The Daily Worker Newspaper, July 29, 1925, Page 4

FARMERS PROFIT BY HIGH WAGES OF CITY WORKERS Heike Press. Bascomble Officially Disproved WASHINGTON, July 27.—(FP— The agricultural press, according to Ethelbert Stewart commissioner of the United States bureau of labor sta- tistics, has accepted the theory that low wages of industrial workers affect the farmer and commerce thru lower- ed consuming power. “The agricultural press” he said, is howing a greater appreciation of the position always taken by the bureau of labor statistics, that the earnings of the workers, who constitute the t numerical element of our po- pulation, can not be depressed, nor the volume of employment decreased, without reacting upon the whole range of business.” He illustrates his point by showing that consumption of butter is related to the volume of employment MacMillian Expedition to Etah. WASHINGTON, July —The Mac- Millan aretic expedition has left God- haven, Disko Island, Greenland, and was enroute today to its base at Etah, Dispatches to the navy department from Liet. Commander R. E. Byrd said that the “Bowdoin” left Godhaven at 11 a. m. yesterday and that the “Peary” was due to get away at 7 a. m, today, Another Army Goes To Europe. NEW YORK, July 27. — Another army of American ‘tourists sailed for Europe Saturday aboard eight big trans-atlantic liners. Steamship offi- cials estimated the departures at more than 5,000. European touring this year has broken all records, the record departures for a single day being 10,000. |compensation. | se - _ THE DAILY WORKER Christian County board of supervisors, ; influenced the board to refuse Sheriff SHERIFFS MAY |Andrew FlesheP® recent bill for |deputy hire. 9 | * Legalize Child ee , , | In a second opinion, Handed to the T0 ANY NU ER scrmstnent of labor, “the} attorney | |general held that schodl bpys under ithe agé of 14 years may* be’ employed | Seen as Great Aid in War as caddies. He pcinted to a statute |providing that such persons, volun- on Workers | \teering services during school vaca-| jtion, may. be employed at work in SPRINGFIELD, Illinois, July 27—A | which there is no element of danger. sheriff in Illinois may hire as many | _ deputies as he believes necessary to | preserve peace and social order and | the board of supervisors in his county | must make arrangements for their | Imperial Pup Gets on the Battlefield 27 Years Too Late) Will Be Forced to Pay. | ; ‘That was the essence of an opin-} CAPETOWN, July 27.—The prince jon forwarded today to Carl Priehs, * of, Taylorville, state's attorney of © Wales today visited: :battlefelds, Christian county, by Attorney Gen- around Kimberly made famdus during the Boer war and began’ préparations for his departure for South America eral Oscar Carlstrom, The question arose when James E. CANADA'S-RAIL WORKERS MEET SEPTEMBER 21 Amalgamation to Be on Agenda TORONTO, July 27.—Arrangements for the accumulation of data on rail-! way operation and cost of living and the extension of publicity facilities are matters to come before the 30th con-) vention of the Canadian Brotherhood of Railroad Employes at Toronto, Sept. 21. This purely Canadian organization has made a point of challenging un- fair statements made in the daily press regarding the position of the vailway workers, sending letters to editors well fortified with facts and Corman, of Pana, chairman of the next Wednesday. This method of publicty has been little used, by Canadian labor unions, tho it reaches people, including work- ers, Who neyer see a labor paper. The Canadian press carries extraordinary misinformation or misrepresentation regarding the labor movement, usual- ly allowed to pass unchallenged. Amalgamation, co-operation, insur- ance and. political activity are other convention problems, Brookhart Holds His Lead WASHINGTON, July 27.—Daniel F. Steck, democrat, contesting the elec- tion of Smith W. Brookhart, insurgent republican, to the senate, has gained about 60 more votes in the recount. » Brookhart still has a substantial lead, however, having made a gain yesterday of 300 votes due to the find- ing of errors in the figures certified by the state of Iowa. Getting a DALLY WORKER sub or two will make a_ better Communist of you. ‘igures, Write the story about your. shop— RUSSIA T | (Continued from Y esterday’s Daily Worker ) SYNOPSIS.