Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-13
Dollars Buying Power
Higher by Three Cents
BY HARDEN COLFAX.

In consequence Of the decline OF
commodity prices, the purchasing power
I Of the dollar has advanced approx
mately 3 cents, as compared with this
time last year.
1t is obvious, therefore, that "real
wages" have increased correspondence
| That is to say that the wage Garner
can buy more for his wages today than
he could year ago.
No one has been more prompt to
realize this situation than the leaders
OF organized labor. Following out the
policy Of improvement in worker eff
cheney which they adopted for the
American Federation of Labor some
time ago, these leaders say that the
only chance for an increase In wages
lies in increased efficiency, both on the
part Of the workers and on the part of
management. They are clamoring
strongly for efficiency management.
Organized labor does not wish to see
wages reduced Employers are equally
unwilling to see the purchasing power
OF their best customers cut down by
wage reductions. Both realize, how
ever, that, with commodities selling for
less than they did a year-ago. profits
employment and business stability de-
pend decidedly on efficiency.
Organized labor also has come to
realize according to its leaders, that
stability of employment is fully as i'm.
portant as the rate of pay. They realize
that 1t Is not advantageous to have a
/ high-wage scale when the hours worked
under that scale are few and far be-
tween. This has tended to change the
attitude of organized labor toward
mergers and consultations. In many
instances, 1t is felt that these CONSOLE
dations will promote efficiency in man.
agement and stability of employment.
The pooling of resources has come to be
| a natural and essential trend in business
life, provided such mergers are made
with the object of attaining efficiency
and not as gamble.
= X
Labor leaders point out that the two
industries which stand out as being in
a depressed condition--coal and tex
| tiles-are finding it difficult to improve
their positions, because they are over
mined, overmilled and overcompanied
If the coal mines of the country were
merged into fewer operating CORPORA
tons and the inefficient and unprofit-
able properties closed, many believe
that the industry would be placed in
a position to offer adequate wages and
oVCuOy WOAA W ullIlcIS. 1ne same is
held to be true of the textile industry.
which is woefully in need of an oper-
alton to remove the obsolete and un-
profitable plants now clinging on to
the industry.
According to the industrial confer
ence board, hourly earnings in the
manufacturing industries at the be-
ginning OF this year amounted to 58.2
cents. This <was a higher rate than
in January, 1929, but weekly earnings
averaged between 1.25 and $50 cents
less than in october, 1929. Since Oc-
tober, 1929, average hourly earnings
have varied within a half-cent rance.
but weekly wages have fiuctuated more
widely. The number of hours worked
per week has dropped of between 4 and
on the average since last October.
Thus the stability of wage rates
seems to have been maintained while
the stability of employment has shown
fiuctuation. 1t is in this latter factor
that labor leaders are anxious to see
Improvement Economists hold that cur
tailment Of houS Of labor e preferable
to drastic reductions in wage rates.
tcopyrisht. la3o)