The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1926-07-16
European Crisis Breeds
New Struggles Between
United States and Britain
BY J. LOUIS EN0DAHL.

Both the United States and Great
Britain are feeling the damaging
effects Of competition of countries
with low valuta.
Great Britain is losing its mar
kets. This is charged largely to
the return of British currency to a
gold basis. Low Yaluta countries
continue to squeeze British goods
from the worlds trade. Norman
wants to obviate this by putting
forward a unified international
valuta.
Similarly the United States is feel
ing the effects of competition of
these same countries. 1t has lost
its favorable balance of trade.
Uncle Sam had a favorable trade
balance during the first quarter of
last year of $205,O00, 900, but this
turned to an unfavorable balance
this year of $125,000, 600. This is a
huge drop of $330,00O,O0O. Europe
is too poor to buy American goods.
On the other hand it is flooding the
United States with goods at low
prices or, at high prices, as in the
case of the British rubber monopoly,
that has adopted the American great
business slogan of "All the traffic
will BEAR" Economic Life, from its
Moscow point Of vantage, however,
points out that the American dollar
has the strategic position. 1t says:
1.-THE investment of capital into a
central emission bank would place
under the control of New York not
only the economy of the European
countries but also of their colonies.
New York could thus soon liberate
itself from the monopolistic COM
bines controlling the prices of the
principal raw materials, and so re-
lieve the United States industries Of
the danger of competition Of low
valuta and of the shortage Of high
price of raw materials.
"In the present relation of forces
in world economy the execution of
the plan to establish an interna-
tional federal system is tantamount
to the 'Dawesation' of Europe and
her colonies. The British bankers
are willing to take an important
part In the execution of this scheme
by the investment of their own cap
ital, but they calculate mostly on
utilizing American capital to
strengthen their position on the
world market. Sir Montagu Nor
man also calculates on the financial
restoration of Europe, restoring to
London its old position as the finan-
cial center of the world. The Amer
lean bankers will be compelled for
a time to cooperate with the British
bankers in the execution of this
scheme for the reason that the Brit
ish banks have their ramifications
all over the world, even to the most
remote colonies, whereas the United
States bank have not yet managed
to adapt themselves to the require
ments of exporting capital and are,
therefore, unable, as yet, to cope
with so great task"
But with this logical development
of American financiering will come
new struggles between the imperial
isms of the United States and Great
Britain. Then London will lean
more upon the antiAmerican bloc
on the European continent that fights
desperately against slavery to Wall
Street. 1t is not settlement Of
the European crisis that lies ahead.
1t is an aggravation of that crisis
that will hurl capitalism in west
ern Europe, as in the remainder Of
the world, into the throes Of new
agonies Of disintegration. Caillaux
tries to bolster the franc while the
social order he sponsors sinks in
the quicksands.