The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-06-28
On the
World Front
L. BY HARRY CANNES -
News from Germany
Shirts and RevOlvers
UnpredictabIe Consequences
Rv HARRY CANNES

LIVERY day brings new evi-
~ dence of the growing capi-
talist catastrophe in Germany.
Yesterday three significant
and related facts came from
Berlin.
First: gold coverage en-
German currency dropped to 2.3I
per cent, virtually depicting the
gold reserves of the Nazis. Second:
the initial steps we're taken to disc
band the storm troops. Third: the
Nazi secretary of state, in the
Finance Ministry, Fritz Reinhardts
declared that the whole tax sys-
tenn of Germany would be revised
towards absolute Capitalization. By
this means local relief would be
cut down, and tax burdens against
the masses increased, in order to
work up reserve fund to lay the
basis for paying American, Brit
ish and French bondholders.
The German masses, who for
over IA months have suffered the
most criminal depredations at the
hands of the Nazis, are soon to be
presented with initiation and in
creased taxation.
UOW revolving this perspective is
III to the German masses can be
seen from the fact that the Nazi
butchers dare not attempt to go
through with it with their own
brown-shirted gangs armed and
in their barracks. These petty
bourgeois dupes have become abb
solutely unreliable, yes, even more,
dangerous to the further existence
of fascism.
Under the pretext of months
vacation" the storm troopers are
told to "store" their uniforms. It
isn't the uniforms Hitler wants
so much; but in the Sam Brown
belts there is the important re-
volver, and in the barracks the
machine guns, rifles, and other
weapons. The. Hitler government
wants to wean them away from
arms, uniform and contact with
each other. During the "vaca-
tion," the Nazi leaders will mo-
bilize their most reliable forces
in preparation for the civil war
against the tOiling masses, and
those storm troopers who are
rapidly going over to the struggle
against those who shamelessly
duped and betrayed them.
The homosexual beast, Col. Ernst
Roehm, head of the storm troops,
himself went on sick leave" and
he may be retired for whatever time
there is left for the Nazi regime
to his male harem.
HINDER the title, "Is Germany
" Facing Bankruptcy" Robert L.
Baker, writing in the July number
of Current History" makes a
devastating analysis of the eco
nonic policy and plumber of the
Nazi regime in Germany.
He shows that the NaZi figures
on employment are completely
fraudulent, and that despite inn
provement in war industries, the
number Of unemployed today are
as great as they were when the
Nazis came to power.
Even if this boast (of reduced
unemployed) is for the moment
accepted at its face value" he
writes, there has been a catas-
trophic fall in the standard of
living of the German wage-earner,
for the total payroll of workers,
employees, and domestic servants
has declined"
In the first quarter of 1884, the
payroll fell 6,100,0OO,OOO marks, or
about 10 per cent below the aver
age Tor 1882. AS an example of how
drastically wages are falling for the
workers in Germany he cites the
fact that in 1882 a skilled auto
worker in Saxony earned so marks
week and an unskilled worker
80 to IS marks. Today the wages
Tor the same skilled worker has
cropped to rs marks, and for the
unskilled IL to IS marks.
MN ADDITION" he states, the
purchasing power of his earn.
lngs has decreased enormously, be-
cause retail prices continue to rise
at rate out of proportion to that
OF the rise of raw materials
Food consumption in GERMANY
during 1888 fell altogether no less
than 1,000,0O0000 marks. Now on
top of all this, initiation is coming:
taxes will increase; prices are 20.
ing up still further; unemployment
will increase. That is why the storm
troopers who were promised the
fascist millennium are being dis.
banded.
Who got the benefit of the huge
wage cuts, where did the tremen-
oouSly increased state budget go?
Mr.. Baker answers: THE benefit
OF these subsidies to the heavy in
dustries in Germany is shown by
the increase of so per cent in their
profits during 1888" Reminiscent
OF RooSevelt's action in slashing
wages through N. R. A., and in
creasing Morgan's, Rockefeller's,
Ford's, Melons profits.) Wages
paid were reduced 20 per cent.
MR.. BAKER then draws conclu.
AVA sions-conclusions which were
forecast long ago in the Marxist-
feminist analysis of the Communist