Evening star., 1932-05-14
GREEN DENOUNCES
PAY CUTS IN TALK
TO COMMERCE BODY
Labor Leader Tells Chamber
Reduction Policy Is "Under-
writing Depression"
RESOLUTION OPPOSES
FEDERAL WAGE SLASH
Regulation of Taxicabs and install
lation of Meters Approved
on Keneipp's Report.

Scathingly denouncing "the primitive
policy Of wage-cutting as a remedy for
industrial ills. William Green, president
of the American Federation of Labor,
last night called for the absolute aban-
donment by Congress of efforts to re-
duce the salaries of Government en-
ployes as means of balancing the
budget"
Speaking before a packed meeting of
the Washington Chamber of Commerce
in the Mayf1ower Hotel, the labor leader
branded wage-cutting as underwriting
the depression" asserting that each sue
! ceeding salary reduction places the liv-
ing standards and the consuming power
of the masses of the people on lower
level
THE budget can be balanced without
| resorting to wage cutting by the Fed
! eral Government" Mr.. Green declared.
Valuable Factors.
ut may be possible to limit and cur
tail private industry and to destroy it
completely through ruinous competition
and wage reductions, but such a condi-
ton must not and cannot be brought
about in the administration of the af-
fairs of Government" he asserted. "The
Government can very properly reduce
expenses through the elimination of
wasteful processes and duplication of
effort and through the pursuit of wise
economic policies and efficient plan
ming and craftsmanship, but 1t dare not
imperil the basic work of the Govern
ment or the orderly functioning of the
various branches of the Government.
Efnciency and high morale on the
part OF the Government employees are
valuable factors which should be pre-
served and encouraged in order to
guarantee the maintenance of the ad-
minlStrative work of the Government
upon high and serviceable plane.
These valuable attributes cannot be
preserved If Government workers are
forced to forego the enjoyment of liv-
ing standards which have been progress
slvely erected through years of effort
and service"
The greatest evil of wage-cutting, the
labor leader said, is the PSYCHOLOGICAL
effect on not only its victims, but work.
erS and consumers everywhere. In pur-
suing this unsound policy, he continued,
the fact must be taken into account
tnat the volume of goods produced and
solo must shrink in an amount ex-
ceeding the size OF the wage reduction
imposed.
Results in Hoarding.
Fear of another wage reduction and
the creation of lack of confidence
causes people to husband their re-
sources, to economic and to hoard saw
1ngs," Mr.. Green declared. Buying
power Is frozen when wages go down
and consuming power increases when
wages go up and commodity prices in
crease"
Labor, Mr.. Green asserted, refused to
accept the unsound, demoralizing prin-
ciple Of economic philosophy that cheap
labor; cheap prices, with lowered
standards of living, makes for pros
| perity. Labor has long understood
that II the buying power of the masses
OF the people is constantly reduced
through the imposition of wage reduc-
tions unemployment increases, social
dlstress prevails and industry suffers.
Wage-cutting is like blood-letting. 1t
leaves the patient weakened and ex-
hausted."
Continuing, Mr. Green said: "Manv
OF the reasons assigned for the impo-
Sitlon OF reductions in wages in private
industry do not apply to the Govern
ment or to employees of the Govern
ment. The competitive argument can
not apply nor can the alleged sheer ne
cessities claimed by private EMPLOYERS
as justification for reductions in wage
earners' pay apply to the Federal Coy
ernment.
Should Be Abandoned.
The savings which would accrue to
the Treasury of the United States as a
result Of pay cuts imposed upon Federal
workers would be comparatively incon-
sequential. The Federal budget cannot
be balanced by a reduction in salaries
alone. Many acts will be necessary to
balance the budget. There are certain
expenditures which cannot be curtailed
but there are many avenues open for
ways of economy.
These avenues should be pursued
and the attempts to force a reduction
IN wages upon the underpaid group of
Government employees should be abso-
lutely abandoned"
Emphasizing the opposition of the
American Federation of Labor to anv
form of wage reduction, Mr.. Green said
that his group is stanchly opposed to
the Presidents five-day week and fur
Tough plan. The IL per cent pay cut
plan for workers earning $2,500 and
over is the lesser of the two evils" the
speaker said Labor has consistently
advocated the five-day week, eight-hour
day as means of equalizing employ
ment, but coupled with the require
ments under the Presidents plan the
economic sacrifices and price the work.
ers must pay is too great" Mr.. Green
said the Presidents plan would cost the
w-rkers twice as much as an IL per
cent pay cut.
Must Provide Work.
THE greatest task of the Govern
ment," Mr. Green asserted, "one which
transcends all others in importance, is
to provide work for the unemployed, to
relieve existing human distress, and to
restore the faith and confidence of the
American people in American business
in the financial institutions of our Ma
ton and in the integrity of the Govern
ment and its ability to govern wisely
and for the best good of all the people
A return to normal conditions depends
upon the development and application
OF sound, wise, constructive policies.
Wage-cutting must cease and the
people must be assured that it is at an
end If buying power is to be restored
and business is to be revived. The time
is here when the leadership of the Ma
tion, both in private industry and In
governmental affairs, must speak out
assuring the people that all our concen-
trated economic, industrial and govern
mental power will be utilized in an effort
to stop the decline in wage earners'
incomes and in commodity prices.
With the preservation OF wage stand
ards set for CnUerprnapt ou,rIo,,oz