Evening star., 1926-10-06
MEN AND MONEY
By NJ. S. Ruke,'ser
(Copyright. 1920

/ There is only one way Tor tne Oiu
| WOu1d. to meet the competition OF the
| New World. Making faces, signing
treaties or building up armaments
will not avail. The salvation OF ~
rome lies in adapting the American
commercial spirit and technique OF
| ma ss production It's own conditions
and opportunities.
| AS Nation, America will not con-
ouer Europe, and 1t has no deslre W.
| After the armistice America, as one
/ of the principal victors, eschewed the
, fruits of victory, declining the oppor:
! tunity to annex. territory or receive
| tribute in the form of reparations.
American economic ideas, however.
re, likely in the long run to conquer
the old ia shioned notions overseas.
prophecy is hazardous, but 1t rs
merely reporting the fact to observe
that American methods are alreao!
catching a foothold. The lnstallmeht
man is spreading rapidly on the con,
| tinept. particularly in France an"
Germany. The idea Of widening mar
kets through lowering costs tnrousn
mass production is also being sraspe'ti H.
When I was recently IN Lonaoli
was informed by bankers anu e'o
| nor,ists that. after the settlement OF
the coal strike, British employers VIII
| launch new program for the mou,
arnization of Industry and lndustrlal
met hods. For years progressive EN-.
Movers have recognized that tneA
cannot flourish without the introduc
tion of labor saving machlner!' an"
nev. technical methods. Labor unions
overseas have fought the substltutioh
of machinery for human eHort' Wnicli
the trades unions in this country iio,
welcomed as a trend whlch nelsh'Tne M
the earning power OF WORKERS,
fore taking the new steps employers
in England. anticipating a genera
strike. waited for a showdown Wl,n
lahor EMPLOYERS believe that aiter
tho coal strike labor leaders VIII DE-
come more tractable.
Employers Equally Reactionary.
It would be a mistake, ho"eyel'
to hold the unions wholly OF eea
mainly responsible for the pacnWan
trade policies. European enploS ~, e,o
have been equally reactlohalN' -,
were inclined to support the 1allac!
that the way to prosperity was o!
sweating labor, overlooking "na'
Henry Ford has taught other Amefl-
can EMPLOYERS, namely. that WORKING
mon are not only producers, but also
constitute the rank and file or the
consuming market. Large scale pro
d,Iction is not pra cticable unless hlsn
wages are widely diffused throughout
he population. British employers
are beginning to sense TINS lessol
in the abstract. but each lnulHluuai
is inclined to think the doctrine Is
good for the other fellow, but not
for himself
In England and the continent
nrosperity would be helped by ADAPT.
ing to a moderate degree the allegeo
extra vagance or higher standard OF
living that prevails in America: As
long as the effective wants or tne
the average man oversees are small
prosperity will be thWarted ana un-
ennloved individuals will menace the
national economy. A rising standard
of living creates a larger demand TOT
the output Of goods ana turns 'he
wasted hours of the unemp oNed INTO
productive hours. Excessive eAlidN-
agance Is a great danger, but under-
consumption is also disturbing.
over the long pull, American pros
periev could rest on firmer fOunda-
lions if other countries adopted our
conceptions of proper living stand
ards. For, in the present scheme OF
inequality among nations, our forelsh
trade is perpetually challenged bN
the lower prices made possible ny
UNDERWAY to labOrerS In competing
countries. Broadly speaking, we can
undersell the rest of the world IN
commodities in which skill IN mass
production and capitah and land are
important factors of cost, but our
nrices are higher for goods in which
human labor is the principal item
of cost.
Expression OF Fears.
The widespread references in the
European press and in speeches by
Europeans to the dangers in connec-
ton with the strength of America are
to a large extent the expressions OF
fears -- based on an inferiority
complex. If there is peace in Europe
during the next decade. we are likely
TO see an intensive making over Of
European factory technique, CONNER
cial methods and even advertising.
Merely to COPY the American system
would he futile. because blind lmita-
ton is always a second-rate procedure.
Moreover, conditions vary on the two
continents, and institutions to succeed
must he in cOnsonance with the
peculiar economic. political and racial
habits Of the country. Furthermore!
though American methods have prov
ed successful. they are far from per-
l..
know that they are In a transitional
staee-and are fast changing.
In world affairs we Americans face
the perils of the strong. We are
I.feared and hated. but our methods
are admired For self-preservatiOn
we need to retain our spirit of ad-
venture. our Willingness to expert
ment. our enterprise in uniting the
laboratory of pure science with the
executive chairs of the business office.
We need above all to treat labor fair
" and to cultivate the era Of good
feeling between employers and work
ingmen. Foreign countries are wait
ing for us to slip. and it is the job Of
American business leadership to keep
performance on the present high level
of efficiency--to continue to wage in
cessant warfare against economic
waste.
In foreign relations we Americans
want to see other nations strengthened
and restored. That Is the only view.
point that humane people can sup
port. Moreover. selfshly. we shall
| profit as exporters and as creditors
from a return of prosperity among
our customers and borrowers overseas.
America Is a menace only to the sur
vival of archaic ideas in industry.
against the practice of sweating labor.
against the economy of being penny
wise and pound foolish.
have recently returned from a sur
vey Of business and financial condi
tions in 10 European countries. and
the foregoing is based on first-hand
information.