The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-09-24

that the banks of the United States
are feeling the effects Of the suspen-
sion of the pound. According to the
New York World Telegram Of Tues
dav there have been rumors that on
last Sunday the Federal Reserve
banks offered to the banks through
cut the country the sum of S1,O00,-
100000 to support them They, in
turn, were expected to do everything
in their power to prevent a financial
crisis in the United States.
ct may be interesting to review
some of the steps taken In the Cri-
sis. In the first place, according to
unofficial information, the Federal
Reserve Bank of New York on Sun
day agreed to extend about $1,000
100000 in credit to its member
banks to be used for sterilization
purposes, such as the purchase Of
stocks, bonds, sterling or whatever
was deemed expedient.
"The banks, in turn, were not
only to make such purchases freely,
but they were to be unusually len
lent to their creditors. That is to
say, only a minimum of loans were
, to be called. They were also to sit
tight on their own security hold
ings."
The position of the banking system
can perhaps be judged from the fact
that the huge Aransamerica Corp,
which has been one of the largest
banking organizations in the coun-
try has been split up and the major
part of the organization has been
taken over by Lee, Hingginson & Co.,
which is one of the affiliates Of j. P.
Morgan and Co. The big bankers are
making every effort that the weak
ness made evident in this case should
be prevented from cracking the en-
tire financial structure.
Intensity Struggle for Markets.
The intensified struggle on the
world markets which will result from
the suspension of the gold standard
in Great Britain has already start
ed. The Lancashire cotton manufac-
turers are more Optimistic than for
some time" In addition to the ne
gotiations they are carrying on with
the reactionary trade union leaders
for the speeding up of the workers
they now see the possibility to fight
more effectively on the world mar
kets against the United States and
Germany. This will mean that the
cotton manufacturers of these two
countries will attempt to slash wages
yet further in order to compete. The
textile workers in the United States
are faced with further slashing of
their present miserable STANDARDS.
This is true not only for cotton tex
tiles but for every manufactured
on the world market.
Admit Greater Misery.
A week ago the Conservatives pre-
pared manifesto denouncing the
of the gold standard by
Great Britain. In this manifesto they
pointed to the misery that would re-
suit for the workers if this were car
ried into effect. This statement was
printed Tuesday but the ConServa-
tives forgot to eliminate this portion
of the manifesto which they have
helped to put through as part of the
National government. The manifesto
~'otod the following would happen if
Britain went off of the gold stand
AID:
"WorId trade dislocated, London's
banking supremacy lost, the popu-
Iation of the country suffering pri-
yations and hardships."
The intensification in the struggle
for the world markets has already
started. From Sac Paulo it is re-
ported that British importers are
underquoting American i'm
porters and continued low sterling
rate is expected to boost British i'm
ports" This is one indication OF the
price cutting that British manufac-
turers are already making in the
worlds markets and which the Amer
lean manufacturers will meet by ter
rifle wage cuts against the. workers
in the United States.
Throughout Southeastern Europe
the effects of the suspensions of the
gold standard are being denied Wig
by all of the governments.
This indicates that they have all been
affected Immediately and sharply by
this drop.
The suspension of the gold stand
ard was known more than two weeks
ago according to New York bankers.
The banks throughout the New York
state were advised to get rid of their
British bonds for fear OF the drop
which would result in their value
through the fall of the pound. The
New York state banks disposed OF
their bonds at that time.