The Daily Worker Newspaper, August 26, 1931, Page 4

Page Four ‘British Capitalis on the m of a Precipice | past fort I conseq on ptoms of Not only the effects of the pse of German economy, in which British apitalism is deeply involved, but also the direct »ifensive of Paris and New York, which seek finally to displace London as the world finan- tensity of the pres- cial center, are behind the ent ate crisis, and far-reaching i h great su Britain is revealed as the second weakest link in the chain of the imperialist powers, yerman Center r in dip- ctgally no man bourgeoisie to plead for concessions from the Versailles Powe that the German Sam- son, if driven to desperation, would bring down the whole structure of world capitalism in its collapse. Today the industrialist “Deutsche emeine Zeit ‘6 able to fling out the ge to London in its article “After You, ge?” on the f of the London Con- is t hour of which Dr. Kaas spoke ‘ically a year ago when he said that the German Samson, driven to desperation, would pull down his opponents with him in his col- lapse. Let the London Stock Exchange con- tradict us if it can!” But the London Stock Exchange was in no mood to contradict. On July 17 Baldwin, the Conservative leader, startled public opinion in England by making a declaration openly referring to the possibility of a financial crash overturning the whole econ- omy in Britain. He said, speaking at Hull: It is difficult for us in England to realize what a financial crisis may mean, and yet it is not beyond the bounds of possibility that we may have one day to meet one here. We have seen the result in other countries. Let us take a warning of the result—that you may find one morning no money for wages, that you may find the value of your currency so fluctuating that no man knows where he stands, that there can be no certainty either for the business man who makes his con- tracts or for the workman who draws his wages, The perils of such a disaster in a coun- try like ours are beyond computation.” This was the first public declaration by a polit- ical leader of the possibility of a financial crash in Britain. It was followed by a host of vague alarmist statements in the press and in polit- ical utterances that Britain was facing the gravest crisis since August, 1914, or since the general strike; that everything was in the bal- ance; there was talk of a moratorium or a na- tional coalition government. Alongside, went declarations that there was “full confidence,” “no panic,” “no crisis,” etc. At the same time Henderson in Paris was painting a desperate picture of the British financial situation and the possibility of a moratorium, and was yield- ing completely to the French demand that the London Conference should cover no political ground. ‘What lay behind this wave of alarm? The im- mediate facts were obvious. First, Britain was heavily involved in the short term credits to Germany. At the London Conference the Brit- ish share was estimated at 35 per cent or some 80 to 100 million pounds sterling, whereas France only held 5 per cent and could afford to be relatively less concerned. If these credits were lost, some of the biggest financial houses in London would be faced with collapse. This lay behind Henderson's declaration ni Paris that a German moratorium would inevitably be fol- lowed by a British moratorium (Daily Telegraph %5. 7. 31). Britain seeks by every means in its power to safeguard these credits by conversion to a long- term international loan, and then to safeguard the future payment of interest on this and other investments by a drastic cutting down of, debts and reparations payments. But here Britain find itself face to face with the antagonism of both France and the United States. France will not allow any question to be raised of the re- vision of reparations. _The United States will not allow any question to be raised of the re- vision of war debts. At the same time France blocks any international loan by the insistence on political guarantees, including the sanctity of FIGHT STEADILY FOR RELIEF! Organize Unemployed Councils to Fight for Unemployment Relief. Organize the Employed Workers Into Fighting Unions. Mobilize the Employed and Unemployed for Common Strug- gles Under the Leadership of the Trade Union Unity League unemployed. Workers! Join the Party of. Your Class! Cormmunist Party U. 5. A. P. O. Box 87 Station D. New York City. Please send me more information on the Com- munist Party. Name .. Address Cry State Occ pation ABO .seeee Mall this to the Central Office. Communist Party, P. O, Box 87 Station D. New York City. r ‘ as the price; while America, by its , in pra ‘Thus the Lon- end in fiasco, The reparations and debts could | len’s attempts to do so were | blem of a long-term loan basis could not be uncertainty for the London. brought down the weeks, July 13—25, no unds of the total esti- h balances of 