Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-19
LABOR FEDERATION
SEES TRADE GAINS
"UnderIying Factors Grad
uaIIy Improving" Survey
of Conditions DiSCIoSes.

The American Federation Of Labor
on completing survey of economic
conditions today declared. "Unquestion-
ably, underlying factors In the business
situation are gradually improving"
The federation refers to the forth
coming visit of Premier Laval of
France as of the greatest significance,
and said that the National Credit Cor
poration, organized after conference
with President Hoover and a group of
bankers, has brought about signs of in
creased confidence.
Unemployment to date was estimated
by the federation at 100000. 1t
offered as a plan the maintenance Of
wages, shortening of work hours to
share unemployment. create jobs and
strengthening unemployment agencies
and financial relief from public and
private funds.
Steel Corporations Assailed.
Severe criticism of the United States
Steel Corporation and the Bethlehem
Steel Cooperation for reducing wages 10
per cent is contained In the bulletin.
The bulletin says that the Steel Cor
poration apparently intends to take
S45 100000 out of surplus this year to
make dividend payments, while using
but s5,o00.0Oo of surplus to maintain
wages at the old level.
In the case of Bethlehem the Fedora
ton held that surplus apparently will
be dipped into to the extent of $17,700.-
900 for dividends and that 1t would
have taken but $3,50o,000 to avoid
lowering wages.
In both these cases wages were cut
to reduce deficit created by paying
dividends which the company had not
earned" the Federation said
Gold Situation Cited.
Emphasis on the impo-ta Of Pre-
mier Laval's visit is led up to by the
contention that segregation Of the
larger part of the worlds gold supply
in the United States and France was
a leading factor in forcing England
and some other European countries
away from the gold standard.
Belgium, Netherlands. Switzerland
and France are named as the only
European nations in which the gold
standard is operating freely.
The situation abroad, railroad diff
fculties. wage cuts and unemployment
all have contributed to destroying
confidence" it added Fear creates
dangerous situations, threatening crises.
Many people, frightened for the safety
of their funds, have withdrawn their
money from banks: bank runs have
forced the banks to get ready cash
b" selling securities for any price they
would bring"
In describing improvements in under
lying factors in the business situation,
the federation said that debts are being
paid off, replacement demand is accumu-
lating, consumer industries continue to
increase production, business firms have
been improving efficiency, many inef-
ficient units have been eliminated by
failure and plans are being discussed to
assure jobs for workers this Winter.
Steady Progress Cited.
These are influences which create
business recovery" the federation add
ed. 1T should be remembered that they
are progressing steadily"
The federation also refers to railroad
earnings as of great importance because
banks, savings organizations and insur-
ance companies have large investments
in rail securities.
The railroad world is awaiting with
hope a decision Of the Interstate Com
merce Commission on rate increases, the
federation said.
Events of the last month have given
the business world serious scare Steps
under way give hope for readjustment.