Evening star., 1933-07-08
Organization to Be Completed
to Mobilize Workers Where
They Are Needed.
LIVING COST INCREASES
AHEAD OF EMPLOYMENT
Roosevelt and Johnson May Act to
Curb Production Unless More
Men Are Put to Work.

The administration spread further
today its multifold effort to put more
men to work Immediately at higher pay
and thus attain the increased purchas-
ing power necessary for real prosperity.
The Labor Department called in off,
cials from 26 States to shape frame
work for the new cooperative employ
ment service. At the suggestion of Presi-
dent Roosevelt the recovery admins
tratlon sought means to curb the squirt
OF production, but at the same time to
assure new jobs and more pay now.
The State officials were from 20
commonwealths which already have
employment agencies Their work is
to be co-ordinated through a Federal
clearing house, so that if there is an
unemployed bricklayer in one State
and a job for him In another he NAV
be told about the job
This arrangement, called for by the
recently enacted Wagner-Peyser law, is
to assist in mobilizing workers for the
Living Costs Increase.
At the same time President Roosevelt
and Hugh S. johnson. industrial ad-
ministrator, were represented as con-
cerned at the fact that production and
living costs had increased more since
March than had pay and the rate of
employment.
They were advised that scme manu-
facturerS were taking advantage of
present low costs to lay up stocks Of
goods for later sale at higher prices
That would have been all right had it
been done by the employment OF more
workers or had workers been given
more money
But the President and Johnson were
told that some producers simply were
working their present employees over
time.
To stimulate agreements by industries
to limit hours and raise pay, johnson
yesterday warned that IF We can't
come along here with increased pur-
chasing power to support this higher
production, I shudder to think what
will happen"
While he was making that state
ment the American Federation of
Labor, in a monthly survey, reported
that 100000 unemployed had gone
back to work from March to May, but
that the workers pay had risen only
% per cent, while food costs were go
ing up 3.3 per cent.
Code Still Held Up.
Both the President and johnson sus-
pect some manufacturers are working
overtime to fill up their shelves before
the contemplated codes go into effect.
Thus far hearings have heen he'd on
one proposed agreement, that affecting
the textile industry 1t has not been
formally submitted to Mr. Roosevelt by
johnson, but probably soon will be. and
the administrator hope is this Will
be first in swift succession
Mr. Roosevelt has carefully studied
charts showing steady increases in
prices for farm products and manufac-
tured gods and gains also in both pro-
duction and employment.
But the employment line has not
climbed as rapidly as the production
line The President regards this as dis
tinctly unhealthy and as something re-
quiring immediate attention.
The Chief Executive is satisfied in
dustry will support the industrial recov-
cry program and there will. be series
of codes to control production, hours OF
work and to fix minimum wages agreed
upon in the near future.
The charts from 1922 to 1928 show
production and employment near the
same level During the boom year of
1929 the production line shot above the
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