Bol. XXXVII

Number One

T

REASON in time of war is summarily punished. Today, although the nation basks in the sunshine of avowed peace and security, treason and lawlessness stalk boldly and unchallenged through the land. The men entrusted with authority to enforce law, equal justice and the protection of property, either confess their inability to cope with these sinister elements or, for political reasons, choose a middle of the road course of vacillation and compromise. Murder, arson, bomb outrages, acts of terrorism are committed and the guilty perpetrators remain at large. In Illinois the Herrin massacre goes unpunished, and the Coal Miners' Union obtains immunity from damage suits by purchasing the Lester Strip mine for $635,000. Although public safety and well-being are most directly concerned, the great mass of Americans continue to look upon this spectacle with an air of detachment or indifference.

It is not the principle of union labor or its misguided membership, but the lawless tactics and the treasonable motives of the irresponsible type of union labor leaders and their paid cohorts, that today constitutes the greatest menace to American political and economic safety. The essence of

their whole scheme is to override lawful

method, arbitration, and peaceful solutions in industrial disputes. Mob psychology and coercion are their strong weapons. They enslave honest labor. They are opposed to the free play of individual merit or efficiency and would put all labor on the decadent level of low mediocrity.

These men foment radicalism and discontent. They openly defy authority, breed contempt for the Supreme Court, and seek to abolish constitutional restraints. They lie in wait for every vulnerable opening to prey upon public necessity by attempting to control the source and distribution of basic supplies, by trying to paralyze commerce and industry. They hold up housing construction to enforce outrageous demands. They break contracts or agreements without cause.

Although radical and openly seditious elements are in the minority in national councils, union labor, as a whole, has become infected and is today utterly unAmerican in its strategies if not its professions. While advocating the "democratization of industry," the leadership of union labor is the most undemocratic and despotic force in this country. This is particularly true of local unions where the bosses per

petuate their rule through corrupt dictation, false promises, and by coercive methods that would not be tolerated anywhere in government, politics, or business. Secret ballots are in vogue. Conservative advice is howled down. The rank and file receive

no accounting for the enormous funds paid into the "locals" for dues, penalties or strike and walk-out assessments. The union member has no will of his own. He must work according to the rules laid down by his leaders. If he refuses he is subjected to assault and the members of his family are threatened with harm. He loses all power of initiative or opportunity and becomes an industrial slave to the union.

The vital issue is not between labor and the so-called capitalistic régime. It is not a question whether the open or closed shop shall prevail. The forcing up of wages to ever higher levels is but one of the means to the end in view. The real purpose is to undermine industrial efficiency, to destroy economic as well as political integrity in order to make it possible for union labor to obtain control and management of business and ultimately of the reins of government itself.

Two years ago the American Federation of Labor voted by overwhelming vote in favor of Government ownership and democratic control of not only the railroads and coal mines, but of "all industries organized under corporate grants from the public." That is also the program of the United Mine Workers, of the railway brotherhoods, and of organized labor generally. Although disavowing the Third Internationale, it is hard to disassociate the objectives and methods of organized labor from the communistic taint. We note the ease with which the "reds" and radicals recently secured control of the Farmer-Labor party convention in Chicago. The victory of Magnus Johnson, the Farmer-Labor candidate in Minnesota, gives utterance to an undercurrent that is hostile to American political and constitutional standards. La Follette's "Progressive bloc," the NonPartisan League and the I. W. W.'s, while differing in their methods, all aim for ultimate proletarian control and destruction of private property.

THE WAY TO GENUINE

INDUSTRIAL PEACE INLIGHTENED American sentiment will not fail to throw off the strangle hold of vicious union labor leadership, especially since the way to industrial peace lies fairly clear ahead. It is significant and reassuring to know that union labor has been steadily losing membership, and that establishment of shop associations and company unions, free from outside dictation, have been gaining ground rapidly. The fact is not generally appreciated that less. than 15 per cent. of labor in this country is today actually included in the membership of unions. During the two years 1920 to 1922 the affiliated membership of the American Federation of Labor decreased by more than 800,000, or over 20 per cent.

A recent nation-wide survey reveals that marked gains in open shop operations were reported in thirteen of thirty-two cities investigated, as compared with closed shop gains in only seven cities. Another survey recently completed by the National Industrial Conference Board shows that the number of shop committees, work councils or company unions, similar to those first established by the Government labor boards to meet the war emergency, have increased from 225 in August, 1919, to 725 in February, 1922. This increase was in spite of the automatic dissolution of over 100 such councils when the war ended. Most favorable reports are likewise forthcoming of the successful operation of the various plans of employee co-operation and representation in important industrial and manufacturing establishments, such as the "Bethlehem Plan," and that existing in the U. S. Steel Corporation plant.

