Hoover Relieving the Banking Interests

...Relieving 1. P. M o r g a n * Co...

...Instead of a » I n c r e a s e in public w o r k s , we a r e witnessing a 50 per cent decline in e x p e n d i t u r e s by c i t y and s t a t e g o v e r n m e n t s . A hundred p e r cent i n c r e a s e In t h e federal g o v e r n m e n t public w o r k s p r o g r am would not h e l p t h i s s i t u a t i o n mat e r i a l l y since In n o r m a l t i m e s fede r a l g o v e r n m e n t e x p e n d i t u r e s on public I m p r o v e m e n t s a r e b u t 5 p er c e n t of the total a m o u n t spent...

...Vote for Hoover a n d Beg'* C L E V E L A N D . — G r a n t i n g t h at H e r b e r t Hoover Is c e r t a i n t o be r e n o m i n a t e d far P r e s i d e n t , Ohio w a n t s t h e Vice P r e s i d e n c y. " R u n former Congressman Regg with Hoover and t h e pair will be u n b e a t a b l e , " politician* a r e s a y i n g . T h e r e Is o n e u n b e a t a b l e staffs* for tan O. O. P. Million* wlU t a k e It u p . H e r a It is: Who' s Crazy . . . . by John C. Chase [The author of the following article was the first Socialist to be elected Mayor in the United States...

...The r e s t of t h e money w i t h the except i o n of a million d o l l a r s for taxes Is t o be used to p a y b o t h i n t e r e st a n d p r i n c i p a l on bonds...

...Hence, t h e fede r a l g o v e r n m e n t will s u s t a i n the losses which the b a n k e r s should have b o r n e . When p r o f i t s a r e t o be made, the national government s t e p s aside...

...We are told t h a t we have too much wheat, y e t we h a v e too l i t t le b r e a d ; we a r e told t h a t we have t o o much cotten, yet we have not enough c l o t h e s ; we h a v e too much l e a t h e r , but not enough shoes...

...T h e r e is not and cannot be too* m u c h of a n y t h i n g , s o l o n g a s t h e re i s one individual in w a n t , l e t alone millions who h a v e produced those t h i n g s . If i t w o u l d be a good t h i ng t o d e s t r o y w h e a t and c o t t o n , a f t er t h e laborious toil t h a t has been r e q u i r e d t o produce t h e s e necessit i e s , then It would be well to des t r o y a p a r t of e v e r y t h i n g else which has been c r e a t e d by the g e n i u s and labor of millions of w o r k e r s , w i t h t h e aid of a prolific a n d beneflcient n a t u r e. I f we should d e s t r o y a good p a rt of our f a r m s and I n d u s t r i a l produ c t s , a n d o u r p r o d u c t i v e m a c h i n e r y, a s some h a v e s u g g e s t e d , in order t h a t n o r . people m i g h t be employed, W. should c a r r y the plan t o its logical conclusion a n d dedei n g p l a n t s , so t h a t work can be g i v e n to s t r u c t u r a l Iron w o r k e r s, b r i c k l a y e r s a n d o t h e r w o r k e r s ; we s h o u l d t e a r up several miles of r a i l r o a d r a i l s a n d s e t f i r e t o a thous t a n d P u l l m a n c a r s and common coaches, a n d t h u s g i v e employment t o an a r m y of w o r k e r s to build t h e m up a g a i n ; we should burn down some of our magnificent h o t e l s , t h e a t r e s and colleges and p r o v i d e still more work...

...T h e s e loans are typical...

...too mucin of e v e r y t h i n g t h a t t h e people need t o e a t a n d w e a r , yet hunger, m i s e r y and d e s p a i r is the lot of millions of t h e w o r k i n g class...

...B a n k s Ban P u b l i c Works These s a m e b a n k e r s who a r e being helped by t h e g o v e r n m e n t have In r e c e n t m o n t h s t a k e n s t e p s which will add nnothqr million men to t h e breadline and further retard recovery by an additional curtail l a g of p u r c h a s i n g power...

