Evening star., 1938-03-06
BY BERTRAM BENEDICT.
n OW you see what the Presidents
NJ high-wage policy has done )" the

IN OW you see what the Presidents
NJ high-wage policy has DONE" the
1 Y Economic Royalist told his
friend the New Dealer
We'll. Just what has it done?" demanded
the New Dealer. He was more belligerent
than usual because he was on the defensive
these days.
why, N. D.. perhaps you haven't heard?
There's something around, your friends
down in Washington call a recession.
People with mean. low natures called it a
depression when H. Hoover had it. You
really ought to read the papers and get
around more, 50 you'll know what's going
on"
How do you know the high-wage policy
brought on the-oh. we'll, for all care you
can call it the panic" retorted the New
Dealer. After all, because a man dies
after eating mince pie doesn't mean the
pie was to blame. He might've been run
over by an automobile"
'Yeh, but in this case you can actually
see what did the dirty work." the anti
Rooseveltian averred. TT was the heavy
industries that collapsed first and hardest.
And 1t was just the heavy industries that
had to make the highest wage hikes
We'll, it was the heavy industries that
should've made 'em," retorted the pro-
Rooseveltian They cut wages more than
others in the depression. This was only
evening up
Lewis Threw the Monkey Wrench.
"Yeh, but these wage hikes in STEEL and
automobiles, and coal, they didn't follow
any economic rhyme or reason. They were
simply forced by the Presidents good
friend, Mister John L. Lewis. And the
only reason he managed to force EN- was
the whole darned Government was on his
side. That's what threw the economic sys-
tenn out of kilter.'
"All right, E. r., then how do you ex-
plain that we had prosperity from 1928 to
1929, when wages were going up all the
time?"
Well they were going up gradually then.
Industry had time to absorb em. And
don't forget what they ended up in in
1921"
We'll, wages hadn't gone up much in
20 over 20 and '27," the New Dealer COM
mented.
1T only takes a straw to break the
camel's back some times" answered the
other.
But remember this, E. r., prosperity
came back five years ago just about when
N. R. A. forced wages up again. n you're
going to say it's cause and effect now, then
you'll have to admit it might just as we'll
have been cause and effect back in 1888"
well, N D., will admit wages were too
low back in 1888. I'll admit maybe they
were still too low in 1885. But there's by
golly some limit to raising EN-. A man can
get just as sick from overeating as from
undertaking"
But the President agreed in some
lines"
"Wait a minute-Ive got some figures
here" the Economic Royalist interrupted.
Listen to this. now:
Average earnings in factories back in
1892 and 1888 were around 491a cents an
hour. In 1884 they shot up to So cents.
Thats-let me see-that's about Is per
cent boost. In 1895, up to so cents. In
1886. 6134 cents And in November, 1887,
they were-baby, they were way up to
71s4 cents Then the President says manu-
facturers hadn't have to raise prices! You
can tell he never had to meet pay roll"
Now be fair" the New Dealer expostu-
lated. THE President never said that.
What he said was, prices went up too much.
More'n enough to balance the wage boosts.
He agreed in some lines wage rates were
too high In building, for instance"
Prices Down, Wages Steady.
"He wouldn't have said that if the
G. I. o. had SHARED any building unions to
Its hairy BOSOM" commented the anti-New
Dealer. AT any rate, the building supply
recession busted loose on us. But have
the building unions lowered their scales?
Not SOS you could notice!"
"see here, E. R., you don't really believe
cutting wages would end this recession?"
In some lines 1t would most certainly
help" insisted the Economic Royalist
That's the only way lots Of the boys can
do what the President wants-cut prices"
"All right, let me look at those figures
you have there. Yep, thought SO. Aver
age factory earnings back in 1930-59 cents.
In 1884, down to 56h cents. In 1882.
down below so cents. That's about Is per
cent under 1880. So, If you're right, why
didn't lowering wages back In 1880 and
1892 Atnn that dAnrA8einn2n