Evening star., 1921-05-27
PROF. FISHER URGES
PAY ASSESSOR
FEDERAL WORKERS
Tells RecIassifying Commit
tees Higher Cost of Living
Demands Relief.

Prof. Irving Fisher of Yale Uni
versity today strongly urged upon
the civil service committees of the
Senate and House that in reclassi-
flying the government employees they
give the employees an increase in pay
that would make the purchasing pow
cr of their salaries at least equal to
the purchasing power of their salaries
before the war.
Even though it looks bad in the
budget and the people of the coun-
try may not understand it," said Prof.
Fisher. you should do this justice to
the government employees
Favors Sliding Scale.
Prof Fisher said It would be more
pay, based upon the index number of
the cost Of living. so that wages
could be raised or lowered as the cost
of living goes up or down But if
Congress is unwilling to make such
a radical change in existing methods.
he said, since the appropri ations arc
made only for a year. the Congress
could cha nge them from year to year
SO as to make the pay conform to the
cost of living and the purchasing
price of the dollar.
Because of the inadequate salaries
paid the government employees THE
young and efficient men and women
have been leaving the service in large
rlrilbers. he SAID. This has been re-
hected in a decreased efficiency in the
postal service. in the patent ONCE. ETC.,
the witness said. The people are not
getting their letters az promptly, and
the inventors and industries OF the
country are not getting the: service
which they have a right to expect, he
said.
An Unfair Advantage.
The scientific men who have been
found in Washington in great num-
hers are leaving. he contiued. You
are taking advantage of the men and
women who have become old in the
service and who cannot get out and
get other jobs" said Prof. Fisher.
He presented to the committee sta.
tistics showing how the salaries Of
Congressman and employees of the
government have fallen behind in
purchasing power. and he estimated
that for each dollar of salary paid
them s2.34 more for the period from
1913 to 1920.
He estimated that from 1913 to
1920 the government owes senators
and representatives a total of $17.5S5
ach over and above the salaries paid
them. because Of the change in the
purchasing power of their salaries.
Let's see the appropriations COM
committee members, amid general
laugh.
For 5000 bureau chief Prof.
Fisher said the amount due was
s11.710. and for a $4,000 employe.
$1.O2s
Bygones should be bygones. Prof
Fisher continued, and no attempt
should be made to meet these arrears
but the government should certainly
from now on add to the salaries Of
the government employees enough to
bring up the purchasing power to at
least the pre-war level. The cost of
living. he said. had increased from
1913 TO 1920 s6.9 per cent.
Prices to Stay Higher.
Prof. Fisher predicted that prices
would never in this generation get
back to pre-war levels.
my. guess is that prices will not
fall. but will rise" he said. They
m months. but then 7 believe they will
begin to rise, stock prices first then
wholesale prices and these will drag
retail prices up again"
Prof. Fisher said that he believes
that the whole level of prices will be
are now. though not as high as they
have been. Liquidation. he said, is
nearing completion. Money will be-
come easier and prices will come back
to the higher levels. Then there will
be a slow drop. but they will never
get back TO pre-war levels. he said.
Reasons for Contention.
Two reasons given for this conten ;
ton by Prof Fisher were that this
country will continue to hold more
gold than ever before, and that the
federal reserve system more readily
provides for expansion than the old
national banking system.
Prof. Fisher attributed the increase
in prices in this country to the tre-
mendous importations of gold since
the beginning OF the European war.
amounting to about a billion dollars.
Prices commenced to rise, he said, at
the time the importations of gold be-
gan. He gave II as his opinion that
the increase in the gold supply and
the. expansion OF credit we're the prin-
cipal causes for the increase in prices.
Tho volume OF trade, he said. really
fuctuates very little. and the same
way with production. These matters.
I ne said. are fixed by the physical
capacity of the world. He argued
,har the rise in prices Of food has not
l.cen due to lack of food. but to the
vast Increase in the amount Of money
aad credit.
fTrstimony given before the Joint
committee yesterday afternoon by
representatives OF the employees Of the
bureau OF engraving and printing