The Daily Worker Newspaper, November 9, 1929, Page 4

Published by the Comprod blishing Co., Inc., daily y, at 26-38 Union B § fay SSBB) Squ New k € ‘el e Stuyvesant “DATWORK.” U1. Page Four Address and m 1 checks to the Daily Worker 28 y. Y Central Organ of the Communist Party of the U. 8. “Worker By Mall A. ( SUBSCRIPTION RATES: ie New York only): $8.00 a year: By Mail «butside of New York): $6.00 a year; 0 three months 0 three months $4.50 $ $3,30'six months; Statement of Working Women Cyba— on Kate Gitlow The Central Executive Committee of the United Council of Work- ing Class Women at its meeting, held, on Wednesday, October 2, unani- mously accepted the resignation of Kate Gitlow. It declares that Kate Gitlow’s resignation comes as a result of the fact that she has come in conflict with the line of the United Council of Working Class Women, which stands for revolutionary working class policy in the United States and for the organization of the working women on the line of the cle struggle. Kate Gitlow has aligned herself, with the social reformist Lovestone-Gitlow group, which is fighting the line of the Soviet Union, | which is opposed to the Five-Year Plan and which is supporting the right reformist elements in the Soviet Union. The United Council of Working Class Women endorses the progress made by the Soviet Union in carrying out the Five-Year Plan and rec- ognizes that the workers and peasants of the Soviet Union are building guide of the oppressed of all countr The meeting of the Central Committee of the U.C.W.W. declares that within the last few months Kate Gitlow has been playing a double role while pretending to sup- port the revolutionary movement, she has secretly made use of her post, secretly to work with the reformist renegade group of Lovestone and company who are fighting the militant revolutionary movement in the United States. This is noticeable in her sabotage in such events as: (1) Failure to call a protest meeting and to mobilize the women around the murder of Ella May Wiggins. (2) At a time when all militant organizations were making an intensive mobilization for participation on August First, she left the city for her vacation and returned only on the day before the dem- onstration. (8) Altho she was elected as a delegate for the Cleveland Con- vention which was held on August 31, and September 1—three months ahead of time—she failed to go to the convention and failed to consult the C.E.C. about changing her mind about going, and to point out its significance to the United Council of Working Class Women and to draw the women’s council to the militant revolutionary organization of the T.U.U.L, The Central Committee of the U.C.W.C.W. notices the creasing activities of the bourgeois social reformist women’s organ- izations. v for the reformist women’s organizations. These organizations aim to win the great masses under their influence and aim to divert the grow- ing resistance, and radicalization on the part of the working women which is the result of the intensive exploitation from moving in a left direction, They aim to utilize the working women as willing tools in the coming imperialist war. With the increasing fascist terror of American imperialism, the ever nearing war danger, and the imminent peril of the war against the Soviet Union, the Central Committee of the U.C.W.C.W. declares that at such a time reformist leadership and reformist policies are the greatest menace to the interests of the work- ing women. Only revolutionary leadership that stands firmly for a line of decisive militant action can take advantage of the increasing opportunities to win the masses of women away from the bourgeois and social reformist influences and for revolutionary struggles against imperialism. In reviewing the work of the council with Kate Gitlow at its head, the council points out that the organization has been built on too nar- row a base, that while it has conducted very important work in assist- ing the class struggle of the workers, its activities have not been deep enough nor have they borne sufficiently a class struggle character. In order to broaden the organization it is necessary to more directly mobil- ize the proletarian housewives and to participate much more in all ever in- | investments and naval bas pare | for world domination. up socialism and that the October Revolution is the inspiration and | ‘ Keystone in the Arch of Empire By HARRISON GEORGE. HE island of Cuba, with an area about equal to that of Pennsylvania, has a special importance greater than its size would indicate, pre- cisely because it occupies a strategic position in relation to the imper- ialist world and represents, with the present Yankee dominance through the “republic” of Machado, a fortified outpost of American imperia| pressing still further southward and making the Caribbean an Amer- ican lake. Julio Mella, murdered last year in Mexico by agents of Machado at the orders of American impe! m, once referred to Cuba as no longer an independent republic, but a “Yankee plantation.” This was and re- mains true, but Cuba is