SOCIALIST APPEAL JULY 23, 1938 Stock Market Rises; Basic Crisis Continues SOCIALIST APPEAL Vol. II No. 30 Saturday, July 28, 1988 Published every week by the SOCIALIST APPEAL PUBLISHING ASS at 116 University Place, New York, Telephone: National Office: Algonquin 8547 Subscriptions: 00 per year; 00 for six months. Foreign: 50 per year. Bundle order cents per copy. Single coples cents.
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Entered as second class matter September 1, 1937, at the post office at New York, Now York, under the Act of March 3, 1879.
MAX SHACHTMAN Editor HAROLD ROBERTS FRANK GRAVES Associate Editors STANLEY Business Manager AI Democracy and Communism Ludlow Retreats Representative Louis Ludlow, author of the famous congressional bill to provide for a popular referendum before the declaration of war, has announced that he will introduce his bill again in the next session of Congress but in a modified form.
Whereas the last version his bill provided that war could not be declared by the govern ment without a popular referendum to sanction it, unless there was an actual attack by a foreign power or powers, the latest form of the bill announced by Ludlow provides that the government may declare war without a refer.
endum in case of attack by armed forces, actual or immediately threatened.
This is the second important modification introduced into the Ludlow Bill by its sponsors.
Originally it provided for taking from Congress the power to declare war unless the territory of the United States was actually invaded by armed forces. Under pressure of the very imperialists and war mongers the bill was supposedly direct ed against, sponsors Ludlow and LaFollette amended their own proposal to provide that Congress can declare war without consulting the people and getting its approval, provided the armed forces of another nation or nations attacked any country in the Western Hemi.
sphere.
By this first modification Ludlow placed himself openly on an imperialist basis. He acknowledged thereby the right of Wall Street Congress to hurl us into a war in order to protect its financial and industrial interests throughout Latin America. According to Ludlow and LaFollette, it is perfectly all right for Congress to declare war in order to uphold the American imperialist protectorate over the Western Hemisphere.
The second modification is, if anything, more revealing Originally, the bill narrowed the powers of Congress by specifying its free dom of action only if there was an actual invasion of territory. The revised bill permits Congress to declare war without a referendum if Congress believes that an invasion is immediately threatened. Congress could easily interpret this proviso tomorrow in such a manner. assuming the bill were already law.
as to declare war upon Japan, on the ground that an invasion of the United States is imme.
diately threatened.
We have never believed, and do not now believe, that even if the original Ludlow amendment were adopted as the law of the land, it would actually prevent war. The imperialist masters of the have a thousand tricks at their disposal for circumventing any law on the statute books that stands in their way. But, as we declared in a recent issue, the sentiment aroused by the Ludlow Bill expressed an entirely progressive feeling among the American masses, reflecting their healthy distrust of the capitalist government and a determination to have a direct say in the vital life and death question of war. Such a sentiment deserves cordial support.
At the same time, however, all experience, the latest included, demonstrates that the capitalist and middle class politicians do not and cannot conduct a struggle against war, even if on a small scale. If they are in the struggle at all, they participate only in order to betray it to the imperialist war mongers. Ludlow second retreat is a sample of the sell out. What little guts the original Ludlow Bill had, are being cut out of it by its very author.
Only if the working class, whose interest in fighting imperialist war is direct and decisive, takes the leadership in the struggle, and ceases to rely upon its capitalist Friends and patrons, is there any guarantee that the fight will be conducted seriously, consistently and triumphantly, off at a moment notice the minute war breaks Paul Revere. 1938!
out In connection with the visit to Tennessee of the Congressional Investigation Committee, the New York Times (July 17, 1938)
reports the following highly significant item: By DAVE COWLES that had begun in March. Be Dr. Harry Curtis, chief chemist, The upward spurt on the stock tween February and March, govexplained to the Committee at nitrate plant market which began June 20, and ernment spending for public conhas continued since, has had im struction in 37 states had inNo. at Muscle Shoals that the plant, built mediate reactions. Capitalist eco creased from 60, 000, 000 to little during the World War, was now being used nomists are aflutter with hopes of less than 100, 000, 000. This fact is to produce concentrated fertilizers in conneca new prosperity. The capitalist doubly important. As a user of tion with the farm improvement and press magnifies the spurt with capital goods, the construction front page headlines, seizing upon industry is interwoven with preesoil conservation program, and was being kept proof that capitalism is cap tically all the durable goods inin standard condition, so that it could be able of restoring prosperity. And dustries, some of which are deused to produce war materials.
already there is an answering pendent upon it almost entirely In case of war, be said, the plant could echo of pious hope among un for their market. Furthermore, as tutored labor leaders, pink. ten a disburser of purchasing power, produce in a day twenty seven tons of eleliberals and plain, ordinary de construction activity distributes mental phosphorus, used for incendiary celving scoundrels in the ranks purchasing power in greater debombs and smoke screens. He added that it of the working class.
gree than average industries. And has an enormous capacity for that purpose.
Responsible Wall Street invest the purchasing power it distribment houses are not so optimistic. utes goes almost entirely into It might be added further that the As late as June 18, Poor Invest stimulating the consumption itself is only a huge smoke screen behind which ment Service wrote, The stock goods industries.
the war preparations organized by President market is gradually working itself Indexes Rise Franklin. Big Navy. hate war. toward a point from which a sizeRoosevelt are taking place.
able move may develop. Direction By April there were growing cannot be predicted with cer signs that the depression was Capitalism prostitutes even most progressive tainty, although the economic scraping bottom, that government social and economic possibilities to the cause of background suggests the down spending was taking hold and imperialist war and devastation.
side. And their judgment of the that recovery was around the economic background was that proverbial corner. Some of the Only in the January 1932 April more important indicators of cycWatch Their Hands!
1983 Interval of the Great Depreslical revival began to appear. The slon was business activity so low. unadjusted index of automobile production began to rise slowly in The more frequently, the more ardently, and Economie Activity Falls February and continued upward the more eloquently the heads of capitalist The fact that the stock market into April. The unadjusted index states proclaim their devotion to peace and rose while economic activity fell of new passenger car sales rose their desire for disarmament, the more assiduindicates that the stock market over 50 percent between February no longer reflects the self recuperand April. The index of total ously and cunningly do they prepare to plunge ative powers of capitalism. The residential building contracta the peoples into the shambles of an imperialist war. This has become axiomatic.
stance, did not begin June 20th. during the same interval. Net rallpresent stock upsurge, for in awarded rose almost 100 percent New York Times dispatch from San Fran.
Actually, it began two and a half way operating Income, which decisco on July 14 reported that President. months before, in the opening clined very sharply during March days of April. From that time on to April 1937, smoothed out ita Hate War. Roosevelt, standing within sight it climbed slowly and waveringly decline during the same months of sixty three gray hulled men o war at anchor until it began its sharp rise on of 1938. The most comprehensive in the bay today, declared that 1939 would be Monday, June 20th. At no time indexes have either slowed up did this rise reflect rising pro their decline or made slight upa year of world wide rejoicing if it saw defin duction and expanding business turns.
ite steps toward permanent world peace. He ex709activity. Both these continued to the question is no more one of pressed the fervent hope that the costly and decline. They gave decreasing when the decline will end. The dangerous world armaments race would be profits in the present and even real questions now are: How halted and stated that the United States was less hope of profits for the future. great will be the recovery? How Such prospects could not sustain long will it last? What will it ready to help in this direction.
a falling market, much less stim mean to the workers?
The circumstantial irony of this pretty little ulate a rising one. Looking only We gave the answer to these peace talk, as we observe, was not lost on the toward private industry, Poor questions in the Socialist Appoal, Times correspondent who wrote the news disHow Browder Has Abandoned the Traditional Revolucould see no justification for over three months ago, when the patch. He went on to quote Roosevelt as say.
tionary Teachings of Marxism on Decisive rising stock market and con Roosevelt recovery and rellef cluded logically that the econo program was accepted by Coning: We fervently hope for the day when the other leading nations of the world will realize and Basic Questions the gress. What we said then is still mic background suggest downside in the stock true today and is worth repeating.
