Evening star., 1922-08-29
BY }. c. ROYLE.

NEW YORK, August 29.-Tens of
thousands of textile operatives in
New England will be back at their
looms next Tuesday. The majority
of them will be drawing the pay they
received last spring. before a 20 per
cent reduction caused one of the
longest-drawn-ou strikes in the his
tory of textile industries.
The widespread resumption of work
on that date will offer another and
convincing indication that the period
of the deflation of labor costs
throughout the entire country is past
and that period of price advances
of manufactured articles is at hand.
The entire complexion of the New
England textile labor situation has
changed following the offer of the
Pacific Mills Corporation of Lawrence.
Mass, to rescind the 20 per cent
wage cut announced March 81 of this
year. This became apparent today
through telegraphic dispatches re-
ceiyed within the last twelve hours
from unbiased observers in close
touch with the situation. The Mono
mills of Lawrence have followed the
lead of their large competitor, the
United Textile Workers and several
affiliated bodies have voted to accept
the manufacturers offer and the mills
OF Lawrence again will be on the old
wage basis.
Elsewhere in Massachusetts. in New
Hampshire and Rhode Island, the wage
cut SO far has been maintained with Il
oil ,I,-
However. the view is held that because
of the prominent position of the Law
renee mills. their action will be follow
ed elsewhere and that the days of the
New England textile strike which has
separated over 10000 workers from their
pay checks are numbered.
Many well-informed business men of
New England today attributed the
change in sentiment to the inspiration
furnished by the wage advance of the
dd,iss nlted d,Is states Steel Corporation. I'm
doubtedly, however, a more correct view
is that similar conditions produced SINH
lar results in the two industries
Most Potent Factor.
Perhaps the most potent factor in
bringing about these conditions was the
building industries which said nothing
but sawed wood Building construc-
ton has been extremely active both in
New England and elsewhere There
skilled, in the building trades and work
men commanded high wages. Hun
dreds of textile workers became builders
overnight. One way Of getting them
back was to increase wages. This
outline of the situation was voiced
today by a member of one of the most
influential banking houses in the coun-
try.
When the supply of workers in a given
industry begins. to run ow. there fol-
IntN., tEa = e..
workers of some one else and labor is
worth what it will bring in the open
market. 1t seems clear from recent
events that wage costs are to rise dur
ing the next few months unless pro-
duction is interfered with too serious
ly by fuel and transportation difficult
lies. Higher living costs are forecast
ny higher fuel prices, increased housing
costs and advances in the price levels
of manufactured goods. And wages
normally follow living costs both up
ward and downward.
Increased Buying Power.
AS regards the cotton textile situa-
tion, the manufacturers have come
to the conclusion that the price
movement for their products will be
steadily upward the swing gaining
momentum as the year draws to a
close. They have abandoned hope
that raw cotton will drop below the
20-cent level, and it is known fact
that dealers need cotton goods. The
time is rapidly approaching when
wholesalers and retailers must re-
plenish their stocks.
This view is strengthened by the
increase in purchasing power of the
country. which points directly to in
creased consumption of cotton cloth
The domestic market will be aug
mented by foreign demand, especially
from South America and the orient.
which is increasing steadily.
The loss of production of cotton
goods up to the first of this week as
a result of the strike, is estimated
conservatively at 325.06S,000 square
Yards.