5715 AS ''V'^ 1^4'-^ f-^:\ ... ^i-' ^fe^'^- \v: . / 1--. V =hows when this volume vro"- Qfarttell 5!lttt0Etsitg Hthratg 3t\fum, BJi-m fork U?.... S.c'... 8^3)1.... of ...DOOT^^ fli^ l li fm 6 t!^r ^ p U ^'r(t{tB^)pl^r^^ \ . ■/-, IieK)e: OFlBB Cornell University Library HD5723 .A5 1921 Report of the President's Conference on olln 3 1924 032 446 498 PRESIDENT^ CGBFfiRENCE ON UNEMpLOYNtttfT HBRiB^,ft90yfeR, 'ehc0tiia*.} I. Qi^^j^l^Bt, Pfen* and Gen- VI. (|)'|i4*»^a^pr»ng erat R^bommendations (2) Shipping II; Unemployment Statistics (3) Foreign Trade llfc^-Maai^^|:0^?irtion' \ , : ^,,(*)iA8;^'cuItiu:e;. > :^ (2) Eiftployinent Agencies and Vlt iEJiiemplpymeBt and Business ;;'.;.■ -^Et^str^tion' ' ■ ' %'Z8^\';f^^iA^-^V}M Long View V; ^t| Constfttction Postscript tp the RepiOtt Seftemher 26ta Okoiir l$l M2I^^ ' PRICS^ 20 CENTS ., Sold flifisr br fbi ^etkteMcnt of Documents, Gov^tmn^t Fristiiis'<0^ttt . C ^ — ^ ^ : '■ 4- mi =PT= ^. The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/cletails/cu31924032446498 REPORT OF THE PRESIDENT'S CONFERENCE ON UNEMPLOYMENT Herbert Hoover, Chat I. Organization, Plan, and Gen- eral Recommendations n. Unemployment Statistics HI. (1) Municipal Organization (2) Employment Agencies and Registration IV. Public Works V. (1) Construction (2) Transportation (3) Mining VI. (1) Manufacturing (2) Shipping (3) Foreign Trade (4) Agriculture VII. Unemployment and Business Cycles — The Long View Postscript to the Report September 26 to October 13, 1921 PRICE 20 CENTS Sold only by the Superintendent of Documents, Government Printing Office Wasliington, D. C. WASHINGTON GOVERNMENT PRINTING OFFICE 1921 THE PRESIDENT'S CONFERENCE ON UNEMPLOYMENT.^ GENERAL CONTENTS. Part I.— ORGANIZATION, PLAN, AND GENERAL RECOMMENDATIONS. Page. Members of the Conference on Unenuiloynient 7 Organization and plan, by Edward Eyre Hunt, Secretary of the Confer- ence _ 15 Appendix A. — General recommendations of the Conference for the emer- gency program 19 Appendix B. — General recommendations of the Conference for measures for permanent recovery of employment 22 Appendix C. — President Harding's address of welcome, Sept. 20, 1921 25 Appendix D. — Secretary Hoover's address, Sept. 26. 1921 28 Appendix E. — A statement of employer members presented to the Con- ference Oct. 13, 1921, by Ernest T. Trigg, of Phihidelphia, Pa ^— 30 Appendix F. — Remarks of Samuel Gompers, President of the American Federation of Labor, delivered at the close of the Conference, Oct. 13. 1921 32 ■^ Appendix G. — Remarks of Hon. Herbert Hoover delivered at the close of the Conference, Oct. 13, 1921 33 Part II.— UNEMPLOYMENT STATISTICS. Members of Committee on Unemployment Statistics .37 Members of Subcommittee to Tabulate Distribution of Unemployment 37 Number of unemployed 37 Preliminary report of the Committee on Unemployment Statistics, Sept. 28, 1921 38 Report of the Committee on Unemployment Statistics 38 Appendixes H. I, J. — Questionnaires relating to unemployment 41 Extract from the stenographic report of the Conference on Unemploy- ment, session of Oct. 13, 1921. relating to unemployment statistics ' 45 Public hearing on unemployment statistics. Sept. 27, 1921 45 Members of Economic Advisory Committee 47 Excei-pts from report of the Economic Advisory Committee relative to unemployment statistics, Sept. 26, 1921 _ 47 Part III.— MUNICIPAL ORGANIZATION AND EMPLOYMENT AGENCIES AND REGISTRATION, MUNICIPAI, OkGANIZATION rOE U^'EilPLOYMENT. Members of the Committee on Municipal Organization for Unemployment. ,59 Recommendations for municipal emergency measures to relieve unemploy- ment 60 Report of the Committee on Municipal Organization for l^nemployment 61 1 Parts I to VII are also printed separately and may be purchased from the Superin- tendent of Documents, Government Printing Office, Washington, D. C, at 5 cents per copy. 4 THE I'EESIDEXT's CONFEREIn'CE OX UNEMPLOYMENT. Page. Kepwrt of tlie executive secretfiries to tiie couiniittee^ of tlie I'resideut's foiifei-eiice on Unemployment, Oct. 10, 1921 •- 03 I.ettci-s to mayors and governors ~- "* Abstraci from lf.er>ort of tlie Kcononiic Advisory Committee of Sept. 2G, l!>l;l, to tlie <\.nferenee, as snlimitted to tlie Conmiittee on Municipal (ii-.uanization for TTnpniployment "*3 KMPr.OYlLEXT Af^E^-flES AND ltEGIST]!.\TTOX. ^feniber^ of the Cmamittee on Employment Agencies and Registration^-^ 09 i;ei;Ia;m'facturiN(;. Members of Committee on Manufacturers 134 Report (Ml emergency measures l>y Couuniltee nn ilanufarturt rs 131 Reiiort of certain meuil)ers of tlie Couunittee ou Permanent Mrasures liy JIauufacturers, Oct. 11', 1:121 ^^^r, Report of rnrtain raemlicrs of the Committee ou Permanent Jleasures by -Alanufactui-ers, Oct. 13, 1921 i:!7 Report on permanent n)easures l)y the Committee on Jlauufadurers, Oct. 11, 1021 ] n Report on permarieiit measures by the Committee on Manufacturers, (h-t. 11. 1!»21 :___ 141 Re]iort on permanent measures hy the Committee on Manufaclurers, Oct. 12, 1921 142 Report on permanent measures by the Committee on JIanufacturers, Oct. 10, 1921 142 Sini'Pixi;. Jlemliei-s of Committee on Shipping 143 Emergency propo.sals foi- the relief of unemployment in ship operations and shipbuilding 14.3 Report on permanent measures by the Connnittee on Shipping 14.". FOKEIGN Tl!.\DE. Members of Committee on Foreign Trade 147 Report on permanent measures affecting foreign trade 147 Report of the Committee on Foreign Trade ^^ 147 AGiuci'i.Tria-:. Members of Committee on Agriculture 1.10 Permanent measures affecting agriculture l^iO Report of the Committee on Agriculture !'•'! Unemployment and business cycles — Recommendation of the Conference on Unemployujent on the necessity of exhaustive investigation into the causes and remedies of periodic business depressions l."i7 6 THE PEESIDEKT S CONFEEE^^CE ON UNEMPLOYMENT. Part VII.— UNEMPLOYMENT AND BUSINESS CYCLES— THE LONG VIEW. Page. Excerpts from report of the Economic Advisory Committee on seasons as caiiso,-. of unemployment, as submitted to tlie Conference Sept. 26, 1921_ 161 Excerpts from report of the Economic Advisory Committee on business cycles as causes of unemployment, Sept. 20, 1921 163 Excerpts from report of tlie Economic Advisory Committee on unem- ployment and depression insurance. Sept. 26, 1921 166 Appendix P. — Brief bibliosrapliy 167 Postscript to tlie report — Some results of tlie Conference on Unemploy- ment, by Edward Eyre Hunt, Secretary of the Conference 171 Part I —ORGANIZATION, PLAN, AND GENERAL RECOMMENDATIONS. CONTENTS. Page. Members of the Conference on Unemployment 7 Organization and plan, by IMwarcl Eyre Hnnt, Secretary of the Conference- 15 Appendix A. — General recommendations of the Conference for the emer- gency program 19 Appendix B. — General recommendations of the Conference for njeasurcs for permanent recovery of employment 122 Appendix C. — President Harding's address (if welcome September 20, 1921_ 25 Appendix D. — Secretary Hoover's address September 2(!, 1921 28 Appendix B. — A statement of employer members presented to the Confer- ence October 13, 1021, by Ernest T. Trigg, of Philadelphia, I'a 30 Appendix F. — Remarks of Samuel (?omi>ers, President of the Ameri- can Federation of Labor, delivered at the close of the Conference, Oc- tober 13, 1921 32 Appendix G. — Remarks of Hon. Herbert Hoover, delivered at the close of the Conference, October 13, 1921 33 MEMBERS OF THE CONFERENCE ON UNEMPLOYMENT. Herbert Hoover, Secretary of Commerce, Washington, D. C, Chairman of the Conference, ex-officio member of all committees. James J. Davis, Secretary of Labor, ex-officio member of all com- mittees. John B. Andrews, executive secretary, American Association for Labor Legislation, 131 East Twenty-third Street, New York, N. Y. Member, Economic Advisory Committee, and executive secretary. Committee on Public Hearings. Thomas C. Atkeson, Washington representative of the National Grange, Washington, D. C. Committee on Agriculture. WiNSLOw B. AxER, president, Eastern & Western Lumber Co., Front and Twenty-first Streets, Portland, Oreg. Committee on Con- struction. Charles M. Babcock, Highway Commissioner of Minnesota, 920 Guardian Life Building, St. Paul, Minn. Committee on Public Works. Julius H. Barnes, president U. S. Food Administration Grain Corporation, 1917-1919; U. S. Wheat Director; chairman, Institute 7 8 THE PKESIDE^'T's COiS^FEKENrE ON XJXEilPLOYMENT. for Public Service, 42 Broachvay, New York. X. Y. Committee on Organization; chairman, Committee on Employment Agencies and Registration; Committee on Civic Emergency Measures; Committee on Foreign Trade; Standing Connnittee of the Conference. (teuroe E. Barnett, professor of statistics, Johns Hopkins Uni- versity. ^-27 Park Avenue, Baltimore, Md. Economic Advisory Com- mittee. Ernest S. Bradford, statistician, Argyll A\enue. Xew Kochelle. X. Y. Economic Advisory Committee. Edwin H. Brown. Hewitt & Brown, architects, [Minneapolis, Minn. Committee on Construction. WiLLLVM 8. Brown, president, Xntional Marine Engineers Asso- ciation, SI-'! ]\Iachinists" Building, Washington. D. C. Committee on Shipinng. ^y. L. Bt'iiDiCK. Fargo, X. Dak., agriculturalist. Committee on Statistics: Commitlee on Agriculture. Bailey J3. BrRRiTT, executive secretary. Association for Improving- the Comlition of the Poor, 105 East Twenty-second Street, New York, X. Y. Pk-onomic Ad\isory Committee; executive secretary, Ci)in!iii.ttee on Civic Emergency Measures. WiEEiA:\r M. Butler, president. Butler Mills. Xew Bedford Cotton [Mills, Hoosac Cotton jMills, 77 Franklin Street, Boston. Mass. Com- mittee on Manufacturers; Committee on Foreign Trade: Standing- Committee of the Conference. Ja3ies a. Cajipbell, president, Youngstown Sheet & Tube Co.. Youngstown, Ohio. Committee on Statistics ; chairman. Committee on Manufacturers. Alexander E. C.\nce, professor of agricultural economics, [Massa- chusetts Agricultural College, Amherst, 'Mi'.ss. ICxecutive secretary'. Committee on Agriculture. W. S. Carter, president. Brotherhood of Locomoti\e Firemen and Engine ifen, 901 Guardian Building, Cleveland, Ohio. Committee on Transportation. Elizabeth Ciiristman. secretary. International Glove Workers* Union; secretary-treasurer, X'ational Women's Trade Union League, 311 South Ashland Boulevard, Chicago, 111. Committee on Eegis- tration and Employment Agencies, and Committee on Civic Emer- gency Measures. Y.DCAii E. Clark, ex-president, Order of Pvailway Conductors; memljcr, Pvoosevelt Anthracite Commission in 1902 ; formerly chair- man. Interstate Commerce Commission, American Bank Building, 1315 F Street XW., Washington, D. C. Chairman, Committee on Transportation; Standing Committee of the Conference. Bird S. Coler. Commissioner of Public Welfare; chairman, In- dustrial Aid Bureau, Xew York. X. Y. Committee on Employment Agencies and Eegistration ; Committee on Public Works; Committee on Civic Emergency jNIeasures. H. R. CoLWELL. Executive Secretary in cliarge of headquartei>. ilrs. Sar^v a. Coxboy, secretary. United Textile Workers of Amer- ica, Bible House, Xew York, N. Y. Committee on ?>Ianufacturers. JoHx T. CoNXEKY. president, Miami Coal Co., 332 ^lichigan Ave- nue, Chicago, 111. Committee on Mining. Mayok Jajies CorzEXs. president, Detroit Board of Commerce; former vice president, Eord INIotor Car Co.: mayor since 1919. Ad- dress, Dime Bank Building, Detroit, ^lich. Committee on Organi- zation: Committee on Statistics; Committee on Civic Emergency Pleasures : Committee on Public Works. Joseph H. Defeees, president, Chamljer of Commerce of the United States. Mills Building, A\'ashington, D. C. Chairman, Com- mittee on Organization; Committee on Employment Agencies and Eegistration ; chairman, Committee on Foreign Trade ; Standing Committee of the Cotiference. Hexey S. Dexxisox, president, Dennison Manufacturing Co., Framingham, Ma^s. Economic Advisory Committee; Committee on ^Manufacturers. Davis E. Dewey, professor of economics and statistics. ]\Iassachu- setts Institute of Technology. '2 j5erke]ey Street, Cambridge, Mass. Economic Advisory Committee. EoY DicKixsox, editor, Printers' Ink, East Orange, X. J. For- merly chief. Industrial ^Morale Section, Office Chief of Staff, U. S. A. Committee on Manufacturers. JoHX DoxLix, president. Building Trade Department, American Federation of Labor, Washingfon, D. C. Committee on Construc- tion. Carroll W. Dotex. professor of economics, Massachusetts Insti- tute of Technology, 222 Charles Eiver Eoad, Cambridge, Mass. Economic Advisory Committee; Committee on Shipping; Commit- tee on Statistics. J. E. Edgeetox, i^resident, Lebanon Woolen Mills ; Fuel Adminis- trator of Tennessee; chairman. War Resources Committee for Tennessee and United War Work Campaign; president, National Manufacturers' Association, 50 Church Street, New York, X. Y. Committee on ^Manufacturers. JoHx- H. Fahey, 40 Court Street, Boston, Mass. Former presi- dent. Chamber of Commerce of the United States. Committee on Foreign Trade. W. K. Field, president, Pittsburgh Coal Co., 0]i\-er Building. Pittsburgh, Pa. Committee on Mining. Mortimer Fleishhackee, chairman. Labor Mediation Board of the Pacific coast during the War; president, Anglo-California Trust 10 THE PEESIDENt's CONFERENCE ON UNEMPLOYMENT. Cu.. Sansome and Market Streets, San Francisco, Calif. Committee on Employment Agencies and Eegistration ; Standing Committee of the Conference. P. A. S. Franklin, president, International Mercantile Marine, 9 Broadway, New York, N. Y. Committee on Shipping. Edwin F. Gat, president. New York Evening Post, New York, N. Y. ; formerly Dean, Graduate School of Business Administration, Harvard University. Economic Advisory Committee. James S. Gibson, president. Waterfront Employers' Union, 1220 Post Street, Seattle, Wash. Committee on Shipping. Sa:muel Gompees, president, American Federation of Labor, Wash- ington, D. C. Committee on Manufacturers. E. S. Geeog, Chief, Transportation Division, Department of Com- merce. Executive secretary, Committee on Shipping. John M. Geies, Chief, Division of Building and Housing, De- partment of Commerce. Executive secretary, Committee on Con- struction. A. F. Haixes, vice president. Pacific Steamship Co., 112 Market Street, San Francisco, Calif. Waldorf-Astoria, New York, N. Y. Committee on Shipping. Salmon P Halle, president. National Council of Retail Associa- tions, Halle Bros. Co., 1226 Euclid Avenue, Cleveland, Ohio. Com- mittee on Civic Emergency Measures. Geoege Edmuxd Hatnes, Member, Commission on Race Relations of the Federal Council of the Churches of Christ ; formerly Director, Division of Negro Economics, U. S. Department of Labor, 1761 T Street NW., Washington, D. C. Committee on Civic Emergency Pleasures. Claeence J. Hicks, executive assistant to president, Colorado Fuel & Iron Co. ; executive assistant to president, Standard Oil Co., 26 Broadway. New York, N. Y. Committee on Employment Agen- cies and Eegistration; Committee on Manufacturers. De. Thomas P. Hinman, president, Hand Trading Co., Pelham, Ga.; ])resi(lent, Farmers Bank, Pelham, Ga. ; president, Pelham Phosphate Co.; president. Pelham Oil & Trust Co. Committee on Manufacturers. A. L. HiMEiiiiEr. president and director, Westinghouse Air Brake C(i.. Pittsburgli. Pa.: Industrial Inspector of Ordnance Department dni-ing War; member, Fuel Commission, State of Pennsylvania; vice president, National Council for Defense; director. National Chamber of Commerce. Committee on Manufacturers. Edward Eyre PIunt, engineer, 27 West Forty-fourth Street, New York, N. 1 . ; secretary. Conference on Unemployment ; executive sec- retary, Committee on Organization; secretary. Standing Committee of the Conference. THE president's CONFEEBNCE ON XTNEMPLOYMENT. 11 Jackson Johnson, chairman, International Shoe Co. ; president, St. Louis Chamber of Commerce, Fifteenth Street and Washington Avenue, St. Louis, Mo. Committee on Employment Agencies and Registration ; Committee on Manufacturers. Clyde L. King, professor of political science, University of Penn- sylvania, Philadelphia, E. F. D. 3, Media, Pa. Economic Advisory •Committee ; Committee on Agriculture. John H. Kirby, president, Kirby Lumber Co., Houston, Tex. Committee on Construction ; Committee on Agriculture. Gordon Lee, Chief, Automotive Division, Department of Com- merce. Executive secretary, Committee on Manufacturers. William M. Leiserson, impartial chairman. Men's and Boys' Clothing Industry, Eochester and New York, N. Y. Executive sec- retary. Committee on Employment Agencies and Eegistration ; Com- mittee on Civic Emergency Measures; Committee on Publications. John L. Lewis, president, United Mine Workers of America, Mer- chants Bank Building, Indianapolis, Ind. Committee on Mining. Sam a. Lewisohn, Adolph Lewisohn & Sons, 61 Broadway, New York, N. Y. Economic Advisory Committee ; Committee on Mining. Samuel McCune Lindsay, professor of social legislation, Colum- bia University, New York, N. Y. Economic Advisory Committee; chairman. Committee on Public Hearings; Committee on Organiza- tion; Committee on Publications. Bascom Little, 7711 Euclid Avenue, Cleveland, Ohio. Commit- tee on Construction; Committee on Civic Emergencj' Measures; Committee on Public Works. R. A. LuNDQuisT, Chief, Division of Electrical Machinery, Dej^art- ment of Commerce. Executive secretary. Committee on Shipping. Otto T. Mallery, Member, Pennsylvania State Industrial Board, Philadelphia, Pa. Economic Advisory Committee; executive secre- tary, Committee on Public Works. C. H. JSLiRKHAM, president, Illinois Central Eailroad Co., Chicago, 111. Committee on Organization ; Committee on Statistics ; Com- mittee on Transportation ; Standing Committee of the Conference. Gen. E. C. Marshall, Jr., formerly chief, Construction Division of the Army; General Manager, Associated General Contractors of America, 1038 Munse}' Building, Washington, D. C. Committee on Public Works; chairman. Committee on Construction. George H. McFaddex. 1:^1 Chestnut Street, Philadelphia, Pa. Committee on Foreign Trade. T. W. Mitchell, engineer', Philadelphia, Pa. Executive secretary, Committee on Statistics. Wesley C. Mitcheli,, professor of economics. Js'ew School for Social Research, 465 West Twenty-third Street, Xew Yoi-k, X. Y. 12 THE president's ruXFEEICXCE OX UXE.MPLOY.MEXT. Ee^idence. 101 AVest T^velfth Street, Xew ^'ork, X. Y. :Meinber, Eeonomic Advisory Committee; Committee on Statistics. John Moore (alternate for John L. Lewis), American Federation of Labor Building, AYasliington, D. C. Committee on Mining. CiiAKLKS P. Neill, former U. S. Connnissioner of Labor Statistics; umpire, Antliracite Conciliation Board; manager. Bureau of Infor- mation of Southeastern luiihvays, AVoodward Building, Washing- t(jn, D. C. Eesidence, 1312 Massachusetts Avenue NW., Washing- ton, D. C. ExecutiA-e secretary, Committee on Transportation ; Com- mittee on Civic Emergency .Measures. Thomas ^' O'Coxxoit. president. Longshoremen's Union; member of I'liited States Shipping Board. Washington. D. C. Committee on Organization and chairman. Connnittce on Shipping. LiTiK.ow ()si!ui:XE. Executive Secretary in charge of headquarters. Pate A. Paemeiitox. Chief oi the Eul)1ier Division, Boom 1022, De- partment of Commerce. I'xecutive secretary. Committee on Foreign Trade. Eay^mund a. Pi:arm('x, president, Iowa State College of Agricul- ture, Ames, Iowa. Ex-Assistant Secretary of Agriiadture. Com- udttee on Transportation: chairman, (Vsininitlcc on Agriculture. JoHx A. Pextox, publisher. Iron Trade Eeview, ll'M\ Chestnut ,V venue. Cleveland, Ohio. Committee on ilanufacturers. ?>Iay(>r Axdrew J. I'etei;s. former ^ilember of Congress: former Assistant Secretary nf the Treasiiry; mayor since 1918, City Hall. r.Ci-tiu. ]\[ass. Conniiitlee on Ci\ic Emergency ^Measures; chairman, Commiltee on Public ^York-; Standing Connnittce of the Conference. E. M. Posrox, president. New York Coal Co.. S East Broad Street, Columbus, C)liio. Committee on Mining: Standing Committee of the Coriference. W. i\ Procter, president, Procter & (-Jumlde, Cincinnati, Ohio. Committee on Manufacturers. JoEix H. PiuTE-rr, president, National (Jrgaiiization of Masters, Mates, and Pilots of America, 42:') Forty-ninth Street, Brooklyn, N. Y. Committee on Shipping. H. I!. Eatmoxd, ])i'esident, American Ste;unshi)) Owners Associa- tion. Pier 3G. North Eiver, New York, N. Y. Committee on Shipping. lYiELiAvt M. ErrTEii, William Eitter Luml^er Co., Columlnis, Ohio, addi-ess 2107 Massa.chnsctts .Vveime, Washington, D. C. Committee on Construction. Hkxry M. Eobixsox, member. Second Industrial Conference; chairman of the Bituminous Coal Commission, 192(1; president, Los Angeles Trust Co., Los Angeles, Calif. Chairman, Committee on Organization: chairman. Connnittce on Statistics. E. H. iM. EoEixsoN. vice president, LTnited American Lines, 39 Broadwa}', New York, N. Y. Committee on Shipping. THE PRESIDENT S C;(j:NFEKENCE (IX ITNEMI'L( A.^IENT. 13 William S. Eossitek, formerly Chief, United States Census; presi- dent, Euinford Press, Concord, N. H. Chairman, Economic Advisory Committee.. John D. Ryan, Director, Aircraft Production, lOLs; president. United Metals Selling Co., 25 Broadway, New York, N. Y. Chair- man, Ccmrmittee on Mining. Charles M. Schavab, chairman, Bethlehem Steel Corporation; Director General of Shipbuilding, United States Shipping Board Emergency Fleet Corporation, 191S. Ill Broadway, New York, N. Y. Committee on Organization; Committee on ISlanufacturers; and Committee on Sliipping. Hexky E. Seager, professor of economics, Columbia University, New York. N. Y. Economic Advisory Committee. Edwin E. A. Selicuian, professor of economics, Columbia TTniver- sity. New York. N. Y. Economic Advisory Committee. Gray Silver, "Washington representative. .Vmerican Farm Bureau Federation, Munsey Building, Washington, D. C. ; Conniiitt'ee on Agriculture. W. H. Stackhouse, president, National Implement & Vehicle As- sociation. Springfield, Ohio. Chairman, Committee on Manufac- turers. Benjamin Strong, Governor, Federal Eeserve Bank of New York, 15 Nassau Street, New York, N. Y. Committee on Foreign Trade. Ida M. Tarbell, 132 East Nineteenth Street, New York, N. Y. Committee on Organization; Committee on Public Works; Com- mittee on Civic Emergency Measures; Committee on Publications; Standing Committee of the Conference. Sanford E. Thompson, engineer, 136 Federal Street, Boston, Mass. Economic Advisorj^ Committee: Committee on Construction; Com- mittee on Manufacturers. M. F. TiGHE, president. Amalgamated Association of Iron, Steel, & Tin Workers, House Building, Pittsburgh, Pa. Committee on Em- ployment Agencies and Eegistration. Ernest T. Trigg, member. First Industrial Conference, vice presi- dent and general manager of John Lucas & Co., 322 Eace Street. Philadelphia, Pa. Committee on Construction ; Committee on Public AVorks; Committee on Organization; Standing Committee of the Conference. Mart: Van Kleeck, Director, Women in Industry Service in Ignited States Department of Labor, 1918-19; director, Industrial Studies, Eussell Sage Foundation, 130 East Twenty-second Street, New York, N. Y. Committee on Mining; Committee on Statistics: Committee on Civic Emergency Measures ; chairman. Committee on Publications; Standing Committee of the Conference. John P. White, United Mine Workers of America, 1102 Merchants Bank Building, Indianapolis, Ind. Committee on Mining. 14 THE PRESIDENT S CONFEEENCE OK UNEMPLOYMENT. LupTtix A. "WiLKiNsox, newspaperman and publicist, 50 Broad Street, Xew Yoili, N. Y. Executive secretary in charge of publicity. "Walter F. Willcox, i^rofessor of economics and statistics, Cornell I'niversit}', Ithaca, N. Y. Economic Advisory Committee; Commit- tee on Statistics. JoHX B. WiLLiA^rs, general manager. First National Pictures Cor- poration, Xew York, N. Y. Address, 820 Albee Building, Washing- ton, D. C. David L. Wing, consulting statistician, 1731 H Street NW., Washington, D. C. Executive secretarj?. Committee on Mining. Matthew Woll, president. International Photo Engravers Union of North America ; vice president, American Federation of Labor, 6111 South Bishop Street, Chicago, 111. Address, American Federa- tion of Labor Building, Washington, D. C. Committee on Organiza- tion ; Committee on Statistics ; Conmiittee on Public Works ; Commit- tee on Civic Emergency Measures ; Standing Committee of the Con- ference. Leo Wolmax, New School for Social Research, New York, N. Y. Economic Advisory Committee. Arthur Woods, former Police Commissioner of New York; As- sistant to Secretary of AVar in charge of Reestablishment of Service Men in Civil Life, 1919, 32 East Thirty-second Street, New York,_ N. Y. Committee on Public Works ; chairman, Committee on Civic Emergency Measures ; Standing Committee of the Conference. EvAxs Woollen, member, Economic Policy Committee of the American Bankers' Association; president, Fletcher Joint Stock Land Bank, Indianapolis, Ind. Committee on Public Works. Clarence Mott Woollev, president, American Radiator Co., 104 West Forty-second Street, New York, N. Y. ; representative of Sec- retary of Commerce on War Trade Board, 1917. Committee on Organization; Coumiittee on Statistics; Committee on Civic Emerg- ency Measures; Standing Committee of the Conference. Allyx a. Ygi:xu, Harvard University, Cambridge, Mass. Chief, Division of Economics and Statistics, American Commission to Ne- gotiate Peace, 1918-19. Economic Advisory Committee; Committee on Statistics. " Fundamentally sound, flnancially strong, in- dustrially unimpaired, commercially consistent, and politically unafraid, there ought to be work for everybody in the United States who wishes to work." — President Harding, speech to the Confer- ence on Unemployment, September 26, 1921. "What our people wish is the opportunity to earn their daily bread, and surely in a country with its warehouses bursting with a surplus of food and clothing, with its mines capable of in- definite production of fuel, with sufficient housing for comfort and health, we possess the intelligence to find solution." — Secretary HooYer, speech to the Conference on Unemployment, September 26, 1921. ORGANIZATION AND PLAN, BY EDWARD EYRE HUNT, SECRETARY OF THE CONFERENCE. On August 20, 1921, Secretary Hoover in a letter to the President suggested the calling of a " Presidential Commission of men repre- sentative of all sections, predominantly those who can influence the action of emplojang forces and who can influence public opinion," w^ a view " to proper determination of the facts and needs of the [i^mployment] situation." Replying on August 24 the President accepted the suggestion and asked Secretary Hoover to assist him in selecting men who " would be helpful in making a success of such a Conference." The President's decision to call the Conference was communicated to the press on August 29 in an announcement by Secretary Hoover, who stated that — The object of the Conference will be to inquire into the volume of needed employment, the distribution of unemployment, to make recommendations as to measures that can properly be taken in coordinated speeding up of em- ployment by industries and public bodies during the next winter and in addi- tion a broad study of the economic measures desirable to ameliorate the unem- ployment situation and give impulse to the recovery of business and commerce to normal. On September 7 and 8 a number of economic experts met in Wash- ington, at the invitation of Secretary Hoover. These men formed 1.5 16 THE president's coneeeexce ox unemployment. the Economic Advisory Committee, later enlarged by its own action under the chairmanship of William S. Rossiter, of Concord, N. H., which was charged with the preparation of the agenda and with the collection and collation of material for submission to the Conference. A section of this committee met in Cambridge, Mass., on September IG and transmitted a report to the whole committee which met in Xcw York on September 20 and which in turn submitted, under date of September 22, an ad\ ance summary of its report to the Con- ference ; the full report was rendered on September 26. ]\Ieanwhi]e on September 20 announcement was made in Wash- ington that Secretary Hoover had been appointed Chairman of the Conference by the President, and a list of the men and women who had accepted the President's invitation to serve as members of the Confereni e, headed by the Secretary of Labor, Avas given out. The list was later increased by further acceptances. The President's telegram of invitation was as follows : The White Hotse, Wasliiniiion. I). C, Septeniljer ?.0, 19.i1. 1 am (lesirmis of including yoiu' naiiie in the fortlieii]i)ing Conference on rnemiiloyment to Ije held in Washington in nl)Out 10 ihiy.s. T)ie object of the Conference is to inquire into tlie volume and distriljutiou of unemph.iyment, to advise upon emergency measui'es that can t)e properly taken by employers and local authorities and civic bodies, and to consider such measures as would tend to give impulse to the reco\ery of business and counnerce to nor- mal. I would be glad if I could have your acceptance. I do not pi'opose to make any public announcement until the list is complete. Wakhen (.!. Haedino. At 10 a. m. on September 26, 1921, the Conference met in general session at the Dejiartment of the Interior and, after hearing ad- dresses by the President^ and Secretary Hoover' and appointing a Committee on Organization and Program, under the chairman- ship of Henry M. Robinson, of Los Angeles, adjourned until the afternoon. The Conference reconvened at 3 p. m. at the Department of Commerce, and accepted the recommendations of the Organiza- tion Committee, which had been in session in the meantime, as to the division of the Conference into the following subcommittees to deal with the emergency program : Unemplojanent Statistics : Em- ploj^ment Agencies and Registration ; Emergency State and Munici- pal Measures and Public AVorks; Emergency Measures by Manu- facturers; Emergency Measures in Transportation; Emergency Measures in Construction ; Emergency ]Measures in ISIining ; Emergency Measures in Shipping; and Public Hearings. Adjournment was then taken until September 30 at 10 a. m. •For full text of President's speeoh, see Appendix C. 2 For full text of Secretary Hoover's srieeeli, see .\ppenaix D. THE president's CONFERENCE ON UNEMPLOYMENT. 17 By action of the Organization Committee the subcommittee on Emergency State and Municipal Measures and Public Works was later divided into two, namely, subcommittee on Civic and Emergency Measures ^ and subcommittee on Public Works." The next three days, September 27, 28, and 29, were occupied Avith intensive work by the various subcommittees, some of which held public hearings under the direction of a Connnittee on Public Hear- ings. Agreement in the various subcommittees had been reached when the second general session was held on September 30 and an emergency program, consisting of 12 recommendations, was unani- mously adopted.^ On September 29 a preliminary imanimous reiwrt of the Commit- tee on Unemployment Statistics " was given out. On October 5 the complete report of the Committee on Community Civic and Per- manent Measures ° and a preliminary report of the Committee on Employment Agencies and Registration,^ both unanimous, were ready for submission to the Conference, and were made jiublic. On October 4 the President issued the following statement : The Conference which I recently summoned to Washins'ton to advise as to the unemployment situation has demonstrated that an unusual volume of unem- ploj'ment exists and that pending the recuperation of trade the situation can not be met, in due regard to our obligations and necessities, without a niuch more t han u sual organization throughout those States and municipalities where un- employment has reached considerable proportions. The Conference has recommended a plan of organization which has had the support of commercial, manufacturing, professional, and labor representatives of the country. It is highly necessary that more accurate knowledge should be had, through such organization, of the volume and necessities of the un- employed. It is essential that the cooperation of all sections of each connnunity should be brought into action behind such organization to provide work and as- sistance that we may pass through the coming winter without great suffering and distress. It is of national importance that every community should at once undertake such organization in order that the Nation may l)e i>rotected as a whole. Moreover, the thorough commitmeilt to such a task is sure to start a thousand activities which will add to our common welfare, I, therefore, appeal to the Governors and Mayors of the Nation that they should ta ke th e steps j'ecommended by the Conference. In order that there may be unity of action by all the forces which may be brought to bear, whether governmental or private, the Unemployment Con- ference is establishing an agency in Washington through which appropriate co- ordination can be promoted, and through which i-eports on jn-ogress and sug- gestions may be given general circulation and cocjperation. I trust tliis agency will be supported in this endeavor. AS'AKREN (i. H.\RD[NQ. 2 See Part III. i See Part IV. s Emergency recommendations. Appendix A. » See Part II. 76200—21 2 IS THE PKKSIDEXT's COKFEltKXt^E OX r XEMPLOY-MEXT. Col. Arthur Woods, of Xew York, Chairman of the Committee on Civic Emergency :\Ieasnres. immediately began the work of furnish- ing the varrous municipal and State authorities with the necessary information to enable them to put into effect the entergency recom- mendations of the Conference. The Coiiference then adjourned not to meet again until October 11. In the meantime, particularly on October 10 and 11, work on a permanent program was begun in committees, the number of which had lieen increased by the appointment of subcommittees on the following: Foreign Trade; Agriculture; and Publications. The Conference reconvened at 3 p. m. on October 11, when a permanent program of eight recommendations was adopted.^ At this session the unanimous reports of the Committees on Em- ployment Agencies and Registration' and on Foreign Trade "^ were also adopted, and a resolution passed favoring further aid for the Fed- eral employment service. The subcommittees which had not yet completed their reports or arrived at an agreement continued their work on October 12 and 13. On each of these days a general session was held to consider the re- ports of the various committees. Since the Conference was a de- liberative, not a legislative, body it was determined to consider only the committee reports which were unanimous and wdiicli were not in disagreement with the views of other committees of the Conference. All reports not coining within this category were submitted to the Conference for its information but were not acted upon. During the general sessions of October 12 and 13 reports on the following subjects were unanimously adopted by the Conference: Statistics; " Reclamation; * Business Cycles; " Public Works; * Emer- gency Measures in Shipping ; " Permanent Measures in Shipping ; "■ Construction ; '"' Agriculture ; * Transportation.^" Reports on the following subjects were received but not acted on by the Conference: Mining; ^° Railroads; ^ Permanent Measures by Manufacturers; ^ Taxation; ** and TarifF.** With a view to consolidating the work of the Conference and making its M'ork of immediate practical value, the concluding action of the general session of October 13 " was the unanimous adoption of the following resolution : 3 See I'art III. ' See Part IV. « See I'art II, 'Permanent program. .\p|icncUx H. » See Part VI. ■' See Part VII. 1" See Part V. " For full te.xts of "A statement by employer members of tbe Conference on unemploy- ment," presented by Ernest T. Trigg at this session, the remarks of Samuel Gompers to reply, and the eoncluding remarks of Secretary Hoover, see .\ppenciices E. F, and G. THE PRESIDENT S CONFEEENOE ON tTNEMPLOYlMENT. 