Denver labor bulletin., 1917-02-17
TRAGEDY
By SCOTT NEARING.

The New York business publication
entitled Commerce and Finance" has
made a careful compilation of the
most significant economic statistics
for the year 1916. They have includ-
ed national wealth, foreign trade, bus
mess development, railroad earnings,
manufacturing output, manufacturing
profits, farm output, prices and wages.
The year 1916 saw an increase of
twelve billions in the wealth of the
United States. This makes the wealth
per person at the end of 1916 50 ,225;
per family $1,000.
The foreign trade of the United
States were prosperous in 1916. Bank
clearings increased 80 per cent. Com
mercial failures decreased 35 per cent
over 1915. The total value of new in
corporations in 1916 was three and
half billions, or 10 per cent more than
| the total value for 1915.
Railroad net earnings were greater
in 1916 than in 1915 by "a per cent.
The railroads are very dependable
index to national prosperity.
The real astounding figures for bus
mess growth in 1916 are furnished by
the manufacturing profits of fifty-one
of the greatest industrial corpora
tions. These profits were 141 per
cent greater in 1916 than in 1915.
This manufacturing prosperity is well
illustrated in the case of the iron and
steel industry which "came thru 1916
with a record of the greatest tonnage
output of iron and steel in history and
with untitled tonnage on the books of
the steel companies greater than
ever. There have been some signs
recently that the placing of new or
ders had been checked temporarily
but vidently it was only momentary
lull as the European nations have
been buying more shells, contracting
for railway locomotives and for rails
and the domestic demand is unabated"
These figures, showing the growth
of wealth and the enormous strides in
business development would be i'm
mensely gratifying were it not that
they were offset by two serious fac
tors-the small increase in farm prod
ucts and the enormous increase in
prices.
The year 1916 has a bad record for
farm output. The number of bushels
of corn, wheat, oats, barley, rye, buck
wheat and potatoes was less in 1916
than 1t was in 19l5-in the case of
wheat, 36.7 per cent less. The output
of hay, tobacco, cotton, rice and flax
seed increased. With the exception
of the increase in rice products-46.4
per cent-the increases are negligible,
the decreases serious.
The increase in the value of farm
products is, however, enormous. While
the production of corn decreased Is
per cent, the value of the crop in
creased 33 per cent. While the pro-
duction of potatoes decreased 21 per
cent, the values of the crop increased
SO per cent. While the production of
wheat decreased 81 per cent, the va
lue of the crop increased per cent.
In other words the decreased produc-
ton has been more than offset by in
creased prices.
This fact is strikingly brought out
by comparison between food prices
and wage increases-the last two
items published by Commerce and !.
Finance" According to the annalist |
index number, during 1916 average .
prices of twenty-five foods increased .
3S.2 per cent, while the average week |
ly wages of over five million factory
workers increased 1876 per cent.
This is the tragedy!
The country is fairly swamped by
business prosperity. Railroads, man
establishments, banks and
establishments are
pushed to capacity. Meanwhile the
wage of the worker purchases less
and less of the good things of life.
Figures are not always significant,
but in this case they seem to show L
quite clearly that the boasted pros
perity of 1916 spelled economic trag-
edy for the great body of American
wage earners.