The Daily Worker Newspaper, February 8, 1928, Page 2

, Page Two even now. THE DAILY WORKER, NEW YORK, WED: xy FEB. 8, 1928 LOVESTONE CONTINUES ing production in the automobile in-@brokers’ loans of more than one bil. te = e' SECOND INSTALLMENT. Tease “Comrades: In examining the eco-| server Nomic situation one prime question comes before us. It is a fact that mass|fact of the matter is this: the auto- production and efficiency coupled with | mobile market is essentia ly saturated the splendid resources of the country } ‘lhe increase in automobile production and with the intense exploitation of | today is a competitive increase. It. the workers has been the reason for|means a sharpening of the war be- the American pr y. This mass | tween General Motors—which controls production and e acy have con-}46 per cent of the retail sale: nd tinued all the time and are increasing | Ford. In this war with the r Iting cheapening of peices it is the workers who will pay. ‘he burden of the war | y between General Motors and Ford will | we had less mass production and effi-| fall on the shoulders of the workers | ciency than we have in 1928. But in| through wage cuts, through increased | 1928 the economic trend is downward speedup and even in cases, I believe, | and in 1926 it was positively upward. | we may subsequen ly have lengthen- We cannot answer this question un-|ing hours even in this highly efficient less we examine the basis of the fun- | industry. damental trends of American econo- In Building Industry. my. It may appear in certain phases| “Take the building trades: Without abstract, but we must approach it in | delving into statistics let me say that | a thorough w nd we will then un-|the saturation here is about as com- derstand why it is that with mass |plete.One of the leading authorities production and efficiency continuing |on building construction has declared to increase, the depression continues | that we have not had such a danger- to deepen. ous situation in the building business Auto Increase Competitive. |for fifteen years. “First of all, let us examine the} Credit and Speculation. situation in the automobile and build-| “The second force making for the ing industries. The automobile and | presen deep-going depression is to be building industries have been two of | found in the super-abundance of cred- the avistanding buttresses for Ameri-|it. This leads to speculation. Notice ¢an prosperity in the last five years.|the tremendous increase in brokers’ Only to the superficial ob- this an index of prosperity, s this evidence of prospe The “Why is it then that we have an economic depre In 1926 The bourgeois press boasts of increas-|loans. In 1927 we had an increase in lion dollars over 1926. The excess flow of capital into the stock market is proof of the fact productive industry—in the United States does not enable the owners o: ge portions of capital to secure suf. ent profits and therefore this cap- ital goes into the stock ma: for speculation. The stock market’ ancy is therefore not due to inc production, a trend toward ine: d| profits. It is certainly not due to in-| creased wages. It is due primarily to the superabundance of capital o: Dui the bourgeois economists vulgarize it |s & to ‘cheap money.’ ‘Cheap money’ is a/ very inaccurate and wrong way of ex-| Pp ing it. For the overwhelming | masses of the country money is never | cheap. | Gold Exports. | “Thirdly, the export of gold. Re- cent months have indicated a subsian- tial increase in the trend toward ex- | port of gold from the United States. In 1927, for the first time since 1919 .he United States was an exporter of gold. In this year American capi- talism ‘lost’ more than $150,000,000 of gold. That is, the export exceeded the import by this quantity, There have been two reasons for the Federal Reserve policy to export gold. First of all there has been a danger developing in the United States from too much gold. As the that industry— | working on the gold basis. - | ilizing-their currency to such an ex- d| dangerous as insufficient credit par- ticularly for a capitalist country The first reason for the recent trend in the ex- port of gold is the superabundance of apital at home. The second reason is that some of the European coun- ities have already succeeded in stab- tent, with the help of these very gold shipments directed by the Federal Re- serve Bank, that it now pays Ameri- can capitalism to ship gold to Europe. is speculation growing out of the aperabundance of capital is worry- ing the bourgeoisie, and the Federal Reserve Bank is now raising the re- discount rates, “Within the last few days not only Chicago but Richmond, New York and other banks have raised their discount rate. In the question of gold exports we have a fundamental contradiction which the bourgeoisie of this country cannot solve. When there is a sur- plus of gold there is a danger of in- flation. When there is insufficient gold, money rates are high, business