More overtime is worked. The total earnings of
the wage earners are likely to advance more than wage rates. The extent
of the divergence between the increase in hourly or piece rates and
weekly or yearly earnings is likely to vary greatly according to the
nature of the causes of the price movement. When the price movement is
just the reflex of a situation of depreciated paper money, for example,
the volume of production may or may not be increasing.

An interesting study of the divergence between hourly earnings and
weekly earnings for the recent war period (Sept., 1914-March, 1919) is
contained in one of the Reports of the National Industrial Conference
Board. In the metal industries (those most directly affected by the war)
the advance in weekly earnings for men was stated to be 103 per cent. as
against 71 per cent. in hourly earnings. In the rubber and chemical
industries the increases in weekly earnings were greater than in hourly
earnings also, but not to the same extent as the above. In the textile
industries the percentage increases were practically equal, while in the
boot and shoe industry the increase in weekly earnings for men was less
than the increase in hourly earnings. And for women in most industries
the weekly earnings show the smaller per cent. of increase.[47] Of
course, figures of yearly earnings would be more significant as a
comparison.

It is not easy to reach a general conclusion in the matter. It may be
said that if the increase in prices is but the mark of an ordinary
business revival--with no unfavorable attendant circumstances--weekly
and yearly earnings will be favorably affected. Whether they will be
affected sufficiently to prevent real wages from falling, particularly
at the beginning of the period of rising prices, whether towards the end
of the period real wages may not actually have increased--these are
questions it is not possible to answer except as regards a concrete
situation. And if the increase in prices is the result of currency
inflation, or of a general falling off in the level of production,
weekly earnings are likely to be even more unfavorably affected during
the period of price increase than hourly rates.

4.--The effects of the process of falling prices may also be considered
as direct and indirect. The direct results are somewhat of the opposite
character to those just related for a period of rising prices. It is
difficult to generalize about them. If the period of f