The Daily Worker Newspaper, February 22, 1928, Page 6

wclstscoveseoh =, Page Six ——=—_—_—. THE DAILY WORKER, NEW YORK, WEDN@SDAY, FEB. 22, 1928 THE DAILY WORKER Published by the NATIONAL DAILY WORKER PUBLISHING ASS'N, Inc. Daily, Except Sunday 83 Ficst Street, New York, N. Y. Cable Address: SUBSCRIPTION RATES By Mail (in New York only): By Mail (outside of New York): $8.00 per year $4.50 six months $6.00 per year $3.50 six months $2.50 three months. $2.00 three months. Addres: and mail out checks to THE DAILY WORKER, 33 First: Street, N York, N. Y. é 31 Rditor......... ‘ ‘ROBERT MINOR Assistant Editor. . .. WM, F. DUNNE Entered as second-class mail at the post-office at New York, N. ¥., under the act of March 3, 187 Jim Reed’s Own Oil Angel Senator James A. Reed of PE vigseaet broke out Monday as the champion who will lead the democratic hosts in the campaign for freedom, for liberty of conscience, for equal taxation, for honesty in government, against pacifism and internationalism, against the “malefactors,” against centralization in government,—and, above all, against the terrible oil corruption which pollutes Washington. And the man chosen to introduce Jim Reed at the opening meeting of the campaign—is the Honorable Joseph W. Bailey, of Texas! Lives there a man who does not remember Joe Bailey? Joe Bailey’s public career came to an end when it was dis- Phone, Orchard 1680 “Daiwork” closed that while a Texas senator at Washington he took money } from the oil corporations that were buying up the Washington government some twenty years ago. Joe Bailey, than whose name none in the United States more completely reeks with the filth of oil corruption—is the sponsor who introduces the demo- eratic champion in his drive to root oil corruption out of Wash- ington! The democratic politicians, Jim Reed, McAdoo, Cordell Hull included, are not one inch further away from corruption than the republicans. If they seem a little less immediately soaked in the particular flow of oil of the past eight years, it is merely because they did not control the perquisites of office to enable them to share in the benefits of the $100,000,000 oil loot of that ee to the extent that Harding, Coolidge & Co. did. Just as the democratic Senator Walsh of Montana is now serving John D. Rockefeller, Jr., as a protector from his own cor- poration’s crime in oil bribery, and also protecting Coolidge, so is Jim Reed deliberately obscuring the big, outstanding fact that the United States has during the past eight years been ruled by two presidents, both of whom were bought-up and petty servants ' of oil magnates. i In his opening speech Reed lied to protect Coolidge. j He accused Coolidge of being “inactive” in the oil corruption cases, whereas none better than Reed knows that Coolidge was the most active of all in feverishly working to cover up the oil corruption by which he secured office. Not to abolish the direct bribery of the heads of the national government, but to become the heads of the same national gov- ernment, with all its perquisites of the Fall-Bailey sort, is the purpose of the democratic politicians. Joe Bailey, oil-company corruptionist, is the most fittiae sponsor for Jim Reed, the “reformer.” | “Lewis Must Go!’ The rank and file miners of the anthracite region, in their conference at Wilkes Barre, have taken effective steps to combat | i | 1 the attempts of the employers and their agents, i -t yee beer phenomenal prosperity the Fedeval to wreck the United Mine Workers of America. murderous terror on the part of the Lewis-Cappelini machine against the rank and file must be answered by a mass movement dedicated to the task of saving the union. The “Save the Union” conference in the anthracite region is one of a number recently held in various coal mining districts of the country. In order effectively to fulfill the demand of the rank and file of the miners’ union that “Lewis Must Go” such con- ferences to mobilize the membership against the attempt to de- stroy their organization must be held in every district. The mass movement of the rank and file of the miners against j the cowardly, treacherous, murderous attacks of the Lewis- Cap- | pelini outfit and their gun-men must be organized into an invin- | eible force whose power will be felt in every coal mine in the : United States, organized or unorganized. A force that will drive i out of the offices of the union the agents of the coal barons who are now waging a campaign of organized terror and murder against the rank and file leaders in the anthracite. Most sig- | nificant for the whole union is the “Save the Union’ conference | { in the anthracite, because it is precisely in those districts that | the Lewis machine has formerly had the base of its power. In their fight against the traitors at the head of their union the rank and file of the miners will have the unstinted support of all advanced sections of the labor movement. Aid Miners, Join V Cites Party! The coal operators in various plies parts of the country are com- bining their properties and unifying their forces, This is another move against the coal miners and the workers of the country generally. One of such combinations is now being carried out in West Virginia. 