...B u t why lug in t h i s war stuff, you m a y a s k ? F o r t h e simple r e a s o n t h a t the i n t o l e r a b l e condit i o n s we a r e s u f f e r i n g from today can easily be m a d e an excuse for w a r to m a n y. The F u t i l i t y of Depression Millions of idle men, w i t h hung r y c h i l d r e n , a r e n o t l i k e l y to cont i n u e peacefully to s t a r v e along w i t h t h e i r children...

...It s h a r e s the losses b u t not the gains...

...When the limit of endurance s h a l l h a v e been reached, measures of r e p r e s s i o n will be of l i t t l e avail a g a i n s t a n u p r i s i n g of h u n g r y and d e s p e r a t e m i l l i o n s of o u t r a g e d citizens...

...It m e a n s t h a t a million m e n h i t h e r t o employed to public c o n s t r u c t i o n m u s t b e g i n t he w e a r y s e a r c h of looking for jobs H o w m a n y tailors, s h o e m a k e rs a n d a h i r t m a k e r s will lose their j o b s because these* w o r k e r s will n o l o n g e r h a v e m o n e y t o s p e n d no one c a n c a l c u l a t e. T h e b a n k e r s have t a k e n this a c t i o n t o b o l s t e r t h e p r i c e s of outs t a n d i n g municipal and s t a t e sec u r i t i e s . J e s t Another Hoover Promise T h e Hoover A d m i n i s t r a t i o n in defense of t h e R e c o n s t r u c t i o n Fin a n c e Corporation has argued t h a t by s t r e n g t h e n i n g the banks a n d i n s u r a n c e c o m p a n i e s , t h e credi t s t r u c t u r e of the c o u n t r y woul-> be so improved t h a t government a n d business would h a v e no diffic u l t y In g e t t i n g money n e c e s s a ry to finance p u b l i c I m p r o v e m e n t s a nd t h e opening of f a c t o r i e s. As we have seen, the opposite h a s been the r e s u l t . The Federal g o v e r n m e n t because of Its superior credit position r a i s e s two billions so t h a t the owning classes will be g u a r a n t e e d t h e i r Incomes, while the s a m e w e a l t h y g r o u p s by h o l d i n g on t o t h e i r s u r p l u s Instead of p u t t i n g It back Into c i r c u l a t i o n, i n c r e a s e the a r m y of the jobless P r e s i d e n t Hoover for many y e a r s has a d v o c a t e d the speeding u p of public w o r k s In a depression to t a k e up t h e s l a c k of c u r t a i l ed p r i v a t e a c t i v i t y . Precisely t h e Opp o s i t e has t a k e n place...

...I t Is argned t h a t since these moneys are loans and not gifts, t h e y a r e not doles t o t h e b a n k e r s. If t h e r e were any r e a s o n a b l e g u a r a n t e e that the money would be paid back, the b a n k e r s ought to be willing to wait i n s t e a d of forci n g the federal government to g u a r a n t e e their i n v e s t m e n t s . The t r u t h is t h a t t h e r e Is very grave doubt as to w h e t h e r these loans c a n be paid back...

...Commissioner E a s t m a n , t h e most p r o g r e s s i v e member of t h e Inters t a t e Commerce Commission, who s t r o n g l y d i s a p p r o v e d of t h i s part i c u l a r t r a n s a c t i o n , pointed out t h a t J. P. Morgan a n d his fellow b a n k e r s * in good t i m e s made 'huge p r o f i t s out of financing railroads on the theory t h a t t h e railroads in t i m e s of s t r e s s would be helped by t h e i r b a n k e r s . Notwithstandi n g t h e y have collected t h e i r pound of flesh while the g o v e r n m e n t holds t h e bag...

...2,400,000 alone is to p a y fixed I n t e r e s t obl i g a t i o n s to bondholders on May 1st...

