WAGE REDUCTION.

Press, Volume LXVII, Issue 20234, 12 May 1931, Page 13

WAGE REDUCTION.

AMERICAN MOVEMENT

STANDARD OP LIVING. (FROM OUR OWM COJIKESPONBENI-) SAN FRANCISCO, April 15. American labour is up in arms at the threat of tho employers of the nation systematically to reduce wages nil over the country as the first step in an effort to solve tho perplexing American slump, which has wrought such tremendous inroads into the economic life of the United States, and has virtually paralysed business. While the Secretary for Labour, Mr Doalc, was calling upon employers to observe their pledge lato in 1929 not to reduce wages, Labour Department statistics in Washington revealed that actually thero had been wago cuts in tho month ended February 15th, affecting nearly 40,000 workers, and averaging 10.3 per cont. in their pay. The figures available provided an index to tho trend, covering a total of 12,367 establishments. Tlireo companies reported wago increases of 2, 5 and C per cont. respectively, affecting 209 employees. In several instances there wero flat reductions of 10 per cent, for all employees. United States Chamber of Commerce experts estimated that wages of common labour have dropped ail averago of 50 cents (two shillings) a day. Mr Doak's warning to industrialists was prompted by reports that wholesale wago slashing was imminent. 110 said ho was bound in all fairness to concodo that no reports of general reductions had come to him, a statement which corroborated President Hoover's expression of belief earlier in tho day that industrialists were keeping their promise. "Conspiracy on Toot." Mr William Green, president of tho American Federation of Labour, said a conspiracy was on foot to reduco wages in a number of important industries. 110 listed the textilo, boot and shoe, and bituminous coal industries as tho worst offenders. These employers, ho said, wero taking advantage of tho inability of the workers to fight back to slash wages on an extensive scalo. Tho Labour Department records showod most numerous reductions in cotton goods, woollons, foundries, machine shops, sawmills, and | furniture industries.

Mr Ethelbert Stewart, Commissioner of ,Labour Statistics, charged that American bankers were responsible for pressure in the direction of wage cuts, and a return to a lower standard of living. Absolving manufacturers generaalaly, except for "a fow old fossils," from eulpability, he said: "On the other hand, most, though not of the banks are unablo to got away from interest and dividends. Any talk of lowering interost rates or omitting dividends is immediately resented, and the old-timo remedy of reduction of wages is proposed. The real monace right now is the attitude of the banks." Ho said bankers found it profitable to see tho price level moving downward, so that tho 1926 dollar is worth 3.32 dollars, and that this was behind the pressuro for a return to the old pre-war standard of wages and living. A largo number of business' executives in the United States wora,interviewed, and most of them declared that tho high wage agreement with President Hoover had been adhered to, levels having been maintained in the past despite economic conditions. Bomo employors admitted that future salary levels were in doubt, as the American slump had continued over a period undreamed of when it started. It was generally agreed by all the executives questioned that they would opposo all movements that might tond to lower the American standard of living. Labour Issues Ultimatum. A few days later Mr William Green, tho' president of the American Federation of Labour, issr :d a sensational ultimatum to the effect that unless tho American high wage standard were maintained there wou'd bo no more high protective tariff for Uncle Sam. Mr Green threatened to join n movement for downward tariff revision unless "certain highly protected industrialists halt their wago-slashing campaign. '' "If these gentler in the Bhoe, toxtile and other highly protected industries continue to force wage reductions, I propose to join tho movement at tho next Congress to reduce their tariff protection," said Mr Green. "These gentlemen cannot have their cake and eat it too. Every argument they advanced at tho recent SmootHawley Tariff Bill hearings was to the effect that they could not compete* with foreign competitors because of the American high wage. Now that they have their higher tariff they are proceeding to slash wages. If they deliberately forsake their high wage argument they must also forego tariff protection." Mr Green suggested a measure providing for a sliding scale tariff that would conform to tho American wago scale in each industry. Thus, he said, the degree of protection would conform to the wage paid. His threat to join the downward revisionists is no idle gesture, for at tho last session the American Federation of Labour pould easily have defeated tho 80-callcd Grundy Tariff Act, for tho Bill passed tho Senate by only two votes. Drive Against Wage-Slashers. In the meantime, Mr Green is staging a nation-wide drive against tho wage-slashers. By radio talks, speeches and tho use of the motion* picture houses ho is urging employers to stand

by their agrocment with President Hoover in 1929. Ho says that if high wages can be generally maintained for tho next few months the "many forces now working for the return of prosperity" will have a chanco to operate without hindrance. Among these forces ho mentioned Federal Public Works totalling a billion dollars, city, country, State and utility building programmes, totalling hundreds of millions more. The now "prevailing wage law" for Foderal building. Immigration restriction that has cut immigration somo 75 per cent. Lowered stocks in nil lines that soon must be replenished by a new buying movement. "If low wages become universal these forces cannot operate," Mr Green said. "There is not an economist nor an enlightened employer in the nation that does not agree that high wages will help tho return of good times. Only a few reactionary bankers and tho highly protected manufacturers threaten to dostroy what years of effort have built.' A survey made by an American news agency shows that forty-five countries have increased tariff duties on h uu * dreds of commodities which the United States places on tho world market since the Hawley-Smoot Bill became effective ten months ago.