Evening star., 1946-09-29
Present Postwar Situation
Paralleling That of 1920
Price Increases Wave of Strikes, Housing Short
age, Red Scare and Other Conditions
Closely Follow History
By Berfram Benedict

Another fruit of the Lusk Committee
efforts in New York was a law forbid
ding schools in New York State to give
instruction in the doctrine that organ
lied Government should be overthrown
by illegal force. Remember when Con-
gress several years ago forbade schools
in the District to tell students what
communism was?
Another Lusk Committee in New York
in 1921 forced all public school teachers
to get certificates from the State COM
missioner of education attesting their
loyalty. Then the Red scare died down
and the Lusk laws were repealed under
the prodding of Gov. CAP Smith, just as
Congress eventually repealed the Red
rider about District schools.
Today unnaturalized aliens who are
Communists run the risk of deportation
proceedings like those brought (unsuc-
cessfullD several years ago against
Harry Bridges. In November, 1919, At
torney General Mitchell Palmer opened
a series of raids on headquarters of rad
icals which resulted in the deportation
of hundreds of unnaturalized aliens
Among the deportees were the two an
archists, Emma Goldman and Alexander
Berkman. Later we deported one Lud-
wig Martens, whom the Soviet govern
ment has, designated as its Ambassador
to the United States.
Red Scare Widespread.
The immigration laws were amended
after World War so as to make it all
the harder for radicals to enter the
country. Impressed by the lead given
by the Lusk Committee in New York,
State Legislatures all over the country
enacted antiradical laws-usually called
criminal syndicalism" acts. Every
where the timid and gullible were per-
suaded that the steel strike, although
conducted under the respectable
aegis of the American Federation of
Labor, was at bottom Moscow-financed
plot to Sovietize the American Govern
ment, overthrow religion and national
ize' American women.
A sharp stock market collapse came
along after World War I, too, and we'll
before the first postwar depression set
in. Although prices of commodities did
not begin to fall until June, 1920, prices
of stocks had already begun to drop in
November. 1919-about IL months after
the armistice. The recent semipanicky
behavior of stocks came about 1212
months after VI day
Still other similarities have been
pointed out by the Federal Reserve
Bank of Chicago. Demobilization of
the armed forces was relatively smooth
both times. After each war the scarcity
of houses shot real estate and housing
prices away up. Each time, money
was easy" and interest rates were low.
Taxes were not reduced appreciably un-
til several years after the close of World
War I; today nobody expects really sub
stantial tax relief until 1948. The budget
was balanced in the first full fiscal year
after the close of World War I; the
Truman administration is at least talk
ing about balancing the budget in this
fiscal year 1947.
Of course, the analogy between 1916
and 1920 isn't perfect. Even though in
broad outline the two postwar periods
are remarkably similar, there are some
points of difference. For one thing, wage
rates are much higher now Whereas
the average take-home wage in manu-
featuring industries today is around
$50 week, in June, 1920, it was only
$2718-about go per cent as much.
Average hourly wages in manufactur-
ing during June, 1920, were 55A cents;
today they are almost twice as high,
$1.0s. In the months following the
armistice of World War I, soft local
miners were averaging only 1855 a
week-the railroad workers, only $2485-
mems clothing workers, only $21.08. In
1922 even machinists in the automobile
industry averaged only $35.75!
For another thing, our export trade
has become less important. inventories,
though expanding (they are estimated
at $4,000, 900 900 in manufacturing last
july are still low in comparison with
demand; in 1919-20, they were catching
up with demand much mere quickly
than now (the United States was in
World War I for 10 months, in World
War II for A months. Most impor-
tant of all. we had no similar experience
to fall back on in 1920; in 1916 we have
the experience of 1890 to teach us
lesson-if We will heed the lesson.
Will Elections Go Similarly?
That the political picture after World
War II also will be much like that after
World War I, with only minor differ
ences, is being confidently predicted by
the Republicans-and as fervently de-
MED by the 'Democrats-as the 1946
congressional campaigns really get up
steam.
A mid-term election for Congress was
held several days before the armistice
was signed in November II, 1918, but
Germany had already sued for peace, so
that for all practical purposes the war
was over. And in what were thus, in
essence if not in form, postwar mid
term elections, the COP gained seats
in the Senate and 81 in the House. In
both houses the control passed from the
Democrats to the Republicans.
In the postwar presidential elections
two years later, which would correspond
to the presidential elections TO be held
in 1916, the Republicans gained II more
seats in the Senate, where their majority
rose to no less than %, and So more
seats in the House, where their majority
became all Of 1855. The rural regions
turned against the Democratic admin
istration with especial yehemence. No