The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1947-12-04
We Cont Afford To Lose
The Minimum Wdqe Low

4l.0c an hOur In August IJ4Z, 10
SOC in February 1914, to 55c in
February 1916, and to 65c in jan
uary 1916.
After VI Day, further advances
in minimum wage levels spread
throughout the industry. By July
1947, according to estimates made
by the Bureau of Labor Statistics,
less than per cent of the indus
try's workers were earning less
than 75c an hour. At the present
time, minimum rate of 88c an
hour is in effect in many northern
mills. A large and growing num-
Der of southern mills maintain min
imum rates of soc or more.
One can appreciate this progress
when it is recalled that in August
1888 about one-twelfth of the cot
ton textile workers earned less than
25c an hour.
What does this advance signify?
What meaning does it have for 9th
er industries? 1t is this-there is
nothing inherent in an industry's
structure, in it's manufacturing pro-
cesses, in it's markets, in its wage
and employment policies, or in its
location that should be considered
as a permanent block to its ad-
vance. If the cotton textile indus
try, which as far back as the rec
ords go ranked among the lowest
in terms of wages paid, can rise
to it's present stature, who can say
that the seamless hosiery industry,
the cotton garment industry, the
cigar industry, the southern lumber
industry, and others with large pro-
portion of low-paid workers must
always lag so far behind the bulk
of manufacturing enterprises.
A 75c rate today would affect no
more than 10 percent of the Ameri-
can workers covered by the Fair
Labor Standards Act. If imposed
directly upon American manufac-
turing industries it would require
an estimated additional wage bill
of about percent of total manu-
featuring payrolls, or about $685.
100000 a year payable to those
earning less than the new statutory
minimum. Even assuming that the
full 1926, 100000 would become an
extra cost burden, however, the
American economy could absorb
this amount. The net income of un-
Incorporated manufacturing enter
prises was S1,9O6,0O0,OOO in 1916.
From these figures, it appears that
the additional wage bill, even if
none of it is absorbed, would
amount to less than 5 per cen of
the current level of profits, con-
sidered either before or after taxes,
in manufacturing industry.
This general prosperity is shar-
ed by the industries which would
be the most heavily affected by the
minimum wage. Not only are their
current profit positions good, but
they have shown substantial i'm
provement during the war and post
war years. Considering the health
of our economy and of its seq
ments, the present time is appro-
pirate for the relatively painless
introduction of a higher minimum
wage.
In saying that our economy as
a whole is in a healthy position to
absorb a 75c minimum wage, | do
l6At mean to imply that there will
,e hSo Individual firms who will be
acedNwith problems. There will be
uch fiEms. There were many such
irms IL bat had to adjust to the orig
nal FaT Labor Standards Act. |
,elieve, OH the other hand, that the
BUSINESS enterprises that have to
ely upon Nnfairly low wages to
emain in coNWpetition in our pres
mt economy aEe no more entitled
o protection fAom economic fail
re than are the ! thousands of un-
Enterprises who, while
maintaining fair standards of lab