The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-10-19
|Blll
! 70
ECONOMICS
,ront,nusd IIom Page one.)

(Continued kSvm - 49,
. -, 49, % handle CONNER
80, 49, based on automobile
- ..eticss, the business began TO
!. : !, Z nose sections and else
(unss - fhe restriction was even
neI ~ banks in this vicinity
~ M previously been most
d their, loans.
~ sAuto' Business.
\. natter Of fact, the restric-
q y rredit was bound to hurt the
s-ssile business more than
..ss cthar lines because Of the pc
~, ~ in which it 10 financed.
- aaaler must pay q deposit
~ IN orders his cars and must
~ rest Of the bill when he
L.s ssch machine from the freight
~. M he has not always sold
rachines for cash and must
-. m payment in installments
r. Ia purchaser. When he went
Z AZ bank, therefore. and said
=. - ssrchasers were sound finan-
NH ana that it was sure payment,
isnkers on the other hand
..,.sd With him as to the sound.
sof The transaction but pointed
ss hat the purchaser OF the car
sM soon come along to borrow
- money wherewith to pay the
~ So borrowing money for
mobiles was reduced to a mini
er and as a consequence the
s,sfacturers found the dealers re-
/ Srtant to buy. Similarly, used
~ have been accommodating In
sacapt lots, and in some cases have
~ better bargains than new
IN which also has retarded pur-
ehases Of new machines.
MEANWHILE the automobile con-
ans have taken advantage OF their
dluations to reduce their labor
s9erhead. They have laid on thou
snds Of men. The figures are not
ey,ilsble, but often men are given
fro weeks vacation and when
fhey come back are told they can
Il have the same job, but others
Al nay less. One concern had
Ven employing q men to perform
/ certain operation that was finish
q daily at 1 p. m. 1t reduced the
| number OF men to 16 and is get
Adns the work done by 1880. Econ.
nies Of this sort are being prac-
vced both in the factories and on
Ne clerical side. The automobile
eompanies have been in the habi'
Il hiring practically anybody the.
could get. As result they hav.
scquired inefficient or unskillet
heip. One conspicuous factory Gu
down the number of its workers b!
u per cent and the production
promptly jumped from 30 to ~
orr per day.
Hiring Fewer Men.
Il isn't being generally admitted
Mt the man ~facturers of automo
bilss are actually reducing thei
labor cost either by eliminating in
slciency or hiring a smaller mum
blf d men. Not much pessimisn
d heard. The manufacturers sa,
they are assured of the money t
nance their winters manufactur
Ing program. In only one case i
there any rumor of a receivershi
aud the banks are said to be read
toprevsnt that company from goin
under.
The solution seems to be found II
lducing the cost Of labor or get
lmg more production out Of tn
eane number of workers. One con
corn found that $4,000 men were no
tufnins out as many cars as 1000
men did before the war. 1t WASH
eaurely due to laxity or idlenes
VT 10 the creeping in of unskille
workers who retard the car max
ns process. One man can slo'
Up 50.
Greater Economy.
Inc era ahead of the automobil
Oullnes sis one Of greater econom
aao efficiency. If the cost of Twin
can be reduced and process 9
necessary commodities continue
urop. the cut in labor prices vii
not be felt. So far as Detroit
concerned, its economic readjust
ment seems to be, relatively SPEAK
lns' without much pain. 1t could b
worse The working men have a
.aea That change of ADMINISTERS
'ua Will restore their former wag
STATUS and bring more jobs. Br
persons outside of politics are NJ
preaching that doctrine.