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Releaae for the morning
papexs of March 18,1918
STATE14ENT FOR THE PRESS
stated
The Chairman of the Capital Issues Committee/that· the work
of the Committee during the week had been particuiarly ~eavy,
a very large number of applications having been received .. He
atatei that the total number of applications zeceived up to
date, and. 1.ispoaed. cf by the Cornlilittee, was 96, aggreg6..t.ii:6
~232 868 91'8 .
T:-t3 r.a.jority of -::t.e apJ:r·ovala given ·Jy .;he .
Co._._i-~ ~c,J oovared ~enewala -nd refunding ·Operations.
A~~- :z:ovc...La
of .L ..ew. i~aues, J:}unici:;;>al or otharwise, represented in Uiany
c~acs reiuctiona of the amounts orl~inally ~ppliad fo~.
T~e
nut1ioer of caaes for~ally ~e·olined ia comparatively 3ma.ll .:=-or
~~e =eaaon ~hat ~ ~reat aany of the applications are being_ .
au~prea~eQ at the ~:urce either ;ecause the applicanta rea~~zoa
·::;~.=.:~ ~:1.a ):,ur:;oaes ior ·-;~ich t;ildy :-:ould.. desire to isaue ·.:t_,;:,-:~ri·G. i~a :;e~e. not compa.tiole tri t:1. t:1e national interest& or -udb-tt.:se
·~:1e loc2.l comU!i tteaa were abl~ -~o .:.mpress UJ:On wouli--ol3 ...._.~.li
can·~ o :v::.i :3 :>~int of vie·.{ beford ~::e a.pplicat ior~s rea.chtl~ ;~ld
""en-r"" ~o . . ··1
.., 1 "' .::.. J. u -t..: tt ~e - ·· ....... ,..h · n6 t on.
04-l..L
IJ
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A ~~eat ~eal of doubt and, in aoce cases, protest naa been
dlicite~ ~y Sdcretary l!cAdoo•a earlier vtatementa with res~ect
·t;c, ·~!1e cieairabili·t;y of restricting unnecessary building opert..-
tic~a:
Some lettar3 ~ave been received, particularly ~rom ~he
Pa?J.flc Coast, fro~ buil~ir.g aaaociationa and carpenters
un1on3, ~roteatir.J againat what they conaidered an embargo
u~on ;heir activities.
So~e of th~se letters were transmittea
?" ·S~c~~·;;a.ry iicA:~co ~Y :.:r. Samuel Gompera, and Secretary l:cAci.oo
..:.:.a ;1r1t·ten a. letter to :fr. Gompers further amplifying hia
via;. This letter reads -d follows:
. ' ...
344
.-.
OFFICE OF SECRETARY OF THE. TREASURY
WASHINGTON
Jla.rch 15, 1916.
My Dear ilr. Gompeta:
I have your letter of February 18th, inclosing copy of
a resolution adopted by the Building Trades Council ·of San Francisco in which ·it is stated that I have been report~d in the
·public press as having "appea.led to pro·perty· O\mers not to construct any homes or buildings G.uring the Ua.r." This is ·entirely
erroneous. I have s~id that buil~irig operations which are not
required to protect the health or provide for the comforta~le
needs of our people, or to supply facilities necessary for the
proper conduct of busineds esaential to the successful prosecution of the ~ar, shmuld be postponed.
As you know I have no autnority to &ireot that buil~ing
be curtailed. I have ~erely suggested that unn0cea-.
sary work of th~t kind ~e postponeQ until th~ end of the u~r.
Such postponement would, I am sUxe~ help ~in the war, but eve~y
patriotic 1~n must be determined by his oun conscience in the
matter and oust ~ecide for hi~aelr if he can postpone the erection
of a con·t~Llj;ilated building un·Gil the wa.r is over. Compliance
;-;ith this sugges:bion Llay cause some inconveniences rthich are to
be greatly deplored, but auch inconveniences are an unavoi~~le
incident to ~a.r. The situation i~st ~e viewed from a nation~l
and not fro~ a local stan~point.
oper~tions
Ue are engaged in a. colossal war, in which the safety of
Am\3~ica ia seriously i~p3riled~ ·We ca.n not r~in ·the 11ar m1less
every reaource of tae nation i~ carefully ~ua~anded an~ u~ei ~ith
the utnost ~ntelligence. The groat fin~nci~l o~e~ations of t~e
Gove~ntlent, greater th.3.n those ever und.e:cta.::en by a:ny goverm:1ent
in the history of civilization, rJ.9.ke it eGs6ntial tha,t ·3ve-.r·y
unnecessary expen~iture by the goveLnttent, ~Y the st~t~s ~nd
wunicip~lities and by ~rivate corporations ~nd incivi~uals, 0e
avo id.e:'.. :rhile t:1.e "\13I i~ .in p~·ogress.. Unless ·this ' is done, it
t1ill ~e ic:;;>o·sai~le for the people of the United. Sta.tes to fu:Lniah
the :10ney ·.1hi·ch the Governu1ent must ha.ve to support its solC:.ie:Ls
a.n! sa.ilora r:ho a.:re ahed~ing their '";.)lood. for us upon thz ~J.ttlafield .
