Evening star., 1933-10-29
Government Employees Await
Cost of Living Decision
With Anxiety.
INDEX ABOVE 1876 MEANS
RETURN OF PART OF CUT
Figure Prevailing December 81
Will Establish Wages for
Six Months.

With the cost of living in Washington
definitely on the upgrade. due to ris-
ing prices Of the recovery program
Government employees anxiously are
wondering where that salary baro-
meter-the living lndeX-Wili
stand when President Roosevelt weighs
it against the 15 per cent pay cut on
December 81, next.
1t is the rise and fall Of the cost of
living barometer that means fall
weather or foul along the Federal pay
horizon The Lowered living costs since
1923 have been responsible for the
salary reduction-at least the salary
reduction was based on cost of living
declines.
When the cost of living rises sufh-
ciently to bring it within Is per cent OF
costs prevailing in the base year, 1928,
the IS per cent pay reduction can be
eas peics IT s.
costs continue to increase until they are
equal to those five years ago the Is per
cent slash will be eliminated
Legislation Possible.
OF course, Congress in January may
sect fit to enact new legislation gov
erning Federal pay. There are many
never should have been imposed-that
Uncle Sam set queer example for prl-
vate employers to follow at time when
the cry was for increased wages in in
dustry. The price index method of
computing cuts under present law has
come in for bitter criticism. Oppo-
nents of the plan insist it is impossible
to arrive at an equitable determination
OF salaries by studying living costs in
1923 or any other certain year except
the present.
The Presidents aides are watching
the rising trend in preparation for his
semi-annual determination of the cost
of-living index at the close of this year.
Under the salary cut law of March 20
last the President is authorized twice
a year to compare the status of COM
modify prices with the 1928 base level
with a view to determining whether
continuation of the Is per cent reduc-
ticn is justified
The law has fixed as the basis for
comparison the cost-of-living index
figure. Ill, calculated by Department
CT Labor statisticians for the first six
months of 1928. The statisticians ar
rived at this figure by comparing prices
of certain essential commodities in 1928
with those prevailing in 1914 year
used as the foundation for the Labor
Department retail price statistics. The
1928 index of I'll means. simply, that
the cost of living in 1928 was II per
cent higher than in 1918. 1t is pointed
cut in this connection that no effort
was made to increase Government pay
in proportion to the increased cost OF
living
Cut Called justified.
With I'll. therefore. as a base for
Judging the rise or fall OF living costs
since 1923, the President announced on
March 30 last that the index figure
had declined to 133.9-a drop OF PIT
per cent-and that a decrease OF Is
per cent in Federal salaries (the maxi
mum allowed by the law passed nine
days before) was proper.
On June 20 last, as provided by law:
he again considered the question OF
nounced that the cost index had
dropped even further, to 1902. a level
23.9 per cent below that of the base
year, 1928. The IS per cent maximum
pay cut, therefore. must continue, he
ruled.
Since then definite change has
come over the situation. With the N.
r. A. swinging into action with all
sorts OF codes, and with other Govern
ment agencies seeking to raise prices
and restore business. the pendulum has
begun to swing back. People are pay
ing more for food. the clothing on their
backs and other essentials and comforts
Of life.
The cost of living surely is going up.
The index figure today undoubtedly is
higher than it was six months ago
Will it have risen enough by December
81 to justify a revision downward of
the Federal pay cut?
156 is Bottom Level.
II the ost-of living indicator points
to l56 at that time, it means that the
price level has risen to a point Is per
cent below that of the base year. 1928.
No change in the salary situation
would be involved, under existing
policy. Hard-pressed Federal employees
would have to battle just that much
harder 10 make both ends meet.
Suppose the index figure rose to 1853
by December 81. That would mean a
rise in living costs to within 8 per cent
Of the high level Of 1923. Under the
present law it would mean. also. that
Federal salaries would go up per cent
for the next six months II the index
rose to III the pay cut would be wholly
wiped out.
An encouraging development re-
Gently in connection with the semi-an-
ual study Of Government salaries by
the President is the indication that
recognition finally will be given to the
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