The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1932-03-09

petty-bourgeoisie suffer in similar way hay
ing their money holdings sliced for the benefit
Of the big bourgeoisie
In order to get clearer view Of the whole
credit situation, and the present financial crisis
with its train Of initiation with its perspective of
at least billion in taxes to come out of the
hunger-ridden hides of the workers, with its
schemes for giving the workers engraved gov
eminent certificates for their hard-earned cash,
it will be necessary briefly to analyse the con-
nection of the credtary crisis with the general
economic crisis in the United States.
During the so-called period Of prosperity"
in the United States especially during the stock
market boom of 1928-29 the big capitalist cor
porations, the banks, issued billions of dollars in
securities, bonds, stocks mortgages loans ETC.
Billions of dollars in worthless mortgage bonds
were issued through which the big banks made
huge fortunes by mulcting the petty bourgeoisie
and the workers. This great mass of paper,
forming the basis for credit, filled the banks the
big banks always showing the worst Of it to the
smaller banks. This process of wholesale credit
initiation and SWinding helped stimulate the
huge wave of naturalization the attempt of the
capitalists through the tremendous speed-up
through the tortuouS increased exploitation to
squeeze sufficient profits out of the workers and
farmers to pay dividends and interest on this
great mass Of pyramided stocks and bonds
AS Marx pointed out in characterizing the de-
velopment of credit in the capitalist system. at
reproduces a aristocracy of finance a new
sort of parasites in the shape of promoters,
spectators and merely nominal directors;
whole system of swindling and cheating by
of corporation juggling stock jobbng,
and stock speculation" This had reached its
highest level in the United States in 1929 IIst
before the stock market crash.
Meaning of Stock Market Crash
When the economic crisis came on with full
force, when huge overproduction manifested
itself, and the factories began to close down
with millions thrown out of work, the wl,ole
credit structure began TO be shaken at its very
foundations
The stock market crash itself was an expres-
sion Of the beginning of the creditary crisis The
full force OF this crisis was later delayed StocA
and bond values dropped $5oOOOooo,0oO BARK
rupting large section of the petty -bourgeodste
One capitalist authority declared that soon after
the stock market crash nearly every bank in this
United States filled with these debated paper
securities) was bankrupt. Through skillfI
manipulation, the largest banks dominated By
the leading capitalist financiers Morgan La
mont, Mitchell, Dawes, Mellon and Owen o.
Young were able to consolidate their position
through the formation of huge credit and stock
market pools, to make huge profits at the ex-
pense of the smaller banks, to unload tseir
worthless stocks and bonds onto tina lssnayles
banks, and to make billions amid the wreckage.
The result, however, was havoc among the
smaller banks, especially among the agrarian
banks. In the period Of about two years over
1000 banks failed with nearly SO 1000 100000 in
volved. The later bank crashes were not re-
stricted to the small agraran centers. They
d. l.,
~ New. YORK, Boston Chicago, philsdeIphis.
Go he CcncludedJ sA3rrss
III AA - a n III - As%N44S