The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-09-22
FALL
SPURS FIGHT
FOR MARKETS
CONTINUED FROM PAGE ONE


the highest capitalist circles there
was a meeting of President Hoover,
with Secretaries Stinson, Mellon.
and Lamont. Sunday night Flandin,
French Minister of Finance, met with
the officers of the Bank of England
to discuss the financial crisis.
Leading bankers in London are al
ready admitting that Great Britain
will remain off of the gold standard
for at least six months "if within
that period the country manages to
balance its international trade as
well as its budget"
From Basic in Switzerland, the 10
cation of the Bank for International
Settlements, it has been reported
that the pound will fall at least a
third of it's value. This has caused
surprise bordering on conservation
among the bankers in Paris. The
New York Times reports that Berlin
bankers incline to the view that the
Bank of England's action was an
S o S to all capitalistic countries,
warning them that the existing cur
rency system was in imminent dam
ger and that the present dislocation
of the worlds gold categorically de-
manded readjustment."
So serious is the situation that the
Daily Mail of London writes that
England sis rid of the gold standard
rid of it for good and ALL" This view
is agreed to by many American
bankers who are preparing to take
up the struggle against British i'm
perialism under the new conditions
of world exchange. 1t has been re-
ported from Washington that Great
Britain would be compelled In the
end to go on an adjusted gold basis
which would in effect mean a stabil-
ization of the pound at lower level. :"
The British capitalist class itself
is so fearful OF the outcome that
they have been transferring their
funds into francs and dollars.
All of the continental countries
were sharply affected by the German
crisis in July. Their funds became
frozen" in Germany and they were
forced to draw on their capital in
England. This occurred especially in
Holland, Switzerland and Sweden
This sharpened the crisis in the Bri-
fish economic situation which has
been developing over period OF
years.
The immediate effect OF the sus-
pension of the British pound will be
sharp contraction of the world
markets, and general and wide
spread attacks on the living stand
ards of the workers throughout the
world for the struggle on the world
markets. Through the suspension OF
the gold standard the prices Of all
goods to Great Britain, particularly
from the only gold atsndard eoun-
tries, France and the United States
will rise sharply. This will on the
one hand cut imports and on the
other will mean a tremendous rise in
the cost of living for the British
working class. The British working
class will be faced with the prospect
Of hunger wages due to the rise in
prices as well as to wage cuts. The
British capitalist class is determined
to prevent any rise in wages to take
account of the rise in prices.
Not only will imports be curbed
and the cost of living rise as the re-
suit of the suspension of the gold
standard, but this will be intensified
by the erection of high tariff walls
by the British capitalist class In or
der to obtain q favorable balance
Of trade.
Not only is England faced with In
flation as the result of the suspen-
sion of the gold standard but this is
likely to be the next step taken by
the weakest of the debtor powers,
This is admitted by Pertinax, one OF
the leading financial writer's in Paris
He writes as follows:
"The greatest creditor nation I'm
the world allows its money TO weak
en- and that example Is dangerous.
Countries which are now hesitat-
ing on the verge Of monetary In
flation may not be able to resist the
attraction Of paper money. The
pound sterling note was the me
dunn Of all world commerce and
the pound note has received q
severe blow.
"The economic international Is
In full retreat. England has with
drawn TO her resources and the
other countries which preceded her
in this policy will not be long sur
passing her. As concerns the gen.
eraI total Of exchanges, the slowing
up Of commerce seems inevitable
1t has been estimated that sixty
per cent of the worlds business is
done IN sterling Tho rfYSnapsioy, If