The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1938-09-29
Wage Reductions
Returd Recovery
Government Pump Priming'
Provides Work For
Unemployed

and there to impose wage reductlon
and thus lower the buying power o
their employees warrants repeating
the strong warning in the American
Federation of Labor Monthly Surve.
of Business against this subversiv'
practice as a definite hindrance tt
business recovery.
Any movement to slash pay envelope
contents, the Federation said, woult
be thoroughly against the public in
terest."
Stressing the fact that although
during this depression business ac
tivity fell back to within Is per cen
of the lowest depression level, work
ers' income has fallen far less and a
it's lowest 1888 point was still 53 PEE
cent higher than it's depression bot
TOM" the Federation added:
"For this we may thank the wage
increase of 1897 and the absence o.
widespread wage cutting in 1888
This reserve of buying power has beer
a bulwark against further decline. L
has taken retailers stocks of good.
off the market and created healthy
basis for the revival now starting
# The present high level of work
ers' income will prove powerful lift
ing force"
Benefits of Government Spending
Emphasizing the Importance of the
Government spending program in pro
viding jobs and purchasing power fol
the unemployed, the Federation said
"The influence of Federal Govern
ment action in stopping the 1875
depression is important and because
our Government may be Of great serv.
ice to its citizens in preventing fu
ture business depressions, it is wei
worth while to examine it's actions anC
their results in the present circum
stances.
"To union members, any action to
prevent business depressions and less
Ell their effects is most important; fol
in addition to throwing millions of oul
members out Of work, depressions may
destroy the wage standard built ul
through years of careful negotiation
and gradual gains.
"Past experience has shown us that
pump printing is not effective unless
well timed. In the present case how
ever the pump priming seemed to come
at a strategic moment.
"Due in important measure to the
maintenance of workers buying power
business in early June, 1888, had re-
covered from much of it's depression
ill-health and seemed close to the time
when it could resume an upward
climb toward prosperity. inventories
had been worked off to large extent
prices were stabilizing, there was nc
serious price or credit initiation.
Because our statistics are made
quate however, it was not possible fol-
business men in general to know the
state of business health; an atmos
phere of gloom had predominated ane
many had advocated wage cuts.
Business was as it were poised a
the edge of precipice; widespread
wage cuts could have plunged it int,
further abysses of depression; o.
SIOWlllp confluence anu JHc CeIldllI.
that buying would increase could lif
it upward toward prosperity.
'"The Government spending program
was launched at this critical moment.
Jobs for 100000 Created
Pointing out that although the frs
effect of the pump priming" program
was reflected in higher stock marke
prices, the survey said the increasing
spirit of optimism in business circles
released buying orders and checke,
the "talk of wage cutting" adding:
"Surveying the progress thus ia
made in the Government program t,
create employment, we find that fund
have already been allotted which will
provide 9,237 ,O0O man-months of EN-
ployment before July /, 1889 This i
equivalent to fullyear jobs for neari,
, 10000 persons, or half-year Jobs 70
$40, 600, very important addition t.
the nations employment and buyn,
power
"No recovery can be made withou
increased buying power" the Fedora
tons survey concluded. Wage cut
ting at the present time is against tn
public interest"