75 coal companies, with an annual producing capacity of 25,000,000 tons of coal and a capitalization of $200,000,000, are ready to merge into one combination. This is the kind of enemy that the miners, particularly the unorganized in West Virginia, will have to meet and fight against. The way to prepare for it is to follow the program of the Workers (Communist) Party and the left wing in the trade unions. Every militant worker mast therefore join the Workers Party and thereby help strengthen the workers against the employers. Therefore—the Lenin-Ruthenberg Drive to bring into the Workers Party new members from the working ctass. Therefore-—_the Lenin-Ruthenberg Drive to build the circula- tion of The DAILY WORKER, the official daily organ of the Party. Remember the Lenin-Ruthenberg Drive. Cal’s “Double” . Harry McNamara, an old man of White Plains, N. Y., who looked so much like Coolidge that he became popularly known as Cal’s “double,” has disappeared from his home. We are inclined to credit the rumor that he has gone somewhere to get his face Fe Rm ee f ¥ ener ROR Airc ROB “JUST TELL THEM THAT YOU SAW ME”.... By Fred Ellis Al. Smith admits that there is “some unemployment” in New York State. By H. M. WICKS. 'VERY agency of the United States | government has worked overtime during the past few years to add its own special cuntribution to the myth of Coolidge prosperity. There is no department of the government that has not deliberately perverted statis- tics for the purpose of politically strengthening the administration. On innumerable occasions we have proved that Andrew W. Mellon’s treasury de- partment, Herbert Hoover’s depart- ment of commerce and the depart- ment of labor under James J. Davis, have taken the lead in developing fal- sification of statistics into a fine art. The objective of all the prosperity propaganda was to establish the be- lief that the ruling class of the United States had discovered some new spe- cific that enabled it to overcome in- dustrial depression. When asked to explain the secret of the alleged Reserve System was pointed to as having made it possible by means of skilled manipulation of interest rates on bank loans. It was argued that the reserve banks, by making money plentiful, could overcome industrial depression, avoid sharp price fluctua- tions and eliminate unemployment. Had this been true the present in- dustrial crisis could easily have been overcome by the simple device of lowering the bank rate on loans, thereby releasing a greater volume of money. In fact, it so happens that in 1927 the federal rediscount rate was lower jthan during the greater part of the previous year, and yet the whole of 1927 was characterized by a slacken- jing up of industry that brought the |country face to face with a severe \crisis, with widespread unemployment and misery for the working class, [3 oe Dome [Fors three quarters of a century, | fter great industrial crisis, illu- |sions were widespread that the solu- tion for all the ills of society was to | be realized through cheanening |money. These erroneous ideas arose through widespread misconception of | money as a medium of cireu/ation | Since in commodity ‘exchange money |acts as the medium of circulation the superficial observer is easily led to believe that the circulation of com in order to explain a practice imposed upon the financial system of the United States because of its position as banker of the world, the holder of vast supplies of gold that had to be disposed of in foreign markets in order to aid European countries return to the gold standard, stabilize their cur- rency and thereby attempt to make secure the position of American in- vestors in Europe. So the new money theory of the federal reserve was the old device of making a virtue out of necessity. Since everything that happens is used to boost the political fortunes of the administration it was but logical that this latest money theory would be devised by the federal reserve sys- tem to also aid the prosperity propa- ganda. ee ‘THESE who