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Show THE HIGH WAGE THEORY During the past few months the steel industry has not equaled its high mark of a year 'ago, although there are abundant signs now that the next change will be for the better. In discussing the situation situa-tion recently the president of the Bethlehem Steel Corporation, iVir Lucent Grace, had the following to say: "We can't cut our expenses much farther except by one method and, none, of us like to think about that. If we have to save invested capital by reducing wages, it will signify that we are really in a serious ser-ious business C3-cle. Business is being carried on largely by deferred credits or instalment buying. Therefore, if we have to reduce the purchasing power of the working man, it will have serious consequences." conse-quences." The words of Mr. Grace are significant of the new attitude or American business leaders, an attitude which has greatly bettered the relations between capital and labor in America and made possiLle the unprecedented prosperity which we have enjoyed in the industrial world during the past few years. It has now come to be generally recognized in America that Ligher wages mean greater buying power by the people in general, consequently, more business for industry and an added prosperity, rhij is in direct contrast to the European theory where the manufacturers manufac-turers follow the plan of reducing wages to the lowest point possible in order to undersell the other fellow. That the American plan works is evidenced by the results of the past few years. We have had high wages, a greater buying power, pow-er, and greater prosperity. And the increased output has actually tended to decrease rather than increase costs to the consumer. The hih wage theory was first advanced in the Uniled St:Uei by the protectionists. And it has spread and proved itself unlil protection is no longer a partisan issue. The employer and the worker alike now realize the importance of protection to their industry, indus-try, and the importance of high wages to our national welfare. And the agriculturalists, fruit growers and livestock men, threatened by a flood of cheap importations from other countries are beginning' to get on the protective tariff bandwagon in increasing numbers, and r'-gardless of their politics. That is one reason why free trade will not be the paramount issue in the 1928 campaign. |