Evening star., 1939-09-03

in splendid condition. The budget has
been balanced each year, public school
attendance is now the greatest of all
time, labor enjoys protective legislation
which few of the States can match,
health conditions are vastly improved,
law and order prevail to gratifying
extent, and the islands democratic form
of government is functioning smoothly.
Unfortunately however, 1 am unable
to make so optimistic a report about
economic and business conditions, for
Puerto Rico and its 300 900 people to-
day face an economic impasse which is
perhaps unprecedented in the history of
the United States. Business activity has
dropped rapidly in the last two years, and
unemployment has reached the highest
level in the islands history.
The territorys whole future welfare
all its hopes for industrial and soeial
betterment-lie in the hands of Congress.
It's present predicament is the direct re-
suit of legislation passed during the last
five years that was designed for the well
fare of the country as whole, but that
lldPPOiAS W dlCSO oAFCioSly wv Ilois VA
Puerto Rico's principal sources of income.
Opportunity Shackled.
The economic dilemma that the island
already faces and that threatens to be-
come worse in the immediate future is
one that Congress should remedy at the
earliest opportunity. The territory is in
the unfortunate position Of being abso-
1,,%1 LII -;t,x
Congress recognizes the necessity for
liberalizing the wage-hour act as it ap-
plies to Puerto Rico, until it admits the
need for giving the island a larger sugar
quota, until 1t in some way brings about
revision of certain reciprocal trade agree
ments which have depressed various ag-
ricultural industries, and takes other
necessary steps in the islands behalf
Puerto Rico cannot forge ahead The
opportunities do not exist.
If Puerto Rico were to take the fullest
advantage of every new industrial op-
portunity that now lies before it, the
gains in employment would be wiped out
within three to five years by the steady
population increase At the present time,
the best estimates show that 40 per cent
Of all wage earners on the island are un-
employed. That means more than 200,-
600 workers without jobs. Here in con-
tinental United States, Of course, there
also is large unemployed group. but
there Is the prospect that industry one
of these days will expand sufIiciently to
absorb large percentage Of those work.
ers Puerto Rico has no such prospect
under existing Federal legislation and
regulations
The present outlook is that the ter
ritory's income from three of its lead
ing industries-sugar, needlework and
pineapples-will decline still further.
Two others-tobacco and grapefruit
are on the decline for other reasons
not so directly attributable to govern
mental sources. OF the major indus
tries, only rum distilling, a business re-
quiring relatively few workers, can face
| the future with confidence
The Wage-Hour Act, which unless
amended will almost completely an
nihilate our needlework industry, stands
in the way Of an industrial expansion
that would mean many thousands Of
additional jobs for idle Puerto Rican
| hands. Until the passage of the act,
which unfortunately put Puerto Ricos
tropical labor on the same high wage
standards as our mainland workers,
had high hopes that a score of new
handwork industries might be estab-
lished there quickly. I had regarded
the thousands of idle hands in Puerto
Rico, not as handicap, but as a real
asset. Puerto Ricans learn handwork
readily, as has been proved in our gem
cutting hairnet manufacturing, rug
making and other enterprises that re-
quire skillful workmanship.
| Potential New Opportunities.
Recent developments abroad, especial
| ly in the Far East and in sections of
Czecho-Slovakia which now are part OF
Germany, have opened the way to the
establishment of a huge toy-making in
dustry in Puerto Rico and to a great
glove-making business.
There are literally dozens of other
opportunities for creating jobs and for
supplying to the United States main
land articles which now must be i'm
ported from foreign countries. Other
handwork industries, such as the man
ufacture of tile and other ceramics for
which there is an ample supply of raw
materials in all parts of the island, to-
gether with the making of artificial
flowers and novelties of wood and glass,
are among the possibilities. But those
opportunities that would go 50 far to-
ward removing our unemployment prob
lem will materialize slowly, If at all,
with the present Wage-Hour Act
Puerto Rico must have lower mini
mum wage than the mainland, both be-
cause the expense Of transporting raw
materials to the island and the cost
of shipping finished products back to
the States raises production costs and
because its workers, though skillful,
produce less per day than labor in the
States, owing to the climate and other
factors. Higher wage rates are, Of
J course, exceedingly desirable. but not