The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-03-22
MORGAN LOAN is
PROP TO FRENCH
STEEL MONOPOLY
Reconstruction Graft Is
To Be Financed
By LELAND OLDS
Federated Press Industrial Editor)

Federated Fresa industrial Edikor)
Support of the present reactionary
government of France in an emer-
gency which threatened widespread
unemployment and radical labor ac-
tivity is the real object back Of the
Morgan $100,000,000 loan. ]. P.
Morgan & Co. is acting to protect
its own enormous investment in the
French steel trust. This corporation
has received large part Of the mon
ey from the French loans which have
so seriously inflated the currency.
French Bankers to Blame
The fall Of the franc Is not due
to foreign spectators with malicious
intent as the propagandists Of inter-
national capital would have US be-
lieve but is due to the policy Of the
French bankers who by huge loans
have vastly increased the amount of
currency in circulation. The fall of
the franc will be permanently arrest
ed only by hating the loans of pri-
yate banks, especially those to build
ing contractors for reconstruction
purposes. And the object of TIE Nor
gan loan is to prevent a complete
stoppage of work as result.
These conclusions are based on an
analysis of the loan by the Alexan-
der Hamilton institute, one of the
leading economic institutions Of the
country. Under the leadership Of
jeremiah jerks the institute Is r.oje-
" associated with the inside Of big
business.
10000, 900 Paper Francs.
The institute proceeds to point out
that the policy of French banks has
increased the number of francs out
standing to over 10000, 600, Oc0 with
billions more circulated as checks and
drafts. In predicting the trend of
the franc we must ignore specula-
ton entirely and talk exclusively
about currency imitation in France.
The institute points out the con-
nection between heavy loans to con-
tractors for reconstruction and in
fation. 1t says: 'The private banks
Of France have loaned so heavily to
building contractors and investors
in French government bonds that
their resources are exhausted.
Reconstruction Graft
"The remedy for the franc is to
have these private banks curtail
loans to building contractors and to
French investors in government
bonds. The credit Of 800, 000,-
900 extended by the J. P. Morgan
syndicate to the Bank Of France is
virtually loan to the building con-
tractors Of France who are recon-
structing the devasted areas.
But, the institute points out, it is
likely that the French will not be
called on to repay the Morgan syndi-
cate at all. Instead it is likely that
New York bankers will sell French
loan to American investors later on
and use the proceeds to repay the
Morgan syndicate.
French capitalists have been guilty
of the most outrageous corruption in
connection with the reconstruction
contracts. Their graft running into
hundreds of millions Of francs has
done much to produce the imitation
which has depressed the value of the
franc. Poincare has recently block
ed the prosecution of the most flag
rant cases.
Loans for Munitions
These same capitalists have re-
ceived the major part of the Doodle
from huge loans to such countries
as Poland, Czechoslovakia, and Rou-
mania, another major cause of in
tiation. For the loans have really
been spent in France for munitions.
And ]. P. Morgan has been part
ner with these capitalists thru
heavy investments in such corpora
tons as Schneider-Creussot, the
great French steel and munitions
trust. This is the real background
Of the Morgan loan.
r u 4