SOCIALIST APPEAL August 28, 1937 Who Is Back of LaGuardia?
Ask Aid of Yipsels in New York Fight The Capitalist Forces Behind the Candidate of the New York People Front How did LaGuardia get to be market for city securities, they By James Burnham terest payments. that an ef tion, both in general publicity, Mayor of New York? Who back milk the city by demanding, and ficient Executive had to be put and at the Board of Estimate ed his candidacy? What interests getting, an unusually high rate far from declining, continued up in.
meeting where, in accordance put him into office, confident that of interest, and thereby making with the still rising city budget. The campaign of the banks with the City Charter, all bills he would represent them faith their financing of the city an ex The real estate operators were and real estate operators was must be aired in a public hearfully as the city chief execu tremely profitable investment for thus in the middle of a fatal carefully and systematically plan ing before they can be passed.
tive? These are questions that themselves. But, on the other squeeze which, in fact, sent many ned. It was they, of course, who For several years, there was not are never raised by the Browder hand, they must take care that of them into bankruptcy. The brought about the Seabury in a single public meeting of the Thomas ALP Republican Party the bonds and stock of the city banks, on their side, were com vestigations. designed to dis Board of Estimate from which directorate that has formed the are properly secured and financ pelled to take up greater and credit publicly Walker and Tam Grimm or his associates were abLa Guardia People Front. Neved that the city does not go greater amounts of city securi many in general. Seabury him sent.
ertheless, the answers to them bankrupt for a deterioration of ties (to cover increasing tax de self represents as attorney a are of profound weight to every the city securities would have liquencies and budgetary defici number of the largest corporaworker in New York City. And disastrous effects on the banks encies, as well as continuing ca tions. At the conclusion of the Banks Apply Pressure it is possible to give the answers own condition.
pital expenditures) at the same investigations, he declined to Meanwhile the banks applied with exactness and precision. During the boom years, there time that the credit of the city accept any fee, though it was of their own pressure in their own New York Big Business was plenty of money in New was falling, with the resulting fered to him, for what he said way.
They steadily raised the York. The inefficiency fall market prices of city was a purely altruistic public interest rates at which they First of all, it must be realiz and generosity of Tammany, sol securities and the threat of pos service. It is reported that with would lend money to the Tamed that New York City is one of idly in control of the city, was sible defaults in interest pay in two weeks after the investiga many Administration. They enthe largest businesses in the not felt deeply, and no one ment both of which in turn un tions closed, his law office had listed all their big customers in world. Its regular budget is in thought much about civic re dermined the banks own credit. more than a dozen new corpor the reform movement. Finally, the neighborhood of 600, 000, 000 form and good government. The LaGuardia Administration ate accounts.
when a large sum for a revolvyearly. This figure, enormous as But the heavy hand of the crisis was conseived and born out of The real estate operators working fund became necessary in it is, includes only a part of its and subsequent depression began this background. The large real ed especially through the so coll order to meet current expendiexpenditures, for many of them, to make itself increasingly felt. estate operators and the big ed Citizens Budget Commission. tures including many wage and such as capital improvements. Above all, so far as the busi banks took the leadership in the This Commission, headed by an salary payments, the banks abunemployed relief, subways, ness of the New York City was decision that Tammany had to able publicist named Peter solutely refused make an water works, etc. are classified concerned, it was felt by the real go; that good government had Grimm, was financed by vol agreement with the Administraas non budgetary. The expen estate operators and the big to be introduced; that the budget untary contributions from those ditures far exceed those of any banks. The reasons for this are had to be lowered (which meant devoted to the public welfare. At the same time, Tammany State in the Union (including easy to understand. The real es necessarily the lowering of sal The great majority of these con had still further discredited itNew York State. and are in fact tate operators were faced by de aries and wages, the only item tributions came as the Commis self through the year Adminsurpassed only by the greatest clining and disappearing rents capable of any considerable re sion itself will admit from the istration of the utterly stupid of the imperialist nations. The and profits, by empty and half duction it of course did not oc real estate operators. The Com and incompetent Brien and public debt of New York City empty buildings, by the collapse cur to the banks to advocate low mission acted pressure Tammany brazen error in reruns into severs billions of dol of real estate speculation; but ering the nearly two hundred group, for economy and effi nominating Brien, and had not lars, and it likewise is exceeded the rate of real estate taxation, millions of dollars of yearly in ciency in the City Administra yet healed the breach with the only by that of the chief imperi.
