The Daily Worker Newspaper, May 29, 1933, Page 4

SUBSORIFTION RATES: Fublished by the Comprodaily Publishing Ce., Ine., dally except Sendey, at 52 5. : i. Page four 18th St, New Tork City, \. ¥, Telephone ALgwnamin 4-198. Cable “DATWORS.” Br Mall everywhere: One year, $6; six months, $8.50; % months, $2: 1 month, Te, MAY 29, 1553 rt Address and mail checks te the Daily Werker, 56 E. 13th S| New York, N. ¥, excepting Berongh of Manhattan and Bronx, New York City. Foreign and Canada: One year, 38: 6 months, 35: 7 months, $2. oi CEE ie Communists Active - in Workers’ Fight All Over Germany Win Strikes Against Wage Cuts and Arrests of Militant Workers; Labor Camp. Mutinies BERLIN, 17 mail)—The work of the Communist Party Germany goes on undaunted in the face of extraordinary Nazi terror —by Burck Europe Replies to - | USA’s Legal Ban | on Gold Payments Italy “Can’t Pay”; England Silent on Default¥ France Pleads Huge Deficit ROME, May 28.—The - Budget report of the Finance Ministry, approved by the Legislature yesterday, speaks of Italy's “complete inability to pay” the forthcoming instalment of the American debt. America’s move of legally going off the gold standard, means a cer- tain alleviation in Maly’s debt burden, since Italy is now able to pay in May (by of al- though thousands of werkers are under arrest or in concentration camps in the Bremen-Oldenburg district of Northwest Germany alone. A meeting of all the workers of the Boekemann Contracting Co, in ©Bremen votcd, at the initiative of aS —~——~® paper dollars, which can be had 15 Al he Communists. that no worker j per cent cheaper than the old gold Day celebration. Defying the em- | that since Italy is unable to pay, oyers’ pressure, the workers ad- ALL STRIKES IN FASCIST GERMANY Decrees C ‘lass Struggle Out of Existence BERLIN, May 18. Sommissioner By Mail).—The for National t issued an ough | peech, proc- the National Socialist | put an end to the class g Dr. Ley, head of the “Ger- Workers’ Front,” countersigned man ‘Wagener's order. An eight weeks proclaimed for all labor conflicts. This truce proclamation—in a fight which is all over ostensibly—must be rather a surprise to the Nazi followers, who were assured that their wages would not be reduced before September 30, Hitler did not confirm this May Day speech, the truce has been es supported by Nazi has naturally increased—j} some of ese strikes even being or nized by the Nazi factory organi- zations Th is mew order by Wagener and is also supposed to prohibit all lockouts but in actuality it is only a back the Nazi wor “Nobody can Economic life tol which belong: must be nipped in the bud ly the enemies of our movement are interested in proc- laiming strikes, lockouts, or the like.” MOSCOW, May 19. (By Mail). — ‘The “Prayda” comments on the “eight weeks ‘truce forbidding all strikés in Germany as follows: “The destruction of trade unions and their incorporation into the system of the Fascist state | are among the principal methods by which the National-Socialists are try mash the German wor movement of the trade unions must be consid- ered an event of more than ordinar importance. n the Fascists were fight ing woul d transform the ust capitalism,” use them in the fight for higher the Fascists now ding the German rike weapon, 10115 heir wag’ to the arbitrar of their ex- In Fascists are ploite ing with an i heel the last remnants of freedom which the Ger- This new decree clearly shows what the ‘new phase’ of the Fascist counter-revolu- tion amounts to. “This is the execution of a series of measures aimed at the complete sub- mission of the working class to the| unrestrained arbitratriness of the ex- ploiters. Nazis Preach Class Collaboration “The ‘Voelkische Beobachter’ (cen- | tral organ of the Nazi Party) recom- mends to the German working class that it feel itself at one with the German nation.. The German work- ers are to be ‘soldiers of the nation.’ Collaboration’ between the workers and the employers lished, just like the ‘collaboration’ between soldiers and officers at the front. This is the ‘honest mediation’ between labor and capital that was prociaimed by Hitler at the Fascist “Workérs’ Congress.” “The Fa: its will not succeed in destroying class struggle in Germany by prohibiting strikes. This solution of the workers’ problems by methods copied from the Prussian army bar- racks will only increase the working class’ struggle against the Fascist dictatorship.” CARGO BLAST PASSAIC, N. May 28. Two members of a Salar Oil Co. barge crew were burned here, probably fatally, when the gasoline cargo ex- ploded “Merchant Ship Building Down to Lowest Point NEW YORK.