Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-18
Text of Hoover's Newark Address

! suffers from the diminished purchasing
power and enforced stringency in thou
sands of homes.
The modern relationships of govern
ment and industry are tangled mass
of economic and social problems. They
are neither abstract propositions nor
statistics. They are very human things
They can make for the happiness oil
every home in our country.
| The Republican party has performed
unparalleled service to the employees
in our commerce and industry through
out it's history and notably during the
past seven and a half years. Continu-
Gus employment and prosperity of labor
depend upon the continuance of those
| policies It Is these wider issues of gov
ernmental responsibility in laying broad
and deep foundations of employment
that wish to discuss tonight. The Re-
| publican party recognizes this response
| bility. Proof of this rests upon it's
actual record of accomplishment. That
| record can be tested by examination of
| the situation of labor in the country
| today.
Unemployment in 1921.
When we assumed direction of the
| Government in 1921 there were five to
six million unemployed upon our streets.
Wages and salaries were falling and
hours of labor increasing. Anxiety for
daily bread haunted nearly one-quarter
of our 100000 families
The Republican administration at
once undertook to find relief for this
situation. At once Nationwide en-
ployment conference was called. 1t
was made up of representatives of both
! employers and employees. I had the
honor to be chairman of that confer
ence. We set up a program for the
systematic organization of the whole
business community to restore employ
ment. BY means of immediate institu-
ton of public works. the extension OF
financial aid to industry during the
critical period of readjustment by CO.
operation of employers, and by score
of other devices. we started the wheels
of industry turning again. We did not
resort to the expedients of some foreign
countries. of doles, subsidies, charity
or infiation-all of which in the end
are borne by the people.
Within q year we restored these
5.0000O workers to employment. R"t
we did more, we produced a funda-
mental program which made this re-
stored employment secure on founda-
tons of prosperity; as result, wages
and standards Of living have during
the past six and half years risen to
steadily higher levels. This recovery
and this stability are no accident. 1t
has not been achieved by luck. Were
it not for sound governmental policies
and wise leadership employment condi-
tons in America today would be similar
to those existing in many other parts
of the world. None of the larger coun-
tries engaged in the great war have as
yet restored full employment. Doles to
the idle and other devices of despera-
ton still exist abroad.
There have been assertions of wide
unemployment at the present time.
There was temporary dip of employ
now rapidly recovering. Its causes
were local and temporary. They were
the combined effect of the Mississippi
flood, great shift in the motor indus
try and the collapse of real estate spec
ulation. An accurate survey of the
Department of Labor showed that even
including the usual Winter seasonal
unemployment. about 1,800,000 employees
were out of work. as contrasted with
100000 to 100000 in 1921. During
the past two months there has been a
higher record of production and con-
sumption of goods than during CORE
spending months of any previous year.
There could not be such record unless
employment was steadily recovering.
There are two industries which have
only partially recovered to our general
industrial prosperity. They are the
bituminous coal and textile industries
Here the difficulties of recovery from
overexpansion during the war have
been increased by duplication of part
of both industries in the Southern
States. They have also been affected
by changes IN use of textiles on one
hand and by the increase of electricity
on the other. We have duty to con-
tinue effort to their full recovery by
every assistance that the Government
can afford. This will be carried for
ward diligently.
Higher Average Of Wages.
Despite these rare exceptions, the
average of real wages are higher today
than ever before. And the arduous
hours of labor have decreased. We
can easily prove this. AS standard
of comparison, let us take the purchas-
ing power of wages in 1913, or before
the war. In purchasing power we con-
slider both the dollars and the cost of
living. Taking this standard we shall
find that real wages at the height of
the war imitation were about 80 per
cent over 1918. Despite the great after
war slump they have risen until today
they are over SO per cent greater than
before the war. Viewed in another
way, while the cost of living today is
about so points on the index above pre-
war. wages are 1877 above. Parallel
with this increase in real wages the
average hours of labor have steadily
decreased.
Moreover. our real wages and our
standards of living are the highest in
the world. And am again speaking
Of the real buying power of wages. To
compare ours with foreign wages we
must find common denomination, be-
cause translation of foreign currencies
means but little. If we say that per
cent of butter and 95 per cent of -four
form the basis of that useful mixture
called bread and butter" then the
weekly earnings in each country would
buy at retail in those countries the fol-
lowing total of this useful compound.
Please note these figures carefully: