The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1919-07-25

proved only by the construction Of
new houses under normal business
conditions, when ali parties financial
ly interested in building operations
receive retur Insufficient TO prove an
inducement for further activity.
After dealing with its inquiry into
high building prices and momentary
imitation prevailing Throughout the
world th- committee has This To say
shout new world price ievel and airrf
creases in wages s-
III appears TO be almost the mani
nous opinion among the economists
and business men who have carefully
studied the present price situation
that we are now On a new world
price level and that future price adj
iustments will be made toward this
new and higher price level rather
than to the price level existing in
1917
III has been estimated that in gen.
eral 20 per cent OF the cost OF pro-
duction OF articles in common, use
may be attributed to wages. This ex-
plains why the most important rea.
son for the general increase in prices
and for the maintenance Of high
prices is the higher wage scale.
Wages advanced during the war
period because OF 'the scarcity Of
workers and the great demand for
them. Wages will be maintained Tor
this and for other reasons. Before
'ong we will undoubtedly see a great
labor shortage; in fact there is al
-eady q marked labor shortage in
many skilled trades, and the unem-
plcyment situation. about which so
much is said, Is due 10 maladiust.
ment or labor and q surplus in indi-
vidual lines of industry-such as the
building trades-rather than to gen
eral labor surplus.
The supply of labor the world ov-
er has been diminished greatly BY
wastage of war operations. while in
this country in particular there has
been further decrease due to ces.
sation Of immigration accompanied
by rapid increase in emigration.
| and to the absorption OF many Of
iur workers in industries hitherto un
sncwn or unimporSant in this coun-
try. At the same time the demand
Tor workers will increase as soon as
our industries expand to meet the
fast requirements which will be put
ipon them by The worlds markets.
The effect CT this situation uron
| prices can readily be imagined when
t is realized that there has been no
marked drop in prices even during
the past few months, when industry
n general has been curtailed, and
when the labor supply has been in
creased by millions of soldiers and
war workers.
THE determination of workers to
maintain the high wage schedule Is
another factor to be considered and
would be important even though the
aw of supply and demand should not
perate 10 maintain present wages.
is this determination on the part of
workers TO prevent wage decreases
hat has been to large degree re.
ponsfb,e for the maintenance OF
wages since the signing OF the arm!s-
ice. Workers are determined that
they will go to labor. This return
viii 0e CHIEF Of business enter prises
than has hitherto been the case, and
there seems to be growing convic.
ion on the part Of students of this
subject that in the future larger re
urn from industry than hitherto viii
% to labor. This return Will Re chief
yin the form of higher wages.
Up to the present time higher
wages have not yielded correspond
ingly higher real return to labor. The
policy of the manufacturer has been
a.
sufficiently to cover the increased la
Dor cost lnasmuch as this policy
has been general the result has been
IN increase in price of all products
md hence an increase in the cost OF
living with the further result that
workers have demanded additional
wage increases to offset the con-
inued increased cost OF living.
There seems no way of stopping
this alternating increase in wages