The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-08-24
On the
World Front
By HARRY CANNES
Dismal German Reports
Like the Year 1S46
Why the Pound Is Down

L ences, in their exclusive
clubs, in confidential circulars,
the ruling classes of the world
are beginning to express their
fear and dread of great class
battles throughout the capi-
talist world this coming winter,
Very little Of this oozes out into the
capitalist press. So far as Germany
is concerned, the eXploiters every-
where live in dread of great disaster.
For example, the London eco
nomic correspondent Of the Herald
Tribune, on August 81, cabled til
following on the German situate
Financial and commercial repo
from Germany are dismal. II
Hjalmar Schacht's economic dict
torship threatens further calanitie
E. German industries are return
ing to a war basis"
Not very hopeful picture for
world capitalism in this keystone Of
European reaction.
ANOTHER capitalist source. the
"A confidential circulars of tho
Whaley-Eaton Service, shows that
the dismal future and the threat
ened calalnities hit the working class
most. 'The official census conducted
by the Nazi Labor Front" they say.
reveals that the average wage of a
German worker is 1925 marks her
week ($6.56 at old par of exchange).
This average includes all workers Of
both sexes and all ages. Since the
census was taken wages have fallen
and the cost Of living has increased"
AMONG themselves, in their pri.
"a vate gatherings, the bosses read
and prepare their vigilantes and
fascist forces for such reports as the
following given to them in a con-
t1dential circular of the Interna-
tlonal Economic Research Bureau.
ahlllated with the Canadian Re-
search Bureau:
we have the entire city pOpu-
latiOn = not only here but in
Eur0pe-faced with the fact that
the coming winter will be the first
Of the depression when food is
scarce and prices high. The most
important single factor that pre-
vented serious social trouble in
the last five winters of depression,
in oar opinion, was the fact that
food was cheap-and in addition
the average citizen had some capt.
tai reserves left to live upon. It
Is now estimated, from present
trends, that the number of peo-
pie with small incomes, or de-
pendent upon relief, will be very
high during the coming winter
II but unfortunately their food
problems will be far more difficult.
TN looking ahead for the next
twelve months we are of the Opin-
ion at this time in this country
and Europe we are faced with So
cial troubles paralleling those
that took place on the Continent
in the year 1848."
That was when Marx declared:
THE Spectre of Communism is
haunting Europe!"
CLEARLY new world financial
v battle between the two leading
imperialist bandit powers for ad-
vantage and hegemony on the world
financial and commodity markets is
the rapid and forced drop in the
value of the pound. This was de-
llberately manipulated by the Brit
ish government, through withdrawal
OF support by the British Exchange
Equalization Fund, forcing a down
ward plunge of the pound. This
arises out of the inf1ationary moves
of the Roosevelt government, which
If long persisted in gives the Wall
Street trusts an advantage on the
world market, through their ability
to sell commodities cheaper, thanks
to lowered wages in the United
States.
THE battle is now on, and how far
it will go no one can tell. The
dollar followed the pound down.
ward, as did the German mark. But
this is just the beginning. The in
ternal and external factors in the
leading capitalist countries are driv-
ing towards imitation and sharp
ening of the imperialist conflicts.
German Fascism is on the verge Of
a huge wave of imitation and
campaign of dumping to put the
japanese venture in this regard in
to the shade. The British Board of
Trade, through it's Chairman, Wal
ter Runciman, has declared that the
home market has reached the sat-
uration point, and drive must be
made for new world markets. The
dip of the pound is the first gun.
The dollar is following due to in
ternal pressure, the growing finan-
cial difficulties of the Roosevelt
regime, a desire to raise prices to
benefit the big trusts. the program
of smashing down wages through
inflationary measures, etc.
THE French Bourse considered tho
1 drop in the dollar "a warning to
Washington" that the battle would
be carried to the bitter end.
| On top of the new intensification
of the economic crisis in capitalist
countries, coupled with the drought,
the deliberate policy of raising
prices on the necessities of life, the
new monetary battles between the
| ir1ar,e1.ia1iet rnhterS mill taaala the