The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-08-28


turned and become an upward surge
of America"
1t is unfortunate for Roosevelt
that his bland opinion about the
'upsurge" out of the crisis comedies
with the publication of the official
August bulletin of the Federal Re-
serve Board of the U. S. government.
Here we get some of the facts, not
cheap ballyhoo. And it is not pic
ture of "upSurge" that we get, but
picture of a flimsy artificially,
stimulated boom" that has no basis
in any real improvement in the
crisis, boom" that is already be-
ginning TO crack from lack Of real
economic support.
In the first place, Roosevelt did
not disclose to his country neighbors
that the So-called "upsrge" out of
the crisis has been based upon in
creased activity in only three indus
tries; steel textiles and auto. Basic
industries like Oil, building construc-
ton, coal, railroad equipment. etc,
have not shown response to the
pressure of the Roosevelt initiation
steam. And, as for steel, textiles
and auto, we shall see in a moment
that even in these industries, the
basic disease Of the crisis, "overpro-
duction" is breaking through all the
official optimism of the White
House.
Even the most amateurish of eco
nomic students Except ROOSEVELT
knows that the steel industry cannot
show any permanent improvement
without substantial buying from the
building construction and railroad
industries. And thus far, these two
basic consumers of steel have not
shown any increased activity what
ever in the steel market. On the
contrary, they are buying now less
steel than ever.
Says the very latest report of the
Federal Reserve Board. issued Au-
gust 25, "Dems nd for steel from the
railroad and building construction
industries remains at low level.
Of the increase in steel, the larger
part has reflected growth in orders
from miscellaneous industries, and
from the automobile industry, rather
than from big consumers, such as
railroads and the construction in
dustry."
So it is clear that steel industry,
which should rest on the three sup
ports Of auto, railroad and building
construction, is precariously resting
on only one support, auto. No won
der it is beginning to totter.
Roosevelt and his publicity agents
glow with delight at the prosperity"
in the textile industry, What does
the Federal Reserve report say?
activity in some industries, in
!, GLIDING textiles, shoes and cigarettes,
has proceeded at such rapid pace in
the second quarter of the year as to
indicate accumulation of stock in an
ticipation of demand"
In anticipation Of demand. This
lets the cat out of the bag. In tex
tiles, the fundamental capitalist dis
ease Of the Observation-Disclosures
getting worse, not better.
And what was the cause of this
feverish increase in production pf
textiles for which, even the govern
ment officials admit that there is
no market in sight? Was it increase
in buying power of the workers? Not
at all The Federal Reserve report
gives the answer.
'The rapid increase in activity
was due in part to anticipation of
further advances in commodity
prices and in part to the effects of
impending developments under the
new codes. ;"
So the government experts are
fully aware that the increased activ-
ity in textiles was based for the most
part, not On increased consumer de-
mand, but on fears of initiation.
And what about the workers in all
this? Yes, in certain industries there
was an increase in production of
about so per cent. But the Reserve
report admits:
Employment has expended at a
much slower rate than produc-
ton. -"
And the statistics in the American
Federation of Labor organ, 1.-THE
Federationist," showing increases Of
employment Of not more than l per
cent confirm this to the hilt.
The Federal Reserve report issued
U the day Roosevelt uttered has
pollyanna opinions, reported that at
least 100000 workers still remain
without jobs. And this is the most
reactionary estimate available. There
is no doubt that the army of the
unemployed is still right close to the
maximum figure OF 100000 admit
ted by the National Industrial Con-
ference Board two months ago.
WE have seen that the automobile
W industry has been one of the
mainstays of the recent steel boom.
But is there any real basis for in
creased auto production? The fig
ures show that there is not There
was an increase of SO per cent in auto
production in the last few months,
barely bringing the auto production