The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1937-03-22
THE DANGERS OF INITIATION

Mariner 5. Eccles. chairman OF the Fed
eral Reserve Board. speaking. i Is De-
Iieved. with me knowledge and approva.
Of President Roosevelt. has sounded 70 the
country an initiation alarm.
Nr. EccIeS points or thar present pree
trends are 3 danger signal and urges mat
stems De taken 20 balance me federal bud
get, as q hrSt ana absolutely necessary step
10 conro! OF initiation. Reading between
the lines. Mr. Ecc!es' advice 20 the admin
is,rator Is 70 cease doing the things which
encourage ana promote Initiation.
Price movements are, as Mr.. Ecc4eS
states. 2 warning that che country Is a.
ready embarked or dangerous course;
the course OF constructing another fools
paradise in which the country may dwell
for few months or years, only 20 be Ana.-
= thrown into rhe outer darkness OF panic
and depression. as was the case II 1929.
TIE ,houghclesS portion OF the country :
population. lacking knowledge and under
standing OF economic laws, and never nav
ing Learned anything worthwhile even oy
experience through panicS and depression
conditions, Is greatly delighted by the pres
en- price movement as il relates 20 pro0uc-
ton and wages. \ little later when the
full meaning Of initiation OF COMMODITY
prices begins 20 De realized, chis class o.
the population will be less enthusiastic.
Wage increases are being announced
daily throughout the country. That sounds
good and il looks good when seen IN print.
When, as was the case in the steel indus
Try. announcements Of wage increases are
aln1osr Immediately followed b. announce
nenss OF increased prices for the finished
products, II does not sound or read so good
20 consumers.
However. the economic law controlling
in this case is as certain 20 work as the
natural law which controls the earth IN It's
path. II the steel companies raise wages
by tens and hundreds OF millions OF dol
lars.ssby that much their costs or produc-
ton are increased, and they must get the
additional cash by adding 70 the selling
pricsSsof their products This means that
the consumer pays wage increases IN the
sted industry - and the same infallble
and exchanging rule applies in every other
Industry and business.
Wage increases on large scale form
an endless circle and price initiation works
also, in an endless circle. When wage IN
crea+s and price increases get out OF con
rrol: the country will witness runaway IN
tlatidn; and runaway initiation will wreck
more business and industry and make pau
pers of more people than six years OF &c
precision.
The policies of the federal government
are contributing in big way to the build
ing.dp Of initiation conditions. Employer
VINO are granting wage increases not JUST
fed by sound and conservative bushes
and industrial judgment, are promoting
imitation. Groups OF striking. warrinj
workers, forcing by coercion OF other WORK
ers and employers, wage levels not ]usti
fed, are bringing initiation along at rapi'
RATE
Niddlemen and retailers, handing tn
products and commodities OF the country
arel frequently the victims OF this vlclou
circle of initiation; but, of course, they ar
forced in defense of their own position am
businesses to do what they can 10 protec
themselves, and often their course lkewis
adds 10 the inflationary movement.
The fundamental, essential considera
ton with a wage Garner is not how man
dollars he receives for his labor. but hoy
much the dollars he receives will buy Q
the things he desires TO purchase. That