The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1936-01-27
BY WILLIAM II. MURRAY
Former Governor Of Oklahoma

Former Governor of Oklahoma
(Fron an address deliUered before
the Association for Economy and
Tar EQuGlity. at Enid, OkldJ
Now, let us consider the cause
of this economic breakdown, for
an accurate knowledge Of the
cause will lead us to the proper
solution of the problem.
A solution based upon erroneous
premise logically leads to errone-
Gus conclusion; and herein lies
the fallacy of our present course
wherein we assume that the
pump needs printing" because the
leather in the valve has been
dried out-a false premise which
has resulted in our spending
MANY billions of dollars to pour
into the pump, without our getting
CONDENSATION out Of the pump.
In my opinion, the cause OF the
depres IN grew out Of these
causes:
/, It will be recalled that in the
midst of the World War and few
wears later, there was a period
when the chambermaids wore silk
stockings, and the unskilled labor
ers silk shirts. and made pur-
chases Of other things proportion
ately.
Labor cost rose; cost of consum-
ers' goods rose: house rents rose
beyond the power Of the tenant to
nav. growing out of too high q
cost of labor and products in the
building trades; the farmer was
getting So a bushel for his wheat,
and more, backed by q decree Of
the Government.
When the war ended the price
of wheat and other farm prod
nets took a toboggan slide, while
the prices Of labor in the city ana
the things the farmers had to buy
continued at the same price, COM
pletely destroying the equilibrium
between the price Of labor in the
cities and the prices in the coun-
try.
Depleted Reserve
This increased the use OF Labor
saving machinery. resulting IN the
wreck and bankruptcy OF the lar
mer.
In the city, labor and products
continued at the same price, but
purchases were fewer for lack OF
money with which o purchase,
causing a diminution in the sales.
We thought we were spending our
income when we were merely de-
uletine our reserve and impover-
ishing the country by the deple-
ton of its wealth. =,
The consuming public continued
to spend as long as they could get
hold of it or they had credit, so,
when the crash came, they were
left completely EN- p ty-handed,
without even a home to shelter
their heads; so it may be truth
fully said that the doctrine OF
"spend, spend" of the Spendthrift
was the first cause of the depreS-
sion.
Had the doctrine to "save, to
economic, to be thrifty, found
place in the minds of the PEG
pIe during the war;" when the
diminution of sales did come,
they would have had plenty to
have tided them over and buSi-
ness would have continued with
little diminutiOn.
It is sometimes urged that
high wages of labor will distribute
wealth, but I challenge anybody
to show me where low wages
brought as great concentration OF
wealth as when there were high
wages; in other words, when
wages are high is when there is
the greatest Capitalization OF
wealth.
In the era of high-priced labor
during the World War, and the
Civil War, were there the great
est number of billionaires and
millionaires made in the life OF
this Republic.
That is not an argument
against high wages, but to show
the fallacy of those who claim
that the way to distribute wealth
is by excess wages.
REFUSED TO WORK
When handled relief and
learned at the beginning Of
spring that farmers could not
hire those on the relief roll, I
dropped the wages from $40
to $3.50, and the first week 800
In Tulsa County alone, quit;
some few went out and got
Jobs Of their own.
This illustrates the correct
policy that relief money should
not be paid out in wages quite
as high as the prevailing wage
Of the community, and then just
enough to keep them. BY this
means you can learn to discrim-
mate between the needy unem-
ployed and those that are not.
To pay excess wages, in the
end destroys the labor market
which must be normal to en-
courage previate enterprise and
investments in them, to absorb
the unemployed.
I want you to observe this
fact: High prices of labor never
did bring good times. High price
of labor is the result of good