The Washington times., 1919-06-28

Leading bankers, merchants, ana IN
surance men throughout the country
are unqualified in their statement that
there will be no early decline in
building and construction costs. In
statements prepared at the instance
OF Director General Roger w. Babson,
Of the Department OF Labor, these
men declare with certainty that there
will be no sudden decline Of prices
following the signing of the treaty Of
peace other than the elimination of
war prices, which were made neces-
sary to stimulate production in high
cost plants.
J. Ogden Armour says that the
greatest danger to our economic struc-
ture today arises from the failure of
many to recognize a new and higher
level Of prices, based on permanently
increased cost Of labor and high taxa
ton.
Those who postpone building or
buying in the hope of materially lower
prices are specializing in the future
misfortune OF the nation" he says,
for falling prices, when reaching the
point where profit is eliminated, mean
panic, depression, unemployment, and
other troubles.
SITUATION
warrants any one in expecting mate
rally lower costs of commodities in
general, and building in particular
Wages will not be less for several
fundamental reasons, viz:
Il. The practical stoppage Of immi-
grafton since 1914, depriving America
Of the several million workers who
would normally have come to our
shores.
80. The retention by the nations
military and naval establishments OF
nearly 100000 workers, which may
continue for an indefinite period.
SO. The creation of new industries,
such as shipbUilding, and manufac-
ture of chemicals and dyes, requiring
hundreds Of thousands Of workers
"A. The urgent demand for building
and construction Of every class, due to
their having been forcibly held back
for several years.
'5. The shortage of the worlds food
supply.
&c. The proportionately higher levels
Of commodity prices existing prac-
tically all over Europe.
Face Labor Shortage.
"on the one hand, then, we are fac
ing a serious shortage of labor as
soon as we approach normal indus
there is confronting US a tremendous
Unsatisfied demand for many necessr-
ties which it was difficult or impos-
sible to obtain during the war. A new
level Of prices has been established
from which there can be no material
recession until inventive genius sue
ceeds in correspondence increasing
labor's productive capacity by me-
chanical means"
James B. Forgan. president Of the
First National Bank of Chicago, as
serts:
while it is my belief that the gen
eral trenn Of prices during the next
decade may be downward, I do not an
ticipate any sudden violent tumble IN
the near future beyond the elimina-
ton Of war prices made necessary to
stimulate production in high-cost
plants. We cannot eat our. cake and
have it We cannot Immediately
have low-priced products with high
cost labor.
AT no time was honest labor more
indispensable than during the war,
and during that period the average
weekly wage Of all workers was
greatly advanced Out of the war has
come a strong realignation OF the
value Of labor to civilization, and we
must accustom ourselves to the evil
dent fact that a permanently higher
scale Of wages or compensation has
been established for the worlds
worker. both skilled and unskiIled."
Maj. Cen George W. GoethaIs ex-
pressed the view that we can return
TO neither pre-war prices nor pre-War
conditions.
Every thoughtful employer of Ia
Dor" he says, realizes that the
wage Garner is entitled to propor-
tionstely more Of the comforts and
conveniences Of life than fell to his
share before the war. Every thought
full buyer should realize that the
price he pays for goods must be in
proportion TO the increased cost of 4