The Birmingham age-herald., 1921-08-23
Unemployment Situation Is an Economic Crime," and That Wage Reductions
 Not Help Situation
By Associated Prr..

Atlantic City N J., August a. The present unemployment situation Is an Economic crime" that is re- sulting in loss of $27 500, 900 a day in wages to the workers of the country, President Samuel Gompers declared tonight. after a session of tho executive council of the Amerr lean Federation of Labor. at which unemployment conditions were dis cussed.
 Wage reductions will not relieve tho situation, the veteran labor chief said, adding that such action will further curtail domestic purchasing power, and more factories will close because the people have not the money to huy their products.
 The present depression. he said, will become even more acute and the reductions, if they can be forced upon us, will not only prove a boom erang to the employer but menace to our economic, financial and poiiti- cal structure.
 In all this talk about rcadjust- ment and reconstruction, why Is it that the pressure is always brought to bear upon those whose standards of life and every day existence would be demoralized and dcte- riorated by reduction in wages. and why this drive to reduce their wages first? The rank and file can not understand how readjustmert and reconstruction can mean only reduction of their wages
 T have been asked who, among the capitalists, has suggested a re- duction in the rate of interest on . lean or reduction of profits, or even simultaneous reduction of wages and profits?
 The cost of living has not come down. Instead, with profiteering unchecked and unrestrained, it is going up, especially rents Ninety per cent of the homes in the United States were built before the war but the exorbitant rents gouged out of the tenants by the profiteering and interruptions landlords s blamed on the high cost of labor during the war"
 The council had before it a pro posal to call upon Congress to take steps to relieve the present unem- ployment situation by legislation and making appropriations that would aid in speeding up public work. Action on this probably will be taken later this week
 President Gompers reported to the council that he had called at ths White House and asked President Harding to take steps to have the government protect the small in- vestors from fraudulent and fake stock schemes, to urge the contin- uance of the issuance of treasury savings securities and to make them an attractive investment for the ay- craze American worker.
 He said that President Harding had agreed to bring the matter to the attention of the Secretary of Treasury Mellon, and cooperate to bring about methods to rid tho country of these fraudulent schemes. The matter also is to be brought to the attention of the governors of tho 12 federal reserve banks. The been swindleo sout of about S5.000.e00 and fraudulent stocks and secur- ities 0&
 Mir. Gompers also reported to tho council that President Harding, with hom he had conferred on the ques- ton of appointing representative of labor on the American delegas ton to the coming disarmament con- ference. looked with favor upon the proposition definite decision is expected shortly. he added