Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-22
FORD HOLDS WAGE
INCREASES NEEDED
Announces General Increase
for All Workers Employed
by Manufacturer.

Visiting Washington at the invita-
ton of President Hoover, he sat in on
a three-hour conference of industrial
leaders at the White House and then
issued a previously prepared statement
OF what he thought ought to be done
to counteract TIE stock market fall.
Then rushing uptown for a hasty
lunch. he returned to the White House
for q brief talk with the President, and
as he was getting into his light over
coat before starting back home he
Smiltngly made his wage increase an
nouncement to couple of inquiring
White House newspaper reporters.
Raise Basic Scale.
I'VE are going to increase the basic
wage scale OF our employees" the au-
tomohile manufacturer blandly an
nounced
"whenP" he was asked.
Immediately"
How much?"
"Oh, It will be general"
will it be as much as 10 per cent?"
We know the amount but II has to
be worked out in detail; but we are
increasing wages. That's plain enough
isn't it?"
Mr.. Ford had given wage increases
as one remedy in the prepared state
ment which he and his secretary dis
tributed at the White House after the
general business conference.
He also had some other remedies for
the situation. One was that business
brains get back on the Job and let
the stock ticker alone. Another was
lower prices for commodities.
Everything Too High.
Nearly everything in this country
Is too highly priced" Mr.. Ford observed.
The only thing that should be high
priced in this country is the man who
works." he added. Wages must not
come down, they must not even stay
on their present level; they must 20 up.
And even that is not sufficient of
itSef-we must see 20 it that the in
creased wages are not taken away from
our people by increased prices that do
not represent increased values. The
country gains no benefit by letting the
working man earn an extra hundred
dollars and then taking it away from
him again in increased rents and A
rise IN prices generally. To make wages
better, and to keep prices down REQUIRES
that business men come back into busi-
nesS-aS many are doing since the
stocks came down."
The 66-year-old manufacturer was
IN flne fettle and greeted the other
business men here for the White House
conference in jovial mood. The outlook
Tor business appeared the least of his
worries.
"They" Close Plants.
Asked about reports that his Kansas
City plant had been closed Mr.. Ford
said:
"Oh, / thought it was the Denver
plant they were closing up" he said,
making 1t clear that the they referred
to the originators of the reports.
You know we closed the Washing
ton plant for two or three days q couple
of weeks ago, but we didn't hear much
about that" he added, as he smilingly
dismissed the reports of general curtail-
Tnent of activities In his factories.
Mr.. Ford issued the following state
ment:
THE first thing to do is TO correct
the impression that the present condi-
ton of affairs is due to the stock mar
ket. Collapse of speculation may have
been the occasion of a business hesita-
ton, but it certainly was not the cause.
The stock market does not make pros
perity, but prosperity Is absolutely es-
sential to such an imitation of values
as we have seen during the past year.
When an inflated stock market breaks
1t does not necessarily carry general
puShACoC 0OWh WAOAI Dub WACu BCh~
eral business declines, 1t invariably de-
fiates the artificial values of the stock
market. That Is what happened. 1t
was only the temporary diversion of
business mems attention that prevented
them from seeing what was happening
It Is now clear to all that the real ex-
PLANTATION of the present situation is not
to be found In recent stock market his
tory, but in recent business history.
pIlt lat the rYlhlfC Indaratand that the
stock market cannot permanently affect
us, either good or bad, and the way is
prepared for constructive views.
Business showed some decline even
while speculative values were at their
height, and the reasons are plain. First,
there was serious withdrawal Of
brains from business. Men who would
otherwise have been working out better
designs for commodities and better
methods OF manufacture and planning
to put more value into their products
were drawn of from the work they
we're best fitted to do by the promise of
quick profits in speculation. This was
more serious for business than most
people are likely to realize have often
said that We need the experience and
Judgment Of men in middle-age or
older. and when this is Withdrawn for
term business feels 1t.
Pass Purchase Power.
Another reason is the American pro-
duction had come to equal and even
surpass, not our peoples power TO con-
sumo, but their power to purchase. THIS
is not the same thing as overproduc-
ton Of goods; it is undersupply of pur-
chasing power. OVerproduction can
never occur until every need Is sup
piled, II the first need Is the need OF
money. Money in the peoples hands
represents purchasing power. In this
country the purchasing power Of the
people has been practically used up, and
still they have not been able to buy all
that they must have. I, therefore, sug-
gest the need of increasing the pur-
chasing power OF our principal Gus
toners-the American people.
This may be done in two wayS-irst,
by putting additional value into goods
or reducing prices to the level Of actual
values, and, second. starting a move
ment to increase the general wage level
Nearly everything in this country is toe
high priced. The only thing that should
be high priced in this country is the
man who works. Wages must not come
down: they must not even stay on then
present level; they must go up And
even that is not sufficient of itself. We
must see to it that the increased wages
are not taken away from our people BY
increased prices thaL 90 not represent
increased values. The country gains nc
benefit by letting the workingman carr
an extra hundred dollars and then TAX
ing 1t away from him again in increased
rent and a rise in prices generally. Tt
make wages better and TO keep price:
down requires that business men come
back into business. as many are dolnt
since the stocks came down.
There is no startling. mtraculou
= Dc II