The Daily Worker Newspaper, January 2, 1926, Page 6

THE DAILY WORKER % ~ Published by the DAILY WORKER PUBLISHING CO. 1113 W. Washington Bivd , Chicago, Il, Phone Monroe 4712 SUBSCRIPTION RATES By mail (in Chicago only): $8.00 per year $2.50 three months $4.50 six months By mail (outside of Chicago): $3.50 six months $6.00 per vear $2.00 three months Address all mail and make out checks to THE DAILY WORKER, 1113 W. Washington Bivd., Chicago, Illinois —————- J. LOUIS ENGDAHL WILLIAM F, DUNNE MORITZ J. LOEB. Editors .... Business Manager Entered as second-class mail September 21, 1923, at the post-office at Chi- under the act of March 8, 1879. , cago, IL, Advertising rates on application, = —I (Continued from page 1) tremely optimistic for the most part, still opinions are not lacking among !the bourgeoisie to the effect that too great a strain is being placed on cred- it, and that the economic develop- ment is unsound. These voices were |raised at the last bankers’ conference. |Among the great~ economic weeklies the Annalist is especially pessimis- PSR RIAN ST SSR AL ACA Vrs A et MAE Imports Se 290 = The United States of America - Exports THE DAILY WORKER These figures shaw oe improvement in heavy industry, but a worsening in the textile and, motor car indus- tries. This last is alleged to be only a transitory symptom; the large fae- tories are bringing out new types, and the public are waiting for these. Foreign ,Tradeg The following are the figures for the trade in goods during the last few months: Import Export surplus surplus Million dollars Sapreme War Council in Turkey All indications point toward ‘preparations for war between Turkey and England over the question of the Irak boundary dispute. The decision of the league of nations granting Mosul to the mandate | territory of Irak held by England ‘has forced the Turkish goyern- business is based to too great an ex- tent upon the instalment payment ment of Mustapha Kemal to prepare to resist the enforcement of the league decision. Mr. J. A. Spender, will attend. Not even the most persistent supporters of the so-called “spirit | can fail to perceive decisive preparations for war. tapha Kemal and his Angora government finds itself in a position | where it is forced to act against the-belligerent threats of Great The inhabitants of northern Khurdistan rose in revolt last spring against what they considered the weaknesses of Kemal in dealing with the European imperialists’ and are» still -to,be submits to defeat before the: subter- renean diplomacy of Austen Chamberlain of England and M. Briand + of France it means weakeiing of the Kemal government, loss of prestige and possible revolution at home. A new revolution in Turkey will bring to power. elements that will turn farther toward the Soviet Union than Kemal has thus far gone. Pressure from the discontented population has already forceds poses a heavy burden upon the Amer- Mustapha Kemal into a treaty with the Bolshevik government of of Locarno” Britain. reckoned with. If Turkey Russia. Britain looks with grave apprehension upon this treaty and a powerful section of the British press openly demands substantial concessions to Turkey to avoid throwing that nation into the arms of the Soviet Union. But even tho Kemal does accept a compromise promised by Britain he will be placed in the position before his own people of 3 having bartered Mosul for concessions that Britain could well. afford % formerly editor.of the Westminster Gazette who is in Turkey, writes to his paper that/the supreme war. council has been called in session by Kemal and that all army commanders | “in exchange for the disputed territory. Regardless of the outcome of the strife over Mosul one fact stands forth clearly and that is a diplomatic triumph of the first The magnitude for the proletarian statesmen of the Soviet Union. treaty with Turkey proves to the working masses of that nation that at a time when the league of imperialist nations is endeavoring Mus-! system, that commercial credit-is speculatively overstrained, the com- mercial credits of the leading federal reserve banks having increased by 300 million dollars ‘during the last jfew years, that there is a great deal | of, unsound land speculation, etc. and |that a factor of considerable eco- nomic influence is the fact that the jincome of the farmers is somewhat less this year than last, owing to the poor crops and the low prices for grain. Unfoftunately, there are no’ means of ascertaining whether these symp- toms are only a temporary nature, or signs of an approaching crisis; it is symptomatic of the decay of capital- ism that the see-saw of economic rise and fall which is a “normal” feature of capitalism, is becoming irregular | and incalculable. This annual spring depression im- ican working class. When we recol- lect that the index figures showing the degree of employment—issued by the federal reserve. board and calcu- lated on the same basis—were given at 118 for October, 1923, 109; for Oc- tober, 1924, but only 93 for July, 1925, we are bound to admit that the number of unemployed must be very great indeed. Even when we take in- to accoumt the reduction in the num- ber of immigrants, still the number of unémployment must be estimated at between two and three millions.