Evening star., 1936-08-30
Need for Statistics of
Unemployment.
BY FREDERIC J. HASKIN.

otateS lS ana Tor some time has been.
unemployment. When people are not
at work, drawing wages which will sup
port them and their natural dependents,
they constitute a triple threat to the
national well-being. First, they are in
distress themselves and, sometimes being
desperate, develop into a subversive, po-
tentially dangerous element in the popu-
lation. Second. they become public
charges and must be given relief by the
Federal or local governments. or both.
Third, being largely INDECENT, they cease
to be taxpayers to any appreciable ex-
tent.
1t is a curious fact that, although the
problem is so important and so crucial.
no one in America knows how many
unemployed there are. In other words,
the great economic problem Of the coun-
try Is made especially dif1cult to cope
with because no one knows precisely
what the problem is. No one knows the
extent of unemployment.
The National Industrial Conference
Board is a statistical and research or
ganiZation of high standing. While IL
has access to many governmental sta
tistics, 1t is not itself supported by the
Government. but Is a private. though
non-profit making body. 1t could not
itself make census. No agency but the
Federal Government is capable of such
a gigantic task But its own studies Of
the superficial information has led it
to make the statement:
I'VE know approximately the number
Of the employed and Of the unemployed
in 1880. but we do not know today how
many persons ought to be employed. Be-
yond this, effective treatment of en-
ployment conditions requires adequate
information regarding the location, cir
cumstances and characteristics of those
who are not working, including age. sex.
health, previous employment, qualiflca-
tions for employment, ETC.
The point Is recognized as well taken.
In 1880 the regular decennial census
was made by the Federal Government
and some fragmentary figures compiled
on the extent of unemployment at that
time. Fuller figures-indeed complete
figures-were obtained on employment.
The 1880 census numbered all persons
gainfully employed. But this figure does
not have a perfect bearing on the un-
employment problem All persons max
ing living were listed as gainfully EN-
ployed.
In any discussion of unemployment
the average person thinks naturally and
properly Of persons drawing wages or
salaries But the Bureau Of the Census
does not make that distinction. 1t lists
as gainfully employed employers as well
as employees. For example, the owner
of large department store Is gainfully
employed in buying and selling goods
and must be SO listed. John D. Rookie
feller is gainfully employed in giving
occasional attention to his huge financial
and industrial interests. The proprietor
Of peanut stand draws no salary or
wage from any one, but he is gainfully
employed and is so listed.
So 1t must be conceded that these fig
ures compiled by the Bureau Of the Gen.
sus are of only partial value in coping
with what is generally understood by
the unemployment situation. What the
Nation, what the Government. wants to
know is how many persons who normally
would be employed in booming times are
out of work.
A decade and more ago Ethelbert
Stuart, then commissioner Of labor sta
tistics, besought Congress to provide
funds and machinery for making regu.
lar surveys Of the unemployment situa.
ton. In those days there was no serious
unemployment, such as developed after
1880, but Commissioner Stuart recog-
nized the importance Of knowing the
facts. Congress never acted. Later. at
the time Gen. Hugh johnson was ma
tional recovery administrator, he took
the same stand and declared that one
of the most important things to know
in attacking the recovery problem was
the true number of the unemployed and
those other facts concerning them which
the National Industrial Conference
Board has mentioned. But nothing was
done.
An idea of how inexact the informa-
ton is and has been may be cleaned
from an examination Of the various esti-
mates made. Public and Semi-public
bodies have frequently made such esti-
mates, realizing the importance Of the
data. Economists have studied the mat
ter and done, unquestionably, their best
to arrive at q reliable approximation.
But they do not agree.
The year 1888 Is usually regarded as
marking the low point OF the depression,
although in the latter part Of that year
conditions improved somewhat. For that
year the National Industrial Conference
Board estimated the unemployed num-
bered 1885 900. For the same year the
Cleveland Trust Co. estimated the un-
employed at IS 337 900. Then came the
American Federation Of Labor with an
estimate Of 14,616,000. r. r. Nathan
placed the figure at 14,341 900, and the
Alexander Hamilton Institute at l6..
069,0
Here we have earnest seekers after the
truth making estimates far apart. The
low figure. please note, was 1881 900,
that of the conference board. The high
figure was 16.06s, 900. that Of the Alex
ander Hamilton Institute. Here is diff
ference of 3,178.000. In the days before
the depression to have more than 3000,-
900 wage earners unemployed would
have been considered an untoward cir
cumstance. Yet 1t was possible for the
experts to show q variation Of more than
that many in their estimates. The varia-
ton in those figures emphasizes as moth.
ing else could the importance Of finding
out.
The same agencies made estimates OF
the employed. They are much closer to.
gether, although even there the Burau
Of Labor Statistics gave figure more
than q million greater than the lowest
estimator, the Cleveland Trust Co. AS
to the employed it is possible to obtain
fairly definite information from pay
rolls.
One vitality important factor in the