The Butler County press. [volume] (Hamilton, Ohio) 1900-1946, 1931-11-06
BASIC BUSINESS
FACTORS GAINING
LABOR DECLARES
Monthly Survey Lists I'm
derlying Keys to Gradual
Improvement Steel Wage
Cuts Severely Condemned.

Washington, D. c.. (ILNS)-Un-
questionably underlying factors in
the business situation are gradually
improving, the American Federation
of Labor monthly survey says,
though it declares business in the
United States has been passing
through mild panic"
Keys to business improvement are
listed by the survey as follows: Debts
are being paid off, replacement de-
mand is accumulating; consumer in
dustries continue to increase produc-
ton; business firms have been inn
proving efficiency; many inefficient
units have been eliminated by failure,
plans are being discussed to assure
jobs for workers this winter.
"These," the survey says, "are in
fuences which create business re-
covery; it should be remembered that
they are progressing steadily al
though certain other factors at pres
ent prevent them from becoming
fully effective"
Relief Measures Urged
The federation estimates the num-
Der of unemployed at 100000 and
declares that measures to maintain
workers income and provide work
for the unemployed are of immediate
urgency.
Severe criticism of the United
States Steel Corporation and Beth
lehem Steel for reducing wages 10 per
cent is contained in the survey, which
says that U. S. Steel apparently in
tends to take $45 100000 out of sur
plus this year to make dividend pay
ments while refusing to use but S.
100000 of surplus to maintain wages
at the old level
In the case of Bethlehem it is held
that surplus apparently will be dipped
into to the extent of $17,700,000 for
dividend payments by the end of the
year and that it would have taken
but $3,500,0000 of surplus to avoid
lowering wages.
SIN both these cases wages
were cut to reduce a deficit Gre
ated by paying dividends which
the company had not earned" the
survey said. Business in general
will not benefit from these cuts
through price reductions, for the
companies are making every eff
fort to hold price levels"
Emphasis on the Importance of the
visit of Premier Laval of France is
led up to by the contention that seq
regation of the larger part of the
worlds gold supply in the United
States and France was leading fac
tor in forcing England and some
other European countries off the gold
standard.
Visit of Greatest Significance"
''Since France and the United
States hold the key to the situation"
| the survey says, "the visit of Premier
Laval on October % is of the great
est significance. Readjustments of
war debts to the nations capacity to
pay may be considered, coupled with
reduction in ornaments. Already
| Germany and France have established
an economic commission to study de-
preston problems, an important step
toward concerted effort to deal with
the world situation. 1t is obvious here
in America that we cannot recover
until there is more basis for world
confidence"
The federation said that business
in this country "has been passing
through a mild panic"
Near-Panic Created
"The situation abroad, railroad
difficulties, wage cuts and unemploy-
ment all have contributed to destroy
confidence" it added Fear creates
dangerous situations, threatening
crisis. Many people, frightened for
n r 4. e. l Il