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(y /U fïù j Ó ¿^66 jl ^ i^ u ]Mr. Leopard: ¿r ^ t4 4 * f • C^L C> Here is a s\$^ested draft oT a reply along the lines I think might be useable* ¿5 April 10, 19U5- Hr« Lewis Merrill, President, United Office and Professional Workers of America, I860 Broadway, Hew York 23, Hew York. Dear Mr. Merrill: As Mr. Socles is temporarily absent on a visit in the West, I wish to acknowledge re ceipt of your letter in regard to the problem of the white collar and professional worker. Mr. Socles' views in connection with this general subject were set forth in an ad dress before the Hational Industrial Conference Board in Hew York last November, and I enclose a copy for your infornati on. Sincerely yours. Blliott Thurston, Assistant to the Chairman. Enclosure ET:b Form F, R. 511 TO___________Mr» Leonard_________ FROM________ Mr. Thurston________ U/5/U5 REMARKS: Could you not handle the attached yourself on behalf of the Chairman? CHAIRMAN'S OFFICE © April 9, I9I4.5 Mr* Lewis Merrill, President, United Office and Professional Workers of America, i860 Broadway, New York 23, New York. Dear Mr* Merrill: Chairman Ecoles has been away from V/ashington for two weeks and in his absence your letter was referred to me for reply* Mr. Eccles is on record as favoring higher wages for the great mass of relatively low paid workers. This group unquestionably includes a large number of white collar workers, many of whom have failed to share proportionately in the generatingrease in earnings during the war. It is Chairman Eccles* view^ii^ we are to maintain the level of national income necessary for full employment after the war, markets for business must be large and consumer income high. Wages and salaries constitute such a large proportion of total income, that unless average earnings of workers are high enough to purchase a fair share of the goods and services produced, markets and employment will be r'educed. Mr* Eccles is also on record as strongly favoring continuing economic stabilization during the remainder of the war and as long thereafter as is necessary to prevent rising prices from dissipating the people* s savings and hindering the attainment of full employment after the war. Proper timing of wage increases is, therefore, critically important and neither the nation nor the workers will be served if wage increases are too sharp or occur at such a time as to result in infla tion. It is desirable to eliminate inequities and to improve the general structure of wages whenever and to whatever extent possible within the limits of the economic stabilization program but I am sure Mr. Eccles would disapprove of increases that resulted in further material advances in prices and living costs. I should prefer that this letter not be used publicly as a statement of Mr. Eccles* views since he may not wish to accept respon sibility for my statement of his position. If you care to quote him directly, I suggest you refer to his speech before the National Industrial Conference Board which is published in the Federal Reserve Bulletin for December, 19MJ-» In this speech, Mr. Eccles outlines his views more clearly and fully than is feasible in a letter. Sincerely yours, Elliott Thurston, Assistant to the Chairman United Office and Professional Workers of America LE W IS M E BB ILL, P r a iid e n t • LE O N W . B EB NE Y. V ic e -P r » * ld e n t • IO S B P B H. LE V Y , V ic » - P i e » id e n t JOHN J. STANLEY, Secretaiy-Treasurar (on b a n to U. S. Army) • BICHABD LEWIS, Acting S»er»«a*y-Treaanret Affiliated 1860 w i t h the C. I. O. B R O A D W A Y C i r c l e NEW YORK 7 - 4 3 9 5 2 3. N. Y Mr. Marriner S. Boolas, Chairman Board of Governors, Federal Reserve System Federal Reserve Building Washington, D. C* Dear Slrt There has been an awful lot of talk about the plight of the white collar and professional worker hut no one has done anything about it. Meanwhile, the depressed status of the salaried employees constitutes a growing menace to our nation’s postwar prosperity program and unneoessarily slows us in the exeoution of our wartime tasks. We in the United Offioe and Professional Workers of Amerlca-CIO have oome to the conclusion that the problem must be dealt with on a non-partisan basis. Therefore, without requiring employees to take up membership in our union and without requiring employers to enter into contract with us, we are making available the not inconsid erable facilities and experience of this organization to cull employers and employees for the purpose of securing salary increases in aooordanc# with government regula tions. The widespread belief that salaries are frozen is not sustained by the facts. There are some eighteen different methods of securing increases for salaried employees under the decisions of the National War labor Board. Where it is desir able the mechanism for negotiating salary increases can be a one-purpose employee's representation committee provided for in the National Labor Relations Act. We are undertaking to provide this service in the belief that continued misuse of white collar labor adds to the difficulties before management and that actually proper compensation of white oollar workers makes possible considerable saving in administrative costs. Costs oan be stabilized and at the same time a salary struoture oan be provided to sustain maximum efficiency, eliminating the catastro phic turnover oharaoterlstio of white oollar employment at this time. Salaries therefore, can be raised without threatening existing profit levels. If the course we urge is followed the national well-being will have been served and employers and employees alike will be the gainer. On April 9th in the 200 communities in which our union is located, a campaign will be initiated by us drawing attention to our proposal and urging a concerted effort to deal with it at the community level. We are certain that our campaign will secure wide support. It would be extremely helpful to us to have the benefit of your personal reaction to our proposal. We will not make any public use of your comments without your express permission. The eoonomio and political stability that would acorue to the nation if the problem of the white oollar workers were rationally and promptly handled is apparent. We do hope you agree that the time has arrived to do something about it. m : ts http://fraser.stlouisfed.org/ .-^jjMiopwa-1 Federal Reserve Bank of St. Louis April 9, Ml»5 Mr« Lewis Merrill, President, United Office and Professional Workers of America, I860 Broadway, lev York 23, New York* Dear Mr* Merrillt Chairman Socles ha« been away from Washington for two weeks and in his absence your letter was referred to me for reply* Hr. Socles is on reoord as favoring higher wages for the great mass of relatively low paid workers* This group unquestionably includes a large number of white collar workers, many of whom have failed to share proportionately in the general increase in earnings during the war* It is Chairman Socles* view if we are to maintain the level of national income necessary for full employment after the ym r, markets for business must be large and consumer income high* Wages and salaries constitute such a large proportion of total income, that unless average earnings of workers are high enough to purchase a fair share of the goods and services produced, markets and employment will be reduced* Mr* Socles is also on record as strongly favoring continuing economic stabilisation during the remainder of the war and as long thereafter as is necessary to prevent rising prices from dissipating the people1 s savings and hindering the attainment of full employment after the war* Proper timing of wage increases is, therefore ^critically important and neither the nation nor the workers will be served if wage increase« are too sharp or ocour at such a time as to result in infla tion. It is desirable to eliminate inequities and to improve the general structure of wages whenever and to whatever extent possible within the limits of the economic stabilisation program but X am sure Mr* Secies would disapprove of increases that resulted in further material advances in prices and living costs* 1 should prefer that this letter not be used publicly as a statement of Mr* Socles9 views since he may not wish to accept respon sibility for my statement of bis position* If you care to quote him directly, 1 suggest you refer to his speech before the national Industrial Conference Board which is published in the Federal leserve Bulletin for Deoesber, 19kU* In this speeoh, Mr* Socles outlines his views more clearly and fully than is feasible in a letter* http://fraser.stlouisfed.org/IBWsdme Federal Reserve Bank of St. Louis Sincerely yours, Elliott Thurston, Assistant to the Chairman
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