Milford chronicle., 1937-11-19
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W( JAMES PeEsroN

Washington, if it really tried
ought to be able to give the kiddies
some worthwhile lessons in how
ring around the rosy" should be
played. But one influential Inner
/; circle" economist-who claims to be
the only one who year ago foresaw
the present business recession-sees
flaws in the game as Washington
plays it. Listen to his summary:
We set out to do something for
those who live in shacks and don I
have enough to eat and wear. So we
put them on relief. Then to get the
money we levy new taxes. And
naturally we get an increase in
prices. So it costs us more to feed
the needy and we have to levy higher
taxes.
Take the farmers. We try to
help them by seeing that they get
more money for the things they sell.
We raise prices of farm goods.
THE prices get so high that fac
tory workers can't buy farm goods,
so we think up an NRA or wage
hour bill. And We raise the wages
of factory workers. Then the prices
of factory goods go up so the farmers
can't afford them. And we have to
raise the farmers income again. And
so il goes-ring around the rosy.
There is another group that we
seem to be forgetting about. Add the
six million farmers and the eleven
million factory workers together.
They make seventeen million, less
than a seventh of the population.
"If we keep boosting factory wages
and farm income long enough, the
law of averages says that some day
we must reach a happy medium for
them. But meanwhile what happens
TO the fellow who is in neither group
the white collar man? The great
middle class? The first thing he
knows, he can't buy either factory
made or farm-raised goods.
Unless we stop this ring around
the rosy business and let things i'm
prove naturally for a while, we're
going to end up with all our farmers
and factories having a lot OF high
priced things they can't sell, and
with a hundred and ten million peo-
pie on relief"
If this economist had wanted TO
cite an illustration, he might have
chosen one that is drawing particu-
lar interest here now. 1t involves
the railroads and the coal industry.
Railroads granted siZeable wage !
increases to their employees recent |
~. The Interstate Commerce Com
mission, convinced that the action |
was necessary to avoid bankrutcy, |
granted the request of the railroads |
Ior freight rate increases totalling |
S47. 500 900 annually. That won't
cover half the increased railroad
payroll cost.
On the other hand, Congress
.reated the National Bituminous Coal
to save" the coal in
lustry. So the Consumers Counsel
or the Coal Commission steps for
ward and announces he will ask
of the freight rate
Increase.
The coal industry, he says. will
,ay 27,000,000 of the $47 100000.
What he means is that coal con-
umers all over the country will pay
higher prices for their delivered
:oal. Since it will cost more, they
will try to burn less and the rail-
Dads will have less to haul and the
oal miners will have to dig less out
f the earth.
Sounds. like that song everybody
ot so tired of, remember? "The
fusic Goes Down and Around"
They're still squabbling about
hat mural in the Postoffice Depart
lent building here which shows In
ians pollaging a stage coach and
nude women.
John Collier, Commissioner of In
ian Affairs, says 1t is obvious from
ther things in the picture that the
indians hadn't had time to tear the
lothing from the women, SO the
-omen must have been riding along [
aked "and the Indians scalped
hem for indecency." II
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