The Birmingham age-herald., 1919-06-12
For the Good of
 the Community

ID ECENTLY Roger w. Babson, director gen. IN eral of the information and education serv- ice of the United States department of labor, ad- dressed a communication to a number of the lead ing financiers and industrial leaders of the coun- try requesting their views on present high cost of commodities and industrial and labor condid- tions.
 The answers have been compiled and printed with the following comments by MT. Babson:
 Although admitting that the general trend of prices during the next decade may be downward, there is strong feeling on the part of some that there is likelihood of sudden fall ln the near future beyond the elimination of war prices made necessary to stimulate production in high-cost plants"
 All of those replying to Mr. Babson's inquiry agreed that no sudden or decideetdrop in prices could be expected for several years.
 J. Ogden Armour of the Armour Packing company, in his reply said:
 "The greatest danger to our economic struc- ture today arises from the failure of many to recognize NEW AND HIGHER LEVEL OF PRICES, BASED ON PERMANENTLY IN- CREASED COST OF LABOR, AND HIGH TAXATION.
 "Those who postpone building or buying in hope of materially lowering prices, are speculat- ing in the future misfortune of the nation. For falling prices, when reaching the point where profit Is eliminated mean panic, depression, un- employment and other troubles.
 He says wages constitute 75 per cent of the cost of productions and that wages will not be less for several years stating his reason for this belief that, practicable stoppage of immigration since 1914 deprived America of several million work CTS normally coming to our shores, retention ln the army and navy of nearly 2,00O,OOO workers, which may continue for an indefinite period; creation of new industries, such as shipbuilding and the manufacture of chemicals; urgent de- mand for building and construction Of every class due to their having been forcibly. stopped several years; shortage of worlds food supply, and proportonately higher levels of commodity prices existing practically all over the world.
 James B. Forgan, president of the First Ma tional Bank of Chicago: While it is my belief that the general trend of prices during the next decade may be downward, do not anticipate any sudden or violent tumble in the near future beyond the elimination of war prices made nec- essary to stimulate production in high-cost plants. There exists in the world today, and there will exist for sometime to come, tremendous latent demand for goods and service and a relative shortage of workers caused by the war"
 Maj. Gen. George w. Goethals: Business is being retarded because we are hoping for, or fearing, lower prices. Whether these fears, or hopes, are ever going to be realized, no one can say, but above the maze of conflicting arguments that are being applied to the situation, fact stands out preeminently: WE CAN RETURN TO NEITHER PREWAR CONDITIONS NOR PRE- WAR PRICES"
 Jacob H. Schiff, of Kuhn, Loeb & Co.,: "For four years the Ofderly production ana ma1nte- nance of peacetime activity has been most vio- lently interrupted throughout the civilized world causing on the one hand heavy depression of property and on the other an appalling destruc- ton of all those things which are vital to human happiness, life and activity. The reconstruction is going to tax our efforts perhaps even harder than did the war, the latent demand for labor and commodities being tremendous"
 Theodore N Vail president of the American Telephone & Telegraph Co.,: During the Civil war prices rose relatively more than during the cent war. The prices unquestionably were in- flated being based on greenback currency. Even so, however, the drop in the prices of 92 commod ties in the decade from 1864 to 1874 WAS AT THE RATE OF LESS THAN SIX PER CENT; in building materials it averaged less than four per cent per year over the same period"
 A. Barton Hepburn of the Chase National bank, New York, says that until there is a reces- sion in the cost of labor there can be no recession in the cost of commodities, and that as long the minimum price of wheat is fixed at S2.25 a bushel and other necessities of labor are high there is every reason why labor should contend against reduction"
 w. L. Douglas shoe manufacturer of Brock ton Mass: If you call to mind, the per capita in the United States in 1914, in round numbers, was about $34. Recently have noticed that the ioh ic ofo