that their present course must inevitably lead By OLGIN Were capitalism dependent upon At best, the program will them to disaster. We stand ready to meet them bring a feverish recovery that (At Its recent convention, the on this very State and its laws. tion: they were opposed even to itself for recovery, Poor predicwill be short in duration, preclpand encourage them in any efforts they make Communist Party adopted a new At a time when it is necessary the united front against war and tlon would have come true. Howtoward a definite reduction in world armament.
constitution which says that the for the workers to develop the fascism. The Socialist leaders ever, capitalism today is incap itate in decline, and at all times party opposes with all its power will to power which shall ulti again talked democracy instead able of self recovery. Today the will press down the living standThis holier than thou piece of sanctimoany clique, group, circle, faction mately crush the capitalist of revolution. They talked great stimula of recovery Is ards of the workers and farmers.
nious hypocrisy stands out all the more boldly or party which conspires or acts State and make the workers and League of Nations and disarma government aid. In 1933, governThe public works program will and revealingly in view of the fact that the last employ a portion of those disto subvert, undermine, werken or farmers the ruling power in a ment conferences instead of a ment aid in the form pumpplaced from private Industry by session of Congress, on Roosevelt initiative, overthrow any or all the Institu State of their own making, the real struggle against war. What priming and credit. expansion the current depression The passed the greatest peacetime military and naval tions of American democracy. Socialista tell the workers that was the actual achievement of gave the impetus to recovery. The major portion, however, will atill budget in the history of the United States. Even And Inblu formal statement to nothing of the kind te needed and the Socialist conference? It current crash began in the early tho MeNaboe Commission, Earl that they have to remain within spread Illusions among the work months of 1937, when government be unemployed. In additton, there while Roosevelt was speaking his piece, navy Browder declared that while the the legal limits prescribed for ers to the effect that by using the aid dwindled away. Today, too, will remain the 9, 000, 000 who yards were rushing work on two 35, 000 ton Trotskyists and Lovestoneltes at them by the ruling class. Instrumentality of the capitalist government spending and credit were unemployed at the peak of Revolution only Answer battleships scheduled to be completed within tributed to the Communist Party State, they can abolish the evils expansion have begun the work economic activity in 1987. The An extraordinary international of capitalist oppression and by of recovery and excited the stock housing program will increase two years. At the same time, blue prints were mocracy, the party was in fact socialist Conference met in Paris using the instrumentality of ca market with hopes of profit. The employment in the building In being drawn for a super battleship of 45, 000 always the staunchest advocate of at the end of August, 1983. The pitalist international institutions stock market, therefore, has bedustry as well as in the auxiliary tons.
this democracy.
In the realm of political hypocrisy, the palm How utterly hypocritical and question of fascism, the question Hague Tribunal, they can abol profits based on government ever, all this will fall of its purish war.
spending and not on the expanpose unless private industry joins goes to the heads of the democratic capitalist mendacious the new Stalinist poot war and peace. Did they sugin the expansion. The Roosevelt sition is, muy be seen from the gest any effective remedy against we communists say that there sion of capitalism.
states. The fascists can afford to be more outThat this is true is proven be quotations which we reprint be fascism? The only real remedy is one way to abolish the capital administration realizes this. The spoken. On July 15, the day following Roose low. They are taken from an of 18 a revolution of the working ist State, and that is to smash yond question If we compare the purpose of desterilization of gold and the expansion of credit is to velt San Francisco speech, Sir John Simon, facial Communist Party pamphlet class to overthrow capitalism by it by force. To make Communism stock market trends with governstimulate expansion in private chancellor of the exchequer in the British cabiM. Olgin, second revised edi State. But the Socialist leaders hold of the State machinery of rise that began in April reflected industry by inflation, net of Prime Minister Neville Chamberlain, tlon, issued by the Workers Lwere opposed not only to revolu capitalism and destroy it. The Inflation program will increased government spending warned in the House of Commons that civiliza brary Publishers, in May 1935, CAUSE spurt in economic activity, causing a further increase in tion might perish if every country goes on pil that is, two years after Hitler ing up armaments forever and ever.
