Milford chronicle., 1946-05-03

IN SPITE of this cOuntryS great wealth
of men, machines, natural resources and
technical ability, we are headed for trouble.
The principle reason for the trouble IS that
in the wake of the war there is crying need
for everybody to work harder and longer
than ever before and perhaps suffer decline
in living standards to boot, but nobody seems
Wiling to do so. The theme song is shorter
hOurS, higher wages, lower taxes.
However, unless more work and higher
production accompanies wage raises, moth
ing has been gained AS Mr.. Bernard Bar
uch said, "TO make the take-hOme worth
WHILE more things at lower prices must be
produced That is up to labor more than man
agement. Unless each man produces more Tor
what he receives, increases his output, there
will be less for him and all the others Each
one will receive more money but have fewer
things Who gets any advantage if goods
are not produced faster than wages are ad-
vanced and money printed?"
What has been happening in the coal in
dustry gives point to Baruch's warning.
Mine operators, knowing they were bucking
an irresistible trend, offered the miners wage
increases and shorter hours in conformity
with settlements in the steel and autOmOtiVe
industries. This was before the latest coal
strike. The offer would have added between
100 and $50 million dollars to the cost Of
producing bituminOuS coal in the course of
II months, all of which would have been add
ed onto the nations fuel bill because the
profit margin in coal can be squeezed no thin
ner However, the strike went on for even
higher stakes. The union now demands a 10
cent royalty OF excise tax on every ton Of
coal, which would also have to be paid by the
consumer The royalty would put fifty mil
lion dollars annually into the hands of the
hoy thn it1,1
coal industry netted after taxes, in 1913 the
most recent year for which the figures are
available.
Thus there will probably be less coal at
higher price, when all that stands between
the country and uncontrolled initiation is high
production at a minimum price. This prob
ability of less goods at higher and higher
prices will become certainty in all lines of
industry if steps are not taken to curb the
monopolistic power of the modern labor un-
ion.
THE SUREST WAY to destroy represen-
tatlve government in this country is to tie
its future to our economic fortunes Even
now the American form of government is
being distorted in an effort to control I'm
fation,' to protect the people from possible
economic hardships resulting from the war,
and excessive government borrowing
The truth is that there is no sure way to
avoid postwar upheavaG Material values
Will continue to undergo change. people of
strong will can live through the hardship of
this change, and if necessary start from
scratch economically speaking. However.
continue the present trend of trying to soften
the blow of what we are pleased to call n1a-
tlon, by sacrificing institutions of govern
ment that alone stand between the people
and the ruthless political oppression of past
ages, and there will never be an opportunity
to build anew. The SacredneSS of the ind-
vldual inherent in the American political
structure is the foundation of our civilization.
Nothing should be permitted to weaken this
structure That is why the present cOntro-
Vcrsy over the extension of OPA goes so
much deeper than the question of prices
OPA is a form of government. 1t rules bv
'lecree. 1t can spread through every strata
OF American life. 1t is beyond the courts of
our land The question-and the only uueS-
tlon-lS, DO the people want this kind of
government?
WHAT CAN WE LOOK FORWARD to if
price controls on manufactured goods are re-
moved? Would prices skyrocket? Many peo-
pie think so, though most manufacturers do
not. Manufacturers do not think that wO-
men would stand in line to buy nylon stock
lngS at So to So a pair if they knew that next
month they would be $3.50. Manufacturers
do not think people would pay $4,000 for an
automobile if they are convinced that in three
or six months they can buy the same car for
$1,000. Manufacturers do not think store
could sell a simple white shirt for $40 if
people knew that in matter of weeks they
can buy all the shirts they want at 81 95
The plain fact is people do not bid up prices
when an avalanche of goods is coming into the
market. People bid up prices only when they
tear continuous and increasing shortages If
price controls are removed and production
starts rolling, the fear of shortages will evap-
crate like mist before the sum- People have
confidence in the ability of industry to pro-
duce when given the chance.