Unemployment in America has assumed far greater propor- tions than
in Great Britain. According to the Times there are over 2,000,000 men out of work. The dollar has appreciated so greatly in terms of francs, lire, and marks that Europe cannot afford to buy American goods, and even our own imports are much reduced. The American public has refused to purchase at the inflated prices which were the outcome of scarcity and of inflated wages, and the natural result is unemployment. The manufacturers are now reducing their prices and offering lower wages. The textile workers, recognizing that fair' wages are better than none, have agreed to a reduction of 22i per cent. In the steel trades wages have fallen by 10 or 20 per cent. The effect of these reductions will soon be manifest in the world's markets, and will be felt by British industry first of all. A decline in nominal wages will mean lower prices, and will thus enable us to compete on better terms for the export trade by which we exist.
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