The Glenwood post., 1923-05-17
Industry and Trade


fNHE last few weeks have seen a
L slowing down OF trade activity
in wholesale quarters. but no let
up Of industrial activity. Appar-
emily the edge is off the demand.
or buyers have satisfied their wants
for the present. but the relaxation
of interest is not interpreted as sig
nifying any falling off of consump-
ton or real weakness in the situa-
ton. Production in the principal
lines is at a very high rate, and
measureably meeting requirements,
while the numerous warnings that
have been sounded against the dan
GER of rapid price advances may
have had some influence in temper
ing the zest of buyers.
Manufacturers are disposed to ab-
sorb increasing costs without ad-
vancing prices, so far a increasing
profits arising from full operations
enable them to do SO. Anxiety is
felt everywhere as to the effect OF
: rising prices upon consumption.
Manufacturing profits in the princi-
pal industries. however, have been
small since raw materials began to
advance, and most of the wage
increases now being made must he
eventually reflected in prices.
Wage Situation
The rise OF industrial costs, as
manifested in advancing wages. has
been the chief cause Of apprehen-
sion, and no doubt has been mainly
responsible for the spirit of hesita-
ton shown in the markets. The
indications are that the country has
a smaller supply of manual laborers
than It had in 1920. When any sug-
gestion is made that the immigration
law should be modified to permit
some of the unemployed labor OF
Europe to come here and have
work, 1t seems to be assumed that
the only question involved Is that
of wages. and that this Is altogether
matter between employers and en-
ployes. There is more involved.
High prices may be counted upon
to increase the supply of any prod
uct which can be readily produced.
but high wages will not increase the
surply of laborers in the United
St,tes when a bar exists against
immigration. The work in demand
will not be done. 1t is true that
wages may be raised to point
where they will be attracted from
h, farms. but that will mean high
er living costs for the entire popu-
lation. The country should under
stand what the present immigration
policy means, and not imagine that
nobody will be effected but the en-
ployers who give the warning. The
coal operators, steel and cement
manufacturers and other employers
can afford to raise wages as long
as consumers can afford to buy the
products; it will be only as buying
falls off that the employers will be
injured. and this will signify that
industry is slowing down, produc-
ton diminishing and everybody be-
ing injured.
A Competitive Situation
A state Of sharp competition exists
among the industries for labor.
With the modern investment in
equipment, it is of great Importance
in economical production to operate
as nearly to capacity as possible.
The competition for labor is not
simply between employers in the
same lines OF industries: the
several branches of industries are
competing with each other. 1t is
an irrepressible competition. so long
as shortage of labor exists and
until the industries which can afford
to bid highest are fully supplied.
The iron and steel companies raised
wages by 20 per cent last Septem-
ber, not to avert strike. but to hold
and increase their labor supply.
Since then increases have been GO
ing on in other lines, and on the
10Th Of last month wages in the
steel industry were again advanced.
70 shst he lowest paid labor row