New-York tribune., 1921-01-23
ADVERTISEMENT
This letter is in response to the letter
,Uhich appears to the left.

k>~SSAHAS
ton Of this labor-saving machinery. Every
other country has been compelled to fight the
false but 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 Or.
ganized Labor, I could cite other examples of
the virtue of American Labor if called upon to
DO So mention this one example. and state
that the position Of the merchants who OPPOSE
the Thrift and Investment Movement Is based
on equally false economic premises, and, while
highly plausible, is still not so plausible or iust
liable as the opposition Of Labor to the intro
ductIon OF labor-saving machinery
Surely the merchants unconsciouslv nromnt.
ed BY selfish interests, do not want to fall into
the error Of supporting a false economic doctrine
that lacks even the plausibility or justification
OF things which even Organized Labor has not
fallen error to. Here is statement and
don't see how it can be successfully contrad;cted
by any amount Of argument, viz: The more we
create and the less we consume, the greater
VIII De our accumulation Of wealth. All the
labor for many generations to come can find
abundant employment along the lines which
create permanent property in the true sense.
and the need and desire for consumnt;on do
not have to be stimulated to provide employ
ment.
can neither concur in, nor do 1 here take
exception, to the definition of "fair price" as
given in the tenth paragraph of vour Ie.tsr
MY own way of stating the natural laws which
hx prices is by saying-Except under emergency
conditions natural laws fix as minimum nr;ce
the cost Of production when it reaches the con-
sumer in final form, and its maximum price is ;ts
value to the consumer regardless of =. r~;o. 30
production; but, generally speaking, "fair
price" is that which properly, but not unwar-
fantedly rewards those who produce and dis
tribute and gives sufficient reward to attract
both capital and labor.
forced sales, however, entirely disregard
natural laws as to cost of production. and moral
laws as to fair prices, and forced purchases do
likewise in the opposite direction. The man
without water, sufficient water. stranded .,
the desert, will pay any price he NAV have to
Tor water-and that brings me to this point.
viz: that fear that many of our retail noer-
chants failed to console themselves with an
other very natural application of natural laws
When prices were ascending they found them
serves able to sell their goods at more than a
TAR margin above their cost, and yet thew not
only failed to set aside contingent fund on
their books, or a contingent thought in their
minds that when prices would again descend
10 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 Treasurv,s r,,l
lngs did not adequately provide for this off
setting of profits against inevitable losses. will
ADMIT 1t. On the other hand, those of US who
advocate Thrift do not attempt to defend the
present Revenue Law or the Treasury's rulings
and we think the law was most unthriftv
Referrlng to your quotation of my statements
IN the fourteenth paragraph of your letter,
wish to say that had no intention Of setting M
a mere fgment in the minds Of the people that
was without substance. l stand ready to do nv
share toward any movement which will arrest
further demoralization--but it 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
determination, but I am unable at this moment
to refer to any concrete example in the naercan-
tile trades; but any of the frequent examples
IN the financial world equally applicable in
the mercantile world. Perhaps the most out
standing one in the financial world, and from
which you might borrow an example, was the
way the Barring Brothers Crisis was net and
solved in 1890 by the. London banking houses.
led by officials of the Bank of England re-
gret that cannot at this moment cite you to
some book which will detail this to you. but will
endeavor to make a search of my library this
evening and tell you definitely where you can
read up about it.
Now, l hope have convinced you that we
do not want to doctor this patient who Is suf-