failures follow, wage cuts are the or- der of the day and unemployment comes en masse for the workers. tracting artificially the period of prosperity. It serves the role of an oxygen-inhaler into the economic body of American capitalism. install- ment buying, say such economists as economically because it is really a Professor Seligman, is perfectly sound form of commercial loans. This is nonsense. In commercial loans there are tangible assets. “In commercial loans there are tangible assets; unusually good col- lateral to guarantee payment. In in- stallment buying the best that the bcurgeoisie can have is a mortgage on the future purchasing power of the workers, a mortgage on the fu- ture wages of, the workers. Wages are the only/ collateral which the working class can afford or can be held to as a class. In 1927 install- ment buying totailed the tremendous sum of six and a half billion dollars and the Morris Plan loans, with which no doubt many of you are well ac- quainted, was last year more than a billion dollars. This is also a form of financial, installment, over-selling. The contradictory effects here are very marked. Today installment buy- ing may still serve as a force for protracting prosperity, but tomor- 1ow, when the contradictions of capi- talist economy become deeper and stronger, this very force of install- Instalment Buying. “The fourth force is the following. Here we have the question of install- ment buying. Inscallment buying has been most highly developed in Ameri- “DEFEND DAILY WORKER” IS CALL THE DAILY WORKER WM. F. DUNNE Editors OF PARTY PLENUM Labor Urged to Resist | New Legal Attack bone: MONROD 4712 (Continued from Page One) ing spirit of the miners and their families is not dampened by the ef- forts of the union officials to pre- vent an open tha}lenge to the anti- union injunction, menace. The Monday evening sitting of the plenum completed the discussion of the report of the Political Commit- tee, after which Comrade Wm. Z. Fos- ter made his closing remarks on the question of the trade union work of the Party. This was followed by the summing up of the discussion of the Political Committee’s report and theses by Comrade Jay Lovestone, executive sec- reary. This lasted,.until 3 a. m. Tuesday, with the meeting hall still \ D. Hajual, crowded with party functionaries, pre- sent as guests of the Central Com- mittee. Full reports of the summing- up speechés “will be~ given” in™ the DAILY WORKER as soon as maa | permits. } goal-the world Colorado Organizer Speaks. Hugo. Oehler, district organizer of the Workers (Communist) Party of Colorado district, whose activities in the present struggle of the coal min- ers of that state caused him twice to be imprisoned within a few weeks, addressed the Central Committee. The Colorado strike, if it has not the same importance as the much larger strug- gle of Pennsylvania and Ohio, never- theless assumes great significance. Among the reasons for this, said Oehler, is the fact that coal is the dominant industry in that state. “The I. W. W.,” said Oehler, “took leadership in this strike because the policies of the officials of District 15 of the Miners’ Union have been noth- ing but sabotage of the cause of the mine workers. John L. Lewis’ of- ficialdom in Colorado has been con- sistently and brazenly helping the operators to reduce the wages of the| mine workers. When it comes to the| interests of the miners these officials | Daily Worker Letterhead Forged to Frame Up Workers THE LITTLE RED LIBRARY Communist Books & Pamphlets DAY WORKER. PUBLISHING Ce Publishers & Printers 1113 W. WASHINGTON BLVD CHICAGO, ILL., U. S. A. Chieago,. Il1, December 5 ,192 Secretary Hungartan Bureau Workers Party of America, Dear comrade:- You are aware of the fact that the time for the Prolet- \ arian Revolution is near, and that every dollar contri- buted by the movement towards the liberation of the Hungarian Working class b ngs us eloser Revolution.- i Therefore-The Executive Committee has unanimo- usly decided to send additional money to our comrades in Hungary, and you are instructed to forward to comrades Stuka and Vassa twenty five hundred dollars.. The money to be taken from the funds of the Hungarian Bureau. You will immediately report this matter to the secretary of the Eungarian Bureau at the Communist International and also inform the comrades in Hungary that more help will be forthcoming very soon. Yours for the world Revolution and the Soviet Vader Carmen With the above The DAILY WORKER publishes today the sixth of the forged documents prepared by. Nosowitzky and his forgery mill for the Hungarian government, in order to frame up revolutionists in Hungary. The crudeness of the letter and the impossibility of the Daily Worker Publishing Co. sending instructions and money to the Hungarian Co®.munist Party, since it is only the business and literature de- partment of the Workers (Communist) Party, makes this latest decument laughable, Walt Carmon, whose