Full text of Monthly Labor Review : August 1939, Vol. 49, No. 2

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

MONTHLY
UNITED STATES DEPARTMENT OF LABOR • BUREAU OF LABOR STATISTICS
************* +

H U G H S. H A N N A , E D I T O R

CONTENTS
Cover:

Stacking hay in Utah.

+

*************

193${¡yfl,4$ No.2

SEP 13 1939

Special articles:
Work of District of Columbia Small-Claims Court_________________
Productivity of farm labor, 1909 to 1938__________________________
Housing of dependent aged______________________________________
Collective bargaining with employers’ associations_________________
Frequency of pay days in American industry___________________1__

mw Page
269
282
295
302
311

International labor relations:
International Labor Conference, June 1939________________________

325

Social security:
Industrial retirement plans in Canada____________________________
British unemployment-insurance fund in 1938_____________________
Old-age assistance in the United States 1938: A correction________

333
337
342

Vacations with pay:
Paid vacations under collective agreements in Great Britain________
Law providing vacations with pay in Ireland______________________

343
347

Industrial and labor conditions:
^ Labor conditions in the millinery industry_____________________ _
J Occupations of WPA workers______________________ ____________
Professional and economic status of teachers in rural schools_______
Third 5-year plan of Soviet Union________________________________

350
355
357
358

Negroes in industry:
Restriction in employment of Negroes in New York_______________

360

The older ivorker:
Unemployment of older workers in New York_____________________

364

Housing conditions:
Tenant selection for public low-rent housing projects_______________

367

Cooperation:
Operations of credit unions in 1938_______________________________

370

Labor laws and court decisions:
Work Relief Act of 1939_________________________________________
Status of Federal child-labor amendment_________________________
Government Reorganization Act_________________________________
Court decisions of interest to labor:
Prohibition of employment of married women in public service
held void________________________________________________
Small loans at usurious rates held a public nuisance___________
163839—39----- 1


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

374
376
378

382
383

Contents

II

Labor laves and court decisions—Continued.
Court decisions of interest to labor— Continued.
Closed-shop contract with employer having a local monopoly---Picketing involving misrepresentation------------------------------------Right to picket where all employees are stockholders---------------Strike not necessarily terminated when normal conditions re­
sumed___________________________________________________
Compensation award for heart attack------------------------------------Cancer held compensable under New Jersey law----------------------Canadian act penalizing discrimination against trade-unionists---------

Page

384
384
385
386
386
387
388

Industrial disputes:
Trend of strikes________________________________________________
Strikes in April 1939------------------------------------------------------------------Activities of United States Conciliation Service, June 1939--------------

389
390
398

Cost and standards of living:
Improved standards of living for low-income farm families--------------Standard of living on Maryland farms------------------------------------------Living costs of woman workers in New York, 1938--------------------------

400
403
404

Minimum wages and maximum hours:
Establishment of regional offices under Wage and Hour Act------------

406

¡Cages and hours of labor:
Taxable earnings, in 1937, of workers under old-age insurance---------Salaries in Federal Government Service----------------------------------------Baltic countries— Wages in various industries-------------------------------Canada— Salaries in fire departments, January 1939----------------------Denmark—Agricultural wages, 1938-39----------------------------------------Great Britain—
Changes in wages and hours, 1938, Great Britain and Northern
Ireland__________________________________________________
Increased bonus in engineering industry---------------------------------Italy— Wages, 1936 to 1939---------------------------------------------------------

407
411
413
430
433

433
4
438

Labor turn-over:
Labor turn-over in manufacturing, May 1939--------------------------------

471

Employment offices:
Operations of United States Employment Service, June 1939-----------

475

Trend of employment and p a y rolls:
Summary of reports for June 1939:
Total nonagricultural employment-----------------------------------------Industrial and business employment--------------------------------------Public emplovment--------------------------------------------------------------Detailed reports for industrial and business employment, May 1939__
Unemployment in foreign countries, second quarter of 1939-------------

484
484
488
490
501

Building operations:
Summary of building construction in principal cities, June 1939-----

505

Retail prices: *
Food prices in June 1939________________________________________
Electricity and gas: Price changes between March and June 1939---Retail prices of food in Manila, March 1939----------------------------------

510
516
517

Wholesale prices:
Wholesale prices in June 1939------------------------------------------------------

519

Recent publications of labor interest:_____________________________

524


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

This Issue in Brief

Collective Bargaining with Employers’
Associations.
One of the major efforts of labor
unions in the United States has been
to eliminate or reduce the factors of
wages and hours in competitive costs
by standardizing working conditions
throughout an industry or area.
As far as American trade-unions are
concerned, the approach through gov­
ernmental action has been secondary
to standardization by means of col­
lective bargaining. Organized labor
has encouraged parallel organization
of employers in order to obtain ex­
tended coverage under one agreement.
It is estimated that there are about 3%
million workers covered by agreements
negotiated with national, regional, or
city-wide employers’ associations. Al­
though there are a few examples of
industry-wide and regional collective
bargaining in this country, most of the
instances of association dealing occur
on a city-wide basis. There are
probably 5,000 local or city employer
associations which deal with various
unions. Examples of association deal­
ing in various industries are described
in the article on page 302. The prev­
alence of such bargaining in various
industries and trades is also given.
District of Columbia Small-Claims
Court.
In a number of States courts have
been established for the specific pur­
pose of handling claims involving $50
or less. These courts operate infor­
mally and expeditiously, and generally
without the presence of lawyers, and
the total cost to the plaintiff usually
does not exceed $1 (the filing fee).
Although varied types of claims are
dealt with, wage claims form an im­

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

portant part of the work of these
courts. Such a court was established
in the District of Columbia in 1938. A
description of its work and summaries
of cases handled are given in an article
on page 269.
Frequency of Pay Days.
That the majority of workers in
American industry receive their pay
weekly is indicated by a survey made
by the Bureau of Labor Statistics, the
results of which are given on page 311.
Of the total workers covered, over 66
percent were paid once a week, nearly
24 percent every half month, and about
8 percent every 2 weeks; the remainder
were paid on some other basis. To
some extent the frequency of pay days
shown could be attributed to State
legislation on this point. Thus, in
New England where with few excep­
tions employers are required to pay by
the week, 98.2 percent of the employees
covered by the survey received their
pay on this basis.
Paid Vacations in Great Britain.
Paid vacations are granted to about
4 million workers in Great Britain
under the terms of collective agree­
ments, according to a recent estimate
of the British Ministry of LaborEstablishment of holidays with pay by
voluntary agreement was recom­
mended by a special committee, and
since the committee’s report was
issued, in the spring of 1938, the total
number of persons so benefiting has
increased from 3 to 4 million. The
major holiday policies are summarized
in an article on page 343. In general,
the vacation period is 1 week after 12
continuous months of service, and
workers who leave their jobs before
their vacation is due do not necessarily
I II

IV

This Issue in Brief

lose all the benefit under agreements,
but may be granted either vacation
time or payment in lieu of vacation.
Canadian Industrial Retirement Plans.
At least 70 percent of the wage and
salaried workers in Canada are em­
ployed in establishments with no
formal retirement provisions for their
personnel. On the basis of number of
employees covered, self-administered
contributory and noncontributory
plans are still considerably more im­
portant in the Dominion than rein­
sured contributory schemes, but the
obvious trend is toward the latter.
Normal retirement before the age of 65
is becoming more and more common,
particularly among women. Slightly
over 50 percent of the Dominion plans
which include both sexes fix an earlier
retirement age for women, the most
popular combinations as to ages being
65 years for men and 60 for women, 65
for men and 55 for women, and 60 for
men and 55 for women. Page 333.
Restriction in Employment of Negroes
in New York.
The increasing d i s c r i m i n a t i o n
against the employment of Negroes
in New York, except as manual and
unskilled laborers, is a matter of
serious concern, the New York State
Temporary Commission on the Con­
dition of the Colored Urban Popula­
tion reports. This investigating body
found that financial and mercantile
establishments employing hundreds of
thousands of white-collar workers
throughout the State do not hire
Negroes for white-collar jobs. Ex­
cluding the garment and fur trades
and related industries in the city of
New York, the factories for the most
part afford no openings for colored
people. Insurance companies, banks,
and public utilities have definite poli­
cies barring or restricting them from
employment. Page 360.
Housing of Dependent Aged.
Recipients of old-age assistance are
in some cases pooling their small
resources and providing living quarters
for themselves on a cooperative basis.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

This they have done by taking over
and operating houses to whose operat­
ing expenses all contribute, enabling
them to provide jointly comforts
none of them could afford singly.
There are several apartment houses
either devoted entirely to the needs
of the aged or in which some of the
dwelling units are set aside for them.
There is also a colony providing small
cottages where recipients of old-age
assistance may continue to live inde­
pendently. Page 295.
Credit Unions in 1938.
That credit to the amount of nearly
a quarter of a billion dollars was
made available for small borrowers
through the services of the 7,265
credit unions in existence at the end
of 1938 is indicated by reports to the
Bureau of Labor Statistics. Assets
totaled about $142,000,000. More
than 1,800,000 persons are estimated
to have been members of credit unions
at the end of the year. Not only
did these organizations furnish to the
borrowers (who must also be members)
money at moderate rates of interest;
they also returned to their share­
holders dividends aggregating some
3 million dollars. Page 370.
Productivity of Farm Labor.
During the past three decades, the
average output of farm workers in­
creased about 50 percent. The prin­
cipal farming regions and the major
crops showed wide variations in labor
productivity. The greatest increase in
average output per hour in the major
crops was in wheat, estimates for this
crop showing an increase of 117 percent
between the 1909-13 and the 1934-36
averages. Outstanding among recent
technological changes is the rapid and
widespread increase in the use of trac­
tors. Reductions in the amount of labor
required per unit of output have been
accompanied by serious limitations on
market demands for farm products.
These developments and their signifi­
cance for industrial as well as agricul­
tural labor are discussed in a summary
of recent official studies. Page 282.

MONTHLY LABOR REVIEW
FOR AUGUST 1939

W ORK OF D IS T R IC T OF COLUMBIA SMALL-CLAIMS
COURT
By E d w a r d M. C a r r , Clerk, Small Claims and Conciliation Branch, Municipal Court
of District of Columbia

IN RECENT months a great deal has been written concerning the
sweeping reforms brought about by the new rules of procedure govern­
ing the Federal courts throughout the country. These rules have
contributed much toward the simplification of judicial procedure and
toward speeding up calendars of the Federal courts, in cases involving
large amounts.
In the light of this experience, it seems both wise and timely to
consider what has been done for litigants at the lower end of the
economic ladder. Those at the top, litigants with funds and the
benefit of counsel, always manage to have their rights protected.
Not nearly so simple has been the problem of dealing with the legal
rights of those who, either as plaintiffs or defendants, often find them­
selves handicapped because they have neither money nor a lawyer.
They are bewildered because all too often delays, technicalities,
court formalities, and the expense of litigation consume the subject
matter of their claims before they have an opportunity either to assert
them or to present a defense when they are brought into court as
defendants.
Students in social and legal fields had long been aware that a large
segment of the population, particularly in the wage-earning and
lower-income groups, regarded the courts as institutions provided
primarily for the rich but inaccessible to the poor man or to the man
on a limited budget. A movement was begun to remove from the
courts the stigma of the impression that there is one type of justice for
the rich, and another type for the poor. The outcome was a system
of small-claims courts.
Development of System of Small-Claims Courts

In 1913 the first small-claims courts were established, one in the city
of Cleveland and one in the State of Kansas. Two years later the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

269

270

Monthly Labor Review—August 1939

State of Oregon followed with the establishment of a small-claims
branch in the District Court in Portland, and soon thereafter extended
the system on a State-wide basis. Within 5 years a similar court was
established in Chicago, and in 1920 the Municipal Court of Philadel­
phia established a conciliation, small-claims, and legal-aid division.
In the following year, 1921, California, South Dakota, and Massa­
chusetts established similar systems. Within a few years such courts
were created in Minnesota, Iowa, Idaho, Nevada, Vermont, New
Jersey, Connecticut, Rhode Island, Colorado, and Utah. In 1934 in
New York the State Commission on the Administration of Justice
strongly recommended the establishment of small-claims branches
within their municipal courts. Acting on a special message of the
Governor, such legislation was enacted.
The fundamental features are similar, if not identical, in the various
courts. The jurisdiction has usually been limited to claims not
exceeding $50; registered mail, or sometimes even ordinary mail,
has been employed for the service of process; the statement of claim
has been standardized and made uniform; technical pleadings have
been abolished; a quick return day has been established, with pro­
visions assuring a trial on that day; provision has been made for the
installment payment of judgments and special safeguards have been
provided for those pertaining to wage claims.
Small-Claims Court for District of Columbia, and its Characteristics

Two well-known students in the field of legal aid, John S. Bradway
of Duke University and Reginald Ileber Smith of the Massachusetts
Bar, in their report on Growth of Legal Aid Work in the United States,1
traced the development of this movement and described it as “more a
national than a local p h en o m en o n .T h is statement was both correct
and prophetic. After a long controversy and strenuous opposition,
the Congress of the United States in 1938 enacted a measure for the
District of Columbia, which was promptly and enthusiastically
approved by President Roosevelt, establishing the Small Claims and
Conciliation Branch in the Municipal Court. In reporting favorably
on the legislation, the District of Columbia Committee of the Senate
stated:
The purpose of the bill is to improve the administration of justice in small
civil cases and make the service of the municipal court more easily available to
all of the people whether of large or small means; to simplify practice and pro­
cedure in the commencement, handling, and trial of such cases; to eliminate
delay and reduce costs; to provide for installment payment of judgments; and
generally to promote the confidence of the public in the courts through the pro­
vision of a friendly forum for disputes, small in amount but important to the ,
parties. It was emphasized before the Committee that such cases frequently
become tragic in their implications if not carefully and speedily determined.
1U . S. Bureau of Labor Statistics Bulletin N o. 607.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Work of D. C. Small-Claims Court

271

The Senate report was adopted by the District of Columbia Com­
mittee of the House of Representatives which added—
No alternative can solve the underlying difficulties inherent in the present
municipal court system, with reference to small-claims litigation. This legisla­
tion affords the only comprehensive means of solving the problem.

The following innovations and reforms were provided by this act:
(1) Voluntary arbitration and conciliation 'procedure.—'This service
has been made available to the public without regard to the amount
involved in the controversy and has proved remarkably successful in
preventing lengthy and often bitter litigation, in large as well as
small cases.
(2 ) Jurisdiction.—The jurisdiction of the new branch is exclusive
in cases involving $50 or less. This prevents either plaintiff or de­
fendant from “jockeying” a case into another court to accomplish
delay or for any other improper purpose. It compels the parties to
remain in the Small-Claims Branch and to have their controversy
determined there. It prevents plaintiffs who file large numbers of
suits from obtaining unfair advantages over defendants. One year
before the new branch was opened, in cases of this class, only 212
trials were obtained before the entire Municipal Court. Nine times
that many defendants, a total of 1,810, were able to obtain the privi­
lege of a full hearing by the judge of the new branch during its first
year of operation. These were obtained without filing pleadings of
any kind and, when they wished it, without the necessity of engaging
an attorney.
(3) Preparation of plaintiffs claim by clerk.—The plaintiff simply
walks into the clerk’s office and describes his complaint; the papers
are then prepared for his signature, and immediately sent out for
service by the marshal or by registered mail. Such service had never
before been provided in any court in the District of Columbia. The
need for the service is amply attested by the fact that in 1 of every 10
cases filed, that is to say in 2,350 cases, the clerk of the branch pre­
pared and filed the original suit papers. The nature and extent of
this new public service can be gauged also by the fact that the clerk
interviewed more than 6,000 persons in connection with his official
duties during the first year of operation.
It would be difficult to imagine a more practical and effective means
of helping litigants in the lower income groups. This service is re­
served by law for individuals and is not permitted to be rendered by
the clerk to partnerships, corporations, or associations.
(4) Substantial reduction of costs.—The new, lowered, fee of $1
covers the cost of filing the case, receiving a trial, and having a judg­
ment entered. Plaintiffs without funds need no longer show that
they are actually destitute or “paupers” in order to obtain the serv
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

272

Monthly Labor Review—August 1939

ices of the court without charge. The old familiar “Affidavits in
Forma Pauperis” have been specifically prohibited by the law, remov­
ing that stigma from a plaintiff who may not be able to pay the usual
filing fee.
By employing registered mail, the cost of service becomes only 20
cents, instead of the 50 cents formerly payable to the United States
Marshal for his service.
(5 ) Short notice period.—As compared with the old 20-day period
of notice, cases are now made returnable in as little as 5 days, and no
case is set for longer than 15 days. The average is about 10 days
from the date of filing, but in wage claims the minimum return period
of 5 days is almost always used.
(6 ) Service by registered mail.—The adoption of service by regis­
tered mail has been very successful. This method of service has been
employed in almost 19,000 cases, and has in 4,135 cases proved to be
76 percent effective, as against the 52 percent reported under the
former service by the marshal. In addition, Congress has authorized
service by individuals especially appointed by the court.
(7) Statement oj claim.—The statement of claim has been made
uniform, as the law itself prescribed the language of the statement;
there is no leeway for “fancy pleading.” The old familiar summons
reading, “The President of the United States to the Defendant,
Greeting:” has been abolished. The statement contains a brief
reference to the nature of the plaintiff’s claim, the date it arose, and
the amount claimed. The defendant is told that he may come to
court with or without an attorney and present his defense. He is also
told that if he admits the claim but wishes the privilege of paying it
off in installments, he may come to court and state the circumstances
to the judge.
In other words, a defendant, presented with a claim of this kind,
does not require the services of a lawyer to interpret the matter for
him. He can easily understand it himself.
(8 ) Elimination oj delays.—Provision of trial in contested cases on
the first return day has been accomplished by the simple expedient
of refusing continuances except when both parties desire it for the
purpose of settlement or when actual illness prevents attendance in
court.
The law requires that the judge “make an earnest effort to settle
the controversy by conciliation.” This was a very wise provision. It
has created an atmosphere of friendliness resulting in many successful
settlements. In 1 year 261 cases have been conciliated and settled
by the judge without a trial, and more than 1,400 cases have been
settled and dismissed by the parties themselves before reaching the
courtroom. The courtroom is no longer an arena for the display of
the talents of counsel. Rather it is a forum in which the judge seeks

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Work of D. C. Small-Claims Court

273

to get at the truth and the right of the matter, stripping the case of
all formalities and arriving at a just decision on the merits. The law
itself has brought this about by providing—The judge shall conduct the trial in such manner as to do substantial justice
between the parties according to the rules of substantive law, and shall not be
bound by the statutory provisions or rules of practice, procedure, pleading, or
evidence, except such provisions relating to privileged communications.

(9) Judgments payable in installments.—Thousands of people would
feel ruined if compelled to pay their obligations in one lump sum.
With that in mind, Congress provided that defendants against whom
a judgment is entered, whether uncontested or after a trial, shall have
an opportunity to pay off the claim at regular intervals (except in
case of wage claims) and in amounts based on their ability to pay.
Perhaps nowhere in the law are the social considerations so carefully
applied as in this feature. Its success is indicated by the fact that
2,189 defendants in 1 year sought and obtained this privilege, and
all but 18 percent of them were able to comply with the court order.
(10) Oral examination of defendants in wage claims.—In its desire
to protect the wage earner, Congress provided that one suing for
wages should have various safeguards. A wage earner filing a claim
for unpaid salary can have a case set down for hearing in 5 days,
obtain the benefit of reduced costs, and can easily have a case filed
without prepayment of costs. The notice goes out by registered mail
and is delivered promptly. The employer must be prepared to meet
the claim on the return day. If the judgment goes against him, he
must pay it at once; in this class of cases installment payments are
prohibited by law. If the claim is not paid promptly, the employer
may be brought into court at regular intervals for oral examination
under oath as to his financial status, his bank account, automobile,
stocks, bonds, and other assets, and interrogated fully as to why he
has not paid the judgment. On the average, in only 10 cases per
month has it been necessary, upon employers’ defaults, to bring them
in for such oral examination.
(11) Night sessions.—Night sessions are provided for litigants who
cannot attend court in the daytime. The law makes mandatory at
least one night session a week. Hundreds of cases have been heard
at these night sessions for the convenience of litigants whose absence
from their jobs for even part of a day was expensive and might have
caused the loss of employment.
(12) Right to jury trials.—The right to jury trials has been pre­
served but has proved of little interest to the litigants, as their greatest
desire seems to be for a quick determination of their cases. In fact,
only 3 jury trials resulted in an entire year.
(13) Right to appeal.—The right to appeal has been preserved also.
This feature, likewise, has been of no particular significance, for there

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

274

Monthly Labor Review—August 1939

were only 11 applications for writ of error during the first year. The
appellate court granted but one and that one was soon thereafter dis­
missed.
Typical Claims Cases Handled
The following cases, selected at random from those handled by the
court, indicate in a very real, personal way the advantage afforded to
the public under the new system.
A H O U SE SE R V A N T COLLECTS

$4.50

The first person to seek and obtain the services of the new branch
on the morning of its opening was a young colored woman who claimed
that her mistress had withheld wages in the sum of $4.50. She was
therefore the first person to be interviewed by the clerk, to have her
suit papers prepared by the clerk, to have her case filed without pre­
payment of costs, to receive the benefits of registered mail service,
and to benefit by a 5-day return day. Her case was filed on Tuesday
and a hearing was obtained on Saturday. Judgment was entered in
her favor. When the defendant showed signs of forgetfulness in the
payment of the judgment, she was summoned to court for oral exami­
nation. The result was that the complainant received her money in
full and the case was entered “satisfied” on the dockets a few days
thereafter.
This same plaintiff could not have known how to prepare her case
properly under the old system; would undoubtedly have needed the
services of a lawyer, would have had to wait more than 3 weeks for the
return day of her case, would probably have been subjected to dilatory
motions, would not have had the privilege of supplementary examina­
tion of the defendant, and might easily have become convinced that
as far as her small claim was concerned the municipal court was of no
value.
T H E STORY O F F O U R W A IT R E S S E S

Four young waitresses, employed at a local restaurant, had claims
for unpaid wages. Three of them, having claims for more than $50,
could not file suit in the Small-Claims Branch. They employed an
attorney who filed formal suit for their claims in the older branch of
the Municipal Court. They were thus obliged to wait more than 3
weeks for a return day. The fourth young lady, dispensing with the
necessity of counsel, promptly obtained the services of the clerk, who
prepared and filed her claim (which was for less than $50), had it
served by registered mail, ordered a short return day, and judgment
was entered against the restaurant keeper. An attachment was
promptly issued and the contents of the defendant’s cash register were
seized. The employer then attempted to claim that the money was

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Work of D. C. Small-Claims Court

275

not his but belonged to a corporation which he said was the true owner
of the restaurant. The judge rejected this contention and subjected
the entire fund to the payment of the plaintiff’s claim, with all costs,
even including the cost of the attachment bond, which under the new
law had been made a chargeable or taxable cost in the case.
The three young plaintiffs whose claims were too large to file in the
Small-Claims Branch never succeeded in recovering a cent.
R E F U S A L O F A L A N D L O R D TO S U R R E N D E R T E N A N T ’S C LO TH IN G

Typical of a large number of cases was the instance of a young
married couple who had moved into a small furnished apartment and
paid rent for 2 months. The husband having lost his employment,
they were unable to pay the third month’s rent, which was due in
advance. Accordingly, they decided to “double up” with relatives
and attempted to move out, only to find the landlord had placed a
padlock on their rooms and refused to surrender any of their effects.
Instead of resorting to a costly replevin suit involving the posting of
a bond, the couple consulted the clerk who utilized the conciliation
feature of the court and invited the landlord to come before the judge
with a view to conciliating the dispute. The landlord was at first
adamant but under the persuasion of the judge (who pointed out that
clothing, bedding, and personal apparel were exempted from his lien),
the landlord relented. Following a short common-sense discussion
of the matter, he voluntarily surrendered all articles of clothing,
bedding, and personal attire, and surrendered also the claimant’s
carpenter tools. The tenant, on the other hand, agreed to leave with
the landlord, as security, a floor-model radio. This was obviously a
fair and equitable determination of a troublesome controversy. It
was all settled in 5 days, without the necessity of obtaining a lawyer
and at a cost of only $ 1, the usual charge in such cases.
E M P L O Y E R FO R C E D TO P A Y A C O M PE N SA T IO N CLAIM

An employer who had failed to provide workmen’s compensation
insurance for his employees had been taken before the Workmen’s
Compensation Commission and ordered to pay $20.50 to an injured
workman. He ignored notices from the compensation commission,
and the worker, being penniless and actually hungry, presented these
facts to the clerk. The claim was filed for him without cost, and
judgment was entered in a few days. The employer still ignored the
claim but was compelled to pay it when his bank account was attached.
This is not a typical case, because most employers are quick to honor
judgments of the court. It illustrates, however, that those with just
claims usually can collect through the new system.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

276

Monthly Labor Review—August 1939
A C A R P E N T E R COLLECTS H IS W A G E S

A carpenter had been engaged to repaint a garage door and construct
a fence. The home owner refused to pay his claim for $35. The case
was brought to trial promptly, both parties appearing without an
attorney. The carpenter contended that the work was given him on
a contract basis of $35. The owner denied this and claimed that the
man was to get $5 a day and had completed the work in 2 days; he
further contended that the fence was less than 8 feet long and that
the job was not worth more than $10. The carpenter insisted that the
fence was more than 30 feet long. Confronted with so sharp a conflict
in the evidence, the judge announced that he would visit the premises
and inspect the work. This being done, the judge found that the
carpenter’s claim was justified, that the fence was approximately 35
feet long, and that the claim should be paid.
C O N T R O V E R SY O V E R A F U R COAT

A furrier filed a claim against a young stenographer, asserting that
a balance of $25 was due on a charge of $50 for repairing a fur coat.
The young woman consulted the clerk, insisting that her coat had
been ruined and that the $25 she had already paid ought to be re­
funded. Her claim seemed justified, so the clerk filed a simple counter­
claim in her behalf. At the trial the coat was produced and an exam­
ination by the judge convinced him that her claim was just, that the
coat had been very poorly repaired, and that her money ought to be
refunded. In this case the defendant, appearing without a lawyer,
succeeded not only in defeating the plaintiff’s claim, but in recovering
an affirmative judgment for $25.
D IS P U T E O V E R C L E A N IN G O F LACE C U R T A IN S

A householder who had sent some lace curtains to a dry-cleaning
establishment claimed that several pairs were returned in damaged
condition, some with holes and others with the colors faded. The dry
cleaner came in to defend the case without an attorney. In com­
pliance with the statute, the judge tried conciliation. The effort was
almost immediately successful. The parties promptly agreed upon a
compromise figure, the householder retaining the curtains and receiv­
ing a moderate sum by way of compensation for the alleged damage.
Thus another case was added to the hundreds of cases in which the
parties listened t'o the suggestions of th,e trial court and caught the
spirit of conciliation. The entire procedure lasted less than 5 minutes,
and the parties were soon on their way back to their respective places
of employment.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Work of D. C. Small-Claims Court

277

A CLAIM FO R A U T O M O B IL E D A M A G ES FA IL S

A middle-aged woman, driving her car into one of Washington’s
busiest highways from the driveway of one of the embassies, came
into collision with an automobile proceeding on the highway and
operated by a young Government clerk. The former sued to recover
the amount of her repair bill. There was no testimony that the car
on the highway was traveling at an excessive rate of speed. In fact,
the plaintiff admitted that she had not seen it until a moment before
the impact. It further developed that a passenger in her car had seen
the other car approaching and had cried out a warning, but it was
too late to avoid the collision. The judge found against the claimant,
explaining to her that under the law it was negligence for her not to
have seen an automobile on the highway which was within the imme­
diate line of her vision and which she, in the exercise of ordinary care,
should have seen. Upon this explanation and the judge’s decision 3
the claimant smiled, said “Thank you” without a trace oi sarcasm,
and left the courtroom apparently satisfied that her rights had been
protected and that justice had been done, even though she had lost
her case.
A LO A N SH A R K COMES TO G R IE F

It is well known that the Small-Claims Court has done its part in
the suppression of loan sharks. It has often been charged that such
individuals, many of them in the employ of the Federal Government,
ply their usurious trade among their fellow employees, lending amounts
ranging from $2 to $200 at tremendous rates of interest, often as high
as 200 percent per annum. One individual made bold to file a group
of suits, all under $50, representing balances he claimed to be due for
loans made to employees of one of the Government offices. Six
defendants came in together, all without counsel, and all contending
that they had long since repaid not only the principal amount of the
loans but also interest at the rate of over 20 percent per month. It
took the trial judge but a few moments to see the truth of the situa­
tion and he pointed out that the defendants were properly entitled to
the return of the usurious interest which had been exacted. They
were, however, content to defeat the plaintiff’s claim and all 6 suits
were dismissed with a peremptory warning to the plaintiff that such
claims would not be tolerated in the Small-Claims Court.
A JE W E L R Y FIR M L E A R N S A L E SSO N

One of the installment-credit jewelry firms sued a young waitress
for a balance of $45 on a $60 wrist watch which it had sold to her a
year before. She came into court and, in an informal hearing, con­
tended that the watch had never operated satisfactorily and that she
had taken it back for repairs and adjustments 14 different times.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

278

Monthly Labor Review—August 1939

Under questioning by the judge, a clerk and also a former manager of
the store admitted that the watch probably needed repairs. The
judge ruled that in such a situation she should not be required to keep
the watch but that the loss should fall on the jewelry store. The
judge not only found in her favor, but ordered the return to her of
the amount she had already paid on the watch.
A M IC A B L E SE T T L E M E N T IN A W ATCH D IS P U T E

In a suit by a jewelry firm against a housewife, her defense was
that the watch involved was of inferior quality. The evidence
developed that the watch showed signs of extreme rust and that the
jewelry firm had returned it to the factory in an effort to have the
rust removed. Under friendly questioning by the judge, it developed
that she had plunged her hand into a tub of soapsuds, forgetting to
remove the watch, and that this was probably the cause of the rust.
The representative of the jewelry firm sensed that the decision would
be in favor of the plaintiff and on his own initiative asked the judge
not to make a formal ruling but assured him that if the lady would
come to the store, they could probably make an adjustment and find
a watch that would suit her. This was done, the suit was dismissed,
and good will prevailed on the part of all concerned.
A D IS P U T E B E T W E E N FO R M E R P A R T N E R S

Two men had been in business together in the operation of a filling
station. The partnership was dissolved and the continuing partner
claimed to have discovered a shortage from the cash register attrib­
utable to the retiring partner. He said he did not wish to go to court
about the matter, but changed his mind when he learned that the
retiring partner had been spreading malicious rumors concerning him
and his business. Thus prodded, he decided to seek vindication. He
filed a claim for $50 against the retiring partner. He deposited the
$1 filing fee and the 20-cent fee for registered-mail service. The very
next day he appeared before the clerk and dismissed the suit, stating
that the full amount was paid over to him by the retiring partner
and that he was sure there would be no recurrence of the whispering
campaign. On leaving the clerk’s office he remarked, “That’s the
best dollar I have ever spent in my fife.”
A B A T H IN G S U IT T H A T F A D E D

A large department store sued a young woman for the balance due
on an account. Appearing without counsel, she easily succeeded in
showing that she had paid her account in full, with the exception of a
small amount representing the purchase price of a bathing suit. This
amount she had declined to pay because the colors had faded and the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Work of D. C. Small-Claims Court

279

suit had shrunk. She brought the evidence into the court room with
her and had little difficulty convincing the trial judge that her defense
was justified. A finding in her favor resulted, with the loss of less
than a half day from her work and with no further expense on her part.
P R E V E N T IO N O F A L EG AL B A T T L E B E T W E E N F A T H E R A N D SO N

An 80-year-old man, under the care of the Public Assistance Divi­
sion of the Board of Public Welfare, found himself embarrassed by
the fact that the law required the surrender to that Division of certain
life-insurance policies totaling about $800. The matter was further
complicated by the fact that his son was the beneficiary and had paid
the premiums on certain of the policies. Ordinarily a long-drawn-*
out equity proceeding would have resulted, with the usual attendant
expense. The controversy was submitted to the Small Claims and
Conciliation Branch. Invoking the conciliation power created by
the law, all the parties were brought before the judge and in a hearing
lasting less than 15 minutes a friendly compromise was reached. A
substantial portion of the policies was surrendered unconditionally
to the son and the remaining policies were so arranged as to protect
the father and provide continued public assistance for the remainder
of his life.
One can readily understand that this was not an easy matter to
adjust, because of the rancor which had arisen between father and
son and the troublesome family aspects which surrounded the situa­
tion. The official entry on the docket showed ‘'Conciliation effected.”
Back of that entry, however, there is a story of great human interest
and exceedingly fine social service rendered under the flexible juris­
diction of this new court. It may finally be added that in this pro­
ceeding the $1 filing fee was waived and the services extended, not
as a matter of charity, but as a public and social right.
A W IDO W COLLECTS A SM ALL R E N T CLAIM

An elderly woman, widowed for many years, had no means of sup­
port except the income from a rooming house which she conducted.
She came home from a shopping trip one afternoon to find that the
tenant of one of the small furnished apartments in her house—a
taxicab driver—had moved out, owing her 2 months’ rent. The
clerk of the court filed a claim in her behalf and the tenant appeared,
claiming that his rent had been paid but that he could not find the
receipt. The landlady’s books, although very simple, were obviously
well kept. The judge gave the defendant 48 hours in which to pro­
duce the receipt. At the end of that time he appeared and rather
sheepishly admitted that he could not find the receipt; stated that
he “supposed he would have to pay the claim” but could not pay it

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

280

Monthly Labor Review—August 1939

all at once. The judge took into consideration his average earnings
as a taxicab driver, as well as the needs of the plaintiff, and ordered
the judgment paid in installments of $3 weekly. At the time of this
writing there had been no default on his part, and the claim will
undoubtedly be settled in full.
Discouragement of Wage Assignments

A frequent source of irritation to householders and small merchants
has been the effort of a few credit houses to obtain and enforce wage
assignments. The practice usually has been to exact, from a customer
about to purchase merchandise on credit, not only a conditional sale
• agreement but also an assignment of his wages in advance. No
credit house has ever attempted to file a suit on such an assignment
in the Small-Claims Court. This is probably because of a ruling by
one of the Municipal Court judges (in a case involving a larger
amount) in which the judge condemned the practice as “salarybuying” and bluntly stated that employers presented with such
assignments would be justified in “tossing them into the nearest
wastebasket.”
However, there have been many inquiries concerning the validity
of such assignments and, bolstered by the above-mentioned ruling,
the clerk has been able to state that such assignments would prob­
ably be given no legal effect and may safely be ignored by employers^
This is in line with the expressed purpose of the act, to “give assistance
to needy litigants and improve the administration of justice in small
cases.”
Arbitration of Labor Dispute
As already noted, the act establishing the District Small-Claims
Court also empowered the judge to act, when invited, as a conciliator
or arbitrator in labor disputes. Under this authority he has already
acted in one such case.
There is a single gas company in the city of Washington, employ­
ing some 1,200 men. A union of the employees had been formed
and they were demanding a closed shop. The union and the com­
pany decided to avail themselves of the arbitration feature of the
new system and submitted the case to the judge of the branch for
arbitration. A prompt hearing was had, the case for each side pre­
sented, and in less than 2 weeks what was potentially a bitter dispute
was adjusted in a fair way, a strike was prevented, and service to
the gas-consuming public of Washington continued uninterrupted.
Conclusion

The success of this newest court in the District of Columbia has
been amply attested by the results obtained. Thousands of poor

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Work of D. C. Small-Claims Court

281

persons have received assistance from the clerk and from the judge,
who before the new system could give them little or no help.
It is not surprising that this court, like similar courts elsewhere,
has been accepted as a highly effective instrument of public service.
It is not surprising that lawyers recognizing a social duty, have given
it full support and cooperation, as have the leaders in the various
fields of social work, and also those in the labor groups.
The movement has now become charged with a national interest.
It has been marked by widespread support and by an apparent
determination to bring municipal courts and other courts of limited
jurisdiction closer to the people; and to make the administration of
justice in small cases, modern, speedy, understandable, inexpensive,
and humane.
We will undoubtedly soon be in sight of the day when it can no
longer be said, anywhere in this country, that justice is too expensive
for the poor.

163839— 39—

2


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PR O D U C TIV ITY OF FARM LABOR, 1909 TO 1938 1
Changes in Average Output

THE widespread use of tractors, automobiles, and electric power on
farms has increased the amount produced by the average farm worker
and at the same time has reduced the demands for draft animals and
for feeds. Three decades ago farmers annually sold to the cities
power, in the form of work animals, worth several hundred million
dollars. More recently, farmers have bought annually about $1,500,000,000 worth of power and power machinery. Both of these changes
tended to reduce the total amount of labor needed on farms. Various
other changes, both in methods of farming and in market conditions,
had a similar effect. Market demands for farm products were
restricted by the unemployment and low income of large groups in
the cities ; by the general slowing up of the rate of growth of popula­
tion; and by the adoption in other countries of restrictions on the
imports of goods produced abroad—restrictions resembling in effect
our own tariff policies. In addition to tractors, trucks, and electric
power on farms, numerous other technological changes, both mechan­
ical and nonmechanical, reduced the amount of labor required for
the production of a given quantity of farm commodities or, inversely,
increased the average output of farm labor.2
Available information on changes in the total volume of agricul­
tural production 3 and of employment on farms 4 indicates clearly a
significant rise during recent decades in the productivity of farm
labor.5 (See table 1.)
1 The third of a series of three articles on farm labor. The first, Farm Employment, 1909 to 1938, appeared
in the June M onthly Labor Review, and the second, Wages and Income of Farm Workers, 1909 to 1938, in
the July Review. The first and the third were suggested by the work of the National Research Project,
Works Progress Administration. The cooperation of that agency and of the Department of Agriculture is
acknowledged, and especially the aid of the Bureau of Agricultural Economics, the Farm Security Admin­
istration, and the Bureau of Agricultural Engineering.
2 See Report of the Secretary of Agriculture, 1938, pp. 1-8—a passage that describes agricultural maladjust­
ments in terms of the failure of market demands to keep pace with facilities for agricultural production.
3 Recent estimates of total agricultural production extending back to 1909 were made by Raymond G.
Bressler, Jr., and John A. Hopkins in Ü . S. Works Progress Administration, National Research Project,
Report No. A-6; Trends in Size and Production of the Aggregate Farm Enterprise, 1909-36, Washington,
1938. For the earlier years of this period, available information is relatively inadequate and is limited to a
relatively small number of products. The Bureau of Agricultural Economics publishes index numbers of
production going back to 1919. The index here used (table 1) for the period 1909 to 1938 links the two indexes
by use of the 1919 ratio.
« Estimates of employment on farms for the period 1909 to 1936 have been made by Eldon E. Shaw and
John A. Hopkins in W PA National Research Project, Report No. A-8; Trends in Employment in Agri­
culture, 1909-36, Washington, 1938. These estimates are carried forward by the U . S. Bureau of Agricul­
tural Economics. For summary, see the first article in this series, Farm Employment, 1909 to 1938, in
M onthly Labor Review, June 1939.
« The term “productivity of labor” here means (following general usage) merely the average output per
unit of labor and has no bearing on the “efficiency” of labor apart from the instruments oi production.

282


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Productivity of Farm Labor

283

T a b l e 1. —Estimated Changes in Agricultural Production, Employment, and Output

per Farm Worker, 1909 to 1938
[Average, 1924-29=100.0]

Y ear

Produc­
tion i

Number
of farm
workers 2

Output
per
worker

1909_____________

78

107.5

73

1910_____________
1911_______
1912...................... .
1913_____________
1914_____________

82
85
90
84
92

106.9
106.0
105.9
105.9
105.6

77
80
85
79
87

1915. ............... ...
1916_____________
1917______________
1918_____________
1919_____________

89
85
89
89
87

105.4
105.8
103.8
99.0
97.7

84
80
86
90
89

1920_____________
1921______________
1922_____________
1923_____________
1924_____________

91
83
92
95
97

100.0
100.4
100.7
100.2
100.0

91
83
91
95

Produc­
tion i

Year

1925
1926_____________
1927
1928
1929
1930
1931_____________
1932
1933
1934
1935
1936__________
1937
1938

..

102

Number Output
of farm
per
workers2 worker

101.5

101

99.4

107

98.2

94

95.5

95

96.8

104

94.6

100
105
...
109

98
114

97

1 The Bureau of Agricultural Economics’ index of production, beginning in 1919, linked to the index
extending back to 1909 computed by Raymond G. Bressler, Jr., and John A. Hopkins in W PA National
Research Project, Report No. A-6.
2 Estimates 1909-36 by Eldon E. Shaw and John A. Hopkins in W PA National Research Project, Report
No. A-8; later figures by the U. S. Bureau of Agricultural Economics. The figures include both hired
workers and family workers.

Average output per farm worker, including both hired workers and
family workers, fluctuated in a manner which at first sight seems to
have been somewhat erratic. Thus, there was an increase of 9 percent
from 1927 to 1931; a reversion 2 years later to the 1927 figure; a further
decline of 6 percent by 1935; and a sharp rise of about 21 percent
between 1935 and 1937. These fluctuations are explained by the
exceptional conditions of the past decade. The total amount of farm
commodities produced annually from 1929 to 1935 was sharply reduced
by weather conditions, restricted demand, and agricultural adjustment
policies. During the same period, the limited opportunity for nonagricultural employment tended to stop the flow of workers from country
to city, and, for a time, actually reversed the flow. Most of these
additional farm workers, as well as an increasing number already on
farms, engaged to a large extent in the cruder forms of subsistence
farming. These circumstances materially retarded the rise in the
average output per worker.
The index of average output (table 1) is significant mainly as indi­
cating the general trend for the period as a whole. There was an
increase of about 50 percent in the output per worker during the 3
decades. Phis increase is particularly significant because it was
brought about in spite of such retarding factors as the revival of sub­
sistence farming, widespread drought, soil erosion, and economic
difficulties in the way of the maintenance of soil fertility and of the
efficiency of farm equipment.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

284

Monthly Labor Review—August 1939

More adequate than the general estimates for farming as a whole 9
are the figures for particular types of farming. These are available
for the past three decades for corn, wheat, cotton, oats, potatoes, and
sugar beets.7 Studies of these branches of agriculture have produced
results that tend to confirm the estimates of average output for agri­
culture as a whole, although there has been a wide range in the rate
of increase of labor productivity. The earliest and latest periods com­
pared are as follows: For corn, 1909-13 and 1932-36; for wheat, for
oats, and for potatoes, 1909-13 and 1934-36; for cotton, 1907-11 and
1933- 36; and for sugar beets, 1913-17 and 1933-36.8 The average
man-hour output in the later period as compared to the earlier period
shows for corn an increase of 21 percent; for potatoes, 23 percent; 9 for
cotton, 24 percent; for sugar beets, 29 percent; for oats, 56 percent;
and for wheat, 117 percent.10
Reduction of Labor in Six Farm Crops

The farmer who hires labor is interested in the amount of labor he
must employ in running his farm or in producing a given quantity of
wheat, cotton, or other commodity. This form of stating the rela­
tionship between the amount of output and the amount of labor re­
quired simplifies also the study of farming as a field of opportunity for
employment.11 In 1909-13, the estimated average amount of labor
(including both family and hired labor) required to produce a bushel
of corn was 1.09 man-hours, and the average in 1932-36 was 0.90
man-hour, a reduction of about 17 percent. In the other 5 crops pre­
viously mentioned, the reductions in labor required per unit of output
were as follows: Potatoes, 1909-13 to 1934-36, 19 percent; cotton,
1907-11 to 1933-36, 20 percent; sugar beets, 1913-17 to 1933-36, 22
percent; oats, 1909-13 to 1934-36, 36 percent; and wheat, 1909-13 to
1934- 36, 54 percent. (See chart 1.)
9 One of the major difficulties in the way of estimating changes in the general level of labor productivity is
the dependence of such estimates on rough approximations of total output. In making these approximations
it is necessary to combine in the form of index numbers the various types of farm commodities as different
in nature as bushels of wheat, bales of cotton, and the number of the various types of livestock. It is nec­
essary also to make allowances for commodities not marketed but consumed on farms.
7 Detailed studies of production, employment, and average output have been made by the W PA National
Research Project, under direction of D avid Weintraub and in cooperation with various Federal and State
agencies. The series on agriculture, entitled Studies of Changing Techniques and Employment in Agri­
culture, under direction of John A . Hopkins, includes reports on each of the crops mentioned above (Reports
No. A -l, A-4, A-5, A-7, and A-10). These reports describe the serious difficulties encountered in making
estimates over a period of years even in the limited fields covered by the reports. They also describe the
sources and methods used and the limitations of the estimates.
8 The average of the earlier series of years is compared to the average of the later series for the purpose of
avoiding the accidental effects of abnormalities such as exceptional weather conditions in any one year. The
net result, however, is to underestimate the change in productivity from the beginning to the end of the
period studied, as, for instance, from 1909 to 1936 in the case of wheat.
• Estimates of average output in the production of potatoes are limited to selected areas in particular
States.
10 These figures must be viewed as approximations, not as definitive measurements, but the information
from which they are derived is adequate for their use as indications of the trends.
n The amount of labor required to produce a given unit, as 100 bushels of wheat, is of course merely the
inverse or reciprocal way of stating the average output per unit of labor.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Productivity of Farm Labor

285

Estimates made for the principal agricultural areas indicate a
wide range of labor requirements per unit in different sections of the
country. Thus, in the area that required the smallest amount of
labor per bushel of corn in the period 1932-36 (an area consisting of
Kansas and Nebraska), the amount of labor per bushel was 0.44
man-hour. In contrast, in the area requiring the largest amount of
labor per bushel (i. e., South Carolina, Alabama, and Georgia), 3.15
man-hours were required per bushel. In Kansas and Nebraska,
C H A R T I.

LAB OR R E Q U I R E M E N T S IN AGRICULTURE
ESTIM ATED MAN-HOURS PER UNIT OF OUTPUT

IN D E X

WHEAT

1909-1 3
1934-36

1909-1 3
I 9 32-36

1907 - I I
1933-36

1909-1 3
1934-36
s o u r c e s : w.p. a ., n a t i o n a l r e s e a r c h p r o j e c t ,
U N IT ED S T A T E S B U R EA U OF L A B O R ST A T IST IC S ____________________________ REPORTS NOS. A-l, A-4, A-5, A-7, A-IO.

during the period 1909-13 to 1932-36, the amount of labor required
per bushel fell from 0.67 to 0.44 man-hour, or 34 percent. In con­
trast, in the area including South Carolina, Alabama, and Georgia,
there was almost no change. In the production of the other crops
mentioned (wheat, oats, cotton, potatoes, and sugar beets), the
range of labor required per unit in the different areas at a particular
time was not so extreme, but in some of these crops the regional dif­
ferences in the rate of change over the three decades were even
more marked. Thus, in the production of oats, the amount of labor
required per bushel in California fell from 0.40 to 0.11 man-hour,
or 72 percent. In contrast, in Arkansas, Louisiana, and Mississippi,
the decline was only from 1.01 to 0.84 man-hours per bushel, or


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

286

17 percent. In some instances the amount of labor per unit increased.
Thus, in the production of potatoes, the estimated amount of labor
per bushel in Minnesota, Wisconsin, and Michigan rose from 0.74
to 0.78 man-hour. (See table 2 .) These differences are especially
significant as indications of the possibilities of reducing the amount
of farm labor by the more general use of the best methods found in
the areas of smallest labor requirements.
T a b l e 2 . —Labor Required Per Unit of Output in Producing Specified Farm Commodities,

1909 to 1938 1
[Index numbers: Average, 1927-31=100 2]
Man-hours per unit produced in—

Commodity and period

U nit of
produetion

United States

Number

Index

Area of smallest
labor require­
ments in latest
period
Number

Index

Bushel.
.__do_ .
___do__
___do__

1.09
1.02
.93
.90

117
110
100
97

0.67
.54
.45
.44

Number

Index

South Carolina,
Alabama, and
Georgia

Kansas and
Nebraska
Corn
1909-13______________
1917-21________ ____ 1927-31______________
1932-36 3_____________

Area of greatest
labor require­
ments in latest
period

149
120
100
98

3.10
2.85
3.20
3.15

97
89
100
98

417
294
100
100

1.87
2.06
1.70
1.70

110
121
100
100

California
Wheat
1909-13............- .........—
1917-21______________
1927-31........................ .
1934-36 s........... ..............

___do___
___do___
___do___
___do___

.89
.77
.46
.41

193
167
100
89

0. 75
.53
.18
.18

Louisiana, Arkansas, and
M ississippi
Oat?
1909-13..___________
1917-21_____________
1927-31_____________
1934-36 3......................

___do__
__-do.__
.__do__
___do__

.42
.35
.29
.27

145
121
100
93

.40
.24
.11
.11

364
218
100
100

N ew M exico, Arizona, and
California
Cotton
1907-11_______________
1917-21----------- ---------1927-31..............................
1933-36..............................

Bale.
__do___
_ .d o__
...d o ___

271
275
238
218

114
116
100
92

163
216
151
126

108
143
100
83

N ew Jersey and
Virginia
Potatoes4
1909-13__________ ____ 1917-21________________
1927-31------ --------- ------ 1934-36-............- .............-

Bushel.
___do__
___do__

.79
.80
.66
.64

120
121
100
97

Sugar beets
1913-17________________
1920-24________________
1928-32__________ ____ 1933-36-..............— - ........

Ton___
___do. .
___do__
___do___

11.2
11.4
8.8
8.7

127
130
100
99

0. 70
.69
.49
.48

116
106
100
97

South Carolina,
Alabama, and
Georgia
299
314
282
253

106
111
100
90

Minnesota, Wis­
consin, and
Michigan

143
141
100
98

0.74
.78
.74
.78

141
147
100
85

16.6
14.1
13.3
12.6

100
105
100
105

Michigan

California
9.3
9.7
6.6
5.6

1.01
.92
.87
.84

125
106
100
95

1 Data are from W PA National Research Project, Reports N o. A -l (sugar beets), A-4 (potatoes), A-5
(corn), A-7 (cotton), and A-10 (wheat and oats).
2 Except for sugar beets, the base period for which is 1928-32.
3 Adjusted to allow for effects of drought and agricultural adjustment program. See W PA National
Research Project, Report No. A-5, p. 120, and Report No. A-10, pp. 95, 98.
4 Limited to selected areas in 8 States.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Productivity of Farm Labor

287

Summary of Technological Changes

The mechanization of farming has been perhaps the most obvious
cause of reductions in the amount of labor required for a given quan­
tity of farm produce. Some of the principal improvements have
required no change in the age-old forms of power. Thus, the improved
horse-drawn planters, cultivators, and combines merely supplemented
human power by an increased use of animal power. More recently,
the most notable changes have been connected with new forms of
power. Rural electrification and the internal-combustion engine have
revolutionized and are continuing to revolutionize agricultural
methods.12
Important changes affecting agriculture, directly and indirectly,
may be summarized under the general term “engineering.” These
changes include drainage projects, irrigation, better farm buildings,
and improved facilities for storage, refrigeration, canning, and trans­
portation. These various developments have increased not only the
efficiency of farm operations but also the availability of farm products
to consumers. Other outstanding technological changes have been
in the field of plant breeding and improvement. In all the major
crops, varieties have been developed that are more productive or more
resistant to pests, drought, or other adverse conditions. The soy bean
is an example of progress by the introduction of new plants and varie­
ties from other countries. Changes in animal technology have included
the improvement of breeds, the control of diseases, and the develop­
ment of scientific feeding and marketing. In many sections there has
been a progressive adaptation of crops to d fferent kinds of soils and
to the needs of soil conservation. The conservation of soil has been
promoted by the development of chemical fertilizers and by the public
study and encouragement of the scientific use of land and control of
erosion.
One major technological change, namely, the increase in the use of
tractors, can be traced briefly in statistical terms. The estimated
number of tractors on farms in 1910 was only 10,000, and the estimated
number of horses and mules was 24,211,000. In 1920, the number of
tractors was less than a quarter of a million, and the number of horses
and mules was 25,742,000—approximately a million and a half more
than in 1910. In 1980, there were about 920,000 tractors, almost 4
times as many as in 1920, whereas the number of horses and mules
had fallen 26 percent. There was a continuous decline after 1918 in
the number of horses and mules, the number in 1938 being 19 percent
ia For a convenient summary of technological changes in agriculture, see U . S. National Resources Com­
mittee, Technological Trends and National Policy, Washington, 1937: Section on agriculture, pp. 97-144.
Detailed accounts of technological changes in the more important branches of agriculture are contained in
the several volumes of the W PA National Research Project, Studies of Changing Techniques and Em ploy­
ment in Agriculture, previously mentioned.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

288

Monthly Labor Review—August 1939

less than in 1930. In contrast, the number of tractors continued to
increase, the number in 1936 being 36 percent larger than in 1930.
Particularly significant is the rapid increase after 1936, the rise in the
next 2 years alone being 22 percent. Figures of motor trucks used on
farms, available for the years 1920 and 1930, show a rise during the 10
years from 139,000 to more than 900,000. (See chart 2 .)
Recent types of tractors have been increasingly adaptable to a
variety of uses, and this has not only extended the area of mechaniza­

tion but has also reduced overhead from nonuse. Cost records of Corn
, Belt farms in central Illinois indicate that for two-plow tractors the
number of hours of use per tractor almost doubled in 15 years and
that the cost per hour was cut almost in half. In contrast, the cost
per hour of work of work horses was the same in 1923 and 1937.13
Particularly important was the development of the “all-purpose”
tractor with adjustments that made possible its use in the production
of row crops even on small farms. Labor requirements have been
greatly reduced by the increase in the speed of tractors. The earlier
h University of Illinois. Department of Agricultural Economics. Illinois Farm Economics, April and
M ay 1939, pp. 241-243.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Productivity of Farm Labor

289

field tractors were designed to operate at a speed similar to that of
horses, but the speed of later tractors has been approximately doubled.
Recent increases in tractors on farms have had additional signifi­
cance because the largest increases have occurred in areas of com­
paratively slight mechanization. Between 1930 and 1938 there was
a general increase of 66 percent on farms in the country as a whole.
The three major areas in which the increases were largest were the
Delta cotton area (137 percent), the western cotton area (122 per­
cent), and the eastern cotton area (90 percent). The only other area
with an increase above the average for the country as a whole was
the corn area (85 percent). These same areas continued in the lead
from 1936 to 1938, with an increase of 30 percent in the eastern cotton
area, 36 percent in the Delta cotton area, 29 percent in the western
cotton area, and 27 percent in the corn area, in contrast to 22 percent
in the country as a whole.14
Forces Offsetting the Effects of Improved Technology

Reductions in labor requirements in agriculture were brought about,
it should be repeated, in spite of many retarding forces. Deteriora­
tion of soils has resulted from erosion by water and wind and from
failure to apply scientific principles of land use. These circumstances
have aggravated the effects of adverse weather conditions. The
Chief of the United States Soil Conservation Service estimated that as
a result of erosion the country loses every day on the average the
equivalent of 200 40-acre farms.15 The spread of diseases and pests of
various kinds, affecting both plants and animals, has been facilitated
by the changes in methods of transportation and by disturbance of
the natural balance which in a wild state tends to check their ravages.
The recent increase of subsistence farming by crude methods on
poorer soils has been a major factor in retarding the reduction of
average labor requirements. Earlier in American history the trend of
agriculture was away from subsistence farming toward farming for
markets. This trend was a result of expanding demand, improvement
of transportation facilities, and the general reduction of production
costs. More recently, and especially after 1929, the trend was
reversed. Even in 1929, about half the farms in the United States
produced only about one-tenth of marketed farm commodities.
Between 1930 and 1935, the number of impoverished small farms
increased about 500,000.16
14 For statistics of tractors on farms, see W PA National Research Project, Report No. A-9: Changes in
Farm Power and Equipment: Tractors, Trucks, and Automobiles, by Eugene G. M cKibben and R. Austin
Griffin; also Texas Agricultural Experiment Station, Progress Report No. 579: The Social Effects of Recent
Trends in Mechanization of Agriculture, by C. Horace Hamilton, College Station, Tex., 1938.
,J U. S. Congress. House Committee on Appropriations. Hearings on Agricultural Department Appro­
priation Bill for 1940, p. 1015. Washington,1939.
>« U . S. Department of Agriculture. Report of the Secretary of Agriculture, 1938, p. 57. Washington,
1938.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

290

The amount of labor required for producing a bushel of wheat, a
bale of cotton, or other unit of output, has been greatly reduced, but
improved methods have been adopted by a comparatively small
proportion of farmers. Vast reductions of labor are possible by the
more general adoption of existing techniques as well as by the further
improvement of methods. Hardly less important potentially in the
saving of labor is the concentration of production in areas best adapted
to the several types of farm commodities. In the production of corn,
the estimated hours of labor required per hundred bushels in 1932-36
ranged, as was stated above, from 44 in the region of Kansas and
Nebraska to 315 in the eastern cotton area. Changes in the methods
used in the former area brought about a reduction from 67 hours in
1909-13 to 44 hours in 1932-36. In contrast to the high degree of
mechanization in the region of Kansas and Nebraska is the prevalence
of essentially primitive methods in many other parts of the country.
A significant part of the country’s corn crop is produced by the use of
mule power and the crudest of plows. The areas where improved
methods and scientific land use prevail are in most cases adequate for
meeting the market demands for major farm commodities, and the
concentration of production in these areas would require a compara­
tively small proportion of the workers actually engaged in their
production.
Limitations on Demand for Farm Products

Technological changes have vastly reduced the labor required for a
given quantity of farm produce. At the same time, economic condi­
tions in the United States and in world markets have tended to
reduce the demand for American farm products.
There is no adequate measure of demand for American farm prod­
ucts, either in the domestic markets or in world markets. A com­
paratively significant measure of changes in domestic demand is the
index of industrial pay rolls, for a relatively large and constant pro­
portion of the wages of industrial workers goes to the purchase of such
basic articles as food and clothing coming directly from farms or
undergoing comparatively slight processing. In those industries
in which wage payments are distinguishable from salaries, wages in
1932 were less than half of wages in 1929, 25 percent lower in 1936
than in 1929, and more than 30 percent lower in 1938 than in 1929.17
The index of factory pay rolls as currently published is based on the
average for the years 1923 to 1925. The total in 1929 was 10 percent
above the 1923-25 level; in 1932, 53 percent below; in 1936, 14 percent
below; and in 1938, 22 percent below the 1923-25 average. On a
per capita basis, these percentages would be smaller because of the
u TJ. S. Department of Commerce. Survey of Current Business, June 1939, pp. 10-16: National Income in
1938 at 64 Billion Dollars, by Bobert K. Nathan.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Productivity of Farm Labor

291

growth of population. The figures make no allowance for price
changes. The comparatively large declines in the prices of farm
commodities increased the purchasing power of nonfarm income in
terms of farm products and thereby aided in sustaining the volume
of demand for these products, but the lack of balance in the price
system tended toward inequality in the economic status of the farm
population.
The demand, for American farm products in other countries has
fluctuated widely, with a general tendency toward contraction. Dur­
ing the years 1907-11, the value of agricultural exports was about
54 percent of the value of all exports; during 1922-26, 46 percent;
in 1929, 35 percent; and in 1938, 27 percent. This change was partly
a result of the relatively rapid expansion of American manufactures.
However, in 1938 the total volume of farm commodities exported was
only about four-fifths of the 1910-14 average, and in the same year
the quantity of exported cotton, the principal American farm com­
modity entering into world markets, was only about seven-tenths as
large as in 1910-14. During the 5 years ending in 1929, exported
farm products required the use of more than 70,000,000 acres, but since
then the amount of land required has ranged from 20 ,000,000 to
50,000,000 acres.18
Improved machinery and methods of farming make possible more
products and better products at lower costs. It can no longer be
assumed, however, that such improvements automatically bring ad­
vantages to all concerned. The immediate advantages to farm work­
ers, and especially to hired workers and tenants, depend in part on
the demand for the products of improved methods and in part on
nonagricultural opportunities for employment. In spite of the lower
costs of production, the general demand for farm products has de­
clined, as was previously stated, and, at the same time, opportunity
for nonagricultural employment has not made possible the full ab­
sorption of workers no longer needed in agriculture.
Farm Labor and Nonagricultural Jobs

