New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-07-20
is the prospect Of a decline in the
costs and profits enumerated above?
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Is the prospect OF q decline in the
costs and profits enumerated above?
1. Interest on Borrowed Money
The interest rate has advanced on
account of the war, and has, therefore,
played a part in higher cost of produc-
tion, although q minor part. There is
no prospect Of any substantial do
cline in interest rates, and still less
prospect of any appreciate reduction
in the total cost Of production from
this source.
2. Wages and Salaries
The war has brought about per-
manent improvement in the standard
OF living Of wage workers in the
United States. In the interest of war
production the government assumed
! control over labor as we'll as over ma
terials, credit and transportation. Hav-
ing assumed such control, it was
obliged to standardize, as far as pos
sible, the conditions of EMPLOYMENT
| The eight-hour workday was pro
claimed as the basic workday for in
dustrry: Furthermore, the principle
was laid down that every workman was
entitled at the minimum to a Giving
wage" and to sanitary working and liv-
ing quarters. through the govern ov
ment's war control over industrial
labor, and the consequent impetus
toward higher minimum standard
Of living, the cost of industrial pro
duction has been increased.
The government, in one sense, did
not introduce a new standard. It
merely enforced an accepted American
standard already In existence and on
a large scale eliminated violations Of
war, when Immigrant labor was plenti
full
7 The position Of labor has been per
manently strengthened in this country
by the virtual absence Of immigration
Tor tour years, during which period
ABOUT 100000 men of military age
nave nave been destroyed, largely in the
come. Just now about 100000 men are
unemployed In the United States.
While this is large number in COM
parlson with year ago, the fact is
that 100000 men were generally un-
employed in the pre-war days Wages
are perhaps the largest item in the
cost Of production, and although
wages have risen union wage scales
above the cost of living. If we ex
anime the cost Of living budgets since
November, 1918, we find that the only
notable decline which has occurred is
In the case Of clothing However, the
saving in the budget there ia offset by
Increased rents. Food at retail, which
constitutes the largest Item in the
budget, has not materially changed.
In other words, the cost Of living to
the workman has not declined and
shows no immediate prospect Of de-
Ginning.
There are two good reasons for not
expecting a fall in wages until the cost
Of living is reduced First, employers
generally are not DESTROYS of forcing
down wages until prices drop; second,
wage earners will oppose any deduction
and are in strong position to make
their opposition effective.
3. Raw Materials
The raw materials Of one industry
may be the finished products Of an
other. Hence the analysis at this
point IL difficult. 1t may be main
tanned. however, that the cost of raw
materials Of any particular industry,
including agriculture, will not decline
until the costs Of production or profits
Of other industries have declined.
Hence, generally speaking, any decline
IN the cost OF raw materials must be
the result Of decline in interest,
/ wages, profits or taxes
A. Taxes
Taxes may be subdivided for our
purposes into excess profits and IN