Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-22
Purchas sing Power.

Henry Ford holds that "the only
thing which should be high priced in
this country is the man who works. ="
And Mr.. Ford is backing up his belief
with an immediate increase in the wages
of all his thousands of employees. He
believes further that the way to in
crease business is to increase the
purchasing power of the American peo-
pie. That is common sense. He pro-
poses that this shall be done in two
ways-first by putting additional value
into goods or reducing prices, and Sec
ond, by increasing wages.
The statement issued by Mr.. Ford
after he left the Presidents conference
yesterday, which was attended by more
than score Of the leading industrialists
Of the country, is full of suggestions
that may well give the people and par
ticularly the business men something
to think about. Despite the fact that
Henry Ford is rated one of the richest
men Of all time, he still believes that
hard work is an essential to real BUSH
ness success and general prosperity.
The promise of quick profits from specu-
lation does not appeal to Mr.. Ford. In
his diagnosis of the situation which
has developed in this country in the last
few years, eliminating in a crash of
the stock market, Mr.. Ford declared:
First, there was a serious withdrawal
OF brains from business. Men who
would otherwise have been working out
better designs for commodities and bet
Ter methods Of manufacture and plan
ming to put more value into their prod
ucts were drawn of from the work
they were most fitted to do bv the
promise Of quick profits in speculation /"
Mr.. Ford softens this indictment of
business brains by saying that now
tney are returning to the jobs for which
tney are htted. Indeed, there is a snirit
OF optimism in Mr.. Ford that refuses
70 down. The country in his opinion
has passed through a period of specula-
ton and is now turning back to the
more solid basis Of work and produc-
ton. 1t is lesson which millions Of
Americans may learn with profit to
themselves.
In the opinion Of Mr. Ford, the worst
thing that could happen in this country
would be reduction of wages to work.
ing men and women. The workman is
worthy of his hire in the opinion of Mr..
Ford. Prices, not wages, should come
down. This may be revolutionary.
Usually drop in wages has preceded
drop in prices. It is clear that if
| wages come down, the purchasing power
OF the public Is lesSened. On the other
hand, II wages go up, the purchasing
power mounts with them. Mr.. Ford's
proposal, II carried out, that wages
should be increased in the face of the
stock market slump may have the de-
sired effect Of stabilizing conditions TO
a greater extent than any other remedy
put forward. 1t is equally necessary
that the workers be kept employed,
which means added production. This
production must be consumed or there
| Is break in the chain, and the way to
have it consumed is to put money into
/, the pockets of the general consumers.
The announcement by Mr.. Ford that
he is going ahead with an increase in
the wages of his own employees is an
encouraging factor in the present situa-
ton. The declarations by the other
great leaders in the business and manu-
featuring world attending the Presi-
dents conference that there wosld be
no decrease In wages are Of great aid
| too.