name is signed to the letter, served as circulation manager for The DAILY WORKER at this time. do not show any semblance of initia-| tion in the Communist Party of the ‘Wm. Green Heads | Soviet Union, more especially its re- Spanish-American Workers. flex in the United States. Character- “Of the 10,000 coal diggers ines Ived | izing the Trotskyist phenomenon as in the strike more than ha ye | baving its ¢ in the pessimism Spanish-American workers. They are i ne iiGonvet the There Sarl showing their splendid fighting qual-|th¢ Population of the Union of So-| ity. They are standing firm, cialist Soviet Republics, Comrade | Oe cen say thit athe Worke Wolfe said that the Central Commit- | (Communist) Party has played and pee of the American section of the | ie playing an important role in the {Communist International is absolutely Meieple, doing good work in the mat- jrm and unanimous in condemning ter of relief and carrying thru its policy of front-line work. tive. eversion to Menshevism on the art | 7 :, |bf Trotsky’s following could find “Of course the dominant force in ¥ that state is the Colorado Fuel jsp dc Lohiitad pia bia Tron Co. This corporation has done ee Sh \ all possible thru the industrial com-|_ In the United » Comrade | Wolfe declared, tl is almost 100 per of condemnatio samunist Party | - in its unanimity the opposition in arty of the Soviet e details from var- he country to show of size of Trotsky’s mission and thru the anti-picketing law to destroy all capacity of the workers to resist intensified exploi- tation. the Communist “The state forees under Gov. Adams | Union, and he are applying the entire machinery in| !0US sections operation against the working class, | the insignifi It is becoming apparent more than straggling « onfused following in ever before what the role of the state |the Americ irty’s ranks. is, The speé showed how the slan- Recalls Ludlow. ders of tf position against the “The recent massacre at the Col-| Soviet Ur) ere used by the capi- umbine mine is the follow-up of the|talist pre. ‘ all enemies of the Ludlow massacre of fourteen years| working ¢ ) aid in the prepara- ago. tions of t oerialists for war on Mass Picketing Weapon. the Soviet” ution. “For the striking workers the dom- inant weapon is mass picketing. If mass picketing can be revived into a vigorous reality, the strike can be given new life. Without it there would be an end to the hopeg of the work- ers.” \ ij Wolfe Speaks oWTrotskyism. Bertram D, Wolfe on behalf of the Political Committee yesterday gave ‘an extensive analysis of the gppent { ‘ A resolution of thd Political Com- mittee on the subject was adopted unanimously. What all agreed was the most not- able session ever held by the Cen- tral Committee of the American Com- munist Party came its end with the singing of the International. An Agit-prop an@ organization con- ference will take place this morning at 10 o'clock. Labor Sell-Out Plan’ (Continued from Page One) support of tne measure, it has been} made to appear that the whole trade union movement is in favor of it. A sysiematic barrage of letters have! been sent in to the Bar Association by groups of open shoppers and labor | haters such“as the National Associa- | {the Trotskyites unconditionally. This| tion of Manufacturers, the National | their attempt to “fight” the mine industrial Conference Board, the Na-| tional Industrial Council, ete. In ad-j dition, it was announced, the socialist party with Jacob Panken as spokes-| man has indicated approval of the bill, Only the Communisis are op- posed, it was announced by Cohen. ihis, however, is only a half truth, It is noteworthy that thus far no la- bor union has come out in favor of! the bill, while many scores have ex- pressed their bitter opposition. Labor Fakers Line Up. Besides Green, Matthew Woll, act- ing president of the National Civic Federation, is expected to testify in favor of the bill when the hearing takes place on Thursday of next week, Woll yesterday referred to the pro- posal as “a definite indication that a THREE ARRESTED LEADERS EXPECT RE-ARREST SOON Dunne, Bittelman and Miller Await Jail (Continued from Page One) daily which militant American labor possesses. Reports are growing that a new attempt is about to be made to railroad the three arrested Com- munists to five-year prison terms in Atlanta or some other federal prison. The details of the conspiracy, which | was disclosed when the three Com- | munists were led handcuffed into court by federal detectives, has been earefully prepared for months in ad- vance and it is well understood that | money is no object in crushing The | DAILY WORKER financially and in sending its editors to the peniten- tiary. The action of the federal authori- ties threatens The DAILY WORKER with extinction, tho Justice Thatcher, U. S. Circuit Court, has temporarily | released Dunne, Bittelman and Miller on $1,000 bail each. When federal detectives slipped handcuffs a ~ lon the Communist leaders