came to power. The quotations employment, although will are merely a statement by Olgin never absorb all the millions of What was the occasion for this speech? It unemployed. However, it will of the traditional Marxist and was delivered in connection with a government communist position, which has An Editorial aleo Increase prices and the cost plea for the passage of the 1938 39 army, navy now been completely abandoned of living for the workers. Work The case of Joseph Zack demands the active by the Stalinista Ed. place in Czechoslovakia, on his mother initia ers now employed will suffer suband air force budget amounting to 1, 750, 000, 000, which the House proceeded to pass withattention of every worker, every labor organi stantial cuts in real wages. The tive, two years after his birth in Scranton, Pa. unemployed who are now on out a single dissenting vote meaning that it You have been taught that we from which he and his mother left for her nazation, every progressive in the country.
relief or getting 58 month on Joseph Zack is threatened with an order is. tive land. Furthermore, Zack has not only been was also voted for by His Majesty Loyal Op live in a democracy, that the inworks projects, will be even moro stitutions of this country are bulposition, the British Labor Party, whose parsued by the Immigration authorities for his de given regular passports in the past, but depressed. Those unemployed warks of freedom, that the gov. portation to Czechoslovakia. The order was is the validity of his claim to American nationality only will get temporary rellet liamentary representatives are just as ready ernment of the is a govtoday as they were in 1914 to betray the inter who get jobs in private industry ernment by, for and of the peosued despite the fact that Zack was born in was recognized by the Immigration Division of ELS ests of the workers by enlisting them in a war ple. From time to time you are Scranton, Pa. and is therefore an American a result of this inflationary the Labor Department when it cancelled the upewing allowed to cast your vote, and citizen.
for the profit and aggrandizement of their imdeportation proceedings in 1934 which had But this rellef will be shorton this occasion you are told that The circumstances of Zack planned depor. originated with the Michigan Criminal Syndi.
perialist exploiters.
Hved. Inflation will cut the pur by universal suffrage the sov.
tation are what lifts the case far above the ordiCreign will of the people is exchasing power of the workers calism cases in 1923 in which he was involved Sir John Simon, wrote the Times correspondnary and unemployed. Surplus protogether with Foster, Browder and Amter, that ducts will pile up as capitalists ent, spoke with emotion such as he seldom pressed.
The truth of the matter is that socialist party member before the war, Zack is, the same gentlemen who have now testified prepare themselves against fuallows himself in public speeches, and de this is a rich man State and a became one of the founders of the Communist clared that If we do not succeed and the world rich man government. The State Party in 1919 and one of its leaders. For years against him before the Department of Labor! ture price rises. Consumption will have lagged again behind does not succeed in finding some way to end the Is there to act on behalf of flThe Browders Act in Silence production. And the illusion of was a member of the Central Committee of nance capital and to protect its folly of this everlasting expenditure on armaThe deportation warrant against Zack is in recovery will crash into the ments, then, indeed, the future we shall be interests against the people. The the more than once a delegate to Mosgovernment is the executive comreality of depression.
cow, and before his separation from the party, every possible respect a shame and a disgrace.
One preparing for our children is one at which we mittee of the big trusts. he was in charge of its trade union work.
The Browder gang keeps silent in its press, bemodification only has to be made to this conclusion. The Inmay shudder. To cap this: While Sir John State Exploiters Weapon cause even it does not yet have the brass Broke With Communist Party in 1935 flationary upswing will at the was speaking the Secretary, Sir Kingsley avow and urge in public the perfectly infamous same time have tuned up the proThe State is an instrument of Wood, was announcing an order for 1, 000 In 1935, Zack broke with the Stalinist party, power in the hands of the big joined the then Workers Party for a short time, thing they did in the closed chambers of the ductive machinery in preparation high speed pursuit planes. the biggest airfor war. Within less than two industrialists, bankers and landgovernment deportation experts.
years the alternatives of catasand has since been active in small left wing craft order ever given to a single firm. lordy, who by this token are the As for the latter, they are, we believe, part of movements.
