New-York tribune., 1919-06-30

treme English liberalism has made him
an amateur economist, wonders how it
can be that everybody is rich though the
world is bankrupt. He sees that
Prosperity has increased; there is no
doubt of it. Our luxury trades have
trebed their dividends. Our theatres are
crammcd Outside the doors of our res
taurants well-dressed men and women wait
in queues. Christies' salesrooms are
thronged with millionaires. Pictures for
which the artist may have received $50 sell
for 10000. The difficulty seems to be
how to git rid of the money. Customers
for thousand guinea motor cars put down
their names and wait in patience AS rail
way fares increase the travelling mania
grows. The cost of living is doubled and
everybody is having the time of his life.
How is it all done? A large percentage Of
Europe's wealth has been utterly destroyed.
Its lands laid waste. Its energies sapped.
Its future mortgaged up to the hilt Ten
millions of it's most efficient workers lie
dead in their graves. Another ten millions,
manned and useless, live, burden to their
country. It's trade is dsorganized, its
currency debased. Above the ruin and
destruction, against the shadow of advanc-
ing universal bankruptcy, prosperity, bla-
tant and loud-voiced, proclaims its victory
balls and its jazz dances. How is it done?
Let me quote a passage from Carlyle's
French Revolution"
All that Carlyle said was that some
body ultimately paid, leaving the riddle
as it was. The question is: How is it
done? What is it people are spending?
To say they are spending the worlds
accumulated capital does not answer the
question. Whatever they spend, they
exchange it for tangible things which
they Immediately consume. Therefore,
at bottom, the phenomenon is one of con-
sumption.
How can people find so much to con-
sumo in a bankrupt world?
How is it done?
And if it can be done at all, why do
the prophets of economic evil say it can
not continue to be done?
The explanation is simple when you
face it.
The world is consuming the birthright
OF the new generation. The human race
is not providing for its own increase.
A nation, or the human society entire,
is but very large family. To increase,
to live dynamically and multiply, it must
have large power of excess production.
The excess is required for the progeny
to give it birth, to feed, clothe, house,
rear and educate it through a long
period of economic helplessness, and, fin
ally, to put into it's hands the tools which
are its birthright.
One of the functions of capitalism
perhaps its single most important func-
tion-is to anticipate the wants of the
future. The annual human increase finds
itself expected. Houses, workshops,
tools, railroads and -go-rounds
have been most thoughtfully provided.
That is the work Of capitalism
The incentive is profit.
In war that vital function of capital
ism is deranged Partly induced by
greater profits and partly conscripted by
taxation, capital is diverted from the
future to the present. 1t stops anticipat-
ing the wants of society's increase and is
employed in the immediate business Of
Sc sccicty's preservation.
New York City is short Of houses be-
cause the capital that would normally
have added thousands of units each year
TO this city's housing facilities went to
buy Liberty bonds and pay war taxes
The government wanted guns and
ships and munitions and great quaint
ties Of food for the sustenance of an
army; and to stimulate the production
Of these things it paid very high wages
70 labor and guaranteed the farmer a
high price for wheat. SO it happened
that the equivalent Of many peace-time
houses was recklcssly consumed between
1he army and the people. Nothing was
saved for posterity.
Suddenly the war ends, but the re-
straining function Of capitalism cannot
be restored at once.
Control Of the situation has passed to
the people.
Through high wages they are able
to command almost Che total product of
labor; and being able to command It,
they consume it. That is only human.
Generally in the world to-day society's
power Of excess production in employed
10 satisfy Immediate wants to an abnor-
NAL degree, and the wants Of the future
ere in corresponding measure neglected.
That is Why 70 many Bolshevist people
can subsist without working, and why