The Daily Worker Newspaper, February 17, 1932, Page 3

Jraskisa Ve Gaethadldy Nader 2 uedbany ty tiered asad A BW haraee cause Aly duce Page inure Chinese Masses in Shanghai Hail Victory of Chinese Red Army with Demonstration Storm Relief Headquarters, Demand Food for Starving Masses In South China City Soldiers at Shanghai Council, Form Revolutionary Imperialists Alarmed; Prepare New Blood Bath BULLETIN “Intimate reports are that if Japan is not able quickly to ac- complish her objective in China proper sh emay be faced with a Communist uprising at home. Her economic situation ts very tense and Communism is stronger than appears on the surface.” The above is from the:latest con- fidential letter sent by the Whaley Eaton Service to American bank~- ers and oxecutives. . 8 . News of the capture of Nanchang and the enveloping of Hankow by the Chinese Red Ar- mies has caused con- sternation among the imperial- ists and their Kuomintang watch-dogs, and jubilation among the Chinese toilers. The imperialists are rushing the re- moval of their missionary and mer- cantile agents from the Yangtze Val- ley in preparation for a war of des- peration against the revolutionary Chinese masses and their advancing Red Armies. In Shanghai the workers stormed the offices of the Citizens’ Emergen- cy Committee in Shanghai Road, threatening to wreck the headquar- ters. The workers demanded food and shelter from the severe cold for the hundreds of thousands of des- ‘titute, starving workers in Shanghai who have been rendered homeless by the savage Japanese aerial bombing of the working-class districts of the city. The demonstration was lead by the Chinese Communist Party, which is successfully’ rallying the masses to the national revolutionary struggle. The workers were viciously attacked by United States and Brit- ish troops and police in the Inter- national Settlement. A Shanghai dispatch to the New York Times reports: “Hurry calls for the police brought. aid, but the authorities are still 'ap- prehensive. Besides the problem of countless refugees, that of unemploy- ment and hunger is becoming acute.” ‘Workers! Demand Hands Off Re- volutionary China The Chinese Workers are refus- ing to starve. They are heroically resisting the imperialist looting and partitioning of China. The workers of the United States, sen- tenced to starvation and privation by the same imperialists who are making war on the Chinese mas- ses, must support the Chinese workers Workers of America! Rally to the fight against impe- rialist war! Defend the Chinese Revolution! Defend the Soviet Union! Organize United Front anti-war committees in your shops, unions and other organizations! {Demand the withdrawal of Amer- jean armed forces from China! ‘Demand Hands off China! Hands eff the Soviet Union! The American, British and Japan- ase imperialists‘are rushing warships against the advancing Chinese Red Army. They are removing their agents from the Middle Yangtze Val- ley. Wusih, Changchow, Kiangyin, Changshu, Soochow and other Chin- ese cities are being evacuated in pre- paration for the bloodiest attack yet launched against the Chinese masses. ‘The alarm and desperation of the imperialists over the failure of their Kuomintang tools’ to block the re- volutionary mass movement is clear- ly reflected in the following Shang- hai dispatch to the New York Times: Red Army Controls Most of Kiangsi Province “Nanchang, the capital of Kiangsi Province, has been captured by Chinese Communists, which gives the Reds virtual mastery of the entire province except the Yangtze River port of Kiuklang and a small strip of railway southward to Nanchang. (Nanchang is about 400 miles southwest of Shanghai and a little more than 300 from Nanking.) “Tt was in Kiangsi that Chiang Kai-shek’s Government waged @ des- perate anti-Communist campaign Jast Summer at a cost of 100,000 soldier and civilian lives and more than $250,000,000. The attempt to defeat the Red Armies proved vain, despite continuous deceptive official announcements from Nanking that the government had been victorious. Japan Hopes For Intervention “The situation around Hankow and Wuchang is growing increasingly perilous as the Reds draw the sur- rounding net closer and closer, In- timations from high Japanese of- ficial circles indicated yesterday a hope that this revival of a Com- munist threat of domination of the interior Yangtze Valley might pro- voke intervention by the treaty pow- ers in an effort to check the ‘Red menace’, thus aligning the world’s major powers on Japan’s side and supporting the advisability of using force in