Norwich bulletin., 1921-04-23

We have proof of this proposition now in the effects of the fan of farm products but the effects would be the same if, in- . stead of the loss of puchssirg power to ' the farmers, there had been. to begin Q with, a great loss of purchasing power to the ge-earners. No matter where the loss of purchasing power begins, it is ' quickly communicated, from one group to the others until, if not enumerated, it extends to all
 There are always people imagining that z a conspiracy exists among the ''big inter ests" against the public welfare, but the big interests. like the railways. are pros porous only when there is general rros- perity This Is demonstrated so often that it is difficult to see how everybody can think otherwise. J'
 The owners of great industries cannot afford to disturb the industrial equilibri-l lum. Anything like a general conliiracy to reduce wages would curtail thu pur- chasing power of the great body oA con- sumers, reduce the earnings of all indus tries and shrink the value of every kind of property. Individual employers may like to hire labor as cheaply as possible,
 but it is a very short-sghted employer
 who will disturb a state of prosperity by efforts to reduce wages, and a concerted
 effort under such circumstances never occurs.
 CdnuOt De kGncTdl SIaIe OI | activity in the industries unless their ! products are being taken off the markets |
 and consumed. There must be free, full ,
 circulation of goods and that can only be | when the mass of the people are buying | freely, and the compensation of workers |
 and prices of products in the principal 1
 industries are adjusted fairly to each other. No class can gain anything by
 throwing the organization out of balance, | hut fna affA fa s,,ha I tie So many knots in the channels of cir
 culation that the exchanges are stopped. | Industry and trade are strangled by the
 efforts of organizations to promote speciall 1 interests.
 The industrial organization is very much like a great machine which will not
 work unless all the parts are in order and in proper relations to each other. If your automobile goes back on you. you
 know that something is wrong and you must ind what it is and adjust it before
 you can hope to go on. It does no good
 to swear at it; you cannot force it you must fix it. It works only when certain
 conditions are complied with, and that is just as true of the industrial organization. Furthermore, this law of the euuilib- rum is the final arbiter of the relations between capital and labor. There is normal, proper. balance between the
 amount of current production in the form -lof goods for direct consumption and the amount of in the form of equipment for producing consumable goods, the latter being capital There must be a constant , accumulation of new capital to provide : for industrial progress. Think of all the
 new ideas for enlarging the output of the 2 industries and improving the living condi- tions of the people that are waiting upon supplies of capital! Look a tthe condi- tion of the railways and at housing condi-
 tions today. Unless a proper proportion Of current production is converted into capital, the industries will not be kept up , to the needs of a growing population, the cost of living will inc. ease, ana the pur- chasing power of wages will fall Wage
 increases, on the whole, never can make
 up for declining efficiency in production, Y because all the wage increases must be passed on to consumers.
 al On the other hand, if too much of cur i rent production is reserved for capital in- z vestments, the productive equipment of e the country will get ahead of the consum- f ing power of the population, further in- e yestments will be unprofitRble and not be l. made. Competition will be fierce under l. such a condition and compel larger dis It tribution for current consumption. j. Our industrial organization is so highly
 organized that it is beyond the under. > standing of the common man. He doesn't d see the benefits that he derives from it 'e or understand his obligations under it It The whole complicated system, under IS which men devote their lives to acquirins r. skill in 8 particular occupation and rely e. upon exchang Eg services with others, i: ot depsrdent upon the maintenance of fail l. relations. Nor l..any people in Englant T; arc able to mine coal, but the industre, le of the country are all dependent upon coa l. ard the miners have shut down the mine, j. ard theaten to keep them closed until tn, .- community accedes to their terms. So
 cfety cannot endure under such condi % tions. If people cannot work together il re specialized industry, and rely upon eacl K o-Aei, we will have to abandon moderl al Industrial methods anG 20 back to tn r. hand industries and the conditions of If to in ;hina. That i1 what they are doin He in Russia.
 m Unless the public is willing to pay fo H. the services of the railways at a rat ne which will allow the capital invested i 10 them to make a return fairly comparabl " to that obtained in other Investments ne' IL IL capital for their improvement will not b IL obtainable, and the government will hay or to take them over. This, however, will b ve only shifting the problem, for the cost C .. operating them will be greater under tn u uoI government than under private ownershil o u The government will have to resort eo taxation, and the depletion of capital b III m taxation will interfere with industri: pIosI Iess.
 'se We face the same problem in tf = housing situation. Legislation which di
 courages private investment in house in makes the situation more acute, and alf the government is forced into house bull, he ing the burden will fall upon the taxpa, 10 CT, again with the effect of depicting u an supply of capital available for industr ce. and of discouraging the ambition to a iis' cumulate capital
 The same effect follows upon all u
 efforts to burden and handicap the enc
 geIfc and successful man. If he is r
 str:o:ed mad 6opriytd of the capital f
 which he struggles and with which - works, he will give up and his leadersh
 vii be lost. If society is leveled dov roa to the least effective members the pot no. tion of even this class will be far wor bat than It R now.
 The great problem of the time is si+- make clear the mutuality of intere Sb. which exists throughout the social orga .ed lzation, and satisfy the common man tn ms