150 million poun thdrawn. Sterling fell below | me dates 31 million pou s of gold (or a net 27 m: m pounds) had to be ex i from the Bank of England's gold | ood previo’ at 160 million a yery much lower figure than | ‘The Bank Rate had to be 314 per cent—with inevi- table unfavorable reactions on industry, unem- ployment and the international situation. The French government and the Banque de France protested their innocence, that they had | no part in the process, which was wholly remote | from political causes. In Britain a different | view was taken. Although the Banque de France had no direct part, the “Observer” city editor noted that the withdrawals were carried out by | “a number of the smaller French financial houses acting under one direction” (26. 7. 31). The “Times” city editor declared that “some al- lege” that “the gold standard is being deliber- ately abused for political purposes” (25. 7. 31), | and further that it is necessary to “put a stop | to the abuse of the gold standard to which it is | being subjected today.” “French institutions have long been accus- tomed to keep large balances in this market; but if these balances are found to be unre- liable, the facilities for their employment here must in future be necessarily drastically re- duced.” (Times Trade Supplement” 25. 7. 31.) The “Daily Telegraph” diplomatic corre- spondent openly recalled that: “A similar process was noticeable both dur- ing the weeks which preceded the Hague Con- ference and during certain phases of the Na- val Conference held last year.” (“Daily Tele- | graph” 225, 7. 31.) ; London responded to this situation of com- bined crisis and direct offensive as to a situation | of war, a fight for life or death of London as a world financial centre. “The former Conser- vative minister, Captain Walter Elliott, wrote: “Last Wednesday men came back from the city to the House of Commons like soldiers coming down out of the line.” (“Sunday Times” 19. 7. 31.) The “Manchester Guardian” London corre- spondent described the atmosphere: “Behind the facade London is really at high nervous tension. ‘There has not been a time like this since the eve of the general strike’ was a remark made yesterday by a very well- known business man who is usually described as an optimist. The word ‘moratorium,’ with its connotation with the first days of the Great War, is filling people’s minds.” (Man- chester Guardian” 17. 7. 31.) The organ of the labor government, the “Daily Herald,” wrote: “Never since the fateful days of August, 1914, when war or peace hung in the balance, was this country nearer to crash and calamity than during the last seven days. ... Behind the scenes, ministers, great civil servants, bankers and financiers were fighting a grim battle against gerat odds to save not only Britain but the world from overwhelming dis- aster. “When the full history is written, people will be amazed to learn how near we were to the edge of the precipice. “A moratorium in this country was being seriously discussed in some quarters, when it was feared that a German crash would have devastating effects on a number of great financial houses. “Others talked of a National Government as the only way out of the impasse.” (“Daily Herald” 20. 7. 31.) As in time of war, the “union sacree” was openly proclaimed. MacDonald, Baldwin and Lloyd George kept in close daily touch through- out the crisis and the London Conference, thus presenting, in the words of the “Daily Herald,” a “united British front” to the world. The labor minister, Thomas, expressed with striking exactness the conception of social fascism of its role to save capitalism in crisis: “Not since August, 1914, has there been an occasion when things were more serious than they are at the present moment... . I con- scientiously believe that it is a Divine Provi- dence that has ordained that a labor govern- ment and a labor prime minister should face this problem.” (‘Daily Herald” 21. 7. 31.) Nevertheless, despite all these efforts and even despite “Divine Providence,” the London Con- ference ended in fiasco for British policy. The heaviest exports of gold followed immediately after the London Conference. ‘Today a temporary easing of the position may be achieved, following the Anglo-French finan- cial negotiations, and further political conces- sions of Britain to French policy. But none of the factors behind the crisis are solved. The German situation ‘still remains an open ques- tion; and in the wake of the German collapse British capit m is inevitably drawn. If the experts work rapidly, if the inner situation does not earlier break out, the credits may possibly still be maintained, may be transformed into some form of loan; but this only postpones for a short time the greater crisis, with the heavier subsequent payments to be made, Above all. the deeper factors of the crisis of capitalism in Britain remain