China. It is believed, how- ever, that this hope will certainly prove vain, because Japan by her precipitate action in Shanghai has alienated even that part of foreign opinion approving her Manchurian adventure.” ‘When the New York Times refers to joint armed intervention of the imperialists as of the future and improbable at that, the New York ‘Times lies. The American, Japanese, British and French imperialists are all engaged at this very minute in making war on the Red Army of the Chinese Revolution, on the revo- lutionary Chinese masses. ‘The Wall Street imperialists are, attempting to hide their murderous role in the bloody war on the Chinese Revolu- tion! American workers! Demand the immediate withdrawal of Amer- ican armed forces from China! Workers! Prevent the transport of munitions to the Far East! Soldiers At Shanghai Elect Revoln- tionary Councils An Inprecorr dispatch from Shang- hai reports that the defense of the working-class sections of that city against the Japanese imperialist murderers is shifting more and more into the hands of the revolutionary workers; “The recent struggies at the point of the bayonet as the result of which the Japanese suffered se- vere losses and were driven back, were conducted almost exclusively by revolutionary workers and stu- dents. Revolutionary working wo- men are also reported to have taken up the rifles dropped by the dead and wounded, and to have contin- ued the struggle against the Jap- anese, The struggle against the Japanese is having the further re- sult that the revolutionary elements in the ranks of the Nanking regi- ments are rapidly increasing their strength, The soldiers of the 19th Nanking Division have elected a revolutionary Soldiers’ Council and issted a manifesto to the people of China in which they promise to fight to the death against the mur- derous Japanese invasion and call upon the masses to proclaim a reyo- Iutionary general strike and to take up 2 revolutionary guerilla struggle in the rear of the Japanese, blow- ing up bridges, attacking the Jap- anese lines of communication and im general doing the invaders as much harm as possible in every conceivable fashion. Kuomintang Cliques Attempting Betrayal. Using the socalled neutral Interna- tional Settlement as a military base, the Japanese are pouring troops into Shanghai for a new and bloodier at- tack against the workers and soldiers defending the city. Seven Japanese transports arrived yesterday with ad- ditional troops. The Japanese now have more than 77,000 troops in Shanghai, in addition to the marine forces of the Japanese fleet in the Whangpoo River. The United States and British forces have set up barri- cades against the Chinese masses. Pretending to be supporting the de- fenders of Shanghai, both the Nan- king and Canton cliques of the Kuo- mintang are attempting to rehabili- tate their influence with the masses. At the same time, both cliques are maneuvering with the imperialists for the disruption of the defense. Impe- rialist press dispatches from Shang- hai report “a semi-official ‘Chinese government spokesman” as predict- ing “a retreat of the Chinese forces defending Shanghai because of lack of munitions.” Imperialists In Sharp Clash Over Spoils. A sharp clash between the impe- rialists over the division of the loot in China occurred yesterday at Ge- neva. The League Council decided to “address a final appeal to Japan to cease hostilities at Shanghai.” The Council is holding over the Japanese the threat of a special convocation of the League Assembly to take up the question of an economic boycott against Japan. ‘The British imperial- ists are especially concerned over the Japanese threat to seize the loot of other powers in China, ‘The British Cabinet is considering calling an emergency meeting to “consider what action Great Britain 1s prepared to take” against the Japanese. Sir John Simon talked with U. S. Secretary of State Stimson over the transatlantic telephone. The governments of Can- ada, Australia and New Zealand are reported to be gravely concerned over the Japanese threat of conquests in the Pacific. The British Consul Gen- eral at Shanghai yesterday filed an- other protest with the Japanese. This is the fourth British protest since the Japanese began their attempt to seize Shanghai and threaten British and United States loot and interest in the Yangtze Valley. The United States is considering making another protest. Manchurian Partisans Wage War On Japanese, Chinese tools of the Japanese yes- terday gathered in Mukden, Manchu- ria to carry out the Japanese plans for the formation of an “independent” Manchurian state. Proposals have been revived to have the state headed by Henry Pu Yi, the former “boy emperor” of China, In the meantime, over 200,000 partisan troops are wag- ing heroic guerilla warfare against the Japanese invaders in Manchuria. LEGION STARTS HOAX CAMPAIGN FOR 1,000,000 JOBS NEW YORK.