The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-05-10
Rv II. N. WICKS

We cannot ballyhoo ourselves back
into prosperity" said Roosevelt in his
speech over a nation wide radio hook
up Sunday night. This was a back
handed slap at his predecessor, Hoo
ver
But Roosevelts speech was essen
TALLY ballyhoo. He tried to make his
listeners believe that the activities of
his administration were beneficial to
the toiling masses. He dealt in gen.
eralities. He could not produce one
example of any of the actions of the
administration benefiting the inpov-
erished masses of this country.
Proceeding from the fallacious
viewpoint that the fall in prices is
solely responsible for the financial
crisis Roosevelt tried to lay the
groundwork for defense of his in
flation policy. He would like the
workers to believe that soaring prices
show that recovery has already set
in. If such an illusion were widely
accepted it would arrest the growing
mass struggles against hunger.
Carries Forward Same Program
The Roosevelt policy is fundamen-
tally continuation of the one pur-
sued by Hoover. Only the words he
uses to cover up his attacks on the
standards of 'xfe of the masses are
different, the demagogy more adroit.
The further deepening of the crisis
imposes greater demands upon those
who would dupe the workers into in
activity-new receptions must be de-
Yised to aid in carrying out the capt.
tslst policy of TRYING to place the
burden of its crisis upon the toiling
masses,
Roosevelt, in his talk about price
rises, as the road to prosperity, is
only endeavoring to dispel resistance
TO the most drastic wage cut ever
imposed upon the workers in this
country. The initiation legislation en-
ableS the president to reduce the gold
content of the dollar by so per cent.
All other factors remaining I'M
changed, this would have the effect
of doubling prices. Real wages would
be cut down by half; that is TO say
the worker would be able to buy with
his wages only one-half of what he
can now purchase.
An Initiation "BoOnlet'
In the course of his demagogic
speech Roosevelt told his hearers;
To-day we have reason to believe
that things are a little better than
they were two months ago. In
dustry has picked up, railroads are
carrying more freight, farm prices
are better, but am not going to
indulge in issuing proclamatiOnS OF
Overenthusiastic assurance"
Yes, there has been a slight, in
some cases almost imperceptible, in
crease, in production. But there are
such things as rises in production
that, far from indicating a movement
toward recovery, are only the prelude
TO greater disaster This rise is I'M
mistakably of that character. It is
due mostly to the introduction OF
initiation, accompanying the usual
seasonal rise and the fear Of further
drastic depreciation of currency I'm
der other conditions we might expect
what is called an Initiation boom"
What causes an Initiation boom?"
It is caused by the fear of money be-
coming worthless, or so reduced in
purchasing power that it will buy
much less than formerly. In such
periods there are general moves TO get
rid of such money-to use it to pur-
chase goods that may be used in the
future. People with a little money
buy clothing, furniture and other ar
ticles Some buy automobiles as they
see prices of all commodities rising.
Firms that use raw material buy in
advance for fear Of a rise in prices,
Contracts are placed for delivery of
material and goods at fixed prices in
of a price rise. In prac-
tice it means that everyone who can
stocks up, if he is able to do 50, with
sufficient to keep him going for some
time. Some even borrow money for
this purpose, figuring they can pay
their debts in deprecated currency,
thereby gaining an advantage. Then
these people will be out OF the market
Ion a. long time 10 come.
Suet1 are some Of the features OF
~nst is ordinarily eebed am fnffa-
nor bonr-7 n rs neats dioyous that
errtl a '7nonr1' K ls' 10 MEANS zlss