The World's work Volume 43; a history of our time

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 Excerpt: ...decline in prices of manufactured foods has not been as great as the shrinkage in value of raw materials and the retail price index does not show a drop corresponding to that of the wholesale price index. This indicates that manufacturing costs have not declined in proportion to primary production costs, and that the costs of distribution and of doing business are disproportionately high." Many manufacturers find it hard to cut their costs because of increased production capacity added during the War which now calls for interest and other overhead charges but brings in no return. A merger of steel companies is planned for the purpose of reducing this item of overhead and making it possible for these companies to compete with the United States Steel Corporation, which, with an eye to the future, refrained from adding to its plant capacity during the boom. On the railroads it is largely the item of wages, over which the roads have little control, and which were doubled under government management during the War. Before the readjustment is completed wages must come down all around, and before there is a return of prosperity, demand for manufactured goods must grow up to our increased plant capacity. A last stand of organized labor against wage reductions will come with the termination of the agreements with the anthracite and bituminous coal miners on April 1st. The economic utilization of increased manufacturing facilities will call for many transfers of ownership, with writing down of values, and in some cases with losses to investors who advanced the money for building. All this will take time and the outcome will not only depend on the revival of the purchasing power of the farmer but also, to a lesser degree, upon the demand for our products from abr...