Pine Bluff daily graphic., 1918-12-04
Weekly Letter
 of henry CleWs
Financial and Industrial Conditions ReVieWed-High Cost of Living Reason for High Wages.


 Reason for High Wages.
 New York, Nov. 30,-- Peace prob lens are already asserting them selves with increasing force. Business men are anxious to be freed from war restrictions as early as possible, hav- ing due regard to the avoidance of unnecessary disturbance. They want superfluOus regulations removed or modified and at least gradually eli minated. They want to be rid of price fixing schemes. They want reasonable consideration from the Government in the transfer of industry from pub lib to civilian work. They desire to avoid harsh cancellations, and above all they wish the Government to avoid injury to credit in the process of de- mobilization. In short they earnest ly look forward for a return to the normal, and restoration of business freedom as soon as consistent with safety and public welfare.
 The Government is making a praise worthy effort to meet such ideas. It is also under the pressure of public opinion to reduce expenses as far as practicable in order to minimize bur densome war taxes. Not less than $1,- 300 ,0O0,000 of war contracts have been cancelled, without thus far giivpg any serious difficulties, many business concerns having discounted such con- tingencies. A gradual and steady re- ductions of war work is already in process of accomplishment, and our steel, textile, leather oil, rubber and other inHucfricc will find Ia work to take the place of cancelled war orders War products will natur- ally disappear, and the whole tend ency of industry is to go back to more normal conditions. This means ulti- , mately lower prices for raw materials and all finished products. The declines will come slowly, more slowly per haps than desired in some cases; but the drift is unmistakable, and defla- ti0n must be expected wherever in flation has existed. The most difficult problem in the outlook is labor, which has already announced that it will not submit to any reduction of wages a pronOuncement that is not surpris- ing in view of the high cost of living. The latter can only be reduced by de- creasing the cost of production; and, If that cannot be accomplished by wage adjustments, the only alterna- tive must be greater and more eff cient production on the part of labor itself To very considerable extent laDOr is responsible for the high pric- es which it dislikes. Another cause is the the protiteering indulged inbN both capital and labor, as we'll as by producers and distributors of all kinas. Many of these problems will, however, solve themselves in time, provided there is maintained spirit of fair dealing and patience upon ali sides. A considerable number of men and women have been rischargd from munitions plans, and thse are usually finding new employment with little difficulty
 As result of the worldwide up heavel there is a spirit of great unrest everywhere; this country in spite o1 it's isolation and continued prosperity having it's full share. One of the most disQuleting symptoms is the socialist ic drift, which manifests, itself un- pleasantly by the agitaeion to take ov- CT public utilities by the Government, The railroads have now been under Government control for nearly twelve months. The telegraph and telephone lines were taken over last July and now the cables and wireless have come under the Government aegis. This week another rumored depart ure was made, as reported that the Government would take over the So vessels of the International Mercon- tile Marine Company at cost o1 $50, 600 900. This will make the Gov ernment owned tonnage of the United States approximately 4,50o,Ooo tons a very respectable start ill establish ing merchant marine,( though on lines undreamed of before the war, would be simply placing our Gov crnment into business experiments for while it is entirely unfitted, and which if not checked will completely throttle that spirit of individual en- terprise which proved the basis of our national growth AS soon as the Am ericali people fully realize the conse- quences of this, sOcialistlc tendency they will admister the necessary re- buke>
 I Relaxing Money Restrictions. Y The most satisfactory development of the week in financial circles was d partial relaxation of artificial restrict ions in the money market. While Gov