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Mr. Wilson's point, that the rest of the us other things which they will need as world henceforth must look more largely they progress. to America for capital, has got pretty well All intelligent Americans understand into the consciousness of the American this situation when it is explained to them people. Mr. Farrell's point (which is the But relatively few of them understand tha complement of Mr. Wilson's), that America they, personally, can do anything about has a big job ahead of it to get this capital, it. The big capitalists and the big manuhas not soaked in. We are proud of our facturers do see a definite personal oppornew importance as “the new financial tunity, as the existence of the Nationa centre of the world.” Mr. Farrell would Foreign Trade Council and the organizahave us humble at the thought of the tion of the new American Internationa work we shall have to do to maintain that Corporation prove. But the small invesidifficult position.

ors, the small manufacturers, and the faroJust now war profits have flooded us ers do not realize that they too can help. with cash to lend to borrowing nations. The truth is, they can help very definBut when Europe's armies return to their itely. The small investors can help hi industrial activities, the war profits will buying the securities of American-financa cease. Then we shall have to compete foreign developments, after the same again against the other manufacturing cautious and intelligent investigation tha: nations, and the surplus profits for they apply to the purchase of native foreign investment that we shall be able securities. The small manufacturers can to make in the face of that competition help by organizing, with allied concem will be made only by the most careful associations to push the sale of their ware: management.

abroad. And investors, manufacturers Over half of our enormous exports, as Mr. and farmers alike can help by considering Farrell has pointed out, have been food- the vital relation of the tariff to this quesstuffs and raw materials. These raw ma- tion and by their so instructing their Conterials are carried to Europe and are there gressmen that future tariff legislation wi. converted into highly finished articles in help and not hinder this essential change in the manufacture of which European America's economic growth. laborers get the wages and European capitalists get the manufacturing profits, and these articles are then sold to India What kind of tariff legislation, then, will and China and South America as part of help America to meet this necessity to be Europe's profitable foreign trade. Mr. come a world trader? Mr. Jacob H Farrell would have America manufacture Schiff, a life-long Republican, speaking in these raw materials in America, pay these the Republican Club in New York Citi wages to American laborers, keep these late in January, answered the question: profits for American capitalists, and add “We are prosperous, and we will conthese sales to America's foreign trade. tinue prosperous. Nothing can stop that

But before this advantageous process great prosperity except tariff agitation can be worked out, America must go into I feel this, and, standing here on this hols foreign trade and find the markets in Republican ground, I say that if you renew which these manufactures can be sold. the tariff agitation in the next campaign Europe has controlled most of these mar- and threaten the country again with a kets. America must capture them or high protective tariff the people will have develop new ones. Mr. Farrell advises

none of it.” us to develop them as Europe developed The reason why the people should have them, by lending to backward countries none of it is chiefly that our tariff wall has the money with which to buy from us the not only kept foreign manufactures out materials with which to develop their of the United States but it has, by that resources, on the theory (which works, by very act, kept American manufacturers the way) that they will use the wealth their from foreign markets, for a nation that developed resources bring in to buy from does not buy cannot sell. The two must

go together. But an added reason why so much the "eight-hour day" they want they should have none of it--why manu- as it is the “eight-hour-a-day wage base.” facturers themselves should have none of The anthracite mine workers are asking it—is that this tariff wall, protecting for the eight-hour day instead of the presthem almost absolutely against foreign ent nine-hour day. They are asking also competition, has weakened their courage for a 20 per cent. increase in wages, recogand weakened their initiative. Now the nition of the union, and the adjustment of necessity for initiative is being forced some matters in dispute relating to the upon them by the necessity of selling their basis of wages and to working conditions. goods abroad, and they must meet the The soft coal miners' demands are similar. change like men. President Wilson has Mine laborers are of two classes: (1) the recently sounded this challenge to their miners, who are practically small conman hood:

