Montana labor news., 1932-12-08
CUTTING WAGES
is NOT REMEDY


it must be conceded that there is an
appalling amount of loose thinking
and deliberate warping of the true
picture in connection with our rather
feeble attempts to struggle ourselves
out of the whole unnecessary eco
nomic %predicament in which this
country finds itself.
"The record of dividends paid by
the railroads, not to mention other
kinds of unearned increment, reveals
in bold relief the true causes of
present economic conditions.
ut proves that whatever may be
the condition Of unemployment and
mass poverty, dividends paid show
continuing improvement until the
point is reached where financial col
lapse is made imminent, due to the
trophied consuming power of the
masses.
at offers convincing proof of the
ever increasing concentration of
wealth in this country.
Machinery Injuries Workers.
at proves the devastating effect of
machine efficiency on the workers
of our country when industrial lead
ers adopt a policy of appropriating
the increasing fruits of machine eff
cheney for the enhancement of private
profit instead of utilizing a reason
able part of them by reducing the
working time and increasing the
hourly rate Of pay of workers.
"When we analyze the trends of
profits, dividends, expanded and often
inflated capital, and unemployment,
it is not difficult to determine who
is responsible for present economic
conditions.
"In the depressing year of 1881,
the people were led to believe that
our railroad industry was headed for
bankruptcy, but dividends paid that
year were almost equal to those paid
in the comparatively prosperous year
of 1925.
Large Profits Cause Unemployment.
"These facts clearly show that in
creasing private profits and a de-
termined resistance to any equitable
division of profits resulting from
modern efficiency have been the
causes of unemployment and a
poverty, the final result of which
has paralyzed our purchasing power
and resulted in a crisis that has
reached private profits and will de-
stroy private capital if permitted to
continue.
"Stating it another way, selfish
ness and greed result in universal
hardship, even to those who are
selfish and greedy"
Fallacy of Wage Cutting.
ut is apparent that the thinking
public and responsible leaders should
cease worrying so much about our
financial and productive systems and
begin to take action which will re-
vive the PROSTATE form of our mass
consuming power" Mr.. Whitney con-
Guided.
EFFECTIVE mass purchasing power
is the very life-blood of all business.
1t forms the structure IN which the
integrity of our financial institu-
tions must rest.
"When the source that gives life
blood is tapped, the body must be-
come weak and anemic.
"The flow of this life-blood of our
economic body may be increased only
by a fair distribution of wealth and
work through the adoption of shorter
work hours with increased hourly
rates of pay.
"Wage-cutting is tantamount to q
surgical practice that would bleed
a weak and anemic body.
"Idle talk about preserving the in.
tegrity of our financial institutions
at the expense of the consuming
masses is tantamount to a doctor pre-.
scribing a skin identifying treat
ment for a patient suffering from
chronic anemia."