Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-21
RESULTSOF TRADE
WAR DENOUNCEDBy
INDUSTRIAL LEADER
SpreckIes Declares Losses to
Humanity viii Exceed Those
of World Conflict.
SAYS ANTITRUST LAWS
HIT PROSPERITY PLANS
Price Cutting Causes Improbable
Business and Lower Wages,
He Asserts.
BY JOHN r. SINCLAIR.
peeial Dispatch to The Star

| OboOldA A|AcphbCu W \ nc 6LhEs
NEW YORK. June 20-Rudolpf
| Spreckles, New York sugar refner, re-
| plying to q question as to his views
regarding business improvement, made
| some statements which are worth seri-
GUS consideration.
Il have no information" said Mr.
Spreckles, which indicates resumption
Of business activities along constructive,
that Is, profitable, lines.
I'VE are travelling in a vicious circle
Decreased demand for their products
forces industries TO curtail production
Reduced production increases the unit
| cost Of each article produced because
fixed expenses must be charged against
a lesser quantity. Less labor Is required,
therefore many employees are discharged
or are obliged to work on part-time
| basis
"A price cutting has resulted in I'M
profitable operation in most industries,
therefore wages have been reduced by
direct cuts or by reducing the work
days of employees and, in either case,
the buying power of employees has been
severely curtailed in addition to the
enormous loss of business due to our
unemployed having no available means
with which TO buy.
Commercial War Losses.
Industrial leaders cannot restore
prosperity because our antitrust laws
forbid concerted action by members OF
any. industry.
"The losses incurred during the
World War;" continued Mr.. Spreckles
will appear to be trifiing in amount
when compared with the losses sustained
by reason of the present commercial
war. And may add that human suf-
fering among the masses today is worse
than it was during the World War
Those who remained home then were
employed and we'll paid. while our
soldiers who faced the enemy were fight
ing for cause they believed to be in
the interest of humanity.
Both our civilian population and
those in our Army and Navy had the
benefit of governmental support with
ment refuses to accept responsibility In
crisis far more destructive OF life and
the happiness of its people.
For the past two years our people
have been assured at frequent interval:
that the turning point was just around
the corner. At no time was there justi-
fication for the optimistic statements
when issued, as Is easily shown by sub
sequent events. Not q single con-
structive act has been taken by either
our private or public leaders during
this long period of human suffering.
I'VE will soon be approaching an
other Winter, and, unless a con-
structive program be promptly formu-
lated, am convinced that rioting by
the hungry. with bloodshed and de-
struction Of much property this Win
ter, Is likely to occur.
Obligations TO People.
"Th4 victors in the present CONNER
cial war are likely to find themselve:
in no better position than were the
victorious allies in the World War. In
fact their position may be worse. be-
cause they cannot collect PREPARATIONS
from the concerns they have destroyed
and the people will not permit them tc
regain their losses by charging exces-
Sive prices.
Ruthless competition cannot be
stopped by any power other that the
National Government Not until that
upon will there be much hope Of q re.
turn Of prosperity, in my opinion.
1T is silly for any one to say there
are indications of improvement unles,
those who utter such statements car
point out what the favorable signs are, ;
said Mr.. Spreckles in conclusion. I'm.
creased business activities carried on al
loss would merely hasten the time
when a total collapse might occur.
There is no excuse for those holdins
positions of responsibility In private OF
public life disregarding their obliga.
tions to the people as q whole. People
the role Of leadership and personal ad.
vantages continue to ignore the dis.
tress Of the multitude"
Gold Stock at Record.
Gold keeps rolling into the United
States. Germany Is chiefly responsible
When will the movement end? The
monetary gold stock of the United
States has again reached a record fig.
ure. Last Wednesday it stood at $4,893,.
100000, a gain OF $90,000,000 for Tho
week.
This large increase in gold stock In
New York is directly traceable to the
financial and political difficulties tn
Germany, which have caused q drain
on Germany in recent weeks by foreign
depositors.
1t seems q strange commentary or
fiscal policy that with half the world
so badly in need of gold, the United
States and France continue to gather
more Of the metal, so that trade keeps
moving down hill, instead Of up.
When everybody is crying out fol
world conferences Of one kind or an
other, some responsible leader should
suggest the need for gold conference
A redistribution of the worlds gold sup
ply Is the most urgent need today.
The Tax Burden.
Lionel D. Edie, New York economist
made one or two suggestions to the
I Indiana Bankers Association which
deserve serious study. He urged Indiana
bankers to insist on at least a 20 pei
cent reduction on all taxeS-State, local
and Federal. But that was not enough
| It constituted only one side Of the
picture.
"At the same time" DR.. Edie said
shift the tax burden over to the peo-
pie who have benefited from the col
lapse Of the commodity price level
namely, the holders of fixed interest
or fixed dividend securities, the owners
Of mortgages, bonds and preferred
stocks"
The battle lines are forming now for
the next tax fight. It consists in lifting
the unduly heavy burden from real
estate and redistributing the burden
more evenly on the fortunate holders
Of personal property. This Is the Edie
suggestions q good one.
The world Is waiting for the sun
rise-that Is one reason why the sun il
L. A.