The declining amount of labor required for a given output and the
contraction of market demands have resulted in a great reduction of the
number of workers on farms. The estimated average number of farm
workers in 1909 was 12,209,000, and in 1938, 10,745,000, a reduction of
about 12 percent. In contrast, the total population of the country
increased in the meantime about 44 percent. Even these figures do not
fully indicate the decline in the demand for farm labor because recent
years have witnessed a revival of subsistence farming and an increase of
18 Statistics relating to the foreign demand for American farm products are from the Statistical Abstract
of the United States, 1938, pp. 622-623 (U. S. Department of Commerce, Washington, 1939), and the Report
of the Secretary of Agriculture, 1938, p. 4 (U. S. Department of Agriculture, Washington, 1938).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

292

underemployment on farms.19 The effects on farm workers of changes
in the demands for farm labor were mitigated historically by the
expansion of demand for labor in nonagricultural employments.
Special circumstances during the first two decades of the period
covered by this article tended to maintain the traditional balance by
the shifting of workers from farming to nonagricultural pursuits.
These circumstances included the abnormal demands for manpower
during the World War, the requirements for post-war reconstruction,
and the employments created directly and indirectly by such new
developments as the automobile industry. The temporary expansion
of market demands by installment buying and by the American
financing of foreign purchasers also contributed to an apparent equi­
librium of the number of workers looking for jobs and the number
of opportunities for employment.
The changes in nonagricultural employment after 1929 indicate the
gravity of the problem of transferring farm workers to other employ­
ments. The estimated average number of nonagricultural workers,
including officials, proprietors, and self-employed persons, was 36,160.000 in 1929, 35,066,000 in 1937 (the largest number after 1929),
and 32,747,000 in 1938. The number in 1938 was thus 9.4 percent
smaller than in 1929, although in the meantime the total population
of the country had increased about 7.6 percent, and the nonfarm pop­
ulation, 8.4 percent. Estimates of nonagricultural employment ex­
clude persons working on projects of the Works Progress Administra­
tion, National Youth Administration, and Civilian Conservation
Corps. If nonagricultural employment had followed the trend of
nonfarm population, the number employed in 1938 would have been
39.197.000 instead of 32,747,000. The difference between these two
numbers measures roughly the gap in nonagricultural employment
opportunities as compared to 1929, and there was much unemploy­
ment and especially underemployment even in 1929.
Farm-Labor Problems and Public Policy

The contraction of demand for farm products, the reduction of the
amount of labor required for a given quantity of farm produce, and
the smaller number of employment opportunities outside of agricul­
ture combined to create an extremely grave situation for farm labor.
This situation explains the recent revival of subsistence farming.
The Bureau of the Census in the 1935 Census of Agriculture reported
that 1,995,000 persons moved to farms between 1930 and 1935 and
that on January 1, 1935, 1 out of every 16 persons living on farms
had lived elsewhere 5 years earlier. This farmward movement was
largest in depressed areas and regions of subsistence farming. One
i» See the first article in this series, Farm Employm ent, 1909 to 1938, in M onthly Labor Review, June 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Productivity of Farm Labor

293

of these areas extends along the mountains from Pennsylvania to
Alabama. In this region, workers displaced from mines, forests,
factories, and other employments, totaling between one-third and onehalf million persons, sought a precarious means of livelihood on small
farms, many of which had earlier been abandoned. Approximately
the same number of persons displaced from the industrial centers of
New England, New York, Michigan, and Ohio settled on farms or
untilled lands. More than 100,000 workers sought rural refuge in
each of three other regions, namely, the cut-over lands of north­
eastern Minnesota and northwestern Wisconsin, the Ozark Mountain
region and eastern Oklahoma, and the valleys of the Pacific coast.
The curtailment of demand for farm products and the sharp reduc­
tions of the prices obtainable caused a large increase in farming
primarily on a subsistence basis among farmers already on the land.
Recent years have witnessed a lowering of the status of many
workers on farms. The equities of farm owners declined. There was
an increase of tenancy, and many tenant farmers were forced into
the status of hired workers.20 A study of conditions on 89 plantations
in 3 bottom-land Arkansas counties indicated that between 1932 and
1937 about 6 percent of the families on these plantations were dis­
placed, and there was evidence of a larger displacement during the
following year. The economic status of many of those who remained
was lowered by the transformation of sharecroppers into wage earners,
the average income of wage earners on the plantations being mate­
rially lower than the average income of sharecoppers.21 There is also
evidence from general statistics of wages and income that the relative
economic status of hired farm workers as a class has declined in recent
years when it is compared to the status either of farm operators or
of major groups of nonagricultural wage earners.22
The adverse conditions of farm labor, both of hired workers and of
tenants, and even of many small proprietors, have had serious effects
on nonagricultural labor, as was pointed out in the first article of this
series. Large numbers of farm workers have sought to obtain non­
agricultural employment, and the competition for jobs has resulted
in an intensified pressure on the industrial labor supply and on non­
agricultural wages, especially when nonagricultural enterprises are
located in smaller communities and farming regions. At the same
time, modern transportation facilities have made possible the migra10 Articles bearing on this subject in the M onthly Labor Review include the first article in this series in
the June issue and 2 articles in the March and April 1938 issues (reprinted as Serial N o. R. 737), on Power
Farming and Labor Displacement in the Cotton Belt, 1937, by Paul S. Taylor.
« Journal of Land and Public U tility Economics, M ay 1939, pp. 235-237: Recent Changes in the Status
of Laborers and Tenants on Arkansas Plantations, by Glenn T . Barton of the Agricultural Adjustment
Administration and J. G. M cN eely of the Arkansas Agricultural Experiment Station. See also Plantation
Operations of Landlords and Tenants in Arkansas, by H. W. Blalock, University of Arkansas, College of
Agriculture, Agricultural Experiment Station, Fayetteville, 1937.
11 See the second article in this series, Wages and Income of Farm Workers, 1909 to 1938, in M onthly
Labor Review, July 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

294

Monthly Labor Review—August 1939

tion of farm workers even to distant industrial communities, and the
competition for nonagricultural jobs has thus been intensified and
the pressure on urban facilities for relief has been increased. The
reduced consumption of the products of nonagricultural labor by the
farm population has adversely affected the entire national economy
as well as the opportunities of urban workers for jobs.
To farmers there has been traditionally ascribed an exceptional
degree of individualism and dependence on personal initiative and
family resources. The fundamental and Nation-wide scope of the
changes that have affected American agriculture in recent decades
has modified the traditional individualism of farmers and has influ­
enced them to adopt new methods of community, group, and national
action for solving their problems. These new concepts and methods
have not as yet been applied so extensively to the solution of the
problems of hired farm workers and of tenant farmers as to the prob­
lems of farm proprietors, but a more general recognition of the gravity
and national character of the difficulties encountered by farm wagp
earners and tenants has been the basis of intensive study and of effort
to extend group responsibility and action into these fields.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

HOUSING OF D E P E N D E N T AGED
AN INTERESTING byproduct of the Nation-wide system of old-age
assistance has been the emergence of new methods of housing the aged
recipients.
In individual cases monthly allowances may run as high as $30
or more, but the average for the whole country for 1938 was $19.30.
Some beneficiaries have other sources of income with which to supple­
ment their grants, but generally, under legislative limitations, in order
to be eligible for old-age assistance the entire income from all sources
may not exceed $30 per month. It is evident, therefore, that the aver­
age allowance is not sufficient by itself to provide, independently, full
support for the recipient, let alone any medical care that may be
needed. As a result, the homeless single men and women have pre­
sented a serious problem to workers in the field of care of the aged.
It has been found, however, that groups of recipients, by pooling
their resources, have been able to provide all the necessaries and
some additional comforts which none of them would have been able
to have alone. Among the new methods of housing are apartments
for aged, cooperative houses or resident clubs, boarding homes, and
colonies of individual dwellings.
In summing up the various types of housing for the aged, it was
emphasized at the National Conference of Social Work, at Buffalo,
N. Y .,1 that adequate care for all types of aged necessitates the avail­
ability of a range of services, including (1) the “housekeeping club,” in
which the resident is encouraged to the greatest possible use of his
capacities; (2) the boarding home, properly supervised; and (3) the
nonprofit nursing home, geared to the cultural background of the indi­
vidual resident. It was pointed out in this connection that, in many
cases, friction that arises among the residents of homes and institutions
is the direct result of diversity in habits and customs and in the living
standards to which the persons have been accustomed. Diversity
of services available is necessary, therefore, to enable each individual
to find those most suitable for him.
An agency, familiar with conditions in all of the quarters available,
can be very helpful to the individual in assisting him in selecting his
living arrangements. This placement agency should also work for
continuity of the grant which will insure continued care for the client.
Another desirable factor in the endeavor to secure the optimum
care for the aged is change. The desirability of occasional exchange
of guests between urban and country homes was suggested, as afford­
ing the residents a change and “vacation.” At least one home that
has recognized the value of change has come to the attention of
1Discussion by Hertha Kraus, Bryn Mawr College, Bryn Mawr, Pa.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

295

296

Monthly Labor Review—August 1939

the Bureau of Labor Statistics. That organization—Home of Old
Israel, New York City—is reported 2 to be sending its residents,
in groups, for a 2 -week vacation in the country.
A consideration which should also be taken into account is that the
needs of the same individual change from time to time, necessitating
different types of care. Thus, an able-bodied individual who takes
an apartment or goes into a cooperative club, or a colony where he
has his own separate cottage, may in a few years need institutional
care.
It was suggested at the social work conference that present resources
for caring for aged could be enlarged through—
(1) The reconditioning of old homes or estates which are available
at moderate cost.
(2 ) The adaptation of institutions formerly used as children’s
homes (now decreasingly in use, under modern methods of child care).
Flexibility of service is especially possible where the cottage system
has been used.
(3) Establishment of the eligibility of the aged to assistance under
the Federal housing program, but giving preference to reconditioning
of old houses rather than to building of new ones. A bill (H. R. 114)
which would provide Federal loans for the building of cooperative
homes for aged was introduced in Congress in February 1939. The
bill provided that such homes must be run on a nonprofit basis and
be open to persons 62 years of age and over. Life care (including
housing, food, medical attention, and living necessaries) would be
provided on a sliding-scale fee basis—$2,000 for persons 65 years of
age, and proportionately more or less according as the applicants
were below or above that age, at entrance. No action was taken
on the bill.
Speakers at the 1939 Conference on Social Security 3 expressed their
feeling that methods of care which provided for the aged as part of a
normal family life (if possible) were preferable to those which involved
their segregation. As opposed to this view was the opinion that such
segregation provides companionship with people of their own age, and
peace from the noise and confusion caused by the presence of children.
Apartments for the Aged

The possibilities of apartments as domiciles for aged—whether as
part of a normal community of all ages or as limited entirely to aged—
has received attention. A speaker at the National Conference on
Social Security urged that housing authorities should develop a
definite policy of providing a reasonable proportion of apartments
2New York Times, July 22, 1939s Of American Association for Social Security, held at New York C ity, April 14 and 15,1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Housing of Dependent Aged

297

expressly for occupancy by aged, “built so that they are convenient,
simple and easy to take care of, and possibly on one floor where the
aged would not have to climb stairs.” The chairman of the New
York City Housing Authority pointed out, in this connection, that in
the Harlem River Apartments built under the aegis of that authority,
8 of these low-rent apartments are tenanted by old couples receiving
old-age assistance. This “represents an economy to the Department
of Welfare and is a minor example of how housing tends to pay for
itself by reducing costs for other community activities. We are pro­
ceeding on the assumption, and hope we are right, that the housing
of a normal number of aged in low-rent projects is wholesome to the
tenants as a whole, economic to the community and fortunate for the
aged.”
T O M PK IN S SQ U A R E A P A R T M E N T S 4

The Tompkins Square Apartments occupy a 5-story apartment
building donated for the purpose of providing semi-independent living
facilities for aged people capable of performing many services for
themselves. The building is divided into 1- and 2-room furnished
apartments, renting, respectively, for $20 and $35 a month. Each
apartment is provided with bath, heat, light, running water, and
refrigeration. The kitchens are outside the apartments and are
so placed as to be shared by 4 apartments each. However, as some
tenants do not wish to cook, this is taken into consideration in assigning
quarters and it therefore often happens that a given kitchen is actually
used only by 1 or 2 residents. For those who do not wish to do their
own cooking there is a cafeteria in the building. There is also an
automatic elevator, a roof garden, and on the first floor a general
living room equipped with radio and recreational facilities.
The building is tax exempt.
The residents include retired teachers, nurses, writers, and others.
About one-third of the 60 residents are old-age assistance recipients;
the other two-thirds include persons living on insurance annuities
and other income, and even some who are doing part-time paid work.
A PA R T M E N T S FO R A G E D H E B R E W S

The Home for Aged and Infirm Jews, New York, has, it is reported,5
been considering a somewhat similar apartment plan. The 400-odd
residents of the home have included both able-bodied persons and
those so infirm as to require hospital or personal care. It is planned
to separate these two groups, retaining the infirm in the present build­
ing which will be transformed into a hospital. The able-bodied
4 D a t a a r e f r o m p a p e r p r e s e n t e d b y W . H . M a t t h e w s , C o m m u n i t y S e r v ic e S o c ie ty , N e w Y o r k C i t y , a t
N a t i o n a l C o n f e r e n c e o f S o c ia l W o r k , B u f f a lo , N . Y ., J u n e 2 4 ,1 9 3 9 .
* W e lf a r e C o u n c i l o f N e w Y o r k C i t y , “ B e t t e r T i m e s ,” F e b r u a r y 10, 1939.

163839— 39---------- 3


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

298

Monthly Labor Review—August 1939

group will be placed in “boarding-out apartments.” The first, experi­
mental, group will consist of six persons living together in a single
apartment which will be in the charge of a competent housekeeper
and under the supervision of the home’s medical and social welfare
staff. It is emphasized that effort will be made to make the living
conditions in the apartment “approximate as closely as possible
normal home and neighborhood life, but at the same time the guests
will be encouraged to utilize the recreational and occupational advan­
tages of the home.”
If this experiment is successful, similar apartments will be taken
for the remainder of the able-bodied group. This separation of
functions, it is felt, will enable the organization to give more efficient
service to both classes of residents.
Cooperative Houses or Clubs 6

In the State of Washington a number of homes have been started
in which recipients of old-age assistance are living on a cooperative
basis, each resident paying his share of the household expenses from
his monthly allowance and using the remainder for clothing and
personal needs. These homes have been utilized especially in the
case of single men and women, as well as other persons whose children
or relatives are not able to house them or who for other reasons are
not sharing family life.
The first such home was undertaken about 2 years ago by a group
of elderly single men who had formerly been sawmill workers but
had been stranded as that industry subsided or as their personal skill
and physical powers failed. At the time of undertaking the coopera­
tive enterprise they were all recipients of old-age assistance allowances.
In getting their house started, this group of 50 men leaned heavily
upon the assistance and advice of the State old-age assistance repre­
sentative. In later groups, however, the attempt has been made to
obtain a local sponsor. Such sponsors have included fraternal,
business, and professional organizations, welfare councils, and the
Old Age Pension Union. The sponsorship assures the moral support
of the community in the project, provides advice and guidance on the
various problems that arise, and is a guaranty against the possibility
of degeneration of standards of living in the home. The State De­
partment of Social Security acts only in an advisory capacity.
In Seattle, the Business and Professional Women’s Club has spon­
sored a home, the Sunset Club, for women 60 years of age or over,
with a monthly income of not to exceed $40. In the house they have
taken over, each guest has her own bedroom furnished with her own
6 D a t a a r e f r o m p a p e r p r e s e n t e d b y N e ls o n B . N e f f , D iv is io n o f O ld A g e A s s is ta n c e , S t a t e D e p a r t m e n t o f
S o c ia l S e c u r i ty , O ly m p i a , W a s h ., a t N a t i o n a l C o n f e r e n c e o f S o c ia l W o r k : s u p p l e m e n t e d b y C h r i s t i a n
S c ie n c e M o n i t o r ( B o s to n ) , J u n e 21, 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Housing of Dependent Aged

299

furniture (if any) and such other belongings as she may have. A cook
is employed, but all of the other work is done by the residents.
In getting these houses started, self-sufficiency and self-government
are encouraged. Sometimes, however, the sponsor must make a small
cash loan to tide over the initial outlay necessary. All such loans
have been repaid, and all the homes are self-supporting. The manager
is selected by the members and they also make the rules under which
the house is run. It is emphasized that the selection of the manager
is very important, as he or she is largely responsible for the degree of
success attained.
Entrance into the cooperative arrangement is entirely voluntary on
the part of the participant. It is stated that “fear of new tilings”
sometimes makes the elderly person reluctant to enter the cooperative
group. Once in, however, group life encourages the regaining of a
self-confidence that may have been lost for many years. The aged
resident also benefits by the availability of the company of persons
of his own age when he wants and needs it, and by the greater physical
comforts made possible through group effort, as compared to what
he could afford individually; and his health is improved by food of
greater variety and better preparation than he previously had.
As such houses are designed for the use of persons retaining a con­
siderable degree of bodily vigor, it is possible also that certain supple­
mentary activities can be engaged in which will bring in some income
for the group. Among those considered for the Washington groups
were binding of magazines into folders for permanent preservation, on
the order of local patrons; raising of dogwood and other ornamental
shrubs, for landscaping purposes; and operation of a greenhouse from
which to supply potted plants for offices. Altogether, 10 homes have
been started—7 for single aged men, 2 for single aged women, and 1
for unemployable single men under 65 (the age of eligibility for old-age
assistance). For the most part these homes have occupied old build­
ings which could be reconditioned for the purpose. About 200 persons
are participating. This development has been in process only during
the past 2 years, but it is felt that it offers real possibilities for single
persons and those without family ties.
Boarding Homes 7

The facilities for the boarding of aged persons may be divided into
three classes: (1) The private nonprofit institution; (2) the private
home sheltering one or two aged, in family quarters, as a means of
eking out a scanty family income; and (3) the larger establishment
caring for pensioners as a business and for profit.
7 D a t a a r e f r o m p a p e r p r e s e n t e d b y N a n c y L . A u s t i n , f o r m e r l y o f D e p a r t m e n t o f L ic e n s in g o f P r i v a t e
A g e n c ie s , K a n s a s S t a t e W e lfa re B o a r d , T o p e k a , K a n s ., a t N a t i o n a l C o n f e r e n c e o f S o c ia l W o r k , B u f la lo ,
N . Y .. J u n e 2 4 .1 9 3 9 .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

300

Monthly Labor Review—August 1939

It is recognized, that in the absence of proper public supervision
such boarding homes might become a menace as bad as or worse than
the old almshouses. Some of the operators of homes of the third
type mentioned, above, it has been found, are former superintendents
of almshouses who have gone into the boarding-home business, but
at the almshouse level of standards because profit is their main
consideration. As the residents’ incomes are low, the securing of a
profit from their small payments means necessarily a low level of
services.
In some States there is no legal authority for public supervision of
such homes. In others there is legislation, but adequate supervision
is difficult or impossible because of small staffs and limited appropria­
tions. As a result, the problem is becoming serious. Even where
the homes are required to have a license, the license has all too often
been regarded as an end in itself. It was emphasized that the license
should be regarded as a tool of supervision, used to enforce proper
standards and withdrawable if these are not provided.
Legislative measures, it was pointed out, should depend upon State
conditions. The law should be general enough to insure flexibility in
administration but should have enough detail to cover the important
points. It should bestow restrictive power upon the enforcing agency.
Colony for Aged

A new form of housing for aged was undertaken in 1936 when a
WPA project was approved for Cumberland County, N. J., to provide
cottages for recipients of old-age assistance.
A tract of waste land was used which had reverted to the city of
Millville many years before because of nonpayment of taxes by the
owner. A Federal grant of $25,000 was used to clear the land and to
erect 13 small cottages and a community building. This was followed
by a grant of $5,000 for putting in sewer, water, and gas systems and
grading and laying out the streets.
Ground was broken in the spring of 1936, and the colony—named
Roosevelt Park—was dedicated in October of the same year. Seven
of the cottages are designed for couples and the other 6 are for single
persons. Thus, the community houses 20 aged persons.
The homes for couples are 20 by 20 feet in size, each having a living
room 10 by 12 feet, bedroom 12 by 8 feet, kitchen 8 by 7 feet, and
bathroom 5 by 5 feet, closets, and front and rear porches. The
houses for single persons are slightly smaller, with the same number
of rooms except that a cooking alcove replaces the full-size kitchen.
The single homes, also, have no rear porch. Each house is equipped
with gas stove, kitchen range for both cooking and heating in the
winter, electricity, and sewer system. All of the houses are painted

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Housing of Dependent Aged

301

cream and white inside, and white with green trim on the outside.
The shingles are fireproof. Each house is named for a flower. The
double dwellings rent for $7 per month, the single ones for $5.
The colonists are encouraged to plant gardens on their plots of
ground, which measure 100 by 120 feet in size, and most of them have
done so, planting flowers or vegetables or both. The couple who live
in Iris Cottage, for example, have surrounded their home with a blaze of
petunias of various colors.
All of the residents are persons receiving either old-age assistance
(averaging in New Jersey about $15-$19 per person per month) or war
pensions. Some of them were property owners before the depression
and several were fairly well off. Now, after paying rent of $5 or $7
per month, the resident must make the remainder of his small monthly
allowance cover cost of food, clothing, and incidentals, and pay his
utility bills (except electricity, which is furnished).
The colony is under the direction of a board of 15 directors, of whom
5 are elected every 3 years. The actual manager is the originator of
the colony—a social worker formerly on the staff of the county wel­
fare board-—who lives in the community house and directs the com­
munity activities. The community building contains, in addition to
her apartment, an assembly room 25 feet long, equipped with piano,
easy chairs, reading matter, and games. Here are held entertainments,
Bible classes, and other social gatherings. Over the fireplace appears
the legend: “Dedicated to those in the twilight of life who seek peace,
harmony, and contentment.”
Since the colony was opened, all of the cottages have been occupied
continuously and there is always a waiting list. The small size of the
colony, however, has been a handicap from the start. The rentals
from the houses bring in an annual total of $948. This has been
hardly sufficient to cover the barest necessaries, even though only $1 a
year is paid to the city of Millville for the use of the land and the
houses are tax free. There has been no margin for beautification and
such improvements as have been made have been done only under the
greatest difficulties. The resident manager of the colony estimates
that a group of 50 cottages would provide income for adequate main­
tenance and development. She states that 300 could be built on the
land available. It is her hope that some day the colony can be thrown
open to old people not only from the State of New Jersey but from all
the other States. At present only residents of Cumberland County
are admitted.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

COLLECTIVE BA RG A IN IN G W ITH EM PLO Y ER S’
ASSOCIATIONS 1
ONE of the major efforts of labor unions in this country has been
directed toward the standardization of working conditions throughout
an industry or area, thus eliminating or reducing the factors of wages
and hours in competitive costs. The unions have sought to attain
this through Federal or State legislation for some groups of workers
or to establish certain minimum standards of work. Legislation has
been sought for those workers, chiefly women and minors, who have
been particularly difficult to include under collective-bargaining
arrangements, or for minimum standards of working conditions, such
as safety and sanitation, which it was thought better to have adminis­
tered or supervised by the State. More recently, organized labor
has cooperated with the Government in establishing minimum wage
and hour standards in industry generally, thus moving the area of
wage bargaining to higher levels.
The approach through governmental action has been secondary as
far as American trade-unions are concerned. Organized labor in
this country has directed its chief efforts toward standardization of
working conditions by means of collective bargaining. To achieve
this it has encouraged parallel organizations of employers in order to
obtain extended coverage under one agreement. When collective
bargaining with employers’ associations has been impractical or im­
possible, unions have presented identical agreements to the several
employers within an industry or competitive area. The latter method
is usually applied where there is a large number of small firms, particu­
larly within a metropolitan area. The agreements of the Steel Work­
ers’ Organizing Committee are instances of the extension of this
method to a mass-production industry. Although all the iron and
steel agreements are signed by individual companies, the agreements
embody nearly identical conditions of work.
The employers’ associations with which some of the unions deal are
usually not the industry’s regularly established trade association.
The trade associations generally antedate the formation of a strong
labor union in an industry and, as a rule, the first efforts of a union to
secure agreements are confined to bringing individual companies into
contractual relations with their employees. When a number of
companies within an area or industry have signed agreements, a fre­
quent development is the formation of an employers’ association or a
less formal committee to represent the union firms within that area or
industry in their dealings with their organized employees. Such
i P r e p a r e d b y H e le n S . H o e b e r o f t h e I n d u s t r i a l R e l a ti o n s D iv is io n o f t h e B u r e a u o f L a b o r S ta t is tic s .

302


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Collective Bargaining with Employers’ Associations

303

employers may continue to be members of the trade association for
their industry.
Although industry-wide trade associations have come to be a com­
mon characteristic of American business, the scope of employers’
associations which deal with unions is generally much more limited.
In some instances this may be due to the emphasis of the union on
uniting employers for bargaining purposes within a metropolitan area,
rather than on a national scale. As a rule, however, the unions work
toward the extension of the collective agreement to as wide a section
of the industry as possible. In a number of cases the unions and the
employers’ associations have together directed their efforts toward
bringing unorganized firms within the scope of collective agreements.
A necessary corollary of dealing through employers’ associations is a
high degree of unionization among the employees. It is estimated
that at the present time there are about 3% million workers covered
by agreements negotiated with national, regional, or city-wide em­
ployers’ associations.
There are only a few examples of industry-wide collective bargain­
ing in this country. Agreements covering all the employers in an
industry within a region are also infrequent and most of the instances
of association dealing occur on a city-wide basis. This article de­
scribes che areas of bargaining with employers’ associations at the
present time, including industry-wide, regional, or city-wide. Few
of the examples mentioned occur in the recently organized massproduction industries, although an agreement with a single plant in
the automobile or rubber industry may cover many more employees
than an association agreement covering every firm in an industry or
trade within the same city. The predominance of large corporations
in these industries has caused the efforts of unions to be directed first
toward bringing all the plants of a given corporation, regardless of
geographic location, within the scope of one agreement. An example
is the corporation-wide dealing between the General Electric Co. and
the United Electrical, Radio, and Machine Workers of America.
Although the coverage of such corporation-wide agreements in stand­
ardizing conditions of work in many cases far outnumbers that of
many of the agreements with employers’ associations, such corpora­
tion agreements are outside the scope of this article.
Nation-W ide Collective Bargaining in the Coal Industry

In anthracite mining a single agreement is signed to cover all opera­
tions. Bituminous mining is characterized by agreements covering
geographic regions, which are negotiated with regional mine operators’
associations. Actually, however, collective bargaining for many
years has been conducted on a Nation-wide basis. With some inter
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

304

ruptions, the United Mine Workers of America has maintained uniform
working conditions in a major part of the bituminous-coal industry by
signing separate agreements which expire on the same date. After the
negotiation of the new agreement for the most important producing
area has been effected, the other districts have proceeded to sign agree­
ments with virtually identical terms.
At the present time the union negotiates the first agreement with the
Appalachian conference of operators, composed of representatives of
the various regional associations within that area. At this conference
other regional associations of operators also have their representatives.
It is in this conference that the actual bargaining on an industry-wide
basis takes place and the signing of agreements in other districts, sub­
sequent to the signing of the Appalachian agreement, is largely a
formality.
National Bargaining on the Railroads
The traditional bargaining unit in railroad transportation is the indi­
vidual railroad system. The workers are organized on the basis
of craft, and each craft union negotiates separate agreements with the
various systems. National bargaining has occurred at intervals since
1932. Although the regular working agreements continue to be signed
by system, major questions of wage increases and decreases have been
settled since that time on a national scale. The Association of Ameri­
can Railroads is the mechanism through which the railroads conduct
the Nation-wide bargaining, while the labor organizations are brought
together through the Railway Labor Executives Association which is
composed of the presidents of 20 unions of railroad workers.
Other Industry- or H ade-W ide Bargaining

The American examples of trade-wide bargaining of longest status
occur in the pottery and glassware industries. Since the early years of
this century an annual meeting has been held between the representa­
tives of the United States Potters’ Association and the National
Brotherhood of Operative Potters. The National Association of
Pressed and Blown Glassware has been meeting with the American
Flint Glass Workers’ Union for a similar period, as have the glass bottle
manufacturers—though not organized into a formal association— with
the Glass Bottle Blowers’ Association of United States and Canada.
In each of these cases the bargaining agreements are confined chiefly
to detailed piece-rate schedules, although a considerable body of
“unwritten law” has developed in supplement to the national agree­
ment to govern employer-employee relations within a plant. Origi­
nally, the trade-wide bargaining was established to regulate the work­
ing conditions of highly skilled craftsmen within these industries.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Collective Bargaining with Employers’ Associations

305

With the development of technological changes, ope skilled occupation
after another has been eliminated. As a result the unions have
extended their jurisdiction to include a major part of the workers in
and around the plants and these unskilled and semiskilled employees
are now covered in the national agreements to the degree that they
are unionized. In the glassware industry, several large companies have
never been organized and consequently are outside the scope of the
agreements. In the pottery industry virtually the entire industry is
covered. Although the coverage of the national agreements has
fluctuated with the strength of the unions, for several decades in these
industries the existing bargaining relations have been on a national
scale.
There are a few other instances of industry-wide dealing, each of
them originating from the efforts of a highly skilled craft to protect
its conditions of employment. Among these are the Wall Paper In­
stitute and the United Wall Paper Crafts of North America, covering
wallpaper printing; the National Automatic Sprinkler Association and
the United Association of Journeymen Plumbers’ and Steamfitters of
the United States and Canada, covering sprinkler fitting; the Manu­
facturers’ Protective and Development Association and the Molders’
Union of North America, covering stove-molding and liot-water
castings; and the Wire Cloth Manufacturers’ Association and the
American Wire Weavers’ Protective Association.
A somewhat similar instance occurs in the elevator manufacturing
industry. Although wage rates are negotiated locally, the manufac­
ture and installation of elevators is largely regulated by national con­
ferences between the National Elevator Manufacturing Industry and
the International Union of Elevator Constructors. A standard
agreement is used in all localities, with the locally negotiated rates
inserted as agreed upon.
The manufacture of wooden kegs and barrels should also be men­
tioned as an instance of national conferences between the employers
and the union. The conferences, however, have resulted in no agree­
ment on an industry scale and discussion of working conditions has
been of far less importance than mutual discussion of trade-promotion
plans.
A different kind of bargaining relationship has been built up in the
manufacture of flat glass. By far the major part of the production in
this industry is centralized in two large producing companies. These
companies deal individually with the American Federation of Flat
Glass Workers. The independent manufacturers are organized,
however, into the Fourcault Manufacturers’ Association which deals
with the union on a unified basis for the rest of the industry.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

306

Collective Bargaining for Geographic Areas

In tlie hosiery industry a bargaining relationship of 10 years’ stand­
ing exists between the Full-Fashioned Hosiery Manufacturers of
America, Inc., and the American Federation of Hosiery Workers.
The employers’ association, originally covering only Philadelphia mills,
now covers a major part of the northern section of full-fashioned
hosiery manufacture. Conferences occur annually, with occasional
additional meetings on specific subjects. Under the agreement the
joint relations are administered by a permanent impartial chairman.
A recent modification in procedure provides for the local negotiation
of wage scales within the framework of the general agreement. The
hosiery workers’ union was instrumental in the formation several
years ago of the American Hosiery Dyeing and Finishing Association.
This association, composed largely of New Jersey and Pennsylvania
mills, bargains with the Hosiery Workers for its members.
In the textile industry recent developments have brought into con­
tractual relationships with the Textile Workers’ Union of America a
major part of the northern silk mills, combined into several associa­
tions. An arrangement of longer standing exists in the dyeing and
finishing of textiles in nonintegrated mills. In both these instances,
the main strength of the employers’ associations is in New Jersey and
Pennsylvania.
Maritime workers frequently deal with employers’ associations cov­
ering the shipping lines and dock employers on a given coast. Since
the workers are organized into craft unions, agreements usually are
signed separately for each craft. On the Pacific coast, however, the
maritime unions are affiliated with the Maritime Federation of the
Pacific which secures cooperation in bargaining between the various
crafts. There the separate agreements expire on the same date and
none of the unions signs a new agreement until satisfactory terms have
been reached by all. On the Pacific coast the coastwise and inter­
coastal lines, the latter not organized into a formal association, deal
as units with the workers’ unions. On the Atlantic coast only the un­
licensed personnel, through the National Maritime Union, deal with
an association of shipping lines. Longshoremen, though customarily
signing agreements with port associations, usually secure some degree
of uniformity on a coastal basis through conferences. The degree of
uniformity is highest on the Pacific coast.
In the Pacific Northwest the pulp and paper industry, though deal­
ing elsewhere on the basis of individual companies, is combined into
the Pacific Coast Paper Manufacturers’ Association which deals with
the two unions in the field. The unions, representing different occu­
pations in the industry, are the International Brotherhood of Papermakers and the Pulp, Sulphite, and Paper Mills Workers of the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Collective Bargaining with Employers’ Associations

307

United States and Canada. Although agreements are signed sepa­
rately, for the past several years the terms have been negotiated in
joint conference.
The lumber industry is one which is not yet well organized through­
out the country but in which the dominant method of present dealing
is through associations within the producing area. The Columbia
Basin Loggers’ Association and the Timber Producers’ Association in
Minnesota are examples of associations dealing with the union in this
industry.
The fishing industry, particularly on the Pacific coast where it is
well organized, is an example of bargaining almost exclusively on an
association basis. The employers, however, are organized into a
number of separate associations, such as the Alaska Packers’ Associa­
tion and the Central Pacific Wholesale Fish Dealers’ Association.
Two outstanding developments of dealing over a large area have
recently occurred. One is the agreement between the National
Association of Retail Meat Dealers and the Amalgamated Meat
Cutters and Butcher Workmen of North America. This is a uniform
agreement for 30,000 retail meat dealers—largely in the Middle West—
but wage rates are separately negotiated with associations of dealers
within each city. The other significant development is the agreement
between 12 interstate trucking lines, not organized into a formal
employers’ association, and the International Brotherhood of Team­
sters, Chauffeurs, Stablemen, and Helpers of America. This agree­
ment also covers the middle western area. Both of these area agree­
ments occur in industries which have been characteristically dealing
with unions through employers’ associations confined to the firms
operating within a given city.
B A R G A IN IN G IN T H E N E E D L E T R A D E S W IT H IN M E T R O P O L IT A N A R E A S

Outstanding examples of stable bargaining relationships over a
long period of time between employers’ associations and unions are
found in the needle trades. In the men’s and women’s clothing,
men’s hats and millinery, and fur industries the earliest efforts of
unions to organize were accompanied by efforts to combine into
associations the employers within the producing area. Bargaining
has become established in these industries, with highly developed
industrial relations machinery within each of the metropolitan areas
which are important as producing centers. These unions and
employers’ associations customarily make use of a permanent impartial
chairman to administer the agreement and there are numerous
examples of joint trade boards, stabilization commissions, and other
similar bodies which deal on a day-to-day basis with the problems of
the industry.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

308

Monthly Labor Review—August 1939

These industries all have the problem of “run-away” shops, which
leave the unionized areas and, with the small capital investment
required, are able to establish themselves in low-wage, semirural
sections. This has been a major reason for the unions’ insistence
upon dealing on an association basis, for it is through the combined
pressure of both the union and the employer association that these
“run away” shops can be brought under control. Another problem
within these industries is the regulation of the jobber-contractor
relationship. Jobbers have taken advantage of the extreme seasonal
fluctuations, and the small investment involved in setting up a shop,
to encourage an oversupply of contractors. Cut-throat competition
among the contractors has been furthered by the frequent practice of
establishing “fly by night” shops for the duration of a contract
secured by underbidding regularly operating shops. Both the owners
of shops operating under union conditions and their workers have
thus faced a constant threat to industrial stability. Through col­
lective bargaining, the oversupply of contractors has been dealt with
and the jobber’s responsibility for maintaining union conditions in
his contract shops has been established. A large portion of the
employer-union negotiations in the needle trades deal with these
three-way problems, in addition to the usual wages, hours, and working
conditions.
The employers within a given city are usually organized into more
than one association within each of the needle trades. The basis of
distinction is both the type of product and the classification of employ­
ers (i. e., jobbers, contractors, or inside manufacturers). The unions
have frequently expressed a desire for more uniformity among the
employers’ organizations throughout the industry. Although a major
part of the production in the country is covered by the New York
City agreements alone, the unions have made repeated efforts over
several decades to secure industry-wide dealing in the interests of
national standardization. Thus far, there has been only one successful
instance—a recent Nation-wide conference to negotiate the amount of
a wage increase in men’s clothing.
O T H E R C IT Y -W ID E D E A L IN G

In many industries and trades characterized by numerous small
establishments within a city, collective bargaining has been conducted
with associations of employers within the city. In many cases the
associations are formal organizations in which the association officers
have the power to bind all members to the agreed terms of employ­
ment. In other cases the employers may unite informally and per­
haps only for the duration of the bargaining conferences. In many
instances the lack of a continuing employers’ association makes no

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Collective Bargaining with Employers’ Associations

309

difference in the actual negotiation of the agreement, but complicates
considerably the enforcement of the agreement.
In cases of city-wide bargaining the extent of coverage of the
employers’ association generally depends upon the strength of the
union. It is common to find within a city an organized group of
employers dealing with the union, while other employers within the
same industry are organized into a separate association or have no
organization. In some cases the union employers form an organized
group within a trade association which also includes nonunion
employers in the city.
There are probably 5,000 local or city employer associations
throughout the country which deal with various unions. More of
these are found in building construction than in any other single
industry. Other examples, where the predominant method of dealing
is with city-wide associations^ are brewing, retail trade, baking, printing
and publishing, restaurants, trucking, and barber shops.
Prevalence of Collective Bargaining with Employers ’ Associations

The following table lists the major fields of employment according
to the prevalence of union dealing with employers’ associations. The
classification has no reference to the extent of unionization within the
industries but to the proportion of existing bargaining which is done
through employers’ associations. Excluded from the list are those
industries in which there is little or no bargaining.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

310

Prevalence of Collective Bargaining with Employers’ Associations
[ T h i s is a li s t in g o f t h e r e l a ti v e p r o p o r ti o n o f e x is tin g c o lle c tiv e b a r g a i n in g w i t h e m p lo y e r s ’ a s s o c ia tio n s ;
i t d o e s n o t r e f e r t o t h e r e l a t i v e a m o u n t o f c o lle c tiv e b a r g a i n in g w i t h i n t h e v a r i o u s in d u s tr i e s . I n d u s t r i e s
in w h ic h th e r e is o n ly a n e g lig ib le a m o u n t of c o lle c tiv e b a r g a i n in g a re o m itte d .]

T r a d e s o r i n d u s tr i e s i n w h ic h c o lle c tiv e b a r g a i n in g is c a rr ie d o n w i t h e m p lo y e r s ’ a s s o c ia tio n s —
U s u a lly

F re q u e n tly

B re w e rie s .
B u il d in g c o n s tr u c tio n .
B u il d in g m a in te n a n c e .
B u tc h e r s (e m p lo y e d in r e t a il
tra d e ).
C ig a r s .1
C lo th in g , m e n ’s.
C lo t h in g , w o m e n ’s.
C o a l m i n in g .
F is h in g .
G la s s w a r e .
H o s ie r y .
H a t s a n d m i lli n e r y .
L o n g s h o re .
M a ritim e tra n s p o rt.
M o tio n p i c t u r e p r o d u c t io n
(e x c e p t a c to r s ) .

B a k i n g ( in c lu d e s r o u te s a le s m a n ) .
B a rb e rs.
B o o k a n d jo b p r in t in g .
B r ic k a n d c la y p r o d u c t s ( in c lu d e s
p o t t e r y a n d c h in a w a r e ) . 3
C a n n in g .
C le a n in g a n d d y e in g .
D y e in g a n d f in is h in g te x tile s .
H o te l s a n d r e s t a u r a n t s .
L a u n d r ie s .
L e a t h e r ( ta n n in g a n d l e a th e r p ro d u c t s o th e r t h a n s h o e s ).
L u m b e r a n d ti m b e r p r o d u c t s (exe lu d e s f u r n i t u r e , p u l p a n d p a p e r , t u r p e n t i n e , a n d r o s in ) .
N e w sp a p e r p rin tin g .
P e r f o r m e r s (s ta g e , m o t io n p ic tu r e ,
r a d i o , a n d o th e r p e r f o r m e r s ) .
Q u a r r y in g .
R e t a i l tr a d e .
S h ip b u il d i n g a n d r e p a ir s .
S h o e s .3
S ilk a n d r a y o n te x tile s .
T a ilo r s ( m e r c h a n t ta ilo r s c m p lo y e d in r e t a il t r a d e ) .
T h e a t e r m a in te n a n c e e m p lo y e e s ,
p i c t u r e m a c h in e o p e r a to r s , u s h e rs , s ta g e h a n d s , b o x -o ffice e m ­
p lo y e e s .
T r u c k i n g ( c i ty a n d i n t e r c i t y — exe lu d e s s a le s m e n ) .
U p h o ls te r i n g a n d flo o r c o v e rin g
( e m p lo y e d in r e t a il tr a d e ) .

S e ld o m
A lu m in u m .
A u to m o b i le s a n d p a r t s .
B u s tra n s p o rt, in te rc ity .
C e m e n t m a n u f a c tu r e .
C h e m ic a ls ( p a i n ts , v a r n i s h , fe r tiliz e r ,
c o s m e tic s , p e r f u m e , s o a p , e x p lo s iv e s ,
d r u g s , a n d i n d u s t r i a l c h e m ic a ls ) .
C ig a r e tte s .
C ity p a sse n g e r tr a n s p o r t.4
C o k e a n d m a n u f a c t u r e d g a s .4
C o tt o n te x til e s a n d s m a l l w a re s .
E l e c t r i c a l e q u i p m e n t (in c lu d e s r a d io s ) .
F l o u r a n d o th e r g r a in p r o d u c t s .
F u rn itu re .
G la s s ( f ia t g la s s ) .6
I r o n a n d s te e l.
L i g h t a n d p o w e r .4
M a c h in e ry a n d p a rts .
M e a t p a c k in g .
M e t a l m in in g .
M i l k a n d o th e r d a i r y p r o d u c t s (in
e lu d e s r o u t e s a le s m e n ) .
M u s i c ia n s .6
N e w s p a p e r office e m p lo y e e s .
P e tr o l e u m (c r u d e p r o d u c t io n a n d re f in in g ) .
P u lp a n d p a p e r p ro d u c ts.
R a y o n y a r n .7
R u b b e r.
S to v e s .
S u g a r re f in in g , c a n e a n d b e e t.
T a x ic a b .
T e le g r a p h .7
W h o le s a le tr a d e .
W o o le n a n d w o r s t e d te x tile s .

i A lth o u g h t h e i n d u s t r y is n o t w e ll o r g a n iz e d , t h e m a jo r p r o p o r ti o n o f t h e u n io n i z e d e m p o ly e e s a r e c o v ­
e r e d b y a n a s s o c ia tio n a g r e e m e n t i n T a m p a , F la .
t O n ly t h e p o t t e r y b r a n c h o f t h e i n d u s t r y is c o m m o n ly u n d e r a s s o c ia tio n a g r e e m e n t s .
3 L a r g e ly in E a s t e r n S t a t e s , e s p e c ia lly M a s s a c h u s e tt s .
4 T h e p u b l i c u t i l i t y fie ld s o f e m p l o y m e n t a r e a c t u a l l y o u ts id e t h e s c o p e o f p o s s ib le d e a lin g w i t h lo c a l
e m p lo y e r s ' a s s o c ia tio n s , s in c e th e r e is u s u a ll y o n ly a s in g le c o m p a n y t o a n a r e a .
6 C o m p a n ie s i n d e p e n d e n t o f P i t t s b u r g h P l a t e G la s s C o . a n d L i b b y O w e n s F o r d d e a l th r o u g h a n a s s o c ia ­
ti o n , b u t t h e m a jo r p r o p o r ti o n o f t h e u n io n iz e d e m p lo y e e s w o r k fo r t h e tw o la rg e c o m p a n ie s .
6 M u s i c ia n s m a i n t a i n u n if o r m c o n d i tio n s of e m p lo y m e n t w i t h i n a n a r e a b y p r e s e n t in g i d e n tic a l te r m s to
i n d i v i d u a l e m p lo y e r s .
7 S in c e th e r e a r e o n ly a fe w e m p lo y e r s in t h i s i n d u s t r y , t h e a b s e n c e o f d e a lin g w i t h e m p lo y e r s ’ a s s o c ia ­
ti o n s p r e s e n t s a s o m e w h a t d if f e r e n t s i t u a t i o n fr o m t h e o t h e r in d u s t r i e s .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

FREQ U EN CY OF PAY DAYS IN
A M ERICAN IN D U S T R Y 1
THE frequency of pay periods in private industry in the United States
is governed in some cases by State laws regulating the payment of
wages and salaries,2 in others by the general practice of the industry
concerned, and in still others solely by the policy of the individual
employer.
Available information, covering 137,735 reporting establishments
in manufacturing and certain nonmanufacturing industries employing
7,038,816 workers in the month of August 1938, revealed that the
weekly pay period is the most common in private employment, not­
withstanding the fact that legislation enacted by the majority of States
gives employers the privilege of semimonthly payments. Of the total
number of workers covered, more than 66 percent received their
wages or salaries each week. Nearly 24 percent were paid every
half month, approximately 8 percent were paid on a biweekly basis,
and those paid monthly, every 10 days, or for some other period,
represented less than 3 percent of the total.
In a number of instances, notably in retail and wholesale trade
and in insurance and brokerage, the data indicated that certain
employees were paid commissions covering intervals other than their
regular pay periods. For the purpose of this study, however, estab­
lishments and employees, where commissions were so paid, were
classified according to the regular periods for which salaries or wages
were paid.
The industries covered in compiling these data were those for
which the Bureau publishes monthly employment statistics, namely,
the 92 individual manufacturing industries,3 the mining industries,
public utilities, wholesale and retail trade, personal and financial
service industries, and private building construction. The employ­
ment figures shown for the manufacturing, mining, laundry, and
uyeing and cleaning industries relate to wage earners only, except for
crude petroleum producing in the mining group which includes also
the clerical field force. In public utilities both wage earners and
salaried employees are covered, and in building construction wage
earners of all classes are included. Both office and service personnel
are covered for hotels. Employment in the other three industries shown
consists largely of salaried workers.
1 P r e p a r e d b y A lic e O le n in , u n d e r t h e d ir e c ti o n o f L e w is E . T a l b e r t , c h ie f o f t h e B u r e a u ’s D iv is io n o f
E m p l o y m e n t S ta t i s t i c s .
2 F o r l e g is la tiv e p r o v is io n s see M o n t h l y L a b o r R e v i e w , D e c e m b e r 1938, p . 1297. S ee a lso P a y r o l l P o lic ie s
in P h ila d e lp h ia , b y H o w a rd T . H o v d e , U n iv e rs ity of P e n n s y lv a n ia , W h a rto n S ch o o l of F in a n c e a n d
C o m m e r c e , 1937.
2 I n c l u d e s s te a m a n d e l e c tr i c r a i lr o a d r e p a i r s h o p s , w h ic h w e re l a t e r d i s c o n t in u e d a s m a n u f a c t u r i n g
in d u s t r i e s .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

311

312

Monthly Labor Review—August 1939

Information with regard to possible waiting periods between the
termination of a pay period and the time of actual payment was not
available from the reports used in compiling this study.
The establishment and employment totals shown in the State tab­
ulations are somewhat greater than the totals by industries, as the
State totals are supplemented by data for certain other industries, such
as miscellaneous manufacturing and resort hotels, which have not been
included in the industry summaries. By themselves these supple­
mentary industries are relatively unimportant but geographically
they may add considerably to the comprehensiveness of the reporting
sample. Resort hotels, for example, constitute an important employ­
ment factor in some States, but not in others.
In presenting the figures in this report, it was necessary occasionally
to effect certain combinations or to withhold data in order to avoid
the publication of figures which would disclose the identity of reporting
establishments. Such items, however, were included in the totals
presented.
Both the State and the industry distributions for this study are
presented in two types of tables—one showing by establishments the
frequency of pay periods as reported by these establishments, and the
other showing the distribution of employees by length of pay period.
The establishment tables contain, in addition to information regard­
ing the various single lengths of pay periods such as 1 week, 2 weeks,
one-half month, etc., a column showing the number of establishments
having more than one type of pay period. Because the employees in
establishments having more than one type of pay period were dis­
tributed under the respective classifications according to their fre­
quency of pay, the data shown in the two types of tables are not
strictly analagous. For example, the employees shown in tables 1
and 2 as being paid at 1-week intervals include some of the employees
of establishments classified in tables 3 and 4 as having “more than
1 pay period.”
Length of P a y Periods of Employees, by States

The effect of regulatory legislation on the payment of wages and
salaries each week can readily be seen in the figures for the New
England States shown in table 1. In these States employers, with
few exceptions, are required by law to pay their workers by the week.
For the region as a whole, 98.2 percent of the employees were paid by
the week. By States, the range was from 99.1 percent in Massachu­
setts to 95.6 percent in Vermont.
The reports from firms in the Middle Atlantic area, which covered
the largest number of workers, showed no such consistency, for while
New York firms paid 91.0 percent of their employees by the week,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Frequency of Pay Days in Industry

313

Pennsylvania firms paid only 41.4 percent by tlie week and a slightly
greater proportion, 45.4 percent, semimonthly. Employers in New
Jersey paid 81.5 percent of their workers by the week.
Over two-thirds (68.1 percent) of the employees in the Southern
States along the Atlantic Seaboard were paid by the week. In the
individual States in this region, however, the proportions differed
considerably, ranging from 93.0 percent in South Carolina to 14.7
percent in West Virginia, the semimonthly pay period taking pre­
cedence in the latter State. In fact, of all the States, West Virginia
had the largest percentage of workers (75.4 percent) who were paid
by the half month; this was due primarily to the policy of the bi­
tuminous-coal mining companies, although the majority of the wage
earners in the manufacturing industries in this State were also paid
semimonthly.
While the major portion of the workers in the vast central areas
from the northern boundary to the Gulf of Mexico received their
remuneration weekly, semimonthly pay days were quite common,
predominating over the 1-week periods in five of the States (North
and South Dakota, Kentucky, Oklahoma, and Texas). The Dakotas
also registered the largest percentages of employees who were paid for
some “other” length of pay period than the five more usual methods.
More than half of the workers covered by reports from the Moun­
tain States were paid semimonthly, with Montana the only State in
this region in which the weekly pay envelope was slightly more
prevalent.
In the Pacific States the weekly and semimonthly pay days were
almost evenly divided, the weekly period leading by about 2 percent.
The individual Pacific States did not, however, show the same ratio.
In California 50.5 percent of the employees were paid by the week
as against 41.3 semimonthly, while in Washington and Oregon 52.1
and 52.6 percent, respectively, of the workers received semimonthly
pay.

163839

39

-4


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

314

Monthly Labor Review—August 1939

T a b l e 1.— Employees, by States, in Reporting Manufacturing and Nonmanufacturing

Establishments in August 1938, and Percentage Distribution, by Length of Pay Period
P e r c e n t o f e m p lo y e e s w h o s e p a y p e r io d c o v e re d —
T o ta l
n u m b e r of
e m p lo y e e s

A ll p e ­
rio d s

7,0 3 8 ,8 1 6

100.0

6 6 .3

7 .6

2 3 .8

1 .8

788,493
56,450
40,993
16,845
407,108
78,225
188,872

100.0
100.0
100.0
100.0
100.0
100.0
100.0

9 8 .2
9 8 .9
9 7 .5
95. 6
9 9 .1
9 8 .9
9 6 .2

.1

1 .4
.6

(2)
(2)
.3

3 4 .1
.7
1 .0
3 .4

.3
.3
1 .8
.1
.2
.1
.1

h ilid d le A t l a n t i c --------------------------N e w Y o r k ________________ 1 N e w J e r s e y __________________
--P e n n s y l v a n i a . . _____ __

1,95 6 ,9 6 5
886,928
338,185
731,852

100.0
100.0
100.0
100.0

7 0 .8
9 1 .0
8 1 .5
4 1 .4

6 .4
1 .3
9 .2
11.3

2 0 .2
3 .7
9 .1
4 5 .4

2 .2
3 .9
.2
1.0

.7

.2

E a s t N o r t h C e n t r a l ___________
_______________________
O h io
I n d i a n a - __________________ I ll i n o i s __________ ______ __ - M ic h i g a n _
_________
- -

1,86 2 ,1 7 8
510,810
238,851
540,064
350,171
222,282

100.0
100.0
100.0
100.0
100.0
100.0

61 .0
5 9 .6
58.7
64 .5
6 1 .8
5 7 .0

13.4
13.3
7 .8
9 .9
18.9
19.6

2 4 .2
26.1
32 .6
2 4 .9
16.1
21 .9

.9
.6
.3
.4
2 .3
1 .2

.3
.2
.3
.2
.7

.2
.2
.3
.1
.2
.3

W e s t N o r t h C e n t r a l . ----------------M i n n e s o t a ---------------------------I o w a . . . ----------------------------- M i s s o u r i . ____________ ______

434, 745
103,997
64,262
167,897
6.140
8,9 6 4
30,575
52,403

100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0

57.5
4 9 .0
60 .3
64 .3
37. 9
37. 6
54 .4
57.1

6 .5
10.4
3 .7
7 .2
5 .1
8 .1
2 .0
2 .2

3 3 .1
36 .9
33.1
26 .9
45 .0
47. 4
4 0 .3
37 .5

1 .8
2 .9
1 .5
1.1
4 .3
3 .3
1 .7
2 .1

.1
(4)
(4)
(4)

1 .0
.8
1 .4
.5
7 .7
3 .6
1 .6
1 .1

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0

68.1
83 .7
77 .6
8 3 .0
68.4
14.7
77 .2
93. 0
82 .1
73 .4

7 .5
7 .9
14.2
(2)
10.1
3 .7
11.0
1. 7
.6

22 .3
6. 8
7 .4
3 16.3
2 0 .2
75.4
10.5
4 .1
11.6
23 .6

1 .8
1 .4
.8
.7
1.1
6 .1
1.1
1 .0
.8
1 .7

.1

G e o r g ia ______________ ________
F l o r i d a __________ _______

814,649
16,786
134,994
42,311
110,506
131, 280
157, 251
67,503
110,658
42,579

E a s t S o u th C e n t r a l _______ - . . .
K e n t u c k y _________ ________
T e n n e s s e e . . . _______________
A l a b a m a ________ __________
M is s i s s i p p i___________________

278, 565
80,095
100,094
79, 392
18,608

100.0
100.0
100.0
100.0
100.0

56.3
4 4 .8
68 .2
52 .8
57 .8

11.6
8 .1
14.5
10,9
13.5

30.1
4 5 .8
16.1
3 3 .4
2 4 .8

1 .4
1.1
.7
2 .4
3 .1

W e s t S o u th C e n t r a l . . . _______

247,942
26, 327
55, 286
42,895
123,434

100.0
100.0
100.0
100.0
100.0

4 9 .5
52 .3
61 .6
4 0 .7
46. 6

3 .5
5. 5

42 .1
3 2 .2
2 9 .2
5 1 .3
4 6 .8

4 .0
9 .4
1 .7
4 .2
3 .8

128, 579
15,455
n ; i59
9,278
44,990
7,306
13,431
23; 689
3, 271

100.0
100 0
100. 0
100.0
100.0
100.0
100. 0
100.0
100. 0

3 6 .2
49 1
3 1 .9
2 0 .9
4 3 .7
25 7
2 4 .1
33.1
24. 9

.5

5 5 .8
43 9
4 4 .0
73 .0
4 9 .1
3 67. 6
71 .0
6 0 .7
72 0

4 .9
4. 8
17. 7
4 .4
4 .2
4 .2
2 .4
2 .6
2. 5

526, 269
89,963
52,191
384,115

100.0
100.0
100.0
100.0

4 6 .1
3 5 .5
32 .3
5 0 .5

4.7
2.4
3.7
5.3

44 .3
52 .1
52 .6
4 1 .3

4 .2
8 .3
10.4
2 .5

S t a t e a n d g e o g r a p h ic a l d iv is io n

U n i t e d S t a t e s ____________________
M a i n e _________________

- --

* N e b r a s k a _____________________
K a n s a s ________
_________
S o u th A t l a n t i c ________ __________
M a r y l a n d - - - -------------------V i r g i n i a . __ ___________ - - - W e s t V ir g in i a ________________
N o r t h C a r o l i n a _____ ______

L o u isia n a
___________ . . .
O k la h o m a _________ _________
M o u n t a i n _______________

___ -

C o lo r a d o ____________
U t a h ______________

.

_

_________

P a c if ic _____________________
___
W a s h i n g to n
.. .
O r e g o n _______________________
C a l if o r n ia ______ ______________

1 w eek

2 w eeks

H a lf
m o n th

2.6

5.0

7.1
2.5
1. 8

1.6
3
4 1
.3

21.7
1.0
2.3

( )

1 m o n t h 10 d a y s

O th e r
p e rio d s

0 .2

0 .3
(l)
.2
.1
.2
(i)
(4)
(!)