tractors, as they are paid by weight of “America has been reluctant to match coal blasted and are free to knock off work her wits with the rest of the world. When whenever they feel they have earned all I face a body of men like this (the Railway they want for the day; and (2) the mine Business Association) it is almost in- workers, who comprise the men who shovel credible to remember that only yesterday the blasted coal, the mule drivers, enthey were afraid to put their wits into free gineers, and miscellaneous workers, who competition with the world. The best all work by the time clock and at a fixed brains in the world afraid to match brains rate a day. The dissatisfaction with preswith the rest of the world! We have pre- ent conditions is largely among the second ferred to be provincial. We have pre- of these classes. ferred to stand behind protecting devices. The chief hope of a peaceful settlement And now we are thrust out to do, on a of these wage controversies has lain in scale never dreamed of in recent genera- the record for moderation of Mr. John P. tions, the business of the world. We can White, president of the United Mine no longer be a provincial nation."

Workers of America, and of Mr. Warren S.

Stone, chief of the Brotherhood of LocoTWO BIG LABOR CONTROVERSIES

motive Engineers. Both have opposed

general strikes and have favored arbitra(EARLY 400,000 men on all the rail- tion. Mr. Stone is the head of only one

roads of the country are demanding of the four railroad brotherhoods that are

a change in the hours-a-day basis involved, but he is the best known and on which wages are calculated, and about probably the most influential leader of all the same number of men in the anthracite the railroad men. and soft coal regions are asking for at least 10 per cent.increase in pay. These simul

OPENING WATER-POWER AND taneous demands of nearly one million men

MINERAL LANDS have already made 1916 one of the big years in the history of labor agitation.

HE House passed two bills in JanThe railroad men affected are only the

uary which will provide for the crews of freight trains. They are now use of practically all our remainpaid so much a mile for a run of 100 miles ing national resources. When the Senate or so much an hour for a day of ten hours, passes these bills, we shall have practically whichever figures out the most money for nothing left of our national domain except a particular run. What they demand is to the national forests and the national parks. be paid so much a mile for a run of 100 These bills are designed to settle the miles or so much an hour for a day of only problem of “conservation” once for all. eight hours. In other words, they want Quietly, industriously, painstakingly, to reduce by two hours the length of the Secretary Lane has been solving this great working day and thereby increase by two national and political problem. Our Alashours the possibilities or earning "over- kan coal fields, our water-power sites, and time" at a much higher rate. It is not our mineral lands wrecked the Taft Ad

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ministration in its early days, but Secre- regular in its courses and as dependable tary Lane's proposals, so absorbed is the as the visible surface streams. One use Nation in other matters, have hardly of hydro-electric power will be to pump aroused passing interest. Yet men like ex- this subterranean water to the surface forum Secretary Walter L. Fisher and ex-Forester irrigation purposes. Gifford Pinchot have publicly endorsed his It is not surprising that our wealth na recommendations. With them the great water has aroused the cupidity of speculaproblem of conservation, “How can we tive business interests. The Government. obtain the greatest national use of these fearful that it would become a means ex resources without speculation and exploita- extortion, has hugged these water course tion?" has apparently found its solution. to itself-withdrawn them from puble So long as these laws are honestly ad- entry. Secretary Lane has had little ministered conservation, as an active difficulty in outlining a plan that will make political issue, virtually disappears. them available. He proposes to lease