—The official report of the British Trade Union Delegation to Soviet Russia, two instalments of which have appeared in the DAILY WORKER, and which will continue daily, tells of the intensive investiga- tion of all phases of the life of the workers under the Soviet government and the structure of its administration, from the time the seven British trade union leaders entered the frontier town of Sebezh, Nov. 1, until they left Leningrad December 15. Yesterday's instalment took up the question of finance, which is being continued today as follows: Gold Standard Restored The first step was the restoration of the National Bank, with jthe right to issue currency notes (October 11th, 1922). The [ssuc of notes was entrusted to an issue department composed partly of Governmental, partly of bank representatives, and the whole form and function given to the New National Bank was clearly modelled on the Bank of England. The new cur- rency had a unit of ten roubles, called after an old Russian coin, Tchervonetz. This unit, with the percentage of gold of the old rouble, is secured to one-fourth by bullion and foreign exchange, the remainder by short bills and easily realisable securities. But the bank has done its best to maintain throughout a bullion reserve of not less than 50 per cent., as appears from its pub- lished balance sheets. These Tchervonetz notes, which were obviously in tmitation of our pound notes, were giyen an imme- diate currency for taxes, customs tariff, and certain other official payments. But their introduction into general currency was proceeded with very cautiously and even met with a certain amount of difficulty. Owing to their high denomination and the curious conservatism of Russia, these notes used at first to be returned to the bank in large quantities to he exchanged ‘into the old depreciated currency. Yet the main difficulty of maintaining a double currency, namely, that the worse drives out the better, did not develop, z=¢ iy the autumn of 1923 the Tchervonetz was coming generally into circulation, and being taken up with confidence. It was considered safe by December 21st, 1923, to make the acceptance of the Tchervonetz obligatory for Government purposes. But the old notes were still the basic currency and the banks were still obliged to give them in ex- change when required. The Tchervonetz The buying value of the Tchervonetz was at first as high as 11.08 roubles in wholesale dealing and 8.9 in retail. But a year later, after sharp oscillations, due probably to an insufficient basis of business, it had fallen to 7.64 and 5.41 respectively. This depreciation was checked in the autumn of 1923 by intervention of the National Bank. On the whole, it did the new currency as much good as harm, because the reduction by one-qquarter in value reduced the high denomination of the new notes without seriously affecting confidence in them. Foreign exchange of the Tchervonetz being under closer control was steadier, and the average exchange with the pound sterling has been above pre-war exchange. The following figures show that the dollar exchange is now very steady and the vari- ations in the pound exchange have another explanation than the real value of the Tchervonetz. Under conditions of so complete a monopoly of foreign commerce as there is in Russia, the re- actions between foreign exchange value and internal buying value may become somewhat remote. There is, in fact, the risk that official operations may creat an official exchange remote from real market values. But a comparison of the official and the free rates of exchange shows that, though a difference exists: it has not as yet become dangerous. On January Ist, 1923, the free exchange was 4.6 below the official; in March, it Was equal; in May, the free was 1.1 above, and in July, 1.1 below. In the provinces, however, the difference became as much as 10 per cent. in 1924. TCHERVONETZ EXCHANGE Date 1923 Sterling March Ist . 8.85 April ist . 8.56 May Ist 9.67 June Ist 11.88 July Ist 9.80 August Ist . i 9.65 September Ist . 9.51 October 1st 9.39 November 1st 9.15 December 1st 9.47 January Ist . 9.40 February Ist . 9.24 March Ist 9.07 April 1st . 8.36 May Ist . 8.52 June Ist 8.38 July Ist 8.41 August Ist 8.55% September 1st .. 8.73 October Ist 8.67 November 1s: 8.78 December 1st 944% 8.98 December 20th 94% 9.13 To sum up, we have in the Tchervonetz a currency which is _the opposite extreme to that aimed at by War Communism. It is not merely the substitution of a gold rouble for such compro- mises between money and man-power standards as were pre- ited by the various forms of goods roubles. It is a gold dard which is based on its relationship with foreign gold rds and especially the pound sterling. This close connec- “tween the new Russian currency and foreign commerce, ful guarantee for the good will and good faith of the ‘xermment enterprises in methods of foreign com- ODAY Regulation of Exchange Thru Courtesy of the International Pub- dishers Co. This stability of exchange: in the Tchervonetz was achieved in face of a trade balance at first heavily against Russia, owing to the difficulty of organising export and the heavy demands for imports due to the famine and reconstruction work. Moreover. foreign exchange was indispensable for the Bank in order to secure the new currency and to start commerce. Consequently decrees were issued on the date of February 15th and April Stn, 1928, regulating dealings in foreign exchange and