Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25

duced industrial activity. I refer to
the device of dividing the available
work in given industry among all
the employees instead Of laying some Of
them off and retaining the others on
a full-tine basis. While this practice
gives to the employees less work and
correspondingly less pay, it at least
maintains their ranks intact. Why
should industry, having had sufficient
work for group of five full-time
workers, and now finding that there is
only enough work for four working full
time, take away all the work from one
in order that the remaining four may
continue to be employed full time? Can
you think of case of a shortage of
anything else but work that We would
undertake to solve in this way? Surely
If there were shortage of food or a
shortage Of water, or shortage Of
anything that contributes directly to
sustaining life, it would never occur
to any one that part of the people
should be deprived entirely in order
that another part might be supplied
fully.
Division of Work.
Now, in view of the reaching ef-
fects upon employment of dividing the
work. we may we'll ask why the Fed
eral Government in times of emergency.
such as the present. could not dedicate
part of the sums already appropriated
for direct relief and expanded public
the pay rolls of concerns which divide
their work, The procedure proposed
to cope with the existing emergency is
based on the same principle that under
lies employment sterilization by means
Of fund built up in time Of prosperity
by contributions of employers and en-
ployes. I am, therefore, proposing a
division of work in industrial esta blish-
ments so as gradually to re-employ all
workers who have been laid off, with
out changing basic hourly rates Of pay,
but with half the consequent loss il
weekly wages made up by contribu-
tons from the Reconstruction Finance
Corporation, under authority to be OBJ
tanned from the next Congress.
Under this emergency procedure en-
ployers. employees and the Federal Gov
eminent would cooperate in the fol-
lowing manner:
% The force In any establishment
applying for participation would be
gradually increased to its former normal
strength, and the working hours would
be correspondingly reduced.
CD The total amount of the pay roll
of the present force would be distrib-
uted among the increased force to form
their new basic pay.
CD To such basic pay the Recon-
struction Finance Corporation would
contribute weekly for each employe a
sum equal to one-half Of the difference
between the present average weekly pay
and the proposed basic weekly pay. In
no case, however, would the contribu-
ton exceed 50 a week per employe
This emergency procedure Is designed
to accomplish, as nearly as practicable,
the purpose of an employment stabil-
ization reserve fund,
There are no reliable data at present
to show the total number Of unem-
ployed, the average hours of labor a
week. or the average earnings. Roughly
estimated, however, there are now
100000 unemployed exclusive OF
agricultural workers. and those en-
ployed are working about 40 hours a
week, and earning about $40 week
This represents an average shrinkage
of about Is per cent. Under such q
shrinkage, there would be contributed
by the Reconstruction Finance Corpora
ton to an establishment applying fo'