LOWER COSTS AND HIGHER WAGES 211
But higher wages have contributed most of all. They have
forestalled strikes, reduced the labor turnover, encouraged
employees to more effective work, stimulated loyalty and in-
terest in the business, with the general result of far greater
continuity, stability, and therefore, efficiency in industry than
ever before. People have been able to buy more because the
steady flow of the dollar-values of production has not been
‘nterfered with.
So we see that a high wage-scale really does increase the
purchasing power not only of employees but of everybody
else, because it tends to keep them steadily at work. They
produce more, therefore they can buy more and have more.
And it is difficult to set any limit to the creative power of
he human mind.
This matter of the steady flow from hand to hand of the
Jollar-values created by labor has far-reaching effects. It not
only prevents the wasteful idleness of men, machines and
money, but it permits a tremendous speeding up of all in-
dustry, so that each dollar of money and each dollar-value of
goods, by moving along faster, can do a great deal more work.
[f the railroads at one time have very little to haul and at an-
other are flooded with traffic, they become congested, needed
materials are held up, and industry is thus hampered. But if
their business is evenly distributed they can handle it
promptly.
If the merchant cannot get goods promptly, whether be-
cause of railroad congestion or because of irregular sup-
plies at the factories, he must carry a large stock to make
sure of supplying his customers. One of the most helpful
factors in the present situation is that not only mercharits but
people in all lines of business and even consumers are to buy
‘from hand to mouth,” as we say. Goods are kept moving, as
well as dollars.
Stagnation, congestion, delay are the great enemies of pros-
perity, because they mean idleness—workers are no longer
creating dollar-values of consumable goods, and if they don’t
create them. they don’t have them.