«
.3
.1
(4)

.1
(')
(')

(4)
(4)

0)
(4)

(4)
(4)
(4)
(')
(4)
.4
.2
(4)
(4)
(4)
«

.2
.1
.2
.2
.5
.3
.4
.2
.5
.5
.8

.2

.9
.6
.2
1 .3
1 .0

.2

1 .5
1 .9
2 .3
1 .4
1 .1
2 .5
1 .5
1 .3
.1

(0
(4)
0 )

(4)
.2
.7
.2
0)

.2
.2

.5
1 .0
.8
.4

1 L e ss t h a n a t w e n t i e t h o f 1 p e r c e n t.
2 C o m b in e d w i t h s e m i m o n th l y d a t a . S e e f o o tn o te 3.
s T h e fig u re s fr o m w h ic h t h i s p e r c e n ta g e h a s b e e n c o m p u te d in c lu d e a n u m b e r o f e m p lo y e e s p a i d o n a
b iw e e k ly b a s is . T h e s e d a t a w e re c o m b in e d in o r d e r to a v o i d d is c lo s in g in f o r m a ti o n fo r le ss t h a n 3 r e p o r t in g
e s ta b lis h m e n ts .
* D a t a r e p o r t s a re w i t h h e l d to a v o i d d is c lo s in g in f o r m a ti o n f o r le ss t h a n 3 e s ta b lis h m e n ts . T h e y a r e ,
h o w e v e r , in c l u d e d i n t h e U n i t e d S ta t e s t o t a l s a n d w h e r e p o s s ib le in t h e t o t a l s o f t h e g e o g r a p h ic a r e a .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Frequency of Pay Days in Industry

315

Length of P a y Periods of Employees , by Industry

A substantial majority of the wage earners in the manufacturing
establishments surveyed, which constitute approximately 50 percent
of total factory employment in the United States, received their earn­
ings weekly. The total number covered in the survey (table 2) was
3,915,524, of whom 69.4 percent were paid by the week. Eighteen
percent received their wages semimonthly and 11.4 percent at 2week intervals. Persons paid each month, each 10 days, or some other
period accounted for only a minor portion of the total, the percent­
ages being 0.8, 0.4, and less than one-twentieth, respectively.
T a b l e 2 . —Employees, by Industries, in Reporting Manufacturing and Nonmanufacturing

Establishments in August 1938, and Percentage Distribution by Length of P ay Period

Industry

Total
number
of em ­
ployees

Percent of employees whose pay period
covered—
All
1
2
1
Half
10 Other
peri­ week
weeks month month days peri­
ods
ods

M a n u f a c tu r in g I n d u s t r i e s
T o t a l m a n u f a c t u r i n g ................................ ..........................
D u r a b l e g o o d s _________________________ _____ N o n d u r a b l e g o o d s --------------- --------------------------

3, 915, 524 100.0
1,794, 255 100. 0
2,118,034 100.0

69.4
53.7
82.9

11.4
14.4
8.8

18.0
30.0
8.0

535, 321
310,867
8,485
12,080

100.0
100.0
100.0
100.0

36.6
12.8
25.1
74.0

20.4
24.7
36.5
10.1

42.1
62.5
38.4
15.9

8.404
6,443
25,381
18,150
24,660

100.0
100. 0
100.0
100. 0
100.0

88.4
58.5
87.9
38.7
65.9

3.5
26.8
3.2
46.1
20.3

8.1
14. 7
8.9
15.2
13. 8

24, 438
25, 335
19, 203
27' 215

100.0
100.0
100.0
100.0

85. 6
75.9
43. 7
89.3

6.0
8.4
12.4
11. 7
27.0
29.3
(3)
4 10.3

9,147 100.0
10,636 100.0

75.2
81.2

13.2
11.0

11.6
7.8

483, 215 100.0
40,686 100. 0

78.1
90. 8

8.5
4.4

13.3
4.8

18, 710 100.0

0.8
1.5
.2

0.4
.4
.1

(0

D u r a b le goods

I r o n a n d s te e l a n d t h e i r p r o d u c t s , n o t in c lu d in g
m a c h i n e r y . ............................................. ....................... —
B la s t f u r n a c e s , s t e e l w o r k s , a n d r o ll in g m i lls .
B o lt s , n u t s , w a s h e r s , a n d r i v e t s . —....................
C a s t- i r o n p i p e ________________ _______________
C u t l e r y ( n o t i n c lu d in g s ilv e r a n d p la te d
c u t l e r y ) a n d e d g e t o o l s . ..................... .................
F o r g in g s , ir o n a n d s t e e l ........................ ...................
H a r d w a r e ------------------- --------- -------------------------P l u m b e r s ’ s u p p l i e s . . ........................... .....................
S t a m p e d a n d e n a m e le d w a r e -----------------------S te a m a n d h o t - w a t e r h e a t i n g a p p a r a t u s a n d
s te a m f i t t i n g s ----- -------------- --------------------- —.
S to v e s .................................................................... ............
S t r u c t u r a l a n d o r n a m e n t a l m e t a l w o r k ______
T i n c a n s a n d o t h e r t i n w a r e . . . ______________
T o o ls ( n o t in c lu d in g e d g e to o ls , m a c h in e
to o ls , file s , a n d s a w s ) _____ ________ ________
W i r e w o r k . . ______________ ___________________
M a c h i n e r y , n o t in c lu d in g t r a n s p o r t a t i o n e q u i p ­
m e n t ___________________________________________
A g r ic u l tu r a l i m p l e m e n t s (in c lu d in g tr a c to r s )
C a s h r e g i s t e r s , a d d i n g m a c h in e s , a n d c a lc u ­
la t i n g m a c h i n e s .-------- -------------------------------E le c tric a l m a c h in e ry , a p p a ra tu s , a n d s u p ­
p lie s _____________ ____ •— .........................................
E n g i n e s , t u r b i n e s , w a t e r w h e e l s , w in d m i lls .
F o u n d r y a n d m a c h in e - s h o p p r o d u c t s _______
M a c h i n e to o l s ................................................................
R a d i o s a n d p h o n o g r a p h s ........................................
T e x t i l e m a c h i n e r y a n d p a r t s ________________
T y p e w r i t e r s a n d p a r t s ..............................................
T r a n s p o r t a t i o n e q u i p m e n t ______________________
A i r c r a f t . . ________ ___________ _____ __________
A u t o m o b i l e s .._______________________________
C a r s , e le c tr ic - a n d s t e a m - r a il r o a d ___________
L o c o m o ti v e s ........... ..................... .......... ........................
S h i p b u i l d i n g . _______________________________

See footn o tes a t end o f table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

98.3

8 1.7

(6)

138, 969
21,018
IST 404
29, 474
24, 334
12. 670
15’ 619

100.0 80.5
100.0 71.3
100.0 66.5
100.0 81.0
100. 0 93. 6
100.0 96. 3
100. 0 7100.0

6.7
12.2
12.7
8.9
4.5
6 3. 7

12.8
16.5
20.7
10.1
1. 9
(6)
(2)

253,848
18,051
181,323
12,114
3,428
3 8 ,932

100.0
100.0
100.0
100.0
100.0
100.0

22.4
(3)
30.1
17.2

3.7
4 12.4
1.8
26. 6
7.2
.8

70.5
87. 6
63.4
56.2
92. 8
98.6

.6

.9

«
«

(2)
(2)

(2)
(2)

(2)
(2)

(2)

.4
(2)
.1

(0

(2)
.1
(2)

(2)
(2)

3.1

.3

4.3
(2)

.4

(*>

(2)

Monthly Labor Review—August 1939

316
T

2 . — Employees, by Industries, in Reporting Manufacturing and Nonmanufacturing
Establishments in August 1938, and Percentage Distribution by Length of P ay Period—•
Continued

a ble

Total
In d u s tr y

num ber
of e m ­
p lo y e e s

P e r c e n t o f e m p lo y e e s w h o s e p a y
c o v e re d —

p e r io d

Othe

All

1
10 peri­
2
Half
1
p e ri­
w e e k weeks month month days
ods
ods

M a n u f a c tu r in g I n d u s t r i e s — C o n ti n u e d

Durable goods—C o n ti n u e d
0.4
2.1

90.4
54.4
97.9

113,335
11,069
41,404
14,183
11,642
7,304
9,114
18, 619

100.0
79. 1 10.0
100.0
69.1
24.8
3.8
100.0
90 .6
100.0
8 0 .0 5 20.0
100.0 7100.0
23.2
100.0
7 5 .3
100.0 1 100.0
13.3
100.0
3 7 .0

10.9
6.1
5. 6
(«)
0
1. 5

L u m b e r a n d a llie d p r o d u c t s --------- ---------------------F u r n i t u r e . ------- -------------------------- ------------ -----L u m b er:
M ill w o r k ___________________________ _____
S a w m il ls _____________ _______ ____ . ---------

191,442
69,241

100.0
100.0

3 9 .0
55.1

13.2
22.0

39.8
22.9

29,455 100.0
92, 746 100.0

62 .8
19.5

9.8
7.7

24.6
57.2

S to n e , c la y , a n d g la ss p r o d u c t s ---------------------------B r ic k , t i l e , a n d t e r r a c o t t a ----------------------------C e m e n t --------- ----------- -------------------------------------

121,487 100.0
29,406 100.0
21,021 100.0
47,108 100.0
6, 412 100.0
17, 277 100.0

3 2 .0
3 5 .6
10.9
32.4
69 .3
37.1

R a i lr o a d r e p a i r s h o p s . . --------- ------------------------------E l e c t r i c r a i l r o a d ----------------- -------- ------------------S te a m r a i lr o a d ---------------- -------------------------------

95,607
16,380
79, 227

N o n f e r r o u s m e ta l s a n d t h e i r p r o d u c t s ---------------A lu m i n u m m a n u f a c tu r e s ____________________
B r a s s , b r o n z e , a n d c o p p e r p r o d u c t s ....... .............
C lo c k s , w a tc h e s , tim e - r e c o r d in g d e v ic e s ------J e w e lr y _______________________________________
L i g h tin g e q u i p m e n t _________________________
S ilv e r w a r e a n d p la te d w a r e _________________
S m e l tin g a n d re f in in g — c o p p e r, le a d , z i n c . . .

M a r b l e ’ g r a n i te , s la t e , a n d o t h e r p r o d u c t s . . .
P o t t e r y ................................................................. .............

100.0
100.0
100.0

8 .6
3 9 .8
2.1

0.6
3.7
0
0

0

(2)

49.7

53.6
11.0
59.9
4.5
« 89.1
0
39.5
19.8
9. 6
21.1
11.9
51.0

8.0
0

0

2.8
15.6
0
0

0

2.5

0.9

6.0

0
2.3

0

Nondurable goods
Textiles and their products---------------------------Fabrics____ . ----------------------------------------Carpets and rugs____________________
Cotton goods_______________ ________
Cotton small wares__________________
Dyeing and finishing textiles........... .......
Hats, fur-felt________________________
Hosiery---------------- --------------------------Knitted outerwear.___ ______________
Knitted underwear_________________
Knitted cloth--------- --------- ---------------Silk and rayon goods_________________
Woolen and worsted goods_______ ____
Wearing apparel-------- --------- ------------ -----Clothing, men’s............ ...............................
Clothing, women’s ___________________
Corsets and allied garm ents._________
M en’s furnishings_____ _____ _________
M illinery_______________ ___ ________
Shirts and collars________ ____________
Leather and its manufactures________________
Boots and shoes___________ ____ _________
Leather___ ____ ______ _________________ _

896,924
644, 251
16,476
274,075
9, 371
37,860
7,119
86, 912
10. 535
34,099
4,825
42,077
120,902
252,011
116, 357
66, 333
9, 219
10, 299
8, 836
40. 967
177,175
146,860
30, 315

100.0
85 .3
11.1
100.0
85 .0
11.1
(2)
100.0 7100.0
6.5
100.0
93 .0
100.0
9 2 .8 «7.2
100.0
86 .7
13.2
91 .2 «8.8
100.0
100.0
60 .7
24.3
100.0
82 .7
9.9
100.0
85 .8 « 14.2
100.0
9 6 .2
3.8
100.0
4 7 .4
38.6
3.4
100.0
9 3 .6
100.0
86 .0
11. 2
100.0
8 8 .9
9.2
100.0
87.1
9.7
100.0
77.1 « 22. 9
100.0
9 1 .2 « 8. 8
9 2 .7 «7.3
100.0
100.0
75. 1 17.9
100.0
86.1
11.7
100.0
8 8 .3
11.1
100.0
7 5 .5
14.8

Food and kindred products.__________________
B ak in g.._______________________________
Beverages____________ ____ _____________
Butter____________________________ _____
Canning and preserving__________________
Confectionery.__________ ______ _________
Flour___________________________ ______ _
Ice cream_______________________________
Slaughtering and meat packing.................... .
Sugar, beet______________________________
Sugar refining, cane_______ _____ _________

409,265
74, 203
39,803
5,619
117,534
33,023
13, 562
11, 702
94, 01C
5 ,9 8 2
13,389

100.0
100. c
100.0

100.0
100.0
100.0
100.0

Tobacco manufactures_______________________
Chewing and smoking tobacco and snuff__
Cigars and cigarettes......................................

58,734
11,581
47,150

100.0
100.0
100.0

See fo o tn o tes a t end o f table.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

100.c

100. c
100.0

100.c

8 6 .0
9 7 .7
8 2 .2
53.1
7 8 .3
8 4 .3
8 0 .7
7 6 .5
9 9 .0
8 2 .9
9 7 .8
9 5 .3
9 8 .4

3.5
3.9
.5
0

(«)
15.0
7.4
0
14.0
3.0
2.8
1.8
3.2
0
(6)
0
7.0
2.2
.6
9.7

10.5
.9
11.0
35.3
15.8
12.8
12.7
<23.1
(3)
.4
.6
0
<7100.0
< 17.1
(3)

.4

0

.1

2.7
1.4
6.8
2.6
4.8
2.9
.5

.3
(3)

.1

(0

1.9
<4.7
1.2

0
(i)
.1
0

0
0

0
.3

.5
0
0

0
9.0
1.1
.7

0

0
5.4
.4
0

0
0

Frequency of Pay Days in Industry
T

317

2.— Employees, by Industries, in Reporting Manufacturing and Nonmanufacluring
Establishments in August 1938, and Percentage Distribution by Length of P ay Period—
Continued

a b le

Total
Industry

num ber
of e m ­
p lo y e e s

Percent of employees whose pay period
covered—
A ll
p e r i­
ods

O th e r
1
2
1
H a lf
10
p e r i­
w eek w eeks m o n th m o n th d ay s ods

Manufacturing Industries—Continued
N o n d u r a b l e g o o d s —Continued

Paper and printing--------------------------------------Boxes, paper________________ _______ ____
Paper and pulp............................................... .
Printing and publishing:
Book and job_______________________
Newspapers and periodicals.......... ..........
Chemicals and allied products, and products
of petroleum and coal______________________
Chemicals_______ ___________ _______ ___
Cottonseed—oil, cake, and meal__________
Druggists’ preparations-_____ ___________
Explosives____________________ ____ - ........
Fertilizers............................................................
Paints and varnishes............ .............. .............
Petroleum refining______________________
Rayon and allied products_________ ______
S oap .-------------- -----------------------------------Rubber products___________________________
Rubber boots and shoes....................................
Rubber tires and inner tubes_____________
Rubber goods, other_______ _____________

270, 413
35, 773
106, 332

100.0
100.0
100.0

83 .8
8 9 .3
67 .8

5.1
4 .0
10.4

10.9
6 .7
2 1 .8

74,602
53, 219

100.0
100.0

96.1
95 .6

1 .4
.7

2. 5
3 .7

216, 262
41, 089
4, 588
9, 587
3, 687
9, 350
20, 065
68, 068
45, 282
14,453

100.0
100.0
100.0
100 0
100.0
100.0
100.0
300.0
100.0
100.0

57.3
52.1
97.1
73 .9
18.5
9 5 .0
63.5
20. 2
8 9 .4
9 9 .6

16.9
27.6
2 .9
17.6
45.3
(3)
18.8
19. 2
10.6

24 .8
15.3

89, 261 100.0
14, 502 100.0
44, 577 100.0
30,182 100.0

8 7 .7
100.0
9 2 .2
75 .0

5 .6

6 .7

(3)
16. 6

< 7 .8
8 .4

8 .5
3 6 .2
< 5 .0
17.7
60.4
.4

0 .2
(2)
(2)

(2)

( 2)
1.0
5 .0

(')
(2)

(2)

.2

(2)

(2)

(2)

Nonmanufacturing Industries
Total nonmanufacturing-................ . .....................
Coal mining:
Anthracite_____________________________
Bitum inous______________ ______________
Metalliferous mining______________ _____ ____
Quarrying and nonmetallic mining___________
Crude-petroleum producing_________________
Public utilities:
Telephone and telegraph______________ _
Electric light and power and manufactured
gas___________________________________
Electric-railroad and motorbus operation
and maintenance______________________
Trade:
W holesale.-____________________________
R etail............................................... ....................
Hotels (year-round)..................................................
Laundries__________________________________
Dyeing and cleaning__________________ ______
Brokerage______________ ____ _______________
Insu ran ce.._______________ ____ ___ ________ _
Building construction.____ ____ _____ ________

2,68 3 ,8 4 6

100.0

59 .7

1 .8

3 4 .2

3 .5

44, 354
196, 987
38, 790
37, 496
37,022

100.0
100.0
100.0
100.0
100.0

.3
17.6
29.1
.3

.3
.5
7 .3
(3)

100.0
9 6 .6
8 0 .5
62 .3
< 8 4 .6

2 .5
1 .4
.7
15.1

276, 776

100.0

8 9 .6

6.1

4 .3

(')

279,470

100.0

36 .8

3 .6

55.8

3 .8

0)

127,407

100.0

4 3 .6

316, 734
858, 906
128,123
71, 774
17,088
20,801
104, 581
127,466

100.0
100.0
100.0
100.0
100.0
100.0
lo o .o
100.0

59 .4
8 0 .3
2 3 .6
9 8 .2
9 8 .6
3 8 .4
4 8 .8
96.1

(3)
1 .9
2.1
2 .8
.4
.5
2 .2
(3)
1 .0

0 .1

0 .7

.3

(2)
.6

< 53 .9

2 .4

.1

3 4 .4
1 4 .0
5 5 .3
1 .2
.8
5 1 .8
< 4 4 .5
1 .7

3 .7
1 .6
18.3
.1
.1
7 .2
6 .7
.6

.3
.1
(2)
.4
(>)

.3
1 .9
(0
.1
(>)
.6

1 Less than a twentieth of I percent.
2 Data reported are withheld from industry total to avoid disclosing information for less than 3 reporting
establishments. They are, however, included in the totals of all manufacturing industries combined and,
where possible, the respective group totals, or in the nonmanufacturing totals.
3 Combined with half month data. See footnote 4.
< The figures from which this percentage has been computed include a number of employees paid on a
biweekly basis. These data were combined in order to avoid disclosing information for less than 3 reporting
establishments.
3
The figures from which this percentage has been computed include a number of employees paid on a
semimonthly basis.
* Combined with biweekly data. See footnote 5.
7 This percentage relates only to employees classified in the single pay period for which data could be
shown and therefore represents slightly less than 100 percent of the reporting sample.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

318

Monthly Labor Review—August 1939

On the whole, the nondurable-goods industries, as contrasted with
the durable, had a larger representation of workers who received
weekly earnings, 82.9 percent having been paid thus. In 19 of the
individual nondurable-goods industries, over 90 percent of the work­
ers were paid by the week. Among these were the cotton goods,
woolen and worsted goods, baking, slaughtering and meat packing,
cigars and cigarettes, newspapers, book and job printing, and rubbertire and inner-tube industries, all of which employ large numbers of
workers. In the rubber boot and shoe industry, the reports indicated
that all of the wage earners were paid by this method.4
Over 80 percent of the wage earners in the men’s and women’s
clothing and the boot and shoe industries, which also employ many
thousands of workers, were paid by the week. Two other sizable
industries, canning and preserving and paper and pulp, paid 78.3
and 67.8 percent of their employees by the week.
The petroleum-refining industry, on the other hand, paid the
majority (60.4 percent) of its employees semimonthly, and the beetsugar industry, though small, deserves mention also because in it
half-monthly pay periods were practically universal, all but a negligible
portion of the workers having been paid this way.
In the durable industries weekly payments were less frequent,
although 53.7 percent of the workers were found to be paid in this
fashion. The practice of paying by the week, however, was the
usual method in several of the individual durable-goods industries,
10 out of 47 having paid more than 90 percent of their workers weekly
wages. The most important of these as to volume of workers were
the agricultural implement, shipbuilding, and brass, bronze, and
copper industries, in which 90.8, 98.6, and 90.6 percent, respectively,
came in this category.
Weekly wage payments were also prevalent in the automobile,
electrical machinery, and foundry and machine-shop industries, even
though the proportions paid biweekly and semimonthly in these
industries assumed some importance.
Prominent among the durable-goods industries in which the semi­
monthly pay basis was customary were the steam-railroad repair shops
which paid 97.9 percent of their workers on this basis. Others in this
group were cement, 89.1 percent; blast furnaces, steel works, and
rolling mills, 62.5 percent; brick, tile, and terra cotta, 59.9 percent;
sawmills, 57.2 percent; electric railroad repair shops, 54.4 percent;
and pottery, 51.0 percent.
The greatest proportion of workers paid by the month was in the
sawmill industry, in which the percentage was 15.6.
* A 100 p e r c e n t c o v e ra g e in t h e n u m b e r o f e m p lo y e e s p a i d b y t h e w e e k is s h o w n fo r s e v e r a l o th e r in d u s tr i e s ,
a n d a l th o u g h t h i s p e r c e n ta g e is a p p r o x i m a t e ly c o r r e c t, s o m e a llo w a n c e m u s t b e m a d e fo r t h e w a g e - e a r n e r
d a t a t h a t w e r e w i t h h e l d a s e x p la in e d b y f o o tn o te i n o r d e r n o t t o d is c lo se fig u re s fo r le ss t h a n 3 r e p o r t in g
e s ta b lis h m e n ts .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Frequency of Pay Days in Industry

319

Among the manufacturing industries surveyed there were only two
(plumbers’ supplies and explosives) in which the practice of biweekly
payments predominated.
Although 59.7 percent of the employees out of the 2,683,846 in the
nonmanufacturing industries shown in the second part of table 2 were
paid on a weekly basis, the proportion was not so great as in the
manufacturing industries.
It should be noted, however, that three of the industries in this
group (laundries, cleaning and dyeing, and private building construc­
tion), in which wage-earner employment predominates, showed the
largest proportions of workers paid by the week (98.2, 98.6, and 96.1
percent, respectively).
Telephone and telegraph employees too, were as a general rule paid
by the week, 89.6 percent of them receiving weekly remuneration.
In retail trade 80.3 percent of the employees were paid weekly.
The worker's in the extractive industries, on the other hand, were to
a great extent paid semimonthly, the percentages ranging from 62.3
in quarrying and nonmetallic mining to 100 percent in anthracite
mining. In the bituminous-coal mines 96.6 percent of the workers
covered were paid on a semimonthly basis.
Pay periods for workers in other of the nonmanufacturing industries
were fairly well distributed between the weekly and semimonthly
periods. This was particularly evident among employees in insurance
firms, in which 48.8 percent received weekly and 44.5 percent semi­
monthly salaries. More than half (53.9 percent) of the workers in
electric-railroad companies were paid semimonthly and 43.6 percent
were paid weekly. In brokerage offices the distribution was 51.8
percent by the half-month and 38.4 by the week, whereas in wholesale
trade 59.4 percent of the employees were paid weekly while 34.4 were
paid semimonthly.
The number of employees paid on a monthly basis was relatively
small, the largest proportions being in year-round hotels in which 18.3
percent received monthly pay, and in crude-petroleum producing in
which 15.1 percent were on a* monthly basis. Employees whose pay
days came every 2 weeks, 10 days, or for some other length of time,
constituted a very small percentage on the whole, except that 7.3
percent of quarry workers were paid every 2 weeks.
Length of P a y Periods in Establishments , by States

Of the 137,735 establishments for which data were compiled, as
shown in table 3, 74.3 percent paid their employees by the week, 2.0
percent paid biweekly, 16.5 percent semimonthly, 2.3 percent monthly,
0.1 percent every 10 days, 0.2 percent for some other single pay
period, and 4.6 percent reported that they had more than one type of

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

320

pay period. Firms in the latter class had various combinations of
two, or in rare instances three lengths of pay periods, maintaining
separate pay rolls for different groups of employees.
T a b l e 3 . —Reporting Establishments, by States, in Manufacturing and Nonmanufacturing

Industries in August 1938, and Percentage Distribution by Length of P ay Period
Percent of establishments in which the pay period covered—
T o ta l
num ber
of e s ta b ­
li s h ­
m e n ts

S ta t e

A ll
pe­
r io d s

1
w eek

2
H a lf
1
w eeks m o n th m o n th

10
days

O th e r
p e r i­
ods

M o re
th a n
1 pe­
r io d

137, 735

100.0

7 4 .3

2 .0

1 6 .5

2 .3

0 .1

0 .2

4 .6

13,587
926
682
528
7,0 1 2
1,380
3,059

100.0
100.0
100.0
100.0
100.0
100.0
100.0

9 6 .6
9 1 .4
9 4 .9
89 .3
98.1
9 7 .2
9 5 .8

.1

.3
1 .4
1 .0
.2
.2
.1
.3

(>)

(>)

1 .3
4. 3
2. 5
8 .0
.2

.2

1 .7
2 .9
1 .5
2 .3
1. 5
1. 1
2 .1

34, 664
20.996
4, 654
9,0 1 4

100.0
100.0
100.0
100.0

8 4 .7
9 2 .6
8 9 .5
6 3 .8

1 .8
.4
3 .4
4 .2

9 .2
3 .0
4 .4
26.1

2 .7
2 .9
.5
3 .4

28,965
9,1 2 0
3, 726
6, 757
4, 866
4,496

100.0
100.0
100.0
100.0
100.0
100.0

7 4 .4
76 .8
74 .9
76 .6
7 3 .0
6 6 .9

4 .3
3 .6
3 .6
3 .9
3 .8
7 .6

1 7 .5
16.6
17.4
17.5
1 8 .4
18.7

1.1
.4
.5
.5
.6
4 .3

.2
.1
.3
.1
.6

.1
.2
.1

14, 384
3,079
2, 238
3, 695
'6 8 5
549
1,599
2, 539

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

5 7 .9
4 9 .2
6 3 .6
7 3 .7
46. 6
38. 7
44 .0
5 6 .4

1 .8
3 .4
1 .5
1 .5
1 .0
4 .0
.6
1 .2

2 3 .2
2 3 .9
24 .5
17. 7
18.1
2 0 .8
3 2 .2
25 .7

4 .2
4 .9
2 .2
1. 2
5. 8
1 1 .7
2 .3
8 .7

.1
.1
.1

.2
.2
.2
1
2

.1
Cl

.3
.2

12, 677
329
1,884
1,445
2,409
1,392
1,423
812
1,663
1,320

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

7 6 .9
8 9 .4
8 0 .7
89 .0
7 8 .3
4 9 .0
75 .8
87.1
79.1
74. 5

1.9
3 .0
1 .5
.1
1 .8
2. 5
6. 0
.7
1 .6
.5

14.1
4. 6
9 .5
7 .3
14 .2
41.1
9. 3
5 .9
11.7
15. 5

1 .5
.6
.4
.2
1 .3
3 .2
4 .3
.9
1 .3
.5

.2

.1

0)
.1

.1
0)
.1
.1

.1
1. 2

.2

E a s t S o u th C e n t r a l ______________
K e n t u c k y _____________ ______
T e n n e s s e e ______ __ __________
A la b a m a _____ _______________

4,9 8 2
1,595
1,653
1,110
624

100.0
100.0
100.0
100.0
100.0

7 0 .4
67 .6
7 3 .4
7 0 .8 •
69.1

2 .5
1 .1
3 .0
3 .5
2 .7

19 .2
2 5 .4
15.9
17 .3
15 .2

1 .3
1.1
1.1
1 .3
2 .1

.1
.1
.1
.1
.2

.2 .
.2 '
.5
.1

6 .3
4 .5
6 .0
6 .9
10 .7

W e s t S o u th C e n t r a l _______________

7, 566
1,015
1,175
1,652
3', 724

100.0
100.0
100.0
100.0
100.0

59 .4
57 .8
7 0 .5
5 4 .8
5 8 .4

.8
2 .1
.9
.5
.6

2 6 .0
26. 4
2 0 .8
3 2 .2
2 4 .8

5 .1
9 .9
1 .3
4 .3
5 .4

.1

.1
2

8 .5
3. 6
6 .0
8 .1
10 .7

5,044
736
593
392
1, 546
' 334
527
710
206

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

57 .6
5 7 .2
54.1
5 1 .8
64. 7
58.1
4 7 .6
5 9 .4
4 4 .7

1 .0
.4
1 .0
.8
1 .0
.3
1 .6
1 .3
1. 5

2 6 .6
2 3 .9
1 9 .9
30.1
21. 9
25.1
40. 4
28 .9
43. 2

5 .3
8. 6
8 .1
8 .4
3 .9
6 .0
2.1
3 .2
5 .3

15,866
3, 267
1,629
10,970

100.0
100.0
100.0
10 0 .0

58.8

1 .3

59 .9
5 7 .0
58 .6

.8
.9
1.5

3 0 .5
2 7 .2
2 9 .7
3 1 .7

2 .7
5 .3

U n i t e d S t a t e s ______________________
N e w E n g l a n d ------

---------------------- .

M id d le A t l a n t i c --------------------------N e w J e r s e y _____________ _____ P e n n s y l v a n i a _________________
E a s t N o r t h C e n t r a l _______________
O h io ___ _____________________
I n d i a n a ------- --------------------------M ic h i g a n .

___________________

W e s t N o r t h C e n t r a l ______________
M in n e s o ta . . .
------------------I o w a ___________
- ---------

N e b r a s k a ___ __________ . . .
K a n s a s . --------- -------------------------S o u th A t l a n t i c ____________________
D e la w a r e . . . ___ . . ____
D i s t r i c t o f C o l u m b i a _________
V ir g in i a _______________________
W e s t V ir g in i a _______ ________
...
N o r t h C a r o l i n a ________
S o u th C a r o l in a ______ . . . .
G e o r g ia .. ______ _______________

L o u i s i a n a ________ . ------------O k l a h o m a . . __________ _ . .
M o u n t a i n . ______ ________________
M o n t a n a _____ . . . ________
I d a h o _________ . .
________
W y o m i n g .. . . . . . . . . . . .

U t a h ___________________ _______
P a c if ic _____________________________
W a s h i n g t o n ___________________
O r e g o n _______________________
C a l if o r n ia ________ ______ _____ _

Less than a twentieth of 1 percent.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

.i
.2

.1

1.4

1. 6

0)

0)

0)
.2

(0
C)

1 .6
1. 1
2 .2
2 .3

.2

.1

.4
.1
C)

.1
.1
.1
.1
1

.1

.2

.1
.3

.1
.1

5.5
1 .5

1
(i)

1
.1
.

.1

2 .4
2 .3
3 .2
1. 4
3 .4
2. 5
1 2 .6
1 8 .3
7 .9
5. 8
28 .3
24. 8
2 0 .5
7 .8
5 .3
2 .4
7 .8
3 .3
4 .4
4 .0
4 .5
5. 4
6 .0
7. 8

9 .4
9 .8
16.9
8 .9
8. 4
10. 5
8 .3
6 .9
5. 3
6 .5
6 .4
6. 8
6 .5

Frequency of Pay Days in Industry

321

In the New England States 96.6 percent of the firms paid their
workers by the week, while in the Middle Atlantic district 84.7 per­
cent followed this rule. In the latter group the high percentage of
weekly pay periods was due primarily to the large number of estab­
lishments in New York State which paid by the week.
Although the majority of the employers in each of the other geo­
graphic areas followed the general policy of weekly wage and salary
payments, in 7 States employers paying by the week represented less
than 50 percent of the total, those in South Dakota registering only
38.7 percent.
The West Coast States had the highest proportion of establish­
ments with semimonthly pay rolls, 30.5 percent of them following
this custom.
Length of P ay Periods in Establishments , by Industries

The manufacturing establishments for which data were tabulated
numbered 25,507, of which 76.2 percent paid their wage earners by
the week, 6.4 percent every 2 weeks, and 15.9 percent semimonthly.
Those paying by the month, for 10 days, for some other length of pay
period, or having more than one type of pay period, were relatively
unimportant, as revealed in table 4.
Of particular interest is the fact that nearly all of the establishments
in the jewelry and silver and plated-ware industries paid their workers
by the week. These establishments are largely concentrated in New
York where weekly pay rolls are customary and in the States of
Massachusetts, Rhode Island, and Connecticut, where laws provide
for weekly wage payments.
T able

4.—Reporting Establishments in Manu facturing and Nonmanufacturing Industries
in August 1938, and Percentage Distribution by Length of P ay Period

In d u s tr y

T o ta l
num ­
b e r of
e s ta b ­
li s h ­
m e n ts

P e r c e n t o f e s ta b lis h m e n ts i n w h ic h t h e p a y
p e r i o d c o v e re d —
A ll
p e ri­
ods

M o re
O th e r t h a n
H a lf
1
2
1
10
p e ri­
w eek w eeks m o n th m o n th d a y s
1 pe­
ods
r io d

M a n u f a c t u r in g I n d u s t r i e s
T o t a l m a n u f a c t u r i n g . _ _________ . . . . . . . .
D u r a b l e g o o d s ___________________ _______
N o n d u r a b l e g o o d s _____ ________ _________

25,507
10,487
15,020

100.0
100.0
100.0

2,0 2 7

7 6 .2
6 4 .0
8 4 .7

6 .4
7 .6
5 .5

1 5 .9
26 .2
8 .6

0 .9
1 .3
.6

.3

0 .2
.3
.1

(>)
(’)
(’)

0 .4
.6
.5

Durable goods
I r o n a n d s te e l a n d t h e i r p r o d u c t s , n o t in e l u d i n g m a c h i n e r y . _ ______ .
. . . .
B l a s t f u r n a c e s , s te e l w o r k s , a n d r o llin g
m i lls ______________________ ___________
B o lt s , n u t s , w a s h e r s , a n d r i v e t s _________
C a s t- i r o n p i p e ____________________________
C u tle ry
( n o t i n c lu d in g s ilv e r a n d
p l a t e d c u t le r y ) a n d e d g e to o l s _________
F o r g in g s , ir o n a n d s t e e l _________________
H a r d w a r e ____ . . _____________
_ _ .
P lu m b e r s ’ s u p p l i e s ... . . . . . .
S t a m p e d a n d e n a m e le d w a r e ____________
’L e s s t h a n a t w e n t i e t h of 1 p e r c e n t.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

100.0

71.0

8 .9

18 .5

298 100. 0
60 100.0
60 100.0

3 3 .9
4 1 .7
81. 7

19.1
2 5 .0
5 .0

4 6 .0
33 .3
13.3

111 100.0
80 100.0
132 100. 0
96 100. 0
195 100.0

88 .3
65 .0
83.3
6 7 .7
73 .8

3 .6
17.5
5 .3
11.5
9. 7

7 .2
16.3
1 0 .6
17. 7
15.9

.5

.8

.3

.7

.9
1. 2
1. 0
.6

.8
2 .1

Monthly Labor Review—August 1939

322

T a b l e 4 . —Reporting Establishments in Manufacturing and Nonmanufacturing Industries

in August 1938, and Percentage Distribution by Length of P ay Period—Continued

In d u s try

T o ta l
num ­
b e r of
e s ta b ­
lish ­
m e n ts

P e r c e n t o f e s ta b lis h m e n ts i n w h ic h t h e p a y
p e r i o d c o v e re d —
A ll
p e ri­
ods

Other More
than
1 pe­
riod

10 peri­
Half
1
1
2
w e e k w e e k s month month days ods

M a n u f a c tu r in g I n d u s t r i e s — C o n t i n u e d

Durable goods— C o n t i n u e d
I r o n a n d s te e l a n d t h e i r p r o d u c t s — C o n td .
¡S te a m a n d h o t- w a t e r h e a tin g a p p a r a t u s
a n d s t e a m f it t i n g s ___ _______ __________
S to v e s ____________________________________
S tru c tu r a l a n d o rn a m e n ta l m e ta lw o r k s
T i n c a n s a n d o th e r t i n w a r e _____________
T o o l s ( n o t i n c lu d in g e d g e to o ls , m a ­
c h in e to o l s , file s , a n d s a w s ) ........................
W i r e w o r k ___________________ _______ _____
M a c h i n e r y , n o t i n c lu d in g t r a n s p o r t a t i o n
e q u i p m e n t _________________ ________________
A g r ic u l tu r a l
im p l e m e n t s
( in c lu d in g
t r a c t o r s ) __________ - ____________________
C a s h r e g i s t e r s , a d d i n g m a c h in e s , a n d
c a lc u la tin g m a c h in e s _______________ . . .
E l e c t r i c a l m a c h in e r y , a p p a r a t u s , a n d
s u p p l i e s ________________________________
E n g i n e s , t u r b i n e s , w a t e r w h e e ls , a n d
w i n d m i l l s . . --------------- ---------------------------F o u n d r y a n d m a c h in e - s h o p p r o d u c t s . . .
M a c h i n e t o o l s ______ _____________________
R a d io s a n d p h o n o g r a p h s ......... ........................
T e x til e m a c h i n e r y a n d p a r t s ____________
T y p e w r i t e r s a n d p a r t s .......................................

100.0
100.0

8 0 .6
8 0 .3
8 0 .7
78 .7

6 .5
6.1
5 .6
1 .7

11. 8
13.6
13.1
6.3

119 100.0
122 100.0

82 .4
76 .2

3 .3
6 .6

14.3
15. 6

3,125

100.0

75 .7

7 .5

15.9

94

100.0

6 7 .0

10.6

21.3

93
228
306
127

100.0

100.0

29

100.0

8 9 .7

6 .9

3.4

492

100.0

8 1 .7

5 .7

11.8

81
2,043
178
65
129
14

100.0

6 6 .7
7 3 .7
7 7 .0
83 .1
8 6 .8
9 2 .9

1 4 .8
7 .2
7 .3
1 2 .3
11.6

T r a n s p o r t a t i o n e q u i p m e n t ____ _____ _
A i r c r a f t .......................................................
A u to m o b i le s ____ _________________
C a r s , e le c tr ic - a n d s te a m - r a il r o a d .
L o c o m o tiv e s ______________________
S h i p b u i l d i n g ...........................................

595
34
367
67
9
118

100.0
100.0
100.0
100.0

10.6
5 .9
11 .2
25 .4

100.0

73.9
85.3
75 .7
35 .8
6 6 .7
87 .3

R a i lr o a d r e p a i r s h o p s .
E le c tric ra ilr o a d ..
S te a m r a i l r o a d . . .

859

100.0
257 100.0
602 100.0

10.7
28 .8
3 .0

.3
1 .2

N o n f e r r o u s m e ta l s a n d t h e i r p r o d u c t s ______
A l u m i n u m m a n u f a c t u r e s _______________
B r a s s , b r o n z e , a n d c o p p e r p r o d u c t s ------C lo c k s a n d w a tc h e s a n d tim e - r e c o r d in g
d e v i c e s ------------------- -----------------------------J e w e lr y ___________ _______ _______________
L i g h tin g e q u i p m e n t _____________________
S ilv e r w a r e a n d p l a t e d w a r e _____________
S m e l tin g a n d re f in in g — c o p p e r, le a d ,
a n d z i n c . --------------------- ------------------------

784
44
309

100.0

8 5 .9
59.1
84.1

4 .0
15.9
4 .5

17.3
18.4
13. 5
4.6
1. 6
7.1
12.6
8. 8
9. 3
37.3
33. 3
8. 5
88.1
67.7
96.8
9.7
22.7
11.0

3 .0

100.0
100.0
100.0

100.0
100.0

100.0

100.0
100.0

100.0

51

100.0

87 .9
99 .5
91 .2
98 .0

33
214

100.0

91 100.0

2 .5

4 .4

57.1
23. 4
15. 8

42

100.0

3 1 .0

11.9

1,880
657

100.0
100.0

5 9 .9
6 8 .6

10.2
14.6

587 100.0
636 100.0

73.4
3 8 .5

8 .3
7 .4

Stone, clay, and glass products.___________
Brick, tile, and terra cotta____________
Cement___________ ____ _____________
Glass_______________________________
Marble, granite, slate, and other prod­
ucts_____________ ____ ____________
Pottery........ .................................................
Nondurable goods
Textiles and their products_______________
Fabrics_______________ ____ _________
Carpets and rugs_________________
Cotton goods____________________
Cotton small wares_________ ____ _
Dyeing and finishing textiles______
Hats, fur-felt_____________________
Hosiery....................................................
Knitted outerwear................................
Knitted underwear_______________
Knitted cloth___________ ____ ____
Silk and rayon goods....... ...................
Woolen and worsted goods............

1,217 100.0
525 100.0
139 100.0
164 100.0

4 7 .0
37.1
12 .2
4 7 .0

8 .0
4 .6
.7
19.5

16. 5
37.4
43.6
57.7
84.9
27.4
9.6
34.5

’L e s s t h a n a t w e n t i e t h o f 1 p e r c e n t .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

100.0
100.0

81.4
50 .9

9 .0
13.6

4,733
2,215
37
636
97
178
48
239
128
155
56
198
443

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

86 .5
80. Í
94 .6
89. Í
90 .7
79.2
87.5
56.]
90 .6
80. (
92. S
41. <
89.4

9 .9
14.6
2 .7
9 .6
7 .2
19.1
8 .3
25.1
4 .7
18.7
7 .1
48. C
5 .2

0.6

3.3
5.0
.9

10.2

3.1
1.6

.2

.2

.5

1.1

.2
.6

.2

.6

.1
.5

1.2
.4
1.1

1.2

.8

16
1.5

1.4

0.2

.3
2.3

.7
.8

.8
.7
1.9
.2

9.1
.5
3.3
2.0

L u m b e r a n d a llie d p r o d u c ts .
F u r n i t u r e _______ _______
L u m b er:
M i l l w o r k .......................
S a w m il ls ____ _____

279
110

1.1

.9
.2
.4
.1
.4

1.1

5.4
.3

.1
.2

1.0
.5

1.0
14.8
.7

.3

.5
1.9
.3
.4
.7
.7

.2
.8

3.0

.4
.7
2.4

1.0
.1

.1
0)

.1
.1
2.7

.2

2.1
1 .7

4.2
18.8
4 .7

1.3
10.1
5 .4

.5

323

Frequency of Pay Days in Industry

T a b l e 4 . — Reporting Establishments in Manufacturing and Nonmanufacturing Industries

in August 1938, and Percentage Distribution by Length of P ay Period— Continued
T o ta l
num ­
b e r of
e s ta b ­
lish ­
m e n ts

In d u s try

P e r c e n t of e s ta b lis h m e n ts i n w h ic h t h e
p a y p e r io d c o v e re d —
A ll
p e ri­
ods

2
H a lf
1
1
w eek w eeks m o n th m o n th

M o re
O th e r t h a n
10
p e ri­
days
1 pe­
ods
r io d

Manufacturing Industries—C o n t i n u e d
Nondurable goods— C o n t i n u e d
T e x tile s a n d th e ir p ro d u c ts — C o n tin u e d .

F o o d a n d k i n d r e d p r o d u c t s ___ ____________

F lo u r

"

_

_________ __ -

C h e w in g a n d s m o k in g to b a c c o a n d s n u f f .

0 .1
.1
.1

2, 518 100.0
978 100.0
1,006 100. 0
49 100.0
118 100.0
162 100.0
205 100.0

92. l
91 .6
95 .3
79.6
92 .4
95.7
79.0

5 .7
5 .6
3 .6
18.4
5 .9
3 .1
15.1

1.9
2 .2
.9
2 .0
1 .7
1 .2
5 .9

623
455
168

100.0
100.0
100.0

8 7 .2
89. 7
80 .4

9 .3
9 .2
9 .5

3 .0
1.1
8 .3

4,193
1 069
610
344
834
297
323
298
.325
73
20

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100. 0
100.0
100.0

8 0 .6
9 6 .2
86 .1
4 1 .9
7 7 .7
8 8 .9
78 .3
6 5 .4
9 4 .8
7 5 .0

2. 6
1 .5
3 .4
2 .0
5 .0
3 .4
.9
.4
1 .5
1 .4
5 .0

13.5
1 .9
9 .2
3 5 .8
14.0
7.1
16.1
3 0 .9
3 .4
98. 6
15.0

213 100.0
39 100 .0
174 100. 0

95. 4
9 2 .3
96 .0

2 .3
2 .6
2 .3

2 .3
5 .1
1. 7

3,4 5 0 100 .0
687 100 .0
398 100. 0

9 1 .0
8 8 .5
6 8 .3

2 .6
4 .8
8 .8

6 .1
6 .3
2 2 .4

.3

1, 718 100.0
'6 4 7 100.0

9 7 .0
92. 3

.7
1. 5

2 .2
6. 0

.2

1 559
195
128
74
31
329
550
149
26
77

74.1
5 5 .4
96. 9
7 9 .7
3 2 .3
95 .7
76 .9
15.4
84. 6
93 .5

5 .2
10 .8
3 .1
6. 8
25. 8
.3
4 .7
8 .1
15. 4

19.4
31. 8

.3
1 .5

100. 0 77.1
100. 0 100.0
77. 5
100.0
75.6
100.0

7 .2

14.1

.8

.8

5 .0
8 .1

17 .5
14 .2

1 .0

1.1

100.0

73.4

.9

16.8

2 .8

.1

100 100.0
1,004 100.0
247 100.0
1, 058 100.0
428 100. 0

.8
2 1 .9
32. 3
3 .3

.7
1 .6
7 .5
.5

100.0
95.1
7 0 .9
57 .3
6 8 .2

2. 7
4 .0
1. 9
2 5 .0

.1

12.2

5 .0

.7

7 0 .7

4 .6

14.5

.5 «

53.0

.8

2 2 .6

29.1
9 .6
4 9 .6
1 .2
1 .2
4 2 .7
4 0 .8
1 .3

4 .3
1 .9
10.6
.2
.6
4 .7
4. 6
.9

0 .1
.3

1 .9
.1
.3
16.9
1 .7
1 .2
.7

0 .1
.2
.1

.3

.2

1 .2

.6

.2
.1

0.1

.2
.3
1 .0
1 .3
.3

1.1
.2
1 .0
3 .2
1 .3
.6
2 .5
1 .3
5 .0

.1

.1
.1
.2

.1
.3

P r i n t i n g a n d p u b li s h i n g :

.1

C h e m ic a ls a n d a l lie d p r o d u c t s , a n d p r o d -

249
12
40
197

100.0
100.0
100. 0
100. 0
100.0
100.0
100. 0
100.0
100. 0
100.0

9 .5
41. 9
4 .0
16.7
7 5 .8

.2

.2

.8
.5

2 .7

1 .3

.2

1 .3
.7
2 .6

3 .9

Nonmanufacturing Industries
T o t a l n o n m a n u f a c t u r i n g . . . _______ ________ 106, 665

.1

5 .9

C o a l m in in g :
.6
1 .6
.7
3 .0

.3

P u b lic u tilitie s :
9, 31C

100. 0

67 .7

2,867

100.0

9. 5

39C

100.0

23.1

16,282
53,886
L 813
l ’ 246
688
1,169
2, 076
14,101

100.0
100.0
100.0
100.0
100.0
1C0.0
100. 0
100.0

56.8
8 2 .5
34.1
9 7 .8
97. 5
47. 6
48 .3
96 .3

15.1

E le c tric lig h t a n d p o w e r a n d m a n u fa c E l e c t r i c - r a i lr o a d a n d m o t o r b u s o p e r a T ra d e:

B u il d in g c o n s t r u c t i o n

.

... .. ..

•Less than a twentieth of 1 percent.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

.8
1 .0
2 .0
.6
.7
.4
.1
.8

8 .9
4 .9
3 .6
.2

.1
.1
.1

4 .2
6 .2

.4

(•)

.7

0)

324

Monthly Labor Review—August 1939

As stated above, all wage earners in the reporting establishments
of the rubber boot and shoe industry were paid weekly, this being
due partly to the policy of the industry and partly to the fact that
several large firms are located in the New England States where there
is legal regulation requiring weekly payment of wages.
Conversely, employers in the beet-sugar industry did not pay any
of their workers weekly, 98.6 percent of them reporting semimonthly,
and the remainder biweekly pay rolls.
The total number of reporting establishments in the nonmanufac­
turing industries was 106,665, and of these 73.4 percent paid their
employees exclusively by the week, 0.9 percent every 2 weeks, 16.8
percent semimonthly, 2.8 percent monthly, approximately 0.1 percent
every 10 days, 0.1 percent paid for some other length of pay period
(all in the private building-construction industry), and 5.9 percent
followed the system of paying different groups of employees for dif­
ferent lengths of time.
Outstanding among the latter group were the public utilities com­
panies which employ, generally speaking, considerable numbers of
both wage earners and salaried employees, the frequency of pay for
each group varying according to the policies of the employing organ­
izations.
Slightly more than a fifth (22.6 percent) of the reporting companies
in electric-railroad and motorbus operation and maintenance reported
more than one type of pay period, while 15.1 percent of the telephone
and telegraph and 14.5 percent of the power and light establishments
came in this class.
This policy was evident also in a number of wholesale and retail
trade establishments, insurance and brokerage firms, hotels, and
crude-petroleum producing companies, the percentages ranging from
8.9 in wholesale trade to 3.0 in crude-petroleum producing. With the
exception of anthracite firms and dyeing and cleaning establishments,
none of which reported more than one length of pay period, the
number of companies in the remaining industries following this plan
was negligible, ranging from less than one-twentieth of 1 percent in
building construction to 1.6 in metal mining.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

international Labor Relations

IN T ER N A T IO N A L LABOR C O N FER EN C E, JU N E 1939
By J o h n S. G a m b s , Assistant U. S. Labor Commissioner, Geneva, Switzerland

IN SPITE of the difficulties of the times, the twenty-fifth conference
of the International Labor Organization, held in Geneva in June
1939, achieved a fruitful work. It adopted 10 recommendations and
4 conventions—2 conventions on the working conditions of indige­
nous workers, 1 on migrant workers, and 1 on the regulation of hours
and rest periods of road transport workers. The conference met
during an interval of slightly relaxed international tension, although
the clouds in the political sky darkened as the sessions drew to a close.
If the atmosphere was not one of great optimism, it was most decidedly
one of confidence that the International Labor Organization would
not in these days of half-war relinquish its goal of seeking progress in
labor standards.
Although there were fewer delegates this year than last, the total of
362 representatives from 46 countries was a considerably larger
number than had been predicted a month before the convening of the
conference. Among the member countries absent were the Soviet
Union and a few smaller countries. Italy and Germany are no longer
members of the ILO. Japan, which recently gave notice of with­
drawal, did not send a delegation.
The American delegation consisted of the following: The Govern­
ment delegates were the Hon. Charles Vincent McLaughlin, Assistant
Secretary of Labor, and Carter Goodrich, United States Labor Com­
missioner at Geneva. Their advisers were Mrs. Clara M. Beyer,
Assistant Director, Division of Labor Standards, Department of
Labor; A. F. Hinrichs, Chief Economist, Bureau of Labor Statistics,
Department of Labor; John S. Gambs, Assistant United States Labor
Commissioner, Geneva; and John Carter Vincent, American Consul,
Geneva. The employers’ delegation, headed by Henry I. Harriman,
chairman of the board of the New England Power Association, Boston,
included as advisers Clarence G. McDavitt, former vice president of
the New England Telephone & Telegraph Co.; H. D. Horton, president
of the Horton Motor Lines, Charlotte, N. C.; and Chester Rowell,
editor of the San Francisco Chronicle. Representing American work­
ers were Robert J. Watt, American Federation of Labor, Washington,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

325

326

Monthly Labor Review—August 1939

D. C.; with Daniel J. Tobin, general president of the International
Brotherhood of Teamsters, Chauffeurs, Stablemen and Helpers,
Indianapolis, Ind.; Herbert Woods, economist, International Union of
Operating Engineers, Washington, D. C., acting as advisers. The
secretary to the delegation was Miss Harriot Hopkinson, United
States Department of Labor, Geneva.
These American members of the conference took an active part in
committee work and in the plenary sessions.1
The Director's Report
The work of the conference may, for convenience in treatment, be
divided into two parts—the discussion of the director’s report, includ­
ing his reply to this discussion; and the creation and adoption (or
rejection) of international regulations. It will be recalled that the
director, John G. Winant, is an American, and that this was his first
annual report, covering the year since his election last June, though he
assumed office only in January.
While the sessions of the special tripartite committees, working on
international regulations, were going on in the committee rooms, dele­
gates present at the plenary sessions were discussing the report of the
director—a discussion climaxed, toward the end of the conference, by
his reply. Allied to this discussion was the response, both by delegates
and the director, to the report of the Emergency Committee, created
recently to suggest policies for the Organization in the possible event
of war. Approximately 60 delegates, representing more than 30 na­
tionalities, addressed the conference on the contents of the two docu­
ments. The task of the director was to take note of these comments,
and through their synthesis to chart the course of the Organization for
the future. As he said in the introduction to his reply, “In a sense,
this is not my speech, but yours, for I like to think of the addresses
made on the director’s report as a democratic method of reflecting
world opinion and the pointing up of International Labor Organization
policy. And so in large measure I shall simply attempt to translate
into briefer form my understanding of the summary views of the
conference.”
The first point in his reply dealt with the Second Regional Confer­
ence of the Americas, to be held toward the end of 1939 at Havana—•
a conference which will, among other things, provide an opportunity
for collaboration between the ILO and the American countries in the
field of social insurance. This mention of the Havana Conference
reflected the recently increased participation in the work of the Organi Mr. M cLaughlin acted as vice chairman of the Government group; Mr. Goodrich as secretary of the
Government group; Mrs. Beyer as reporter for the Committee on Technical Education; Mr. Harriman as
vice president of the conference; Mr. W att as vice chairman of the Resolutions Committee and officer of the
workers’ group; and Mr. Hinrichs as reporter for the Committee on Hours of Work in Coal M ines.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

International Labor Relations

327

ization by the countries in North America, Central America, and South
America, and the fact that the center of gravity of the ILO is moving
westward.
Going on from this into the heart of his discussion, the director
made an analysis of what might be called the economics of a condition
of near-war. Autarchy he defined as a system which relies on political
and military measures for the advancement of economic ends. He
advocated as one important measure for an increased standard of
living a program of moderate and gradual relaxation in trade barriers.
He saw some dangers for the workers even if the present situation
should quickly change to one of peace, for sudden disarmament
might be followed by widespread unemployment.
In his report, Mr. Winant had made an allusion to the suggestion
recently made by President Roosevelt concerning a general economic
conference. He had commented as follows:
I hope and believe that an exchange of views by the nations m ay pave the way
toward that enduring peace that was hoped for so fervently in 1919 by a weary
soldiery and a war-torn world. For this, too, we should be prepared. I t m ay
mean for us the opportunity to clarify the social objectives of a lasting peace.

This declaration could not be overlooked by the delegates. Repre­
sentatives of governments from countries as diverse in geographical
position and national interests as China, Yugoslavia, France, Great
Britain, the United States of America, and New Zealand, had in their
discussion all supported the director’s suggestion that some pacific
approach to the problems of international economic reconstruction
must be found. This does not mean that a complete endorsement
was given by the speakers to the holding of such a conference, or to
participation by the ILO if it should be held. Some speakers called
attention to the danger of holding such a conference before the world
had reached a state of “peace psychology.” Others pointed out the
difficulties of technical preparation. There was, however, a strong
feeling that the ILO should bend its energies to the preparatory work
that is indispensable to the work of economic reconstruction, and that
the Organization, by participation, could make a very great contri­
bution to the success of a general economic conference.
A final item of policy had to be given consideration: What should
the ILO do in case of war? The suggested policies were contained in
the report of the tripartite Emergency Committee of the Governing
Body, and its conclusions were most favorably commented on by
delegates. It appeared that whatever disagreements existed in the
ILO, healthy disagreements arising from its international and tri­
partite constitution dissolved away into a spirit of cooperation when
confronted with the suggested wartime program of the Organization.
In its report the committee noted that an important number of govern­
ments, including the Government of the United States, had affirmed

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

328

Monthly Labor Review—August 1939

the principle that the ILO should endeavor to function as completely
as possible in the event of an international crisis. It went on to say
that, judging from past experience, the existence of a state of war
would give a new acuteness to labor problems and lead to a great
intensification of social legislation, in belligerent countries as well as
in those not engaged in hostilities. Problems of real wages would
arise; national administrations dealing with labor would find them­
selves confronted with the problem of fatigue, resulting from intensi­
fication of effort, and with new problems of occupational disease and
industrial poisoning. Difficulties would arise from labor shortages
and from unemployment, both resulting from the reorganization of
industry on a complete war basis. It would appear that if, unfortu­
nately, the present condition of near-war becomes an open conflict,
the ILO is better prepared to meet certain problems relating to indus­
trial relations, even in extra-European countries, than any other
organization now in existence.
Reduction of Hours

The second task of the conference was, as has been said above, the
consideration, and in some cases the adoption, of certain international
regulations. These regulations may take the form of conventions or
of recommendations. In either case, the regulation exerts no binding
force on a government until it has been accepted or ratified by the
competent authority. A convention, if ratified by two or more
countries has the force of a treaty. A recommendation imposes
fewer obligations on a country which accepts it.
Among the proposed draft conventions and recommendations pre­
sented to the conference for discussion, approximately half related to
the reduction or regulation of hours of work. The most important of
these dealt with the reduction of hours of work in industry, commerce,
and offices. Another one was a convention for the reduction of hours
of work in coal mining. The discussion of the documents and pro­
posed regulations relating to these two items of the agenda underwent
approximately the same fate although there were certain differences
in detail.
During the months preceding the conference, there had been a
great accumulation of evidence that many important countries could
not now effect any important reduction of the working week. All
but a few of the governments replying to an ILO questionnaire stated
the impossibility of sacrificing labor time during the present period
of rearmament. For this reason, several governments, which had
been and still are consistently favorable to the establishment of inter­
national regulation's for the reduction of hours of work, submitted a
resolution to the conference to postpone consideration of this ques
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

International Labor Relations

329

tion at the present conference. The Governments in question were
those of France, the United States of America, Belgium, Denmark,
and Norway. It was with great reluctance that these countries
presented this resolution. They made it clear by their statements
that they expected the Governing Body of the ILO to place this
question again on the agenda of the conference as soon as such action
was warranted by an improvement in the international situation.
They explained that they would not have taken this step had it not
been for their recognition of the fact that many governments would
find it difficult to assume an international obligation regarding the
reduction of hours in industry, commerce, and offices in a time when
economic activity and the development and enforcement of social
legislation are greatly affected by the prevailing political insecurity.
The procedure in regard to the coal industry was slightly different.
Since there seemed to be at least some hope of the adoption of a
convention for this industry, a resolution was not immediately
presented. The question was referred, as questions on the agenda
usually are, to a tripartite committee. The committee discussion
indicated, however, that what was true of industry, commerce, and
offices was also true of coal mines. A resolution was introduced by
the committee in the same sense as the resolution described above. It
was accepted by the conference as a whole and reduction of hours in
coal mines will reappear on the agenda of some future conference as
soon as the world political situation is more propitious.
Although the United States delegates voted for the adoption of both
these resolutions and had, indeed, taken an active part in the intro­
duction of the resolution on hours of work in industry, commerce, and
offices, the policy adopted was not contradictory to the spirit of
American labor legislation. No decisions taken in Geneva can affect
unfavorably labor standards prevailing in a member state. The
United States representatives emphatically reminded the conference
that, despite their vote, “this action is not to be understood to be a
sanction to longer hours.” In the case of coal mining, it was observed
that “the 35-hour week is firmly established for 2 years in col­
lective agreements,” and that the Government of the United States
“will continue to support the short workweek in coal as in other
industries.” The American representative charged with the duty of
discussing the resolution relating to the postponement of the conven­
tion on reduction of hours of work in industry, commerce, and offices,
reminded delegates from every part of the world that the “United
States Government is still in favor of international action for the
reduction of working hours.” He ended his remarks with the following
words:
In the present exceptional circumstances we favor postponement, but post­
ponement on such terms that the Governing Body shall be instructed to place the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

330

Monthly Labor Review—August 1939

matter before us again as soon as such action is warranted by an improvement in
the international situation. These are not mere words; they record a profound
conviction. They are, in fact, the other side of the argument for postponement.
It is armament and political insecurity that render it impossible to make this year
the international advance for which we had hoped. It is no less true that the
reverse of these conditions will make possible, and indeed necessary, the reduction
of hours of work. It is our faith that the choice of a peaceful settlement of
national differences will eliminate the obstacles that stand in the way of bringing
the 40-hour week to the wage earners of the world.

