The Wilmington morning star., 1940-02-11

our economy as drastically as ha:
sometimes been predicted, controls
of profits, prices and wages would
be far more rigid than in 1918, il
action in British and France Is
criterion.
UNEQUAL BOOM BENEFITS
Although it is quite easy to visua
lize new business and industrial rec
ords it is also apparent that such
prosperity as we enjoy in 1910 viii
be e that many sections Of
business and that many groups o.
citizens will not share its benefits
Business profits in most lines viii
climb. Wage rates, particularly fol
skilled labor, will soar to all-time
highs. The earnings of semi-skilled
and unskilled will increase. On the
other hand, because of u greater
efficiency and bigger population, a
hard core of unemployment" can
remain a harrassing problem. In
custrial output per worker has in
creased; many Of the unemployed
will be either too young or too old
to be readily absorbed; lack of
training will debar a considerable
section from easily finding employ
ment and will set up "bottle-necks"
to choke production and distribu-
ton at key points.
Agriculture may gain only a mi
nor share Of the fruits of increased
prosperity. too. There Is no imme'
date prospect Of a demand Tor
fibres, meats and grains such as in
flated American food production
from 1915 to 1920. Europe is better
prepared than in 1914. Supplies
have been stored against this con-
tingency. England and France are
looking more to their own re-
sources and that Of their empires.
The United States has lost its do
minating position in many export
markets.
Wheat farmers, ranchers a n d
| planters will find more profitable
domestic markets, however, because
of better buying power in industrial
sections and less pressure from TO-
reign SURPRISES. But the export OPP
portunity at present does not Offer
the potential expansion of twenty
five years ago.
BUILDING CAN SHARE
The building industry is due fol-
further gains if the general level Of
dollar income moves up. Even 8
small dash Of initiation would sti
mulate rents and give further impe-
tus to construction figures which
have shown unexpected strength In
the last two years. Such a tendency
would be contrary to the experience
of 1914.
Building remained in a depressed
state during the early years Of the
World war and home construction
developed no real activity until we
were well into the twenties. Cur
rently building costs are holding
steady, financing charges are the
most favorable ever for the would.
be home owner, and there is an in
c%alcuable deficiency in modern houst
ing inherited from the depression
years.
HEALTHY INVENTORY
SITUATION
Manufacturing, wholesale and in
dustrial inventories do not appear tt
have grown tremendously since. pro
duction began to spiral upward last
Fall. Business still has a clear me-
mory Of the difficulties which fol
lowed too-exuberant buying in 1881
and that mistake is not likely to be
repeated Immediately.
Commodity price indexes which
sagged after the initial stimulus OF
the war wore Oft, came back to end
the year at new highs. The influence
Of drought reports affecting the
grain markets, foreign and special
situations bearing on certain com.
modities were the major causes
rather than a general buying wave.
Wholesale and retail prices have
responded very moderately to the
upswings in primary markets and
the purchasing power Of the aver.
age consumer dollar remains high
INITIATION AGAIN TO FORE
1t Is natural that business expan'
sion marked by price and wage in
creases, well justified though these
may be-, should revive the familiar
subject Of initiation. We have II bill.
lions in monetary gold, a third
above the fantastic total of two
years ago. Our excess reserves are
swollen far beyond the level of 1896
when they inspired widespread con
Germ. Should an initiation movement
start in earnest, the control mea.
sures in the hands of the Federal
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