—Again the American Legion comes to the service of the Hoover hunger government by trying | to spread the illusion among the un- employed that 1,000,000 jobs can be created when production keeps going down and hundreds of thousands daily lose their Jobs. ‘The Legion with the support of the A. F. of L, strike-breaking officials today “officially? launched a hoax campaign promising “Jobs.” An example of the fakery of the Legion is shown when they say that they have enlisted 5,000,000 “in a ver- itable army” to hunt out and create jobs. In this 5,000,000 they count 3,500,000 members of the A. F. of L., as part of the “veritable army” look- ing for jobs for others. The fact is that at least half of this 3,500,000 are themselves without jobs and many have been hunting for jobs for two years without being able to find them. Not only are there no jobs, but workers who now have them face be- ing discharged as production goes lower and as capitalism enters sharp- er phases of crisis. ‘The purpose of the “job” hunting ballyhoo is to keep the workers from fighting for unemployment insurance and immediate relief by the promise of work. No amount of “war time” stunting by the American Legion will feed the unemployed. Mass Pressure Forces Release of a Worker Jailed for Vagrancy (By a Worker Correspondent) MUSKEGON, Mich—On Jan. 25 the Welfare Director or ‘ ‘Poor- master,” in Muskegon Heights in- structed the police to lock up John Recob, an ex-service man working for welfare scrip. The charge was vagrancy. Judge Stanley indorsed this move. The International Labor Defense branch found out about this and sent a committee to investigate. ‘The committee found nothing against the worker that could be constructed as vagrancy, but they did find out that Recob was working two days per week and getting scrip valued at $4.50 to live on. He has a wife and 3 small chil- dren. He worked shoveling sand on a city job. After buying milk for the children and kerosene for the stove nearly half of the “wages” was gone. On the day set for the trial the workers massed to the court, The judge, seeing the aroused workers, at once dismissed the case. 12U.M. W. MINELOCALS AT. RANK AND FILE CONFERENCE PLAN MI LITANT FIGHT (CONTINUED FROM PAGE ONB) a force with great potentialities for further development, Maloney sent his agent, Shuster, to speak at the conference and apologize for the sell out of Shuster at the Indianapolis convention. _ Delegates and miners attending the conference condemned and ex- posed Maloney and his fake opposi- tion to Boylan, Lewis and the coal operators. The conference was also addressed by Kentucky miners who were en- thusiastically received and a collec- tion was taken for the relief of the KentuckyTennessee striking miners. The locals represented are to take up the matter of relief for the Ken- tucky-Tennessee miners and ar- rangements for meetings. Elect Delegates to Mooney Con- ference, A resolution protesting against the murder of Harry Simms which was sent to the governor of Ken- sedition laws of Pennsylvania. This resolution called upon anthracite locals to elect delegates to the Mooney Defense Conference to take place Marche 6, at 2 p. m. at. - Wilkes-Barre, at 139 South Main Street, A resolution was also adopted en- dorsing the call of the New York lo- cals of the American Federation of Labor for a referendum vote on un- employment insurance and the lo- cals represented will give their sig- natures for the referendum. To Prepare for Strike. ‘The conference concluded with the election of a broad executive com- mittee with representation from each local of twenty-two members which wes authorized to spread the rank and file movement and the calling of a conference of all locals in District 1 to prepare for a strike to enforce their program and demands. A big meeting protesting against the murder of Harry Simms has been arranged for Friday in Philadelphia, Feb. 19, at the Broadway Arena, Broad and Christian Streets. William %. Foster, Secretary of the Trade Union Unity League, will be the “Peace” Societies Aid Boss War Preparations in Geneva NEW YORK.