The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1924-06-20
CURRENT BUSINESS CONDITIONS
By GEORGE E. ROBERTS

The high state OF industrial activ
iiy which characterized the frs
quarter of the year reached its ores
about the middle OF March and ha
been declining since. but in recen
weeks the downward movement ap
parently has been checked, the cur
tai.ment OF production and OF whole
sale buying having outrun the fall
ing off in retail distribution. Th'
after is what usually happens in Z
period when prices are weakening
Neither producers nor dealers wish
to accumulate stocks when the out.
look appears to be for slackening
demand and falling prices. The first
impulse to work off stocks. This
is a general rule but its observance
has been more marked since the
great slump OF io20-2l and the heavy
losses upon inventories then expert
enced. Whenever a slackening tend
ency is generally noted an alarm is
sounded and the process OF reducing
stocks follows as a matter OF course.
II is one OF the results of the dis
turbcd conditions prevailing for over
ten years that the business world is
more sensitive to indicated changes
than formerly. II takes to cover
more hurriedly.
The Wage Question
The answer to the question how
far industrial reaction is likely to go,
depends mainly upon whether or
not the general wage situation re-
quires readjustment in order to af-
ford the basis OF permanent prosper
ity. How important is il that there
shall be balanced relations between
the industries? The relations be-
tween the farmers on one hand, COM
prising the largest single industrial
group, and the wage-earning workers
in the cities on the other hand, has
been very much changed from what
1t was before the war. The fore /
going price table shows a marked 1
difference between the index figures /
for farm products and those for I
clothing, house furnishings, fuel,
building materials and most OF the
things the farmer must buy. The
farmers feel the injustice of this so
keenly that they have been seeking
legislation to artihcially raise the
prices of farm products to the level
of pre-war relations with other COM
modities.
Aside from the question of failure
and just relations there is the eco
nomic question involved. Is it pos
nomic question involved Is il posi-
Bile to maintain an inequality OF {
which judged by pre-
war standards in artificial. and have 1
wen the beneficiaries of that situa- c
ion enjoy permanent prosperity? In a
'ther words, does not the economic n
aw require a fair exchange of goods is
nd services throughout industrial c
ociety as the price Of prosperity a
ven for the strongest groups? Il
The labor leaders have been very a
etermined in their opposition to any g
eductions from the high wages of n
DOM times, and have boosted of their c.
uccess in defeating attempts to Sc "
ure them. Where such reductions 81
ave been accomplished they have al
OF rested from their efforts to re- CO
over what they have lost, although
fact few of the wage reductions
nee the war have signihed any loss 81
purchasing power over commodities fc
The wage-earners have urged with al
UGH vigor that every reduction OF W
ages diminished their buying and in
ability, and hence had a ia
pressing effect upon industry and or
ade. There is a degree of truth WI
this theory, but there are limita- CO
ons upon its application; otherwise ev
ere would be no limit to the pros co
'rity that might be attained simply OF
: advancing wages, which is more -
an any sensible person would claim.
All students of the subject are II
reed that il is not money-wages II
at count. but what the wage-earner II
ally gets for his money-wages. He H
ould not be benefited by an in \
ease in his nominal pay if he found i
at his pay would buy no more
erward than before, and this would H
the case il every producers pay H
mt up in the same degree at the \
me time and all products and SER v
'es went up together. But when
do not so up together. some gain 81
the expense Of the others. The (,
gregate OF purchasing power is not ia
reased. for what is gained by some he