The Daily Worker Newspaper, May 15, 1933, Page 7

DAILY WORKER, NEW YORK, ' ne ne RELIE 1933 Page 5 a TO MEET: INFLATION. PRICE: a very militant character, as in lowa ai present. Here we wish to deal primarily with the Roosevelt program regarding the regulation of production, wages; hours of labor, etc. These plans are not yet completed and in some details there may yet be certain changes. This “revolutionary” But the outline of the program is already clear. program is presented in the form of a departure from the former practices of capitalism and wholly in the interests of the masses. In reality it is wholly in the intersets of the capitalists. This program is put forward as a means to get out of the present crisis. A TURN FOR THE WORSE The truth of the matter is that the Roosevelt adminis- tration and the capitalist class as a whole are quite wor- ried. ‘The much heralded turn for the better has al- ready brought an admittance of a further fall in produc- tion in the month of March and a very substantial fall in the dollar. Not a single problem that existed at the time when Roosevelt took power has been solved. On the contrary, the crisis is growing sharper and the whole situation has become very much aggravated. The New York “Times” reported on April 22, that the business index for the week ending April 22, was at 54.2, or near- ly 46% below “estimated normal,” or only slightly above the lowest point for 1932, Building construction, the Annalist “on April 28 stated, was for the April daily average “10° below the astonishing low figure for March.” : The object of..the proposed legislation is to carry through further attacks on the living standards of the masses and at the same time to create new illusions that will facilitate the carrying through of these attacks with the minimunt?of resistance on the part of the workers, It is presented as 2 “humanitarian” program against the “money changers.” But it is in reality a mouthing of worn out phrases to cover up the old methed of shifting the whole burden of the deepening crisis on the shoulders of ihe masses. (Since this was written there has been a flow of “pros- perity ballyhoo” against which President Roosevelt spoke in his speech Jast Sunday but which is in reality promoted by the administration in the fine division of work which is being established, ‘The press is filled with so-called reports about increased production and “voluntary” wage increases. What are the facts? ‘The slight increase in production especially in the steel industry is not the result of any basic improvement in the economic situation. It is due to buying which was delayed during the banking holiday, seasonal increases which by themselves would be below normal and above all specu- lative buying in the expectation of rising prices, ‘The auto industry for example according to “Iron Age” has already bought steel for use up to the third quarter (October Ist), We can therefore look forward to a big drop in production very soon. This foundation of sand % the basis for the prosperity propaganda. Regarding wage increases, First, this comprises an in- significant number of workers, Secondly, much of this increase is accompanied by “adjustments” in hours up- ward, Thirdly, in some plants where some operations are yesumed wages were so low that the bosses fearing strikes, “voluntarily” “gave small increases to avoid giving bigger ones. ‘Thus we see. that President Roosevelt no less than his jpredecessor is trying to fool the masses with “prosperity” ballyhoo.— Edit. note.) THE PRODUCTION-LABOR PROGRAM ™ * What does this latest production-labor program con- sist of? First, it claims to undertake to organize plan- ned and controlled production, Secondly, as an incentive for the capitalists it proposes to guarantee profits. ‘Then it proposes that the hours of labor be cut down te 30 hours. (this is still under discussion) and together with BEN GOLD, seeretary of the Needle Trades Work- ers’ Industrial Union. this to establish 2 minimum wage. Next, to inaugurate 2 public works program. it proposes to organize Boards to regulate not only production, but also hours and wages. And in connection with this whole program, there is to be undertaken a gigantic inflation program. With one stroke the Roosevelt government has_slashed the ‘living standards of every workingman and working- woman. Through the inflation policy which reduces the value of the dollar and raises the prices of all com- modities in order to increase profite, the wages of the workers and the relief given to the unemployed have un- dergone a great shrinkage. _ Already the official figures show that in the first day after the announcement of this policy, prices have gone up 10% and the commodities most vital for the every day needs of the masses by even more, This brings a new era of exploitation of the masses of workers through a reduction of real wages, as nominal wages continue lagging behind the rising cost of com- modities. This will be. followed by even bigger in- creases in prices as the inflation policy is developed. INFLATION PROGRAM--AN ATTACK ON LIVING STANDARDS Senator Thomas, of Oklahoma, one of the chief in- flation proponente, says openly: “My purpose is to add another plan to raise the commodity prices of the farmers and the producers of raw materials,” according to the New York “Times” of April 25, 1933, Only a hand- ful of the very rich will gain through these meazures. ‘Ihe masses will be the losers. Wages and relief can ‘ny less. Small deposits and insurance policies are worth Jess. ‘The farmers are made to believe that they will profit by high prices. But this is a2 fraud. The big speculators and financiers will profit, The small farmer whose dollar is today worth 43c, according to March price in- dexes, will have to pay higher prices for the goods he needs. ‘The Roosevelt inflation program is a universal attack on the living standards of the masses. ‘The wages of the workers are also being lowered through sales taxes, which are introduced in many states, among which are New York, Illinois, etc. Naturally this whole program is not separated from the whole international position of the United