SLUMP IN U.S.A.

Hokitika Guardian, 15 April 1930, Page 2

SLUMP IN U.S.A.

MILLIONS OF UNEMPLOYED. WHAT SHALL BE DONE? SOME REMARKABLE CONTRASTS

SAN FRANCISCO, March 10. Economic conditions throughout tin United States have reached such a

serious state that even some of tin rabid optimists have paused in then daily chorus of prosperity being around that corner, and some of them at lews; have begun to admit that a depression of a drastic character reigns in these United States, the exact cause of whicl it lias puzzled even the expert economists to fathom.

Tire spectacle of processions of unemployed men in the average American city and town has brought home to these cheerful disciples of optimism that all is not well with the great American ( Republic, despite the 1 fact that the. Republican party, supposed to represent prosperity with a capital P, hold the reins of government at Washington.

All kinds of epithets have been levelled at the out-of-works. by those enjoying a competence, and the favour--ite appellation has. been "Bolshevists, the term Socialist having passed into the discard as not sufficiently red to suit the' upper classes. The fact remains that the vast majority of the large army of American unemployed has very little sympathy with the Soviet, yet in some of the cities the parnders have flaunted banners boosting the Soviet Union, and have denounced Imperialism, whatever that may mean in the United States.

MEN DEMANDING WORK

The men composing the processions in the cities are men on the verge of starvation, demanding work to keep body and soul alive and support their families. It is true that some of the paraders have held istreet corner meetings of the "soapbox” variety and have made use of inflammatory language, but the police, 'following methods at Hyde Park, have looked; on without any attempt to stay the harangues of the demonstrators. The l men have given vent to them views, and as long as they did not destroy property or condemn the Government in vitriolic manner they have been permitted to have their say, arid as a result have felt considerably relieved after unburdening themselyes...; Some of them, however, have announced their intention of "parading daily until they get what they want.”

NO PANACEAS,

An unemployment survey of the entire Pacific Coast, with a view to caring for the winter glut of transient labour is about to be undertaken, it was made known in San Francisco by Mr Will J. French, of the California State Department of Industrial Relations. Mr French, who is a native of Auckland, New Zealand, and lender of “safety first” systems throughout the world, has just returned from an unemployment conference of the Social Science Research Council in New York, and he said the survey in California will be undertaken bv the California Commonwealth Club’s research men. It will, he says, seek to alleviate not,, only the present situation, hut point the way toward the annually recurring social problem of homeless men that crowd the coast in winter.

“There was a strong plea in the New York conference for scientific study of the unemployed nroblem, and a determination to abolish the dread fear that haunts so manv of our citizens,” Mr French said. “Tt was pointed out that a wealthy country like ours, with inventive genius nnd machine power, should be first to concentrate its resources to end unemployment. There was unanimity in deploring as panaceas for unemployment either policemen’s clubs, cries of ‘Reds,’ or wellmeant slogans about the machinery ‘liberating men for other tasks.’ Instead there was talk of reliable surveys. pnhlic works under State, national, nnd city auspices, the five-day week, imfn-nvement of State employ-

ment agencies. “The responsibility of business was

also stressed, nnd many interesting cases recorded in which employers are

using their he. ds and hearts in an attempt to prevent sufferings.”

"SIX-HO 1 I? DAY OR DOLE?”

To the question as to what the United States shall'do with its several million unemployed, A. F. Whitney, president of the International Broherhood of Trainmen of America, while visiting San Francisco, replied: "Establish the six-hour day or get read\ ■for tlie dole, soup kitchens and breat. lines.”

Tlie present unemployment situatioi is not merely a seasonal phenomenon he says, hut the result of the nev labour-saving machinery. This 111:1, either be a great boon to America] workers or the opposite, lie believesdepending on the statesmanship a] plied in its adoption. He suggesto three immediate steps: (1) Eliniinat overtime in various trades, so that tli workers out of jobs will secure mon work. (2) Abolish all child labour While there are 4,000.000 men out o work, records show that there an more than 2,030,000 children under 1( gainfully employed in the Unitec States.. (3) Establish the six-houi day or tlie five day week. More than 50 industries, lie said, now operate under the six-hour day. If all American industry adopted this principle there would be no unemployed.

£16,000 A YEAR FOR "BABE”

RUTH

With all the distress in the country through unemployment, the workless army was astounded that the idol o the baseball world of America "Babe” Ruth had the temerity to demand the princely salary of 80,000 dollars annually for an engagement of two years with a leading Eastern baseball club, the New 'fork Yankees. AA bile he was haggling about his salary someone asked him, "Have you heard ol the unemployment in this country? The baseball followers possibly will not be able to attend the opening games of the season if such wages have to lie paid players.” Ruth passed this question unanswered, and when the management of the New York club capitulated the "home run” king signed up for two years at this unheard of remuneration, putting the President of the country in the background as regards payment for services rendered.

PEOPLE ECONOMISING

There is no doubt the rank and file of the country is economising with a vengeance, for even the cleaners and dyers report a diminution of business. Some of the big department stores are frantically endeavouring to tempt the public purse with lavish advertising of "bargains” in their lines of business, hut there are few buyers, and many of these are using "charge accounts.” Automobile salesmen are tightening their upper lips, as the general public has evidenced an apathetic attitude toward purchasing the new motor car models which have arrived in the display show-rooms. Many thousands of owners have decided to make last year’s model suffice for at least another year until economic conditions show some improvement. This slowness of sales has had a disastrous effect in Detroit and other manufaetur-

ing centres where the cars are turned out in hundreds of thousands. There is very little activitv in tlie real estate market, which usually is reckoned as the index o'f prosperity, and building construction show's no evidence of resurrecting itself from its lethargy of the last few years. Many observers believe the country will not be really prosperous until there is a boom in land values and the building industry readies its full stride.

Against all this, President Hoover believes that American industry and 'business are now recovering from the shock administered by the stock market collapse last autumn, and he is of the opinion that by the beginning of May the country should he free from the destressing aftermath of unemployment which it brought with the decimation of stock values on New York Stock Exchange. Summarising ' his conclusions, Mr Hoover said that unemployment “amounting to distress” had been confined to twelve States, and , was not more than seasonal in the | other 36 States. With maintenance j of wage rates, with lower interest rat- | 7 , l es, and with enlarged capital betterment expenditures by railways, utilities and business generally, he said he .

looked for the advance of spring to restore normal prosperity.