Experience has shown that when business men, employers and representative organizations become sufficiently aroused and united they can throw off the yoke of errant union labor. It is interesting to note that in such centers as Indianapolis, Los Angeles, San Francisco and numerous other cities where union labor depredations reached the most aggravated and lawless stage, the open shop basis has been established in practically all lines of industry. Public sentiment almost invariably sides with open shop or independent labor or

ganizations when once awakened to the realities and guided by fearless leadership. The brow-beaten members of "local unions" would welcome release from present type of paid leaders and walking delegates.

The leaders of the American Federation of Labor give evidence of their concern because of declining membership. They recently launched a membership drive to unionize the 375,000 men engaged in the steel industry, with Cleveland, Chicago and Bethlehem the stategic centers. A

tion to public interest as well as just reward to enterprise and invested capital. Labor must be freed from arbitrary rules that result in inefficiency and reduced output. The shop association or company union plan provides the most effective medium to increase individual efficiency and secure fair play.

HIGH RECORD IN AMERICAN BANKING EXPANSION

posal of organizers.

Samuel Gompers states that this is the "psychological time" to organize labor upon a broader national scale. It is also the "psychological time" for business men, industrial organizations and employers generally to make common cause against irresponsible and treasonable union labor leadership. The public is wearied unto death with strikes and outrageous wage demands that strike at public necessities and result in intolerable wage discrepancies. The road lies through adoption of the open shop wherever possible or the establishment of shop associations and company unions. Employers must couple with intelligent encouragement and good will toward their employees plans that will enable the latter to share in profits, acquire stock, secure insurance against illness, unemployment and dependent old age. It is by such fair treatment and by doing away with greed for excessive profits that labor unions, as now conducted, will lose their hold. We must insure to the laborer just compensation, reward for merit, and fair treatment in adjustment of grievances.

President Harding, in his address at Helena, Montana, stressed the point that his administration does not seek the overthrow of organized labor or "deflation of labor." The President is doubtless sincere in his desire to combat extremists and to hold public interest uppermost. But when we recall the coal and transportation strikes, it must be realized that there is something radically wrong with union labor; that lawless methods cannot be condoned and that the functions of Federal and State government, as well as of the courts, must be strengthened to hold labor to legal contracts and methods that recognize obliga

ROM the standpoints of aggregate volume of resources, liquidity of assets and credit capacity, the American banking system has never occupied so strong and reliant a position as it does today. Very interesting evidences of growth and in the relative standing of national banks and of trust companies and various classes of banks operating under State charter, are presented in a report which has just been completed and made public by R. N. Sims, secretary and treasurer of the National Association of Supervisors of State banks. This compilation gives the most complete survey of the important

PAR COLLECTION RULES

CHANGED

O conform to the recent decision of

Tthe Supreme Court to the effect that

Federal Reserve banks cannot pay exchange and to maintain the present efficiency of the system, the Federal Reserve Board has revised its rules regarding par collections. The new rules prohibit any Federal Reserve bank from receiving on deposit, or for collection, any check drawn on any non-member bank which refuses to remit at par in acceptable funds. Federal Reserve banks are also required to make a collection charge for their services in collecting checks which bear the endorsement of, or are drawn by or emanate from, any non-member bank which refuses to remit at par in acceptable furds, such collection charge to be at a rate not to exceed one-tenth of 1 per cent.

The Federal Reserve Board has also withdrawn the general privilege given to member banks during the emergency of 1921 to act as agents in rediscounting for non-member banks. This privilege is hereafter only to be allowed upon application of the non-member bank concerned and the approval of the Federal Reserve Board. The revocation of the rediscount privileges to non-member banks is not expected to have any appreciable effect upon the business of the institutions affected, owing to the fact that there is, at present, no need for rediscounting and the further fact that any needed accommodation in that direction can be provided through correspondent

EDWARD W. BOK

who has offered a prize of $100,000 for best plan to secure world peace

this city, as stated in these newspaper articles, to raise the general salary level.

It is true that bank and trust company managements of New York and other cities are giving more serious consideration to the question of compensation for employees. In some respects bank clerks are underpaid, especially in comparison with the high wages received by some branches of

union labor which have been forced to ex

cessive levels. Two years ago banking met the brunt of deflation and earnings suffered severely. Since then the banking situation has improved and by many bankers it is felt that conditions now justify increased salaries for bank employees. Many important readjustments have already been made in comformity with increased living costs, and doubtless many more will be made. Such increases are deserved because of the loyal spirit which has characterized the ranks of banks and trust company employees, their diligence, and the position they must maintain in their business and social environments. A good example is also set by banks and trust companies which have adopted profit-sharing and liberal stock purchase plans for their staffs.