Montana labor news., 1933-01-26
STATES JOIN IN
PROGRAM OF
WAGE-CUTTING
Legislatures Back Employ
ers With Budget Cuts.

NEW YORK-(F. P.)-Following
the lead of federal proposals and
municipal action, the states are COM
pleting the battering given govern
ment employees wages. "Take it out
of the workers hide" seems to be
the government motto all along the
line.
Jobs which have always been re-
garded as the most secure, and wage
standards previously on the upgrade,
will go before the smashing blows
Of legislature after legislature this
year. Pay-slashing employers will be
able to point to complete government
approval of wage cuts in the examples
set by city, state and national bodies,
while Legislators who have hitherto
decried private employers wage
slashing will be put to critical tests
when economy bills come before them.
Not only will wage schedules and
the number of jobs face cuts; relief
funds will also be slashed in many
states, and vital government func-
tions, such as education, road repairs
and welfare, will have to hobble along
on budgets stripped to the bone.
As the Wisconsin Federation of La
Dor has pointed out, state economy
at the expense of social services gives
property preference oven human and
social needs.
Every wage cut takes money out of
the pockets of sui and makes
it harder for them to buy the products
of other workers; therefore, while
state wage cuts may ease the burden
of big real estate owners, they hit
the farmer and worker.
The seriousness of the situation is
substantiated by the American Legis-
%lators' Association, which, after a sur
vey, reported that economy-which
means wage cuts-will be the para
mount question when 43 legislatures
meet. About SO states will consider
eliminating bureaus and consolidat-
ing departments"-which neal fir
ing employees. The sales tax will also
be a prime question, the legislators
association says-and the sales tax
merely takes some of the taxes from
the property owners and loads it on
the consumers back.
The South will be hardest hit. Ten
nessee's deficit, for instance, is 49,
400, 900, ever though the legislature
cut appropriations IL per cent at an
extra session last year. Officials es-
innate the deficit will amount to more
than S11, 100000 by July l. In one
day Tennessee's senate saw bills intro
duced to abolish four normal schools,
the Tennessee Polytechnic Institute
and the University of Tennessee junior
college, and prepared a resolution
aimed at investigating expenses with
a view to drastic wage cuts.
The assemblies of Georgia, South
Carolina and Arkansas are preparing
? wage cuts. Georgia has a deficit es-
) timated at SO, 200, 900. Governor Rus
sell has been given power to cut ex-
) penses whenever state revenue drops
: and he has already shipped 11h pei
I cent from the budget. Gov.-elect Eu-
gene Talmadge is pledged to further
! economies, and to decreasing real es-
: tate taxes and diverting highway
e funds.
: Virginia has given her governor the
: same power to slash expenses, anc
Governor Pollard has already used ii
: to cut 81, 800, 900 last July and to order
e a 10 per cent cut in appropriation
this year.
: South Cardinals deficit is yet I'M
d estimated. Members of the assembly
J have suggested a sales tax, but wage
cuts will also be in order.
d New Jersey is considering recon-
n ~mendations for a $14,013,000 bulge
e slash, to be effected by firing ant
e wage cuts, and by cutting expendi
lures for highways and state insti
buttons. The board of education j
o planning to cut the number and siz'
d of normal schools, since there is al
ready a surplus of teachers.
e North Dakota's Governor LANCER, il
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