—American ship- building is at its lowest point since the close of the world war, accord- ing to a report of the National | Cofincil of Ship Builders. 1 At the present time, there is not a single merchant marine carrier | under construction. On May First, 8,700 workers were employed in the shpyards as compared to 38,000 in 1931, Reflecting the collapse of cap-| italist. economy the report states “the condition of shipping indi-| cates that new construction must come from naval contracts rather than from private shipping com-— panies.” President Roosevelt has oped launched a program of naval con-) struction as part of the intensive war prenratient of the American om take | the peeian | if 3. Therefore the destruction | ans of “an ener-| s had won for themselves | is to be estab-| t.. hered ‘to this decision unanimou: not a worker going to the Nazi cele- bration Demonstrations in Bremen On the eve of May Day, the work- crs of Bremen marched through the tarian districts shouting Com- slogans. On Sunday the Com- munist Party da May Fi meeting ow le the city, with sev- j eral hundred workers taking part. On May 1 it a workers’ demon- stration took place in front of the | Communist Pa house, which is | jn ww occupied azi Storm Troop- | The Nazi guards took to their Sh as the workers sang the “In- | ternationale.” The police arrived too | | late to arrest any demonstrators | Another demonstration was held by | the Young Communist League in an- | | other part of Bremen. A young com- | rade addressed the crowd for a quar- ter of an hour—the Communists’ | courage evoking the workers’ pi The Communists painted their Sio- |gans on the building walls in most parts of the city. The Adolf Hitler Bridge was painted into the “Lenin Bridge.” The leaflet distributed by the Party for May Day was enthu- siastically received by the workers, | even organized’ workers helping to} distribute it. A protest demonstration was held | jointly with the Socialists in the town of Brake. | Win Strike Against Wage Cut | A successful strike against a wage was waged in about 25 small et factories, employing some 250 under the lesdership of the Red Trade Unions. In Oldenburg the Nazi who mur- | dered the Communist Deputy Ger- des, was drafted into a gang of re- lief workers, but the workers, many of them Socialists, refused to work with this assassin, and forced his removal by threatening to go on | strike. Small demonstrations took place the Halle-Merseburg area on May Red flags were run up, léaflets stributed and revolutionary slo- sidewalks. In | Hohenmoel the workers demon- rated outside the prison where proletarians are confined, but the Police did not dare to attack the demonstrating workers. Nezi Workers Join With Communists | In Zeitz a Nazi employer refused | to pay full wages, on the basis of | Hitler's declaration. The workers | | threatened to e—even the Nazi | workers favored striking—and com- pelled the employer to retract his wege cut. A revolutionary factory councillor wa ested in a municipal plant in Cologne. A revolutionary worker ad Gresced a Nazi factory meeting, de- mancing that the factory councillor | be released. The meeting adopted a resolution to this effect unanimously. In* another Cologne factory 300/ workers signed a demand for the re- lease of an arrested street-car em- ployee. | Mutiny in Forced Labor Camp Seven hundred and fifty men mu- | tinied because of the bad food in the | gans painted on the n The men sang revolutionary songs When the camp commander asked whether any man had a complaint to make, all 750 stepped forward. This success was achieved by the | Young Communist League, which had distributed leaflets in the camp. Thus we see the anti-: Fascist »| struggle continuing uninterruptedly in spite of Fascist terror, spreading to more and more groups of workers. | That is the reason for the new wave | [of terror started by the ‘Nazis. But | ane all. the terror in the world can | |quench the revolutionary fighting | spirit of the German workers, Communist Party Banned in Austria VIEN A. May 28. The Austrian Cabinet yesterday decreed the disso- lution of the Communist Party of Austria on the ground that menace the security of the State.” Germany Cuts Tourist Trade as Tension Grows Tension between Fascist Austria | and Fascist Germany is growing min-| ute by minute. The latest step in} the hostilities between Hitler and| Dolfuss is Germany's raising the fee |for a tourist visa to Austria to 1000 | Marks ($272). This will cut off the | large and profitable tourist trade from | Germany to Austria, and is tanta- |mount to m complete blockade of Austria. Austria