The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-10-21
OPEN LETTER IN RELATION TO
THE UNEMPLOYMENT CONFERENCE

The following open letter in rela-
ton to the Unemployment Confer
ence dated October 18th, has been
addressed by Mr.. j. A. II. Hopkins
Executive Chairman of The Com
mittee of ASS, to Herbert Hoover,
Chairman of the Unemployment Con-
ference:
"The Honorable Herbert Hoover,
Chairman, Unemployment Conference
Washington, d. c.
Dear Sir: | have followed with
much interest the deliberations of
the Unemployment Conference and
especially the recommendations
which have so far been published,
and it has been a matter of keen
regret to me that up to the present
time the Conference has apparently
made no effort to ascertain or deal
with the real cause for the ex-
listing situation. For unless we
ascertain the cause we cannot hope
to supply a remedy.
We are living today under a sys-
tenn of minority control by a bank
ing syndicate whose knowledge of
craftsmanship and economies is in
inverse ratio to their ability as fl
nancial prestidigitators; and while
there may be contributing causes the
fundamental reason why we have an
unemployment problem today can be
traced to this fact.
1t is unnecessary for me to fur
Their describe the situation which
was graphically brought out in the
report of the Pujo Committee and
more fully described in House Reso-
luton No. $50, introduced on jan
uary 81, 1921, in the third session
of the Goth Congress by Congress-
man Baer of North Dakota.
The working out of this system in
relation to our present unemploy-
ment can be described in a few
words:
A year and a half ago prices and
wages were high. Both were ficti-
tious, but we had comparative pros
perity. Had we adopted an intelli-
gent method of readiustment prices
and wages would have gradually
come down to a more normal level,
and we would today be enjoying a
sounder prosperity.
But the banking fraternity had
passed through period of unpre-
cedented profiteering and were re-
luctant to adopt any plan that would
not preserve to them an abnormal
ratio of profit The appetite for
money, like the taste for blood, |
once aroused cannot be easily sa-
tiated.
They were also fearful of the in
creasing power of labor They reach
ed the conclusion-not unnatural con-
their environment-that by
creating unemployment they could
break labor, smash wages, and leave
prices at comparatively the same
level. So they embarked upon a de.
liberate plan to create unemploy-
ment.
They control credit. Industry is
dependent upon credit. When credit
is reduced the wheels of industry
slacken. When credit is cut off they
stop. Under the rretence of de-
fIating currency the banking fra
ternity curtailed credit. Manufac-
turers, farmers, and business men
we're denied the wherewithal with
which to finance their operations
slowed down. Employers
we're compelled to discharge thous-
ands of men and women. Unemploy-
nent appeared and steadily increas-
ID. Finally the bread line reap
feared.
Meanwhile the funds withdrawn
rom domestic uses were diverted to
he exploitation of European and
south American industries, where
he chance for high speculative prof
is held out a reckoning hand. The
banking syndicate then demanded of
he United States a super-army and
navy through which these question
able investments might be guaran-
-eed.
AS a result we are today stagger-
ing under a tremendous war budget |
which absorbs SO per cent of our
Federal taxes, and are today facing
an unemployment problem the Sc
robustness of which few people real
ize.
In April, 1920, the Committee of
AZ outlined this method of procedure,
and subsequent events have proved
that its predictions have been amply
fulfilled.
The only permanent remedy by
which the cause of our unemploy-