Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-08
GREEN LAYS CRISIS
CAUSE TO4NDUSTRY
A. F. |. President Hits MAR.
ket-Destroying Policies"
of Business.

NEW YORK, March 8.-William
Green, president Of the American Fed
Grafton of Labor, in an address before
the New York Board of Trade, Inc,
asserted today that industry itself is
responsible for the Nations economic
predicament, and that industrial man
agement must lead the way out.
Industry, said Green, who announced
yesterday in Washington that labor
would demand higher wages If prices
90 up as a result Of the present bank
ing situation, launched destructive
attack upon their own consuming mar
ket through the enforcement Of lower
wages and reduced buying power"
Declares Labor Restless.
He expressed the opinion that ut
would be a fatal mistake for the bust
ness and professional interests of the
Nation to assume that labor will con-
tinue to exercise disciplinary control
and self restraint if they are forced to
suffer Undesirable npoverishment and
For more than three years" he said,
they Oabor) have exhibited a coura ge
and loyalty which has challenged ma
tional and community admiration.
AT the present moment they are i'm
patient. They are the real victims OF
unemployment and economic distress.
They are firmly convinced that indus
trial management and those who ac-
tually control the financial and indus
trial affairs Of the Nation have re-
fused to accept the remedies which
labor proposed and have failed to deal
with a great emergency in construc-
tive and practical way"
Green expressed the opinion that
"the behavior of much of industrial
management and of the representatives
of many financial institutions" during
the last three years has been most
unwise and injurious"
Challenges Contention.
While those in control of industry
NAV contend" he said. that lowered
wages reduce costs Of production, they
fail to consider that any alleged benefit
resulting from such lowered cost is Off
set by the further limitations placed
upon the consuming market. and the
further reduction imposed Upon the
purchasing power of the people.
1T has been very costly lesson
Many industrial managers are publicly
admitting. the mistake made. stating
that industry has gone too far In its
market destroying policies"
Declaring that the Nations consum-
ing market In 1882 was sos, 900 ,000, 00C
less than 1t was in 1929, Green added
These figures represent facts which
can not be controverted. They show
that, II the Nation is compelled to buy
less OF manufactured gooSS. there must
be q proportional decline in the sale Of
manufactured products.
Sees Answer.
Here Is the answer to why markets
were destroyed, why there Is a contrac-
ton of the Nations consuming power
and why there are silent mills, factories
and workshops throughout the land
"' - The present situation calls fol-
direct, immediate action. The clear
call Of the moment Is to industrial
management to make such adjustment,
and to initiate such policies as may be
necessary to provide employment fol
idle people and to return them to the
ercise their maximum buying power and
thus create a demand for marketable
goods.
1.-THE question is, will industrial man.
agement face these facts and is it re.
sourceful and courageous enough t.
work out a plan and apply the meth.
DDS necessary to achieve results? Have
we In the United States owners Of
indllStrv who will boldly chart a course
which industrial management may bs
required to follow in order to overcome
unemployment"
Predicts Government Ownership.
Commenting on the loans by the Re.
construction Finance Corporation Il
the railroads, Green said:
There are many people who believe
these loans will never be repaid anc
that ultimately the railroads of the
country will be Government owned ant
Government-oper They regare
these loans as the initial step in Gov.
eminent ownership of railroads"