The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-07-18
BUSINESS MEN DO
NOT EXPECT DECLINE
RATHER PREDICT HIGHER
PRICES IN FUTURE.
Talk Of Sudden Decline Is
Secuted by Bankers and
.Tradesmen Generally.

Washing bankers mer-
chants and insurance men throughout
the country. In statements which they
have prepared for Director General
Roger w. Babson, of the department
Of labor. make ii clear that there will
be no sudden decline OF prices follow
Ing the return of peace beyond the
elimination of war prices which were
made necessary to stimulate produce
ZION in high-cost plants.
J. Ogden Armour says that the
greatest danger to our economic
structure today arises from the failure
Of many to recognize new and higher
level of prices. based on permanently
Increased cost of labor and high. taxa
hon.
Those who postpone building or
buying IN the hope Of materially lower
prices are specializing in future mis-
fortune of the nation" he says; for
falling prices: when reaching the point
where profit is eliminated, mean panic.
oppression. unemployment. and other
troubles.
& Nothing in the labor situation war;
rants any one in expecting materially
lower costs of commodities in general,
and building in particular. Wages will
not be less for several fundamental
reasons, viz:
Il. The practical stoppage Of immi-
grafton since 1914, depriving America
OF the several million workers who
would normally have come to our
shores.
N -. The retention by the nations
military and naval establishments of
nearly 100000 workers, which may
continue for an indefinite period
%. The creation of new industries.
such as shipbuilding, and manufacture
OF chemicals and dyes requiring hun
dreds Of thousands of workers.
a. The urgent demand for building
and construction of every class, due to
their having been forcibly held back
for several years.
20. The shortage of the worlds food
supply;
OF commodity prices existing pract-
cally all over Europe.
On the one hand. then we are fac
Ing a serious shortage of labor as
soon as We approach normal Industrial
activity. and on the other hand. there
is confronting us a tremendous I'M
satisfied demand for many necessities
which 1t was difficult or impossible to
obtain during the war, A new level of
prices has been established from which
there can be no material recession I'M
I'll inventive genius succeeds, in cor
respondingly increasing labor's produce
tive capacity by mechanical means"
High Wages Here TO STAY
James b. ForRan, president OF the
First National bank. of Chicago. as
serts:
While it is my belief that the gen.
eral trend of prices during the next
decade may be downward. do not an
ticipate- any sudden violent tumble in
the near future beyond the elimination
OF war prices made necessary to slim
ulate production in high-cost plants.
We cannot eat our cake and have it,"
We cannot ifoI1pdiafaIU hau
priced products with high-cost labor.
AT no time was honest labor more
indispensable than during the war. and
during that period the average weekly
wage of all workers was greatly adj
vanced. Out OF the war has come
strong realization of the value. of labor
to civilization, and we must acoustic
ourselves to the evident fact that per-
manently higher scale of wages or COM
pensation has been established for the
worlds worker. both skilled and ui-
skilled"
Maj. Gen. George w. Goethals ex-
pressed the view that we can return to
neither pre-war prices nor prewar con-
ditions.
Every thoughtful employer of labor"
he SAYS. realizes that the wage Garner
is entitled to proportionately more of
the comforts and conveniences of life
than fell to his share before the war.
Every thoughtful buyer should realize
that the price he pays for goods must
be in proportion to the increased cost
of labor. Also that labor. in the
broadcast sense. constitutes over rs per
cent. of the cost of most products of
farm, forest, mine. factory and lab
oratory.
THE manufacturer. employer, or in-
dividual who is selling his own labor,
brains or product at a high. though
reasonable price. should not expect to
buy cheapy from others. Let us be