The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-09-17
Mr.. Philip Snowde1's
Vulgar Economics

has It's disadvantages as well as It's
advantages While its investments
enable it to dispose for the time being
of part of it's surplus, it at the same
time guarantees returns of dividends
upon the investments, which makes
the problem still more acute in the
long run.
THE main characteristic of the Uni
ted States in relation to the
worlds gold supply is not that of
boarding nation, but that of nation
franticaily striving, by every conceiv-
able means, to dispose of the greater
part of its gold supply. 1t is this that
lmpels the government to ever more
| aggressive imperialist policies in re-
lation to other countries. 1t is this
imperative necessity that determines
American governmental policy in
China, in the Philippines, in South and
Central America and in Europe. It
fights for places in which to invest
its tremendous surplus.
No one but the most inept amateur
IN the realm of economics would for
moment imagine that any great
capitalist nation on earth would
hoard gold, except temorarily as a
means of payment of International
| obligations or cancelling internal
debts. The first, most fundamental
and simple proposition learned by the
novice in economics is that gold that
lies fallow is useless and that it is
never "sterilized" except in extra
ordinary circumstances and then only
| in order to endeavor to avoid collapse
! OF the money rates, as is the present
case in the United States. If Mr..
Snowden and his associates, loyal and
valiant servants of his Britannia
majesty and the bourgeoisie of Eng
land, can devise a means whereby this
"sterilized" gold can safely be re-
| leased into British hands we are sure
it will meet with instant approval of
Wall Street.
Taking $1,40O,000,O00 in gold out
of the worlds monetary stocks and
depriving it of all power to serve as
basis for credit is not a matter to
be considered lightly" asserts the
/ September number of the American
/ Bankers Association Journal Moth
ing of the kind has ever happened be-
fore as regards gold, and no one can
say positively what the effects will
| be-"
The economic experts" for the
bankers association may not be able
to perceive the outcome of such
policy, but it is plain to Marxists that
this sterilization" has gone as far as
it can go. With Is per cent of the
worlds gold supply inactive the gold
standard itself is endangered and to
continue further such a policy will re-
suit in stagnation and eventually
collapse.
The next step will be protective
measures devised for the purpose of
releasing this supply, which would be
accompanied by a fall in the money
rate. But even that would not per-
manently remove the basic inexorable
economic forces that brought about
the present situation and will in
cvitably reproduce on a still greater
scale the contradictions of this stage
Of capitalism. If Mr.. Snowden were
Q real representative of the working
class instead of miserable and vul-
gar apologist for the English CAPT
talist class he would analyze, the
economics of Imperialism and point
out the danger to the working class
of the world of the great imperialist
rivalries that have developed since
the war and that are paving the way
for new world wars and which today
manifest themselves in the efforts of
the powers to crush the Chinese revolu-
ton that threatens to wipe out past
| investments in that country and pre-
vent future imperialist domination. He
would devote his talents to defense
of the Soviet Union which is being
attacked on all sides by the mer-
cenaries of the predatory powers in
an effort to remove the most for
midable obstacle to domination of the
whole world by the capitalist nations.
And finally he would urge the work.
ers of England to take steps that
would enable them to challenge the
power of British imperialism on it's
own soil.
But to demand that is to demand
that Snowden cease to be Snowden.
Instead of fighting against his own
ruling class this ornament of British
social pacifism will be found where
he is today, in the camp of the enc
mics of labor, indulging in filthy
sophistry to justify his own treachery.
And those who will successfully
fight American imperialism are not
j those lackeys of Britain who complain
! of the cornering of the worlds gold
! supply but the working class of the
United States, under the leadership
of the Communists.