The Daily Alaska empire., 1933-08-12
Today and Tomorro,v
By WALTER LIPPMANN
Agai1l: Look Out

UlIlc we llllu JlldL lIOll dIlQ SLeel prices, as measured by a com posite index fell less than 20 per cent and finished steel about 12 per cent.
 In other words, here is a basic industry which has met the de- pression by reducing production and wages far more than it has reduced prices. l> mas chosen to do very little business at rela- lively high prices, instead of seek ing to increase business by drasti- cally lower it's prices.
 Now, Miss Perkins is entirely justified in arguing that this in- dustry could in the past have af- forded, and no doubt can today afford, to increase the returns to labor. But in planning for a gen. eral recovery is the Administra- ton justified in assuming that 1t needs to put it's chief emphasis on steel wages paying little atten- tion to the price of steel? Is 1t really moving toward it's own ob- jective if it merely jacks up the earnings of labor in steel and al- lows the industry to add the addi- tional costs to prices which arc already at artificially high levels?
 I hope that no one will think I am arguing against higher wages in the steel industry. I am not. I am raising the question wheth- CT the already high prices of steel, which this code will make it cas- fer to maintain and perhaps to raise, ought not to be the major concern of those in Washington who are seeking to plan for recov- cry. Let us remember that. the focal point of the industrial de- pression lies not in the consumer industries, in textiles and boots and shoes and such goods. They are doing very well indeed. The deep depression is in the capital goods industry. The price of steel is of vital importance. It is no less important to the public works program. If we are to bring new purchasing power into the mar kets in truly impressive volume it is absolutely essential that the capital goods industries should be expanded.
 For from this point of view there is a greatrdifference between, let us say, the textile industry and the capital goods industries. The textile industry cannot keep going unless goods are continually bought and used up, and that means that production must keep pace with immediate purchasing power. But capital goods indus tries, replacement of machinery, new machinery, building, and pub lie works, employ labor which not only buys textiles and other con- sum goods, but produce products which do not immediately have to be sold and used up. They ere ate effective purchasing power fas- ter than production of consumer goods, and the more reaching and long term the projects the greater the effect.
 It is, therefore, a matter of fun damental importance that the price of steel should not be over looked. I do not venture to have an opinion as to whether steel prices ought now to be reduced. But it does seem clear to me that they should be examined at least as carefully as wages and hours, and that the steel code should be scrutinized with very great atten- tion to see not merely what kind of control over steel prices it pro- vides, but also to see what pros ,, poets it holds out to all the other industries dependent upon the price l of steel. Because there are no convincing signs that the Admin istration is doing this, it may be in order to raise another storm signal and ask it not to approve the steel code until prices as well ] as wages have been considered. v York Tribune Inc.