Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-19
MEN AND MONEY
Copyright. 1927

Will Europe's economic comeback
threaten the continuance of high
wages in the United States?
Will the arrangements by which
Old World belligerents pay repara-
tions and interallied war debts in
merchandise reduce the demand for
workers to man American factories
in the years that lie ahead?
These questions become more in
sistent and immediate as Europe re-
turns to normally and restores sound
currency systems.
l asked a number of the leading
practical and academic authorities on
labor economics to give their answers
To these riddles,
William Green, president of the
American Federation of Labor, said:
II do not believe the competition
Of Europe will reduce American
wages, because high wages are an
essential part of our method of
operation. The competition will not
wages in the United States, but be-
tween efficiency in Europe and
efficiency in the United States.
Il do not believe that the protec-
tive tariff is a factor in high wages.
1t is an industrial factor which may
or may not result in high wages"
Might Raise Wage.
T. N Carver, professor of eco
Monies at Harvard University, re-
piled: II am inclined to think that
increased competition from Europe,
when that continent returns to nor
NAL. will tend to raise rather than
depress American wages in general,
though it may tend to depress
wages in certain special occupations.
In general, Europe is our best custom
er If she increases hr production,
of course, her products viii in many
cases compete with ours. Neverthe-
less, she will not only increase her
selling power but her buying power
as well. That is, she will have more
goods with which to buy other goods
from the outside. In general, | am
convinced that the more prosperous
Europe. becomes the better off we
shall be on the whole, though it may
require some readjustment to take
advantage of Europe's increased buy
ing power as wen as to avoid the
disadvantage of competing with her
when she increases her selling power.
II not only do not think that pro-
tectivt tariff is necessary to maintain
high wages except in certain special
lied industries, but l think that it is
a factor in keeping real wages down
for a country as whole"
Henry r. Saeger, professor of &c
onomics at Columbia University,
said: II believe that European COM
petition in neutral markets will be
a factor of increasing Importance
and that it's tendency will be to cause
recession of American business,
which may have an unfaEorable eff
feet on wages until we are readjust-
ed to the new situation.
II do not believe that a protective
tariff is necessary to the maintenance
of high wages, but, of course, any
sudden change in tariff would react
unfavorably on business and on
wages during the period of readjust-
ment."
Lower Cost of Living.
Paul Fl. Douglas. labor economist.
University of Chicago, said: las
long as productivity keeps up and if
prices are maintained we need have
little fear of fall in wages, nor am
| afraid of the payment of the Eu-
ropean debt as a possible menace to
real wages. 1t may lower money
wages. but 1t will also lower the cost
of living, and hence real wages should
not be reduced, but should, as a mat
ter of fact, increase.
On the other hand, Leo Wolman.
economic adviser to the Amalgamat-
ed Clothing Workers of America, in
replying to the question thought
that increased competition from Eu-
rope might result in some slight
lowering of wage rates and possibly
Of earnings"
The prevailing view among
thoughtful individuals is that the
world has become increasingly in
terdependent.
The Strengthening of one member
Of the family of nations will require
temporary adjustments elsewhere,
but the ultimate effect will be to
heighten world prosperity.
AS a creditor nation of increasing
proportions, America is interested in
movements which strengthen the
solvency of its debtors.