—Aiding the diplomatic gestures of the im- perialist delegates at the Geneva “disarmament” conference to hide their war preparations against the Soviet Union and for the redivision of colonies are the so-called unofficial ob- servers, turned chiefly on the official spokes. men of the imperialist powers. Lit- tle has been said of the “unofficial” spokesmen, who are there in great numbers, especially from Americs, ‘These “unofficial” spokesmen, how- ever, became a center of attraction Monday, following a lull of the week- end holiday, when three members of American “peace” and church soci- eties spoke over an international radio hook-up. The role of the so- called peace societies of rallying the masses in support of the imperialist’s war programs and away from the re- volutionary struggle against war thru their subtile mouthing of peace slo- gans was clearly exposed in these three. ‘The speakers were Michael Francis Doyle, chairman of thhe American committee coordinating activities at Geneva; Mrs. Frank Day Tuttle, director of the League of Nations Association, and Rev. J. F. Thorning, of the Catholic Association for In- ternational Peace. Saying not a word about the war now going on in the Far East and conveniently overlooking the propo- sals of the Soviet Union for imme- diate and total disarmament, Mr. Doyle prattled about a new era of “‘world democracy” and “peace” which he said was being ushered in b; the conference. In calling on the American people to support America’s policy of speak~- ing of disarmament while American gunboats, marines and soldiers are being rushed to the Orient, while U. 8. troops are patrolling Nicaragua, Mr. Doyle glibly said: “Never before in any congress of nations has pub- lic opinion been so recognized, “The American people,” he said, revealing the smokescreen nature of his pacifist phrases, “should have pride in thé part taken by their representatives and should not falter in their support.” The spotlights of capitalist journalism have been ALL UNITS MEETING TONIGHT, Collect tonight—save the Daily Worker. Your collec: tions will determine whether or not we go back to a four- page paper. Tonight’s col- lections at unit meetings will do it. Collect and contribute to the maximum, armaments was that they were “an intolerable financial burden. She, lke Mr. Doyle, urged support of the American hunger government and the League of nations as an instruy ment of peace. But from the begin- ning the League of Nations has ap- proved of the Japanese war because it meant the first step toward the redivision of China, because it aims at crushing the Chinese Soviets and is the beginning of the organization of war by the imperialists against the US.S.R. Such is the instrument of peace that Mrs. Tuttle and the socialists the world over call upon the workers to support. Father Thornton, the priest, in face of increasing support among the imperialist powers to the Tardieu world anti-Soviet police force plan, Ued in a brazen manner when he said, “There are few indeed who still hold the slogan ‘if you want peace, prepare for war’.” The plan proposed by the reverend father was the us- ual plan of the religious dopesters. He advises workers to prepare for the knigdom of god. Workers must not be fooled by representatives of the so-called peace societies, the church and the social- ist party, who, although they spout anti-war slogans, are the chief un- dercover men of the imperialists helping to mould the mind of the messes for war against the colonies and the Soviet Union, and to keep them from teking up a really effec- tive revolutionary struggle against imperialist war. The only way out of imperialist war for the working masses is the revolutionary way. Organize now | anti-war committees in the factories, | Shops and neighborhoods. Protest in jmasses against the slaughter of Chinese workers and peasants. De- fend the Soviet Union and the Chin- Mrs. Tuttle’s chief criticsm against | ese Soviets. CHINESE COMMUNIST TELLS OF STRUGGLE OF CHINESE-JAPANESE MASSES ON IMPERIALIST WAR (CONTINUED FROM FAGE ONED students and all the city poor. In many isolated territories this resist- ance in spontaneous, but generally it is organized and lead by the Chin- ese Communist Party ralying masses around the slogan: ‘Organize Na- tional Revolutionary War of Armed People Against the Japanese and othe imperialists and their watch- dog the Kuomintang!’ “The soldiers of the Nanking gov- ernment refused to obey Nanking or- ders to withdraw from Shanghai and not fight the Japanese invaders. The soldiers have joiied the Chinese masses in holding back the invaders under the slogan of the Chinese Communist Party of ‘Armed People’s Defense of Revolutionary Shanghai!’ In Chapei, Shanghai, the Nineteenth Canton Army was able to organize a stubborn resistance against the Jap- anese invaders with the help of large masses who with growing enthusi- asm are defending Chinese independ- ence. In Canton, Swatow and all big Chinese towns, especially the river and sea ports, war is now going on between the Japanese imperialists and the Chinese troops and armed peo- ple. Masses Farious at Kuomintang Be- trayers. “This is one phase of the war now raging in China, Another phase is the sharpening possibilities of open conflict between the Japanese and American imperialists over the di- vision of the spoils and the chance to exploit the Chinese people and their natural resources, “The Chinese masses are infuriated by the traitorous policy of the Kuo- mintang Nanking government re- garding the Manchurian invasion. During the past three months, the Chinese workers have sacked Nan- king government and Kuomintang headquarters in many provinces of China. Nanking students and city poor in December destroyed all the Kuomintang offices and the Kuo- mintang newspaper offices in that citl, shooting a member of the Kuo- mintang Central Committee and wounding two others. Sack Kuomintang, Government Offices. “In Shanghai in December the masses sacked all Kuomintang head- quarters and the offices of the city government, Arming themselves, they forced the head of the Shang- hat city government to resgin. In Foochow on December 3, there was a general strike of workers, students and small merchants against Japan- ese imperialism. There was a simi- lar strike in T:0 Yark. Chinese Soviets Gaining Power. “Our Chinese Soviet Government with its Red Army is leading the na- tional revolutionary wer against the Japanese and all other imperialists. The Chinese Soviet Government is constantly strengthening its position. ‘Wherever the Chinese Red Army has been there no longer exists imper- ialist domination and oppression of the Chinese masses. The Chinese Soviet districts already inclffiude the major part of the provinces of Kwangsi, Huplen, Honan, Hunan, Pukien and Anhwej. “Over eighty million people are now living in the Chinese Soviet territory, which include more than one-sixth of all China. The Chinese Red Army now numbers over 350,000 while in- cluding the Young Guard, and the Red partisans, the Army totals a few million. It is fighting against the native and foreign exploiters for So- viet China and for the defense of the Soviet Union. The Chinese masses know that the Soviet Union is their best friend, Present developments in China emphasize the great danger of imperialist war against the Soviet Union as the Japanese seizure of Harbin proves. “Syerywhere American, along with Japanese and other imperialist forces, are attempting to crush the resist- ance of the Chine People. American warships often bombard towns in the Chinese Soviet territory and the Chinese Red Army along the Yang- tze River. Today, in Shanghai alone, there are 19,000 troops and marines of the United States, Britain and France who threaten to attack Chin- ese masses demonstrating and fight- ing against the Japanese invaders. The movement of 100 United States battleships to Hawali is a sinister threat against the Chinese people. Japanese Toilers Rallying to Fight On Own Imperialists, “You ask about the unit of the Chinese and Japanese workers,” stated Ming in reply to my question. “At the beginning of the Manchurian invasion our two Communist Parties issued a joint manifesto against Jap- anese imperialism and for a united front of the workers and peasants of both countries in opposition to the common enemy. Japanese and Chin- ese revolutionary unions issued a similar call, The Japanese toilers are carrying on a heroic struggle. In Korea, Red partisans are carrying on @ war against Japanese imperialists, In Pukshien, the Japanese Com- munist Party lead an uprising against the Japanese government. Recently 300 Japanese soldiers in a regiment sent to Manchuria rebelled, refusing to slaughter Chinese workers and peasants. In spite of the bloodiest terror an¢ ‘iegality against the Jap- anese Communist Party, many dem- onstrations haye taken place in To- kio, Osaka and other parts of Japan against the Japanese government and the invasion of China, “The mass movement against this war !s only at the beginning. We are convinced that the farther we go the wider the movement will spread among the Japanese masses against their imperialists, and on the other hand the mass upsurge of the Chin- ese people against the Japanese and other imperialists will continue to grow. Of course, much depends on the further work of the Communist Parties of both countries, and their ability to mobilize the toiling masses, also on the military developments in the Far East. “Also much depends on the sup- port the Chinese people get from the workers and masses in the other imperialist countries to stay the bombing planes and gunfire of the impc-ialists that would mow down the ranks fighting for a frce> Soviet China.” . “The labor movement will gain the upper hand and show the way to peace and " el Strike Comm. Plans Section Meetings Thruout Strike Area BULLETIN WASHINGTON, D. C., Feb. 15.