Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-01-01
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us, has been the accomplishment of
industry in maintaining a relatively
high wage level concurrent with low
production costs, resulting in high
domestic consumption power.
Total production toward the close
of 1925 was AZ per cent greater than
it had been at the low point of 1924,
although only 16 per cent more
workers Were needed to accomplish
this result. Their average real
weekly earnings are about 20 per
cent greater than they were before
the war, and about 7 per cent higher
than at the peak of high wages III
1920. 1t means for the nation as u
whole, a larger wealth of goods to
enjoy, and more capacity to enjoy
them. A full purse for the wage
Garner, with an ample supply of the
things he needs or desires at reason
able prices. These are the elements
of prosperity.
Improved Industrial organization
and administration, and the steadily
increasing use of mechanical power
are primarily responsible for the
lowering of production costs; and re-
duced cost per unit of production
has made it possible to maintain the
existing high wage level without in
creasing prices and in some cases
even permitting price reductions.
ct is the proper recognition of
this fundamental relationship be-
tween nigh wages, low production
costs and domestic consuming pow
er, and the application of the prin-
ciple involved, that largely deter
mine the degree of our future pros
perity. 1t will be n vital factor in
continuing our economic progress,
even in the face of increasingly keen
foreign competition, while maintain
ing our existing, or even higher
standards of living.
Europe is emerging from the
chaos of postwar conditions, and
her affairs are being stabilized. Great e
er economic stability will also be the
keynote of our national economy in
the immediate decades ahead of us,
if, and to the extent that, labor is
generally employed and content. Re
stricted immigration, steadying the
rate of population increase, is tend
ing to stabilize our labor supply. Con-
structive efforts on part of many
| employers are further helping to
stabilize employment. Lessened sea-
sonal and cynical fluctuations and a
fair wage will make for a more pros
porous and generally content wage
earning population.
'If there are any danger signals
ahead, it is that the improved con-
ditions.. together with our immense
gold reserve, aggregating some $4,-
1000, might lead to another period
of imitation, with all the chaos of
| skYroCketing prices. wage demands
and pyramiding of paper profits. Our
| extensive foreign investments alb
sorb but small proportion Of this
| reserve. The unprecedented, long
| sustained speculative rise in our
! security markets was n marked eX-
ample of one Of the effects OF an un-
usually large reserve of idle funds.
| "As Yet, really only a beginning
| has been made in the direction of
mechanizing industrial processes, n
| field affording immense investment
| opportunities The few individual
! industries which for one reason or
| another have been tagging behind
! since the war, may also accomplish
| much by profting from the example
! of others in lowering production costs
| through increased use of power.
| greoter merchanization and improved
administration.
"America today leads the world in
| industrial organization and states
, manship. We may face the ensuing
| year with great confidence"