** The following figures show the out- put of the most important branches of industry: | April .. 846 398 52 May . 328 371 ‘a 43s" | June . 825 328 2.0 one July 326 338 12 August .. 340 872 32 September 349 422 3 7 + The ‘fact that ‘there was" an import tic’, and expresses the opinion that] surplus in June is of no special signi- ficance. This has oggured repeatedly in the early summer,months of late years, at the season, when the export of the agricultural products of the previous year ceaseg..,The figures for the first eight months.are as follows*: 1922 « 1925 Million dollars Export 2697 3083 Import 23H, 2730 Ex. surplus 314% 353 The big export surplus in 1924— almost one milliard dollars was mainly, accounted for by the four autumn months, which yielded over 600 million dollars surplus. The Economic-Political Problem. The main line of ,development in American economics is plain: The United States are evolving from an jagrarian exporting country to an in- dustrial or capital exporting country. At the present period, when there is such. a shortage of capital in Europe, China, and in the South American countries which are now just begin- ning to develop, the connection bt-| < tween capital export and industrial goods export is even more ‘important than before the war, The world mar- ket for industrial products is so limit- ed that every country has to compete in the effort to supply industrial goods on credit, or to accept partici- pation in the undértaking in lieu of cash, At the present time America is more capable than any other in-| dustrial export country of competing on these lines. Hence her supremacy in the world markets. «In August, for instance, America exported more ma- ehinery than at any time during the last four years, andthe export of agri- cultural machines was 42 per cent ——fereeity of the imperialist brigands find in the Bolshevik govern- relief, program of Coolidge. The latest suggestion is for the creation | " of an export commission to supervise the disposal of the. surplus pro- | further to dismember what was once the territory of Turkey its pow- erful revolutionary neighbor extends the hand of friendly support. - All nations and all peoples on earth who are threatened by the ment their only friend. Tho the rulers of nations may at times for- get that they owe their very existénce to the friendship of the Soviet Union the working class of the oppressed countries will, in ever greater numbers, come to learn that the one formidable enemy of imperialism is the revolution. Coolidge’s Fake Farm Relief The republican press continually harps on the developing farm ducts of the farmers. This is on a par with-the other fake nostrums | of the administration. Not ten thousand export corporations work- ing in unison and composed of the best brains of the republican party | could affect the world market sufficiently to keep prices up at a time when the grain crops of the whole world were abundant. The creation of an export corporation would create new jobs for the faithful republican party henchmen, but would not put one more dollar in the pockets of the farmers. The government of the United States that at one stroke can cancel billions of dollars in loans to the Italian government in order that Morgan may safely invest his surplus capital has not one cent for real relief of the farmers. Instead of creating a brigade of new jobholders in order to fool the farmers into believing that the repub- Jican party is trying to do something for them, why does not. the 5 government evince as much interest in the welfare of its own citizens as it does in the Italian govermment-of the black-shirt despot and d x brigand, Mussolini? Such a question cannot be answered by the United States gov- ernment. Instead of relieving the farmers as it relieves Italy the government tries to force the farmers to help pay in taxes the amount _ Mussolini’ 's government onght to pay if it-expects to maintain itself “among the capitalist nations. ‘But then Italy has heavy industries that can be chained to the “¢hariot wheels of finance capital, while’ the farmers of this country control no such fields of investment. “That is why Italy gets the:debt ne cent for reconstruction of the shattered farmers who hel in Morgan’s war in order that he*might have the power to col olitics of Coolidge. 