Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-08-16
Note Great Saving
In Amount Human
Energy in Production

New York, Aug. 14.-The great
saving in the amount of human ener-
gy necessary to turn out a given
quantity of manufacturing produc-
ton, which has made itself felt par
ticularly during the last few years,
bids fair to be the most significant
industrial economic development of
the twentieth century, according to
the National Industrial Conference
Board, 247 Park Avenue, New York.
So pronounced has been the change
In the quantitative relationship be-
tween labor and production that. In
the light of an analysis of this phase
of our recent industrial history con-
tanned in the Boards recently COM
pleted report on wages in the Unit
ed States" it heralds far-reaching
betterment not only in our economic
affairs, but affords a foundation for
! wide social and cultural advance as
well.
1t has been generally accepted that
employment f1uctuates with produc-
ton, on the assumption that. barring
revolutionary changes in methods, a
given labor force is necessary to pro-
duce certain output. This was SUBJ
stantially true, according to the
Boards study of employment ana
PAoo AlOul 1JUO W 4J17s pdl
during the past decade employment
in manufacturing has to an increas-
ing degree failed to keep pace with
the increase in output, and this ten
dency has become particularly no.
ticeable since the year. 1921 Although
the volume of manufacturing output
from 1921 to 1926 increased about So
per cent, employment during the
same period, according to the Con-
ference Boards index Increased only
r4.28 per cent. But inasmuch as en-
ployment indexes are computed on
data from a number Of selected
plants, the Board cautions that 1t
does not accurately measure total
employment. and hence is not strict
ly comparable with fluctuations In
total volume of production as indi-
Gated by the production index cited.
Moreover, employment indexes being
based on payroll data, they do not
take into account part-time work,
nor over time work, indica ting mere
ly the number of employees on the
payroll. However, the difference of
nuctuation between volume of pfb-
auction and employment since 1921 is
so marked, the Board declared, and
substantiated to such an extent by
the experience in individual plants.
that the conclusion of a great saving
in human energy in manufacturing
production cannot be escaped. Asi
the change in relative volume of en-
ployment is measured in proportion
to individual plant capacity, the
Board emphasizes, it does not indi- |
cate increasing unemployment. It is
70 pe Interpreted rather as the open |
ing up OF opportunities to work in
other fields, to the degree that the
machine relieves men and women
from having to earn their living
with manual labor.
Significant in this connection the
Board points out, is the fact that the |
general price level during the mast
i've years has been declining along
with greater, productive activity. a |
symptom contrary to general preyi- |
Gus experience, and making possible |
higher living standards.
While a greater output per worker
employed has been made possible bv |
modern, highly organized, high-pow- |
cred and more efficient industry. II |
mas also herewith raised the earning |
capacity of the individual workers, |
Actual wages paid per worker in ali |
manufacturing industries combines |
according to the Boards wage study |
IN 1870 averaged about ia per cent |
more than in 1914, and the "rear
wage, that Is the purchasing power
OF FACTORY workers weekly earnings.
taxing into account the higher price |
level, in 1925 averaged Is per cent |
more than in 1914. The tenet re
Gently adopted by the American Fed
Grafton Of Labor, that the wage
Garner should participate in the re-
turns from increased efficiency in the |
operation of the industry, in effect |
mas been realized during the nast
decade, according to the Boards an
alysis.
The saving in human energy in !
manufacturing during the last few |
years has been sufficiently great the
Board declares as to offset to a large |
degree the effect Of immigration re-
struction on labor supply. For our
annual net gain in population from !
immigration decreased by about two
thirds from 1921 to 1925, while manu- |
Featuring output during the same !
period increased more than so per |
cent. without at any time occasion |
ing a labor shortage. Moreover. dur |
ing the two years that the two per |
cent quota act has been in effect. the |
largest loss in immigration has been |
IN common labor, which actually en- |
ErI ffal ia L.