CONDITIONS IN AMERICA

Hawke's Bay Tribune, Volume XX, Issue 197, 9 August 1930, Page 4

CONDITIONS IN AMERICA

As to current conditions in the United States, whose evidences of prosperity were so recently the object of almost world-wide envy, the New York correspondent of the London “Times” had recently something to say. He pointed out that in spite of the advocates, such as Mr. Henry Ford, of the maintenance of high wages throughout industry, wage cuts are becoming more numerous. The cotton .textile industry is outstanding in this regard, and also in curtailment of production, which for many wage-earners is only another form of wage-cutting. In the textile districts of New England and the south, the reduction of working hours and wages in the woollen and cotton mills is having a bad effect on all lines of trade and business. Seventy-three per cent, of the cotton mill capacity of the country is operating only every other week for a period. As that has the effect of cutting the operatives’ earnings in half, the mills can hardly put into effect further reductions in wages, but in the Carolinas they have begun to reduce the executive officers’ salaries and to cut dividends. The American Federation of Labour reports that figures from trade unions in 24 cities show that there were as many members out of work in April and May as in January, though there is normally a marked improvement at that time of the year. It is interesting to note the comment o fthe correspondent that “Americans in every class of society are economising as they have not had to do since 1924.” Possibly this is the end to which some overmastering influence is seeking to drive us all.