has retaliated by recalling | the Austrian Minister from Berlin. It is not unlikely that diplomatic re- lations between the two countries will be-broken off altogether. Since Austria’s purchases from Germany exceed its sales to that | country by over $3,000,000 last’ year | Austria is also considering placing an embargo on all German exports. The University of Vienna has been | closed until further notice as a re- sult of the Nazi students’ attempt to break up a Heimwehr ceicbration in honor of the Pascist Schlageter. « oy the Freneb in the Rubr in 104% am a | (Seemann guts, Wolo” RasKos pas meADOO OOO an ~ Morgan, Wage Cutter and Slave Driver---One Aspect the Senate Won’t Investigate By ANNA ROCHESTER This is the second of a series of articles on J. P. Morgan and Com- pany. The third will appear to- morrow.—Ed. The one aspect about the Morgans | that will not be investigated by the | Senate Committee is the fact that the Morgans are among the most brutal slave-drivers and wage-cutters in the entire capitalist world. Morgan corporations have set the pace for agressive hostility to workers who organize and strike. In 1901, the very first year of its existence, Morgan’s U. S. Steel Corporation met and defeated a strike for union con- ditions called by the old Amalgama- ted Association of Iron, Steel and Tin Workers. After the World War, | U. S. Steel took the lead in smash- ing with most brutal tactics the great steel strike of 1919. In the anthracite fields, exploited by Morgan. railroad coal companies, the workers won a hard-fought bat- tle for union in 1902. Then Morgan company Officials showed how unions can be corrupted from within and made useless to the working class. In the same way, the railroad unions have served the capitalists—the offi- cials helping to break the shopmen’s strike in 1922 and putting over the railroad wage cut in 1932, U. S. Steel subsidiaries and Gen- eral Electric have specialized in “wel- | fare” as a means to fool the workers |and keep them in subjection. Com- pany nurses and teachers have se- cured useful information to supple- ment the undercover spy systems. ; Employee subscription stock issues | and pension. schemes are used to maintain “loyalty” and make work- | ers afraid to strike. “Taking It On the Chin” Morgan had the nerve to say that) he had “taken it on the chin’ be-| cause capital losses due to the crisis had saved him from paying any in- come tax! But his income still main- tained a palace in New York, an es- tate on Long Island, a big sea-going yacht, the “Corsair,” a palace in Lon-| don, a country house near London, and a hunting “lodge” in Scotland. While Morgan was taking this on the chin, workers in Morgan corporations were close to the starvation level. U. S. Steel, which had made pre- tentious boasts of high wage scales, has shown its true colors by taking the lead in wage cutting. It now boasts about keeping all workers on the payroll, with part- time work for all. But its own figures show that thousands have been drop- ped with the closing down of many iron mines, coal mines and coke ovens and some of its steel plants. For the workers on the payroll, part- time work—usually one or two days a week—has not given enough wages to live on, but it has helped the cap- italists by making the workers in- eligible for relief. In other industries, Morgan-con- trolled companies have made no pre- tense of preventing mass unemploy- | ment. The Morgan firm is the chief definite links even with roads which they do not control. Railroads alone have dropped nearly 750,000 workers | edad | power in American railroads, having | since 1929. Morgan’s American Tele- | phone & Telegraph system has} thrown out 163,000 of the 454,000 it} was employing four years ago. The auto industry—including as its chief unit the Morgan-DuPont General] | Motors Corp.—has allowed mass un- jemployment and hunger among) workers in and around Detroit. |. While federal unemployment re- jlief has been confined to less than $300,000,000 loaned to the state relief machines, over $1,700,000,000 of fed- eral emergency loans to banks and | Yailroads are now outstanding. The | Morgan firm, which paid no income tax at all in 1931 and 1932, has bene- fited directly from many of these loans. ‘Workers Buy from Morgan Companies | Since Morgan controls corporations representing one-sixth of the corpor- ated wealth in the United States, we may estimate’ that one-sixth of the industrial workers in th’s country are employed within the immediate Mor- gan domain. But every worker in the country pays tribute to Morgan corporations through the things that he buys. Morgan has