Evening star., 1932-08-24
BUSINESS UPTURN
IS SEEN BY LABOR
A.F. L. Is Uncertain of Scope
of Betterment in Survey
of Conditions.

The American Federation of Labor
said today 1t sees signs of improvement
in business, but is uncertain as to lts
scope.
In its monthly survey of business, the
labor organization asserted the last
month has brought about a change IN
the business spirit resembling the nrSt
gleam of light after dark night Ihe
stock market labor observed, quickly
responding, started upward, making the
greatest gains since 1929.
Labor'S report was viewed as Slgnln-
cant in both private and governmental
circles here because for the last two
years its views have not been optimistic
about the situation o. many respects.
The new spirit is not without 1oun-
dation," the report asserted, put II
takes more than a gleam OF light to as
sure a clear day, and no one can tel
yet whether the change from gloom 10
hope will be followed by real business
improvement"
Basis for Confidence.
1t listed as the basis of growing con-
fidence the following: The Lausanne
agreement, the end of the raids on our
gold and restored confidence IN out
dollar, the fact that bank failures nave
been checked for several months, better
farm prices and increasing farm pur-
chasing power and powerful Govern
ment aids TO recovery.
Labor said the stock rise has not beer
followed by business improvement and II
cited both Government and private sta
tistics to show that unemployment L
on the increase and workers income are
the lowest since the depression began
The Labor Departments survey showed
employment down 8 per cent and pay
roll earnings off 6.3 per cent for july
in comparison with June figures.
The report warned that business
cannot recover from the top down.
Until production increases and work
ers have jobs, and their buying car
bring in orders from stores to factories
ard thence, to farms and mines, and In
| crease railroad traffic, we shall have M
real basis for business recovery i
| added.
Buying Power Foundation.
Workers buying power, based OF
| Jobs" the report asserted, lis the foun
, dation. The gain, so far, has been IL
| prices"
The survey discussed the question
whether Government help will leave
us better off, 1t cited the new instru
ments for business improvement which
! Congress has put into the hands of thu
administration. such as the ReconStruc
ton Finance Corporation.
| THE Government" it said, "can US
these new facilities to restore economi
balance and lay foundations for th
orderly business progress; or it can us'
them to increase business activity with
! out permanent improvement. Unles
the Government is watchful for th'
! interests of all. power may be concen
trated in the hands of few, who viii
use it for selfiSh ends, injurious to th
general welfare"
Labor charged that banks are still
Withholding credit. and took the viev
the depression cure" is not getting a
! fundamentals.
With reference to the business con
| ference to be held here Friday to dis
cuss credit expansion and programs Il
create jobs. the survey commented OF
! the fact that labor had not been &C
corded an invitation to attend.
Can real progress be made for bet
! ter business balance with labor, Othe
producing groups and consumers lef
| out?" Labor asked. The conference viii
/ be attended by business men in prin
/ Clpdl CltltS
Cost $4,000 900 This Year.
Asserting that the relief problem i
worse than ever, the survey said
relief keeps on at its present rate with
out increasing, unemployment will cos
the citizens of 1875 cities $500 90
| this year, the cost last year being ap
proximately $175,000,000.
Yet relief payments" the repor
said, "are totally inadequate and tn
unemployed are living at starvation
levels, with undernourishment, sickness
insanity increasing. In June, 1887
11,O23000 were without work and tn
jobless army increased in July by sev
eral hundred thousands"
In conclusion the survey said tn
Reconstruction Finance Corporation
| loans have saved the banks, but the
have not created employment"