Evening star., 1921-05-08
by SHELDON :. CLINE.

~ faiuinS program Tor
"normalcy' and the de-
termination of his admin
istra'lon to get business under
way again on sound and en-
during basis. plans are under con-
sideration for a nationwide cam
paisn to teach the American peo-
pie the answer to the query:
When is dollar not a dolIarc
And involved in this is the
necessity of driving home the
answers to two other questions:
First-What is a living wageo
Second-What is reasonable
profit"
1t will be emphasized that $40 a
day is not living wage. if. as the
result of such a scale. the wage
Garner has work but two days a
week
And stress will be put upon the
fact that enhancement of 100 per
cent in price does not constitute
a profit. reasonable or otherwise,
if. as result of such a margin, it
is impossible to move goods from
warehouses and shelves into the
hands of consumers.
1t will he sought to convince the
wasc-carnerS that an excessive
wage is bound to result in part
time work. and that the reduced
number of dollars earned under
such a scale will have their pur-
chasing power reduced by the
necessarily higher scale of prices.
In impressing the worker with
the advantage of full-time work
at lower wage over part time
at an artiticially high wage. wheat
might well be taken as an exam
pie. With wages at $40 day
and half time for the worker, and
wheat at 81 bushel. weeks
wages would buy fifteen bushels
of wheat. Reducing both 80 per
cent. a full weeks work at $3.50
a day would buy thirty bushels
Of wheat at $1.50 a bushel. Stated
in another way, by accepting
30 per cent cut anu getting iuii-
time work. the workers money
wage would be increased so per
cent-from $40 TO $45 week
but his actual earnings-ex
pressed in terms of the necessities
and comforts of life-would be
increased 100 per cent-from
fifteen bushels of wheat to thirty
bushels.
x = X x
All this. Of course. is academic
and will make little impression
upon the worker unless 1t is DEM
onstrated to him in a conclusive
manner that a reduction in wages
and a corresponding reduction in
the general price level will mean
a general resumption Of industry
and full-time employment. And
before there is any Likelihood that
the worker will willingly accept
reduced money wage he must be
thoroughly convinced that he is
not being asked to accept a low
cred standard of living.
Above all, there must me unQues-
toned good faith in the PROPOSE
ton that the entire movement is
not an effort to make the wage
Garner "the goat" Of the economic
situation The wage-earner will
be convinced of this good faith
only when he sees on the part of
manufacturers. distributors and
merchants more evidence than has
vet been manifested of a willing
ness to sacrifice profit margins.
That is why, in the campaign
of education. it will be aimed to
reach producers. manufacturers.
distributors and merchants as well
as wage-workers. They must be
impressed with answers to the
questions: What is reasonable
profit" and when is a profit not
a profit:"
Perhaps it may seem like carry
ing Goals to Newcastle to take les
sons on the theory of profits to
the traders OF America; but il
American traders ever learned the
theory of profits rightly many of
them apparently forgot it in the
flush times of war, and have not
since remembered. In the war
davs of commodities scarcity and
soaring prices d trader had only
to invest a thousand dollars IN
goods, mark the price up to two
thousand, and, presto, he had earn
cd hundred per cent profit. But
nr;cine a Thousand dollars worth
Goods at two thousand doesn't
earn a hundred per cent or any
other profit if it is impossible to sell
the goods at the higher price.