more than a plantation which produces 28 per cent of the world’s sugar. tance of Cuba in the fight between American and British imperialism By its position athwart the eastern area-way of the not only the Caribbean, but the whole Gulf of Mexico i naval power of the United States. This is most necessary to the United States plans for pushing its control into all Latin America, but naturally meets the resistant force of British imperialism, which though weak in comparison is nevertheless strengthening its defenses, both in capital throughout all this region in anticipation of the coming war with the United States. The fact that American imperialism, in its first infant steps in im- | perialist aggression, during the Spanish-American war, seized Cuba as | one of its chief prizes, indicates how Wall Street regards Cuba as nec- These organizations aim to win the great masses of women | essary to its aim of world dominion. Nor has the United States for one moment released its grip on Cuba. On the contrary, that grip has been ever tighter. Wall Street intended and still intends never to re- lease Cuba from its grip (however much it be willing for the Cuban bourgeoisie to play at independence with a parliament whose acts an American general supervises and a president who gets his orders from the National City Bank). This is shown by the infamous “Platt Amend- ment” forced on Cuba in 1901, which binds Cuba to the chariot of American imperialism by forbidding its government to make treaties Washington don’t like, compels this “independent” nation to do all that Wall Street desires, or agree in advance to suffer armed occupation. POWER SWEETER THAN SUGAR. With this control, Cuba has been an important outlet for surplus capital, no less than $1,505,000,000 of Yankee wealth being invested there, largely in sugar production—though this wealth and the matter | of sugar, as remarked, not the main thing desired by American imper- ‘The Meaning of the Stock Market Crash local class struggle activities as well as in the general class struggle | movement. It is likewise necessary to reah more Negro women who are being drawn into industry on an ever increasing scale, as well as to reach women of various nationalities which can be done only by | sharpening the militant character of the organization and its forms of activity. It is necessary to combat any pacifist illusions which the bourgeoisie is continuously spreading in order to win the masses of women for struggle against imperialist war and for the defense of the Soviet Union, the workers’ fatherland. In accepting the resignation and condemning the position of Kate Gitlow, the council demonstrates its will towarg accomplishing the building up of a powerful United Council of Working Class Women and for fulfilling the task for which it has been built with great masses. CENTRAL EXECUTIVE COMMITTEE OF THE U.C.W.C.W. P.S.—Since then practically all of the local councils have been visited by members of the .C. of the U.C.W.C.W. at which resolu- tions were adopted supporting the present C.E.C. of the U.C.W.C.W. At a general membership meeting of the members of all the coun- cils a resolution was introduced and adopted supporting the present C.E.C. of the U.C.W.C.W. The vote was 330 for and 10 against. The following councils have been visited by members of the Cen- tral Executive Committee at which resolutions were adopted, pledging to intensify their activities with the line of the Executive Committee. These councils are: 1, 2, 3, 4, 5, 7, 10, 11, 12, 14, 15, 16, 17, 18, 20, 21, 22, 28, 24, Newark 1 and 2, Paterson, Passaic, Cloakmakers 1 and 2 and others. Duplicity, an Art of Social Imperialists By proposing a motion in parliament to approve of resuming rela- tions with the Soviet Union, Arthur Henderson, foreign secretary of Great. Britain, Tuesday opened the way to break off even the existing negotiations with the “oviet Union and paved the road to war on the workers’ republic. To honest workers this may seem contradictory, but the labor imperialist government of England is not composed of honest workers. Before election MacDonald was forced by mass demand to promise to resume relations, After elections the government stalled as long as possible, then proposed the same insulting terms as the Tories de- manded. The Soviet Union ignored them and again the mass demand forced it to modify or pretend to modify the terms. By using the present opposition of the Tories, whose chief, Baldwin, amended Henderson’s motion to “deplore the failure” of the “labor” government to keep to the Tory policy for enmity toward and war against the Soviet Union, even though Baldwin’s amendment does not carry by vote ,the MacDonald regime has an excuse to break off nego- tiations or resume its insulting stand toward the Soviet Union. This opposition was strengthened at the hour Baldwin’s amend- ment was made, by the London Chamber of Commerce sending the government a declaration that resumption of trade and industrial rela- tions with the Soviet Union “is possible only when” the Soviet Union “restores confiscated property