Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-31
2TATION INDUSTRY COMES TO FRONT AFTER BATTLE
CANCELLATION OF DEBT
SHOULD COME IN time
Trial of Ineffective Remedies
Perhaps Necessary, Says
Albert Strauss.
Ky Albert Strnu,,

Formerly Vice Governor Fedora
Reserve Board
expect tho recovery in general
business now III progress to be main
tanned during 1923. and possibly to
witness some further general i'm .
provcmcnt.
Along with il | expect commodity,
prices on tho whole to advance and
easy money to continue
The elements making for tho main
tcnancc Of present and for the cs-
enlistment OF higher commodity
prices are:
CD The fun employment OF labor.
81 The existence of no ovcrstocll
of commodities
90 Tho rising tendency OF wages
caused, in part. or stimulated by the
restriction Of immigration
90 The present tariff. the effect of
which is To take tho edge OF for
eiSn competition
Shortage OF Labor
Flant facilities are probably we'll
In excess Of tho labor available to
man them and industry is probably
adjusted to production roughly
equal TO this country's domestic de-
f''' bi'btIdtC export dc =
mand. High labor costs and a de-
mand for commodities limited as
above indicated. will have ten
dencE TO reduce profit margins. If
these conditions should 20 to tho
icnGth of causing production at a
loss with tho result OF martial
shutdown of industry. tho result,
while |. would tend to lower wages,
would at the Same time. cut on a
cohsidcTapie consumption demand
from the lahoring population.
H. with advancing wages. labor
became more efficient. higher wages
ana expanding profits would 70
hand In hand and both would be
more permanent Unfortunately cx.
pcricncc Indicates that the opposite
usually happens
IN view OF existing plant facilities
there is likely 10 be little demand
for capital for tho purpose OF plan,
extensions unless, indeed. a complete
change in the railroad situation
should lead to an extension Of rail
facilities. In the present political
temper however. this seems very
unlikely.
Preparations md Debts
Political considerations not only.
abroad. but hero. romplicate the set.
tiemcn. Of separations and in.oral.
lied debts. In my judgment. Europe
has not heretofore been ripe for tho
settlement OF these questions II
was probably politically necessary
hrSt to try out popular hut incf.
fectirc remedies. During this stag
plans. however. sound. IL not noli,
icallE attractive. would simply have
served as basis for interminable
bargaining and an offer to cancel
;hn amounts duc as ~ foreign gov.
crnmonis would have involved the
waste OF q concession. which, IL used
at the RICH, time. Will have real
value.
Tho settlement o. rcparations and
in'"rallicd debts involves such huge
amounts t:Iat the resulting d"ranSc-
mcnts must he more or less damag
ing :" both parties. Whenever A
reasonable settlement Of rcpara;!ous
can h" made We should in our own
interest. as we'll AZ in the interest
OF Europe. he prepared To cancel all
or large part or the governmental
debt h"Id by vs.. Responsible officials
have not been willing To advocate
such a step. If proposed as part o.
a genera. settlement however
statesmen with tho courage to adj
Hocate an apparently unpopular
course may, to their surprise, find
tseir courage backed by the votes of
the country.