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83 BANKS SUSPEND IN AUG.; STEEL AT LOWEST POINT; JOBLESS RISE IN JULY 4 P.C.
Capitalist Parties Trying to Fool Masses Into Accepting Wage Cuts; Justify R.F.C. Handouts
Only Fighting United Front of Workers Can Defend Living Standards
This past week brought further evidence disproving the lying propaganda of President Hoover, spokesman for the big capitalist interests who is leading the propaganda drive to fool the workers into believing that the turn in the crisis has been made. The big capitalist journals show that the crisis continues to deepen, production is falling, bank failures continue to rise and unemploym adds new victims to the huge mass of jobless. The facts cited below are taken word for word from the capitalist journals which reveal the growing despair in the ranks of the capitalists and disprove the lies that the stock exchange rise is based upon any fundamental changes in the business situation. From these facts the conclusion is obvious that Hoover and the democrats represented at the business conference in Washington have released this flood of publicity in order to stall off the masses from taking action to defend themselves from the unbearable burden of misery and povrty, and SO justify the steals by the bankers and big interests through the Reconstruction Finance Corporation. This propaganda is intended to create illusions among the workers that if they will accept wage cuts, they will be lending a hand to the efforts made by the capitalists and will obtain jobs through increased employment. This week's additional facts once again emphasize that the way to get out of the increasing misery is by the formation from the ranks of the workers of committees of united struggle against wage cuts, for unemployment relief and insurance and for the daily needs of the masses.
Steel Continues To Decline (Wall Street Journal, September 3d)
"Steel operations dipped further during the past week and a number of companies closed their plants Friday night, planning to reopen Tuesday This is a reflection of the small number of orders. "Sentiment through the trade continues about as in the past month based on hopes that there will be an increase in buying in the not distant future. However, the best authorities do not share the optimism which has been heard in outside circles regarding the volume of business to come, due to the fact that there is no sign as yet of any material increase in demand from the railroads, the automobile industry or for construction. "Many companies report that last month was the poorest for new business since the depression started."
Bank Suspensions Rise During Week (Journal of Commerce, Septmber 3d)
"During the current week 17 banks were placed in liquidation, including chain of ten in Idaho and Oregon which collapsed with the failure of the First Nation al Bank of Boise, according to the American Banker. In the preceding week there were 15 suspensions. "Suspensions for the year have reached 1,068 with deposit liabilitles now in liquidation of approximately $550,000,000. Estimates are that depositors will receive at least $450,000,0 as these institutions are liquidated, recent gains in price levels having improved the returns to receivers.
Jobless Increase: Payrolls Decrease (Bureau of Labor Statistics, U .S. Dept. of Labor, July, 1932) "Employment in manufacturing industries decreased 4.0 per cent in July as compaired with June, and payrolls decreased 7.9 per cent.
Again About Steel (The Annalist, September 2, 1932)
"The steel industry is even more depressed than a week age, the rate of operations as quoted by The Iron Aage being estimated at 13 per cent of capacity, a drop of per cent from last week. The Iron Age says that apart from a few minor gains, the industry shows little or no indication that the expected September upturn will attain more than small proportions. Structural steel requirments may be substancially if and when "self-liquidating" construction is undertaken with the help of R. F. C. loans, but the prospects of that are more than some enthusiasts would like to have the public believe. The Iron Age remarks of the lists submitted to the R. by the American Institute of Steel Construction covering "self-liquidating" projects estimated to cost billion and a quarter, that much of the proposed work will not require steel in any quantity for some months after loans are approved"
U.S. Deficit Grows (New York American, September 3d)
"Based on August income from miscellaneous taxes, the Treasury receipts from this class alone for the year will be between $20,000,000 and $30,000,000 short. These taxes include levies on telephone and telegraph communication, checks, admissions, oil pipe lines and boats."