of British citizens and refunds repudi- ated debts.” The “labor” party government has this policy itself, so it did not need this information, but can use this “opposition” to point at as justifying no relations, when the Soviet Union rejects the demand to take back from Russian workers the factories they won by revolution and give them to British bondholders or to pay Britain for the count- less crimes and limitless damage it did to Soviet interests, by invading and murdering and destroying in aid of czarist counter-revolution in an attempt to destroy the Soviet government. WHY MacDONALD SHOOK HIS HEAD. The indisereet “Echo de Paris” has revealed why the loudly touted “joint statement” of Hoover and MacDonald on the freedom of the seas died scorning. Following the Rapidan set-to, in which the represen- tative of American imperialism bludgeoned the figure-head of the Brit- ish empire into an agreement to abandon the “right” of search and seizure of neutral vessels in the next imperialist war, and to dismantle British naval bases in the West Indies, Halifax and Esquimalt, Mac- Donald cabled his colleagues for approval. A special “labor” cabinet meeting, attended by the heads of the army, navy and air forces, was called immediately. Arthur Henderson, speaking for the imperialists, denounced the tentative agreement, vetoed the draft of the “joint agreement,” and declared that if the Kellogg pact meant anything, as he knew it didn’t, dismantling of the naval bases was out of the question. They would he needed in the impending mass slaughter. He insisted that MacDonald be instructed to protect the British empire better than he was doing or come home. Mack was cabled to forget it, which explains why the Hoover-MacDonald state- ment said nothing ni particular. Alexander, chancellor of, the exchequer, admitted that even if the agreement was carried through, the naval budget, now around $280,- 00,000, would still be $270,000,000, thus showing up the falsity of the “disarmament” proceedings. Delivering his report in parliament the other day, MacDonald, when asked whether he had made any concessions to American imperial- fem. shook his heed, The thoucht, of the enormous blunder from which he was saved in the nick of time by his pals on the “labor” cabinet hed apparently made his tongue cleave to the roof of his mouth, | | masses as well as of the petty bourgeoisie. ialism. To press its control over Mexico, Central America and the northern coast of South America, all regions of enormous natural re- sources in oil, minerals, fibers and other products, and to control the eastern approaches to the Panama Canal, is far more important than sugar, important though sugar may be, although it is just now a drug | on the world market. The recent Wall Street loan of $50,000,000 to the Machado “gov- ernment,” in spite of the economic insecurity of Cuban economy based on the tenuous value of sugar in a world over-supplied with that com- By LEON PLATT. (Continued) PART IL. In the period between October 1, 1928, and September 1, 1929, the | market value of shares listed on the New York Stock Exchange ad- vanced by 30,338 million dollars while during the month of October, 1929, the market value of these stocks decreased 9,500 million dollars. We must state that the lowering of the stock value does not necessarily means a decrease in national wealth, i. e., in the wealth of capitalism, yet at the same time we must state that the increase in stock valuations on the market, the billions of dollars made in speculation, was one of the most outstanding contributing factors to American prosperity, which is now being greatly affected. If we are to take the market value of the stocks for the month of October, 1929, of such industries which are today in a comparative “business boom,” like the automobile industry, we will find a decrease of 1,157 million dollars, chemical industry—996 million; public utilities, 3,403 million; railroads, 578,005 million and so on. It is true that the automobile, chemical, railroads and other impor- tant industries are basically making their profits from the surplus value created by the workers they employ, yet no one can overlook the source of immense income that nourished the entire capitalist superstructure that was derived from the trade on the stock market. In addition to that we must also consider the fact that industrial enterprises, like General Motors, Standard Oil, etc., are themselves heavy investors in stocks and were directly involved with their financial resources in the present stock crash. The situation described above is seriously undermining capitalist stabilization in America and explodes the myth of American prosperity. “Reactions such as we are undergoing now may perhaps af- fect a\small percentage of the people, but they are likely to affect persons whose activity if itself impaired, results in corresponding impairment of the productive and consumptive power of many others.” (Journal of Gommerce, Oct. 31.) It would be wrong to think as some of the capitalist press does, that all that would be affected by