The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-07-08

we can nOJlce i've important changes
in world economic conditions since
say, 1928 or 1929, these changes be-
ing, so to speak, symptoms OF the
present crisis.
10 There has been a tremendous
drop in world trade The value of
the whole of international trade
today is only one third of what
1t was in 1929
CD Consequently, with such q
falling off in selling, there has been
an immense accumulation of stocks
of goods The total raw material
stocks in the world now stand at
twice the amount they were in 1925.
Great stocks of wheat are held by
all the wheat exporting countries,
stocks for which no market can be
found One result of all this has
been rapid decline in wholesale
price levels. And this piling up Of
stocks has also taken place even
with drastic government regulations
cutting the Sown acreage under
grain, under cotton and the like.
and limiting production of such
4 commodities as oil These huge
I stocks exist side by side with, and
exist because, the hunger and want
of the masses, and the starvation
wages of the masses.
CD Unemployment has increased
to unheard of dimensions. The IN
ternatiop7l Labor Office places the
world unemployment total at 3d.
100000 so we may be sure that
the rial total is much more even
than CHS.
a. Policies OF economic war are
being pursued feverishly by all the
great powers Import quotas, en-
bargoes, export licenses for som e
commodities and export bounties for
others, surtaxeS against cheap mo-
ney, shipping subsidies, freight sub
sides, and a thousand other meth
ods Of waging aggressive economic
war, are being multiplied all through
the capitalist world.
go A race has begun among the
great powers to see who can de-
press their currency the most, with
a depressed currency, gain the cor
responding advantages of cheap pro-
duction costs so as to compete on
advantageous terms with rivals in
foreign trade. England left the gold
standard in the summer of 1881
Japan has had cheap money for
some time-her currency, the yen,
is now worth only 40 per cent of
its original value And now Amer
lea has abandoned gold as result
OF the Roosevelt policy Of initiation.
The dollar is today worth only about
three-fourths of its gold value.
ALL these facts are indications of
n the great narrowing of markets
that has taken place. A great
shrinkage of buying capacities has
been produced all over the capitalist
\ world. An intense struggle for the
markets that are left is the result.
The World Economic Conference
has been an episode in that struggle
for markets. All the great powers
went to the Conference armed. Great
Britain had abandoned the gold
pound, had to some extent CONSOLE
dated her empire markets with the
Ottawa agreements, had introduced a
system of protective tariffs at home
The United States had for a long
time previous the highest tariff walls
in the world For the Conference
she was armed as well with her strong
debt position and with the strong
weapon Of the falling exchange value
Of the dollar France has also been
consolidating her empire markets
Her trade with her colonies, which in
1925 was only 10 per cent of her total
international trade, now amounts to
% per cent of her total trade. France
armed herself additionally with the
power to impose special surtaxes and
to raise tariffs by decree, without the
need for consulting Parliament
Japan's position at London was
strengthened by her go per cent de-
valuation of the yen, by her dump
ing attacks on the markets of the
East, and by her predatory imper-
ialist attacks on Manchuria and
China. Germany arrived at the
Conference with a transfer mora
forum just declared on all private
and public, long and short term
debts.
THE most dramatic clash at the
l Conference was that on the ques-
ton of sterilization. This question
which hinges on the question of the
Roosevelt program of the cheap dol
lar, has a special interest for us. II
is said that devaluation of the dol
lar is necessary because of the Roose-
welt internal program Of price rails
ing. In fact, the two things are part
Of the same policy-price raising at
home, dumping abroad There is talk
of two policies, one urged by Moley-
a policy of economic isolation, and the
other desired by Hula policy of in
ternational cooperation. In fact
Roosevelt's domestic and foreign eco
nomic policies are one policy-price
raising and consequent wage cutting
at home, and aggressive international
attack on foreign rivals for wider
markets, leading ultimately to war
abroad
In 1929. the United States did 1871
per cent of all the worlds trade. In
1882, she did only 1874 per cent. Great
Britain had passed her and taken
Nfirst place This fact explains the
aggressive policy of the Roosevelt
government in the field of foreign
trade. But an aggressive policy
abroad must be paid for. 1t can only
be based on the most ruthless ex-
ploitation of the working class and
the farmers at home. Initiation cuts
wages by exactly as much as it raises
prices. Already the prices of bread,
milk, and other commodities of every
day necessity, have gone up. Already,