Regulation of Hours of Work in Road Transport

Tlie International Labor Office had also prepared a draft convention
on the regulation of rest periods and work periods of road-transport
workers. During the opening days of the conference, a committee, on
which the United States was represented by a Government member,
an employer member, and a worker member, was chosen to discuss
the draft and to prepare a report for the conference. The essentials
of the Office draft were that the basic week to be worked by roadtransport workers was 48 hours; extensions were to be permitted
normally up to 54 hours for workers who ordinarily did a good deal of
subsidiary work; and for those who put in large periods of mere
attendance, the week could be extended to 60 hours. The committee
felt that in this industry, which is so difficult to regulate and which is
subject to so many variations in conditions of work, the fixing of
definite limits did not meet the realities of the situation. For this
reason the committee altered the originally proposed draft convention
in the direction of greater flexibility, at the same time that it pre­
served the basic principle of the 48-hour week and of the 8-hour day.
The most important amendment introduced by the United States
Government member was an amendment which would permit a federal
government like that of the United States to ratify the road-transport
convention for those workers who are at present affected by Federal
road-transport regulations. Under the constitution of the ILO, since
federal states with limited jurisdiction over labor matters may now
treat an international labor convention as a mere recommendation,
the offer to accept the binding obligations of a convention for workers
under federal jurisdiction represented a willingness to go further than
the constitution demands. In the subcommittee which discussed this
amendment, it was felt, however, that such an alteration in ILO pro­
cedures should be given mature consideration. The representatives
of the United States agreed that further thought, and consultation
with other countries having a federal constitution, would be advisable.
They therefore withdrew the amendment and substituted for it a
resolution, which was not opposed, requesting the Governing Body to
give consideration to the present position of federal states with a view

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Tniernational Labor Relations

331

to enabling them in the future to ratify conventions like this one under
a differential arrangement.
The road-transport convention, as redrafted by the committee, was
adopted by the conference, the vote being 88 for and 18 against, with
24 delegates abstaining. Since the international regulation is at
most points in advance of actual practice in many countries, this
convention will no doubt raise the standards of labor in those states
in which it is ratified. It will also, for those states which do not ratify,
serve as a yardstick with which to measure the standards that actually
prevail.
In addition to the convention on road transport, four recommen­
dations were accepted on the same subject. They involved the
issuance of control books, the limitation of night work, methods of
carrying into effect the regulations provided for in the convention
through consultation with representatives of workers and employers,
and through other means; and finally, a document recommending the
regulation of hours of drivers in private employment.
Vocational Education and Apprenticeship

In the past 2 years, American delegates, both at the conference and
at home, have given much thought to the problems of technical
education and apprenticeship. This year their long and painstaking
work, pooled with the labors of delegates from 25 countries, was
rewarded by the unopposed adoption of two significant recommenda­
tions. Judging from the size of the tripartite committee which drafted
the regulations, this subject was the one which attracted the greatest
interest at the conference.
The recommendations adopted are a set of principles. In the
field of vocational education, the principles lay down the importance
of adapting any program to the economic and social needs of the
community, to the occupational interests and cultural requirements
of the workers, and to the demand of employers for labor. All
affected groups must collaborate in the conduct of any training pro­
gram. Admission to technical and vocational schools, it is recom­
mended, should be free.
The recommendation on apprenticeship has as one of its aims the
securing within each country of uniformity in the degree of skill
required and in the methods and conditions of apprenticeship in each
trade. Nations are left free to obtain the desired result in a variety
of ways. In some countries the goal will be achieved by government
supervision. In other countries—as, for example, in the United
States—where the value of private initiative and collective bargaining
in determining conditions of apprenticeship is fully recognized,
coordination within a trade will be obtained by means of government
stimulation rather than by control.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

332

Monthly Labor Review—August 1939
M igrant Workers and Indigenous Workers' Contracts

Two items on the agenda related to matters in which the United
States and most other nations are involved only to a limited extent—
contracts of employment of indigenous workers and the conditions of
labor of migrant workers. Three draft conventions relating to these
items were adopted by the conference. There were no governmental
delegates of the United States on the tripartite committees that dealt
with these questions.
Although American interest in these regulations was limited, the
delegates of the United States Government felt that the classes of
workers covered by the conventions should be safeguarded even if
the problems under consideration were of direct concern only to a
small number of nations. They felt that if the proposals of the
committees had the support of the large majority of delegates repre­
senting the countries immediately affected, it would seem unfortunate
that the conventions drafted should be rejected because of mere lack
of interest on the part of other nations. Our delegates therefore
voted for the proposals put forward, confident that the safeguards
agreed to by interested countries were worthy of their support.
Administrative Committees

At every conference, a number of tripartite committees are ap­
pointed in connection with the administrative work of the Organiza­
tion. These include the Selection Committee, the Credentials Com­
mittee, the Resolutions Committee, and the Committee on the
Application of Conventions. The Resolutions Committee submitted
to the conference a number of resolutions, of which one concerned the
equality of women in industrial life, another related to judicial bodies
for the enforcement of labor legislation, and a third concerned an
inquiry into the methods followed in order to develop the activities
of the International Labor Organization.
This year, for the first time, a representative of the Government of
the United States became a member of the Committee on the Appli­
cation of Conventions. The function of this committee is to consider
the measures that have been taken by member states to give effect
to the provisions of conventions to which they are parties. Member­
ship was requested on this committee because the United States had,
in the past year, taken its place among the members which have
ratified conventions.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Social Security

IN D U ST R IA L R E T IR E M E N T PLANS IN CANADA
AT LEAST 70 percent of the wage and salary earners in Canada are
employed in establishments which have no definite formal retirement
provisions for their personnel. This conclusion was reached in a
recent study, covering 120 such plans,1 which revealed the impor­
tance of the larger companies in the retirement movement. Some of
the plans under which small numbers of Canadian employees are
reported are, in fact, extensions of schemes operated by large corpora­
tions in the United States. In illustration, 6 of the 9 noncontribu­
tory schemes covering fewer than 500 employees in the Dominion
are such extensions.
On the whole, the number of employees eligible for participation
under contributory plans is slightly less than the number of full-time
employees of the establishments operating such schemes, but because of
the predominance of voluntary plans, the actual number of participating
workers may be substantially less than the number of potential con­
tributors. “On the basis of reports from 16 reinsured plans, slightly
over 75 percent of the total number of employees seem to be con­
tributing. Five self-administered contributory plans with no re­
strictions on eligibility report 90 percent of their employees partici­
pating. The one composite plan for which information is available
reports 30 percent of the total number of employees participating in
the contributory scheme.’’
From the point of view of number of workers covered, self-adminis­
tered contributory and noncontributory schemes are still of consid­
erably more importance than reinsured contributory schemes. The
tendency, however, is quite obviously in the direction of contributory
and reinsured schemes.
Most of the new schemes are restricted to provisions for dependent
old age and to the protection of individual employees’ rights to funds
built up in their behalf. Many of the reinsured schemes for retire­
ment have associated with them the benefits of group life insurance
or group sickness and nonoccupational disability insurance or both.
1 Queen’s University. School of Commerce and Administration.
Canada. Kingston, Ontario, 1938.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Industrial Retirement Plans in

333

Monthly Labor Review—August 1939

334

For employees added to the force after the plan has been initiated
membership is frequently obligatory. For employees in the service
at the time the plan is created membership is generally optional.
Employees are usually accorded the option of selecting the type of
annuity best suited to their needs in order that their dependents may
be protected against the hazard of death shortly after retirement.
The distribution of plans, by type, and by number of employees in
Canada, is shown in table 1.
T a b l e 1 .—Industrial

Retirement Plans by Number of Employees of Company in Canada i
Noncontrib­
utory
plans

Number of employees in Canada

Total plans________ ___________ . . . _______________________

33

Con ributory j Ians
Selfadminis­
tered

Re­
insured

16

47

Com­
posite
2

1
10,000-12,000 _ _
..
_______ _____________________
5,000-8,000______ _________________________________________
3^000-5^000 _________ ____________________________________
____________________________
2|000-3|000______________
l'000-2’000
.
_ ________________________
500-1,000
____________ __________________________________

2
4
7
2
4
5
9

1
1
1
1
3
3
28
11

2
2
2
9

i 22 informal plans not included.

Table 2 shows that noncontributory schemes prevail in electrical
equipment and communication companies and are about as common
as contributory plans in mining, public utilities, transportation, and
certain manufacturing industries.
T a b l e 2 . — Canadian Industrial Retirement Plans, by Industry 1
C o n t r i b u t o r y p la n s
N oneontrib u to ry
p la n s

In d u s try

S e lf-a d ­
m i n is ­
te r e d

33

16

3
3
2
3

1

C om pos­
ite

R e in ­
su re d

47

2

M a n u fa c tu rin g :

M e t a l p r o d u c t s ______
__
_ ... . ... . . . . . . . . .
._
O il p r o d u c t s
_______. . . .
. __________ . . .
______

1
3
1

T e x til e p r o d u c t s ____
M i s c e l l a n e o u s ___ __
M e r c h a n d i s i n g ___

.

.........
....
. ...

_ . ______ _____

P u b l i c u t i l i t i e s ____________ . . .
F i n a n c e ___
.

. _
__

.

___

. . .
______

. . . . . . . . ___________

_______
.................................. . . .

1 22 informal plans not included.
2 Paper products noncontributory; printing companies reinsured.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1
1
2
1
5
3
6

1
1
2
1
8

3
8
5
3
4
4
1
5
2
6

1

1
6

Social Security

335

Retirement Age and Related Provisions

Under the majority of recent schemes the only condition for deter­
mining eligibility for annuity is the attaining of the specified retirement
age. Normal retirement before reaching the age of 65 is becoming
more and more common, particularly among women. The age fixed is
usually 60, although 11 retirement schemes provide for retirement for
women at 55 and one scheme sets that age for men. Of the Dominion
schemes under review, slightly over half of the plans which include
both men and women provide earlier retirement for women. The most
popular combinations are given below:
N um ber
o f p la n s

65 years for males and 60 for females___________________
65 years for males and 55 for females___________________
60 years for males and 55 for females___________________

33
5
5

It would seem that both in the Dominion and the United States the
actual average age at which workers retire is somewhat below the usual
age specified in retirement plans and substantially below the highest
age designated under schemes providing for compulsory retirement.
In recent years employers have shifted many “hidden pensioners” to
the retired list.
In most of the plans retirement 's allowed, within limits, before the
normal date on a reduced annuity. Later retirement is less commonly
provided for and under reinsured schemes the consent of the company
is required.
Provision for workers entering the service late would not be so
difficult for individual firms if industrial retirement schemes were
created in all establishments and if the individual worker were given
contractual rights to the retirement reserve being built up for him
based on his length of service.
The tendency to reduce the normal retirement age has resulted from a combina­
tion of influences from employers, employees, and the public. Whether an em­
ployee will retire as soon as he can claim a retirement allowance will depend upon
the health of the individual, his personal estimate of the relative advantages of his
particular job and of leisure, the relation of the retirement annuity to his current
pay, and the policy of the company towards compulsory retirement. The num­
ber of employees retired by the company will depend upon the terms of the plan,
the estimates of the costs of retirement, the economic conditions under which
the company is operating, and the relative costs of retention as against retirement.

Very few of the Dominion retirement schemes include any provi­
sions for annuity payments to employees who are disabled, other than
gift allowances or adjustments of the annuities already earned. Spe­
cial provisions for disability are more frequently included under formal
noncontributory and self-administered contributory schemes.
The Canadian industrial retirement schemes rarely provide for the
protection of dependents of deceased employees and annuitants.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

336

Monthly Labor Review—August 1939

Reinsured contributory schemes and certain self-administered contrib­
utory schemes provide that each retiring employee may purchase
with the sum to his credit the kind of annuity most suitable to his
family’s requirements.
Under the greater number of Dominion schemes, employees who
leave a company prior to retirement lose all rights to the annuities and
to the company’s contributions in behalf of rendered services. All
of the contributory schemes, however, provide for the return of the
employees’ direct contributions, if such employees leave the company
before fulfilling the retirement conditions.
A number of the newer Canadian plans recognize the right of the individual
employee to his share of the company contributions as well as his own direct
contributions, by vesting, in the employees, rights to the full annuities purchased
by the contributions on their behalf * * *
All the retirement plans include some provision permitting modification or
complete termination at the discretion of the company, sometimes after notice
to the employees, and sometimes subject to the consent of the insurance company.
Since informal plans and formal noncontributory plans leave the management
wide discretionary powers, the rights of pensioners and of employees are seldom
guaranteed.

Contributions

Ordinarily, the direct contributions of the employee and of the
company are so planned that each provides about 50 percent of the
total funds required. Contributions are generally discontinued at the
normal retirement age.
Under the newer plans a life annuity is payable at the normal age of
retirement, “equivalent in value to the total contributions made on
behalf of the individual employee, with the accumulated interest on
these contributions.”
Any immediate annuity payable to an employee retired before the normal retire­
ment age is usually, under the new plans, equivalent in value to the deferred
annuity, payable at the normal date, to which his accumulated reserves would
entitle him.
The annuity payable to an employee retiring later than the normal age some­
times begins at the normal age; sometimes it begins at actual retirement and is
increased to allow for the further accumulations of interest and for the reduced
life expectancy.

As a rule, employees are not required to contribute at times when
their income is reduced as a result of lay-off or illness. Provision is
sometimes made for making up the deficit voluntarily upon return to
work so that there will be no reduction in the annuity.
Informal retirement schemes rarely include any standard provision
for determining retirement benefits. Formal non contributory schemes
in general base the pension on a specified percentage (commonly 1
percent) of the final wage or salary (or the average pay for the closing
years of service, ordinarily 10) for each service year.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Social Security

337

The percentage of salary payable as pension under self-administered
contributory plans is somewhat higher than under formal noncontribu­
tory schemes, as the employees share directly in the costs.
Composite schemes have both contributory and noncontributory
features.
Finance and Administration
None of the informal plans and only a few of the formal noncon­
tributory plans in Canada have made provision for funding the retire­
ment liability on an actuarial basis. The liability is, however, fully
funded in the self-administered contributory plans which use the
money-purchase method of finance. All but one of the remaining
plans provide for regular contributions from both the personnel and
the company.
The funding method which involves the smallest charge to operating
expenses is a lump-sum payment. However, the great majority of
companies find this too great an outlay at one time, but, according to
the report under review, “sound practice dictates that such payment
should be met as soon as possible.”
The newer or revised schemes evidence that more and more atten­
tion is being given to the problem of sound finance, and the liabilities
of practically all the recently adopted plans are underwritten by a
life insurance company.
The greater number of the newer schemes recognize the need of
guaranteeing that the funds once set aside for retirement reserves will
not be used for any other purpose.
A tendency to limit company discretion and assure impartial ad­
ministration is shown in the later schemes, and a number of the most
recent ones provide that in case State retirement protection is estab­
lished the company scheme may be revised to supplement such
protection.
The newer retirement schemes include legal safeguards for employees
in the way of guarantees that annuities will be granted to all those who
reach the normal retirement age while in the company’s service, and
that once benefits are allowed they will be accorded for the duration
of the specified period.
W

W

W

B R IT IS H U N EM PLO Y M EN T-IN SU R A N CE FU N D IN 1938
BALANCES of £43,953,644 in the general account of the British un­
employment-insurance fund and of £2,773,871 in the agricultural ac­
count were shown in the financial report of the Unemployment Insur­
ance Statutory Committee, for the year 1938.1 At the close of 1937
i Great Britain. Unemployment Insurance Statutory Committee. Reports on the Financial Condition
of the Unemployment Fund on December 31,1938. London, 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

338

Monthly Labor Review—August 1939

there was a balance of over 60 million pounds in the general fund, but
subsequently 20 million pounds were applied towards the reduction of
the indebtedness of the fund. Receipts for the calendar year in the
general account were £65,894,665, of which all but £1,443,412 rep­
resented insurance contributions by employers, employees, and the
State, while the corresponding figures for the agricultural account
were £1,942,533 and £43,854. Expenditures for unemployment bene­
fits in 1938 from the general account amounted to £51,662,000, an
increase of £18,502,000 over the expenditure for the preceding year,
and benefit payments from the agricultural account totaled £742,000
as compared with £455,000 in 1937. The administrative costs and
minor items in the two accounts amounted to £6,398,638 and £251,649,
respectively.
The following table shows the approximate receipts and payments
of the general account and of the agricultural account of the unem­
ployment-insurance fund for the years 1937 and 1938, with the balance
in the account at the end of the year, as prepared for the Unemploy­
ment Insurance Statutory Committee. This is not an audited account,
but it is in the same form as the accounts of the fund which are pre­
sented to Parliament after audit, for the financial year ending on
March 31.
Receipts and Expenditures of British Unemployment-Insurance Fund, Years Ending
December 31, 1937 and 1938
[Average exchange rate of pound in 1937=$4,944; in 1938=$4,889]
General account

Agricultural account

Item
1937

1938

1937

1938

Receipts:
Contributions from—
E mployers and workers __ ____
Defense departments in respect of men dis­
charged from H. M . forces______
E xchequer.. _____________
Interest on investm ents...
Miscellaneous receipts_____ _

£64,966,913

£65,894, 665

£1,877, 628

£1,942,533

42, 724, 771

42, 658, 951

1,244,000

1,270,466

161,242
21,397, 675
674,105
9,120

338,333
21,453,969
1,431, 243
12,169

615, 631
17j 826
' 171

628,213
43,541
313

Expenditures:
Insurance benefits.
Refunds on contributions in respect of noninsurable employm ent__
Repayments in respect of yearly and half-yearly
hirings____ ___________
Grants for authorized courses of instruction
Grants toward traveling expenses of insured persons seeking employm ent____
Administrative e x p e n ses___
D ebt s e r v ic e ... . . . . _
Surplus.. . . _______ _
Applied towards reduction of debt, March 31,1938

64,966,913
33,16C, 000

65,894, 665
51,662,000

1,877,628
' 455; 000

1,942,533
' 742; 000

90,663

89,346

3,543

4,929

430, 600

420,000

9,195
1,400

2,000

13,924
4,870,000
5,000,000
21,401, 726

14,700
5,874,592
4,259,389
3,574, 638
20,000,000

16
230, 862

30
235,580

1,177, 612

948,884

60,379,006

i 43, 953, 644

1,824, 987

2,773,871

Balance on December 31_________

1 If allowance had been made for any loss or profit on realization redemption of investments, it is
estimated the balance would be reduced by £400,000.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Social Security

339

General Account

Contributions from employers and employed persons in 1938 in the
general account were £65,820 less than in 1937. Actually the loss of
income contribution was much in excess of this figure, owing to the
increase in unemployment, but the loss was offset by the growth of the
insured population and the extension of insurance on April 4,1938, to
about 220,000 persons in institutional and outdoor domestic employ­
ment. The exchequer contribution showed an increase of £56,294
in 1938, and there was a material increase in income from investments,
amounting to £757,138, attributable largely to interest from investments
made at advantageous rates in 1937. Taking all items together, the
increase in the income of the fund in 1938 amounted to £927,752. The
greatly increased expenditure during the year resulted from the in­
crease in unemployment and in the proportion of unemployment
ranking for benefit. These two causes were responsible mainly for the
substantial rise of more than a million pounds in the cost of adminis­
tration.
The debt service has been materially altered since March 1938
when repayment of 20 million pounds on the outstanding debt was
made. As a result of this payment, the semiannual debt charge of
£2,500,000 was proportionately reduced so that the total payment for
the year was £4,259,389. At the end of September 1938 the debt was
£81,530,000, and the interest rate from that time until the expiration
of the period set for repayment will be 3% percent.
In 1935 an estimate was made by the committee of the future trend
of employment, based on a statement by the Economic Advisory
Council of the probable mean level of employment for the next com­
plete trade cycle, assumed to be 8 years.2 The rate of unemployment
which would yield this mean over the 8 years as a whole was estimated
for each of the 8 years, 1936 to 1943. As the actual unemployment in
the last 2 years was less than the mean thus established (16.75
percent unemployment, and 48 percent of the unemployment ranking
for benefit), it was possible to declare a substantial surplus in the
Unemployment Fund over the reserves required to meet a depression.
It was recommended that this surplus, amounting to nearly 24 million
pounds, should be distributed during the next 8 years in improved
benefits or reduced contributions. On the same assumptions, while
it was expected that unemployment during 1938 would be materially
greater than in 1937, a further gain of income over expenditure was
anticipated. Although there was an average weekly surplus of
£517,000 in the 6 months from May to October 1937, by February
1938 this surplus had almost vanished, and while a large surplus was
again recorded in July there was a net loss of about £20,000 a week in
* See M onthly Labor Review, June 1936, pp. 1511-1512.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

340

Monthly Labor Review—August 1939

the last 4 months of 1938. These changes reflected both the rise in
unemployment as a whole and a rise in the proportion ranking for
benefit, since the first additions to the unemployed after a period of
good employment are largely workpeople with a record of contribu­
tions qualifying them for benefit. The proportion of total unemploy­
ment ranking for benefit ranged from 44 to 48 percent in the 6 months,
May to October 1937, but was nearly 60 percent during the greater
part of 1938. In spite of these changes, however, the excess of receipts
over expenditures after allowing for the 20-million-pound debt pay­
ment and about £400,000 for depreciation in the capital value of in­
vestments, was about £3,175,000. Although this surplus would have
been available for distribution if the liabilities had remained the same,
the changes recommended by the committee in its report on holidays
in relation to unemployment insurance, if adopted, would increase
the annual expenditure of the fund by about £200,000 a year; in
addition, an increase in administrative costs because of improvements
in the pay of the staff and in the offices would involve a further increase
of about £350,000, and a recommended reduction of agricultural
contributions would cause an increase in liabilities of the general
account amounting to about £50,000 a year for the next 3 years.
Because of these added liabilities, and the probability of the need for
additional borrowing by the fund during the trade cycle, it was
recommended that the surplus should be applied to the reduction of
the debt. This allocation of about 3 million pounds to the debt would
reduce the debt charge by nearly £150,000 a year. In addition, an
increase of about £500,000 a year in the income of the fund would
probably result from the extension of insurance to classes newly brought
into the scheme, which with the amount saved by reduced debt charge
could be set against estimated new liabilities of £600,000.
Agricultural Account

Contributions from employers and employed persons to the agri­
cultural account increased £26,466 in 1938 as compared with 1937.
The system was extended April 4, 1938, to include grooms, gamekeepers, and certain other classes of outdoor domestic servants, and
contributions were received from private gardeners for the full year
as compared with less than a full year in 1937. The rate of con­
tribution for most insured persons, on the other hand, was reduced
by y2d. per week for both employers and employees as from July 4,
1938. The total increase in income including income from invest­
ments, in 1938, amounted to £64,905.
Expenditures for agricultural unemployment benefit increased
£287,000 in 1938, and there was an increase of nearly £5,000 in the
cost of administration. The total increase in expenditures, including

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Social Security

341

small increases in minor items, amounted to £293,633. The income
of the agricultural account during the year was nearly twice the
expenditure, and in this respect repeated the experience of earlier
years. The outstanding feature of the operation of the agricultural
scheme since its inception has been the excess of income over expendi­
ture, and at the end of 1938 the balance of about £2,774,000 was
nearly three times the present annual expenditure.
In considering future trends it is stated that it is impossible to
determine exactly how agricultural unemployment and the finance
of the agricultural account will be affected by the trade cycle. Among
persons insured under the agricultural scheme, the rate of unemploy­
ment during 1938 was 5.5 percent, but under the general scheme the
rate was 12.6 percent, as compared with an expected mean rate, taking
good and bad years together, of 15.1 percent. That is to say, under
the general scheme it is assumed that the mean rate of unemployment
will be about one-fifth, or 20 percent, greater than that of 1938.
However, it is probable that there will be less violent cyclical fluc­
tuations in agriculture than in industry, but making allowance for
an increase in claims in the agricultural system as workers become
familiar with the machinery of insurance, it was considered that it
would be prudent for agriculture, taking good and bad years together,
to allow for an unemployment rate 25 percent above the 1938 rate
or nearly 7 percent of the insured persons. On the basis of current
expenditures, benefit costs at this rate would be increased £185,000
a year, making an average annual expenditure on benefit of £927,000
and the total expenditure on the account about £1,164,000.
The difference between the actual and the expected expenditure on
benefit is due in part to the fact that a larger proportion of the unem­
ployed than was expected were women, who received lower rates of
benefit than men; and, to a much larger extent, to the fact that so
small a proportion of the unemployment which does occur ranks for
benefit. During the year 1938 the proportion of unemployment in
agriculture ranking for benefit was 48 percent for males, 60 percent
for females, and 50 percent for both sexes together. This was con­
siderably lower than that of the general scheme (about 60 percent)
and also lower than the expectations and intentions with which the
agricultural scheme was established. In view of the unexpectedly
small number ranking for benefit, the committee felt that a study must
be made to determine the reason for this and also which types of em­
ployees have been excluded from benefit, since a substantial number of
insured workers have been receiving allowances from the Unemploy­
ment Assistance Board. It was considered that some amendment of
the rules governing the payment of benefit might be necessary, since
in an industry with unemployment as low as 7 percent, a condition in
which not more than half of the unemployed receive benefits cannot

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

342

Monthly Lahor Review—August 1939

be regarded as satisfactory. To cover a larger proportion of the total
unemployment than at present, it is said, should he regarded as one of
the essential purposes of the agricultural scheme. An increase in the
percentage ranking for benefit, to about 70 percent (which is considered
desirable), could be met under the present rate of contributions and
still leave a substantial disposable surplus.
Representations regarding the scheme were made by various
groups—farmers’ organizations, the Ministry of Agriculture in Eng­
land, the Department of Agriculture in Scotland, employers, and
employees. The representatives of the employers thought no drastic
changes should be made in the scheme because of the short experience
under it and because employment conditions were far from normal,
but suggested that if there were sufficient disposable surplus it should
be used to reduce contributions or to provide a moderate increase of
benefits. The representatives of the employees proposed certain
changes, including abolition of the 3-day waiting period, payment of
cash benefits to boys and girls between the ages of 14 and 16, and
increase of the rates of benefit for the other sex and age classes. They
did not favor lowering contributions, but preferred, if necessary, to
pay higher contributions in order to secure higher benefits. The rep­
resentatives of the agricultural departments advocated a moderate
increase in benefit rates for the purpose of increasing the attractive­
ness of agricultural work and checking the drift of men from the land.
The committee recommended an increase of 3s. a week in the weekly
rate of benefit for men with dependents, to a maximum of 33s. and
corresponding increases for the other classes, but did not recommend
reducing the waiting period nor payment of benefits to boys and girls
under the age of 16. The rebate on contributions allowed on long
hirings has proved costly from an administrative standpoint, and
claims have been much below expectations. For these and other
reasons the committee recommended that the system should not be
continued.
In view of the amount of the diposable surplus, it was recom­
mended that the weekly rate of contribution should be reduced by
Kd. for both workers and employers, from July 3, 1939, to July 6, 1942.

OLD-AGE

ASSISTANCE IN T H E U N IT E D
1938: A CO RR EC TIO N

STATES,

IN AN article appearing in the July 1939 issue of the Monthly
Labor Review, under the above title, the table on page 73 gave the
average monthly old-age assistance allowance in Nevada as $6.46.
This was a typographical error, The correct figure was $26.46.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Vacations With Pay

PAID VACATIONS U N D E R COLLECTIVE
A G REEM EN TS IN GREAT B R IT A IN
ABOUT 4 million workers were recently estimated to be entitled to
holidays with pay under the terms of collective agreements in Great
Britain. This estimate was made by the Ministry of Labor 1 in a
pamphlet summarising the major provisions of voluntary agreements
of employers and employees dealing with paid vacations. The
Amulree Committee on Holidays with Pay 2 made an estimate of
3 million persons entitled to such vacations in the spring of 1938
and recommended unanimously “that the grant of such holiday
under voluntary agreements between organizations representing em­
ployers and workers should be extended to the utmost practicable
extent and at the earliest possible date.” Both totals cover “work­
people,” a class that is defined as consisting of manual workers gen­
erally and nonmanual workers in receipt of not more than £250 a
year and also unemployed workers.
The various ways of dealing with the main points that require
settlement in establishing systems of paid vacations are dealt with
in the publication here reviewed and are summarized below. In­
cluded are such factors as the length and time of the holiday, the
conditions under which employees are entitled to holidays, and the
method of calculating appropriate wage rates. In addition the texts
of some of the principal agreements or of those which include features
of special interest are given in the original publication as a guide to
other industries in establishing holidays with pay under collective
agreements.
Length and Time of l acations
In general a paid vacation is granted for 1 week or 6 days. Longer
vacation periods up to 2 weeks or 12 or 14 days are fairly common as
exemplified in the Government and municipal services and in coop­
erative associations. Where the period is stated in days it is cus­
tomary to specify that the days shall be taken consecutively but a
i Great Britain. M inistry of Labor. Holidays with Pay, Collective Agreements Between Organizations
of Employers and Workpeople. London, 1939.
1 For a discussion of the committee’s recommendations see M onthly Labor Review for July 1938, pp.
69-63.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

343

344

Monthly Labor Review—August 1939

few agreements provide for dividing the vacation period by mutual
consent of employers and employees. A number of agreements allow
for the granting of the usual public holidays without loss of pay, but
this is not general. Agreements covering the majority of workers
receiving paid vacations contain no reference to public holidays
other than specifying the rate of payment to those called upon to work.
Instances occur in which provision is made for compensation to
employees when public holidays occur during the vacation period.
For example the employees affected may be entitled to an additional
day at the close of the ordinary holiday. Some agreements specify
that no such additions shall be made to the ordinary vacation.
In cases where it is necessary for an employee to work on a public
holiday he is sometimes paid the higher rate customary for such work
and in addition is granted compensatory time off. Certain recent
agreements define holidays more precisely than formerly, provide for
reducing the number of general or local holidays, or specify that wages
shall be paid only for public holidays.
While the length of the vacation is usually fixed in the collective
agreement, some do not contain such provisions. In one industry a
special holiday fund is maintained from weekly contributions. The
sums accumulated would normally amount to 1 week’s wages for the
employees and is paid to them at the summer holiday period but the
different establishments are left free to determine the terms under
which vacations are granted.
Occasionally a distinction is made between shift and day workers
under an agreement. In one industry, where some employees are
engaged on continuous processes, the day workers are entitled to a
vacation of 6 consecutive days and the continuous-process workers,
whose working week is 7 shifts, are granted 7 days’ leave including
Sunday.
Agreements usually prescribe that the paid vacation shall be taken
between May 1 and September 30, often with qualifications such as
“unless otherwise arranged” or “as far as possible.” Individual em­
ployees need not spread their vacations over this entire period and
there is nothing to prevent a complete holiday shut-down of 1 week.
Some agreements actually provide for such a suspension of work. If
there is a spread of vacations the employer is usually granted the
option of deciding when the workers shall take their vacations but in a
few cases the latter decide. Other variations are to provide that a
part of the holidays shall be taken in winter or that they shall not be­
taken in certain busy periods. While few agreements fix the specific
holiday week, a few state when the vacation shall be taken and the
day of the week it shall begin.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Vacations with Pay

345

E ligibility

Agreements usually establish the requirements for eligibility to
paid vacations. Qualification for the full vacation or the full rate of
payment depends upon whether the worker has the necessary period
of service, which is 12 continuous months in most cases. However,
failure to fulfill this requirement does not in all cases bar the worker
from receiving a paid vacation. He may be allowed a shorter period
of leave or, if given the full time, he may be paid less than the full
amount of the holiday allowance. Some agreements do not establish
a fixed scale but provide for pro rata leave for workers according to
their length of service. The special problem arising in industries
where there is a complete plant shut-down for vacations is met in one
industry by allowing short-term employees with less than 6 months’
service, who are forced to take their holiday, one-half day’s pay for
each month of service. In another such industry the holiday taken
by workers without the required service, when the plant is closed,
counts as the first year’s holiday but the employers have no claim for
reimbursement of money paid in the event of the employee’s leaving
or being discharged before the completion of 1 year’s service.
Under the terms of a few agreements the qualifying period for
payment for public holidays is shorter than for the summer holiday.
Sometimes payment is made for public holidays irrespective of length
of service, and another variation is to pay for a public holiday if the
employee returns to work punctually on the following day.
Other conditions for receiving paid holidays include the stipulation
that the worker shall not have lost more than a given number of days
during the qualifying period. The time so lost must generally have
been due to his own fault and not to sickness or other circumstances
beyond his control. Occasionally, however, contingencies of the latter
nature, where the absence is prolonged, may bar the worker from the
paid vacation. Several agreements contain provisions whereby deduc­
tions are made from the holiday payment in proportion to time lost
by the worker but without forfeiture of the entire paid holiday.
Absences on trade-union and governmental business and in attending
technical classes are not regarded as lost time under some agreements.
In some instances the grant of paid vacation is conditional on good
conduct or satisfactory service.
Determination of P a y

The provisions of agreements differ in specifying the rate of pay for
employees on vacation. Some simply state that holidays shall be
granted “with pay” or “with full pay.” No difficulty is experienced
in computing the wage where workers are paid at time rates, but for
piece workers or workers under other systems of payment by results
163839— 39---------- 6


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

346

Monthly Labor Review—August 1939

it is necessary to define “pay.” Therefore, a number of agreements
stipulate that the piece worker shall receive his appropriate time rate.
In engineering and shipbuilding it is specified that holiday payment
shall be based on the “appropriate daytime rate” which includes
merit or ability increments but excludes increments conceded because
the worker is not employed under a system of payment by results.
Payment for piece workers is also established by averaging weekly
earnings for a certain period or a flat rate is provided which is not the
same as the rate of wage received by the individual.
Recent agreements in certain industries provide for crediting onefiftieth of the appropriate daytime rate, plus time worker’s bonus, to a
special fund for the purpose of covering the cost of paid vacations.
When less than a full week is worked, the appropriate portion of the
weekly sum is credited, and when overtime is worked it is set off
against the time lost. Each firm maintains a special fund from which
summer holiday payments are made. When an employee changes
employers his holiday credit is transferred, and accrued credits are
paid to his representative in case of death.
In the retail tailoring trade in London the journeyman tailor em­
ploying not more than two workers is entitled to paid holidays if he
grants them to his assistants. Where employees are regularly en­
gaged by several firms they are paid pro rata by these firms. Em­
ployees of subcontractors are entitled to receive payment from the
employing firm.
Quitting of Job Before Vacation
Workers who leave their jobs before their vacation is due do not
necessarily lose all of the benefit under agreements, notwithstanding
provisions for continuous service as a prerequisite for paid vacations.
A considerable number of agreements allow a payment in proportion
to the time served. In a few cases the allowance consists not of a
payment but of a portion of the leave, or the whole vacation is granted.
The cause of leaving is often taken into account in determining
whether the employee is entitled to a paid vacation, as for example
when it is stipulated that the allowance shall be paid only to persons
whose employment has terminated through no fault of their own.
However, there are agreements which simply state that the allowance
shall be granted if the employee leaves his employment or if the em­
ployee leaves either voluntarily or by dismissal. These conditions
apply, subject to the other requirements as to length of service and
good conduct.
Other Conditions
No reference is made as to whether workers may accept other
employment in the majority of agreements, but there are exceptions
providing that acceptance of paid work involves forfeiture of the paid

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Vacations with Pay

347

vacation. This provision usually applies to paid work of any kind,
but in the custom-tailoring trade in London the provisions as to the
forfeiture of holiday pay are restricted to employees “who work for
any tailor” during the period of the holiday.
Employees who must remain at work during the vacation period
usually have their paid leave later. Some agreements forbid wage
payment in lieu of holidays and a few state that the holiday is com­
pulsory.
Agreements that specify the time when the holiday payment shall
be made tend to prescribe payment in advance of the annual vacation,
but under others the payment is authorized on return from the
holiday.
Provisions for continuity of service have the effect of barring casual,
temporary, or part-time workers from holiday benefits. Sometimes
they are specifically excepted but provision is made for granting them
paid vacations, in a few cases on a special schedule based on days of
employment.
Sickness or accident during the holiday period may be compensated
for either by the grant of a holiday at a later time or by payment of
wages during the illness.
Agreements commonly have provisions establishing practice for
dealing with disputes arising from their operation and some make
reference to disputes regarding paid holidays.
Other miscellaneous but rare provisions permit employers to require
extra hours of work from employees on duty during vacation periods
at regular rates of pay; permit employees to take an extra week of
vacation without pay subject to employer approval; and stipulate
that employees are disqualified from receiving holidays with pay in
the event of a strike or stoppage of work.
Three industries have arrangements whereby employers and em­
ployees contribute equally to holiday funds. Participation is optional
with the individual worker. A few recent agreements permit em­
ployees to supplement employer contributions.

LAW PR O V ID IN G VACATIONS W ITH PAY IN IR ELA N D
PAID vacations on a wider scale are provided in Ireland under the
terms of the Holidays (Employees) Act, 1939. The effective date of
this legislation is to be fixed by the Minister for Industry and Com­
merce; thereafter the provision of the Conditions of Employment
Act, 1936, regulating paid vacations for industrial workers, will no
longer apply,1 but persons employed in shops will remain subject to
the terms of the Shops (Conditions of Employment) Act, 1938.
* Great Britain.

M inistry of Labor Gazette (London), June 1939, p. 203.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

348

Monthly Labor Review—August 1939

The Governments of Ireland, Great Britain, and Northern Ireland
have all legislated on this subject within about a year. The law of Ire­
land makes paid vacations compulsory for the workers covered, but
the laws adopted in Great Britain and Northern Ireland in 1938
simply grant to trade boards (and in Great Britain to agricultural
wages committees) the right to establish vacations with pay for the
workers whose terms of employment they regulate.2
In Ireland an annual vacation with pay must be granted to all
employed persons 14 years of age and over, with the exception of those
(above mentioned) employed in shops, persons earning over £350 a
year, home workers, attendants in railway refreshment cars, agricul­
tural workers, members of crews of seagoing vessels, fishermen, mem­
bers of an employer’s family supported by and living with him, per­
sons employed on relief works, and certain specified State employees.
A worker continuously employed by the same employer is entitled to
a paid vacation for each year of service, a year being reckoned as 365
days from the date of entering employment or any anniversary of
that date. The service requirement is that he shall have worked for
not less than 1,800 hours if engaged in nondomestic employment, or
300 days if in domestic service. Minimum employment requirements
may be established by the Minister for Industry and Commerce for
particular classes of workers in the categories covered. For industrial
workers under 18 years of age the employment need not exceed 1,500
hours. Continuity of employment is not deemed to be interrupted by
absence of not more than 1 month on account of the sickness of the
worker or shortage of work, or by periods of absence in connection
with military training in the reserve force.
Nondomestic workers are entitled to 7 consecutive days’ leave,
and qualified domestic workers to 14 days, which may be contin­
uous or in two periods of 7 consecutive days, one in each half of the
employment year. The time of the holiday is to be fixed in the discre­
tion of the employer, but the employee must be notified of the date
at least 14 days in advance.
Provision is made for granting holiday pay to employees who leave
service without having served a full year in their employment. For
nondomestic workers, having been employed at least 1 month and
not less than 150 hours in that month, holiday pay must be granted
at the rate of one full day’s pay for the first month and an additional
day’s pay for each subsequent 2 months in which he has given not
less than 300 hours of service. Domestic workers whose employment
ceases before they have served a full year are entitled to 7 days’ holi­
day pay for each half year of employment during which they have
served not less than 150 days. Young industrial workers under 18
1 For provisions of the British act, see M onthly Labor Review, October 1938. The law of Northern Ireland
is identical in terms with the British act except that it makes no reference to agricultural wages committees.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Vacations with Pay

349

years of age have their pro rata share of vacation pay, based on 120 and
250 hours instead of 150 and 300 hours as calculated for other non­
domestic employees. The Minister for Industry and Commerce
may fix different standards for particular categories of workers.
Holiday pay for nondomes tic workers paid on a time basis is the
equivalent of earnings, exclusive of overtime pay, for the last normal
week of employment; or if the pay is calculated otherwise, the holi­
day payment is the same as the average weekly earnings, exclusive of
overtime pay, of the worker in the 6 months immediately preceding
the holiday, or for the period of employment, if less than 6 months.
Domestic workers are entitled to amounts equivalent to their earnings
in the last normal workweek or fortnight immediately before the holi­
day, according to whether one or both weeks of the paid holiday are
granted at one time. Where board and lodging are furnished as a
part of wages, a cash payment is required at the rate of 1 shilling a
day for workers employed in a county borough or in the borough of
Dun Laoghaire, and 7 pence a day elsewhere.
Six public holidays—Christmas, St. Stephen’s Day, St. Patrick’s
Day, Easter Monday, Whit Monday, and the first Monday in August—
are granted nondomestic workers, under specified conditions. These
six holidays are in addition to the annual paid vacation.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Industrial and Labor Conditions

LABOR CO N D ITIO N S IN T H E M IL L IN E R Y IN D U STR Y
By M a r y A n d e r s o n , Director, Women’s Bureau

THE millinery industry is highly seasonal, and in consequence em­
ployment is extremely variable and annual earnings of the workers are
low. Frequent style changes, a demand for low-priced hats, excessive
competition, and inadequate resources of the manufacturers are some
of the factors which have affected adversely the economic welfare of
both employers and employees in the industry. In 1935 and 1936,
when most manufacturing industries showed gains in employment,
pay rolls, average earnings, salaries, and profits, the reverse was true
in the millinery industry. There was no gain in employment, average
earnings increased only slightly, and average salaries of officials and
average net profits declined.
This singularly unfavorable economic condition led to a joint
request by employers and employees to the United States Secretary of
Labor, for a comprehensive study of the industry. With greater
knowledge of prevailing conditions, it was felt, plans could be de­
veloped for rehabilitation. A Nation-wide survey of the industry
was, in consequence, made by the United States Women’s Bureau in
the spring of 1938, but was limited to firms which had been in business
at least 11 months during 1937 and the spring of 1938.1
Employment Conditions

The manufacture of millinery is carried on in 12 major production
areas.2 In 1937 there were over 800 manufacturers in the industry,
who employed an average of 22,000 workers and did a gross business
of over $91,000,000. The industry has two peaks of production in
the year (the spring peak of 15 weeks, and the fall peak of 9 weeks),
14 very dull weeks, and 14 transition weeks in which preparations are
being made for the busy season or production is reduced as orders
fall off. The manufacturer must make enough during the peak
seasons to carry him and the continuous overhead through the dull
1 See U. S. W omen’s Bureau Bulletin No. 189: Conditions in the Millinery Industry in the United States.
Washington, 1939.
2 N ew York City, up-State New York and Connecticut, northern N ew Jersey, Philadelphia and Trenton,
Massachusetts, South Atlantic area, Texas, Illinois, Cleveland, Detroit, and Milwaukee, Missouri, Los
Angeles, and San Francisco.

350

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

351

Industrial and Labor Conditions

season and for some part of the transitional weeks. The worker, also,
even though he may work each week in the year, must plan to make
his earnings in the busy seasons spread over the dull and transitional
periods.
In the busiest week of 1937 the number of workers employed was
84 percent higher than the number employed in the dullest week.
Only a little over one-quarter (26.7 percent) of the workers on the
pay rolls in 1937 worked the 46 weeks or more that may be considered
as regular employment. Almost one-half of the workers worked less
than 20 weeks; these obviously represent, it is said, the extras em­
ployed for short periods by individual firms.
Among the various productive occupations, the sewing-machine
operators had the most extensive seasonal unemployment, and trim­
mers and milliners came next. Cutters, who are few in number,
generally have steady employment. Office workers are employed
more steadily than any other nonproductive group. Sixty-four per­
cent of the millinery workers in 1937 were women.
Table 1 shows the amount of employment secured by employees in
the different occupations in 1937.
T a b l e 1.—Number of Weeks Worked by Employees in the M illinery Industry in 1937, by

Occupation
Percent of total employees who workedEmploy­
ees with
weeks
14, and 20, and
4, and
8, and
worked Under 4 under
8 under 13 13 weeks under 20 under 26
reported weeks
weeks
weeks
weeks
weeks

Occupation

___ _____________

26, 798

22.1

10.0

8.1

1.3

7.4

6.0

Blockers___________ _____
Cutters____
- _______________ . . .
Operators.- _
_ _______
-- - ___________
T rim m ers.___
General factory
- - - - - - - ____
All nonproductive____________ ____

2,886
310
5,132
11, 501
3,508
3, 461

11.4
18.7
16.6
26.0
30.0
18.5

7.7
11.3
10.1
8.7
16.1
10.1

7.3
5.8
10.2
6.3
11.1
8.6

1.2
1.9
1.5
1.1
1.7
1.3

6.4
4.2
10.6
6.3
7.6
7.0

4.5
4.8
9.6
4.9
5.1
6.8

All occupations

Percent of total employees reported who worked40, and 46, and
27, and 33, and
26 weeks under 33 under 39 39 weeks under 46 under 52 52 weeks
weeks
weeks
weeks
weeks
- - ______________

0.8

3.8

4.4

0.9

8.5

17.2

9.5

Blockers___________________
Cutters______________
__________
Operators_________
- - ___
Trimmers- . _________
... _____
General factory _ _____
All nonproductive____ ____________

.5
.3
1.3
.6
.5
1.0

3.8
1.3
4.9
3.9
3.2
3.1

4.6
1.0
4.7
4.9
3.4
3.7

.9
.3
1.1
1.1
.6
.5

10.3
8.1
8.3
10.6
4.2
4.5

23.4
17.7
14.7
19.7
9.7
'14.6

18.1
24. 5
6.4
5.8
6.8
20 4

All occupations

Earnings of Workers

Weekly earnings.—Average weekly earnings of millinery workers in
1937 ranged from $16.11 for general factory workers to $39.04 for
cutters. In the week of maximum employment, average earnings

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

352

varied from $17.32 for general factory workers to $60.14 for blockers,
but in the week of minimum employment earnings had dropped so
that the range was from $8.74 for trimmers to $31.12 for cutters.
In all the productive occupations, average earnings were higher in
New York City than in the other productive areas. The earnings of
the nonproductive force did not vary much during the year, averaging
a little more than $24 a week. Weekly earnings in the various
occupations in 1937 are shown in table 2.
T a b l e 2 . —Number of Workers and Weekly Earnings of M illinery W orkers in 1937
Number of workers
Occupation
Average
All e m p l o y e e s . . . ---------------

-- - -

Blockers - - . - - ------ - - ----------- Cutters - --- . . .
---Operators. . . .
____
T rim m ers__
....
General factory workers____ ____ _ _ _ _
Nonproductive workers 2. . .
--------

M axi­
mum

M ini­
mum

W eekly earnings
Average

M axi­
mum

M ini­
mum

14,837

17, 883

9, 723

$23. 54

$32..55

$15. 60

2,009
218
2, 654
6, 461
1,411
1,739

2,402
258
3,855
7,500
1, 932
1, 980

1,509
170
1, 522
3, 857
926
1,429

36.96
39.04
30. 31
16. 44
16.11
24. 20

60.14
48.11
45. 36
24. 34
17.32
24.23

16.57
31.12
17.10
8. 74
14. 69
24.16

1 Includes designers, not shown separately.
2 Includes foremen, shipping, and office.

Annual earnings.-—To only 19 percent of the workers on the pay
rolls in 1937 had the firms paid as much as $1,000 in the year. Only
a little more than one-third had received as much as $600. As many
as 10,000 workers received less than $100 during the year, and there
were 3,000 who received less than $10.
Blockers had larger earnings than those in other occupations.
Over one-third (36 percent) of the blockers employed in 1937 earned
$1,500 or more, and one-half of them earned at least $1,000. Cutters
had similar earnings, but only one-fourth of the sewing-machine
operators and only 7 percent of the trimmers earned as much as
$1,000.
The average earnings of the workers in the different occupations
who were employed in all 52 weeks of 1937, and the percentage they
represented of the total number in such occupations, were as follows*
Blockers (18 percent), $2,127; cutters (about 25 percent), $2,271;
trimmers and milliners (5.8 percent), $889; sewing-machine operators
(6.4 percent), $1,793; general factory workers (6.8 percent), $1,028;
nonproductive workers (20.4 percent), $1,601.
A percentage distribution of the earnings of millinery workers in
the various occupations is presented in table 3.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

353

Industrial and Labor Conditions

T a b l e 3.-—Percentage Distribution of M illinery Workers by Annual Earnings in 1937

and by Occupation

Y e a r ’s e a r n i n g s

All
Block­ Cutters Oper­
occu­
ators
ers
pations

Trim­
mers

General
factory
workers

All non
produc­
tive
occupa­
tions

U n d e r $10______________
$10 a n d u n d e r $25--------$25 a n d u n d e r $50______
$50 a n d u n d e r $75--------$75 a n d u n d e r $100_____

9.5
7.9
6.6
4.3
3.3

4.0
3.4
3.8
2.6
2.4

0.9
6.4
6.4
2.3
2.3

3.9
4.9
5.3
4.0
3.0

14.6
9.5
6.6
4.0
2.9

11.9
13.1
11.1
7.8
5.6

3.
6.
6.
4.
3.

$100
$200
$300
$400
$500

$200-----$300-----$400-----$500____
$600------

8.8
6.2
5.3
5.2
5.2

6.0
4.3
4.2
3.0
3.0

8.1
4.6
5.2
2.0
2.9

8.0
7.4
7.0
7.0
6.4

8.0
5.7
5.1
5.9
6.1

12.5
7.2
4.7
3.6
2.9

11.
6.
4.
3.
3.

$600 a n d u n d e r $700-----$700 a n d u n d e r $800-----$800 a n d u n d e r $1,000--.
$1,000 a n d u n d e r $1,500.
$1,500 a n d u n d e r $2,000.

5.1
5.3
8.6
9.5
4.2

2.6
3.3
6.0
15.4
14.8

1.7
1.4
3.8
15.4
13.6

5.4
4.5
7.4
11.7
6.7

6.1
7.0
10.9
6.8
.6

4.2
3.8
5.3
4.8
1.3

3.
4.
8.
14.
6.

$2,000
$2,500
$3,000
$3,500
$4,000

2.8
1.3

11.9
5.8
1Q

10.4
8.1
3 5
9

5.1
1.9
.2

.2
.1

3.
1.

M

100.0

100.0

and
and
and
and
and

under
under
under
under
under

and
and
and
and
and

under
under
under
under
under

$2,500.
$3,000.
$3,500.
$4,000.
$4,500.

$4,500 a n d u n d e r $5,000.
$5,000 a n d o v e r ------------T o ta l re p o r te d ...

7

0)

.1

100.0

0)
(>)

--

(0

1
1

(0
100.0

100.0

100.0

100

i L e s s t h a n a t w e n t i e t h o f 1 p e r c e n t.

Hourly earnings.—With some exceptions, productive workers in the
millinery industry are paid on a piece-rate basis. In union shops
every effort is made, in fixing rates, to insure the same returns to the
worker regardless of the great variation in the work, and a minimum
scale of week’s wages is stated in union contracts. The productivity
of the worker depends on the style and price of the hat, the amount
of work involved, etc., the trimmer’s output being generally larger
on the cheaper hats than on the more expensive ones.
In San Francisco, because of the character and volume of the work,
all workers are paid a weekly rate. In other areas, cutters and gen­
eral factory workers are paid on a time basis. Blockers usually, and
sewing-machine operators occasionally, work as a “corporation” ; i. e.,
from two to four workers pool their earnings, each receiving a certain
sum for the week.
Hourly earnings, based in most cases on workers’ records for a week
in March 1938, showed that only 1 percent of the workers earned under
25 cents an hour; 2 percent earned under 30 cents; 4 percent under
35 cents; and 6 percent under 40 cents. The effect of time rates is
evident in the concentration of the earnings of workers in San Fran­
cisco, over one-half of the workers (53 percent) there earning between
45 and 50 cents an hour and 15 percent between 60 and 65 cents.
Hourly earnings in the various areas are shown in table 4.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

354

Monthly Labor Review—August 1939

T a b l e 4 . —Average Hourly Earnings of M illinery Workers in a Week of March 1938.

by Areas
Area

Number of
employees

Average
hourly
earnings

Median
hourly
earnings

All areas____________ __________ ___

7, 525

$0.909

$0.778

N ew York C ity___ ________________
Up-State New York and Connecticut.
Northern N ew Jersey_______________
Philadelphia and Trenton__________
South Atlantic area________________
Texas___________ ____ _____________
Illinois____________________________
Cleveland, Detroit, and M ilw aukeesMissouri__________________________
San Francisco-.____________________

4,162
71
285
211
76
349
1,232
367
570
202

1.080
. 726
.718
.783
.524
.368
.784
.670
.732
.538

.896
.592
.688
.719
.506
.356
.680
.652
.715
.485

Economic Factors

The labor conditions existing in the millinery industry are the
product of factors which are partly inherent in the nature of the
industry and partly due to the organization of individual business
operations. Such factors as seasonality, style, and price are due to
external causes and are beyond the control of the manufacturer.
The great variation in employment and the low earnings of partyear workers are due mostly to the seasonality of the industry. The
style factor results in small purchases of materials in advance, in a
preponderance of hand and light-machine operation, in small firms
with limited capital, few fixed assets, and few credit facilities, in
continuous fixing of piece rates as styles vary, and in small orders
until consumers’ acceptance is assured.
The demand for low-price hats can be supplied economically only
where wholesale prices are based on volume production, whereas
production is mainly on a unit basis. In consequence, retail distribu­
tion through chain stores and through syndicates having millinery
departments in department stores is increasing, and distribution
through jobbers is decreasing. Unless the volume of business is over
$100,000, the average net income does not assure firm members as
much as the higher-paid employees receive. Also there is less labor
on low-price hats.
Factors in the industry which are capable of improvement include
oversupply of workers, excessive competition, lack of scientific
business organization, and imperfect factory management. Effective
cooperation and systematic effort of employers and employees, through
a strong union of employees (such as already exists) and a strong
association of employers, are necessary to bring about improvement
in these factors. An organized effort toward lengthening seasons,
through consumer aid, and assessing style trends far enough in
advance to allow planning of each season’s production, would, it is
suggested, tend to stabilize employment and advance the economic
interests of the industry.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

355

Industrial and Labor Conditions
OCCUPATIONS OF WPA W ORKERS

IN NOVEMBER 1937 the United States Works Progress Adminis­
tration was providing work on various projects for 1,567,000 persons.
Over half (55 percent) of these were working as laborers or on un­
skilled manual work; slightly over 17.4 percent were assigned to semi­
skilled work; 7.6 percent to skilled jobs; approximately 13 percent to
white-collar occupations; those assigned as service workers made up
slightly more than 2 percent; and supervisors and foremen constituted
the remaining 5 percent.1
The “assigned” occupation is the one at which the worker was
employed on a WPA project, regardless of his usual occupation
previous to such an assignment.
The classification of workers in the following table conforms in
general to the usual socio-economic grouping of occupations, and the
principal occupational classes here recorded refer to types of jobs.
For instance, a woman occupied as a seamstress on a sewing project
is reported as a “semiskilled nonconstruction worker,” while on the
basis of her wage rate per month she would probably be placed in
the “unskilled” wage group.
The conventional socio-economic classifications have been changed
to some extent to fit public-works jobs, but the groupings are essen­
tially the same.
(
r
Persons Employed on W PA Projects in the United States and Hawaii, by Assigned
Occupations, Month Ending November 30, 1937
Women

All persons
Assigned occupation
Number

Percent

Number

Percent
100.0

All occupations____ ____ - ...........- ------------------------------

1,566,830

100.0

274,267

----------Professional and technical w orkers-.- -----Actors______ - --- -- --- --- ----------- ----------Architects and technical engineers----- --------Artists, sculptors, and teachers of art
-----D raftsm en,-- ---- - - - - -- - ---------Librarians and librarians’ assistants--------------------Musicians and teachers of music_________________
Nurses, trained or registered---------------------Playground and recreational w orkers,._ ------------Teachers (except teachers of art and m u s i c ) ---Writers and editors (except statistical editors)------Other professional and technical workers. ---------

89,347
3, 578
5,293
4,019
4,679
2,694
9,598
1,944
19,447
23,259
2,984
11,852

5.7
.2
.3
.3
.3
.2
.6
.1
1.2
1. 5
.2
.8

35,004
1,278
6
917
84
1,959
1, 525
1,879
7,822
15, 126
993
3,415

Clerical workers---- -------------------------------------- -Bookkeepers, accountants, and auditors . .
Clerks (not elsewhere classified)-.
----------- -----Timekeepers and timekeeping clerks______
- ...
Statistical editors and enum erators---------- -- - . . .
Stenographers_______ _ - ,
- ------- --------T y p ists,. - _ ,
-.
-------------------------------------Other clerical workers------- ------------ --------------------

109, 788
2,030
63,213
24,929
2,753
6,241
7,822
2,800

7.0
.1
4.0
1.6
.2
.4
.5
.2

40,775
263
23,260
2,214
684
5,750
7,011
1,593

14.9
.1
8. 5
.8
•2
2.1
2. 6
.6

Project supervisors and foremen------- ---------------------Foremen . . . _
_
- _
--------------Supervisors, managers, and assistants____________

81,936
49,934
32,002

5.2
3.2
2.0

14,042
6,470
7,572

5.1
2. 3
2.8

12.8
.5
(0
O

•3
.7
.6
.7
2.8
5. 5
.4
1.3

1 Less than a twentieth of 1 percent.
1 U . S. Works Progress Administration. Assigned Occupations of Persons Employed on W PA
Projects, November 1937. Washington, 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

356

Monthly Labor Review—August 1939

Persons Employed on W PA Projects in the United States and Hawaii, by Assigned
Occupations, Month Ending November 30, 1937—Continued
All persons

Women

Assigned occupation
N umber
Skilled construction workers _
Blacksmiths_______ . . .
Bricklayers and stonemasons___
Carpenters_______ _ ______
Cement finishers______ _______
Electricians_____ _ _ _______
Operators and engineers (construction equipment)
Painters__ . .
Plasterers .
.
___
Plumbers and gas, pipe, and steam fitters
Roofers and sheet-metal workers____
Stone cutters, carvers, and setters____
Structural iron and steel workers
Other skilled construction workers . . .
Skilled nonconstruction workers___
C abinetm akers--.___. .
Machinists, millwrights, and toolmakers
Mechanics (not elsewhere classified)
Other skilled nonconstruction workers

Semiskilled nonconstruction workers
Aides (professional and recreational service)
Guards and watchmen .
Handicraft workers__
M achinists’ helpers . _ __
Seamstresses and other clothing and textile workers
Workers in canning, construction material, book
and furniture repair___
Other semiskilled nonconstruction workers. _
Service workers .
Cooks, chefs, and other lunchroom workers
Housekeeping aides____________ .
Janitors and porters.-_ ____
Practical nurses and first-aid m e n .. ____
Other service workers___
____ _
Laborers___ _______ .

113,615
4,027
15, 645
37, 566
9.147
3,483
4,226
19,712
2, 738
5; 577
2,344
4,385
2,153
2,612
4, 330
198
600
2,503
1,029

Semiskilled construction workers___
Apprentices and helpers:
Blacksmiths’___ . _ .
Bricklayers’ and masons’_____ _
Carpenters’.- _______ . . . _
_____
Cement finishers’Electricians’ ____
Painters’_____ _ . .
Plumbers’_________ „ . . .
Other___ - ________ _____
Asphalt workers__ . . .
B la ster s-____ ________
Calkers and pipe layers and coverers . . .
Operators of building and construction equipment
Rodmen and chainmen (surveying) Tractor drivers....... ... ..........
Truck drivers.__ ________
Other semiskilled construction workers

...
'

Percent

Number

Percent

7.3
.3
1.0
2.4
.6
.2
.3
1.2
.2
.4
.1
.3
.1
.2
(i)
(i)

.3

40

(l)

.2
.1

40

(>)

83, 931

5.3

1,318
6,831
10,756
936
773
807
1,909
3,148
3,216
2,244
4,706
9, 664
3, 470
1,996
15,139
17,018

.1
.4
.7
.1

(i)

.1
.1
.2
.2
.1
.3
.6
.2
.1
1.0
1.1

189,440
8,640
21,132
1,798
1,822
137, 571

12.1
.6
1.3
.1
.1
8.8

1,372

5

136,825

49.9

13, 594
4,883

.9
.3

11,052
919

4.0
.3

34, 815
8,866
13, 667
2,257
4, 394
5,631

2.2
.6
.9
.1
.3
.3

28, 747
8,239
13, 655
344
1,232
5,277

10.5
3.0
5.0
.1
.5
1.9

859,628

54.9

155,659
5, 491

56. 7
2.0

1Less than a twentieth of 1 percent.

