WAGE CUTS IN AMERICA.

New Zealand Herald, Volume LXVIII, Issue 20987, 25 September 1931, Page 9

WAGE CUTS IN AMERICA.

VARIETY OF OPINIONS. ADMINISTRATION OPPOSED. CHARGE AGAINST PRESIDENT. By Telegniph—Press Association—Copyright. (Received September '24, 7.4,"> p.m.) NKW YORK. Sept. 2ft. The announcement. c»f ilie impending wage cuts In (he .steel, motor, rubber and copper industries has boon subjected to a variety of interpretations. Organised labour lias proclaimed resistance to it. Some financial writers attribute, to unnamed business lenders the belief that the step would hasten a revival of business. The corporations which have announced cuts include the United States Steel Corporation, General Motors, the United States Rubber Company, tho American Smelting and Refining Company and tlie Utah Copper Company. Mr. William Green, president of flic American Federation of Labour, in a statement, says the reduction is morally wrong and economically unsound. No greater blow has been struck against the effort to bring a return of prosperity. Mr. Green alleged that the solemn pledge given bv (ho President, Mr. lloo\ci, in December, 1929, bad been broken. Mr. lloover's anxiety to maintain the present standard of living is said at the White House to be unaltered, and the wage cuts are regretted by the Administration, although no ofticial statement is forthcoming. In some high ofiicial quarters there is a disposition to feel that tho steel and motor-car industries have taken the lead toward a retrenchment policy just at a time when recovery from the depression is in sight. The ofiicials point out that as the. depression has gono forward a steadily increasing amount of savings has been accumulated in the banks. r J ho opinion is expressed that the time has about come when wage-earners and small salaried people would begin to spend, with the inevitablo favourable effect on trade.