The Cordova daily times., 1919-03-29

eter the reconstruction era and enjoy active business again.
 Next to copper, ocean freight rates have most nearly readjusted them selves. Cuts of from 66 to 75 per cent already have been made. These re- ductions do not make cargo space as think The tariff is still 100 per cent above pre-war levels. It is now, how ever, down to a point where it is pos sible and profitable to resume normal traffic activities. As soon as more tonnage is available the ships will de- liver a blow at food and other prices ] thing else to restore normal condi- tions
 At this writing steel prices are struggling down in anticipation of an other formal cut of $4 ton, which is expected to come in few days. The first drop from the governments fixed prices came January 1, and ran from $3 to $5 ton. This was not enough to produce any buying orders. It is hoped that the second reduction will bring buyers. If not there will be other breaks until a practical level is reached and the steel industry be- gins to supply the great building de- mand that has been stopped for eighteen months or more, and which insures great activity in the building trades for several years to come. One of the first indications that lower prices were on the way came from the woolen mills. In December the American Woolen Company held some big auction sales to sound out the market. Woolens were bought at from 25 to 30 per cent below the price prevailing at that time. Buyers were few, however, and it is expected that further concessions will soon be made. The decline already noted, however, takes the price back to where it was year ago.
 There has been a slash of 30 per cent in the price of cotton fabrics, cotton and wool have been sold down, petroleum prices have been shaded, first-class postage rates will come down July 1, and long line of food prices have had more or less drastic declines Were it not for the gov ernment guaranties the price of foods would now have gone much further toward readjustment than is the case. Australian and Argentine wheat can be delivered in the United States now at about $1.25 bushel, the only limi- tation being the scarcity of tonnage. But that limitation will rapidly be- come less effective. The government sooner or later will have to let wheat seek it's real market level, and will have to pocket the loss involved in it's $2.26 guaranty. As soon as wheat and pork are released to seek their nat ural level all grain and meat prices will break.
 The price of labor is bound up in the price of foods. So far there has been no great effort to liquidate la Dor. In readjustments of this kind the wage level is the last one to de- scend. The big employers shade prof it's and cut dividends first. They lay off hands but continue those on the payroll at the boom wage schedule. But eventually the wage level follows the living cost level down. Wage re- ductions have occurred in some of the big corporation plants and unem- ployment is reported from all centers. Returning soldiers are increasing the competition. The minute that the gov ernment lets go the wheat and pork guaranties foods will come rattling down and wages will follow very shortly thereafter.
 The cost of labor will not, of course, reach pre-war levels. Seven million workers have been killed by the war and ten million have been maimed. An additional six million persons died of influenza. The worlds supply of common and skilled labor has been drastically reduced Special elements complicate the American situation. We have Hteracy test for immigrants that has not yet had chance to op- crate, and organized labor Is now try ing to bar out all immigration. A mill lion aliens are now waiting in the United States to go abroad as soon as military restrictions are lifted. It is doubtful if foreign governments al- low any great exodus from Europe to this country.
 There are offsets, however. With the reduction in production labor there has also been a reduction in demand. The world has at least 12,- O00,O fewer mouths to feed. The |