Every evening, Wilmington daily commercial., 1921-03-31
BUSINESS REVIVAL
WATTS ON ADJUSTMENT
OF WAGES AND PRICES
They Are Intimately Associated
and One Cannot Go Down
Without the Other.
OUTLOOK is VERY UNCERTAIN

special Dispatch from STAFF Correspondent
Washington, March 31-As the Fed
eral government enters upon its policy
Of compelling Industrial readjustment
a reduction in the syvelled wage scales
that mounted during the war and have
not been Debated. and a scaling down
in prices OF the basic industries and
commodities used by the average con-
sumner. il is apparent TO experts that
business can not begin the necessary
accOmmodation to new conditions until
these essential things are done.
one OF the great obstacles To de-
cline in living costs has been the con-
tinued cry of Samuel Gompers. pres
ident of the American Federation of
Labor. that wages. now at their nigh
est scale in the history of the world,
must not he reduced in the aftcr-war
period. Labor enters into about 80 per
cent of the cost of everything and while
the worker insists on having his high
pay, there can be no defiation. The re-
suit is that all must pay tribute to
the high wage scale. even the so called
white collar class" the small salaried
man and the worker in the office and
hank. While some in the laboring class
are benefitng by this situation, most
of them find that the high living costs
quickly absorb the high wage and they
are not much better of than if they
had a lower wage scale and could buy
4, a reduced price.
The vicious circle of wage and COM
lnodity increases continued during the
war and deflation since has brcn very
small But dcflation can not honestly
come until capital and labor arrive at
some understanding. Wage scales and
prices must ran at the same time.
Ttccs can not drop while the great cX-
l.,uSe of labor which enters into thcir
,erductiou remains unchanged. There
.src there must he some outside force
such as the power cXerted by the F-csi-
i, 1, of the United States - bring about
ua understanding ana d change IN The
-.lastriaI situation which is badly
.,<.,t.aE tn, entire population. with no
f.t,. iu sight through i natural re-
adjustment.
buyers strike" Looms up.
rl. while business Iars because Of
t1. juabii;y ~ many h. purchase thc
general situation is greatly affected by
what has bacpm, known as th, buyers
ss-4lse~ Til, consumer tnds wholesale
.ca~ drornIn2 as vrE aS thc prices
ilt Itl ttt.t.sN 'stAtA tAtt az 'tt+N "
commensurate reduction ir the re-
tal price There has gradually spread
throughout III. nation 4 peculiar pSN-
,au.. -t-a protest AGAINST hu2jn2 Whi. !
r.ses rclaa.n 81 high This state :,
ausu 1aa its 4res.ioa rs. @nmn
.a cay -ot...r." maten.g grt and today
t.rr country is oa an orrrau
Ia-- While it is not we4rrc th"
cement pF fa~t GtJr1-ftt-y
avyg ,ae phHosorh> taSlred hy
.s. .f,a aaa V.1t buy The result Is
.h. manufacture. unahlv to
what he aas made for seasonal
.ss thc retailer s not stocking uD.
t st5eaa:.n~ cNistS throughout all
r,S due to som. extent = the buyers
st-kr
l.rr.eta the hueiaese situa
t.. al.h n.er, :fao an1a.10o persons
,hc at tr. .he NerE funda
,rt ,,s thc .ea- q orEa ni-.d labor
s. reduced VaGe scales which
-rt .s.lt.-i hE business conditions
arr ,ran. law Tho laws ot
.r....r.a az. uaw operating with cold,
calculating certainty. These can not
r., overcome hv any supcrimposed
terc. such as organized labor is irving
~ exert There is no real demand for
roduCts outside Of the United States.
tr. American consumer is an unwilling
.nor. buyer The result IS win no
can for commodities. Ideress is in
.-casinc ard ,he high waEe scale pro
,.rts hut very f,w and wil protect
i.Ss and loss while The condition exists
- iuactis.t. IS bound 10 grow larger in
t.ts, circumstances.
>o Improvement in business.
TN. business conditions have not
shown any real improvement in gen
.saI in the last month There has
I.cn some Increased employment il
tn, automobile line and d little in
r.ascd production among the makers
=. shoes and hosiery, But against this
Is the prospect Of greater idleness
among the basic industries such as
steel and the mining of coal. As busi-
ress depression spreads and warm
weather approaches there is not much
demand for coal. Another reason for
the lack of orders IN the coal trade ie
The slow down in transportation. The
railroad companies do not need as
much coal as in normal times.
The industrial situation in the last
month is mixed The news from day u
day tells Of works that are closing ano
works that are starting up. the ons
class Of reports about balancing th'
other. So the net result OF the indus
trial movement is no progress towards
stability or an era of prosperity
The amount Of unemployment is ap
,,arentIy very large but the amount o
distress is comparatively small, in
dicating that the wage-earners hat
laid by something il the day Of goo'
earnings. But this period Of depres
sion which began with the last month
of 1920 can not continue much longe
without its effect upon the employed
and the employer becoming very evi
dent in distress among the worker
md financial losses and bankrupt.
l,econing large in the latter class.
II is believed that the administratio
win have started its policy Of force
deaation in the next few weeks an
that when Congress gets back TO wor
i will have many problems TO conside
anart from the very necessary ones {
enacting legislation TO relieve the busi
ness man OF burdensome war taXatio
ana adjustment of the tariff to stop th
cumming of foreign made goods on I'll
American market.
Waiting on Readiustment.
Viewed from a conservative stand
roint the next few months viii bring I
the fore all the accumulation Of ba
.co,oroic 0perations during the wa