4 hares Mourns for Munsey. i. W. Edwards, agent of George L. Berry, president of the Inter- national Printing Pressmen’s and Assistants’ Union, sent a letter to|{, so great in its extent, that even this| the New York Sun, one of the Munsey properties, on behalf of the | comparatively slight decrease, in un- major expressing sympathy with “the nearest of his (Frank L. Mun-|employment represents in absolute ’s) bereaved relatives.’ web pressmen in the printing trades, should mourf the death of the labor hater, Munsey. Berry's lackey speaks of the “great loss” to the printing and land, 1 who, as president of the International h- jou, fought the Munsey outfit, there was no, such; se fortheoming from Berry.and his corrupt crew of union cancellation and why the Morgan banks that hold farm mortgages | Union has, to a large extent, other drive the farmers from the soil thrn+foreclosure of the mortgages | causes and is of a different character nstead of cancelling their debts an@ enabling them to recover, Mil-| from unemployment in’ the capitalist ions in cancellation of debts for reeonstruction in Italy, but not countries. lect | ment in the Soviet Union must have * cancel at will the debts from European countries. Such is the | quite a different cause as, in spite of It ix eminently fit that Berry, the seab herder and strikebreaker, | goyie, Union lies chiefly in the dis- ‘ho aided Munsey and his fellow publishers in ‘New York crush the) proportion between the agricultural \ “aga industry that has been sustained thru the death of Mun-| duction whichemploys 7,000,000 work- _ It is noieworthy that on the oceasion of the death of John | ers, a o2 ast ‘ s - qd ge: oP if EYE i August, 1924 . 7. 1887 2553 255 357 January, 1925 TA 3370 4199 213 590 March, 1925 Ta 3564 4199 332 582 June, 1925 18 2673 3207 365 493 July, 1925 . be 2664 38087 yas 358 484 August, 1925 Strike 2704 8424i70 222 449 tons st End of month August, 1924 . 4798 ae 161 January, 1925 . 5037 oh 251 March, 1925 4864 ml ©) 245 Juna, 1926 . 3710 ES gR9 July, 1925 .: 3539 ite August, 1926 .... . 3513 a aoe September, 1925 . . 8717 200 (According to Financial Chronicle. No, 3136, p, 520.) —— higher than the highest record hither- | to attained.* The change of the exports of the United States from raw materials to finished goods, and the reverse change in imports are shown by the follow- ing figures, referring to the first eight “See for instance the-issue of Oct. 2nd, 1925. **The “farming population” of the United States decreased by 182,000 between January 1, 1924 and January 1, 1925. 2,075,000 workers left the farms to find work in the towns,| months of the present and last year.** whilst only 1,396,000 left the towns) Percentage of the total foreign for the country, the towns thus gain-| trade: 7 ing 679,000. In actual fact the coun- try loses less than this, the netural increase of population compensating somewhat. The farm workers coming ‘into the towns serve, as a rule, to de- press the labor market. he *Winancial Chronicle, October 3, 1925, p. 1627, y *) The Annalist,..? Oct. 1925. **) Financial Chronicle. 3 October 1925. p. 1627. pL ADpril 1, 1926 .....uQpiessse-. 950,484 On October pee , the number of trade union me! was far more than 7,000,000 (exact statistics are not yet available). Actual numberof all unemployed (from both registered and unregister- ed), according to the estimates of the Institute for PI Economics: April 1, 1924 on August 1, 1925 265,000 (There are at present 900,000 regis- tered unemployed), nemployment Declines. We thus see that, from April 1, 1924 to April 1, 1925, the number of trade unton members increased by 1,067,802, which implies a somewhat greater in- crease in those employed in produc- tion, Unemployment however only decreased by 335,000 during almost the same period. The prospective propor- tions for the current economic year 125-26, are similar, In this economic year, a total of about a million new workers will be employed in all branches of work, (industry, agricul- MOSCOW, U. 8S. S. R.