Evening star., 1934-03-18

earnings of these coal miners were,
at the close of 1888. cents an hour
less than in 1929.
There are, indeed, a fair number
of industries in this country whose
average hourly earnings have risen
above so per cent as result of the
labor terms of the codes of fair COM
petition. As more detailed data than
are now at hand become available,
students of this question will, 7 am
convinced, be amazed at the advance
in wage rates which has already taken
place under the influence of this novel
piece of national labor legislation.
Average Wages Up.
If may again be permitted to ven-
ture general statement concerning
the course of manufacturing wages in
this country. based upon the inspec-
ton of many wage series. should say
something like this: The average
hourly earnings of all manufacturing
industries probably stood at 60 cents
an hour at the peak of things in 1929.
Under the force of the depression they
may have descended to as low a point
as 40 cents an hour during the very
low of business activity in the early
months OF 1898. And since the appli-
cation of the recovery act they have
made up large part of their loss and
are now close to SIS cents an hour.
There is no reason that am aware
of to doubt the accuracy of these fig
ures. The data of wholly Independent
agencies have been carefully checked
one against the other, and there are
no important evidences of inconsis-
tency or of bias. Granting the validity
of this material, it is fact worthy of
more extensive comment than it has
received that, in the face of levels of
business activity and of wholesale
prices far below those prevailing in
1929. the rates Of wages should now
so closely approximate the rate in
force in this country at the height of
business activity in the prosperous
year of 1929.
II, again, these figures are worthy of
acceptance. they are the best proof
We have that there is little to the
charge that the codes of fair compe-
tition have failed to raise the prevail
ing rate of wages in the United States;
that the provisions of the codes are
being universally defined and violated,
and that the minimum wage has in
great areas of industry tended to be-
come the maximum. II these charges
are true. then the statistics of wages
which accredited agencies are furnish
ing US are being universally falsified.
This inference, think all will agree,
Is unthinkable.
Complex Forces.
I am aware Of the fact. in connec-
ton with the issues which I have
just placed before you, that there are
many who say that the record of the
recovery administration must be meas
ured in terms of the total volume of
employment and the total volume of
wage disbursements. This view I
cannot accept. 1t is a fact known
to all that the volume Of employment
and of pay roll is function of COM
plex forces involving. among other
things, the schedule of maximum
hours and of prevailing rates Of
wages. The ruling factor among these
forces is the general volume of busi-
ness activity.
The recovery administration is not
empowered to fix the total volume
of employment or the total volume of
wage payments. and it could not do
so if it were. l am aware of the in
fluence of price policy on this total
volume of business activity, but, with
respect to this question, I can only
say in passing that there is still a
direct and intimate connection be-
tween changes in wages and hours Of
work and variations in prices at
which goods are sold to consumers.
do not desire to burden you
further with statistics. But there is
one further phase of the wage ques-
ton to which I must allude. And
that is the effect of code provisions
on differences in wages throughout
competing geographical areas of this
country. Any one familiar with the
course of industrial events during the
past Is years knows how grievous
were the problems, in terms of the
displacement of tens of thousands of
families, created by the ability of in
dustry to move freely from high to
low wage centers. 1t cannot be said
that the Recovery Administration has
solved this fundamental and trouble
some problem.
Balance Restored.
But 1t is clear that the wage df-
ferentials allowed in the codes have
brought many such wages within
the margin Of reason and have
contributed powerfully toward the
restoration of the balance among pro-
ducing areas, so sorely disturbed dur
ing these last years. In the cotton
textile industry, where the conse-
quences of such wage competition are
most generally shown and under
stood, a prevailing wage differential
Of so per cent has been reduced to
30, and everywhere hours, whatever
they had been before, have been
brought to 40 per week. Nor is this
achievement of the textile industry
untypical of all industry. Inspection
of the countless minima established
by the Recovery Administration con-
vince me that there has been q GEN
eral narrowing of the spread, which
has already resulted in a substantial
redistribution Of the available volume
Of employment. In the face of these
facts it is futile at this time to talk
OF the total elimination of differen-
tlals which, If it were done, would
destroy existing legitimate interests