imagine that the volume of money in use determines the circulation of commodities naturally assume that when circulation slows up all that is required to enable it to again resume its former velocity is more money. This is not at all the case as every Marxist knows. In fact the opposite is the case. When com- modities move rapidly, when the veloc- ity of the currency of money is high, 2 small amount of money can circulate a great many commodities. But when commodities move slowly, when busi- ness is sluggish, it requires much more money in circulation. As a concrete example, let us take the movement of a given piece of money in circulation, say one dollar. Assume the circulation of 10 articles a day, the sum of the prices to be realized during the day on the basis of the movement of the one dollar in money is $10. But in case the commodity movement slows up by one half, then it would require just twice as much money ($2) to circulate the same amount of commodities formerly mov- ing with but one dollar as currency. Thus we come to a general law that applies to every stage of capital- ism. As formulated by Karl Marx this general law of capitalist circula- tion is: “The quantity of money func- tioning as the circulation medium is equal to the sum of the prices of the commodities divided by the number of moves made by coins of the same denomination . . . The quantity of money thrown into cir- culation at the beginning of each day is of course determined by the sum of all the commodities circulat- ing simultaneously side by side.” Always, on the eve of an economic crisis we have the phenomenon of more money being thrown into circu- lation, for the simple reason that commodity movement slows up and more of the circulating medium is re- quired. Although very ingenious in devising means of protecting them- selves from some of the disastrou effects of industrial crises, the bank- ers have not yet been able to per- ceive the first symptoms of denr: sion in commodity movements. They enly know there is a greater demand for money and hence they can and do raise the interest rates. When this oceurs we hear a great deal about the “tightening of the money market,” as the cause of depression. The ef- fect is mistaken for the cause . -— * * HE existence in the United States of a superabundance of gold—al- Unemployment Blasts the Theories of the. Federal Reserve Board most to the point of stagnation — forced the federal reserve. system to keep the rediscount rate at a low level so that it could be exported to Europe. This cheap money made pos- sible widespread speculation on the stock market. Tine obvious insecurity of small business ventures and the apparent strength of the stock market impelled thousands of the middle class to liquidate their small businesses, borrow to the extent of their ability in the cheap money market and plunge into stock speculation. So pronounced was this ‘tendency that a number of bankers perceived the danger of a crash, hence Chicago raised its rediscount rate from 3% to 1 per cent, with Richmond, Va., adopt- ing the same policy, which was soon followed by the New York federal re- serve bank. During the period of “cheap money” the ,condition of industry in the coun- try ‘was rapidly becoming worse, the ranks of the unemployed were grow- ing by millions and a general para- lysis was creeping over the whole country. There was an abundance of money as a medium of circulation, ample credits for money as a means of payment, but there was a constant- ly diminishing market for the pro- ducts of industry, which now, as al- ways, in the past creates industrial depression and the resultant increase in the army of unemployed, regardless of any or all attempts to overcome it by financial juggling. Thus again the facts of life itself explode the theory that panaceas for avoiding industria! crises can be re- alized through artificial manipulation cf money, and thus is another of the current prosperity illusions blasted. WHO IS FRANK O. LOWDEN? (Official 1 Statement of United Fai Farmers ‘Educational tional League) “HERE is much said about Lowden nowadays in connection with the presidency of the Unied States. Lowden is a busy candidate for Presi- lent and he takes an active part in farm Relief discussions, to such an pres. Intl. Press Foundation 1926, 't. col. Inf. Ill. Nat. Guard 1898. Home Oregon, Ill.” This record of his past life does not seem to indicate that he knows much about farming, in spite of the place of business at Oregon, Illinois. are bankers and politicians and h¢ knows as much about farming as J.P. Morgan. He is simply a too! of Big Business and talks Farm