—(By Impre- cor)—Unemployment in the Soviet Whereas in the capitalist countries, unemployment is a symp- tom of the economic crisis, unemploy- the rapidly increasing industrial pro- duction since 1923, it shows a tend- ency either to increase also (economic year 1928-24) or to decrease only slightly in comparison to the economic boom (1924-25 and presumably 1925- 26). The economic boom, it is true, numbers, hundreds of thousands, The source of unemployment in the and industrial population, The peas- ant population, numbering hundreds of millions, (22,000,000 farms), sends| ture, mining, transport, commerce, its surplus population to urban pro-| civil service, etc.),,while it is caleu- lated that unem mt will only de- crease by 400,000 to 600,000. The an- A few cursory for compari-| ual immigration the villages, is son: calculated at, figures, 600,000. Membership of th® Trade Unions: Tt is of the of April 1, 1924 are October 1, 194d enons6 420,470 < ed spring Exports 1924 Industrial finished goods 40.7 Raw materials... 0 25.5 The tendency to change in the na- ture of the goods is much more no- ticeable in the case of the imports than in the exports. The high tariffs put a great restriction on the im- ports. Another point not without interest is the geographical distr#bution of the foreign trade of the United States in the first seven months of the current Ld ‘Imports 1924 1925 20.3 18.6 33.6 39.8 increases automatically with the ac- cumulating interest, The sum of 5,146 millions is already funded (without the French debt). Given an interest of 8% per cent, this would megn a sum of 420 million dollars annually. To this must be added the interest on the capital’ invested abroad (in round figures 9.5 milliards), making @ year. Here statistics are already ob-|round sum of at least 100 million tainable*. ett Imports. Exports Mitiien dollars 1924 1926 1924 1925. Burope wy 602 638. 1183 1427 North America 636 596" 580 650 South America 272 303 171 226 Asia... 535 691 302 vag 96 Africa 7 40 8 Altho exports from Europe to the United States have increased by ap- proximately 15 per cent, neverthe- less, Hurope purchased twice as much from the United States as it has been able to sell there. It is only Asia whose export balance to the United States is favorable, this being mainly due to two articles: India-rubber and silk. Among the separate countries, England and Germany are especially conspicuous with their huge adverse export trade balance with America: During the first seven months of the year England purchased goods to. the value of 536 million dollars from America, but sold goods to the value of 322 million; Germany’s purchases from and sales to America amounted to 252 millions and 83 millions re- spectively. In connection with the necessity of an increased export of industrial goods, and with the settlement of the interallied debts, there has been @ heated discussion in America of late as to the advisability or non-advisa- bility of the present.rigid high tariff policy pursued by the United States. Two distinct trends of opinion are to be observed One regards the trans- fer problem as the central question, and demands that the tariff wall pre- venting the influx of foreign goods should be lowered, thus rendering possible the transfer of the payments of the interallied debts. The other calls for an elastic tariff policy, in order that the export of special indus- trial goods, and the import of others, may be promoted. The present political tariff dispute relates chiefly to the alteration of the present rigid system. Up to now the United States has concluded trade agreements, only on the most favored country basis, and have not entered into tariff conventions, that is, they il a dollars, yearly; further, an unknown figure for. the profits on participation of capital, and the export surplus of the tradepbalance, amounting approxi, mately jtg-ohe milliard dollars annual’ ly.. All this brings the total up to approximately 2.5 milliard dollars yearly; ‘counter balanced solely -by. the. money sént“home by the immigrants (decreasitig’’steadily in amount),and the expenditure of the American tour- ists in’ Burope. The “fears: entertained with refer: ence t6" the transfer are closelycbound up with ‘the’fear of a renewed inflow of gold, likely to lead to an inflation- ist price movement. The endeavors made to get rid of the accumulated gold have met with little success. Germany only took over about 100 million dollars to supplement the gold reserve of the reichsbank. The tend- ency towards an influx of gold re- mains as before. The Investment of Capital Abroad. The solution of these—in part only apparent-—difficulties ‘is obviously to be found.in.a continued rapid in- crease ofthe American capital in- vested.abroad. The trade balance surplus will be devoted to further in- vestments..abroad. This process can be contintied for a very long time, as ‘was the case with England before the war, until such time as a fresh