19 Resolved, (a) That the Organization Counnittee should at once select and announce a Standing- Committee of the Conference. (&) Said committee to continue until the present uufuiijloynieut emergency Is passed. (c) The Standing Committee is authorized to recuiivenc I lie ('onfeivnce at any time it shall deem wise. ('M It shall be the duty of the Standing Cununittee to continue the work in progress of emergency organization throughout the country. ((') The Standing Committee shall appoint llie following subcommittees for future report: (1) Such committees of service to the present emergency as may be required; (2) Committee on Construction Development; {:^) C'oiianitree on Investigation of Remedial Measures for Reducing Intermittent and Seasonal Unemployment; and (4) Counnittee on Permanent Jleasures of Preventing Un- employment. if) All matters undisposed of shall lie referred to the Standing Committee. (0) AH other committees to be i-elieved from further duty. The Standing Committee, appointed in accordance witli tlie above resolution, consists of the follovriiig: Herbert Hoover, Cliairnian. E. M. Poston, Colnmlius, Ohio. Julius H. Barnes, DuUith, Minn. Miss Ida JI. Tarliell, Xew York, N. Y. Edward Eyre Hunt, Secretary. Ernest T. Trigg, Philadelphia, Pa. William JI. Butler, Boston, :\(ass. Miss .Mary Van Kleeclv. New York, X. Y. Edgar E. Clark, Washington. 1). C. Matthew Woll, \\'ashington, D. <' Joseph H.' I)efrees. ('hlcago. 111. Col. Arthur Woods, New York, N. Y. Mortimer Pleishhacker, San Franuildings and public ^-orks cf)vered by existing appropriations. 10. A congressional api)ropriation for roads, together with State appropriation amounting to many tens of millions ai dollars already made in expectation of and dependence on Federal aid, would make available a large amount of employment. The Conference under existing circumstances, notwithstanding \-arious opinions as to the character of the legislation and the neces- THE president's CONFERENCE ON "UNEMPLOYMENT. 21 sity for economy, recommends congressional action at the present session in order that Avork may go forward. 11. The greatest area for immediate relief of unemployment is in the construction industry, which has been artificially restricted dur- ing and since the war. We are short more than a million homes; all kinds of building and construction are far behind national necessity. The Senate Committee on Eeconstruction and Production, in March of this year, estimated the total construction shortage in the country at betAveen 10 and 20 billion dollars. Considering all branches of the construction industries more than 2 million people could be emploj^ed if construction were resumed. Undue cost and malignant combinations have made proper expansion impossible and contributed largely to this unemployment situation. In some places these matters have been cleaned up. In other places they have not and are an affront to public decency. In some places these things have not existed. In others, costs have been adjusted. Some ma- terials have been reduced in prices as much as can be expected. Where conditions have been righted, construction should proceed, but there is still a need of community action in provision of capital on terms that will encourage home building. Where the costs are still above the other economic levels of the community there should be searching inquiry and action in the situation. We recommend that the Governors summon representative committees, with the coopera- tion of the Mayors or otherwise as they may determine, to (a) deter- mine facts; and (&) to organize community action in securing ad- justments in cost, including removal of freight discriminations, and clean-out camj^aigns against combinations, restrictions of effort, and unsound practices where they exist, to the end that building may be fully resumed. 12. Manufacturers can contribute to relieve the present acirce vm- employment situation by — (a) Part-time work, through reduced time or rotation of jobs. (6) As far as possible, manufacturing for stock. (c) Taking advantage of the present opportunity to do as much plant construction, repairs, and cleaning up as is possible, with the consequent transfer of many employees to other than their regular work. {d) Eeduction of the number of hours of labor per day. (e) The reduction of the work week to a lower numljer of days dur- ing the present period of industrial depression. (/) That employees and employers cooperate in putting these recommendations into effect. A large number of employers have already, in whole or in part, inaugurated the recommendations herein set forth, and for this they are to be commended, and it is earnestly urged upon those employers 22 THE PEESIDE:ntt's CONFEBENt'E ON UNEMPLOYMENT. who have not done so to put same into use, wherever practicable, at the earliest possible opportunity. (,r/) Specific methods for solution of our economic problems will be effective only in so far as they are applied in a spirit of patriotic patience on the part of all our joeople. During the period of drastic economic readjustment, through which we are now passing, the continued efforts of anyone to profit beyond the requirements of safe business practice or economic con- sistency should be condemned. One of the important obstacles to a resumption of normal business activity will be removed as prices reach replacement values in terms of efficient producing and dis- tributing cost plus reasonable profit. We. therefore, strongly urge all manufacturers and wholesalers who may not j&t have adopted this policy to do so, but it is essential to the success of these measures when put into effect that retail prices shall promptly and fairly i-eflect the price adjustment of the pro- ducer, manufacturer, and the wholesaler. When these principles have been recognized and the recommenda- tions complied with, we are confident that the public will increase their purchases, thereby increasing the operations of the mills, fac- tories, and transportation companies, and consequently reducing the number of unemployed. APPENDIX B.— GENERAL RECOMMENDATIONS OF, THE CONFERENCE FOR MEASURES FOR PERMANENT RE- COVERY OF EMPLOYMENT. [Adopted on Oct. 11, 1921.] OCTOBEE 11, 1921. Rerovery of our industry and employment must necessarily be a ])rocess of gradual healing of the great economic wounds of the World War. This healing is making distinct progress. Without attempting the impossible task of assessing the relative weight of different forces, the Conference presents the following summary of the more important matters that require constructive and immediate settlement if recovery in business and permanent em- ployment are to be more expeditiously accomplished : 1. Readjustment of railway rates to a fairer basis of the relative value of commodities, with special consideration of the rates upon primary commodities, at the same time safeguarding the financial staljility of the railways. 2. Speedy completion of the tax bill with its contemplated reduc- tion of taxes, in order that business now held back pending definite determination may proceed. 3. Definite settlement of tariff legislation in order that business may determine its future conduct and policies. THE PEESlDEIv^T S OOXEERENCE OK TNE-MPLOYMENT. 23 4. Settlement of the financial relationships between the Govern- ment and the railways, having in mind the immediate necessity for increased maintenance and betterments, making effective increased railway employment and stimulation of general employment, in order that the railways may be prepared for enlarged business as it comes. 5. Limitation of world armament and consequent increase of tran- quillity and further decrease of the tax burden not only of the Ignited States but of other countiies. 6. Steps looking to the minimizing of fluctuations in exchange, be- cause recovery from the great ^Inmp in exports (due to the economic situation in Europe) can not make substantial prt)gress so long as extravagant daily fluctuations continue in foreign exchange, for no merchant can determine the delivery cost of any international ship- ment. 7. Definite programs of action that will lead to elimination of waste and more regular employment in seasonal and intermittent in- dustries, notably in the coal industry, in order that the drain upon capital maj' be lessened and the annual income of workers may be in- creased. S. In the field of all the different industries and occupations the rapidity of recovery will dex^end greatly upon the speed of propor- tionate adjustment of the inecjualities in deflation. A table is at- tached hereto, drawn from various sources, showing the percentage of present levels above the levels of the same commodities and serv- ices of the prewar period. It will be observed that agriculture has reached an unduly low plane, while transportation, coal, and some branches of the construction industries are of the highest. It will also be observed that there is an entire disproportion between the price of the primarj- commodities and the ultimate retail price. These disproportionate increases in the progressive stages of dis- tribution are due to increased costs of transportation, enlarged prof- its, interest, taxes, labor, and other charges. If the buying power of the different elements of the community is to be restored, then these leA'els must reach nearer a relative plane. For example, the farmer can not resume his full consuming power and thus give increased employment to the other industries until either his prices increase or until more of the other products and services come into fair balance with his commodities, and therefore the reach of his income. APPROXIMATE INDEX NUMBERS BASED UPON 100 FOR 1913. [August. 1021.] Cost of living : Department of Lalior (ihiy, 1921, survey) 180 Xatioual Industrial Conference I'.oard IB-'') Average price to producer, fai'iii crops 100 24 THE PEESIDEXX's COXFEKENC'E O^ 1-XEMPLOYMENT. Averatrt' price to pnidiu-ci-. live stoeiv , -| ?;<> Average wliolesale nrlee, todils Average retail price, tooil-^ - -"^ AVIieat anrl tlniir : Wiieat average tci producer 128 Flour, wliolesale, Uuitea States average 173 Bread, retail, Uuited States, average 173 Freight rate, Hour, Miuueapolis to Xew York, domestic 187 Li\e stock and meats: Pork- Hogs to producer IIC' \\'liolesale liani at Chicago 166 Itetail ham 197 Wholesale hacou, rough side 102 Retail sliced hacou 162 Wholesale short side 108 Wholesale pork chops 184 Retail pork cliops 181 Retail lard 115 Beef— ( 'attle, a\erage to producer 91 Wholesale carcass heef at Chicago 121 Retail, sirloin steak 157 Retail, round 160 Retail, rih roast 147 Retail, chuck roast 130 RetaU, plate heef 112 \^'ages in meat i)acking (Department of Labor investigation) 186 Freight rates, dressed beef, Chicago to New York 214 H.dcs and leathers : Hides, green salted. i)ackers, heavy native steers (<_'hicago) 76 Hides, calfskin No. 1, country, S to 15 pounds ((^'hicago) 86 Leather, sole, hemlock, middle Ni>. 1 (Boston) 120 Leather, chrome, calf, dull or bright, " B " grades (Boston) 195 Wholesale boots and shoes, mens vici calf, bludier-Campella (Brock- ton ) 225 I''re'glit rate, slioes, T^yiin, Mass., to ( 'hieago 210 Wa;;(' sc.Ues in shoe industry ( ;\lassailiusetts) , ahoiit 200 Cotton : To producer 1(15 Yarns, cai'ded. white. Noi'thern nude, siiini, 22 cones (Boston) 107 Whcilesale sheeting, hvown 4/4 ware, shoals L. L. (New York) 118 Whcih'sale prinldoth 27 inches. (;4 liy 60, 7.00 yards to pound (Bcjs- ton 1 137 Wool : To producer 92 Wholesale worsted yarns 2/o2, crossbred stock white in skein (Phila- delphia) 148 Wholesale women's dress goods, storm serge, all wool, double warp, •50 inches (New Y'ork) I57 Wholesale suitings, wool-dyed blue, .1.V56, 16 ounces, Middlesex (Bos- to'" 183 Freight rate, clothing. New York to (.'hieago 210 Wage scale in mills, about 200 THE president's CONFERENCE ON "UNEMPLOYMENT. 25 Building- and construction : Prices — Lumber, avera.w soutliern pine and Douglas fir (at the mill) 128 Brick, average common. New York and Chicago 199 Cement, Portland, net, without bags to trade f. o. b. plank (Buf- tington, Ind.) 175 Freight rates — Brick, common, Brazil, Ind., to Cleveland, Ohio 204 Cement, Universal, Pa., to New Y'ork 179 Building labor : Union scale, simple average, 15 occupations 190 Union scale, weighted average, S occupations, frame houses (3) 197 Union scale, weighted average, S occupations, brick houses (3) 193 Common labor 130 Construction costs: Cement liuildings (Aberthaw Construction Co.) 161 Coal: Price, bituminous, Pittsburgh 186 Price, anthracite. New York tidewater 198 Union wages scales, aliout i 173 Nonunion scale, about 136 Freight rates 1S7-209 Metal trades, union wage scale: Simple average, 19 occupations 218 Metals : Prices — Pig iron, foundry No. 2 Northern (Pittsburgh) 137 Pig iron, Bessemer 128 Steel billets, Bessemer (Pittsburgh) 115 Copper ingots electrolytic, early delivery. New I'ork 75 Lead, i)ig, desilverized, for early delivery, New Y'ork 100 Zinc, pig (spelter). Western, early delivery. New York 80 Day labor, scale United States Steel Corporation 150 , Printing and publishing : Book and job. union wage scale IS-* Newspaper, union wage scale 1"|7 Railroad, average receipts per ton-mile 377 ■ Bureau Railway Economies estimate of railway wages liased on average annual compensation, third quarter -26 „ General estimate all union wage scales, by Prof. Wolman 189 Note. — The wage indexes refer mostly, to wage scales, not the earnings which necessarily alsfi depend upon regularity of employment. APPENDIX C— PRESIDENT HARDING'S ADDRESS OF WELCOME, SEPTEMBER 26, 1921. Ladies and gentlemen of the Conference, it is a pleasure to ex- :■• press to you in advance of your labors the gratitude of the Govern- ment for your service to the Xation. Perhaps it is not too much to ■' say a service for the world. Not so very long since I was receiving ,. the call 01 a distinguished foreigner, and in the course of our con- versation he alluded to the Conference which is met this morning and N said : " Mr. President : Our people are deeply interested in the 3' American Conference on Unemployment, because our problem is akm 26 THE PKESIDE^v^t's CONEEKENCE on UNEMPL0Y]\[ENT. to your oAvn, and ^our relief in tlie United States will be an added signal of hope from America to u^ and other peoples who are like depressed." That remark of a distinguished foreigner emphasized our re- sponsibility. If it be true that no citizen is without example to some one among his fellows, which I believe to be everlastingly true, then nations, great and small, are influencing others in all they do. You are invited together to consider a condition which is in no wise peculiar to the United States. The industrial depression which we are feeling is a war inheritance throughout the world. We saw humanity stressed in that production which is impelled by nations desperate in self-preservation. We saw the industrial call to arms which marshaled the family as well as the accustomed bread winners, and we saw the spiritual, 'mental, and physical might of the people cast in the scales measuring the might of the Republic. From such a test there is ine\-itable reaction. To such heights there is neces- sary ascent and inescapable descent. With the world involved there is no escape for any of the world from the valleys of depression. Though we suffered less than many of those with whom we were as- sociated, and less than any of those against whom we contended, it was inevitable that we should experience the l;ever's aftermath, and come to know depression before we could become normal again. Liquidation, reorganization, readjustment, reestablishment, taking account of things done, and the sober contemplation of things to be done, the finding of firm ground and the open, sure, and onward way — all these are a part of the inev'itable, and he who thinks they might have been avoided by this ])lan or that, or this policy or that, or this international relationship or that, only hugs a delusion when reason is needed for a safe council. Even though the world's storehouses were depleted, at the same time the finance^ were unbalanced, and none was ready to store a war crop for the more deliberate consumption of peace. Momen- tarily there M-as elation, liut it was not the glow of abiding health. We nnstook elation for restoration : to-day we are met in realization. You have been sununoned to counsel ail America, to apply your knowledge and your experience in relieving a condition which con- cerns all America. Specifically, y„u are to deal Avith unemployment, to suggest the way of repairing arterial circulation which is the very lifeblood of the re])ublic. There is always unemployment. Under most fortunate conditions, I am told, there are a million and a half in the United States who are not at work. The figures are astounding only because we are a hundred millions, and this parasitic percentage is always with us. But there is excessive unemployment to-day, and Ave are concerned not alone about its diminution but we are frankly anxious, under THE president's C'ONFEKEXCE ON UNEMPLOYMENT. 27 the involved conditions, \iiht it grow worse, with hardships of the winter season soon to be met. I do not venture to quote the statisticians, whetlier the maximum figures are accurate or the mininuim more depcndahle. Owing to the far swing from intensive endeavor and the eii'ort to get down to solid foundations, coupled with the ditliculty of readjusting expenditure- public, corporate, and individual from abnormal to normal— the problem of unemployment is the most ditlicult with which we are confronted. But there are no problems atlei'ting our national life and the wel- fare of the American people which we can not and will not solve. If we fail to-day we will try again to-morrow. There has been vast unemployment before and will be again. There will be depression after inflation, just as surely as the tides ebb and flow, but we can mitigate, we can shorten duration, we can commit all America to relief. And all America has never failed Avhen committed to a common cause. If, out of your coimcils. there comes a remedy which all America helpfully may apply to-day, it may be helpfully em- ployed some time again when similar conditions are encountered. It is fair to say that you are not asked to solve the long-contro- verted problems of our social system. We have builded the America of to-day on the fundamentals of economic, industrial, and political life which made us what we are. and the temple requires no remaking now. We are incontestably sound. We are constitutionally strong. We are merely depressed after the fever, and we want to know the way to speediest and dei^endable convalescence. When we know the way, everybody in America, capital and labor, employer and em- ploj^ee, captains of industry and the privates in the trenches, will go over the top in the advance drive of peace. Frankl^^ it is difficult to know vs'hether we have reached that bedrock to which reaction runs before the upward course begins, but here are representatives of the forces which make for all we are or ever can be, and your soundings ought to be reliable. I would have little enthusiasm for any proposed relief which seeks either palliation or tonic from the public treasury. The excess of stimulation from that source is to be reckoned a cause of trouble rather than a source of cure. We should achieve but little in a remedial way if we continued to excite a contributing cause. It is not my thought to suggest your lines of conference. Mr. Hoover, the Secretary of Commerce, to whom has been committed the arrangements for this imiDortant meeting, Avill present the agenda. I have wished to say to you that the people of the United States are very deeply interested, not alone the unemployed, but all who are concerned for our common weal, and the world is looking on to find helpfulness in our American exam]3le. Fundamentally sound, finan- 28 THE pkesident's conference on unemployment. cially strong, industrially unimpaired, commercially consistent, and politically unafraid, there ought to be work for everybody in the United States who chooses to work, and our condition at home and our place in the world depend on everybody going to work and pursuing it with that patriotism and devotion which make for a fortunate and happy people. APPENDIX D.— SECRETARY HOOVER'S ADDRESS, SEP- TEMBER 26, 1921. In calling this Conference, the President has hoped to mobilize the sense of service in our people to the solution of a problem that not only commands our sympathies but is of primary necessity to public welfare. Obviously our unemployment arises from the aftermath of the great World "War. We have been plunged into a period of violent readjustment and one of the bitter fruits of this readjustment is large unemployment. This period of depression and its accompany- ing unemployment have been continuous since the fall of last year,, but our working population was able to carry over during the past winter ujDon its savings. There can be no question that we are on the upgrade, but economic progress can not under any expectation come with sufficient rapidity to prevent much unemployment over- the forthcoming winter. Great numbers will have exhausted their savings and must be subjects of great concern to the entire public. There is no economic failure so terrible in its import as that of a country possessing a surplus of every ne-essity of life in which num- bers, willing and anxious to work, are deprived of these necessities. - It simply can not be if our moral and economic system is to survive. It is the duty of this Conference to find definite and organized remedy for this emergency and I hope also that you may be able' to outline for i)ublic consideration such plans as will in the long view tend to mitigate its recurrence. The questions before the Conference appear to me to lie in several broad phases. First, no prol)lem can be adequately approached for solution without a knowledge of the facts ; that is, we need first a determination of the volume and distribution of unemployment. Any proposal of amelioration must depend upon the weight of the burden we must carry. We need a determination of what emergency measures should be undertaken to provide employment and to mitigate the suffering that may arise during the next winter, and the method of organization for their application. We need a consideration and a statement of what measures must be taken to restore our commerce and employment to normal, or to' THE PEESIDENT's CONFERENCE ON UNEMPLOYMENT. 29 put it in another way, what obstacles need to be removed to promote business recovery — the only real and lasting remedy for unemploy- ment is employment. It seems to me we can on this occasion well give consideration to and expression of the measures that would tend to prevent the acute reactions of economic tides in the future. A crystallization of much valuable public thought on this matter would have lasting value in •education of our people. The remedies for these matters must in the largest degree lie out- side of the range of legislation. It is not consonant with the spirit or institutions of the American people that a demand should be made upon the public treasury for the solution of every difficulty. The Administration has felt that a large degree of solution could be expected through the mobilization of the fine cooperative action ■of our manufacturers and employers, of our ]niblic bodies and local authorities, and that if solution could be found in these directions we should have accomplished even more than the care of our unem- ployed, that we will have again demonstrated that independence and ability of action amongst our own people that saves our Government from that ultimate paternalism that will undermine our whole politi- cal sj'stem. In the other countries that have been primarily' affected by the War, solution has been had by direct doles to individuals by their Governments. AVe have so far escaped this most vicious of solutions, and I am hopeful, and I believe you will be, that it is within the in- telligence and initiative of our peojjle that we may find remedies against hardship and bitterness that do not, except in exceptional cases, come Avithin the range of charity. What our people wish is the opportunity to earn their daily l)read, and surely in a countr)' with its warehouses bursting with sur^Dlusses of food, of clothing, with its mines capable of indefinite production of fuel, with sufficient housing for comfort and health, we possess the intelligence to find solution. Without it our whole system is open to serious charges of failure. I have no desire to anticiiDate the results of the Conference. It is my belief that in the intelligence and influence which you com- mand, we shall be able to lay out a program by which, in great measure, these things can be accomplished. It is neither the desire nor in tJie power of the Federal Government to enforce such pro- grams. It is, however, the duty of the Federal Government to mobilize the intelligence of the country, that the entire comnuuiity may be instructed as to the part they may play in tlie effecting of such solutions. I Jiave no question in my own mind that if we can accomplisli this, our people will respond by that initiative and action that it has so finely demonstrated in every crisis. 30 THE PliESlKKXT S CON KEEK NCE ON UNEMPL()Y^[E:s T. Thoso economic movements which have presently reached the jihase of unemiDloyme})t, the exact measure of which is yet to be iletennined hy the facts, can be mo^t. Special surveys, such .s those made by the U. S. Employment Service m January and agahi in September, 1921, are unsatistactory for several reasons: (1) By virtue of their very character they can not be carried on at monthly intervals, whereas thei-e is need for a montlilv measurement of the state of employment; (2) they take no account of that unemplovment that takes the form of part-time em- ployment, a form that is important in every depression and m every slack season and is l.)eing more and more extensively adopted as a policy at such times ; (3) inspection of the returns reveals a large amount of reporting over the telephone and, as evidenced m the re- porting of round numbers, in some cases of very round numbers, .of reporthig from vague and unverified memory, so that the results are open to the suspicion that they contain a large element of impres- sionism. Unemployment indices based on a regularly monthly comparison of the number of employees and their earnings as shown by the pay rolls of identical establishments in a mailing list that is large enough and well enough distril>uted among the various industries, among large, small, and intermediate establishments, and geographically to constitute a fair sample, are more dependable and satisfactory. Even these statistics are gathered by only two or three States. The chief defects of existing indices, such as those published by the IT. S. Bu- reau of Labor Statistics and the Massachusetts and New York bu- reaus, are: 1. They are confined to manufacturing and mechanical industries. They should be extended to include all forms of transportation, trade, and mining and quarrying. 2. Tliey entirely ignore part-time employment. 3. They make no attempt at a statistical measurement of the changes in average wage and salary rates, and therefore aflford no sat- isfactory basis for statistically estimating the wage losses in cyclical and seasonal depressions, particularly where there is a change from one level to another. It appears that it is not practical in the immediate future to collect the data necessary to measure the degree of part-time employment or to measure the average wage and salary rates. The committee, there- fore, adopts two courses, viz : 1. It recommends the kind of statistical service that is immediately practicable. 2. It recommends for consideration a more extensive and complex statistical service that it considers to be highly desirable and the con- stitution of an Interdepartmental Committee to consider means of extending and improving employment statistics. 41 APPENDIXES H, I, J.— QUESTIONNAIRES RELATING TO UNEMPLOYMENT. APPENDIX H. This is a questionnaire form the purpose of wliich is to collect data on the basis of which the following important averages and indices can be directly computed : 1. The average daily attendance during one week out of each month. 2. The percentage or index of change in the number of employees on the pay rolls month by month. This can be shown {a) Inckistry by industry; (6) region by region; (t) for the Nation as a v.-hole. 3. The degree of part-time emploj'ment month by month of those who remain on pay rolls ; this can be shown industry by industry, etc. •4. The average rates of wages and salaries each month and the average weekly earnings of employees, also industrj' by industry, etc. 5. Such other data as may also be deemed useful for statistical purposes. The form shown is applicable to manufacturing plants. A suitable change of wording will adapt it to any class of industries. EEPOET OF NUMBER OF EMPLOYEES HOUES WOEKED AND EJIPI.OTEES' EARNINGS DURING THE PAYROLL ^VEEK ENDED 192__. Name of reporting establishment, Address, Kinds of products, How many hours constitute n full regular working week? hrs. How many employees worked a part or all of Monday? Friday? 1 Tuesday? Saturday? Wednesday? Sunday? Thursday? What was the total number of man-hours worked by all employees during this payroll week? What was the number of overtime man-hours worked by all employees during this payroll week? What was the total earnings paid to all employees for the work done by them during this week? $ What was the total overtime earnings paid to all employees for overtime work done by them during this week? $ How many direct workers worked a part or all of Monday? Friday? Tuesday? Saturday? Wednesday? Sunday? Thursday? What was the total number of man-hours worked by direct workers during this pay roll week? 42 THE PEKSIDBXt's C()XFE1!E2v<.'E on VXEMPLOYJtENT. What was tlie i.miiber of overtime mau-liours worked by direct worliiers during tliis payroll week? ' , ^ u What ^^as llie total earnings paid to direct workers for all work done by fliein during- this week? Wliat was the overtime earninss paid to direct workers for overtime work done by them during this week? Defiuilions and instructions. APPENDIX I. This ([uestionnaire and the accompanying summarj' report are designed, primarily, for the use of any business establishment in the collection and summarization of operating data for its own guidance. This is its chief and great value. It is not necessarily an instrument for the collection of statistics from such establish- ments by a governmental agency, although were such statistics gathered they would furnish the most complete data concerning the state of empioj^ment and also highly illuminating information con- cerning the effectiveness, the planning, and administration of indus- trial work. The idea of this questionnaire is this : Unemployment is not con- fined to those who are thrown off pay rolls in times of cj'clical and seasonal depressions and otherwise. Absenteeism represents another important kind of unemployment. However, even if there were no depressions, no discharges, and no absenteeism, even if every em- ployee were at his place of work every minute of everj' workday throughout the year, there will still be found a very considerable amount of unemployment of these employees during working hours. Sections of workers run out of work because of the failure of work to come through the preceding operation rapidly enough or because of the lack of some necessary materials; they are held idle while waiting for instructions ; they are interrupted by the breakage of all available tools, by belt failures, by the breakdown or maladjustment of machines, by the power going off, and so on and so on. All this idleness represents waste of productive capacity, waste of overhead expense, whether the affected workers are pieceworkers or time-workers. If they are pieceworkers their earnings are obviously affected. If they are time-workers their wages during such idle- ness represents additional money loss to the employers. How great all these losses are no one appreciates until he sets out to record and measure them. When this is done, most employers will be aston- ished at their aggregate extent. When the employer comes to know how frequent and how great such losses are, he will turn his atten- tion to devising means of eliminating them. Thus, the instruments here suggested are instruments which will stimulate the study of the planning and administration of industrial work and devices to im- prove these. THE PEESIDENT S GOXFEEENCE OX UXEMPLOYME^s^T. 43 i« UNEMPLOYMENT SCORE DATA SHEET. [Per T. W. Mitchell, Oct. 2, 1921.] Period covered, from to 192. . Name of concern : Address Kinds of products 1. How many hours constitute a full regular worMng week? hours. 2. How many persons were in your employ and how many employees actually worked apart or aV of Monday? . 1 Number in your employ f Xumbcr who worked^ Tuesdav? < \ I 1 Friday? 1 1 Saturday? ... 1 i Sunday? : A — Absenteeism? , - Note. — Thesedaysarenotallinthesamecalendarweekunlessyourpar-rollweekis the calendar week, -3. What was the tdtalnumber of man-hours worVed hy all eraployees during this period, A — in regular wording hours? hrs. B — in overtime? hrs. ■4. What was the total number of potential man-hours lost by your employees during this week in the fol- lowing forms? .hours (1) Sickness hours (2) Accidents " (31 Home conditions " (4) Alcoholics and drugs " (5) Weather conditions " (6) Personal business, including jury duty " (7) Recognized holidays " (8) Vacations, regular " (9) Tardiness " (10) Another-. B— Lay-offs? hours 1 — Due to orders? hrs. 2 — Due to lack of materials. ..hrs. -Inadequate volume? hours -La''kof3tandardization?.. " -Uneven flow of orders? ... " -All others? " -Broken promises of mfr. . .hours D — Transportation delays " c — Errors " d— Seasonal (as in canneries). " e— Market shortage hours f — Finance " g— .-Vllother " 3 — Due to uneven flow of work hours 4— Due to failure of belts hours 5 — Due to broken machines. hours 6 — Due to maladjustment of machines hours 7 — Due to preparation of machines hours 8 — Due to stock-taking of machines hours 9 — Due to disciplinary lay- offs hours -5. What was the total number of potential man-hours that were lost in A — Strikes? hours B— Stoppages of work? hours ^. What was the total num.ber of man-hours reported above as "worked" that were lost in the form of A— Waiting for work? hours (1) Due to bad planning? hours (2} Due to labor shortage? hours B — Waiting for tools? hours C — Waiting for instructions hours B— Labor policy (shop meetings, etc.) . . .hours E — Equipment conditions hours F— Another. (1) Belting (2) Broken parts (3) Poor adjustment (4) Power failures (5) Intro, of ma:liinery. (6) Fires (7) Another .hours APPENDIX J. Name of Concern. Address . UNEMPLOYMENT SCOHE C.*.RD. Dept. or Group. . Kind of business Period covered from to The figures given should (need not) be considered confidential. Note. — The purpose of this Unemployment Score is to develop a standardized instrument and a method for accurately measuring the degree of ''Unemployment -within Employment; " i. e., the percentage of the time a concern's employees should 44 THE president's CONEEEENCE ON UNEMPLOYMENT. be -working that is " wasted" through one cause or another. The items and percent- ages given are merely l:iy ■n'ay of ilhistration and suggestion. If you think the keeping of such a score would be valualjle, will you cooperate in its practical development by sending one copy, filled out for your company as far as available data ])ermit, together with suggestions for additions oir changes, to Morris L. Cooke, Chairman Taylor Soci- ety Committee on Research, 1109 Finance Bldg., Phila., Pa. 1. Inadequate volume (8%) PRODUC- TIVE TIJIE (64%) A. Orders (12%) B. Lack llateriala (8%) UNEM- PLOYED TIME (36%) Equipment (2%) E. Factory Administra- tion (8%) Lack Standardization -Vbsenteeism (6%) 4. . -'ill other Broken promise of mfr. Transportation delaj^s Errors Seasonal as with can- neries. Market Shortage Finance All other Sickness TOTALS 100 C (36%) 2. Accidents 3. Home Conditions 4. Recognized holidays 5. Liquor 6. Weather 7. Tardiness 8. Prsnl. bus. incl. jury duty 9. Vacations regular 10. 