We seem to remember that in 1914, while ruling class. The state is there trophic depression accompanied President Roosevelt political and administrative In 1936, Zack wrote to the State Department by the danger to effect the exploitation and opsocial upheavals actively preparing to plunge Britain into the machine. Roosevelt today poses as the great or war of imperialist expansion world war shambles, the then British foreign poor and small farmers, and also pression of the workers and the in Washington, asking it to intervene in an at friend of the political refugees. He has just will present Ves. Wilson secretary, Sir Edward Grey, did quite a bit of tempt to get his wife and son, held in Russia before him had of the subjugated colonial peoarranged an elaborate farce in Evian, to discuss the alternative of World War. Roosevelt, public emoting and shuddering in order to de pies, by the ruling class. The con as virtual hostages, to the United States. The the question of allowing the politically perse far more than Wilson, has preceive the workers he was planning to send to stitution, the government, Its State Department, far more interested in maincuted to find refuge in the democratic coun pared for this alternative and will the trenches. little later, the pacifist Woodrow WR. Ito agencies the army, the taining friendship with the Stalin bureaucracy tries.
take it when the occasion arises.
militia, the police, the courts, the Wilson repeated the act in the United States.
jails, the legislatures. all are than in helping an American citizen, showed At the same time, his Department of Labor The present stock upsurge not All of which goes to show that the workers there to effect the exploitation no interest in Zack request.
deports, each year, more people than are adonly reflects the government inin this and every other country, if they are to be flationary policy of stimulating and oppression of you and mil They did show a great interest in getting rid mitted under all the immigration quotas! That recovery but it also presages the of Zack. And in their efforts, Zack now charges, ready to smash the war plans of the imperialists, Hons like you.
is a statistical fact. More than that, it now pro coming war for American ImAt a time when it is necessary must watch the hands of the capitalist politithe Communist Party gave signal assistance. In for the workers to understand the poses to deport a citizen, solely because cians not their mouths. Deeds are what count.
a word and those who know the present Stareal nature ot the State as an he is a revolutionary worker and does not suit The pacifist, humanitarian words are merely a Instrument of exploitation and linist line will not be astonished the Browderthe Stalinist machine in Moscow and on cover for deeds leading inevitably to warLERMAN BROS.
oppression they (the leaders of ites turned coppers and deportation agents at 13th Street 37 EAST 14th STREET humbug to deceive the masses into believing Socialist Party. Ed. tell the the same time. That what is called service to This revolting plan of Browder and the Labor workers that Stato, as conNew York City that their own Imperialists will plunge the naAmerica democratic institutions. stituted at present, can be Department must be scotched in the bud right Union Stationers and tion into war if the country is first attacked or Able to Prove American Citizenship means of liberating them from now. Every voice must be raised against it imPrinters in order to serve some lofty ideal such as the exploitation and oppression. At The claims of the State Department in back mediately, and out loud, for everyone to hear.
Phone ALgonquin 8366 8 preservation of democracy and the independence time when it is necessary for ing up the deportation warrant are that Zack Silence or indifference to this unique case is Selling to Labor Organizations of small nations.
the workers to gather strength is not an American citizen, because there is a not only a crime, but means that the case will at Lowest Prices and fight against the capitalist Our Printing Plant located at Eternal vigilance! Watch their hands not record of his baptism in Czechoslovakia. In re cease to be unique and be turned into just an 36 West 15th St. 8th Floor, their mouths!
Phone Algonquin 7823 preach to the workers a rollance ply, Zack is able to prove that his baptism took other American Custom!
The Case of Joseph Zack perialism. and War One of the outstanding enterprises of the New Deal, to which its advocates point with great pride, is the Tennessee Valley Authority (T. Countless speeches and endless articles have sought to demonstrate what a great price of governmental benevolence it represents; how it is to bring cheap power to the people of the Valley, cheap fertilizer to the farmer, and in general, have the effect of an enormous social boon conferred upon the people by the Great Liberal President.
The reality is far from being quite so idyllic.
The like so many other Roosevelt New Deal enterprises, is another cog in the vast, complex, carefully constructed war machine which the government has been erecting in preparation for the next slaughter of the peoples.
The benevolent appearance of the is only a peace time mask which is to be ripped