unsolved. These lie in the whole ecortomic situation of ten years chronic crisis and weakening of forces, the steady decay of production, industry and trade, the falling ex, and rising gap between im- ports and ex the rising budget deficits, the increasing difficulties of the gold standard and enorm nal debt, etc. The extreme emer- gency semi-panic and touch-and-go closenes to a crash during the second fortnight of July, 1931, have laid bare to the whole world the increas- Ing instability and weakening of the whole structure of British capitalism. It will now be necessary to examine in more detail these deeper causes of crisis and the cansaae-s rememective, 5 Daily,. Central Org rker Porty U.S.A. of Manhattan and Bronx, SUBSCRIPTION RATES: New York City. By mat: everywhere: One year, $6; six months, $3; two months, $1; excepting Boroughs Foreign: one year, $8; six months, $4.50. BAD EGG AMBERLAIM ig cH Prepare for Inter’ Youth Day ‘EPTEMBER 8 is International Youth Day. Seventeen years ago this day arose out of the struggles of the proletarian youth against the imperialist war. The revolutionary youth then witnessed the treacherous support which the parties of the Second International gave to their respective imperialist governments. Lead and inspired by the militant actions of Karl Lieb- knecht, the revolutionary worker youth organ- ized its own struggle against the war. To dem- onstrate the international solidarity of the mili- tant cadres of proletarian youth everywh>re the International Youth Day was established. Inter- national Youth Day is a monument to the best traditions of the revolutionary proletarian youth of the world. ‘Today we again face a war. Capitalism is arm- ing; it is building war ships; it is constructing bombing planes; it is developing new poison gases and liquid fire; it is preparing for war. Hand in hand with these physical preparations goes an ideological recruiting for war. A cam- paign of lies and slander against the Soviet Union is designed to prepare the desired war mania, American capitalism is more and more energetically taking the leadership in this cam- paign against the Soyiet Unions The different capitalist organizations are exerting every effort to win the youth, the cannon fodder of the im- pending war, for its support. The Catholic church in Detroit recently organized mass pray- ers for the “poor souls of the persecuted youth” in the Soviet Union. The recent Congress of the YMCA planned campaigns among the American workers’ youth. Military training is being in- troduced universally into all the schools of the country. The socialist party and the socialist youth movement are covertly and openly supporting the capitalist war program. They are following the lead of Karl Kautsky who lays special em- phasis on the winning of the youth for the over- throwing of the Soviets. The official German Socialist youth press openly calls for war on the Soviet Union. The American socialist youth movement is playing a dernagogic game. The American young socialists talk of the introduction of militarism into the school as being “contrary to the princi- ples of our government”. With such phrases they wish to cover the obvious fect that “our” gov- ernment is the government of*the capitalists. With such phrases they wish to fool the workers into the idea that the existing capitalist. govern- ment is their government, the workers’ govern- ment, and that the workers therefore should not fight against it. For the same reason they sup- port that capitalist pacifist cover for the prepa- rations of a new war, the Kellogg Peace Pact. The war preparations of American capitalism against the Soviet Union are accompanied by a war against the living standards of the American workers and especially the young workers. The young workers are forced to set the pace in the most vicious speed-up campaign in all industries. At the same time, they are paid the lowest wages, even lower than the already inadequate wages of the adult workers. But even these wages are being cut. The unemployed youth are being barred from getting even these few crumbs of relief which are handed out by various wel- fare boards and charitable organizations. The young workers are being run out of the cities. Against the Negro sections of the young work- ers there has been initiated on top of all a cam- paign of intimidation through terrorism. The Scottsboro frame-up is a typical example of this campaign. At this moment just as 7 years ago the prob- lem and duty of the young workers is to organize and to fight against imperialist war. The masses of young workers are increasingly recognizing this. This was shown in the successful National Youth Day; it is also demonstrated in the par- ticipation of the young workers in the miners’ and textile workers’ strikes at the present mo- ment, The coming International Youth Day shall serve as a signal and inspiration