The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-06-29


which otherwise might have been ex-
ported to New York, where the fed
eral banks would have had to take it
into their reserve. This amount of
gold is now being disposed of piece
meal to numerous foreign bidders.
The gold fund of the federal reserve
has increased 1913, 100000 since the
beginning of 1927. The present hold
ing of gold and other lawful reserve
money in the federal banks, $3,193,-
$4,000, compare with only $1,503,-
$4,000 needed to meet the percentage
required against existing circulation
and deposits. This maneuver of pur-
chasing gold abroad and holding it
as a dead financial asset is new in
the worlds history because never be-
fore has any country ever amassed
the enormous supply of gold that
rests in the hands of the American
banking capitalists. Imperialism
gives rise to new problems and new
solutions.
The results derived from this new
venture will determine future policy.
If successful it will aid tremendously
in trying to solve the pressing prob
lem of gold surplus that grows ever
more menacing as it threatens to
reach such proportions that it lays
fallow, becomes stagnant and there
by endangers the whole edifice of in
ternational finance capital now domi-
mated by Wall Street.
Vast as are the qualifications of
American finance capital in European,
African, Asiatic and South and Cen
trail American countries, the enor
nous surplus produced by the work
ers who slave in industries dominated
by Wall Street accumulates too fast
to be disposed of through ordinary
channels. Hence the unparalleled
financial action of the United States
during the past week.
m the other hand England faces Ia
v steady export deMand for gold and
| it is feared that the reserve supply
in the Bank Of England will have to
be broken into in order to meet the
demand. Part of the new gold that
arrived recently in the London market
went to France through an under
handed system of buying thru secret
agents in Britain. Some of the new
gold went to India and the remainder
to Hungary. The selling of this gold
in the open market was bitterly re-
scented by the Bank of England. 1t
raised such a howl over the transac-
tions in which French agents partici-
pated that the Bank of France has
agreed to arrange further gold pur-
chases with Bank of England in order
not to disturb the London money mar
ket.S At the same time France is
trying to obtain some of the United
States gold supply by offering indus
trial securities. The difficulties en-
countered by the Poincare government
in sterilization of the franc force the
bankers of France who carry on in
ternational trade to purchase gold
bullion the commodity whose bodily
form is described by Marx as 'the
immediate social incarnation of hu-
man labor in the abstract" Wall
Street, which has come to the rescue
of France on previous occasions, is
anxiously awaiting the opportunity
for further inroads upon the indus
trial structure of that country.
With its limited resources Britain
lis desperately striving to secure a
dominant position in Germany, but is
being gradually eliminated there. In
spite Of the choice of London instead
of New York by the Berlin municipal
| ity for its new $25,OO0,OOO loan, the
German bankers declare that Ger
many must borrow predominantly
from the United States. Municipal
and state loans are guarantees that
the capitalists investing in them have
claim on the taxation of such gov
ernmental units forever and they con-
tinue to realize interest from the
loans long after the original capital
has been dissipated in projects for
which they were issued.
Although temporarily means of
ADSOTDiHR surplus bdpANdi hilS ihNSoN-
ments in European industrial and
state bonds soon turn into new sources
of surplus and the mountain Of wealth
piles ever higher, raising in a still
more acute form the problem of dis
posing of the surplus.
1t is this exact economic problem
that drives the American imperialists
relentlessly forward on their campaign
to subdue the whole world to their
will. The necessity for export of cap
ital, the desire born of necessity to
exploit the whole world is, after all,
the real movement that impels the
diplomatic lackeys of Wall Street in
all their negotiations whether at
Geneva, face to face with the agents
of other impcrialist powers, or forg
ing state documents in Mexico, or
ravaging Nicaragua, or maneuvering
for advantages in China.
Great Britain, before the world war
In -