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Microfiche-New York Times archives | 6/25/38 | Frank L. Kluckhohn

Posted on 06/25/2008 6:26:37 AM PDT by Homer_J_Simpson


Small Textile Operators Are Held Cause of Crisis Now Facing Entire Industry


Government Urged to Exercise Power to Expel Aliens – Tariff Rise Aids Economic Structure

Special Cable to THE NEW YORK TIMES.
MEXICO CITY, June 24. – A new anti-Semitic campaign got under way in Mexico today as the official press and organized labor sought to blame small Jewish operator for the crisis in the national textile industry, which is threatening the jobs of 20,000 Mexican workers.

The federation of Mexican workers (CTM) today petitioned Silvano Barba Gonzalez, Secretary of Interior, to put into force Article XXXIII of he Mexican Constitution, which permits the Mexican President to expel any alien without giving his reason, against the owners of small and allegedly “clandestine” textile factories.

The newspaper Noticias today carried a headline, “Article Thirty-three Asked for Jewish Owners of Clandestine Factories,” and then said:

“The CTM’s petition is based on the allegation that the majority of these Jews are infringing upon the laws of Mexico, since almost all of them entered this country to dedicate themselves to agriculture and their activities now are different.”

Threaten New Control Move

At the same time the newspaper Nacional, organ of the Mexican Revolutionary party, said in an editorial:

“With regard to the artificial silk industry, the manoeuvres on the part of manufacturers accustomed to lower prices, manoeuvres that in their greater part violate labor laws, will be attacked by the government. An organization will be formed to control the importation of raw materials and only those manufacturers can be members who are capable of demonstrating they are operating within the law.”

While the government technically would punish only those violators by “canalizing” raw materials and withholding them, actually the government would be enabled to use this club to drive out of business numerous small textile manufacturers who employ an average of eight or ten persons. It is reported in authoritative circles that some of theses small workshops already have been closed by the judicial police.

In the face of these charges the fact remains that Mexico’s textile business is down at least 45 per cent as the result of the nationwide financial crisis caused by the breakdown in agriculture and by the expropriation of foreign oil holdings. Earlier this week textile manufacturers offered to turn their factories over to the workers if the Federal Labor Board would not permit them to reduce operations to three days a week. The larger manufacturers claimed that the sharp reduction in markets was only one of the factors leading to this move.

Drive Started by Unions

Labor leaders, forced to let their textile unionists in the State of Puebla accept a reduction of 25 per cent in salaries ten days ago, started a campaign in which they claimed that “clandestine sweatshops” run by Jews were responsible for the poor conditions facing the larger manufacturers.

Meanwhile business throughout Mexico is bad, bankruptcies in the country districts are increasing and many shops in Mexico City are daily getting closer to failure. Special sales at relatively low prices are being conducted in all parts of the capital as merchants who have received goods on consignment seek to obtain cash to meet the rent and pay the help. One small manufacturer, who is not connected with the textile industry, has been forced to reduce his help from twenty-two to twelve, to sell his house and two cars and his situation is far from unusual.

Three factors are helping to save Mexico from a complete economic collapse.

First, in the State of Yucatan, where community farmers have been hurt through their inability to sell sisal, the workers are growing enough of other crops to keep them alive. The same is said to be true of 65 to 70 per cent of the farm workers in Mexico.

Second, the factors that balance trade have swung in favor of Mexico in the amount of $2,000,000 a month as the result of prohibitive tariffs and the fall of the peso aiding exports.

Third, the activities of United States mining and fruit companies who are putting about $60,000 a day on the local money market, thus permitting holding the nominal exchange rate of the peso with the dollar at between 4.60 and 4.70.

2,200 Hear Lombardo Toledano

Vincente Lombardo Toledano, leader of Mexican organized labor and general secretary of the Confederation of Mexican Workers, was the guest of honor last night at a mass meeting at the Royal Windsor, a meeting hall at 69 West Sixty-sixth Street. About 2,200 persons attended.

Senor Toledano, who returned this week from Europe, where he attended the sessions of the International Federation of Trade Unions, recounted the controversy between the Mexican Government and the foreign oil companies.

“A few hours before the climax of the controversy between the companies and the government, the companies offered to pay the 26,000,000 pesos, the same amount demanded by the government during the controversy,” he asserted. “All through the controversy the companies contended they were unable to pay this sum, but this offer at the very last moment proved they were able to pay it.

“However, this offer Cardenas refused. If we had accepted, it would have been a victory of labor over capital within the Mexican oil industry, but by refusing the offer it was a great victory of the Mexican people against foreign imperialism.”

The meeting was held under the auspices of the American Friends of the Mexican People. Roger Baldwin, secretary of the American Civil Liberties Union, presided. About $650 was raised to publicize the Mexican Government’s position in the controversy.

TOPICS: History
KEYWORDS: 1938; realtime

1 posted on 06/25/2008 6:26:37 AM PDT by Homer_J_Simpson
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To: fredhead; GOP_Party_Animal; r9etb; PzLdr; dfwgator; Paisan; From many - one.; rockinqsranch; ...

News from Norte America.

2 posted on 06/25/2008 6:27:17 AM PDT by Homer_J_Simpson (For events that occurred in 1938, real time is 1938, not 2008.)
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To: sofaman


3 posted on 06/25/2008 12:59:07 PM PDT by SoCalPol (Don't Blame Me - I Supported Duncan Hunter)
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To: SoCalPol

this is pretty disgusting

4 posted on 06/25/2008 1:15:15 PM PDT by sofaman (Moses dragged us through the desert for 40 years to bring us to the one place in the ME with no oil.)
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To: Homer_J_Simpson

Oh wait a minute, this was 70 years ago!

5 posted on 06/25/2008 1:18:12 PM PDT by Alouette (Vicious Babushka)
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