AMERICAN WAGE CUTS.

New Zealand Herald, Volume LXVIII, Issue 20987, 25 September 1931, Page 8

AMERICAN WAGE CUTS.

In the controversy that has arisen swiftly about wage reductions in tho United States, the name of the President has appeared, and the official attitude at Washington is being eagerly discussed. That this will he embarrassing not only for Mr. Hoover, but for the Republicans as a whole, can readily be understood. In little more than a year's time an election will be held. Mr. Hoover will be severely handicapped both in the contest for nomination and in the campaign, if he is the chosen candidate, whether he appears as consenting to or actively resisting a wage reduction programme. Up to the present his attitude has been directly against reductions. Reference is made to a solemn pledge ho gave in December, 1929. No such pledge can be found, for Mr. Hoover was not in a position to pledge his word that wages would not fall. What happened was that he called a series of conferences in November and December, 1929, to discuss means of overcoming the evil effects of the collapse the Stock Exchange suffered in October. He then made a point of seeking from industrialists an undertaking that they would not attempt to reduce wages. A statement he made on December 5 is probably referred to

in the reference to a "solemn pledge." Mr. Hoover was addressing a gathering of industrial magnates and leading business men. Reviewing the agencies and efforts employed to combat economic demoralisation, Mr. Hoover referred to the part played by the Federal Reserve Bank. Proceeding, he said: "The second action necessary to maintain progress was the standard set by leading employers that, so far as they were concerned, there would be no movement to reduce wages, and a corresponding assurance from the leaders of labour that not only would they use their influence to allay labour conflict, but would also co-operate with the employers in the present situation. These assurances have been given, and thereby wo not only assure the consuming power of the country, but we remove fear from millions of homes." Though the words do not constitute a pledge they explain why the President is being called upon to resist wage reductions.