The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-05-13

least Z,oUU,UUO wage edrnefS arr
ton that more will join their ra
produced during recent months
until conditions which they consider
essential to success in world competi-
ton are accepted.
The artificial expansion Of business
which preceded this situation was re-
Gently exposed by we'll known in
vestors' service which held that DUR
ing the Autumn industrial leaders
made deliberate effort to manufac-
ture prosperity. The resulting col
lapse was termed an illustration of
the fact that without solid founda-
ton no prosperity could be produced.
According to the New York Times,
Ito many minds it was quite clear
that an artificial stimulant was be-
ing administered to business last
autumn and early winter"
U. S. Steel.
With untitled orders running far be-
hind 1923 the captains of industry
speeded up production in basic in
dustries until it exceeded the high
mark of year ago. In March the
U. S. Steel corporation maintained
the highest rate of production on
record, altho its output was run
ming more than 10 per cent ahead of
orders. AS a result its untitled orders
fell off 130,O94 tons to 4,7S2,807 tons
as compared with 7,4OS,332 tons on
the books year ago and production
in April was sharply curtailed.
The widespread unemployment
which has developed tends to curtail
consumption and to prolong the de-
preston. Since year ago the num-
Der of workers employed in mining,
manufacture and transportation has
fallen 100000 according to the con
sentative index of the department
of labor. But to absorb the increased
number of productive workers due to
the normal growth of population the
number on the payrolls should have
increased by at least 100000. The
steady drift from the farms to the
cities means that this entire number
can be added to the number of city
workers looking for jobs. This means
100000 looking for work in addition
to the normal" margin of about l.
100000 unemployed present even in
times Of prosperity.
Wage Cuts Threaten
AS result wage reduction move
ment is being anticipated by financial
editors in paragraphs which might
have been clipped from their sheets
in late 1920. The N. Y. Times sets
July 1 as the probable date for the
start
"Altho revisions of wage SEIZED
ules," writes one, "are not gen
eral thing as yet, it is evident
that industrial leaders have some
plans along this line under considera.
ton" Another writes 1T would not
surprise shrewd trade observers if
this year showed the turn of the tide
from the constantly increasing labor
costs which are now gravely affecting
production and distribution. The
entering wedge SO far as wage reduc
ton is concerned seems likely to ap
pear in the textile trades. They are
in a comparatively weak condition
etc." In the steel industry, says the
Journal of Commerce, 1.-The lead IL
reduction of wages is expected to BIZ
taken by the Republic Iron and Stee
Co. and the Youngstown Sheet
Tube Co."
The industries in this country have
been expanded to the point where
huge foreign markets are required Il
maintain full industrial activity and
the United States cannot hope tc
capture these markets in the face Of
British, French, Italian and German
competition, Ito quote Vice-pres. Fred
l. Kent, Bankers Trust Co. of New
York;, on the basis of the present
cost of production. He wants lower
wages.