them for a fifty-year period, the rental, II

paid to go to the reclamation fund-the The first law opens to general use the money that is used to irrigate arid lands Nation's water-power sites. Experts figure The Government has the right of extendthat, of the 40,000,000 or 50,000,000 horse- ing or ending these leases at the expiration power of energy lying in our rivers and of this fifty-year period. If it decides streams, we are using only about 6,000,000 not to do so, it agrees to purchase the horse-power. This is national waste on a works at market valuation and any add:tremendous scale. The larger part of tional land the lessee may have acquired these water courses lie in the Western at cost. The only purpose of this arrangestates, and may very likely become the ment is to give the Government control. fundamental fact in their economic life. so it can terminate on fair terms the lease We are now using about 280,000,000 tons of any corporation which has abused its of coal a year for work which these water privileges. The only interests that oppose courses could perform just as well. This this arrangement are certain legislators coal has to be hauled long distances to be from the Western states, who wish the put to use. It is limited in supply; once central Government to hand over its reburned, it cannot be used again; enormous sources to the states themselves. The as may be the quantities concealed in the Government would make a great misearth, the time may conceivably come take if it did this, and fortunately there when it will all be gone. But this is little likelihood that this local view water-power has existed for millions of will prevail. years and it will exist for millions of years

III to come. It is a perpetual supply that can be used over and over again. Prop- The second bill proposes a similar pru erly chained, this water will turn huge gramme for the utilization of our mineral turbines, which will generate an endless lands. We have unexampled wealth in supply of electricity. This electricity will oil, gas, coal, phosphate, potassium, so perform any number of services in the dium, and other minerals. At present Western states. It will light their streets the orange growers of California and and houses, run their trolley cars and the apple orchardists of Oregon send to elevators, operate their churns, furnish Florida, several thousand miles away, for power to sewing machines and vacuum phosphate rock, used as fertilizer. Yet cleaners, and may even supply fuel for Montana, Idaho, and Wyoming, stato kitchen ranges. It will also make available that are right at their doors, have 3,000,000 vast new farming lands in the West, for acres of land underlaid with this precious these parched farms possess enormous substance. At present these lands, like stretches of water besides the rivers that our water-power sites, are withdrawnflow upon their surface. There is another for fear that, if opened to general use water system flowing underground, as somebody will steal them. We have bil

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lions of barrels of oil lying two thousand conviction that wealth has evaded its feet below the surface on the public do- share of taxation under other methods of main, and Heaven only knows how many collection.

collection. Landlords pass the tax on cubic feet of gas, in precisely the same real estate on to the public in the form of condition. The application of a rational increased rents; capitalists manage to system of leases and royalties, however, avoid much of the tax on personal propwill make all these treasures part of our erty; the internal revenue taxes are shifted practical life.

to the consumer in the increased price of

tobacco and spirits; and not only the THE INCOME TAX STANDS customs taxes have been paid by the

general public but a generous profit beHE recent decision by the court of sides, because the tariff has prevented

last resort, upholding the constitu- the importation of foreign goods at even

tionality of the income tax against an advance on competitive prices. , five attacks on it, verified, in its proper

II sense, Mr. Dooley's witty maxim that "the Supreme Court follows the election re- But, though resentment at these evils turns.” In a large sense, that is what it chiefly prompted the public to favor the ought to do. In a democracy, what the peo- income tax, one of the most valuable ple want, after thoughtful deliberation, positive virtues of that tax is often overought to be affirmed by that court as being looked. This virtue lies in the fact that the law of the land. And the people will take the income tax is a direct tax. The man this decisionon the income tax asan affirma- who pays it knows he is paying it. The tion of their fifty-year struggle to maintain strong arm of the Government itself the principle of a direct tax on incomes. reaches out directly to him and takes They will take it so, notwithstanding that, from his hand a part of his money. Intechnically, it is simply the upholding of stinctively he feels like calling this action the particular methods by which that tax highway robbery. So much the better. shall be determined under a particular For when a man feels that way, he is likely statute enacted by Congress.