The 274,267 woman workers on these projects represented 17.5
percent of the total force. Over half of these women were provided
with semiskilled nonconstruction jobs; approximately 15 percent were
placed in clerical positions; over one-eighth in professional and tech­
nical work; and the remainder in service occupations (10.5 percent)
and as supervisors and forewomen (5.1 percent).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

357

Industrial and Labor Conditions
PROFESSIONAL AND ECONOM IC STATUS OF
TEA CH ERS IN RURAL SCHOOLS

THE mean salary of white teachers in 1936-37 in selected towns
having less than 2,500 population was found by the National Education
Association 1 to be $1,005; Negro teachers averaged less than half this
amount, or $498. Great differences between white and colored rural
teachers were reported, also, in the matter of college training, the
proportions of the colored with 2 or 4 years of such training being far
below those recorded for white teachers. These and other significant
racial comparisons are shown in the following table, based on a study
of 265 counties or comparable school units, in 20 representative States,
7 of which were in the southern group.
Usable replies were obtained from 11,298 teachers 3,926 from
white teachers and 1,476 from colored teachers in the Southern States,
and 5,896 from white teachers in the other States.
Professional and Economic Status of White and Negro 1 eachers iti Rural Schools, 1936 3 i
Negro teachers

W hite teachers

Item

1-teacher
schools
in open
country

2-ormoreteacher
schools
in open
country

Towns
under
2,500
popula­
tion

1-teacher
schools
in open
country

2-ormoreteacher
schools
in open
country

94.0
5.3
2.9

65.0
7.3
3.4

49.8
7.1
35

92.5

71.9

3.4

62.3
10.0

88.8
38.9

95.2
56.9

74.7

88.4

8.7

15.9

Professional status:
Percent teaching elementary grades
only-------------- ----------------------------Median years of school service to date.
M e d ia n y e a r s i n p r e s e n t p o s iti o n --------

Percent of total—
W ith 2 years or more of college
training------- -------- ----------------W ith 4-year college degrees....... .
Belonging to State teachers’ as­
sociations------- ---------------- -—
Belonging to national teachers’
associations---------------------------C h o o s in g e d u c a tio n a s p e r m a ­
n e n t c a r e e r . . . ----- ------------------------

Fam ily responsibilities and living condi­
tions:
Percent who are m en______________
Percent who are married___________
Mean number of dependency units 1_.
Percent of total—
Maintaining homes------------------Owning or buying homes----------Having heated bedrooms.............
H a v i n g e l e c tr ic c u r r e n t -----------------

Having running w ater.............—
Having bathtub or show er..........
Transportation facilities:
Percent of total —
Riding to school--- ------------------Median miles to school______ ____ _
Cultural, recreational, and economic op­
portunities:
Percent of total —
Having access to library of 1,000
books or more-----------------------Purchasing 1 or more professional
books---- --------- --------------------Purchasing 1 or more nonprofcssional books----------------------1 A “ dependency unit” represents one person

Towns
under
2,500
popula­
tion

8.1
3.6

54.3
7.3
3.3

35.2

51.0
14.9

74.9
34.3

93.4

58.9

79.4

82.4

19.6

1.2

3.0

7.1

95.6

94.1

24.4
47.7
2.4

29.8
49.5
47.0
27.4
42.8
49.7
40.5

8.2

75.6

85.5

79.0

96.8

15.8
26.6
1.0

25.8
37.5
1.2

29.2
31.6
1.1

43.5
2.3

31.0
14.6
39.3
40.2
33.3
28.2

47.5
19.7
40.1
60.4
55.3
50.8

42.0
15.3
50.4
85.7
72.5
69.8

37.1
26.3
32.0
15.9
18.3
8.7

38.8
25.0
33.9
16. 5
18.0
11.2

20.8

61.6
55.8
2.0

69.1
63.8
2.1

60.7
31.7
.4

38.2
47.1
1.9

48.1
42.1
1.7

43.5
32.9
.4

28.9

39.4

33.0

5.4

43.0

49.5

52.5

56.2

07.6

63.5

27.1

33.4

37.5

15.8

23.0

32.9

6.8

8.2

2.2

16.0

wholly dependent or two persons partially dependent.

1
National Education Association of the United States. Teachers in Rural Communities: A National
Survey of their Professional, Social, Cultural, and Economic Status. W ashington, 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

358

Monthly Labor Review—August 1939

Professional and Econom ic Status of White and Negro Teachers in Rural Schools, 1936-37—

Continued
White teachers

1-teacher

Item

2-or-

Negro teachers

1-teacher

2

-ormoreteacher
schools
in open
country

schools
in open
country

moreteacher
schools
in open
country

Towns
under
2,500
popula­
tion

87.1

84.8

84.6

72.6

82.5

56.1

67.3

73.0

20.2

26.1

30.6
12.4
5.0

40.0
15.1
10.3

42.4

34.7
5.9
5.2

40.6
8.9
7.5

Cultural—Continued.
Percent of total—Continued.
Subscribing for 1 or more pro­
fessional magazines___________
Subscribing for 1 or more non­
professional magazines________
Median number of—
Religious services attended _____
Social events attended______ ___
Professional meetings attended__
Special trips taken durine school
year_________________________
Percent of total—
Attending college summer school.
Traveling at least 2 weeks during
summer _________________
Earning money during summer
(not teaching)__________ _
Mean school salary
2 Over 45.

20.2
12.9

schools
in open
country

Towns
under
2,500
popula­
tion

89.4
44.7
(2)

12.6

13.5

2.5

3.3

4.2

1.1

1.7

3.0

22.8

33.2

32.5

52.7

49.5

44.8

20.4

24.9

29.4

15.9

18.5

23.3

18.9

15.5
$881

16.1
$1,005

18.0
$281

22.0

19.2
$498

$668
########

$348

T H IR D 5-YEAR PLAN OF SOVIET U N IO N
THE Third 5-Year Plan of the Soviet Union, covering the years
1938 to 1942, contemplates an increase of wage earners and salaried
employees from 27 million in 1937 to 32 million in 1942 (about 35
percent).1
According to the plan, the wage fund for wage earners and salaried
employees in industries, trades, and services will be increased by 60
percent, while the earnings in money and products of the peasants
engaged on large-scale Soviet collective farms (kolkhozys and sovkhozys) will be increased by 70 percent. There will be an additional
increase in the earnings of the same peasants engaged in cottage
industries while not engaged in farm work. Thus, the earnings of
the wage earners, peasants, and salaried employees (“intellectual”
workers) are to be increased under the terms of the plan, on an
average, by more than 50 percent during 1938-42.
At the same time it is planned to increase the production of goods
as shown in the following statement:
Index of
production
in 1942
( i9S 7= ioo )

Manufactured goods:
Cotton cloth________________
Woolen cloth________________
Knitted goods______________
Clothing-----------------------------Footwear___________________
Furniture___________________
Provisions:
Groats_____________________
Macaroni___________________

1Profsoyuzy S. S. S. R.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Index of
production
in 1942
(1937=100)

Provisions— Continued.
M eat________________________ 202
263
Poultry__________
Sausage products_____________ 203
Fish and herring____________ 161
Butter and fat______________ 173
Sugar---------------------------------- 149
Canned goods________________ 305
194
Eggs------------------------------------- 250
185
Cheese_____________________ 197

160
236
182
163
160
275

(Moscow), April 1939, pp. 31-38.

Industrial and Labor Conditions

359

The new 5-year plan also contemplates an increase in the public
expenditures for social improvements in cities and villages by 70
percent, and an increase in the expenditures for the improvement of
public health conditions from 10.3 billion to 16.5 billion rubles.2
For the housing of workers the floor space is to be increased by 35
million square meters, and the separate individual family houses by
10 million square meters.3
It is proposed to make the attendance of the secondary schools
universal, first in the cities and then in the villages. This would mean
that in 1942 there would be about 40 million pupils in the elementary
and secondary schools in the Soviet Union, as against 8 million in
former Imperial Russia in 1913.
The number of skilled workers is to be increased by 8 million. The
number of specialists having secondary education is to be increased
by 90 percent, and of those having higher education by 72 percent.
The composition of the “intellectual” element of the population of
the Soviet Union in 1937 was as follows:
Leaders of the undertakings and establishments_______ 1, 751, 000
Engineers and architects____________________________
250, 000
Technicians-----------810, 000
Agriculturists______________________________________
80, 000
Other specialists connected with agriculture---------------96, 000
Scientists__________________________________________
80, 000
Teachers__________________________________________
969, 000
Journalists, librarians, club leaders, and others-----------297, 000
Artists________________________
159, 000
Physicians_________________________________________
152, 000
Lower medical staff members________________________
382, 000
Economists, statisticians-------------------------------822, 000
Bookkeepers, accountants_____________________ ______1, 617, 000
Jurists____________________________________________
46, 000
University students__________________________
550, 000
Other intellectual groups, such as military leaders-------- 1, 550, 000

This total, including family members, amounts to about 13 to 14
percent of the total population of the Soviet Union.
The Third 5-Year Plan proposes to raise the educational level of
the wage-earning class to that of the class of engineers and technicians.
s Legal value of paper ruble as fixed by the Soviet Government is equivalent to 20 cents.
* One square m eter=1,550 square inches.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Negroes in Industry

R E ST R IC T IO N IN EM PL O Y M EN T OF NEGROES
IN N EW YORK
THE growing discrimination against the employment of Negroes in
New York in any but manual and unskilled jobs is a matter of serious
concern, according to the Second Report of the New York State
Temporary Commission on the Condition of the Colored Urban Popu­
lation to the Legislature of the State, February 1939.1 The com­
mission found that financial and mercantile enterprises employing
hundreds of thousands of white-collar workers throughout the State
do not hire Negroes for such work.2 With the exception of the
garment and fur trades and related industries in the city of New
York, the factories for the most part afford no openings for colored
labor. A carpet factory in Yonkers, which at peak periods has 6,000
workers on its pay rolls, hires no Negroes and is reported as never
having employed any in more than 50 years. If these workers are
able to secure any foothold at all in the fields of engineering, laboratory
work, or transportation, it is only after great effort. Insurance com­
panies, banks, and public utilities have definite policies barring or
restricting them from employment. The largest insurance company
in the world, which writes more insurance among the colored people
than all the Negro insurance companies combined, stated that no
Negroes were employed in its force of 20,000-odd in New York State
alone. The largest public utility in the State, which employs a
greater number of persons than all of the departments of the State
combined, reported “perhaps a dozen” colored persons among its
employees.
These conditions are themselves serious enough, but certain present tendencies»
if not checked, point the way to even more serious employment problems for the
colored population in the near future. During the last decade there has been a
marked decrease in the proportion of all workers engaged in production occupa­
tions, a decrease caused by shifts in manufacturing activities and technological
developments. Domestic and personal service showed a similar proportional
decrease. On the other hand, during the same period workers engaged in trade,

1

For summary of findings and recommendations of the preliminary report, see M onthly Labor Review,
June 1938.
2 In 1930 the Negro population of N ew York State was 412,814, or 3.3 percent of its total population.
Population experts estimate the Negroes in the State in 1938 at nearly 500,000,

360

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Negroes in Industry

361

clerical, and professional service occupations, which have been usually closed to
Negroes, showed a proportional increase.

Although the need for manpower in industrial production declined
during the last 10 years, a shift of Negro labor into industrial occupa­
tions in marginal capacities took place. In brief, such laborers during
these 10 years “have shown a tendency to shift into contracting fields
of employment, with the ironic probability that by the time they
have entrenched themselves they will be under pressure to move to
more fruitful areas.” The report under review emphasizes, however,
that this has not been a voluntary movement but the inevitable result
of the fact that expanding employment fields are usually closed to
Negro workers. “It would seem, therefore, to be easily demonstrable
that one great need of the Negro population is to be accepted into a
wider area of the State’s employment fields. Negro labor must be
allowed to share more equitably in all employment oportunities of our
industrial economy.” This has been, the commission reports, the
constant purpose of Negro workers, but they have been frustrated
by community forces actuated by various motives. One of the
outstanding factors in this opposition is the employers’ disinclination
to hire Negroes for any but menial or casual labor. Important retail
establishments throughout the State illustrate strikingly this attitude
of employers.
One of the largest department stores in New York City, although
typical of retail houses in its employment policy, is, in fact, much
more liberal than many other firms. This establishment, which has
at different periods of the year between 10,000 and 19,000 on its
staff, includes only 175 Negro men on its pay roll. All of these are
elevator operators or cafeteria or kitchen workers. According to the
commission, Negroes are completely barred from employment as
stock clerks, shipping clerks, sales or office employees, chauffeurs, or
mechanics, although many of the applicants have college degrees and
better references than the average white employees in such occupations.
Only about 65 colored persons were reported among the New York
World’s Fair administrative staff of 1,200 and construction crews of
700. Included in the 65 are receptionists, maids, attendants, night
cleaners, 1 policeman, 1 draftsman, several mail-room workers, and 2
artists. In the opinion of the commission, “this small number of jobs,
mainly menial, is indeed an inequitable shiire for Negroes, especially
in view of the fact that over 70 million dollars of New York City’s
public moneys have been invested in the fair.”
In up-State New York employment of Negroes in the large factories and whole­
sale and retail establishments is also practically nonexistent. In Rochester, for
example, one survey showed that of 35,120 employees in private firms, only 70
were Negroes. The largest firm, manufacturer of photographic equipment and
supplies, employing 16,351 persons, reported 1 Negro porter and 19 construction
163839— 39— — 7


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

362

Monthly Labor Review—August 1939

workers engaged by a subsidiary corporation. Another firm manufacturing
optical goods reported 3,000 employees—no Negroes; two clothing manufacturers
reported 4,000 employees and not one Negro because they “are supplied with
workers by the union upon requisition.”

The commission’s survey of Syracuse included 10,288 employees
among whom were 15 Negro workers occupied as cleaners and laborers.
Only 4 colored workers among 28,932 employees were reported in
large and small factories and mercantile establishments in the “Triple
Cities” of Binghampton, Endicott, and Johnson City. The largest
enterprise in that district, dealing in leather products, had but 2
Negroes in its average force of 15,000. Another important manu­
facturer, making mathematical apparatus, reported none of this race
in his personnel of 3,985.
A cigar factory in Poughkeepsie was employing 12 semiskilled
Negroes, but among the other 5,252 employees covered by the com­
mission’s survey in the same city only 7 colored workers in the unskilled
groups were reported.
The commission “was at a loss to understand how Negroes in these
and other communities in the up-State region managed to make a
living and survive starvation. Certainly, where they have been
unable through their own efforts to cope with this serious problem
of no employment it is the duty of the State to lend assistance.”
Some very active campaigns, including threatened boycott, have
been launched in colored neighborhoods with a view to securing jobs
in local offices and stores. Occasionally these efforts have met with
some little success. In general, however, the concessions have been
temporary and have involved only a few new employment opportuni­
ties. According to the commission, the most effective of these
campaigns was carried out in the Harlem area in New York City,
where several hundred Negro clerks were estimated to have secured
positions in 1934 and 1935.
Several of the persons who originally sponsored this movement,
however, now take the attitude that the results did not justify the
community effort expended in this crusade.3 Negroes are not only
blocked from entering many employment fields, but they frequently
face the loss of jobs long held by laborers of their race. It has been
reported that employers have in recent years deliberately dismissed
them and given their jobs to white workers. In this group of employ­
ers “would seem to be one of the largest bus companies, a subsidiary
of a major eastern railroad.” In 1937 this company had employed
97 Negroes as “bus-service stewards” to accompany busses on long
trips, to handle baggage, and to perform other duties. In January
1938 all but 6 of these colored men were summarily discharged,
3
F o r a n a c c o u n t o f t h e H a r l e m P a c t fo r e m p l o y m e n t o f w h ite - c o lla r N e g r o w o r k e r s , m a d e p u b li c A u g u s t
7, 1938, s e e S e p te m b e r 1938 M o n t h l y L a b o r R e v i e w , p p , 557-58.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Negroes in Industry

363

although their superiors stated their work was satisfactory. The
places of 86 of these dismissed stewards who had received $35 per
month were fdled by creating positions for “baggage checkers” who
were all white and who were selected from former drivers out of work
at the close of the travel season. Twenty of the white baggage
checkers are paid $90 per month to load and unload baggage. For
2-hour periods they are relieved by Negro redcaps, who receive no
remuneration for this extra labor.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

The Older Worker

U N EM PLO Y M EN T OF O LD ER W ORKERS IN NEW
YORK
IN ITS study of discrimination in employment of the middle-aged,
the New York State Joint Legislative Committee, created by a reso­
lution adopted May 7, 1937, first endeavored to ascertain the causes
of the discrimination and the extent to which it existed in the State.
The committee found that in some instances a thoughtless employ­
ment policy had developed which did not take into account, in any
way, older employees. Its preliminary report1 also noted 21 alleged
causes of discrimination against the employment of older persons.
Agreeing with the position taken in an editorial, that “the govern­
ment has little right to criticize private industry for discriminating
against older workers, unless the government, itself, sets a good
example,” the committee originated a bill in the New York Legis­
lature, providing against such discrimination. This measure passed,
and was signed by the Governor of New York on April 4, 1938.
The committee’s early studies regarding what it considered the
primary cause of alleged discrimination against middle-aged workers,
namely “increased rates of compensation insurance,” led it to the
conclusion that “age and rate-making for compensation insurance had
no relation.” However, as a serious doubt still existed as to whether
or not the inclusion of middle-aged wage earners in the working force
raised compensation-insurance costs, because they had, it was alleged,
more severe and costly accidents and were slower in recovering, further
study of this point was made. The results of this later research are
given in a report to the legislature transmitted on March 31, 1939.2
From New York State Department of Labor the committee ob­
tained an analysis of some 80,000 compensation cases handled by that
office in 1937. This showed that the peak in all accidents in that
year, tabulated by age of the injured, occurred at 25 years of age,
though it varied somewhat in different occupations. The figures also
showed that older workers were not liable to more severe accidents
than the younger ones and that age had apparently not been a factor
1 S ee M o n t h l y L a b o r R e v ie w , M a y 1938, p . 1138: C a u s e s o f D i s c r i m i n a t i o n A g a in s t O ld e r W o r k e r s .
B a s e d o n P r e l i m i n a r y R e p o r t o f N e w Y o r k S t a t e J o i n t L e g is la t iv e C o m m itt e e o n D is c r i m i n a t i o n in E m ­
p l o y m e n t o f t h e M id d le - A g e d , 1938.
N e w Y o r k . L e g is la t iv e D o c u m e n t (1939) N o . 77, p p . 40-41 a n d 54-58.

2

364

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

A lb a n y , 1939.

The Older Worker

365

in the fatal-accident cases, which were more costly. The committee
reached the conclusion not only that older workers did not cost em­
ployers more for compensation than younger workers, but indeed
that the middle-aged worker was not so expensive to the employer,
from a compensation-cost standpoint, as the younger worker. The
committee was not able, however, to settle this point beyond a doubt,
because neither the State Labor Department nor agencies of the Fed­
eral Government had available information as to how many people
were employed in New York State in 1937 in compensable occupa­
tions, by age groups comparable with the 80,000 accident cases
analyzed. Recommendation, therefore, was made that the New
York State Labor Department obtain this information so that the
question might be cleared up.
To alleviate what the committee believes to be one of the most out­
standing causes of discrimination in the employment of the middleaged—physical unfitness—it was recommended that—
Legislation be enacted to provide for the physical repair of all persons over 21
and under 65 years of age who have a correctable physical defect which prevents
them from gainful employment, and who are unable to afford the expense of
correcting the same, and who are citizens of the United States and have been
residents of the State for a period of at least 1 year immediately preceding their
application for such relief.
The committee further recommends that any such law should not become
effective until 1 year after its passage because of the expense involved and the
administration problems which will have to be worked out in connection with
such a program.

In the opinion of the committee, the rehabilitation program will
more than pay for itself after 1 year by the reduction of welfare costs,
to say nothing of the saving effected in human values.
In West Virginia, the committee stated, successful experiments have
been made under a somewhat similar rehabilitation scheme which has
been of advantage to all concerned. A general saving of 57 percent
in welfare costs alone is reported.
The committee contemplated the enactment of legislation along the
lines of the Massachusetts Act, now in operation, which prohibits
discrimination in the employment of older persons, but, after reflec­
tion, came to the conclusion that such a law would not solve the
problem. Such action would run counter to the committee’s policy
of persuasion without recourse to force. Also, the members were not
convinced that such an act would have any substantial effect.
The committee states that its task is by no means completed. Many
problems will have to be worked out over a period of years if perma­
nent solutions are to be had. In illustration, adult education and
guidance should be given consideration. Cooperation between em­
ployers and employees and various government agencies must be
closer. The employers of the State will have to be educated as to the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

366

Monthly Labor Review—August 1939

need for immediate cooperation to solve the problem under investi­
gation. Differences in compensation costs to large and small estab­
lishments call for study and adjustment. Consideration must be
given to the matter of group insurance. The State’s rehabilitation
departments must be studied with a view to consolidating them and
making their services more effectual at less cost. The question of the
future need for health insurance in the State should be given attention.
Great masses of statistics have been gathered and correlated, but
further important facts must be found. Neither Government nor
industry apparently has certain vital statistics on the main problem
in question and certain kindred problems. This lack of information
is given as “reason enough for the extension of this committee for
1 year.”
The State and Federal Labor Departments and also the Federal
Social Security Board have been of great assistance to the committee
by making surveys to throw more light on the subject of investigation.
Industries and industrial communities have also been helpful in this
connection.
Believing that another year’s investigation and study would enable
it to present “a complete set of figures dealing with this subject from
every important angle,” the committee requested that its life be ex­
tended for such period. A resolution to this effect passed both houses
of the New York Legislature May 20, 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Housing Conditions

TE N A N T SELECTIO N FOR PU BLIC LOW -RENT
HOUSING PRO JECTS
SINCE the public low-rent housing program is intended to provide for
persons in the lowest income groups, who are living under substandard
conditions, the United States Housing Authority stresses the impor­
tance of sound and standardized methods of tenant selection. In one
of its recent bulletins,1 the Authority lays down certain criteria to be
established by local housing authorities to insure that the families to
which dwellings are rented meet the requirements of the Federal
Government as to need for subsidized housing and that they are able
to pay the project rents.
It is regarded as essential that local authorities make an early start
in determining policies for admission to new projects. If preliminary
plans are made when construction of a project commences, a period
of 4 to 6 months is available in which to complete the list of tenants.
The services of a professionally qualified person are required in advance
of the actual selection of tenants. In addition it is desirable for the
local housing authority to appoint a special advisory committee to
assist in formulating policies and procedure.
Study of family size, income, rents, and occupations of families living
under substandard conditions all figure in making plans. Some cities
already have the results of surveys of this kind.
Standards for Tenant Selection

Any standards adopted by a local housing authority must first of all
meet the legal requirements of the United States Housing Act and the
local law. In order to carry out the spirit as well as the letter of the
laws, it is necessary to fix limits on occupancy and to guard against
partiality in selecting tenants.
The United States Housing Act states that no tenant may be ac­
cepted whose net income exceeds five times the rental (including heat,
light, water, and cooking fuel), except in the case of a family having
three or more minor children, when the income may be six times the
rental. In the bulletin here reviewed, it is recommended that local
i U n i t e d S ta t e s H o u s i n g A u t h o r i t y .
S e le c tio n . W a s h i n g to n , 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

B u ll . N o . 22 o n P o lic y a n d P r o c e d u r e : I n i t i a l S te p s i n T e n a n t

367

368

Monthly Labor Review—August 1939

housing authorities make every effort to select families having incomes
of less than the maximum permitted either under the Federal law, or
under the local law if the latter provides a lower maximum.
It is not believed to be practicable to establish minimum income
limits for eligibility in an arbitrary manner. If families with unusually
low incomes are to be housed, each case must be determined on its
merits, in order that decent housing may not be obtained by sacrificing
other essentials. Study must be made of the steadiness of the family
income, the past rent-paying record, the extent and type of indebted­
ness, if any, and the record of the family in meeting its obligations.
The physical need for housing is best determined, in the light of
local conditions, by means of a scoring system applied accurately and
objectively. If one major factor or a combination of substandard
housing conditions threatens the safety, health, or morals of occupants
of a dwelling, the family is then eligible for consideration in selecting
tenants for a project. By moving families living under the worst
conditions, the way is opened for the closing or compulsory repair of
the structures that are poorest.
Items to be taken into account in establishing the necessary scoring
system include the lack of one or more of the following: Running
water, inside private toilet, bath or shower, adequate and safe heating
and cooking facilities (including sink, natural light, and adequate
ventilation), and adequate and safe artificial lighting facilities. Also
of importance are the space and room arrangements as they bear on
privacy, health, and morals, and the existence of fire hazards, over­
crowding, or doubling up of two or more families. Dwellings should
be scored according to the location, that is as to whether many nearby
buildings are abandoned or in need of repairs or demolition; whether
industrial nuisances such as noise and smoke are present, streets are
congested, social influences are demoralizing, or play spaces for chil­
dren are absent; and whether any local health or sanitary regulations,
tenement or housing laws that have not already been listed are vio­
lated. High rent for decent accommodations is not considered as a
cause for rehousing under the existing program, although it has some­
times been so rated by other agencies.
Family make-up, for the purposes of the United States Housing
Authority, includes a natural family, or a cohesive family group
which may include dependent relatives, other dependents clearly
established as an inherent part of the group, and working adults
known to have lived regularly as a part of the family, whose earnings
form an integral part of the family income and whose resources are
used in meeting family expense. The definition does not include a
household composed of two distinct families, one with lodgers or
transient paying guests, a household of unrelated working adults, or a
person living alone.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

369

Housing Conditions

Tlie following limits on room-occupancy are suggested by the United
States Housing Authority as a guide:
M in im u m and
m axim um n u m ­
ber of occupants

Living-room bedroom____
Bedrooms:
1 full size__________
1 full size and 1 small
2 full size___________
1 full size and 2 small
2 full size and 1 small
3 full size___________
2 full size and 2 small
3 full size and 1 small
4 full size___________

2
2

23-

3
4
4

45567-

5
6
6
7
8

Experience has shown the need for establishing clearly defined local
policies, in advance of tenant selection. It is recommended that
special restrictions on families be kept at a minimum, but tentative
policies should be fixed as to the proportion of relief families and differ­
ent occupational and racial groups to be housed.
Methods oj selecting tenants—After the general criteria for tenant
selection are laid down, the success of those responsible for selecting
tenant families will depend upon the methods employed in obtaining
applications for occupancy from families in the lowest income brackets.
Adequate publicity should be given the housing project, so that all
possible eligibles will apply. In order not to mislead prospective
tenants, rents should be quoted, including charges for utilities and
other additions to the shelter rent. This will eliminate a number of
ineligible families which otherwise might apply.
Provision for the filing of applications should be made simultaneously
with the release of publicity. The necessary forms should give com­
plete information in order to make it possible to verify the facts and
to determine the eligibility of the applicants. It is stressed that taking
applications is more than a clerical job, and that qualified interviewers
should be employed.
The services of representatives of the United States Housing Au­
thority may be useful in obtaining and training personnel to select
project tenants, and the Authority contemplates publication of supple­
mentary guides, forms, and form letters for the use of local authorities.
However, certain procedural details must be settled locally, and the
local authorities are in a position to determine when to display finished
dwelling units, and what sizes of offices will be required for tenantselection work.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cooperation

OPERA TIO N S OF C R E D IT UNIONS IN 1938
REPORTS covering 96 percent of all the credit unions in active opera­
tion in the United States at the end of 1938 indicate that all credit
unions combined made loans in that year totaling nearly a quarter
of a billion dollars. More than 1,500,000 loans were made during the
year. The total membership at the end of the year is estimated at
over 1,800,000. Total assets aggregated, for reporting associations,
approximately $142,000,000, of which nearly 114 million was share
capital paid in by the members. Data on dividends were not avail­
able for State-chartered organizations in 12 States; the remaining
credit unions returned in dividends on share capital, for the year,
nearly 3% million dollars.
The loans outstanding at the end of 1938 represented 88.7 percent
of the share capital of the Federal credit unions and 96.5 percent of
that of the State-chartered associations.
Substantial increases in membership and assets were made in most
of the States for which data were obtained for both 1937 and 1938;
these items registered gains of 24.1 and 25.1 percent, respectively.
Although the credit unions formed under the Federal act are increasing
in both numbers and size at a faster rate than is true, in most States,
of those formed under State acts, nevertheless the latter as a group
also show continuous growth. From 1937 to 1938 the total number
of State-chartered credit unions increased by about 9 percent, as
against 20.6 percent for those under Federal charter. Membership
increased, in the same period, by 22.4 and 29.7 percent, respectively.
However, a greater increase in total business (i. e., amount of loans
made) was shown by the State associations.
At the end of 1938 the leading States in point of number of associa­
tions were, in order, Illinois, Wisconsin, New York, Pennsylvania, and
Massachusetts. Illinois was also the leader as regards total member­
ship, followed in order by Massachusetts, New York, Pennsylvania, and
Wisconsin. Massachusetts still led as regards amount of loans during
the year, the organizations in that State having made loans aggregating
nearly 25 million dollars. New York, another old credit-union State,
came in second place with nearly 20 million dollars, and Illinois in
third place with nearly 19% millions. California was the only other
State in which the 1938 loans totaled over 10 million dollars.
370


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cooperation

371

The distribution of the 7,265 credit unions, by State and type of
incorporation, is given in table 1.
T a b l e 1 . — Total

Number of State- and Federal-Chartered Credit Unions at the End of
1938, by States

S t a t e a n d t y p e of
c h a rte r

All St.nt.ps

N um ber
of asso­
c ia tio n s

S ta te a n d ty p e of
c h a rte r

79
74
5
87
23
64
31
3
28
55
31
24
443
382
61
196
139
57
309
296
13
20

7 265

1 A 250
2 .V 015

73
57
18
2
16
30
16
14
372
163
94
45

7

24
83

127
33

13
223
<200
23

116
83

21
7
14
184
161
23

578

3
12
8
4

489
89
259
143
116
215

186
45
141

211

11

4

534

91
F e d e r a l ____________

N um ber
of asso­
c ia tio n s

75
16

S ta t e __________
F e d e r a l ________

166
368

S t a t e a n d t y p e of
c h a rte r

N o rth C a r o l in a ... . . .
S t a t e _____________
F e d e r a l _________ .
N o r th D a k o t a : F e d e r a l .
O h i o _____________ . . S t a t e __________ __ .
F e d e r a l ____________
O k la h o m a ________ _____
S t a t e _______________
F e d e r a l ____________
O r e g o n ______________ . .
S t a t e -------- -----------F e d e r a l ____________
P e n n s y l v a n i a ________ .
S t a t e ------ ---------------F e d e r a l . . . ------- .
R h o d e I s l a n d __________
S ta te .
_____ _____
F e d e r a l . __________
S o u th C a r o l i n a ________
S t a t e . . _______ . . .
F e d e r a l ___ _____ .
S o u th D a k o t a : F e d e r a l .
T e n n e s s e e __________ __
S t a t e ____________ F e d e r a l __________ .
T exas
____. . . -------S t a t e -------- ---------F e d e r a l ____________
U t a h ___________________
S t a t e _______________
F e d e r a l ____
.. .
V e r m o n t : F e d e r a l . ----V i r g i n i a ---- -----------------S t a t e ___________
F e d e r a l ________. . .
W a s h i n g t o n ________ __
S t a t e _______________
F e d e r a l ___________
W e s t V ir g in i a _________
S t a t e ______ . . . . .
F e d e r a l ________
Wisconsin: S t a t e 5-------W y o m in g : F e d e r a l ____

N um ber
of asso­
c ia tio n s
114
84
30
34
407
240
167
74
44
30
60
25
35
444
69
375
29
16
13
32
3
29
16
127

66
61

292
87
205
48
26

22
4
85
29
56
155
115
40
50

17
33
542
16

i
Includes 2 associations not yet in operation at end of year, and 54 associations ip voluntary liquidation.
} Includes 13 associations not yet in operation at end of year; also 201 associations, liquidated or m process
of liquidation.
s N o data for State-chartered associations.
< Estimated.
,,
, ,, ,
. .
...
* N o Federal credit unions in operation at end of year, though 1 had received a charter.

Data for 1938, by States, are shown in table 2. As already noted,
more than 95 percent of all credit unions in active operation are
included in this table. The data for the Federal credit unions were
supplied by the Credit Union Division of the Farm Credit Adminis­
tration and represent slightly more than 97 percent coverage of all
active associations chartered under the Federal act. The data for the
State-chartered associations were furnished by the officials having
supervision over credit unions in the various States. All of the
important credit-union States are included except Missouri, from
which no report was received. It was reported from South Dakota
that no associations had been chartered under the State act; and in

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

372

South Carolina the State officials are in doubt as to their authority
to require reports from the associations.
T a b l e 2 . —Operations of State- and Federal-Chartered Credit Unions in 1938, by States

S ta te 1 a n d
t y p e of
c h a rte r

N um ber
of a s s o c ia ­
ti o n s 2
R e­
T o ta l p o rt­
in g

N um ­
b e r of
m em ­
b e rs 2

P a id - i n
s h a r e c a p i­
ta l 2

T o ta l
a s s e ts 2

N um ­
b e r of
lo a n s
d u r in g
year

A m o u n t of lo a n s —

M ade d u r­
in g y e a r

O u ts ta n d ­
in g e n d of
year

D iv i­
dends

A ll S t a t e s ___ 7, 062 6,707 1, 787, 858 $113,927, 760 $141. 563,466 1,539, 280 $172,767, 215 $107,861,140 $3,451,918
S t a t e - - .. 3 4,047 3,977 1,161,331
87,180, 964 112,079,442 1, 038,909 125, 873, 330 84, 142, 762 4 2,636, 657
F e d e r a l , , s 3,015 2, 730
26, 746, 796
29, 484, 024
46,893, 885
626, 527
500, 371
23, 718, 378
815, 261
A l a __________
A r iz - _ - A rk C a lif _________
C o lo _________
C o n n .8______
D e l .8________
D . C ________
F la .« _________
G a j o ________
H a w a ii8
I d a h o 11_
111___________
I n d __________
Io w a. .
K ans K y . 9_________
L a ___________
M a in e
M d __________
M a s s .12______
M i c h ________
M in n _ ___
M i s s ___ __ _
M o .11________
M o n tN e b r ________
N e v .8
N . H . 9_______
N . J _________
N . M e x .8____
N . Y ________
N . C - _____
N . D a k . 8____
O h io ________
O k la ________
O re g _______ _
P a ___________
R . I _____
S . C .11_______
S. D a k . 8_____
T e n n ________
T ex
... . U t a h ________
V t . 8...........
V a-i_________
W a k h ________
W . V a .9_____
W i s .14______
W y o .8______

73
18
30
372
94
143
10
107
127
116
82
26
578
259
215
91
79
87
31
55
443
196
309
20
23
21
184
3
12
186
11
534
114
34
407
74
60
444
29
29
16
127
292
48
4
85
155
50
542
16

66
17,465
16
1,884
27
3, 591
355 8 108, 329
93
17, 647
134
35, 489
1,766
9
100
48,109
115
21,175
114
27, 469
17, 355
81
26
2, 283
572
210, 053
247
53,908
188
32, 655
87
14, 406
76
23, 171
76 e 18, 476
27
5, 898
54
19,170
430
176,809
189
46, 547
305
56,719
19
4, 313
22
5, 037
19
8 1, 840
183
27, 892
3
196
12
3,084
174
55,076
9
980
503
166, 274
16, 230
107
31
2,991
376
105,849
73
11,153
56
11,159
121,082
418
26
16, 715
25
4, 202
14
2, 649
118
30, 893
261 8 55, 762
45
8,1 7 2
2
147
76
20, 304
150
27, 275
42
9, 463
542
117, 423
14
1,323

876,152
96, 285
153, 880
8, 799,914
1,099, 864
1, 302, 841
41,782
3,005, 049
1 ,184,169
1, 670, 520
948, 528
81,893
14,809, 121
2 ,8 1 1 ,8 7 2
2,012, 205
836, 553
1, 380, 268
1 ,106,362
280, 468
825, 688
14, 665, 413
4, 156, 604
4, 341, 179
130, 639
189, 547
74, 342
1, 034, 038
4, 985
237, 786
2 ,8 6 8 ,6 8 3
34,077
13,116,807
780, 288
111,805
5, 042. 643
250,142
772, 605
5, 567,324
1, 308, 219
124, 995
125, 824
1, 800,486
3, 844,156
413,907
3, 593
1, 006,993
1, 561, 436
397, 561
6, 592, 538
45, 731

913, 559
118, 653
175, 522
10, 526,453
1,336, 061
1, 429, 021
45, 688
3, 334,912
1, 341, 671
2, 474, 260
1, 073, 355
91,753
16,003, 044
3, 132, 615
2, 324,987
926,997
1, 708, 853
1, 244, 207
485, 985
967, 217
21, 271, 726
5,1 1 6 ,4 6 6
5, 819, 835
191, 754
206, 690
82, 918
2, 790, 268
5, 375
480, 190
3,168, 532
39, 616
16, 321, 963
1, 151,262
126,190
5, 596, 690
703, 367
880, 226
6, 288, 092
3,1 8 9 , 218
140,156
139, 695
2,18 0 ,1 4 7
4, 407, 539
473, 270
4,101
1,386, 691
1, 731, 329
538, 525
7, 426, 713
50,109

» 18, 325 a 1,098, 361
180, 796
7 1, 557
301, 643
3, 288
« 82, 947 8 11,064, 678
8 13, 282 9 1, 530, 693
24, 653
2,090, 629
1,466
89, 354
39, 440 8 5,142, 055
2,141, 653
22, 493
« 33, 027
2,128, 269
14, 411
1, 658. 601
1,492
133, 787
8 237, 989
19, 492, 237
« 50, 271 6 4, 586, 253
27, 066 « 2, 524. 426
6 17, 725 « 1,160, 482
8 29, 477 8 3, 525, 749
8 18, 779 « 2, 282,026
« 446,176
« 5, 187
1, 377, 002
« 13,075
8 167, 097 6 24, 703, 705
« 30, 822 8 5,196, 304
48, 821
5, 574, 665
8 258, 293
3, 588
4, 291
340, 215
« 166, 620
« 2, 075
25, 104
3, 226,080
140
9,3 6 0
8 2, 519
« 410, 615
46, 759
4 ,1 7 8 ,9 7 3
922
75, 465
« 116, 505 13 19, 782, 572
18,494
2, 064, 786
2,915
250,118
8 72, 968
8, 457, 497
8, 175
539, 445
8 12,187
1,102, 270
8, 597,177
79,083
7 ,0 9 ?
1, 337, 093
252, 794
3, 612
2, 627
262, 580
8 40, 577 8 3, 354, 992
e 64, 454 8 6, 448, 787
8 6, 564
« 696, 924
159
8, 034
« 20, 460 « 1, 717, 265
e 18, 544 « 1, 748, 588
6 12, 884
« 929,332
>8 63, 000
8, 036,955
892
84, 841

841,970
107, 027
143, 466
8, 640, 563
1, 041, 749
1 ,072,140
39, 859
2, 726, 890
1, 097,108
1, 856, 188
885,112
71,692
11,987, 702
2, 376, 859
1, 857, 862
.
748, 161
1, 481, 551
1,048,154
364, 707
790, 993
13, 573, 074
3 ,915,911
4, 721,252
163, 486
151,862
67, 721
1, 626, 774
4, 351
400, 682
2, 234, 659
35, 330
11,917, 459
992. 702
107, 025
4, 664, 689
575,054
759, 994
5,178, 521
2, 325, 921
119,030
111,039
1,747, 588
3, 773, 256
418,127
3, 095
1,1 8 1 ,6 4 2
1, 384, 356
495, 209
5,988, 762
42,816

42,417
3, 116
7 1,021
7 77, 876
7 2, 288
36, 352
1,190
105,868
51, 508
7 14, 233
24, 570
2, 290
587, 792
100, 272
76, 515
31,611
7 228
7 27, 028
7 2, 729
33, 127
545, 510
7 14,970
175, 980
7 2,818
6, 056
1,585
28, 255
141
4, 615
88, 221
1,207
487,710
7 3,914
3,610
7 36, 670
15, 236
30, 586
197, 940
51, 124
3, 796
4, ?88
45, 478
130, 355
7 2, 481
150
25, 738
59, 826
7 3,913
256, 297
1,417

1 Unless otherwise noted, data in each State include both State and Federal associations.
2 Figures as of December 31, unless otherwise specified.
3 Includes 2 associations not yet in operation at end of year, and 54 associations in voluntary liquidation.
4 3,237 associations reporting.
5 Includes 1 association in Wisconsin, chartered but not in operation, and 12 associations in other States
not yet in operation at end of year; also 201 associations, liquidated or in process of liquidation.
6 Partly estimated.
7 N o data on this point for State associations.
3 Federal associations only; no State-chartered associations in this State.
9 State data are for year ending June 30, 1938.
10 State data are for year ending September 30, 1938.
11 N o data for State-chartered associations.
12 State data are for year ending October 31, 1938.
13 476 associations reporting.
14 State associations only. No Federal credit unions in operation at end of year, though 1 had received a
charter.
n Estimated.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

373

Cooperation

It will be noted that in some cases certain figures (notably for num­
ber and amount of loans made in 1938) are partly estimated. This
was necessitated by the fact that in a number of States credit unions
are not required to report on these points, and estimates were therefore
made on the basis of the Bureau’s survey in 1936 in which data were
obtained directly from the credit unions themselves.
Reserves (in some States termed “guaranty fund”) to cover possible
losses from bad debts are required by law to be accumulated from the
credit unions’ earnings. These reserves, in the credit unions covered
in table 1, amounted to $5,996,256 at the end of 1938.
No data are available as to the total amounts charged off as losses
by the State-chartered credit unions. For the Federal associations,
which are of considerably smaller average age than the State associa­
tions as the Federal act was passed only in 1934, it is reported that the
total amount thus charged off, up to December 31, 1938, represented
only 0.055 of 1 percent of the total loans made since organization.
The State report from Nebraska notes two distinct types of credit
unions operating in that State. One type corresponds to the kind of
credit unions found in other States. The second type is the rural credit
union in which membership is open to anyone in the entire com­
munity; these use assignments of deposits as a medium of exchange.
The reporting official notes that these “are sometimes referred to as
‘bankless town’ associations, as they have been organized as a substi­
tute for a commercial bank” in those localities. Of the 161 Statechartered associations reported in that State, 92 are of this type. They
are, however, somewhat smaller, having an average membership per
association of 105, as compared with 180 for associations of the ordi­
nary type.
Table 3 gives estimates indicating the expansion of the creditunion movement in the United States during the past 3 years, as indi­
cated by number of associations, membership, and amount loaned.
T a b l e 3 . —Estimated Relative Growth of State and Federal Credit Unions, 1936 to 1938

Ite m a n d y e a r

N u m b e r of c r e d i t u n io n s :
1936
________________________
1937
______________ _____ ________
1938
__________________
M e m b e rsh ip :
1936
- - ________________________________
1937
______________________________________
1938
- ____________________________
A m o u n t of lo a n s :
1936
_ _____________________________________
1937
- _____________________________________
1938
___________________________________


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

T o ta l

S t a t e a sso c i­
a tio n s

F e d e r a l a ss o c i­
a tio n s

5,437
6,400
7,265

3, 575
3,900
4,250

1,862
2,500
3,015

1, 209,902
1, 546,400
1,931,400

893,932
1,013,900
1, 241,000

315,970
532,500
690,400

$112,134, 577
$139, 355, 200
$186, 302,800

$96,476, 517
$102, 770, 200
$134, 513,800

$15, 658,060
$36, 585,000
$51, 789,000

Labor Laws and Court Decisions

W ORK R E L IE F ACT OF 1939
THE President on June 30, 1939, approved a joint resolution (Pub.
Res. 24) appropriating a total of $1,755,600,000 to finance various
phases of the relief program. Of this amount, $1,477,000,000 was
made available for the Work Projects Administration, while $100000,000 was appropriated for the National Youth Administration.
In addition, $143,000,000 was appropriated for the relief program of
the Farm Security Administration in rural areas, and $20,400,000 was
granted to certain administrative agencies to finance the work in con­
nection with the administration of relief. The balance of the total has
been allocated as follows: Puerto Rico Reconstruction Administra­
tion, $7,000,000; Indian Service, $1,350,000; United States Employees’
Compensation Commission, $5,250,000; Executive Office of the Presi­
dent, $850,000; and National Resources Planning Board, $750,000.
The sum of $60,000,000 was authorized to be allocated to other
Federal agencies for the operation of relief projects. No project of
this type may be prosecuted under any allocation upon which the
percentage of nonrelief persons employed exceeds 10 percent of the
total number of employees.
The resolution provides for work relief to be administered by the
Work Projects Administration under the supervision of a Commis­
sioner of Work Projects. The President is authorized to detail a
commissioned officer on the active list of the United States Army to
perform the functions of the office of Commissioner of Work Projects,
and hereafter, appointment of any administrative or other officer in
Washington receiving a salary of $5,000 or more, or any State relief
administrator receiving a similar salary, must be confirmed by the
Senate. The salary of any such officer cannot be raised within a period
of 6 months after he takes office.
After January 1, 1940, the States or their subdivisions must con­
tribute at least 25 percent of the cost of non-Federal projects, and
the Work Projects Administration may not participate in a nonFederal building project to the extent of more than $52,000. Admin­
istrative costs may not exceed $50,000,000, and the Commissioner is
required to transmit to Congress on the first day of each session, a
statement showing for each State the names, addresses, positions, and
374

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

375

compensation of all employees whose compensation is $1,200 or more
a year. Administrative and supervisory employees are requiied also
to take an oath to support and defend the Constitution of the United
States, and no part of the appropriation may be used after September
30, 1939, to pay compensation to any person advocating the overthrow
of the United States Government through force or violence. Aliens
may not be employed on any project. In the case of injuries received
by an employee while engaged on any project, workmen s compensa­
tion must be paid.
Pay schedule—The Commissioner of Work Projects is required to
fix a monthly earning schedule which shall not substantially affect the
current national average labor cost per person, and after August 31,
1939, this schedule must not vary for workers of the same type in
different geographical areas to any greater extent than may be justi­
fied by differences in the cost of living. All relief employees must
work at least 130 hours a month, except that the Commissioner may
require a less number of hours per month in the case of workers with
no dependents, and in such case their earnings must be correspondingly
reduced.
Employment requirements.—After August 31, 1939, all peisons,
except veterans, who have been employed on WPA projects con­
tinuously for 18 months are to be dropped automatically but will be
eligible for reemployment at the expiration of 30 days upon certifica­
tion of eligibility for employment. In employing or retaining workers,
the WPA must determine preference, as far as practicable, on the basis
of relative needs, and where such needs are found to be the same,
preference must be first given to veterans and then to “other American
citizens, Indians, and other persons owing allegiance to the United
States who are in need.” The measure also provides that no relief
worker may be employed until after his need for employment has been
certified by a local public certifying agency, or in certain cases, by the
Work Projects Administration, and relief workers whose need has
not been certified must be removed from the rolls.
It is also provided that a person in need of relief who refuses an
offer of private employment which provides reasonable working con­
ditions and pays the prevailing wage forfeits his right to work relief
during the period that such private employment would be available.
However, any person accepting such private employment will, at the
expiration of such employment, be entitled to relief work if still m
need and if he has lost the private employment through no fault of
his own, and provided he has first drawn all the benefits of unemploy­
ment compensation due him. A relief worker is ineligible for employ­
ment on a project if he has refused to accept employment on any
other Federal or non-Federal project at a wage rate comparable with
or higher than that of the Work Projects Administration. Any relief

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

376

Monthly Labor Review—August 1939

worker engaged on any Federal or non-Federal project whose service
has been terminated through no fault of his own is eligible for restora­
tion to the relief rolls or for reemployment on any other project.
The Commissioner is required to cause a periodic investigation and
to eliminate from the rolls those not in actual need. Such an investiga­
tion must be made so that each case will be investigated at least once
every 6 months.
Federal Theater Project.—The Federal Theater Project was abolished
effective June 30, 1939, except that administrative employees may
be carried on the pay roll during July and certified relief workers may
be retained up to October 1, 1939. The other art projects may be
continued but not sponsored solely by the Work Projects Adminis­
tration.
Restrictions on use of funds.—The measure contains provisions
prohibiting political coercion in relief, and any person employed in an
administrative or supervisory capacity and paid from the relief funds
is forbidden to use his authority or influence for the purpose of inter­
fering with an election or affecting its results. The resolution also
prohibits the use of the funds for the payment of the compensation of
any Civil Service employee. The funds may not be used by any
Federal, State, or other agency to purchase, establish, or expand mills,
factories, or plants which would manufacture or produce for sale,
articles, commodities or products in competition with existing indus­
tries. This does not apply, however, to municipal electric plants in
communities not receiving adequate service at reasonable rates. It is
also provided that none of the funds may be used for the manufacture,
purchase, or construction of any naval vessels or military suppliesSTATUS OF FE D ER A L CHILD-LABOR A M E N D M E N T
FIFTEEN years ago (June 2, 1924) Congress approved a resolution 1
proposing a child-labor amendment to the United States Constitution.
This was done after unsuccessful attempts had been made to pass a
Federal child-labor law which the courts would uphold. The first
such attempt was made in 1916,2 and the law was attacked in the case
of Hammer v. Dagenhart (247 U. S. 251). The court held that the
act was an undue extension of the interstate commerce clause of the
Constitution and therefore declared it illegal. A second attempt,
resorting to the use of the taxing powers, also proved futile,3 when the
United States Supreme Court, in the case of Bailey v. Drexel Furniture
Co. (259 U. S. 20), declared that although the law was a tax law in
1 H. J. Res. No. 184, 68th Congress: 43 Stat. 670,
2 39 Stat. 675.
* 40 Stat. 1138.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

377

form, it was nevertheless regulatory in purpose and therefore could
not be made the means of legislating on child labor.
It was then decided to approach the regulation of child labor through
the medium of an amendment to the Constitution. Accordingly, the
following sections were drafted and submitted to the States, in 1924,
for ratification:
S e c t i o n 1. The Congress shall have power to limit, regulate, and prohibit the
labor of persons un'der 18 years of age.
S e c . 2. The power of the several States is unimpaired by this article except
that the operation of State laws shall be suspended to the extent necessary to give
effect to legislation enacted by the Congress.

Only one State (Arkansas) ratified the amendment during the first
year (1924) following its submission to the States. In 1925, 3 States—
Arizona, California, and Wisconsin—took favorable action, and in
1927 Montana did likewise. Hence, in the 3 years following the
passage of the amendment by Congress only 5 States had ratified it.
Thereafter, with the exception of Colorado in 1931, no State adopted
the proposed amendment until 1933. In that year 14 States (Illinois,
Iowa, Maine, Michigan, Minnesota, New Hampshire, New Jersey,
North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Washington,
and West Virginia) were added to the list of ratifiers. In 1935, 4
States (Idaho, Indiana, Utah, and Wyoming) and in 1937 another
4 States (Kansas, Kentucky, Nevada, and New Mexico) accepted the
amendment. Since 1937 no further ratifications have taken place.
As of July 1, 1939, the number of ratifying States remained 28.
Under the Constitution a proposed amendment must be ratified by
legislatures of three-fourths of the States before it becomes valid.
It will therefore be necessary for 8 more States to act favorably
before the amendment becomes law.
During the period since the first submission of the amendment, in
1924, some of the States have rejected it, and a few States have taken
no action one way or the other. Some States have even reversed
their previous stand in the matter. Such was the case in Kansas,
where the legislature rejected the amendment in 1925 and approved
it in 1937.
On June 5, 1939,4 the Supreme Court of the United States ruled
that Congress alone has the power to determine how long a proposal
to amend the Constitution is subject to ratification. Since no time
limit for ratification was placed on the amendment by Congress, it is
therefore possible under this ruling for additional States to act favor­
ably or even to reverse their previous unfavorable action. Many of
the State legislatures meeting in 1939 have adjourned and the majority
of them will not meet again until 1941. Unless the Governors of
States that have not ratified the amendment call the respective legis4 C o l e m a n v.

M ille r ,

59 Sup. Ct. 972. See M onthly Labor Review, July 1939 (p. 142).

163839— 39---------- 8


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—-August 1939

378

latures into extraordinary session for that purpose, there is little
likelihood that any action will be taken on the child-labor amendment
during the next 2 years.

G O V ER N M EN T REORGANIZATION ACT
BY THE provisions of Public Act No. 19, approved.on April 3, 1939,
the Congress of the United States authorized a reorganization of the
agencies of the Government. The President was empowered to
investigate and to determine what changes were necessary in order to
accomplish the purposes of the act, namely reduction of expenditures,
and to increase the efficiency of the operation of the Government.
The Congress, however, specifically provided that no consolidation
or abolition should take place with the following agencies: Civil
Service Commission, Coast Guard, Engineer Corps of the United
States Army, Mississippi River Commission, Federal Communica­
tions Commission, Federal Power Commission, Federal Trade Com­
mission, General Accounting Office, Interstate Commerce Commis­
sion, National Labor Relations Board, Securities and Exchange
Commission, Board of Tax Appeals, United States Employees’ Com­
pensation Commission, United States Maritime Commission, United
States Tariff Commission, Veterans’ Administration, National Media­
tion Board, National Railroad Adjustment Board, Railroad Retire­
ment Board, the Federal Deposit Insurance Corporation, or the Board
of Governors of the Federal Reserve System.
On June 7, 1939, the President approved Resolution No. 20, pro­
viding that the reorganization plans identified as No. I, submitted to
the Congress on April 25, 1939, and No. II, submitted on May 9,
1939, should take effect on July 1, 1939.
Reorganization Plan No. I

Reorganization Plan No. I provided for the setting up of four gen­
eral administrative agencies. Part 1 of this plan concerned the Execu­
tive Office of the President. Under this section the following agencies
have been included: (a) The Bureau of the Budget. This agency was
transferred from the Treasury Department. (6) The Central Statis­
tical Board. This agency was transferred to the Bureau of the Budget
in the Executive Office of the President, (c) The Central Statistical
Committee was abolished and its functions transferred to the head of
the Bureau of the Budget. (d) The National Resources Planning
Board, formed by consolidating the functions of the Federal Employ­
ment Stabilization Office in the Department of Commerce and the
National Resources Committee, was also transferred to the Execu­
tive Office of the President. The duties of these two agencies will

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

379

hereafter be administered by the National Resources Planning Board.
The board shall be composed of five members appointed by the
President. The members will receive compensation at the rate of $50
per day during the time they are actually engaged in the work of
the board.
Federal Security Agency.—Part 2 officially established the Federal
Security Agency. The following governmental agencies have been
transferred to the new agency: United States Employment Service
in the Department of Labor; the Office of Education in the Depart­
ment of the Interior; the Public Health Service in the Department of
the Treasury; the National Youth Administration within the Works
Progress Administration. These agencies and their functions,
together with the Social Security Board and the Civilian Conserva­
tion Corps, have been consolidated under the new agency known
as the Federal Security Agency. The United States Employment
Service, heretofore under the direction of the Secretary of Labor,
will henceforth be consolidated with the unemployment-compensation
functions of the Social Security Board set up as a part of the Federal
Security Agency. This function shall be administered by the Social
Security Board in connection with such unemployment-compensation
functions under the direction and supervision of the Federal Security
Administrator.
Federal Works Agency.—Part 3, created the Federal Works Agency,
in which a number of agencies of the Government dealing with
construction of public works, etc., are included. These are the
Bureau of Public Roads in the Department of Agriculture; the Public
Buildings Branch of the Procurement Division of the Treasury
Department; the Branch of Buildings Management of the National
Park Service in the Department of the Interior; the functions of the
National Park Service in the District of Columbia; the United States
Housing Authority in the Department of the Interior; and the Federal
Emergency Administration of Public Works and all of the Works
Progress Administration. By virtue of an Executive order of July
6, 1939, the President placed the Federal Fire Council under the
direction and supervision of the Federal Works Administrator.
Lending Agencies.—Part 4 of Reorganization Plan No. I covered
the general subject of “lending agencies.” Under this special heading
there have been transferred to the Department of Agriculture the
following agencies heretofore considered as independent: The Farm
Credit Administration; the Federal Farm Mortgage Corporation; and
the Commodity Credit Corporation. Included also under this gen­
eral heading is the establishment of the Federal Loan Agency with an
administrator appointed by the President, by and with the advice
and consent of the Senate. The administrator shall supervise the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

380

Monthly Labor Review—August 1939

administration of and hereafter shall be responsible for the coordina­
tion of the functions and activities of the following agencies heretofore
considered as independent: Reconstruction Finance Corporation,
Electric Home and Farm Authority, RFC Mortgage Company,
Disaster Loan Corporation, Federal National Mortgage Association,
Federal Home Loan Bank Board, Home Owners’ Loan Corporation,
Federal Savings and Loan Insurance Corporation, Federal Housing
Administration, and Export-Import Bank of Washington.
Reorganization Plan No. I I

Reorganization Plan No. II, which dealt with reorganization within
a number of the executive departments, became operative on July 1,
1939, and transferred to the State Department the following: The
Foreign Commerce Service in the Department of Commerce; the
Foreign Agricultural Service in the Department of Agriculture.
These two agencies shall hereafter be a part of the Foreign Service of
the United States under the direction and supervision of the Secretary
of State. Transferred to the Department of State also was the
Foreign Service Buildings Commission.
Those transfers and consolidations relating to the Department of the
Treasury included the transfer of the functions of the Bureau of
Lighthouses in the Department of Commerce. The functions of this
agency will hereafter be administered as a part of the Coast Guard
in the Department of the Treasury. The office of the Director
General of Railroads created during the war period, 1917-18, has
been abolished and the duties have been transferred to the Secretary
of the Treasury. Another agency established during the World War
and abolished under the terms of Reorganization Plan No. II was the
War Finance Corporation. The Secretary of the Treasury is directed
to complete the winding up of the affairs of this agency and is au­
thorized to dispose of the assets of the corporation by December 31,
1939.
The functions of the Department of Justice have also been enlarged
by the consolidation of a number of agencies. These include the
Federal Prison Industries, Inc., and the National Training School for
Boys. The former agency shall be hereafter administered under the
general direction and supervision of the Attorney General, while the
latter function shall be administered by the Director of the Bureau of
Prisons in the Department of Justice.
In the Department of the Interior a number of functions considered
applicable to the work of this executive office include the following:
The functions of the National Bituminous Coal Commission. In
regard to this agency, it is specifically provided that it shall be
abolished and the affairs of the Commission shall be wound up by the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

381

Secretary of the Interior. The office of the Consumers’ Counsel for
the National Bituminous Coal Commission is also abolished, and
these functions have been transferred and hereafter will be adminis­
tered by the office of the Solicitor of the Department of the Interior.
Other agencies transferred to the Department of the Interior include
the Bureau of Insular Affairs of the War Department; the Bureau of
Fisheries in the Department of Commerce; and the Bureau of Bio­
logical Survey of the Department of Agriculture. The Secretary of
the Interior shall hereafter be chairman of the Migratory Bird Con­
servation Commission, with the Secretary of Agriculture as a member
of the Commission. Finally, the National Park Service in the
Department of the Interior will hereafter be the home of the Mount
Rushmore National Memorial Commission.
Into the Department of Agriculture has been transferred the Rural
Electrification Administration. Into the Department of Commerce,
the functions and obligations of the Inland Waterways Corporation
have been transferred. A number of independent agencies have been
affected under the provisions of Reorganization Plan No. II. To the
Federal Security Agency has been transferred the work of the Radio
Division and the United States Film Service of the National Emer­
gency Council. The functions of the Secretary of the Treasury con­
cerning appropriations for the American Printing House for the
Blind were transferred to the Federal Security Agency. Affecting
the National Archives, the new reorganization plan provided that the
functions of the Codification Board shall be transferred to the National
Archives and shall be consolidated in that agency with the functions
of the Division of the Federal Register.
A number of transfers and abolitions of agencies affecting the
Executive Office of the President were also specifically provided under
the reorganization of Government departments. All functions of the
National Emergency Council, with the exception of the Radio Service
and the Film Service, were transferred to the Executive Office. It
was also specifically provided that the National Emergency Council
should be abolished.
The Congress in enacting the Reorganization Act of 1939 made
several restrictions, etc., in the employment of personnel. It was
provided that whenever the employment of any person is terminated
by a reduction of personnel as a result of the reorganization, the person
affected shall hereafter be given preference, provided the employee
is qualified, but such preference shall not be effective for a period
longer than 12 months from the date the employment of such person
was terminated. The reorganization plan also provided that the trans­
fer of personnel should be without change in classification or compen­
sation, but provided further that this requirement should not operate
after the end of the fiscal year during which the transfer was made,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

382

Monthly Labor Review—August 1939

so as to prevent the adjustment of classification or compensation in
conformity with the duties to which the transferred employee may be
assigned. The President was authorized by the reorganization statute
to appoint six administrative assistants, who shall perform such duties
as the President may prescribe.
Administrative Officials

In order to carry out the administrative duties under the Reor­
ganization Act, the President, as of August 1, 1939, appointed a
number of administrative heads. To administer the Federal Security
Agency, the President appointed Paul V. McNutt, former Governor
of the State of Indiana and more recently United States High Com­
missioner of the Philippines. John M. Carmody, formerly Admin­
istrator of the Rural Electrification Administration, was appointed as
head of the newly created Federal Works Agency, and Jesse H. Jones,
formerly Chairman of the Reconstruction Finance Corporation, was
designated as head of the Federal Loan Agency.
The President also named three of the six administrative assistants
to aid in the administration of those duties and functions transferred
to the Executive Office of the President under Reorganization Plan
No. I. These include William H. McReynolds, who will handle mat­
ters relating to personnel and administrative procedure; Lauchlin
Currie, who will have charge of economic problems, and James H.
Rowe, Jr., legal questions.
********
COURT D ECISIO N S OF IN T E R E S T TO LABOR
Prohibition of Employment of M arried Women in Public
Service Held Void

THE Supreme Judicial Court of Massachusetts has advised the legis­
lature that restriction of the employment of married women in the
public service of that State, as contemplated under a number of bills,
would be unconstitutional if enacted into law.
The majority opinion, holding that the proposed legislation would
be arbitrary and hence unconstitutional, declared that “married
women are not, by reason either of being women or of being mar­
ried, excluded from citizenship” although they were without the politi­
cal rights of voting and of holding public office until recent con­
stitutional changes. In reaching its conclusion the court pointed out
that women whether married or unmarried are members of the State.
They are subject only to constitutional and valid statutory limita­
tions, and share with the other citizens “the duties and privileges of

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

383

citizenship,” and further, “like other citizens they are entitled to the
benefit of the constitutional guaranties against arbitrary discrimi­
nation.”
In a dissenting opinion, one judge agreed that a general exclusion
of married women from the public service by virtue of their married
status would be contrary to law, but he nevertheless believed that it
was within the province of the legislature to prohibit the employment
of women provided their husbands were gainfully employed or able
to furnish them with adequate support. He also believed that the
legislature could prescribe the terms and conditions under which the
State as an employer, hired persons for the rendition of services, pro­
vided, “the establishment and observance of such terms and condi­
tions are a reasonable method for the accomplishment of public good
in any of its various aspects.”
The dissenting judge remarked that as to the conflicting rights of
married women to retain their employment and of single women to
secure such employment, “the question is broader and more funda­
mental and must be viewed entirely with reference to the public
interest.” Continuing, the minority opinion said, “if the situation
of our people is such that large numbers can be benefited by the sub­
stitution of single women for such married women, then the hands of
the General Court are not tied by the individual or personal interests
of either group.” He further declared that the high court of the
State has already determined that marriage is a sufficient cause for
the dismissal of school teachers, and that such removal has been
declared neither “arbitrary nor capricious.”
Small Loans at Usurious Rates Held a Public Nuisance

The Minnesota Supreme Court in a recent decision declared that
the making of small loans at usurious rates of interest constituted a
public nuisance, within the meaning of a State statute. The attorney
general alleged that the loan agency involved was engaged in the
“loan shark business,” the principal object of which was to collect
usurious rates of interest (sometimes as high as 530 percent per
annum) from wage earners who were forced by necessitous circum­
stances to borrow small sums of money. The State, through the
attorney general, further contended that the legal remedies and
defenses of the borrowers were inadequate and ineffective since they
were unwilling and financially unable to defend their rights in court.
In sustaining the issuance of the injunction against the loan agency,
the Minnesota court pointed out that equity was the only remedy
available to protect persons against usurious transactions, as usury
is not a crime in Minnesota and the State may not put a stop to the
practice by criminal prosecution. However, the practice is forbidden

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

384

Monthly Labor Review—August 1939

in the interest of the public welfare under a policy “to protect the
helpless and the poor” from “money lenders who exact usury.”
The court declared that where there is no adequate remedy either by
criminal law or by the ordinary civil suit, equity may properly come
to the rescue by appropriate injunctive relief. (State v. O’Neil, 286
N. W. 316.)
Closed-Shop Contract with Employer Having a Local Monopoly

A closed-shop contract with an employer having a monopoly of the
local transportation business has been held void, as against public
policy, by the Ohio Court of Appeals. The contract between the
Transport Workers Union of America and the Akron Transportation
Co. provided that the company would not employ a worker who was
not a member or eligible to become a member of that union. The
contract required also that all employees who were not members
must join within 30 days after the date of the agreement.
The court, in its decision, ruled that the bus and street-car oper­
ators who were discharged and hence deprived of means of earning a
livelihood in the community in which they lived, were entitled to a
court order restraining enforcement of the closed-shop provision of
the contract. They could also test the validity of the closed-shop
provision even though not parties to the contract, the court said.
It was also held that the case was not a moot one, on the theory that
the bus and street-car operators were discharged under a contract
which had expired, in view of the execution of a new contract contain­
ing similar provisions.
The court further ruled that the closed-shop provision was not
valid on the theory, advanced by the union, that the company was
engaged in interstate commerce and therefore amenable to the Na­
tional Labor Relations Act. It was pointed out that the transporta­
tion facilities of the company were furnished solely within Ohio, and
that the servicing of busses of the Penn-Ohio Coach Lines Co., an
interstate carrier of passengers, in the company’s garages, was a mere
incident to the conduct of its business. It was also observed that in
the event of a strike by employees of the Akron Transportation Co.
it would not interfere with the operation of the interstate busses of the
Penn-Ohio Coach Lines Co., as there were other garages in Akron in
which the busses could be serviced. (Scaggs v. Transport Workers
Union of America.)
Picketing Lnvolving Misrepresentation

The supreme Court of Indiana recently held- that picketing which
involves false statements or misrepresentations of facts concerning a

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

385

controversy is unlawful. In this case, a union, in its effort to obtain
a closed-shop contract with a dairy company, picketed a grocery and
food store that handled the products of the dairy company. The
pickets carried banners urging the public to buy only union dairy
products and informing them that the store sold milk produced by an
unfair dairy.
The picketing was held to be unlawful by the court because the
banners carried misleading statements and had the effect of mis­
representing the facts, since all dairies in the community employed
both union and nonunion employees. The court therefore ruled that
the store owner was entitled to a temporary injunction restraining
the union from picketing the store, under the rule that “picketing
which involves false statements or misrepresentation of facts concern­
ing the controversy is unlawful and will be enjoined.” It was also
decided by the court that, since milk and dairy products were neces­
sary to the public health, public policy would not permit picketing
“for the purpose of coercing or inducing the community to refrain
from using milk or dairy products.” (Wiest v. Dirks, 20 N. E. (2d)
969.)
Right to Picket Where A ll Employees are Stockholders

Picketing by a labor union to compel a corporation to employ union
members instead of its stockholders was held lawful by the New Tork
Court of Appeals. The court ruled also that the controversy as to
whether the stockholders or the members of the union should be
employed to perform work of the corporation was a labor dispute
within the meaning of the New York Anti-Injunction Act. It was
pointed out that the status of the stockholders doing the work formerly
done by members of the union was that of employees, for the purpose
of determining the applicability of the anti-injunction act.
In discussing the case, the court declared that there was no labor
dispute where the owner of a business does all the work himself with­
out employees, since in such a case there can be no controversy con­
cerning terms or conditions of employment. The court was of the
opinion, however, that this rule was not applicable in this case, on the
theory that the corporate entity might be ignored. The court further
declared that it was not material to the case that the union might
reject the stockholders as members by reason of the fact that they
shared indirectly in the profits of the business and their interests
therefore may not coincide with those of other workers. (Boro Park
Sanitary Live Poultry Market, Inc. v. Heller, 21 N. E. (2d) 687.)