Catholic hierarchy which had alist nationas. The number of grown up at the time of WalkNew York City employees is er public marital scandal.
The scene was ripe. Everything in the United States regular SR AUN was set for a fusion movearmy. The police force alone is ment. under slogans of good over 20, 000.
To all Circles: cle with election supervisors. Yipsels, rejected by the Altman government and end Tammany There are two key features in To all members: Where a majority in any parti controlled party, in violation of corruption which would remodel the financing of this mighty Dear comradescular circle, in support of the a long since established League the City Administration more business. In the first place, By the action of the rightwing right wing Clarity bloc, refuses precedent that Yipsels rejected by completely in the image of the the overwhelming bulk of the Clarity combination in moving to recognize the decisions author the Party are not to be dropped banks and real estate operators.
normal income of the city is rais the expulsion of eleven members ity of the the minority is until appeal had been made to The Fusion Party was formed.
ed from the tax on real estate of the Appeal Association in the instructed to constiute itself as and settled by the higher party LaGuardia was nominated. Peter Indeed, when the regular budget New York League, with charges a functioning group, to elect de bodies.
Grimm was prominent toastis drawn up, the rate of the real against others held in absence for legates and to otherwise function 2) The expulsion of comrade master and leading speaker at estate taxation is determined by one week, the New York District a circle. Circles are likewise Bergner from the YPSL with no banquets and rallies in the camthe simple process of dividing Executive Committee has ceased instructed to send fraternal dele quorum presented at the DEC, paign. The Union League Club, the assessed valuation of real to exist as a legal body. In solida gates to the conference of left and before his hearings were with its might roster of wealthy property into the budgeted figure rity with those whom Clarity wing party branches, called for ended.
Republicans, got behind the for expenditures. Secondly, capi sought to expel, the left wing August 28, on the basis of one 3) The falsification of League movement. The directors of the tal funds for the city, together members of the former DEC, for every 10 members or frac records by Irving Barshop, so as two great banking groups the with funds to meet budgetary who represent the largest section thereof.
to gerrymander the national con Morgan banks headed by the deficiencies (which occur every tion of the League membership, vention.
Guaranty Trust Company, and year, because of the peculiarities have constituted themselves as a Split Created by Right Center 4) The rescinding of a refe the Rockefeller banks headed of the city system of budget Provisional DEC. This ProvisionBloc rendum on the four rejected by the Chase National Banking. to cover tax deliquencies, al Committee will function until These actions are taken by the Yipsels, though the referendum joined in almost to a man. Throand to provide cash for current arrangements can be made for left wing comrades of the form. had been duly ordered by one ughout the city, the respectable outlays in anticipation of tax col the election of a regular com ers DEC as the sole means where third of the DEC, as per the citizens took the stump, in pubdections, are obtained by the sale mittee.
lic and in private, for LaGuarof city bonds and corporate stock.
by our League of revolutionary And now, to climax the com dia. Many of the machine politiMuch the greatest part of the To Disregard Rump DEC young socialists may be preserv. plete disregard for League de cians of the Republican Party bonds and stock is sold not to private investorss but to the that the Clarity right wing mem of Stalinism. Were these com pulsion of over one half of the as a minority group in the city, All circles are hereby informed tulation to the political agents dent, the attempted mass ex had been quite content to remain ed from disintegration and capi mocracy, and all socialist prece were disgruntled: for years they banks, particularly to the great bership of the former DEC, if rades to have acted otherwise in y. League.