for a unified mass struggle for the proletarian youth of the world against capitalism and against the capi- + talist war now in the process of preparation against the Soviet Union. ‘The workers throughout, the country and espe- cially the young workers must prepare for huge demonstrations on International Youth Day. The 8th of September must become a mobiliza- : By BURCK Chicago Unemployed Spur Fight For Immediate Relief By E. GARDOS. Hae developments since the funeral of Abe Gray and John O’Neal show, that this mass demonstration of over 100,000 Negro and white workers Was not the climax, but rather a be- ginning yof the coming mass struggles against starvation. The hopes of Mr. Cefmak and his republican, democratic and socialist allies, Nezro and white, that the workers will be fooled with premises, with the few davs suspension of the evictions, have been turned into naught. The numerous demonstrations before the United Charities for more relief to more workers. the stopping of evictions by the tens, show thet the workers are fighting harder than ever. Every Unemployed Branch in the city of Chicago, in- eluding territories nopulated by skilled workers, like Ward 42, of Alderman Oscar F. Nelson, are becoming scenes of increasing struggles under the leadership of the memvloved branches. The struggle started in the South Side by the “back- ward Negro masses” is spreading to the rest of the city. As to the South Side, it is still leading. It is an inspiration to see the enthusiastic response to our slogans, their militancy and what is still more important, the initiative they show in our organizations. Over half of the 3,000 applicants are assigned to the unemployed branches in spitesof the slowness of the leading body. In place of the one big council at 3335 So. State St. six neighborhood branches have already been established and the organization of block committees by the workers is nroceeding at a rapid tempo. Following the Scuth ‘Side Con- ference last Sunday, scores of b!-~': committees will be added to the existing 10 or “%. The Militancy of the Negro W-~kers. A Negro newspaper had to admit the other day that the Black Belt is getting more Red than ever. Hundreds of new workers are com- ing every day to the headquarters of the Un- employed Branch to ask for advice, help and organization, The traditional Forum at’ Wash- ington Park, attended by several thousand workers every night, is an Open Forum for Com- munism. To speak against the Communists at the Forum means to look for trouble: munism is a pass word there and all the free lancers, newspaper men, and fake _ politicians are forced to talk radical, to praise the Com- munist Party in order to get applause, Churches are inviting our speakers to talk to them about the Communist Party. Two thousand Daily Workers are sold every day by a Red Builders Club, and 500 Liberators was the quota for last week to be doubled within a few weeks time. 450 Party applications are in the hands of the Section Committee with 100 of them assigned to units. Those conting in contact with the Negro masses in the South Side can’t fail to see how the fetters imncscd upon them by the bosses and Negro misleaders are being broken to pieces by the blows of Negro and white working class solidarity. f “We are like a hornets’ nest,” said one of tion day of the proletarian anti-war forces. It must become an occasion for the American work- ers to demonstrate their determination to defend the Soviet Union. The militent workers through- out the country must make ‘the coming Inter- national Youth Day an occasion to arouse the masses of the ¢* yet indifferent workers to the realization of the impending capitalist attack against the Soviet Union. The proletarian youth whom capitalism tries to recruit for its army must be recruited for the army of the working class. International Youth Day must raise demands throughout the country embodying the needs of the young workers—Against wage cuts—same wages for the same work—not a cent for war Preparations—all war appropriations for relicf of the unemployed and for social insurance funds—no discrimination against young workers in unemployment relicf—for the six hour day and five day week for the young workers under 18 years of age with pay equal to the pay cf the adult worker doing the same work—for the im- mediate and unconditional release of the nine Negro youths in Scottsboro—for the right to vote for all young workers at 18 years of age. A CENTRAL COMMITTEE OF by c. P., U. 8. A. Com-. them, “and the bosses should beware once we get loose.” Chicago again gives the lie to the bourgeois opportunistic theory of the Negroes being back- ward people. They realize this fact themselves very well. To the Negro worker the solidarity shown is not a gift to be thankful for, from the white workers. On the contrary, they ex- pect it from us. There were no “pleasant sur- prises” on