Evening star., 1942-05-25
Ecc|es Urges
Curbs on Paw
And Bonuses
Says Restraints Are
Needed on Employers
As Well as Workers


As Well as Workers
Chairman Mariner S. Eccles of
the Federal Reserve Board told the
oath annual convention of the Dis
trict Bankers Association at the
Columbia Country Club today that
equal restraints on the wages of
workers and the salaries and bonuses
of their employers are needed to pre-
vent imitation.
Mr.. Eccles spoke after T. Stanley
Holland, president of the associa-
ton, told the group in his opening
address that Washington banks have
given brilliant service in the sale OF
war savings bonds and stamps, and
with deposits at the highest point in
history, are in position to extend
all possible credit to business and
industry.
Discussing the possibility that in
creased remuneration Of people at a
time when fewer and fewer civilian
goods are available might force up
the prices of things that go into the
cost of living, Mr.. Eccles said:
This situation calls for co-ordi-
mated action on many fronts. 1t
means firm restraint on increases
in wages, salaries, bonuses and
other such payments"
Cites Mistaken Policy"
Then he explained that this ap-
piled to the employers just as 1t
did to the workers.
policy" Mr.. Eccles said. than that
expressed in resolutions adopted
by one of the largest organizations
of business at convention in Chi
cago recently, when men who domi-
mated these councils proposed that
no restraint or limit be placed upon
their own profits, bonuses, COM
missions and other compenSations
because to do so might dampen their
ardor for winning the war by i'm
pairing their incentive"
Mr.. Eccles said that the same
group of businessmen, which he
did rot further identify, did not
hesitate" to seek abolition of the
40-hour week or to condemn wage
increases for their employees.
That sort of leadership is in
credibly blind" he said. 1T scarcely
makes for successful voluntary CO.
operation"
Indorses Treasury Proposals.
Mr.. EccleS said that, in his belief,
the competition of employers for
workmen lis doing more to drive up
the general level of wages and in
come payments than all the COM
bined efforts of union leaders,"
Mr.. Eccles Endorsed Treasury pro-
posals to increase income taxes both
by cutting personal exemptions and
by raising tax rates, and to collect
part Of the income tax by deductions
from paychecks.
"The general sales tax is not q
logical alternative Ito the various
income tax proposals. and should
not be resorted to until the far
more equitable income tax has been
fully utilized as means of dampen-
ing mass buying power" he said.
More than 200 members and guests
were present when the 3-day session
was called, to order, the largest
attendance on record, ascribed to
the many complicated war problems
now facing banking.
Reports on Sales.
Lauding the outstanding Coop
Grafton of Washington banks in the
sale of War bonds and stamps, Mr..
Holland reported that the banks
here sold $21, ,206,350 of series E
bonds to $780, ,538 persons, $4,388,675 of
series F bonds to 1,221 persons and
$17,942 300 Of series G bonds to 4,342
persons from May l, 194l, to May
/, 1912. This record exceeds that
of any other agency since the bonds
were first offered the public.
Winning the war is our utmost
concern and primary objective, Mr..
Holland added. This war will re-
quire expenditures that will run
into amounts which stagger the
Imagination and it is not incredible
that 1912 will see expenditures
mounting as high as $1,000, 100000 a
month, Mr.. Holland declared. The
American people are gladly paying
the greatest tax load ever expe-
rienced, he said.
Praises Reserve Board.
Mr.. Holland praised the action OF
the Federal Reserve Board in guar
anteeing the safety of loans made
by the banks in connection with the
production of war materials. Such
loans by the end of this year may
reach $4,000, 100000.
Discussing imitation, the speaker
said the only kind Of Government
bond buying that uses up surplus
income and helps prevent imitation
is buying from the savings Of cur
rent income. 1t is hoped that
through the payroll savings plan
and other methods the public can
be induced to purchase up to 10
per cent of earnings in order that
contemplated legislation may be pre-
vented.
The speakers unit of the District
Bankers Association has done most
effective work through radio talks
in pushing the distribution of war
bonds in this territory, he said.
Stressing the soundness Of the
banks, Mr.. Holland pointed to the
fact that AGGREGATE deposits OF