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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE FOR E M E R G E N C Y M A N A G E M E N T

OFFICE OF ECONOMIC STABILIZATION
WASHINGTON, D C

February 5, 1943
JAMES F. BYRNES
Director

Please see that the enclosed copy of the minutes of the last
Board meeting is shown to Mr. Eccles.




MIJHITBft OF BOAED UKEXIM&
January 2f, 1949, lltOO A* M*
Bast tri&£t Vihlt© House
Presents the Dlreotor (Proelding)
Mr. ^^ iekard
iir* Jones
Miss Perkins
ifir. Bell (Aoting Seeretary ©f the Treasury)
Mr* Ss&th
tfr. looles
Mr* lioltatt
Mr*
Mr*
26r* Flanders
Mr* Johnston
llr» MoSutt read a m»i3or*jrmum an the relationship between a&rieul*
tural «&g«« and the irupply of fans labor. Hu petnteU out that ^tm «ag«« r«*
©•iT»d ^y farm labor ar« »till# for th« laott part, «ub-standard« Th« avaraga
hourly «ag« la still last than 30 o«nt## and th» a^nrag* daily «aga Is #S«80
without board* fhoao «ago«, Hr* JioHutt atatod9 aro substantially lost than
thoso paid la mrm the lovost paid industrial oooupatloas*
Thi* disparity, aooording to reports roooi^od from the flold by the
B*$Ioyaont Sorfioo9 is am of tho prinolpal faotors *)hioh aak© it difficult
to rooruit apdmiltural labor*
Xho aitufttion is ospoolally aouto with rospoot to vorkors ongagod in
tho produotisn of dairy jxroduots, poultry and 11T»stock, whioh aro yoar»around
oooupation«. tho situation is aggravated by tho faot that vorkors 1 A thoso
aotiritlos aro gonorally tho saost •killed of all farm laborora, and by tho
further faot that roany dalrlos aro looatod in industrial areas, nhor« tho do~
ssutid for labor at higher vagos is strongost* this situation will grow norso
in 1843, statod Mr* MofiUtt* iMryy and liro stock production aro already
y g
to show tho offoot of thl« shortago* i*hilo wagos oannot bo rolled upon as tho
solo or oTHEi tho principal aothod of soouring addltlotwl labor for thoso aotivitlos, it i»iH bo nooossary to inoroaeo wago ratos if production Is to bo raaintainod*
Furthoraoro, Mr* UoKutt indioatod that wide m g o dlsparltiof oxist
within agriouituro lts«lf# thus placing faraore In the position of bidding
wagos up by j^t*ating froa oaoh othor*
fho rojss^y will bo difficult to work out, said Mr* HoMutt, but a
nuabsr of altemativs approaches aro availabltt* lie stated that in Bnglaad
tho saao situation was not by tho p o s i t i o n of a national atolswaii wage for
agrioultur*, with additional looal wlnlaiiB wages sot by wage boards ia tho
various agricultural areas* Another possibility, ho stated, would bo to stab*
illto agricultural wage rates at the storing rate for unskilled Industrial
labor la the particular area*