yesterday the first step in shackling The DAILY WORKER had been taken. The growing militancy of the American working class, the increas- ing strength of the left wing in the trade unions, have infuriated and ter- rified the American capitalists, and they are determined to use every means at their disposal to stifle the voice of the militant labor movement. The charges of violating the postal laws which have been brought at the instigation of a number of patriotic and military societies acting on the instructions of large open shop em- ployers and the United States gov- ernment, are merely flimsy pretexts for attacking The DAILY WORKER und silencing the workers’ press by | imprisoning its staff and breaking it | financially thru the imposition of | fines too heavy to bear and litigation expenses totalling hundreds of thou- sands of dollars, The capitalists and their militarist henchmen know that the workers RP a ip Ra will fight to keep the prisons from i swallowing their leaders for five A. PF. of L. Officials years altho hundreds of thousands of | in Sham Battle | aouars must be spent in the legal |struggle. They know that the work- (Continued from Page One) ers will spend their last cent to keep in person to testify before the com-| the walls of the capitalist jails from mittee, closing around Dunne, Miller and With over 15,000 families of the | Bittelman and they believe that they striking miners evicted in Pennsyl-j|can drain the resources of the mili- vania alone, criticism of the mine|tant American labor movement in the union officials for their avoidance of | struggle. any constructive program and for| If the three arrested Communists are convicted a dangerous precedent will be established for future per- secutions of the labor and progres- sive press, and the American reac- tionaries thru their representatives in the court are making every effort to jail their victims and establish this THE WORKERS MONTHLY EARL R. BROWDER, Editor MORITZ J. LOEB, & to pur ultimate Republic of H, owners by means of sham battles at Washington, is now said to be com- ing to a head, Employers Line Up. The Pennsylvania Railroad, the B. & O. Railroad, the New York Cen- tral R. R., the “Katy” Rock Island, | precedent. Frisco and Burlington R. R. are}, At the former trial among those who are given as lead-| harges were brought against the ing the conspiracy against the unions. | game three men, it was declared in Information will be brought out, it|§nen court that the case was an at- is announced, which will prove that | fempt to crush the workers’ press and in which ae ee tor to sharpen and deepen the crises because the credit disaster then is ct merely limited to the top but goes all the way down the line to the low- est members of the bourgeoisie so- ciety even to the unskilled and semi skilled. It is our opinion that install- ment buying has already seen its best days as a force for protracting pros- perity. Decreasing Exports. “Fifth: Basie changes in the trend of the foreign trade of this country ure noticeable. The maintenance of exports is essential for American pros- perity. The export industry have been developed primarily during the war «nd in the immediate post-war pe- riod, not only thru the fact that American imperialism was able to seize markets, but also to the fact that huge eredit extensions were made to them, If the export industries should suffer it would mean, there- fore, not only that these industries alone suffer, but that the whole credit system would be undermined. When the whole credit system of the country is undermined the whole cir- culation system of bourgeois society is poisoned. “Recent months like November and December indicate signs of decreas- ing exports to Europe. We may and il} have months of increasing ex- Radio Speaker A Strikebreaker (Continued from Page One) the difference in opinion on the dis- tribution of time, it was, therefore, arranged, that since both sides could not be presented at the same time, that both sides nevertheless be pre- sented, and Mr, O’Brien was accorded the privilege of speaking first, which he did on Saturday evening. Mr. Knowles is to present the anti-imper- ialistic arguments on Thursday eve- ning, February 9th, at 9:15.” O’Brien a Strikebreaker. The letter was received by The DAILY WORKER yesterday. Altho the letter promises that Station WEVD will broadcast tomorrow night a belated reply to O’Brien’s defense of the Nicaraguan invasion, it cites only the military phase of the record of the man to whom the Debs Mem- orial Radio Fund offered the use of its station. O’Brien devoted much effort to the open-shop attempt to break the Pas- saic textile strike in 1926-27. He was paid $1,000 for these efforts, which consisted in part of assistance in the organization of raids on the strikers’ headquarters. He aided also in an at- tempt to frame Albert Weisbord, the strike organizer. In connection with this attempt he tried to persuade an associate to commit