Evening star., 1945-11-10

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in effect, that such an increase need
not result in higher prices and, in
the long run, could result in lower
prices.
Mr.. Bowles bases his opinion on
intimate knowledge of production
and sales costs obtained by the Gov
ernment during the war years, plus
his personal experience as a busi-
nessman in the years preceding the
war. His business was advertising,
a partnership in one of the coun-
try's largest advertising agencies. To
serve client company efficiently,
such an agency needs to know the
company's business, inside and out,
including the elements that enter
into costs. So Mr.. Bowles learned a
good deal about costs, including la
Dor costs.
Cites Cut in Coffee Price.
Approaching, like all advertising
men, that increased sales are the
path to prosperity, Mr.. Bowles fast
ened onto the further fact that in
creased production lowers the labor
cost per item and makes possible
lower prices-which, in turn, in
creases the volume of sales. One
incident he likes to remember is the
manner in which the sales of a Ger
tain brand of coffee were so greatly
increased by a scent cut in price
on the agencys recommendations
that profits exceeded the hopes of
everybody concerned. He likes to
recall also the instances in which
increased wages brought increased
production and, eventually, in
creased profits.
If there is anything clear from
history" he told the committee, "it
Is that wages, high production and
good profits go hand in hand. High
production makes possible high
wages"
But Mr.. Bowles believes that dur
In his grueling experience as Gov.
ernment price administrator, he
has learned something even more
useful to business. He thinks he
has found the great untapped mar
ket for which every business con-
cern is looking.
Search for Market.
These days." he said, both husi-
ness and Government are exerting
their every effort and spending hun
dreds of millions of dollars in de-
veloping new markets all over the
world. But right here at our feet
lies our greatest undeveloped mar
ket-a market which can be tapped
to provide income and employment
opportunities for everybody simply
by raising the level of minimum
wages" r.... s..
Concerning some of these poten-
tial customers, he said:
Before the war they eked out a.
living at the bargain counter. They
bought the clothing that had been
passed over by other customers be-
cause of unattractiveness and un-
serviceability. They bought the
foods which were glut on the
market or which were marked down
just before the close of business toI
avoid spoilage. I earnestly
hope we have put such days behind
us. In any event, I do not believe
We should set minimums at levels so
low that men can live on them only
by buying left-overs."
And, he easserted, "In whatever
countries, or in whatever section of
a country you go, where you find
sweatshop wages, there you find
that labor productivity is low, profits
are low, and the living standards of
employe and employer alike are low
1t is the lesson of our economic his
tory that low wages drag down the
whole economy and that good wages
more than pay for themselves"
Mr.. Bowles was cheerful in his
talk to the Senate committee, say
ing, 'We have licked the old prob
lens of production and we will lick
the new ones as they come up" He
is not so cheerful in another respect.
Believing as he does in the capitalist
system, he is convinced that Ameri-
can business, industrial and finan-
cial leaders must demonstrate their