Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1918-02-22
RATIONAL ECONOMY
Not Essential-What Are
They?-A MisckievOus Doctrine -
Waste of Labor and Materials -
Business and Labor Conditions Af-
ter the War-Intelligence and Com
mon Sense.
by Will Irwin

Last year the United States, work
ing to its normal capacity, produced
goods and services to the amount of
$40 900, 100000 or so. This year the |
government proposes to devote goods
and services to the amount Of S19,-
100000 in a new direction. The |
two categories of peace purposes and
war purposes contain Some duplica-
tions; yet it is evident there are not
enough materials and labor in the
country to cover the old peace pro-
gram and the new war program, too.
So you hear this doctrine: eve
must cut out businesses that are not
essential for carrying on the war or
for subsisting the population"
But this is mischievous nonsense.
We must economic intelligently in
the use of labor and materials that
are essential for carrying on the war
and subsisting the population-which
is a different matter.
Here is a millinery shop filled with
expensive hats. They represent con-
sumption of labor and materials. Ger
tainly they are not necessary for the
war or for subsisting the population.
But the materials consist of silk,
satin, artificial flowers, feathers =
stuff that is worthless except for pur-
poses of display. The labor is large
ly that of women whose labor for any
other purpose is of comparatively
slight value. A woman worth $50 a
week as a hat designer might not be
worth so cents a week in a munitions
factory.
In short nearly all the material and
a good part of the labor will simply
in the millinery shop. They are not
of sort that the government can use
for war purposes or that are of much
value for necessary subsistence.
Cutting out business not strictly
necessary for war or subsistence
would mean shutting down two-thirds
of Fifth avenue, New York-all the
milliners, dressmakers, jewellers, deal
ers in art objects, expensive furni-
ture and so on. The materials and la
Dor saved thereby would be of very
little value for any other purpose.
You would at once start panic in
the rent market. All of these So
called nonessential businesses are
bases of credit-bank credit, jobbers'
credit, manufacturers credit. Cut
them out and the whole structure of
credit would get a heavy jolt. Let
any banker look over his loans and
mark off all those which are based
on. businesses that are not strictly
necessary for war or subsistence, and
then consider how long his bank
would stay open if all those business
es were shut up.
Here is a piano factory-certainly
not strictly necessary for war or sub
sistence. Much of the material-ex-
pensive woods and so on-is useless
except for such purpose as piano
making. The labor force, skilled anC
experienced in that particular trade
cannot be suddenly diverted whole
sale to another occupation except al
large loss. The piano maker has his
branch offices, his long established
relations with retailers whose sol
vency and livelihood depend upo,
handling his goods-in short, his en-
tire extensive business organization
built up by long effort and cementet
by long usage. To close his factor.
is to destroy all that, to start rami
= flying organization, to shock credit
to initiate dangerous business contrac
! tion.
Millinery shop and piano factor,
i do contribute to the war. They pa
/ excess profits taxes and income taxes
: buy Liberty bonds. Cutting out thee
D retically nonessential businesses woul
. cut great holes in the government
a fiscal program, both on the revenu
= and the borrowing side.
q True, if we were planning for wa
d as a permanent condition, we shoul
I say: Lets go a step farther bacl
r The labor which produced the silk
e and satins in the millinery shop an
' the expensive woods in the piano fat
/. tory may be diverted to essential prC
S duction." That would mean virtual
|. disorganizing industry as it stanC
e and organizing anew on a differel
d plan-obviously matter of year
and even then to be done cautiousl
IS lest the machine break down in tran
?; ition.
u But we know war is coming to 6
n end some time. The enormous d
n, mands for labor and materials Whit
d it created will then cease, and tt
,e crucial question will be how to effe
n a readjustment to peace without di
aster. The more vigorous the o
, peace organization is at that time Il
reader it will be to take up the sla,
and the less likelihood of a brea
down. We shall then need exact
that millinery shop and piano factor
But if the old organization has be,
shot to pieces, the outlook will be e
s. ceedingly dubious, for the busine
E. organization-like that, say, of t
lg piano maker-cannot be reconstruct
in over night.
What business is nonessentia
ed Who can say? You say the bicy(
er business is; but the aeroplanes tn
er direct the armies evolved out of
bicycle shop. 1t was because Bell w
er student of elocution that the stu
lg of sound led him to invent the te
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