The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-05-30
FREIGHT AND WAGE
CUTS EXPECTED TO
INCREASE BUSINESS
Reg q. s
Pat Off"
BY MARK SULLIVAN

WASHINGTON. D. c., May 30
America has now completed the cycle
which is expected by important bust
ness men and economists to round out
the groundwork for the return of bust
ness in this country to whatever is to
be the American postwar normal
basis.
The first step, taken about 10 days
ago. was the reduction of railroad rates
by the interstate commerce commits
sion; and the second. adopted this
week. and to go into effect July l, was
! the reduction of railroad wages by the
official action of the railroad labor
| board.
| 1t has long been recognized that
| high railroad freight rates we're an i'm
pediment TO the adjustment of Ameri-
| can business. When this was put up
to the railroads, however, they always
protested that they could not reduce
rates so long as railroad wages were
so high.
Chief Concern
The interlocking relation of these
two factors and the necessity Of TAX
ing action on them has long been the
chief concern of business men and
those departments of government
which themselves are concerned with
business prosperity.
The two things combined have been
a source of embassassment for more
! than n year. Their relation to each
other and the relation of both to bus
ness prosperity was made especially
emphatic at the time of the threatened
railroad strike last year. Those de
partments of the government which
are charged with responsibility for the
interests of the public within this field
have known that freight rates ought to
be reduced and that railroad wages
ought to be adjusted so as to make the
cut in freight rates possible. The EN-.
barassing question has been, which
step to take first In the outcome the
two steps have been taken virtually
, simultaneously.
Way is Clear
1t is believed that with these twt
embarrassing factors readjusted, the
: way is clear for a thorough-going re
: sumption of maximum business activ
? ity. 1t is predicted by those whr
2 speak with most authority in this fielc
{ that in the course of few months
there will not be an unemployed work
I er in the United States.
IL Is not 6Ap6Cleu, Oh COuTS6t tud
T the volume of business will reach tn
t maximum that America had durini
r the light of the war. That was al
nC<mal But it is predicted, and wit
!. great confidence. that America vii
q shortly reach a volume of bushes
!. activity and degree of prosperity ia
. above what this country had befor
the war.
!. If the war had not occurred, an
O if there had been merely the norma
J. peace-time increase from year to yea
q the volume of business of 1928 woul
V not have been greater than what
now predicted for that year.
Normal Basis Ahead
American business is about to e
forward on what is to be its poSt-wa
], normal basis. America is past all tn
~ abnormalities. America is complete
I ly through with both the abnormal il
Is flation of the height of the war an
e the equally abnormal deflation tia
% followed Immediately after the wa
> This new normal basis for the futuT
is to be much better than was con
monty expected.
The departments of governmer
which have charted this matter car
fully show that in the final net resu
y America has suffered almost nothin
IN by the Interruptions and dislocatior
he of the wartime period.
tie The volume of business for 10:
at promises TO be at the point where
would have been if the war had new;