11. 12. All other 1. Belting 2. Broken Parts 3. Poor Adjustment 4. Power Failure 5. Intro, of Machines 6. Fires 7. 8. All other 1. Strks. & Ibr. stoppages 2. Lock-outs 3. Bad planning 4. Stocktaking 5. Disciplinary lay-offs 6. Labor policy 7. Sales— Factory mal- adjustment 8. Al)s. of Standard Times 9. Labor Shortage 10. All other 0-%) 3. Uneven flow of orders .... (0%) -- (3%) -- (2%) -- (1%) .. (3%) -■ (0%) (Cy clical ( Flue t u a- ( tions. (Seasonal (Fl uc tua ( tions. (Bad Sales- ( manship. Chargeable , to (Qua. (Purchasing ( Spec. Storekeeping ( Sch. ^ (Gang Boss. . (Draft ing ( Room. . . . (Foreman. . . (2%) (3%) (i%) (0%) (i%) (0%) (1%) (0%) (0%) (1%) (i%) (0%) (1%) (0%) (0%) (Colds. (Contagious.., (Chronic. . ..- (1%) (0 r d e r of work (O^r) (Routing (4%) (0%) {'(%) (1%) (2%) (3%) (i%) get- (Delay^ ( ting ( into work (Tools or jigs; ( not ready IHE PKBSIDENX'S CONFERENCE ON UNEMPLOYMENT. 45 «, EXTRACT FROM THE STENOGRAPHIC REPORT OF THE 2 CONFERENCE ON UNEMPLOYMENT, SESSION OF OCTO- h BER 13, 1921, RELATING TO UNEMPLOYMENT STA- ' TISTICS. || Mr. Defrees. This is a unanimous report of the Committee on t Unemployment Statistics, and I move its acceptance and adoption. '; The motion was duly seconded. The Chairman. (Mr. Hoover). The report of the committee is '- intended to be merely helpful in presenting methods of gathering information and to give more adequate support to the matter of unemployment statistics. I would, personally, like to see the com- . mittee inject one more idea into its report, and that is that the Department of Labor needs more financial support from Congress ." in order to enable it to do a service Avhich that Department so much - desires to execute. Mr. WoLL. If there be no objection, Mr. Chairman, I move that that suggestion be incorporated into the report. / The Chairman. (Mr. Hoover). If there be no objection, we will consider it incorporated in the report of the committee, that the Department needs more substantial financial support. They have been starved, indeed, in their efforts to do the work which they have undertaken. The pending motion was thereupon put and unanimously carried. PUBLIC HEARING ON UNEMPLOYMENT STATISTICS, SEPTEMBER 27, 1921. Mr. Robinson (presiding) called attention to the fact that there is no adequate machinery for getting definite statistics on the subject of unemployment. All available machinery' is being used, but there have been a great many loose statements regarding the extent of un- employment. The endeavor of the Committee on Unemployment Statistics is not to arrive at a definitely accurate figure, but to get sound information which can be used to determine an approximately accurate estimate. UNEMPLOYMENT IN MASSACHUSETTS. The first witness examined was Mr. Eoswell F. Phelps, Director of Statistics, Department of Labor and Statistics of the State of Massa- chusetts. Mr. Phelps stated that in his State an annual census has been taken each year for some 39 years of the manufacturing establishments, giving monthly information with reference to the number of people employed. Comparison between the present time and 1914, which 46 THE peesidext's coxfeeexce on uktemploymest. may be considered our last normal year, indicates that some industries are now actually employinp- more people than in 1914. This does not apply to all industries, nor does it apply to all industries taken to-- gether as an aguregate. but it does apply to certain leading industries of the State. Unemployment in large establishments is greater than in small establishments. Mr. Phelps further stated that distribution of the employed in Massachusetts at present varies from the distribution of normal times. People are still trying to maintain their positions in the new indus- tries they selected during the war. Unemployment is not altogether due to lack of work, but partly to lack of work at the wages which people insist on receiving. The Public Employment Office in Massa- chusetts is now receiving 13 applications for every position oifered,, as contrasted with the peak of oG applications to one position in May, One reason for this is that people now. after exhausting their re- sources, are willing to take a position, so that it is possible to fill more positions than in last May. The number of placements is rapidly increasing. In reply to a question from Mr. WoU, j\Ir. Phelps stated that wages in Boston range from 40 to 45 cents an hour for unskilled labor, as compared with GO to 65 cents during the war. He believed that un- employment in some measure is due to refusal to accept the low wages now offered. This does not applj^ to many of the unskilled men, some of whom are working; but a large number of the working population have not yet reached the point where they are compelled to accept the class of work they do not desire. A sj^ecial sui'vey, made last December bj' Mr. Phelps's department, at the re(iuest of the Governor of Massachusetts, disclosed that 36 per cent of the employees in the textile industry were out of work for full time. Large numbers also worked part time, so that the total time worked liy employees in 130 establishments was 57.5 per cent, the aggregate full-time employment during the week of maximum employment in Decemlaer, 1920. The same investigation showed 41 per cent unemployed in the boot and shoe industry, 18.5 per cent in the metal industry. 4'^.s per cent in the leather industry. According to some recent sui'veys. present conditions are far better. Aside from the metal trades, no other industry now has more than 25 to 30 per cent of unemployment. A large number of textile factories are working nights. Boot and shoe factories are increasing their forces and also the number of hours of operation per week. Conditions were worse in May than in December, but are now improving. In reply to questions from Mr. Young and Mr. Doten, Mr. Phelps further stated that his estimate of reduction in total employment in INIassachusetts since January, 1920, was between 20 and 25 per cent. THE PRESIDENT'S COXFEREXCE ON ITNEMPLOYJLENT. 47 t The statistical service of Mr. Phelps's office does not. however, in- i elude Avholesale and retail trades. t In reply to further questions, Mr. Phelps stated that following the a depression of 1908 his bureau commenced obtaining unemplo3'ment I. statistics from secretaries of trades' unions, until now 75 per cent of the total organized labor of the State is covered bj' these returns, *' which Mr. Phelps believed to be accurate as a general index of con- :; ditions and which have been found to agree substantially with some ii statistics received from employers. On the basis of these returns the V situation to-day is similar to 1914—15 ; the trend of the curve is - almost identical. MEMBERS or ECONOMIC ADVISORY COMjriTTEE. William S. Eossitev, Cliuiriiian. Clyde L. King. .Tobn B. Andrews. Sum A. I.ewisolin. George E. Barnett. Saimiel MeCune Lindsay. Ernest S. Bradford. Wesley 0. Mitchell. Bailey P., Burritt. Henry It. Seager. Heui-y S. Dennison. Edwin K. A. Selisman. Davis R. Dewey. Walter F. Willcox. •"'arroU W. Doten. Leo Wolman. Edwin F. Gay. Allyn A. Young. EXCERPTS FROM REPORT OF THE ECONOMIC ADVISORY COMMITTEE RELATIVE TO UNEMPLOYMENT STATIS- TICS, SEPTEMBER 26, 1921. [As submitted to the Committee on Unemployment Statistics.] I. SUMMARY OF RESULTS. 1. The best available evidence indicates that the immber of persons out of work in the United States in the early part of September, 1921, exclusive of those on farms, was possibly as large as ;^.."')0n.()00. al- though more probabh^ somewhat less than that number. In weigh- ing the significance of these figures it shotdd be remembered that in some trades work is normally slack at this season of tlie year, and that even in the busiest seasons of prosperous years some work- ers do not have constant employment. The bulk of the present vol- ume of unemployment, however, is directly attribiital_)le to industrial depression. 2. This estimate does not take account of the extent to which in many industries full-time employment has been replaced by part- time unemployment, with an accompanying reduction of family in- comes. On the other hand, the estimate does not take into account the extent to which some of the unemployed can draw upon accumu- lated savings or rely upon other means of support. 3. We estimate that in manufacturing and mechanical pursuits (including the building trades), mining, and railroad transporta- 48 THE PKESlDEiSTT 'S CO^'EEKENtlE ON USEMPLOYMENT. tion, the number of names on 23aY rolls decreased between January, 1920, and September, 1921, as follows : Manufacturing and mechanical pursuits (including tlie building trades) Mining Railroad transportation Employed January, 1920. 12,000,000 1,090,000 2,100,000 Employed Sept. 1, 1921. 9,250,000 860,000 1, 655, 000 Per cent decrease. i. It is impossible to predict the extent to which unemployment will increase or decrease during the coming winter. The effects of the jDossible improvement in business conditions may be offset in whole or in jDart by the normal increase of seasonal unemployment in certain industries. By most indications, however, the situation promises to be even more serious than was encountered in the winter of 1907-8 or 1914—15. In short, unemployment now presents a problem of grave, although not necessarily of unmanageable, pro- portions. 11. THE NUMBER OF UNEMPLOYED IN AiMERICAN CITIES IN SEPTEMBER, 1921. THE CHARACTER OF THE INVESTIGATION AND THE MEANING OF ITS RESULTS. 1. THE METHOD OF THE INVESTIGATION. The figures used are the results of a special investigation into un- employment in 280 American cities in September, 1921, made by the Employment Service of the U. S. Department of Labor. In Janu- ary, 1921, a similar investigation was made covering 182 cities. We assume that the explanation made in the Industrial Employment Survey Bulletin for January, 1921, respecting the method of the earlier investigation and the meaning of the figures furnished also apjDlies to the more comprehensive investigation made in September. This explanation is as follows : The data herein offered have been collected by nine district directors of the service, one located in each of the nine geographical divisions of the country. These data have been based on the consensus of figures from neutral bodies, State labor departments, State commissioners of manufacture.., State and mu- nicipal employment services, workmen's compensation bureaus, employers' and employees organizations, and all other sources competent to furnish authori- taive information. Such information has been checked or conflnned by con- ultation with other authorities in order that judgment might be formed as to the accuracy Of figures. Every care has been exercised to minimize error or bias incident to a rapid survey. THE PRESIDENT'S CONFERENCE ON UNEMPLOYMENT. 49 2. THE TRUSTWORTHINESS OE TPIE DATA. ==^ An analysis shows that the figures both in the published bulletin P, for Januarj^ and the muiieographed sheets which report the results * of the September investigation contain minor errors,^ and in a few --^ cases the number reported is almost incredibly large in proportion to the population.^ Notwithstanding these defects, incidental to the speed with which an elaborate investigation was made in response to a special request, 'T- we believe that these data from the U. S. Employment Service afford fe the best available basis for estimating the number of persons out of '"'■ work in American cities and towns in September, 1921. GENERAL RESULTS DERIVED FROM THE INVESTIGATION. 1. THE NUMBER OF UNEJIPLOTEl). The total number of the unemployed in September, 1!)21, in the 280 cities from which reports were secured is 2,301,588. The distri- bution of the unemployed by geographical sections is as follows ; District. Population ol cities covered (1920). Number reported imcm- ployed. 288, 789 974, 695 588, 158 138, 340 114,417 65 645 Per cent of popu- lation unem- ployed. New England .... 3,900,366 11,728,637 8, 198, 971 2,981,322 2, 897, 408 1,115,826 7 4 8.3 East North Central States 6.9 West North Central States . . . 4.6 3.9 East South Central States. . . . .. 5.9 West South Central States 1, 389, 702 52' 573 3.8 Moiuitain States . 755,427 2,463,519 27,254 71,717 3.6 Pacinc States 2.9 Total .. 35,431,178 2,301,588 6.6 ^ For example. In September, Chicopee, Mass., is omitted from the list of cities ; but recomputation shows that its population and its number ol unemployed are included la the totals. There are some small errors in the population ascribed to towns or districts. So far as they have been detected these have been corrected. - For example, 1,595 persons are reported as unemployed in Springfield, ^'t.. and l-,748 in Rock Island, 111. These numbers are, respectively, SO. 4 per cent of the total population (5,283) of Springfield in 1920 and 36.2 per cent of the total population (35,177) of Rock Island in the same year. We have no statistics of tbe number of persons having gainful occupations in either Springfield or Rock Island, but the census figures show that in such Industrial centers as Birmingham, Bridgeport, Hartford, Wilmington, Fall River, Lowell, and Worcester, the total number of persons having gainful occupations — including all persons working on their own account — runs between 44 per cent and 48 per cent of the total population. It is improbable that the unemployed should exceed 30 per cent of the population even In extreme cases. 76290—21 4 50 THE PEESIDEXt's c'( )XEEKEXfK OX UNEMPLOY JH'-X i. 2. THE DISTEIIUTTIOX "F THE TjXEMPIJ)TED EX I>;j,T .-'liaES. . forallin- ployed. ,,„„ri,.s. I Number uiiem- Foo.l and kindreri prniliK'!^.. . Textilos and their pro IncN . . . Iron and steel and Iheir prod- ticts Ltimber and its manufaeUires Leather and its finished prod- ucts Paper and printing Buiidins trades Chemicals and allied products. 4S,042 198,374 503,0fil 65,600 43,041 46, 370 244,775 49,080 2.1 ,8.0 21.9 2.9 1.9 2.(1 10. (i 2.1 Stone, clav, and Riass products Metals and metal products other than iron and steel Tol lacco prodncls Vehicles and land transporta- tion Eaiiroad repair shops Miscellaneous industries Number unem- ployed. 3S, 649 134,271 18, 894 57,441 85, 471 768, 513 Total 12,301,588 Per ceil ■ of total foralliu dustrie; 33.1 100.1 3. THE INCREASE IN THE NUMEEFuS OF THE UNEJIPLOYED SINCE JANUARY. For 173 cities the number unemployed is reported for both Janu- ary and September, 1921. The population of these 173 cities in 1920 was 32,4:03,607. The numbers unemployed according to the two in- vestigations and tlie per cents these numbers make of the total popu- lation are as follows : Number tuiem- ployed. January , 1921 1, 776, 930 September. 1921 2, 117, 0,^2 Increase 340, 722 Per cent ol population (1920). 5.i 6.i Unless the reports of the number unemployed in September were considerably more complete than the January reports a good deal of weight may be attached to one important inference from these figures, namely, that between January and September the number of unemployed in the 173 cities increased by 19 per cent. 4. THE INCREASE OF THE NUMBERS OF THE UNEIIPI^IYED BY GEOGRAPHICAL DISTRICTS. Cities, covered hi/ both invcslii/atioits. Unemployed. New England Middle At Untie East North Central., Wcvt N,)rthC.-ntral. South .Vtlintic Kast South Central. West South Qjiitral. Mount tin PaciQc Xnm- Population ber. (1920). 890 637 478 932 243 553 828 22 , 7,W,427 16 I 2,463,519 Total. 3,319,: 11,728, ( 7,616, 2,. 32, 1,775;: 1,072,; 1,345, 173 t 32,403,607 .September. 246,512 974,695 517,049 111,025 56,580 63,995 48, 825 27, 254 71,717 2,117,652 January. 238, 156 577,743 587, 893 136,197 77,392 41,335 31,600 23,714 62, 900 1,776,930 Per cent unemployed. Sep- tember, 7.4 8.3 6.8 4.8 3.2 6.0 3.6 3.6 2.9 Jan- uary. 7.; 5.! 3,i 2,; 3.1 2,1 XHE PRESIDENT'S GONFEEEKCE OX ITJsteaIPLOY.MKNT. 51 5. AN ESTIMATE OE THE TOTAL NUMBER OF UNEMPLOYED TEKSDNS IN THE CITIES AND TOWNS OF THE UNITED STATES, SEETEMBEK, l;ii:l. Before drawing larger inferences from the results of the special investigation made by the U. S. Employment Service the degree in which the data are representative of conditions in the cities and towns of the country as a whole must be considered. Is the popula- tion covered by the reports so distributed as to give undue weight to districts in which unemploj^ment is greater than in the coimtry as a whole? An answer to this question is accorded by the following table, in which the geographical distribution of the urban population of the United States — that is, the population residing in places hav- ing 2,500 inhabitants or more — is compared with the distribution of the population of the cities and towns for which the nuinl)cr of un- employed persons is reported : ■ Per cent of urban D-tnol. |PX"oT United States. Per cent of popu- lation covered by in- vestiga- tion. Per cent unem- ployed. District. Per cent ofui'ban popula- tion of United States. Per ceni of popn- lalion covered by in- vestiga- tion. Per cent unem- ployed. 11 1 11 7.4 8.3 6.9 4.6 3.9 5.9 WestSouthCentral. .. Mountain 5 2 6 4 2 7 3.8 Middle Atlantic . . 31 1 33 24 1 23 9 1 S 8 ' S 3.6 East North Central . . . Pacific 2.9 West North Central... South Atlantic Total . . 100 100 6.5 East South Central i 3 A comparison of the first two columns of the table shows that the population from which the reports of persons unemployed are drawn is geographically a very good sample of the urban population of the country. For this reason the wide variation of the per cents shown in the third column does not stand in the way of using these results as the basis of an estimate of the total number of unemployed in the cities and towns of the country. But another difficulty remains. The reports come from " indus- trial towns." Unemployment is unquestionably slighter in the rural communities than in the cities and probably less serious in commer- cial than in industrial communities. If unemployed persons are 6.5 per cent of the population of the 280 selected cities covered by the investigation, less than 6.5 per cent of the total population of the cities and towns of the country must be unemployed. Just how much less is uncertain, but upper and lower limits to such an esti- mate may be set down with a fair degree of confidence. The follow- ing estimate falls within these upper and lower limits : 52 THF PRESIPEXt's rOXFEEENCE ON UNEMPLOYMENT. Place of 2,500 and over Incorporated places ol'less tliaii :: Assumed percentage ratio of un- emploj'ed to popu- lation. 6.0 2.5 Popula- tion, 1920. Total. 54, 304, fi03 8,969,241 Estimated number of imem- ploj'ed September, 1921. 3,258,000 242,000 3,500,000 Tlie nssumptions involved in this estimate are made clearer by put- tino- it in the follovi'ing form, which involves only a negligible eh;!T)i;(> in tlie net result : Places covered by report = the estimate we htxA'e based on the special investigation of tlie U. 8. J>a Employment SerA'ice regardino- the nnmber of persons unemployed 'te in September, 1921. The available data, however, cover unem- -~ ployment only in the fields of manufacturing and mechanical pur- . suits (including the building trades), mining, and transportation. -C In estimating the relative change in employment in manufactur- ^ ing and mechanical pursuits between January, 1920, and the late !,. summer of 1921 we have relied mainly upon three well-established ,,: statistical series. Two of these indicate the number of employed in successsive months in manufacturing and other establishments. One ^ of these two, running back to 1915, is compiled by the U. S. Bureau V of Labor Statistics, the other, which begins with 1914, by the New - York State Industrial Commission. Fortunately, these two scries are in large measure independent, for although establishments in the State of New York are, as a matter of course, covered by the U. S. Bureau of Labor Statistics series, the employees in such estab- lishment constitute only about 12 per cent of the total number of — employees in all the establishments covered by the series. _ The third series, compiled by the Massachusetts Bureau of Statis- .-- tics, is of a different nature. It shows the per cents unemployed .. in the membership of Massachusetts trade-unions as reported at ,- the end of each quarter by union secretaries. It is quite possible __ that these trade-union reports do not accurately represent the degree of severity of unemployment in the State at any one time. But . analysis shows that the relative changes in the per cents re])orted unemployed are fairly trustworthy indications of the fluctuations of unemployment. Throughout the period which they cover the three indices which '., we have selected are in substantial agreement one with another, and they also move consistently with respect to standard indices of business conditions, such as pig-iron production, the volume of bank clearings outside of New York City, etc.^ 2. AN ESTIMATE OF THE RELATIVE REDTTCTIOX OE INDUSTRIAL UNEJIPLOT- l'' MENT SINCE JANUARY, 192 0. 1. The index of factory employment in the State of New York dropped from its peak of 123 for January, 1920, to 88.5 in July, 1921, a drop of 34.5 points, or of 28 per cent. ' 2. The employment index of the U. S. Bureau of Labor Statistics dropped from 106 in January, 1920, to 82 in July, 1921, a drop of 24 points, or of about 23 per cent. (j: ' Here, as at other points, we have relied upon the unpublished results of investigations made by W. A. Berrldge for the Harvard University Committee on Economic Research. 54 THE PRESIDEKT's fONFEKEXCE ON UNEMPLOYMENT. 3. Ill .Alassacluisetts the per cent reported unemployed (for causes other than labor disputes and disal.nlity) was 4.1 on December 31, 1910. A year later the corresponding per cent was 29.9, an increase of L'5.8 points. These hgures indicate that the per cent of union membership employed was approximately 96 on December 31, 1919, and TO a year later, a drop of ^« points, or of about 2T per cent. During the tirst half of 1921. howeAcr, the situation in Massachusetts, as indicated by the actual per cents unemployed, improved. But the ^lassachusetts ligures. to a much larger extent that the two other indices, are subject to seasonal fluctuations. To afford a fair comparison with these other series, the effect of these seasonal fluc- tuations should l)e eliminated. Applying correcting factors derived from the analysis of the Alassachusetts returns from 1908 to 1919, it appears that at the end of June. 1921, unemplojmient chargeable to industrial depression was larger by about 4 per cent than in the preceding December. That indicates a drop in employment of about 31 per cent be- tween the beginning of 1920 and the middle of 1921. When dif- ferences in the weighting of the industries represented in the re- turns are taken into account, this result appears to be in substantial agreement with the index of employment in the State of New York. 4. Another important series — the industrial emploj^ment survey of the U. S. Employment Service — gives results that differ rather widely from tliose indicated 1>y the other series. For the year 1920 it shows a drop in employment of 37 per cent, and a further drop of 7 per cent is .shown in the ensuing six months. This survey was not begun until December, 1920, although figures were secured for the preceding January. Its scope is such as to suggest that it may in time come to be tlie ni J ^ii^xM^jc. ON UNEMPLOYMENT. 63 as to make bread lines unnecessary. Each community slioukl re- member that hunger and want must be relieved, and it should always be prepared to take whatever measures may be needed to prevent human suffering. We suggest that each city avail itself of the experience of others. The methods of Detroit, Boston, Cleveland, Portland, Oreg., Seattle, Wash., Hartford, New Haven, Conn., Poughkeepsie, Schenectady, and Milwaukee have been brought to the attention of the Con- ference, and Ave are certain that the mayors of these and other cities will be glad to answer inquiries. REPORT OF THE EXECUTIVE SECRETARIES TO THE COM- MITTEES OF THE PRESIDENT'S CONFERENCE ON UN- EMPLOYMENT, OCTOBER 10, 1921. [Not acted upon by tbe Conference.] The predominant object of the Conference was to recommend and organize measures to meet the emergency situation during the win- ter. The preliminary recommendations and organization plans have had the following response in the seven days since their issue : First. Mayors' emergency committees have been created and are actively at work in 31 cities on the lines of the Conference plan of coordination of effort of all sections of the community, with more than a score of other cities reporting that organization is in progress. Second. Conferences have been held during the past week by the President, Secretary" Hoover, and members of the Conference with the heads of the great national industries, including the rail- ways, coal, and shipping, from which have resulted definite steps undertaking to meet the emergency in many practical directions. Third. The active participation of the great national commercial and employers' associations has been assured in definite organization of their branches throughout the country to assist the mayors and to meet the situation generally. The United States Chamber of Com- merce, the National ^lanufacturers' Association, various regional and State associations have actively entered into the problem of organization and provision of work for the unemployed and assist- ance to the State and municipal authorities. Fourth. A number of cities have undertaken steps for the im- mediate advancement of local public works and for definite advance- ment of construction work in the community. Steps organized in this direction have been formally reported from eight cities. Fifth. An office has been set up and is at -work in Washington, under Col. Arthur Woods, to continue the stimulation and co- 64 THE PEESIDE^'t's COXFEKEXCE ox rNEMPLOYME^-r. ordination of national, State, and municipal agencies, under the gei eral direction of the Unemplo.ymcnt Conference. Sixth. As the result of experience gained in organization througl out the country during the past week and of suggestions receive from many quarters a large amount of material is now available fc further development of emergency measures. LETTERS TO MAYORS AND GOVERNORS. The following letter was sent to mayors of all cities of 25,00' population and over cast of the Mississippi. A telegraphic summar of the letter was sent to the mayors of all cities of 25,000 and ove: west, of the Mississippi : The Peesiuent's Cdxfeke^'Ce on Unemployment, Department oe Commerce, WashbKjton, Octoicr 7, 1921. My Dear Mr. JIay-oi; : As you know, the President issued a request oi October 4 tliat municipalities all tlirougli the country should cooperate witl each other and with State and Inderal authorities so as to secure unity ii meeting the unemployment situation. We are anxious to get in contact witl you so as to learn what steps you have taken in order tliat the results ox you: experience may be transmitted to other municipalities and also in order tha we may have your recommendations as to ,iust how you feel the Federa authoritirs can best cooperate with you in the entire matter. I have asked Col. Arthur Woods, Chairman of the Special Committee or Municipal Operations of the Pinemployment Conference, to act as special assist ant in the matter, and we wish to be guided, in the service agencies we helj set up, by the information and advice we obtain from State and municipal authorities throughout the country. We should, tlieretore. appreciate it very much if you will let us know whal the situation is in your city and how far you consider that your local situatioi is such as to make necessary the following out, in a general way, of the recom mendations of the Unemployment Conference which are now guiding manj cities where there is a large congestion of unemployment. We should also like to kn(rw what special measures you find particularly effective, so that wf may bring these to the attention of other places. Yours, faithfully, Herbert Hoover. The following letter was sent to governors of all States of the Union : The President's Conference on Unemployment, DEPARTirKNT OF (JoMMERCE, Washington, October 11, 1921. My Dear Governop, : You are, of course, aware of the Conference on Unem ployment which is now being hehl in Washington, The object of this confer- ence IS to see what methods can be developed for cooperation among all sec- tions of the community, especially what emergency measures may be put into effect during the forthcoming winter. The Conference has felt that the ■rtlK ir-l-tJiSluiiJNT b UUJN i'JiKKJN Di-; ON UNEMPLOYMENT. 65 ?' primary basis of any organization set np for this purpose must be tlie niuniei- pality, functioning through emergency committees organized under the direc- ^ tion of the mayor, and that such committees should be comprised of com- . petent citizens representing such associations, etc., as would tend to increase employment and secure the cohesion of the cy efficient organiza- ' tion. With this primary organization created, we feel that the State and Federal Governments would then have a basis to rally around. I think that j'ou will agree with me that it is most essential that the primary organiza- tion in the municipality be set up in order that, as the situation develojis, we shall be able to do what is necessary to meet the emergencies. There are many directions in which stimulation and support can not be originated within , the single State or municipality and in which the assistance of the Federal authorities may be of help. Some of the legislatiini before Congress when completed will be a distinct Federal contribution. Lil^ewise, measures being fallen by the Federal Government with a view to expanding the coal output, the participation of national industries in relieving the strain, and otlier ■ measures of this character would be an indirect contribution of an important order. To prevent the shift of the burden of necessitous unemployment from one city to another and otherwise to handle the whole problem of unemployment, _ it is essential that the effort be made on a nation-wide b:isis. In order to do this, it is of course vital that the governors of the States give their active support ■ and cooperation. I know that we can rely upon your interest in this matter, and I am, therefore, writing to ask if you will be good enough to send me any suggestions that may occur to you for the amplification of the organization, also as to any- thing that we can do to assist through national industries or Federal agencies, I should also appreciate your keeping me informed as to the progress made in your State with respect to any organization which may be set up to handle the problem. It is not proposed to establish any extensive national organization other than a standing committee of the Unemployment Conference, which will consider itself a quasi voluntary body organized for the purpose of coordinat- ing, with the assistance of the Departments of the Federal Government, such .service as can be rendered to the State or mimicipal agencies. I have been in communication with the mayors of the cities in your State ' that have 25,000 or more inhabitants, in order to try to help them by keeping them informed of measures found successful in other cities, and also to try to render them such service through this Conference as may be practicable. I .should appreciate it if you would give me the results of your observations iu the cities of your State, with such suggestions as you think might help in this work. I am inclosing a copy of the recommendations of the Conference covering the construction industry,^ and would appreciate your comments, suggestions, and cooperation if conditions in your State require action. Tours, faithfully, Heebeet Hoovee. ' For test o£ the report of tlie Committee on Construction, see Part V. 76290—21 5 66 THE peesidext's conference on unemployment. ABSTRACT FKOM REPORT OF THE ECONOMIC ADVISOR! COMMITTEE OF SEPTEMBEK 26, 1921, TO THE CONFER ENCE AS SUBMITTED TO THE COMMITTEE ON MUNICI PAL ORGANIZATION FOK UNEMPLOYMENT. PROGRAM FOR PRIVATE, CIVIC, AND FAMILY WELFARE AGENCIES The following- su-'-estions represent briefly the most notable con- siderations which past experien<'e shows must be recltoned with- fcom.e things to avoid and others to be emphasized in local contacts with the uneniijloyment relief problem : 1. ABSTKACT OF St'(;GESTIONS. 1. Unite existing- jn-ivate and ])iiblic organizations to formulate and i)iit througli a constructive [n-ogram for your community. 2. Procure all obtainable facts relative to unemployment in yoiii community and make tliesc available to al! agencies and to the ])ublic. 3. See that there is a suitable employment exchange in ' youi community. 4. Assist private and public employers and labor organizations to deal with the problem rather than to have any single civic oi family welfare agency or combination of agencies assume the ful responsibility. 5. Bring to the attention of public authorities specific recommen dations for increasing volume of public work. 6. T"^rge both private and public employers to distribute labor bi rotation in shifts of three days or more at a time. 7. Persuade each industry to absorb definite quotas of unemployed 8. T'rge not only private and public employers but individua householders and property owners to make improvements, extraor dinary or ordinary rejiairs, and general sprucing up of properties 9. Experience indicates that cash or other relief without work ti able-bodied imemployed men is of doubtful value until after ever eifort has been made to provide work. 10. Ordinary prolilems of I'elief of poverty are increased in time of distress. Strengtlien organizations dealing with these. 11. Increase resources of local family welfare agencies to enabl them to cope with unemployment which your community can no meet through its industries or through its public employment. 12. Formulate standards and rules for temporary employmen for those out of Avork dealing with rotation of shifts. Avages to b paid, preference to be given to resident family men, etc. 1.3. Urge relatives and friends to make extraordinary sacrifice to assist their own relatives and acquaintances who are out of worl THE PREStDIiNX's ri JNFETtKIX'CE OX I' K EMPLOY? ! r.RT. 67 l-t. See that deeent stniiturv iU'conmiodationK for lioineless men lire made in order to ditt'erentiute tlie problems of resiileiit and float- ing unemployed. f5. Past experience shows that great caution should lie exercised in estriblishing bread lines, soup kitchens, food or lodging without provision for work, bundle days, and other such measures. 16. Discourage migration of unemployed to and from your com- munity. 17. JMake your emergency and commu.nity agencies result in some permanent community organization to prevent industi'ial iTis:^s and to deal with them with foresight Avlien unpreventable. _'. eo:*] jri'^'iTY tkooraims. The major effort in mitigating the troubles arising fr. Emergeni.-i.- emploj'ment service should Ije stmiulatcd by some metliod of report of progre^;s and accomplishment by which its value can be measured, 11. The exi.'erienre (if communities ali'eady operating will be help- ful to all, and this committee is therefore preparing a pamphlet of Migj'i^'cd pra"(i";il sieps for general guidance. The main reliance, however. nru.sL be in the resoui'cefnlness and self-reliance of the peo])le of each conmmnity familiar with its own local conditions. REPORT ON IMMEDIATE MEASURES BY THE COMMITTEE ON EMPLOYMENT AGENCIES AND REGISTRATION, OCTOBER 11, 1921. I Adopted liy the Conference.] Till, ciiiumittee reports the following measures for immediate registration of tJie unemployed and the development of emergency employment bureaiis. Our j^urpose is to place in employment with tlie least po.csilile delay every person for whom there may be some work anyv.here in the community to fill every available job with the least loss of time, and we believe an efficient employment office can not only reduce unemployment in this way but can also induce CEKTEALIZED EEGISTEATION. In every city there are a number of agencies and organizations whicli are registering unemployed wage earners for various pnr- p.. ,.