limiting them to members of the Bourse and banks having general per- mission to deal. Though not very strictly observed, this legisla- tion has served its purpose and brings at least all Government Trusts and syndicates, as well as the co-operatives, under con- trol in this respect. Further, no payment within the Union may be made in foreign valuta, and holdings of it by State Trusts or co-operatives are strictly regulated. The National Bank must be given the refusal of any such foreign exchange before it is disposed of privately, and no one may export more than 200 roubles’ worth without permission, though this is easily evaded. However, with the moneys confiscated from Nepmenm trough the G. P. U. for illegal attempts at export of securities a railway of 100 versts long required by the cotton and grain industries has been constructed in Turkestan. : Although much of this regulation of exchange is not, and probably cannot be, enforced under existing circumstances, it has been effective for its purpose of providing the State with foreign valuta, of use in balancing the Budget. Indeed, early in 1924 the amount available became embarrassingly large and the National Bank found itself being compelled to issue Tcher- novetz notes in order to acquire foreign valuta-for which it had no use but which, were offered by exportcrs, because a refusal would have checked exportation. Moreover, as the trade balance under the economic plan for 1923-24 is as much as Lae million roubles, it looks'as though the State would soon’ be iti a position to free dealings in foreign exchange in so far as it can Safely do so without allowing control to pass out of its hands. Restoration of Single Currency The last development of currency reform was the Avis 0° February 14th, 1924, stopping further emissions of the old notes, and of March 10th finally. putting them out of.circula- tion as from May 10th and redeeming them at a rate depreci- ated in certain cases to one-five-thousand-millionth. This old currency had been used to maintain the value of the Tcher- novetz by buying it up when necessary, but had been ‘replaced in this function more and more by foreign valuta. The Trans- port Certificates, of which mention will be found elsewhere, were a currency of small denominations now all redeemed. The effect of this currency reform on the enterprise and energy of the National Economy was, of course, immediate, and the impetus it has given still continues. Its results: can be observed in the returns given elséwhere showing increased pro- duction and trade. The consequent improvement in revenue from taxation and conomic profits react, in turn favorably on the currency. ° Currency and Budgets > The Delegation has no reason whatever to doubt that the present condition of the currency is satisfactory. The following table gives details:— 1924 Paper Tcherv. Transport Treasury Silver Small. Central Roubles Gold R. Certifs. Bills Coins Change Caisse Bonds Millions of Tchervonetg, Roubles. Ast April .15.36 294.5 20.7 54.6 © 9.96. 8.44. 448.9 Ist June .. 9.8 286.6 20.5 124.1 16.6 15.7, 518.0 Ist Aug. 4.8 301.2 _- 162.1 34.6 20,0 570.0 Ist Oct. 352.85 _- 201.75 48.94 25.35 667.9 A handsome silver currency, which to a value of £5,000,000 was minted in England,is in general circulation, and in October a copper coinage appeared. A gold Tchervonetz is ppesiaabie, but does not appear in circulation. : The total of money in circulation rose from 264 million roubles in October, 1923, to 624 million in October, 4924. This considerable emission of currency in the course of the summer led to no corresponding increase of prices, and no fall at all in “exchange, and consequently evidently did not exceed the grow- ing demand of business. The only danger of inflation seems to lie ia a possible over-emission of bank credits for industry. The emission of currency for revenue purposes, in 1923-24 was restricted practically to that originally estimated for. The emission in 1924-25 is reduced from 180 millions in the previous year to 80 millions, and this latter sum is not, moreover, mere paper but silver and copper coinage. In fact, the useof the mint for revenue is almost restored to its legitimate form of a profit on coinage, and there seems no reason to suppose that the pro- posed increase of currency is more than business development requires. In other words, careful investigations in the Commis- sariat of Finance show no reason to fear the renewal of inflation that has been so confidently predicted abroad. The following figures show the disappearance of the fatal financing Budgets by emission of paper currency :— REVENUES, 1921-22, 1922-23) 1929-24, 1924-25, Millions of ervonetz Rybles. 1, Taxation 450 405 666 961 2, Receipits from Nati ‘ ne Property and Ent ¥ 8 ‘ prises peta 199 Bil $35. 1,080 3. Loans i j 1 85. 219... 