Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-09-18

A lis, a mighty easy
job alongside Of
making them" In
r. W. Babson. discussing the re-
cent strikes. Mr..
Armour says, STRIKES or lockouts
merely show which factor for the
moment is most powerful. and not IN
any sense determines what is right.
1t is the strongest side which wins
and this is not necessarily the side
which should" His complete state
ment is Just issued at the recent con-
ference of public relations at the
Babson Institute as follows:
Efforts to take labor and capital
out of the list of commodities sub
ject to the law of supply and demand
are responsible for what Is generally
called the struggle between capitai
and labor, or more properly speaking,
the struggle between employers and
wage workers. Always in the past,
a surplus of workers has meant low
err wages. Those with labor to sell
have said that capital was cracking
the whip. while employers pointed to
increased competition and lower SELL
ing prices as both j%ustifying and
compelling lower operating costs.
"On the other hand, when workers
are scarce. wages go up. Then those
WIN ca pltdl luVSSLcu nave liloIIlIdl1l-
ed that the wage workers take ad-
vantage of the situation. The wage
workers reply is that higher living
costs Justify higher wages. Thus 1t
will be seen that while there isn't
any question but that wages go up
and down in accordance with the Jaw
of supply and demand. there are two
different explanations for the phen-
omenon Either is reasonable or un-
reasonable, according to ones
viewpoint.
REIMBURSEMENT Brings Strife.
There are at this writing more
gle between employers and al
workers. This is due to the fact that
after a long period Of increasing
wages there came a urn in the tide
which had been carrying wages and
prices to higher and higher levels.
With the end of the period of war
imitation came an insistent demand
for readjustment. Just what read
justment means depends largely up
on who defines it. To employers it
means a return to normal operating
costs. ETC., while to wage workers it
means lower prices on the essentials
of life.
"Inasmuch as about 80 per cent of
the ultimate price of commodities in
general represents the labor costs in
cident to production. manufacture.
distribution, etc, it ought to be OBJ
Wous that wages and prices are in
the same boat and must float or sink
together. Thus when markets slump
ed and prices fell, wages were started
I on the down trend and thereupon
workers in. many industries fell back
upon the strike as q weapon against
wage reductions.
Economic Laws 1nexorable.
THE law Of supply and demand
calls for a return to normally, and
wage workers, while aiming blows at
employers. are really bucking up
against inexorable natural laws.
These laws permitted high wages for
workers and high interest rates for
capital during the war period. Since
then these laws have forced the in
terest rate down, and they will not
permit the retention : of wartime
wages. y
1T may be a hard pill for both
capital n labor to swallow, but the
fact remains that they are subject to
the law of supply and demand and
they cannot escape it. Regardless Of
outside interference. wage Garner
employer difficulties will always be
settled In accordance with the re
e. "a hAiVAiA9 " 10 10 aux III
the ills and hardships Of the struggle
between the two factions result from
resistance of these laws.
ut seems to me that the time has
come when we, as a nation, should
take steps which will enable the nat
ural laws to operate without the
painful and damaging struggles which
are now the rule, and which are not
productive of permanent good to eth
Ar m rlnS-ar ~. 1N,rl-,-1
Panaceas Disregard Laws.
"Panaceas for employer-wage work
er Ills have always been on the mar
ket. but in practically all cases they
have been designed to produce some
effect other than hat which would
ON from the normal working out
Of the law Of supply and demand.
They have sought to keep wages up
while cutting prices. OIL to force wag-
es down while maintaining price lev
els, or have otherwise disregardeo
the normal and natural relations re
tween wages n prices. Therefore,
those panaceas have not worked and
never will work. The sooner it Is rec
ognized that natural laws will pre-.
vail. the sooner will we n the so1u.
ton for Dur troubles. The proper sol
ution must bring the same result tina
the normal working. of the law would
bring, but must avoid the evils and
Ills and damages incident thereto.
Dividing the Profits.
The fight between employer and
wage. Garner has been described al
having to do with q division of the
profits. II that were true, the prob.
lem would be much simpler than i
merely phase of the matter; the bil
A OrOhl0m is tn ma ke the prof1fo IN m,