the stock crash is the luxury and semi- luxury trade. The most immediate problem capitalism is faced with today is the great curtailment of the buying power of the working Hundreds of thousands of investors who bought stock on the margin* basis and hundreds of thousands of small investors who bought stock on the installment plan, and the great number of the small bourgeoisie, salaried men, skilled workers who have invested all their life savings in stock and were com- pletely annihilated in the first line of the crash. The financial crises, the destruction of hundreds of thousands of small investors, will greatly diminish the buying power of the masses which began to be affected even prior to the stock break. The Journal of Commerce in questioning business leaders in many lines of industry stated that the opinion expressed is: “A general impairment of the buying power as a result of the huge actual and paper losses suffered by bona fide investors as well as margin speculators was feared.” This situation made itself already felt in the metal industry. Mr. Vogelslong, president of the National Metal Exchange, stated: “Of course, the declining stock market may seriously impair the purchasing power of the people, in which case the consump- tion of metals may be curtailed.” (Journal of Commerce of Oc- tober 30.) The J. of C. of November 2 also states that it is the opinion of underwriters and company executives of the insurance business, that as a result of the stock crash: ‘ “In the first place evidence has already developed that some and perhaps many outstanding accounts are going to be very dif- ficult of collection.” USING THE OXYGEN RESPIRATOR. The working masses are being flooded ‘with propaganda that the organized pool of the most powerful financial institutions will stabilize the stock market and will bring stocks back to their level. The damag- ing effects of the stock crash is shown by the fact that the president had to assure the “nation” that “business is sound.” We here do not mean to say that various financial combines and in- vestment trusts did not exploit the misfortune and bankruptcy of the small investor and speculator. Millions in commission profits were made by the various banking houses. However, this very fact in itself did not only not solve or alleviate the crisis; on the contrary, it only accentuated it. For solving the crisis of stabilizing the market by any financial pool is simply impossible. Capitalism can not be reconstructed; the very fact that such financial institutions like the House of Morgan and others of its kind ,and the Federal Reserve Bank were wiped aside in the stream of the stock crash is a proof that capitalism can not over- come its internal contradictions, and only a proletarian revolution can solve the ecenomic problems of present day society. The Journal of Commerce gave therefore a very correct estimate of the meaning of the statements of Hoover and Klein when it said: “It may be that these statements perform somewhat the same useful function that is rendered during a theatre fire when the statement is bellowed from the platform that there is no dan- ger, and that the exits are sufficient. . . . If they were face to face with a question they would probably justify themselves by saying that their statements are intended for the great mass of , modity, indicates clearly that at The sugar is incidental to the main impor- | | Although the British investment in Cuba by no means compares to that | statement of “sound business” and Julius Klein’s radio speeches of | countries now arming for war, must realize the powder magazine which | the main basis of capitalist prosperity in America is here being put on | two most contradictory capitalist phenomena, whose development only | the ranks of the working class, This stock crash will further sharpen this particular moment of history America by no means will permit a loosening of Cuba’s chains—barring a revolution stronger than its own power, or an armed attack by another imperialist power taking it away from Yankee hands. Nor is this, in view of the general world struggle between England and America, beyond the bounds of’ possibility. MacDonald’s trip to America only certified that Britain would’ not dismantle a solitary naval base of the many which menace American power in the Western Hem- isphere. The Halifax base must be kept, so it was said, because some sterious “Canadian imperialists” would raise the devil if it were dis- mantled. But nothing was said about the British naval base at Jamaica, only 85 miles south of Cuba. MacDonald would be exposed completely if he would have claimed his “desire” to dismantle bases in the Carib- bean and Mexican Gulf is defeated by “Jamaican imperialists.” THE PLAY OF WORLD FORCES. The whole area of the Caribbean and the Gulf of Mexico is a pow- der magazine where the two great imperialist rivals watch each other. of America, being only some $75,000,000, England undoubtedly appre- ciates the value of having American control ousted, just as America appreciates sticking, for strategic reasons. This must