The sun., 1919-01-18
II Is in the Power OF President VIII
con to Cut the Cost OF Living.

tOH W Sut INC Sost VI LhNink.
FRANK MORRISON, secretary of the
American Federation of Labor, tells
the Immigration Committee of the
House of Representatives that with
the rehabilitation of the army I'VE
are going to have bread lines in every
industrial centre" That depends.
Rehabilitation itself need give no
shock whatever to SO vast an indus
trial field as ours. For one thing, the
returning troops are not coming upon
our labor markets in tidal waves ::
they are trlckling in thousands of diff
ferent rivulcts into thousands of diff
ferent places. This will be the way
for long time. For another thing,
there Is n job. generally speaking,
waiting for every able bodied soldier
who had job before he went into
his country's service. The mill or the
factory, the trading house or the
hank, the printing plant or whatever
1t may be, is glad enough and proud
enough to take care of its returned
soldiers-provided the mill, the fac
tory or whatever it may be can itself
keep on doing business.
There is the whole question. II the
steel mills don't sell their product be-
cause consumers can't pay the prices
asked for steel, the steel mills cannot
give employment to the returning sol
diers; they cannot continue the en-
ployment of those now on the payrolls.
The same thing is true of the copper
mines, the textile works-everything.
In other words, TO undertake 10 con-
rinue In times of peace the abnormal
Industrial, commercial and financial
conditions of war times is folly it is
an impossibility.
Mr.. MORRISON and the other officers
ot the American Federation of Labor
SAY at the same time that there must
lie no wage changes that will reduce
american standards Of living. We
ahlnk we know what they have in
mind. II we do, we agree with them
as every thinking man must.
A dollar can be truly measured only
by what 1t will do. A mans wage
can be truly measured only by what
his days labor can be converted into
at present as compared with some
other time. If wage Of 5000 a day
will not exchange for a man and his
family into as much and as good food
clothing. fuel and rent as his wage OF
$500 a day formerly would, the $6Ot
s. lower pay than the $500 was. Or
The other hand, il usually there canno
lie reduction In commodity prices
svhen the dollar marks representa-;
wages have been multiplied and multi
piled, thus intensifying cost of pro
huction, II the pumping up first of on,
and then of the other cannot cease
without the momentary injury of on,
or the other, then capital must TAX,
the first step. AS rule It does. The
mill, the factory. or whatever tn,
plant, though at the penalty OF tn,
elimination Of profits, must put dowI
It's prices, 50 that the economic read
justment may begin.
1t Is idle to say that the mill. III,
factory, or whatever the plant, canno
sacrifice Its profit without sacrificing
its existence. or course 1t can't IL tn,
thing goes on. But It will sacrifice It
profit and It will sacrifice its existenc
II It does no business at all. 1t mus
meet the consuming public, therefore
by temporary sacrifice or quit 70
good and all.
The wise merchant who cannot sci
his goods does not hesitate to SLASH
his prices to the point where hi
shelves will be cleared. To do s,
may mean severe loss; not to d,
so. with his capital tied up, his or
ganization deadlocked. his credit de
caytng, means death. All industr,
and all business will make this sac
rifice to get the wheels started again
though at the risk, frequently expe
rienced IN the past, of liquidation
panic.
But by the very fortune Of war /
now happens that while our manu-
featuring industries cut prices +
tind a responsive market for norma
business. concurrently the public
cost Of living can he brought down
brought down heavily, by still anothe
means. 1t is in the power Of tn
President OF the United States to d
this thing In a way as simple a. /
Will be effective. For the genera
public the high cost Of living reflect
chiefly the cost of food. In thes
particular days the basis of foo
prices is wheat.
Under contract with the America,