The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-10-09


American Industries Top-HeaVy.
Discussing the economic effects o.
the surplus producing capacity of the
United States as a consequence Of
the world war, Prof Walter r. In
gals declared in the Annalist of June
2, 1924: First class producing and
manufacturing capacity in this coun
try was abnormally expanded to meet
wartime demands. We know that the
excess ought to have been written of
and amortized at once. But we have
tried to eat our cake and keep it too
The result today is that many indus
tries are carrying dangerous burdens
of inflated overhead and personnel
perhaps in some cases even inflated
financing"
And at the last convention of the
National Purchasing Agents Associa
tion held in Boston it was authorita
lively stated that American manufac
turers can produce in seven months
all the commodities needed for ma
tional consumption during the whole
year What the speaker really
meant and should have said is: al
that the working and exploited farm
ing masses can buy back from the
bosses on the basis of their wages anC
meager income gotten in twelve
months in addition to the amount
consumed by the owning class.
According to an analysis made by
the Federal Reserve Bank of New
Yord and the Standard Statistics Co.
on the basis of the peak of activity
reached in any month in 1928 by
twenty leading industries, we learI
that the excess industrial capacity
compared with normal requirements
was 50 per cent in the motor indus
try; So per cent in sugar; 81 per cen
in the meat industry; 30 per cent in
oil; 29 per cent in shoes; 2S per cent
in steel; 26 per cent in flour; "a pei
cent in iron and 16 per cent in coal
In fact, many of these industries could
have been operated to produce at al
even higher rate than in the peal
months.
Seek Foreign Outlet.
1t is plain to the most purblind thai
there is getting to be less and less
room for profitable re-investment il
the United States for the surplus cap
ital with which the American capitals
class is gorged. More and more for
eign loans have been serving as al
outlet, From January to July 1, 1924
| fiotations in America for Interest,"
outside of the country have totalleC
about four hundred million dollars
Foreign fotations are today running
on larger scale in New York thar
in London. Many expect the sum t
reach billion dollars by the end o.
the year. The overbuilt, topheavl
condition of American industrial plan
equipment is driving an increasing
portion of the capital investment funC
elsewhere. The companies taking GU
charters in the first five months o.
1924 showed a decrease of eleven PEI
cent in number and thirteen per cen
in authorized capital as compared
with the same period for 1928. On'
of the primary causes of the presen
wave Of unemployment is this top
heaviness.
Great Inflow of Gold.
Since the world war there has alst
been great flow of gold from thu
other countries to the United States
The director of the mint has officially
declared that on August /, 1924 thu
United States held about fifty per cen
of the worlds monetary gold, more
than four and a half billion dollars
worth. Since 1910 the gold stock o
the United States increased IT'S pc
cent. In the four years before thu
world war the American gold stool
showed an average annual increase o
seventy million dollars. Since thu
war the inflow of yellow metal hal
been terrific. In 1921 alone the in
crease in gold bullion was more thai
500 million dollars.
While America is facing this pie
thora of surplus capital shortage o
capital is manifesting itself in man!
parts of the world. Germany and Pc
land. for example, are forced to pa.
terrifically high interest rates. Sim
ultaneously money is available for |
song to the American capitalists. TIT
present rate for call money is pc
cent Bankers acceptances can b.
had on Ia and per cent basis fol
thirty days. Ninety-day money can b.
had at 2 per cent. Four years age
the rediscount rate Of the New Yorl
Federal Reserve Bank was seven PEI