The news scimitar. (Memphis, Tenn.) 1907-1926, 1918-12-05
WAGES

WAGES
VIII wages go down as soon as the war ends' This ques-
tlon is being frequently asked by many, Wages are an effect
and not a cause, and they will rule high as long as the cause
remains. Ever since the war began protiteers, sbg and little.
have used as an excuse for %exorbitant prices the argument that
wages are so high that goods cannot be sold unless at sky-hgh
prices. This enabled the master producers to sting the govern
ment on munitions and other things that were lmperatiVely
necessary. 1t enabled the petty larceny protiteers to advance
the prices on ordinary everyday commodities. Everyone who
has studied Adam Smith, John Stuart Mills or the lesser econo-
mists knows that wages have no influence on price-ixing. High
and low prices are controlled by the law Of supply and demand.
When the demand is great and the supply limited, wages go
up in order to stimulate production. When the demand
decreases wages go down. The cost OF production has nothing
directly to do with price fixing. Indirectly it may have some
effect by limiting supply, and thereby increasing demand IN
the last analysis demand is the price-fixer and the pnceImakef
A given product may cost enormously, but II there Is nc demand
Tor it there will be little or no price.
The air we breathe costs nothing, but il the supply could
be reduced or "eornercd" the demand would be so great that
people would pay any price for it. 1t is the same with every
other commodity that the human family uses, supply ana
demand fix the price without reference to the cost of production
The Western wheat farmer who raises IS bushels to the acre
receives the same price for it as the man who can only raise -
bushels to the acre. II the demand is such that the price rules
high the farmer will be able to pay a higher wage Tor labor,
because the demand makes the price for the product, and the
price fixes the rate of wages. .
The labor unions have an artificial method Of increasing
wages. arbitrarily, by merely refusing to work until the demand
for labor is so great that high wages will be paid in order to
obtain the necessary Iabor' to supply production, and when
production is sufficient to supply the demand prices and wages
adjust themselves to the normal. Labor has received more Tor
it's services since the war began than ever before, because the
demand has been greater. Those who are thoughuessly cenSur-
ing Wilson and McAdoo because OF the high wages paid labor
are blinded by prejudice or ignorance. They see but a part OF
the truth. A crisis was on, and the country needed many prod
ucts. To provide these and to speed up production labor was
paid a more liberal reward, and it must be said for the patriotic
w~orkngmen on both sides o. the Atlantic that when called upon
they strained every nerve to the utmost limit to supply their
governments with the necessary products, And with all the big
wages that were paid workingmen are not milhonaircs. They
are no better off than they were under a lower rate OF wages,
because the cost Of living took everything they made, Great
corporations that had facilities for boarding them bought up the
necessaries Of life and kept them off the market until the demand
for them put prices far above the normal, and work'ngmen had
to'pay these prices in order to live and support their families.
When this was done they had nothing left. NeccsSaries bought
up and held locked up until the demand for them sent prices
up to a high figure was profitable Tor the ptohteefs, out laooF
and wages had no, part in bringing about this abnormal condi,
ton Of affairs
If capital attempts any radical and sudden reduction of
wages while the cost OF living remains as high as it has been,
it will commit an %egregious mistake, and bring about industrial
disorder and a lessening OF production. We
President Wilson may fail in his noble dream OF a world
league of nations to preserve the peace Of the world, but Com
pers has succeeded in pertecting q world league OF labor unions
to preserve the laboring man and keep his wages at a point
where he can meet the high cost OF living, What the world
needs for its comfort and happiness is abundant production, and
this can be had only when labor is employed and happy. There
anyone to bring about friction or conflict between capital and
labor. Each side knows that ats interests are mutual, and that
cooperation and not conflict Is to be desired Capital has its
rights that must be protected, and labor has its rights that must
be considered fairly. The laborcr is worthy of his hire, and
that hire must be sufficient 70 sustain him and provide him with
the necessaries OF life. The function Of labor is TO sustain and
never to enrich, The rewards OF labor provide an Independent,
and an honorable existence, and no more. There is nothing
left for accumulation.
Wages will rule high as long as the cost OF living rules
high; wages will 90 down when the cost OF the necessar'es O
life 90 down, and not before. No sudden change may be LOOKED
for. The problem is too big, and large bodies move slowly
If everyone does his best, as everyone should Do, thing. Wi
This good old world is still about the best anyone knows of ant
the human family can find here all that it needs ii 1t will on!
give the world a chance, and make the most ct the bountes am
blessings bestowed upon the human family.