New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-07-20
By NJ Mkkescn, PhD editor of The Architectural Record
Associate Director of the Economies Division
OF Public Works and Construction Development in the
Information and Education Service of the Depart
ment of Labor. Washington. D. c.

come taxes and other taxes. No sub
stantial decline in taxes may be ex-
pected in the next few years except
that as profits or income Of any bust
ness decline Its taxes likewise will de-
cline. Even If Federal taxation should
decrease materially it is altogether
likely that this decrease will be offset
by an increase in state and local taxa
ton. Hence no considerable reduction
IN the cost Of production is to be ex-
pected as result of decreasing taxa
ton. <'
5. A Fair Return on tho Capital and
Labor Of the Owner
. 1t is not. to be expected that in tho
future business men generally will be
content or be compelled to accent less
than a fair return on their capital in
vested and their labor applied. There
will, Of course, be some exceptions. In
view OF the strong expectation enter
tanned in many quarters that food
products will decrease in price it
should not be forgotten that a large
part Of the cost of production of farm
products will decrease in price it
OF the farmer and his help. hereto
fore very inadequately paid. During
the war the farmer has really obtained
fa1r wages for his labor and will not
easily be compelled to take less in the
future.
6. Excess Profits
Excess profits will no doubt dinin-
lsh and some decrease in prices will
result. Some industries during the
war enjoyed huge profits and cannot
nope to continue selling their prod
ucts at war prices. Competition or
government interference would bring
down their profits even If no immedi-
ate voluntary reduction is made. Tho
copper, iron and steel industries have
made substantial voluntary reduction.
Other industries will doubtless follow
suit, but excess profits are by no means
general condition in all industries,
producing building materials. r.
should be added here that large part
OF what many consider excess profits
OF farmers is only a fair wage for
farm labor, as pointed out in the pre-
ceding paragraph, and no great drop in
farm prices of foodstuffs can be ex-
pected for this reason.
Part of the effect of the decreased
prices established by business men bv
means Of foregoing further excess
pronts Will be lost by the consequent
decline in Federal revenue from excess
profits taxes. This decline in revenue
will have to be made good by heavier
taxes Of other kinds, which will tend to
increase the costs Of production.
No Marked Decline To Be Expected
In brief we must conclude from tho
foregoing analysis that prices will not
fall erially-practically not At iii
except on the result Of decline in ex-
cess profits, In so far as prices Of
certain articles, such as iron. steel and
copper, decrease by removal of excess
profits as an item in their compost
ton, the price of certain other COM
modities into which these articles
enter as raw material will fall. This.
IN turn, will affect the cost Of living
, ana, in 2 roundabout way. possibly
all the repercussions of such sacri-
fee Of excess profits, ono may say the
final results will not be marked, since
the cause Is relatively not very i'm
portant.
In the foregoing discussion onA i'm