Evening star., 1937-03-14
WAGES AND PR|CES|
SPUR RISING TIDE.
OF LIVING COSTS.
Union Members Are Helped
Temporarily, but Others
Face Troubles.
FOOD, CLOTHING, RENTS
CONTINUE TO ADVANCE
Industrlalists Pass on Increased
Expenses to Public in Form
of Higher Quotations.
BY CHARLES r. SPEARE.
Special Dispatch 10 The Star

~A~SA"' OAopebSil W ! llS oldk
NEW YORK, March l3-The cir
cumference of the vicious circle" of
rising wages and advancing commodity
and retail prices has been extended by
this weeks events. In the center of
IL Is the confused consumer. If he is
a wage Garner and member of a la
Dor organization with sufficient power
10 exact higher compensation from his
employer, he is, temporarily, better off
with respect to income. On tn other
hand, II his compensation or invest
ment returns are stationary, his posi-
ton is increasingly serious. His food.
clothlng, rents and the miscellaneous
Items of required expenditure are
mounting in cost.
Ihe notable wage advances of the
year nave been those in the automobile
and IRON and steel trades. The Indus
trlallst can. and does. pass on the ad-
dltloLal cost of production to the pub
llc. Certain articles manufactured by
the motor companies. aside from their
output OF cars, have been increased
IN price since the February wage set
tlement IN Flint. 1t is estimated that
the new wage schedules of the steel
industry will add 5000 0OO,o 900 a wear
to its bill for labor, but, advices from
Pittsburgh state, the price advances
that followed will give the steel COM
panles S400,000,000 more of income.
Meat Prices to Rise.
Thjc IL
the pay of 100000 workers an average
OF IL per cent, to the highest level on
record. Quite frankly, the packers an
nounced that meat prices would, as
a consequence, rise. The International
Harvester Co. uses large quantities of
steel in the manufacture its farm
implements and will be forced to meet
the new steel price schedules. It, too,
mas raised wages. No one doubts that
the farme will be compelled to foot
a goodly portion of this new bill of
costs and that he. in turn, will pass
1t on to the consumer.
The Dun & Bradstreet food index
this week is the highest since 1890 and
about 16 per cent above that of a year
ago. Wheat and hides have not been
so high since February, 1929, or cotton
since June, 1880 In them we have
the basic elements of food and cloth
ing. Metals are likewise at their high
est in 10 years.
Buying Power Raised.
That the spending ability Of the
1000, 600 or more workers given wage
increases has been substantially lifted
is indicated in the 10 per cent gain in
department store sales in February
and of over II per cent in those of the
Chains Mail order houses did a
business last month nearly "a per cent
greater than year ago. A new buy
ing power, even greater and longer
lasting than that released last Sum-
mer by the payment of the soldiers
bonus, is giving general business a
momentum nearly equal to that wit
messed in the December holiday period.
Unquestionably, the wage increase
demand will spread and realize its aim
in many parts of the business world
because of the leverage given by the
automobile and iron and steel settle
ments, as we'll as from the voluntary
action of employers. Along with it
will be steadily rising prices of COM
modities, with growing problems in
manufacturing costs for the producer
and of living costs for the consumer.
Immediate Outlook Favorable.
1t is conceivable that the one will
witness reduction of his profits, COM
pared with 1886, and that the other
will show growing buyers resistance
as time goes on. For the present,
however, and probably for the next
six months, the outlook is favorable for
business expansion. The trade statis-
tics this week recognize buoyant con-
ditions in the major industries, as we'll
as in steam transportation and in the
turnover of banking credits outside
of New York
Copyright, 1887, by the North America.
Newspaper Alliance, Inc)