New-York tribune., 1920-05-01
City Bank Attacks
Labor Leaders View
OF Production Need
Calls James III. Maurer's Doc
trine Typical of Bars That
Obstruct Worlds Recov-
cry From War Conditions

The National City Bank, in it's May
circular, reprints an article by James
H. Maurer, president of the Pennsyl-
vanla State Federation of Labor, in
which the leader decries the need Of
greater production and asserts what is
needed is greater consumption. AL
though admitting that Maurer's at
htude does not represent the official
idea Of the A. f. of L., as represented
by Samuel Gompers, the bank analyses
the assertions and criticizes them in
great detail.
"The quoted article the circular
says, "is typical of the agitation which
IS deranging industry, curtailng pro-
duction, raising the cost of living and
obstructing the worlds recovery from
the losses of the war. The author of
1T plainly has no conception of the
throughout modern industrial society.
The owners of industries and man
ayers OF BUSINESS are as much in
tcrested in the widespread distribu-
tlon and consumption of products as
Mr.. Maurer can be. There is no use
tor capital except in supplying the
wants of the populations; no need for
lnvestWents or chance for profits un-
less the people arc able to buy the
products. If profits are large, the
amount of new capital available for
vestments will be large, the demand
for labor will increase, the expansion
OF production will be rapid, and more
goods Will come on the market for dis
tribution.
Where Maurer Is Right
SC ~,
whether he grasps the full signifcancc
of his assumption or not, and that is
that the true measure of the dstrbu-
ton or wealth is in the distribution
OF consumablc products, rather than fl,
the ownership of productive property.
The value of the latter is in the foods
produced and they must be followed
INTO consumption to determine who
derives the benefits. When this is
zone, the fallacy of current theories
that : or per cent of the population
derive most of the benefits from the
couhtrys existing wealth is clearly
apparent The employment of the in
ous'ries IS IN producing goods for TIE
masses of the people, and there is
pound to be such a continual read
Justment OF wages and prices as will
enable the consuming public to take
the current production off the market.
otnerwlSc there would be an accumu-
lalion and glut, investments would be-
come Improbable and further accumu-
latlons of capital useless.
The proportion of the countrv's in
dustrial product that is consumed bv
inc people included in what Mr.. Mau-
ref calls the capitalist class and all
thelr iackeys is Very small part of
the total. The number of personal
incomes of $4,000 per year and over
IN this country in 1917 was reported
py the Commissioner Of Internal Rev
enue at 161 1886, and the number of
9o'oVo and over at 432,662. A large
part OF the larger incomes is not ex-
Pehdlng upon consumption, but goes
back INTO the industries for their de-
velopmcnt. But if the total of all per
sonal incomes Of $4,000 and over was
distributed to 110,000000 people the
result would be only $32 to each. while
II the total of all incomes Of $4,000
and over were divided the result would
be only $44 each.
Accomplish the Innovations
mo thinking person will dismiss the
entire class of proprietors and highly
pald experts as contributing nothing
to production. Most Of them have
made their own way and come to the
front through their qualities Of lead
'ership and abilities to accomplish re-
suits. They have accomplished the in
novatlons which have made the pro-
ductiVe power of the American work.
man double that of any other work
man in the world
"f Mr.. Maurer's contention is COR
rect, that the present owners and man
ayers OF industry are superfiuor., why
not proceed to eliminate them by the
old-fashioned process of competition?
Any service that is unneeded can be
dispensed with without revolution
There are 100000 railway employees
in fhe United States, whose incomes
average over $500 per year, and il
they were to save on an average $50
per year each they could buy control
of the New York Central system in
one year, of Baltimore & Ohio and
Erie together in less time, and of all
the through lines between Chicago and
New York within five years at present
market prices for the stocks. We
offer the suggestion as a substitute for
the Plumb plan, and it can be adapted
for application to the other INDUSTRIES"
After having discussed Americas
large exports, Maurer said: "Increase
production? Produce more commodi-
ties? What for? Aren't the workers
now producing billions of dollars worth
more than their wages will buy back
more than they are permitted to con-
sumo? Is increased production the
solution for the problem confronting
the workers? The problem for the
worker is not increased production, but
increased consumption. Not how to
produce more, but how to consume
more"