Evening star., 1943-03-25
Road to Disaster

When the War Labor Board an
nounced its decision to adhere to the
little steel wage formula. it added a
warning that any radical change
in the cost Of living might compel a
reconsideration of it's action. Appar-
emily this warning was directed to
legislation pending in Congress
which, if adopted, would increase
the cost Of food, and it becomes
highly important. therefore. to con-
slider what this legislation is intended
to do and what it probably would
accomplish.
The most important pending meas
ure is that known as the Pace bill.
winch would revise the formula for
computing parity to the extent Of
including the increased cost of farm
labor-meaning hired labor, opera
tors OF farms and family workers. In
1912 they totaled 8,425 900 in number
This bill has passed the House, has
been approved unanimously bv the
Senate Agriculture Committee and
is slated for Senate action in the
immediate future.
Numerous arguments. persuasive
as far as they go, have been
advanced in support of the Pace bill
For instance, the House Agriculture
Committee has shown that the earn
lngS Of farmers are small as COM
pared to the earnings of industrial
workers, although the farmers work
harder and longer. They have shown
that the cost of hired farm labor
said to represent thirtv-two per cent
OF the cost of producing a crop. has
about doubled since the base period
l909-l4, upon which most paritv
prices are figured. They have shown
that, even with the doubled wage
rate, the farmers are finding it
increasingly difficult to hold even
the labor left to them because of the
greater attractions Of industrial
employment. And it must be con-
ceded that these things are true.
But what Of the remedy contem-
plated by the Pace bill? Its sponsors
say that because of these conditions
the increased cost Of farm labor-not
only hired labor but also that of the
farmers and members of their fam
llleS-muSt be covered into the paritv
formula. According to some esti-
mates, this would add from S.. 500
100000 to $4,000 100000 annually to
the Nations food bill. Other esti-
mates run down as low as $780,
100000. What would this do for the
farmer? First, it would add some
thing to his net income, although his
income position already is better
than 1t has been for many wears.
Second, In theory at least, it would
enable him to make some improve
ment in his labor situation. Pre-
sumably, by paying higher wages, he
would have better chance of keep
ing the help still on the farm. Per-
haps he might even get back some
workers who had left. But the dis
turbing fact is that the farmer IS
faced with competitors paving eight
and ten dollars day If he attempt
ed to meet that sort Of wage competi-
ton, AS he could do under the Pace
bill, the rise in living costs for the
rest Of the country would be calam-
itous. Industrial wage rates. of
course, would Jump stu higher.
Would the recourse for the farmer
then be to bid his own wage rates
up accordingly?
These are aspects of this question
which ought to receive very earnest
consideration in the Senate. And
they ought to be considered without
any thought of reflection on the
farmer, for he is in no sense respon-
Sible for the plight in which he finds
himself.
The essential fact is. however,
that the War Labor Board and the
administration, after permitting and
encouraging a tremendous advance
in the incomes of wage earners, now
are endeavorlng to hold the line
against further increases. This effort
comes late in the day, and it might
well be overcome by a substantial
rise in living costs. Thus, there are
two questions before the Senate:
Would the Pace bill be the straw to
break the back Of the resistance to
new industrial wage demands? Would
the bill be any real solution Of the
farm labor shortage within the range
Of costs that the Nation can bear?
Unless the answer to the first is no
and the second, yes, passage OF the
Pace bill might we'll be the signal for
an endless and increasingly expcn-
siye race between industry and
agriculture for a diminishing labor
supply. And that would be a certain
/ road to economic disaster for all.
Work or Eicht'