Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-19
WAGE CUTS URGED
AS RECOVERY AID
But Economics Expert ADJ
vises Pay Roll Totals Should
Not Be Reduced.

BY the Associated Press
WILLIAMSON. Mass, August 10
A wage policy designed to contribute to
business recovery was recommended
at the Institute of Politics today by
Jacob Viner, professor of economics Of
the the University of Chicago. in the
round table conference he is conduct
ing on international problems of com-
mercial and financial policy"
Prof. Viner advocated substantial
horizontal wage rate reductions in all
industries in which these have rot yet
occurred, by agreement between labor
and employers If possible; pledge
of employers not to reduce their total
pay rolls and to raise wage rates as
the cost of living index rises and SIM
liar reductions in rates of remuneration
of other production factors, such as
interest on new loans, salaries, rent on
new or terminable leases and directors
fees.
Sees Way to Stability.
Recovery from depression can come
only when business men are confident
the prevailing cost and price levels are
such as to assure satisfactory profit
margin on new and increased opera
tons, he said.
In Prof. Viners general conference
ccvery. H. E. Miles, chairman of the
Fair Tariff League, made a plea for
lower tariff rates, and charged the
United States tariff policy with re-
sponsibility for stalling the worlds
trade. He said the United States is
tremendously responsible" for the
worlds slow recovery from its war
losses, and for the present measure of
its unemployment because it could
have led the way to recovery years ago
but would not.
1--WE solemnly declared constantly
and everywhere that an honest pro-
tective rate measures only the diff
ferences in cost of production here and
abroad, and we made the rates from
two to five and so times greater than
the differences in costs of production"
Mr. Miles states. ITO use the language
of the streets, Europe hates us for
this"
Scores T. S. Policy.
He said if the 1900 900 unemployed
wage earners in the United States, Ger
msny and Great Britain were put to
work they would create S150,00o, 900 OF
new wealth daily and in three days this
would equal the S425.0o0,0 900 net Ct in
ternational debts recently postponed. :"
This could be DONE Mr.. Miles said. only
by United States leadership and by
tariff reduction everywhere to the low
est limit consistent with honest pro-
lection"
In the round table conference which
he is conducting on the Future Of De-
mocracy," DR.. Arthur ~ Holcombe, pro-
lessor of government OF Harvard Uni
versity, urged a redistribution of power
between politicians and the experts of
the public service as a means of giving
the public a greater voice in determin-
ing public policy.
He pointed out that the power of de-
termining public policy rests too largely
with politicians and that, in his opin-
ion, this power has been used primarily
for partisan purposes.
This means giving experts a more
important and more honorable part
in public life than heretofore in the
United States" Prof. Holcombe stated
1T means the development of more
competent and a more powerful bu-
reaucracy than heretofore has been
deemed desirable It means the increas-
ing recognition Of the value Of bureaus
crscy in popular government"