- 1 -

Miss Perkins ^oisted out that th© &T«7uf0 straight t i » e daily wags
for cooaoa labor in industry If $5* 08* Mr* tads exi>r*t*«ad the opinion that
i t *ould be Impossible to raise far* vuges to the ianrel [WWililif In industry*
Sride&tly, he suld, the farmer believer that ha i s uaabla to pay higher *«§•»»
and to double hid wage b i l l would not solv$ tho roblen*
Mr* idSutt agreed that wage increases alone would aot solr® th« . robl**,
but contended that such increases war
- •->-3nsibl* to » solution*
Mr* Vieterd ptte%«d out that> wMX« fara «mg#» are s t i l l Um$ they
Incr^sad «nbatfis»tAmliy einc« 1934. Mr. 'Ktihitt edaittsd that thi. l i true
but « l s o poiattMi out that faxv income has iacra^s*>d fur aox** th&a farss wngae, the
«t&t«d that wm are running short of «ftnpo»inr9 sad that
agriculture has alway» constituted a rorfivUMil ^u. ly of «ur*jlua labor, but ti**t
th
ham now b
h t d
Dir^otor .toquirad vh»th«r tho in^rt&tion of Utalefea labor
|
llr» Me»att atatad in reply tfcat sabstejatial oaa^#re of Mexicans would
witoi a gtt&raatoad waga of 30 c«nt& p«r hour^ or tho pramili&g
whiehoTtsr la Uighar. Ih&fta gufertuatoas were inslstad itpoe by tho Hsxlcen
«r» ttiekard al#o ttfttod tfcat fe© ia^ort&tlcsB of BahftJMMi labor i a t o Florida i s b«iiig eouitidartd^ but that Florida grow«rs ar© rafOn&Bg to feign «^atract»
th« Bop&rlffiimt of Agriculture to obtain dom##tie worlc#rs uales *9MdHl t&at
labor w i l l also bo brought in* !r« Hek&rd «apr«8^«d th« o;iaian that
for th-is nm that the grow«r^ b«ll.«roiifti.Vwnqiifibor would b« Sfor® d o c i l e .
The Uir^otor «5:;..T*«.-,ftd the o; iaion that «$ a»»t uxo a l l «vnil&bla poured*
of map l y , &M that the importation of Itehts«.n labor would free siapotwr for oth#r
Kr« MfiXutt stated thet h# aad Socr^tary Siekard h&d fTvg*T*& a
for uutoaisftion to the Cangrts^, » calling for the recmitB«Gt «i»d £rfcns?i*>rt&tion of
a land Ar«y of about 3#3OO^900 migratory farm workers* l a this eoim^ctlo» y tho
Director su^astdd that the Aserlcui r«egicm liB sv^ry loc&lity bts enlisted to
eooparmte in this rsoruitBent ^rograa» Mr. Wlcicard stated that i t M i .-ldimeo to
us® th« Offlee of Sivill^Q £efee®.e. tho Amerloaa Legion, aervle® clubs, «ad othtr
tOM^imity yrgEiii^&tiong, Hov;#Tar, h« @^pr«6?-©d th« ot^iniort tht;t i t vouXd be ii»»
po*«?iblG to T'AIJ ©melMsively Q^OQ this voluntary -type of ioctsl labor. Edgnlar
migratory workers sruet d o be r*oruited to tx%,Y«l for eouaidera^e distemcw as
^art of a land Arsy. I» order to afford suffielent soeuritQr &nd iacentive to
attract lndlTidu«lf! into aueh an ir«y 9 i t w i l l be neeeevary to a s u r e them l a
f certain stated wages sad iroridUig oonditl.ms* the Xdrctetor agreed•
Mr. Beeles stated that wages are not the only
Agriculture and to fare labor* He pointed out that the
porous than eirer before ixs our history B and y e t w$ fa«e
foods E M fibers. The rml threat i s a *&U*Q of future




iacvinti?* ^, lio*bl« to
foraer If now mar®
a shormige of ®mm
ins ?eurtty, based upee a

«•

*

thraatonad shortage ©f labor regardlasa of *aga*# upon fcha tfcortaga of raaohinary
and th® rationing of oartain eeamtial
l
Hr* Flandora atat*d that a laud 4ray would not aatai tha problaa of
year~arouad agricultural labor for dairy and li?oatook production. 3a anggootoA
that It slight bo pooolblo in may looalltiea to roorult anil train monon for
work*
tbo liirootor and iir. " toicard also otatoa that a progrma of inooativ*
pay»»nt« to induo* l^oroaood agrioultural produotion na§ bulng drafted for
tation to tho Congrota* Mr* Jonw* incfuiroS «h*»th«r this was a «ub»idy. Tb»
Dirootor replied that i t m* not a «ub«iay# but an inoo&tiva payattt d«*ipuid
to ooaponamto tho fanaar for produoing aero iaatoad of iota* Mr* goolaa polatom
t^ th« difficulty oa»aofl by thmtm ino«ntivw pa^aasta whan othor oaaontial eropt
i5ar« in eonpotitiozi with th» or opt for whioh tmoh payraent* war« offorod*
Broum O3cpro#a«d tb« opinion that tha Uoagroca would sot b* to ssaah
oppoaod to ine«ntiv» paymonts aa to out-right «ubeidiaa«
tha iirnotor also road a toXogram froa Mr* Patten atating that iiagaa
and priaoa wm not &m orux of tho food problestf and that tha aaat importairt
oontribution to inoroaao produotion viould hm the jiroviaion of oroait and
viaion dad^Bifift to inoroaaa the proctuotion of imrm than l#000«000 family
farsara «hoa« tm&p&mr i» not now Cully utilitod.
Board adjourned at 18i4S to swot again on f^abmary S* 1045 at
UtOO A* n.