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

386

Monthly Labor Review—August 1939

Strike Not Necessarily Terminated When Normal Operations
Resumed

The Connecticut Supreme Court of Errors has held that a strike by
the employees of a theater did not necessarily terminate when the
operation of the theater became normal. The object of the strike was
to secure the reinstatement of a discharged projectionist and to obtain
union recognition. The lower court issued a permanent injunction
against the pickets on the ground that the strike had terminated and
that the continuance of picketing thereafter constituted an unlawful
interference with the company’s rights.
In holding that the injunction was improperly granted, the State
Supreme Court of Errors declared that the picketing was not unlawful
under a rule that the picketing becomes an unjustifiable harassment
of the employer when it ceases to serve its purpose. The court ob­
served that the strike did not terminate when all but 3 of the striking
employees secured jobs elsewhere, as the whole staff of employees,
aside from the manager and assistant manager, consisted of only 14
people. It was said in this connection that the situation presented
was not one in which all of the striking employees had secured other
positions and further that it could not be claimed that the strike had
ended, on the rather narrow ground that there were no employees
who might benefit by it. It was also pointed out that the mere fact
that the employer had been able to secure a full complement of
employees and to operate his plant normally would not justify a con­
clusion that the picketing had become unjustifiable, if the employer
still continued to lose patronage. (E . M. Loew’s Enterprises, Inc. v.
International Alliance of Theatrical Stage Employees, 6 Atl. (2d) 321.)
Compensation Award for Heart Attack

The Court of Errors and Appeals of New Jersey, by an 8 to 4 vote,
reversed a decision of a lower court and awarded compensation to a
milk-truck driver who suffered a heart attack while making deliveries
in Jersey City. The deceased employee had been engaged for a
number of years as a driver, and on the day of the heart attack he
was forced to travel steep grades in the snow in order to make deliveries
and to reclaim empty bottles. The court, in making its findings,
adopted the rule of law in a case previously decided by a New Jersey
Court. (Bernstein Furniture Co. v. Kelly, 180 Atl. 832.) In that
case the court held that it was enough to say that an accidental strain
of a heart, even though it was previously weakened, may be compen­
sable when the accident arose out of and in the course of the employ­
ment.
There was no doubt, the court said in the milk driver’s case, that the
employee had suffered an accidental strain of the heart while em
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Labor Laws and Court Decisions

387

ployed, and that the strain causing the injury resulted from the
employment, which was “unusually hard on the day in question.”
The court thought that the supreme court of the State had erroneously
considered the fact that over a long period the heart had been
weakened by strain of work, in denying recovery. In the opinion
of the higher court, it made no difference, as indicated by various
decisions including many English cases, as long as the accident arose
out of and in the course of the employment. (Hentz v. Janssen Dairy
Corp., 6 Atl. (2d) 409.)
Cancer Held Compensable Under New Jersey Law

Although the New Jersey Court of Errors and Appeals held that a
cancer which developed from a mole on the instep of an employee
could not be considered an occupational disease under the State work­
men’s compensation law, nevertheless such a condition could establish
an accidental injury within the meaning of the act. In so doing, the
court reversed a decision of the supreme court of that State.
The employee operated a machine used in manufacturing building
blocks out of ashes, sand, and cement. In the performance of the
work a certain amount of the ingredients got into the shoes of the
workmen. It appeared that the employee in this case had a mole on
his left foot which became irritated by the sand and later developed
into a malignant cancer. The referee in the first instance found that
the employee’s condition resulted from an occupational disease and
therefore was not compensable under the workmen’s compensation
law. The Court of Errors and Appeals of the State disagreed with
this conclusion. It was pointed out that under the New Jersey
law an injury or death to be compensable must arise by accident out
of and in the course of the employment. It was admitted that the
injury arose out of and in the course of the employment. But, the
court said, there was a debatable question as to whether there was an
accidental injury. In answer to this query, the court pointed out
that “it is not necessary that an accidental injury, in order to be com­
pensable, be the result of a traumatic force.” The court also showed
that “injury by accident” is the language of the statute “which must
be construed and broadly delineated.”
The judgment of the lower court, the majority opinion therefore
said, “proceeded on the erroneous view that the employee’s condition
took the classification of an ‘occupational disease’ rather than an
accidental injury related to the employment.” {Bollinger v. Wagaraw
Bldg. Supply Co., 6 Atl. (2d) 396.)


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

388

Monthly Labor Review—August 1939

CANADIAN ACT PE N A L IZ IN G D ISC R IM IN A T IO N
AGAINST TR A D E-U N IO N ISTS
AN AMENDMENT to the Canadian Criminal Code, which received
Royal assent on May 19, 1939, provides against refusal to hire, or
dismissal, solely because of membership in a lawful trade-union or
association. Employers or their agents who violate this provision
are subject to fine or imprisonment or both.
The text of the act (sec. 502-A of the Criminal Code) is given
below:1
S e c t i o n 502A. Any employer or his agent, whether a person, company or
corporation, who wrongfully and without lawful authority—•

(а) Refuses to employ or dismisses from his employment any person for the
sole reason that such person is a member of a lawful trade-union or of a lawful
association or combination of workmen or employees formed for the purpose of
advancing in a lawful manner their interests and organized for their protection
in the regulation of wages and conditions of work;
(б) Seeks by intimidation, threat of loss of position or employment, or by
causing actual loss of position or employment, or by threatening or im posing any
pecuniary penalty, to compel workmen or employees to abstain from belonging
to such a trade-union or to such an association or combination to which they hove
a lawful right to belong; or

(c) Conspires, combines, agrees, or arranges with any other employer or his
agent to do any of the things mentioned in the preceding paragraphs; is guilty
of an offence punishable on indictment or on summary conviction before two
justices, and liable on conviction, if an individual, to a fine not exceeding $100 or
to 3 months’ imprisonment, with or without hard labor, and, if a company or
cornoration, to a fine not exceeding $1,000.
i Canadian Labor Gazette, Ottawa, June 1939, p. 548, and Copy of House of Commons of Canada, Bill.
90: An Act to amend the Criminal Code, as passed by the House of Commons and Senate. First session,
Eighteenth Parliament, S. George VI, 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Industrial Disputes

T R E N D OF ST R IK ES
PRELIMINARY estimates show substantially the same number of
strikes in June 1939 as in May and April, but fewer workers involved
and fewer man-days idle by far than in the 2 preceding months.
The number of workers involved in strikes beginning in June was
around 60 percent of the corresponding figure for May and the number
of man-days idle was only a little more than one-fourth as great as in
May. The general stoppage in the bituminous-coal industry, which
accounted for the high figures for April and May, was terminated prior
to and did not affect figures for June.
Trend of Strikes 1933 to June 1939 1
Workers involved in
strikes

Number of strikes

Year and month

Con­
tinued
from
preced­
ing
month

1933_________________
1934_________________
1935_________________
1936_____ __________
1937_________________
1938_________________

Man-days
idle
during
Begin­ In prog­
month
or
Beginning
In
effect
In
progress
ning in
Ended
ress
during
year
end in month
month
during in month ofatmonth
or
year
month
or year month

1,168, 272
1,466,695
1,117,213
' 788) 648
1, 860, 621
' 688,376

1, 695
1,856
2,014
2,172
4, 740
2 ,772

16,872,128
19) 591,949
15,456, 337
13) 901) 956
28) 424,857
9,' 148) 273

1938

January_____________
February____ ______
March. ________
April. ___ . ..
M ay___ ________ . .
June. _____________
July________________
A ugust______________
September. ______ .
October___ _ _
November_________ _
December. _ . . . ___

120
129
147
175
195
205
179
172
162
150
165
133

168
198
274
281
300
219
208
262
222
256
207
177

288
327
421
456
495
424
387
434
384
406
372
310

159
180
246
261
290
245
215
272
234
241
239
190

129
147
175
195
205
179
172
162
150
165
133
120

35, 329
53,175
56, 759
78, 666
83,029
52, 801
50,193
48, 378
96, 399
52, 703
43,128
37, 816

55, 850
77, 486
105, 962
110,950
124, 682
95,854
85,672
81,052
133,357
113,074
75, 445
62,160

473,289
514,111
767,856
838,158
1,174,052
871,002
776, 237
830,987
989, 916
842,202
557,903
512, 560

120
124
115
127
134
140

171
175
184
204
220
220

291
299
299
331
354
360

167
184
172
197
214
220

124
115
127
134
140
140

48, 929
64, 601
41,208
380,087
85, 000
50,000

70,197
83,387
60, 698
407, 269
425,000
113, 000

511,925
534, 516
584, 875
4, 853,189
3,400,000
915,000

1939

January_____________
February____________
March. ___________
April_______________
M ay i.
.
....
June 1________
_ ...

i Strikes involving fewer than 6 workers or lasting less than 1 day are not included in this table nor in
the following tables. Notices or leads regarding strikes are obtained by the Bureau from more than 650
daily papers, labor papers, and trade journals, as well as from all Government labor boards. Letters are
written to representatives of parties in the disputes asking for detailed and authentic information. Since
answers to some of these letters have not yet been received, the figures given for the late months are not
final. This is particularly true with regard to figures for the last 2 months, and these should be considered
as preliminary estimates.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

389

390

Monthly Labor Review—August 1939

I lie amount of strike activity in June 1939 was about the same as in
June a year ago with substantially the same number of strikes, workers
involved, and man-days idle.
The preliminary estimates given for May and June in the accom­
panying table are based on newspaper reports and other information
available as this goes to press. An analysis of strikes in each of these
months, based on detailed and verified information, will appear in
subsequent issues of the Monthly Labor Review.
w w # /»

ST R IK E S IN A PR IL 1939 ‘
THERE were more strikes in April 1939 than in any preceding month
of the year. The Bureau has obtained detailed information on 204
strikes which began in April, involving more than 380,000 workers.
These strikes, together with 127 which continued into April from pre­
ceding months, constitute the basic material for the following classifi­
cations and analysis. There were more than 400,000 workers involved
in the 331 strikes which were in progress during April, resulting in
more than 4,850,000 man-days of idleness during the month.
The major dispute during the month was in the bituminous-coal
industry where work in the 8-State Appalachian area was suspended
during the entire month. This dispute has been termed variously a
strike, a lock-out, a stoppage, or a suspension. It is included in this
report and referred to as one of the 204 strikes beginning in April, as
the Bureau uses the term “strike,” for statistical purposes, in a broad
sense to include all stoppages of work due to labor disputes.
There were more new strikes (31) in the building and construction
industry during April than in any other industry group. In the
textile industries there were 28, in transportation and communication
25, and in trade 21. The disputes in these four groups accounted
for more than half of the total strikes beginning in April. There were
17 each in the lumber industries and in the domestic and personal
service industries.
Nearly 85 percent of the total workers involved in strikes and 87
percent of the total man-days idle because of strikes in April were in
the bituminous-coal industry. Aside from this the industry groups
most affected, as measured by the number of workers involved,
were (1) the transportation industries (mostly water transportation)
with nearly 11,000 workers involved in new strikes and 97,000
man-days idle during April, and (2) building and construction
with 7,500 workers involved and 69,000 man-days idle. Among
the largest strikes in the water-transportation group was the East
and Gulf coast strike of seamen employed on tankers operated
1 Information on a few strikes has not yet been received. (See footnote to preceding table.)
missing strikes w ill be included in the annual report.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Data for

391

Industrial Disputes

by some of the large oil companies. This strike continued on through
May and was finally called off, with no settlement reached, about
June 13.
T able

!.— Strikes in A pril 1939, by Industry

In progress
during April

Beginning in
April

Industry

Mandays idle
during
Num- Workers N um ­ Workers April
ber involved ber involved
331

407,269

4,853,189

14

6
1
1
1
1
1
1

964
694
71
14
28
148
9

12,691
11,104
355
56
700
296
180

7
1
2
4

1,658
29
377
1,252

9
1
4
4

1,898
29
617
1,252

18,221
261
7,410
10,550

4

6,895

3

6,820'

1

66

6
1
3
2

8,365
765
6,829
771

26,050
15,300
6,829
3,921

2

78
18
60

1,200

All industries.
Iron and steel and their products, not including machinery.. .
Blast furnaces, steel works, and rolling mills.......................
Hardware---------------------------------------------------------------Plumbers’ supplies and fixtures-------------------- - ................
Structural and ornamental metal work.................................
T in cans and other tinware............. —...........- .......................
Wire and wire products...........................................................

1

14

1

Machinery, not including transportation equipment.
Electrical machinery, apparatus, and supplies..
Foundry and machine-shop products.............
Other________________ ____ ________________
Transportation equipment-----------Aircraft.------------------- -------Automobiles, bodies and parts.
Shipbuilding................................
Nonferrous metals and their products.
Jewelry.................................. ..........
Lighting equipment.......... ............
Lumber and allied products____
Furniture________________
Millwork and plan in g..........
Sawmills and logging camps.
O th er .................................—
Stone, clay, and glass products.......... ...............
Brick, tile, and terra cotta--------------------Marble, granite, slate, and other products.
Other_____________ ____ - ............ - ..........

1
1

1,560
360

5

3,244
388
979
1,115
762

26
5
5
9
7

5,129
608
1,887
1,706
928

58 996
8,550
28,080
10,414
11,952

7
5

604
415

12

1
1

7,609
6,018
449

161
28

1,208
570
449
161
28

17
4
2

6

9

1
I
1

1,002

140

28

3,195

55

7,726

71,208

3
1
1

1,199
24
48

4
2
2
3

1,699
109
254
1,229

17,205
300
5,966
12,160

3
12
1
2
1
3
1

225
1,139
189
35
225
88
23

5
28

339
2,747
189
35
361

3,009
17,273
378
426
1,355
901
12,237

Leather and its manufactures.
Boots and shoes________
Leather________________
Other leather goods-------

4
3

2,317
2,305

6
3
2

Î

12

1

12

Food and kindred products-----------Baking.............................................
Beverages.................. .....................
Canning and preserving...........
C onfectionery ....................... . . . Slaughtering and meat packing.

7
3
2
2

1,835
171
404
1,260

15
5
3
5

33,948
2,109
7,194
19,985

1

2,863
294
416
1,553
50
550

Tobacco manufactures.
Cigarettes............

1
1

4,072
4,072

1
1

4,072
4,072

28,504
28,504

Paper and printing.....................................
Boxes, paper.................... - ................■
—
Paper and pulp------------------- ------Printing and publishing:
Newspapers and periodicals----O ther... ............... ...........................

6

198

11

651
115
237

8,992
2,300
3,792

1
5 I

60
138

3

144
155

1,440
1,460

Textiles and their products____ ____
Fabrics:
Cotton goods---------------------Dyeing and finishing textiles.
Silk and rayon goods..............
Other...........................................
Wearing apparel:
Clothing, men’s ......................
Clothing, women’s..................
M en’s furnishings----- --------Hats, caps, and millinery---H osiery........ ..........- ............ .
Knitgoods.................................
Other........... ...............................


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1
2

2
3
3

1

1
1
6 I

88

676
2,523
2,305
206

40,073
36,500
3,525
48

1,000

3,660

392

Monthly Labor Review—August 1939
T able

1.— Strikes in A pril 1939, by Industry — Continued
Beginning in
April

In progress
during April

Mandays idle
during
N um ­ Workers N um ­ Workers April
ber involve d ber involved

Industry

6
1
2
2
1

1,183
18
34
946
185

11,776
450
582
7,044
3,700

Rubber products________________________________________
Rubber tires and inner tubes-------------------------------------Other rubber g o o d s--------- ------------------ -------------------

2
1
1

103
75
28

3
1
2

203
75
128

2,827
75
2,752

Miscellaneous manufacturing____________________________
Broom and brush---- - --------------- . --------- ---

9
1

934
33

1,752
194
270
1,288

13,188
458
810
11,920

Other__________________________ ____________________
Extraction of minerals.

..

..

..

Coal mining, bitum inous------- . . . ------ --

. . . . -------

Transportation and communication
Water transportation---- ---------- . . . . . .
....
Motortruck transportation_____ . . . . . .
------ ------ -Motorbus transportation_____ ___ . . . . . . .
-------Taxicabs and miscellaneous.
.. ..
----------- --------

W holesale... . . _
. . ________ . . -- --R etail____ ______ ____________ _________ ____ ____
Domestic and personal service
. ...
.. ..
Hotels, restaurants, and boarding houses-----------Laundries__ _ - - ..................... .......
- -------- --Dyeing, cleaning, and pressing. -------------------- . . .
Elevator and maintenance workers (when not attached
to specific in d u str y )_________________ ____________
Professional service . .
... _
Recreation and amusement. . . . . _ . . .
Professional. . . . . . . .
-.
- .. . . -.

-----....
---- -- -

8

901

16
2
1
13

5
4
1

323,098
3,098
320,000

5
4
1

323,098
3,098
320,000

4, 234,718
8,318
4,226,400

25
10
8
2
3

10, 845
7, 676
1,941
652
474

19, 137
7,803
• 9,967
652
607
f)
102

97,179
34,961
57,374
1,016
2, 250
150
1,428

1

102

32
12
10
3
5
1
1

21
4
17

4,226
'456
3,770

39
7
32

6, 233
'515
5,718

59 639
3,246
56,393

17
9
4
3

3,953
268
541
3,137

24
12
6
4

4, 373
379
784
3,187

39 029
3,362
7,164
28,407

1

7

1
1

7
16

14
82

3

610
320
290

5
4
1

1,144
854
290

6,710
3,810
2,900

7,555
6, 587

40
26

9, 861
8, 208

68,715
61,791
6,924

2
1

Building and construction___
_ __
...
Buildings, exclusive of P. W. A ....... .......................
All other construction (bridges, docks, etc., and P. W. A.
buildings)______ ________ . . . ------------ ---------

31

9

968

14

1,653

Agriculture___________________________________ ________

1

3,000

1

3,000

3,000

V. P. A., relief, and resettlement projects .

3

1, 574

3

1,574

6,193

5

157

8

234

2, 363

Other nonmanufacturing in d u stries_______

. . .
..

. . . ___

22

The bituminous-coal dispute, included at the end of table 2, was
the largest of the 14 interstate strikes beginning in April.
This dispute affected miners in all of the 23 States which produce
bituminous coal in substantial quantities. The figures shown in
table 2 for the various States, however, are for local strikes only, with
no adjustments to show the effects of interstate strikes on the individ­
ual States.
Of the local or intrastate strikes, New York with 46 had more than
any other State. There were 28 in Pennsylvania, 15 in Illinois, 14
in Massachusetts, and 11 in California. New York and Pennsylvania

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

393

Industrial Disputes

had the greatest number of workers involved in local strikes, but New
York and Massachusetts had the highest man-days of idleness. With
figures for the interstate coal dispute allocated to the various States
affected, the States with the most workers involved in strikes and the
most man-days idle in April were Pennsylvania, West Virginia, Ken­
tucky, and Alabama.
T a b l e 2 . — Strikes in A pril 1939, by States
B eglnningin Api;il
State
Number
All States_____________ ________________

California____ ___ _____ _______ _______ . .
Colorado____ __________________________
Florida_______________

_______________

Illinois_____________________ _____ _

..

Ohio. . _____________________ ____ ____

Workers
Involved

In progress during April
Number

Workers
involved

Man-days
idle during
April

204

380,087

331

407,269

4,853,189

1

75

1
11
2
3
3

18
4,351
174
345
342

15
4
4
2

1,756
1,106
1,024
603

1
14
7
1
1
4
4
46
9
1
6
28
1
2
1
2
1
3
4
8
14

250
3,703
8, 565
160
71
196
280
10,602
2,719
7
242
7,091
500
608
225
36
6
825
565
751
332,891

3
1
3
20
2
4
3
1
1
20
10
6
2
1
2
16
8
2
1
8
13
88
14
2
8
35
2
3
3
5
1
6
5
13
19

601
70
1,159
5,091
174
570
342
28
6
2,208
1,933
1,165
603
200
286
4, 268
9,270
181
71
1,294
1,137
14,446
4,004
807
693
7,935
706
744
758
220
6
1,045
583
1, 260
343,405

10,207
70
14,343
27,033
1,445
6, 743
4,080
560
150
17,888
23,818
10,840
1,987
5,000
2,148
49,141
17,008
863
284
20, 753
14, 244
130,193
34, 714
5,014
1,824
46,174
6,650
6,004
3,200
2,642
36
9,865
5,880
10, 860
4,361, 528

Except for the coal dispute there were no strikes beginning in April
which involved as many as 5,000 workers. About 56 percent of the
204 strikes involved fewer than 100 workers each, 37 percent involved
from 100 up to 1,000 workers each, and 7 percent involved 1,000 or
more workers each. The average number of workers involved in the
204 strikes beginning in April was 1,863. The average, with the coal
dispute eliminated, was 296.

163839— 39-

-9


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

394
T a b l e 3.

Monthly Labor Review—August 1939
Strikes Beginning in A pril 1939, Classified by Number of Workers Involved
N u mber o f strike;s in whi ch the mimber
of vorker involve d was—
Industry group

All industries___________ _____ _____

To­
tal

20
6 and and
un­
un­
der
der
20
100

204

41

1
7
4
17
7
28
4
7
1
6
2
9

1

73

100
and
un­
der
500

500 and 1,000
and
under under
1,000
5,000

60

16

4

1
1
2

13

10,000
and
over

1

M a n u fa c tu r in g

Iron and steel and their products, not including machinery. ________________________
Machinery, not including transportation equipm ent..
Transportation equipment........ ..............
Lumber and allied products________
Stone, clay, and glass products______
Textiles and their products_________
Leather and its manufactures_____
Food and kindred products.....................
Tobacco manufactures____ ____ _
Paper and printing.................................
Rubber products________ ______ ______ .
Miscellaneous manufacturing ______ _

2
5
1
2
3
1

2
1
6
5
14
1

7
2
7
2
2

2

1

2
1

3
2
5

N o n m a n u fa c tu r in g

Extraction of minerals_________
Transportation and communication___
Trade.. ______________________
Domestic and personal service....... .........
Professional service______ ______
Building and construction____________
Agriculture- _______________________
W PA , relief, and resettlement projects . .
Other nonmanufacturing industries_______

5
25
21
17
3
31
1
3
5

7

4
6
6

5

7

10

3

1
2

1
10

2
2

5
3
9

3

1

2

1

1

1

In about 45 percent of the strikes beginning in April the major issues
were union-organization matters—recognition, closed shop, discrim­
ination, etc. The major issues in about one-third of the strikes were
wages and hours—principally demands for increased wages—and in
21 percent of the strikes the major issues were miscellaneous issues
including jurisdictional and rival-union questions as well as a number
of specific grievances concerning working conditions.
Since the major issue in the coal dispute was the union shop, the
number of workers involved in strikes over union-organization matters
constitutes a large proportion (89 percent) of the total workers in­
volved. Nearly 7 percent of the workers were involved in the wageand-hour disputes and 4 percent were in the miscellaneous group.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

395

Industrial Disputes
T a b l e 4 . —M ajor Issues Involved in Strikes Beginning in A pril 1939

Workers involved

Strikes
Major issue

Number

Percent of
total
100.0
33.8
22.5
4. 4
4. 4
1.0
1.5
45.1
7.8
7.4
10.8
13.7
2.9
2.5
21.1
2.9
3.9
3.9
10.4

204
69
46
9
9
2
3
92
16
15
22
28
6
5
43
6
8
8
21

All Issues_________________________ _______ _________
Wages and hours....................... .................. ...........................
Wage increase___________ _________ ____ _______
Wage decrease. ______________ ____ _________. . . .
Wage increase, hour decrease_______ _____ _______
Hour increase___________ _____ _____ ____ _______
Hour decrease_______________________ ______ ____
Union organization------------------- -----------------------------Recognition._______________ _________________
Recognition and wages______________________ . . .
Recognition, wages and hours______ _____ _______
Closed or union shop............. .........................................
D iscrim ination...------ --------------------------------------O th e r ...................... ............. . ---------------------------Miscellaneous------- --------- ------------------------------ --------Sym pathy----------------- --------------------- ---------------Rival unions or factions___ __________________
Jurisdiction..................... ..................................................
O th e r ...------------------ ---------------------------------------

Number

Percent of
total
100.0
6.8
3.6
.6
1. 2
.1
1.3
89.2
.4
1. 6
.2
86. 6
.2
.2
4.0
.3
.5
.4
2.8

380,087
25, 682
13,741
2,145
4,486
260
5,050
339, 209
1,426
6,065
846
329, 552
743
577
15,196
1,007
1,782
1,482
10,925

Of the 331 strikes in progress in April, 197 were terminated during
the month after being in progress for an average of 18 calendar days.
Approximately 37 percent of these strikes lasted less than a week, 44
percent had been in progress from a week up to a month, and 19 per­
cent had been in progress for a month or longer. Included in the
latter group were four strikes which had been in progress 3 months or
more. All of these were small strikes, the largest involving fewer
than 125 workers.
T a b l e 5 . — Duration of Strikes Ending in A pril 1939
Number of strikes with duration of—

Industry group

All industries.

Total

1 week J^and 1 and
3
2 and
and
Less
months
less
less
less
th a n l less than
or
1 than 2 than 3
week thanj^ month months months more
month

197

73

3

2

4
5
14
9
25

3
3
3

52

35

26

7

M a n u fa c tu r in g

Iron and steel and their products, not including
machinery.................................................................
Machinery, not including transportation equip­
m ent______________________________________
Transportation equipment........................................
Lumber and allied products......................................
Stone, clay, and glass products........ .........................
Textiles and their products.—..................................
Leather and its manufactures............ ......................
Food and kindred products_________ _________
Tobacco manufactures............................- ............ .
Paper and printing.__________ ________________
Chemicals and allied products..................................
Rubber products..........................................................
Miscellaneous manufacturing....................................

2

1

11

7

1

4

2

1

2
2

7

1

3

2
10
10

1
1

2

2

4

5
4

1
1
1

3

3
1

1

3

1
2

N o n m a n u fa c tu r in g

Extraction of m in er a ls..____________
Transportation and communication__
T ra d e..........................................................
Domestic and personal service----------Professional service_________________
Building and construction....... ..............
Agriculture and fishing......................—
W PA, relief, and resettlement projects.
Other nonmanufacturing industries___


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

22

23
19
4
30

6

1

11

1

1

3
7

3
2

1

7
4
5
2
11
3

4
7
2

5

1

4

396

Monthly Labor Review—August 1939

About 42 percent of the strikes ending in April, which include l
58 percent of the total workers involved, were settled with the as­
sistance of Government officials or boards. Employers and union
representatives, negotiating directly, worked out settlements for
36 percent of the strikes, which included 31 percent of the total
workers involved.
As shown in table 6, nearly 17 percent of the strikes, which included
only 4% percent of the total workers involved, were terminated
without formal settlement. In most of these cases the strikes were
abandoned and the employees returned to work without settlement of
the disputed issues, or the workers lost their jobs entirely when
employers hired new workers to fill their places, moved, or went out
of business.
T

a ble

6 . —Methods

of Negotiating Settlement of Strikes Ending in A pril 1939
Strikes

Workers involved

Negotiations toward settlements carried on by—
Number
Total____________________ .
Employers and workers directly. _______
Employers and representatives of organized workers
..............................................
directly............
Government officials or boards_______
Private conciliators or arbitrators___ _____________
Terminated without formal settlement________ ____

Percent of
total

Number

Percent of
total

197

100.0

58,788

4

2.0

1,675

2.8

70
82
8
33

35. S
41.6
4.1
16.8

18,141
34, 256
2,060
2; 656

30.9
58.3
3.5
4.5

100.0

Of the 197 strikes ending in April, 37 percent brought substantial
gains to the workers, 35 percent were compromised, and 16 percent
resulted in little or no gains to the workers. Of the 58,788 workers
involved, 35 percent were in the strikes which were substantially
won, 56 percent obtained compromise settlements, and 3 percent
gained little or nothing.
T a b l e 7. —Results of Strikes Ending in A pril 1939
Strikes

Workers involved

Result
Number
T otal___________________
Substantial gains to workers______
Partial gains or compromises __
Little or no gains to workers ______
Jurisdiction, rival union, or faction settlements .
Indeterminate_____________

Percent of
total

Number

Percent of
total

197

100.0

58, 788

100.0

73
69
32
18
5

37.2
35.0
16.2
9. 1
2.5

20, 723
33,190
1, 509
2, 555
811

35.3
56.4
2.6
4.3
1.4

About the same proportion (43 percent) of the wage-and-hour strikes
were won as of the union-organization strikes. About 51 percent
of the first group were compromised, however, as compared with 30
percent of the latter group. Six percent of the wage-and-hour strikes

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

397

Industrial Disputes

resulted in little or no gains to the workers as did 26 percent of the
disputes over union-organization issues.
The majority (68 percent) of the workers in the disputes over wageand-hour issues obtained partial gains or compromise settlements of
their strikes. About 31 percent substantially won their strikes, and
less than 1 percent gained little or nothing. Of the workers involved
in the disputes primarily over union-organization issues, the majority
(63 percent) substantially won their strikes, 26 percent obtained com­
promise settlements, and 10 percent gained little or nothing.
T

a b le

8 . —Results

of Strikes Ending in A pril 1939, in Relation to M ajor Issues Involved
Strikes resulting in—

Major issue

Total

Substan­ Partial
tial gains gains or
compro­
to
mises
workers

Jurisdic­
Little or tion, rival
no gains union, or Indeter­
faction
minate
to
workers
settle­
ments

Number of strikes
All issues__________ ;____________

197

73

69

32
4
3
1

Wages and hours................................
Wage increase___ —- ................ .
Wage decrease______________
Wage increase, hour decrease..
Wage decrease, hour increase._
Hour increase____ _____ _____
Hour decrease________ ____

65
40
10
10
i
2
2

28
14
7
5
i
i

33
23
2
5

Union organization______________
Recognition......... .............. ..........
Recognition and wages---------Recognition and hours_______
Recognition, wages, and hours
Closed or union shop_____ :___
Discrimination______________
Other______________________

91
24
15
1
ii
24
10
6

39
10
4
1
8
9
5
2

27
3
9

24
11
2

1
9
3
2

2
6
2
1

M iscellaneous.._________________
Sym pathy__________________
Rival unions or factions.......... .
Jurisdiction_________________
Other__________ ____ _______

41
5
9
9
18

6

9
1

4
1

6

8

3

18

5

i
2
1

1
18
9
9

4
3
1

Number of workers involved
All issues_______________________

58, 548

20, 723

33,190

1,509

Wages and hours__________ _____
Wage increase______ ________
Wage decrease_______________
Wage increase, hour decrease..
Wage decrease, hour increase...
Hour increase______ ____ ____
Hour decrease_______________
Union organization______________
Recognition_______________ _
Recognition and wages_______
Recognition and hou rs.'...........
Recognition, wages, and hours.
Closed or union shop____ ____
Discrimination_________ _____
Other.............................................
Miscellaneous__________________
Sym pathy......... .....................
Rival unions or factions____ ...
Jurisdiction______ ______ ____
F Other............. ...............................

33,165
19,019
2, 871
4’ 715
1, 500
’ 260
4,800
12,809
1, 685
6j 109
’ 237
479
2,283
1,007
1,009
12,814
963
1,827
728
9,296

10,420
6, 256
b952
641
1,500
71

22, 675
12, 702
910
4,074

70
61
9


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

8,116
848
4,403
237
317
1,159
815
337
2,187

189
4, 800
3,371
271
1, 671

1,294
566
35

125
679
172
453
7,144
400

37
445
20
191
145
20

6,744

125

2,555

811

28

2,555

28
783
543

1,827
728
2,187

240

Monthly Labor Review—August 1939

398

A C T IV IT IE S OF U N IT E D STATES CO N C ILIA TIO N
SERV ICE, JU N E 1939
THE United States Conciliation Service, in June, disposed of 302
situations involving 102,090 workers. The services of this agency
were requested by the employees, employers, and other interested
parties.
Of these situations, 187 were strikes, threatened strikes, lockouts,
and controversies, involving 78,460 workers. The remaining situa­
tions, involving 23,630 workers, were services rendered such as filling
requests for information, adjusting complaints, holding conferences
regarding labor conditions, etc.
The facilities of the Service were used in 24 major industrial fields,
such as building trades and the manufacture of foods, iron and steel,
textiles, etc. (table 1), and were utilized by employees and employers
in 36 States, Alaska, and the District of Columbia (table 2).
T

a b le

1.— Situations Disposed of by U. S. Conciliation Service, June 1939, by Industries

Industry

C h em ica ls--___

__

_____

....

......

Iron and steel_____ _______ ___________ . . .
Leather______ ____
..........
... _
Lumber_____________ . . . . . . . . . . . . _
M aritime'________________________ ________
Mining __________ . . . . _______ _____ ____
Motion pictures_________________________ . . .
Paper and printing_____ _____________ ______
Professional__________________ _____ _____ ___
Stone, clay, and glass.. . . . . . . . . ___________
T extile...1 .____ I______________ . . . . . ____
Trade______________________________________
.. .
Transportation. . . _____ . ______
U tilitie s ___ _
.
____ ______ ________ _ .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Disputes

Other situations

Total

N um ­ Workers
involved
ber

N um ­ Workers
involved
ber

N um ­ Workers
involved
ber

187

78,460

1
7
19
3
1
16
24
15
1
12
9
1
15

185
15,359
6,570
282
6,350
1,480
6, 316
4, 267
190
1,443
8,084
1,000
10,685

4
5
2

3, 259
163
16

4
9
8
15
12
1
3

1,737
793
3,232
2, 219
3,981
462
387

23,630

302

102,090

2
18
4
1
2
7
4
2
1
3
2
1
1
1
4
10
1
2
2
12
12
7

3
1,305
4
1
2
269
4
4
1
1,502
315
1
12,000
26
45
4,713
2
2
4
2,495
47
7

16

878

1
9
37
7
2
18
31
19
3
13
12
3
16
1
5
9
12
1
6
11
20
27
19
1
19

185
15,362
7,875
286
6,351
1,482
6, 585
4, 271
194
1,444
9,586
1,315
10, 686
12,000
3, 285
208
4, 729
2
1,739
797
5,727
2,266
3,988
462
1, 265

115

Industrial Disputes

399

T a b l e 2 . — Situations Disposed of by U. S. Conciliation Service, June 1939, by States

State

Florida.. . . . . _ ___________ _______ . . . ____
Illinois

Massachusetts____________ _________________

Disputes

Other situations

Total

N um ­ Workers
involved
ber

N um ­ Workers
involved
ber

N um ­ W orkers
involved
ber

187

78,460

115

23, 630

302

102,090

5
1

3,365
20

2

301

1

1

2
8
1
18
2
5
12
12
2
11
2
3
2
6
7
7
8
1

22
1,966
' 537
6,736
207
872
1,747
1,812
79
7,372
1,325
182
210
1,877
15,678
2,795
4, 265
150

5
12
1
18
3

ï, 41Ô
1,557
82
3,175
6,487

11
2
1
1
4
2
3
3
1
5

2,197
207
1,100
75
234
200
2,770
439
45
7,265

7
1
1
2
13
1
30
6
6
15
21
3
11
2
3
2
10
8
7
12
3
1
8
38
1
27
3
2
16
5
2
4
9
2
4
7
3
6

3,666
20
1
22
13,970
537
6.753
511
1,072
1,879
6,022
80
7,372
1,325
182
210
3, 688
15,681
2,795
4,311
152
1
1,434
1,966
82
3,202
6,487
350
2,207
608
1,101
302
2,111
200
2,771
1,706
47
7, 266

Nebraska___________ _ _ _ . . . ________ ______

South Carolina_______________ _____________
U t a h ____

__________________________

West V irginia______________________________


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

5

12,004

12
4
1
3
9
1

17
304
200
132
4, 210
1

4
1

ï, 81Ï
3

4
2
1
3
26

46
2
1
24
409

9

27

2
5
3
1
3
5

350
10
401
1
227
1,877

1
4
2
1

1
1,267
2
1

Cost and Standards of Living

IM PR O V ED STANDARDS OF LIV IN G FOR LOWIN C O M E FARM FA M ILIES
FARM families operating under farm- and home-management plans
worked out with the aid of the Farm Security Administration have
increased their home food production, farm diversification, working
equipment, living standards, and total net worth, in all parts of the
country except in sections suffering from drought and other catas­
trophes. The work of that Administration includes, principally, a
program of rehabilitation for destitute and handicapped farm families;
a farm-purchase program for farm tenants, share croppers, and farm
laborers; and a homestead program. A description of these and
other phases of its work and of the progress made during the last
fiscal year appears in the report of the Administrator for 1938.1
Rehabilitation

The farm- and home-management plan is the heart of the ruralrehabilitation program, which is designed to assist needy and handi­
capped farm families to become self-supporting and self-reliant. A
plan is worked out with each individual family and a loan is made for
the purchase of necessary tools and livestock. Other assistance may
be provided, such as more or better land, adjustment of debts to
ability to pay, medical aid through medical-service plans,2 etc.
During the fiscal year 1938, standard rehabilitation and supple­
mental loans totaling $65,068,016 for 199,554 families were approved.
The debt-adjustment service furnished to farmers resulted in a reduc­
tion of $13,692,560 from a prior debt of $56,549,584 by 16,663 indi­
vidual farmers, and of $3,269,462 from a prior debt of $5,159,560 by
4,472 farmers in group cases.
Community and cooperative services have been utilized for the
provision of facilities economically inadvisable for individuals. Loans
for group purchases of heavy farm equipment, for health or veterinary
services, for livestock-improvement services, etc., totaling $1,934,703
and serving 47,310 participants therein, 90 percent of whom were re1IJ. S. Department of Agriculture. Farm Security Administration. Report of the Administrator of
the Farm Security Administration, 1938. Washington, 1938.
2 For data on the medical-service plans, see M onthly Labor Review, March 1939 (p. 592).

400

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cost and Standards of Living

401

habilitation families, were approved during the year. In addition,
loans were made to individuals to aid them in joining cooperative
associations and also to the cooperatives themselves, in the total
amount of $248,751, thus helping 3,116 families. Other forms of
financial aid during the year were emergency loans in drought and
flood areas amounting to $1,009,396 and grants to 250,000 needy
farm families in such areas for food, clothing, and medical care, totaling
$23,062,062.
Progress of Farm Families Under Rehabilitation Program

A tentative survey as of December 31, 1937, of 231,661 client
families operating for a year or more under the farm- and homemanagement plans, showed the progress made by these families, which
included 1,195,826 persons. Many of the families applying for loans
had farms which were too small to cultivate economically, and they
were assisted in getting more land or finding a farm of larger size.
The average acreage of the farms cultivated by the borrowers had
increased from 80.0 acres at the time of acceptance of the program
to 102.5 acres at the end of the 1937 crop year. The number of work
animals owned by these families had increased from 264,377, or an
average of slightly over 1 per family, to 512,390, or an average of
more than 2 per family. There was a gain in the number of dairy
cows owned by 141,716 families, and 62,334 families which had had
none previously had acquired a milk cow by the end of 1937. Also,
202,196 families had more hogs than before and 183,217 families had
more poultry; 69,759 and 36,120 of these families, respectively, had
had none at all before. Increased acreages in feed and forage crops—
from 4,739,784 to 7,343,653 acres—followed from the increase in
livestock.
A noticeable improvement in the standard of living of these farm
families had resulted from the more proficient farm management.
This was evidenced by increased production for home consumption
of milk, fresh and cured meat, and eggs, and by adequate fruits and
vegetables from their own gardens. The average yearly production
per family member of milk increased from 109 to 189 quarts, and of
fresh and cured meat, from 35.2 to 67.7 pounds, and the number of
eggs nearly doubled. In addition, 53.0 quarts of fruits and vege­
tables per person per year were canned and stored for winter use, as
compared with 21.6 quarts previously.
The average annual wholesale value of this production for home
consumption averaged $254 per family, as compared with $121.65
previous to entering upon the farm-management program, and the
consequent saving in cash outlay made possible larger expenditures for
more lasting possessions. The resulting increase in value of livestock

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

402

Monthly Labor Review—August 1939

and equipment, furniture, and supplies—the net worth of these
families—which amounted to $252 per family, had added more than
$58,417,000 to the wealth of their communities.
Farm Purchase for Tenants

The final step toward security for low-income farm families with a
relief or near-relief status is acquiring ownership of a family-size
farm. The tenant-purchase program of the Farm Security Adminis­
tration gives such an opportunity to tenants, share croppers, and farm
laborers, including some “graduates” from the rehabilitation program.
Through a liberal loan policy on a long-term basis, a farm family may
purchase a farm, giving a lien on the property purchased and agreeing
to observe a sound system of cultivation that will conserve the soil
and the value of the property. During the fiscal year 1938, loans to
1,887 applicants, totaling $9,225,083 for the purchase of farms and
improvements, were approved.
Rural-Homestead Projects

On June 30, 1938, 76 rural-homestead projects had been completed
and others were so near completion as to have resident families. These
projects furnish homesteads for 8,947 families. One hundred and fortysix projects were completed or under development at the end of the
fiscal year, and ultimately 15,417 families will be accommodated.
There are three main kinds of rural-homestead projects—scatteredfarm projects, farm-community projects, and subsistence homesteads.
The scattered-farm projects provide for low-income farm families
much the same opportunities as the tenant-purchase program, except
that the farmer rents the farm for several crop years before he con­
tracts to buy it. The rentals are subsequently applied to the purchase
price, if the sale is mutually desired. Farm communities, or the band­
ing together of small farmers living on the same project, generally
organize as cooperatives. On June 30, 1938, approximately 4,500
heads of homestead families were members of project cooperatives.
Loans totaling $2,202,735 were made during the year to 16 new coop­
eratives and $326,858 to cooperatives formed in previous years, or
$2,529,593 in all. The total transactions of the cooperative associa­
tions on resettlement projects during the year were over $3,000,000.
The subsistence-homestead projects offer families in industrial em­
ployment greater security in the form of a supplemental farm income.
Twenty-six subsistence homesteads had been completed at the end of
the fiscal year and 3 others were almost completed. The management
of 12 of the completed projects had been transferred to nonprofit
associations organized by the residents.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Cost and Standards of Living

403

Greenbelt Communities

Construction on all three of the greenbelt towns, developed in sub­
urban areas of Cincinnati, Milwaukee, and Washington, was completed
at the close of the fiscal year. They contain 2,200 family units, and
each include a number of farm units. They were planned, however,
mainly to furnish homes for low-income families in crowded cities.
Greenbelt, Md., was the only one which had an established local
government at the end of the year.

STANDARD OF LIV IN G ON M ARYLAND FARM S
A STUDY of the cash incomes and standard of living of 72 farm
families in Carroll County, Md.—a fertile agricultural section with a
ready market for farm produce—was made in the summer of 1937.1
It was found that the net cash income of these families, averaging
$1,399 in 1937, was sufficient to provide a good standard of living.
The total cash receipts from these farms averaged $2,769 per family
and the farm operating expenses averaged $1,370. Most of these
families owned their own farms and had lived on them from 1 to 54
years, the average tenure being 20 years. The average size of the
family was 4.3 persons and of the households 5.1 persons.
The amounts spent for different items of the cost of living by the
different income groups are shown in the following table:
Average Cash Expenditures per Farm Family for Living, by Income Groups

Annual cash income

Average cash expenditure for family living
Accu­
N et
mula­
N um ­ cash
tion
House­
ber of fam­
Advance­
or
hold
fam­ ily
Per­ defi­
Cloth­
ment
Health
Food
and
in­ Total
ilies
sonal cit
ing
and rec­
opera­
come
reation
tion

All groups: Total or average.

72 $1,399 $1,032

$303

$301

$157

$137

$79

$55

$367

Under $ 5 0 0 . ____ _________
$500-$999________ _________
$1,000-$1,499_______________
$1,500-$1,999______________
$2,000 and over____________

7
328
807
20
16 1,279
16 1,744
13 2,607

424
947
1,040
1,266
1,192

146
254
297
419
328

149
296
340
321
321

45
162
163
199
150

24
115
114
194
188

25
64
84
79
127

35
56
42
54
78

1 96
1 140
239
478
1,415

1 Deficit.

The largest item of cash living expenses was household and opera­
tion, which included furniture and equipment, housing, fuel, auto­
mobile, telephone, and other cash household and operating expenses.
Food was the next largest item in the cash budget. The two lowest
income groups spent more for family living than their net cash income,
1
University of Maryland. Agricultural Experiment Station. Standard of Living on Carroll County
M d., Farms. College Park, 1938. (Bulletin No. 422.)


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

404

Monthly Labor Review—August 1939

which must have necessitated either using savings of former years or
borrowing.
The proportions of the average net cash family income spent for
the different items were as follows: Household and operation, 29.3
percent; food, 29.2 percent; clothing, 15.2 percent; advancement and
recreation, 13.3 percent; health, 7.7 percent; personal expenses, 5.3
percent.
All of the families had automobiles, 90 percent had sewing machines,
and 89 percent had radios; 81 percent had water indoors; 78 percent,
central lighting; 78 percent, mechanical washing machines; 64 percent,
telephones; 58 percent, hot and cold water; 57 percent, central heating;
56 percent, indoor toilets; and 46 percent, mechanical refrigerators.
It was pointed out that, although some of the families had low cash
incomes, this did not necessarily mean a low standard of living, as
much of the food consumed may have been furnished by the farm.
The diets of these farm families were found to be well above the
accepted standards in nutritive requirements, possibly because the
data were secured in the summertime when the families had gardens.
Individual families, however, had some deficiencies in vitamins,
especially vitamin B, and a few in calories and minerals.
LIV IN G COSTS OF WOMAN W ORKERS IN N EW YORK,
1938
THE minimum cost of “adequate maintenance and protection of
health” of a working woman in New York State in 1938 was recently
set at $1,059.68 for a woman living as a member of a family, and
$1,160.75 for a woman living alone.1 In 1937 the costs were $1,058.31
and $1,192.46, respectively.2 The annual cost of living of working
women in the State, as computed by the New York Department of
Labor for use in minimum-wage determinations under the State law, is
based on a budget representing a minimum “adequate” standard. The
figures for 1937 and 1938 are not entirely comparable, because of some
changes in items and pricing techniques. Thus, the decrease of
$31.71 from 1937 to 1938 shown for the woman living alone was only
partly due to price declines, changes in methods accounting for some
of the decrease. The increase of $1.37 shown for the woman living
at home arose mainly from the new method of calculating the woman’s
share of the family expense for housing, the difference canceling the
price decreases.
1 N ew York. Department of Labor. Bureau of Research. D ivision of Women in Industry and M in i­
mum Wage. Adequate Maintenance and Protection of Health for Women Workers in N ew York State.
N ew York, 1939. Mimeographed.
J The details of the 1937 budget were given in the M onthly Labor Review for March 1938 (p. 571).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

405

Cost and Standards of Living

The annual living costs of the woman living as a member of a family
generally increased in the smaller cities, but this was only partly true
of the living costs of the woman living alone. The comparable costs
for both classes of woman workers in 1938 were as follows:
W om an at
hom e

New York C ity---- —
-------------- $1, 050. 08
Cities with population of—
100,000 and over (except New York
1, 072. 38
C itv)_____
1, 071. 16
50,000 and under 100,000
1, 080. 45
25,000 and under 50,000
10,000 and under 25,000 _
_ 1, 123. 18

W om an
a lo n e

$1, 163. 17

1,
1,
1,
1,

136.
149.
189.
182.

96
74
14
51

Home expenses, which included housing, fuel and light, and food,
constituted the largest part of the living expenses of both classes of
workers in 1938, amounting to $492.16 for the woman living at home,
and $590.28 for the woman living alone. Clothing was the next
largest item of cost in the budget, averaging $181.97 for both the
woman living at home and the woman living alone. Identical sums
for both classes of women were shown for the following items: Leisure­
time activities, $109.24; medical care, $62.33; personal care, $35.80;
other living essentials, $95.46. Clothing upkeep, and insurance and
savings, represented a slightly higher cost for the woman living alone
($15.06 and $70.61, respectively) than for the woman living as a part
of a family ($13.12 and $69.60, respectively).


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Minimum Wages and Maximum Hours

ESTA B LISH M EN T OF REGIONAL O FFICES U N D ER
WAGE AND HOUR ACT
PLANS for 16 regional, 11 branch, and 30 field offices as a part of a
program for limited decentralization of the functions of the Wage and
Hour Division in administering the Fair Labor Standards Act of
1938 were announced by the Administrator on July 1, 1939.1 This
organization will be an extension of that already in operation and
will be introduced gradually, but a mobile force of inspectors is to be
employed at once to service the entire country pending the time
when all regional offices are fully staffed. The purpose is to speed up
disposition of complaints and enforcement under the law and to
maintain flexibility by moving the inspectors as needed.
The regional groups and their headquarters are as follows:
H e a d q u a r te r s

Maine, Vermont, New Hampshire, Massachusetts, and Rhode Boston.
Island.
New York and Connecticut__________________________________ New York.
Pennsylvania, New Jersey, and Delaware_____________________ Philadelphia.
Maryland, Virginia, West Virginia, and District of Columbia__ Richmond.
North Carolina and South Carolina__________________________ Charlotte.
Georgia and Florida________________________________________ Atlanta.
Louisiana, Mississippi, and Alabama_________________________ Birmingham.
Tennessee and Kentucky____________________________________ Nashville.
Ohio and Michigan_____________________
Cleveland.
Wisconsin, Illinois, and Indiana______________________________ Chicago.
Montana, North Dakota, South Dakota, and Minnesota_______ Minneapolis.
Nebraska, Kansas, Iowa, and Missouri_______________________ Kansas City.
Oklahoma, Arkansas, and Texas.«__________________________ _ Dallas.
Wyoming, Utah, Colorado, and New Mexico__________________ Denver.
Washington, Oregon, Idaho, and Alaska______________________ Seattle.
California, Nevada, Arizona, and Hawaii_____________________ San Francisco.

In addition the territorial office in Puerto Rico will continue to
function.
The regional director in each jurisdiction will act as the direct
representative of the Administrator, controlling all phases of the
program within his territory, “including the cooperation and inspec­
tion, information, and enforcement activities, pursuant to policies,
regulations, interpretations, and procedures approved by the Adminis­
trator.’’
1 Press release No. K-342, dated July 1, 1939.

406


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

TAXABLE EA R N IN G S, IN 1937, OF W ORKERS U N D E R
OLD-AGE IN SU RA N CE 1
THE annual taxable earnings of 30,157,694 employees in industries
covered by old-age insurance, under the United States Social Security
Board, totaled $26,825,366,241 in 1937—an average of $890 per
employee. The average for white males was $1,080 and for Negro
males, $453. The corresponding figures for white and Negro females
were respectively $539 and $247.
The Director of the Bureau of Old-age Insurance estimates that the
inclusion of wages not covered by the Social Security Act would prob­
ably raise the average annual wage of these more than 30 million
workers to $975. Wages in employments not within the scope of the
act, and wages exceeding $3,000 per annum from one employer, are
not included in total taxable earnings.
T

a b le

1 . —Number

and Percent of Employees Under Old-Age Insurance and of Total
Taxable Wages, and Average Wages, by Sex and Race, 1937 1
Taxable wages 3

E m ployees3
Sex and race
Number

Percent
of total

Amount

Percent
of total

Average
taxable
wages
per em­
ployee

Both sexes 1-------- ------ ------------------W h ite ..___________ __________
Negro__ _____ ________________
Other __________________ . . .

30,157,694
27,865,985
2,035,949
255,760

100.0
92.4
6.7
.9

$26,825, 366, 241
25,840,864,782
853,793, 624
130,707,835

100.0
96.3
3.2
.5

i $890
927
414
511

M a l e s . . ...... ............................................
W hite------------------- ---------------Negro________________________
Other _______________________

21,906,658
19,993,707
1,701,200
211,751

72.6
66.3
5.6
.7

22,489,920,809
21,600,247,078
771,223,933
118,449,798

83.8
80.5
2.9
.4

1,027
1,080
453
559

Females------------ -------------- ---------W hite................... .............. ...........Negro................................... ............
Other_______________ ________ -

8,251,036
7,872, 278
334,749
44, 009

27.4
26.1
1.1
.2

4, 335, 445, 432
4,240,617,704
82, 569,691
12,258,037

16.2
15.8
.3
.1

525
539
247
279

1 Figures given are preliminary and subject to revision; corrected to Mar. 1, 1939. Table excludes 77,632
employees holding Railroad Retirement account numbers, and their taxable wages of $17,472,692; and 267,085
employees whose sex or race are unknown and their taxable wages of $40,740,243. The average wage with
these employees and their wages included is $881.
2 Includes 93 percent of the total volume of taxable wages reported as paid in 1937. The number of em­
ployees represented is estimated at 96 percent of the total who earned taxable wages in 1937.