their part to see white workers “con- descend” to the Black Belt for tne August 8 funeral. On the contrary, just because they have confidence in us, it was taken for granted that tens of thousands of white’ workers will come and bad disappointment would have fol- lowed if things would have happened otherwise. Why is this rapid change in the South Side? It is because the Communist Party succeeded to grasp the main link in the chain of the class struggle. We have become. the fearless fighters for unern~‘oyment relief and for Negro rights. While. ur ~nployment-is the main issue, let us not mini-iize ‘the second point and recall what an old N>gro non-Party worker plainly expressed at the Open Forum, “Every Negro must be a Communist because only this Party fights for full equality.” ¢ One more example of the deep changes within a few months: The. South Side branch of the American Party, a fascist organization, organ- ized for the last election, decided to join the unemployed council and brought down their membership list and ‘all paraphernalia to the office. The Negro masses learned their lessons from August 3. History written with the blood of our three martyrs is not a closed page yet. It is only the beginning of our aim to build in the South Side in.a few months unemployed branches of 5,000 members, organized in a net- work of block committees, a Party section with at least 500 members, to draw in 100 organiza- tions into the Unemployed. Council.and last, but not Jeast, to prepare for the coming elections, - when Communist candidates must.run for Con- gress against the misleaders, Oscar DePriest, Jackson, and the other “white men’s Negroes.” Fight Against Social Demagogy and Opportunism. In the struggle to assume the leadership over the’ workers, one can not get dizzy with suc- cess. The unemployed workers, led by the Party, must’ be aware of the danger of social dema- gogy that is assuming all kinds of forms. Here comes the Chicago Federation of Laor with its fake Labor Day parade; there is a recently formed “Chicago Workers Committee of Unem- ployment” of 75 members led by’ Professors Lovett and Director, and Mr. Borders, Mullen- bach and other liberals and social fascists in the A. F, L., League for Industrial Democracy, Civil Liberties Union and the socialist party. We have Mr. Hunter, the head of the United Charities, who succeeded in fooling many mem- bers of the Unemployed Council, by giving first preference to the cases brought down by our branches and other petty favors. In fact, he told the Unemployed Council to notify him of the arrests of unemployed workers and he will use fis influence to get them out, which was done in some instances, There are several ten- dencies within our Unemployed branches show- ing the effects of this poison of social dema- gogy. In many instances these branches are acting as cttorneys fo: ‘he United Charities by taking down those workers that come to us for relief for whatever they can get from the char- ities. In one branch, which was badly ne- glected, the Charities even succeeded to have their own bribed people assume ‘leadership, which meant annihilation of this branch. This is a serious manifestation of opportunism, which must be combatted by the leaders of the Un- employed Council and the Party. But this is not all. Opportunism in our organization manifests it- self in many other ways. Lack of faith in the masses was shown by comrades who, while talk- ing about. drawing in the hundreds of workers who come down to the headquarters for work, fail to do so. They didn't see the “forest from the trees” and bureauctatically waited for a fraction to be established and do things while the masses themselves went out on thelr own Po What Is Social Insurance ? | 5 karat is social insurance? Do workers have so~ cial insurance in the United States? In the capitalist countries of Europe? In the Soviet Union? What measure of security can it bring the working class under capitalism? Is it possi- ble to win social insurance laws from a capitalist government? ‘These and many other questions of vital im- portance to the workers of the United States are answered in the pamphlet, Social Insurance, by Grace M. Burnham of the Labor Research Asso- ciation. The coming winter will see hundreds of plans put forward for patching up the rotting struc- ture of capitalism, Every effort will be made to fool the worke=s by these fake schemes into be- lieving that a patch here or there is all that is needed to fill the dinner pail and start a wild orgie of buying and prosperity. On the other hand the police and militia are ready to shoot down workers who demand real relief, real laws for the protection of the work- ers, as they were used last winter against dem- onstrations of the unemployed, and even now against workers who dare’ to strike against wage cuts in the mines and textile mills, In preparation for