The sun., 1919-07-21
Merchants Association, in
"Bulletin," Sees Shortage
Of Labor.
HOUSES ARE BIG NEED
No Relief in Sight Until Build
ers Can See Profit for
Their Work.

| Will be maintained indennuely.
Increased industrial activity through
out the world. with q shortage Of labor
tending to rising wages and higher sell
ing prices. 10 inevitable.
| Manufacturers must realize proEtf
| through increased efficiency in produc'
ton and with cooperation OF wage earn
ers.
The housing shortage cannot be re-
lieved until more houses are built under
normal conditions, which will insure
profit"
These are some OF tho conclusions
reached by the Merchants Association
after considering @ report OF its special
committee on housing. according 70
| Greater NeD York, the association
| weekly bulletin.
| The special committee concluded that
the housing situation will be improved
only by the construction OF new houses
under normal business conditions, Wnen
all parties financially interested In ouiid.
/ ing operations receive a return suf11clent
| TO prove an inducement for further ac-
tivity
| After dealing with its inquiry Into
high building prices and monetary IN
nation prevailing throughout the world'
the committee has this to say ABOUT a
new world price level and increases In
wages:
| at apears to be almost the unanimous
| opinion among the economists ana DUST
ness men who have carefully studied the
present price situation that We are now
on a new world price level. and that
future price adjustments will be maze
| toward this new and higher price lever
rather than to the price level existing IN
1914.
Hish Wages, High Prices.
| It has been estimated that
in general 20 per cent OF the cost
OF production Of articles In common use
may be attributed to wages. Inns eA-
plains why the most important reason
| for the general increase In prices ana
for the maintenance OF high prices is
the higher wage scale.
wages advanced during the war
period because of the scarcity or work
ers and the great demand for them.
Wages will be maintained for this and
for other reasons Before long we will
undoubtedly see a great labor shortage
| in fact there Is already marked LABOR
shortage in many skilled trades, ana
the unemployment situation. about which
so much is said is due to maladjustment
of labor and a surplus in individual
lines of industry--such as the ouildlns
trades--rather than to a general LABOR
surplus.
The supply OF labor the world over
has been diminished greatly by wastage
of war operations. while in this coun-
try in particular there has been fur
Their decrease due to cessation of immi-
grafton accompanied by a rapid IN
crease IN emigration. and 10 the apsorp-
/ ton Of many OF our workers in INDUS
tries hitherto unknown or unimportant
! IN this country At the same time the
demand for workers will increase as
soon as our industries expand to meet
the vast requirements which will be put
upon them by the worlds markets.
THE effect OF this situation upon
prices can readily be imagined when it
! Is realized that there has been no
marked drop in prices even during the
past few monts when industry in
! general has been curtailed. and when
tho labor supply has been increased by
millions Of soldiers and war workers,
Workers Demand More.
THE determination Of workers to
maintain the high wage schedule is an
other factor to be considered and would
| be important even though the law of
supply and demand should not operate to
maintain present wages. II Is this de-
! termination on the part of workers 10
| prevent wage decreases that has been 10
! a large degree responsible for the main
| tenance OF wages since the signing Of
| the armistice. Workers are determined
that they will receive a greater share In
! the profits Of business enterprises than
! has hitherto been the case and there
! seems to be a growing conviction on the
! part OF students of this subject that in
| the future a larger return from indus
try than hitherto will go to labor This
| return will be chiefly In the form OF
| higher wages,
ZIP to the present time higher wages
! have not yielded Correspondingly
higher real return to labor, The policy
| NJ the manufacture has been to increase
the price OF his product sufficiently to
cover the increased labor cost. Inas-
much as this policy has been general
| the result has been an increase in price
| OF all products and hence an increase in
the cost Of living, with the further re-
suit that workers have demanded add
| tional wage increases to offset the con-
! tinued increased cost OF living.
There seems no way OF stopping this
alternating increase in wages and cost Of
living except by increased efficiency Of
| production or by decreased profit per
unit in production. or both. This means
| that the manufacturer must eventually
make his profits through an increased
| volume OF business with less profit per
unit OF product and must keep produc-
ton cost low in the face ~ rising wages
by more eflcient machinery, improved
methods OF management. and especially
by the cooperation and earnest efforts
OF employees Granting that this is the
ultimate solution OF the problem, never
theless it will come gradually rather
than Immediately, In the meantime the
demands OF labor for an increased share
in the returns from industry or the de-
termination OF labor to maintain pres
ent wage schedules will not permit
drop in prices"
20