Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1917-11-15
PATRIOTIC
ECONOMY

The necessity for patriotic econ
omy will be evident if we think of fl
nance in terms of labor instead of il
dollars. We have natural resource:
and we have capital invested in the
tools of production, but even with
these facilities our productive capa
city is limited by the supply of labor
By labor we mean the personal ser
vice, whether of brain or of Drawn, Of
the forty million of US who are engag-
ed in gainful occupation.
To carry on the war we shall spend
at least twelve billion dollars per day
or thirty three million dollars per day
This is as much as Great Britain is
spending and fifty per cent more than
Germany is spending, and the figures
are so huge that few of US appreciate
what they really mean.
Europe is already so deeply in debt
that she may never be able to pay, and
we are on the road to the same condi-
tion. Balance of trade statistics in
dicate that we have made an extra
profit from foreign business since 1914
of five billion dollars, or about two bill
lion dollars per year. The effect of
this in enriching the country is sug-
gestive of the result of three wears
Of impoverishment at the rate of eight
oillion dollars.
Our normal annual savings are "a
bout four billion dollars, and not only
will our war expenditure absorb all
of these savings, but we must find
eight billion dollars in addition. Dur
ing the past three years our present
allies have obtained much assistance
from US, but as there 81 no country to
whom we can turn we must carry our.
burden alone.
Our savings go into public and pri-
vate improvements, including the ex-
tension of business enterprises. These
savings will not be available for war
until we top federal, state, municipal
and private improvements; until we
forbid all issue of securities except
under federal license, following the
example whereby England reduced the
issue of industrial securities from
$468, 100000 in the first half Of 1914
to $11,OOO,00O in the same period of
1917.
The danger of a food famine has
been brought home to us and we are
making a real effort to reduce consum-
ption, though our efforts to increase
production are being seriously handi-
capped by the high price of labor.
Immediately after war was declared
the President warned the Country that
everyone should produce more and
consume less. The idea that business
was to be suddenly reduced by a wave
of economy was ashock to business
men and the cry business as usual was
spread over the Country and caused
the Presidents appeal to be forgot
ten. Not only are people spending as
usual, but many conscientiously be-
lieve it their duty so to do.
Every dollar spent means the con-
sumption of labor We shall not be
far wrong if we say that every four
dollars spent consumes days labor,
and that every twelve hundred dollars
spent consumes years labor. A war
expenditure of twelve billion dollars
will consume the labor of ten million
people; twenty-five per cent of our
total labor supply. This added de-
mand comes during the greatest labor
famine in our history. which has in
creased commodity prices eighty-five
per cent since 1914.
We have reached point where the
increasing demand reduces the effi-
cheney of labor and thereby reduces
the supply, and we are facing fur
ther rise in commodity prices, perhaps
to exceed present conditions in Eng
land, where prices are up one hun
dred and twenty per cent.
The most effective remedy is to de-
crease consumption, and it is drastic
reduction in personal expenditures.
The example must be set by the rich
but every man, woman and child must
be drawn into the movement until pa
triotic economy becomes the greatest
fad the country has ever known.
Our young men who try to avoid mi
litary service are "slackers." Every
one of US who will not economize to
help the war is "slacker." Who will
fail to spend less when he realizes that
every four dollars saved is a days
labor contributed to the war? 1t is
not a question whether your income
iustifes an expenditure, but whether
the country can afford to let you spend
Even to prevent hardship we have
10 TlgnC7 10 Spend 10 Keep people III
heir usual employment, for only by
a process of readjustment can we OBJ
tain the labor necessary for the war.
Already the Government is resorting
to price fixing and other dangerous
experiments, because we can no long
er submit to the law of supply and de-
mand. We cannot increase supply.