Evening star., 1937-06-06


Girl, 10, making lamp
shades at home. She has been
1Uorking since she 1Das 7H2. Be-
cause she must be fresh for
school 1D0rk, as she puts it, she
1porks only until 10 or 1890
O'Clock on 1Ueekday nights,
but on Fridays and Saturdays
she 1Dorks until midnight.
40 hours. In individual industries,
however, the average was considerably
higher. Were a national standard for
all industries to be set up below the
actual work week, some industries
would be affected materially Dis
equilibria would undoubtedly appear
In our national economic system, not
only as between industries. but even
within industries operating under
different regional conditions These
disequilibria would affect employees as
we'll as employers; and they also would
af1ect the rest OF the community.
1t Is not question Of mere incon-
venience. OF reducing perhaps. scant
proflts OF shareholders A material
increase in labor costs. being certain
to be reflected fairly soon in higher
prices for the products of that labor,
will result in diminished sales, lessened
production, and consequently in less
real wealth" to be shared by labor.
A fatter pay envelope loses its mean
ing to the worker and his family when
the things that pay roll money buys
go up in price. Besides. any important
dlminution in production as a result
OF higher prices would entail less re-
employment and more unemployment.
Brookinss Institution Report.
Recently DR.. Harold G. Moulton OF
the Brookings Institution summarized
the results OF stan research on the
subject OF The Recovery Problem in
the United States. DR.. Moulton
pointed out that the volume OF pro-
duction in the United States. or what
We term the manufacture of wealth,
Is not only still depressed below the
1929 level. but will have to be increased
| materially beyond that level il the
per capita standard Of living that
then prevailed IS to be recaptured.
For. naturally, our population has
| increased during the interval II, in
addition. We are to catch up to the rate
OF progress We had been making in
production per worker during the
years prior to the depression. an even
greater degree Of recovery in the
present rate of manufacturing and
mining production and in commercial
activity will be necessary.
The significant point about the
Brooking's study is that the building
up of PRODUCTION within the next five
years to the extent indicated would
require the services Of all those now
employed and unemployed, and more;
this is assuming that every worker
would be occupied 43 hours per week
In otherwordS, on the basis Of
shorter work week. and assuming no
material increase in the efficiency OF
industry per worker employed, this
country's standard Of living cannot
be restored to 1929 levels within five
years.
Effect Of Sharp Hour Cut.
Since a drastic reduction Of hours
Of work per worker, even if followed by
an increase in the number of workers
so as to give no net reduction in the
number Of man hours worked, would
reduce the efficiency of the total
employed labor force the product OF
our national industry would tend to
decline from its present level and
there would be less produced wealth to
divide. N. r. A. experience does not
support the assumption that an in
crease in wage rates, resulting from
shorter hours, increases the proportion
OF the total output Of industry going
to the masses. Because OF the sharp
increases in costs that would be
entailed, legislation requiring a uni
versal (substantiaD shortening OF the
working week would be certain to halt
the present recovery movement and
precipitate a new period Of reaction,
Brookings concludes.
The above conclusions may be con-
sidered to apply more to a drastic
than 4 moderate change in labor costs.
But" it is argued by some Of those
who support the idea of wage legis-
lation. mo drastic change is planned.
We are seeking to raise costs only in
the case OF the chiseling who are
depressing labor. This is only the
unfair fringe"
In this connection 1t should be
noted, however, that there is no uni
formity Of aim among the hackers of
| HA %l,;,.
Of the chiselers, others of increasing
labor's share Of the national income
and still others of reabsorbing the
unemployment. These aims may be
irreproachable from national view
point. But are they consistent? Can
we give those now employed more real
income and at the same time reduce
the ranks Of the unemployed, by
shortening the work week?
Roosevelt Labor Message.
| In his message on labor, President
Roosevelt spoke Of . purpose Ito re-
duce the lag In the purchasing power
Of industrial workers and to strengthen
and stabilize the markets for the
farmers products" Data published
by the Commerce Department in 1896
show that the employed workers, even
before strikes of 1887, were as grt~sp
already participating fully In the
country's recovery. Comparing 1885
with 1929 estimates, the department
found that total compensation Of em-
ployes had recovered to 70 per cent
Of the pre-depression level" while
| "diyidends Maid out" in 1895 were
only 47,1 per cent OF their former
| Continued on Page D-lo)