The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-09-10
LABOR, CAPITAL
AND PRICES

i (From the Springfield RepuDllca n }
+. Labor Day this year is notable not
! only BECAUSE II Is d reminder Of the
unprecedented power of labor. organ
+; lied to express itself collectively, but
also because all economic classes are
! undergoing process of education
! based en- a remarkable economic ex-
; pericncc. When the economic history
! Aug ust, 1919, may apear a turning
pcint-of what sort only prophet
! could now say. But at least high
! prices then reached their peak, il
! present evidences are to hold good. as
i the result of governmental drive
against them, initiated under the spur
of labor union representations yet
concurred in very generally by capital
as sound policy. The price level
in August has fallen somewhat under
!! the concerted attacks made upon it
and this fact has probably done more
| than anything else to weaken the ten
dency toward strikes.
The president OF the United States.
as in his Labor Day message, speaks
with more influence in labor matters
! and the more conservative labor lead
ers themselves are strengthened in
their efforts to restrain the more rad
ical labor groups. The past week has
been conspicuous for such develop
ments. The heads of the railroad
{ shop unions have advised a waiting
policy rather than walkouts and tic
ups. The sporadic railroad strike in
southern California was suppressed
by the railroad brotherhoods cooper
ating with the government. Mr.. Comp
ers' latest utterances indicate that
his influence is being thrown on the
side Of moderation. The disturbing
effects upon general business Of re
cent developments cannot <be ignor-
cd but the securities market late in
the week reflected increased conf
dencc by sharp rise in railroad and
industrial shares and by Il consider
able abatement Of the selling pres
sure in the bond market which has
been notable for month past. The
threatened strike in the steel industry
remains a dark cloud on the indus
trial sky. however. and it is yet to be
seen whether ali accommodation can
be brought about that will not result
in an Industrial setback.
Capital is getting educated these
days as much as labor. It has learned
that a high price movement sooner
or later reaches a point where its
own security is threatened by social
and labor unrest. AS Prof. Nicholson
the British economist. recently said
in q lecture to Londons$bankers: ~
Continuance in the rise Of prices is
-. dangerous to capital, because it
may bring social revolution into tho
range of practical politics" This les
son was suddenly impressed on Amer
lean capital last month, the lesson
being dranlatized for capitals benefit
by the coincidence Of the railroad
brotherhoods' deni&nds for railrc2a
naturalization with their representa-
tons 70 the president, concerning
wages and the high cost of living. 1t
is no far fetched conclusion that
ttne- fall III prices during August was
partly due TO the prompt recognition
by the most powerful financial. pro-
ducing and distributing interests that
/ The upward price movement had
preached the utmost limit Of safety.
ECapitai, in short, sees that fall in
prices is now TO its own advantage as
we'll as to society as a whole. and 1t
low hesitates to raise prices even
when technical market conditions
Fmjgit warrant them.
As for labor, its education from
tcurrent experience should not end
with the discovery that it is useless
to force higher wages if the higher
swascs are absorbed in higher cost
Of living It is more important to
Elabor to get prices down than to get
wages up. .As rule. economic his
story teaches that wage labor gains
sfron falling prices and loses by rls-
sing prices, provided that the fall III
prices is not attended by unemploy-
sment. Even before the war prices had
sbeen rising for some years and wages
chad not risen in proportion to the rise
Fin the prices of the things labor most
snee6s to live on. During the war and
safter. wages in certain strategic lines
where labor was strongly intrenched
for collective bargaining were forced
Sup to proti.eerinS levels. but the mass
of unorganized wage learners and sal
saried people we're cruelty pinched by
the extreme cost of living. The real
causes of the great rise in prices in
wartime are now OF vital interest to
Ia Dor. if iabor's influence is to be
FUSED tightly in Fastening the rcstora-
ton of normal conditions instead OF
being used to strengthen the. forces
Of disintegration.
One of the most essential things
ahead of us is the increase Of the
production of the necessaries of life
hence strikes are Il calamity because
/ they hinder production and Increase
prices. The Pennsylvania coal miners
won't help the world along or labor
I in general by demanding at this time
a. GO per cent increase in wages and
a hour day. The practice Of thrift
Ind saving is today an economic vir-
tue of the highest value in all class
fcs. Thrift and saving force produc-
;:on OUT Of unessentia! lines. and thus
7 nrif.aC Of