Evening star., 1935-06-09
WORLD RECOVERY FOUND
OF SUPERFICIAL NATURE
International Labor Office Head Finds
Depreciation of Currency Is
Aiding Some Countries.

States hourly earnings are SO per cent
of the 1929 figure.
"On the other hand" says Buffers
report, 1T is noticeable and probably
significant that in Belgium, Czecho-
slovakia, Italy, Poland and other
states where wages continued to de-
cline there was little or no reduction
of unemployment"
The institution of the 40-hour or
less working week is proving pallia-
tive at least, but is not sovereign
remedy for unemployment, it is stated.
Italy, where the 40-hour week is COM
pulsory. reported more than 100000
workers re-employed as a result of
the reform. In CZechoSlovakia. where
the reform is to be made legal, about
10 per cent of the industrial unem-
ployed will be benefited. according to
the minister of social welfare. Ger
many. Luxembourg. Great Britain.
among other countries. are trying out
the scheme with certain success.
Gains in Industrial Nations.
"Under the continued pressure Of
the depression the idea is making con-
siderable headway in many industrial
nations" says Butler, ''and the con-
viction is gaining ground that shorter
hours MAJ not only offer a means of
spreading work in times of depres-
sion, but it may also be the logical
and necessary consequence of the en-
HANGED productive power now at the
service of industry. Public opinion is
beginning to demand that workers
should be allowed larger share of
that leisure which is the greatest gift
of machinery to mankind"
Public works projects have proved
beneficial only where they are
financed by loans rather than taxa
ton, it is argued. Increasing of
taxation in times of depression him
oerS fresh enterprise and tends to dis
place men from private industry. Fur
thermore. it is contended that public
works are economically effective in
combating depression only when ac-
companied by an expansionist none
tary policy" Unless undertaken where
they have definite economic value,
and as result Of comprehensive
RIntCd PCAliIo
nent authority, they are merely re
lief measures" and are palliatives
Public works schemes have proved
beneficial only where they have been
carried out on a gigantic scale. such
as in the United States. Germany.
Sweden and Italy. In Great Britain,
where the amount spent IN the United
States in one year is spread out over
Is years. the effect Of load building
and public development has been rel
atively unimportant.
Great Britain, on the other hand.
has demonstrated the deSirability Of
social and unemployment insurance.
Instead of restricting and abandoning
the system, the English. who have had
the greatest experience in the field,
have reorganized and extended it. Re
lief now begins at the school-leaving
age and covers agricultural labor.
Value of Aid Recognized.
THE economic value of the enor-
nous sums paid out by governments
to aid their unemployed is being
widely recognized" says Mr. Butler,
adding that: AT time when the
flow OF purchasing power is reduced
through the absence of demand for
credit and the decline of fresh in
veStments the sums made available
by the public purse to afford mini
mum of subsistence to the unemployed
have the effect of maintaining their
consuming capacity in a limited degree
and thus of insuring a larger and
faster circulation of money than
would otherwise be the case"
Governments which are extending
their social legislation include Canada,
South Africa, the United States. Fin
land, Sweden, Poland. Czechoslovakia,
Uruguay, Chile and Germany.
Countries which are initiating or
extending compulsory social insurance
are Argentina, Austria, Brazil, Canada,
Finland, Norway, Peru and SPAIN
Unemployment, as it stood in 1884
compared to 1929, Is shown by the
fnllnuinn chart