inflating the currency was resorted to. Enormous quantities of paper rubles were issued to meet the deficit which the returns from taxation and from the state industries were unable to cover. As a result the value of the ruble went to zero. Now the issuance of all this paper money was a vital necessity—some even declared that it saved the revolution, for essential supplies could never hayé been assembled in sufficient quantities otherwise than thru the sale o fpaper money. But the suffering economic’ system had to pay a high price for ¥. With the ruble on the toboggan, the building up of industry became out of the question. Accounting systems were im- possible, and the peasants and other producers who had things to sell gave up the ghost rather than operate with the worth- less rubles, which melted away in their hands. Hence the stabilization of the ruble early/loomed as one of the pressing problems demanding solution. During the past year this has been practically accomplished. The issuance of the cher- vonetz, or hard money 10 ruble note, was a real achievement. It marked a crisis, in fact. The whole thing would have been a failure had the peasants looked upon the new notes merely as the old worthless ones under a new form. But the prestige 0 fthe Soviet government had risen so high, and the actual axhibition of the gold and precious stones held as reserves behind the new money, worked so well that wher the cher- vonetz appeared it was at once accepted at its face value, not only in Russia but in all the money markets of the world. For a while the government continued the debased ruble side by side with the sound chervonetz, issuing the paper money as of old to meet its debts. But during my recent visit, this dual money system, which was probably unique’in history, was ended by the government cancelling all the debased rubles and throwing the entire money system on the basis of the stabilized chervonetz. Silver coins are now being issued in largé quantnties and will soon be followed by gold ones. Thus poverty-stricken, outlawed Russia, which does not even be- lieve in a money system at’ all except as a thing necessary during the transition period between capitalism’ and com- munism while independent production lasts, was the first country in Europe able to stabilize its currency. Germany, Poland, and other countries are now follawing in its foot- steps, trying to make their broken-backed finance systems stand up. ; Be ] = (To Be Continued Tomorrow) ————————————EEEEE ee al financing did for the old J. P. Mor- gan and Co. during the Civil War, international financing did for J. P. Morgan & Company of today in the World War. A Galaxy of Financial Wizards. In finance, as in politics and war, the success of an individual or a group depends upon the ability to marshal a number of able lieutenants for common action. Mr. Morgan has set an example in this strategy. The group of financiers gathered in the firm of J. P. Morgan & Company is unexcelled today. The roster of the firm includes: ‘ John Pierpont Morgan, Edward T. Stotesbury, Charles Steele, William H. Porter, Thomas W. Lamont, White W. Marrow, Edward R. Spettinius, Horatio G. Lloyd, Russell C. Leffing- well, Junius S. Morgan, Jr., Thomas Cochran, Elliott C. Bacon, George Whitney, Thomas S. Gates. These thirteen men hold nearly one hundred and ten directorships in various corporations. Classifying the interests controlled, we find the fol- lowing leading groups: Banking, 12; trust companies, 18; copper, 4; in- surance, 4; railroads, 16; shipping, 2; coal, 7; power, 1; iron, J; gas, 2; electric, 2; automobile, 1, (General Motors Corporation); agricultural, 3; employers’ associations, 6; colleges, 1;, cemeteries, 1; publishers, 1; loco- m&tive workers, 1, and 16 miscellane- ous corporations. Thomas S. Gates, one of the Mor- gan directors, is the chairman of the Board of Directors of the Standard Steel Company, which is known as a corporation under the guidance of Andrew W. Mellon, secretary of the treasury. Russell C. Leffingwell, another Morgan director, was the Assistant Secretary of the Treasury, 1917-20. Apparently the connection between “The House at the Corner” and the White House has been in ~ good shape for many years. Morgan at Work. The tremendous international poli- tical influence of J. P. Morgan & Company can be traced in the gollow- ing recent outstanding events of j4- ternational finance: 1, When the war broke out J. P. Morgan & Company floated the first loan of twelve million dollars to the Czarist Russian government. 2. In 1916 the British government appointed Mr. Morgan its purchasing agent in the United States. Thus, the Morgan firm controlled the hun- dreds of millions of dollars spent by Great Britain in the United States. 3.In April, 1915, J. P. Morgan & Company arranged a fifty million dol- lar loan to France. . 4. In September, 1915, Mr. Mor- gan organized a syndicate of twenty- two hundred banks and floated a loan of five hundfed million dollars for the Allies. 65. Under Mr. Morgan's leadership there was recently orgahized a syn- dicate of forty-two banks which over- subscribed fowe times, in less than ma i. By Jay Lovestone fitteen minutes, a twenty-five million dollar loan to Austria. 6. A few months ago Mr. Morgan arranged a hundred million dollar loan to bolster up the falling French franc. 7. Today Mr. Thomas W. Lamont is rooming at the Hyde Park Hotel, London, and keeping an eye on the International Reparations Contetence in behalf of his firm, which is counted upon to float the two hundred million dollar loan to Germany. * 8. Owen D. Young, who is’ slated Agent, is a director of the General Electric. Company. Two of Mr. Young's co-directors on the Electrical Trust are members of the firm of J. P. Morgan & Company. “The House at the Corner,” in New York, is today the dominant force in the politico-financial affairs of Amer- ica, France, England, Austria, Hun- gary, and in several countries of the Orient. Views of Our Readers Dirt Farming Pays. To the DAILY WORKER:— The first real sign of “normalcy” since Teapot Dome was noted in the Chi- cago dispatches of July 15, indicated by headlines “Grain Gamblers Take in Millions on Rising Prices.” One real “dirt farmer” was “reputed” to have “taken in” on one crop of corn between $1,500,00 and $2,000,000. Other “dirt farmers” will at once re- cognize him because he is “immacu- late in attire” and his knowledge of corn crops was obtained “while a bookkeeper in A. 8. White & Co., be coming a ‘member of the Chicago Board of Trade in 1896.” He started cultivating his corn “when I was in California last February.” t Another real “dirt farmer,” James A. Patten, cleaned up an old oat field. He is the one who in 1910, made “several million dollars” on one corn crop and came near being “mobbed” in England where he went to exhibit his results, And there are dissatisfied farmers who really insist that farming does not pay! Meskeins in Texas Must Work Without Wages or Take Jail SAN ANTONIO, Tex., July 21.—Di- rectors of the railroad shops~at San Antonio in connivance with immigra tion officials keeping Mexicans working for weeks without paying them their wages, it is charged. The workers are put off with the promise of pay the following week. When they © insistent they are arrested for vagrancy and deported across the border, the company retaining the, a wages, \