The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-12-24
The United States Is Drawn Into
the World Financial Crisis

ditions of an anticipated in crease in commodity
prices. The scissors which have been steadily
widening will now open their full length The
working class will be subjected to mighty at
tack on both wages and working conditions The
lowering of production COSTS by wage cuts will
not be the only means by which the capitalist
class will attempt to squeeze the full benefit
from inflated commodity prices There will be
a terrific campaign of speed-up in keeping with
the lowered actual value of the profits follow
ing from initiation.
The rise OF commodity prices means for the
working class an unheard of increase in the cost
of living. 1t, means the return in more viruent
form than ever before the notorious III C. L.
the high cost of living. The decline in commodity
prices which followed out of the crisis took place
mainly in wholesale commodity prices The
working class did not benefit to any extent from
the cataclysmc fall in commodity prices SINH
larly the rise in inflated commodity prices will
take place in the wholesale market Since retail
prices always increase in proportion to -wholesae
prices, the inflated commodity prices will cut
more deeply than ever into the living standards
OF the masses.
This must not be interpreted as being the
beginning OF an initiation boom. Under present
conditions rise in prices can occur only in the
sphere of consumption articles This rise in
prices will not stimulate productive investments
inasmuch as the world stock of commodities is
even slightly higher now than it was at the
beginning of the crisis. Before any escape from
crisis to depression can ensue the world stock of
commodities must be cut down tremendously
mus imitation will cause rise in prices without
causing revival of production. Only continued
and deeper unemployment is in sight to ag-
gravate for the working masses the suffering and
misery following from initiation
Nor is this ALL Initiation means further bur-
dens upon the working class in the form of
every possible variety of taxation Secretary of
treasury Melons tax measure proposals to Con-
greSs is good indication of the new burdens
that the working class will be forced to shoulder
as the government tries to overcome its budget
airy deficit.
Says Secretary Mellon:
Tn view of the marked contraction in cor
poration and individual incomes, in recent
years the principal source of taxation, it seems
essential that under the Revenue Act of
1874, substantial revenues be provided by mis-
cellaneous taxes.
Ihese miscellaneous taxes" are none other
than the taxes which cut into the income of the
"SAfAAAAS
creased postal rates, amusement taxes on all
admissions above ten cents, a whole series of
nuisance taxes" taxes on tobacco and cigarettes
etc. Melons statement indicates clearly the
policy OF the capitalist class OF placing the bur-
den OF the crisis on the shoulders of the working
class. Those increased taxes which corporations
VIII have to pay, will also be in turn passed on
TO the Working-class in various indirect WAYS all
OF which will have the ultimate result of height
ening the cost of living.
All these developments place mighty tasks be-
lore the revolutionary working-class The in
creased attack upon the working and living
standards of the masses opens up even more
than before the perspective of sharper class
battles. The working-class which is now at a
starvation level will not quietly accept the edict
d further lowering of living standards. The OBJ
Jective conditions for the organization and lead
ing into struggle of the famished millions grow
increasing favorable as the necessity for Of
fering that leadership also increases. The Com
mlnst Party, the Young Communist League and
the revolutionary trade unions are confronted
with the task, more than ever before OF giving
organized leadership to the mighty class battles
that Will inevitable mark the resistance of the
Work1ng-class to the imposition OF ever greater
burdens OF the crisis upon the already starving
na,lli0r&. 49,