Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-16
BRAZIL IN EFFORT
!. TO PROTECT LABOR
Decree Limits Imports of Ma
Chinery Which DiSpIaCeS
Workers in Industry.
BY JOHN F. SINCLAIR.

dr0dS of thousands of them-have seen
their jobs slip out from undsr them
because new machinery was built which
would do the work of many. 1t is an
old s@ry now. Yet organized labor has
never raised any strong cry against it.
Why? Because new industries some
how, up to now, have always been found
Ito take up the labor slack.
But now President Getulio Vergas OF
Brazil has raised the issue squarely by
signing a decree limiting the importa-
ton of machinery into his country. And
why? For two reasons: First, to halt
" the growing unemployment, and second,
to curtail overproduction.
Something new, this!
a Under the presidential decree, which
has precipitated widespread discussion
throughout South America, all machines
used for increasing production in any
industry, already established, are not
allowed But Brazil does allow ma
chimes for new industries to be
brought in.
incidentally, it is the tsxtile industry
in Brazil, which will feel the effect of
this new decree more than others.
H., One suggestion in this connection is
worth study. 1t is this: Let machinery
which displaces labor pay into the gov
eminent royalty equal to the amount
of labor cost saved, and let this fund be
used as an unemployment fund to pro-
vide for those whose labor has been
displaced.
New Textile Policy.
Henry P. Kendall, So, textile manu-
facturer, is largely responsible for the
movement now under way in the textile
cotton industry to abolish night work
for women.
The cotton textile institute decided to
put the policy into effect whenever rs
per cent of the companies voted to join
in the move. Already more than 80
per cent have agreed to join, so the
experiment is now being undertaken.
Mr.. Kendall, whose own company has
worked out unique profit-sharing and
stock-ownership plan, suggested this
policy for two specific reasons: First
to restrict overproduction, so prevalent
in the industry today, and Second-to
bring about reform badly needed.
Such an issue raises many others.
What will be done with the women who
are displaced by this new program?
Will they get jobs in the daytime
rather than at night? If they are
given daytime jobs, can production be
curtailed? If the industry has not
sufficient support to carry the present
numbers of textile employees, what con-
structive plan has the cotton textile
institute in mind to secure other work
Z for those who are thus deprived of their
: opportunity to labor?
This shows the completely Of the
: issues involved in this simple proposal.
: Urges Silver Conference.
! Francis H. Brownell, chairman of the
: board of the American Smelling g. Re-
timing Co., wants a world silver con-
: ference to be called Immediately to deal
with the falling price of silver.
! According to this recognized silver
authority, the drop to 80 cents an ounce
and less was not due to the overpro-
: ductton Of silver, but to the placing on
, the market of 100000 ounces of sill
: yer yearly by the government of India.
This nation has gone on a gold basis,
! and as a result has been trying to I'M
: load its huge stock of 400, 000, 900 ounces
: of silver on the world market. But who
: wants it? The great silver nations of
: the world before the war were China
: and India. Now both of these nations
2 are attempting to get on the gold basis
That's the rub!
If the governments Of India and Great
Britain (the silver-selling countries)
were to agree not to sell silver below
: fair price, the present silver situa-
= ton would pass, said Mr.. Brownell
= But for the United States to loan
+ $250,000,000 worth of silver to China,
% such as was suggested by the Pitman
. Committee of the United States Senate
in the last session of Congress, would
only make it worse. Imagine the farm
+ ers of Australia telling the hard-pressed
!, American wheat farmers that they
would loan them another 250,0 00, 900
bushels of wheat to tide them over the
wheat crisis.
Yet that's about what a silver loan
Z to China means!
American Exports.
Every one knows now that American
exports in 1880 amounted to $3,S41 ,407,-
000-and American imports to So 061,-
369 ,oOO-a decrease of 81 per cent and
81 per cent, respectively, compared with
the year 1929.
But this decline was not due pri-
p marily to lower volume; it was largely
due to lower prices. For the foreign
trade of the United States is still better
than 80 per cent greater in volume than
in 1913.
The decline in volume last year, ac-
cordng to the New York Trust Co, was
actually no more than between II and
, Is per cent since prices Of both exports
and imports were fully IS per cent lower
: than they were in 1929.
DR.. Max Winkler. New York invest
ment banker, estimated recently that at
the end of 1880 American investments
ties had reached S17,528, 000, 900.
OF this amount, about $500, 900, 900
represented so-called direct investments
namely, the ownership of branch fac
tories, and other income producing
properties. While the balance was in
securities of foreign corporations and
governments, purchased by American
citizens.
How can all this money be paid backp
Only by allowing these countries to sell
to the United States TO pay for the
goods we sell TO them. The time has
arrived when a definite foreign trade
policy should be worked out by the
United States in its dealings with the
rest Of the world.
Investment Policy.
T. B. Macaulay, president of the Sun
Life Assurance Co. of Canada, told his
stockholders at the annual meeting that
life insurance companies holding in
vestment securities permanently might
in unusual times, be wise in taking
profits.
Common stocks have one undesira-
bic feature" observed Mr. Macaulay
their liability to fiuctuation in market
value. This Is less pronounced in the
case of preferred stocks and bonds
Nevertheless, the Sun Life continues
to buy common stocks. For the COM
pany invested S26,000000 more in COM
mon stocks during 1880.
The report of the company separates
its bonds, preferred and guaranteed
stocks and common stocks, into three
groups. 1t gives the book value fol-
each group and the market value at the
close of the year.
In $780, its bond holdings had a book
value of S89.471 900. a decrease Of
$2,2l9, 900 for the year There was also
decrease of $35l5000 on the book
value of s31 100000 of preferred anc