States. * Tt is clearly a program which has in mind the quickest possible mobilization for war. ‘The intended powers to the President under this measure, and the powers already given to the President, establish a dictatorial power for the. rapid carrying through of the wishes of finance capital, But we shall here limit ourselves to the -con- sideration of these measures only with regard to the in- ternal effects. PLANNING IMPOSSIBLE UNDER CAPIT- ALISM Fizst, as to control of production and planning. This has been spoken about and tried in other capitalist coun- tries. It is an attempt to utilize the advantages of plan- ning in the Soviet Union under capitalism. It also aims to create illusions that the capitalists here will be able to solve the problems of unemployment as they have been solved in the Soviet Union. But this will be impossible in the United States as it has proved impossible in other capitalist countries. ‘The capitalist system is based upon anarchy in production, It is production for profit. It is the quest for profits which is the driving force and not service to the masses (the latter is the underlying principle in the Soviet Union). ‘The growth of monopolies under capitalism, the driving out of the small capitalists, does not do away with com- petition, with anarchy in production, On the contrary, it introduces it in new and sharper forms, ‘The big capitalists being more powerful, carry on this competition with more deadly effects, And internationally this cul- minates in imperialist wars, What will result from all this will be state subsidies to the big capitalists who will be able to compete with the smaller capitalists, and who will also attempt to sell their products in markets now occupied by their competitors in other imperialist coun- tries. ©, Dhis wall, aoc salve the problems of capivalism, 1d 6 © will only mean greater profits to the big paid for by the 1 nd an accentu of a new world imp THE 30-HOUR WEEK 30-hour weck and minimum Wage proposal, As to the The 30-hour week the hours lost is the old Hoover stagger plan. ‘lhe Black Bill does not carry any wage a general wage-« utting scheme, inasm s of the Bill (includi by most supporte turers) that workers’ wages are to be 1 Green “admitted there might be a temporary in Weeki, earnings under a shorter work weck,” according to the Daily News Record, April 27, 1933. And Ralph W. Robey, financial editor of«the New York “Kvening Post,” wrote: “There is a danger that because of » the shorter hours the employers would be inclined to reduce wages.” And the Daily News Record reports that in mills where wages now average about $12, “it is felt there would be a compromise so that wages in question would be about $9,” a reduction of 25°. In many cases it would be more. And ‘Textile World, employers’ organ, admits that the Black Bill would mean “a gigan- tic wage-cut.” ‘The proposal of the ‘Trade- Union Unity League, which made this an amendment to the Black Bill through its representative appearing before the Senate. Judiciary Committee, which ,held hearings-on this bill, was re-, jected. ‘The ‘f.U.U.L.,-in its amendment, also proposed 2 minimum wage,proposal. ~But-the minimum wage pro- posal of Roosevelt without guaranteeing no wage reduc- tions side by side with the reduction of hours, means . that the minimum wage will become-the maximum wage. It wil gesvlt in wholesale. wage cuts for. the greatest portion of the workers, . Furthermore, the - heayy~infla- tion which accompanies this bill, will mean in practice that while the minimum wage will remain fixed in -dol- lars, the actual standard of living will continually de- crease as prices rise. President Roosevelt, in his address before the Cham- ber of Commerce of the U. S. appealed to the capitalists to increase wages “insofar as it lies in their power.” ‘These are almost the identical words of President Hoover in his conference with the employers immediately follow- ing the beginning of the crisis. We now know tke re- sults. The workers must fight for higher wages in order to force the capitalists to grant them, President Roosevelt is surely not so naive as to believe that the capitalists will voluntarily grant higher wages, Or was this speech intended to create new illusions among the workers and io stop them from organizing strikes for higher wages‘ THE PUBLIC WORKS PROGRAM Now as to the Roosevelt Public Works Program. ‘Vhus far this program has resulted in the stopping of federal construction. Roosevelt has already indicated that he would assign to the public works the building of more warships and other war machinery, Roosevelt’s economy program is exposed for what it is by the fact that army and navy appropriations for 1933-34 amount to the stag- gering sum of $565 million, a sum which the organized unemployed demand be transferred for the immediate relief of the unemployed. ‘Thus, while the government is trying to present a good front at the coming world conference by cutting the war budgets, they would in reality increase the war budget by carrying this work under the guise of a big public works program. Furthermore, this work of building battleships as well as other construction now carried on through regular labor, would be replaced by forced labor of unemployed at a wage similar to that given to the forest camp work- ers, who are being enrolled under the war department. ‘The Roosevelt public works program would therefora not do anything more than carry through the war prepara- tions program and at the same time set the wages for all workers at a lower level. Conscious of the fact that the masses would resist such attacks and this would result in strikes and unem- ployed struggles, the Roosevelt government in addition to militarizing large secttons of the anemployed youth Soe ee —— [SUBSCRIBE AND HELP BUILD LABOR UNITY Official Monthly Organ of the Trade Union Unity League 2 West 15th Street New York City Subscription for 1 year... .$1.00 Bundle Order to Organizations 7 cents per copy. — Single Copy 10 Cents } The Contents for the June issue follows: Draft Program for the Convention i ea Massachusetts Shoe and Leather Strikes.J. MacCarthy , — é eas’ S