Arizona republican., 1921-08-21
THE ECONOMIC SITUATION
BY OR. FRANK CRANE Gcopyright 1921. by Frank Crans)

me cause or the 1nQlStf1al depression IS pldln.
 People are not buying It is what IS called buyers strike.
 Why don't, or won't, they buy? Because goods cost too much Prices too high at the retailers.
 Why? Because he had to pay the wholesaler and the producer high prices.
 And why did the producers (incuding farmers, manufacturers and the ike charge such high prices?
 For the same reason anybody fixes prices at all because he get them, people will pay them. In the sense of charging all customers willing to pay, about every person in business is a profiteer:
 And why were customers willing to pay such exorbtant prices?
 Because they wanted the goods, and they had plenty of money
 And why was there so much money?
 Because the nation was at war. Which means en- gagged upon programme of colossal waste and ex- travagance (there never was without this) and going in debt mile minute and issuing bonds right and left.
 Why did not this prosperity continue?
 Because the time came Gas it always comes) when men have to Pay Up, just the day comes when men have to die Having to Pay Up they began suddenly to 3at sena gd a,u e monkey-wrench into the machinery
 How shall we cure the hard times?
 Simply by backing up. The downward path we gayly ran in extravaganza we must painfully retrace with tears.
 The principal item in the cost of production is Labor See for instance the recent arrangement of the British coal mining industry where was agreed that of the profits 83 per cent is to to Labor and IF to Capital
 You are never going to get lower prices until Labor accepts lower wages
 The Labor Unions are opposed to this because the Cost of Living has not down.
 But it will not and not come down until wages down, for high wages what makes goods cost so much.
 When workers refuse to take lower wages by striking they will not get the high wages they want but will strike themselves out of job, for the pro- ducers will simply quit business They doing so now. Hence much unemployment
 Some time ago the newspapers reported what had been done at Dunbar, Pa. The American Manganese Company there found it could not go on paying high war wages without financial ruin. They plainly stated that they would have to cut wages or shut up shop The workers thereupon sensbly proposed reduction of 40 per cent in wages; the company immediately re duced the of those employees who it's tenants and the local shopkeepers quickly followed by cutting down the prices they charged for food and supplies | The result is renewed health and production.
 What took place in Dunbar shows small scale what will have to take place all over the nation, and the world if to recover from our economic debauch and dreadful morning after
 Intelligent Labor leaders ought to see this and shrewdy cooperate with owners to make the readust ment as healthy just, and smooth as possible.
 That is what the leaders of Labor in Great Britain and in many respects the British Labor Party IS the most intelligent group representing wage-earners In l the world, have been trying to do. I The whole matter is in no sense a case of war or of class against class, but is general, natural, economic situation where all should cooperate to help along.