The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1917-12-27

Last year the United states. working
TO its normal capacity. produced goods
and services to the amount OF S40. 1000
Q 10000 or so. This year the govern
ment proposes 10 devote goods and
services TO the amount of S1s, 600. 0O0,-
600 in a new direction. The two cate
gories of peace purposes and war pur-
poses contain some Implications, Yet
IL is evident there are not enough ma
terials and labor in the country 10
cover the old peace program and the
new war program too.
50 you hear his doctrine: w must
cut out businesses that are not essen
tisl for carrying on the war or for sub
sisting the population"
But this j. mischievous nonsense. We
must economics intelligeptly in the use
Of labor and materials that are essen
tial for carrying on the war and sub
sisting the population-which is q diff
ferent matter.
Here is a millinery shop filled with
expensive hats. They represent con
sumption OF labor and materials. Ger
tainly they are not necessary for the
war or for suhsisting the population.
But the materials consist Of silk, satin,
artificial flowers. feathers-stun that
Is worthless except for purposes of
display. The labor Ia largely that of
women whose labor for any other pur-
pose is Of Of comparatively slight
value. A woman worth $50 g week "a
a hat designer might not be worth so
cents a week in a munition factory.
In short, nearly all the material ana
a good part OF the labor will simply GO
TO waste unless they are consumed in
the millinery shop. They are not of q
sort that the government can use for
war purposes of that are of much value
for necessary subsistence.
Cutting out business not strictly
necessary for wal or subsistence would
mean shutting down two-thirds Of Fifth
avenue. New York-all the milliners,
~dressmakers. jewellers. dealers in art
objects. expensive furniture and 50 on.
The materials and labor saved thereby
would be of very little value for any
other purpose. Teu would at once
start a panic in the rent market III
of these so-cslled nonsssential bust
nessss are bases OF credit-bsnk credit.
jobbers' credit. manufacturers credit.
Cut them out II the whole structure
Of credit would get a heavy jolt. Let
any banker look over his loans and
mark off all those which are based on
businesses that are not strictly neces-
sary FOR war or subsistence. and taen
consider how long his bank would stay
open If all those businesses were shut
up.
Here is a piano faetory-certainly
not strictly necessary for war or sub
sistenee. Much of the material-eN
pensive woods and so on-is useless ex-
eept for such purpose as piano max
Ing. The labor force. skilled and ex-
perienc,d in that particular trade. can
not be suddenly diverted wholesale 10
another occupation except at large loss.
The piano maker has his branch offic-
IS. his long established relations with
retailers whose solvency and livelihood
depend upon handling his goods-in
short. his entire extensive business or
gsnization, built UP by long effort and
cenented by established usage. To
close his factory is to destroy all that,
% start a ramifyins Reorganization, 10
shock credit-to initiate dangerous
business contraction.
Millinery shop and plano factory do
contribute to the war. They pay ex-
cess profits taxes and income taxes;