Table 1 shows the distribution of the taxable earnings of these
30,157,694 workers in 1937, by color and by sex. Negro workers
i The data in this article are taken from a press release of April 10, 1939 (No. 718), issued by the Social
Security Board, and from mimeographed tabulations furnished by that Board to the United States Bureau
of Labor Statistics.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

407

408

Monthly Labor Review—August 1399

constituted 6.7 percent of the workers covered and received only
3.2 percent of the taxable wages. Women constituted 27.4 percent
of the workers covered and received only 16.2 percent of the wages
reported. However, in making any comparisons of this character,
the question of heavier percentages of part-time and of occasional
covered employment among certain classes of workers must be taken
into consideration.
Table 2 gives the percentage distribution of the workers in graduated
wage groups, by color and by sex. The fact that slightly over 28
percent received less than $300 per annum, in taxable wages and that
nearly 39 percent received less than $500, indicates part-time employ­
ment and the employment of many persons receiving the larger part
of their income from jobs not covered by the act. The very heavy
percentages of women (54.4 percent) and Negroes (66.3 percent)
receiving taxable earnings of less than $500 per annum may also be
accounted for to some extent by the fact that the status of these two
classes of workers in covered employment is less permanent than
that of white males.
T a b l e 2 . —Percentage

Distribution of Employees Under Old-Age Insurance by Classified
Taxable Earnings, Sex, and Race, 1937 1
Both sexes

Males

Pernales

Interval of taxable earnings
T o ta l2 White
$1 to $99_________________
$100 to $199_________
$200 to $299_______
$300 5o $399__________
$400 to $499_________

Negro

T o ta l3 White

Negro

T o ta l4 White

Negro

14.6
7.5
6.0
5.5
5.1

13.5
7.0
5.7
5.2
5.0

29.2
12.8
9.4
8.0
6.9

12.4
6.4
5.1
4.5
4.3

11.0
5.9
4.7
4.2
4.0

27.2
12.1
9.0
7.8
6.9

20.5
10.3
8.3
7.9
7.4

19.6
10.0
8. 2
7.8
7.4

39. 0
16. 5
11. 5
9 4
6.7

$500 to $599________
$600 to $699________
$700 to $799__________
$800 to $899_........ .........
$900 to $999_______

5.0
5.1
5.1
4.6
4.4

5.0
5.1
5.1
'4.7
4.5

6.2
5.5
4.7
3.5
2.9

4.2
4.3
4.4
4.2
4.3

4.0
4.2
4.3
4.3
4.5

6.3
5.6
5.0
3.9
3.3

7.2
7.3
7.0
5.7
4.6

7.3
7.4
7. 2
5.9
4.8

5 7
4.9
3, 2
14
.7

$1,000-$1,499_________
$1,500 to $1,999______
$2,000 to $2,499____
$2,500 to $2,999______
$3,000____________

17.5
10.2
4.4
2.0
2.3

18.2
10.9
4.8
2.2
2.4

8.5
2.1
.3
O)
0

20.2
13.2
5.9
2.7
3.0

21.1
14.2
6.4
2.9
3.3

10.0
2.5
.3
.1
0

10.3
2.4
.6
.2
.2

10.8
2.5
.6
.2
.2

Over $3,000__________
T o ta l6-...................

.7

.7

100.0

100.0

0
100.0

.9

1.0

100.0

100.0

0
100.0

.1

.1

100.0

100.0

(S)
(Í)
0

.9
.1

0
100.0

1 Preliminary; figures subject to revision; corrected to Mar. 1, 1939. This tabulation includes 93 pecent
oi the total volume of taxable wages reported as paid in 1937. The number of employees represented is
estimated at 96 percent of the total who earned taxable wages in 1937.
2 Includes 211,751 male employees and 44,009 female employees of other races.
3 Includes 211,751 male employees of other races.
4 Includes 44,009 female employees of other races.
5 Less than 0.05 percent.
«Excludes 77,632 employees holding Railroad Retirement account numbers, and 267,085, whose sex or
race are unknown. These employees represent 1.1 percent of the total number of employees.

According to an analysis of the distribution of taxable wages, made
by the Bureau of Old-Age Insurance, employees receiving under
$3,000 per annum in 1937 constituted 97 percent of the 30,157,694
employees, and the earnings of this great group of workers covered

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

409

Wages and Hours of Labor

amounted to 90 percent of the total taxable wages paid in the year
under review. In cases where earnings of more than $3,000 were
credited to a person, such sum was received from 2 or more employers
during the 12 months reported on.
Younger workers considerably outnumber older workers in the oldage insurance accounts, fully 60 percent of the 30,157,694 employees
in the group 20 to 39 years of age, as compared to only 27 percent
in the 40 to 59 age group. The average wage of the latter group
however was $1,185—over one-third above the average of $860
received by the younger workers.
A further break-down of employees by 5-year age groups shows that the aver­
age taxable wage of some 700,000 employees between the ages of 60 and 65 (the
oldest group covered by the Federal old-age insurance provisions) was $1,086,
or almost double the average for some 5,700,000 employees between the ages of
20 and 25, the most numerous age group. The age group receiving the highest
average wage— $1,204—was that from 45 to 49 years old; this group constitutes
8 percent of the total number of employees studied.
T a b l e 3 . —Number and Percent of Employees Under Old-Age Insurance and of Total

Taxable Wages, and Average Wages, by Age Group, 1937 1
Taxable wages 3

Employees 2
Age group
Number
All ages.—.....................................................

Percent
of total

Amount

Percent
of total

Average
taxable
wages per
employee

100.0

i $890

30,157, 694

100.0

$26,825,366, 241

46, 797

.2

2, 241,403

2,747,158
5,674,963
4,983,478
4,077, 789
3,391,874

9.2
19.0
16.7
13.6
11.3

723,846,668
3,301,115, 379
4,192,152, 891
4, 255, 581, 675
3,848, 604, 429

2.7
12.3
15.6
15.9
14.4

263
582
841
1,044
1,135

2,840, 780
2, 360,775
1,726,874
1,188,346
719,338

9.5
7.9
5.8
4.0
2.4

3,406, 726,303
2,841, 658,146
2,032, 513,335
1, 343,754,794
781,127, 831

12.7
10.6
7.6
5.0
2.9

1,199
1,204
1,177
1,131
1,086

.4

.3

48

(*)

106,402
7,768

(<)

70, 617,318
2,197, 408

«

664
283

285,352

(3)

23, 228, 661

(3)

81

1 Figures given are preliminary and subject to revision; corrected to Mar. 1, 1939. Table excludes 77,632
employees bolding Railroad Retirement account numbers, and tbeir taxable wages of $17,472,692; and
267,086 employees whose sex or race are unknown and their taxable wages of $40,740,243. The average wage
with these employees and tbeir wages included is $881.
2 Employees of unknown age excluded.
3 Includes 93 percent of the total volume of taxable wages reported as paid m 1937. The number of em­
ployees represented is estimated at 96 percent of the total who earned taxable wages in 1937.
1 Less than 0.05 percent.

The average taxable wages received in the more highly industrialized
and urbanized areas of the United States—for example, New England,
the Middle Atlantic, and the Great Lakes regions—exceeded the
national average ($890). The average wage of workers in Michigan
was $1,102, which outranked all the other States. New York was
163839— 39—


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

10

410

Monthly Labor Review—August 1939

second with $1,042. and Illinois third with $1,029, as indicated in
table 4.
A classification of earnings based on migratory and nonmigratory
employment indicates that at least 7% percent of the workers earned
wages in a State other than the one in which their account numbers
were issued. The proportion of migrant workers varies substantially
from State to State, the highest percentage being reported for the
smaller and less closely populated States. For the United States as
a whole, the average taxable earnings of migrant workers were $895—
or $13 more than those of nonmigrant workers.
T a b l e 4 . —Number of Employees Who Received Wages in Covered Employment and

Average Taxable Wages, by States, 1937 1
State and division

Average
Number
taxable
of em­
wages
per
ployees * employee
3

United States........................ 30,157, 694
New England____________
Maine_______________
N ew Hampshire.........._.
Vermont....................... .
Massachusetts________
Rhode Island...............
C onnecticut.......... ........

$890

2, 580,466
217, 410
136,114
74, 735
1,333, 082
240,674
578,451

902
662
745
735
933
873
994

Middle Atlantic.................. 7, 919, 407
N ew York____________ 4,055,650
N ew J ersey ........... ........ 1,154, 758
Pennsylvania................. 2, 708,999

1,013
1,042
993
978

East North Central_______
O h io ...............................
Indiana______________
Illinois..............................
M ichigan............ ...........
Wisconsin.......... .............

7,187,128
1,901,958
826, 272
2, 2 4 4 ,012
1, 545,163
669, 723

1,020
1,025
907
1,029
1,102
928

West North Central........... 2, 216,990
M innesota____________
491,199
Iowa..................................
376, 205
Missouri....................... .
768,349
North Dakota________
55, 546
South Dakota________
63, 400
Nebraska..........................
185,103
K a n sa s............. .............
277,188

778
845
725
835
612
629
689
702

South Atlantic....................... 3,391,462
Delaware..........................
72,443
M aryland.......................
456, 657
District of Columbia__
183,094
Virginia.............................
456,425

671
870
835
891
663

Number
of em­
ployees 3

Average
taxable
wages per
employee 5

South Atlantic—Contd.
West Virginia............
North Carolina..........
South Carolina_____
Georgia___ ____ ___
Florida.___________

405,115
608, 605
313, 236
492,172
403, 715

$905
576
518
562
523

East South Central....... .
K e n tu ck y ..................
Tennessee_________
Alabama__________
M ississippi............

1, 417, 562
374,360
470,893
375, 681
196,628

603
685
608
615
413

West South Central........
Arkansas....................
Louisiana....................
Oklahoma........ ...........
T e x a s ........................

1,998,482
172,383
373,978
322,144
1,129,977

676
520
639
761
688

M ountain...........................
Montana...................
Id a h o ..........................
W yoming_________
Colorado..................... .
N ew Mexico........... .
Arizona____________
U tah___ ____ ______
N evada.........................

770,382
100,248
92,532
50, 598
231,142
64, 533
95,398
105,308
30,623

754
852
645
782
747
677
751
776
853

Pacific_______ ______ ___
Washington________
O regon........................
California.....................

2, 541, 889
424,278
257,147
1,860,464

893
869
799
912

Alaska................................
Hawaii_______ ________

32,196
101,730

846
535

State and division

Figures given are preliminary and subject to revision; corrected to Mar. 1, 1939. Table excludes 77,632
no°7ees folding Railroad Retirement account numbers, and their taxable wages of $17,472,692- and
267,085 employees whose sex or race are unknown and their taxable wages of $40,740,243. The average wage
with these employees and their wages included is $881.
1 Includes 93 percent of the total volume of taxable wages reported as paid in 1937. The number of em­
ployees represented is estimated at 96 percent of the total who earned taxable wages in 1937.

The United States Census Bureau has estimated the total number
of persons employed or available for employment in this country in
1937 as approximately 54,500,000, of whom the estimated 32,000,000
who earned taxable wages constituted almost 59 percent.
To what extent holders of social-security account numbers represent indi­
viduals actually employed in occupations subject to the Social Security Act can
be determined by comparing the total number of persons to whom social-security

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

411

account numbers had been assigned by the close of 1937 with the total for whom
wages were reported for that year. Altogether, 36,688,338 account numbers
were assigned from Novem ber 24, 1936, when the first applications were filed,
through December 31, 1937. I t is thus apparent that only about 13 percent of
those who applied for account numbers did not receive taxable wages during 1937.
T his is largely accounted for by persons 65 and over covered by State unem ploy­
ment-compensation laws and W P A workers, all of whom have been assigned
account numbers. T h is indicates that, before December 31, 1937, relatively
few persons applied who were not already employed in occupations covered by
the Federal old-age insurance system, or did not have fairly good prospects of
finding such employment.

*********

SALARIES IN FED ER A L G O V ERN M EN T SERV ICE
AT THE close of 1937 the average annual salary of Government em­
ployees was approximately $1,871, the average in the District of
Columbia being $2,066 and outside the District, $1,838. The Post
Office Service average was estimated at $2,026 and that of the re­
maining Federal Services taken together at $1,783.1 The averages
may be somewhat higher than they would be if all Federal Gov­
ernment employees had been included instead of a sample of approxi­
mately 50,000 selected at random from service records of the United
States Civil Service Commission. This sample is the basis of the study
under review,2 the statistical findings of which, according to the
report, are believed to be relatively the same for the early part of 1939.
As will be noted from table 1, almost half of the employees were
included in the 2 salary groups, $1,000-$1,499 and $2,000-$2,199,
the latter group being made up mainly of Post Office employees. Over
three-fourths of the employees covered in this survey received an
annual salary under $2,200.
Over half of the Federal employees in the District of Columbia were
being paid between $1,000 and $1,800 per annum. About 75 percent
of the employees in the District of Columbia were receiving under
$2,200, as compared to 83 percent in the corresponding class outside
the District. This difference is explained in the report as due to the
greater number of employees in the higher salary groups in the
District.
Approxim ately 88,000 employees in the Government service, or about 11 per­
cent of the employees, earn incomes of $2,500 or more. Of this total, about 24,000
work in the D istrict of Colum bia and 64,000 outside of the D istrict of Columbia.
1 United States. Civil Service Commission. Press release. Civil employment in the Federal Gov­
ernment by salary range. Washington, April 2,1939. (See footnote to table 1.)
a For the purpose of this study, per diem and per hour rates of pay were converted to a per annum basis
and the employees were considered as receiving full-time pay. Several large groups of employees who re­
ceive all or part of their income, directly or indirectly, from the Government and who would be in the
lower-income brackets, were excluded, either because they were not technically Government employees or
because uncertain tenure made it impossible to maintain records of their employment. Temporary substi­
tute employees, special-delivery messengers, clerks in contract stations and in third- and fourth-class post
offices, all in the Post Office Department, and fire fighters in the Department of the Interior and in the
Department of Agriculture, are among the groups omitted.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

412

Monthly Labor Review—August 1939

Approximately 22 percent of those employed in the District of Columbia earn
salaries of $2,500 or more, whereas the salaries of 10 percent of the employees
outside of the District of Columbia fall in this group. Slightly less than 6 percent
of the employees of the Post Office Department received salaries of $2,500 or
more, compared with 14.5 percent outside the Post Office Department.
T a b l e 1 . —Distribution,

by Salary Range, of Federal Employees for Whom Records are
Maintained by Civil Service Commission, as of Dec. 31, 1937 1
District of
Columbia

Outside
District of
Columbia

All salary groups_____________

112, 500

667, 696

780,196

282,593

497, 603

Under $1,000 ________ .
$1,000-11,499_________________
$1,500-$1,799______________
$1,800-$1,999______
$2,000-$2,199_______ .
$2,200-$2,499______
$2,500-$2,999____________
$3,000-$3,499________
$3,500-$3,999____
$4,000-$4,499________
.
$4,500-14,999_______
$5,000-$5,999___________
$6,000-$6,999_____„____
$7,000 and over_____ _

3,310
33,410
24, 802
13,171
8,291
5, 225
9,486
4,909
. 2,908
' 1,195
2,202
1,713
849
1,029

52,019
151, 635
93, 598
79,834
179, 279
47,360
35,712
13,116
6,799
2,346
2, 558
1.845
726
869

55,329
185,045
118,400
93,005
187, 570
52,585
45,198
18,025
9, 707
3,541
4,760
3, 558
■1,575
1,898

494
20,911
36,033
35,176
146, 521
27, 557
12,220
1,946
1,171
264
99
71
59
71

54,835
164,134
82,367
57, 829
4L 049
25,028
32^ 978
16,079
8; 536
Z, 277
4,661
3| 487
L 516
li 827

2,066

1,838

1,871

2,026

1,783

Salary range

Average salary____________

_____

Entire
Service

Entire
Post Office
Service less
Service
Post Office

1 Based on a sampling stu d y which included employees of all departments and agencies appearing on the
monthly report of the Civil Service Commission for December, 1937, except employees of the Tennessee
Valley Authority, the Works Progress Administration, the Golden Gate International Exposition Commis­
sion, the Greater Texas and Pan-American Exposition Commission, the National Emergency Council
the N ew York World’s Fair Commission, and temporary substitutes in the Post Office Service; included,
however, are employees of the Library of Congress and the Judicial Branch of the Federal Service.

At the close of 1937 about 92,100 Federal employees were in New
York State, 53,100 in Pennsylvania, 45,500 in California, and 47,400
in Illinois.3 The average annual salary was $1,931 in New York;
$1,870 in Pennsylvania; $1,884 in California; and $1,932 in Illinois.
The distribution by salary groups of Federal employees receiving
$2,500 or over per annum in the 4 States having the largest number of
such employees, is given in table 2.
T able 2.

Estimated Number of Federal Employees in 4 States by Specified Salary Ranges
December 1937
New York

Pennsyl­
vania

California

All groups_________

6,701

3,411

3, 871

3,329

$2,500-$2,999___
$3,000-$3,499____
$3,500-13,999____
$4,000-$4,499________
$4,500-$4,999___
$5,000-$5,999______
$6,000-$6,999__
$7,000 and over _ _ _ _ _ _

3,728
1.315
758
325
201
186
108
80

2,122
611
306
162
55
54
60
41

2,014
'772
503
168
166
134
61
53

1,691
'807
305
137
183
95
59
52

Salary range

Illinois

3 The figures include all employees in the executive branch, some of whom were not covered in the sample.
(See footnote to table 1.)


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

413

WAGES IN T H E BALTIC COUNTRIES
FOUR Baltic countries—Estonia, Finland, Latvia, and Lithuania—
are related to one another not only by their geographical location on
the eastern shores of the Baltic Sea but also by their historical back­
ground, for they all belonged to the former Russian Empire. Estonia,
Latvia, and Lithuania were merely provinces of that empire, but
Finland was an autonomous state, although with considerably
restricted autonomy.
Of these countries, Finland is the largest in territory and popula­
tion, having about 3,365,000 inhabitants, while Estonia is the smallest,
with about 1,127,000 inhabitants.
The level of industrial development and relations and of educa­
tional standards in the Baltic countries more nearly resembles that
of Scandinavian than of any other European group of countries.1 Also,
although wages are lower in the Baltic countries, it is generally agreed
that the cost of living is also lower than in the Scandinavian countries.
Wages in Estonia 2

The wage rates as, indicated in the following tables represent the
wages as received by workers, and include deductions for sickness
and accident insurance. For sickness insurance, the deduction is 2
percent of the wages, to which the employer adds 4 percent. For
insurance against accident no deduction is made, but 1 percent is
contributed to the insurance fund by the employer alone.
A G R IC U L T U R E

The shortage of farm laborers in 1937 affected the wage situation in
Estonian agriculture, causing the wages to rise. Thus, for example,
the average monthly wages of male farm hands employed on a yearly
contract increased from 22.10 krooni3 in 1936 to 27.20 krooni in 1937,
or 23 percent. For females the increase was 22 percent, their aver­
age monthly wage rate for 1937 being 19.50 krooni. Farm workers
employed on a summer contract were paid the following average
monthly wages in 1937: Male laborers, 38.10 krooni, female laborers
27.10 krooni, and herders 19.80 krooni, representing increases of 23
percent, 22 percent, and 19 percent from the corresponding figures
for 1936. Table 1 gives the wages for farm laborers in 1937, employed
on both yearly and summer contracts, according to age. Averages
for workers aged 18 to 50 are also shown by years from 1933 to 1937.
i See M onthly Labor Review, November 1938, pp. 1133-1144: Wages and Hours in Scandinavian
Countries, 1937-38.
s Report of Edward Hunt, clerk of American Consulate at Tallinn.
iKroon (100 senti) in 1936 to 1938=about 27 cents, U. S. currency.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

414
T a b l e 1 . — Wages

of Agricultural Laborers in Estonia, 1937, on Yearly and on Summer
Contracts, by Age and Sex
[Average exchange rate of kroon in 1937=about 27 cents]
Yearly contract (with board)
Average yearlywage

Age of workers

Males
K rooni
1937:
15-17 years___ . . . _
208.8
18-24 years. ___ . _ _ _
310.8
25-50 years___ _________
336.0
Over 50 years________ .
298.8
Averages, 18-50 years:
172.8
1933___________________
200.4
1934___________________
224.4
1935___________________
265.2
1936___________________
326.4
1937___________________

Summer contract (with board)

Average monthly
wage

Average yearly
wage

Average monthly
wage

Females

Males

Females

Males

Females

Males

K rooni

K rooni

17.4
25.9
28.0
24.9

K rooni

147.6
222.0
242.4
225.6

K rooni

12.3
18.5
20.2
18.8

K rooni

166.8
225.1
248.2
205.5

K rooni

140.0
166.7
167.4
131.8

25.8
35.2
40.6
32.4

23.3
26.9
27.4
22.2

128.4
141.6
157.2
192.0
234.0

14.4
16.7
18.7
22.1
27.2

10.7
11.8
13.1
16.0
19.5

121.5
142.8
163.4
195.1
237.9

90.2
103.8
116.0
137.8
167.0

19.5
22.7
26.2
30.9
38.1

14.7
16.6
18.4
22.3
27.1

Females

Wages paid day laborers in Estonian agriculture vary according to
season—seeding, haymaking, and harvesting. Table 2 gives the
range in day laborers’ wages (with board) according to season and
the average for the three seasons for the years 1933 to 1937.
T a b l e 2 . — Wages

of D ay Laborers in Estonian Agriculture, 1933 to 1937, by Sex and Year
D aily wage (with board)

Year

1933_______________________________________
1934_______________________________________
1935_______________________________________
1936________________________________________
1937____ ____________ _____________________

Range, according to season

Average (3 seasons)

Males

Females

Males

Females

K rooni

K rooni

K rooni

1.11-1. 34
1. 30-1. 55
1. 47-1.80
1. 74-2.14
2.08-2. 53

0. 83-1.07
. 98-1. 25
1.10-1. 40
1. 31-1. 72
1.57-2.03

K rooni

1.21
1.39
1.60
1.90
2.29

0.95
1.10
1.30
1.49
1.80

Herders are paid according to age. Average wages (with board)
for the summer season and per month in 1937 were 108.9 krooni and
19.9 krooni, respectively. Herders up to 15 years of age received
77.0 krooni per summer season and 16.9 krooni per month; 15 to
17 years of age, 127.1 krooni and 20.6 krooni; and those over 17
years of age, 140.9 krooni and 22.5 krooni.
Monthly wages, according to contract, of agricultural laborers and
general cost-of-living indexes are given in table 3 for the years 1933
to 1937.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

415

Wages and Hours of Labor

T a b l e 3 . —Monthly Wages of Agricultural Laborers and Cost-of-Living Indexes in

Estonia, 1933 to 1937
M onthly wage (in krooni) of laborers on—
Yearly contract

Year

Males

Females
10.7
11.8
13.1
16.0
19.5

14.4
16.7
18.7
22.1
27.2

1933
__________________
1934
- _____________
1935
_________________
1936
_______________
1937_________________________

D ay work

Summer contract

88
87
88
98
104

22.8
26.4
31.2
35.8
43.2

29.0
33.3
38.4
45.6
55.0

14.7
16.6
18.4
22.3
27.1

19.5
22.7
26.2
30.9
38.1

Females

Males

Females

Males

General
cost-ofliving
index
(1913=
100)

IN D U S T R IA L W O R K E R S

There were partial increases in wage rates in Estonia in 1937, par­
ticularly in seasonal industries, such as the building trades and others.
In table 4 average hourly wages and hours of labor per day are
presented, according to size of establishment and by sex, for 1936
and 1937.
T a b l e 4 . —Average Hourly Wages and Average Hours Per D ay of Industrial Workers

in Estonia, 1936 and 1937
[Average exchange rate of Estonian sent in 1937=about 0.27 cent, U. S. currency]
Average hours of labor per day

Average hourly wages
1936

1936
Fe­ Males Fe­
Males males
males

S e n ti

S e n ti

S e n ti

S e n ti

37.4
34.9
30.9
24.1

24.3
21.3
19.5
14.7

40.5
37.6
33.0
28.3

25.8
23.5
20.8
15.6

Second half of-

First half of—

1937

Industrial enterprises
employing—

1937

1936

1937

Fe­ Males Fe­ Males Fe­ Males Fe­
Males males
males
males
males

8.06
8.10
7.91

7.91
7.73
7. 78

8.11
8.08
7.91

7. 79
7.91
7. 85

8.12
8. 05
7.96

7.84
7.99
7.79

8.14
8. 22
7.95

7.85
7.87
7.79

Average hourly wage rates of industrial workers in Estonia are
presented in table 5, for the second half of 1937, according to size of
establishment and by sex and industry.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

416

Monthly Labor Review—August 1939

T a b l e 5. —Hourly Wage Rates of Industrial Workers in Estonia, Second H alf of 1937,

by Sex and Industry
[Average exchange rate of Estonian sent=about 0.27 cent, U . S. currency]
Average hourly wage rate for enterprises em­
ploying—
Industry

Average, all industries_____________

20 workers or more

____ __________

Mines and quarries...____ _______________________
P eat_____________ _______________________ .
Oil shale mines_______ ______ __________
All o th e r s................ . . . _____ _. _____
Working of minerals___________ ___________ . _
Cement___________________________ .
Ceramic____ ____ ___________________ _
Glass___________________ ____ _____ . . .
All others________ __________ _____
M etal industry______________________
Machine building and repairing______________ . . .
Shipbuilding and repairing_______________
Railway and streetcar workshops________________
All others_______ ______ ______________________
Chemical______ ____ ________ _____________ .
Safety match...................................................................
Shale oil_________ ______ ______________________
All others________________ _______ ___________
Leather__________ ______________________
Rawhide_____________ . . ________ . .
Leather-goods manufacturing____________________
T ex tile..____________________ __________
Cotton___________ ______ ___________ ______
Wool__________ ______ _______________________
Flax_____________ .... ___________
Cotton-cloth weaving, rayon and knitted wear____
All others____________________________
Woodworking_____________ _______ _____ _____ .
Sawmills........ .............. ............ ........................
Plywood and furniture manufacturing___ ______
All others______________________________
_________
P a p er... ______ __________
Woodpulp and paper manufacturing_______ . . . .
Paper-goods manufacturing............................... .......
Piinting industry_______ ____________ ____ _______
Foodstuffs, spices and bevorages, manufacture of_____
Flourm ills__________________ . . .
Chocolate and candy manufacturing_____________
Slaughterhouses____ _______ _ . . . .
M alt factories and beer breweries________________
Tobacco.___ _____ ______________ _____________
All others_______ ______ _________
Wearing apparel_______________ ___________ .
Clothing_____________ _________ . . . . . .
Footwear_________________
Haberdashery and fashion goods____________ ____
All oth ers....................... .............. .
Building____________________
Construction and repair of buildings_____________
Exterior construction______ __________ _ ____
Public utilities____________________________
Electrical power stations____________________ . . .
Gas plants and water-supplv system s____________
Cleaning___________ ______ ___________

5 to 19 workers

Males

Females

Males

Females

S e n ti

S e n ti

S e n ti

S e n ti

41.2

25.8

33.6

21.2

44.8
45.7
45.1
30.0
40.5
38.2
37.9
45.9

29.9
35.2
26.8
23. 6
20.7
23.5
22.0
18.9

32.2
31.9

19.8
19.8
20.1
22.2
20.0
19.5

44.9
41.1
45.0
54.5
41.5
38.0
47.0
37.7
38.5
35.9
37.5
25.8
34.6
33.6
34.0
31.6
41.1
35.8
39.5
34.0
44.7
37.4
39.6
39.7
37.8
48.4
38.1
36.2
39.7
37.4
37.9
40. 7
37.7
44.2
46.7
51.3
30.3

26.1
24.9
22. 8
35.3
26.0
27.2
32. 3
23.0
27.2
22.5
22.4
23.0
26.6
27.6
26.0
23.1
29.1
25.7
25.8
20.2
29.8
19.5
26.5
27.8
24.3
31.5
21.3
20.6
18.3
23.3
22.9
27. 8
20.9
24.5
24.7
27.8
20.7

37.8
43.7
35.1
36.0
40 1
34.6
35. 8
34.1
48.2
33.8
37.8

19. 8
22.2

37.8
30.5
33.1
22.5
31.8
39.1
31.8
41.3
34.1
27.3
31.4
26.8
34.1
34.4
29.3
27.5
30.9
32.5
31.5
32.3
41.2
46.4
41.7

22.2
17.1
20.6
14. 9
22.3
29.3
20.9
17.2
26.4
19.9
21.1
17.4
30.8
19.4
20.3
18.1
20.3
21.2
20. 5
21.2
20.2
27.7
20. 7
20.4
22.1
23.1
22.0
17.6

41.7
42.4
40.7
44.9
43.3
50.4
37. 5

23.5
21.8
25.8
34.4
34.4

30.6
39.3
41.8
40.6
25.7
35 7
39.7
39.4
39.9
39 8
33. 6
67. 7
35.3

21.0

19.8

2

s! o
22.9

21.0

T R A N S P O R T A T IO N

Hourly wage rates of transportation workers (except railways and
shipping) and of street-railway employees are given in table 6.
These rates are for July 1937 and are shown by occupation and sex
for the cities of Tallinn and Tarty.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

417

Wages and Hours of Labor
T a b l e 6 . —Hourly Wage Rates of Transportation

Workers (Except Railways and
Shipping) and Street-Railway Workers in Estonia, July 1937
Hourly wage rates (in senti)
Occupation

Tarty

Tallinn

Females

34.0

43.1
Streetcars:

Males

Females

Males

23.9

53.5
31.6
45.2
40.6
30.5
64.0
40.9
31.8

18.7

30.8

35.3
21.6
26.0

Wages in Finland 4

The labor legislation of Finland provides for an 8-hour day and a
48-hour week for practically every branch of labor with the excep­
tion of shipping, household work, and agriculture.
A worker is entitled to a 4-day vacation with full pay after 6
months and to 7 days with full pay after 12 months. Full wages
are also paid for December 6, the Finnish Independence Day.
A maximum of 350 hours of overtime per year may be worked by
employees over 18 years of age. Time and a half is paid for the first
2 hours and double time for subsequent hours of overtime. Double
time is paid for Sunday and holiday work.
A G R IC U L T U R E

Of the farm laborers paid by the year, over 80 percent receive
board; the remainder, in addition to board, receive payment in kind
as well as cash wages. Practically all the female workers belong to
the latter group. Payment in kind consists chiefly of wearing apparel,
but in some cases also food products, land for cultivating potatoes,
and grazing rights. In table 7, payments in kind calculated at
current prices, but not board, are included in the wages.
T a b l e 7. —Average Annual Wages of Farm Workers in Finland, by Sex, 1936-37 and

1937-38
[Average exchange rate of markka in 1937 and M ay 1938=2.2 cents]
Without board

W ith board
Occupation and sex

Males:
Foremen------------ --------- ---------------Hired men_________________________
Females:
Barn maids_____ _____ _______ M aids-. _______ _____ _______ _ --Housekeepers_________ _______ _____

1937-38

M ark k a a

M arkkaa

6,590
3, 357

7,886
4, 328

19.7
28.9

4,090
2,483
3, 567

4,899
3,151
4,038

19.8
26.9
13.2

< Report of B. Reath Riggs, American Consul at Helsinki.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Percent
of
increase

1936-37

1936-37

1937-38

M arkkaa

M arkkaa

11,916
7, 569

13,037
8,974

Percent
of
increase
9.4
18.6

418

Monthly Labor Review—August 1939

The data contained in table 8 cover farm workers who are paid
largely in kind, receiving in most cases lodgings, heat, light, and
provisions, but not wearing apparel, as in the case of workers paid
principally in money. The estimated value of payments in kind, as
well as average annual total wages for these workers in 1936-37, are
shown in the table.
T a b l e 8.

Average Annual Wages of Farm Workers in Finland, and Estimated Value
of Payments in Kind, 1936 and 1937

__________________[Average exchange rate of markka in 1937 and M ay 1938=2.2 cents]
Average annual money
wages of workers paid
largely in kind

Average annual wages in 1936-37

Occupation and sex

Paym ents in kind
Percent
1936-37 1937-38 of in­
Total
crease

Males:
Foremen ___ _
Hired men . . . . . .
Females:
Barn m a id s.. ______
M aids. ___________

Cash

Lodgings, Other
heat, and
benefits Total
light

M a rk kaa

M arkkaa

6,974
3,874

M arkkaa

7, 540
4,485

M a rk kaa

8.1
15.8

13, 502
9, 594

6,974
3, 874

1,894
1,618

4, 634
4,102

6, 528
5, 720

5,543
3, 629

6,296
4,152

13.6
14.4

8,921
6, 675

5, 543
3,629

1,138
823

2, 240
2,223

3,378
3,046

M arkM a rkkaa

Average payments in kind to farm workers in Finland in 1936-37
included grains, peas and potatoes, meats, salt herring, dairy products,
salt, hay and straw, and the use of land to raise potatoes, etc. In
all cases the quantities allowed to men were considerably higher than
those for women.
In table 9 average daily wages for farm workers are shown. The
month of February is taken as a basis for wages paid in the winter,
and the month of July for wages paid in the summer. Most of the
farm workers on a daily pay status receive board in addition to cash
wages.
T a b l e 9 . —Average Daily Wages of Farm Workers in Finland, 1936 and 1937
[Average exchange rate of markka in 1936 and 1937=2.2 cents]
1936

1937

Percent of increase

Daily wage—

W ith board:
M en__________ .
Women _
W ithout board:
M e n . . ______ _____
W omen_______ .

Winter

Summer

Winter

Summer

M ark k a a

M ark k a a

10.19
7.92

M arkkaa

17.69
10. 70

M arkkaa

12. 25
8.96

24.07
14.15

20.2
13.1

36.1
32 2

21.90
15.85

26.94
17.32

25. 22
15.44

32. 47
20. 27

15.2
11.5

20.5
17.0

Winter

Summer

LOGGING

The logging industry in Finland is divided into 14 districts. For
each of these districts, the Lumbering Wage Division of the Ministry
of Communications and Public Works, in cooperation with employers
and workers, fixes the daily wage standards to correspond with the


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

419

Wages and Hours of Labor

cost of living in different parts of the country. These standards are
obtained by fixing the unit prices for different types of work performed,
such as cutting and barking 1 cubic meter 6 of pulpwood, pit props,
etc., and by adding up the average amount of work that an expe­
rienced and able-bodied lumberer or timber hauler accomplishes under
normal conditions in an 8-hour day. The present unit price for
cutting and barking a cubic meter cord of pulpwood or pit props of
more than 10 centimeters 6 in thickness, ranges from 15.00 to 21.00
markkaa, and of less than 10 centimeters in thickness, from 22.00 to
31.00 markkaa, depending on the logging district. Lumberers
engaged in cutting sawlogs are paid from 0.45 to 0.80 markka per
cubic foot of barked log and from 0.30 to 0.55 markka per cubic
foot of unbarked log. Timber haulers receive from 0.45 to 0.80
markka per cubic foot for the first kilometer 7 and 0.10 markka
more for each additional kilometer. The actual earnings (see table 10)
usually exceed the standard wages, since lumbering and timber haul­
ing is piece work and 10-hour days are not uncommon. Lumberers
and timber haulers and their horses are usually provided with lodgings
by the logging companies during the logging season.
Inspectors appointed by the Lumbering Wage Division for the 14
logging districts see that the unit prices fixed in an agreement approved
by the employers and workers are observed. Should the daily earn­
ings in some district fall below normal, immediate measures are taken
to increase the unit prices for work in that district.
Table 10 gives the standard wages and actual average daily earnings
for lumberers and timber haulers (man, horse, and equipment).
T a b l e 10. — Standard Wage and Average Actual Earnings Per Day in Logging Industry

in Finland, 1937 and 1938
[Average exchange rate of markka in 1937 and M ay 1938=2.2 cents]
Standard wage per day

Actual average earnings
per day

Occupation
1937
M arkkaa
Country as a whole:
32.88
Lumberers,-........ — --------- ---------------- Timber haulers (man, horse, and equip­
80. 54
m ent)...................... - ...................................—
14 districts:
Lumberers, .......................... - ----------------- - - - 30.00- 45.00
Timber haulers (man, horse, and equip­
m ent)-------------- --------- ------------------------ 67. 50-123. 75

1938

1937

1938

M arkkaa

M arkkaa

M ark k a a

38. 51

39.81

47.06
124.01

112.36

97.99

32. 34- 51.37

37.00- 52.00

42.18- 60. 38

94. 31-152. 33

92. 50-130. 00

106. 44-160. 22

It appears from the above figures that the average daily earnings
of lumberers during the winter of 1937-38 were 22 percent higher,
and of timber haulers 10 percent higher, than in 1936-37.
Figures giving the average earnings of timber floaters are not
available, but their hourly wage standards in 1938 ranged from 5.25
» Cubic m eter= 1.308 cubic yards.
6 Centimeter=0.3937 inch.
7 Kilometer=0.62137 mile.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

420

markkaa in the Lapland district to 3.75 markkaa on the southern
coast. The corresponding maximum and minimum standards for
1937 were 5.00 and 3.50 markkaa, respectively.
V A R IO U S IN D U S T R IE S

Wage statistics in Finland are based on data provided by employers’
federations and are somewhat influenced by the fact that in some
industries information is not available for small companies not affil­
iated with these federations. Furthermore, the level of wages is
also largely dependent on the relative cost of living in the different
communes in which the industries are located. Table 11 gives both
hourly wages and average yearly earnings in specified industries for
able-bodied workers over 18 years of age, by sex, for 1936 and 1937.
The figures include overtime and piece-work pay as well as payments
in kind and other benefits. It is also noted that since the cost of
living, according to official index figures, was 5 percent higher in
1937 than in 1936, the purchasing power of earnings did not increase
as much as the figures in the table would indicate.
T a b l e 1 1 . —Average Hourly Wages and Yearly Earnings of Industrial Workers in Finland,

by Sex and Industry, 1936 and 1937
[Average exchange rate of markka in 1936 and 1937 = 2.2 cents]
Males

Females

Industry
1936

Percent
of in­
crease

1937

1936

1937

Percent
of in­
crease

Average hourly wages
M arkkaa M arkkaa

M a rk k a a M ark k a a

Blast furnaces and metal works- _____________
Machine shops---- ----------------- ------------- -----China and pottery factories--------------------------Spinning and weaving industry_____________ _
Woolen m ills__________ ______ ________
Cotton mills- - ______ - ______ _______
Linen m ills__________________ _________
Hosiery factories_________________ -------Pulp and paper m ills______
___ - -----------Mechanical pulp and cardboard mills--------Sulphite m ills_____ ____
. _ _ _ ------Sulphate mills_____- . . _____ . . . -----Paper m ills_______ ___ _ ____________
Sawmills and planing m ills____ ____________
Sugar refineries___________ __ - __________

5.81
7.45
9. 06
6.93
6. 75
6.97
7. 30
6.22
6.74
6.20
6. 65
7.25
6. 69
6.03
7. 59

7.07
8. 44
9.72
7. 34
7.10
7.46
7. 32
7.96
7. 57
7.18
7. 67
7.92
7.49
6.83
7.94

21.7
13.3
7.3
5.9
5.2
7.0
.3
28.0
12.3
15.8
15.3
9.2
12.0
13.3
4.6

3. 55
4. 73
5.27
4.08
4.16
4.02
4. 23
4.90
3.46
3. 33
3.74
3. 61
3. 29
3.20
4. 56

4.38
5. 32
5.60
4.37
4.40
4. 35
4. 38
5.08
4.01
3.97
4.28
4.13
3.82
3.63
4.81

30.7
12.5
6.3
7.1
5.8
8.2
3.5
3.7
15.9
19.2
14.4
14. 4
16.1
13.4
5.5

Average yearly earnings
M ark k a a M a rkkaa

Blast furnaces and metal works------------------ Machine shops___
_ ________ _______
China and pottery factories___
. . ____ _ _
Spinning and weaving industry_____ _______
Woolen m ills____ _______
- .-Cotton m il ls ____
. . . . ------- -----Linen m ills-.- . . . . . ______ - ________ _
Hosiery factories______. . . ________ _
_____
Pulp and paper m ills_________________ ______
Mechanical pulp and cardboard mills--------Sulphite mills
.......... _
Sulphate mills___ _____________________
Paper m ills.
___________________
. Sawmills and planing m ills_________
_______
Sugar refineries______________________________


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

14, 410
17,960
22,447
16, 417
15,840
16, 630
16,831
14, 250
17,097
15,956
17, 388
18, 283
16,918
13, 879
18, 584

16,488
20, 628
23, 843
17,623
17, 072
17,929
17,411
18,907
19, 239
17,881
19, 586
20, 048
19.197
15, 656
19, 415

M a rk k a a M ark k a a

14.4
14.9
6.2
7.3
7.8
7.8
3.4
32.7
12.5
12.1
12.6
9.7
13.5
12.8
4.5

8,615
11,108
11, 207
9, 061
9,436
8,816
9, 650
11,055
8, 597
8,572
9, 296
8,955
8,116
7,151
10, 356

10, 219
12,792
12,997
9,932
9,889
9,902
10, 375
11, 546
9,802
9, 716
10,637
10,075
9,284
7,843
11,172

18.6
15.2
16.0
9.6
4.8
12.3
7.5
4.4
14.0
13. 3
14.4
12.5
14.4
9.7
7.9

Wages and Hours of Labor

421

ST R E E T -R A IL W A Y A N D M O T O R BU S W O R K E R S

Below are given the monthly wages paid in August 1938 by the
municipally owned street-railway and omnibus company operating in
Helsinki.
W ages per

.

.

W ages per
m o n th

Conductors:
(m a r k k a a )
Motormen and bus drivers:
(m a rk k a a )
Basic salary_______________ 1,200
Basic salary______________ 1, 900
After 1 year’s service_______1, 300
After 1 year’s
service___ 2, 000
After 3 years’ service_____ 1, 400
After 3 years’
service__2, 100
After 6 years’ service______ 1, 525
After 6 years’
service__2, 250
After 9 years’ service_____ 1, 675
After 9 years’
service__2, 450
Charwomen (for 4 hours’ work at
night)_____________________
800

Hourly wages paid by the company to painters, carpenters, welders,
joiners, switchmen, tracklayers, and other workers range from 9.00
to 12.00 markkaa.
The wages paid by the municipally owned street-railway companies
in Turku and Viipuri are somewhat lower than in Helsinki.
Other bus and trucking companies.—The monthly earnings of bus
drivers employed in different parts of the country vary from 1,100 to
2,000 markkaa and the weekly earnings from 300 to 500 markkaa.
The conductors, usually women or young boys, are paid between 700
and 900 markkaa per month. In addition, drivers and conductors
of long-distance busses usually have free meals when they are on the
road.
Truck drivers are paid from 1,500 to 2,200 markkaa per month or
from 400 to 600 markkaa per week. Those employed on the hourly
basis get from 8.00 to 10.50 markkaa. A leading local cooperative
wholesale association is now paying its truck drivers from 2,000 to
2,100 markkaa and the assistants from 1,800 to 1,900 markkaa per
month.
That truck drivers in general are better paid than bus drivers is
attributed to the fact that they enjoy no benefits beyond their wages
and are better organized than bus drivers.
s e a m e n ’s w a g e s

Table 12 gives the wages of crews on Finnish engine-driven vessels
engaged in overseas traffic. The wages were fixed by an agreement
between the shipowners and the Seamen’s Union on September 1,
1937, effective until September 1, 1938.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

422
T able

Monthly Labor Review—August 1939
12.—Monthly Wages of Seamen on Finnish Engine-Driven Vessels in Overseas
Traffic, 1937-38
[Average exchange rate of markka in 1937-38=2.2 cents]
Wage per month
Class

Carpenters.____ _____________
Boatswains__________________
Seamen:
Able-bodied______________
Ordinary_______________
Apprentice. _____________

Previ­
ous to
agree­
ment

Agree­
ment,
Sept. 1,
1937-38

M arkkaa

M arkkaa

1, 225
1,150

1,430
1,350

950
750
475

1,150
900
560

Wage per month
Class

Previ­
ous to
agree­
ment

Agree­
ment,
Sept. 1,
1937-38

M ark k a a M a rk k a a

M otormen. ___ _______ _____
Firemen, senior.. __________
Firemen, junior_______

1,150
1,020
1,020
1,000
850
760

1,350
1,200
1,200
1.150
1.150
900

The monthly wages of stewards ranged from 1,900 to 2,400 markkaa
and of cooks from 1,250 to 1,550 markkaa, depending on the size of
the crew. The corresponding wages of stewardesses ran from 1,100
to 1,200 markkaa and of woman cooks from 900 to 1,000 markkaa.
The working day of deck and engine-room crews is fixed at 8%
hours, of which a half hour is devoted to clearing up and cleaning after
the ordinary 8-hour day. The working day of stewards and cooks is
10 hours on freighters, with a maximum of 12 hours on passenger
vessels.
The overtime pay on week days is }{50 of the monthly wage and
on Sundays y75 of the monthly wage. In loading and discharging the
overtime pay after the first 2 hours is hs of the monthly wage.
B U IL D IN G T R A D E S

Minimum hourly wages in the building trades in Helsinki are shown
in table 13, effective from April 1,1938, to April 1, 1939, according to
the collective agreement.
T able

13.—Minimum Hourly Wages in the Building Trades in Helsinki, Finland,
A pril 1938-39
[Average exchange rate of markka in 1937-38 = 2.2 cents]

Occupation

Minimum
hourly
wage,
according
to ability

Carpenters working on scaffold_______
Carpenters performing other work___
Bricklayers____ ______ _______ ______
Brick carriers.............................................
Helpers.......... ....................... ......................
Women carrying mortar____________
Women otherwise em p lo y ed ,................
Cement workers.................. ......................
Plasterers................... ..................................
Concrete workers...................... ..............
Helpers......................... ..............................
Concrete mixers.........................................
Winch operators.......... ................. ...........
Asphalt layers........................................
Asphalt cookers________ _______ ____
Asphalt carriers........................................

10.00-11.00
11.00-12.00
11.00-12.00
9. 50-10. 50
7.65- 8. 50
7.00- 7. 50
6.00- 6.30
11.00-12.00
11.00-12.00
11.00-12.00
9.00-10.00
8.25- 9.25
8.40- 9. 50
11.00
10.00
8.40

M a rkkaa


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Occupation

Minimum
hourly
wage,
according
to ability
M arkkaa

Helpers____________________________
8.25
Stonecutters______________ _________ 12.00-13.00
Drillers............................. .................
12.00
Apprentices_____________________ _
9. 50-12.00
Helpers__________________________
8. 25- 9.00
Drivers, trucks of—
2,000 kg. or more:
With h e lp e r ________________
43.00
Without helper_____________
36.00
Less than 2,000 kg.:
W ith h e lp e r ...... ........................
37.00
W ithout helper______ _______
30.00
Drivers, truck, not driving own trucks. 9. 50-10. 50
Helpers....................... .................... ..........
7. 50- 8. 50

423

Wages and Hours of Labor
P R IN T IN G A N D P U B L IS H IN G

Table 14 gives the hourly minimum wages of printers and certain
other workers in printing and publishing trades as fixed by collective
agreements in Helsinki, Viipuri, and various other localities where
the cost of living is highest in Finland. The difference between the
minimum wages paid in districts where the cost of living is highest
and districts where it is lowest is about 20 percent.
T a b l e 14. —Minimum Hourly Wages in Printing and Publishing Trades in Finland,

by Occupation
[Average exchange rate of markka in December 1937=2.2 cents]
Minimum
hourly wage—

M inimum
hourly wage—
Occupation

Occupation

Since
Before agree­
agree­ ment,
Dec.
ment
1,1937

M a rk kaa

M a rk kaa

M a rk kaa

Printers___________ ________ __ __
Apprentice printers:

8.50

9. 61

Lithographers, offset
printers,
chemigraphers, and rotagravure

Third year______________ ____

2.13
2.81
3. 74
5.10
7.14

2.40
3.17
4.23
5. 77
8.07

Bookbinders 1________ ____ ______
Bookbinders, women:

2.40
3. 60
4.80
6.00

2.71
4.07
5. 42
6. 78

Plate printers:
Second year__________________
Third year and thereafter_____
Special work______ . . . ______

Since
Before agree­
agree­ ment,
ment Dec.
1,1937

Third year____ ______ ______ _
Fourth year and thereafter____

M arkkaa

8. 50
8.50

9. 61
9. 61

2.10
2.55
3.40
5.05

2.37
2.88
3.84
5.71

1 Apprentices—wages are same as those for apprentice printers.

Wages in Latvia 8

The worldng day of the industrial workers in Latvia is fixed at 8
hours and on Saturdays at 6 hours. Farm hands, ship crews, domestic
servants, hospital employees, teachers, policemen, and employees of
prisons are not subject to the 8-hour law, their working hours being
covered by special regulations.
Wage statistics represent hourly rates, and no figures are available
indicating the earnings of piece workers. However, it is understood
that the greater part of the piece work, especially in the manufacturing
industries, is paid for in the form of bonuses, in addition to hourly
wages, to workers who produce over a certain standard amount.
Such additional earnings are included in the figures covering average
net earnings per hour. In general, piece work is done whenever that
basis is applicable. In Latvia it is common in some types of unskilled
labor, such as logging, loading, and carting, as well as in skilled labor.
8 Report of Allan Lightner, Jr., American vice consul at Riga.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

424

Monthly Labor Review—August 1939

Overtime pay, including work on Sundays and holidays, is legally
provided for on a percentage basis. Work may be done on Sundays
and holidays only when such agreements have been made between the
workers and their employers. Workers under 18 years of age may
not work over 8 hours on ordinary weekdays and 6 hours on Saturdays.
The rates of basic-wage increases for overtime are as follows: First 2
hours on weekdays (after the eighth hour on ordinary weekdays and the
sixth hour on Saturdays), 50 percent additional; first 2 hours on Sun­
days and holidays, 75 percent additional; and third and subsequent
hours (all days), 100 percent additional.
Family allowances are paid to the employees of Government and
municipal organizations, including the State railways and Riga Munici­
pal Street Railways, but not the Government-controlled industrial
enterprises. The allowances amount to an increase of 8 percent of the
worker’s basic wage for each child under 17 years of age, or under 19
if attending school. The amounts paid are as follows:
F a m ily a llo w a n c e
p e r m o n th ( l a t s )

First child____________________________
9-15
Second child___________________________________ 12-15
15
Third and subsequent children__________________

Agricultural workers who are married and permanently employed
as farm hands receive family allowances for children under 10 years
of age.
Sickness insurance is compulsory in Latvia and is administered
under Government supervision by sickness-insurance societies. Un­
der the law of July 10,1930, it is applicable to all employees of private,
Government, and municipal institutions and enterprises, as well as
to employees of individuals. Total contributions amount to 7 percent
of wages, of which 2 percent is deducted from workers’ wages, em­
ployers contribute at the rate of 4 percent, and the Government 1
percent. Workers earning less than a minimum wage fixed by the
Ministry of Welfare are not required to contribute. They are en­
titled, however, to benefits based on the minimum wage.
In addition to deductions for sickness insurance, industrial wages
are also subject to deductions for an unemployment fund, used to
provide employment on various public-works projects. The deduc­
tions amount to 1 percent on wages not exceeding 200 lats a month, and
2 percent on wages over that amount. Employers are required to
contribute an equal amount to this fund.
IN D U S T R IA L W O R K E R S

Wage rates in Latvia have increased during the past 3 years, but
real wages are slightly lower than 3 years ago, as the cost of living
has gone up more rapidly than wages. According to official index
figures the average hourly net earnings of industrial workers in Riga

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

425

Wages and Hours of Labor

in February 1938 were 10.4 percent higher than in the same month
of 1936. The cost-of-living index for workmen in Riga in February
1938 was 16.5 percent higher than in February 1936.
Indexes of net earnings and the average actual net earnings of
skilled and unskilled laborers in all industries, are shown in table 15.
T able

15.—Average N et Earnings Per Hour in Latvian Industry, and Indexes Thereof
(Riga), 1936 to 1938, by Class of Worker
[Average exchange rate of lat in February 1938 and February 1939=about 19 cents]
Index, average net earn­
ings, Riga (1930=100)

Class of worker

Average net earnings per hour in—

Riga (20 or more
workers)
Febru­ Febru­ Febru­
ary
ary
ary
Febru­ Febru­ Febru­
1938
1936
1937
ary
ary
ary
1938
1936
1937
L a ts

Skilled, male____ . _____
Skilled, female____________
Unskilled, male_____
Unskilled, female_________

76.2
88.6
81.4
93.9

77.4
88.6
81. 4
93.9

84.5
100.0
89.8
106.1

0. 64
.39
.48
.31

L a ts

0. 65
.39
.48
.31

L a ts

0.71
.44
.53
.35

Provinces (15 or more
workers)
Year
1936

Year
1937

Febru­
ary
1938

L a ts

L a ts

L a ts

0.46
.25
.39
.23

0. 56
.27
.45
.24

0. 58
.30
.47
.26

The cost-of-living index (1930 = 100) for workmen in Riga was 68
in February 1936, 71 in February 1937, and 80 in February 1938.
Corresponding figures for workers in the Provinces are 73, 78, and 89,
respectively.
Hourly net earnings for the month of February 1936 to 1938 are
given by occupation in table 16.
T able

16.—Average Hourly Earnings in Latvia, Month of February, 1936-38, by
Occupation

Occupation

Average hourly
earnings in
February—
1936
Lat

Locksm iths. _____________
0. 56
Lathe w orkers_______ _____ .65
.55
Electricians_________________
.59
Carpenters______ _ _______
Blacksmiths.
____________
.67
.46
Kettlesm iths________________
Painters______ ______________ .55
D y e r s ........................................... .51

1937

1938

Lat

Lat

0. 57
.65
.58
.58
.69
.50
.54
.52

0. 64
.70
.65
.65
.74
.52
.54
.54

Occupation

Average hourly
earnings in
February—
1936
Lat

Engine operators____________ 0. 53
.81
Mechanics__________________
.67
Molders____________________
.81
Assemblers, m a c h in e ________
Coopers.._ ___________ . . _ .71
.62
Bricklayers _______ ______
.53
Joiners.
_____________
.52
Tinsmiths ________________

1937

1938

Lat

L at

0. 56
.90
.68
.79
.81
.61
.51
.61

0. 66
.87
.72
.82
.78
.75
.60
.63

Average hourly wage rates and average hourly earnings, as of Feb­
ruary 1938, are given in table 16 for specified industries by occupation,
skill, and sex.

163839— 39-----------11


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

426
I a b l e L7.

Monthly Labor Review—August 1939
Average Hourly Wage Rates and Average Hourly Earnings in Latvia, as of
February 1938, by Industry

Aver­ Aver­
age
age
Industry, occupation, skill, and sex hourly hourly
wage earn­
rates
ings
B u il d in g tr a d e s :
S k ille d w o r k e r s __________
U n s k ille d w o r k e r s —
M a l e _________________
F e m a le _______________
A p p r e n ti c e s ______________
P l u m b e r s ________________
E l e c t r i c ia n s ______________
C a r p e n t e r s _______________
P a i n t e r s __________________
B r ic k la y e r s _______________
J o i n e r s __________ _____ ____
C h e m ic a l i n d u s t r y : i
S k ille d w o r k e r s —
M a l e _________________
F e m a le _______________
U n s k i lle d w o r k e r s —
M a l e _________________
F e m a le _______________
W o r k e r s u n d e r 18 y e a r s —
M a l e _________________
F e m a le _______________
F o o d s tu f f s :
S k ille d w o r k e r s . ________
U n s k i lle d w o r k e r s —
M e n __________________
W o m e n _______________
B o y s __________________
G i r l s __________________
L e a th e r in d u s tr y : i
S k ille d w o r k e r s ___________
U n s k i lle d w o r k e r s —
M a l e _________________
F e m a l e . . _____________
T a n n e r s ___________________
M e ta l i n d u s t r y : 1
S k ille d w o r k e r s —
M a l e _________________
F e m a le _______________
U n s k ille d w o r k e r s —
M a l e _________________
F e m a le _______________
W o r k e r s u n d e r 18 y e a r s —
M a l e _________________
F e m a le _______________
A p p r e n t i c e s . . . . __________
L o c k s m ith s _______________
E l e c t r i c ia n s _______________
B la c k s m it h s ______________
K e t t l e s m i t h s _____________
A s s e m b le r s , m a c h i n e _____
M e c h a n i c s ________________
P l a n e r s ____________________
M o ld e r s ___________________
P o lis h e r s __________________
L a t h e w o r k e r s _____ ______
C a s te r s - m o ld e r s ___________
P a p e r in d u s tr y : i
S k ille d w o r k e r s ___________
U n s k i lle d w o r k e r s —
M a l e __________________
________ F e m a le ________________

Lats

0. 63

Lats

0. 65

.48
.29
.28
.71
.57
.58
.53
.74
.57

.51
.30
.28
.77
.57
.60
.51
.76
.58

.65
.56

.74
.65

.46
.59

.29
.42

.35
. 3S

.24
.27

.68

.72

.47
.29
.28
.24

.50
.32
.27
.24

.62

.70

.47
.32
.64

.62
.37
.71

. 59
.48

. 67
.50

.44
.30

.51
.33

.27
.20
.21
.56
.63
.58
.53
.59
.72
.57
.65
.58
.61
.57

.30
. 19
.23
.63
.63
.77
.52
.69
.71
.68
.72
.62
.69
.80

.49

.55

.27

! 29

Aver­ Aver­
age
age
Industry, occupation, skill, and sex hourly hourly
wage earn­
rates
ings
Paper industry—Continued.
Workers under 18 years—
M ale. . . . . . .
Female. _____
Apprentices.. . . .
Printing and publishing:
Skilled workers—
M ale. . .
Fem ale.. . . . . _
Unskilled workers—
M ale_____ _
Fem ale.. ______ _
Workers under 18 years
Apprentices.. . . . .
Printers. . . . . . .
Typesetters, machine—
M a le ...
Female _ __
Typesetters, hand—
M ale_______
Female________
Binders________
Clickers_______
Sawmills:
Skilled workers. _
Unskilled workers—
M ale____.
Female ______
Textile industry:
Skilled workers—
M ale______
Female_______
Unskilled workers—
M ale_______
Female. ____
Minors—
Male . .
F e m a le ._____ . . .
Apprentices. ___ ._
Weavers—
M ale___________
Female________ . . . . .
Carders________________
Dyers______ . . . . . . .
Spinners—
M ale_________ _ _
Female_____________
Warpers____________
Fullers___________
Woodworking industry:
Skilled workers___ . . .
Unskilled workers—
M ale.. . . . . . . . . .
Female___________ . . . .
M inors.. _
A pprentices..
Reamers _ . . .
Planers.
Carpenters-. _____
___
Upholsterers______ ___ ____

L ats

L ats

0.24
.23
.28

0. 25
.23
.25

.96
.71

1.01
.84

.55
.40
.24
.29
1.01

.56
.40
.26
.29
1.03

1. 18
1. 23

1.50
1.35

.86
.78
.89
1.30

.88
.79
.88
1.33

.61

.69

.39
.26

.48
.32

.59
.34

.63
.44

.48
.33

. 50
.36

.28
.27
.27

.28
.29
.32

.77
.33
.51
.50

.63
.47
.52
.53

.57
.34

.60
.36
. 91
.54

.53
.61

.64

.43
.27
.27
.22
.69
.57
.59
.59

.53
.30
. 27
.22
.68
.56
.62
.61

1 Data relate to establishments employing 20 or more workers.

Plywood manufacturing, which forms the greater part of the wood­
working industry, is of considerable importance in Latvia’s foreign trade.
T R A N S P O R T A T IO N

Latvian railway employees are subject to the general labor regula­
tions governing additional remuneration and deductions. The aver­
age hourly earnings of railway workers, including overtime and bonuses

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

427

Wages and Hours of Labor

but not family allowances or sickness or unemployment deductions,
are 0.76 to 1.15 lats for skilled artisans and their assistants and 0.42
to 0.61 lat for laborers.
Table 18 gives the basic monthly wage as well as certain bonuses
for specified classes of railroad workers.
T a b l e 18. —Monthly Wages and Bonuses of Specified Classes of Railroad Workers in

Latvia

Basic
monthly
wage

Occupation

M onthly bonus based
on—
Distance
traveled

Oil and fuel
saving

L a ts

L a ts

L a ts

144-222
111-156
103-120
60-94
144-206
144-206
111-121
88-103

45-69
32-42

144
131
121
111
103

52
52
46
45
45

Chief conductors:

Total
monthly
earnings

L a ts

208-320
159-216
103-120
60-94
144-206
144-206
111-121
88-103

19-29
16-18

196
183
167
156
148

Average monthly earnings of employees in motorbus and streetcar
services are shown in table 19 for 1938.
T a b l e 19. —Average Monthly Earnings of Employees in Motorbus and Streetcar Services

in Latvia, 1938, by Occupation
Average
monthly
earnings

Occupation
Motorbus service:
Ticket inspectors____
Bus-repair shops:

L a ts

- ---------

Unskilled workers_______
Minors______ _____ ______ ____

160
90
170
160
100
60

Average
monthly
earnings

Occupation
Streetcar service:
Conductors--- -- -------------

L a ts

--

-

Ticket inspectors----------- -------- -Foremen, shops------ -----------------Line workers, skilled- ...
Line workers, unskilled.
Unskilled labor, other..

