The Daily Worker Newspaper, May 20, 1927, Page 6

Page Six HOOVER AND MORGAN AID LAMENT SCARCITY OF) INVESTMENT SOURCES; UNEMPLOYMENT CERTAIN By LELAND OLDS, (Federated Press). A sharpening of class lines is the prospect in America aceording to im- portant pronouncements on American foreign investments by Thomas W. La- mont of J. P. Morgan & Co., and sec- retary of commerce Herbert Hoover Lamont cautions against rash or ex- cessive lending to Europe while Hoov- er adv against lending for unpro- ductive purposes in Latin-America. Taken together these important fig- ures in the American financial em- pire show that the two most import- ant fields for foreign investment even- tually will be providing their. own capital and perhaps looking for for- eign fields in which to invest their surplus funds. Lamont, who might be described as secretary of state to the American capitalist monarchy, pictures the rise of American financial imperialism dur- ing the world war. He says: “We must recall that up to the out- break of the war, America decades been borrowing he: Europe. Because, however, of Amer. ica’s enormous excess of exports over imports (such excess for " 1915-1920 alone being over 000,000); because of the heavy repur- ericans of their own se- curities and because of the foreign loans made in the last decade, Amer- ica’s credit position had, now been so far reversed that the gr annual in- terest and sinking fund ice pay- able to America upon foreign loans, and the dividends from industrial and other investments, now total about $1,- 000,000,000 per annum.” Lamont recalls that America furn- ished foreign countries with about $1,- 000,000,000 in new capital in 1926, bringing the total of Américan foreign investments to about $12,000,000,000. Fie reveals the plethora of American funds looking for investment when he speaks of American bankers as camp- ing on the doorsteps of European gov- ernments, municipalities and corpora- tions:offering them money. And he raises the question how long this can last. Prospect of Unemployment. “T cannot,” he says, “attempt to an- swer this question. Yet we can note some factors that are likely to affect this flow of American capital over- seas. It is clear that Europe is getting more firmly on its feet. As farming land is restored, as manufacture in- creases, the necessity for purchases in America will diminish. As European enterprize prospers and as savings in- crease European investors will more nearly be able to return to their for- mer practice of supplying capital for their own development.” Lamont holds that the American in- vestor must scan the situation with increasing cireumspection and avoid rash lending. Hoover also notes the conversion of this country from borrowing to a lending nation stre g the extension of American capitalism in Latin-Amer- ica. In the the United ‘tates has in than $1,200,- 000,000 in th i ais! believe we may take it as a certainty | that with the upbuilding of the eco- | nomic structure each American state | | will in turn at some time begin to produce that surplus which will, when {converted into capital, soon relieve it of the necessity of external borrow- jing. In time one by one of the other | American countries will become cen- for the export of capital.” ! e only loans, according to Hoover, which could permanently enslave these countries are those made for unpro- ductive purposes such as the balancin of budgets over-burdened by military expenditu Lowering of Workers’ Standards The ultimate closing of the mo: portant markets for American inv | it suggested in these statements at the surplus of capital pro- in this country will back up on| The first effect will be to make | capital cheaper in the competition for opportunities to invest. But this will be quickly controlled by a capitalist combine which will become the abso- lute power in Am The enormous surplus which Amer- | ican workers are producing for their} masters will be forced into-other chan- nels than investment, that is into pro- viding a wealthy leisure « with more luxtiries, mor ices, more di- versions, more ways of catering to the favor of the populace. Meanwhile the {lack of demand for the surplus goods |produced by American workers will | mean unemployment with consequent lowering of the living standards. |Non-Union Boston Shoe | Workers Get Low Pay, Long Hours, ‘Pep’ Talks | By J. KRANTZ (Worker Correspondent) BOSTON, May 19.