Evening star., 1930-12-07
ECONOMIC SITUATION
DISCUSSED BY LAMONT
Secretary of Commerce Tells of Efforts
Made to Relieve Unemployment
and Depression.

1ne 1un text OF the speech Of Sec
retary Lamont Of the Department of
Commerce, in the National Radio
Forum last night, follows:
A little over q year ago we, in COM
mon with the rest of the world, en-
tered upon a period Of declining busi-
ness which has since developed into a
depression of serious proportions. World
prices Of securities have dropped pre-
ctpitously and prices Of commodities,
particularly raw materials, have fallen
considerably, the profits of industry
have Shrunk, output of manufactures
and minerals has been curtailed, pur-
chasing power has been reduced, and
many thousands of our fellow citizens
have become unemployed. While there
IS good reason to believe that we have
already weathered the worst of the
storm and that signs of stability and
recovery are already appearing, it is
clear that we are faced this Winter with
the vital problem of providing employ
ment and relief for the unfortunate
citizens of our country who find them
selves through no fault of their own
without work and without income. To-
night I want to discuss some aspects
Of this important problem as the re-
suit Of our experience of the past year
In dealing with it.
When the depression began a year
conference the business and labor lead
ers OF the Nation and mobilized the in
dustrtes OF the country for cooperation
in meeting the emergency. The White
House conferences were the most
prompt and effective marshalling Of
forces under public leadership for deal
ing with this problem that has ever
occurred in this or any other country.
At these conferences the President out
nj Of
including the maintenance of wage
rates, avoidance of industrial disputes,
the extension Of public and industrial
construction and the organization of
community efforts for unemployment
relief. These measures have been sue
ceSSful to O marked degree. Agree
ments made at these conferences have,
with few exceptions, been adhered to in
spite OF the prolongation of the de-
preston and the stresses and strains to
which business has been put, with the
result that we have escaped many of
the painful occurrences which have ac-
companied other major depressions.
Have Avoided Disputes.
For the first time in our entire his
tory we have passed through a depreS-
sion period without experiencing serious
industrial disputes. Strikes and lock-
outs during the past several months
have been so few in number as to be
almost Insignificant. At the end of
September-the last month for which
complete records are available-only 48
strikes involving less than $4,000 work.
erS were actually in existence. During
the first six months of this year only
313 disputes were recorded by the De-
partment of Labor. In the aggregate
these industrial disputes, most of them
OF few days duration, affected only
10000 workerS-an insignificant frac-
ton of the nearly 10000 900 wage and
salary workers Of the United States.
Contrast this situation with the serious
labor disturbances in the 1920-21 de-
preston. During the first six months
Of 1921 over 1000 or more than five
times as many disputes were recorded,
many Of the individual strikes involving
thousands and in some cases tens of
thousands Of workers. approximately
o million workers participated in the
strikes occurring in the six-month pc
rtod OF 1921-eleven times as many as
IN the present year.
This record Of industrial peace dur
ing the trying period through which
We are passing Is fine tribute to
the craftsmanship Of our labor lead
ers in preventing industrial strife and
to the vision Of our industrial leaders
In maintaining wage rates at the high
levels attained in 1928 and 1929. For
II is important to note that the ma
jority of the strikes in the depression
q decade ago were protests against
wage cuts which were being made so
extensively at that time. In the pres
ent emergency the employers Of the
Nation, with few exceptions, have held
to the agreement of last Winter in
wisely avoiding the "penny-wise and
pound-foolish" policy Of slashing wages
and thereby reducing purchasing power.
Here again the contrast with 1921 Is
impressive. In the earlier depression
wage reductions were the order of the
day. The Monthly Labor Review in
each month Of that year carried a
multitude Of items such as this: THE
entire force of these plants had respec-
tive wage rate decreases of 25 per cent,
16 per cent and l6 per cent, "prac-
tically all laborers in this concern were
reduced l71s per cent; go per cent
Of the men in this plant were reduced
IS per cent; "95 per cent of the men
in second plant were reduced IA per
cent" etc.
Few Wage Cuts.
What does the record show for the
year 1880? In the month of Septen-
Der only lib Of the nearly $4,000 in
duStrial establishments reporting to the
bureau announced wage cuts. These
reductions, which were Of 10 per cent
or less in most cases, affected the earn
ings Of some 5000 TO 10000 men, or
less than one-third of / per cent of
the total Of more than 100000 work
erS on the pay rolls Of reporting estab-
nShments. In August wage reductions
affecting about the same number Of
workers were announced, while the
record for the earlier months was even
more favorable, such small decreases
as were made being Offset or nearly
Offset in many instances by announce
ments Of wage increases. Indeed, in
every single month Of this year, ex-
cept August, some firms actually In
creased wages despite the declining
tendency in production and profits.
A recent survey made by a large
publishing house Of conditions In 103
typical industrial concerns employing
more than $4,000 workers confirms
these findings OF the 26 firms in this
group reporting changes In wage rates
during the past year, 16 reported in
ereases while only half as many re-
ported reductions.
Union wage scales also have been
maintained during the present year at
or above the levels attained during the
past few prosperous years.
How has unskilled and unorganized
labor Jared In the present depression?
One might expect that common labor
would be the first to bear the brunt
Of wage reductions. On the contrary
a recent official study shows that on
July /, 1880, the average hiring or
entrance rate actually paid to common
labor in a large number of establish
ments in IS important industries en-
ploying over 10000 unskilled laborers
was 43I cents per hour-only a few
tenths Of cent less than the average
for 1929 and well above the levels of
1925 and 1927. Common labor en-
ployed on Federal aid highways, accord
Ing to data published by the Bureau