The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-06
3O-H0UR WEEK
CALLED THREAT
TO TRADE GAIN
Would Elevate Costs and
Create Unstable Prices,
Leaders Aver.
BY W. IAN MACK
lines Special Writer

NEW YORK. Nov. 6.-Labor' s
growing clamOr for the adoption
Of a thirty-hour week in industry.
calculated to spread employment so
as 70 embrace most OF the remain
ing jobless. was assailed by num-
erous industrialists today as one
OF the greatest threats TO economic
recovery. such a program, i was
contended. inevitably would elevate
manufacturing costs. thereby des-
trov.nV the effects Of efforts toward
the establishment OF a price level
insuring sustained consumer de-
mand for goods.
Lessons taught BY the NRA ex-
pertinent were cited generally as
examples OF the influence exerted
upon the domestic economy by
shorter hours OF work and coinci-
dent wage increases. Purchasing
power. 10 was explained. was more
widely difused under the system in
force for more than a year. but the
cOncomitant price advances, trans
lated into higher living costs, actu-
ally reduced individual buying pow
or. with the result that demand for
goods could not be expanded and
increased unemployment ensued.
Pressure for Wage Cuts
Industry's response to shorter
work-week demands. one executive
intimated. VIII be pressure for lower
wages as a means Of reducing prices
for finished goods sufficiently to
bolster consumption and thus slim
ulate an upturn in plant activity
next year This action is cOntem-
plated. it was pointed out. to avert
further contraction Of industrial
operations. regarded as inevitable in
the event merchandise values fail
10 be cut 10 an extent necessary to
maintain equilibrium in farm and
urban purchasing power.
The fallacy Of the proposal for
the thirty-hOur week" another cor
poration official said. should be as
plain as the nose on ones face.
LabOT's demand assumes that suffi-
cicnt work Will be made available
10 provide employment for millions
now idle through the curtailment Of
working time Of those now en-
plOyed. Obviously. the income Of
those whose time would be reduced
must be increased prOpOrtiOnately
II purchasing power is to be sus-
tanned at its currently restricted
level.
Effect on Sales Stressed
AT the same time. if wage rates
are increased. the cost of produc-
ton must rise correSpondingly Con-
sequently. this would be reflected
promptly in higher prices for goods.
In such an event actual buying
power would not be enlarged. The
man now in a position to purchase
an automobile. for instance, would
find II more difficult to finance
such a transaction. Therefore, few
or automobiles. or whatever the
product might be. would be bought.
COincidentally. purchasing declines.
and with it employment"
Another factor TO be considered.
it was indicated. is that, as costs
rise. the tendency toward me-
ChanizatiOn would be stimulated.
since producers would be forced by
competitive conditions to seek to
pOduce gods and materials at price
levels which prove attractive to con-
SUmerS. Such a development. au-
thOrities maintained. would not have
the effect of stimulating employ
ment in the manner the proponents
OF the shorter wOrk-week envision.
although it would do so until such
a time as more modern equipment