-(•-. There are public employment bureaus, private labor agencies, emi)l..yment (rfliccs conducted by pliilanthropic and religious organi- zatuti,.s, and oijircs maintained by tracle-uniims and employers' asso-, riati(,t;S Aii of the-e Iiave llieir value, liut they often involve overlapping and dMpiica.ti<:!i of work. Their indivnlual resources may not be great enough i;o ,ki tlie uuist effective work, ami they also cause some confusion in tlie minds of tin unemployed as to where it is best to register as well as m the minds of employcss as to where to call lor Iiclp. Tlicrc is aiso danger in confusing tl^e work of an employ- mem l,ureau with the administration of relief. An employment bureau sliould be free to carry out its single function of getting workeis satisfactorily placed on the basis of their (luaiifications rather than their need for relief. ixuL i-Kl'.biUJiJNT S COA'FEEENCE OX rXE JIPJJ lY.MENT. 71 I A multiplication of agencies is seldom desirable, and every effort ■ should be made to federate all the existing agencies under the direc- ' tion of the communitj'^ as a ^vhole. and any organization desiring to establish ne^v agencies shoultl be induced to pool its etForts with the existing agencies. 'In this way much of the effort and money that might go into organizing and equipping new agencies could be spent in directly securing work for unemployed wage earners or in helping them in other ^vays. To accomplish these purposes the Committee ' makes the f olloAving recommendations : 1. The mayor should call a conference of all the existing ao-encies, public, private, and philanthropic, which are concerned in anv vray in dealing with the unemployed. It is important that to this con- p ference should be called also representatives of employers' organiza- |^ tions and labor unions. 2. This Conference should resolve itself into an Emergency Com- mittee on Unemployment, and its first duty should be to ascertain and list the legitimate and approved agencies which are registering unemploj'ed persons. 3. As soon as the existing registration agencies have been as._er- _. tained, the employment bureaus should be separated as distinctly and as complete^ as is possible from the relief or charitable agencies, both in their management and in location. A COTVtJtUXTTT EMPLOTT.rEXT SYSTEM. We are concerned here only with those unemployed persons who register for employment, and our recommendations are confined to measures designed to aid such persons. Whatever may be our judgment as to the ultimate necessit}' of having the public employ- ment bureaus predominate in the matter of distributing infornialion regarding opportunities for employment, it is necessary in the im- mediate, situation to make use of every honest existing agejicy that has facilities for finding employment. To this end it is recom- mended : 1. In every city where there is a State or citj^ free unemployment bureau it should be made the central employment agency. It should ' be extended and enlarged as much as possible, and all the other agencies should be operated as brandies of one system of municipal employment bureaus, under the gu.idance of the Emergency Com- ' mittee on Unemployment which represents the whole community. ' The central emplo5mrent bureaus may also serv.e as headquarters of ■ the Unemployment Committee, and it shoidd be the clearing house ''• through which requests for help and applications for empknnnent '' that can not be filled at one office may be filled from another office. 72 THE PKESIHENt's (.'OXFEP.BNCE on UNEMPLOYJIKyT. 2. This cooperation and federation of employment agencies in the communities involves no special difficidties so far as the non- commercial bureaus arc concerned, but the labor agencies that charge fees will l)e a source of trouble, and great care should be taken to deal only with sucli as have an established reputation for in- teo-ritv and which are willing also to have the amount of their fees restricted by agreement with the Unemployment Committee. 3. To federate and operate all the employment bureaus in a city as one community employment system will require a management and executive ability not ordinarily found in employment offices, because their superintendents are commonly underpaid and the men of executive ability who have had experience in the employment business have usually gone into other callings. There are, however, in almost every industrial center men who have had training and exi^erience in jjublic employment bureaus or as employment man- agers in large industrial plants who can be drafted to direct the emergency employment system of the communit3^ One such man of outstanding capacity as a manager who has knowledge of the employment business should be appointed "Emergency Labor Com- missioner " either by the mayor or hj the Unemployment Committee. 4. It should be the business of the Emergenc}' Labor Commis- sioner to direct the work of all the employment bureaus in the community to the one end of placing in employment as many jDeople as possible. He should secure the installation of a uniform system of management and record keejiing in all the oflices so far as this is possible, and he should require uniform daily reports from all of them to be sent to the central headquarters. 5. Where funds are lacking to secure competent superintendents, interviewer, and clerks for tlie offices he should call for volunteers from among industrial employment managers and social workers, and if it is found necessary to pay salaries to a competent chief of the employment bureaus and to competent intervieAvers, which public funds do not permit, then these funds should be contributed or raised by the organizations represented on the Emergency Em- ployment Committee. 6. The Emergency Labor Commissioner and the employment bu- reaus in each city should keep in the closest possible contact by wire and long-distance telephone with all neighboring cities for the purpose of transferring labor from one community to another where tins IS possible and desirable. Public employment bureaus are now m existence m almost 200 cities, covering more than 30 States, and the State labor departments, which operate most of the public employment offices, as well as the U. S. Emplovement Service, which has cooperating arrangements with them, should be enlisted to assist m this work of transferring labor at a distance. THE president's coxfeee:sce ox unemployalkxt. 73 7. The U. S. Employment Service, we find, has no funds or staff to help the communities in this work to any material extent, but it does have a uniform set of registration cards and other forms needed in the employment bureaus which it is willing to furnisli to any employment bureau of a public character in return for reg- ular reports on the work of the bureaus. The Emergency Labor Commissioner should secure these forms either directly from V. S. Employment Service or through the State labor depai'tment. and he should apply to the U. S. Employment Service also for the frank- ing privilege which may also be secured by public bureaus under certain conditions. (Copies of the forms are found in Appendix K.) 8. Uniform methods of registration, record keeping, and report- ing as recommended by the U. S. Employment Service should be insisted upon by the Emergency Labor Commissioner in all the em- ployment bureaus working imder community direction. 9. The U. S. Emploj-ment Service is now cooperating with almost 200 employment offices in 30 States, and communities which are cen- tralizing their employment and registration would do well to make use of the experience of this existing organization and to secure such assistance as the U. S. Employment Service has facilities to offer. WOEK OF COMMUNITY EJfPIXIYMENT AGENCIES. 1. All the emplojTnent bureaus in the community should be oper- ated in a unified system by the Emergency Commissioner of Labor under the direction of the Unemployment Committee as a center of information, a clearing house for the benefit of both the unemployed wage earners and the emjjloyers of the community. Orders for help from employers must be secured by soliciting and advertising, and these can be stimulated and increased by rendering prompt and effi- cient service. In response to requests from employers applicants are to be selected on the basis of personal fitness for particular posi- tions, not because they happen to be unemployed or in need. 2. This work will naturally divide itself into a men's and a women's department. In the men's department the skilled and unskilled workers should as far as possible be handled separately. Eor the present period of unemployment it is particularly important to give special attention to casual work or short jobs. These can he greatly multiplied by efficient management of such a department, and they can be of great help in tiding over the winter many unemployed workers who would otherwise become subjects of charital)le relief. A community campaign for clean-up and repair work will greatly increase the number of short jobs. 3. In the women's department also specialized services should be developed for the different occupations in which women are em- ployed in the community. During the period of unemployment spe- cial attention should lie given to placing day workers, charwomen, or washerwomen. Kxperience has shown that such a service can find work for ^-ery manv women in every community in the worst periods of depression, and' thus add to the incomes of very many families. Thejc are great possibilities also ni the women's department for de- vektping opportunities in domestic employment, and special atten- tion should be devoted to this branch of the service. -i. Unemployed juver.iles Ijetween 15 and 20 need special attention, Ijecausc imemployment may have a specially demoralizing effect on thon. They should ]'Q handled in a separate department and a sepa- rate rooin wherever ]iossible and by all means kept apart from the transient and casual laborers. ."i. Inimigiant non-English-speaking laborers also present a spe- cial prob.'em. and interpreters or interviewers who speak foreign languages may Ije needed in large offices, but every office will need scmie kind of interpreter service to handle these workers. u. Transients and nonresideiits should ))e carefully distinguished fri.ni citizens of the community, and if any labor is to Le sent to dis- tant places to T,'ork this class of labor should l^e used for the pur- ]jos". .Vn energetic employment office managei' can often get the cost of transportation advanced by the employer from a distance who needs lielp. Preference in employment within the city should be gi\'en to residents. PmXCll'I.KS AXI) METHODS OF MAXAOEJIENT. 1. The otfices should be operated as pure business propositions — as exchanges for facilitating the meeting of buyers and sellers of labor. Fitness for position should l)e the prime test in all dealings. If applicants aie unemployed because of old age. inefficiency, or disa- bility of any kind, it will be no help to them to refer them to positions they can not hold. Such applicants should l)e referred to the proper relief agencies. L'. Impartiality lietween labor and capital is j^articularly essential in tile management of the offices, for without this the confidence of employers and lalior organizations can not be maintained, and with- out such confidence employment agencies can not operate success- fully. To insure this impartiality and confidence, the representa- tives of employers" associations and labor orga.nizations who are on the rnem]jlr)ymcnt Committee should be kept fully informed of the work of the employment offiice and should l)e induced to act as an Advisory : ''\\ipl()Ymi-:;':t. 75 public and private, exist for regulating working conditions and vv-age bargains. An employment agency to be successful must coniiiie itself to bringing to the attention of the unemployed wovkeis exact infor- mation as to the available jobs in the comnuuiity that they caii do and to employers it must refer workers who are lit for the jobs. Expe- rience has proved that when an employment otKce goes bcv.md this to" regulate working conditions or wages to be paid it soon censes to function properly as an employment agency. 4. The business of an employment oflice to be a suct'css must be carried on in as aggressive a manner ns any conunercial undertaking. Experience shows that work can be olitained for men by closelv watching the advertisements in the daily papers, by keeping in close touch with employers through the use of the telephone, and by fol- h/wing up information secured in such a variety of ways, as through leads furnislied by the men themselves in their search for work, or through newspaper notices of building operations or the opening up of factory work in neighbori}ig locLditics. This latter inrormatism may be obtained either by use of the Liug-disinnce teleplcne or by correspondence. Sucli aggressive measures shoiild br' suppicmenteil by i^ersonal visits to shops and factories and interviews with superin- tendents and foremen. By such i^'cthoels tlic head of a lrji'c:iu <:ets accurate knowledge of the labor market, especially in the trades having seasonal activities. Moreover, certain in- 25 States which have established State employment systems, and puljlic employment offices are now lieing oj^erated in about 200 cities, of which al)out IT are purely municipal enterprises. Most of the 200 offices are supported jointly by the State and municipality. Your committee feels tliat in anjr permanent system the State should be (he operating unit of such employment offices, and that the extension of such offices should be encouraged. The Federal Government itself should not operate local offices or do placement work. 3. However, for the purpose of bringing about coordination, the Federal Government should — (a) Collect, compile, and make available statistical information. 78 TI-U'; rRlWniEXT's COXFEBEKCE OST I'XEaiPLOYMKXT. (h) Collect and make availaljle ini'ormation which will facilitate interstate i)lacements. (c) Thi-ouah edncational measures improve standards of work and encouraj:-e (he adoption of uniform systems. 4. The existinderal (lovernment and many State o-(,vernments for all branches of such work is inadequate, and should he strengthened. The vcork is of first-rate importance, and should lie ]'ecoo-nized as a job for men of first-grade ability from the top down. The director should be appointed directly by the Presi- dent. .Vdequate salaries should be provided and adequate safe- g'uards to secure the proper personnel and to protect the tenure of office. 5. An aderpiate permanent system of employment offices as above suo-o-ested would obviate the necessitv of creating new offices when- ever new emergencies arise. It would also prevent the public em- ployment office from being regarded as a mere temporary philan- thropic deA'ice, and tlius througli misunderstanding from not being used generally. \'MKNT. 79 APPENDIX IL— DAILY REPORT FORMS TO BE SENT TO STATE CENTRAL OFFICES, r. S. DKPAUTMENT OF LAH(.)U. I'nited States Employment Service. 1>AILV KEPOKT to state CENTRAL OEEICE. Office Dcparffiient Attotihuicc: Male Fcniah- Tohil Bil V.}^ Industry and occupation. AgncultuiT: Farm hands, gardeners, dairy hand-^. etc Agricullural laborers Boys and unrls Buildins; and Construction: Carpenters , Electricians {inside tind outside) Painters, papei hangers, etc _ . . Pipe fitters and plumber^; . Roofers and sheet-metal workers Structural-iron v\'orkers . . . Other building trade me- chanics Building trade helpers. . - , Casual Workers. Chemicals, Oils, Paints, Etc. Clay, t-ilass, and stone Prod- ucts Clerical, Professional, and Technical. Bookkeepers, accountants, and cashiers Stenographers and t5*pisls Office clerks Teachers Others ' Clotning and Textiles: Dressmakers and seam- stresses Garment workers Hat, cap, and millinery workers Shirt, collar, and ouft' workers Textile workers Others fi' Common Labor (not casual workers) . Domesticand Personal Service: Domestics Laundry, cleaning, dyeing, etc ". Nurses and attendants Others FooJ,beveiages,andTobacco: Bakery and confectionery workers Meat and butcher work- men Cannery workers Cigar, cigarette, and to- bacco workers Others Total forward. Industry and occupation. 1 3 i d o c Tola! f;n ward liolel and Restan.ranf : Chambermaids j Cooks and '''hefs Kiichcn and pantry wiirk- , crs- - .' ' Matrons and hotel house- i keepers... ! ! : Waiters, waitresses, tiiid Others ' ' ■ 1 Leather, Rubber, and Allied Products: Boot and slir,e workers liubber workers _ . . ! r " ■ Olhers Lumber: Skilled woodsmen Woods laborers 1 Metals and Maehniery: Auto mechanics and ga- lage workeis Blacksmiths and boiler- Machinists, tool and die I Machine hands and spr- ! cialists 1 Millwrights ' Molders and core makers. . . 1 PoUshers, bulVers, platers, Helpers and handy men, | all trades " Others . j Mine and Quarry Workers: Skilled miners Others -. ...J ■.... Paper and Printing: Pulp and paper mill work- i ers - - Feeders and bindery work- , Others ! Shipbuilding: Riveters, cbippcrs, calkers, 1 1 Ship carpeofers. Other distinct occupation^ Shipbuilding laborers ■ Total forward ..| i --- 80 THE peesthekt's cois"ferk:nce ok unemploymekt. Industry and occapation. 1 ; a S i 1 "S o ' o a Industry and occupation. o a 1 a p. g ft 1 o P. o -d i 1 j Total forward 1 1 1 ... Woodworkin2; and Furniture: Cabinetmakers and furni- ture finishers 1 Transportation and Public Utilities- 1 1 1 1 i .. 1 1 Miscellaneous: Teamsters, stablemen, 1 Boys and girls {not other- Track workers ' I . Trainmen, di;>paf oh ers, enginemcn, etc ■ Cranemen and steam- Other? Wholesale and Retail Trade* ' Firemen and oilers .Shipping and stock clerks, 1 Watchmen, janitors, j G rand total — ! 1 1 FiU out and mail to your State Central Office at the close of each day's business. THE PRESIDENT'S CONFERENCE (!X VNEMPLdYMENT. 81 [Front.] Name ' Telephone No. Date Address \\'dliii;: io wurk ■ Number of depi'i ml of town? OceapaTion Wages wanted d,'n Is Also willing to work &,s— 1 Wages wanted Marripd Single , Widowed iJo^ident? How long? 1 Spuak English 1 Uoad English Write English Age Race Birthplace Address 1 1 How long in U S.? 1 Last three employers and of'wurk l;enewals 1 t Kimiarks. 1 DEPARTMENT OF LABOR U. S. EiiPLOYMENT Serv;ce Emp. -1— Apjilieation for work — Males [Reverse.] ','. \ ['■'■'■':'■'■'■'■[ n ■;;;;;;;;;::' o' ','.'.'■'■■■■■ 2 ; : ; [ ;__ : : : :_ ; ; _ ; i o •A o w o 76290—21 6 82 THE PRKSIDENT's CONFEKENCE ok UNEMPLOyalKNT. Emp. 3 [Front.] Department of Labor. u. s. employment service. EMPLOYER'S ORDER. Number - Name Date Address Telephone No. Occupation (State exact nature of work to be done) Niunber wanted Wages Hours Probable duration of work NationalJty Sex Age limit Color Married or single Apply to d? -- - Any strike or lockout existing or threatene [Reverse.] HELP SENT Persons sent Nationality Date sent Result 1 1 i i 1 1 ; 1 THE PRESIDftNT's CONFEKENCE ON UNEMPLOYMENT. 83 IFront 1 Emp. 5 PRESENT Tins CARD TO EMPLOYER TJ. S. Departmp.nt of T.nbnr InYrodVtfo?aSl"tonSci ^^''■™'> ^^"-^ Km-o"'™^ SEB^■.c. , ;,').... To Tills introduces sent in accordance itith your request for nt Directed hii EMPLOYER SIGN AND RETURN — NO POSTAGE REQUIRED Hiredf (Check Yes or No.) I'fs t 1 No 1 [ Introduction Card [Reverse.] V. S. DEPARTMENT OF LABOR U. S. Employment Service T^r^arp Patjt^ OFFICIAL BUSINESS Penalty for private use S^OO 84 THE PRESIDE^yi's {'ONFEEENC'E 01s' UNEMPLOYMENT. ABSTRACT OF PUBLIC HEARINGS BEFORE COMMITTEE ON EMPLOYMENT AGENCIES AND REGISTRATION, SEPTEMBER 28, 1921. Julius H. Barnes, chairman of the committee, in introducing the subject matter of the second public hearing of the President's Con- ference on Unemployment, stated that the immediate purpose of the committee is to decide what measures can be suggested to the autliorities of industrial centers for immediate application. Mr. Barnes stated that it has been established that a better source of contact between the worker and the vacant position would normally and at all times reduce unemployment by from 5 to 10 per cent. John Ihlder was asked to state the attitude of the United States Chamber of Commerce on the question of public employment agencies, and leported a refei'endum in 1919 in which the following recommendation received 089^- votes in its favor and 361i| opposed, but failed of adoption because of a failure to secure the necessary two-thirds of those voting: A systciu of national employment offices with due provision for cooperation with existing State and municipal systems can be made, under eftieient manage- ment and if conducted with due regard to the equal interests of employers and I mpliiyces in its proper adniiuisl ration, a most helpful agency, but only if all apjiointments are made strictly subject to the civil service law and rules, Policies g(jverning the conduct nf a national system of employment offices should lie determined in conjunction with advisory boards — National, State, and local— <'ixuidly refiresentutive of employers and employees. Eoswell F. Phelps, Director of Statistics for the Department of Labor and Industries of Massachusetts and Director of State Public Employment Offices, outlined the history of public employment service in ^Massachusetts. These offices were established, primarily, as a sort of charitable agency, but in the development of the work it was found that the service rendered was to tlie achantage both of employer and employee liecause of the fact that it served as a central labor exchange in three or four cities. Eequest has been made of the Massachusetts Legis- lature to change the title o-f the offices from '• Free Employment Oflice" to "Public Employment Office" in order to put them on a dignified basis. 3Jr. Phel])s brought out the fact that the per capita cost of place- ment m Massachusetts through the State Employment Office during the entire period of operation since 1907 has been $1.11. Mr. Phelps, m answer to interrogatioas regarding the capacity of private employ- ment agencies to handle i^resent employment problems, called atten- tion to the desirability of central registration, with a possibility of giving prefei-enc(> to the needy and the veterans, which can not be THE president's C'OXFEKEXCE ON aXEMPLOYMENT. 85 n done through a number of independent ag-encies. However, as a !|i means of overcoming this difficulty, arrangements have been made with the industrial aid societies to provide a preferred list, naming the heads of families and those in need. These lists are distributed "^ to practically all of the leading private licensed agencies, which also help to compile it. Mr. Phelps stated that the appropriation for the ' three offices in Massachusetts last year was $54,600, of which a bal- ance was returned of approximately $j!.000. During the year :]S.T()() positions were filled, at an average cost of $1.35 per placement. The personnel of these offices consisted of 38 employees, and each office - has a superintendent. A small clerical force is employed, but most of the personnel are actually registrars. Field agents are employed '" to visit the employers and act in a publicity capacity and also famil- iarize themselves with the character of the positions which are to be filled. Mr. Phelps stated that for some purposes private employment agencies were more effective than the public agencies, particularly with respect to jobs that require the looking up of references, and that he would be averse to restricting their operation. Mr. Pheljjs stated that the ideal arrangement if properly conducted was municipal offices having physical contact with the work, cooperating with the State bureau, and allowing the State to standardize local oi^erations and then have the State directed by a Federal clearing house in the same way. Of the total placements made b}' the public employment service in Massachusetts last year, somewhat over one-half were casual, domes- • tic, and short-time clerical. A little less than one-half were more or ^ less skilled manual positions. Some professional positions were filled in which the salary was as high as $2,250. Francis I. Jones, who has been Director General of the United States Employment Service since June 3, 1921, stated that the Fed- eral bureau acts in cooperation with State and municipal agencies. It operates a field force of engineers and technical men, who collect V information for the Employment Service Bulletin. The coopera- \ tive disbursements and details of personnel are made by the Federal bureau to a number of State agencies. Mr. Jones expressed the opinion that at this time the U. S. Em- ployment Service can do better work in cooperation with the State organizations rather than by extending its activities to the opera- tion of local offices. He stated the belief that the present appropria- tion of $225,000 is inadequate. Shelby M. Harrison, of the Sage Foundation, in answer to ques- tions stated that the great objection to the fee-charging employment ' agency is that it, generally speaking— and with, of course, excep- Jn/oC^ 86 THK pkesidext's coxfekenci-. ox unemployment. tions-does not have the confidence of the employer o^" ;:^ ^^^^Jj^' Plovees He stated that researches made by the Sa^-e I ounda ion 1 10^ ces. xie •, ,„h,,i, also reveal criticism of public employ- in die unemplovment situation ai.u n. "- ^ ^, ment service from tlie standpoint of both employers and ^^ oikers but that in fairness it must be said that due to the expansion of the U S Public Emi^lovment Service during the last few years it would have' been miraculous if this service could have been orgamzed M-ithout criticism. Mr. Harrison stated his personal conclusion is «»fa^■ol•able to the immediate extension of public employment service, ^ that certain types of private agencies, and particularly the in-ivate professional agencies, should be allowed to continue, at least for some time to come. He believes that one very important factor working against the public employment service agency is a lack of understanding in the communities of what it is and can d.<». William (\ Roberts, chairman of the Legislation Committee of American Federation of Labor, stated that one reason why em- ployers did not apply to public employment services for employees was Ijecause the employers did not hire the men personally, but left this to the foreman in many cases, who split fees with paid em- ployment agencies. Mr. Eoberts stated that organized labor would favor in the most emphatic way the extension of public employ- ment agencies and that the private emploj'ment agent ought to be abolished entirely. Lie stated that organized labor has found the U. S. Free Employment Service very effective. Urbain Ledmix ap]5eared before the committee to give his expe- rience on employment agencies. Mr. Ledoux stated that labor has a good opinion of public employment agencies and a very bad one of private agencies, particularl}^ those that deal with unskilled labor. He stated that Federal agencies could verj' much expedite the place- ment of migratory laborers, who are the ones who suffer the most from unemployment, and who number some 500,000. He believes that the public employment service should be extended to skilled labor, and staged that IT) per cent of the x^resent-day bread line is of the clerical class. jMr. Ledoux stated that there was reluctance on the part of the average down-and-outer to take advantage of municipal lodging houses, even wlien such privileges are open to him. He explained that this condition is due largely to the requirement of a number of hours of work on the following morning, which deprives the searcher for work of the best hours of the day. The committee ad- journed at 1 o'clock to resume hearings in the afternoon. Mrs. S. J. Atwood, representing the Metropolitan Association of Employment Agencies of New York City, gave testimony. THE president's CONFEKENCE ON UNEMPLOYMENT. 87 , Mrs. Atwood, Avho conducts a private agency, has had experience in placing large numbers of men of all classes for railroad construc- tion and -war manufacturing work. She stated that the average :private employment agency compares very favorably with public igencies that charge no fees, particularly in communities and States where proper licensing of such agencies is in effect. She cited in- stances to prove that any agency, public or private, to be successful ,n properh' placing unemployed must have personnel capable of .oicking the right man for the right job. The average fees received .3y private agencies in New York for placing crude labor are $2 to 53, according to Mrs. Atwood. She deprecated the tendency of the . imploj'ers who patronize free bureaus to attempt to drive down wage schedules. It is impossible, so Mrs. Atwood believes, to secure prac- ;ical cooperation through city, State, and Government agencies. Mrs. , Atwood expressed herself as skeptical about the possibility of exten- jive interstate placement of labor due to loss of time involved in .ransportation. High license fees for agencies, according to Mrs. Atwood, do not tend to eliminate the undesirable agent. Dr. John Price Jackson, formerly chief of the Department of ..'jabor and Industry for the State of Pennsylvania, cited results of )bservations made by him in Germany at Dresden, where he saw vhat was, in his opinion, the best employment agency of its kind, md where the agency catalogued nearly two-thirds of all the workers ' )f the district. Dr. Jackson explained the reason for the support of his free State organization by both employers and employees as due o its careful organization and expert management. Dr. Jackson sailed attention to the Johnstown (Pa.) Public Employment Office, vhich, since depression set in, has acted as a clearing house and has ■ :hifted labor about in the rotation of jobs. Dr. Jackson stated that n his belief every step taken by the Government to build up, figura- ' ively or actually, additional officeholders taking over functions vhich can be carried on by private citizens is tending to tie up the ' jovernment into an autocratic Republic. Dr. Jackson recommended ' he careful listing of the unemployed in each district, with a noting )f their qualifications for work, stating that the matter of unem- ' )loyment is primarily a community job. In summing up his recom- '''nendations Dr. Jackson stated he believes that for the emergency a '' >ntral organization be set up in each community, making one part ^f its activities an employment agency and using all the local present ' ixisting facilities. * Mr. Philip Brown, of the Adjustment Bureau of the U. S. Depart- , Qent of Labor, spoke of his experience with both public and private *,gencies as to the treatment of discrimination against Xegroes. He tated that the Negro hae been the particular victim of the private 88 THE PEESIUEXT S COXFEEEIvCE ON UjSTEMPLOYMK^'T- agency. Tliere are about ^00,000 migratory Kegroes in tliis count] accordinir to Air. Brown. A recent canvass of savines banks in indi trial centers has revealed an accumulated total of $4,000,000 by Neg depositors that was only depleted $^ per capita during the clepressic Mr. Brown figures that 19.33 per cent of Negro labor out of emplo ment is of the unskilled class. Mr. Brown stated that there are fro 1S,000 to 20,000 colored people out of employment in the Calum district, which includes Chicago, Gary, etc. Very few of these, hoi ever, have been forced to apply for public help or to soup kitchei or bread lines. Part IV.— PUBLIC WORKS. CONTENTS. so Members of Coumiittee on Public Works Summary of the report as adoptfd by the Conference. October 12, 192l___ ,Si) Report of Comniitree on Public AVorl^s on reclamation KO Appendix L. — Letter from Reclamation Service bl Appendix M. — Information on public roads, October 13. 1921 b;j Report of Conuuittee on I'ublic Works — Lons-ran.ue planning- of pubPc works ^ ;)(] Excerpts from report of Kconomic Advisory < 'onunittee on emergency public works, September 26, 1921, as submitted to the (Jonnnittee on Public "Works OS Excerpts from report of the Economic Advisory Gonmiittec on long-range planning of public works, Septemlier 2G, 1921, as submitted to the Com- nnttee on Public Works 09 Chart Xo. 1. Powerlessuess of public-works construction as ordinarily conducted to assist industry in time of depression lOL Chart No. 2. Direct effect of a pnbl c-works reserve in checking unemploy- ment and reviving industry i 101 Chart No. 3. Aggregate stimulus to private industry caused by pressure of concentration of public-works construction in depression years 102 Chart No. 4. Manifold power of concentrated public-works construction to sustain and revive industry 10:j Chart No. 5. Comparison of Federal with State and municipal expenditures for public-works constructiofi 103 Public hearings on public works, September 29, 1921 lOU MEMBERS or CdJIMI'mOE ON PUBLIC AVOEKS. Mayor Andrew J. Peters. Chairman. Cen. R. C, JIarshall, jr. Otto T. Mallery, Executive Secretary. TMiss Ida M. Tarbell. Charles M. Babcock. Ernest T. Trigg. Bird S. Coler. Matthew WoU. Mayor James Couzens. <-'ol. Arthur Woods. Bascom Little. Evans Woollen. SUMMARY OF THE REPORT AS ADOPTED BY THE CONFERENCE, OCTOBER 12, 1921. [Reprinted from Part I.l Public construction is better than relief. The municipalities should expand their school, street, sewer, repair work, and public buildings to the fullest possible volume compatible with the existing circum- stances. That existing circumstances are favorable is indicated by the fact that over $700,000,000 of municipal bonds, the largest amount 90 THli president's ('(iXFEEE^fCE ON UXEMPLOYMBST. in history, have been sold in 1921. Of these, $106,000,000 were sold by 333 municipalities in August. Municipalities should give short- time employment the same as other employers. The Federal authorities, including the Federal Reserve Banks, should expedite the construction of public buildings and public works covered by existing appropriations. ■ , ^. . A congressional appropriation for roads, together with btate ap- propriations amounting to many tens of millions of dollars already made in expectation of and dependence on Federal aid, would make available a large amount of employment. REPORT OF COMMITTEE ON PUBLIC WORKS ON RECLAMATION. lAdopted liy tin- Confpi-pnce Oct. 12, 1921.] Since the administration of President Roosevelt it has been Fed- eral policy to make all irrigable and reclaimable lands available for settlement on terms which aim to insure a real opportunity for the settler and ultimate reimbursement to the Federal Treasury of all construction expenses. Reclamation construction is provided for by a reclamation fund which is constantly replenished by payments from land users, oil leases, etc. Any appropriations to this fund by Congress are in the nature of a loan to be repaid to the Federal Treasury from monies received after construction has been completed. The Reclamation Service work is especially adapted to the stabiliz- ing of employment conditions. Even on the most northern projects siuli operations as tunneling, rock work, and heavy excavations can be carried on successfully throughout the winter. Reclamation Service projects already begun would afford employ- ment to about 32,000 workers, directly and indirectly, during this winter if funds were available. The list follows : stale. Project. Amount. State. Project. Amount. Colorado Idaho Grand Valley.. Boisc Miiiirlo''.ca 81,200,000 1,200,000 2, 000, 000 MOO, 000 2, 000, 001) 1 , 000, 000 1,400,000 Orc'^on-Ca'ifoniia \\'asliincton. . K'amatli Yakima Riverton Shoshone $1,000,000 3, 600, 000 1,250,000 750 000 Total Nt-iTaslvaAVyomiti^:- . Xorth Platte... Ni'\v:ands Rio rtrande 16,200,000 Ni'w Mexico-Texa'^- . . SUMMARY. An appropriation by Congress in the form of a loan to the Recla- mation fund of $16,200,000 for expenditures on projects now under Avay would be utilized in immediate construction this winter, provid- ing direct employment for 16,000 workers, without committing the Reclamation Service to further expenditures. THE president's CONFERENCE ON UNEMPLOYMENT. 