his hand on bréad and flour, crackers, milk, and meat. Vegetables and fruit are canned in tins manufactured by one of two great can companies, the American Can Co, and Continental. Can Co., and both of these are close to Mor- gan, Bananas and coffee are brought from Latin America in ships dom- inated by Morgan or Morgan allies. Cotton is hauled from the fields to | the textile mills on Morgan tallroads, ~ FOOD PRICES RISE Antwerp Longshoremen ‘Make AS CRISIS GROWS Nazi Captains Remove Flag | Refuse to Work Ships Flying ng Swastika; Strike; | Women ay ne Navel German Crew Refuses to Replace Hitler Emblem ANTWERP, May —A (by mail). they had decided not to unload the The captain was compelled to haul The same thing happened whe Marine Workers Were; Present in Weidmann) Demonstration May 25) The Marine Workers Industrial Union, as well as several marine workers, have written the Daily Worker challenging the statement | made in a letter of a worker to the editor that there were no marine workers at the anti-Weidemann dem- | in) onstration Brooklyn. The marine workers state that a number of seamen did take an ac- | tive part in the demonstration, The Daily Worker regrets that it printed Thursday morning “its aims the remarks impngning the Mariné | Workers Industrial Union without | having sought to corroborate charge L rien ritish Workers Aid Finnish Seamen Force Union | Congress to Send Funds LONDON, England.—Forced by the pressure of the militant rank and file, the British Trades Union Con- gress has voted 500 pounds for the strike fund of the Finnish seamen. In addition the congress ordered that no Finnish cargo would be handled | by longshoremen or railwaymen if the Finnish bosses don’t settle in three | weeks, The Finnish strike called by the| | rank and file committees which forced | the misiéaders to support it. Is now one month old. Demonstrate National Youth Day, 30, fre tha dntemse of the Soviet ‘Unton! the | delegation of longshoremen on the Longerich labor camp near Cologne. | Antwerp docks told the captain of the “Drachenfels” (Hansa Line) that ship if the swastika flag was flown, the flag down. nm the “Essen” came into port, and ‘®egain the demands of the militant longshoremen were met by the Ham- | burg-Amerika officials. | Pull Down Flag The “Schwaben” (North German | Lloyd) also. arrived in Antwerp fly- | ing the Nazi flag. The longshoremen mobilized on the dock and decided to strike if the “Fascist rag” were not pulled down. The captain was forced to give way, in order to get the ship unloaded. As the “Sch- | waben” was leaving the harbour she passed the Soviet steamship “Dnei- perstroy,” and the captain ordered his crew to run up the Nazi flag, but the crew refused. The captain |bawled from the bridge — “What's this, mutiny?—and by threats. some |of the men were compelled to line | up and give the Fascist salute» Ger- ‘man river boatmen, who had been watching all this, shouted “Red Front” as the “Schwaben” passed. A strike was also called on’ the Woerman steamer “Uganda,” which | flew the swastika. When the ship's command refused the Jongshoremen’s ultimatum that the flag should be taken down, the sailors and dock- workers together went ahead and hauled it down themselves. When the officers hoisted it again, the workers went on strike. Police were calied in by the ship's officers, and attacked the sailors and longshore- men with drawn sabres. The work- ers defended themsélves with cobble stones, and one policeman was sev- erely injured. The workers are electing an action committee. “Keep Your Mouth Shut” In the case of the “Watussi”, an- other Woerman Line ship, when the workers presented their demands that the Nazi flag should be hauled down, the ship’s officers got in touch with the Socialist Mayor and officials of the Belgian Transport Workers | Union (affiliated with the Amster- dam International) in the hope that they would be able to stop the threat- ened strike. The Mayor was unsuc~- cessful. and the trade union official, when he told the workers — “You have the permission of the union to work this ship’—was told—‘We are the union, and you have our i mission te Beep your mouth altogether 4 the present sttustion hare. IN NAZI GERMANY lets i in Protest; City of Kassel Bankrupt BERLIN, May 18 (by mail).