Evening star., 1934-09-02


sand employees to its pay rolls. 1t
started to reduce the working hours
of its. employees. 1t assured the N.
r. A, that it would gladly enlarge
the hourly wage rates and the weekly
wage earnings of its employees. 1t
defied-and the N. r. A. defied--the
counsels of some of the "elder states
men" in liberal circles in Washing
ton who said that recovery would
have to grow slowly and that f1rst
there would have to be a gradual IN
crease in the volume of output and
then-and only then-a gradual, rise
in the compensation Of the people
producing the output.
Crossed at One Bound.
That advice was disregarded, and
the textile industry determined to
cross Jordan into the promised
land at one bound. I have remarked
that in June of 1882 the consumption
of cotton in textile mills was $4,000
bales. Just one year later-in June
of 1e33-under the spell of non-goid
monetary policy and under the speh
also of the anticipation of N. r. A.
costs and profits-the consumption OF
cotton in textile mills was $4,000
bales. It had more than doubled. NO
more amazing recovery was ever re-
corded. But with what consequences?
For a while volume continued ana
large steady employment continued;
but prices rose ecstatically ana tnen
menacingly. They were pushed up
ward not only by N. r. A. costs ana
by N. r. A. conferences among sellers,
but also by the A. A. A. processing tax.
Presently the prices were so high that
demand began to decline. The mar
ket began to narrow. BY the END OF
the year the textile industry was ask
ing the N. r. A. for a coercive cur
tailment of all textile output.
Curtailment Fails.
This curtailment happened, and 1t
put all textile machinery-the gooo
with the bad and the modernistic with
the antiquated-on vacation for a
week. Still demand did not catch UP
with supply. The gigantic volume OF
June of 1888 was never re-attained.
Consumption of cotton in textile mills
went generally steadily downward. In
May of 1884 it was at $4,000 bales
and not low enough. Again the textile
industry pleaded with N. r. A. Tor
another coercive curtailment.
+ This second curtailment put all tex
tile machinery to sleep for one week
in June and one week in July and
one week in August. Employees who
were going to enjoy continuous en-
larged purchasing power" found
themselves enduring part-time en-
ployment and thereupon earning a
purchasing power" of only a part
time and sometimes very scattery
character. They began to be restive.
They began to have grievances, both
actual and exaggerated. They began
to complain about the number Of
machines that they were required to
tend. They began to fancy that an
arbitrary N. r. A. shortening of the
work week for all would tend to pro-
duce unemployment steadily for all
They began to dream that if only the
industry were completely union
ized," it would be completely trans
formed into intelligence and benef-
icence. They argued that if the en-
ployers were benefited by curtailment
of output as a road to unreduced
prices, why. obviously, they them
selves would be benefited by curtail-
ment of the working week accom-
panied by unreduced wages.
Not Cordially Greeted.
But this imitation of the philosophy
Of the employers could not be cordially