The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-09-23
PARTY
AIDS BRITISH
WAGE CUTS
CONTINUED FROM PAGE oNES

W - "a ~ ~ Il ~
CONTINUED FROM PAGE oNEI
extent Of the pressure against the
pound by foreign capitalists has not,
however. been felt yet, according to
Wall Street bankers. Due to the clos
ing Of the London Stock Exchange
the effect Of the sale of British Sc
curities under the new situation has
not yet been felt completely. The
bankers have pointed out that the
full effect Of the fall Of the pound
will come into view when the Lon
don Stock Exchange opens and Brit
ish securities are forced to take the
blows directed against them by the
capitalists of the rest of the world,
particularly Of the United States and
France. The feeling throughout the
capitalist banking circles is that the
pound is far from being stabilized at
its present levels and that a further
sharp slump can be expected in the
near future.
Not only do the bankers expect
that the pound will slump further but
they expect that it will take "a pro-
longed period, covering several years"
for the pound to reach de facto sta
bilization, that is, sterilization at any
definite price. This means that In
the course Of this period no matter
how long it lasts the capitalist eys-
tenn throughout the world will be af-
fected seriously by the instability in
the pound. Despite the fact that the
dollar will take the place of the
pound to an important degree in the
financing Of foreign trade the pound
will continue to be Of great import
ance and its instability will affect
the entire capitalist world.
All Of the important stock eX-
changes in Europe and throughout
the world with the exception Of New
York and Paris will be forced to re-
main closed as long as the London
Stock Exchange is closed. These ex-
ceptional two exchanges will be
forced to follow if the period is a
prolonged one.
N. Y. Stock Market Stops Slump
Temporarily
While the closing Of the London
Stock Exchange prevented the full
effect Of the drop in the pound from
becoming felt, the prohibition Of
Short selling on the New York
Stock Exchange prevented the U. s..
stock markets from feeling the full
effects of the British crisis. The Sc
robustness of the situation as felt by
the Wall Street bankers can be seen
from the fact that the prohibition of
short selling" was the first ever re-
corded in the New York Stock Ex-
change. Furthermore, according to
the New York World Telegram,
New York financiers supported
the stock market with every meth
cd at their disposal today and pre-
vented the break in prices which
some observers had expected to re-
suit from the crisis In London"
The drop Of a point in United
States Treasury bonds, which had
been expected to be exceptionally
strong in the British crisis, together
with rise of up to point in United
Kingdom bonds
gave support to rumors that an
exceptionally strong banking group
was selling United States Treasury
bonds to buy British bonds and
thus support the market and re-
store confidence In England"
The capitalist class throughout the
world is trying to cover up the Sc
robustness of the crisis. In Great Brit
ain the same lying propaganda is be-
ing used as during the worst days of
the imperialist war. The New York
Post describes this as follows:
Newspapers today show a singu-
lar cheerfulness, met with only
during the war. Judging from the
press, there Is no disaster, there Is
simply some trouble which, happily,
will soon be over"
Every attempt is being made to
broadcast the most cheerful lies
while not word is being said about
the increasing misery that is in store
for the British working class.
Every nuance of official propa-
ganda Is being used TO encourage
the natural British trait of steadi-
ness In a crisis. The public is in
formed that its money Is safest in
banks The official dogma has IL
that the pound is still worth 20
shilIings In England and conse-
suently that IL Is better off In a
bank than In q stocking.
"NoshinE n aid about the rise