the coming winter every worker should inform htnself as to existing con- ditions in the Unted States. This 32-page pam- phlet, Social Insurance, by Comrade Burnham, will give you this information from the point of view of the working class. It exposes the fak- ery of the state workmen’s compensation laws and “Mother's Pensions”. It shows you what to expect when you are laid off at 50 “too old for a job”. It also shows you what the workers of the Soviet Union have won for themselyes in the way of protection and security. This pamphlet costs only 10¢ and can be ordered from Workers’ Library Publishers, P. O. Box 148, Station D; New York City. Unit. section and District agents snould push the sale of this pamphlet which is a splendid propaganda weapon in our compaign for social insurance, initiative, stopped evictions without us knowing about it and organized block committees. Un-= less this tail-endism is overcome, unless the Party core in the unemployed branches is. given leadership (in deeds and not in words!) to the struggle against starvation we will bé faced with the danger of individual actions of desperation, of spontaneous actions on the part of the work- crs, which will lead to defeats and our isolation vom the workers. This must be clearly under- stood and the turn to mass work sharply com- pleted. Developed Struggle to a Higher Plare. The Unemployed Branches must cease to limit their activities to stopping evictions and to get charity for those that happen to call for it. We must develop a systematic investigation of all needy cases to take down to the relief stations and demand that more relief be given to more workers. We must insist that they get free gas, electricity and coal, and resist any attempts to take this away from the workers. Insist that soup kitchens, vacant apartments and public buildings are opened by the city—and adminis- tered by the unemployed workers. To arrange demonstrations before the Aldermen’s: offices, in their wards and local hunger marches, util- izing them to expose the capitalist politicians and bring forth the Party of the working class. We must react to the local issue, demanding here the tearing down of the old dilapidated buildings and schools in this sectiqn, or help organize the workers who lost their savings through bank failures, a rent or bread strike in the others. All this must be tied up with the fight for unemployment insurance and other more advanced demands of our movement. The block must become the very basis of our work organizationally, the center where workers can be mobilized within a short notice, which investigates the territory, draws in every mem- ber into active work, becomes the unit upon which strugr’es for all demands, including the election camnaigns, will be based. This, bound together with local. unemployed branches and with a strong City Council involving hundreds of mass organizations, will become~ the real united front from below under revolutionary leadership. Though the basis of all our activities must be the fight for unemployment insurance and re- lief one can not scparate this from other de- mands, such as Negro riehts, terror, defense of the Soviet Union and demands involving the employed workers. Dozens of emvloyed workers have been reporting at the unemployed branches asking for advice on wage cuts. complaining about small pay and other grievances and ex= press their readiness to join our revolutionary unions. We must seriously consider to put into life the instructions of the RILU, to start a drive for relief for those working one-two days a weck. In one word, while basing ourselves upon the most burning issue, the weakest link in the chain of capitalism, unemployment, and the other weak links, oppression of the Negro masses, we must be able to tie up these main struggles with all the other issues of the class struegle, elways keeping in view the conerete local situation, Was the District Committee correct In raise ing the slogan of doubling the Party members ship by November 7 in Chicago? It will be trebled in the South Side and will be doubled in the rest of the city. Can we do it? Yes, we can, in Chicago as well as the entire district. The steel workers are in a foment, facing wage cuts, the present quiet in the mining fields is one before a storm. The Party can easily double its membership and bolshevize its, rank within the coming few months and establish mass ore ganizations, provided the entire membership, especially the leading cadres, will throw overe board all opportunist tendencies and practices, and all those comrades that can not adopt themselves to the new situation. The South Side events symbolize the tremens dous possibilities before our movement. The difficulties are great, both on the part of the bourgeoisie and on our ideological and organs izational shortcomings. But they can and will be eliminated if we get down te ==> i a