The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1932-03-21
BY HARRY CANNES

WHOLESALE swindling of the middle class by
the big bankers in the matter of foreign
bonds, the knife-edge of American penetration in
Latin America, is causing a stir in Washington
The mouth-piece of the discomfort is the bril-
liant demagogue, Senator Hiram Johnson, of
California, outspoken enemy of the Soviet Union
johnson has plenty to say about bankruptcy
frozen credit, swindling, corruption by Wall ST.
OF Latin American governments but he forgets
to draw the analogy of the Soviet Union paving
its debts and smashing the lies of default
which johnson and his associates spread so lib
orally.
However, the American workers have MANY
lessons to learn of the role Of the imperiaIsts
in Latin America SO intimately connected with
the Hoover hunger regime. The workers must
remember that Hoover himself was the chief
swindler Of the middle class, and the chief ar
guer for greater penetration of Latin America
He made trip to Latin America Immediately
after his election on the "chicken-in-every pot,
utomobile-in-every- garage" slogans
The economic crisis. and its offshoot the fl
nancial crash throughout Latin America, uncov-
cred the whole stencil of American financial"
penetration of Latin America. We must always
remember that marines follow the dollar as well
as the flag into colonial countries.
Some facts were brought out bv Senator John
son in his senate investigations of foreign-bond
flotations. Some facts and some lessons weren't
brought out which we will try to mention briefly
here.
The senate investigation established the fact
that the big bankers, with the help of the Hoo
Ver-Mellon- Stinlson-Morga government floated
S4,OOO,O0OOO0 In foreign bonds which we're
through the most approved Capone methods,
forced onto so-called small investors" If the
National City Bank Of New York wanted to
strengthen Its hold in Chile, Cuba, Nicaragua or
Columbia-if 1t wanted oil concessions, or any
other form of robbery-it would get the United
states government to approve loan it would
force this loan through the banks with govern
ment endorsement. In the floating OF the loan,
the big banks would rake in huge graft The
puppet governments would get graft The hand
OF American imperialism would be strengthened
and the local lackeys would speed-up the native
workers to pay the interest. The Times, referring
to Johnson's summary speech in the Senate, tells
OF some OF the pressure of the big banks against
the small (Which ultimately led to the collapse
OF so many of the smaller banks The Times
says:
"He also charged that large banks forced
small ones to aid in the distribution of foreign
bonds; he had received many letters from
small bankers, who complained bitterly Of the
compulsion put upon them"
But why the howl just at this time? The mid
die class bond buyers are not averse to sweating
the native masses for interest on their bonds
They are not against this huge export of CAPT.
tai with its resultant enslavement of whole CONT
nents, with its corruption of the Leguias the
Machados and Chang Kai Sheks They howl
now because with the economic crisis the big
bankers have crawled out from under the crash,
and the small investors are being made to nav
for the bankruptcies Testimony before the
Senate Committee showed that bond defaults
amounted to more than S8otoOOo0O.
This swindling process, of course, was backed
by the State Department headed by Stimson.
The big bankers got the OK of Hoover-Stimson.