December 27th, 1919.
THE COMMUNIST Page Four The Menace of American Capitalism Or the Power Behind Wilson fines. Harriman and the allied banks used By Newbold. URING the panic of 1907, and again the Rockefeld millions to achieve their a in the crisis in July August 1914, the (Second Installment)
The National City Bank helped Standard firm of Morgan and Co. this time together with the Secretary of the Treasury Americans still view that peril with the same Oil to secure control of the gas and eleccame to the rescue of the credit system of trical light and power interests of New attitude of remoteness and self complacency York, Boston, Baltimore, Chicago, etc. to America. Early in 1915, the Allies put all with which we viewed the early stages of their purchases in the hands of the Morgans, dominate the public utility corporations and the European War. We are quite inwe bougire for them at the rate of abons hydro electric concessions, both east and capable of comprehending how vividly that JGEHOUD ON more. during the first year.
West; to float the Consolidated and Su Sepermber 1975, a British and French peril impresses itself upon the apprehension Amalgamated Copper issues and to plunder Commission came to borrow 10, 000, 000.
the public for 20, 000, 000 on the deal; to meeting was held in Morgan library. potently the promises of social revolution attended by the big men on Wall Street, appeal to the propertyless classes of im consolidate Sugar and Tobacco, and to bring off many another gigantic triumph.
and the great railway King, Hill. poverished Europe. First of all the working people of Europe must be promised proThe immense insiders profits made urged subscription to the loan so that the tection against the possibility of another by the Rockefellers and their immediate asAllies would buy supplies here.
war, and assured the best possible conditions sociates during the years between 1890 and 1905, when the United States output of America Creditor Nation. for the speedy restoration of their material welfare.
petroleum rose from 45, 800, 000 to 139, 900, That gathering and those negatiations 000 barrels a year, and copper from 265, 100, Such is the fear in the sympathetic bosoms mark a turning point in history: They mark 000 to 871, 600, 000 lbs. a year, can be the definite emergence of New York as the of the propertied classes of the United States. Hence this most informative monthimagined. Since then the Navies of the centre of the money power of the world.
World have swallowed immense quantities Before another sikteen months had elapsed ly, controlled by the family of the late of petroleum, and a thousand new demands American Ambassador to Britain, chronicthe United States plutocracy had succeeded have been made upon Standard Oil. All ling that Representatives bankers have alin paying off the pre war mortgage of 5, over the world the octopus has flung its 000. 000. 000 Šonedlink like 400, 000, 000 ready met, under the auspices of the Council tentacles and its profits reach out as new of Foreign Relations, to study the ways and of this consisted of loans made to the Allies.
means of financing America share in the capital into the least known of quarters. Its interests were, up to 1912, almost everyWhat has since kappened may be judged plysical reconstruction of Europe, goes on by the following quotations from unimto point out that the Red Cross, ably where hopelessly inter mingled with those of Morgan, and between them they were bemanager, fully organized, and richly peachable American authorities :lieved to control more than ten billion dolfinanced, can carry a message of brother It was recently publicly stated that liood, and a practical, if silent, message of lars of credit. Associated with the National prior to the war the United States was democracy, into regiong never before so City Bank were and are the Big Five meat a debtor nation to the extent of about ready to receive and learn. Its field is a packers of Chicago, and the great Conti 4, 000, 000, 000 but that the most availstricken world. Its organizing head is one nental Commercial National Bank of that able figures indicated that at least threeof the principal partners of Morgan city and the Middle West.
quarters of this indebtedness has been and Co. and its headquarters in Petrograd Such was the power of the Standard Oil directly liquidated, and that in addition afiorded, for a time, a rendezvous for Keren bank and bond issuing house at the outbreak the war began private investors ski and Korniloff in their counter revolutio of the Great War. At its head was Frank in the United States have loaned to fornary plot against the Workers and Soldiers Vanderlip, who came to its board in 1901 cign governments between 1, 500, 000. Councils. It was the Rockefeller endowed straight from office as Assistant Secretary 000 and 2, 000, 000, 000, which is still which was sent to pioneer the of the Treasury, where he had gathered exoutstanding, while the Treasury De. work of re organization in Siberia. More perience wich he put to very good use in his partment has made available to the than ever will Charity come to stink in the work as a national banker. World Work, Allied Governments over 3, 000, 000. nostrils of a working class proudly demand June, 1916. Aiter the death of Pierpont 033 (Supplement to Commerce Reing Justice Morgan removed that masterful personality ports Bureau of Finance and Department of Commerce of the from the world money market, Frank VanDec. The Rise of the Rockefellers 2nd, 1918. derlip has rapidly come to the fore, and it is Up to July 1, 1918, we had exported We have examined Morgan and Co.
under his leadership that America has become a creditor nation.
more mercandise that we imported, to and the part they have played, first in the the extent of about ten billion dollars. development of America by British money, and Mr. Rovensky estimates that by the and then in the redemption of her properties Learning to Think Internationally end of this year, we will be in tiie posiirom alien exploitation, a proces accomIn 1915, the National City Bank, under his tion of a creditor nation to the extent panied by an even more complete subjection guidance, called into being the American Inof 9, 809, 090, 000. This will mean a net of Europe to United States capitalism. With ternational Corporation, capitalized, like the annual income of about 450, 000, 000, as the drying up of the London monetary re subsequent British Trade Corporation, at against annual interest payments to for servoir, and the absorption by Amerian pro 10. 000. 000. It had on its board the most eigners, when we were a debtor ration, ductive undertakings of the economic reprominent business men in the country. Its of 175, 000, 000 (GB Mallon, of the sources of Europe, the function of the Bankers Trust Company, Word Work, purpose was to make banking an ally of money changers has vastly altered.
commerce in the construction task of buildNew York, January, 1919 Morgan and Co. is a firm going rapidly into ing new markets for our products, new fields These colossal figures imply that the relative decline. Another concern, another of investment for surplus wealth, and a new United States capitalists who by their tergroup, another congeries of powers, which co operative function for American finance rific grip upon the banks, investment trusts for twenty years it has fought with co oper in developing the undeveloped resources of and insurance corporations, control the enated with, and is now succumbing to, takes the world. The private Bulletin issued tire credits of the republic, require the its place. That is the financial dynasty repto its members by the Federation of British governments of the other Allied Powers and resented by Frank Vanderlip, until nely Industries described this Corporation as a of Russia, by some means or otrer, to pay President of the National City Bank of New potentially more powerful combination them annually 90, 000, 000 in interest. That York. This concern, now the most powereven than the pre war German Cartels, cconomic ver connotes an indiciise poli íal banking house in the world, entered into backed and led by the German banks. It ical influence and anxiety. No wonder that un aliance with the Standard Oil interests reported Vanderlip as saying and mark Dr. Victor Clark, of the Carnegie Founda as iong ago as 1892 and, working in alianeccarefully the underlying unity of principle in tion at Washington, issues a soictaa warn.
with Kuhn, Loch and Co. began to assist these words and in the utterance and policy ing in the January World Work. We Harrimat to achieve his memorable railroad of President Wilson: may be faced by a Bolshevist Europe, united conguest. 6i the Mississippi Pacific Coast by a common bond of hatred for our alleged systeins, including the Union and Southern These changes (wrought by the ward. Anglo Saxon capitalism. real peril Pacifie, the Texas Pacific, Colorado and are bringing the United States new rethreatens the established social order. We Southern, Illinois Central and other great (Continued on page 8)