Re- lief. only for the purpose of tickling the ears of the farmers and workers. extent by the way that many farmers|/fact that he may claim that he is save been led to believe tha. he is a living on a farm today. Nor does it ‘armer himself and an actual friend| show that he has participated in any of the farmer. Many so-called pro-| farmers’ and workers’ ba tles against gressives and a number of farm lead-| Wall Street. For many years now ars haye endorsed Lowden, They are|the farmers have been fooled by such looking for a “winning hand.” men as Lowden who claim that they In view of all this talk about Low-|are one of their kind, progressive, den, we wish to say a few words con-|and ask the voters’ support on that cerning him. It is evident to us| basis. that the farmers are going to be asked to‘support a man for President who cannot possibly lay claim to their As. Pullman’s son-in-law he has long been a digector of the Pullman company and many other corpora- tions. He is a millionaire and not in the farming class. He represents Big Business in the west, and rest assured also tha’ he is not and will not be hard against Wall Street. Lowden Wins—Farmers Lose. The idea that we are to vote for a candidate who “has a chance to win” is a misleading idea because a Low- ve fities. the replacement of one com. modity by another, can take place only because of the existence of suf- ficient money to circulate them. Money appears in every exchange of commodities under capitalist distribu- tion, hence it is an’easy matter to create the illusion that this ever- present circulating medium is_ re- sponsible for the movement of the commodities, instead of being merely the expression of that circulation re- Pullman Millionaire. As Governor of Illinois, he w: known as the business men’s effi- gardless of the amount of money available. As Karl Marx said, “The movement of money, as the’ medium of circulation is, in fact. merely th support. ¢ In “Who's Who.” Who”: ment for capitalist control. ciency governor consolidating many depar.ments in the plea of economy, Here is what we glean from “Who's, but really centralizing the govern- Lowden den victory would not mean a vic- ory, but a defeat, for the farmers and workers. The farmers must demand a Farmer-Labor candidate for Presi- dent in the 1928 election and get labor along to help fight for his election, You will gain a good deal more for Farm Relief by voting for a Farmer. Labor presidential condidate, who has no chance to “get in,” than if you yote for Lowden,—the capitalist— and elect him. In the former case you will gain something by helping to build a fighting political party, while in the movement of commodities whilc changing their forms.” The notion that the circulation of commodities is the result of the move- ment of money is the illusory founda- tion of all cheap-money panaceas of the past. While all previous attempts at money reform arose as a result of depression, the present money-jug- gling movement of the federal reserve system arose during a period of so- called prosperity. It is also the first time in the history of the country that the dominant political party orig- inated a theory of cheap money. The theory, however, wasyriginated | also featured spectacularly when Mayor Thompson permitted the Peo- ple’s Council to meet in Chicago and Lowden mobilized the national guard in Springfield and rushed it to Chi- cago, the council adjourning (in September, 1917) just before the soldiers arrived. We are asked to believe that this kind of a presiden ial candidate is “the best we can get at this time,” so very, very much better than a Dawes, or a Hoover, for instance. Farmers,|la‘ter instance you only win another don’t be fooled. You will gain abso-|Coolidge—a tool of Wall Street. dared haga by supporting Lowden.) Help organize the Farmer-Labor % “Frank Orren Lowden, born Sun- rise City, Minn., Jan. 20, 1861; A. B. Iowa State Univ. (valedictorian) 1885; LLB, U of Iowa, 1918, etc. married Florence, daughter of George M. Pullman of Chicago, April 20, 1896. Practiced law Chi- cago 1887-1906; prof. law, North- western U 1899; delegate Rep. nat. convention 1900, 04; member Rep. Nat. Committee 1904-12, and mem- ber exec. commi'tee in campaigns of 1904, 08; elected 59th congress Nov. 6, 1906 for unexpired term 1906-07 of R. R. Hitt, deceased; re- slested oth and OPOLTah Bieted Anthracite Miners War on Dismissals By GEORGE PAPCUN. [Is there going to be an attack on the miners’ union in the anthracite? This we miners of the anthracite must ask ourselves. We have seen the union in the soft coal fields weak~- ened and crippled, It is not enough, alone to ask a question but we must realize that at the present time our union is being attacked in the anthra- cite, that it is being weakened previous to a final onslaught by the operators. We find that the officials whom we miners of the anthracite pay are not paying any attention to the four out- standing problems which face us, Four Problems, (1) The great unemployment. 