The Washington times., 1931-01-31
TRADE OFFICERS
GR|MLY TACKLE
THEIR JOBS
Executives Cooperate and
Look Forward to Era of Re-
newed Prosperity, Activity
BY LEWIS HANEY
Director New York University Bureau
of Business Research and Former
Economist of Federal Trade
Commission

Economist of Federal Trade
Commission
Yesterday 1 was in one Of the
most important manufacturing
towns in upstate New York, and
talked with a number Of repre-
sentative business men.
First, 1 took pains to find out
their sentiment-how they really
feel about business conditions. I
should say that sentiment there
is rather quiet and resigned. The
business men are not bulliSh. But
they are hopeful. They are pre-
pared for the worst, but are de
termined to see things through,
and a good many feel that their
business is just about at low ebb
now.
I found not a bit of bunk or
optimism" But the quiet deter
mination to pull through was most
constructive. These men were not
wasting any time blaming others
for their troubles or looking for
Government doles. They are CO.
operating and pulling together,
but it was clear that each figures
on hoeing his own row. >~
Wages Are Reduced
The labor policies adopted in
different plants evidently have
varied. In some cases, hourly
wage rates have been reduced
recently. One good-sized metal
manufacturing concern has made
a flat IS per cent reduction.
Probably a majority Of the con-
Germs. however, have not actually
cut wage rates, but these are not
employing so many men nor
working at a large percentage OF
full time.
One large company was en-
ploying some men only 20 hours
week and others 40 hours. In
such cases the men may not be
earning as much as where the
hourly wage rate is lower and
they work more hours per week.
1 found living costs in this
town considerably reduced from a
year ago, and notably rents. The
local Chamber of Commerce
figures the cost of living to have
decreased about per cent.
An interesting Sidelight on
some of the figures we get is this.
One of the leading business men
in this upstate city noticed that
the rent figures in the cost of
living statistics had shown no
change for a long while. He in
vestigated and found that rents
were actually coming down con-
siderably. Inquiry showed that
the local real-estate interests had
been holding the reported rent
figures up, in order to try to keep
people from thinking that real
estate values were declining!
One fact that same to my at
tention was that a certain large
canning and preserving company
has recently reduced it's orders
for labels. The local label manu-
facturer had very large quantity
of this company's labels in stock
and evidently the companys new
business has not been enough to
warrant making up any more for
a while. So there is limit even
to canned foods production.
"ShOuld Take Losses Now"
In talking to the business men
Of this town I advised that they
definitely accept the lower level
of commodity prices whichS is
being established. AS sellers they
should get their prices as reason
able as possible and take inven-
tory losses now rather than later.
AS buyers they should go slow in
purchasing commodities that are
being maintained out of line with
the general level. Even as re
CARDS labor if they could employ
more men by reducing wage rates
a little (as living costs come
down, it would be better for all.
OF course, it is easier to say
these things than to do them.
But these men seemed to agree
with me that a large part of our
problem now is to get prices and
values readjusted all along the