Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-29
MEN AND MONEY
BY NJ. s. Rukeyser.
(Copyright. 1920.)

Why are American wage scales
above those prevailing in other coun'
tries?
Thomas N. Carver. Harvard Uni
versity expert on labor economics. to
whom I made this inquiry suggests
the following answer:
LAS to the question will high wages
in the United State last. / have no
hesitation in answering in the affirma-
tive. However, this answer Is condi-
toned upon several things. 1t as
sumes that we are to continue our
present policy of restricting immi-
grafton and of trying to enforce the
prohibition law and a few other
things. If we should reverse any Of
these policies, the answer would nave
to be In the negative. There Is no
particular reason to anticipate that
we shall reverse our policy of restrict
ing immigration. The working people
and others who are interested In high
wages hold that entirely IN tne'r
hands. They can vote themselves low
wages by voting for congressman and
others who are opposed to restrfc'
ton. They can vote themselves high
wages by supporting congressman
and others who favor restriction.
Prof. Carver, of course, also con-
siders skill in mass production and
management an important factor con-
tributing to high wages.
Wage Stability Seen.
The outlook for wages is tied up
with the prospects for business in
1927. Labor can hope for stability of
wage scales, but there seems TO be
little chance for marked general IN
creases during the forthcoming
months. AS one careful observer
points out: II believe resistance TO
demands for higher wages Will
strengthen, but I do not look for any
organized effort to lower wages.
The modern employer is willing to
pay high wages, provided he can
obtain low unit costs of manufacture
The maker of products on the basis
of quantity production, following
Henry Ford's lead. recognizes that
high wages are necessary to create
large domestic demand for mer.
chandise.
Frank A. Vanderlip. former presi.
dent of the National City Bank. has
defined prosperity as a condition re.
sulting from the full employment OF
labor at high wages.
In the recent cycle of prosperity
trade unions have been somewhat
weakened by the absence of organized
opposition on the part OF employers
to high wages.
Good times have to some extent
eliminated the acute discomfort on
which unionism fiourishes, and there
has been a substantial loss of mem
bership.
Alert unions have sensed the change
in conditions, and have attuned their
programs and policies to new op-
portunities and problems.
Should Increase Prosperity.
The more expertly managed Ameri-
can unions believe that the way to
prosperity is in increasing rather
than obstructin prosperity. The
American Federation of Labor Is on
record in favor of the introduction OF
labor saving machinery and other de-
vices OF scientific management. 1t
naturally expects labor as well as
capital to share in the benefits.
Unions like the International Ma
chinists' Union and the Amalgamated
Clothing Workers of America go q
step further and create machinery for
active cooperation with management
in the campaign to eliminate waste
and heighten the efficiency Of produc.
ton methods. Both unions employ
specialists who are in q position to
give management expert advice on
problems of management.
On the other hand, in England
unions are still afraid of the cofnpeti.
ton Of machines with cmanpower.
Neither employers nor unions are in
a frame Of mind to adopt American
methods Of efficient production. Ger
many seems moro ready for this
development than any other Euro.
pean country, and in recent months
has combed this country with expert
observers who are finding out in de-
tail how the Job is done.
1t is difficult to predict the extent
Of labor troubles in 1927.
If there is a slow-up in the boom
ing construction trades there may
conceivably be some local disturbances
when and IL wages Of some groups OF
workers, which now seem out OF line.
are revised downward.
Another center of irritation IL the
soft-coal industry. There Is likely TO
be a conflict when the so-called Jack
sonville agreement expires on March
81 next. The present agreement pro-
vides piece-work remuneration which
appears to be above the market rate
for wages. AS a result business has
been fast driving to non-union mines
which are not subject to the agree
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