..
X-810
.(3)
The issue a.t s·~a.ke is \VOZ"ld freedom .1nd \70rl6. denocracy.
Germany, drunk ~ith the lust fo~ power~ would rule the world.
We· are coming to recogniz·e t~:.::t nhether the wa.r is to be w9n
·
or lost depends upon whether ~e ~re willing to make the sac~ifice
of blood, treasuxe an~sa~vice neceasa.-y to enable ~sand our
allies to ·a9hieve the honora~le anc lasting peaoe to whic~ ~e
asp.ire. We a::e in~rea.singly ool:~int; to a.pprecia.te that t0 rna.ke
possible such a victo~y~ evexy w~n~ dO~~n ~ni child ill~at be
willing to ~o their ut~ost. The£e·oust ~e no slackers in Uall
Street~ non~ in the homes, none on the farms, none in o~
industries. Cdpit~l and labor ali.ke must do their utmost.
..
Thex·e ·~1ua:t be no ".7aste~ no ex·tra.vagence, no unnecessary expenditure. T~e N3.t·ion has need of all its oan-power, of all its
weal~h, of all ita. r~eourcea.
The successful fin~ncing of th~ ~ar depends in large
part upon the current savinzs of the people, upon the difference between '";That is i:lade a.nd tlhat ia spent. Ha.bi ~s of thrift
~ust ~e stimulated~ and i~ neec be~ every dollar of savings
ahouli be lent to the Govern~jent~ ~here is no better inveat~ent
for the poor and rich alike, th~ a United States· Governt1ent
loan bearing interest. Thcae ~ho fail tc ~~ve ~ha.t they should~
and to lend their aa.vings 3..3 neadei tc tha G0vern:;1ent,. will f.:.il
to do theil" full d-q.ty. Thoaa ~7l7.o nish ",jO tr0a.~uz.3 th~ reDenbrance of patriotic.service c~n h~ve no c~~ice. They ~u2t ~o .
their ut~oat tv· acxve ~nd t~ei= utmost to ~~ve ~n~ be wi~:in; to
len:: the Gov,3rnLlen·i; u.ll they t_j.:..ve.'
·
I hope you uill use youx influence to ~~3uade t~~ mewbers of the Builiing Tradea Jouncil o~ San Fr~ncisco t:_~t t~a
:-:.-, "''""
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Gov v-..-n,.... ent . has need o.:- c..;..J.J. ··--:- ·. ··· ·n~y , al., ... ~,_c.; : -=-~Jo- 3 '"" - ......... ::.
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.a.
mJ.teria.l., and all tlle tra.ns::K,~t;a.tion ·fa.cili·tiua ..,jha.t cs.n 0e ~.ta.d.e
available.· I should like thet1 to l;no\1 that i:ten d.:Ce needed .;o
build ships~ to build nousea to house men ~orking in the shi?yards, ·to er,3ct plants to ~::o:'..uce war ~~1at0r i.:l.l~ to ::un o-w..
r~il~oads., to o~0~~te o~~ in~~at~ies, an~ to ;~v~uce ~oo~
raquired·by tha al~ies in~ oursdlves. ·The~3 nae~a arc ~l~ea~y
great and will increase., not lesaen, as -'c:;h~ i.7J.Z pzobre~~ea. If
our ·:;J.ga-ea.rners are una."ule ~co find employment for \l.hic~1. ·t~l.3Y
~re ~est fitted and uhich t~0y woul~ prefer~ o~ if th~y ~::e
un.J.'ble to find ernJ?lOyraent wh0~o it r:ould be :-aoat ccnv0ni0n·t fo::
·the...- to ~o-"k J the o·"'·)o· .. -t-:unl.· ·:-:y 1· D p·.Lvt>v v - .:. -. ..:.v.1.:: "' ... ~ ···- .)u.
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:.. a.t::io·tio. se:a:vice ir1 t~1is p·~:::i·:J6. of natictL:.l ~t::Joa ·:y Be:;:.:in:;
o·ther kinds· of emj;i:i.vY~~·t--~nt, ..."..nG:~ if need "ue, :.:'='v!:l~ to .)·t!:0::
.&.
