Evening star., 1933-03-29
The Pay Cut.


The basic pay Of the employees, civil
and military, of the Federal Govern
ment has been slashed fifteen per cent
by order of President Roosevelt under
the authority given him in the recently
passed economy act. After the stock
market crash in 1929 and the business
depression had set in, former President
Hoover fought to maintain wage scales.
When finally a year ago 1t was de-
termined that Federal Government SAL
aries and wages must be cut Mr.. Hoover
advocated a furlough system, which
would save money to the Government
without changing the basic rate of pay,
in the hope that with better times the
furlough could be abandoned and the
rates OF pay would continue as before.
The effort of President Hoover was to
have the Government offer an example
through setting its face firmly against
lower wage scales.
The Roosevelt administrations econ
omy act takes a new slant. 1t proposes
in effect that the wages and salaries of
the Federal employees shall depend upon
the cost of living, as compared to 1928.
That is, If the cost Of living is shown
to be less than it was in 1928, the pay
cuts shall be in the same ratio, but In
no case shall they exceed fifteen per
cent. Unfortunately, and in the opin-
ion Of many unfairly, the new law
makes no provision for increasing the
basic wage scale of Government employees
if the cost of living rises above the cost
In 1928. If the plan now developed In
the economy act is continued In effect,
there is to be sliding scale OF Gov
eminent wages, determined by future
inquiries into the cost of living, made
at the end of each six months.
The fifteen per cent cut now ordered
is effective from April l to June 80
next, and during that interval a new
survey of the cost Of living will be
made. In the Executive order cutting
the pay fifteen per cent it was held that
the cost of living for the last six months
Of 1882 had declined 217 per cent be-
low the cost of living for the first six
months Of 1928.
The new pay cut falls on all en-
ployes Of the Government alike. The
old furlough system did not apply to
enlisted men in the Army and Navy,
nor to those civilian employees receiving
less than 81 900 a year. The old fur
Tough plan represented cut Of 81a
per cent. The furlough has been re-
pealed It Is estimated that the Is
per cent saving to the Government on
salaries and wages will amount to $780,
100000 in a year. The furlough plan
saved approximately $84,o0o,ooo. The
increased economy under the Roosevelt
plan, therefore, will be $1O6,5oO,0Oo
Wages and salaries all over the coun-
try have been cut with few exceptions.
There has been an insistent demand
from the country that the Government
wages be cut, in order that the tax bur-
den might be lightened. II the salary
and wage slash now made by the Gov
ernment is taken as an excuse for fur
ther cuts in pay all over the country,
those workers who have insisted that
there must be pay cuts for Federal en-
ployes may change their minds.
Government workers will tighten their
belts and make the sacrifice demanded
of them under the economy act II
it should prove to be in the interest
Of the whole country and aids in busi-
ness recovery, with increased prices, the
Government workers may hope for
eventually increased wages. Should the
demand for increased prices of COM
modities lead to a currency imitation
that would shoot the cost of living
far higher than it was in 1928-as cur
rency imitation might well do-the fail
ure of Congress to provide for increases
beyond the old basic pay of the Govern
ment workers would be q terrible in
justice, one that Congress should i'm
mediately remedy.
Inc new economy aCC pIoVlueS CIlat
the standard Of living for the workers
shall not go higher than the standard
Of living in the first six months of
1928. The law was written as an emer-
gency act, however. and written quickly
on behest of the President. Where it
is at fault it may be changed in the
future. As q practical matter, there
seems no prospect, for q while at least,
that the standard Of living for workers
and salaried employees may be raised.