The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-01-13
War Debts. Wages. the Tariff

Without commenting on the many arguments on
both sides of the controversy and aside from the
justice Of Cwar debit cancellation, am firmly con-
WINGED that it would be good business for our gov
to initiate reduction in these debts at this
time"
This statement is made by Albert H. Wiggin,
chairman Of the board Of the Chase National bank,
in his report to the banks stockholders meeting to-
day
Avoiding, as Wiggin does, discussion of the argu-
ments that always arise when such cancellation is
proposed. it is possible to agree with him that 1t
might be good business.
Money being spent in paying of the war debts to
US might be spent in buying our goods instead and
thus furnishing labor to men now unemployed.
Doubtless some part Of our prosperity in the days
that preceded the present depression could be traced
to the very radical reduction in these war debts
made from time to time
The present status Of Frances debt to us amounts
to so per cent cancellation; Of Italys an 80 per
cent cancellation.
The American taxpayer is paying that Cancelled
portion It is not likely the American taxpayer read
lily will take over the remaining 40 and 20 per cent
certainly not while these two countries continue to
lavish money on ornaments and while the collection
of Preparations from Germany continues.
Wiggin says other interesting things. He says
at is not true that high wages make prosperity In
stead, prosperity makes his wages" Many indus
tries he thinks reasonably may ask labor to ae-
cept moderate reduction designed to reduce costs and
to increase both employment and the buying power
of labor"
This may SEEM at first glance, something like the
ancient argument to which came first, the hen or
the egg Labor creates all wealth. says labor Capital
furnishes all jobs, says capital.
Well. of course, there was labor before there was
capal-but that is getting into debate that will get
us nowhere in the present industrial emergency
Virgins suggestion would get us somewhere. 1t
would get us farther into industrial depression in our
opinion.
The news came from Detroit Saturday that the
Ford plants are taking on $4,000 more men. The re-
port was not that these men are being taken on at
reduced wages If that had been the report it is
our belief that instead Of sending thrill OF nope
throughout country it would have chilled the most
optimistic It would have carried the direct sugges-
ton that American labor must prepare now to travel
back down the long path up which it has been strug-
Cling so many generations
High wages did not cause the crash in the Arneri-
can economic structure. Money spent for specula-
ton not money spent for wages was the cause, or
at least an important cause. And wage cuts now VIII
not bring prosperity back.
wiggin is on sounder ground in telling his stock
holders that among the causes for the depression the
foremost is 1.-THE impediments to international trade
through excessive tariffs and other restrictive policies
He should develop this idea, for it is possible to do
something about the tariff. Rates can be lowered
The congress elected in Noyember-and elected partly
in protest against the higher tariff LAWS likely to
meet In extraordinary session this spring. Wggn
and his stockholders might well be thinking about
that