| Show fA A W hi g D Daybook b k 11 I Hv fly v RODNEY ROnNEY R. R I W WASHINGTON Feb 13 Un 13 Union 13 Union on labor abor labor as if fC it had lost fa faith th in the thc storIes lories the economists bankers and other business sages used to tell appears appears ap ap- ap pears to be increasingly bent on informing in in- forming its members just what is actually nc nc- happening to them It is using its own statisticians and publicists to obtain and distribute the facts acts and the background of or employment employment employ employ- ment business and financial conditions condi ions on the theory that the thc rank and file ile workers arc are both anxious for and andin andin in n need of such information The Thc railroad unions for years have published here a page four weekly newspaper Labor edited by former Congressman ln Ed Keating o of Colorado which covers national af affairs from the labor abor viewpoint as well as actual labor news That is one reason why you youre ou are arc re likely to find a group o of r railroad men at some remote junction better belter informed on public questions than any ny other group of oC workers Ij Through the depression the tile Amerian Ameri ten can an Federation of ot Labor has issued a asman small mall Monthly Sune Survey of or Business which has attracted increasing atten atten- lion ion and md has been more and more widely videly quoted It describes current situations in simple intelligible ble lan lan- the guage-the thc kind in which you know what all an the thc words mean and and mean occasionally occa occa- tonally tosses in simple significant charts harts and gr graphs The Thc January issue contained probably the most lucid comprehensive c yet brief accounts of the he frozen credit condition the bond situation and the thc resultant business restriction that this writer has seen Also similar explanations of or the federal fedral fed fed- eral ral budget problem and anti the thc tim ions tangle The point is made which so man many people still sUJI dont don't seem to get that the he banks hold about one dollar in inen ten en of deposits and lend the rest at interest 1 Manufacturers merchants and farmers depend on borrowing rom from lom that money for short periods for costs of doing business and the banks also invest in long term terra loans on real estate and il d-il in bonds and stocks of re reliable rc- rc liable corporations Thc The one dollar dolla in n ten ien is normally ample to med mec meet reserves but if depositors suddenly rush for their funds the thc whole credit mechanism is upset banks must sell sel bonds to get gel cash thus cash thus depressing bond prices still further press business bust busi ness men for repayment of or loans ant and avoid new loans in order to keep ready money moncy liquid assets on hand When farm and other commodity prices dropped debtors were less able to repay the banks security behind credits decreased and bank investments invest invest- ments in railroad bonds real estate and other securities declined in m value The German f financial crisis scarce scared everyone stimulating hoarding and withdrawals Bond prices shot down the thc A. A F. F of L. L chart shows at the same time and at about the same rate of speed with which hoarding increased a Careful estimates the federation says shows an average of two dependents dependents de de- de- de for or each unemployed work work- er or It conservatively estimates the thc unemployed at It Another excellent example of labor union tendency to inform members is given in a careful survey by the In In- Brotherhood of Electrical Workers which undertakes to show the thc trend of industry away from the theold theold theold old theor theory of a fair profit I It quotes in its monthly journal bankens bankers bank bank- ers ens industrialists and economists to show that speculation and the thc habit of colossal and easy profits was as a major majol cause of oC the recent disaster It lists various devices devices all all well wel known known known-by by which more than a n fair return Is taken analyzes them and concludes that business must turn turnback turnback turnback back to the era of or fair return on goods good and services furnished for productive services ser or continue in its spiral jour ney ncy toward speculative altitudes altitudes- which means in the end ruin There is no radicalism in these labor labo surveys The They arc are scientific usually usually ally and well thought out I |
