Evening star., 1934-09-23
Imitation Preachers Busy.

1IeIe S NOlIllllS very COllNILCIlle III
the rally in stocks and in speculative
bonds. This may be only one of the
many sidewise movements that have
occurred this year. 1t is rather sig
nificant that the leaders have been
from those groups that might be eX-
pected to gain most from imitation.
We are again hearing of American
capital being exported to those Utopias
abroad where there are no social or
political or financial problems to
worry the capitalist, so it is to be ex-
pected that, from time to time, the
holder of bonds or bank funds with
out increment will venture into the
field of equities" The remarkable
shifting, when one considers the per-
sistency with which imitation is
preached by certain small groups Of
politicians and business men and the
constant attacks. by inference, on
Government credit by Wall Street
publicists. There is no more evidence
today than a year ago that institu-
tions that would have much to lose
from the type of imitation most dread
ed are liquidating their fixed interest
corporation securities or are turning
their Treasury issues into cash.
The Advisory Council of the Fed
eral Reserve Board is composed of IL
cool and dispassionate bankers, who
could hardly be said to be apostles
of the new monetary system in this
country. Yet. at their conference in
Washington this week. their view was
that revaluation of the dollar, now
that it has been devalued to 5906
cents. would be unfortunate. but that
stabilization. or a fixed dollar value,
is highly desirable as a stimulant to
public confidence.
The council also agreed. after its
studies of the situation, that the con-
dition of the Treasury is excellent
rent expenses without resort to that
imitation about which Wall Street
never ceases to talk.
Relief Problem Ahead.
The most serious matter with which
the Federal Government must deal
in the next six months is emergency
relief. In August the increase in the
number of workers in industry was
5000 over July. Wages were up
about 5 2 per cent. This was due to
seasonal jobs which run out in the
Autumn. There we're on the public
pay rolls in August a total of 1851 900
men. About so per cent of these we're
engaged in P w A projects. another
80 per cent in the C. c. C. Admins
trof Ioa oi,,i,,
cent in State road improvement. In
the same period the official figures in
dicate that about 3.750.000 workers
were employed by 80 important manu-
featuring industries.
For the one group the Department
of Labor gives the wages by weeks,
and for the other by months, so only
approximate comparisons of the pay
of each can be made These show
that the average monthly wage of the
public employees is slightly over $50
and that of the privately employed
persons a little more than SIS. In
neither case is it extravagant when
reduced to weekly basis. The C. c. c.
men. of course. receive their keep"
in addition to their 81 a day.
These million and a quarter, who
are costing the Federal Government
from $750000,000 to $500, 100000 a
year, would be added to the relief rolls
if not given something to do. Their
numbers will undoubtedly be in
creased in 1885, as public works ex-
penditures are steadily growing. hav-
ing risen in the past eight months
200 per cent over the same period
in 1888.
The problem is with those who will
still be unemployed. 1t is estimated
that by February there will be 5,o0o.-
900 American families, or about IS
per cent Of the population, requiring
help. How are they to be financed?
The strain on State and municipal
budgets caused by the relief item is
becoming severe. 1t has compelled
in New York City new kind Of tax
one that taxes Federal income taxes.
An astonishing fact connected with
this levy is that 10000 New York
public employees will be exempt from
payment Of this tax, as they have
constitutional immunity as servants Of
the State.
This is a situation that demands
change. If all the present exemptions
Of State employees. holders Of tax-free
| ICyopt;r,,ad ~, T1,ir-s pace