Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-06
PURCHASING POWER
is TEST OF WAGES'
A. F. L. to Hear Report on
Survey Of Monetary Return
Il. for Services Performed.
BY JOHN F. SINCLAIR.


Special Dispatch to The star. .-..........
NEW YORK, October 6.-The Amer
lean Federation. of Labor has, long been
studying wages in relation to purchas-
ing power. It's leaders understand that
wages, announced in dollars means
little. It's what the, dollar. VIII buy
that really counts. ..........-
When the organization meets for its
fiftieth annual convention in Boston
today this subject will receive plenty OF
attention.
James O'ConneIl and John P. Frey,
officials of the metal trades QlViSlQp,
have finished report which, asks the
federation to support nVe-hour GAY
and f1ve-day week, with pay on the.
higher. The report asks further that
industry be organized on the basis ..ol
two or three five-hour shifts daily.
It's the federation's answer to the
question of how to solve the u2employ-
ment problem.
THE two or three fve-hour shift
plan is coming as certainly as the
three eight-hour shifts came. That
displaced the two 12-hour shifts in con-
tinuous production" say these men in
this report
Real wages have failed to keep pace
with industry's ability to manufacture.
Wages paid to American working men
line with wealth being produced by in
dustry, according to this report.
The spread between the wage earners
capacity to produce and their capacity
TO purchase must be made smaller. In
the closing in of that spread, lies the
hope for continued American prosperity.
Federal Reserve Under Attack.
The Federal Reserve is under attack
again. The keynote speech of Senator
Wagner of New York charged the Fed
eral Reserve Board, 'of which Mr.. Mel
lon is chairman" with vetoing the ac-
ton Of the New York Federal Reserve
put the brakes" on further credit in
fiation.
Is this the beginning of q campaign
to bring the Federal ReSefve actively
into partisan policies? Is there any
way by which the Reserve system can
avoid it while me Secretary OF the
Treasury. whoever he may be, remains
chairman OF the Federal Reserve Board?
Probably not. That Is why Pau NJ.
warburg. N hS recent work, -Fhe
Federal Reserve System suggests that
the Federal Reserve act be amended 10
provide that2--+-'--''-- '--
l. The governor be chosen from the
existing membership Of the board itself
rather than by presidential appoint
ment ''--.t.'-.' .--. ..
2. That the Craftsmanship Of the
board be held by the governor. not by
the Secretary OF the Treasury, as at
present. ''-s
3. That member of the Federal
Reserve Board VINO has been confirmed
by the Senate at the time of his fret
nomination may be reappointed by the
President without again submitting his
name to the Senate
1NNkc though the EaderaI Re-
serve system is in for stormy weather
in the Fall political campaign. AL
ready its policies from 1923 to 1929 have
been severely criticized because OF the
boards lethargy in allowing stock mar
-ket speculation to reach the heIg1ts
1t did before the break of last October
Just as everything was set for
meeting in New York of the heaos of
the various banks of Germany, England.
France and the United States, the an
nouncenent comes that probably Sec
rotary Mellon anc Gov. Meyer Gt the
Federal Reserve Board will not take
part in any meeting to discuss inter-
national finance with these bankeIs
Meyers Appointment.
Eugene Meyer. jr., has been appointed
by President Hoover as governor but
the United States Senate has not yet
confirmed him.
bank, now is not certain he can attend.
Should dictatorship be proclaimed in
Germany, many think DR.. Luther will
be named to represent that country IL
the meeting is held.
However. the project has been met
with considerable opposition during the
last week or so. Il is difficult to see at
present what can be accomplished Per-
haps at the last minute the meeting will
be called off-fUr a time at least
All OF which shows that it's pretty
difhcult TO keep business out of politics
and politics out Of business. 80 ,-'...-'
When Soviet Russia completes its
hye-year program m September 1893;
81 transmitting stations will cover its
vast territory like a mantle. This great
network Of stations will include postal,
telegraph and telephone as well as
radio communications. Soviet leaders
know the network s value and. It's future
in their unifioation program. Is.
Step on train at San Francisco and
step off at London, England. That's
how far 1t is from one side of Russia to
the other. ...
At first. Is to % stations were. con-.
sidered sufficient, But the increasing
popularity of the radio has become so
strong that Soviet officials d5cided upon
an even more ambitious. program. It
means increasing thu expenditure over
the nVe-year period from about $l54.-
100000 TO 1888 .0o0, 900. according. 10
the American Department of Commerce
Soviet Russia is building from the
ground up.
Population and Slumps
Vladimir Woytinsky. statistician of
the Pan-Eurcpa League, attributes the
world economic slump to overpopulation.
There are 1000, 900 more workers in
Germany now than in 1918 and 4.OO0.-
600 more in England. Even compared
with 1925, Germany has 1000, 900 more
workers and the number is steadily in
ereasing
Europe's population increased from
$4,000 900 in 1900 TO 4O6 900 900 In
1900. But sc. 600, 900 Of them emiRrated
In fact, during the last half of the
nineteenth century about 1000 900 Eu-
ropeans emigrated 10 foreign countries
each year
But with present immigration restric-
tons getting tighter all the time, only
about 500 900 Europeans annually-or a
quarter of what 1t was before the war
are able TO enter other countries. So a
population glut in Europe is in prospect
War has shown itself an ineffective
preventive OF overpopulation. saws Mr.
Woytinsky. What was unachieyable
for heavy artillery. airships. tanks anc
poison gases must be achieved by q
birth-rate decline in war years and .
brth-rate regulation after war"
This sounds plausible enough. But
many economists only wish the problem
was as simple as this.