Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-11-20

the suffering that the Just must en-
dure because of the Unjust. Tney are
a part of the price which must DC
paid to promote. the cause OF eco
nomic justice.
Undoubtedly If public vigilance
were relaxed, the generation TO come
might suffer a relapse. But the pres.
emit generation Of business almost
universally throughout its responsible
organization and management mas
shown every disposition to correct
it's own abuses with as little inter-
vention Of the government as pos
sible. This position is recognized by
the public, and due to the apprecia-
ton Of the needs which the country
has for great units OF production IN
time Of war, and to the better UNDER
standing of the service which they
perform in time of peace, resulting
very largely from the discussion OF
our tax problems, a new attitude OF
the public mind is distinctly discern
ible toward great aggregations OF
capital. Their prosperity goes very
far to insure the prosperity Of all the
country The contending elements
have each learned most profitable
lesson.
This development has left the gov
eminent free to advance from the
problems Of reform and repression to
those of economy and construction.
A very large progress Is being made
in these directions. Our country Is
in a state Of unexampled and appar-
emily sound and well distributed
prosperity. It did not gain wealth, as
some might hastily conclude, as
result Of the war. Here and there
individuals may have prof1ted great
~, but the country as whole was
i heavy loser. Forty billions Of the
wealth Of the Nation was directly ex-
hausted. while the indirect expendi-
turc and depreciation can not be esti-
mated. The government appreciated
that the only method of regeneration
lay in economy and production. 1t
has followed policy of economy In
national expenditures. BY an enor-
NOUS reduction in taxation 1t has re-
leased great amounts of capital for
use in productive effort. 1t has
sought to stimulate domestic produc-
ton by moderate application of the
system of protective tariff duties.
The results of these efforts are
known to all the world.
Another phase of this progress Is
not SO we'll understood, but upon it's
continuance depends our future abil-
itv to meet the competition of the
lower standards Of living in foreign
countries. During the past five years
the department of commerce has UNI
ceasingly directed attention to the
necessity for the elimination of
waste. This effort has been directed
toward better cooperation to improve
efficiency in the use of labor and ma
terials in all branches Of business.
This has been sought by the neces-
sary cooperative action among indi-
vidual concerns within industrial
groups, and between producers and
consumers. This does not imply any
diminution of fair competition or any
straint of trade. In fact, these pro-
posals have been a protection to the
smaller units of business and a most
valuable asset alike to the producer,
wage Garner and consumer"
Real Progress
The President described processes
and added:
"All this represents move
ment as important as that of 20
years ago for the regulation of cor
porations and conservation Of our
natural resources. This effort for
conservation Of use of materials and
conservation Of energy in which our
whole country has engaged during
these five years has been in no small
part responsible for the rich reward
in the increasing comfort and living
standards of the people. But in adj
dition to bringing about a condition
in which the Government debt is be-
ing rapidly liquidated while at the
same time taxes are greatly reduced,
capital has become abundant and
prosperity reigns. The most re-
markable results of economy and the
elimination Of waste are shown in
the wage and commodity indexes. In
1920 wages were about 100 per cent
above the pre-war rates and the
average wholesale price Of commodf-
ties was about 120 per cent above
the pre-war rates. A steady increase
in the wage index took place. so that
during the last year it was 120 per
cent above the pre-war rate. AS the
cost of our production Is so largely a
matter of wages, and as tax returns
show that for the last year profits
were ample, 1t would naturally have
been expected that the prices Of
commodities would have increased.
Yet during this period the average
wholesale price level of commodities
declined from 120 per cent above the
pre-war level that it was in 1920, to
only 81 per cent above the pre-wa-
level in 1925. Thus, as a result Of