—The cost of living is rising stéadily in Nazi Germany. Last week many foods rose again, butter going up 50 per cent to 1.50 marks per pound (37 cents), and meat rising 10 to 15 per cent. Working women aré everywhere protesting against the price rise de- creed by the Fascist government. On Saturday they protestéd in many markets in Berlin against the high prices of butter, margerine and other foods. Sharp clashes with tradesmen took placé in the Pankow Market, in Berlinerstrasse, in the Wedding Market and in the Mullerstrasse, Clashes With Police Police and storm troops weré sum- moned because the women wanted to force the tradesmen to accept low~ ér prices. Indignation ran high, with big crowds gathering quickly. The shopkeepers, defending them- selyes, put all the blame on the farm- ers, who were demanding higher prices, But the working women re- fused to be hoodwinked, say’ ing open- ly that the Hitler government is rais- ing prices sky-high, Contrary to their former policy, the police did not use clubs against the working women demonstrators. «8 City of Kassel Bankrupt ‘The City of Kassel, which has been unable to pay interest on its debt for some months past, has now been forced to ask its creditors for a one- year moratorium. The chief creditors have now seized all the gas, water and electricity revenues in partial settlement. April sales of cement totalled 310,- 000 tons, compared with 318,000 tons in March, although the building sea- son begins in April and the latter month had two more working days. The Prussian government has warned taxpayers to pay their taxes promptly. The wording of the order clearly shows that a regular taxpay- ers’ strike is now on. Now that the Fascist goverment has promised im- munity in all cases of capital flight, and has abolished the land’ tax, the taxpayers hope that it will cancel thair obligations as well. ‘The Paramount Film Corporation, whose European head office has been beiesagh in Berlin, has decided to ‘leave Germany beoaiass of | and most of the big mills are tied up with Morgan banks in New York or) A Boston. Cigarettes are or another section of Trust, also Morgan's. In New ‘York, Morgan and Rocke- feller between them have a tight grip on subway systems, and electri- city. and gas. About one-half of all the eleciric current produced in the entire country comes from companies directly within the Morgan utility system, and the rates we pay are fixed way above actual cost in order that Morgan and his clients can draw profits on swollen capital. Farmers who buy their clothes and household equipment from Montgo- mery Ward are increasing the bus- iness of a Morgan company. The great majority of farm tractors come made by one the Tobacco from International Harvester or J. I.) Se bes i wlon’| lief “that if we had had the proper Case Co., and both of these are Mor- gan controlled. Back of these things that we buy are the machinery and metals used in their manufacture, and here in the so-called heavy industry which prod- uces the means of production Morgan has an even more solid hold. Even in oil, the Rockefeller domain, Mor- gan is: functioning too. He controls one company, Continental Oil. Teagle, of Standard Oil of New Jersey, is on the list of insiders to whom Morgan sold stocks below the market price, and Standard Oil of New York is) close enough to Morgen to carry a deposit with the Morgan firm. When the United States goes to, war to protect the Morgan interests. the workers in the army will carry | Senator | the group of | products” Toh to Find New Farm Markets Plan for Large-S ale Barter With USSR Outlined WASHINGTON, May 28. Ex- Brookhart of Iowa, one of “progressives” was ap- pointed yesterday special advisor to the Agricultural Adjustment Admin- istration (A. A. A.) where his job will be to study methods for the “expan- sion of markets for American farm especially through the large-scale bartering of American | cotton and meat products for Soviet | goods. Brookhart referred to himself as| “sort of Secretary of State for Rus- sian affairs” though the State De-| partment went out of its way to say that the appointment would have no bearing on the question of recogni- tion, and the A. A. A. pointed out that Brookhart had no authority to negotiate “with any foreign govern- ment.” But this would not preclude negotiations with Amtorg, the cor-| poration officially U. 86. R. representing the in New York; and the A. A. A. in describing Brookhart’s work said: “He is to make studies) ef the possibilities of expanding Am- and if you look at the map you will see that that includes Soviet Russia.” Trade Possibilities with U. S. 8. R. The new adviser expressed the be- arrangements ‘we could have sold 2,- 000,000 bales of cotton to Russia last year” and added “I believe they could take our 5 per cent surplus of live- stock and our 30 per cent surplus of hog products and a lot jof other things.” In return he suggested that the United States could well |take Soviet wceod pulp