The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1931-08-22
The debt Moratorium" for Latin
America
America
sv ALBERT MoREAu

y treasurer of the United States government
z-Msllon-Was negotiating with the European
capitalist powers in behalf Of Hoovers Plan
for debt moratorium for Germany rumors
we're circulating in Washington to the effect
that the head Of Yankee imperialism was
studying" plan for a similar financial meas
ure to be extended to Latin America The
rumors were Immediately followed by an Off
ciaI statement by the White House which said:
There is absolutely no foundation for the
stories circulated in the press to the effect that
this government is considering plans or discus
sions concerning South American debts" But
this statement was the conclusion of confer
ences held in Washington between treasury Of
ficals and representatives Of the Federal Re-
serve System which is the stronghold Of Yankee
finance capital
AS a result Of these conferences, two tenta-
tive plans were suggested by the Federal Re-
serve Bank in order to come to the assistance
Of the Latin American governments the major
ity of which are on the threshold Of financial
bankruptcy. One was to INSPIRE" United States
bankers to advance to the leading Latin Amer
lean governments sufficient money to meet their
interest payments. This way, it was believed, it
would relieve the drain on the national budget
Of these governments. The other was to adj
vance loans either directly by the American
government or by the Federal Reserve Bank.
Both tentative plans failed to materialize.
Meanwhile, the crisis in Latin America has been
further deepened with the constant fall Of COM
modify prices the depreciation Of the valuta etc.
The native bourgeoisie of Latin America,
thanks to whom Yankee finance capital was
able to bind these countries to the economic and
political chariot of foreign imperialism, are des-
perately clinging to the hopes for the material
ization of Hoovers moratorium" plan. The
Fyzy1- sS5ota J1T
the r1lmors Of Hoovers contemplated plan, and
even previous to them, came out in big noise
looking forward to the possibility Of financial
relief from the United States and British bank
ers On June oath, the Espectador Of Bogota,
displaying in big letters: "Hoovers plan can
be extended to South America" The Chilean
government (previous TO TbaneT falD went even
further In the face Of its inability to pay
S25 100000 as interest to the foreign exploiters,
it simply declared temporary suspension OF
payments, Of its own will
Why are the American government and tbs
whole consort Of Wan Street bankers so much
interested to find solution to the threatening
and actual bankruptcy of some Of the Latin
American governments Why are these bank
ers making strenuous efforts to come to the
assistance Of the bourgeois and landlord class
that maintain themselves in power through the
most ruthless exploitation and repression OF the
workers and peasantsp Because the inability Of
the Latin American governments to make pay
ments to the huge interests and sinking funds
means that the economic and agrarian crisis
which Is shaking the very foundation Of i'm
periaIist domination and ID the cause for this
Inability to pay, brings these countries nearer
to the revolution. It means that the oppressed
peoples driven by ruination, starvation and
despair will rise to put an end to their condi-
tons Of misery and serfdom.
A revolution of the oppressed masses Will drive
Yankee imperialism and the other inperialists
out of Latin America will overthrow the rule
Of the bourgeoisie and the landlords, will con-
fiscate the big properties of these masters and
the i1nperiaIst enterprises will radically inn
prove the conditions of the working class will
refuse to pay tribute to foreign bankers In
other words the millions Of dollars invested by
the imperialists and their economic key posi-
tons in the countries, are in danger.
There is also another reason for which Amer
team imperialism and its government is so much
concerned in this financial catastrophe sltua-
ton of Latin America British imperialism is
trvng to utilize the crisis in order not only to
countries, seek for new markets as rivals OF the
save its skin but also to further penetrate these
United States capitalists. Dispatches from
washington expressed this fear when on Feb
ruarv "a it was reported that the "consolda-
ton of Chiles foreign debts under British bank
ers would mark the first step toward Londons
predon1inanCe in the local financial field, posi-
ton hitherto held by American bankers"
Now the question arises why didn't the
famous plans of the Federal Reserve Bank ma
teriaIize? Why didn't the United States bank
ers come forward with loans or other measures!
First of all because of the economic crisis IN
the United States. The American bankers may
he forced by the crisis in Latin America to
come forward with some new schemes, but In
doing so they will seek to impose new condl-
tions of slavery and exploitation upon the toll
;y,o masses of these countries. Furthermore, the
situation in Germany makes it imperative for
the United States government to turn the face
IN that direction in an effort to save German
csnfts1isn from the proletarian revolution. Inc
e7onon,ercial and Financial Chronicle OF July
18th saws on the failure Of the tentative plans
for a Latin American moratorium: ". be-
cause of financial difficulties of Germany,
which created a situation that made the estao-
ushnent of new Latin American credits I'M
desirable"
American capitalism is faced with the deep
ening economic crisis within the United states.
since November, 1929, series OF bank failures
occurred. Factories, shops and mills are con-
stantlv throwing their workers out in the streets.
UNEMPLOYMENT is increasing. Immense over
production on the one hand and increasing I'M
employment on the other. More than 100000
iobless. Hoover was compelled to admit greater
increase of the army of the unemployed for the
coming winter In addition to this, we have
d. and ~