The labor world., 1922-09-16
Just And REAS0 NAbLE' WAGE
: COMPARED WITH LIVING One
Government bMeaux Shown TO Differ in REQUISITE Amount
While Family Incomes Are Hardly Established

Washington, Sept. 14.-The Ma
tional Bureau of Economic Research
has ascertained that the total income
Of the United States for the year
1919 was $e6,252,6o1,Ooo. Divided
among the .41,609,192 persons who
were gaintfully employed during the
year that gives an average income
for each Of 1882. OF the gross
income, 1868 per cent went to- per-
sons gainfully employed in non-ag-
ricultural pursuits, who received
more than $4,000 a year.
These figures are all for 1919, that
being the latest year for which au-
thentic statistics are available. New
ertheless, they have distinct bear
ing upon the recent decision Of the
railroad labor. board to adopt "a
just and reasonable wage" instead Of
a living wage" as basis for rail-
road employees. In fact, labor leaders
themselves admit that the crux Of
the controversy lies in the distinc-
ton that is drawn between the 'Iiv-
ing wage" which is based on the
statistical data Of what it costs to
maintain family Of five at decent
standard and the lust and reason
able wage" which takes into con-
sideration the financial ability of the
employer to pay.
It Is roughly estimated by statis-
ticians that it will require an in
crease of $4,000, 10000 in the total
income of the country in order to
meet the living wage" requirements
per family as established by the
United States bureau Of labor stat
ist1cs. The family budget tablished
by the bureau, on the basis of 1918
prices, was $1,504.67. On the basis
Of 1919 prices, the National Indus
trial conference board figured that
the cost of maintaining a family in
Lawrence, Mass, at a minimum
standard was $1,3S5.79. Figured on
a standard which more nearly ap-
proaches that adopted by the Fed
eral bureau of labor statistics, the
conference board found that it cost
$1,e5s.o4 to maintain the family in
Lawrence.
Reduced Incomes Indicated.
1t is probable that the total in
come Of the United States for the
year 1921 is not very different from
that of 1919. Uormalcy, of course,
there Is an increase in the total in
come each year, although the pur-
CHASING power of the: income does
not fluctuate in the same ratio. But
the report Of the internal revenue
bureau for the year ending June so,
1922. shows collection of. income and
profit taxes was $1,140,1s1,42s less
than the previous year, which indt-
Gates a considerable reduction Of ma
uonal income. Consequently, those
who are familiar with the process of
welghtiag figures, estimate that the
income last year does not vary much
from 1919.
Statistics show that the percent.
age Of total income that is distrib-
uted on the basis Of more than $4,000
year is fairly steady. It is approx
1mately S5 per cent. That leaves IS
Per cent of the total income that IS
distributed on the basis of less than
$4,000 year. The total income for
non-agricultural persons, who re-
ceive less than $4,000 a year, was
TN 1919, $32,152,266,00o. It is estf-
mated roughly that two-thirds Of
that amount, or about $20,OO0,0 ,0O0,-
600, is distributed among wage earn
ers who receive less than $500 a
year. In order to bring their income
up to the amount specified by the
bureau Of labor statistics as the
minimum amount upon which a fam
lily can subsist, or to what, is known
as the "living wage" additional in
come must be found.
There are only two sources from
which this additional income can
come, either it must be taken away
from those who receive more than
the living wage" that is more than
$1,000 per family per year, or else
it must come from increased pro-
duction. The statistics of the national
research council throw some light
on the possibility of taking away
from those who receive more and
giving it to those who receive less
than the so-called living wage"
The average income for all persons
gainfully employed in the United
States is only $ss more than the
labor bureaus estimate of what it
costs an average family to live. It is