—Working con- | ditions similar to those said to exist jin China are found right here at the | shoe factory of Hyde & Sons. Here | workers toil 10 and 12 hours a day. | I worked in the stiching department {of this plant and found that the | best sticher rarely makes more than | jan average of $18 or $20 a week. | Children under the legal working age are also found here. Sanitary Conditions Vile. Sanitary conditions are terrible. In the “men’s rooms” the water does| not run. Lately the boss found a new| scheme to add to the workers’ bur-| dens. | | ters DRAGON WANTS A NINETY-DAY PAROLE) —_—_—_—_—_—_—_—_=SSSEZ D. C. Stephenson (right), formerly grand dragon of the Ku Klux,Klan in Indiana, and political boss of the state, wants Governor Ed. Jackson, left, to grant him a parole from prison where he is serving a sentence for mur- Evidence at his trial showed he also raped her. charged during the Reed investigation that he could show the highest po- litical officers of the state were controlled by, the Klan, and offered to expose He finally and suddenly became silent. dering a girl. enormous graft at the state capital. Now he asks for parole. _{The photo, taken in St. Louig, M gas-electric railroad locomotives being used to replace the steam tives on a western railroad. tillate’ similar to the product used in residence oil furnaces, this new type is capable of hauling a passenger train of 200 tons weight at the sp ri regular steam train. The cost of operation is sald, to be Jess than half thot of the steam locomotive, 7 ] Stephenson hows one of a fleet of six Burning as fuel a petroleum dis- THE DAILY WORKER, NEW YORK, FRIDAY, M. Y 20, 1927 TIMES HAVE CHANGED SINCE THEN LESS SEE— TAAT WAS FETY CENTS YOU GAVE. ME WASN'T (T? -QERES TOR How the Workers of the USSR Celebrated May Day (From the “Pravda” Editorial) The whole working population of Moscow streamed into the streets. WORKING MEN AND WOMEN of the Red Capital marched iin the first ranks from the dis- tricts. They lined up in their thousands and marched to the music of international songs, through the Red Square in an endless human stream. An ocean of ban- ners. Fighting revolutionary slogans. tionary songs. Like an iron mass in close ranks around the leader—the Communist Party. The slogans of the masses, printed on scarlet linen were those of the C. P. S. U. Leninist cohorts, those of the Communist Inter- | national, for socialist construction; for peace and labor; against the war mongers; for strengthening the defence forces of the country; for the Chinese revolution, against | the imperialist hangmen. These constituted the demands of the Moscow workers on May 1. With sure, measured tread, the proletarian rulers moved along in the Ist of May processions; the streets belonged to them, as does everything in our country, which, though still not rich, is increasing its prospects of construction.” ¥ * * Telegrams from all corners of the U. S. S. R. draw a picture of unusual exaltation during the First of May demonstrations. This year the First of May brought in new workers previously untouched by our propa- ganda. This particularly applies to the workers of the national republics, especially the women of the East; the women of Uzbekistan and Turkmenstan took part in the 1st of May demonstrations, for the first time and | celebrated the occasion by removing their veils. In many places before May 1st the foundation stones had been layed for new factories and workshops, work- ers’ clubs, schools and other cultural institutions. In Kharkov (capital of the Ukraine), a whole group of Chinese in the demonstrations attracted much at- tention. The Red Front Fighters of Germany sent the follow- ing greeting to the workers of Kharkov: “Great dangers stand in the way of the working class; mankind is threatened by a new world war; with cannons directed against the Chinese revolution, the imperialists are aim- ing at the U.S. S. R. The working class of the whole world should close their fighting ranks solidly against Imperialism in defence of the Soviet Union.” In the town and environments many children’s homes, ereches, and homes for waifs and strays have been opened. 25th Anniversary. In Dniepropetrovsk (Ukraine) the May day celebra- tions coincided with the 25th anniversary of the celebra- tion of May day by the local workers; 50,000 workers took part in the demonstrations. In Odessa, an unprecedented number of workers took part in the processions—more than 80,000. The founda- Cheerful revolu- | DE PINEDO FINDS LAKE MICHIGAN TOO ROUGH | tion stone of the new Central Club of the metal workers was laid, and an institution of Jewish culture was opened. The Sormov workers (Nijni-Novgorod), celebrated the 1st of May with great solemnity, as it coincided with the 25th anniversary of the 1st of May demonstrations of the Sermov workers in 1902, about which, incidentally, Maxim Gorky wrote in his book “Mother.” In Vladivostok, foreign sailors from the boats lying in the ports, and representatives of the workers of far- Eastern countries, spoke at the meetings. Electrification. In Novorossisk (North Caucasus), the workers with great enthusiasm laid the foundation stone of the dis- trict electric power station (22,000 kilowatt), ~ In Zhitomir (Ukraine) the foundation stone was also laid of the local electric power station. In Fergan, the foundation, stone of the first large Uzbe- kistan weaving factory was laid; workers of Uzbek, who are now specially studying this work in the factories of the U. S. S. R. will be employed in this factory. In Bobruisk (White Russia). the construction of a big wood-working combine has begun. In Deznits (Briansky