The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-03

OF the current efforts to arrive at a passable
~ condition of social justice and human we'll
being, Techoncracy, Socialism and Labor Union
ism are among the more prominent. The three
authors of the books here reviewed have taken
a leading part in one or another Of these move
ments.
While Professor Rautenstrauch of Columbia
never was identified with the more vocal or ex-
uberant apostles of Technocracy, he was one of
the wise counsellors of the movement and was
responsible for much Of its data which was truly
impressive and must one day or another, be
reckoEed with
In the present little volume he devotes him
self primarily to the alarming growth OF over
head costs in contemporary capitalism and its
relation to the depression and possible recovery.
Overhead costs according to Dr. Rautenstrauch,
cover the chain of events which leads to the
final disposition of production goods, which, as
you know, may be either farm or factory goods
or the primary sources of power transportation
and communication.
Since the World war this increase OF over
head costs has been amazing
In 1917 when producers got one dollar for
making goods overhead people got another dol
lar for their various services leading up to the
sale of the goods to the consumer But in 1882,
when producers got one dollar, overheaderS got
81 80" Even the depression, when production
was falling off, overhead costs to the nation in
creased by some 10 per cent.
PROFESSOR RAUTENSTRAUCH assigns re-
Il sponsibility for this ominouS change in our
national life to the Liberty Loan drive in 1918
and its subsequent effects upon American psy-
chology:
I'm that year we began to create a nation not
of consumers, but Of investors and spectators.
1t began with the Liberay Loan drive. Tens of
thousands of men and women turned bond sales
men. Patriotic citizens by the hundreds of thou
sands poured money into bonds so that your ma
tional plant could wage war to make the world
safe for democracy and international bankers.
The technique worked perfectly. Then along
came other drives. Investment bankers began
underwriting securities by the carload. American
were urged to invest money in German railroads
and Florida Shore-front lots; in Texas oil wells
and Indiana retail stores; in anything and every
thing, from shoe stores to republics, from rubber
tires to Rivieras- by-the-sea."
Suppose this transformation had not come
about and the relationship between production
and overhead costs had remained as in 1917.
What would be the result?
We would need II 10000 more producers and
no more overheaders. We would have an in
crease in producers income OF Sc per cent over
that of 1882. We would have an increase in
farmers income of 216 per cent over its 1882
level
Compared with this, even the most rosy re-
suits predicted from the New Deal fade into
triviality And the New Dealers will do well to
study DR.. Rautenstrauch's book with care and
open mindedneSS. He has put his finger on
something more important than killing little pigs
blowing under cotton and coaxing Weirtons.
TN my opinion this is by far Norman Thomas
l. most important book and that is no faint
praise. He reviews with sanity, balance and
plenty of quantitative data the staggering record
of what the United States of America might be
if we utilized our resources and mechanical
equipment intelligently and fairly. This he con-
traStS with what it is today. Farmers, miners,
industrial workers, consumers all come in for
consideration. Whether one agrees with Musso-
lini, Stain Thomas or President Roosevelt as to
the solution of our economic crisis this book will
give him an almost unrivalled statement and
analysis of what the task really is.
Mr.. Thomas solution is Specialization without
the loss of all human liberty-an avoidance of
the futility of non political labor unionism and
of the bureaucracy and oppression of Russian
Communism.
Professor Commons brief autobiography is
both interesting and highly Illuminating. He
has been the intellectual leader of American
labor unionism He has lived through the length
of developed American capitalism He has had
prominent place among American acad-
emicians. He has been a member of brain trusts
state and national, for generation.
All of this he tells us in a quiet and self
effacing manner which makes the book classic
in the history of human modesty
Readers will get from it an unusual insight
into American history and culture, exposed from
almost as many sides as in Lincoln Steffen's
much more volunlinous work It will surprise
many to learn that that valiant champion of
American labor rights once worked for Ralph
Easily But the American Civic Federation was
something different in those days over thirty
years ago.