Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-31
LARGER PRODUCTION MAY
SOLVE THE WAGE PROBLEM
Clothing Manufacturers Find Employees
Willing to Speed Up-Considered One of
the Most Important Needs of the Day.

BY 1. A. FLEMING.
1t is rather encouraging mid all the
| talk Of the necessity of getting down
from war to peace prices, from re-
ports Of determination of labor to re-
sist wage cuts and other plants in
| cident to the defation era of the day,
to find one set of workmen who are
willing to take hold of their share OF
the burdens. not through the clipping
Of wages. but rather through agree
ing to materially increase produc-
tion-a lost art since the close of the
war.
1t was the first step that may ulti-
mately lead to the restoration of
activity in the wholesale clothing
business. taken in Baltimore when
the $500 employees of Henry Some
born & Co. met in convention and
agreed on a plan presented by the
Arm for increased production.
This is taken as the initial move
that will shortly result in the opening
Of the factories of the company
named and others as we'll along the
same line.
No change from day to piece work
ted; rather a proposition for increased
production.
The schedule of this firm was pre-
scented to other employees. and. after
a general discussion. it was admitted
that. while prices would have to be
further shaded. speeding up produc-
ton would materially reduce costs.
The market for wool cloth is very
nervous and uncertain and A re-
sumption Of activities in this line is
not expected for some weeks.
Labor has advanced its pay steadily
greatly deteriorated. AS every inter
est must bear its share in the defia-
ton now under way, and as labor has
steadily declared against a wage cut
1t may be that in speeding up produc-
ton the solution Of this hard problem
may be found.
In this connection the Bache Re-
view, without reference to the action
Of the Sonneborn employees. declares
Probably no other force. if applied
in the highest degree. would have a
greater effect in bringing prices back
Labor has been paid twice as much
for one-third or one-half less work.
The first step to former conditions is
the increase in efficiency of 100 pei
| cent. II it does one-third more work
| for the same money 1t can readily be
be in reducing prices. If this work-in-
| crease should be general"
Security Markets.
The prevailing conditions in the Sc
| curity markets have perhaps never
been quite equaled before. On the
eve of presidential election. in
which Wall street was never more
confident of republican success. we
find the market depressed, not far
last two or three years, save on rail
shares, which are materially higher
than then, on the rate legislation and
| the outlook for good earnings.
There is passing interest In stocks
in that the public. waiting and watch
! ing for the long expected upturn.
| watches the quotations from day to
day and wonders If the turn will
never come. Then, too, the specula-
| tive elem nt must do something, SO 1t
! follows any movement started, up or
| down, ready to turn in a second,
while the room traders have been do
| ing nothing but scalping.
Anxious for Investments.
While the public is showing this
Indifference toward the stock list
there are many evidences that high
grade bonds are wanted, that the
money is available for issues of mil
lions bearing z per cent and higher
rates Of interest: The investment
public seems anxious to place their
funds at the high rates. naturally
believing that interest in common
with every thing else will have to
seek lower levels As a consequence
they want to take advantage OF the
| high rates before they. too. start 20
drop.
The investment pubic has helped in
aid of the foreign export trade
Through purchase Of millions on mil
lions Of foreign loans. America is the
| banker Of a large part OF the world
and foreign trade is needed to absorb
excess production.
Moreover, it has stood back of our own
manufacturers in splendid shape, financ-
| ing big corporations galore: corporations
that do not seem to be able to get
enough of the circulating medium. The
market for commercial paper is a fur
Their evidence of this need, as bankers
may now take their pick Of paper such
as is ra-ely offered to any extent, even
fsome concerns that have recently awaited
themselves Of security f1otations being
largely in the paper market. The ac-
ceptance market. on the other hand. is
said to be slow.
Money Market.
Money continues strong and while
deposits are increasing slowly and
bankers could loan the supply in short
order, the merchants Inquiries are
not so large as they were. there being
no such thing as stock up ware
houses at the present time.
John B. LArner, president Of the
Washington Loan and Trust Company,
in a recent interview made this state
ment:
II have not refused a single Gus
toner who called on us for loans, pro-
yided he had satisfactory collateral
Il could. if l would, loan every cent
have available on real estate and
believe in real estate as q security,
but the realty people want large
margins these days"
Mr. Larner illustrated the manner in
which specific houses had advanced
again and again in prices, with corre-
spending increases in requests for
loans thereon.
or course. there is a great scarcity
Of housing facilities and values have
legftimately gained very materially.
but whether they will not be affected
by the defiation now progressing so
rapidly remains to be seen.
Most Of the local banks are taking
care Of their customers at 8 per cent |;
some have marked loans up to higher
figures.
Banks Have SuHered.
The last few years have been prof
liable ones for the banking frater-
nity. Deposits were large and fully
employed at good rates, but it has
not been as smooth sailing for these
institutions as many think.
Banks make investments. They
must carry certain percentage of
their deposits in cash and their re-
hanks or with their correspondent
members Of the system. Then, too.
thew must have large Investments in
hondo which may be quickly turned