The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-11-01

Reports in the capitalist press as
sert that the general opinion at the
institute was that 'unless better
price can be obtained for the pro-
ducts, it will be necessary to revise
the wage schedule"
Admit General Depression.
Reports of discussions at the in
stitute brought out the fact that the
general decline in the industry had
been a topic of grave concern long
before the unfavorable character Of
the earnings of the United States
Steel, the Bethlehem Steel and the
Republic Iron and Steel Corporations
became public.
With unemployment setting in, the
steel magnates feel that they can with
impunity reduce wages even below
the present standards which are so
low that heads of families cannot
make both ends meet. In the steel
region whole families are forced to
work in the industries in order to OBJ
tain the equivalent of what one man
Ought to obtain, even according to the
4 economic laws of capitalism.
Future Looks Dark.
AS the stock market continues to
fluctuate and as each slight recov-
cry is followed by a worse decline
even the most optimistic have to adj
nit that depression is widespread.
The financial columns of the New
York Times, usually the last of the
Metropolitan papers to admit indus
trial depression, are filled with eau
tious warnings as they frankly admit
that they cannot prophesy favora
bic turn in the near future. That the
present depressing trend is unmis-
taxable is admitted and even the op-
timists are chided for failure to per-
ceive the impending crisis. However,
the Times admits that the question
of returning strength cannot be
prophesied.
"When it will be attained depends
Ion actual developments in
trade situation which is not less
perplexing because its present
trend has become unmistakable.
Many Warning Signals.
"That perplexity cannot be as
cribed to what Wall Street calls the
unaccountable suddenness with
which reversal of form has occurred
in trade and industry. No picture
of the seasons developments could
be more incorrect. The truth is
that practically every trustworthy
industrial indication was pointing,
as far back as midsummer, to dis
tinct change from the expanding
activities of 1926. Individuals who
saw and who correctly interpreted
these indications were waved aside
by speculative Wall Street, which
classed them either as people out
of touch with present-day cOndi-
tons or merely as bears on the
market But that is itself the rea-
son why, when Wall Street at last
and found itself confronted with
awoke with start from it's dream
certain stern realities, it should
have asked with bewilderment what
could have Happened overnight"
Worse Than 1920 Crisis.
That the present depression will be
worse than that of 1920 is plainly in
dicated by comparison of the devel-
opments then and now. In 1920 the
months of July and August produced
nothing to indicate the impending de-
preston, whereas midsummer of this
,.l,, ;,,I, +ol ta do
preston.
Nor can the present decline be con-
sidered mere reaction from the high
point of 1926, for the simple reason
that already production Is from 20 to
so per cent below 1925, the beginning
of the "boom" period. Steel, motors
and more than fifty other branches
are on the decline varying from 20
to as much as 60 per cent? while rail-
way loadings are from 7 to per cent
below that of last October.
News from London, Paris, Berlin
and other capitols Of Europe indicate
that the decline in industry is world
wide. From a state of feverish ac-
ton in the middle of the summer the
industrialists in the London exchange
are rapidly falling and dispatches
speak of the period of reaction set
ting in and states that "some anxiety
is expressed concerning the position
of the market during what may prove
to be critical period of liquidation"
Many losses already have occurred
and there is distinct note of pes
simism bordering on despair.
Most depressing also is the situa-
tion on the continent. The forma-
tion of the steel combine, consoli-
dating the German, French and some
British industries, resulted only in a
temporary revival and it is now adj
mitted that there are no orders in
sight to ensure even half time opera
ton Of European steel plants.