190 4.. Paper Currency Te » 850 387 196 —, a eee _— — os | 1,000 1,388 2,281. THE OFFICIAL REPORT OF THE BRITISH TRADE UNION DELEGATION TO SOVIET RUSSIA Copyright in the United States by the International Publighers Co, All Rights Reserved. Copyright by the Trades Union-Congress General Council in Great Britain. Receipts in Kind‘and Budgets ‘ Nothing shows more clearly the rapid reconstruction that has been proceeding under the “New Economiic Policy” than the complete change in the character of recent Budgets. The Budget for 1920 represents the high water mark of War Com- munism and the elimination of money. Receipts, exclusive of currency emission, were 159,604 million Soviet roubles and expenditure 1,215,159 million Soviet roubles. . Of these receipts about one-third came from nationalized production and another third from nationalized trade. The first. Budget under the New Economic Policy was the nine months’ Budget, January to September, 1922. This repre- sents a transition from a barter to a business basis. The total receipts were 530 million index roubles, of which about 64 per cent. were receipts in kind, not money revenues. The attempt to reconcile these two bases caused, needless to say, inextricable confusion. We see below the process of transition to a money basis :—- 1921-22 1922-23, 1923-24. 1924-25. Millions of Tchervonetz Rubles. Per cent Percent * Percent Per cent Receipts in kind 550—55 158—11 72— 3 Money Revenues .. 450—45 1230-89 . 1844-97 2281100 1000 1388 2231 1916 Budget of 1922-23 The turning point in the restoration ofthe Budget to a busi- ness basis is in 1922-23. The Budget as at, first produced showed receipts of over one milliard and expenditure well over two mil- liards. The greater part of the deficit—600 millions—was to be raised by currency issue, and it was evident that a currency of the’ total real: value of 90 millions could-not Stand it. ~ A Budget Commission was, therefore, set up to take. drastic action, The Budget was dealt with on a quarterly. and even monthly basis, and great efforts were madé to raise revenues, reduce expenditures, and restrict currency issues. © ~ It will be worth while to reproduce this crucial transition Budget of 1922-23 in such a form as will give an idea of the situetion. . BUDGET FOR 1922-23, (Millions of Tchervonetz Rubles.) Receipts. Expenditure. 1. Direct’ Taxes and Customs.... 230 1. Administration, etc. 2. Indirect Taxes ssseg cree 195 2. Transport Communica- 8. Transport and tions, ete. Communications 454 3. Industry | 4. National Industry and Trade 57 4, Agriculture 5. Credit Operations 5. Electrification 28 6. Currency Issue 6. Co-operation 10 7, Treasury Ope Miscellaneow: 1388 1388 It is obvious that this is a Budget that still contains a large measure of War Communism, and is, still, more concerned with national economy than with government finance. Analysis of Budget Expenditure Comparing the principal items of the Budgets of 1922-23 and 1924 we get an idea of the nature of the burden. UKRAINIAN MASS MEETING SHOWS UP POLISH ENVOY Skrzynski Denounced by . 1,000 Workers NEW YORK CITY.—A mass de- monstration of over a thousand work- ers protesting against the arrival of Mr. Skrzynski, envoy for the reaction- ary working class oppressing Polish government, was held by the Ukra- inian workers of the United States at a mass meeting here in Marhattan Lyceum. ‘The following resolution condemn- ing the Polish government's subject- ion of the Ukrainian, and other non- Polish races was unanimously adopt- ed. (“That it be known to American workers that Poland some 10 millions of our Ukrainian brothers and countrymen to the most inhuman treatment, depriving them of all elementary rights to racial and civic freedom and to cultural advance- ment. “That Poland has done nothing to help the Ukrainian peasants and workers during the present fearful famine that came as a result of crop failure of last year, and also as a re- sult of the inefficient economic policy of Poland. “That the credits, voted by Polish diet for famine relief, were distri- buted by the Polish government agencies among the rich landowners and well-to-do peasants. “That it is the opinion and the de- sire of this meeting that no help, ma- terial or moral, should be given to the present government of Poland, which has nothing but “oppression, prisons and executions ‘for our brothers in Western Ukraine, held forcfbly in Polish occupation. “That the millions of Ukrainians, now under the rule of Poland, cannot be bound in the future by any credit or loan obligations, as may be con- tracted in this country by Mr. Skrzyn- ski in the name of his government. “That we demand justice and free- dom for those of our brothers and countrymen in Western Ukraine that are now dominated by Poland and other imperialistic States, believeing and knowing that such liberation could be accomplished only by union of Western Ukraine with the present Ukrainian Socialist Soviet Republic. “That this resolution be recorded, published and known as our protest against official activities of the said Mr. Skrzynski in United States, and against the government he is repres- enting, for the reasons as stated above. “Down with ‘the imperialistic Po- Jand! : “Long Live the struggle for’ the liberation of Western Ukraine and its union with Ukrainian Socialist Soviet Republic! Stafford, Coal Miner, Torn from His Family, by Deportation to Italy is subjecting (Continued from page 1) hope these papers will be of help to you. “Mrs. Tony Stafford, written by Daughter Sadie. “P, S.