The Washington herald., 1921-03-07

present Industrial situation and OF
contending interests can be had
without referring constantly to the
fundamental principles according to
which men distribute themselves in
the various occupations and ex-
change products and services with
each other, according to the Ma
tional City Bank. OF New York
There is a law OF equilibrium
which works out a natural balance
between the occupations. That bal
ance must be sustained In order
that the products or services OF
each group may be absorbed by all
the other groups. When the oai-
ance is lost, unemployment results
and continues until redistribution
In worked out, so that again every
body is at work and all the prod
ucts are absorbed, a state which
we call prosperity.
Process Rather Blind.
1t is rather a blind process-this
finding the equilibrium. because
there is no supreme authority to
tell each person where he shall go,
and what he shall do. and how much
he shall receive. 1t is up to each
person to find the place where he
can be useful and at the same time
best satisfy his own choice of work
They are trying to do II the other
way in Russia, by having the gov
ernment say where each person
shall go, and what he shall do, what
he shall receive. Those who think
they would like this way viii DO
well to watch for the reports from
Russia, or better still go there and
GET the Information at fEst hand
1t is clear, though. that the secret
of prosperity is in balanced indus
,ry. so that the production OF every
branch Of industry is in proportion
70 the wants and buying power OF
the people in all the other occupa-
tions.
The number Of people that can
he employed in any industry de-
pends upon the amount OF the
products that can be sold. and that
depends upon the price which the
consumers have to pay for them.
~ the price OF a given commodity
Is increased the consumers VIII
have to curtail their purchases OF
Il or of something else; perhaps
they will distribute the curtaf-
ment, but curtailment there Will be.
whenever by either a rise or fan
OF important classes of commodi-
ties the rarity Of values throughout
industry is seriously disturbed.
For any commodity there Is at
,ny given time certain pric'
which will secure a larger net re-
than 2nV
other price. That is to say. II the
price be lowered the additional ols-
tribution will not compensate for
the sacrifice, and On the other hand
il II be raised the loss Of distrlou-
ton wills exceed the gain in price
Everything that is offered for sale.
whether II be an article OF goods
or the services OF an individual Is
in competition, not only with like
goods or services. but with all the
multitude OF attractions that are
appealing TO every consumer IN
der these conditions II Is folly on
the part OF an individual OF group
of individuals to think that he or
they have il in their power to ar
bitrarily fix wages and prices Tor
themselves. They may have the
power TO fix, and even maintain
wages. rates and prices, but they
cannot escape the effect IL will have
upon employment or upon sales
The Great MiscaIcuIstion.
| This is where occurs the great
characterization which is tieing up
trade and industry at this time
Something has happened that has
affected the buying power of mil
lions of people and other millions
are trying to ignore 1t and think
they can go on selling their owr
goods or services at the same rates
las before Trade is dull and mil
Ilions OF people are out of work be-
cause the adjustments that are nee
essary to restore the equilibrium
are\not made.
| Merchants refuse to reduce the
prices of goods they have in stock
ami perhaps argue plausibly In
justification of their policy. but
| trade languishes and quicker-witteC
competitors replace their high-cos,
| goods with low-cost ones and take
the lead in the trade.
| Wage-earners stand for the
maintenance of wage-scales, and
as the public Is unable to buy goods
made upon that level of costs, mills
close down or run on half time, wit:
a great loss of wages without cor