— The liberal writers committee that was kidnapped and driven out of Kentucky after two of its members were severely beaten was informed here after renting the Press Club auditorium for a mass meeting Tuesday that the Negro miner who appeared before the Senate Com- mittee would not be permitted to speak. It was decided that the commit- tee would go ahead with the meet- ing and insist that the Negro miner speak with the others. Negro work- ers in the audience will also de. nounce Jimcrowism as a weapon of the coal operators against the solidarity of the workers. eee (CONTINUED FROM PAGE ONE) area at the murder of Simms cannot be exaggerated. Many strikers’ wives are still weeping over his death as if he were a son. The freeing of the murderer and the calling in of tin- horns (National Guard) has added to resentment and is convincing larger and larger sections of the Kentucky and Tennesee workingclass that every agency at the command of the operators is being used to crush their heroic strike for a living wage. The cringing fear of the Kentucky ruling class was revealed in all its naked cowardice yesterday when a full panoply of army, courts, police, state, county and city governments, newspapers and fascist elements in the American Legion and U.M.W.A. united to prevent miners from com- ing into Barbourville to pay their last working class horiors to Harry Simms, their murdered strike leader. U.M.W.A- Leader Endorses Murder James Shellhorse, local U.M.W. A. leader, openly expressed satis- faction at the murder of Simms. In a statement printed on the first page of the News Sentinel he said: “I, as one member of the United Mine Workers approve of the at~- titude of the law enforcement agencies in Kentucky in driving out the Red movement.” The News Sentinel says further: “Shellhorse says the United Mine workers would help the Kentucky authorities in driving out Commun- ist organizations and thet Sheriff Blair, Sheriff Broughton, are dis- tinetly friendly to the United Mine ‘Workers and have given him (Shell- horse) a little booklet containing let- ters of re-cognizance which allows him absolute freedom in Bell and Harlan Counties for the pursuance of his work. These letters are from sheriffs of both Bell and Harlan Counties, Mayor of Pineville and John Pursifall, clerk of Bell County.” Not sixty as capitalist newspapers say, but several hundred National Guardsmen from Harlan county were called in by Governor Laffoon to smash the memorial demonstration. Although the operators were fearful of calling out the Barbourville Na- tional Guards because many local guardsmen are sympathetic to the strikers, hundreds of store-keepers, lawyers, doctors, city and county of- ficials, students and loafers were dep- utized and provided with guns. Fol- lowing the example set last Wednes- day in Pineville, scores of school boys were also deputized and carried re- volvers in their hands as they pa- trolled Barbourville streets. It sounds incredible but it is an ab- solute fact that Barbourville officials told school-boys the reason they were deputized was that the Japanese army was about to attack Barbourville and they had to defend their homes against the vandals. Students be- lieved the lie and many were furious when they learned they helped break up the memorial meting. Evry deputy was ordered to shoot to kill any min- er who insisted on viewing the body of Simms lying at the undertakers’ and no one was permitted to walk on the streets within hundreds of yards of where the body lay. Every us, truck, railroad, car, wagon and automobile approaching Barbourville from both sides was stopped and searched for miners. Union cards were taken from all miners and they were warned to return home immediately or be shot on the spot. It is probable that Simms’ fingerprints were taken by Barbourville police, A police offi+ cial told the undertaker that he was going to do this and when the under- taker went to the hotel to as of ‘Dorothy Wilks, W. I. R. nurse, and re~ turned to the establishment with