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

- TABIL1ZATION of employment
to prevent unemployment and
periodic depreSSions, through di-
~ vision of available work among
all the workers, with the reduced
wage income supplemented from re-
serve fund, to which the workers. en-
ployerS and the Federal Government
would contribute, is being seriously con-
sidered by political, industrial and So
cial welfare leaders, it was disclosed to-
day by Herbert D. Brown, chief Of the
United States Bureau of Efficiency.
There can be no real relief from
the vicious circle of business depres-
sion and unemployment until We put
people back on the pay roll" said Mr..
Brown in discussing his program, about
which he has conferred with groups
representing the largest industries in
the country and the biggest industrial
and commercial associations. People
off the pay roll haven't anything with
which TO buy and the people who are
on the pay roll are deferred from buying
through fear, because they do not know
when they may be added to those out
of a job" he pointed out.
There must be prevention OF unem-
ployment," he declared.
Paid Only for Work Done.
He proposes system of pay roll
sterilization as substitute for I'M
= employment insurance. In other words,
paying each worker for work he does
insead Of paying him for sitting around
idle. He visions a system under which
the hours of work per week will be re-
duced in proportion to the decrease in
demand in times of depression, but I'M
der which the pay of the workers will
be reduced at only one-half the rate
. that the hours are reduced. The diff
= ference between full reduction and this
proposed half reduction to be paid to
the employe out of fund to be Gre
ated by contributions as a percentage
of pay roll by both the employer and
the employee. This fund would be held
in trust by the Federal Government for
such purpose.
In order that the employer who
comes into this plan shall not suffer
competitive handicap as against an
employer who discharges his surplus
workers and continues the longer hours
of work and who makes straight cuts
in his rates OF pay, 1t Is proposed under
the plan of Director Brown OF the
Bureau of Efficiency that the Federal
Government make contribution to this
pay roll stabilize ton fund in some such
manner as that proposed by Senator
Wagner of exempting the employer from
the payment of income taxes equal to
one-half of the amount contributed by
the employer to this fund Or, better
still, Mr.. Brown says. that the Govern
ment make a direct contribution in
order that the employer who has no
profits from which to make the deduc-
ton may also be helped by the Federal
Government
Emergency Plan.
Mr.. Brown also has preliminary, or
emergency plan, to be initiated and
operated principally by the Federal
restoration of workers to the jobs from
which they have been laid off. The
permanent Sterilization reserve plan is
designed to keep such workers in their
jobs in the future.
Mr. Brown points out some Of the
conditions underlying the problem of
unemployment, explains his permanent
employment sterilization reserve plan
and its operation. and indicates this
plan may be adapted to the present
emergency, as follows:
Unemployment Conditions.
It seems to me there can be no gen.
eral return of prosperity until the pur-
chasing power of the masses Of the
people is restored. That will only come
to pass when the people are generally
employed. The reason that define In
purchasing power accompanies or fol-
lows a decline in, employment is per-
fectly obvious. If the individual worker
loses his job or even fears that he will
lose it, his natural action is immediate
ly to limit expenditures to the barest
necessities of life. Those who are I'M
employed can continue their purchases
only as long as their savings last, and
when these are exhausted they become
dependent on relatives, friends or the
community. Those who continue to be
employed, and they form a much larger