Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-05

Reaction of the Nation to the wage
cuts that have been announced by sew
eral large corporations is largely IN
the direction of acceptance of the STU
alton in the hope that it will be a factor
In business recovery. While the de-
velopment has been in spite OF an I'M
Outstanding that wages would be main
tanned, it Is pointed out that feature
of the depression was the restraint
maintained for long time by both
capital and labor.
1.-The Nation as a whole will judge
this wage policy more by results than
by past promises" says the Oklahoma
City Times, as it notes: Economists
of course, are divided but the people
will await results. If cheaper produc-
ton. as result of lower labor costs,
quickens trade and puts more men &c
work, even at lower wages, this move
will be generally approved. Without
such results, however. the spirit of pro-
test will grow" AS the San Jose Mer-
curry Herald puts it: Lack of confidence
is holding business back. The actual
effect of wage cuts will depend, to some
extent, on the belief about it. If tho
generally accepted view is that the cut
will effect an inevitable readjustment
and bring the decline Of prices to an
end it may start enterprises that have
been planned but not carried out be-
cause of doubt as to the future"
Painful as are the establishments ir
American industry, confidence in the
future is fully warranted by the lessons
of past economic depressions and re-
coveries, as well as by consideration OF
fundamental economic facts" says
the Chicago Daily News. The Sioux
Falls Argus Leader analyses the trend
as "but another step in the def1ationary
program that started with bang ir
1929. Some of the imitation was taken
out in 1921. with agriculture the prize
dustry debated only little end then
moved upward. Now the deflation is
being completed"
"The action of United States Steel
Is unfortunate" in the judgment of
the Philadelphia Evening Bulletin. with
the explanation: Even though it may
have reasonable justification, 1t in
wolves the possibilities of industrial dis
turbance if it shall be followed to any
general degree, which President Hoover
and the interests closely associated with
him have earnestly striven to avert,
and which, thus far, they have beep
successful in avoiding" However, the
Topeka Daily Capital thinks that "it
big business has finally broken away
from its pledge to President Hoover to
maintain wages, 1t must still have
credit for making hard and long fight
for it." The Dayton Daily News, hold
ing that the compact failed, mot be-
cause the theory was unsound, but be-
cause in the circumstances it could not
be applied" declares that holding the
wageSeof certain millions at high level
while other millions have very low
wages and still more no wages at al
has not accomplished the end in view
On this point, the Lynchburg News as
sertS: "And thus explodes with loud
bang the fiction of maintenance of
wage scales at 1929 levels when profits
salaries and cost Of living were all 60
ing down. That action that ought to
have been regarded everywhere as in
evitable should come now as a shock in
many quarters may be attributed to
pollyanna propaganda from high places
in Government and business
The Springfield (Mass.) Union finds
satisfaction in the knowledge that dur
ing the two years covering the worst
period of the depression general wage
reductions have been successfully re-
sisted" and points out that it must
be recalled that this is unique in the
history Of depressions, and is something
for which the President deserves much
credit" The Harrisburg Telegraph de-
clares: This much must be said for
both labor and big business-that labor
has been more reasonable and orderly