Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-01
PERTINENT COMMENT ON THE
DAYS BUSINESS PROBLEMS
No Conditions Here Similar to Those in
Japan-Scarcity Of Capital and Limited
Production Serious Features:

danger. but the manufacturing indus
tries Of this country are generally in
stronger position as regards the re-
latfon OF assets to liabilities than they
have been in the past.
Conditions the world over are not
such as TO suggest state Of over
production in any Of the essential in
dustries in the near future. The con-
spicuous feature of the situation is
the great backed-up demand for con
struction work. and there la no record
OF panic and industrial depression in
the face of such a prospect The needs
Tor houses. for railroad equipment and
! Tor construction work Of many kinds
IN our own country. not to speak OF
me needs OF other countries. are i'm
perativc.
Problems and PerfIs.
There are problems and perils more
serious even than those involved in a
business reaction The state Of the
| public mind toward the present in.
! dustrfal organization, the prevailing
unrest in industry, the shortage OF
capital for making needed improve.
mehts IN industry and transportation
the detachment Of wages and prices
from the gold standard and the grow.
| ing confusion resulting therefrom
are all matters to give serious CON
Germ. The modern industrial orRani-
cation Is a very complicated one. II
must De so In order to supply the
wants Of the present population. at
the present standard Of living. The
Iact Is that the necessary orEaniza
ton Is so complicated that few peo.
pie comprehend it or understand the
economic laws which govern it
Hence there is endless interference
win It's normal workings. to the in
jury OF all. An application OF the
fundamental principles upon which
| society has made all its progress in
the past. Dracticing industry and
! tnrift. would rapidly improve con.
ditfons There is nothing in the
financial or industrial situation which
increased production. but society vii
| not make success Of trying to di.
vide more than 1t produces or Eair
! ANYTHING by breaking down the in.
dustrial organization. The latter Is
subject to change. but nobody will
duce production.
Wage and Price Advances.
The cost-of-living situation is not
has delayed the coming of fresh food
supplies and exhausted storage sup
plies. causing, advances which with
normal conditions might not have oc-
Cured. The tie-up Of transportation
mas had a similar influence, and the
tSHuShSy ~ PRICES HdS stimulated the
demands for wage increases. More
over. the general unsettlement OF
wages and prices has reached the
| point where it Is no longer related
| in the public mind to the war, or con.
sidered as something temporary: The
war was ended a year and a hall
ago; there was some expectation then
Of a fall of prices. but it has not been
realized. All Of the old standards and
relationships are lost. and a habit OF
getting what you can has been de-
veloped. Wages in some lines have
not kept pace with the cost Of living
but in other lines have more than
done 80. and workers in the latter in
dustries are as eager for more as
those in the former. Those who re-
ceive the early advances lose the
value Of them as other advances are
made. and now seek to recover the
gains they have lost. So wages are
lacked up first in one quarter and
then in another. each successful de-
mand suggesting others.