imperialist war consumes the capital thus accumulated, or until such time as the ...proletarian.. revolution com- pletely settles the whole question by the expropriation of the bourgeoisie. Ameriga,,by virtue of the power of her capital, at present actually rules the world’ s,economics and the world’s politics. All disagreeable problems are smoothed over by means of money, America; is to be freed from her de- pendenge,. on- English raw rubber by have not taken any active steps to-}the projegted yast cautchouc. planta- words inducing the other party to the tariff agreement to reduce the duty on certain goods, as they might have done by means of a counter-of- fer to reduce duties on certain cate- gories of goods contained in the American tariffs. thus possess no means of reducing the duties on goods of special interest tothem. Thus a group has formed in favor of Europeanizing the entire tar- iff policy of the United States; this group naturally consists for the great- er part of export industrialists. The other group is mainly held to- gether by a common fear regarding transfer possibilities, and is formed chiefly by the banks who desire that their interest may flow back to them in the form of goods. The anxiety as to transfer difficul- ties increases with the funding of the present inter-allied debts. At the time the amount of the inter-allied debts, according to the White Book issued by the American treasury****, is 12,088 million dollars. This sum *) Financial Chronicle, tember 1925, **) Borsen-Courier, 12 Sept. 1925. 12 Sept. letarian circles, but partly from the surplus agricultural population and partly from the classes employed in the specially bourgeois occupations which have become superfluous in con- sequence of the revolution. Only the smaller part consists of industrial workers (mainly unskilled) and offici- als. Thus, in another country, a large number of the unemployed would not be included at all in the statistics of unemployment, unemployed must not be overrated, | Lack of Skilled Workers, ‘There are hardly any skilled work- ers among the unemployed. In. many branches of industry there is indeed a lack of skilled workers, In spite of all, the question of unem- ployment in the Soviet Union ig of course an important problem wihch urgently demands solution, all the more because the proletarian state, in contrast to capitalism, has really not the slightest interest in the existence of an industrial reserve which forces down wages. The Soviet Union there- fore devotes more attention to combat- ing unemployment than any other country in the world. Bs Alds mployed. Above all, the t government is. fully aware that » chief evil of un- The United States The significance of the comparatively large number of} tions. imothe Philippines and in Li- beria—the /‘free”-Negro state on the west coast, at Africa, which in, actual fact is-emtinely under the influence of America. ,.Newspaper reports state that an... American motor car tire manufacturer has obtained a large concession here This factory is go- ing. to inyest, 100 million dollars in caoutchaue. tions, and its pro- duction, {sto cover half the. present requirements of the United , States. The enormous accumulation of capi- tal is sweeping away exery obstacle. Evidence as to America’s influence upon the world politics is to be seen in the fact that, one after another the ministers of finance and the direc- tors of the central banks are visiting America, in order to negotiate on in- ter-allied debts and fresh loans; fur- ther evidence 1s furnished by the state and municipal loans, Japanese electrical works, radio plant in China, railway building in Persia, potash trust in Germany. One and all seek capital-in America, seek the economic and political good will of the small clique of American capitalist mag- nates upon whose word their econo- mic “éxistence depends. The Ameri- can’ ee ne ent nost {iiportant means for Mitre he growth of unemployment. Apart trom this general task, various other measures have been and are’ being taken to reduce as far as possible the immigration of unemployed -agricul- tural workers into the towns; Thus for instance, unemployed agricultural laborers.are trained to manage trac- tors (10,000 laborers in the current economic year), e construction of new roads will give employment to about 60,000 agricultural workers this year (instead of 40,000 last year). The settlement of unemployed on unculti- vated land is also being carried out with great energy. In the current year, 3,000,000 rubles have been ap* In the towns, unemployment insur- ance is at present the extensive but no longer the only means of allevi- ating