91 The above total of 16,000 men employed directly would be in- : crensed by about 16,000 additional required in the manufacture and moving of materials, making a total of 32,000 men who would be i employed this winter. RECOMMENDATION. Fully realizing the need for true economy in Federal expenditures, • your committee believes that such a policy is not inconsistent with - the loan of Government funds during the present period of industrial depression for the purpose of increasing the agricultural area of the United States, and recommends that reclamation developments be continued more intensively during the winter of 1921-22. Your committee therefore earnestly recommends to Congress the immediate consideration of a loan to the Reclamation fund for the [• prosecution of projects already under waj^. APPENDIX L.— LETTER FROM RECLAMATION SERVICE. Depaktment i)F the Inteistor, United States Ueclamation Seuvtce, - M'ashiiiffton, D. C, October 7, 19.21. Mr. O. T. Malleky. Secretary Public Worlds Committee. Vncmploijiiiciit Conference, Department of Conimercc. Mdnliinffton, D. C. Deae Sik : In aecordauce- with your request urioii the nccnsion of your recent visit to this office, the following statement of the possibilities of Itcclamation J Service work in stabilizing employment conditions lias been prepared along the . lines of your memorandum of Inquiry. This statement is Intended to supersede our memorandum on this subject of September 13, which was based upon inadecjuate information and a misappre- hension of the scope of Secretary Hoover's inquiry. The Reclamation Service consistently pursues tlie policy of investigating I in advance the feasibility of and preparing plans and estimates for proposed irrigation projects throughout the West to the fullest extent of available funds. While our appropriations for such work have lieeu small, they have lieen sup- plemented by contributions from the various States, irrigation districts, and other interested organizations, so that at the present time we have more or less complete data on a large number of projects throughout the West. In- ' vestigations of a number of these projects have been carried to the point where construction could be immediately initiated. On many others we have - sufficient data to justify their authorization for construction, but some addi- tional detail study would be required before the actual " dirt nroving " could , be started. The Reclamation Service work is especially adapted for the stabilization of employment conditions. Even on our most northern projects such opera- I, tions as tunneling, rock work, and heavy excavation can ]n- carrieil on suc- ' cessfuUy throughout the winter, and where some ojierations are interfered 92 THE PEESIDEXT '.■- I'OXFEEENC'E ON XJlSrEMPLOYjMEXT- \v'tli there 's fi-e(|iieiitl,v sullicieiit ranw of climate on the project to permit the transfer of enijihi.v.'es iiml I'qiiiiinient ecoiKiniically from one rlass of work to another and keep them eniployea throughout the year. For example, a foree may be employed on >tor,-i,i;e work in the mountains during the summer ,,iiil ,., ,,;irt tr: r.slerred to ,-:!nal construction on the lower lyins project lands rtnrinu- tlie wjitor. Ai;ain. on partially completed projects, operations may often "lie arranged to furnish employment for many of the settlers and their teams durins the moulhs when farm work is slack. On our southern projects, winter is frequently tlie mf>st favorable period of the year for efficient con- struction work. Ill any plan for improrin,!; employment conditions extension of the work of tlie Keclamat^in Servh'C is particularly d.eserving of cons'deration. Not only does it provide a means of slabilizlns employment conditions through the direct employment of engineers of all grades, survey men, mechanics, con- structdn foremen, skilled and unskilled laborers, etc., the very classes who- suffer most from the seasonal nature of much of their work, but through thfr demand thus created for construction materials, machinery, and supplies shotiW help materially to improve conilitions in other Industrie.?. Furtliermore, it is to lie remembered that this outlay is of the nature of an investment. Tlie cost of all projects is eventually to be returned to the Federal Treasury by the settlers who are thus furnished opportunities to make homes for themselves while engaging in the production of one of the funda- mental forms of national wealth. Reclamation Service projects now under construction have already demon- strated beyond i|uestion the economic value to the entire country of this work. ( )n a number of these ]irojects funds could be etficiently expended dur- ing the approach'ng winter, pu.shing them toward completion, and furnishings direct employment to probably 16,000 employees and indirectly (furnishing- Cfinstruetion materials, machinery, etc.) to half as many more. A list of these projects and proposed expenditures on each follows : State. Project. .Vmount. State. Project. Amouiit. Co'orado Cirand Valley.. Boise Minidoka Run River Norlh Platte... Nowlands Rio Orande . . . SI, 200, 000 1,200,000 2, 000, 000 .800,000 2,000,000 1,000,000 1,400,000 Oregon-Calilomia K'amath Yakima Riverton Shoshone $1,000,1)00 3, 600, 000 Montana Nebraska-Wvoming . . Nevarla ^VyoIning Total 1,250,000 7.50,000 16,200,000 New .Mexico-Texas... In addition to tlie work on projects already under construction indicated in the foregoing list, several projects in the Southwest, which have been thor- oughly imcsfi-ated by our engineers, could be taken up immediately. The following table shows the immediate appropriations and the addi- tional estimated ultimate expenditure required : Project. j Immediate expenditure. Arizona Calitomla 1 .\11- American Canal and laterals Arizona Parker San Carlos ?°"l'^i:"' "^^I™ ?*™ ' $5,000,000 " ' ' I 15,000,000 4,000,000 I 4, 000, 000 28,000,000 Additional to complete. $50,000,000 20,000,000- 10,000,000 10,000,000' 90,000,000. THE president's CONFERENCE ON r>: EMPLOYMENT. 93 This work would furnish employment for live mouths to between 25,000 and :30,000 men on the work itself and indirectly to lietween 10,000 and 15,000 more. Settlers ou Reclamation Service projects under the terms of the act of -August 13, 1914 (38 Stat., 6SS), are given 20 years within which to make their :payments. These payments are graduated so that the returns for the first few .years after the completion of the project are relati^s-ely small. An arrange- .rnent might be suggested similar to that of the act of June 25, 1910 (36 Stat., 835), as amended by the act of June 12, 1917 (40 Stat., 149), whereby a stipu- lated amount is repaid from the reclamation fund to the general fund of the Treasury each year until the advances are repaid. There is being forwarded you, under separate cover, copy of a report on the idevelopment of unused lands, which contains the results of an investigation made by the Reclaniation Service under the direction of Congress in 1919-20. This investigation shows the existence of large areas of swamp and cut- ■over as well as arid lands in the United States, the reclamation and settlement of which would furnish large opportunities of employment. The construction -activities of the Reclamation Service, however, have always been restricted ■by law to the arid and semiarid States of the West, and Congress has never iiuthorized any of the work outlined in the above report. SUMMAKY. 1. An appropriation of $16,200,000 for exiienditure on projects now under construction would provide direct employment for 16,000 or more men during the coming winter and would not commit us to further appropriations. 2. An additional appropriation of $28,000,000 would provide employment for 28,000 more men, permitting work to be begun on four new projects. These four projects would require for completion future appropriation of $90,000,000 additional. 3. The above total of 44,000 men employed shouhl be increased by probably 50 per cent to cover increased activities in other lines occasioned by the de- mands of the above work. 4. Opportunity exists to provide employment and settlement opportunities by the reclamation of swamp and cut-over lands throughout the country, but such reclamation is outside the scope of Reclamation Service activities under jjresent law. Yours, very truly, Ottamar Hamele, Acting Director. APPENDIX M.— INFORMATION ON PUBLIC ROADS, OCTOBER 13, 1921. [Not acted upon by the Confeivuce.] BETTER ROADS— MORE WORK PROGRAM. Many thousands of men now idle in this country can be promptly put to 'work if Congress and the States will push the program of road building on which they have spent over $452,000,000 in the past five years and for which they now have plans complete and large sums available. In July of 1916 Congress appropriated $75,000,000 to be distributed amonbligated, mor- 96 THE PKESIDEXT S I'OXFEEEXCE OX UXEiIPLOY^l-K>'T- ally at least, by their acceptance of Federal aid to use at once all the money made available to them by the Government. The ^'^^f ~ for giymg :t to them was to prevent and reheye unemployment. Every dollar tied up by a State now is a dollar ti.rned from its right- ful ijurpose in checking unemployment. ^. ■ , The committee like^ylse would urge upon Congress the importance of at once making a liberal appropriation for road building. In our iudo-ment the road-building program throughout the whole coun- try hinges upon this action. Stop yrair road building, as some of the States fear that they will be forced to do now, and you shut down quarries, cut off a market for cement and other materials, and take freight from the railroads. Minnesota estimates that for every man she 1-eeps busy on road construction three others are employed in the work of preparing and transporting materials. For every mile of paved road she luiilds 141 carloads of freight are moved; that is, road construction means occupation in many industries. It is the judgment of this committee that the country should put itself behind the better roads— more work ]3rogram, insisting that it be pushed at once to the last dollar of money that is available. By subcommittee. Chakles M. Babcock, Chairman. Ida M. Tarbell. Arthur Woods. REPORT OF COMMITTEE ON PUBLIC WORKS— LONG- RANGE PLANNING OF PUBLIC WORKS. I.Vilopted by tlip Conlerenoo, Oct. lo, 1021.1 When public works are done in greatest volume during periods of active industry the same men and material are being competed for l)y both public and private employers. The inevitable result is to raise the height of the crest of the wave of cyclical business inflation and to cause a greater crash when the heightened wave breaks, as it always does. In a growing country like the United States the aggregate volume of ])ublic works of cities, counties, States, and of the Federal Gov- ernment is so great that if a larger proportion were executed in years of depression than ifi years of active industr)' a powerful stabilizing influence would be exerted. In the past, however, public works officials have felt poor when business was depressed around them and conversely ha\e often executed their chief undertakings when the contagious enthusiasm of captains of industry and of the general public has hailed a period of prosperity at hand. This tendency, although a natural one for an individual, does not accord with true economy for the city or with a sound national policy. THE president's CONFERENCE ON UNEMPLOYMENT. 97 A large percentage of all public work is done out of the proceeds of bond issues to be paid off out of annual taxes received during subsequent decades. The credit of a well-managed city or State, as evidenced by the interest rate on long-time bonds, is less affected by a business depression than the credit of private corporations. In- deed, the supply of loanable credit for investment in municipal bonds is often greatest _ when industrial and railroad corporations are unable to obtain credit at maximum rates. This tendency, although accentuated by the present income-tax exemption on municipal bonds, has been true before the income tax was created. Not only can municipalities borrow more favorably than private borrowers in bad times, but by timing their public work during periods of in- active business and relative unemployment they can also secure a more plentiful and regular supplj' of materials and labor as an im- portant economy in construction. Wlien, in addition to these already cogent reasons, it is remembered that municipalities and their con- stituent citizens do in fact assume and bear the cost of destitution within their gates any measure which tends to steady employment of their citizens in bad times and good will be sound policy from whatever point of view considered. The leadership of the Federal Government in expanding its public works during periods of depression and contracting execution in periods of active industry requires no great change from existing procedure. Already the executing agency enjoys great latitude as to the period in which the appropriations may be spent. The remain- ing step is to choose the period of intensive execution to synchronize with major periods of industrial depression. Certain works of the Federal Government, such as reclamation, flood prevention, river and harbor work, roads and public buildings, are peculiarly suited for consideration as large undertakings cover- ing a long period and capable of elasticity of execution to synchro- nize with cycles of business depression. The machinery legislated by the States of Pennsylvania and Cali- fornia to plan in advance for the expansion of public works during periods of depression are examples of present tendencies. Available estimates show that if 20 per cent of ordinary necessary public works were deferred each year and the accumulation executed in a year of depression occurring once in 10 years the Ufting power of public works would be at least one-third the dead weight of such a depres- sion as the present. That the indirect effect would be even greater is '■' indicated by the attached charts. RECOMMENDATIONS. 1. That the Chairman of the Conference be requested to consider the advisability of appointing a committee to study methods and 76290—21 ^ 98 THE president's conference on unemployment. make recommendations for utilizing a percentage of the ordinary necessary public works of the Federal, State, and city Governments as a reserve against future periods of unemployment and industrial depression. 2. That the studies of this committee should include the relation of the cities and States to any Federal policy which may be sug- gested and be published as part of the proceedings of the Unem- ployment Conference. EXCERPTS FROM REPORT OF ECONOMIC ADVISORY COM- MITTEE ON EMERGENCY PUBLIC WORKS, SEPTEMBER 26, 1921, AS SUBMITTED TO THE COMMITTEE ON PUB- LIC WORKS. The present industrial situation can immediately be improved by the use of such of the following measures as the Conference may approve and promote. Your committee is convinced that the expan- sion of public works during the winter of 1921-22 constitutes one of the most important measures to revive private industry and to check unemjDloj'ment. We therefore recommend to the Conference that methods be formulated and measures pressed for the advancement and augmentation of public works for the following reasons : 1. The best remedy for unemployment is employment. 2. Direct emjoloyment is given by public works. 3. Indirect employment is given in the manufacture of the mate- rials needed. 4. The wages paid to those directly and indirectly employed create a demand for other commodities which require the employment of new groups to produce (see charts attached). Thus public works assist in reviving industry in general. 5. Public works will serve as a partial substitute for private relief and charity. CAUTIONS. 1. Public works can not be expanded in large volume on short notice because of tlie time recjuired for preparing plans, authorizing loans, selling bonds, etc. Where city charters or other obstacles pre- vent, a local campaign for private gifts to a public-works fund should be considered. 2. Public works must be on a " commercial " basis, not a " relief " basis, otherwise waste will result. On a " commercial " basis men fit for the work are engaged at usual rates and wages and unfit workers are discharged. On the " relief " basis the workers are chosen pri- marily because they are in need and retained whether fit or not. 3. Only necessary public works should be undertaken which would ordinarily be executed at some future time. ±rii'. jr-KJiSlUJSiNT S CONFERENCE ON VNEMPLOYMENT. 99 FAVORABLE FACTORS. 1. Many communities are alert to the uses of public works as a check to unemployment and their plans are in process. 2. Present favorable market for municipal bonds. EXCERPTS FROM REPORT OF THE ECONOMIC ADVISORY COMMITTEE ON LONG-RANGE PLANNING OF PUBLIC WORKS, SEPTEMBER 26, 1921, AS SUBMITTED TO THE COMMITTEE ON PUBLIC WORKS. PURPOSES. Public AYorks — municipal. State, and Federal — should be contracted in years of industrial activity and expanded in years of depression to accomplish the following purposes : 1. To revive jjrivate industry and to check industrial depression and unemployment. 2. To prevent the demand of public works for materials and labor from conflicting with the needs of private industry. 3. In general, to stabilize industry and employment. METHODS FOR EXPANDING AND CONTRACTING. Defer at least 10 per cent of the average annual public-works ?xpenditures of Federal, State, and municipal agencies. Execute the deferred accumulations in the year of depression which occurs mce in about 10 years. This does not mean, however, that any specific piece of public n'orks will be deferred more than two years — in most cases only Dne year. In order that plans may be quickly available when needed, :lo not defer appropriation for planning and engineering of any rt'ork authorized. Consider the effect of a Federal bond issue as a loan in aid of nunicipal public works in years of depression, such loans to be nade only (a) upon proof of national unemployment and industrial .lepression, as shown by industrial and unemployment statistics; [I) upon proof of the soundness and utility of specific public works .proposed; (c) loan to be made to municipalities at a rate of interest lot less than that paid by the Federal Government (note British 3olicy) ; (d) advance preparation of engineering plans, which must )e thought out and periodically revised in order to be ready for ■xecution when the period of depression arrives (see practice of '."ndian Government) , otherwise great waste will result ; and (e) work ' .0 be executed upon a " commercial " basis and not a " relief " basis. 100 THE peesidext's coxfeeex^ce on unemployment. MACHINERY RECOMMENDED. FEDERAL. 1. Fortify the United States Employment Service to enable it t< obtain reonlar unemployment index figures, so that knowledge ma; be had when public work should be stimulated or retarded, base( upon reliable and complete employment statistics. 2. Formulation by the Director of the Budget of a change ii method in making appropriations by Congress for roads, riven and harbors, public buildings, and other public works, so that thi percentage of the total authorized appropriation to be expended ii any one year may be determined by Executive order, based upon th( condition of private industry and employment; in years of norma industry a minimum program, in a year of depression a maximun program of public works resulting from previous accumulation! being thus effected. 3. Application of the same policy to the public works of States municipalities, counties, etc., the aggregate of which is about sij times the volume of Federal public works. This can be best securec through suggestions from a central Federal agency. 4. Incorporate this central Federal agency as a part of whatevei ' department may in future be charged with the duty of executing public works (Department of Public Works or Interior Depart ment). Pending such legislation the central Federal agency shoulc be immediately formed and temporarily located wherever the Presi dent may suggest. 5. Functions of central Federal agencj^ : (a) To advise the Presi dent when Federal public works should be expanded or contracted based upon its studies from statistics collected by other Governmenta agencies (Bureau of Labor Statistics, Bureau of Mines, United Statei Employment Service, Department of Commerce, etc.) ; (&) to advisi the President when the expansion or contraction of local public work wonld serve a national policy of reviving private industry and check ing unemployment or of preventing interference with private in dustry during periods of normal business; and (c) to suggest meth ods of synchronizing local with Federal public works for the sam purposes. STATE AND CITT MACHINEKY. State and city agencies are recommended in order to apply tb same ]n-inciples of expansion and contraction to their public works (For examples, see Emergency Public Works Commission of Penn sylvania ; and California Board of Control Plan, created 1921, ii "T. Supporting Data," following.) ^T, to *1)1, t a tki; 'is. SO t Is fflid' rears I if: S I'^tdEl 1 W [^3 THE president's CONPEEENCE ON "UNEMPLOYMENT. 101 COMPARISON OF POTENTIAL VOLUME OF PUBLIC WORKS WITH WAGE LOSS IN PRIVATE INDUSTRY DURING YEAR OF DEPRES- SION. Estimates of Otto T. Mallery of the Industrial Board of Pennsyl- vania measure the lifting power of public works as one-third the deadweight of such a depression as the present. An estimated pos- sible $1,650 millions of additional public works wages in a year of depression is 'contrasted with an estimated $5,000 millions decrease in wages in private industry in a year of depression. (See charts following. ) NECESSITY FOR BEGINNING NOW. The best time, and possibly the only time, for successfully inaugu- rating these measures is at once, during the jjeriod of depression. ORIGINAL CHARTS. (Showing possible good effect of concentrating public works ex- penditures during period of industrial depression.) pin 01 '1 :tT of 'V I:v:::- ' r - ■.i;i' ■ ■ ocalp't' lustryai':- mth pn'. to a??'- rksfor't' ler to apt' ■RESEBVOIB OF RESERVE FUNDS ^^ FOR DEFERRED PUBLIC WORKS CONSTRUCTION. Normal Level oj Em^lq^e»vb_ _ Depression Level of Ew ployr neyit RESERVOIR OF RESERVE FUND' FOR. DEFERRED PUBLIC WORKS CONSTBUCTION. 5iRBUVIH6t CoNrwmCS Chart No. 3. — Aggregate stimulus to private industry caused by pressure of concen- tratiou of public works construction in depression years. i-ciii Jr-i%JiSiUKJN T S COi^FEEENCE ON UNEMPLOYMENT. 103 "'■'■"^'■'c "5E OF Funds ^^iN circulation Concentrated «k public works construction INDUSTRIAL ACTIVITY AND EMPLOYMENT Chart No. 4.— Manifold power of concontrated public works construction to sustain and revive industry. Chakt No. 5. — Comparison of Federal with State and municipal expenditures for public woi-lc.s construction. SUPPORTING DATA. EMEEGENCT PUBLIC WORKS COMMISSION OF PENNSYLVANIA AND CALI- fornia public works legislation of 1921. Emebgenct Public Wokks Commission of Pennsylvania, Act of July 25, 1917. — Purpose. — (o) To provide for the clevelopment of public worlis by the State during periods of unusual unemployment; (6) to persuade tlie municipalities and counties to adopt a similar policy, and to coordinate all public works within the State; (c) to provide a fund for State u.se to be known as the Emergency Public Works Fund; and (d) the Emergency Public Works Commission as trustee of the fund. Personnel. — The governor, the auditor general, the State treasurer, and the Commissioner of Labor and Industry. 104 THE peesident's confeeewce on unemployment. Methods. — To secure from the various departments of the State advance plans for extensions of necessary public works to be executed during a period of unemployment. Tlie Industrial Board of the Department of Labor, in coopera- tion with the Employment Bureau, has the duty of keeping constantly advised of industrial conditions affecting the employment of labor. Whenever the board shall have been requested by the Governor, or shall have reason to believe that a period of extraordinary unemployment caused by industrial depression exists, the Industrial Board shall inquire into the facts and report to the Governor whether such condition does exist. Upon such report the Emergency Public Works Commission is authorized to distribute the fund among the various State departments for the execution of specific public works. The Commissioner of Labor and Industry inquired of the public officials of the various municipalities and counties when the depression first occurred in 1920 what specific public works each had under contemplation and called attention to the fact that it was the policy of the State to augment public works at such times. The Bureau of Employment used an equally effective method to the same end. Each branch of the bureau has a local advisory committee composed of employers, workers, etc., which has adopted resolutions asking for the prosecution of public works at various times in 1921 as the depression reached that locality. The members of the advisory committee have called upon the officials and discussed witli them what specific public works could be expedited for the purpose. Thus the State policy has been advocated by local representatives throughout the State, based upon the employment situation as known to the State Bureau of Employ- ment. Califoknia Public Woeks IjEgislation of 1921. — An act providing for the extension of the public works of the State during periods of extraordinary unemployment caused by temporary industrial depression. The Board of Control is required to ascertain and secure from the various departments, etc., of the State tentative plans for such extensions of the public works of the State as shall be best adapted to supply increased opportunities for advan- tageous public labor during periods of temporary unemployment. The Bureau of Labor Statistics in cooperation with the Immigration and Housing Com- mission and Industrial Welfare Commission is required to keep information of indiistrial conditions affecting employment and report to the Governor when a peridd of extraordinary unemploj'ment caused by industrial depression exists in tlie State. Upon such report the Board of Control is authorized to make such distribution of the available emergency fund among the State departments, etc., for the extension of public works of the State under the charge or direction of the State. ELTKdi'EAN EXl'KIUENCE { FROM REPORT OF ERXEST GREENWOOD, AMERICAN CORRESPONDENT, INTERNATIONAL LABOR OFFICE, LEAGXTL] OF NATIONS). The adoption and organization by the United States of a policy of exjiandino- public works when private industry is slack would bring this country into line with the practices of other important nations, as shown by tlie following summary : deal Britain lias an extensive program of public works, including a great artciial road sclieme about the outskirts of Loudon, half the cost to be paid bs the Ministry of Transport and half by a county rate. The work of repairini and rei'onditioning tlie main roads is to be expedited. Last fall 19 large towns had also scheduled schemes for the construction of arterial roads, and it wai THE PRESIDENT'S CONFERENCE ON DNEMPLGYMENT. 105 said that 17 more would be shortly added. The Government alwo has a number of housing schemes for the stimulation of building. The Canadian Federal Governntent is carrying on worlis of various sorts to aid in providing employment ; appropriations for this work aggregate a sul)- stantial number of millions. Provincial and municipal authorities are also doing considerable work in the same direction. A Purchasing Commission supervises the buying of Government supplies, and is kept posted by the Director of the Employment Service when a particular industry is slack, so that orders can be placed.when employment is most needed. In Prance the idea of a better time distril)ution of public contracts was officially adopted in 1902. Tlie aiinister of Public Works advised industrial firms to distribute their contracts with regard to periodic depressions, both in their own, and in the national interests. At the same time the Ministry advised the railway authorities to follow closely the monthly trafBc fluctua- tions as well as commercial, industrial, and agricultural phenomena in order to foresee and cope with periods of traffic congestion. In 1907 an inquiry into the effect of crises upon railways was made by the Minister of Public AVorks, and it was reported that it was feasible for the railways to distribute their orders over the full period of a trade cycle so as to increase the volume of orders in slack years. This plan would steady employment in an important industry, and railways would find it cheaper to build in years of depression. The Minister in May, 1907, invited the railways to submit a definite program for the purchase of rolling stocl< over the years 1907-1910. In March, 190S, a commission set up by presidential decree reported on the possibility of allocation of public contracts, so that they would compensate in some degree for the lack of piivate contracts during times of depression. The commission i-eported that the following financial reforms would to some extent remedy the evil : Authorization to carry forward to the next financial year the budget vote for new works ; creation of special reserve funds ; eventual creation of a general reserve fund. In Italy, to reduce the number of unemployed on the outlircali of the war in August, 1914, recourse was had, as is traditional with Italy, to an increase of public works. A special credit of 30,000,000 lire was voted for this purpose in September, 1914. In a statement made by the German Federal Chancellor, in reply to a demand from the trade-unions for measures against unemployment, he said that while the Government recognizes the great importance of the question of unemploy- ment, it is not satisfied with merely allotting unemployment benefit but is always ready to procure work for the unemployed as far as it is possible to do so. During 1920, 1,000,000,000 marks were spent, 400,000,000 of which were spent for productive work for the unemployed. If the sums spent by the various States and communes for the same purpose are included, these figures are doubled. The Belgian Government has entered upon a number of public works solely for the purpose of meeting the unemployment crisis. It has also set up what is called The National Crisis Fund. In Switzerland, subsidies to the Cantons for certain works of public utility were provided as were so-called subsidies for diminished output, intendmg to cover a portion of the additional expense resulting fr.sm the employment of untrained workers. Building is encouraged by sub.sidies and loans. In Czechoslovakia, in 1919, legislation was adopted to compel communes and districts to undertake public works, the State paying two-thirds of the normal wages of those engaged. 106 THE president's confekenc^k on itnemploymekt. ON DEFEKIiING SPECiriC PUBLIC WOEKS. There is a serious apparent objection to the policy of deferring needed public works during a period of seven to nine years in order to concentrate a larger amount than normal in a depression year. On examination it will be found that no specific piece of public work will be deferred for any such length of time. This may be illus- trated as follows : .Suppose that normally the public-works construction of some given community amounts to $100,000 a year. The community is asked to defer about 20 per cent of this in normal years. The first year, public works to cost $20,000 are deferred. The construction of this particular public works will not, however, be deferred until the depression year. It will be constructed in the second year, and newly authorized public works to cost $40,000 will be deferred from the second into the third ; to cost $60,000 Avill be deferred from the third to the fourth year, and so on. Only after the fifth year would any specific public-works construction be deferred more than one jeSLV. The work concentrated in the tenth j^ear would be deferred from no earlier year than the eighth. PUBLIC HEARINGS ON PUBLIC WORKS, SEPTEMBER 29, 1921. Henry S. Dennison, manufacturer, of Framingham, Mass., empha- sized the necessity of planning public works during periods of active private industry and deferring a percentage of these for execution during periods of unemployment and depression. He stated that during the winter of 1914 the Massachusetts Legislature was unend- ingly willing, so severe was the unemployment situation after the outbreak of the World War, to appropriate money for public works, but there were almost no public projects planned and ready for the laborer. The State had never faced the situation of preparing in ad- vance for its projects. Consequently little could be done aftet the emergency arose. A five-year plan means looking that far ahead; making a general survey, estimating, and perfecting the estimate every period of a year or less. Then when a particular piece of work is undertaken it is done M'ith a view of future factors as well as of im- mediate consideration. By " withholding " work I mean having the engineering and usually the financing work done and deferi'ing cer- tain portions. Withholding during boom times of governmental works— city, State, Xational— lessens the competition with privatt industry, which boosts prices to artificial levels, so keen in ofui THE president's CONFERENCE ON CNEMPLOYMENT. 107 memories. Therefore, public work should and can be made to mesh in with private work. When there is no work to withhold, as at present, is the time to study and inaugurate such a policy. The busi- ness cycle moves in a 7 to 10 year period from crest to crest, and it is after the collapse— that is to say, now— that preparation must be made for the cycle ahead. The Governor of Massachusetts has recently proposed the policy I am stating, with especial relationship to the cooperation of the towns and cities in a State-wide policy. In a statement of Col. Arthur Woods, of Xew York, former police commissioner of Xew York, assistant to Secretary of War in charge of reestablishment of service men in civil life, 1919, he described the effect of concentrated public works in relieving unemployment and removing discontent and resentment among ex-service men in a northwestern city after the armistice. William Hard, a writer of Washington. D. C, called attention to the Bureau of the Budget of the Federal Government as an agency overlooking all other agencies: Flood prevention. reclauiMtion, and canalizing are sueli tremendous under- takings that one hesitates to advance tlieui, although everyone admits they would be beneficial. Worli of that kind could be appropriately done in times of adversity, whereas in times of prosperity it might make too great a demand on the lalior supply and l)e a cause of undesiraltle inflation. Every conference recommends tlie accumulation of public worls: for periods of adversity, but I have never noticed that any responsibility ior going ahead with the arranging of it is ever placed by tlie conference in any particular person. I should think that it would lie very advisalile and very feasible for the Con- ference to recommend to Congress to instruct the Director of the Budget, in the course of his work of preparing the budget, to look over the suggestions tliat are made by the various departments for public works wholly or in part to be accomplished by the Federal (Jovernment, both of the ordinary sorts and of sorts such as the reclamation of swamp lands, the reclamation of cut-over forest lands, the Improvement of rivers and harbors, and the development of flood- prevention Work. The Director of the Budget overlooking these projects should report to Congress in his budget statement what part of them he would execute this year, and what part he would postpone Ui future years, and in the mean- time accumulating a sinking fund for the purpose of actually getting started upon them the next time a depression came. I should think he might also be properly requested to see what agencies in tlie Government should make the engineering plans for these projects, whether they should be made by the several agencies, or should be made liy a consolidated central agency especially charged with this matter. If it should be a consolidated central agency, I should think it might very well be located in the Bureau of the Budget itself. At any rate, there is the one administrative financial, business center that the United States Government has. Some sort of agency for the State and the municipal governments is equally necessary. 