The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-09-23
GOVERNMENT Will
SEEK TO PROTECT
Living STANDARD
President Expresses Concern
as Leading Industries
Reduce Wages
REGARDS MOVE AS ERROR
Financial Circles, However, Be-
lieve il Constructive; la
Dor to Resist

Washington, Sept. 23.-ReDeeply
disappointed over the swing toward
lower wages, the federal government
devoted anxious attention Wednes-
day to protecting the American stan
dard of living.
The great concern Of the presi-
dent, it VISA disclosed at the white
house, was that everything nov bs
done to see the more slender pay
check should not mean q permanent
impairment Of the standard Of COM
fort and security for the American
worker.
In some high official quarters
there vas q disposition to feel that
the steel and a~utonnotive industries
had taken the lead toward a re-
trenchment policy Just at the time
when q recovery from depression was
in sight.
No one would predict the full ef-
feet. although there was every dis
position to hope that the spread Of
the movement could be stopped.
One official In close touch with the
industrial world pointed out that a.
the depression has gone forward. a
steadily increasing amount Of money
had accumulated in savings banks.
Holds Hopeful View
He expressed an opinion that the
time had about come when the wage
earners and small salaried people
| would begin to spend, with an In
evitable favorable effect on trade.
This official further outlined his
| views as follows:
The country has been In this de-
preston about two years now. Al
first the trend was steadily down.
ward. About the first Of the year
this stopped and since then things
have been humping along on the bot
tom, up and down, but holding q
fairly steady level. After the lowest
point in August, . natural seasonal
condition. there was every reason to
believe the curve would take q steady
upward trend.
OF course in all past depresstons
retrenchment has been immediate
In 1921 q great majority of concerns
did their wage cutting In the first
few months.
No official would comment fol
quotation, although 1t was indicated
the labor department would have
something to say later.
The announcement Of impending
wage cuts In steer, motor, rubber ano
copper industries was subject to q
variety of Interpretation In New YORK
financial circles.
Labor Opposes Cut
Organized labor proclaimed its re-
sistance. Some financial writer's At
tributed to unnamed business lead
ers the belief the step would haster
q revival of business. Formal state.
ments Of corporations concerned
merely stressed unsatisfactory present
conditions or new standards Of value
United States Steel took the initia-
tive and announced q 10 per cent cut
affecting 100000 employees Oct. I
Bethlehem Steel followed suit. It viii
reduce wages 10 per cent Oct. ! fol
1000 employees. Youngstown 5nce'
and Tube ordered q corresponding
cut.
The General Motors corporation
announced q 10 to 20 per cent reduc'
ton for Is 1000 salaried employees
Some 10000 employed on an hourly
wage basis will not be affected.
The United States Rubber compan,
announced a five-day working, sched'
ule starting October l. This VII
mean q reduction Of about 3 per cen
in wages to $4,000 employees. TIT
hourly scale will not be touched, bu'
no one will be given more than fivt
days work
The American Smelling and Re-
filming company and the Utah Copper
company announced 10 per cent wage
reductions effective Oct. l.
Forecasts Opposition
A forecast of resistance came from
Matthew Vol, vice president of tn
American Federation Of Labor, aftel
the announcement by United StateI
Steel. He said:
"All I can say Is that the actor
Of the United States Steel corpora
ton will certainly not be helpful. Re
gardless Of the causes that may hav'
prompted it, I fear that this actor
may we'll encourage others to do like
wise and prove the result OF eve'
more serious perturbations that VI
have vet witnessed in the nation
economic life. A general policy o
wage cuts holds out the danger o
serious industrial conflicts, for it =
uncomfortable that the workers vii
take this hloW without reStStaQce.n