unemployment. The sums ap priated for the support of the un- ee rey nen surance amount in the current e this | also in consequence of the of capitalism —_————__——_—---—r _ By EUGEN VARGA tc ee dent, Coolidge, is nothing more nor less than the executive organ of this clique. ‘The sum total of the loans ‘granted by private persons to foreign coun tries amounted* on June 1, 1926, without the intel-allied debts, to: To States Million dollars, and with State To private Total guarantee undertakings 2545 Canada sss 1420 South America 3225 4140 Burope 450 2116 Asia & Australia 422 280 122 4udt 5375 9622 It will be.seen from this that the United States continue to invest large amounts of capital in the continent ‘of America Two thirds of the cap! tal privately invested is placed there, According to the same source, the capital freshly invested in foreign joans in the first six months of the year amounted to 552 million dollars, of which less than one-half went to Europe: 237 millions, whilst Amert- ca (Canada and South America) re- ceived 283 millions. <The power of American capitalism, :as genuine im- perialism, is extending further and further. Capital Investments Abroad and the Question of Emigration. The latest data on immigration, ex- tending from July, 1924, till July, 1925, show that 294,000 workers have immigrated into the country during this period, and 93,000 have left, it, resulting in a net gain of approxi- mately 200,000, as compared with 630,- 000 last year. Quite a number of states did not even send out the quota of emigrants allowed them, as fol lows: Czecho-Slovakia 12 percent Germany ...... 1 percent Great Britain 2% percent Italy 0 percent In the case of some countries the immigration from America has even been greater than the emigration to America, for instance: Im- Re- Net Re- migrants emigrants emigrants Greece 826 6.574 5.748 Italy 27.151 20,948 Spain 3.982 8.707 Jugoslavia 2.464 1,740 Portugal ..... 619 3.600 2981 - The Asiatic countries, China, Japan, India, as well as Australia, New Zea- land, etc., also show greater reemigra- tion than emigration. This state of affairs is obviously due to the fact that a larger section of the emigrants from these countries do not settle permanently in America, but return eventually to their native coun- tries—generally after they have» seraped together enough money to ~ buy a piece of land at home, This _ process takes place independently of the number of immigrants permitted from the country concerned. The laws restricting immigration thus attain their object: they diminish the num- ber of those working class elements in the United States undesirable to the state, that is, politically unreliable for capitalism, That America’s labor market’ is none the less well supplied is proved by the fact that there have been no strikes worthy of the name -of date. The great strike of the anthracite coal miners, now going on for two months, is an exception. These miners are the ‘sole section of the American heavy industrial workers well organized in trade unions at the present time, and able to venture on a prolonged strug- gle. Whether they will be successful or not is still uncertain, Apart from this, American capitalism is well prov- ided with worker®, and tho individual groups of capitalism may occasionally speak in favor of a relaxation of the immigration restrictions, the class interests @f the whole capitalist class continue to outweigh the wishes on fn- dividuals in this question, *) Statements taken from Bul letin Economique, Correspondance de }fer shelter and work not 0 YEtranger No, 546. By L.F. Ving H productive care of the unemp! More than 100,000 unemployed are. ing employed in public work in towns for six months. The productive co-operative societies of the ui ed are in the position this year, to pro- vide the possibility of earning for 120,000 unemployed (by 50 per cent more than last year). A consi jet will result trom the re-edi of unskilled workers who are trained in skilled work and will more easily find employment, \ Build Soviet Economy. : ‘On the basis of this and other meas — ures which, for want of space, are not mentioned here, we can calculate, in view of the uninterrupted, progressive economic boom, that will disappear or almost entirely appear within two years. We yet reckon out to what degree, a of workers (which, as already pe tioned, is even now felt dn branches) may develop. Should, wh that time arrives, the Soviet U: still be the only proletarian stat the world, it will, in two or ¢ years, certainly be in a litical but also to many econ gees who have fled from ca pregsion, thanks to the ment of proletarian ¢ 4 a, % »