108 THE president's CONFERENCE ON UNEMPLOYMENT. A statement of Edward McGrady, representing the American Fed- eration of Labor, follows : In 1920 the Federation of Labor adopted a program that we believed would relieve unemployment at once, if adopted. We advocated the building of public roads; we advocated the improvement of the waterways; we advocated the extenJion and the deepening of the canals ; and we advocated a definite reclama- tion plan for the Government to follow out. Edgar Wallace, legislative representative of the American Federa- tion of Labor, said that in the reclamation of the arid lands the American Federation of Labor believes that it sees the way to that end. When the civil war ended, the soldiers at that time found a place for themselves in the Far West, and they made homes, and they became the business men, the lawyers, the bankers, and the Senators from those sections of the country they helped to develop. It is pos- sible to-day to develop a new West. I believe that this could be done on deferred interest; that is, that the capital and interest could be repaid when the projects become remunerative. Out in eastern Colo- rado, Idaho, and western Kansas splendid tracts of land only need water. In the South and Middle West are tracts of swamp land. In the Far West, the forest lands that have been cut over, the stump- age land, the finest land in the world that is so difficult to place in condition to work is available. That would take some capital, more capital than the individual could furnish, to develop this land, make it remunerative, and make it a paying proposition. The Ameri- can Federation of Labor believes that through reclamation even the man with small means, but he must have some means, will be in a position to place a small capital to advantage to invest even more than his small capital, inasmuch as possibly placing this small capi- tal, a few thousand dollars, into a home that is sure to become pro- ductive he would be able to get credit for more than his own invest- ment and make that productive. Homes would be built; railroads would receive the benefit of this development. It would require ma- chinery ; it would require clothing. Men would settle on their farms; they would have houses. Small towns would be built, and we be- lieve that it is obvious that that is the way to a return of true prosperity. Dwight Morrow, of New York, N. Y., stated that the Department of Institutions and Agencies of the State of New Jersey has the general direction of 15 penal and charitable institutions. About half the money annually expended by the State of New Jersey is spent THE president's CONFERENCE ON UNEMPLOYMENT. 109 upon the recommendation of this board. Five years ago the board recommended that the additional construction needed be deferred because the men and material were required for war work. After the armistice plans were made for a number of necessary new build- ings. However, there was at that time still so great a demand from private industry for goods and material and a complex economic situation, causing higher prices, that it was determined to defer building until a period of depression. In January, 1921, such a period of depression having arrived, a bill was introduced into the New Jersey Legislature permitting this larger construction to go for- ward at an estimated cost of $16,000,000. This bond issue will be voted upon in New Jersey by the people in November, and is an example of the withholding of public work from a period of over- extended private business to a period of unemployment. In a statement of Burdette G. Lewis, State Commissioner of Insti- tutions and Agencies, State of New Jersey, he stated that it was the deliberate judgment of the State Board of Institutions, made up of representative business, social, and labor leaders of the State, that postponement of the construction program desired should be made in the interest of economy and good administration from the boom period of 1918 and that in 1921 this should go forward because of the state of unemp)loyment and of decreased costs during such a period. Otto T. Mallery, member of the Industrial Board of Pennsylvania and secretary of the Public Works Committee of the Unemploj'ment Conference, made a statement in behalf of Governor William C. Sproul, of Pennsylvania, that the governor had made a careful survey of the amount of public and private work now under way in Penn- sylvania with a view to increasing the amount during the period of unemployment. The governor had also pressed forward a record amount of road building in the State of Pennsylvania during the year 1921, and was in full sympathy with the extension of public works during the period of unemployment and depression. Mr. Mallery read a resolution passed by the Committee on Unemployment of the Mayor of the City of New York, 1914, as follows : That the President of the United States appoint an interdepartmental com- mittee * - * to inquire into the possibility of regulating Federal expendi- tures upon more or less permanent improvements so as to provide, except as to regular employees of the United States, a maximum of employment in years of general business depression and a minimum of employment in years when private employers are seeking an unusual number of workers, and that such committee report to the President ' * * and that such report be made public. 110 THE president's CONFERENCE ON UNEMPLOYMENT. Mr. Mallei-y read the following summary of the argument of the above committee : Our argiiniont may now brietly he summarized : 1. The time to deal with unemphjyment is when men, generally speaking, are emjiloyed. 2. Under existing conditions, jieriodic trade disturbances involving extensive unemiiloymeiit oi-cur.'on tlie average, at least once each decade. 3. Tliese trade crises are not inevitable, but are due to deep-seated and fundamental, though remedial, industrial and economic causes. 4. Pending industrial and economic reconstruction, and recognizing the ex- istence, tliough not the inevitaliility of cyclical fluctuations in the volume of trade and employment, a preparedness policy is proposed to prevent widespread unemployment and distress, liy which public improvements and exenditures, and tbos(> of quas'.-pubMc I)odies. such as the railroads, he planned on a long- term program, say 10 years: that in each normal business year of the decade there lie deferred a certain variable percentage of such a public (and quasi- public) exijenditures program ; that these accumulated deferred improvements and purchases constitute an employment reserve, so to speak, which can be utilized to compensate for decreased private employment due to the lessened demands of private employers. 5. That existence and intelligent use of this employment i-eserve will, to a greater or lesser degree, dependent upon the extent to which it is applied prevent extensive unemployment from taking place. 6. Unemployment will thus be prevented both directly, through increased public em]ilo,ynient and purchases, and Indirectly, through an increased stimulus to private business. 7. If an employment reser\e approximating 10 per cent, on tlie average, of the outlays of Federal, State, county, and municipal governments on the aeqvTisi- tion and construction of permanent properties and public improvements, added to a like one-tenth of the annual railroad expenditures for roads and permanent equipment, lie erected by means of such a deferred improvements program as has been suggested, there will result, on the most conservative estimate, a fund fcr use during the 10th year suflicient to employ at least one-tenth of the working population of the country engaged in trade, transportation, manufac- turing, and mechanical pursuits, for a period of 12 weeks, at an average weekly wage for all ages and kinds of labor of $12 for males and $7 for females. S. The proposal to defer puldic expenditures does not mean that all such ex- penditures shall be forced into a decennial program, nor does it suggest this practice to the railroads. On the contrary, it concedes that public business must take precedence over any attempt to utilize public expenditures (or those of quasi-pulilic bodies) to prevent unemployment. The great bulk of public ex- penditures would be made as at present. 0. The purchases and improvements set aside under this plan would be made exactly as is customary in the most efficiently admini.stei'ed governmental de- partments, and would not be in the nature of relief works to employ the unem- ployed. 10. In accelerating or retarding public improvements and purchases no de- viafon is projicised from accustomed methods of employment at regular wages, regular hours, and under whatever safeguards heretofore have been adopted. 11. Finally, the proposed program is recommended with a view to preventing unemployment liefore rather than relieving it after it has occurred. This pro- gram would lie much assisted by the further development of public machinery to give warning of decreased private demand for labor, and of an efficient system of pul)lic employment bureaus to organize and correlate the demands of private employers and public departments. Part V -CONSTRUCTION, TRANSPORTATION, AND MINING. CONTENTS. COXSTKUCTION. Page. Members of Coinmitree ou Construction Industries 111 Brief report on construetiou aaoi)teil by tlie Conference Seiitenibor 29, 1921 1 lU Report of the Committee on Construction Industries 112 Appendix N. — '\\'holesale prices of building- materials lis Tean spoetatiok. Members of Committee on Transportation ■ Hi) Permanent measures affecting transportation 119 Report of Committee on Transportation 119 Excerpt from report of tlie Economic Advisory Committee on transpor- tation, as submitted to the Committee on Transportation, September 26, 1921 r2u JIlXINd. Members of Committee on Jlining 127 Eecommeudations of Committee on Jliuiny, <:»ct of 105.000, in 1919 an increase of 70,000. and in 1920 another increase of 105,000, making the total number of employees for the year 1920 2,012,000. Durine- the first six months of 1920 there was unusual steadiness ^ 119 120 THE president's confeeence on unemployment. in employment, there being in January 2,000,105 employees and in June 2,056,381. During the six months the fluctuations above and below the aver- age for the year did not exceed 50,000 on either side, or a variation of only about 21 per cent above or below the average for the year. The number of employees increased very materially during July, August, September, and October, 1920, as during these months trans- portation was steadily on the increase, as shown by weekly freight- car loadings. In November business began to fall off, and the de- crease was marked in December. During November and December railroad employment began to decline. In January, 1921, there were 12.">.()()0 less men on the pay roll than in January, 1920, and 250,000 less men than in June, 1920. The reduction of employees continued through February and March, 1921, and reached its peak in April, 1921, there being 128,000 less men on the pay roll in February, 1921, than in January of that year; in March 83,000 less than in February, and in April 50,000 less than in March. In 1921 there were 410,000 less men on the pay roll than in April, 1920. There was a slight increase in the number of men on the pay roll in May and June, 1921, as compared with April, 1921, May showing an increase of 33,000 over April and June showing an increase of 11,000 over May; but even with these slight increases over April, 1921, June showed 470,000 less men on the pay roll than June, 1920. The figures of the Interstate Commerce Commisison give the number of men in totals but not classified, while the figures from the Statistical Bureau of the Eailroad Board showed the number out of employment by classes. The figures submitted by the Labor Board, however, compare March, 1921, with August, 1920. In considering comparison between these two dates it must be borne in mind that employment in the largest numerical group of railroad employees— that is, maintenance of way and unskilled labor forces— is probably very near the minimum in the month of March and near the maximum in the month of August. losing these dates the Railroad Labor Board figures show a little over 600,000 more men on the pay rolls of the Class I roads in August, 1920, than in March, 1921. As the result of the months chosen, how- ever, of the total number of men out of employment over one-half of them are embraced in the single group designated as maintenance of way and unskilled labor forces, there being a little over 307,000 less in March, 1921, than in August, 1920. In group 4, shop employees, there were over 135,000 more men 9n the pay rolls in August, 1920, than in March, 1921. These two groups alone, therefore, represent over 70 per cent of the total amount of unemployment in railroad servdce, if March, 1921, and August, 1920, be taken as a basis of comparison. The figures as between these two THE president's CONFERENCE ON "UNEMPLOYMENT. 121 months further subdivided show that of section men alone tliere were over 191,000 less employed in March, 1921, than in August, 1920. As these two months would, under normal conditions, show nearly the maximum in the annual seasonal fluctuations of section forces, ()()0,000 less men on the pay rolls in March, 1921, as compared with August, 1920, reflects cumulative effects of unemployment due to the inevitable annual seasonal fluctuation in the number of section men and other unskilled labor forces, together Avith the further reduction in forces clue to the present acute depression. Comparing, however, the same month in 1921, with 1920, the latest figures available, those for the month of June, showed very nearly 500.000 men off the pay rolls in railroad service, this being nearly 25 per cent-, of the total number employed in June, 1920. The fig-ures above discussed are pay-roll figures and shoAv, as stated, the number of men actually off the pay rolls on the date on which the figures were gathered. This, of course, is not the full measure of unemployment. It rather reflects total unemployment with a conse- quent wiping out of the entire income from wages of those who liave been dropped. We have to recognize frankly that there is a further degree of unemployment in railroad service as in other service, due to the fact that many employees are Avorking only part time, with a consequent diminution in income. In the railroad service this partial unemployment in the shop crafts is brought about by the entire clos- ing down of the shop for short periods or for certain days in the week while working the full da.j at other times. In the diiect work of transportation carried on by engine and train men this partial unemployment is reflected in a different way, for while the reduction in the volume of traffic would lay off a certain number of these em- ployees it also spreads the opportunity for employment for those who remain more thinlj^ among them, so that all of those who remain in what is known as " Pool service," which embraces a large majority of those in direct transportation service, suffer diminished earnings through diminished opportunities for actual employment. Two very different elements enter into the causes of tliis present unemployment in railroad service. On the other hand, tens of thousands of engine, train, and yard men, and clerical and station forces are without employment and off the pay rolls because the railroads have no work to offer them. By reason of the general stagnation of business the work is not there to be done; and even if the railroads were fortunate enough to have on hand available funds, this would not create employment for the class of employees just referred to. But in the case of many classes of employees in the maintenance of way and maintenance of equipment departments, the situation is markedly different. The work is actually there and waitino- to be done, and the reason that many of the employees 122 THE president's conference on unemployment. who are now idle and earning nothing are not at A¥ork on the jobs that are there is because of the financial inability of the railroads generally to undertake the work that is waiting. A very considerable amount of renewal and repair work in both the maintenance of way and the maintenance of equipment depart- ments that would under normal circumstances have been done cur- rently has been steadily deferred because of lack of available funds to purchase supplies and to meet the pay rolls for such work ; and this deferring of work, with its direct consequence of unemploy- ment, is still going on. The extent of it is indicated by figures prepared by the Bureau of Eailway Economics. In June, 1920, the total number of "bad order cars" — that is, cars out of service and awaiting repair or reconstruction — was 170,493. Their number remained practically stationary until the end of 1920, it having risen only to 182,000 in December of that year. As already stated, business had fallen off sharjoly from October to January, being only 683,652 as against 995,093 in the previous Octo- ber. In January repair and construction work accordingly began to be deferred and the number of bad-order cars mounted steadily, until in June, 1921, it stood at the enormous number of 341,337. This postponement of repair work has continued until in Septem- ber the number of bad-order cars had mounted up to 374,087, which is nearly three times the proportion of cars normally in bad order. It is, therefore, perfectly obvious that there is a large amount of work in railroad service actually ready and waiting to be started, and could be started as a practical and effective unemployment measure the moment funds become available to purchase supplies and reemploy the men now waiting idle and anxious at the gate. This committee, therefore, recommends that this Conference urge upon Congress the immediate passage of a bill such as Senate bill 2337, as a very obvious and direct means for the immediate reduc- tion of unemployment in railroad service. The discretion now vested by law in the President should not be restricted, but, inas- much as the funding provided for in the plan proposed in that bill is here recommended as insuring relief to unemployment, it is sug- gested that it would not be inconsistent to make such funding con- ditioned in proper cases upon the expenditure of the funds in such channels as will increase employment. As the committee understands the bill referred to it .is not a pro- vision for a gift by the Government to the carriers, as appears to be believed by many who are misinformed. Very few railway com- panies have been able to pay out of current earnings for additions and betterments chargeable to capital account. The compensation that the Government agreed to pay for the use of the carriers' prop- erties was measured by their respective net railway operatin their capac ty, tlms in- suring the expenditure of the money so approijriated in tlie reemphiynient of railroad labor. We further recommend the following addition to the minority report of Mr. Carter: "That any railroad company which fails or Tefuses to abide by the decisions and regulations of the Kailroad Labor Board and the Interstate Commerce Commission shall not participate in the funds provided for in Senate Ijill 2337.'' Summarizing this report with relation to railroads, we b'Cg to call attention to the fact that the recommendations of the majority of the members of the Committee on ]Manufactui-es would provide: (1) The repeal of the Adamson law; (2) the abolition of the Eailway Labor Board; (3) the granting of vast sums of money to the railroad cor- porations; and (1) for the toiling mas-;es of our country tlie length- ening of their workday and the reduction of their wages. And this has been seriously proposed by a majority of the Com- mittee on Manufactures as a remedy for present and future unem- ployment ! In addition to all other reasons for dissent we declare again, as we have declared in the committee, that questions relating to transporta- tion, such as the repeal of the Adamson Law, the question of financial -arrangements between the Government and the railroads, and the .abolition of the Kailroad Labor Board, were not proper questions for 140 THE president's CONFERENCE ON -UNEMPLOYMENT. discussion by the Committee on Manufactures, but properly belonged to the Committee on Eailroads. We feel that dissent from the report of the majority is incomplete unless it goes beyond criticism of what is contained in the report and deals with subjects which have been omitted entirely. The majority has erred as grievously in omission as in commission. ■\Ye deem it necessary at the outset to emphasize more fully the industrial disaster that' must result from any further application of a policy of wage reduction. The industrial prosperity of the coun- try is based upon the purchasing power of the masses of our people. The masses of our people are wage earners, and ability to purchase commodities depends upon their wage. Mistaken reasoning has never expressed itself more falsely or more crudely than in the decla- ration that reduction of wages would induce a return of prosperity. The industries that to-day are in the most deplorable condition are those which are affected to the highest degree by reduced buying power of the people. As a proper course in relation to this par- ticular phase of the general subject we place before the conference the following recommendations : 1. There must be adopted no policy of wage reduction. On the contrary, there must be a policy calling for the highest possible rate of wages in every industry. In terms of industrial well-being this means the adoption of a policy of placing in the hands of all of the people the highest average of buying power in order that there may be the greatest possible consumption of commodities and the greatest possible consequent demand for the production of commodities. Ee- duction of buying power stops purchasing, which, in turn, inevitably stops manufacturing and creates unemployment. 2. There should be adopted as a permanent policy everywhere busi- ness standards which eliminate profiteering, place commodities upon the market at the lowest possible cost per unit, and enable manufac- turers to base unit costs upon 100 per cent utilization of the productive capacity of plants. IManagement, having assumed the responsibili- ties which go with its functions, has no moral right to tax the public for its inefficiency by costs fixed upon a basis of part-time production. There has been jjlaced before this committee ample evidence of the fact that those commercial lines of endeavor in which there is true manufacturing and selling efficiency are suffering neither from unem- ployment nor lack of profit. We support these two recommendations with a third, which we believe is vital to any permanent relief fi'om the evil of unemploy- ment and the prior evils of mismanagement. 3. We propose uniform cost accounting and publicity for produc- tion accounts. We see in this proposal a better understanding of the ills of our industrial organization, because through it we shall be THE president's CONFERENCE ON UNEMPLOYMENT. 141 furnished with information which is essential to that understanding. We see in this proposal a constructive and logical substitute for State regulation or control. We propose that there be made available through responsible agencies voluntarily created information on pro- duction costs showing the cumulative influence of each turno\cr and the pyramiding of commission expenses. Samuel Gompees. 8 aba a. conbot. EoT Dickinson. REPORT ON PERMANENT MEASURES BY THE COMMITTEE ON MANUFACTURERS, OCTOBER 11, 1921. [Received but not acted upon bj- tbe Conference.] TAXATION. Whereas in order to substantially relieve, the country of the oppres- sive burden of war taxes, dispel existing uncertainty Avith reference to tax legislation, and encourage the investment of capital, thereby con- tributing to the employment of labor : Be it Resolved, That we urgently recommend, first, a substantial reduc- tion in the operating expenses of the Federal Government; second, the prompt enactment by the Congress of a law devoid of ambiguitj^, providing for the liquidation of the country's war debt over a long period, and for a substantial revision of taxes, equitably distributed. REPORT ON PERMANENT MEASURES BY THE COMMITTEE ON MANUFACTURERS, OCTOBER 11, 1921. [Received but not acted upon by the Conference.] TARIFF. Whereas in order to assist in the early stabilization of busii^ess it is essential that the conditions surrounding the transacting of busi- ness be established upon a definite basis ; and Whereas the early passage of tariff legislation would contribute in a great measure to give certainty and confidence to business and re- move an apparent obstacle to the revival of industry : Xow, therefore, be it Resolved, That it is desirable that a satisfactory and adequate revenue ancl tariff bill be enacted by Congress at the earliest possible date, in order to give to the Government much needed revenue, em- bracing such rates of duty as may be proper and necessary in order to safeguard the prosperity of employer and employee engaged m manufacture and production. 142 THE pkesidestt's conference on unemployment. REPORT ON PERMANENT MEASURES BY THE COMMITTEE ON MANUFACTURERS, OCTOBER 12, 1921. [Received but not acted upon by the Conference.] STATISTICAL INFORMATION ON UNEMPLOYMENT. There should be established immediately within the Department of Labor a bureau for the purpose of gathering and disseminating monthly, or as much oftener as circumstances may require, statistical information upon the state of employment, these statistics to be gathered from zones bj' telephones, telegraph, and wireless and dis- tributed as weather reports are now distributed, the bureau serving as an industrial barometer for the entire nation. REPORT ON PERMANENT MEASURES BY THE COMMITTEE ON MANUFACTURERS, OCTOBER 10, 1921. [Received but not acted upon by tbe Conference.] FREIGHT RATES. Past increases in freight rates have thrown out of proportion the transportation burden which one commodity must bear as compared with another and which one commodity must bear as compared with another. It is imperative in this emergency that the Interstate Com- merce Commission and the railroads should cooperate in an imme- diate undertaking to readjust freight rates. SHIPPING. 3IEJIBERS OF COMMITTEE OX SHUT] NO. Thomas V. O'Connor, Chairman. A. F. Haines. E. S. Gregg, Executive Secretary. John A. Penton. \Vm. S. Brown. John h. Pruett. . Carroll W. Doten. H. H. Raymond. P. A. S. Franklin. K. h. M. Robinson. James S. Gibson. Charles II. Schwab. EMERGENCY PROPOSALS FOR THE RELIEF OF UNEM- PLOYMENT IN SHIP OPERATIONS AND SHIPBUILDING. [Adopted by the Conference on Oct. 11!, 1921.] Your Committee on Emergency Measures in Shipping and Ship- building beg to report that they have given as careful study as cir- cumstances permitted to the subjects assigned, which are: {a) Ship operation (including longshoring) ; and (6) shipbuilding. The work within these two fields, as outlined by the Economic Advisory Committee of the Conference, is arranged in order as fol- lows: (1) The statistics on unemployment;. and (2) emergency meas- ures for relief of the unemployed through this fall and winter. (1) STATISTICS ON UNEMPLOYMENT. There can hardl}' be said to be a normal number employed in American shipbuilding or in American ship ojoeration, due to the unnatural expansion during the war. On the other hand, if IQll (prewar) statistics can be used as the normal, present figures would probably show overemployment — a false jDicture. As an index of the depression in ship operating, 1,241 vessels out of a total of 2,079 belonging to the Shipping Board are now tied up. The following figures on the number of men now and formerly employed in the shipbuilding may serve to illustrate the depression in that industry. The figures refer to 40 steel-ship building companies . on the Atlantic coast and Gulf. Eleven of the 40 yards are now shut down. The figures are for shipyard workmen, and do not include office forces : January 1, 1919 li-'roo January 1, 1920 94 478 January 1, 1921 ,n' ^p^ July 1, 1921 ''°' '^-^ 143 144 THE PKESIDENT's CONFEEEBTCE OSr UNEMPLOYMENT. (2) EMERGENCY MEASURES FOR THE RELIEF OF THE UNEM- PLOYED THROUGH THIS FALL AND WINTER. While some of the recommendations below may run slightly con- trary to normal practices in employment, in the emergency some give and take must be expected from all sides. For example, in normal times a large turnover is undesirable, but in times of unemployment an organized labor turnover is one means of distributing the ill effects of unemployment. (a) SHIP OPERATION. 1. ^Ye urge the desirability of having American shipowners give jsreference to American seamen. This rule has already been estab- lished by the Shipping Board as a fixed policy in all ships controlled by it. and it is understood that the same method is being generally and almost universally followed by other large shipping companies. 2. So far as practicable we urge the abolition of overtime work in stevedoring and allied occupations in order to distribute the great- est measure of employment among as many as possible. 3. Split time is desirable wherever practicable as a means of dis- tributing the limited work: (a) A percentage of the crews of ships in operation on each voyage to give way to a group of unemployed; (5) for crews caring for vessels tied up. 4. Hearty cooperation among employers and employees toward economy in operation may help to keep a greater number of ships running. A period of unemployment is no time for any side to resort to radical measures which may still further disrupt industry and aggravate existing unemployment. When the desire arises on the part of anyone engaged in the industry to change existing con- ditions, ample opportunity should be given for mutual discussion and consideration. (h) SHIPBOTLDING. 1. The committee in a general way makes a recommendation of a somewhat similar character and urges that the work in the ship- yards be divided up among as large a number of workmen as possible. 2. We strongly suggest to the Shipping Board the great desira- bility of expediting the disposal and breaking up of the Shipping Board's wooden vessels and others that are unsuitable tonnage, with the idea of providing work in the way of dismantling these ships and using the material for commercial purposes. 3. We suggest that it would be a good policy at this time to over- haul periodically and keep in first-class condition such ships tied up as are likely to be put to use soon. THE PRESIDENT'S CONFEKENCE ON ItNEMPLOYMENT. 145 4. It seems to this committee that it might be quite advantageous for American slaipyards in the United States not engaged to give their attention in some measnre to other lines of industrial activity, with a view of giving employment to the local population. REPORT ON PERMANENT MEASURES BY THE COMMITTEE ON SHIPPING. [Adopted by the Coiifcrenco on Oct. 12, 1921.] PROPOSALS TENDING TO STIMULATE AND STABILIZE AMERICAN SHIPPING. Your Committee on Shipping and Shipbuilding having submitted its report on emergency measures for the relief of unemployment has drafted the following proposals for stimulating and stabilizing American shipping with consequent regular employment to American seamen. Your committee, in considering, according to the Pi'esident's call for the Conference, '• such measures as would tend to give impulse to the recovery of business and commerce to normal," wishes to state the obvious fact that any marked improvement in shipping must follow rather than precede a revival in business and trade. Your committee takes for granted that the American people have decisively gone on record in favor of a vigorous American merchant marine not alone as preparedness for war, but as indispensal^le to healthy national industry and commerce. Before proposing remedies for the present trade depression it may be helpful to recognize that in addition to fundamental economic causes of depression the war has brought as an aftermath these, among other, evils: (a) Disruption of all normal international financial relations, making it difficult if not impossible for debtor nations to purchase for their needs either raw materials or manufactured products. (6) Uncertainty and distrust of governments as to future inter- national relations, causing hesitation on future undertakings. PROPOSALS. Decisiox ok Jones Act.— Prompt action on the enforcement or amendment of the Jones Act is desirable in order to extend aid to shippino- and to relieve it from its present uncertainty. Disposal of Shipping Board Ships.— This committee affirms its belief that the expressed policy of the Federal Government to retire from the ownership and operation of ships should be made effective at the earliest practicable date. 76290—21 10 146 THE president's confekekce on unemployment. A Marine Code and Unieied AoiriNiSTRATioN. — A single organic marine law, adequately administered by one Federal department instead of by many as at present, would facilitate close cooperation with shijDping interests and would go far toward lifting present legislative and administrative burdens from shipping. Coastwise Laws. — It is the belief of this committee that the pres- ent coastwise ship^Ding laws should be faithfully enforced and that we can with advantage at this time extend them to include all of our insular possessions. American Goods in American Ships. — It is only logical that American ships be aided to the extent that they be given exclusive carriage of federally controlled products, and every possible help and encouragement extended to American shijis cari-ying the mails. "With regard to measures for stabilizing shipbuilding, your com- mittee can only suggest that whatever will help American shipping and manufacturing will also aid American shipbuilding. FOREIGN TRADE. MEMBERS OF COMMITTEE ON FOKEIGX TRADE. Joseph H. Defrees, Clmirnmn. john h Fabev Paul -V Palmerton. Executive Secretary. George H. MeFacWen Juhus H. Barnes. -d • . „ Wni. M.Butler. Ben.annn Strong. REPORT ON PERMANENT MEASURES AFFECTING FOREIGN TRADE. [Adopted hy the Conference on Oct. 11, 1921. Reprinted fron. Part I.] Speedy completion of tlie tax bill with its contemplate.l reduction ot taxes m order that business now held back pending definite de- termination maj' proceed. Definite settlement of tariii' legislation in order that business may determine its future conduct and policies. Limitation of world armament and consequent increase of tran- quillity and further decrease of the tax burden not only of the United States but of other countries. Steps looking to the minimizing of fluctuations in exchange be- cause recoyery from the great slump in exports (due to the eco'nomic situation m Europe) can not make substantial progress so long as extrayagant daily fluctuations continue in foreign exchange, for no merchant can determine the delivery cost of any international ship- ment. REPORT OF THE COMMITTEE ON FOREIGN TRADE. [Adopted by the Conference on Oct. 11, 1921.] The volmne of goods exported from the United States has been estimated to be roughly about 10 per cent of the Nation's production. Of the total amount exported by far the largest quantity consists of the raw products of the farm, mine, and forest and those which are exported in a partly manufactured condition. The percentaoe in quantity of exports of this character which exceed 10 per cent of total production for the fiscal year 1920 includes the following: Dre.ssed meat 13. 