The New York herald., 1921-01-23
ADVERTISEMENT.
This letter is in response to the letter
phich appears to the left.

saving machinery. We cannot deny that the intro
duction of every epoch-maklng piece of labor-sav-
ing machinery seriously inconvenienced and some
what punished large groups Of wageearners and
yet know that Labor could never have enioyed
its present comfort of living and short labor hours
that possible if it had not been for the
introduction of this labor-saving machinery Every
other country has been compelled to fight the false
hut plausible doctrines of economy that have been
advanced to prevent the introduction of labor
saving machinery to greater extent than have
we Our American Labor has been vastly more
constructive than many men give them credit for
And while not defending Organized Labor. I
could cite other examples of the virtue Of Ameri-
can Labor If called upon to do So l mention
this one example, and state that the position of
the merchants who oppose the Thrift and Invest
ment Movement is based on equally false
nomic premises and, while highly plausible. is
still not so plausible justifabe as the oppos-
tion of Labor to tho introduction of labor saving
machinery.
Surely the merchants, unconsciousy prompted
by selfish interests do not want to fall into the
error of supporting n false economic doctrine
that lacks even the plausibility or justification
of things which even Organized Labor has not
fallen to- Here is statement and l
don't see how it can be successfully contradicted
by any amount of argument, viz: The more we
create and the less we consume, the greater will
be accumulation Of wealth. All the labor for
many generations to come can find abundant
ployment along the lines which create permanent
property in the true sense, and. the need and de-
sire for consumption does not have to be stimu-
lated to provide employment.
can neither concur in nor do I here take
exception, to the definition of "fair price" as
given in the tenth paragraph of your letter. My
way Of stating the natural laws which fix
prices is by sayng,-Except under emergency
conditions natural laws fix as minimum price
the cost of production when 1t reaches the con-
sumer in final form, and its maximum price is its
vaue to the consumer regardless of it's price of
production but generally speaking, "fair price"
is that which properly, but not unwarrantedly,
rewards those who produce and distribute and
gives sufficient reward to attract both capital
and labor.
Forced sales, however. entirely disregard natu-
raj laws as to cost of production and moral laws
to fair prices and forced purchases do likewise
in the opposite direction. The man without water
pay any price he may have to for water--and
that brings to this point, viz. that fear that
many of retail merchants failed to console
themselves with another very natural application
of natural laws. When prices We're ascending
they found themselves able to sell their goods at
than fair margin above their cost, and
yet they failed to set aside contingent fund
their books, or Il contingent thought in their
minds that when prices would again descend to
normal they would find themselves victims of the
reaction of an economic law and compelled to
accept some losses, just as they had taken their
profits.
Now, Just to save you the trouble of calling
my attention to the fact that the Treasury's rul-
ings did not adequately provide for this ofsetting
of profits against inevitable losses will admit It,
On the other hand. those of us who advocate
Thrift do not attempt to defend the present
Revenue Law the Treasury's rulings-and we
think the law was most unthrifty one.
Referring to your quotation of my statements
in the fourteenth paragraph of your letter,
wish to say that had no intention of setting up
n mere igment in the minds Of the people that
was without substance I stand ready to do my
further ACKNOWLEDGEMENTS 1t would be too long
a matter to suggest and discuss plans here by
letter The financial trade conditions have been
turned many times by cooperation and determi-
nation but I am unable at this moment to refer
to any concrete example in the mercantile trades;
but any OF the frequent examples in the financial
world are equally applicable in the mercantile
world Perhaps the most outstanding one in the
financial world. and from which you might bor-
row an example was the way the Barring Brothers
Crisis was met and solved in 1890 by the London
banking houses. led by officials of the Bank of
England. / regret that cannot at this moment
cite you TO some book which will detail this to
you but will endeavor to make search Of my
library this evening and tell you definitely where
you can read up about It,.
Now 7 hope have convinced you that we do
not want to doctor this patient who Is suffering
from over-eatng by further cedfeeding. He
will soon buy and eat more IL you do not resort
to forced-feeding while he is III. also hope this
letter will convert you to the Thrift Plan II it