The Glenwood post., 1923-05-17

receives ~ per day Other lines
are promptly coming to the same
level, and in some instances had
already set the mark. The packing
industry has restored the reductions
painfully obtained two years ago.
In the textile industries Of New
England, where wages we're ad-
vanced by about $50 per cent in the
war boom. cut of 22h per cent
was made in December. 1920. From
that level an increase of l2H per
cent has now been agreed to. In
the clothing industry. where very
large increases were made in war
time from which moderate reduc
tions have since been made, in
creases have now been granted, re-
storing wages either to the war level
or near it. Agitation is developing
among the railroad employees, and
upon some Of the roads wage in
creases have been recently granted
These lines Of industry are not re-
lated, and there i. little likelihood
Of labor shifting between the rail-
roads and the textile industries. but
taking the industries together much
shifting is practicable, and directly
or indirectly the entire wage struc-
ture is related.
When this general advance is COM
pleted. the whole situation will be
about where it was at the beginning.
That is to say, if the demand for
labor is still unsatisfed, competi-
tion will continue and new round
of advances will begin. and there will
be no stopping place until the high
prices resulting have effected such
curtailment of consumption that
the demand for labor in the indus
tries is satisfied.
Factor In Prosperity
1t has been claimed in some quar-
tiers that great benefits were achieved
for organized labor by resisting the
natural rcadjustment of wages
downward in 1921. II an accurate
calculation could be made it doubt
less would show that the wage
earners lost more by unemployment
and by keeping up the cost of liv-
ing than their gains amounted to.
1t is likewise argued in some quar-
tiers that the present wage-advances
are great stimulus to prosperity,
but it would be impossible to name
any wage-increases which are not
deducted from the income of some
body and consequently will dimin-
ish purchases somewhere. An in
crease of wage-payments which is
occasioned by more employment
and increased production means a
gain to wage-earners, but a round
of wage-increases which are simply
added to the costs of production and
the prices of the products do not
signify any lasting gain.
AS between the farmers and wage
earners, where the chief issue now
(, lies, rise Of wages without any
corresponding rise in the prices Of
farm products means that to the
extent that the wage-earners con-
sumo each others products they
pay for the rise themselves, while
in the case of the farmer as nor
nal consumer, his purchasers viii
! be reduced and the falling off will
affect the industries unfavorably
The same is true OF all classes ex-
cept the particular wage-earners
whose wages have been increased
Moreover, in the long run if the
compensation of the farmer remains
below the level of that in the other
industries there will be shift of
labor from the farms to the indus
tries until higher prices for farm
products or lower compensation in
the other industries restores the
equilibrium. Meanwhile, however,
while these adjustments are being
made there will be maladjustment
and bad times for everybody.
All groups and classes are best
served by maintaining the normal
cquilibrium-that is to say, the equil-
ibrium which the natural competi-
tive forces tend to establish. A
general rise of wages, which has
the effect cf dia,.si.h;-r =. ro..,-