The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-04-06
ne VAR PRICES AND
l'PRt-WAR WAGE SCALE

III WIN UUOI OOiI6G
A.
Reduction In steel Regarded ~ Inn.
p0rtant to General Business.
Reduction In steel prices, 40 am
aounced by 1.-THE Industrial. board OF
theedepartment of commerce. are held
to b. no more nportantttos the general
business situation. especially in the
building and construction industries
than are the boards statements that
sRcAaAHt, wage, levels Fhauld nal IRe
disturbed and pre-war prices are out
oIsthe question.
Since January there have been re-
ceiyed in the Department or LABOR
thousands of letters from architects
Building contractors, prospective IN
ysstors in buildings, and from state
municipal authorities in. which It was
Represented that uncertainty as to
prices and wages. rather than the
present high level OF prices and wages,
were the stubborn obstacle to be elimi-
mated before III general revival OF
building and construction work would
be had.
Education Service, in the Department
OF Labor, has been putting out the
results Of investigations by trained
economists. In the price and wages
fiAIds. The conclusion has been. and
In this conclusion 70 eminent an
authority a. rrof.. Irving Fisher of
Yale university has concurred. that
the popular Expectation of re-
establishment. az pre-war prices Is not
Justified. 1t was asserted that wages
had not advanced in proportion -
livings costs, ana that while minor
price changes might be expected IN
some fields, to use the language OF
Prof. Fisher, I'VE are on a per-
rnanently higher price level and the
sooner business men OF the country
take this view and adjust themselves
10 ii, the sooner will. they save them
selves and the nation from the mis-
fortune which will come. II We persist
in our present false hope.
Since the steel industry is one
which most profited from the de-
!. asss,asas OF the WAR. 1t probably can at
ford to make a greater reduction IN
present prices than may be expected
in other industries. Building and
construction authorities are not. there
fore. disposed TO believe that subse-
auent price negotiations by the In
tlustrial board OF the department OF
commerce will develop reductions
proportionately as marked as those
announced for steel They assert that
the boards statement. I'm view oil
the higher costs developed through
out the world as a result of the war,
a return to anything like pre-war
prices In regarded as out Of the anes-
tion,n ts a sound conclusion and timely
cprroboration Of the statements made
by the department of labor in its
campaign to stimulate building and
,s0n nj rurfion work
Two departments OF the government
the department OF labor and the
department of OBSERVATION-DISCLOSURES In
tlependently, have arrived at the ssafrse
conviction, namely, that tho country
la on new price level and to delay
business projects in the hope that pre-
war prices again are to prevail Is tc
jeopardize the business structure OF
the country, delay the return OF pros
perity. and. in the end discover, AZ
Prof Fisher puts II. ito talk reyer-
entity OF 1sI3-I4 prices is to speak
dead language today"
Investigation of contracts on build
ing and construction projects, let IT
February. 1919. made by the depart
ment of labor. produced CONVINCING
evidence that majority OF the CON
tractors and builders In the country
have come to understand the situation
Of 1918 and 1914 are revised 10 The
basis OF present construction prices
and these figures are compared witt
the contracts let in February. 1919
the comparison shows that February
1919, was better than 80 per cent o.
normal. Now that the Industrial
Sboard OF the department OF commerce.
adds Its testimony on the futiiify o.
delaying business in the nope o
availing OF pre-war prices, reason
able expectation Is that building ans
construction work VIII snow rurthe'
approximation OF normal.
Through all the economic studies
recently issued by the information o.
education service of the department
!. OF labor has been such evidence n
clearly indicated the imprudence o
any policy contemplating radica
changes in existing wage scales. Ii
the recent conference OF governor
and mayors I'm Washington. wa
clearly the Consensus of opinion tina
reimbursement should not and couit
not mean AN immediate pressing
down Of wages. This because wage
have not gone nr. In the same proper
tson as living costs and. further, be
cause it is generally believed pruden
10 do everything possible to main
rain the higher living standards which
have been evolved during the war.
Notwithstanding these develop
f4sents, there are many In industr'
who have been urging wage reduc
tons There has been enough OF thi
agitation To create an uneasiness II
the ranks of labor. and uncertaint
AS 10 the future labor conditions II
the minds OF prospective builders ant
contractors. For this reason the pre-
tedent established by the industrial
board of the department OF commerc
in The steel case should have yer,
beneficial effect On the wage mat
ter. in the statement announcin
the new prices on steel. the boar
says:
ut Ia fully understood and expecte'
that the present wage rates or agree
ments will not be interfered with. TN
approved prices having this In view
All economists and practical busl
ness men agree currency condition
are an Important factor In presen
prices. This can not be admitte
without admitting also that presen
currency conditions are an importan
factor in present wages. Money
Just as cheap when it buys labor q
when 1t buys steel. and those VIII
xsrarv snp IndH