The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-11-28
CAUSE. D.BY
BUSINESS
CYCLES
Secretary Says Road to Ma
tional Progress Lies in
Rise of Real Wages
BY ROBERT s. THORNBURGH,


BY ROBERT s. THORNBURGH,
International News Service.
An economic formula for per
manent national progress and pros
perity was laid down today by Sec
rotary Of Commerce Hoover.
Here is Hoover's recipe:
"The American. standard Of liv-
ing is the product of high wages
to producers and low prices to con-
snmers.
"The road to national progress
lies in increasing real wages
through proportionately lower
prices.
"The one and only way is to inn
prove methods and processes and
to eliminate waste.
"By well directed economic
forces, by cooperation in the COM
munity, we can not only maintain
American standards Of living, but
we can raise them"
Waste Exceeds Debt.
National waste in industry alone,
according to Department Of Com
merce figures. aggregates more
than $4,000. 100000 annually. more
than the entire national debt, plus
the yearly cost Of governmental
operation.
Waste in other fields cannot be
estimated accurately, but it is said
to be tremendous.
Hoover, In his annual report to
President Coolidge, took up ma
tional waste under the following
heads:
Unemployment and the business
cycle.
wastes due to seasonal construc-
ton.
In the bituminous coal industry.
Interconnection Of electric power
and lighting systems.
Revision OF Federal and State
purchasing specificati tons.
Improvement !. in technical pro-
ceeses
Simplified practices.
Better practice In distribution.
Reducing housing costs.
Better homes.
Street and highway safety.
Trade associations.
Must Eliminate Waste.
Just as twenty years ago we
undertook nationwide conservation
of national resources, 50 now we
must undertake. nationwide elirni-
nation of waste" Hoover told the
President. Regulations and laws
are OF but minor effect on these
fundamental things"
Hoover declared that the United
States has the highest ingenuity
and efficiency Of operation Of in
0uStry and commerce Of any ma
ton in the world.
yet" he continued; "onr eco
nomic machine is far from perfect.
Wastes are legion. There are
wastes which arise from wide
spread unemployment during de-
pressions and from speculation
and overproduction in booms;
wastes attributable to labor turn
over and the stress Of labor con-
flicts; wastes due to intermittent
and seasonal production, as in the
coal and construction industries;
vast wastes from structures in COM
merce due to inadequate trans
portation, such az the lack Of suf-
ficient terminals; wastes caused by
excessive variation In products;
wastes in materials arising from
lack of efficient processes; wastes
by fire. and wastes In human life.
Against these and other wastes
the Department OF Commerce, act
ing in cooperation with industries
themselves, has for the past three
years developed an increasingly
definite program. As these mani
fold activities Of the department
are based upon cooperation with
industry and commerce, none Of
them leads to paternalistic ends"
Unemployment Waste
Hoover thinks that the greatest
waste is occaaioned by periodic
alackening of production and the
resultant unemployment. He dis
cussed this subject under the head
q the business cycle" Of which
ne mas MADE q wide study.
The Secretary calling attention
to the 100000 persons without
employment at the opening of tie
Harding administration, said that
the First National Conference on
Unemployment was called for the
primary purpose Of promotion of
temporary RELIEF and with the
broader consideration Of the whole
problem Of business slumps."
AS q result COMMITTEES wan
named by Hoover for the study of
the business cycle.
Cause. Of Slumps.
sThe committee found that slunps
IN business are due fundamentally
to the economic collapse from the
wastes, extravaganza, speculation,
initiation, overexpansion and relaxa-
ton Of effort by labor developed
during boorns,' Hoover declared.
Remedies were proposed in three
directions:
First, better control of credit !
by the Federal Reserve system and
the individual bankers, 90 as to