Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1937-12-10
S|7DOWN1 STRIKE in
1888 TO END SLUMP
Babson Says Congress
Should Stop Taking White
House Dictation

PHILADELPHIA, Dec. 1O-During an
address here last night before the
Penn Athletic Club, Roger w. baoson'
statistical expert, said.
Perhaps can best describe the ex-
traordinary conditions today oy talh-
ing about Shutdown strikes. Inere
surely have been three of these our
ing 1887, each operated by an entlreiy
different group of people. These three
groups of strikers have been the prl-
mary cause of the present slump. 1et'
as an antidote for the poison, one more
sit-down strike may be needed 10
clean up the situation. I believe that
we will see another sit-down strike in
1888 which will end the present slump.
Let me tonight explain what l mean.
uD A Sit-Down Labor Strike
Every year has some outstanding
feature. In 1897 this was the slt-oown
labor strikes prevalent throughout
America The first of these was IN
the motor industry, followed Dy SIT
downs in various industries through
out the country. A year ago LABOR
was riding high and handsome. LABOR
in the spring of 1887 was enjoying
boom such as the stock market was
enjoying in the spring of 1879. LABOR
leaders, however, over-reached this
wear as the bankers Overreacned IN
1929. This labor sit-down strike was
very effective in forcing employers to
increase wages and in forcing Con-
gress to reduce hours. Labor leaders
have since learned, however, that no
sit-down strike will force the pubic
to buy goods.
During the past two years, labor mas
been enjoying a honeymoon along
with F. D. r. Both, of these money
moons are now errfor a while. 1888
therefore, will see fewer strikes, al
most no wage increases and many
wage reductions Unfortunately, 1888
NAV see more unemployment than was
witnessed in 1887. Labor leaders SO
scared employers this spring that
these employers ordered much new
labor-saving machinery. This new
labor-saving machinery is just being
delivered; but will be in full opera
ton during 1888. In the long run en-
ployment adjusts itself in connection
with increased production and new in
dustries; but in the meantime, the
workers suffer- In this case, however,
thew have only John L. Lewis to
blame. But whoever is to blame, these
labor strikes were the first cause or
the present slump.
(2) A Shutdown Investors Strike
The labor group was not the only
group which have used the sit-down
strike during 1887. My mother used
to say to me, when I was a boy IN
Gloucester, Massachusetts, that "even
worm will turn at last if it is abused
too much" Well, for some years Con-
gress has been abusing Wall Street.
No doubt Wall Street needed a spank
ing when the Democratic Administra-
ton came into power five years ago.
It, however, does no good to spank
boy or whip a dog too long or too
| much. It may do harm. Congress
overdid it's Wall Street whippings and
finally-like whipped dog-Wall
| Street just sat down in the corner dis
couraged and resentful. This has re-
tarded the sale of bond and stock is
| sues, hence preventing corporations
1IOul ScCu11lS 1u11uS LII CA1CfAS'AOAAo
and new industries.
| Yes, Wal1 Street has been on sit
down investors strike since last Au-
gust. AS result, many stock and
bond prices have declined tremend-
ously Confidence has been undeter-
mined and unemployment slowed up.
These investors strikes were the Sec
ond cause of the present slump. OF
course, both confidence and re-em-
ployment will be resumed some day.
Before this great Recovery Movement
has eliminated, you, therefore, should
see higher prices for stocks and COM
modities than you have seen yet in
1887. All sit-down strikes sometime
come to an end. My Wall Street
friends will soon get over their
crouch. The worst of their sit-down
strike is now over. Hence, I am now
a bull on stocks, commodities and me-
dunn grade bonds for 1888.
(S) A Shutdown Buyers Strike
Unfortunately, however, a third
group of people are now starting an
other sit-down strike. Mr.. John c..
Public and his friends are now on a
Shutdown buyers strike. Higher wages
and shorter hours ultimately result in
higher prices. When your wages are
raised 10 per cent, then your cost of
living usually goes up 10 per cent.
Too bad it is so, but no Labor Union
or Congressional legislation can
| change the multiplication table. There
| fore, when Mr.. John @. Public went to
| buy a new overcoat this fall he found
the price had gone up, due to increas-
ed labor and other manufacturing la
Dor and other manufacturing costs.