8 Wheat 23.5 Barley 16. 5 Rye 46. 5 Rice 53. 2 Cotton 61. 5 Tobacco 44. 5 Hops 72.5 Tin plate 17. 8 Copper .51. 5 Zinc .spelter 19. 1 147 148 THE pkesident's conference on unemployment. A small surplus of production over demand for consumption fixes the price of the entire amount produced. Therefore, the problem be- fore the country is to at least maintain the existing volume of its export trade even though the volume can not for the moment -be in- creased. The country's production being 10 per cent in excess of domestic requirement, this surplus must either be marketed abroad or reduction of prices will result and cause a corresponding reduc- tion in the amount produced and result in further unemployment. Trade ordinarily involves two major risks: First, that the value of goods purchased may decline between the time of purchase and the time of resale; second, that the purchaser on credit may be unable to pay for goods purchased. A third risk is now introduced into the export trade (as distin- guished from domestic trade) by reason of the violent fluctuation of foreign currencies measured in clollars. In the case of raw materials, food, etc., essentially required by foreign countries, the effort of the American seller is to place the entire risk of exchange fluctuation upon the foreign buyer. The risk of exchange loss has, however, become so grave and is increasing so rapidly as to exert a strong restraining influence upon foreign buyers of American products, even of these necessities. The risk is increased rather than di- minished when goods are sold on credit. It introduces an additional risk as to the goodness of foreign credits. The causes which now underlie these fluctuations in the values of foreign currencies are fundamental and must be dealt with funda- mentally rather than superficially before the risks can be minimized and ultimately eliminated. They are : First, the unbalanced budgets of many foreign governments which result in constant increases in currencies, both note issues and bank deposits; second, the unregu- lated demands of the German Government for foreign currencies in order to complete reparation payments. A third cause would arise if great care is not used in handling payment of principal and interest on debts owing to the GoA'ernment of the United States. It will be observed that these present and possible future funda- mental causes of disturbance in exchange are largely political in character and will require governmental treatment. While these causes, because of their character and magnitude, require such gov- ernmental treatment, we must recognize them also as grave economic problems, requiring the best business experience and ability in their solution. The citizens of the United States can not assume the risks and responsibilities involved in dealing with these matters, nor have they the power to deal with them without the support of their Government. THE PKESIDEKT'S CONFERENCE ON UNEMPLOYMENT. 149 The following suggestions appear to the Conference to reach the heart of the difficultj' : First, the approaching Conference for Limitation of Armaments should result in bringing about a reduction in the military burdens, and consequently the budgets of nations which are now maintaining excessive military establishments, and will be a long step toward ar- resting constantly increasing inflation, increasing depreciation, and extreme fluctuations of the various foreign currencies. Second, the United States should be effective in the deliberations and decisions of the Eeparations Commissioii and other agencies, so that its influence may be exerted toward a reasonable control of the present unregulated payment of reparations by Grermany. Third, authority should immediately be granted by Congress to enable the Administration to deal with the funding of foreign debts owing to the United States Government in such a way as to avoid injury to the country's foreign trade and our employment. In conclusion the Conference points out that broad questions of policy, such as national shipping, tariff, and taxes, will have im- portant effects upon movement of our commodities to overseas markets. AGRICULTURE. MEMBERS OF COMMITTEE ON AGRICULTURE. R. A. Pearson, Chairman. Jlilo D. Campbell. Alexander E. Cance, Executive Sec- Clyde L. King. retary. J- H. Kirby. Tbonias C. Atkeson. Gray Silver. AY. L. Burdick. PERMANENT MEASURES AFFECTING AGRICULTURE. [Adopted by the Conterenoe on Oct. 11, 1921. Reprinted from Part I.] In the field of all the different industries and occupations the rapiditj' of recovery will depend greatlj^ upon the speed of propor- tionate adjustment of the inequalities in deflation. A table is attached hereto, drawn from various sources, showing the percentage of pres- ent levels above or below the levels of the same commodities and services of the prewar period. It will be observed that agriculture has reached an unduly low plane, while transportation, coal, and some branches of the construction industries are of the highest. It will also be observed that there is an entire disproportion between the price of the primary commodities and the ultimate retail price. These disproportionate increases in the progressive stages of dis- tribution are due to increased costs of transportation, enlarged profits, interest, taxes, labor, and other charges. If the buying power of the different elements of the community is to be restored, then these levels must reach nearer a relative plane. For example, the farmer can not resume his full consuming power and thus give increased employment to the other industries until either his prices increase or until more of the other products and services come into fair balance with his commodities, and therefore the reach of his income. APPROXIMATE INDEX NUMBERS BASED UPON 100 FOR 1913.' [August, 1921.] Cost of living: Department of Labor (Jlay survey) 180 National Industrial Conference Board 165 Average price to producer, farm crops 109 Average price to producer, live stock 113 Average wholesale price, foods 152 Average retail price, foods 155 J This table is reprinted from the General Recommendations In Part I. 150 THE PEESIDENT's CONFERENCE ON UNEMPLOYMENT. 151 "Wheat and flour : Wlieat, average to producer 128 Flour, wholesale, United States, average 173 Bread, retail. United States, average 173 Freight rate, flour, Jlinneaixilis to New York, domestic 1S7 Live stock and meats : Pork — Hogs, to producer 116 AYholesale ham at Chicago 166 Retail ham 197 Wholesale bacon, rough side 102 Retail sliced bacon 1G2 Wliolesale sliort side 108 Wholesale porl;: chops 184 Retail porlv chops 181 Retail lard 115 Beef- Cattle, average to producer 91 Wholesale carcass beef at Chicago 124 Retail, sirloin steak 157 Retail, round 160 Retail, rib roast IIT Retail, chuck roast 130 Retail, plate beef 112 Wages in meat packing (Department of Labor investigation) 186 Freight rates, dressed beef, Chicago to New York 214 Hides and leathers : Hides, green salted, packers, heavy native steers (Chicago) 76 Hides, calfskin No. 1, country, 8 to 15 pounds (Chicago) 86 Leather, sole, hemlock, middle No. 1 (Boston) 120 Leather, chrome, calf, dull or bright, "B" grades (Boston) 195 Wholesale boots and shoes, men's vici calf, blucher Campella (Brockton) 225 Freight rate shoes, Lynn, JIass., to Chicago 210 AYage scales in shoe industry (iiassachusetts), about 200 Cotton : 105 To producer -^"'-' Yarns, carded, white. Northern mule, spun, 22 cones (Boston) 107 Wholesale sheeting, brown 4/4 ware, shoals L. L. (New York) 118 AVholesale printcloth, 27 inches, 64 by 60, 7.60 yards to pound (Bos- ^ , 137 Wool: g2 To producer ,„, ., Wholesale worsted varus 2/32, crossbred stock white in skein (Phila- . , ' 148 delphia) , ,, AYholesale women's dress goods, storm serge, aU wool, double warp, ^_^ 50 inches (New York) --— ; ;-— " Wholesale suitin.gs, wool-dyed blue, 55-56, 16 ounces, Middlesex (Bos- ^^^ ton) 9-|^Q Freight rate clothing, New York to Chicago -^^ Wage scale in mills, about 152 THE peesident's conteeence on unemployment. Building and construction : Prices — Lumber, average soutliern pine and Douglas fir (at the mill) 128 Brick, average common, New York and Chicago 199 Cement, Portland, net, without bags to trade f. o. b. plank (Buf- fington, Ind.) 175 Freight rates — Brick, common, Brazil, Ind., to Cleveland, Ohio 204 Cement, Universal, I'a., to New York 179 Building labor : Union scale, simple average, 15 occupations 190 Union scale, weiglited average, S occupations, frame houses (3) 197 Union scale, weighted average, S occupations, brick houses (3) 193 Common labor 130 Construction costs: Cement buildings (Aberthaw Const. Co.) 161 Coal: Price, bituminous, Pittsljurgh 186 Price, anthracite. New York tidewater 198 Union wage scales about 173 Nonunion scale, about 136 Freight rates 187-209 Metal trades, union wage scale : Simple average, 19 occupations 218 Metals : Prices — Pig iron, foundry No. 2 Northern (Pittsburgh) , 137 Pig iron, Bessemer 128 Steel billets, Bessemer (Pittsburgh) 115 Copper, ingots electrolytic, early delivery. New York 75 Lead, pig, desilverized, for early delivery. New York 100 -Zinc, pig (.spelter). Western, early delivery. New York 80 Day labor, scale U. S. Steel Corporation 150 Printing and publishing: Book and job, union wage scale 194 Newspaper, union wage scale 157 Railroad, average receipts per ton-mile 177 Bureau Railway Economies estimate of railway wages based on average annual compensation, third quarter 226 General estimate all union wage scales by Prof. Wolman 189 Note. — The wage indexes refer mostly to wage scales, not the earnings, which necessarily also depend upon re,gularity of employment. REPORT OF THE COMMITTEE ON AGRICULTURE. [Adopted by the Conference on Oct. 13, 1921.] This committee represents an industry employing more workers and involving an aggregate investment far greater than in any other industry. This industry provides more than half of the raw mate- rials used in manufactures, furnishes approximately 50 per cent of the gross freight revenue of the railroads, and makes a consumers' THE PEESIDENX'S CONEEKENCB ON UNEMPLOYMENT. 153. market for 40 per cent of all manufactured goods. It is plain that an industry of 13,000,000 workers out of a total of 40,000,000 in all industries, an industry .furnishing 40 per cent of the consuming power of the Xation, a basic industry on which all industries and workers depend for food and the raw materials of clothing and many of the other necessities of living, has a powerful and afl-per- vading influence on unemployment. Every manufacturing, trans- portation, commercial, and financial enterprise, and every home in the land is vitally interested in the prosperity of agriculture. There is no acute problem of unemployment in the agricultural industry. On the contrary, this industry is absorbing or at least providing a haven for great numbers of unemployed from the in- dustrial centers. In the face of falling prices and vanishing profits farmers have maintained their production of food and other raw materials even when they had no assurance or reasonable hope of receiving for their products a price ecpal to their production costs. In instances they have done this on mere subsistence wages. Cot- ton farmers, for example, have willingly accepted from banks ad- vances of $10 ijer month with which to pay their laborers with nothing advanced for the living of their own families. Thanks to this willing and often unprofitable activity on the part of farmers,, the Nation now has a great abundance of food products and raw materials for clothing. The farmers' difficulty and the cause of much of the industrial distress and unemployment in the cities grows out of the fact that the prices received by farmers enables them to buy only about half as many manufactured products at the prices asked as they pur- chased in normal times. The purchasing power of the farmer has been so greatly reduced that he is not buying his usual supplies. He can not. In the case of farm implements the purchases have been reduced to one-third of the amount bought in previous years. Many farmers have lost their savings of a lifetime. The farm population constitutes 40 per cent of the total of the Nation. When farmers do not buy, the business of small towns stagnates, manufacturing plants restrict operations, or close, as many of them have been forced to do. The larger cities and trans- portation suffer accordingly. The farmer can not continue to exist on the present basis. His share is too low or others are receiving too much. A lessened agri- cultural income has slowed down all lines of business. General pros- perity can not return until agriculture, by far our greatest produc- tive industry, resumes normal conditions. In the interest of the great labor-employing industries of the country everything possible 154 THE president's conference OH" UNEMPLOYMENT. should be done to place agriculture on a proper ratio of exchange of products with other industries. RECOMMENDATIONS. 1. All prices and all wages should be so adjusted that a normal reasonable ratio will be established between the incomes of farmers, laborers, manufacturers, and the merchants in order that the pur- chasing power of the farmer may be restored, thus hastening the resumption of normal trade, manufacturing, and the employment of labor. 2. Railroad freight rates on commodities transported to and from the farm must be substantiallj' reduced without delay. 3. The i^rices of materials, farm implements, and supplies must be adjusted to the price level of farm products. Manufacturers and dealers must realize that farmers can not at present price levels re- sume normal buying and thereby restore normal employment. 4. The aggregate of charges between the farmer and the food consumer are excessive, and the ways should be found to reduce them. In August, 1921, the index of producers' price on beef cattle (as compared with the year 1913) was 91, while the index of wages in meat-packing plants was 186, of freight rates on dressed meat 214, and the index of retail meat prices varied from 112 to 161. 5. Better credit facilities must be provided for agriculture which will furnish funds for production and orderly marketing for long periods suited to the requirements of the industry, at reasonable rates of interest and without opportunity for the unscrupulous to charge unreasonable commissions, premiums, or brokers' charges. A recent nation-wide referendum showed that tens of thousands of farmers have been paying 6 to 10 per cent interest plus 2 to 10 per cent brokerage on borrowed money. 6. Exports of agricultural products should be stimulated with the aid of our merchant marine, foreign credits, and by such other ]-roper means and encouragements as will aid foreign commerce. 7. Any tariff legislation which may be enacted should develop and maintain a just economic balance between agriculture and other in- dustries and treat fairly both producers and consumers. 8. History is repeating itself. Previous wars have been followed by periods of depression which have in turn been followed by pros- perity. Prosperity has come with the revival of agriculture, which has provided an expanding domestic market for manufactured prod- ucts, thus restoring industrial activity with the employment of all classes of labor. This course of events is inevitable. We can only hasten or retard its progress. THE PEESIDEKT'S CONFERENCE ON XTNEMPLOYMENT. 155 The production of our farms supplemented by raw materials from the mines can provide the subsistence which will enable all industry to prosper. The adjustment will be hastened by the honest coopera- tion of all intelligent and thoughtful people. One of the chief f iictors will be the renewal and promotion of habits of industry and thrift by citizens and by the Government. The chief of all factors to hasten readjustment will be an earnest purpose throughout the whole Nation to take only what is fair and to assist others to win what thej' are justl)' entitled to have. Part VII.-UNEMPLOYMENT AND BUSINESS CYCLES-THE LONG VIEW. CONTENTS. Page. "Unemployment and business cycles — Recommendation of the Conference on Unemployment on the necessity of exhaustive investigation into the causes and remedies of periodic business depressions 157 Excerpts from report of the Economic Advisory Committee on seasons as causes of unemployment, as submitted to the Conference September 20, 1921 161 Excerpts from report of the Economic Advisory Committee on business cycles as causes of unemployment, September 26, 1921 1G3 Excerpts from report of the Economic Advisory Committee on unemploy- ment and depression insurance, September 26, 1921 166 Appendix P. — Brief bibliograpliy 167 Postscript to the report — Some results of tlie Conference on Unemploy- ment, by Edward Eyre Hunt, Secretary to the Conference 171 UNEMPLOYMENT AND BUSINESS CYCLES— RECOMMEN- DATION OF THE CONFERENCE ON UNEMPLOYMENT ON THE NECESSITY OF EXHAUSTIVE INVESTIGATION INTO THE CAUSES AND REMEDIES OF PERIODIC BUSINESS DEPRESSIONS. [Adopted by the Conference on Oct. 13, 1921.] The first tasks of the President's Unemployment Conference were to canvass the available figures concerning the munbers of men now out of work in various parts of the United States and to consider the best means of mitigating the suffering threatened by the present emergency. Now that these two tasks are accomplished, a third ■ task must be undertaken, a task that looks to the future rather than the present, to prevention rather than cure. While the proportion of wage and salary earners now out of work is probably somewhat larger than at any prevous time m our business history, the present emergency is not without Precedent. A similar situation prevailed in the winter of 1914-15, m 1908, and in 1894, to go no further back. Four times in a single generation the numbers of the unemployed in the United States have been counted by millions and the idle capital of the country has been 157 158 THE president's conference on "ONEMPI.OYMENT. counted by the billions of dollars. If the future is like the past, similar periods of misery and financial loss will recur from time to time. The work of the Unemployment Conference is not complete until it has provided for a thorough study of the problems whether we are helpless to i^revent the periodical recurrence of such times, whether we can not at least reduce their intensity and duration. The best method of handling this problem has been carefully con- sidered. Various proposals for preventing or mitigating periods of widespread unemployment have been suggested to the Conference. To deteniiine what among these proposals are practicable and to devise methods of putting the practicable proposals into effect will take much time and thought. Obviously the whole Conference can not spend months in making the necessary investigations. Instead, it authorized the chairman to appoint a committee to see this work done. UNEMPLOYMENT AS A RESULT OF BUSINESS DEPRESSION. All the proposals for preventing the recurrence or mitigating the severity of future periods of unemployment recognize that the problem is one in which the interest's of both " capital " and " labor " are involved and involved without clashing. The vast majority of the unemployed were recently on the pay rolls of private business enterprises. These men lost their jobs because their employers were losing money. Over 15,000 business enterprises have been forced into bankruptcy since the present period of depression began, and the number now operating at a loss must be very large. Unemploy- ment on a vast scale is always a result of business depression. The problem of preventing or mitigating unemployment is therefore part of the larger problem of preventing or mitigating alterna- tions of business activity and stagnation. PERIODICAL DEPRESSIONS A PHASE OF THE BUSINESS CYCLE. Such alternations have been a prominent feature of business expe- rience for a century or more not only in the United States but also in all other countries that have attained a high' stage of commercial organization. England, Germany, Austria, and France; Belgium, Italy, the Netherlands, and the Scandinavian countries; Australia, Canada, South Africa, Chile, and the Argentine; in recent years Japan and British India — have had more or less regular cycles of prosperity, crises, depression, and revival like the United States. The reverberations of these disturbances in the chief powers have been felt even by the countries in a less advanced stage of economic development. The " business cycle " is a world phenomenon. It is THE president's CONFERENCE ON UNEilPLOYMENT. 159 not to be treated as a specifically American problem or as one of passing interest. These international aspects of the problem have an important bear- ing on all proposals for treatment. Anything that we can do now or later toward mitigating business depression within o\ir own borders will prove advantageous to all the countries from whit'h we buy or to which Ave sell or lend. And conversely, the difficulties confronting American business will be sensibly lessened by the recov- ery from depression of any of the countries with which we have important dealings. The world-wide scope and the long succession of business crises do not prove that the problem of controlling the business cycle is a hopeless one. On the contrary, this history, when examined in detail, proves that the problem can be solved at least in part. For the lead- ing business nations have made incontestable progress toward dimin- ishing the violence of business crises. Each step in this direction has resulted from a wise use of lessons drawn from past experience. The creation of the Federal Eeserve system is a notable example of American achievement in this field. That measure prevented the crisis of 192(1 from degenerating into panic. Having devised a method of mitigating the severity of crises, Ave can with good pros- pects of success turn our constructiA'e efforts to the further problem of mitigating the severity of depressions. THE TIME TO ACT IS BEFORE A CRISIS HAS BECOME INEVITABLE. The business cycle is marked by peak periods of boom between val- leys of depression and unemployment. The peak periods of boom are times of speculation, overexpansion, extravagance in living, re- laxation in effort, wasteful expenditure in industry and commerce, with consequent destruction of capital. The valleys are marked by business stagnation, unemployment, and suffering. Both of these extremes are vicious, and the vices of the one beget the vices of the other. It is the wastes, the miscalculations, and the maladjustments grown rampant during booms that make inevitable the pamful process of liquidation. The most hopeful way to check the losses and misery of depression is therefore to check the feA-erish extremes of " prosperity." The best time to act is at a fairly early stage in the growth of the boom. WHAT FEATURES OF A BOOM CAN BE CONTROLLED. In any analysis of our productive processes we can make a broad distinction between our additions to national plant and equipment, such as houses, railroads, manufactures, and tools, on one hand, and the consumable goods which we produce on the other. At the pres- 160 THE PKESIDENT's CONFERENCE ON UNEMPLOYMENT. ent time we increase our activities in both of these directions at the same time, and in their competition with each other- we produce our booms. The ebb and flow in the demand for consumable goods may not be subject to direct control ; but, on the other hand, it should be possible in some measure to control the expansion of the national plant and equipment. If all branches of our public works and the construction work of our i^ublic utilities — the railways, the telephones, etc. — • could systematically put aside financial reserves to be provided in times of prosperity for the deliberate purpose of improvement and expansion in times of depressions, we would not only greatly decrease the depth of depressions but we would at the same time diminish the height of booms. We would in fact abolish acute unemployment and wasteful extravagance. For a rough calculation indicates that if we maintain a reserve of but 10 per cent of our average annual construction for this purpose we could almost iron out the fluctua- tions in employment. Nor is this plan financially impracticable. Under it our plant and equipment would be built in times of lower costs than is now the case when the contractor competes with consumable goods in over- bidding for both material and labor. The subject is one of the most profound national importance and is at least one direction in which a balance wheel could be erected that would tend to maintain an even level of employment and busi- ness. The action of the States of Pennsylvania and California in making a provision for the control of public works to this end is one of the most interesting and important economic experiments in the country. DATA NEEDED TO DIRECT THE CONTROL. In order to guide such a policy it is fundamental that an accurate statistical service be organized for determining the volume of pro- duction of stocks and consumption of commodities and the volume of construction in progress through the nation, and an accurate re- turn of the actual and not theoretical unemployment. These serv- ices are now partially carried on in the different Government de- partments. Such statistical service would in itself contribute to minimizing the peaks and valleys in the economic curve. The same warnings that would enable intelligent action on the part of public authori- ties and those who control large enterprises in guidance as to the periods in which construction should be deferred or should be ini- tiated would also serve as a warning to the commercial public and would tend in themselves to effect the ends desired. As a first step THE president's CONFERENCE ON UNEMPLOYMENT. 161 in such a program, statistical services adequate to this purpose should be immediately authorized and carried out by the Federal Government. OTHER PROPOSALS FOR PREVENTING UNEMPLOYMENT. The committee charged with foll()\Ying up the work of the Unem- ployment Conference will have to consider other plans that have been put before the Conference with the indorsement of various bodies, such, for example, as the " Huber unemployment prevention bill" now pending in the Wisconsin Legislature, the schemes for insuring a minimum return in lean years to both capital and labor with which certain corporations are experimenting, and the out-of- work benefits of trade-unions. Various reforms of the banldng and monetary systems also have warm advocates — centralized banking, stabilizing the dollar, raising discount rates earlier or more rapidly in periods of prosperity, and the like. All these topics and perhaps others unknown to the Conference might be taken up by the proposed committee on the prevention of unemployment or left alone, according as the committee saw or did not see a prospect of rendering service by an investigation. Certainly the committee should not be burdened with the duty of investigat- ing every proposal that has been or may be made for the accomplish- ment of its object. On the contrary, the committee should have power to limit its investigations strictly to those plans whose merits and defects it is able to detemiine with the means in hand. A report from such a committee prepared after due deliberation is necessary to follow out and render effective the emergency work of the President's Unemployment Conference, for no constructive pro- gram of preventing the recurrence of periods of widespread unem- ployment is likely to succeed unless it is based upon thorough in- vestigation of the underlying facts and a matured judg-ment on the merits and defects of the proposals submitted to the Conference. EXCERPTS FROM REPORT OF THE ECONOMIC ADVISORY COMMITTEE ON SEASONS AS CAUSES OF UNEMPLOY- MENT, AS SUBMITTED TO THE CONFERENCE SEPTEM- BER 26, 192L For clear thinking it is essential that seasonal unemployment and cyclical unemployment be considered entirely separately. They are very much confused in the minds of many business men. In the following schedule of remedial measures all the steps pro- posed must be accepted as affecting only part of the field. Xo method has yet been proposed which will prevent all unemployment ; but if we undertake all that we know how to accomplish we may learn to do 76290—21 11 162 THE peesident's conference on unemployment. still more. If we wait until we know how to do it all, we will do nothing. SCHEDULE FOR MITIGATION OF SEASONAL IRREGULARITIES OP EMPLOYMENT. A. To meet irregularities in demand^ due to weather conditions and holiday customs, put before manufacturers, with specific examples, advantages of (1) planning i^roduction well ahead; (2) getting deal- ers to order early ; (3) developing a proper proportion of staples ; (4) developing lines for several seasons; (5) training operators in more than one job; (0) making proper amount of finished stock in off sea- sons; (7) making finished parts, especially those of high-labor low- material nature. B. To meet irregularities in production^ due to weather: (1) De- velop national labor exchange and full employment records ; (2 ) incite employers, engineers, and some Government bureaus to invent climate compensators in building industry, in coal mining, in transportation. C. Advertise disadvantages^ involved in (1) high labor turnover, (2) excessive overhead arising from idle plant, (3) high wage rate necessarj' to compensate for seasonal idleness. D. Give publicity - to all serious attempts to regularize (such as Cleveland Clothiers). NOTES. Seasonal unemployiuent varies so greatly as among different productive activi- ties that no general program of mitigation should pretend to be more than sug- gestive. Under the best arrangements we can imagine at the present time there will be a residuum of seasonal unemployment due to agricultural needs but it may easily prove that this residuum is not serious enough to call for special relief measures. B. (2) Progress in these three subjects is so difficult but so profitable that special committees ought to be formed for the purpose of assisting it, and the additional assays on the elimination of waste in industry proposed by the Fed- erated Engineering Societies should be forwarded. Suggestions that have re- cently been made for two of these industries hint at a few of the possibilities. In building trades: (1) Allowance for small margin of profit for both capital and labor during winter months, (2) development of methods of con- ducting work in cold weather, (3) planning of work to provide indoor operations in cold and stormy weather, (4) the development of a nucleus of permanent employees by each employer, (5) organization of local clearing houses for co- ordination of building activities. In coal mining: (1) Storage of coal at the mine, (2) storage of coal by the consumer, (.3) varying selling price in different seasons to encourage off-season > Agencies of execution ; Department of Commerce and manufacturers associations. ' Agency of execution : U. S. Government. = Agencies of execution : U. S. Government and trade and commercial associations. THE president's CONFERENCE ON UNEMPLOYMENT. 163 purchases, (4) improved scheduling of coal cars, (5) improved methods of pro- duction in mines. C. Specific examples of subheads 1, 2, and 3 should be given to make the ad- vertising effective. Figures can be obtained without much difliculty with the assistance of several national associations which have given some attention to these subjects. In particular statistics of the wage levels in different industries which vary in their seasonal nature might be very illuminating. D. Specific examples of undertakings to overcome seasonal irregularity and a list of books and articles on the whole subject of unemployment will be found in Appendix P. EXCERPTS FROM REPORT OF THE ECONOMIC ADVISORY COMMITTEE ON BUSINESS CYCLES AS CAUSES OF UN- EMPLOYMENT, SEPTEMBER 26, 1921. In the following schedule of remedial measures all the steps pro- posed must be accepted as affecting only part of the field. No method has yet been proposed which will prevent all unemployment; but if we undertake all that we know how to accomplish we may learn to do still more. If we wait until we know how to do it all, we will do nothing. STEPS FOR PERMANENT BETTERMENT OF CYCLICAL UNEMPLOY- MENT. PREVENTI^'E INFLUENCES BEARING UPON CREDIT OF THE CYCLE, POINT A. A. To help toward correct estimates of the course of sales and prices: (1) Timely statistics well presented and widely distributed. B. To limit credit expansion:* (1) Critical examination by bank- ers of expansion loans, (2) strengthening rates of interest, (3) firm control of any surplus stock of gold, (4) watchfulness of merchants' and manufacturers' merchandise on order and en route as well as on inventory. C. To counterbalance : = (1) Withhold execution of public works (but not their plans or financing arrangements), (2) advertise to business men possibility and advantages of withholding postponable projects, (3) advertise to sales managers dangers of that excess of sales which results in cancellations, (4) assist all sound thrift cam- paigns. D. To reduce aggravation factors:" (1) Improve seasonal unem- ployment, (2) perfect Federal labor exchange, (3) keep up cam- paign for simplification of styles and varieties, (4) advertise ad- vantages of planning and budgeting. ^Agencies of execution : U. S. Government, Federal Reserve Board, and bankers' associa- tions, .i. a. ^ J. J J =^Ageneles of execution : U. S. Government, States, counties, cities, towns, and trade and commercial associations. "Agencies of execution : V. S. Government and trade .and commercial associations. 164 THE president's conference on unemployment. CORRECTIVE INFLUENCES BEARING UPON THE CTCLE AT POINT B. E. To help toward correct estimates of course of sales and prices : (1) Statistics as in A above. F. To expand credit resources : ' (1) Preferential treatment to loans for productive purposes; (2) easing of rates of interest. Ct. To counterbalance : « (1) Undertake witlilield projects; (2) ad- vertise to business men advantages of executing withheld proj- ects; (3) advertise to business men advantage of undertaking some work for the future, especiallj' work of high labor, low material content. H. To, reduce aggravation factors:' (1) Hasten, by publicity and otherwise, some delaj-ed price liquidations in (a) commodities, whole- sale and retail; {!>) transportation rates; and (c) labor. INFLUENCES BEARING FAVORABLY UPON WHOLE CTCLE. L. AVidest possible citizen-consumer education on cycles:" (1) Get news value into one or another of the statistical facts under A each month; (2) prepare educational pamphlets for use in schools and colleges ; (3) put cycle facts into thrift campaigns ; (4) prepare maga- zine articles. M. De\'elopment of foreign trade.' N. Administration of immigration laws with respect to cycles." O. Administration of taxation with respect to cycles." NOTES. B. (2) It is .iust where the screws must be put upon inflation tliat citizen education on cycles will do Its best service. Congress will be tempted to in- llationist measures. Bankers will need even more real courage at that point than during the discouragements of depression. We must cease the meaningless use of the word "Pessimist" and certainly cease to be afraid of being called one. Had the Federal Keserve system not been in existence, the present industrial depression would have been far more acute, and the unemployment far more pronounced. Our present banking system, however, is far from adequate and there is need of a strengthening of its control of credits, especially during periods of expansion. A study of the further coordination of our banking methods is earnestly to he recommended. B. (.3) The present surplus of gold, whose corrtK'tive international flow is checked for some years to come, offers a peculiar temptation to a false boom which would set us l)ack in international trade and bring on a quick and deadly depression. ' Agir'ncics of I'xi'ciition : V. S. CJovernment, I'ecleral Reserve Board, and bankers' asso- ciations. ' Agencies ol execution ; U. S. CJovernment, States, counties, cities, towns, and trade and commercial associations. ^ -Igencv ot execution ; U. S. Government. THE PEESIDENT'S CONFERENCE ON UNEMPLOYMENT. 