The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1927-09-30

payment of the indemnities which amount to 1872
milliard gold marks. The paper money circulation
in Germany increases with extraordinary speed,
and this lead not only to an increase in the deficit
of the government but ale to the continual rise
in prices. The total indso ldness of the govern
ment amounted in 1922 to 36s miliardd gold marks
which, under conditions of augmented and in
creasing emission of paper money dislocates the
foundations OF tn enational economy of Germany
without increasing the resources of the country.
Under the conditions of capitalism this growth of
Indebtedness means the impoverishment of the ma
tlonal economy the lowering of the standard of
living OF the workers and the assertions of capital
from production to speculative trade Germany is
unable with her normal income to meet the ex-
penses OF maintaining the government including
the payment OF interest on loans and war indem-
mites Owing to the low exchange rate of the
German Valuta, the countries with a high valuta
tEngland' france, Switzerland America, etc. are
able to buy commodities cheaper on the German
market than on their home markets
Germany IS unable to put any serious obstacles
III Che way Oh export capital abroad in the form of
cohlnoulues incidentally, the exporters, export
ing IheT commodities abroad, receive firm foreign
Valuta' ana leaving this money abroad, free them
serves from the weight of the taxation policy with
III the country. thus there takes place gradual
ueSerOloh OF eGlman capital from the country
however this abnormal export is already coming
W anu emu For the continuation of production it
Is necessary to buy foreign raw materials and I'M
llllisheu products Tor which payments must be
maze at the hlgh world prices in firm foreign va
luta This circumstance reacts on German manu-
!acturers and makes them dearer, the prices COM
ing more and more into comparison with the world
fpily
export.
Inc tall IN the value of money! produced by the
senselessly high reparation demands of France
augmented by the unthinkng usurious nolicv az
he capitalists, traders, and agricultural producers
as well as the senseless financial and taxation
Po6Icy-nas evoked most acute crisis in Germany
ONCE germany receives from abroad not only
IRON ana other raw materials but also grain and
COAL (the latter as result of the reparations oh
legations toward France and the seizure of the
aIun Vd.ey} tremendous rise in prices has come
ABOUT Wlthln the country. But the industrialists
and agricultural producers are not Satisfied ,;+h |
raising the prices for their products only in nro
portion to the foreign raw materials included IN
.he1 Out are STRIVING hard to raise these prices
III germany to the level of the world market nricos
ana therefore, although labor power in Cermanv i
cheaper tnan IN countries with stable currency
Germany has had to live through in 1922 beoinl' !
n llig WITH August terrific rise in prices The
chlef sufferers from this rise are the ,Uorl,o 81
employees During this time their wages ,yero in
creased IN the best case only bv 100 times yrbIo
prices rose by 4OO-5OO times. i0' wine
as result OF the need Of the proletariat to linn
II consumption, curtailment of production If -
Jects of first necessity commenced 6oi ~
pIooucClon also remained behind pre-YUar din9ey
slohs. IN consequence of the continuing fall If tb
value OF money and the lack of sufficient FOREIGN
competition, the consumers are forcad ~ - 80
price whatsoever The curt er7ayt IF ~ pg s:liy
on Gne internal market is profitable to fbe inJs
-IlaIlsts and agrlculturists who receive birt
prices When there is an insufficient supply. and
2cnsequenCly haye-no motive to increase ,Tod,,oti
u objects of first necessity. Tins cao
'ohdemned as long as the present Situation I9+
20 chronic underproduction lds's'
Chuef tlese conditions, the proetariat and tbo
uudn middle class get more and more -,
sned But industry also despite +bo Iayo ie;t
aIS INTO more and more difficult situation As
10. only because with the rapid fall of tbo ,oIs
!. - .NI9aCehed with the loss of any purcbasino
power abroad whatsoever with the no N is
Vmch would make the purchase of raT1 w. 4 ie m
Try olITlcut but also because the difficnIt of
OCainlng circulating capital becomes oraa+g ii
greater as the mark depreciates. e'''i anu
"lCnout doubt Austria is in still worse sitna- /
ION Despite the fact that her PREPARATION nav /
aents have been postponed for twenty wears tbo t
iii'ncial catastrophe in Austria has reached such
roportlons that the country is enabled 70 live or1
Hougn the pltlful scraps thriwn her by France +
,ngiand and Italy-too cheap price for her com,
ie'e enslavement by these countries
IN Austria the depreciation of the n,ono,, :
1dched such stage that there was no Iono, 10y
eIp. FOR this reason Austria decided r. a. !
enstn OF the credit of four countries France
ilg ldhu' Italy and Czecho-Slovakia who gnaran'
,eu heI loan of $50 million gold kroner nnJor
AGSTTaofdlnary usurious conditions. i
however, this method of "healino,, tho f;n
~ latiohaI economy must lie extremely beayiIYJ
! ele shoulders of the working class. For # will r
carried through entirely and exclusively Of +ba
spelse OF the tollers. 1t begins with the nIsc;nT
wages upon sliding scale l. e. the Iessenine t.
Cne reward of the workers and emnlovaS +b al
Y IengthenIng of the working dav and tbo i'm N
easing OF the intensity of labor. 'i'' N Of
The Polish state, which was created nv tho HI
'eaty OF Versailles, is composed of number of W
'rCs held together by force. The districts Of in
7Scnen' Upper Silesia, the free city of Danzip
As'ern Gallcla, all these constitute inflammabIe
a'ellal which is ready at any moment to burst Re
70 flames. This is why Poland is a great armed W
mp maintaining an army which in numbers is til
oonu only TO that of France on the European hi
nVlnent. From this there results the serious -
i"nciai sItuatlo nof Poland and her heavy de- St
nuence upon France and upon other countries.
er production decreases, accumulation does not oh
ke place. the monetary and credit systems are so
'ioca'eu the governmental finances are in con- ne ne
son. the nking-up of agriculture with industry W