Evening star., 1933-06-19
Uncle Sans Right Arm.

depression. One of these strong
arms is personified by Gen Hugh S.
johnson, chairman of the Industrial
Administrative Board, and one of the
big tasks facing Gen. Johnson is not
only to spread the opportunity for en-
ployment and the earning Of wages,
but to raise the level of wages.
One of the reasons for raising the
level Of wages is to keep pace with the
efforts of another arm of Uncle Sam,
personiied by Secretary of Agriculture
Wallace. whose biggest task is to raise
prices. If prices begin to rise and
wages do not keep up with prices, then
Uncle Sans two arms can do little ef-
fective work with the shovel now being
welded and an accident of some sort
is apt to happen and somebody will be
crippled.
Gen. Johnson spoke over the radio
Friday night to the delegates to the
annual convention Of the National Coal
Association, and he told them, with
other things, that a critical economic
stage has already been reached and
that is there Is the danger Of re-
lapse because prices have risen faster
and further than wages. About the
same time Secretary of Agriculture
Wallace was announcing the new proc
essing tax of thirty cents a bushel on
wheat shortly to be followed by a tax
of possibly four or five cents pound on
cotton, and other processing taxes on
other basic farm commodities directly
affecting the cost of living. These taxes,
Of course, will be passed on down the
line to the consumer. The professors
have been generous enough SO far to
say that their best efforts will be put
forward in seeing that no more than
the amount of the tax will be passed
to the consumer.
Prices have risen and still seem to
be on the upgrade and this is, Of
course, an excellent sign. If the rise in
farm products continues it may be un-
necessary long to levy the processing
taxes to pay the farmers to restrict
production. But it is yet too early to
know definitely how much of the rise
in prices is psychological, resulting in
part from the inflationary aspects of
the recovery program, and how much
of it is based on more solid foundations.
If the depression cycle is reversed, and
buying power is really restored and wages
are increased, the rise in prices will
continue, and the solid foundations for
real prosperity will be laid. But If wages
lag while prices are artificially stimu-
lated by such moves as actual currency
debasement, then there is more trouble
in the wind. Everybody should pray for
strength for that arm Of Government
which Gen. Johnson represents, and
which is working to boost wages and
spread employment.
If that arm becomes weakened and
ineffective, no better example OF the
consequences can be chosen than the
probable effect in Washington, where
heroic efforts are being made to bal
ance the budget. One of the heavy
contributions to budget balancing was
exacted from the Federal wage earners
in the form Of Is per cent salary cut,
and reductions in personnel But If the
price rise is artificially stimulated by
in nj
will be on the Government budget.
Wage earners in Government service
were reduced in salary in some proper
ton to the reduction in cost of living.
But if the cost of living shoots up with
prices. then Government costs, includ-
ing living wages to Government per-
unless there are proportionate increases
in wages and incomes and real business
throughout the country, revenues will
be lacking TO keep pace with the Gov
ernment's greater budgetary expenses
Meeting the deficit by the printing press
would serve merely to increase the
speed of the presses.
While Secretary Wallace is intrusted
with an important job in raising prices
the real heft to the shovel must come
from Gen. johnson and that form OF
Industrial control which lies in seeing tc
it that wages are raised as prices are
raised. If the cost Of living, say, should
increase by fifteen or twenty per cent
within the next year, one of the delcga
/ tons that Gen. johnson will find wait
ing on his doorstep some bright morn
ing will come bearing a petition from
/ the workers in the Federal service
Many homes are eagerly preparing tc
serve 80 beer on a commercial basis
! A grave doubt asserts itself as to whether