The sun., 1919-10-02
PRICE REMEDY
SEEN IN GAINS
IN PRODUCTION
Lessened Efficiency of La
Dor World Over Causes
Condition, Says Expert.
BAR TO STRIKES ASKED
Basic Economic Realities
Should Govern Conference,
Morawetz Warns.

Decreased pro0ucuOn arising pr1-
marily out Of war conditions and per-
petuated by the slowness of European
countries in returning to normal IN
dustrial conditions and the lessened
efficiency of labor here and abroad is
the fundamental cause of the present
high price level, IN the opinion OF Vic
for Morawetz, and the work of the
labor conference, which has been
called to meet at Washington on Octo-
Der 6 must be scrutinized by the pub
Ic with due recognition OF basic econ
omic realities.
Mr.. Morawetz, who is an authority
on banking and financial problems
a. well as corporation law, maintains
that any attempt to defy we'll recog-
nized economic laws in the effort to
better present conditions will be futile
and that the only permanent remedy
sor the present plight of the world is
to be found in augmented production.
He is of the opinion. however, that in
asmuch as capital employed in GER
tain public utilities is Inhibited from
Withdrawing and the profit upon it
practically fixed by Government regu-
lation, so the wages of labor in such
industries should be fixed by Govern
mental authority and strikes prohi-
hited by law.
In discussing the matter yesterday
Mr.. Morawetz said:
Most of the important Industrial. So
cial and governmental troubles through
out the civilized world are due to the
failure of the people to accept and to
apply certain unalterable economic
truths. Some of these truths although
self-evident to those who have given the
subject adequate consideration, are not
understood or accepted by the people
generally, and in many cases the COOP
Grafton or common action by the peopla
which these truths show to be necessary
for the welfare Of the community can
not be secured except through govern7
msntal compulsion or control
One Menace to Progress.
However. one of the greatest dangers
to enduring progress is hasty or ill-con-
s!dered legislation or governmental, in
reference. Great economic and social
problems cannot be worked out sudden
iy or by revolutionary methods. Our
Institutions are the result of slow evolu-
ton and they can be improved only by
the same slow process. Any attempt to
reyolutionize or to change them sud-
denly according to any theory of social
justice is bound TO cause disiocation OF
the complicated machinery of civilized
life and to result In disaster to the en-
4 Nx.rr frr1fa rnxraTr aTNf
OF the economic condition of the people
can be effected by governmental action
only gradually with the cooperation of
the people, and such action in every case
must be in harmony with fundamental
economic truths.
"In view of the coming labor confer
ence 1t seems not amiss to call attention
t. a few of these elementary truths that
cannot be overlooked In dealing with the
great PROBLEMS to be considered.
IA civilized community cannot ex-
ist without minute division Of labor
among its members or without the CO.
operation required to organize and main
tain elaborate systems of industry.
transportation, commerce. finance, edu-
cation and government Without this
division of labor and this cooperation
the necessaries of life required to sup
port population cannot be produced or
distributed, wealth cannot be accumu-
lated. and there can be no security OF
life or property. No mans wealth or
income is created by himself alone. but
all wealth and all incomes are due to
the cooperative labor of the community.
20. Probably 80 per cent of the able
bodied men and women in the United
States are engaged In work of some kind
necessary to keep in operation the COM
plicated machinery of a civilized COM
munity The work of many of them.
such as teachers. government officials.
clerks professional and business men.
is principally mental. large percentage
Of them, such as farmers. shopkeepers
and professional men, do not receive
wages but work for their own account,
and probably a majority of them own
a certain amount Of property or capital I;
but they are all laborers in a true sense.
Even women who attend to their house
hold duties are engaged In labor neces-
sary to the existence of the community.
Only a minority OF the laborers OF the