Evening star., 1938-10-25

ess''f'S.sopse
is to be uShered ,
in gradually in
the next few years, so that ultimately
the wage minimum is 40 cents and
the hour maximum is 40.
Nowhere in the law is there any
provision that 40 cents three or four
years from now must purchase what
40 cents buys today. The rise of the
Government debt, the unprecedented
series of unbalanced budgets, will be
paid for in due time by the working
man. The dollars gold content was
devalued to SO cents, but so long as
the purchasing power stayed normal,
the worker never felt it.
Back in January, 1884, when the
devaluation occurred the workers dol
lar bought Sl.287 worth of goods as
compared with 1923 prices as normal,
or rather 100 cents, Today the pur-
chasing power of the dollar is already
down to SILICA and if prices rise, as
seems certain in view of the coming
business activity and armament pro-
gram, the dollar will buy less and less.
May Rest at 80 Cents.
How far down will the purchasing
power of the dollar go? Maybe is will
so all the way down to SO cents and
maybe it will rest at about 80 cents
Efficiency in industry will tend to keep
some prices low, but the general aver
age will doubtless be upward.
Business and industry are loath to
accept any readjustments forced by
Government without regard to eco
nOmlc consequences, but it must be
noted that of all the changes of this
drastic character brought by the New
Deal, the Federal wage and hour law
comes with the least disturbance be-
cause of the gradual nature of the
application of the statute.
Many businesses have been operating
above the minimum as to wages. but
they have not paid time and half
for overtime. All sorts of changes will
have to be made on this account. but
when the readjuSting is done and the
cost of living rises, the workers will
still find themselves out of luck.
The labor unions have, hitherto used
the cost of living argument as their
principal plea when asking for wage
adjustments, but when the Federal
Government sets the minimum on
wages and the maximum on hours. the
workers unions will have in the future
less and less leverage. Public opinion
will hardly support strikers who want
more than the law prescribes.
Unions Lose Contention.
Here is where unionism loses its
strongest contention. In fact, this was
foreseen by the A. F. of L.. which Or
ganization fought the bill and came
into line only because the administra-
ton succeeded in playing the c. l. o.
against the A. F. of L. and compelling
support in that manner in Congress.
The unions still have an orbit in
which they can operate as, for in
stance. in getting better wages in
skilled crafts above the minimum and
making special agreements with en-
plOyers, but the establishment of a
general wage and hour standard will
be difficult to combat. So far as
constitutionality is concerned. there
is grave doubt. Before the New Deal
started its campaign against the Su-
preme Court it would have been
. assumed that the Federal statute would
be held invalid as an invasion of
States rights. Today it will doubtless
be ruled constitutional, There are
certain advantages in this from
practical standpoint Employers can
no longer move from one section or
region to another to obtain cheaper
labor. Also regions which have nat
ural advantages for certain industries
will no longer fear cheaper competition
from the South. where most of the
!ow-pald labor is concentrated.
Little Excuse to Migrate.
Negroes will have little excuse to
migrate northward unless, of course,
hutdoWns occur on wide scale, in
;;hich case the w. P. A. will, to be
gure, add to its already heavy expendi-
lure for Negro workers whose oppor-
tunities are normally limited anyway.
While much has been written from
time to time on the Importance of
State regulation of minimum wages
and hours so local conditions can be
adjusted, the experience of workers
has been that moving across State
lines retards the progress Of the idea
of a floor for wages and a ceiling
for hours. The United States now
has the Federal standard-the first
really important move to standardize
American industry, irrespective of re-
gion or local circumstances and ire
spective of physical capacity or sex.
Net results are difficult to foresee.
One, however, is plainly to be ex-
pected. Children will stay in schools
longer. Parents will get less help
from working youngsters. Persons of
so or over will find themselves re-
placed by younger workers. Certainly
the old-age pension idea will find
increasing support and the Townsend
movement, representing higher PEN
sion than the Federal Government and
States have as yet allowed, will be-
come bigger and bigger national