The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-09-22

the gold standard by Great Britain
means that the dollar will assume
the leading role in the worlds money
markets for at least the immediate
future and that the struggle between
British and American capitalism will
be sharpened greatly.
Since most Of the worlds financing
of the movement of commodities on
an international scale has been done
by means of sterling exchange, it is
expected that the slump in the prices
of the worlds chief commodities
which has been very sharp thus far
in the crisis, will decline even more
precipieusly. In addition the decline
on securities thruout the world will
ave very serious effects on the en-
tire banking structure of the United
States.
British securities outstanding in the
United States total about $3.50, 900, 900.
There are in addition the $4,6oo,ooo,-
900 of war debts to the United States,
SIPS, 100000 credits granted to the
Bank of England by the Federal Re-
serve Bank on August l, and $780,
100000 credits granted by the private
bankers, headed by j. p. Morgan &
Co. on August % to the Bank of Eng
land. The interest and principal on
all Of these are payable in dollars.
This means that if the pound declines
by one-third, as capitalist sources
expect it to do, 1t will mean that
Great Britain will have to pay one
third more in interest and other pay
mentS to the United States. Pay
ments to Great Britain on its foreign
loans, however, where they are made
will be in the same inflated currency
as that Of Great Britain. Since most
of the British loans are to colonial
and semi-eoionial countries which
cannot pay their debts now under
any circumstances, it is possible that
the payments to Great Britain win
be hit tremendously. The gap be-
tween payments and receipts will be
widened greatly.
1t Is likely that the United States
will not receive the payments due on
the war debts for Great Britain will
not be able to continue them in the
present situation. This will mean
that the present tremendous deficit
in the United States budget will be
increased greatly. The United States
government is already making pre-
parations to increase taxes In one
way or another by tremendous levies
on the working masses. This attack
on the workers will be sharpened by
the additional deficit resulting from
the lapse Of payments from England.
The suspension Of the gold stand
ard means that practically all cur
rencies in the world except those OF
France and the United States will be
cheapened greatly in relation to these
two. The struggle on the world
markets will be accentuated. The
capitalist program for this intensified
struggle will be wage cutting on an
unprecedented scale. This Is the
prospect that faces the American
workers. Wage cuts are planned Tor
the steel and railroad industries. All
other industries are expected to fol-
low them in the coming weeks. This
was planned before the British crisis
had reached its present state. The
attack on the wages Of the American
workers will be sharpened many fold.
The capitalist class will try to put
thru sharper wage cuts, while the
Hoover government attempts 70 press
more taxes out of the working class
TIE capitalist class in the United
States in the present crisis trying by
all means in its power to replace
the pound by the dollar. The Ca
pitalist class in the United States is
carrying on the greatest struggle in
the history of the worlds finance
against British imperialism. The
granting Of credits by France and the
United States in August were part Of
that struggle against British imper-
ialism. They constituted q direct
blow at British Imperialism which
was forced to accept the credits due
to the shaking of its entire financial