The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-07
awake
TO GRAVITY OF
ECONOMIC CRISIS
President and Some Thought
full Members of Congress
Are KeenIy Alive to Labor
and Living Problem.
BY DAVID LAWRENCE.
Especial Correspondent Of The News
SclEH!tar.)

Sclss!tar.l
WASHINGTON, Aug. 7.-While it
would be wrong to give the impression
OF panic or chaos in the national cap
ttal, nevertheless there is no under
estimating the gravity and concern
with which the more thoughtful MEM
bers of congress, as well as President
Wilson view the economic crisis of the
nation.
The implications Of the demand made
by the railroad brotherhoods that they
be permitted to take over the railroads
In partnership with the government has
caused many a legislator n official
to ask whether the o~ft-predicted agi-
taton for a soviet management Of in
dustry has not reared its head in
America at last.
To date nothing concrete has been
put forth by the Democratic admin
istration or Republican congress to
meet the situation, but the first flash
Impression that petty politics had
something to do with the projection OF
the problem at this time is rapidly dis
appearing and in its place is, coming
a sober second thought that both Re-
publican and Democratic parties work
together for their own common inter-
est, or out Of the present situation may
grow a radical third party recruited
from the ranks of labor as well as lib
erals and radicals who think the high
cost OF living is a sequel to monopolis-
tic control and excessive profits.
To Solve Itself.
But it is precisely because the gov
eminent in all its branches has been
aroused and the president has aban-
doned for the moment the league of ma
lions conference that some Of the most
alert-minded officials here believe the
crisis will gradually solve itself. To
confirm this line of thought they point
| significantly to the drop in stocks on
Mondays market, n the general de-
cline, especially in commodity stocks.
This is not saying that specific RENE
dies will not be proposed. Definite
measures will be laid before congress
by the president and 1t would not be
surprising to see a request made that
some OF the power granted during the
war whereby the prices of food Were
regulated be continues and Ghe de-
partment of justice, too, will proceed
against those profiteers against whom
| convincing evidence can be collected,
though the difficulty is to accomplish
such a fact in the present state of
American business, interviewer as it is
with permission granted under war
time conditions and abuses practiced
in reconstruction days which are tech
| nically war days as the peace treaty
has not been ratified. But the belief
that much more immediate coed will
come out Of the simple agitation for
lower prices accompanied by the ehreat
OF legislatice action is beginning TO be
more pronouNCed daily.
The drdp In some prices already OBJ
served since the mere announcement
was made that the president had de-
cided to take a hand in the situation
has not escaped attention here and,
while there are many hopeful officials
who believe the government a pro-
vide some definite remedies, there Is
also d group which believes that the
business of reducing the. cost of liv-
ing is too complicated and involved to
be managed by legislative act or exec
cutive fiat, and that an appeal to the
conscience as well as the good bust
ness seEse Of producers and consum-
ers will have a soothing effect on the
situation before long.
Two factors are advanced by OIL.
cials who follow the latter trend Of
thought. First, they declare European
demands have been grossly. exagger-
ated. Second, men like Frank Wander
lip, Henry P. Davidson and others have
came back with plans to finance Eu-
exporter the impression that unlimited
credits are going to be available to pur-
chase American goods.
With respect to the first considera-
ton, is is contended that many Ameri-
can manufacturers have naturally been
l nOlulnK 1dIkS uudnbliiCG VI low %
before fabricating them into finished
products because they have expected
even higher prices. Consequently pro-
duction has been c%urtailed, and prices
have risen. Speculation in cotton, food
products, wheat and many other basic
commodities involved In the cost OF
living has continued since armistice
day In lively fashion. But, just as coon
as the true nature of the European
demand is known and also Just as soon
as it becomes apparent that America
isn't going to be asked by. Europe TOT
enormous sums of money, the statue OF
Europe will not seem as near bankrupt,
CIV as some men have pictured 1t, and
the American producer will begin to
consider American markets at lower
prices as not so bad after all.
Spectators, too, 1t is thought, arr
already being driven to cover ty the
nation -wido demand that the govern
ment take a hand, and the spectators
in wheat know what happened when
the food administration began to func
ton. But the most disturbing situation
which is staring the national capi.al y
strike and the demands Of the broth
erhood. Even those friends In the ad-
! ministration Of the railroad men VINO
believe a wage increase should be
granted are beginning to feel uncom
Portable and %sen irritaeed ny tnS N,
Z l 0lIIHrenC6 bnOWH Wy NhS
to President wilson's suggestions for 9
new s%uperboard to fix wages anc
II is c~ontended that the brotherhood
might at least have awaited the out
come Of the presidents appear 20 con,
l Rress before tieing up traffic an
wrecking havoc on the nations indus
trial processes. II anything, 1t Nigh
be said that a reaction is setting II
against the br~otherhoous on accoun
not merely of their threat to strike on
workers who already have left thei
jobs.
Firm action as well as firm expires
sion may be looked for from Presiden
!. Wilson probably will not become an;
more popular than he was before VIII
the employers class, who believe h
surrendered in 1916 On the Adamsol
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