4 (2) The introduction of machinery which is displacing thousands of our brothers. (8) The contract system which is a detriment to our union and which is bringing the standards of the min- ers lower and lower. (4) The wage reductions which are going on at the present time. The coal operators are systemati- cally putting these things into effect with the union officials of our tri- district. At the present time the coal operators are introducing machinery and displacing thousands of our brother miners without provisions be- ing made for them and are driving them out of the industry. Alongside of this they are extending the con- tract system and are forcing wage re- ductions. A Worthless Resolution. About all that the officialdom of our union so far did was to meet on February 14 and pass a resolution which means nothing, in fact the res- olution which says as follows: “Whereas, due to the present de- pression of the coal industry in the anthracite fields, the various coal companies have been working broken time, some of the coal companies have closed down a number of their col- lieries while others are being operated continuously, This practice has caused suffering to the different lo- calities affected, especially to the mine workers and to their families. We believe this condition can be remedied and if they choose the an- thracite operators can give an equal division of time worked to each of their several collieries, therefore “Be it resolved by the tri-district board of Districts Nos, 1, 7, and 9 chat we appoint a committee com- posed of Rinaldo Cappellini, Andrew Mattey and Chris J. Golden to meet with the proper officials of the var- ious anthracite coal companies to go over the present conditions with the thought in view to find a solution of the present deplorable conditions ex- isting in anthracite Districts Nos. 1, 7, and 9, and with respect to the in- equitable distribution of available work, and “Be it further resolved that we call upon the Anthracite Co-operative As- sociation to lend their aid to this movement as it effects workers and business alike.” This resolution is worthless. Aid for jobless miners will not be had by cooperation with the operators but in spite of them, Officialdom Does Nothing. The officialdom has been forced to realize the tremendous unemployment which is making the miners suffer in the anthracite but outside of crawl- ng before the coal operators, fooling the miners and trying to keep them quiet, it has done nothing to bring relief to the thousands of miners who are out of work. The “Save the Union Movement” thruout the tri-district must sound the note of struggle and demand im- mediate relief from the state and municipal authorities and also from the industry itself, for the thousands of miners unemployed. It must de- mand that a certain percentage of the .uge profits of the anthracite coal operators be diverted for the use of the miners who are suffering today and who created these profits for the coal operators. We must point out the reason for this unemployment and also the dan- ger that it brings to the union if the miners are starved out—that is, the attack by the coal operators on the miners’ union as was done in the bitu- minous fields. Provision For Unemployed. We also must demand absolute pro- vision for the thousands of our broth- ers who are displaced by mechanical loaders and other machinery intro duced in the mines. We must alsa fight against the contract system which is lowering our standard of liv- ing and which is undermining our con- ditions in the anthracite. We must also demand the living up by the coal operators to the agreement which #@ now in force. Clean Out Corruption. We must not allow the situation to get any worse, and we cannot afford to allow our officials to use the fifty per cent unemployment of the miners in order to sell them to the different political bosses who have demon- strated thru the soft coal strike and by other means that they are raed in behalf of the coal operators other big business. We must go for ward under the slogan of “clean out the corruption in the miners’ union completely.” “abor conferences be held and assist as much as you can in making a sue cess of the Northwest Farmer-Laboi conference Piguet will be pelt Saou a ne