and manganese. Brookhart also suggested that the Reconstruction Finance Corporation could be mace use of to finance Am- erican-Soviet trade credits. Foreign Briefs MEXICO CITY, May 28—An anti-| | uns made of Morgan steel and will| Jewish campaign in Mexico was de- use munitions from Du Pont, a Mor-| manded yesterday | president of the gan ally. Morgan wealth is drawn from the working class both here and in other | countries. Morgan power penetrates | every phase of life in the United States. MORGAN BANKS CONTINUE DIVIDENDS AT 1929 RATES Eight New York City banks, among them six dominated by J. P. Morgan, have reported dividend payments for the current year on par with those paid at the 1929 peak. The banks are: Fulton Trust Co., Commercial Na- tional Bank and Trust Co., Bankers Trust Co., Central Hanover Bank & Trust Co., First National Bank, Guaranty Trust Co., New York Trust Co., and U. S. Trust Co. All but the first mamed two are controlled by the Morgan group. For the year 1929, seven of these banks paid out dividends totalling $42,550,000, the Guaranty Trust Co, topping the list with dividends of $14,100,000. This bank actually in- creased dividend payments during the crisis years to $18,000,000 an- nually for 1930, 1931 and 1932. The Cc fal Hanover Bank and Trust Co., increased its annual divi- dend payments from $7,175,000 in 1929 to a yearly rate of $7,350,000 for the following three years. Simi- larly the New York. Trust Co. in- creased its payments to stock hold- | ers from $2,375,000 in 1929 to $2,500,~ 000 for the three years that followed. At the same time 6,150 national 1932, paying dividends of 10.78 per cent on’ their total capital. 'Thes dividends paid amcunt to $169,155,000 for the year. One way Morgan’s and other banks have been able to main- tain and even increase dividend pay- ments during crisis years is revealed by the Wall Street Journal which re- ports drastic reduction in expenses amounting to 14 per cent in 1932 as compared to the year before. “Sal- eries and wages,” says this leading financial mouthpiece, “have been held in line with general expenses” in other words, wage slashes have contributed towards maintaining the already fat pockets of the parasite banking class. Anti-Fascist Activity PLAINFIELD, N. J.—A conferencé was held here Tuesday to fight the Hitler terror and collect funds tor its viclims and refugees. The Social- ist Party branch attended. Steps were taken to broaden the confer- ence by calling upon Jewish and German organizations to send dele- gates to the next meeting, Jack Bond of the 5. P. acted as seqrotamy of the | to Mexico, j eration from the enen’ banks reported net earnings of $312,- | 443,000 for the year ending June 30,| by Rafael Lira, powerful National Organizing Council for the Develop- ment of Industry and Agricult Lira wanis the anti-Semitic mov ment modelled along the lines’ of the| Hitler movement in Germany. Lira predicted that all Jews ex- cluded from Germany would come “where they would en- Mexican industry and agri- danger culture.” ae in India Prisoners Hunger Strike BOMBAY, India, May 28.—Thirty- nine Indian political prisoners in banishment on the Andaman Islands have gone on hunger strike in pro- test against their imprisonment. A Sikh condemned to life imprison- ment has already died after hunger striking for five days, and a Ben- gali prisoner on. hunger strike has dies of pneumonia induced by his fast. The Andaman Islands are a British penal colony in the Bay of Bengal where large numbers of po- litical prisoners from India are de- tained. * DUESSELDORF, May 28.—Another Nazi celebration—ihis time along the Rhine—is taking place here in com- memoration of Schlageter. the Gér- man Fascist shot by the French o¢- cupation troops in the Ruhr in 1923 on charges of dynamiting bridges and espionage. The célebration is being made the occasion for a wildly chauvinistic anti-French demonstration for “lib- yoke. | a fifteen per cent reduction makes | little more impression than no re~ duction at all. French Government Deficit PARIS, May 28. remains disasterous, on the eve of the World Economic Conference, The budget was sent down by the Senate | with a 3,498 million fran¢ deficit to | the Chamber of Deputies, who passed it yesterday after increasing the de~ fictt to 4,344 million francs. The bill is now on its way back to the | Upper House. A National Economy Committee is calling on all Paris shops to remain closed on Monday in protest against the Government's failure to make economies. The “Journee Indus- trielle” openly says that unless the budget deficit is drastically reduced, inflation is certain to