New York inks. very of it continues in session as a DEC, the face of the right wing Clarity because of the patronage deals the large New York banks car is to be considered as meeting in expulsion drive, they would have which Tanmany had always artries tens of millions Clarity Imitates Old Guard ranged with them. But they were dollars rump session. By taking illegal betrayed the trust which the maof New York City securities in action against the left wing, the jority of militants in our League overcome by the social power and its portfolio.
former DEC, which in its ac entrusted to them. When at the cialist Appeal collapses in the ers.
The charge of selling the So prestige of the La Guardia backThe Budget Question tions and majority has ceased to DEC meeting of August 20, the light of previous experiences in represent the League member right wing Clarity bloc voted the the Party. In the fight against Unity At Last!
From these two key features, ship, can no longer sit as the expulsion eleven left wingers, the Old Guard, months before of two important consequences fol legitimate leadership the and announced that all members branches were suspended The respectable citizens 9uclow: First, it is of major concern League. The Provisional Com of the Appeal group were to be charters lifted, the Militants ceeded. And they were not slow to the real estate operators to mittee, composed of comrades similarly expelled, it created a published the Socialist Call as a in showing their delight. Within keep the budget of New York who received the greatest num thoroughgoing split in the organ public organ, attacking the old a few weeks, the Banker ACity down to the lowest possible ber of votes in the last elections ization. Revolutionary militants Guard as anti organizational and greement, refused to Tammany, figure, since every increase in the and who have behind them the on the one side. Right wing cen splitters. It was not the official was signed with LaGuardia. The budget is automatically follow decisive majority of the League trist capitulators on the other. organ of either the Local city securities went up more than ed by a relative increase in the membership, informs all memThis attempt at expulsion, or the national Party. It appeared ten per cent in market price.
rate of real estate taxation. Of bers and circles that they are to taken less than two weeks before as a public faction organ, calling the budget was slashed heavily course, in the long run much of disregard any instructions for the national contention, was de itself an organ of Militant Social and more heavily, with dismissals the increased rate of taxation is warded to them by the rump signed to keep formal control of ism. Today, after mass expulsion and wage reductions. The Citizpassed on to tenants; but many clarity right wing DEC. It fur the League in the hands of this have begun, after the leaders of ens Budget Commission no longof the tenants in New York are ther informs all members that a bloc.
The Clarity caucus had the national organization have er appeared disrupt public big corporations, and in any case general membership meeting of cast about for a pretext whereby openly announced their support Board of Estimate meetings it passing the burden on is a drawn the League will be held Thurs to effect a mass expulsion, and of the split drive, the left wing now met beforehand, in confidengut process which interferes at day, August 26, at Stuyvesant fixed upon the charge of selling has decided to publish the Social tial session, with the members least temporarily and sometimes Casino, at which the Provisional the Socialist Appeal, which the ist Appeal. Need it be added that of the Administration. LaGuarPermanently with the profits from Committee will submit its actions comrades do not deny for they the Socialist Call is now a faction dia began and successfully pushreal estate operation. Secondly, for approval.
have every right to do so. This organ of the Clarity caucus? The ed through his drive for that the affairs of the big New York All circles are instructed to action is only the culmination of Socialist Appeal proves that the favorite of the bankers, the City banks are inextricably tied up hereafter turn over all finances a series of illegal acts executed voice of revolutionary socialism sales Tex. The directors of the with the city finances because and reports to the Provisional by the Clarity right wing major cannot be stifled either by the Guaranty Trust and the Chase of their heavy holdings in city Committee. The is be in ity of the DEC, each more fla Old Guard, or the new Old Guard. sat back again in the Union bonds and stock. This is true in formed of all elections for na grant than the preceding one. The Clarity mass expulsion League Club, with a long toast a double sense: On the one hand, tional convention delegates in or There was: drive means that the mass ex Ito good government and LaGuar since the big banks are the only der that it may provide the cir 1) The dropping of the four (Continued on page 5) dia Socialism.