New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-12-01


dustry are coming, but slowly and by
indirection. The new order Of things
is coming about as a result OF what
is probably the greatest Of the many
problems with which the nation is
confronted-that Of securing an ade-
ouate supply OF the materials re-
0uired for war. Basically the prob
lem is one Of labor supply. That Is
becoming increasingly apparent.
TRANSPORTATION is tied up partly
through lack of labor; coal famine
is threatened. and labor shortage is
prime factor in bringing it about
There is not enough coke. or enough
steel. or enough of many other vital
things. as the news will tell you
every day. and in each instance the
production is held down mainly by
shortage of labor. Obviously the
thing 20 do is to see that these indus
RIGS are fully manned, have all the
7oterials needed and that the iacil-
ties for production are increased as
rapidly as possible. The only ques-
ton is as TO the best method OF et-
fecting the necessary changes with
the least possible disturbance An
interesting discussion of the matter
i presented by the National Clty
Bank of New York in its monthly
s,,rvcv of economic conditions. IL
says:
Tho end in view being to re-
organize the industries OF the cou",
try on n war basis, the government
D,us, take the lead and give order
and system to the rearrangemen''
!, would be demoralizing and waste
full 20 shut down the great auto
mobile factories, scattering the
workmen, breaking up their homes
compelling the sacrifice OF properly
disturbing business conditions ana
DESTROYING values. The desired re-
suit is better accomplished by
changing them TO the manufacture
of trucks. aeroplancs, and munitions.
Furniture factories are being Ut
jlized in similar fashion, and so IN
every community there are estao-
Gshments which can be converted TO
war business or made to serve indi-
rectly the present needs. When they
stop making things for peace trade
the public will necessarily stop buy
inc such things. and since employ
mcnt will remain full more money
will be free for the loans.
The industries must not be Grip
Med: they must be changed over
n war work. Time is required 10
do this, and while no time should
he lost nothing is accomplished by
working with misdirected energy
When A railroad is crowded with
business TO state Of congestion II
loses in efficiency. Not as many cars
cot over the line as with traffic re-
stricted TO its capacity. This coun-
try can carry on the war indefinitely
and put steadily increasing weight
and efficiency into it If It's opera
tions arc well-ordered. But 1t can
not throw millions of men upon war
work except as it takes them on OF
other work. and it-eannot pay bill
ions into the Treasury except as II
entails expenditures in other direc-
tions II is just as important TO
nlan upon one side Of the problem
as the other, and nothing but con
fusion will result from going ahead
without n careful coordination OF
effort
All this. the bank believes, can be
accomplished by judicious applica-
ton of priority measures.
As to the direct consumption OF
capital. the bank states in another
part of its circular that there Is
much misunderstanding, largely due
10 lack of knowledge of what consu-
tutes capital. For the most part
capital exists in the form Of instru-
rrents of production, and not, as is
popuarly supposed. in wealth when
could be seized and placed in the ma
tional treasury. What the govern
r,cnt wants is goods, and not the ia
cilities for producing goods and 1t
would not, it is argued, increase pro
duction by conscripting property
The bank goes on:
The seizure OF these properties
IL, the sense OF taking them out OF
The hands Of the present owners is
Utterly imprlcticebie. The govern
.,.ept could not assume their man
acement. u has no staff compe-
tent 10 operate them. II II TOOK
them over it could do no better than
orange with the present owners to
@ on operating them. II would
have TO make terms which would
enable the management 20 satisfy
yage.earners. provide working cap
raj 20 buy materials and supplies,
and make repairs. requirements, mn
n proyements and engagements as
these were necessary 20 keep the
industries nm TO the highest eff