The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-10-19
French Attack On u. S. Dollar
Prepares Way for Ldval Visit

"The French press has made re-
peated statements that the new
National Credit Corr. Ia being
formed as an instrument of infia-
ton, and no corrective declarations
have been made by French off
Gals"
The tempo Of the export OF gold
has increased since the present out
flow started. Since the suspension
Of the gold standard by Great BH-
tain the export Of gold from the
United States has amounted to
$685., 342 500. over 80 per cent has
been withdrawn directly by the
Fre~nh imperialists.
The raising Of the discount rate
of the Federal Reserve Bank of New
York from 21s per cent to 31z per
cent this past week, following an
increase from iis per cent TO az
per cent the previous week, is part
Of teh attempt Of the United States
bankers to curb the outflow OF gold
which is severely weakening the
financial stability Of the banks in the
United States
Laval is coming to the United
States to carry on the struggle for
a cut In the internally debts against
the United States proposal Of an ex-
tension of the moratorium on these
debts. The French imperialtsts are
opposed to the extension OF the
moratorium because according to LIE
Matin it "holds the threat Of ac-
cumulated debts over each debtor
country"-by the United States, and
would thus be a very important
weapon in the hands of the United
States in the imperiahsts struggle,
While carrying forward the attack
on the United States the French
bankers realize that, just as the sue
cessfu1 attack on the pound has
brought heavy losses to the French
imperiahsts while strengthening their
position among the imperiahst pow
ers, so the successful attack on the
dollar would bring very serious re-
suits for the franc. LIE Matin, while
carrying forward the attack, points
out also the probable serious effects
for the French in a shaking Of the
financial stability of teh capitalist
system through the weakening Of the
stability of the dollar.
Both American and English
banks are extensively Handicapped
by frozen credits which they held
in Central Europe and South Amer
lea. II they cannot realize some
Of their holdings, their position will
be very awkward. III they with
draw their advances and the debtor
country can find no new credits,
1t Is the latter which will be in
danger Of collapse, and that re-
suit would be just as dangerous for
every one"
La Journee Industrielle points this
out more precisely as follows:
"cDont let Us have any illusions.
II these attacks against the dollar
continue, it Is because gold itself Is
threatened, and, Of course, the
franc"
Out of the continuation OF the
financial struggle the capitalist class
sees already the phase Of general in
flation throughout the capitalist
world. The Telegram, in re-
ferring to the raising of the redis-
count rate by the Federal Reserve
Bank, states that at looks very
much at the moment as though the
financial dictators of this country are
attempting to force a certain amount
of initiation by rcsortirg to high
money policy" This initiation policy
is being fostered not only by the
high money rate, but by the credit
pool which has been established I'm
der orders Of Wall Street as the
National Credit Corporation.
The British capitalist class finds
that the present financial war will
lead to general initiation and the con-
tinuance of the struggle on this new
basis. The London correspondent of
the New York Sun points out that
the British bankers feel that If a
world monetary conference is held
and has no tangible results 1t may
make the financial crisis much more
acute, but that If 1t is not held ''The
arrival Of the new year may see no
country remaining on the gold stand
ard, thus involving for the world the
intolerabIe risk Of competitive infla-
tion." The British capitalist class
sees the remainders Of the capitalist
financial stability between the devil
and the deep blue sea.