Evening star., 1935-04-10
Sees Chaos From Present
Economic Leadership

70 the Editor Of The Star:
notice that another textile strike
Is impending as q result Of the an
nounced Is per cent reduction in
mill output, which means fewer hours
and less pay for the operatives.
OF course. you can't do anything
about cotton without running up
against a multitude Of interests, for
labor and agriculture are both in
volved, with all the intervening in
terests; and to satisfy these varying
interests is well-nigh humanity impos-
sible.
But there is, 1t strikes me, an utter
disregard of fundamentals by the pres
ent labor and farm leadership. At no
point is there taken into considers
ton by these leaders the fact that
sales resistance is increased every time
the price of a commodity is moved
up. The record shows that the gross
return Of the retail trade Of the United
States increased IA per cent last year,
but that the price level increased Is
per cent.
Now it does not appear to me
that it would be very difficult for the
leaders of the thought life Of the
people to get it across convincingly
that prices do not constitute wealth
or welfare. but. that goods. commodi-
ties or chattels, on the other hand,
dn houa hoorin0
the wealth and welfare of the Nation.
What good has the hog farmer gained
# he gets twice as much for his hogs
in price, but loses two-thirds OF his
sales by a buyers strike, such as Is
being formed by the housewives OF
the country against the purchase OF
meats? What good does a laborer in
the cotton mills Of the South gain by
| getting 35 per cent increase in pay
when he is forced to accept . reduc-
| ton of so per cent in time as re-
suit of curtailed production resulting
| from reduced consumption? The con-
clusion Is inescapable-he gets less
| than no gain; in fact, he loses.
Blu. that is the theory upon which
| the present farm and labor leadership
is based. Three million men work
ing for three and one-third dollars per
LAY means more of wealth and vel
| fare than one million working for $40
| per day. Upon this basis there Ia
some chance of establishing a market
with the 80 per cent of the peoples
of the earth who are undernourished
underclad and inadequately housed
But upon the basis upon which the
present farm and labor leadership il
conducted, there is not Chinaman's
chance of sufficiently enlarging the
markets of the world to consume the
products of the farm and factory.
Furthermore, there is nothing to be
gained by longer deluding ourselves
| in the belief that we are getting out
Of this depression, for we are not
An analysis, as before indicated shows
tnat there was less in volume Of re-
tail business during 1884 than in
1858. But an analysis of the credit
business of the country shows up even
worse than did the retail business
For instance, the banks of the Fed
cral Reserve System, which does three.
fourths Of the commercial banking
business Of the country, did $500 900. :
600 less business in 1884 than in 1888
though the deposits increased some
Sc, ,o00, ,000, 900. 1t is commercial loan,
that indicate business activity, which
fact, considered in connection with
the shrinkage of $500 ,000, 900 Of such
loans last year as compared with the
year before, shows unnistakably ir
which direction the business condition
Of the country is going. and no con-
ceiveble amount of argument or hooey
can make it otherwise. We are LOSING
ground in this fight on the depres-
sior. We must change our methods
or prepare for liquidation and chaos
JOHN w. HESTER.