not be forgotten in estimating any apparently “spontaneous” movement to oust America which is not based on the mass revolutionary initiative of the workers and peasants of Cuba, but which is led by dissatisfied elements of the nationalist bourgeoisie. American imperialism has its naval base at Guatanamo in Cuba, another in the nearby Virgin Islands, and still another in Porto Rico. But against these are the British naval bases at Jamaica, another at Trinidad, one in British Honduras, still another in British Guiana—nor must one forget the base at the Dutch Island of Curacao, it being un- derstood by those who understand anything, that the Royal Dutch Shell Oil Company which owns not only Curacao ,but great properties in Mexico, Venexuela and Colombia—in all three of which imperialist rivalry has recently turned into covert armed struggle—will in a world war side with England. | THE PERSPECTIVE FOR MASS REVOLT The workers’ revolutionary movement everywhere, not only in America and England, but particularly in these two rival imperialist is the Caribbean, and Cuba that that is its center. Also, must they realize that the lop-sided economy of Cuba, which (being based on an over-produced commodity) is in such a crisis that great masses of its 3,500,000 people are literally starving, and that this is creating a fer- ment of revolutionary desperation among the masses only weakly re- flected thus far by the intellectual and petty-bourgeois independence movement. Yet without these masses of workers and peasants, no independence movement can hope for success. It is therefore imp€rative, because the struggle for Cuban independence is part of the world revolutign, that the greatest attention and aid be given the workers and peasants of Cuba in their struggle, most particularly, of course, by the revolutionary workers of the United States. people who may have been frightened by stock market reverses and that they have to speak accordingly.” (Journal of Commerce editorial, October 31, 1929.) In the present situation it is also interesting to note that the stock erash is taking place in a period of abundant credit. The same situa- tion did*not exist in the past financial crises. The rate of interest was lowered by the Federal Reserve Bank from 9 per cent to 5 per cent, yet in spite of all these advantages the financial press had to state: “Gone is the illusion that credit elasticity would obviate a recurrence of mar- ket crises.” In the financial world great doubt is being expressed if the banking pool will be able to advance stock prices from their present level. The great deal of stocks purchased by the banking pool for the artificial support of the market is now gradually being put back on the market. It is also true that the stock bought by individual investors will not be kept, but quickly resold on the market. Considering this question the Wall Street Journal stated Oct. 31: “No committee of bankers, however powerful, could effec- tively peg prices with stock coming from every direction. . . . The result has been a decline which if extended over a given per- iod of time is without precedent.” The promises of so-called relief, the closing down of the stock ex- changes for the week end in New York and other cities, the cutting down of the trading hours, the reconsolidation of the financial forces, ete., ete., is no relief at all and does not solve the situation. The Jour- nal of Commerce in one of its editorials sensed the artificial oxygen respirator that capitalism is resorting to in support of its decaying body and to prolong its parasitic existence. “Put this whole thing in a nutshell and it amounts to. saying that the relief already furnished is no relief at all in any per- manent sense, and that it may be made a source of danger in- stead of help, but that the relief which comes from real treat- ment of the underlying conditions is still needed.” The Journal of Commerce says, “The relief which comes from real treatment of the underlying conditions is still needed.” Of course the Journal of Commerce, an organ of finance capitalism, can not see that the real treatment is destruction of private property and the establish- ment of the Dictatorship of the Proletariat, under which only planned economy is possible. All that American capitalism succeeds to patch up and solve through the use of an oxygen respirator is only further sharpening and strengthening the capitalist contradictions. In this connection it will also be of interest to analyze Hoover’s “continued prosperity.” Both of these two statesmen and efficiency engineers of American imperialism put two main conditions for con- tinued prosperity. 