Evening star., 1933-01-01

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proposed that there be no reduction In
wages.
Suppose those present had been
gifted with telescope sight which per-
mitted them in 1929 to see ahead to
1882 with its thousands of idle factories
and millions of unemployed men and
women. Instead of adopting the sug-
gestion that 1929 wages be maintained,
those present at the conference might
well have decided that the more impor-
tant objective was to hold their work
ing forces together. This would involve
dividing the work as business contract
ed, shortening the hours and the wages
proportionately as necessity demanded,
but firing nobody so long as it was pos
sible to retain him on the pay roll.
Instead of this, the old familiar dis
astrous method was followed. There
are few honorable exceptions, but In
the great majority of the factories,
stores and Offices the procedure was to
lay off workers as fast as the need for
their services disappeared The largest
surplus of unemployed in history was
thus built up. BY the end of 1881 it
numbered 100000 people In the
United States. BY the end of July,
1882, it totaled 10000, 900.
Ten million unemployed is more than
one-ffth of the $4,000, 900 wage and
salary earners Of America. With their
families and dependents they constitute
one-hfth OF the total population OF
122, 100000. No wonder industry stalled.
no wonder goods multiplied and sur
pluses glutted our warehouses as trade
dwindled to trickle and disappeared
QItnOnfhnY- frl Er,or .xr;f
OF the public bereft Of the wherewithal
to buyl
When the first group of men and
women was released from steady en-
ployment prosperity began to wane
The purchasing power of this group had
disappeared. They were no longer able
to buy of their neighbors on the same
scale as before. Eventually, as result,
some Of their neighbors had to shut up
shop, or lost their jobs.
A fear complex seized those still en-
ployed. A striking example of this
comes from the experience of certain
big retail store. It's employees are in
the habit of buying from it a large
proportion of their requirements other
than food. Conditions forced the store
to retrench, and it cut wages 10 per
cent. Immediately the purchases of
but go per cent.
And so it has been with millions of
others among those still employed.
Fearing that they too might be thrown
out of work at the next cut, they be-
gan to scrimp. They bought only what
they imperatively needed. and as little
of it as they could scrape along on.
They kept the old automobile, and used
1t as little as possible. They postponed
papering the house and grading the
lawn. They held on to clothes that or
dinarily would have gone to the Saliva
tion Army Their purchases OF some
commodities shrank, not so per cent,
but full 100 per cent-they cut them,
out altogether. And factories and stores
felt the pinch, decided that they must
retrench, and so dropped more workers
from their pay rolls.
1t was this process-this vicious cir
Gle of losing trade, firing employees as a
measure of economy and thereby re-
ducing still further the buying ability
of the public-that brought us to the
crisis of the Summer of 1892.
Leaders Act Quickly.
Fortunately, the disastrous potenu-
alities of this crisis were known to few.
The more pressing problems we're han
died by the national administration, by
Congress and by the groups called in
by the President and his associates for
consultation.
But at last we reached the point
where there was no longer any question
OF the ship keeping afloat. The storm
had abated, the hold had been bailed,
repairs were under way. Even though
the skies were lifting, at the end of
August President Hoover summoned to
washington representative bankers and
industrialists from all parts of the
United States for discussion of meas
ures to hasten recovery.
These business men who assembled
in the National Capital agreed that it
was vain TO expect prosperity with
100000 of our fellow citizens denied
the means of earning a livelihood. To
cure the depression we must cure the
unemployment-and the only cure for
unemployment is employment.
Out of this obvious decision grew the
Nationwide Share-the-j Job movement.
The idea was not original with the con-
ference, several industrial concerns had
been practicing 1t ever since the first
year of the depression; the idea, there
fore, was no mere theory, but a tested.
demonstrated policy of MANAGEMENT.
Under auspices of the banking and in
dustrial group a co-ordinating COM
mittee was formed to steer the move
ment into every city and village of the
land. We organized on a national
basis, with representative committee
man in each of the IL Federal Reserve
districts-and began operations on Sep
tember /.
The first aim was to check the up
ward trend of unemployment-and we
now think that we have largely accom-
plished this objective. Last August ii
was quite typical for an employer, If
ne found a few unnecessary people on
his pay roll, to discharge them. Today
ne feels more responsible.
In one town where the share-the-
work principle was explained the man
ager OF a cement plant said: Il fired
six men this morning and planned to
fre six more at the end of this week
But now I've decided not to IRE the
six, and I'll rearrange the hours SO
that can take back those other six"
The American Telephone and Tele-
graph Co. has retained 48,600 employees
as result of its work-sharing plan
and General Motors over IS. 200. The