BUSINESS IN U.S.A.

Hokitika Guardian, 19 November 1921, Page 4

BUSINESS IN U.S.A.

QUESTION OF BRICES. SAN FRANCISCO, October 9. Economic conditions ill the United States continue to he of n somewhat confusing character, but the monthly review of the fourth Federal Resolve’ Rank, issued in Cleveland, Ohio, chums that more substantial signs of busi ess improvement and solidity are everywhere in evidence, and the looks ol gloom in the general business situation is disappearing. Mamilacturers, with few exceptions, report an upward Pe.iul in September business with orders and inquiries becoming more numerous. Farmers are marketing their crops as they are harvested, and there is a decidedly better feeling in the rural districts in comparison with the lull of 1920, it is declared in the review, which adds that at the present time the feeling is general that the marked improvement ill business is substantial and sound in every respect, and that the period of depression is gradually passing into the background, and will remain there fur a long time.

However, the presentment that further readjustments are necessary still continues to show up in spots. It is to the effect that business, still hampered by price inequalities and wage scales, which have not been completely adjusted, cannot con tin in- the present pace, anil that the winter months will bring a slight reaction. Those sturdy labourers who are employed along the waterfront unloading and loading vessels, and whose work is sometimes but casual, enjoyed extraordinarily high wages during wartime and up to a few months ago. when tlu-y were ~iit unsparingly. Now. however, their weekly pay cheque has shown 1 signs of further shrinkage, for on October Ist. a wage reduction of approximately 2d per cent took effect. In j view Of tlie irregularity of work in these days of disappearing Inr-ign , trade, anil the hundreds of thousand* i of idle tonnage of Uncle Sam gathering rust in American ports of the Atlantic

and Pacific seaboards, this 2.1 pel cent wage reduction was accepted by the International Longshoremen's Association in New York, an Association representing upwards of 15,000 men employed along the Atlantic and Gulf Coasts.

The announcement was made at the longshoremen's headquarters at the conclusion of a series of conferences which had tx-eii in progress for several weeks between representatives of the Inngsliorineii and tinns-Atkinth- steam-ship companies. Tin* new coni rail prnvidifor a 18 hour week In continue with On cents an hour for sliaight time and a dollar an liniii for Sunday wort and overtime work. The lormi-r scale was Hu ccnls an hour for straight time anil 1.20 del. for overtime. The new colt 1 1 ad only affect men • ngn-vd i" winking t inis- Atlanta shipping, e'-l dues mil inilnde cm; si wise traffic. The new scale is slightly linin' than double that of 1911, when the wage was lint ;ill cents all hour fur straight time and 15 cents for overtime. At that time the dollar’s purchasing power was considerably more than double than that of October, 1921.

Although pr:iel ienlly every line of payment lor work lias been very materially reduced, there is very little perceptible evidence of mniiufai furors, merchants, and retailers offering to decrease their prices for goods. The National Unemployment Conference. which has been holding sessions in Washington in an endeavour to solve the perplexing problem of unemployment of some 7,000,000 American men and women, has recommended prices of commodities being slashed as a means of stimulating business. The Administration's plan lias been to Use the Conference as a moans of forcing down prices of many articles, which have been reluctant to drop from the “war peak” region. Tlie committee considering the subject was of the opinion that prices in general sluirl 1 now he not inure than fifty per ceil, above pre-war level. A striking example is afforded by Henry Fold, the niillioiiiiiii- motor-ear man nin>l u:' : . who has struck a note of ahum ml-' the minds of his competitors by reducing his prices several times rerrnlty. He still pays good Wages to His hundreds of thousands of employees, and thev are all naturally excellently cullti nted with their lot. Despite his mam i-uls in prices of his "‘flivvers.” he i> Still able to make a margin of profit [|e is one of tin- busiest manufacturers in America today, the micmpluymi nt conference (K-legati-s admit. He has continuously fought the trusts, and is now independent of them, manufacturing everything he requires Irmii lav. materials. His activities in the midst* of a business depression arc attributed to nothing, hut liis big price cuts.

The United States Government Statisticians admit that prices of general articles are now ranging as high as 125 per cent, above prewar level, and the ill the face of lowered wages, anil increased rents all of which make the lot of the \im-i iean paterfamilias a lifc-aiid-death problem.