U.S.
Oct, 15.
The latest papers from the United States contain almost as much depressing information on the subject of labour conditions has come from the other countries of the world. That the United States should suffer from the world-wide trade depression was only to be expected, though considerable comfort will be found in the fact that the comparative smallness of her taxation load leaves her in a very strong position when it comes to dealing with the difficulties with which zhe is faced. It is not possible to obtain exact figures showing the amount of unemployment throughout the United States. It might be said that as every succeeding estimate is published the total rises in an almost arithmetical progression until it is now thought that at least eight million industrial workers are unemployed, while no figure at present appears available to indies te the extent to which agricultural workers and the like are also suffering. Tt appears to be commonly believed, particularly in the Eastern. states, that by the end of the year America will have no fewer! than ten million unemployed. ly growing amount of distress the United States, between the early part of 1930 and June of next year, will have spent something in, the nature of G$1,550,000,000, This has not been spent in' unproduetive relief, but for the purpose of carrying out large works which must be for the good in the future. Thus, prospective expenditure for the first half of 1932 includes G$126,980,000 on public buildings and lands, 6$95,757,000 on construction work other than buildings, $40,000,000 upon works under the direction of the Engineer Corps, G$37,000,000 on repairs and maintenance, and some $73,593,000 on miscellaneous expenditure. In addition to this huge expenditure, the United States, for the financial year ended June 30 last, was faced with a deficit of G$1,000,000,000, which has considerably increased this year, until it is expected that a total of G$2,000,000,000 be reached. This latter figure is about three times greater than any deficit which is likely to be reached by Great Britain.
It will be remembered that when the question of affording relief to the unemployed by means of a dole was first raised, President Hoover very definitely announced his opposition thereto. On the face of it, the proposition was impracticable because it would entail the granting of benefits for which no premia had been paid. The situation would not be unlike the payment of insurance at the death of the beneficiary in the expectation that his heirs would commence payment under the policy. That eventually some method of paying money for the support of unemployed may have to be adopted seems a reasonable assumption. It is even more certain that the United States, with their per capita taxation of G$15_per annum as compared with Great Britain's S75, is in a position to raise money by taxation to an extent which-would be impossible in most other countries. But whatever form such relief would ultimately take, there appears to _mo reasonable ground for belief that the Government would be able to recoup its expenditure by any contributory system such a3 exists in Great Britain.
The most gratifying feature of the situation, as it exists present, has been the recognition by those who are atill at work of the fact that reduction in wages is a normal means of meeting the havoc wrought by the depression. Thus, commencing from the first of this month, two of America's great corporations, the United States and the Bethlem Steel, responsible between them for} more than half of America's steel production, cut wages by 10 per cent., this alteration affecting the pockets of more than }200,000 workers. General Motors reduced salaries by from 20 per cent. to 10 per cent. Copper miners in Arizona had their pay reduced 9.1 per cent., and other companies have made reductions ranging between the foregoing extremes. It is an interesting fact, and seized upon at this present juncture by the more optimistic, that in the depression of 1921,' United States Steel, which was virtually one of the big undertakings to reduce wages, did 30 when the bottom had been reached in the business and stock markets. If, indeed, the action of United States Steel does coincide with the attainment of the nadir of depression, it will be a piece of good new: for the rest of the world. But, too great pessimism is very much to be deplored, undue optimism is just as dangerous. The real reason why the present situation in America can be viewed by its people and rulers with quiet confidence is the fact that early recognition of the difticulties ahead accompanies a willingness to make very large sacrifices. Imposing as the figures we have quoted above undoubted. ly are, when the ratio of unemployment to population is considered it will be found that there is very little difference between conditions prevailing in the United States and those which exist in Britain today. It is, consequently, impossible to escape the conclusion that the nations are all very much in the same economic boat, and if. indeed, recent cuts coincide with a change in the fortunes of America; the whole world will welcome it as a sign of the return of those better days for which the world has been waiting such a very long time.
Text read from the printed page and cleaned; old type leaves the occasional error.