follow. Predict Economic Conference Failure French monetary authorities are | also saying that nothing will be able to be accomplished at the World | Economic Conference unless the | dollar and the pound are first stabi- lized. If this is not done, the Econ- omic Conference will drag along in the same way that the Disarmament Conference did. ee England Hit By U. S. Inflation LONDON, May 28. — The British government, in face of Roosevelt's ban on gold, has made no declara- tion of policy on the question of either meeting the debt payments | which fall due to the United States | erican markets in eastern Europe,| 0M June 15, or defaulting. The situa- tion caused by this uncertainty is bound to become more acute as the World Economic approaches — and, unless some statement is made be- forehand, will come to a head with the opening of the Confere/e on June 12, three days before the pay- ments of all the European powers are due, The gold ban has scored a point for the United States in the finan- cial fight between America and Great Britain for the differential advan- tages in foreign trades which go with currency depreciation. The dollar dropped six points. The financial editor of the Observer refers to America’s legal departure from the gold standard as “the whirligig pro- gress of America’s pursuit of infla- tion,” and talks of the “shock to confidence” which this measure has produced. * | U.S. Move Adds To Instability | BERLIN, May 28. — America’s siatutory departure from gold pay- |ments has raised here the question |—if the United States by pursuing | her inflation policy should greatly decrease the value of the dollar, can Germany continue on the gold stand- ard? A cheap American dollar will make it more easy for Germany to pay the private debts that she owes the United States, but her already small and still decreasing foreign trade will be even worse hit than at present. | | . Economic War Breaks Out BELGRADE, Yugo-Slavia, May 28. —A new economic war has broken out between Austria and Yugo- Slavia. As a reprisal against the prohibition of the importation of Yugo-Slavian pigs into Austria, Yugo-Slavia has placed a complete economic embargo on Austrian goods, closing the frontier to all import¢ from Austria. French Tax-Payers | Urge Direct Action PARIS, May 28—Tens of thou- conds of small tax-payers threatened set Action” against members of the French Chambér of Deputies, who, they claim, have reduced France to the “verge of bankruptcy.” At two |monster meetings a résolution was |passed which said that “there is no longer an @ffective government in France” and that the country was headed for catastrophe. 1 JAPANESE TROC PS PATROL PEIPING; GENERALS REVOLT AGAINST CHIANG (CONTINUED FROM PAGE ONE) bellion, Feng, under the slogan of a “Peo- oples National Salvation Anti-Jap- anese Army,” has called upon his former associates to join him, and two commanders in the province of Chahar have already gone over to his side, assuring him virtual control of the province. General Han-Fu-Chu, Governor of Shantung, a former subordinate of Feng and recently advanced by Jap- anese authorities as the possible head of the planned North China puppet state, is reported wavering in Feng’s direction. This indicates that the true purpose of Feng's rebellion is not to drive out the Japanese, but to overthrow the Nanking regime of Chiang-Kai-Shek and set up a “new deal” with other militarists in control of China, 19th Route Army In Clash With _ Nanking Troops ‘This is also borne out by reports that the Nineteenth Route Army, famed for its defense of Shanghai north from Canton to join the batth against the Japanese invasion, has already clashed with Chiang’s forces in Hunan Province. It is likely that Feng and Canton are thus allied in ¢ desperate endeavor to oust Chiang taking advantage of his universa! unpopularity throughout China, for his miserable betrayal of the nation’s defense against the Japanese, Chiang, who has been concentrat- ing his armies for another desperate onslaught upon the Chinese Soviet territories, now officially admitted by Nanking to cover eight provinces with 167 districts completely under Soviet control, is faced with a life. and-death battle for militarist cup. rematy in China. The net effect of this outbzeab against Nanking will be to weaken Chiang’s offensive against the Chin- ese Soviets, and to enable the latter to exploit the rivalries between war- ring cliques of generals to gain breathing space for the strengthen- the Soviet ing of Chinese which now embraces nearly Chinese in - Central -Ofina- r — The financial! | position of the French government } t . ;