—No one has ever offered us any help of any kind since father was taken away from us.” The “papers” enclosed were re- ceipts for payment of dues in the Loyal Order of Moose since 1917, cards issued by the United Mine Workers Union during 1920 and 21 and Staffords army registration card dated 1917. \ EXPENDITURE, (Millions of Tchervonetz Rubles.) 1923-24 1922-23. Per cent Per cent 1, Transport and Communications... — 672.5—82.7 580—41.8 2. Administration 459.0—24.4 318—22.9 3. Industry ... 85.0— 4.5 123— 8.9 4. Agriculture 61,0— 3,2 64— 4.6 5. Electrification 42.0— 2.1 28— 2.0 6, Co-operation 20.0— 11 10— 0.7 7. Treasury Operatio) 100.0— 5.3 23— 1.7 8. Miscellaneous 358.0—19.0 242—17.4 The financing of industry is thus being steadily transferred from the Budget to the Banks; and this financing of industry is still an item of which the investment value is hard to estimate. The subsidy of agriculture shows that nearly half the net pro- ceeds of the rural tax are returned to the land. The increase of the amount spent on electrification is evidence of the very general effort to re-equip industry. While the support of Co-op- eration in its struggle against private enterprise and against the “scissors” crisis is also an investment. The item “Treasury op- erations” is mainly repayment of grain and sugar loans. An encouraging element in these Budgets is the increase of réceipts and the decrease of the deficit; anothr is that almost! half this increase of receipts comes from transport—showing, as this does, an economic expansion. The increase in taxation comes mainly from the rural tax; moreover, this increase has been obtained from an increase in taxable capacity without rais- ing the rates. An increase that is only beginning may be ob- served in the receipts from national property such as forests, Receipts under this head are insignificant compared to what they might be. Budget for 1923-24 The Budget for 1923-24 was produced in December, 1923, the dangers due to the delay being met by'a provisional “budget of control.” The delay was due to difficulty in finally bringing the whole national accountancy on to,a eet a basis and in first attempting an allotment of central and local budget respon- sibilities as between the Union and th Seaniiy F scetanigna: The fundamental principle of this fin and fiscal relation- ship is to secure for the whole Unio! tralized control and credit while sufficient resources and responsil development and special concerns, cult decentralization, still in course of development. ho «(To be continued in next issue) z for. their own cultural involved a most diffi- foo! TR "] Occurences of working class fighters | railroaded to prison or doherend and Organized Labor Forgot Stafford The labor movement forgot Tony Stafford and his family. During the five years Tony Stafford was in prison for the cause of labor, his wife has been obliged to battle alone. “No one has ever offered us any help of any kind since father was taken away from us.” In a previous leter to International Labor Defense, Mrs, Stafford told of Stafford’s enemies. “The E. E. White Coal Co. of Glenn White, W. Va is the Co. who is fighting him. I do not have money to help my husband as I have four small children to provide for, and I find it very hard to make ends meet. My husband did not even get to come home to see his’ children whom he has not seen for many years, I want you to fully uiderstand that it is because of a grudge against union officials that they are so bitterly against him.” gig Stafford was an official of the U. M. W. of A. He fought for the unfonization of the scab coal fields of West Virginia. He fought for a better lite for his wife and four children, His reward was frame-up, imprison ment and now deportation. Will Take Care of Family. Intrenational Labor Defense did all it could to prevent the deportr tion of Tony Stafford. The trick was turned too quickly. It could not be stopped, I. L. D. is now doing the next best thing. It is undertaking to make up in some way for the ar neglect his family has suffered, Mrs. Stafford was sent a check of fitty |dollars and more will follow. A tund is being raised and the forces of mil- itant labor are being organized under the banner of International Labor De- fense to cope with the many similar of families left destitute and helpless, | Stee