Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1916-07-19
A fter the War, What
Of Our Industries. Must
Increase Efficiency?

III lis StlQISS pSlOlS NiC
association at Flint, Mich, MIR. George
t.. Roberts. whom we quoted on this
age extensively yesterday, treated OF
the financing of the war and its effects
upon the people of the world. Then he
took up the effect of the war In the
United States and, asserting a Senu-
inc community of interest throughout
the world, he concluded that such COM
munity of interests is the moral basis
of society. No relations tive ma
tions, or classes, or individuals, are
Justified unless based upon this prln-
ciple of mutual helpfulness.'
The object of economic society is to
increase the supply for all peoples of
the necessities, comforts and refine
ments of life. This is accomplished by
improving the method of production
and exchange You cannot burn up or
destroy wealth of any form anywhere
that the whole world does not suffer
thereby.
AT the beginning and on the surface
it looks as if the United States had an
extraordinary opportunity to introduce
its manufacturers in neutral markets
while Great Britain and Germany, the
greatest of the supplying nations. were
otherwise engaged, but scarcity of
shipping. rise of freight charges. pres
sure of war orders, rapid increase OF
home demand limited material, short
age OF llDOI, OpStTuCl lIlCIciSc M u sNio.
The trade of the world is interdepend-
ent.
If we have learned anything in the
last year., it is that you cannot have a
permanently one sided rade. If it We're
possible for US to take over all the
business in South America that Great
Britain and Germany la had, we
would have to take South American
products that Great Britain and Ger
many have AIKEN. The Corollary of that
is that there would AVE to be Il shift
ing of population from Great britain
and Germany to the United States to
| produce and use things traded in. 1t
is a mistaken theory that this country
| will do better in world trade with Great
Britain and Germany out of 1T, just as
it is a mistaken theory of labor organ
i~zations that there is only a limited
amount of work to be done and 1T Is
good policy for them to restrict the u
put.
Great Britain and Germany have
built up most of the trade they have
in South America by advancing capital
for development of those countries
Ii of those countries the wealth
with which they nave been compen
stated. They Invested about 81, 900, 000,-
600, 900 there in the last 25 years ant
most of it in the form Of material OF
machinery. If we are to rival then
We nus do w WIZ n
AT the present time we are buying
back our own securities and granting
credits to the countries at wal to as.
sist their purchases here. and we nav
no spare capacity for the equipment o
new enterprises, and, finally, wa,
prices are prOhibitive upon new enter
prises.
The enormous demands upon our in
dustries and for labor and materials
together with the influx of capital ha!
placed us upon a higher basis of cos
than we were before. This limits OPP
with other nations. Capital and labo
must work together. When all tn,
forces Of production are in full actor
you cannot make a country richer b,
pouring gold into it.
In all advanced countries i'm norma
times capital increases faster thai
population and this is a truth which doe
not receive the attention it deserves
for with capital increasing faster thai
population. the demand for labor in
%oreases faster than the supply, wit
the result that there is an inevitabl
increasing wage ADVANTAGE. Wher
this increase operates in all %countrie
at the same tire and it's effects ar
gradual and continuous. there is n
diSluption of relation. but when Il grea
amount of capital is suddenly force
into one country without n correspond
ing increase of labor. the whole situ
alton is forced u of balance. The
materials. WAGES and prices rise abov
the level Of cost in other countrie.
Then exports will decline. the ha!anc
of trade will chance and newly &C
auired gold will flow out to thos
countries showing the highest produo
tive capacity.
Way to Avoid Panic.
The danger in the United States to
day is that we shall assume abnorma