perjury by testi- fying that the strike was being sup- ported through the out-worn buga- boo, “Moscow gold.” He also urged the arrest of Robert W. Dunne, Esther Lowell and Robert Wolf when they spoke at Passaic, The officers of the board of trus- tees of the fund are Norman Thomas, chairman; Morris Hillquit, treasurer, and Gerber, secretary. Thomas is a member of the editorial staff of the New Leader, official socialist party organ and was that party’s candidate for governor in 1926. Hillquit is the leading member of the national ex- ecutive committee of the socialist party. Gerber is secretary of the socialist party of. New York. FOR YOUR HEALTH |) Strictly Pure FLORIDA | Guaranteed by the BEE-FARMER. Special Prices During Run of This “Ad” 5 Lbs. $1.25 6 Lbs. $1.40 10% Goes to “Daily Worker” ORDER BY MAIL. JACK FEURER 3656 Park Ave., Bronx New York City. +--------- Winter Vacation better understanding for labor is on the way.” This announcement fol- lows immediately on a previous state- ment that Woll had become the spokesman for a committee of 53 of the largest trusts, banks and anti-labor associations which is to take steps for the working out of a plan of “rationalization” in industry as a re- sult of which several hundreds of thousands of workers, especially miners, will be eliminated from in- dustry in the interests of “efficiency.” mt the influence of the railroads and mine owners has extended so far as to exert preseure by the General Mo- tors and other concerns on fitms which have attempted to do business with mine owners which are dealing with the unions, ALIEN PROPERTY FRAUDS, WASHINGTON, Feb. 7.—An alien property bill introduced by the Sen- ate Finance Committee yesterday provides for return of 80 per cent of the alien property seized during the World War, and the retention of the other 20 per cent pending: the settle- ment. of American claims against Germany. The bill has already passed the House. Gross fraud in the Alien Property Custodian’s Depart- ment has been shown, hat the charges were an excuse for stroying the power of militant American labor. “That the charge is purely fictitious, is obvious in view of the fact that the original charges were made by the Military Order of the World War and the Keymen of America,” it was declared at that time. Dunne, Bittelman and Bert Miller, are free today but are awaiting re- arrest at any moment. DETROIT, Feb. 7.—The Detroit clous Young Workers (Communist) League Liebknecht-Luxemberg memorial meeting will be held Sunday, Feb. 19, at 2:30 p. m., at the New Workers’ Hall, 1343 E. Ferry Avenue. Camp Nitgedaiget BEACON, N. Y. Social Entertainments.—Skating Rink, Steam Heated Spacious Rooms.—Deli- ECONOMIC ANALYSIS AT WORKERS PARTY PLENUM bankers say, too much credit is as?ca as a means of stimulating and pro-@ment buying becomes a powerful fac-ports to Europe but that is not basic. What is basic is the following: The manufactured goods, instead of food and raw material, are increasing their proportion of American exports. What does this mean? This means that we are laying the basis for a decrease in our exports to the European capi- talist powers, which in themselves are highly developed in manufacturing. “This means that American capi- talism, American imperialism must inerease its exports to the Orient, primarily, because there they have a greater need of manufactured goods. follows from this that American imperialism comes into sharper clash with European capitalist powers not only in the European market but especially over the market in the Orient. Both mean increasing com- petition for American imperialism.” ; In yesterday’s installment of Comrade Lovestone’s report in The DAILY WORKER, he was cuoted as saying that unemploy- ment in New York State was less in December, 1927 than in Decem- her, 1921. This was an error. He said, not that unemployment, but that employment ir New York State was less in December, 1927, than in December, 1921. The report will be continued in tomorrow’s issue. COLORADO MINERS REPUDIATE MOVE (Continued from Page One) astrous tactic has become clear to the rank and file among the miners. Sentiment against the state police has become strong following the ver- dict of the coroners’ jury which placed the blame squarely on their shoulders, for the Walsenburg_ kill- ings of January 12, and it is indicated tha: they will file murder charges against themselves to eliminate the chances for a court inquiry. Foilow- ing the killing of two miners after a parade on January 12, a Walsenburg jury declared the State Policy guilty of the unprovoked murder, stating that they showed no regard for hu- man life. Despite the jury’s action, no arrests of state police have been made, Announcing! No.4 of the WORKERS LIBRARY! A New Pamphlet by Jay Lovestone | Analyzing the political | and economic back- | | ground for the 1928 | | Presidential election. ELECTION | WORKERS JAY LOVESTONE | WORKERS LIBRARY PUBLISHERS 39 E. 125 St. New York = Food,