Montana labor news., 1935-01-31
The Washington Scene
By Lea De CA.x


ing to happen politically in the new
year, there is one source OF informa-
ton that is more important than all
the inside dope gathered from all the
private conservations OF all the poll
ticians in Washington. 1t is the fig
ures on industrial production, profits,
wages, farmers incomes, unemploy-
ment, cost OF living, and other bread
and-butter facts of life.
1t was the economic breakdown that
gave birth to the political policies OF
the New Deal The degree OF their
success in coping with economic con-
ditions; their effect on the various eco
nomic classes, capitalists, farmers,
workers, and the resulting pressure OF
these groups, will largely determine
their continuation or the nature OF the
policies TO follow them.
Without going into detail as to these
widely-publicized policies of initiation,
reduction of farm production, NRh
codes etc, let US try to piece together
the general picture of the nearly two
years they have been in effect. In
dustrial production spurted in the early
days of the New Deal, only to decline
again. Employment increased much
less than production, and has also de-
clined again. Profits have been boost
ed enormously. Wages have risen in
total as compared with the worst of
the crisis, but the individual workers
earnings have hardly kept pace with in
creased living costs. F~luctuation of
conditions at present low levels is gen.
orally predicted for some time to come.
A comparison of official figures for
the month of July in 1882, 1888 and
1884, gives the possibility Of contrast
ing conditions before the New Deal
with those Immediately after it went
into effect and after it had been in
force more than a year. The index of
industrial production goes like this :
SIS, 81, 70. Degree of occupation lem
ployment) SO, u. 70. Total wages
paid: 40, 81, 90. Cost of living: II,
I75.2, 79.l.
The increase in production in July,
1888, was due largely to anxiety to turn
money into stocks Of goods in advance
of the coming initiation, and to produce
as much as possible before the NRA
codes took effect. But this boost Of
l76 per cent in production Gas compared
with July, 1882 was achieved with only
I22 per cent more workers employed
and an increase in wage totals of only
II per cent.
Between July, 1888, and July, 1884,
the first year in which NRA codes were
in effect employment rose by 10 per
cent and total wages by IS per cent,
while industrial production showed an
actual drop from 81 to 70. The Of
fetal cost of living index rose 6 per
cent, though other sources indicate a
larger increase. The Fairchild index
of retail prices, for instance, rose Is
per cent in the same period. Since
July, living costs have risen still fur
ther and employment has declined con-
siderably below the levels of last year
What have been the effects Of these
conditions on the main grouping OF
society,"
For the working people, unemploy-
ment has been decreased comparatively
little from the worst days of the crisis
and is tending to find a certain equili-
brium we'll over the 10 million mark
Wage totals have also risen somewhat
but the individual worker in genera
has had his real wage cut by increased
living costs. While some of the mos
sweated workers have been benefited
by code minimums, other workers have
found the tendency to be one of wage
reduction, due partly to shorter hour!
and partly to the inclination of EN-.
ployers to make minimums into maxi
mums.
For farmers, there have been som'
temporary benefits, particularly for th'
better-off ones, through governments
cash, some reduction of debt burder
by initiation and some increase in farm
prices Caused largely by drought snC
bad harvest. Tenant farmers anC
sharecroppers, on the other hand
have in many cases been reduced tC
day iaborers or driven off the land al
together.
For the capitalists, the rewards have
been much richer. National City Bank
reports for April and August, 1884
show that l,47s industrial and commer
cial corporations, which claimed losseI
of 81 million dollars in 1882, made
profit OF Col millions in 1888. Some
$50 big industrial concerns, with profits
of 60 millions in the first half of 1888
increased their profits to III millions
in the first half of 1884.
Not all the capitalists have beef
equally favored of course. Some al
ready existing m~onopolies have fel
they could do better without codes
Encouragement of other monopolie
through NRA has proved oppressive 4
little businessmen. Bankers with in
ternational interests have objected L
the weakening of their position abros'
through currency manipulation. In
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