The Delta independent., 1921-10-28
Current Business Conditions
By GEORGE E. ROBERTS

debts. However, there is more
cheerful feeling as debts are paid or
reduced. There is not enough bust
ness to go around, which makes com
petition sharp. with profits at the
minimum.
The wheat crop of the United States
and Canada stands at latest estimates
about the same as a year ago. and the
! worlds crop is about the same as for
/ last year. About 135 million bushels
were exported (either as whole grain
or four) between July 1 and October
1.
1t has been recognized in we'll
informed quarters throughout the last
two months that the price Of wheat
between now and the next harvest
depends largely upon the crops in
Argentina and Australia, two coun-
tries which have their harvests IN our
winter season Neither OF these coun
tries ship wheat to the United States
but their surplus competes with ours
in Europe and the price of the surplus
makes the prices everywhere. In view
of the prospect for light sowings in
Russia this fall and no surplus there
next year, it would seem to be good
policy to SOW a larger acreage OF
wheat in the United States this fall
1t does not appear that the position
of agriculture or any of the primary
industries has generally improved dur
ing recent months. The cotton pro
ducers have gained by the increased
value of their carry-over; tobacco and
dairy products are bringing better
prices, and wheat is on remunera-
tive basis. but hogs have suffered
heavy slump and are now with cattle
and sheep down to about pre-war
prices. Taken as whole, the prices
of farm. products are so far out OF
line with the prices of manufacture
and charges for transportation that
the usual exchanges cannot pe mace.
Hence the state of unemployment IN
the industrial towns.
The whole business situation is
clogged and obstructed not only by
the high cost of railroad operations
but high industrial costs. placing
goods beyond the purchasing power
of consumers This is the principal
reason why millions of men are out
of work and it will have to be square
~ faced before any general recovery
can take place.
The sunshine cure is no remedy for
this situation Prosperity will not be
created by cheerful talk while this
unba lanced state of industry exists. 1t
will not be created by unemployment
conferences unless they bring about
an understanding of the necessity for
reducing industrial costs. Such make
shifts as spreading what employment
there is to include the unemployed
and creating employment upon public
works are at best effective only as
means of tiding over a temporary sit
uation. and are chiefly Objectionable
because they actually postpone the re-
adjustments that are necessary to the
restoration of normal state of in
dustry The natural course for an
employer to pursue when reductions
OF force must be made is retain the
oldest and most worthy employees. and
it is not likely that many will be per
suaded to do otherwise.
There is no way to nave prosperity
except by self-supporting balanced in
dustry-by the free and natural eN-
change OF products and services-and
this requires that the compensation
of the people in the various industries
shall be on such a basis that they viii
absorb each others products.
When a general state of confusion
exists in which the exchanges cannot
be made as usual, production slows
down. The individual employer can
not go on making goods unless he can
sell them. When his outlet is closed
he shuts down. and when he stops
buying materials and paying wages an
outlet for other products is closed
Employers and employees are alike af-
fected: il is not a situation to quarrel
over. but to investigate intelligently,
to find the original cause.
The existing situation presents
test OF the quality of labor leadership.
Has it the foresight. the wisdom and
courage to act for the best interests
of the whole body of wage.earners
and of society as .whole??
Undoubtedly the responsible labor
leaders are in a trying position. one
of them is quoted as saying that
labor unions are not organized to re-
duce wages" but are expected to Sc.
cure advances rather than reductions.
Leaders. however. depend for their
lasting influence upon their ability to
lead wisely and to serve the real
interests of their followers. which