The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-10-08
BY WILLIAM F. DUNE.

secretary of the treasury Mellon
gives plenty Of evidence that the
Dawes plan is the joint enterprise OF
American finance and industrial cap
itaHsts. His statements show that all
results of the plan have been care
fully considered by both groups.
Mellon speaks both for the banking
fraternity and the steel barons. He
comes from Pittsburgh, the center of
the steel industry and the close connec-
nection between his financial enter.
prises and the steel business are too
well-known to need detailed explana-
ton here.
A Dual Problem.
The dual problem that the Dawes
plan must solve, apart from the stab
ilization of European capitalism, is
to find an outlet for the flood of gold
that has accumulated in the Golfers OF
our capitalists, and which, with its
ever present threat of imitation, SER
iously hampers American capitalism
in maintaining favorable balance of
trade. Plainly put, the American cap
italists have most of the available gold
supply of the world and other nations
can purchase but very little from
them.
The second part of the problem is
how TO revive European and particul-
arly German industry without disor-
ganizing American production by
reason of food of cheap commod-
tiles produced by European workers
for starvation wages.
1t is almost needless to say that no
consideration for the American work
ars enters into this desire to prevent
he swapping of American industry.
It is a desire dictated solely by the
fact that in spite of more or less care
less talk about the domination by fin
nee capital, the basis of American
capitalism is heavy industry-iron and
steel and kindred products. The Amer
ican capitalists are not, in a world
where war is just around the corner
and where God is on the side of the
nation that can produce the most
steel, going to surrender their present
supremacy in this field for any price
Mellon Speaks.
1t is at this point that the obser-
vations of Andrew Mellon become OF
interest. Here is what he says:
I. The American steel industry is
not endangered by foreign competition
even though under the Dawes plan
the furnaces of Belgium, Northern
France and the Ruhr operate to cap
acity.
2. Some competition is expected
from European steel in the Atlantic
seaboard markets but foreign produc-
f, ers cannot undersell American man
ufacturers in interior markets because
of freight rates which local plants do
not have to pay.
8. European producers will be able
to meet competition of Americans in
markets with some success but in this
respect American steel manufacturers
will be no worse off than before the
war.
q. The German steel Industries will
cut costs to the minimum but their
PREPARATION payments will be charge
against the industry and will serve to
discount their lower labor costs less
ening chances of German steel to com
pete in American markets.
8. American steel interests will
gain more than they will lose by in
creased production in Europe and Eur
ope's increased buying power will re-
act more to the benefit of the United
States than to any other nation.
The ImperiaIist View.
We may take it for granted, think.
mat these statements which could
nave been made only after consider
able deliberation, represent the view
Oh a powerful section of American cap-
ltalists as to the effects on basic in
dustry in America of the operation of
the Dawes plan. American industry
is being rapidly curtailed at present.
basic industries are selling little to
Europe and the black pail of depres-
sion, lightened here and there occa.
sionally, but still Indicating a steady
trend downward is settling over the
United States. The revival of German
industry cannot possibly have much
more of an adverse effect than is the
case today. American basic industry
as whole operates on an export basis
that represents about 20 per cent of
domestic production. II thru German
competition American manufacturers
lose portion of this market the loss
VIII be made up by the interest on
loans made to European governments
and European industry.
Where Control Counts.
But our imperialists do not intend
70 lose any Of their proportion of
world trade-they intend to increase
II. American capitalists will be in
control OF German industry for the
simple reason that they are furnish
ing most of the money needed to re-
vive IT, American experts will allot