The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-08-22

tensify MANIFOLD its aggreSsiveneSs in Latin
America in order to save its investments and
to establish more firmly its rule. 1t is from
this angle that American Imperialism may de-
velop its further financial activities in Latin
America,
Suppose that the American government and
bankers do come forward with some new finan-
cial schemes for Latin America Is this pos
sible? 1t may be possible Why? Because the
imperialists will use everything in their power
in order to save their rule. They will resort to
increased exploitation Of the masses, repression
to further subjugation of the Latin American
countries and finally to war as way out OF
the crisis But the capitalists themselves admit
that in case of debt moratorium" for Latin
America, it would not even contribute to
temporary solution of the crisis. Therefore the
question is raised Of new investments and loans
These new loans may temporarily avert bank
ruptcy They will enable some of the govern
ments to make payments on the debts. But
these payments will have to be extracted from
a more intensified exploitation of the workers
and peasants of these countries.
The Latin American governments of Cuba,
Argentina Chile, Mexico, Peru Bolivia, ETC., are
already indebted of more than $2,0o0,o0O0ooo
which means a crushing burden Of interests.
Further loans will mean tremendous increase
of this burden upon the toiling masses.
The most important thing for us to consider
is the conditions on the possible new loans that
may be made to these countries. The funda-
mental condition put before the governments
in all cases is the promise and guarantee for
the regular payments of the interests and SINK
ing funds This means more supervision and
control by the foreign bankers and the exten-
sion of political domination by Yankee i'm
foxyo
class and the masses of the toiling peasantry,
the poor and middle class OF the city. For the
working class it means, in addition to the slash
ing of their wages, increase of the working day.
speed-up lay-offs, fascist terror against its or
ganizstions, etc. We have abundant examples to
corroborate the enslaving conditions that &C
company the execution of such financial agree
ments It is the proletariat and the toilng
peasantry that feel the main burden OF these
loans.
The Dawes and Young Plans for Germany
meant for the toiling masses deep slash upon
their standard of living speed-up and unen1-
ployment and fascist repression against the
workers fighting the capitalist offensive. Fur
thermore, the "panacea" of the Dawes and
Young Plans now appear to have been futile.
Their execution increased the offensive against
the toiling masses These plans did not only
fail to solve the contradictions Of capitalism but,
on the contrary, helped to deepen the crisis
The collapse of German capitalism threatens
European capitalism as well as capitalism IN
the United States. Hence, the debt mora
torium" How far will this moratorium" go TO
alleviate the situation can already be judged
by the failure Of the Dawes and Young Plans.
Let us take another example The Mexican
Lamont Monies de Oca Agreement provided for
the reorganization of the railroads through
loan extended by American bankers The agree
ment was signed in July Of 1890 The agree
ment meant for the railroad workers slash on
their wages and lay-offs. More than 1000 work
ers were discharged. The agreement was sue
ceeded by a fascist Labor Code which prohibits
and outlaws the strike action of the workers
against the urgeoisie-imperialist offensive.
The Mexican bourgeoisie and the landlords, in
alliance with American imperialism, have eStab-
lished a fascist dictatorship against the workers
and peasants. Persecution of the leaders and
militant workers of the revolutionary trade
unions, the Communist Party and the revolu-
tionary organizations.
Yet in spite of all the repressive measures,
in spite of all the provisions Of the agreement
the Mexican government was in default of the
payment of $1O0OO,0o0 few months ago.
Only the toiling masses suffer the burden OF
the loans made to the Latin-American govern
ments The native bourgeoisie and the land
lords are bribed into the reapng of part of the
fruits extracted by the exploitation of the
masses
The inflow of foreign capital in Latin-America
does not in any way contribute to the develop
ment of these countries, but, on the contrary,
retards their growth. Where does foreign cap
ital go to? 1t monopolizes the raw materials
for foreign consumption and for the industries
in the capitalist countries. Oil in Mexico,
nitrates and copper in Chile, tin in Bolivia, etc.
Chile, for instance, has rich deposits of metals
to enable it to develop its home industries, but
the policy of imperialism is TO hinder the indus
trial development of the country and create
huge market for the consumption of the manu-
featured goods produced in the imperialst coun-
tries, such as the United States and Great
Britain. The imperialists consciously provide
for the investment of their money in places
where there is the greatest opportunity for them
to extract huge interests, helps the maintenance
of feudal relations in the village If we see in
some of these colonies or semi colonies more
or less developed railway system in sections Of
the countries, it is because the railways serve
as transportation Of the raw materials monop-
olized by the imperialftr.
In Latin America TIA greatest part of the
loans made by the United States bankers goes
to the governments as national, local municipal
loans, etc. This capital serves primarily to
keep up the lackey governments, the salaries Of
the higher officials, army, police force, etc. In
order to pay the interests of these loans the
governments burden the workers and toilins
peasantry with huge taxation. The bigger the