Evening star., 1936-11-29
DIVIDENDS CLIMB
TO ALL.T|ME PEAK,
NEAR 8QOM|LL|0NS
Higher Wages Also Ex-
pected to Boost Christmas
Spending Power.
EMPLOYMENT INCREASES,
LIVING COSTS MOUNT
Gain of 100000 Jobs Reported
in 0ctober-Drop in P. W. A.
Pay Rolls Is Hailed.
BY CHARLES F. SPEARE.
.cial Dtspatch to The Star,

nI S1AhLLS T. OF GhhLs
Special Dispatch to The Star.
NEW YORK, November 2s.-The
month of November will 60 down in
financial history as the period of largest
declared corporation dividends on
record. These aggregate nearly
$500, 100000.
AS the payments will be made be-
fore the end of December, most Of
them in time for Christmas spending,
they add to the general public's pur-
chasing power in behalf of retail trade
and build up taxable income of the
United States Treasury.
At the same time, wages and some
salaries are being increased. From
many industrial sections Of the coun-
try have come announcements this
week of special grants to employees by
corporations moving to avoid the tax
effects Of the new revenue law.
1t is worth noting that today the
total wages of those identified with the
iron and steel trade are nearly 20 per
cent greater than in 1929, with the
number engaged in this industry about
Is per cent over that in the boom
year.
Following tradition, iron and steel
has advanced from the ''pauper to
prince" stage, and more quickly than
at the end of previous depressions.
Employment Gains Shown.
The rising trend Of the components
of the business index have established
that gauge of industry at the highest
point OF the recovery. There are only
slight variations between widely sepa-
rated districts geographically in the
degree of prosperity indicated. This is
accompanied by general increase in
employment. Skilled labor is at Q
premium.
For October the United States De-
partment of Labor reports return OF
220 900 to old jobs or an absorption
into new ones. Under these circum-
stances, and with the apparent reduc-
ton IN many parts Of the country in
p. w. A. pay rolls, there is ample
basis for slashing the appropriations
in the 1875 national budget for re-
lief. The American taxpayers expect
this. They have q right to see the
pairing process get under way.
Living Costs Mount.
1t Is impossible, Of course, to have
higher dividends and higher wages
without affecting the prices Of COM
modities. Consequently. we are facing
a steady increase in the cost of living.
Securities in the past few months
have moved at a quicker pace than
commodities, though the index of the
latter is this week at q new high for
the year.
To some extent, the wage increases
have quieted labor unrest. What is
most likely to happen in the near
future is a demand from the salaried
classes, who are unorganized and
whose incomes have been but slightly
improved in spite of expanding busi-
ness. and whom the rising costs OF
essentials deeply affects, for more
liberal participation in the increased
profits of capital invested in trade.
Also on the part of public servants,
requests for q return to the salary
level of five years ago.
As for that group which lives on
moderate incomes from investments,
its position grows increasingly worse
as interest rates decline and food,
rents, clothings, ETC., advance. More
and more the members OF it are being
forced to eat into their capital in
order to live decently.
Excess Reserves Problem.
The relation between this general
situation and the embarrassment in
which the Federal Reserve Board finds
itself today is quite intimate. One
aspect of it is the steady growth of
excess banking reserves. On August
Is last, when such reserves had
reached the figure Of $4,000 900 900.
the board issued an order increasing
the reserve requirements of member
banks by so per cent. This brought
o drop in excess reserves to 81 1,900,-
900 900. In q little over three months
they have advanced $400, ,000, 900. They
are again several times greater than
required to conduct the Nations
banking business efficiently.
The threat of a runaway market IN
securities and in commodities faces
the financial advisers of the Roosevelt
administration. Apparently, their
deepest desire is to anticipate, and
avoid, conditions similar to those pre-
cipitating the debacle of 1929.
Their line Of attack is limited to
two direct measures. that of once
more increasing reserve requirements
by so per cent, or allowing maturing
Treasury obligations IN the portfolios
Of the Federal Reserve banks to run
on." OF the $2,430, 600, 900 in this
account, IS per cent is due in 90 days
or over. Less than 20 per cent Is
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