The sun., 1918-09-22
Main Problem Is to
Raise evenue
Without Killing
the Sources
By AGNES c. LAUT.
IS HAVE no fear Of initiation or ex-
pansion Of credits, resulting in

panic or financial collapse declared
George f. Roberts of the National City
Bank. II have no fear for two reasons:
First, this expansion of credit is not like
a privately manipulated boom. 1t has the
Governments credit behind it; and every
cent Of debt and credit will be paid.
"That is the first reason why there will
he no violent collapse. The second reason
concerns industry, and is even stronger.
because Government action has very
largely eliminated the non-essential indus
tries the non-war industries have been
drained of men and production 10 the very
last ounce. Now, let it be granted that
when the war stops millions of workers
will be thrown out of war industries and
the war industries themselves will shut
down on the instant. The non-war in
dustries are so desperate for men and so
far short of the demands of trade in their
output that they~will easily absorb the
man power thrown suddenly on the mar
ket; and that will admit of our sliding
back to normal conditions gradually, not
violently
"But how about the collapse of high
wage levelsr
"Ycs, l know that presents complica-
tions; but neither need that result in eco
nomic confusion. In the first place, there
will be tremendous demands on the Amer
lean factory and the American farm for
four or five years after the war. That
will enable factory and farm TO pay good
wages for some years.
Will Lower Cost of Living.
I'm the next place, when farm and fac
tory are released from the demands of
war that will throw an enormous number
of producers back into natural channels,
and will automatically lower the cost OF
living. When the cost of living falls
wages will not continue so high.
Besides the war has done much to
bring capital and labor to a mutual I'm
derstanding. Labor will have done its
share, and capital will have done its share
toward winning the war; and they will
have done this by mutual give and take
all along the line. An industrial collapse
would hurt one as much as the other, and
think you will see both sit at the same
council table to administer industry after
the war;
Mr. Roberts's remarks are corroborated
by facts known to every, one going about
fha
on the factories of the United States for
greatly increased output non-war factor
les were so bereft Of workers that in many
minor manufacturing cities in the East
and middle West you can see whole rows
of factory windows boarded up, closed
for the duration Of the war, and in some
cases 40 per cent. of the population has
moved away These towns are hard hit.
On the other hand there are cities and
towns that have increased from 10000 to
80 900 in wage earners and from 100000
TO $4,000 in population almost over
night, that have been hard put to it to
house their workers and now have hun
dreds of acres " new factory areas under
roof. But fact unknown to the outside
onlooker is that many of the new houses
and factories have been erected in
portable style and can he taken down,
moved and transformed into non-war
structures in the twinkling of an eye.
This applies TO New York, all New Eng
land and districts as far South rs Vir-
ginia.
Burden Not All on One Class.
"0ne more question, Mr. Roberts: Wen
suppose a man lets debt of 81 900 stand
over to buy Liberty bonds, or goes in
debt to buy $1,000 of Liberty bonds.
That 81 900 is drawn out of general cir
culation 10 be centred in war industries.
I'm war industries it is paid out in wages
from 200 TO 300 per cent. higher than
were ever known before in the history Of
the world. If the highly paid wage earn