...But we were j u s t t h a t crazy when w e w e n t i n t o t h e W o r l d War, a n d we a r e now s i t t i n g upon a powder k e g w h i c h s o m e s i m p l e act m a y c a u s e t o explode, a n d which explosion would e n g a g e t h e whole w o r l d In w a r , a m o r a d e a d l y war t h a n a n y t h e w o r l d h a s ever bef o r e known...

...Until March 22nd the r a i l r o a d s had req u e s t e d $356,000,000 and in almost e v e r y Instance the money was to be used for the p u r p o s e s similar t o those described above...

...New York City h a s j u s t postponed the c o n s t r u c t i o n of 300 million dollars w o r t h of n ew public i m p r o v e m e n ts which include n e c e s s a r y schools, s u b w a y s and h o s p i t a l s . The reason I s 1 t h a t the big Investment b a n k e r s like J , P. M o r g a n . Kuhn Loeb * Co., the N a t i o n a l City bonda n e c e s s a r y to r a i s e t h e money t o p a y for t h e s e i m p r o v e m e n t s. T h i s h a s h a p p e n e d in e v e r y c i ty a n d s t a t e g o v e r n m e n t in t h e U. a The e s t i m a t e d r e s u l t e d is t h at w h e r e three billion dollars were s p e n t on public w o r k s by c i t y and s t a t e g o v e r n m e n t s in 1928 and 1929 only a billion a n d a half doll a r s will be spent for the same p u r p o s e in 1932...

...This Is the lesson the A m e r i c a n working-man m u s t learn...

...4,500,000 for r e p a y i n g b a n k loans, a n d $13,000,000 for r e p a y i n g the p r i n c i p a l on m a t u r i n g mortgage bonds...

...I f t h e t i m e comes w h e n t h e profi t e e r s of this c o u n t r y m a k e up t h e i r m i n d s to g e t t h i s c o u n t r y I n to a n o t h e r war, t h e y will see to it f i r s t t h a t s o m e t h i n g shall happen which looks l i k e a n open ajrjrressKnt a g a i n s t o u r g o v e r n m e n t and I t s people, l i k e t h e blowing u p of m o u t h p i e c e s , including t h e i r radio c o r p o r a t i o n s , their moving and t a l k i n g p i c t u r e s and their kept g r e s s , will s t a r t t h e i r propaganda a n d keep a t it u n t i l t h e y have the people Inflamed with mistaken p a t r i o t i sm and s c r e a m i n g for war...

...But w h a t can b e s a i d of t h e Idle w o r k e r s , w h o a r e w a t c h i n g their c h i l d r e n g o h u n g r y i n a l a n d of so m u c h p r o d u c t i v e m a c h i n e r y ; child r e n who i n g r e a t n u m b e r s will become e i t h e r t h i e v e s o r p r o s t i t u t e s, under t h e l a s h of h u n g e r? I f t h e s e w o r k e r s c o n t i n u e t o vote f o r a p r o f i t s y s t em which is to b l a m e f o r t h e i r p r e s e n t condition, t h e n we can s a y t h a t they are crazy or that too dumb to be crazy...

...I f our financial and political o v e r l o r d s d o n o t a c t r i g h t l y within t h e n e a r f u t u r e , ^ h e n we can say t r u t h f u l l y : Verily t h e y a t l e a s t a re c r a z y c r a z y over t h e i r w e a l t h and t h e i r power...

...He was elected Mayor of Haverhill, Mass., in 1898.] I T H h u n g e r on all sides and millions of people suffering for food, the F e d e r a l F a r m Board recommended t h a t o n e - t h i r d of t he c o u n t r y ' s w h e a t crop be destroyed a n d t h a t a g r e a t amount of our c o t t o n crop be destroyed...

