Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-26

| of Economic Research Is interpreted
by Mr.. Hunt as a description of thu
levels on which the American people
live, explained by recent changes ir
manufacturing, construction, tranSpor'
tation, marketing, labor, management
| agriculture and finance.
In q section entitled "a Bird's-eye
View" Mr.. Hunt summarizes the find
| ings of Prof. Wesley G. Mitchell, point.
ing out that what has happened ir
the United States during the past
decade is a phase in the progress OF
the industrial revolution Influenced by
the sudden outbreak of the World Wal
peace"
Decrease In Populations
Regarding the decline In the birth
rate and the way In which 1t has raised
the standard of living, Mr.. Hunt OBJ.
| serves:
"a reduction in the birth rate ha.
been going on during our period In
most OF the States OF the Union. The
birth rate and death rate changes and
changes In migration reduced the av-
erage annual increases of population
from 1900, 900 in l920-1s25 to l,S45,.
900 in 1925-l92S. y
This retardation in the. growth Of
our population affected the whole socia]
situation. For one thing, 1t was q fac.
tor In the successful resistance Of trade
unions to the drive to 'liquidate labor
in the depression of 192O-1921. Price.
OF labor were cut, but not cut as much
| as prices OF consumers goods, and when
employment increased wage earners
found themselves in possession Of rela-
! lively large purchasing power. In most
periods OF prosperity wage rates on the
rise lag behind living costs. That the
reverse Is true in our period must be
| aScribed IN part to the relatively SLOW
increase in the number of Job hunters
Moreover, 1t seems sound to aScribe q
part OF our gains in technical efficiency
| to the high price of labor.
Had there been no reduction In
birth rates and no restriction of emf
grafton, the United States would con-
tain several millions more people, and
these would probably be producing q
greater volume of goods, in spite OF
more unemployment and a less ad-
vanced state of industrial technique
The national income would be rising
faster than 1t Is, but per capita income
would be growing more slowly.
We must conclude that Americans
prefer to raise the. economic level of
average life rather than to rnaxim.Se
national life"
Science and Changes.
Commenting on the relation OF
science to economic change, Mr.. Hunt
writes:
The nineteenth century. saw a great
increase in the numbers and spread of
populations OF European stock and an
increase IN material prosperity made
possible by the application of science
to the work OF producing, transporting,
manufacturing and distributing goods.
BY no means all of this increase in
efficiency took the form Of q net gain
In livelihood. Men had the possibility
of raising their standard of consump-
ton, of reducing. their hours Of work,
Of giving their children more educa-
ton and Of increasing their numbers.
They did all four in part.
THE pace at which the sciences have
grown and at which discoveries are
applied keeps changing. In any given
decade the ups and downs mean that
some parts of the economic mechanism
are being made over while others are
growing steadily and still others are
languishing. The growth Of industry
as whole has been more steady than
the growth Of its parts"
Effect Of War.
In reviewing the effect Of the war
and the sudden return OF peace, Mr..
Hunt writes:
THE gravest check which economic
progress has received since the indus
trial revolution was inflicted by the
World War. All the great nations
which lead in science and industry
industry and trade to produce maxi
mum amount Of military supplies and
a minimum of civilian goods. In in
dustry and finance there were enormous
waste and confusion. Finally, the war
carried of in round numbers $4,000, 900
modified men,, and is further to be
| charged with a large share of RESPONSE
bility Tor some 100000 deaths from
influenza and other epidemics.
our economic position greatly i'm
proved, in comparison with Europes,
during the war, more because Europe'S
losses were staggering than because
our gains were spectacular.
With the: return of peace Govern
ment controls were thrown Of. After
some hesitation a business boom began
in 1919, due in part to demand for
American goods to foreign countries.
The value of shipments 10 Europe
, Is per cent higher than the precedine
! record, and double the money value in
| any year since Domestic demands were
scarcely less keen. A runaway market
for industrials developed on the New
York Stock Exchange. But 1919 was
poor year from the standpoint of pro.
duction; crops we're good, but in mining
and industry the record was bad"
Employment Figures.
Mr.. Hunt mentions that by 1921 the
number of unemployed surpassed all
previous records and that buying fell of
by $500, 900 900, that other countries
were suffering likewise and our exports
dropped So, TOO, 900, 600, or IS per cent
below 1920; that the balance of the
proflts of corporations fell from $4,000.
600, 900 In 1919 to- less than $500, OOO, OOC
| In 1921. 1850. =
| Agriculture, Mr. Hunt points out, has
suffered greatly from foreign conditions
Reckoned in physical units, our agri-
cultural exports remained above pre-.
war levels in the years 1922 to 1927, but
fell below the levels TO which farmers
had adjusted output in 1920, and tc
| sell these had to accept low prices.
How the United States has managed
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