province) the foundation stone of a Palace of Culture has been laid. In Kanavina (Nizhni) new settlements ‘have been opened for the workers. In Vyks a huge workers’ palace has been begun. In Shushe (Azerbaidjan) a rest home has been opened. In Gandzha the foundations have been laid for an educa- tional centre. In Borjom (Georgia) a new cork factory has been opened. In Simieropol Crimea) the founda- tion stone of the new surgical hospital and Tailors’ trade union house was laid. In Tuapse, a similar ceremony took place in connection with the new petroleum works and the workers’ settlement. In Omsk (Siberia), the foundations have already been laid foy a meta! workers’ club. The May Day celebration in the national republics were of greatest interest from the every-day point of view. A particular feature of the May Day celebrations this year was the liberation campaign for the native women. In the squares of several towns amid throngs of people the women lighted fires and threw their veils into them—these are made of horse-hair. In Samarkan- da, 15,000 women took part in the demonstration all without veils. The centre of the May Day celebrations in Tashkent, was the square of the Old Town. Here before the eyes of 25,000 people the Uzbek women one by one began to throw off their veils, and then, building them up on the ground in a huge pile, they burnt them amidst loud cheers from the crowd. On the eve of the demonstra- tions more than a thousand Usbek women threw off their veils in the various clubs of the Old Town. ‘ The fascist flyer, De Pinedo, is touring the world by short flight airplane ttips, and stopping in each town long enough to whoop things up by aid of the local black-shirts {and Mussolini’s nimble minded press agents. Tho posing as a bold, bad black-shirt himself, De Pinedo always plays safe. His airplane is shown here floating off the bathing beach near Chicago. Despite the fact that the day was calm, Pinedo backed out of the trip and got his start in smoother water. ? He lost one plane in an irrigation reservoir in the Southwest recently, and had all his friends scared a few days ago for fear he had fallen in the flight from Sut dd to Montreal. A VITAL SOURCE BOOK. Commercial Handbook of the U. S. 8, R. for 1927, published by the Soviet Union Information Bureau, Washington, D. C. $.30. The second annual edition of this valuable reference book has appeared this year in considerably enlarged and improved form. It is a veritable mine of descriptive and statistical information about the Soviet Union. its covers are contained the data which will answer virtually every question which might possibly be raised concerning the political and economic organ- ization of the Soviet Republic. All of its figures are official, summer of 1926 figures of production for previous years were submitted to the heads of the government departments at Moscow! and to the officials of the various State Trusts and Syndicates for correction and revision. Figures for the economic year 1925-26 were all compiled from official sources. The entire volume is, therefore, the most accurate as well as the latest and most up-to-date body of data available in the English language upon the structure and function of the Soviet political and economic machine. * * * Among the topics discussed in the volume are, the Governmental Organ- ization, Natural Resources, Agriculture, Industry, Transportation, Electrifi- cation, Banking and Finance, Trade, Co-operatives, Trade Unions, Protection of Labor, etc., etc. The figures in all of these fields tell a stirring t: The World War, revolution, counter-revolution, blockade, intervention and famine left Russia stricken. Basic machinery worth billions of dollars was completely destroyed and the technical personnel scattered or killed. Railways were almost en- tirely demoralized, about one-fourth of the trackage and most of the rolling stock being completely destroyed. The currency was practically worthless and foreign trade completely cut off. * * * This was the situation as late as 1921. But the Bolsheviks rolled up their sleeves and, without much ado, set to work. The results have been without parallel anywhere in history and far and away above the results achieved by any of the other European belligerents. Industry has completely recovered and is now passing the pre-war standards of production; railway trackage is a third greater than in 1913; the area under cultivation ans pro- duction of most agricultural products also exceed their pre-war standards. The currency has been stabilized and kept steadily at par since 1924; the budget has been balanced and is even beginning to yield surpluses. Tvade union membership on July 1, 1926 was 9,278,000—which ought to make even the triplet brothers, Matt Woll, Cahn and the “historian,” James Oneal, sit up and take notice. The Soviet Union Information Bureau has rendered a valuable service in making data of this type available. The volume should find its way to the bookshelf of every individual in the United