a refusal, the policeman had already left. At 2:45 when the train for New York pulled in, the body was rushed to the depot by police. Only a miners’ committee of two were allowed to ac- company the body to the train. Build up the Daily W orker permanent sustaining fund. Get your pledge cards and contribute now as much as you can to Saye the LOS ANGELES, Cal., Feb, 16. — Additional documents of the Workers Party which were confiscated years ago, were read as the trial of the 44 workers which was reopened at Long Beach. Judge Wallace closed the trial to the public because of the many tele- grams demanding dismissal of the cases, Attorney Leo Gallagher fight resulted in opening tomorrow’s session. Hynes, head of the Red Squad, de nied any police brutality despite the defendents exhibiting bruises. The trial began February and after police arrested 100 workers on Jan 15 at a Jecture on the “Economic Cri sis,” by Sam Darcy, district organiz of the Communist Party. The char- ges for attending this lecture are. Try to Close Calif. Trial to Publie; Fear Mass Pressure “will assembly to violate the Crim- inal Syndicalism Act,, and the trial has been turined into an open at- tempt to outlaw the Communist Party. While days have been spent 1b: bosses’ court in reading from literature and pamphlets in order to fasten charges of “belief in force and nee “on the workers and the munist Party. Protest resolutions should be sent at once to Goyernor Rolph, of Calif- |ornia, the mayor of Long Beach and | the presiding pudge at the trial, Charles Wallace Cour Geoeon Si building, Long Beach. Rush defense funds to the International Labor Defense, 120 Winston Street, L Angeles. Over two hundred or- zations have alreedy wired pro- (CONTINUED FROM PAGE USED gigantic wave of paper money infla tion that Wall St. has ever embarked on ‘The provisions of the bill allow for the “liberalizing” of the rediscount requirements of the Federal Reserye to the extent of permitting it to ac cept commercial paper prohibited from being rediscounted |'This will eause a flood of paper money because the Federal Reserve is allowed to issue money up to 40 per cent of the vaiue of the paper which it accepts for discount. ‘The law that a gold reserve of 40 per cent must be held against all paper mon ey issued will also be revoked al- money with nothing behind it but the obligations of the United States government which is already faced by a budgetary deficit for 1933 al- most of $2,000,000,000. A third provision permits the Fed- eral Reserve to grant loans to tndi- vidual or pooled banks on the strength of their own notes whereas first class commercial paper formerly required. The result of this unprecedented inflation of currency will be to pro- duce untold hardships for the work- ing class. The increase in money will cause a depreciation of the value of the dollar. This cut in the pur- chasing power of the worker's al- ready miserable wages, if he gets any wages at all, will be still further deepened by the fact that together with the depreciation of money, the prices of all articles of consumption will jump immediately, The working class will be caught in a double scis- sors of actual and concealed wage cuts through depreciation of the dol- lar and rise in the cost of living. This disastorus effect of infla- tion on the working class was ad- mitted by Representative La Guar- dia as reported in the New York Times yesterday, who said: “If inflation is necessary, call it inflation. But I say to you that in this instance the entire burden of inflation will be put upon the wage earners of the country. It will cost them billions of dollars.” ‘The provision allowing the issue of money on the strength of government obligations is not only an inflationary measure designed to put the burden of the crisis on the shoulders of the working class, and a desperate at- tempt to get out of the crisis but is also a move in the financial war be- tween the United States and France. Its purpose is to yield the U. S. government $750,000,000 of “free gold” to meet the withdrawals of French financiers. This antagonism between the United States and France was clearly expressed by Representative Goldsborough of Maryland who was reported to have said in the House of Representatives yesterday: “I told this gentleman that before the end of the week Congress would have enacted a bill to furnish all the gold we need and France could take her gold and go to hell with it.” France is not only putting pressure on the United States in order to force it te accept its position on the war debt question but also