CHAPTER X

LABOR’S COOPERATIVE POLICY

ANYTHING which increases the nation’s productivity
 will tend to be reflected in a bull market.
A reason for rising stock prices closely associated
with the growth of management engineering, discussed
 in the last chapter, is that of the new policy
of the labor unions. This new policy is increasingly
sympathetic with management and has largely renounced
 the policy of limitation of output. Therefore
 it has contributed to increasing production,
which is reflected, among other ways, in increased
dividend earnings of common stock. The record of
greatly reduced strikes and labor disputes during the
years since 1922 speaks eloquently of one powerful
factor of the long rise of the stock price level.
In his address on “Modern Trade Unionism” before
 the Harvard Union (published by the American
Federation of Labor. Washington, D. C., 1925)
William Green, President of the American Federation
 of Labor, said:
“The Trade Union movement has been passing
through that period when physical controversies and
the tactics of force were most effective; it is now in a
period when its leaders must seek the conference
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