States who is interested in the progress which is being made in the first Workers’ State, —JACK HARDY. , A LONELY PROFESSOR. Chimes, a novel by Robert Herrick. Macmillan. $2. Robert Herrick, a young New Englander of the “pure” strain, graduated from Harvard and then went to Chicago to teach General Literature in the Baptist university resurrected with the millions of John D. Rockefeller, “A river of yellow prairie mud lay between the young man and the flat campus dotted with a half-dozen stone buildings, some still unfinished.” * * * This was 30 years ago. Today, aided by the craze for college diplomas in order to acquire sharper tools with which to compete for the routine duties of the capitalist world, and by the modern methods of drives for millions, the University of Chicago has thousands of students and instructors; it boasts of costly buildings, influential fraternal houses, and dispenses yearly innum- 2rable honorary degrees to officials of huge corporations, retired army of- Jicers, and those generous enough to contribute to the upkeep of this gigantic industry, * * * Herrick, now retired to a peaceful dude ranch at Santa Fe, New Mexico, says: “Universities can’t get money except by getting great numbers of students; so they dare not set any higher standards than rival institutions in the same neighborhood. So the American soul stays flabby; all that counts is show, and in every department you get by with superficiality. It is a lunch-counter system of education; read a novel and get a credit; then go out in the world and make a fortune. You cannot tell the grad- uates from the bathtub salesmen or the agents of barbers’ supplies you meet in the lobby of the Blackstone hotel.” * * * Chimes is an interesting novel of the academic world. It is not “keenly ironic” as its publishers insist, nor is it subtle. Herrick tells a striking story of the conflicts and compromises of the professor’s life, and the social and administrative intrigues which hamper his work and his friendships. It is a study, however, only of appearances. Herrick’s disgust results not from his discovery that the university is (and quite naturally) one of the major propaganda agencies aimed to glorify the present system and to transfer its “traditions” from one generation te the next. Intellectually a snob, fastidious, ever conscious that he is “a Har- vard man,” the author through his fictional puppet Clavercin despairs be- cause “the Yife of the spirit” is neglected at Rockefeller’s University of Chicago. * * * American universities will not tolerate the facts about economics, so- ciology, history,—property relationships. Herrick is apparently reconciled to this, What irks him is that the campus lords are also contemptuous of the austere mind, with its preoccupation with literature and the arts. There is a danger of over-simplification. Trustees do not always directly oppose the cultivation of the aesthetic life. Actually they often spend mil- lions of dollars in the construction of huge mausoleum-like libraries, dis- tribute attractive fellowships, and publish learned theses on early English manuscripts. For the student is taught not only in the class room. For every hour spent listening to even the most genuine scholar, the average college stadent spends weeks in absorbing the subtle master class propaganda around him . * * _ The vaunted “culture” of the leisure class is hollow and without mean- ing. Veblen, Nearing, Sinclair, Lewisohn—all these have proved that ita’ place in the American university is merely decorative. Thus the oir teacher of literature becomes as dangerous to the ruling class as the ¢our- ageous teacher of economics. as * The position of such men as Herrick is really pathetic. Underpaid, lonely, patronized on the one hand by successful businessmen who considez them unpractical fools necessary to provide the college credits for their idle sons, and on the other by their more “virile” colleagues who join in booster songs at Kiwanis dinners, they blame individuals and vague “materialism” for a condition which is inevitable under a profit system. —SENDER GARLIN. GOOD NATURED CROOKS. Revelry, by Samuel Hopkins Adams. Boni and Liveright. ‘$2.00. . A-story of the “Ohio Gang” presided over by the late president Harding thinly here as Willis Markham, a jovial, good-natured fellow who liked his and his poker games, and the cronies with whom he trained. This experienced crew of public plunderers lived the lives of pirate captains and pirates they were in fact. ‘ j The story opens with a poker game and ends with a suicide. Between the two events is the juiciest piece of political muckraking that has come my way in a long time. Unusual interest is added to the book thru the fact that the main characters are almost as thinly disguised as Willis Markham, They are there in all their inglory from the president to Jess Smith—] Daugherty’s go-between in the graft game. Revelry is worth the price of two good meals alright. . —T. J. O’'FUAHERTY, | | } Between | During the | | fi | Pi