Evening star., 1947-05-10
Drive Against False Economy

DTlVc Against raise Economy
To the Editor Of The STAR
AS reported by your paper last week,
the Washington Board of Trade has
issued a report on the danger of de-
Capitalization to the prosperity of Wash
ington. The report contains some in
teresting remarks. But strangely enough,
1t overlooks the most dangerous threat
of all to the well being of the city. That
threat is the false economy drive
launched by coalition Of House Re-
against the Government budget pro-
posals submitted to Congress by Presi-
dent Truman. xxx ~
The fundamental Importance of Fed
eral employment to prosperity in the
District is not unknown to the Board
of Trade. In its June, 1916, report on
the Postwar outlook for the District,
the board noted that the "heavy in
dustry" of Washington is the Federal
service, and predicted that after the
private industry for each Federal en-
ploye. During the war. there was one
worker in private industry for each
Federal employe) In other words, the
Board of Trade was saying that each
Government job would sustain two jobs
in Washington's private service indus
tries after the war. The accuracy Of
that prediction is borne out by the facts.
Today, employment in Washington is
rapidly approaching the ratio of two
employees in private industry for each
one in Government.
But the accuracy of this prediction
also underscores the great danger fac
ing Washington today. The false econ
ony drive will not only slash essential
Government services, such as conserva-
tion of national resources, rural electri-
fication. Federal aid to education, en-
poyment placement and training pro-
granl~, and decent housing program;
1t will not only throw thousands Of
Washington Government employees out
OF work, but it al-o will shake the foun-
dations of the city's economy.
A cons ervative estimate of the number
Of Government employees facing lay-off
in Washington, If the House budget cuts
are not restored in the Senate, is about
10000. The loss of 10000 Government
jobs means that 10000 nongovernment
workers also will face lay-offs. The loss
of these $4,000 jobs means the loss of
over S130,000,000 annually in purchasing
power for the District of Columbia.
Could anything represent greater
threat to the welfare and ell-being Of
Washington?
The Board Of Trade would do well to
turn its attention to this question and
speak out against the false economy
budgeteers. Even more important, the
mass Of wage and salary earners and
small business men, not represented in
or by the Board Of Trade, and most di-
rectly affected, should make themselves
heard On this issue.
So far, the only local spokesman on
behalf of the economic interests of the
entire city has been the CIO government
employees union, the United Public Work.
ers of America. 1t is fitting, and indeed
a great source of pride to the rest of the
Washington CIO, that the United Public
Workers should take the lead in defend
ing the whole city's interest, as we'll as
those of Government employees. 1t would
be tragic, however, If other responsible
organizations did not recognize their
own stake in the campaign against false
economy and arouse their membership
in its support.
HENRY BEITSCHER,
President, Washington Industrial
Union Council.
Collaborators With I. G. Farben