The labor world., 1922-04-01
AMERICAN LABOR CHEAP.

SllOp.
AMERICAN LABOR; CHEAP.
It is pet hobby of anti-union en-
ployers to reduce costs by cutting
wages. The. average American manu-.
facturer is so accustomed, to depend
upon government subsidy. in the shape
Of a high tariff to protect him from
the so-ca]led cheap labor products Of
other countries that he has given little
attention to- the kind Of efficiency in
management to which. his attention
was called by President Wilson dur;
ing the World war when the markets
of the East and South America were
open to him with little danger from
other competition.
Asa matter Of fact the cheap labor
competition is not from outside of the
country but from within it. The
American worker is the cheapest la
borer on earth. Only the other, day
DR.. Julius Klien, director of the bu-
reau of foreign and domestic com.
merce, told a subcommittee Of the
house committee on appropriations
that the products Of American work.
ers can compete in the markets Of the
world, regardless. of high wages.
| Dr.. Klein said the high cost Of
labor in the United States had "rela.
lively little'> effect on the ability
of American business men to compete
with foreign producers in outside
markets.
"That high cost,' said Dr. Klein,
''is simply the item Of high wages
and not high cost. Let me illustrate
that, for example, with the coal
trade. The wages paid our coal min;
ers are far higher than those paiif
British coal miners, and yet under
normal circumstances, eliminating the
last few weeks when quantities Of
coal have been dumped abroad by the
British under rather peculiar circum-
stances-under normal circumstances
our coal can, be put f. o. b.. Norfolk
at a lower cost than coal can be put
on board ship at Cardiff. The reason
for that, first, Of all, is the far great
er productive capacity of our work.
men, a far more advanced industrial
technique BY the American mining
and handling companies in machinery
for keeping the mines dry, pumping
apparatus, lifting and hosting ma
chanical devices, and devices for de-
]ivering coal on board ship, and so
forth.
ANY one going into rolling mill
in Pittsburg and then visiting big
German plants at Essen or the big
British plants is impressed, first of
all in the American plants, with the
fact that few men are in sight,
whereas in the British and German
plants large numbers are seen all
| over.
"In other words, the labor cost per
unit of product, not necessarily the
wages, but the labor cost per unit
Of product, whether it is a ton Of
coal, ton Of steel or a yard Of goods;
isnot necessarily: to our disadvantage,
because Of the superior industrial
technique in our plants.''
"Then I take it you do not fear
very much the pauper wages of Eu-
rope,' said Congressman Griffith.
II think the danger to our export
trade from that direction is exagger.
ated," replied DR.. Klein. cit is, 81
course, an item we'll worth consider:
ing, and we should make sure to com.
pare not only the wages but the cost
Of goods per unit. We should also be
very sure that in any such compari.
sons we are considering the same OF
similar articles.''
DR.. Klein made the interesting
statement that Germany's manufac
turing industries are being restored
"only very gradually" and not a,
rapidly as is generally supposed. Dr.
Klein stated that ''she is resortina
to very considerable artificial slim