1. If consumption will keep up with production, and 2—if the output per workers will further be increased. In the special report by Hoover’s committee on recent economic changes it is stated: “So long as the appetite for goods and services is practically insatiable, as it appears to be, and so long as productivity can be constantly increased, it would seem that we can go on with in- creased activity.” However, the very crux of the matter is, that the markets for American made goods are shrinking, competition becomes more fierce and the very effects. of capitalist rationalization upon the American workers are such that the workers revolt against it. In other words, showed a continuous sharpening of the contradictions of capitalism. EFFECTS OF THE STOCK CRASH ON THE WORKING CLASS. The first effects as a result of the violent crash on the stock ex- change is the numerical growth of the American proletariat, which will come as a result of bankruptcy of the small investors‘and speculators. Greatly hit is also the labor aristocracy, corrupted by the capitalist class and involved in stock speculations as a means of escaping from the developing crisis in social reformism' in America, which thought of turning the workers into capitalists, through stock ownership, manage- ment participation, etc. As far as the working class is concerned, it must be stated that this condition can only become worse. To counter-balance its losses on the stock market, capitalism will increase the exploitation of the work- ing class, through the wiJer use of capitalist rationalization and low- ering of the standard of living. The present existing structural un- employment can only be increased. The Commercial and Financial Chronicle of October 26, 1929, one of the most responsible organs of American finance capitalism already sounded the key note when it stated: “It seems doubtful if in the near future plasterers and other skilled labor can continue to get $15 a day and make $75 by simply working five days a week.” The recent attacks on the working class,as expressed in the Gas- tonia verdict, the attacks on the Communist Party and attempts to drive it into illegality are forerunners of greater attacks on the American working class, brought about by the entrance of American capitalis: into a deep going crisis. The working class will have no choice but resist these attacks, which can only be carried on effectively under the leadership of the Communist Party and the Communist International, POLITICAL IMPLICATIONS OF THE STOCK CRASH. , . It would be wrong to think that the crash on the stock market is only affecting American economy. Just as the contradictions of capi- talism in other countries are also affecting American capitalism, so Reprinted, by permiasion, from “The City of Bread” by Alexander Neweroff, publi \d copyrighted by Doubleday—Doran, New York, THE CITY =~ OF BREAD TRANSLATED FROM THE RUSSIAN You couldn't Maybe in Moscow...» (Continued.) could hardly breathe, yet they went around in shubas, and every one word! ‘They all carried whips in their hands, and they squatted on Yeropka, the little mujik, brought up three of them at once, dis- The Kirghiz showed their white teeth, passed the watch from hand “It’s a wonderful watch—German make!” Semyen with the red beard pulled the women’s skirts out of his “Bik Yakasha! Once they belonged to fine ladies!” Semyen danced around them. Ivan Barala scraped the soles of the shoes with a knife: wet. They’re calf’s leather. I’d keep them to wear myself, only I can and went away. : “Hey, there, wait a mniute, take it for three -poods.” And what an uproad! They exchanged silver for paper money. They around in their heavy boots. would be left behind. He saw a Kirghiz going by, could not be patient teeth, ran his finger along it. Leaning out of the car, Mishka shouted The Kirghiz babbled something and shook his head. effort to show some way of making himself understood, then he tried A Russian from another car spoke to the Kirghiz in his own The Kirghiz spat angrily: “How much does he offer?” “Kirghiz! Kirghiz! Shurlyum, murlyum! Go buy a cap!” he could not bear to sit still, and a moment later he had jumped down soup coming from an immense iron pot. The woman who was sellin; On big sheets of iron lay roasted liver, camel heads, mutton e§- Mishka displayed his old cap and his knife on its leathern thong. to a halt. The Kirghiz were not terrible at all, only queer. It was _unbear- ably hot; at the station, with the heat coming from the trains, you of them wore a big fur hat, with long ear flaps. They did not. talk as we do either: Tara-bara, tara-bara—you could not understand a their haunches. They fingered the mujiks’ coats, and the women’s dresses, and peered into the samovars. played his watch, stood there with his hands on his hips. Easy to fool the Kirghiz—what does Asia know about anything? to hand, tried to open the case. Yeropka yelled in the ear of a wrinkled old Kirghiz: The irghiz nKodded his head. f “American gold!” shouted Yeropka still louder. deep dusty sack, held them up so that the wind caught them like sails, and he too began yelling right into the ear of the Kirghiz: The Kirghiz kept chattering tara-bara, tara-bara! understand a word. “A fine lady’s skirt, a fine lady’s skirt. big city ...” “Uncle, just feel that leather! Feel it! Don’t be afraid, you can’t tear it. You can go through water with them, you won’t get see you need them.” The Kirghiz nodded their fur hats, then without warning turned - Yeropka ran after them: “Shaitan-Maitan, you'll be sorry about my watch!” And the Kirghiz. waved them away with their hands. All sorts of goods were hauled out of the railroad cars to be sold. refused to exchange gold. They drew from their sacks the tobacco they had brought to sell, they flourished. jackets and skirts, stamped Mishka would have liked to get down and run around the station, but he was afraid. If he didn’t get back to the train in time, he any longer, drew out his knife and displayed it: The Kirghiz stopped, took the knife from Mishka, pulled out the blade, showed his white. as loud as he could: “For sale! For sale!” f Mishka yelled still louder: “One pood!” The Kirghiz shook his head still harder. Mishka looked around him helplessly. He knit his brows in the talking a sort of broken Russian so the other would understand it, “Wheat! Wheat! One pood!” tongue: “One pood!” “Eh, eh, Uruss!” . Mishka asked the Russian softly: “He doesn’t offer anything, he’s swearing.” As the Kirghiz turned away, Mishka yelled after him: 3 The mujiks laughed, and Mishka laughed too, at his own cleverness in learning to speak Kirghiz. He could not stay in the car any longer, from the train, His nostrils were assailed by the penetrating odor of hot cabbage it stood over the pot and called: “Cabbage soup, hot cabbage soup!” trails and stewed fish. Jars of boiled milk beckoned alluringly. The smell of bread gripped the heart, “Buy, buy!” His glance fell on the liver, on the mutton entrails, and he came “Auntie, give a little to a famine child!” (To be Continued) much more are the contradictions of American capitalism sharpening the contradictions of world capitalism. The observer of the develop- ments prior to the stock crash could see clearly that world capitalism is organically interlinked. The increase in the rate of interest in the Federal Reserve loans brought with it immediately a raise of interest | by the Bank of England, by the German Reichsbank, by the Bank of France, ete. / The high rate of interest of short term loans in the United States, brought back to the U. S. A. not only the short term loans made pre- | viously to other countries, but a continuous flow of gold? from other countries into the U. S., thereby greatly depleting the gold reserves | in many European countries, particularly in the Bank of England. | The migration of British and other capital to the U. S. A,, the high | rate of interest of loans greatly effected business conditions in Great || Britain, Capital which would ordinarily be invested in British industry | was shippetl to America and poured into the speculations on the stock } market, Consequently, the depletion of the gold reserves in Great | Britain lowered the value of the pound and increased the cost of living. Generally speaking, the crash on the New York Stock Exchange also brought a violent slash on the stock markets in foreign countries. The popular belief in the security of American investments was very at- tractive for foreign capital. However, with the crash on the New York stock market, ry sums of American surplus capital were released, which are today loo) ing for a sphere of investment. This means that the tide of the flo’ of gold will turn in the reverse direction—from America to other coun- tries, This will mean that the value of the British pound will rise. The release of American capital will sharpen the struggle between the United States and England and between all imperialist powers generally for the control of markets and spheres of investment. This brings the danger of war between the imperialist powers and Particularly against the Soviet Union still closer. In conclusion, it must be stated that the recent events in the United States definitely bear out the correctness of the analysis of the sisth World Congress, Tenth Plenum of the Comintern and ‘the October Plenum of the Communist Party of America concerning the sharpening of capitalist contradictions. The development on the stock market ee a reflection a A entire economic system bringing American capitalism into a period of crisis once more rejects i the exceptionalist theories of Lovestone, , Heh eet, 4 Let the apologists of American imperialism and the vi 4 “Victorian Age” speak of the second industrial Hotes: ate, inated capitalism; the rotten foundation of capitalism, of the capitalist contradictions on one hand and the growth of socialism and planned economy in the Soviet Union on the other hand, will break the majority of the American working class away from capitalism an entrust its leadership into the hands of the Communist Internation: and its American Section in the successful i aia ae: struggle against capital t * Margin buying is when the speculator ination onl rt, ¥ Money necessary to purchase the stock, and the broker git Ne’ bo balance. If there is a serious decline in the market price of the stocks purchased, the margin may be quickly wiped out and if the speculator does Ping ad SAMA to maintain his margin of the stocke ug] e broker has the it to sel e re oH dinlagiall is taps Be sell the stocks and thereby (THE END.) s cory I eon fl ee