because Wall St. has consistently violated the agreement arrived at between it and the representatives of French finance, Lacour-Gayet and Farnier, last Octo- ber when France agreed to end its raid on American gold in return for @ cessation of the easy money policy of the Federal Reserve Banks. This agreement was broken by American of the deepening crisis. In return, French bankers began their raid once again on American gold. In the month of January alone they took $83,718,100 of the $107,638,600 shipped from the United States to Europe dur~ ing that month. Of the $33,689,000 sent to Europe last week, $30,926,020 went to France, This movement of gold to European countries outside af France is due to the pressure which France is exerting on them in order to make them fall in line with her attack on Wall St. and also because of the “dollar panic” which has de- veloped in Europe as @ result of the inflationary policy of the United States. ‘The crash of the banking system of the United States with a total wreck- age in 1931 of 2,290 banks involving deposits of $1,759,484,000 was the most complete in the banking history of the country, The process of bank failures continued after the organization of the National Credit Corporation. Even the most recent step taken in frantic terror by Wall St., the organ- ization of the Emergency Recon- struction Finance Corporation, has heretofore | lowing the Federal Reserve to issue | was | bankers under the tremendous blows | PANIC STRICKEN WALL STREET se RUSHES THROUGH INFLATION ACT failed to stem the tidal wave of bank failures. The Hoover inspired ¢am- |paign to prevent “hoarding” was also resorted to and also failed It was found that even the esti- | mates of Wall St. as to the “needs” |of banks and industries on the verge of bankruptey were too low. The | $2,000,000,000 allotted to the Finance Corporation was found to be pouring into an empty hole with absolutely no jeffect on the financial and industrial This ‘Thursday an emergency con- ference was held with Wall St. finan- clers, President Hoover and General | Dawe president of the Finance Cor- poration. The details of this confer- ence were refused publication on the Noor of the House of Representatives | yesterday, In the Whaley-Baton Let- | ter Service, a letter that is sent out |confidentially to business executives, |the details of this conference were jgiven and a measure of the panic with | which Wall St. is facing the deepen- | ing crisis was brought out. The letter stated: “There WAS IMMINENT DAN- GER OF THE UNITED STATES GOING OFF THE GOLD STAN- DARD.” It says further that Wall Street has “been presented with the ultimatum: This or ruin.” So ecriti- cal is the sitmation that the letter speaks not of inflation but of “averting disaster.” The letter far- ther states that “The burden of (governmental) debt is so great that it is unmanageable unless there is a change in the purchasing power of the dollar, Le., am terease in gommodity prices,” TEACHERS’ PAY CUT IN OREGON PORTLAND, Ore.—Portland schoo! teachers have received @ 26 per cent cut to go inte effeet this fall. The school board is issuing a series of short term notes to the amount of two million dollars to cover the July payments for six months due to the teachers. This is a silent admission that the banks have refused a loan to the board and creates a strong possibility that they will not be paid. ‘Tax collections have fallen off about 16 per cent of the antcipated figure | this year, adding to the crisis in the school board funds. Martha Jonhon, 40, @ school teach- er, unemployed for two years, des- perate because of debts, committed suicide here today. This should be observed by the teachers as a lesson to be prevented by militant action on their part. The leaders of the so- called “Teachers Union” finds funds to spend on radio broadcasts, but have not said anythirg about resist- ing the wage-cut, Teachers should organize their rank and file com- mittees to prevent the cut and for payment of their wages, When the Winter Winds Begta to Blow You will find it warm and cosy — Camp Nitgedaiget You can seat tm the proleterien fomradely stmonphere provided in the Hotel vou else find it well heated with steam bent, hot water and many other ime provements. The food is and fresh and especially well prepared, SPECIAL RATES FOR WHE. ENDS 1 Day Wor further information cal) the— COOPERATIVE OF FIO 2800 Bronx Park Bast Tel—Wsterbrook 8-1400 Do the places where you spend your money advertise in the Worker? ASK THEM TO DO Mm SEND US THEIR NAMES! Daily. chlorker 50 E. 13th St., N.Y, &