to take a keen interest in the way the And in this the public will be funda- “robber” spends his money. If the mentally right. The men who fought Government that takes his money prothese last five attacks on this last form of ceeds to spend it in pork barrel appropriathe law to the last legal ditch were prob- tions, instead of for wise and considered ably quite sincere in their special reasons purposes, he is likely to regard it as a perfor complaint, but the broad truth remains sonal injury and make a disturbance about that most of these attacks in the last fifty it—as he ought. Probably no one thing years have been intended really to pre- would so safeguard the public treasury as vent the taxing of incomes at all. The some form of direct collection of all taxes. people intended to settle that question Such direct collection of taxes serves for good when they forced the passage of another useful purpose: it brings home the Sixteenth Amendment three years ago. to the citizen the personal realization that They would probably be willing to admit he has a stake in the Governmentthat the Congressional Act which put personal duties to it as well as personal that amendment into operation may be benefits from it. Almost every point at defective If so, Congress should be the which the Government touches the life source of relief: Congress should be asked of the citizen serves only to remind him of or compelled to pass a better law, But its beneficence. The postman bringing attacks on the law through the courts, and a letter to the door is almost the only on technical grounds, are resented as living symbol of Federal unity that the efforts to evade the principle of the tax average citizen ever sees. To be sharply itself.

reminded, by way of his pocket-book, that The food upon which public enthusiasm beneficence costs money, his nioney, leads for the income tax has fed has been the to a sense of personal duty to the common

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wealth. This is peculiarly important This question of locating misfits is one when such questions as national defense of the greatest problems of modern inarise. Instinctively, the American thinks dustrialism. Medical departments can that “the Government will take care of accomplish a great deal. Such a departthat.” But armies are not made of ment in one concern now examines every Government officers: modern armies can- candidate for employment as rigidly as not be made even of Government-paid would a life insurance company. They do men. They are made of the citizenry of not demand physical perfection, but at least the Nation—you and me and our neighbors. there is some assurance that the man is Direct taxes help to make us realize our fitted for his work. They also examine personal obligation in the defense of the every employee periodically, advise the country-our country.

slightly incapacitated how they can im

prove their defects, and take all measures. MISFITS-PHYSICAL AND MENTAL even at the cost of long vacations and

medical attendance, to revitalize the more HAT shall be done with invalid seriously ill. Beyond this physical work. employees? As invalid em- however, few corporations have yet gode

ployees are the large majority But the mental misfits are probably more of all workers, this question covers compre common than the physically misplaced. hensive ground. Not all employees have Men and women in thousands are doing tuberculosis, valvular heart disease, or work for which they are unfitted-men and acute infections; nearly all, however, have women who, if some method could be some physical defect that interferes with found of discovering their aptitudes, would efficiency and happy living. Most never have useful careers. A recent investigasuspect the real situation and yet a careful tion disclosed that several corporations examination, made periodically, will detect that jointly employ 10,000 people had weaknesses that may hasten their end. engaged 40,000 employees in a single year.

A great manufacturing company in This meant that 30,000 had failed. Yet New York has a regular and systematic we cannot believe that the human scrap method of protecting its employees' health. heap is as large as this. There must have Its records show how haphazard is the been something that the majority could usual scheme of managing a great indus- do. Surely there must be some other trial plant. Ideally, the organization method than that of “hiring and firing" should seek out the man best fitted to do to assort the human material that is used that particular job and set him to doing in industry. it. Yet this company found many absurdities. It had telephone operators

STATE POLICE with defective hearing and men and women doing close work, demanding the OME ONE once asked a chief of keenest vision, who had serious defects the Texas Rangers to explain the of eyesight. Laborers who were ruptured remarkable exploits of his men in or afflicted with heart disease were per- arresting desperate criminals single forming heavy lifting work. A man whose handed. His reply was: “A man that work made him climb ladders almost con- knows he is in the wrong can't stand up tinuously had heart disease and a high against a man that knows he is in the blood pressure. Another worthy citizen right-and keeps on coming.' with a frightfully high blood pressure was

That is one of the chief merits of all doing especially heavy work and rapidly state police, whether they be Texas eating himself to death. These dis- Rangers, Northwest Mounted Police, or coveries led to a general shifting; these the State Constabulary of Pennsylvania people were not discharged, but they They are trained to "keep on coming" received medical attention and were placed They have the soldier's disciplined mind in positions where they could render some that has thought out the perils of his callservice to the company.

ing and has come to take the risks of his

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