Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1924-07-04
WORKERS FACE
UNEMPLOYMENT
AND WAGE CUTS

! Little doubt is now expressed IN
the leading financial agencies as Ia
/ the fact that the economic conditions
have taken definite turn for the
worse. The discussion amongst the
economic experts cen,ers today on the
character OF the depression and It's
duration. rather than on a debate as
to its existence.
As Is to be expected the workers
and poor farmers are the worst SUI
terers. Wage cuts are increasing and
employment Is decreasing,
Allowing for seasonal variations.
the Federal Reserve Boards Index Of
production in basic industries de
clined : per cent in April, The fall
VAS especially marked in the steel.
iron, coal and wooden industries. A.
Ithe same time factory employment
declined per cent. Clear signs Of
the diminished trade are 10 be seen
in the lowering of the discount rates
by the New York and Cleveland Fed
eral Reserve Banks from ~, 10
40.
Babson in his last report admits
that I'VE have some real ground for
the pessimism that has been evi-
dent the last few weeks. General
business, as reflected by the Babson
chart is now running at level 10
per cent below normal, and present
indications are that it will continue
so for some time to come In complet-
ing the reimbursement from tho five
years of imitation between 1916 and
1921"
Plan Big Wage Cutting Drive.
Additional light on the attitude of
the employing class to the Dawes
plan is now being shed in business
circles. Thus in its latest review Of
the state of trade and the CONNER.
cial epitome the Commercial and
Financial Chronicle frankly says: at
is pointed out that once the Dawes
Europe pet an impetus from II re-
vival of confidence, Europe will prob
ably invade American markets ON
larger and far more formidable scale
than for many years past, favored
by labor costs much below those pre-
vailing in the United States. II labor
does not meet the situation by intelli-
gent acquiescence in reduced wages
il viii suffer by a lessened demand
for its services
That the capitalists mean business
and that their threats TO cut wages
are not idle is obvious from the
prophecy, to be more exact decree,
Of the latest number of the Maga-
zine of Wall Street. Says this organ
of high finance apropos the likelihood
of a cut in wages for steel workers;
THAT a cut in steel wages, initiated
by the independent producers, Is to he
Forthcoming in the not distant future,
seems a certainty, in view of exist
ing and prospective conditions IN the
industry. The practically non-eN-
istent margin of profit occasioned by
the already considerable reduction IN
steel operations has operated 10
force consideration of the advisa.
bility of cutting wages upon OFFICIALS
of the various companies. The uhlted
States Steel Corporation, as usum,
will be the last to take such a step,
as it is the first to initiate wage
advances.
This prospective action on the
part of the steel industry Is more
than usually significant in view Of
the extreme susceptibility of the m
dustry to changing conditsons. Its
advent, therefore, may be looked upon
as a forerunner Of similar action. by
other industries. unquestionably,
some reimbursement Of existing wage
scales must occur before the general
industrial situation can again become
stabilized"
In some South Carolina cotton mills
wages have already been reduced a.
high as 1919. The carpet workers oil
Amsterdam, New York, and Boston,
Mass, haxe just had their wages
slashed. Among the New England
Shoe Workers there have been wage
reductions as high as 200.
Barron's picture the plight OF me
textile workers as follows: Idle
men and machinery-that Is the story
today in the textile towns. The so.
cial reaction has already made Itself
distinctly felt. From Fall River, for
example. come reports that despite
the earnest efforts Of numerous wei
fare and fraternal organizations to
alleviate local distress, the mil cur.
tailment there has been so long and
drastic that the municipal authofi-
ties now feel themselves obliped to
make substantial appropriations .iof
municipal Improvements with a view
TO providing more work