The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1923-05-11
CURRENT BUSINESS CONDITIONS
By GEORGE E ROBERTS
Monthly Bulletin for Oct Issued by the National City Bank
of New York
BY GEORGE Z. ROBERTS

~~~~~~~S~~~~~~S~~S~
will begin, and there will be no stop
a ping place until the high prices re
: suited have effected such a curtailmen
OF consumption that the demand 70
: labor in the industries is satisfied.
Factor in Prosperity.
II has been claimed in some quar-
! tiers that great benefits were achiev
ed for organized labor by resisting tn,
natural readjusiment of wages down
ward in 1921. If an accurate calcula.
ton could be made it doubtless could
be made to show that the wage earn.
ers lost more by unemployment and
by keeping up the cost of living than
their gains amounted to. 1t is likewise
argued in some quarters that the pres
ent wage advances are a great stimu-
lus TO prosperity. But it would be i'm
possible TO name any wage increases
which are not deducted from the in
come OF somebody. and consequently
will diminish purchases somewhere.
An increase in wage payments which
is occasioned by more employment and
increased production means a gain to
wage earners. but round of wage
increases which are simply added to
the costs OF production and the prices
of the products do not signify any last
ing gain.
AS between the farmers and wage
earners, where the chief issue now lies,
raise Of wages without any cores
ponding rise in the prices of farm pro-
ducts means that 20 the extent that
the wage earncrs consume each 9TH
ers' products they pay for the raise
themselves. while in the case of the !
farmer as a normal consumer, his pur-
chases will be reduced and the falling |
off will affect the industries unfavor-
ably. The same is true of all classes
except the particular wage carriers
whose wages have been increased
Moreover, in the long run. il the COM
pensation of the farmer remains be-
ow the level of that in the other III
iustries there will be shift of labor
rom the farms to the industries until
ngher prices for farm products or
over compensation in the other indus
ries restores the equilibrium Mean
While. however, while these adjust
nents are being made there will be T,
and bad times for ev-
rybody.
All groups and classes are best /;
erved by maintaining the normal
quilibrium, that is to say. the equilib- 7
ium which the natural competitive /,
orces tend to establish A general :,
Use of wages. which has the effect of :,
diminishing the compensation of the :.
armer can be neither justified in NOR
Is nor made permanent. And of
purse the same would be true of any :,
rbitrary effort to force wages below :,
lie normal level of compensation. cost :,
living considered.
The Crops i.
The spring season is rather back -
ard, which may affect the acreage of :
is years crops. The high price of !,
tton has been expected to cause an
creased planting of about 10 per p
mt. Even if this is realized there is
niger OF shortage unless the season y
ould be unusually favorable. Re- '"
rts received by the Department of o
sriculture, and the course of the :"
arkets as well, indicate that the pro-
ction of corn and hogs is again in
lanced relation. The increase in wi
rk production in the past winter was ne
out so per cent over the winter be- -
e. From 1918 to 1928 the number :
hogs in the country January lst and
, number of bushels of corn on
'rch lst have been regularly esti-
ted by the Department of Agricul-
e as follows:
No. Hogs Blu. Corn