...Nobody knows w h a t b a n k s and i n s u r a n c e companies are g e t t i ng d i r e c t l y federal money and for w h a t p u r p o s e . It i s t h e policy of t h e R e c o n s t r u c t i o n Finance Corp o r a t i o n to k e e p t h i s information s e c r e t F o r t u n a t e l y since loans to r a i l r o a d s m u s t be a p p r o v e d by t he I n t e r s t a t e Commerce Commission t h e ? a r e given full p u b l i c i t y . These r e p o r t s of a p u r e l y f a c t u a l n a t u re reveal the c l a s s c h a r a c t e r of t h is l e g i s l a t i o n b e t t e r t h a n reams of r h e t o r i c . On April 9 an $18,000,000 loan t o t h e S o u t h w e s t e r n Pacific Railr o a d was approved on the condit i o n t h a t t h e money w a s t o be disb u r s e d a s follows: 1949,540 for int e r e s t on bonds a n d bank loans...

...L e t ' s H a v e A n o t h e r War By a l l m e a n s , we s h o u l d h a v e an o t h e r W o r l d W a r , so t h a t f i f t y million men could be killed and those s t a y i n g a t home could have work a t h i g h wages and the p r o f i t e e rs could a g a i n g a t h e r in millions and b i l l i o n s by c h e a t i n g the governm e n t , ' while the flower of out A m e r i c a n manhood would be spilli n g out t h e i r life-blood upon the fields of b a t t l e . S u r e l y you know t h i s would be a c r a z y t h i n g t o do...

...Verily someone Is crazy...

...T h e r e h a s not been a 100 p e r cent I n c r e a s e to d a t e. A l<essou for the W o r k e rs The P r e s i d e n t h a s done n o t h i ng t o meet t h i s s i t u a t i o n . The two billions r a i s e d by t h e f e d e r a l gove r n m e n t for the railroads and b a n k s ought to g o I n s t e a d to c i t i es a n d s t a t e s t o be u s e d for t h e cons t r u c t i o n of public works...

...There is federal aid for the " h a v e s " but none for the "have not...

...T h e fede r a l government is the logical a g e n c y to h e l p local g o v e r n m e n ts finance w o r k - c r e a t i n g ' p r o j e c t s . App a r e n t l y t h e s l o g a n of p u r n a t i o n al b i - p a r t i s a n g o v e r n m e n t is: Put money in t h e pockets> of J. P . Morg a n but t a k e it out of the workl n g m a n ' s p o c k et T h e w o r k e r s c a n e x p e c t n o mercy f r om their r u l e r s a t Washington...

...Verily t h i s would p r o v e u s crazy...

...W h e n I s a y t h e whole world, I mean t h o s e "highly cult u r e d a n d h i g h l y civilized n a t i o n s ," f o r the o t h e r s a r e too uncivilised t o f i g h t in a w o r l d . w a r — a n d they a r e n o t crazy...

...On March 26th, a $12,850,000 ol t h i s s u m h a s been used t o p a y oS loans held by J. P. Morgan and Co., Kuhn Lobe ft Company and t h e G u a r a n t y T r u s t Company...

...Hoover Relieving the Banking Interests Reconstruction Finance Corporation Doles Out Funds to Railroads, Who Pass It On to J. P. Morgan By Henry J. Rosner WH E N Congress two months a g o e s t a b l i s h e d the two billion dol(ar R e c o n s t r u c t i o n Finance C o r p o r a t i o n , S o c i a l i s t s immediatel y p o i n t e d o u t t h a t it w a s a "dole" t o c a p i t a l a n d t h a t i t s effect would be to g u a r a n t e e the income of b o n d h o l d e r s and b a n k e r s . Events s i n c e t h e n h a v e s u b s t a n t i a l l y verified o u r predictions...

...And t h o s e even who are now m a k i n g radio speeches against war, would l a r g e l y be found rev e r s i n g themselves and asserti n g t h a t i t is t h e duty of every p a t r i o t i c c i t i z e n ( e x c e p t i n g themselves of c o u r s e ) t o help s a v e the country...

...Ship loads of coffee h a v e b e e n t a k e n out t o sea and dumped overboard to k e e p up the price...