Evening star., 1922-09-15
cabinet MEN SEE
PROSPERITY DELAY
Time Needed, They Say, to
Reap Benefits Of Strike
Settlement.
HOOVER DISCREplTS LOSS
Holds Mines to Boost Production
and Money Circulation Due to
Increasing Work Days.
HOOVER DlscREDlTs LOSS

High administration officials gave
warning yesterday that the country
must wholly recover. from the after
math of the recent Industrial up
heaval before economic benefits flow
ing from the settlement OF the rail-
road strike can react fully upon ma
tional business conditions.
Secretary Hoover took the view, as
reported by the Associated Press, that
although the country is now better
off than it was a year ago. 1t VIII
probably be six months before a
high plane of prosperity is attained.
while Secretary Mellon. although
considering the business outlook
very good" recognized as fore
stalling immediate commercial ex-
pansion the limitations imposed on
transportation facilities by car short
ages and a possible inadequate labor
supply.
Farmers of the nation will bear the
greatest loss as a result of the strike,
according to an analysis OF the SIT
uation by Secretary Hoover, in which
ne reached the conclusion that the
economic wound received by the
country should be quickly healed.
Davis More Optimistic.
In contrast with the views Of HIS
two cabinet associates. however. Sec
retary Davis Of the Labor Depart
ment was positive that settlement of
the rail strike removed the last OBJ
Stacle to unprecedented" prosperity.
While the losses due to the coal
and railroad strikes have been con
siderable" Secretary Hoover said in
statement, they are easily over
estimated"
The estimate of current coal
miners wages lost in the five months
(of strike) is not a correct basis of
the estimation of the total loss" he
! said. because over period of
eighteen months we Will probably
consume the same amount of coal.
In other words, the miners will work
more coal in the next six or eight
months than they would have pro-
duced IL there had been no strike.
I and thus the wage roll of the next
six or eight months will be larger
and will. in considerable degree, COM
pensate the loss during this suspen-
sion.
The real loss would lie more in
the loss of productivity in industries
that have. or might have, to close
down as a result of the coal strike.
If all of our industries can be kept
III IlctlOu, tlc ioS', wall bt
less from the coai strike than is
currently estimated
Farmers LosS Grentest.
"The greatest loss today is the one
, being met by the farmer as a result
of the railway strike. The export of
farm produce has been seriously in
terfered with by the inability of the
railways to transport produce. Prices
are, therefore, unduly depressed in
the agricultural regions, and the
farmer is suffering grievously.
"The inabilityIt to transport manufac-
tured products will create some de-
gree of loss. but not SO serious as that
There are other sssrset sssss be
counted into the national balance
sheet, such as the damage to the rail-
way-the extra charges which they
have been put to. the cost of keeping
the mines open. and maintaining them
during the period of suspension. and
hundred other items that are of i'm
ever. II we can get back to business.
transportation and rapid distribution
OF coal and agricultural produce. we
will not have received such an eco
nomic wound as cannot be very quick
~ recovered from. We will probably
not be on such high plane of busi-
ness prosperity during the next six
months as we would have been had
the strikes not taken place. but we
will undoubtedly be on a much higher
and much more comfortable plane
than that of last year"