165 B. (4) One seldom recognized, but important, aggravation to tlie overstocka during a slump lies in tlie " goods on order "— tlie impending inventory. Bankers can lielp tliis situation by demanding an account of impending in- ventory as tbey would of contingent liabilities, tbus bringing the need of such records before the business man. C. (2) Much more of this can be done tlian seems likely at first sight. At point A and before, the directing heads of corporations should scrutinize each of the pro,iects put before them liy their engineering staffs. They will tind 10 per cent (and a larger percentage as the turn approaches) whicli can be com- pleted as to investigation and planning, l)ut postponed as to execution; with profit to the company and connnunity as well. D. (2) To effect a distribution of labor more in accord with the need for it and to gain first-hand information as to employment conditions a Federal co- ordination of State labor exchanges is essential. It must be recognized as a job for men of first-grade ability. D. (3) Excess of varieties results in slow turnover goods and high inventories which during a slump are a peculiar aggravation, all the way along the line from raw materials to retailers' stocks. D. (4) Planning and budgeting both force specific attention upon the future. As their use becomes habitual, unbridled guessing gives way to more careful estimates — to guesses guided by all available facts. G. (1 and 2) It must not be for.gotten that the discouragement during de- pressions has to be counteracted ; without intelligent direction which looks well beyond the feelings of the moment, withheld work will be withheld all through depression and show up just after it is needed. H. Both harm and good can be done by drives at high rates and prices. The more we come to know of cycle forces and facts the more net good can be gained from such drives. Certainly recovery has been often delayed by attempts to defer liquidation too long. L. The understanding of the people nuist be the force and will be the only guarantee behind any such wide^flung efforts as are here scheduled. Witliout it results will be sporadic. L. (3) In flush times " Save your overtime" should be a slogan. M. A well-distributed export trade has usually been a stabilizer. A world war has just now placed every country Ln about the same economic hole; but in the future it is likely that again some countries will be gaining while others are in the trough. N. Our present immigration law suits present conditions excellently, but in times of more normal activity it \\ill become impossible. Congress shoulil set standards to be increased or diminished by Executive order to fit the cycle sector; just as public work is to be regiilated. O. The study of taxation as it affects cycles should be undertaken at once and in cooperation with the study of reservation of public work and depression in- surance. Consumption may be capable of infinite increase, but not at an infinite rate. Expansion can not exactly find and match that rate. When it largely exceeds it a variety of strains are set up which at some point begin to overmatch the strength of the structure and eventually bring on prostration. On the up Avave we are, taking the country as a whole and especially the ultimate consumer, stocking up. On the down wave we are drawing from stock. It is at the specula- 166 THE PKESIDENT's conference ON" UNEMPLOYMENT. tive froth on the wave of prosperity that Ave vpant to aim our strongest efforts. The normal sequence is subject to accidents such as war, natural calamity (crop failure, earthquake), and revolution In political control, in technical ad- vance, or in consumers' demand ; and In one part or another of the business structure such accidents are continuous. They can not be specifically guarded against but are best met by building up the resistance of the whole structure by the avoidance of the strains of overextension and prostration. For individual enterprises as for public undertakings safety lies in planning. When most of them can be planned well ahead we can expect a healthy swing to the cycle, broken only by occasional ca- lamity. Immediate causes of fluctuations in the purchases of the consumer and of the merchant-manufacturer may be indicated. Each of the forces which induce purchase or abstention is of course a complex of several socioeconomic influences. EXCERPTS FROM REPORT OF THE ECONOMIC ADVISORY COMMITTEE ON UNEMPLOYMENT AND DEPRESSION INSURANCE, SEPTEMBER 26, 1921. Despite the best efforts of industrial managers and public authori- ties to reduce the amount of involuntary unemployment, it must be expected that many wage earners will from time to time and through no fault of their own be thrown out of work. Thousands of these self-respecting unemployed — with savings exhausted and with the peculiar discouragement which comes from seeking work without being able to find it — are likely to so suffer in morale and efficiency as to add permanently to the already large burden of public and pri- vate charity. With the coming of each period of industrial depres- sion, there is a growing demand for some just system of dealing with this question on a dignified basis. For many years certain trade- unions have furnished a limited amount of timely support for their own unemployed members through a system of out-of-work benefits. The Cigarmakers' International Union is a noteworthy example. A few employers, also, have set aside from the profits of good years " unemployment funds " out of which part wages are paid in slack seasons or lean years. Illustrations of this tendency are the experi- ments conducted by the Dennison Manufacturing Co. and by Deer- ing, Milliken & Co. Recently the garment manufacturers in Cleve- land have imited in a plan which makes provision on a broader in- dustrial basis and assures that in lieu of at least 20 full weeks of employment in the half year two-thirds of wages shall be paid dur- ing such involuntary unemployment. The manufacturers' losses are limited to 7-| per cent of the pay roll in each plant, but all of this ^ ON UNEMPLOYMENT. 167 can be saved by providing during the half year 20 weeks of work to each employee. This plan furnishes a financial incentive to keep the workers employed — an end far more to be desired from every point of view than payments from any source to keep them in idle- ness. This praiseworthy effort in garment manufacturing has sug- gested the possibilities of the adoption of similiar methods in other industries. Any forms of unemployment insurance which would create an economic motive to regularize employment is worthy of the most careful consideration. Some industrial managers, approaching the problem from a some- what different angle and with their own natural desire to keep estab- lishments running, are now discussing the practicability of a special fund mutually created during years of prosperity to be used in pe- riods of depression — not to pay men part wages while in idleness, but to keep as large a part of the force as possible steadily employed upon needed repairs, making to stock, or other useful work. Making specific arrangements in this way through " depression insurance " to withdraw funds from use in boom times and release them in depres- sion would be a definite application of the policies advocated in the section on business cycles. Its possibilities and difficulties should be explored by several different groups of business men making a thor- ough examination of the proposition of establishing mutual depres- sion insurance associations for their own companies. Each section on seasons as causes of unemployment in this report proposes measures meant to be of permanent value. Their institu- tion can not be accomplished by fiat. We believe that hard, patient, persistent, and continuous activity will be necessary; but any re- moval from our social system of the blot of unemployment will be worth it. APPENDIX P.— BRIEF BIBLIOGRAPHY. Beveridge, William Henry, Unemployment; a problem of industry. London, Longmans, 1912. Discusses the problem and its limits, sources of infor- mation, seasonal fluctuations, cyclical fluctuation, the reserve of labor, loss and lack of industrial quality, the personal factor, remedies of the past, and principles of future pel cy. Valuable appendix on public labor ex- changes in Germany. Lescohier, Don D. The Labor Market. New York,_ Macmillan, 1919. Brilliantly analyzes the causes of fluctuation in American labor supply and demand, and discusses the methods for reducing it. Based on author's wide first hand experience as well as on extensive acquaaitance with the literature of the subject. William, R. First Year's Working of the Liverpool Docks Scheme. London, King, 1914. Commons .J R., and Andrews, .1. B., Brinciples of Labor Legislation. Unem- ployment, p. 287-322. (Critical Bibliography, p. .514-517), New York, Har- pers, 1920. 168 THE president's CONFEEESrCE ON UNEMPLOYMENT. Williams, Whiting. Wliat's on tlie Worl^er's Mind. New Yorlc. Scribner, 1920. American Labor Legislation Review. New York, 131 East 23d Street, VoL XI-Xo. 3, National Survey of Unemployment, 1921; Vol. X-No. 3, National Survey, 191.5 ; A'ol. XI-Xo. 1, Employers" Experiences and special articles. Social Insurance. I. M. Rubinow, Xew I'ork, Holt, 1913. Selected Articles on Uiiemployment — Julia Johnson — extensive bibliography. K. W. Wilson, 1921. Contemporary Theories of Unemployment and Relief — Frederick Mills — Colum- bia, Vol. 79, No. 1. Unemployment and American Trades Unions — David Smelser, Johns Hopkins Press. Baltimore, 1919. Seasonal Industries. S. and B. Webb, Longmans. Social Insurance. H. R. Seager, MacMillan. 1910. Business Cycles. W. C. Mitchell, University of California Press, 1913. A FEW OF THE CONCERNS HAVING PLANS TO REDUCE SEASONAL UNEMPLOYMENT. Hills Bros. Co., New Y'ork, N. Y., dried fruits and nuts. — Develop staples, make stock. William (Goldman, New Y^ork, N. Y., meat. — Develop staples. Joseph & Feiss, Cleveland, Ohio, men's clothing. — Plan ahead, spread deliveries, develop staples, make stock. Printz-Biederman, Cleveland, Ohio, women's clothing. — Plan ahead, spread deliveries, standardize products. Hiclfey-Freeman Co., Rochester, N. Y., men's clothing. — Low-profit lines, make stock. Markowitz Co., New York, N. Y., gowns and frocks. — Make stock. Kops Brothers, Xew York, X. Y., corsets. — Make by-products. Dennison ;\Ianufacturing Co., Framingham, Mass., paper .specialties. — Plan ahead, spread deliveries, develop staples, make stock. Kemp & Beatley, New York, N. Y., art embroideries. — Make stock. Garvin Machine Co., New York, N. Y., machines. — Make repairs, make stock. Mor.se & Burt Co., Brooklyn, X. Y., manufacturers of shoes. — Spread adver- tising, customers spread orders, make stock. Hazel Atlas Glass Co., AVashington, Pa., manufacturers of glass. — Adjust prices, educate customers to this effect. DETAIL. Hills Bros. Co., New York, X. Y. — Dried fruits and nuts. Advertised Dromedary dates. Tried to supplement demand for seasonal items with demand for year-around product. By advertising, the season for eating dates has been lengthened. Cold-storage warehouse permits of fairly even rate of pro- duction. William Goldman, Xew York, X. Y. — Meat. Introduces certain leaders or staple numbers which are sold close to cost. Joseph & Feiss, Cleveland, Ohio.— Men's clothing. The e.stablishment of standardized models made in staple materials and in such quantities that they can afford to manufacture for stock and anticipate a certain per- centage of their orders. Attained continuity by standardizing its products, concentrating advertising inducements to retailers for accepting deliveries over extended period instead of at opening of season. TJiii; PRESIDENT'S CONFERENCE ON UNEMPLOYMENT. 169 Printz-Biederman, Cleveland. Ohio.— Women's clothing. Attained continuity b.v standardizing its products, coucentratins aecialties. Reduction of seasonal orders hy getting customers to order at least a minimum amount well in advance of the season. The increase of the proportion of nonsea- sonal orders with a long-delivery time. The i)lanning of all stock items more than a year in advance. The planning of interdepartmental needs well in advance. The building up of out-of-season items and the varying of lines so as to balance one demand against another. Balancing of decrea.se in work of one department against the surplus of another l)y transferring employees. Kemp & Beatley, New York, X. Y. — Art embroideries. JIanufacture stock goods when other business falls off. When pieceworicers' wages drop considerably operators are put on a regular weekly wage. Garvin Machine Co., New York, N. Y. — Machines. Take on work other than that of regular line during slack times. Take the opportunity to make needed repairs by own employees. Produce stock during slack so far as financial conditions of company will permit. Morse & Burt Co., Brooklyn, X. Y. — Manufacturers of shoes. Advertise con- sistently throughout the year instead of (mly in season. Customers co- operate by placing oVders when the firm most needs them. Make a staple shoe which is subject only in limited degree to the fluctuations of style demand. Maintain stock department for which they manufacture heavily in times when orders are low. Hazel Atlas Glass Co.. Washington, Pa. — Manufacturers of glass. This industry, which was formerly very seasonal, has been stal)ilized considerably by low- ering prices on goods ordered at certain seasons of the year. Have educated their customers to take advantage of this, which consequently spreads deliveries. " One of the causes of ill will that weighs heavily upon the community is the whole problem of unemployment. I know of nothing that more filled the mind of the recent Conference, while dealing mainly with emergency matters, than the neces- sity to develop further remedy, first, for the vast calamities of unemployment in the cyclic periods of depression, and, second, some assurance to the individual of reasonable economic se- curity — to remove the fear of total family disaster in loss of the job. " I am not one who regards these matters as incalculable. Thirty years ago our business community considered the cyclic financial panic as inevitable. We know now we have cured it through the Federal reserve system. The problem requires study. It, like our banking system, requires a solution con- sonant with American institutions and thongh't. Many Ameri- can industries are themselves finding solutions. There is a solution somewhere and its working out will be the greatest blessing yet given to our economic system, both to the em- ployer and the employee. There is also in this great question of unemployment the problems of seasonal and intermittent industry. Some of them are incurable, but some are not, and every one cured is a contribution to the solution of these mat- ters." — Secretary Hoover, speech to the Academy of Political Science, November 4, 1921. 170 POSTSCRIPT TO THE REPORT-SOME RESULTS OF THE CONFERENCE ON UNEMPLOYMENT, BY EDWARD EYRE HUNT, SECRETARY OF THE CONFERENCE/ It is early to pass judgment on the work of the President's Con- ference on Unemployment, for the reason that the Conference is still in existence and can not finish its work for many months; but the adjournment on October 13 marked the end of two weeks' delibera- tions, and on the results of these and the general plans for continu- ing work it is now possible to render an opinion. This is the first time there has been a national conference on un- employment called by Federal authorities. In the crisis of 1907, with a President as aggressive and sympathetic as Roosevelt in the White House, the crisis was met, in so far as it was met at all, by private intervention with prominent financiers. In the crisis of 1914, again with a forward-looking President in the White House, no steps were taken by the Federal Government. The problem of '' normal " unemployment — that is, the unemploy- ment characteristic of industry in periods other than cyclical depres- sions — has never even been discussed at length. That President Harding called the Conference is a step for- ward, but the results of his Conference are more than a single step ; they are at least a stride. I write this on November 21, just a month and a week since the Con- ference on Unemployment adjourned. The following are some of its results to date. If the threat of a general railroad strike had not intervened, still greater progress would have been made in the follow up work: 1. Public opinion, for the first time in American history, has been focused on unemployment. 2. Municipal committees are organized for the first time on a nation-wide scale to relieve it. 3. A national clearing house is ready to assist the municipalities, with district representatives in the field. 4. Industry is assuming a share of its responsibility to the unem- ployed. • > Published in the Survey, New Yorlc, N. Y., under the title " A Long Step Forward." 171 172 THE president's confeeence on unemployment. 5. Municipal bond sales for public works have broken all previous records. 6. Congress has inaugurated important public works. 7. A large appropriation for the United States Employment Service is before Congress. 8. A variety of other measures have been introduced in Congress to carry out the recommendations of the Conference, such as Senator Kenyon's bill for long-range planning of public works. 9. Imjjetus is being given public education as to the nature of the problem of unemployment. 10. A scientific basis for future research is now being laid. 11. The construction industries are being organized nationally and locally under public direction, as, for example, in St. Louis. 12. In other notoriously seasonal and intermittent industries, such as the soft coal industry, stabilization studies are being planned. 13. A thorough investigation of methods for controlling the busi- ness cycle is in progress. These cover the activities of a single month. With warm appreciation of previous achievements, let me com- pare these with the results of the only previous national conferences — those called by two social agencies in New York in February, 1914, and Philadelphia in December, 1914. The report of the Secretary says: Throughout 1914 and the early part of 1915 interest In the problem of unem- ployment steadily increased. Six State legislatures — beginning with New York — made provision for public employment exchanges, and a number of cities. New York again leading, set up municipal bureaus. No fewer than six bills to estab- lish a national system of exchanges were Introduced in Congress. * * * ^ bill establishing public unemployment insurance, another point in the practical program, is being drafted by our Social Insurance Committee for early intro- duction in State legislatures. The national clearing house established by the President's Confer- ence on Unemployment and placed under the direction of Col. Arthur Woods, former police commissioner of New York City and former assistant to the Secretary of War in charge of efforts to help reestablish service men in civil life, has greatly stimulated local activities. Two hundred and nine out of the 327 cities in the United States whose population is 20,000 or more have now organized mayor's emergency committees in accordance with the recommendations of the Conference or have signified their ability to carry out the Confer- ence recommendations with machinery already in existence. Many of those cities not organized are so situated that there is.no grave local problem. The coordination of municipal agencies to meet the unem- ployment crisis, expected to reach maximum intensity in January or February, 1922, is virtually complete. THE PRESIDENT'S CONFERENCE ON UNEMPLOYMENT. 173 Regional directors have been named, covering the more important industrial districts from Maine to Oregon.^ " Clean-up " campaigns in various industries, as recommended by the Conference, have made rapid progress. The enlargement or renovation of plants and improvement in equipment are being or- dered as a direct contribution to meet the emergency. There has been a general advance of industrial operations by emplovers, according to reports to the Department of Commerce, directly attributable to the work of the Conference on Unemployment. Mr. Hoover be- lieves that one million and a half and perhaps as many as 2,000,000 men and women are employed to-day who would be unemployed if it were not for the work of the Conference. There lias been no change in the industrial situation sufficiently large to explain this. It is due to a successful appeal to local responsibility and the sense of service. This pick-up may be temporary, but it is a hopeful sign. The Federal highway act, passed by Congress on Xovember 3, makes available $75,000,000, which is to be matched by a similar amount from the States. By Xovember 15 the governors of 30 States had reported to us that within 90 days they can start 6,261 miles of highways which will directly employ more than 150,000 men. How these State undertakings will affect the general condition of unemployment can be estimated from replies received from the gov- ernors. Texas can employ 13,500 workers on an $8,000,000 road- building job covering 700 miles within the 90 days required. Georgia can provide 9,000 men Avith jobs on a $5,000,000 undertaking cover- ing 360 miles of road. Indiana can use 5,800 men; Michigan, 5,600; Ohio, 5,300; North Carolina, 5,000; Minnesota, 4,350; Louisiana, Xorth Dakota, South Dakota, and Mississippi, 4,000 each. Municipal bond sales for public works since the call for the Con- ference was issued have broken all records. Over $60,000,000 in these bonds have been recently sold in 13 States, and more than $34,000,000 have now been offered for sale. Besides $10,000,000 in State bonds have been sold and an equal amount is offered for sale. The totals for 13 States of municipal and township bonds recently sold or offered for sale are : Illinois sold $2,010,000, offered $4,500,000 ; Connecticut, $2,943,000-$1.703,000; Xew Hampshire, $345,000- $230,000; Michigan, $11,277,500-$1,622,500; Wisconsin, $8,671,000- $581,000; Ohio, $9,999,700-$l,458,000; Rhode Island, $200,000- $290,000; Pennsylvania, $4,800,000-$16,179,500 ; Xew York, $3,667,- ^ The regional directors are: Mortimer Flei.shhacker, San Francisco, Calif; Charles F. Rand, New York, N. Y. ; E. Slierman, Chicago, HI. ; John W. Ilallowell, Boston. Mass. ; Perry K. Heath, Grand Rapids, Mich. ; .Jackson .Tohn.son, St. Louis, Mo. : Winslow B. Ayer, Portland, Oreg. ; Ernest T. Trigg, Philadelphia, I'a. ; Roy Dickinson, East Oran.se, N. J. ; Evans Woollen, Indianap-olis, Ind. ; Wm. S. Rossiter, Concord, A'. 11. ; .V. L. Hum- phrey, Pittsburgh, Pa. ; John E. Edgerton, Nashville, Tenn. ; John H. Kirby, Houston, Tex. ; and James S. Gibson, Seattle, Wash. 174 THE pkesident's conference on unemployment. 370-$2,024,626 ; Minnesota, $4,362,000-$2,853,764; New Jersey, $8,028,800-$448,500 ; Massachusetts, $2,581,500-$1,035,000; Indiana, $2,004,600-$l,780,575. Totals for these States amounted to $60,- 890,970 in municipal and township bond sales and $34,706,465 in additional bonds offered. The sales and offerings of bonds of the States of Illinois, Connecticut, and Massachusetts are not included in these totals for municipalities and townships. The total amount of municipal bonds for public works issued was $113,787,230 for 415 municipalities. The Conference resolution on reclamation projects has resulted in the introduction of a bill carrying an appropriation of $20,000,000 to the reclamation fund for continuance of projects now under way. The prompt passage of this bill will give employment to more than 32,000 men. The direct employment in all these instances represents only a part of the stimulus given to industry generally. Public works involve the use of many sorts of materials. The wages received will be spent on products which give business to retailer, wholesaler, and manu- facturer. Back of these again are the resultant orders on producers of raw materials. Authorities now state that the general principle is established that if, over a period of 10 prosperous years, 20 per cent of ordinary public works were deferred and the remaining 80 per cent executed as usual, the lifting power of public works would be one-third the dead weight of such a depression as the present. Senator Kenyon's bill, introduced on November 21, providing for long-range planning of public works, is a very important result of the Conference. The preamble states that a sound economic policy requires that a larger percentage of public-works projects of the United States be undertaken and carried to completion during pe- riods of depression, when labor and capital are not fully employed in private industry, and, on the other hand, that a smaller percentage of such projects should be undertaken when private industry is active. As a means of granting the authority necessary to carry out this policy, the act provides: First. That tlie head of each executive department is authorized to prepare and to revise periodically the necessary plans for all public works and projects within his .iurisdiction, concerninK which a report has been requested by Con- gress, or a committee thereof, under the provisions of existing law, and to make the surveys and to prepare the engineering plans necessary for proposed public works and projects, in order that the work may lie commenced imme- diately and properly prosecuted when an appropriation becomes available therefor. Second. That the Secretary of Commerce shall prepare and publish monthly reports as a supplement to the current survey of business of the Bureau of the Census, or otherwise, concerning the trend of business conditions, the approach of periods of business strain and overextension, or of periods of business depres- THE president's CONFEKENCE ON UNEMPLOYMENT. 175 sion, In order that tlie President, the heads of the executive departments, the Congress, governors of States, and mayors of cities, and persons engaged in private industrial enterprises may properly prepare for and plan against such periods. The Secretary of Connneree is instructed to transmit with his recom- mendations copies of such report to the President, the heads of departments, and to the Congress. In preparing his rep)ort and recommendations the Secretary is authorized to utilize the available statistics collected or completed liy any department, bureau, office, or agency of the I'Yderal Government, or of a Slate, or by an industrial, banking, labor, or otlier association, and he is authorized to obtain such additional facts and statistics as may be necessary to carry out the provisions of this section. Third. That the head of each executive department is authorized, upon the advice of the President, to postpone the date of the commencement or retard the prosecution of such portions of the public works and pro.iects within his jurisdiction as may be necessary, in order to prepare for and to prevent a fur- ther rise in the cyclical wave of industi-ial expansion and resulting business strain and overextension, and within the appropriations therefor, to enter upon a maximum program of public works and pro.1ects as a preparation for and in order to counteract an impending period of industrial depression and unem- ployment. Where a time limit has been specifically provided within which any such work or project, or any part thereof, is to be conunenced or completed, this section shall not be construed to extend or remove such limit. The application of tlie principle of long-range planning to the cities and States is even more important than to the Federal Gov- ernment, because the public works of the former are over five times as great as the latter. Twenty-seven States composing the northeastern section of the country showed the award of more building contracts in September than in any other month this year or in any September on record. The contemplated projects amounted to $318,030,600. While this is probably due only in part to the effect of the Confer- ence call by the President, it is striking to notice that in October there were 10,635 projects contemplated in these 27 States, having a value of $394,977,600— $70,000,000 in excess of the record in September and more than $100,000,000 in excess of the previous October, and there were 8,096 contracts awarded having a value of $222,497,500. The first 15 days of November indicate that this month will sur- pass the October record. As an indispensable agency for effective future action the Con- ference came to the rescue of the Department of Labor in insisting that help be given the United States Employment Service. A bill to carry out the Conference recommendation is now before Congress. These results are admirable, but they are not by any means the whole story. The social consciousness of this country is beginning to under- stand what unemployment means. In the past the conununity has fol- lowed the line of least resistance, dismissing the problem as a re- curring hazard of modern life. I think it is fair to say that only 176 THE president's conference on unemployment. a few social scientists and industrial engineers have regarded the problem of unemployment as something to be solved and not as some- thing to be accepted with resignation. THE BUSINESS CYCLE. Any permanent i^olicy on unemi^loyment must be based in part on a study of the business cycle, since the unemployed are mainly men who have been laid off because their employers can not make profits. Social costs of cyclical unemployment must be weighed in terms of direct loss of production from idleness of men and plant in periods of depression ; the direct cost of unemployment relief as usually con- ducted ; the demoralization caused by inability to find work ; and the wastes of productiveness characteristic of " boom " periods. The quantitative study now being undertaken by a subcommittee ^ of the Standing Committee of the Conference covers, among other proiDosals for stabilizing emploj'ment, long-range planning of public works; long-range planning of construction and maintenance work by private employers; unemiDloyment insurance and unemployment prevention by Government agencies ; depression insurance by private employers ; emplojanent offices, public and private ; out-of-work benefits by labor organizations; financial devices for controlling the business cycle; and improvement of statistical indices of employ- ment and otlier " business barometers." SEASONAL AND INTERMITTENT INDUSTRIES. The constant i^rocess of attrition from seasonal and intermittent unemployment is probably even more dangerous to industry and to society than wastes from cyclical depressions. The construction industry is a bad example of such wastes, and the Conference recommendations provided — that Secretary Hoover, in continuation of tlie policy of ttie creation of local organizations inaugurated by the Department of Commerce, the National Fed- eration of Construction Industries, the United States Chamber of Commerce, etc., appoint a ccunmittee selected from the various elements interested in con- struction, sucli as financiers, labor, engineers, architects, contractors, material manufacturers, and others to be known as the Conmiittee on Construction De- velopment, which will be charged with the responsibility of preparing and making effective plans for — («) Ciioperalion with the governors and mayors in the several States in carrying on conmiunity conferences on construction to the end that local re- strictions may be eliminated, abuses done away with, and proper local atten- tion to the ellicient planning and development of construction work, as it is only 1 Members of the subcominittee on business cycles are ; Owen D. Young, chairman, New York, N. Y. ; Clarence Mott Woolley, New York, N, Y. ; Joseph H. Defrees, Washington, D. C. ; Matthew Woll, Chicago, 111. ; Miss Mary Van Kleeck, New York, N. Y. i-i-j-ji i iij:.t3i.ijii±\ J. o ouiNi<£,Bji,ivljE ON UNEMPLOYMENT. 177 through such conununity conferences thut the loc;,! situiilion can l)e pvopcrlv appraised. {h) The prompt removal of uiuiecessury or inevitahh' limitations and restric- tions which have retarded real coiistnicilon activity. This national committee is to he named shortly. Meanwhile an example of local activity set in motion by the recommendations of the Conference is to be found in the city of St. Lotiis, where May ir Kiel at once issued a call for cooperation aniono- organized labor, building-material men, investment bankers, and other interests con- cerned in ptttting through a building program, and appointed Direc- tor of Public Welfare Cunliff to direct conferences to this end. On November 21 Director Cunliff, representing the public in these negotiations to revive building, reported that h<.^ had called together bankers, material men, contractors, and labor representatives in sev- eral conferences and had received from the public pledges aggre- gating $14,250,000 in new building projects, to be launched before April 1, 1922, if wages of building mechanics are reduced 20 per cent and material prices 10 per cent. One-third of the total will be launched within 30 days of the time these cuts are made. A day or two previous to this announcement the Building Trades Council had agreed to consider a reduction in wages, provided $12,000,000 worth of building was pledged for the first four months of next year, and provided the building-material dealers would pledge a substantial reduction in prices of materials. The president of the Mercantile Trust Co. had previously promised that his comj)any would reduce the commission on loans if labor would reduce wages in the interest of a building program. With a total construction shortage in the country estimated at be- tween ten and twenty billion dollars and with an industry conscious of past offenses and eager for public leadership, a real opportunity is offered elsewhere as in St. Louis in following up the Conference recommendations. Plans for work by the Standing Committee in certain other indus- tries where seasonal unemployment is a radical problem have advanced since the Conference adjourned. The problem in each industry is so peculiar, however, that no general plan can be dra^n. The Conference on Unemployment, held montlis before relief measures are usually needed — that is, before January to ?ilarch — composed largelv of manufacturers and organized by the Department of Commerce, thus emphasizing industrial rc-sponsibility. reached unanimous agreement on a complete emergency program, approved a laro-e number of constructiA-e suggestions for a permanent program, and provided a continuing committee to follow up the worJv and make more intensive investigations. 76290— 21 12 178 THE president's conference on unemployment. The recommendations were the unanimous view of representatives of the American Federation of Labor, the Railway Brotherhoods, United Mine ^I'^orkers, and other labor organizations, the United States Chamber of Commerce, the National Manufacturers' Associa- tion, Government officials, bankers, social scientists, engineers, and others. The immediate results have been excellent. We must now " carry on " through a difficult winter and at the same time strengthen the foundation for permanent results. o DATE DUE )ATE jSterubiSfy Loai rKS o. -J^F^ ML U' WTM: PRINTED IN U S.A. 1^^^ %%^.VN 41^'^ ,;• V