C:..ist::icts -whe:.:.e
\IO£}~
i.:; to
~e
had . ·
X-810
(4)
No one knows better than you tt.e need of the hour. Save
in exceptional cases, to expend money or to use material or
employ labor in the ·~roduction of vvhat is not needed to win
the war, as I view (t would be an unpardonable waste ar.d
would, in effect, be lending aid . . o the enemy.
I am .:::;ure that you are in accord. with the ..:rinciple underlying the views I ...:;.ave expressed ,~nd that you will, in that
splendid spirit of patriotism and service which has ~haracter
ized so strikingly your every action and utterance during this
war, join .,·ith me in appealing to .:-very good ci"'Cizen to help
the Government by conserving and using to the best advantage
those invaluable r2source3 of the na.tion, labor anc~ ;;JateriaL;,
xithout uhich free~o~ and democracy cannot be save~ for the
\VOild.
Very truly yours,
Signed ..... r.'. G. HcADOO
S.:wliuel Gor.1pcr s, Esq. ,
President, American Federation of Labor,
~ashington, D. C.
In addition to this letter, a communication has been received by the Chairman of the Capital Issues Committee from
r1r. J. B. Densmore, Director of the United States Employment
Service of the Department of Labor, containing
practical suggestions concerning this problem.
reads as follows:
-----
..
sem~
very
The letter
X-810
(5)
DEPARTl4E}JT OF LABOR
U.S.Employment Service.
Washington, March 14,
~918.
\ Hon. Paul !4. Warburg
Chairman, Capital Is~uea Oomm.itt.ee,
Washington, D. c.
Sir:
In responae GO your inquiry, growing out of the protest of
oappentera• ~iona against th~ policy of your co~ittee of restricting, ao far as practicable, ·the use in buildin6 construction of ~apital, oredit and materiala, I oeg to eay: ·
rhile it is true that the la~or situation in the United
States is comp~ratively satisfactory, it ia e~ually true that
~onditiona could be gr~atly impro7ed through a aore scienti~io
~!atribution of labor.
In many iuatances wen are engaged in
new linea of endeavor at advanced wages leaving unfilled their
original fielis. For examRle;·in the vicinity of mtL~ition
plants, one funds farm hands at work in factories, 3hile the
· farmer criea in vain for ilelp, . etc.
.
The uniona are quite correct in their statement that they
were told work a~aited them at the ahipyards only to learn upon
application there that auch was not the caae.
•
+
It has been stated ;robably ~uite frequently that the Emergency Fleet Corporation (Shipping Beard) was badly in need of
hml$ed.s of thousands of workers. This is quite true.
Butt he
Emergency Fleet Corporation could Piesently give employment to
onlv about 10,000. Thid wide va~iance between needs and eaployment capacity is caused by the i~bility of the ~hipyar~s to
houae the armies of ship-ouiliera necessary for ~he pro~uction
of the tonnage of which our nation is ao badly in need, and to
wnich it is entitled. ~ere carpenterd, for instance, find that
the policy of economy guidin'{ your coauui ttee curt&.ils or halts
their work, they can find pler.ty of vitally neoe3aary work, and
a patriotic ·~vork, in building ho_.es for those i.ho .are bJ.ilding
our ships - if not on the shi~s themselves.
Of.oourse, it is underJtood that change of aomicile by
workers entails aacrifice and expense. But you will not find .
the laboring ~ of America heaitstiug about the sacrifice of h1s
cowfort ·and oor.v~nience ~hen the nation calls.
....
X-810
(6)
~
To transfer labor from surplused to depleted sections, the
~~p~o~ment Service will shortly have a revolving trav~ling fund
oL ~250,COO. This may be used to advance transportatlOL, to be
later reimbursed by the intended employe. For the rush work .::.f
th~ E~ergency Fleet Corporation on the Pacific Coast, aLd in
cer\t':-ln ,army construction, fun0.s foT ·transportation are being
proVLieu uy the deuartments affecte::~, for the use of the Employm3nt Service.
~
Carpenters, shipbuilders, structural .Lron workers, and in
fact .;.Very kind of mechanic, in large m.lr.;bers, could find
aasistance in reaching ready anci remunerative employment upon
ap . :;lication to the u.-S. Employrr.ent Service, a branch of which
.
· ca.n be found in every large city.
Res1:ectfully,
Signed. .... J. 13. DENSl'lORE,
Director, U.S.Employment Service.
@FedFRASER