-----_
- -

141
142
200
240
176
155
128
118

A G R IC U L T U R E

Farm hands receive board and lodging in addition to their money
wages, and often certain payments in kind are also made. The figures
below indicate the average money wages paid to farm hands in 1936
and 1937. Figures for 1938 are not reported, but it is stated that
wages were about 10 percent higher than in 1937.
1936

Annual workers:
Males---------Females____________________________________
Seasonal workers:
Males______________________________________
Females____________________________________
Shepherds, both sexes— __________________________

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1937

(-lats'>
340
260

(lats'>
372
283

230
176
114

258
196
121

428

Monthly Labor Review—August 1939
W ages in Lithuania 9

The average working day in the manufacturing industries in Lith­
uania is 8 hours and the working week 48 hours. The minimum work­
ing week in factories is 4 days as provided by the Government regu­
lations.
The average daily wages of unskilled industrial workers on July 31,
1937, are shown below, by sex.
M a les
(lits)

1

Females
(lits)

Chemical industry____________________________ 7. 60
Hides and skins______________________________ 4. 25

3 . 15

Textiles---------------------------------------------------------- 5. 20
Lumber---------------------------------------------------------- 5. 55

4. 05
4. 55

Paper and printing___________________________

7. 35

4.50

Foodstuffs------------------------------------------------------- 4. 50
Electricity, gas, and water_____________________ 7. 25

3. 95

1 Average exchange rate of lit in February 1938 and December 1938=about 17 cents.

The average daily wages of skilled workers amounted to 8.75 lits.
The daily wages of a seasonal farm hand on May 1, 1938, amounted
to 2.40 lits for a man and 1.80 lits for a woman, including board, and
3.35 lits and 2.50 lits, respectively, without board.
Farm hands are hired at Christmas time for 1 year and receive
wages in cash and in kind, in conformity with an agreement. The
yearly wages of farm hands during 1938 are given below. The farm
hands are also provided with free clothing, board, and lodging.
Total yearly wages Cash wages
(lits)
(lits)

Male hands______________________________________ 332
310
Female hands____________________________________ 263
243
Junior male hands__________________________
220 203
Junior female hands____________________________
178
162
Shepherds_______________________________________ 118
101

Daily wages in the peat-extraction industry average from 5.50 lits
to 8.50 lits for unskilled males and from 3.00 lits to 5.00 lits for un­
skilled females. Machinists receive from 7.50 lits to 9.00 lits per day.
The following are thè monthly wages paid in Kaunas by the Rail­
way Administration of the Lithuanian Ministry of Communications.
Wages in the provincial districts are 10 percent lower.
L its per month

Locomotive engineers:
First class ___
Second class _
Third class _ __
Assistant locomotive
neers:
First class _
Second class. _ _

____
____
____
engi-

519. 00
476. 00
415. 00

____
____

337. 00
314. 00

L its per month

Firemen __
Conductors:
First class
Second class.
Third class.
Station masters:
First class
Second class.

8 Report of Vladimir K ublitzky, clerk of American Legation at Kaunas.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

277. 00
280. 00
240. 00
180. 00
540. 00
450. 00

Wages and Hours of Labor
Station masters— Con.
L its
Third class___________
Fourth class__________
Fifth class___________
Signalmen___________ _____

429

Baggage agents:
L i t s p e r m o n th
First class____________
300. 00
00
Second class__________
280. 00
00
Third class___________
240. 00
00
00 Unskilled workers_________14. 50-6. 00

p e r m o n th

380.
340.
300.
200.

i P er day.

Monthly wages paid to Kaunas municipal autobus employees are
given below. Wages in the Provinces are 10 to 15 percent lower.
L ito p e r m o n th

Drivers_______________________________________ 250. 00—270.
Conductors____________________________________ 210. 00-230.
Mechanics:
First class________________________________________ 300.
Second class______________________________________ 260.
Third class_______________________________________ 200.

00
00
00
00
00

The figures below show the wages per hour of specified classes of
skilled workmen in the building trades throughout Lithuania:
L its p e r h our

Bricklayers, first class____________________________________ 1-50
Bricklayers, second class--------------------------------------------------- 1-40
Electricians, ironmongers, and carpenters---- ------------- 1.60-1.70

An unskilled male laborer receives from 5.00 lits to 6.00 lits per day
and a female laborer, from 3.00 lits to 4.00 lits per day.
The following wages and salaries are paid to skilled workers in the
printing and publishing trades:
L i t s p e r m o n th

Linotypists_________________ 350-550
Engravers______________________ 350
Assistant engravers_______________ 300
Managers, printing room__________ 275
Compositors_____________________ 250

L its p e r d a y

Mechanics______________________
Stereotypists____________________
Stone polishers-____________—
Bookbinders--------------

9
9
5
5

Payment for overtime in general amounts to not less than 25 per­
cent of the basic daily wages, provided the rate has not been set forth
in the agreement concluded between the employer and employees.
No allowances for dependents or payments in kind are made in
Lithuania, except in the case of farm labor. Free housing is given
sometimes to watchmen and to one or two skilled indispensable work­
men in industrial enterprises. Every laborer after having worked 1
year under agreement is entitled to 12 days’ holiday with pay.
In conformity with an amendment to the income-tax law enacted
October 9, 1935, a tax on earnings has to be paid by all persons
except State employees. This tax varies from 2.00 lits for workmen,
either single or married, earning from 101 lits to 130 lits per month,
to 53.40 lits for single workers earning from 591 lits to 600 lits. The
rates are considerably lower for married persons with a family, the
reduction from the single rate amounting to as high as 50 percent
where the family consists of 7 or more persons. The income tax for

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

430

Monthly Labor Review—August 1939

individuals residing in the rural parts of the country is slightly higher,
due to the lower standard of living.
An employees’ sickness-insurance fund was created in 1928 to
provide for medical treatment, especially of the poorer classes. Mem­
bership in this organization is compulsory for all workers and em­
ployees, except farm laborers and State employees. Monthly con­
tributions, equal in amount, are made by both the employer and the
employee, according to wage classes, of which there are six. For wage
class I (daily wage, 4 lits; weekly wage, 24 lits; and monthly wage,
100 lits) the monthly payment to the sick fund is 5.40 lits. The
payments for each wage class are progressively higher, until for class
VI (daily wage, 12.01 lits and over; weekly wage, 73 lits and over; and
monthly wage, 301 lits and over) the payment to the sick fund is 21.60
lits. The maximum benefit allowed ranges from 3 lits for wage class
I to 14 lits for wage class VI.
An additional amount (10 percent of the monthly payments made
to the sick fund) is contributed in equal shares by the employer and
the employee to the Labor Chamber.
All State employees contribute 6 percent of their wages to a pension
fund. Furthermore, from 4.5 percent to 18.73 percent of the wages of
a married State employee are deducted for the special fund created to
balance the budget, the deduction of a single employee varing between
11.7 percent to 24.53 percent. These deductions apply to State
employees residing in Kaunas, Klaipeda, the Klaipeda Territory, and
abroad. The deductions made from wages of State employees residing
in the rural parts of the country vary from 9.5 percent to 23.73 per­
cent for married, and from 15.3 percent to 29.53 percent for single
persons. These rates became effective on April 1, 1937.
Tax deductions from wages amount to 10 percent; however, a
certain amount is exempt from taxation. In the case of a single
worker the exemption applies to all wages under 36.50 lits per week.
Ten percent of the amount exceeding 36.50 lits per week is subject to
taxation and is determined in accordance with the family status of the
worker. The result of this, in practice, is that married workers with
one child do not pay taxes.
Contributions for social, sickness, accident, old-age, and disability
insurance amount in all to 9 percent, 4% percent of which are paid by
the employer and the remaining 4% percent by the worker.
*###*#*#*

SALARIES IN CANADIAN F IR E D EPA R TM EN TS,
JANUARY 1939
AT THE beginning of 1939 the salaries of fire chiefs in 54 cities and
towns of Canada ranged from $1,560 in Prince Rupert, British Co­
lumbia, with a population of 6,320 to $7,500 in Montreal with a

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

431

population of 1,263,298. The salary schedule for assistant fire chiefs
ran from $1,344 in North Bay, Ontario, to $5,350 in Toronto. The
maximum pay of privates (firemen) was as low as $1,080 in Burnaby,
British Columbia, and as high as $2,086 in Toronto. Salary data for
various occupations connected with the fire departments in Dominion
cities are given in the following tables: 1
Salaries in Fire Departments in Canada, January 1939
Annual salary of—
City and Province

Popu­
lation

N um ­
ber
of
men Chief

975 $7,500
662 6,420
369 5,273
315 4, 218
196 4,000

D ep­
D is­
uty or trict or
bat­
assist­
talion
ant
chief
chief

Cap­
tains

$3, 500
5,350
3,164
2, 847
2,800

$3,000
3,263
2,414
2,531
2,200

$2, 260
2, 514
2,042
2,088
2,100

$2,080
2,247
1,896
2,000

1,634

1,539
2,060
2,000
1,806
1,851

1,443
1,957

1,600
1,751
1,800
1,446
1,405

1,765
1,500
1,624
1,612

1,664

1,926
1,560
1, 451
1,825
1,200

1,836

M o n tr e a l, Q u e .......... ..........
T o r o n t o , O n t ____________
V a n c o u v e r , B . C ________
W i n n ip e g , M a n _________
H a m i l t o n , O n t __________

1,263, 298
630,271
247,000
223,103
153,608

Q u e b e c , Q u e .........................
O t t a w a , O n t . ................... ..
W i n d s o r , O n t ___________
E d m o n t o n , A l t a .................
C a l g a r y , A l t a ....................

147,000
143,936
104,007
87,888
85,000

181
184
98
109
101

3,500
3,811
3,600
2,810
3,540

2,800
2,472
2,800
2,004
2,460

2,000
2,369
2, 250

Y o r k T o w n s h ip , O n t ___
L o n d o n , O n t ____________
S t. J o h n , N . B __________
S a s k a to o n , S a s k _________
T h r e e R i v e r s , Q u e ______

78,000
74,000
47,000
41,600
40,000

32
88
50
57
57

2, 800
3,620
2,000
2,388
2,340

2,500
2,374
1,740
1,799
1,820

2,000
2,058

V ic t o r ia , B . C ___________
E a s t Y o r k , O n t _________
S h e r b r o o k e , Q u e ________
B r a n t f o r d , O n t __________
B u r n a b y , B . C __________

39,082
38,108
31,832
31,439
28,000

77
10
34
28
12

3,066
1,878
2,600
2,000

2,220

S t. C a t h e r in e s , O n t ____
W e s t m o u n t , Q u e _______
K in g s to n , O n t __________
U s h a w a , O n t..___________
T i m m i n s , O n t __________

27,420
26,500
25,030
25,000
25,000

32
82
25
21
18

2,050
3,000
2,300
2,277
3,000

1,800
2,500
1,555

P o r t W i lli a m , O n t ______
P e te r b o r o u g h , O n t _____
S y d n e y , N . S ___________
G u e lp h , O n t ____________
P o r t A r t h u r , O n t _______

24,777
23, 619
23,000
21, 455
21,000
21,000
20, 600
19,000
18. 518
18,000
17, 500
17, 200
17,000
16,500
16,000
15, 649
14, 764
14,410
13,024
11,438
11,117
11,050
11,008
10,412
10,000
9,865
9, 300
7,000
6,320

41
22
53
21
29
34
42
14

2,700
2, 500
1, 900
2,350
2,490
2,124
3,133
1,600
2,400
2,160
2,000
2, 400
1,800
2, 500
2,042
1,680
1,800
1,900
1,800
1,700
3,840
2, 208
1,700
2,000
2, 400
2,000
2,100
1,800
1,560

M o o s e J a w , S a s k _______
N e w W e s t m i n s t e r , V . C.
N ia g a r a F a l l s , O n t ______
S u d b u r y , O n t ___________
S a r n ia , O n t ______________
B r a n d o n , M a n __________
S t r a t f o r d , O n t ___________
C h a t h a m , O n t __________
S t. T h o m a s , O n t _______
L e th b r id g e , A l t a ________
N o r t h B a y , O n t ------------B e lle v ille , O n t __________
G a l t , O n t _______________
O w e n S o u n d , O n t ______
W o o d s to c k , O n t ..............
F o r e s t H i l l , O n t ________
P r i n c e A l b e r t , S a s k _____
W e lla n d , O n t . . ..................
P e m b r o k e , O n t _________
M e d ic in e H a t , A l t a ..........
B ro c k v ille , O n t _________
N e ls o n , B . C ____________
N a n a i m o , B . C _________
P r in c e R u p e r t , B . C ____

22
22
19
18
17
21
12
20
16
13
15
16
11
8
13
10
11
7
4
7

Ï, 600
1,440

2,400
1,980
1,675
1,800
2,010
2, 209
1,770
1,900
1,800
1,344
1,410
1,400
1,460
2,303
1,450
1,389
1,860

1,600
1,460
1,700
2,220

1,731

$2,086

1,550

1,476

1,529
1,980
1,314
1,650

1,600
1,800
1, 596
1,896
1,580
1,800
1.650
1,550
1.650
1,560
1,600
1,740
1,260
1,248
1,350
1,300
1,369

1,450
1,356
1,816
1,525
1,680
1,590
1,400
1,550
1,230

2,041

1,800
1,620

eto rs

1,451

1,680
1,475

1,213
1,740
1,350

Firealu m
c per­

1,500

1,750
1,560

i International Fire Fighter, Washington, A. F. of L. Building, April 1939, pp. 7-16.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Lieu­
ten­
ants

1,680
1,300

1,205

432

Monthly Labor Review—August 1939
Salaries in Fire Departments in Canada, January 1939— Continued
A n n u a l s a la r y of—
P r i v a t e s (fire m e n )

C i t y a n d P r o v in c e
M a x i­
m um

M aster Engi­
m e­
chanics neers

T h ird
year

Second
year

F irs t
year

M o n tr e a l, Q u e . ________ _ $1,800
T o r o n t o , O n t ________
2,086
V a n c o u v e r . B . C . . . _ ___
1, 748
W i n n ip e g , M a n ____________
1, 719
H a m i l t o n , O n t ____ ________
1,850

$1,600
1,682
1,748
1, 561
1,850

$1, 500
1,553
1,610
1,423
1,850

$1,400
1, 553
1,471
1,265
1, 850

$2, 600
3, 263
2,381
2,214
2,100

Q u e b e c , Q u e _____ __________
O tta w a , O n t . . . . . . . . . . .
W i n d s o r , O n t ________ . . . .
E d m o n t o n , A l t a ...... ...........
C a lg a r y , A l t a _________ ______

1, 383
1, 751
1,800
1,632
1,611

1,248
1,648
1, 800
1,632
1, 557

1, 092
1,545
1,650
1, 530
1,405

936
1, 442
1,500
1,260
1, 291

1, 587
2,060
2,150
1,914
1,911

Y o r k T o w n s h ip , O n t . . . . .
L o n d o n , O n t ________________
S t. J o h n , N . B ____________
S a s k a to o n , S a s k ________ _
T h r e e R iv e r s , Q u e _____ _

1,

1, 550
1,625
440
1, 536
1, 300

1, 550
1, 625
1,440
1,492
1, 300

1, 504
1,424
L 320
1,269
1, 300

1,504
1,424
L 200
1,269
1, 300

1, 692
1, 500
1, 624

V ic to r ia , B . C ____ . _____
E a s t Y o rk , O n t . .
S h e r b r o o k e , Q u e ________ .
B r a n t f o r d , O n t- . .
B u r n a b y , B . C ___________

1, 695
1, 508
1,407
1,643
1,080

1, 567
1, 508
1,186
1, 551
1,080

1, 320
1, 508
1,075
1,460
1,080

1,080
1, 508
950
1, 369
960

S t. C a t h e r in e s , O n t .
W e s t m o u n t , Q u e ______ . .
K in g s to n , O n t . . ____ ______
T Jsh a w a , O n t ___________
.
T i m m i n s , O n t ______________

1,504
1,700
1, 205
1, 430
1,800

1, 504
1, 500
1,205
1, 430
1,800

1,387
1,400
1, 095
1,430
1,800

1,314
1, 300
1,095
1, 300
1, 500

F o r t W i lli a m , O n t ___ __ . .
P e te r b o r o u g h , O n t _____
..
S y d n e y , N . S ________________
G u e lp h , O n t ___________ ___
P o r t A r t h u r , O n t . . . ______

1, 600
1,400
1,320
1,400
1, 620

1,600
1, 400
1, 320
1, 400
1, 560

1,500
1, 225
1, 320
1,400
1, 560

1,440
1, 225
1,320
1,400
1,560

M o o s e J a w , S a s k ___________
N e w W e s t m in s te r , B . C ____
N ia g a r a F a ll s , O n t _______ .
S u d b u r y , O n t ______
S a r n ia , O n t ________ _______

1,284
1,750
1, 500
1, 560
1,560

1,284
1, 750
1, 500
1,560
1,500

1,224
1, 750
1,400
1, 440
1, 3S0

1, 140
1,750
1,400
1,320
1,245

B r a n d o n , M a n ____ . . . . .
S tr a t f o r d , O n t _____
C h a th a m , O n t
..
S t. T h o m a s , O n t ___ . . . . . . .
L e th b r id g e , A l t a __________

1,250
1,450
1,440
1, 500
1,543

1,250
1,300
1,440
1, 500
1,543

1,250
1,150
1, 300
1,375
1,543

1, 250
1,000
1, 200
1, 375
1, 543

N o r t h B a y , O n t _ _ _ ___ __ .
B e lle v ille , O n t _____ .
. _
G a lt , O n t _____ _____ ________
O w e n S o u n d , O n t . ________
W o o d s to c k O n t _________ . _

1, 200
1, 224
1,250
1,200
1, 314

1, 200
1,200
1, 250
1, 100
1,314

1,200
1, 200
1,250
1,050
1,241

1,200
1, 020
1. 250
1,000
1,186

F o r e s t H ill , O n t
P r i n c e A lb e r t , S a s k ___ . .
W e lla n d , O n t ______________
P e m b r o k e , O n t ___________
M e d ic in e H a t , A l t a ____ __

1,995
1,452
1,400
1,147
1, 500

1,294
1,320
1,400
1,092
1,440

1, 2261. 260
1, 300
945
1, 380

1, 226
1,020
1, 200
750
1,320

B r o c k v ille , O n t . _________
N e ls o n , B . C _____ ______ __
N a n a i m o , B . C _____________
P r i n c e R u p e r t , B . C ______ __

1, 250
1, 560

1, 250
1, 560

1,250
1, 560

1,150
1,440

1, 380

1, 380

1, 200

1, 200


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Secre­
Chauf­ Elec­ tary
to
feurs tricians chief

$2,400
3, 477

$1, 904

2, 320
1,800
1,383
1,803

1, 352
1, 836

$1, 334

$1, 443

1, 632

1,850
1, 752

1, 600
2,163
2,000
1, 668

1, 652
1,440

1,692

1, 764

1, 300

1, 560

1,737

1,476

1, 451
1, 825

1, 850
1,825

2,340

1, 300

1, 490
1, 750
1, 500

1,500

1, 425
1,740

1, 620

1, 525
1, 425

1, 356
2,188

1, 674

1,740
1, 200

1,200

1,882

1,644
1, 400
1, 323

1, 380

1,400

Wages and Hours of Labor

433

AGRICULTURAL WAGES IN D EN M A R K , 1938-39
THE average annual wages of farm hands in Denmark in the year
1938-39, as published by the Agricultural Economic Bureau of
Denmark,1 were as follows:
W ages p er a n n u m

Young farm hands, male:
(k ro n er 0
Under 17 years of age---------------------------------------------551
From 17 to 21 years of age--------------------------------------793
Adult farm hands----------------------------------------------------------- b 027
Girls under 18 years of age------- .------------------------------------447
Girls over 18 years of age-----------------------------------------------571
1

A v e r a g e e x c h a n g e r a t e of k r o n e , J u l y to D e c e m b e r 19 3 8 = 2 1 .4 c e n ts ; in A p r il 1939—20.9 c e n ts .

Board and lodging are provided by the employer in addition to the
money wages. Cattlemen are paid 1,141 kroner per annum with
board, or 2,074 kroner without board.
The average daily wages of farm day laborers (in kroner) were:
Casual day laborers:
With board-----------Without board------Permanent day laborers:
With board-----------Without board-------

S u m m er,
1938

H a r v e s t,
1938

W in te r ,
1 9 3 8 -3 9

5. 35
6. 29

6. 00
7. 21

4. 40
5. 76

4. 58
5. 58

5. 14
6. 44

3. 82
5. 12

In recent years the wages of farm hands have shown an upward
tendency.
CHANGES IN WAGES AND HOURS IN GREAT B R IT A IN
AND N O R T H E R N IR ELA N D , 1938
THE average level of wage rates was higher and the hours of work
shorter in Great Britain and Northern Ireland at the end of 1938 than
a year earlier.2 Information on changes in wages and hours is obtained
from various sources, including arbitration and conciliation commis­
sions, trade boards, employers, trade-unions, and the press. As the
Ministry of Labor is not empowered to require that such changes be
recorded, only such statistics as are voluntarily furnished by the dif­
ferent agencies are available for summary. However, cooperation is
given freely and the figures presented here cover a wide range. The
chief lack is in data showing changes affecting unorganized labor and
employees of individual firms which are not brought to the attention
of the Government.
Wage rates increased rapidly during the first 5 months of 1938.
After that time increases were more than counterbalanced by de­
creases, but nevertheless the figures for the year showed a net gain.
1 Q u o te d i n B u l l e t i n of t h e I n t e r n a t i o n a l L a n d w o r k e r s ’ F e d e r a t io n , C o p e n h a g e n , D e n m a r k , M a y 1939.

2G r e a t B r it a in , M i n i s t r y

o f L a b o r G a z e t te ( L o n d o n ) , A p r il 1939: C h a n g e s in R a t e s of W a g e s a n d H o u r s

o f L a b o r in 1938.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

434

In those industries and services for which statistics are compiled
regularly, excluding agriculture and certain other employments, the
total increase in weekly wages was about £262,100 3 in 1938, affecting
2,381,500, and the decrease was £18,800, for 322,200 persons. In all
the industries, including agriculture, for which information is avail­
able, average full-time weekly rates of wages at the end of 1938 were
estimated to be between 1 and 1% percent above 1937. A relatively
large number of workers had their wages decreased during April 1938
and from June to November. This was due principally to changes in
the pay of coal miners whose wages are adjusted on a sliding scale,
according to fluctuations in the proceeds of the industry. Most of the
workers whose wages were reduced in these months subsequently had
their wages restored to the earlier level or increased to a higher rate.
The approximate number of workers having decreases and increases
in their pay, the estimated net amounts yielded by the changes, and
the estimated net weekly increases in the rates are shown in table 1.
As changes in wages of adult males are usually greater than those of
women, boys, and girls, the report here reviewed points out that dif­
ferences in averages obtained from these data would be affected by the
proportion of these classes of employees in the various industries.
T able

1.— Changes in Rates of Wages, by Industry, in Great Britain and Northern
Ireland, 1938
A p p r o x im a te n u m ­
b e r of p e r s o n s a f­
fe c te d b y -

E s tim a te d n e t
w e e k ly c h a n g e in
w ag e ra te s

I n d u s tr y g ro u p
N e t in ­
c re a se s

N et de­
c re a se s

In c re a se

E s ti­
m a te d n e t
w e e k ly
in c re a s e
in w a g e
ra te s
D e c re a se

All industry groups..________________

2,381, 500

322, 200

£262,100

£18,800

£243,300

Coal mining_____________________ ___
Other mining and quarrying....................
Brick, pottery, glass, chemical, e tc ..___
Iron and steel_______________________
Engineering 1________________________
Shipbuilding........ ......................................
Other m etal.......................................... .......
Textile____ ______________ __________
Clothing_______________ _____ ___ ___
Food, drink, and tobacco_____________
Woodworking, furniture, etc__________
Paper, printing, etc__________________
Building, public works contracting, etc.
Gas, water, and electricity supply____
Transport1________________;...................
Public administration services________
Other__________________ ___________

287, 900
50, 400
01, 250
111, 450

186, 800

14, 550
10, 700
9,700
20,250
1,950
10, 700
8, 050
4, 050
8,300
3 ,650
2, 050
150
94,200
1,150
40,950
11,000
20, 700

8,110

6, 440
10, 700
9, 6' 0
17,090
1,950
10, 700
4 ,700
890
8,300
3,490
2, 040
150
94,150
1,130
40,920
10, 980
19,980

100
16, 300

22, 200
107, 600
64, 400
55,100
96, 250
37,350
16, 900
1, 350
898,750
12, 000
294,150
102, 500
131,950

28, 800
79, 650
2, 300
100
600
300
500
200
6,550

10
3,160
3 ,350
3,160
160
10
50
20
30

20
720

1 C h a n g e s in r a i lw a y e n g in e e r in g w o r k s h o p s a r e in c lu d e d u n d e r E n g i n e e r in g a n d n o t u n d e r T r a n s p o r t .

In addition to the totals shown, counterbalancing increases and
decreases, respectively, were received by about 161,000 persons. Over
60 percent of the workers who obtained increases in pay during 1938
were employed in the coal-mining, building, and transport industries.
3

A v e ra g e e x c h a n g e r a t e o f t h e p o u n d


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

in 1938=$4.8894.

435

Wages and Hours of Labor

The major decreases in wages during the year resulted from automatic
adjustments under sliding-scale arrangements. Of the 322,200 persons
whose wages were reduced, 83 percent were employed in the coal­
mining and textile industries and a substantial number were engaged
in the production of tin plate and steel sheet. In a substantial number
of industries no changes in rates were made.
As the foregoing statistics do not cover agricultural labor, Govern­
ment employees, and shop assistants, the report here summarized
notes certain wage changes for persons so engaged. Of the 47 agri­
cultural wage committees in England and Wales which establish
rates of pay for agricultural labor, 29 authorized wage increases in
1938. In Scotland minimum rates were established for farm labor in
1938 under legislation adopted the previous year. A number of classes
of Government employees received increases, notably dockyard
workers, postmen, sorting clerks, telegraphers, and telephone opera­
tors. Shop assistants employed by cooperative societies and in the
distributive trades also benefited from increased wage scales during
the year.
The methods by which wage changes were arranged are shown in
table 2, listing separately the aggregate weekly amounts of increases
and decreases in the rates of pay during 1938.
T a b l e 2 . —Methods by Which Changes in Wages Were Made in Great Britain and

Northern Ireland, 1938
Total weekly amount of change in rates of wages
Method

Amount

All methods__________________________________ ____
Under sliding scales 1 based on —
Selling prices, proceeds of industry----------- ------ Conciliation boards 1---------------------------- -----------------Arbitration and m e d ia tio n ...------ ----------------- ----------B y other methods:
Direct negotiations, etc-------------------- ----------------Joint industrial councils 1.........— ................................

Decrease

Increase
Percent of
of total

Amount

Percent of
of total

£388,000

100.0

£144,700

100.0

73,000
125,050
53,175
2,500

18.8
32,2
13.7
.7

16, 250
120,900

11.2
83.6

99,400
15, 775
19,100

25.6
4.1
4.9

7, 550

5. 2

1 Changes effective under sliding scales arranged by conciliation boards, joint industrial councils, or trade
boards are included under sliding scales.

For the year 1938, over 50 percent of the money value of increases
in pay and 95 percent of the decreases resulted from the operation of
sliding-scale arrangements. Systems based on selling prices, proceeds
of industry, etc., accounted for a larger volume of increases and
decreases than those based on cost of living. Increases in pay which
followed disputes causing stoppages averaged only £500 per week
or 0.1 percent of the total.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

436

Monthly Labor Review—August 1939

The number of persons affected by increases in rates of pay in 1938
(2,381,500) was much lower than in 1937 (5,161,200) and 1936
(4,062,400), but approximately the same as in 1935 (2,366,500).
Over twice as many persons were affected by decreases in 1938 (322,200) as in the 4 years preceding (140,300).
Of the persons reported upon, working hours of about 168,600 were
changed in 1938. The average reduction in the workweek for 166,650
of these persons amounted to about 2% hours; and 1,950 workers had
an average increase of just over 1 hour per week. In boot and shoe
manufacture, 85,000 operatives had a reduction in hours from 46 to
45, and the working time of about 50,000 workers engaged in paper-box
and paper-bag manufacture was reduced from 48 to 45 hours per
week. The number of persons whose hours were changed is given by
years, from 1915 through 1938, in table 3, which also shows the total
net increase or decrease in weekly hours for the workers included
in the tabulation.
T a b l e 3 . — Changes in Hours of Labor in Great Britain and Northern Ireland, by Years,

1915 to 1938
Approximate num ­
ber of persons af­
fected by—
In,creases

Decreases

Total net
increase (+ )
or decrease
( - ) in
weekly
hours

1938________
1937-...............
1936________
1935________
1934________

1,950
1,500
600
2, 450
520

166,650
390,650
160, 600
43, 700
5,000

-371,100
-960,000
-804, 500
-153,850
-1 1 , 500

1933________
1932________
1931________
1930________
1929________

2,500
6,000
294,000
13,175
4,050

12, 500
3, 750
111,000
349,225
1,050

-36,000
+7,000
+142,000
-873,500
+8,750

1928________
1927............. .
1926________
1925________
1924________

1,400
18, 700
934,200
1, 300
13,150

2,000
1,700
340
3,925
16,150

+59,000
+3,984, 650
-11,750
+12, 500

Year

Year

Approximate num ­
ber of persons af­
fected by—

Total net
increase (+ )
or decrease
( - ) in
weekly
hours

Increases

Decreases

1923
1922.
1921.
1920
1919.

325,000
16, 000
31, 500
2,000
1,150

9,600
302, 700
12,900
570, 000
6, 305,000

+108, 750
-93,000
+14, 500
-2,114, 000
-40,651,100

1918.
1917.
1916.
1915.

1,750
2,400
1,300
620

148,000
32,000
22, 000
20, 500

-568,000
-120,000
-100,000
-63,000

-2 0 0

Following the extensive reduction of hours in 1919 and 1920, com­
paratively few changes were made until 1936, except in the working
time of building-trades labor and coal miners. Reductions in hours
during 1936 affected boot and shoe workers, seamen, and newspaper
employees. In 1937, printers, coal miners in certain districts, and
flour millers benefited from changes in the weekly schedules of hours.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

437

IN C R EA SE D BONUS IN B R IT IS H E N G IN E E R IN G
AN INCREASE of 2 shillings a week in the national bonus paid to
adult male workers in the engineering industry of Great Britain
became effective on June 5, 1939.1 This was a flat increase in the
bonus which is regularly added to wages of engineering employees,
and forms a substantial part of their weekly earnings. In May 1938
the basic weekly time rate ranged from 31s. 7d.2for firemen to 52s. lid .
for brass and iron molders, to which was added the bonus of 20s. which
was then authorized for all employees. Thus the bonus represented
from about 27 to about 39 percent of the total weekly wages at that
time.3 The standard wage basis used for the calculation of overtime
and other special rates was not affected by the increase in the bonus.
Over a million employees are reported to have benefited from this
change.
1 The Economist (London), M ay 20, 1939, p. 455.
2 Average exchange rate in M ay 1938 of shilling=24.84 cents, of penny=2.07 cents; in June 1939, 23.41
cents and 1.95 cents, respectively.
3 For additional wage statistics covering the engineering industry see M onthly Labor Review for October
1938, p. 882.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

438

Monthly Labor Revieur—August 1939
WAGES IN ITALY, 1936 TO 1939

IN GENERAL, Italian wages are fixed on a local, provincial, regional,
interregional, or national basis. Conditions governing the making
and renunciation of these agreements have been established princi­
pally by laws of April 3, 1926, March 20, 1930, and January 25, 1934,
and royal decrees of July 1, 1926, and May 6, 1928. A resolution of
April 30, 1937, of the Central Corporative Committee, established
wage increases of 10 and 12 percent in industry, but provided that
thereafter wage matters should be handled by the corporations.
Wage rates are fixed by representatives of associations of workers and
of employers which have been legally constituted, and must specify
the enterprise or enterprises, the kind of enterprises, and the class of
workers, together with the territory over which they are effective;
lacking these specifications the agreements have authority over all
the persons represented by the associations making the agreements.
In June 1938, 15 percent of the industrial establishments in 35
industries in Italy, which employed 51 percent of all workers in these
industries, reported a total daily average of 1,526,636 employees,
working an average of 158 hours per month, for an average hourly
wage of 2.23 lire.1 In June 1937, 16 percent of the establishments,
employing 52 percent of all workers, reported a total daily average of
1,440,106 employees working an average of 166 hours per month for
an average hourly wage of 2.17 lire. There was, therefore, an average
increase, from 1937 to 1938, of 6 percent in number of workers and of
3 percent in hourly wage, but an average decrease of 5 percent in
hours worked per month.
Table 1 shows for 35 industries in Italy for June 1938,2 the percent of
establishments and of workers reporting, the average number of work­
ers employed per day, average earnings per hour per worker, and the
average number of hours worked during the month per worker.
1 Average exchange rate of lira in 1936=7.29 cents; in 1937, 1938, and 1939=6.26 cents.
2 For comparable figures for June 1937, see M onthly Labor Review, February 1938, p. 486.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor
T able

439

1.—Employment and Hourly Earnings in Italy, June 1938, by Industry
Coverage (percent of
Average Average
total in Italy)
number of earnings
workers per hour
per
Establish­ Workers employed
worker
ments rep­ reported per day
resented

Industry

Average
hours
worked
per
month
per
worker

L ir e

All industries...------ --------------- ------------- ------ ------

Wool
Silk:

Wood

_______

_______

_____

_____________________________

15

51 1, 526, 636

2. 23

158
152
178
159
166
160
159
149
163
147
164
158
159
168
179
150
119
145
131
156
149
125
137
147
154
152
165
167
157
167
154
196
134
145
164
153
160

5
12
25
18
69
26
5
23
21
23
30
35
33
41
23
23
34
33
53
46

19
41
45
42
75
57
38
59
36
57
48
54
59
71
33
66
69
53
77
82

28,447
4, 563
18,695
4,813
9,633
9,126
5, 943
75,545
204,277
22,170
38,949
16, 629
296,659
89,988
13,726
10, 410
11,791
21,022
163,774
73,927

1. 67
2.39
2.07
2.00
2.75
1.75
1.26
2. 25
2. 27
2. 25
2. 00
2.41
2.78
3.14
■ 1.63
2.34
2.41
1.88
1. 55
1.96

46
43
36
47
35
56
29
37
31
21
48
44
22
44
33
39

64
68
76
53
72
91
59
68
45
37
51
69
35
59
57
75

33,175
20,084
34, 266
29,024
29, 476
30, 967
74,968
35,097
17,825
38, 654
4.744
4, 620
905
3,702
15,875
33,167

1.03
1. 68
1. 38
1.50
1.82
2. 05
2. 43
1.94
2. 54
1.98
3.12
1.32
i. 19
2.16
1.76
2.54

From the table it will be noted that in 21 industries a gain in number
of workers between June 1937 and June 1938 was shown, and in 15
industries a decrease (in these comparisons, the silk industry is
divided into its parts; silk treating and spinning, and silk weaving, thus
making 36 industrial groups). However, in the 17 largest industries,
in each of which more than 24,000 workers were reported, a loss in
number of workers was registered in only 3 instances (metallurgical,
miscellaneous textiles, and agricultural and other food industries).
In June 1937, 84.9 percent, and in June 1938, 85.8 percent of all
workers reported were employed in the 17 largest industries. Of the
17 industries only 2 (chemical products and knitting and hosieiy)
showed a decrease in average hourly wages (of 0.03 and 0.01 lira,
respectively) while in 1 industry (cotton) the average houily wage
(1.55 lire) remained the same for both years. As to hours worked pei
month, only 1 industry (agricultural and other food industries)
showed an increase (of 21 hours per month). The greatest increases
in average hourly wages (0.19 lira) among these 17 industries were in

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

440

Monthly Labor Review—August 1939

the metallurgical and in the wool industries; and the greatest reduc­
tions in hours per month were 22 in miscellaneous textiles and 21 in the
woolen industry. However, for all industries shown in the table, the
greatest increases in average hourly wages were still in the metallurgical
and wool industries, but the greatest decreases in average hours per
month for all industries shown were 44 hours in the button industry,
33 hours in silk weaving, and 25 hours in tanning and in toys. The
greatest average loss in hourly wages was 0.28 lira in the candy
industry, and the greatest increase in average hours worked per
month, 21 in agricultural and other food industries; in only 3 others
was any increase in hours shown.
In June 1937 the highest average hourly wages, 3.15 lire, were paid in
water and gas works, as against 3.12 lire in June 1938; but in June 1938
the highest wages, 3.14 lire, were paid in metallurgy whereas in 1937
2.95 lire were paid. The lowest average hourly wage paid in any
industry was in silk treating and spinning, 0.93 lira in 1937 and 1.03
lire in 1938. The next lowest wage was in the toy industry, paying
1.02 and 1.19 lire, respectively, in 1937 and 1938.
In June 1937 workers in agricultural and other food industries and
in the hat industry worked an average of only 131 hours per month,
the lowest number of hours in any of the industries reported, and
next above these, fishing with 136 hours. In June 1938 monthly hours
in shoes and leather goods had been reduced to 131 but the work
time per month in silk treating and spinning had gone down to 125
hours and in the hat industry to 119 hours.
In agricultural and other food industries the decrease in number of
workers was compensated for by a great increase in number of hours
worked per month, wages remaining almost constant. In the metal­
lurgical industry the decrease in number of workers was balanced by
an increase in wages, while hours worked per month remained almost
unchanged. Miscellaneous textiles, the only other principal industry,
numerically speaking, which showed a decrease in number of workers,
also showed a substantial decrease in hours of work but an increase
in hourly wages.
Of the 17 largest industries reported, chemical products and knit­
ting and hosiery were the only ones showing even a small decrease in
average hourly wages, and in both instances an increase in number
of workers and a decrease in monthly hours were shown. The sub­
stantial increase in hourly wages in the woolen industry was accom­
panied by a correspondingly large decrease in hours per month and
some increase in number of workers employed. In the candy indus­
try the decrease of 0.28 lira per hour seems to have been due to a
condition in the industry itself, for it was associated with a fall in
number of workers and an increase in monthly hours. In the 4 in­
dustries showing the greatest reduction in hours per month—the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

441

button industry, silk weaving, tanning, and toys—the decrease in
hours was associated with an increase in hourly wages, but a decrease
in number of workers.
In recapitulation, increase of number of workers was associated in
14 industries with increase in hourly wages and decrease in number
of hours per month; in 4 industries with decrease in both wages and
hours; and in 1 industry with increase of both wages and hours. On
the other hand, decrease in number of workers was associated in 8
industries with increase in average hourly wages and decrease in
average hours worked per month; in 3 industries with decrease in
both wages and hours; in 2 industries with increase in both wages
and hours; and in 1 industry with decrease in wages and increase in
hours. Thus it appears that in 22 of the 36 industrial groups increase
in wages is accompanied by or associated with decrease in hours,
regardless of the number of workers employed.
Table 2 shows some comparable figures on average hourly earnings
and average monthly hours worked since 1928. Though the average
hourly earnings were greater in December 1938 than for any other
time during the decade, the average hours worked per month were
lower in 1936, but were 22 per month less than in 1928, showing a
fairly consistent reduction in hours. The lowest average wages were
recorded for 1935; prior to that year they had shown a gradual
reduction, and subsequent to that year, a fairly consistent gain has
been evident.
T a b l e 2 . —Average Hourly Earnings and Average Number of Hours W orked Per Month

by Persons Employed in 35 Industries in Italy, 1928 to 1938

Year

Yearly average:
1929
1930___________________
1932
1933___________________
1935___________________

Average
hourly
wages
(lire)

2.10
2.09
2.07
1.95
1.91
1.86
1.80
1. 77

Average
number
of hours
worked
per
month

180
182
175
170
168
174
172
159

Year

Yearly average—Continued.
1936___________________
First half year . - _
Second half year ___
1937___________________
First half year- ____
Second half year____
1938: December _____ ____ -

Average
hourly
wages
(lire)

1.88
1.81
1.96
2.11
2.03
2.19
2. 36

Average
number
of hours
worked
per
month

156
156
156
163
161
165
158

In table 3 are presented the hourly wages of adult workers in various
occupations in 5 large cities of Italy on January 1, 1938.2
2 For comparable figures for January 1, 1937, see M onthly Labor Review, February 1938, pp. 487-488.

-12
163839— 39

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

442
T able

Monthly Labor Review—August 1939
3.— Wages Per Hour, Adult Workers in Various Occupations in 5 Large Cities
of Italy, January 1, 1938
Industry and occupation

Building:
Masons________________________
Bricklayers____________________
Carpenters____ ____ ___________
Joiners________________________
Tinners (hydraulic brass workers)

Florence

Milan

Rome

Turin

Venice

L ir e

L ir e

L ir e

L ir e

L ir e

3.03
3.03
3. 25

3. 52 fl
3.52
3.82

3.00
3.45
3.45
3. 80

2.92
3. 20 /\
3. 69
2. 53
3.08

2. 88
3.72
4.27 }
4. 09 f
\
3. 52
3. 88

3.60
3.60
3.15
3.90
3. 80
3. 75

2.15

2. 22

2. 85

2. 54
2. 54
2.54
3. 33
2.06

2.81
2. 81
3. 52
2. 29

3. 55
•3.55
3. 20
0
2.40

3. 25
3. 35
2. 80

3.63 fl
3. 28
2. 76

3.40 }
3.75
4. 25
3.40

3.25 /1
3. 25
3. 25

2.25
3.50
3. 25
3.10

/
\
/
3.95 l
2.52

4.44
4.65 }
4. 85
4.37 }
5.06
4.41
4.60
3.48

4.05
4. 25
4.05
3. 35 }
3.50
2. 65

4. 56
4.96
4. 68

4. 65
5.02
4. 65

4.52
2.74

4. 65
2.00

3.49
4.15

2. 26
3.45 }

4.90

3. 58

3. 30

0)
1.60

3.40
2. 35

Painters____________ ___________
Structural-iron workers__________
Concrete workers____________ ___
Laborers___ ___________________
Mechanical engineering:
Bitters_____ ___________________
Turners________________________
Molders____________________ . . . .
Patternmakers_________________
Laborers, unskilled_____________
Furniture:
Cabinet makers_________________
Upholsterers____________________
Polishers_______________________
Printing:
Compositors, hand________ 1____
Compositors, machine___________
Machine minders_______________
Bookbinders____________________
Laborers______________ ________
Electrical installation:
Skilled electricians______________
Electric-power distribution:
Skilled electricians_____________
Unskilled laborers_______________
Transportation:
Motormen, streetcar_____________

3.95
4.45
3.95

f
\

/
1

0

Motormen, autobus_____________

3.18 }
3. 58

f
\

/
l

f
l
/
1
f

3. 28

(9

2. 52

3. 79

0

0
\
/
0
\
3.55
4. 30
/
0
\
/
0
\
3. 75 f
t

2. 25

3.19

Conductors, autobus. ____________

2. 25

3.24
2.72
2.88

Motor drivers___________________

2. 52 fl

Horse drivers___________________

2.38

Porters, freight_________ ____ ___

2. 55

2. 35

Maintenance-of-way men________

2. 25

2.70

l

2.91
3.92

2.35
3.90

2.45
3. 40

f
1

2.10
2.53 [

3.10

2. 55 /

Food:
Bakers_________________________
Local authorities:
Unskilled laborers_______________

f

3. 58 f
l
3. 25
3.50
3.87
3.12
3.58
3.59
3.87
2.31 /
l
3. 65
2. 85
3. 65
0
2. 30

2.52

Conductors, streetcar____________

3.30
3.15
3.15
3.30
3.15
3.15
3.30
3. 30
5. 15
2. 60
3.15
3. 30
2.30
2.40

\

3.21
3.82
3.21
3.82
3.00
3.62
3.00
3.62
2.45
2. 80
2.30
2.35
2.10
2.20
2.65
4.45

2. 50
2.50
3. 30
2. 50
2.00

0
0
}

«

}
}

«

]

2.25
2.30

}

2.30

}

1.95

}

2.30

}

85

2.46
3. 83

2.C7
3. 74

1.92
2.27 }

2.30

1 Paid by the month.
2 D aily wage of 6.50 lire, plus a share of receipts varying from 12 to 45 percent.
3 Piecework.

On January 1, 1937, workers in 14 occupations (4 cities) and on
January 1, 1938, workers in 24 occupations (5 cities) were receiving
wages greater than 4 lire per hour. On the other hand, in 1937 workers
in 13 occupations (4 cities) received less than 2 lire per hour, while
1 year later the number was reduced to 4 (3 cities). Wages in the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

443

printing industry were in general higher than those in any other group.
The lowest wages reported were those for unskilled laborers in elec­
trical-power distribution in Rome, 1.45 and 1.60 lire for 1937 and 1938,
respectively. The highest wages paid to laborers were those in
printing trades in Milan, 3.10 and 3.48 lire for 1937 and 1938, respec­
tively. The highest wages paid for any occupation were paid to
painters in Venice, 4.70 and 5.15 lire for the 2 years here compared.
In Florence, Milan, and Turin, the highest wages each year were
shown in the printing trades, and for Rome, in electrical installation.
Working Hours

The principle of the 40-hour workweek in Italian industry was em­
bodied in a collective agreement of October 11, 1934, as an unemploy­
ment-relief measure. It was made a part of the national legislation
by a royal decree law of May 29, 1937. The provisions of this legis­
lation do not apply to home industries, agriculture and forestry,
shipping and fishing, intermittent work, or public services. Excep­
tions may be authorized by the Ministry of Corporations for certain
classes of enterprises in specified regions, or for individual undertak­
ings, when a sufficient number of qualified workers is not available, or
when other conditions make impossible the application of the 40hour workweek.
From tables 1 and 2 it is evident that the exceptions that have been
allowed to the 40-hour workweek have been numerous. Overtime,
with pay at specified rates, is allowed when the work to be done can­
not be performed through the employment of additional workers. A
collective wage contract of November 10, 1938, published and effec­
tive February 27, 1939, modified the provisions concerning pay for
overtime established in the royal decree law of May 29, 1937, fixing
the minimum increase in pay for overtime up to 48 hours per week or
8 hours per day at 10 percent, payable to the worker, with special
provisions for calculation of the increase for piece workers.
A law of April 11, 1938, prescribed that for April 21, May 9, October
28, and November 4 of each year, persons employed by the State and
public and private employers are to receive regular pay, whether or
not they work.
In the pages which follow, the hours shown are those contained in
collective labor contracts, and are noted as examples of the manner
in which the question of hours was handled prior to the passage of
the royal decree law of May 29, 1937. In a few cases the hours cited
are those specified in labor contracts entered into after May 29, 1937.
Wage Increases Since 1936

The wage data shown in table 3 were those resulting from the appli­
cation of a circular of May 14, 1937, which granted an increase of 10

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

444

MoTithly Labor Review—August 1939

percent to all industrial workers who had received raises of 10 per­
cent or more in 1936; 11 percent for those whose raises in 1936 had
amounted to 9 percent or more, but less than 10 percent; and 12 per­
cent to all others, retroactive to May 9, 1937, effective upon wages
up to 1,500 lire per month and upon the first 1,500 lire of higher pay.
A resolution of April 30, 1937, relating to the wage increases from
May 9, 1937, prescribed that thereafter wage matters were to be
handled by the corporations.
By interconfederal agreements of March 7 and 8, 1939, approved
by a circular of the Central Corporative Committee on March 8,
1939, further raises, applicable to a wide range of occupational groups,
including about 3,400,000 employees, were adopted. The new in­
creases amount to 5 percent of minimum wages, piece-work rates, and
actual wages in industries in which raises had been made in 1938 or
1939, 8 percent in industries in which additional raises had been made
in 1937 after the general one of May 9, and any greater increases
necessary to bring the raises up to 8 or 10 percent, respectively, the
latter being the increase scheduled for all industrial workers who had
received no increases since May 9, 1937. The higher wage rates date
from March 23, 1939, and the increases apply to wages up to 2,000
lire per month or to the first 2,000 lire of higher pay. The principal
industries in which the increase of 5 percent is to be applied are the
textile (cotton, wool, hemp, and jute), cement, paper, and rice indus­
tries, employing a total of about 330,000 workers. An increase of 8
percent is due in silk treating and spinning, in which about 60,000
workers are employed, and also for public-utility workers, about 100,000 persons. All other industrial workers, about 2,700,000 persons,
are entitled to the raise of 10 percent. About 200,000 salaried em­
ployees, including all except those in public utilities (whose raise is 8
percent), are to receive the 10-percent raise, as they have had no in­
crease since the general one dating from May 9, 1937. The new
wage contract for industry is to remain in force for a year, dating
from March 23, unless disclaimed according to law. The increase for
agricultural workers is 8 percent, but in 12 Provinces in the Po Valley
where, by an interconfederal agreement of October 8, 1938, workers
had received an increase of 6 percent, the present raise is reduced to
6.5 percent, but an alteration in the contribution for sickness benefits
(see page 448) equalizes this wage situation. Employees of commercial
establishments also receive raises dating from March 23, 1939, rang­
ing from 6 percent for bakery and similar personnel and 8 percent for
persons employed in certain specified kinds of enterprises to 10 per­
cent for all those employed in other commercial undertakings. In­
creases of 6 to 10 percent are also established for personnel in credit
and insurance institutions. The raise in pay for agricultural workers

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

445

is to be in force for a year, but is understood to be renewed indefi­
nitely, unless disclaimed according to law.
On March 15, 1939, the Council of Ministers extended pay increases
to government and semigovernmental employees, increases ranging
from 6 percent for persons in the higher salary brackets to 8 percent
for those in lower salary classes.
Unless otherwise specified, wages presented in the following pages
are those in force before the issuance of the circular of May 14, 1937,
but percentages of increase dating from May 9, 1937, and March 23,
1939, are noted.
Deductions From Wages
Social insurance.—Compulsory social-insurance contributions, di­
vided equally between employer and employee, covering old-age,
invalidity, tuberculosis, unemployment, and marriage and maternity
insurance, established by a royal decree law of April 14, 1939, are on
a sliding scale apportioned to the amounts of pay received. The
contributions for all the above forms of social insurance are due from
all men between the ages of 14 and 60 years and all women between
the ages of 14 and 55 years who work for another for pay, with the
following exceptions: (1) No contributions are required from salaried
employees whose average monthly remuneration exceeds 1,500 lire
(but persons who pass that limit after becoming compulsorily insured
must continue their insurance); certain government salaried and
wage-earning employees whose superannuation is otherwise provided
for; and domestic servants. (2) The following contribute for all
forms of social insurance except that against involuntary unemploy­
ment: Home workers; salaried and wage-earning employees in public,
public-utility, and private employment whose permanence of employ­
ment is guaranteed; agricultural workers; artists and theater and
cinema employees; persons whose employment includes board as a
compulsory part of their remuneration; persons whose sole remunera­
tion is a share in the profits; occasional workers; and seasonal workers
whose employment of a seasonal nature lasts less than 6 months.
(3) Members of the family of sharecroppers and tenants contribute
only for tuberculosis and marriage and maternity insurance. (4)
Certain government and semigovernmental employees protected by
a law of July 17, 1890, and its subsequent amendments, and aliens
and non-Aryan Italian citizens contribute for all types of insurance
except marriage and maternity insurance, from which they are
specially excluded.
Under certain circumstances, special conditions including contribu­
tions may be established for classes which clearly require such arrange­
ments. Social-insurance contributions are due even though the
worker has been on duty only a fractional part of the time.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

446

Monthly Labor Review—August 1939

Eacli member of the family of sharecroppers and tenants is required
to pay 15 lire for tuberculosis insurance and 18 lire for marriage and
maternity insurance for each agricultural contract year. Table 4
shows other contributions due for each form of social insurance by
class of employee. In each case, the contributions shown are divided
equally between employer and worker.
T a b l e 4 .— Contributions for Social Insurance in Italy, Due From Salaried Employees and

Workers
Contributions (in lire) for—
Contribution class, and salary or wage

Invalid­
ity and
old-age
insur­
ance

Tuber­
culosis
insur­
ance

Unemployment
insur­
ance

Total
Marriage contri­
and ma­ butions
ternity
insur­
ance

Salaried employees (for each month of em­
ployment)
Class 1, not over 150 lire per m onth_________________
Class 2, over 150 but not over 250 lire per m onth_____
Class 3, over 250 but not over 400 lire per m onth........ .
Class 4, over 400 but not over 600 lire per m onth_____
Class 5, over 600 but not over 800 lire per m on th_____
Class 6, over 800 but not over 1,000 lire per m onth___
Class 7, over 1,000 but not over 1,200 lire per month__
Class 8, over 1,200 but not over 1,400 lire per m onth__
Class 9, over 1,400 lire per m onth................ .......................

11.30
18.80
30.10
45.20
60.20
75. 20
90. 20
105.20
120. 20

4.00
5.00
6.00
6.00
6.90
6. 90
6.90
7.20
7. 20

5.00
5.00
7.00
7.00
9.00
9.00
9.00
9.80
9.80

2.80
3. 60
4. 20
4.70
5.00
5. 30
5. 50
5.70
5.70

23.10
32.40
47. 30
62. 90
81.10
96. 40
111.61
127.90
142.90

Nonagricultural workers (for each week of
employment)
Class 1, not over 12 lire per w eek___ _______________
Class 2, over 12 but not over 24 lire per week________
Class 3, over 24 but not over 36 lire per week________
Class 4, over 36 but not over 48 lire per week________
Class 5, over 48 but not over 66 lire per week___ ____
Class 6, over 66 but not over 84 lire per week ________
Class 7, over 84 but not over 108 lire per week_______
Class 8, over 108 but not over 132 lire per week_____ _
Class 9, over 132 but not over 156 lire per week_______
Class 10, over 156 lire per w eek_____________________

0.90
1.80
2. 70
3. 60
4. 90
6. 30
8.20
10.00
11.90
13. 60

0. 50
.60
.70
.90
1.10
1.10
1.30
1.30
1.45
1.45

0.50
.60
.70
1.10
1.10
1.10
1.50
1.50
1.80
1.80

0. 50
.60
.70
.90
1.00
1.10
1.20
1.30
1.35
1.35

2.40
3. 60
4.80
6. 50
8.10
9.60
12. 20
14.10
16. 50
18.20

Agricultural day laborers (for each day
of work)
Males over 18 years________________ _
Females, and young persons 14-18 years.

0. 36
.18

0. 20
.20

0. 80
.60

0. 24
.22

Agricultural workers working by the year
(per year)
M ales.
Females.

108.00
54.00

36.00
30.00

22.00
24.00

166.00
108. 00

Income tax.—Until the pay increase of May 9, 1937, a tax of 8 per­
cent was assessed on 50 percent of all income from wages and salaries
of permanent personnel receiving 600 or more lire per month or 150
or more lire per week; this was paid in most instances by the workers
themselves, but in the Yenetian-glassware industry it was paid at the
rate of 1.61 lire by the worker and 4.39 lire by the employer on the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

447

first 150 lire, and on pay in excess of 150 lire the tax was divided
equally between employer and worker.
A circular of May 25, 1937, increased by 20 percent tlie minimum
taxable income from wages, or raised the minimum to 180 lire per
week. The Minister of Finance ruled that workers receiving, as a
result of wage adjustments, the minimum taxable income were not
subject to income tax, and by a circular of March 30, 1939, declared
that the same principle was applicable after the pay increases of
March 23, 1939.
Family allowances.—The employee’s contribution for family allow­
ances amounts to 1 percent of gross earnings for salaried employees,
personnel in industry and commerce, and workers employed by pro­
fessional men and artists. Agricultural workers employed by the
month pay 2.50 lire per month, and those employed by the day pay
0.10 lira per working day. A circular of April 4, 1939, provides for
the unification of all family allowance funds, but with 5 categories of
enterprises in the one system, leaving contributions the same for the
present but increasing the benefits.
Syndical dues.—Syndical contributions, corresponding in general to
trade-union dues, are not to amount to more than 1 day’s pay per
year. They are levied on all persons under the respective jurisdictions,
whether or not they are members of the syndicate. The corporations
may be authorized by statute to impose further contributions, not
upon individual members but upon the lower order of organizations,
which are not to exceed those fixed as maximum for syndical dues.
By a ministerial decree of August 12, 1938, the membership ticket fee
was reduced to 1 lira and provision was made to abolish supplementary
payments, as to higher order of associations; the amount of workers’
contributions was fixed at 0.52 percent for those in industry and at
0.85 percent for those in commerce. For agricultural workers, the
contributions are 3.5 percent of the net income verified for the appli­
cation of the tax on agricultural income.
A royal decree law of November 18, 1938, continues for 1939 the
rules of application of syndical contributions applied in 1938, and
stipulates that the rates for 1939 are not to be higher than those
for 1938.
Workers’ leisure-time organization.—Each worker pays to the Na­
tional Leisure-Time Organization (Opera Nazionale del Dopolavoro)
certain annual dues which amount to about 18 lire.
Mutual sickness-benefit funds.—Various mutual sickness-insurance
funds provide this form of benefits for employed persons. The prin­
cipal ones, with the most recent data available on workers’ contribu­
tions to these funds, are as follows:
Sickness benefits for seamen as now in force were established by a
royal decree law of September 23, 1937, under which the total contri
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

448

Monthly Labor Review-August 1939

butions for the first 2 years of operation, divided equally between
employer and seaman, amount to 2 percent of the pay received.
For agricultural workers the rate of contributions to the mutual
sickness-benefit system now in operation was established, by an interconfederal agreement approved by the Central Corporative Committee
on March 8, 1939, at 3 percent of wages, the employer also paying
3 percent.
The mutual sickness-benefit fund in industry was established by a
royal decree of July 14, 1937, which was the basis for an interconfederal agreement of January 3, 1939. This provides that, dating
from April 30, 1939, contributions—divided equally between employer
and employees (both salaried and wage-earning)—are not to exceed
3.6 percent of pay, including all amounts needed for administrative
expenses.
By a royal decree of November 1, 1938, employees in credit and
insurance institutions are protected against sickness by a contribution
of 1 percent of salaries, divided equally between employer and
employee.
The contribution for the mutual sickness-benefit fund for air trans­
port workers, according to an agreement made in 1937, consists of
2 percent of wages, divided equally between employer and worker.
Contributions for the mutual sickness-benefit fund for commercial
employees, according to a royal decree of December 20, 1932, are as
follows: Salaried employees, two-thirds paid by the employer and
one-third by the employee; wage-earning employees, amount divided
equally between employer and worker. From the establishment of
the fund until the present, the total contribution has been 3 percent
of pay.
Recent Wage Agreement fo r M ilan
A minimum-wage agreement affecting industrial employees not
regulated by special laws or by collective contracts already in force
has been reached between the unions of industrial employers and
employees of Milan, according to a report from the American Com­
mercial Attaché at Rome. The minimum-wage rates per month for
the different classes of workers are as follows:
M a le s
Class I.— Employees with minor executive duties:
(lir e )
21 years of age and over—technical and administrative
offices__ •--------------------- ------------------------------------------ 1, 500
Class II.— Employees having no executive duties:
21 years of age and over—technical and administrative
offices_____________________________________________ 1 , 100
18 to 21 years of age—
700
Technical offices__________________________________
700
Administrative offices-------------------------------------------Under 18 years of age—technical and administrative
450
offices.
-----------------------------------------------------------


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

F e m a le s
(lir e )

1, 500

880
600
560
450

449

Wages and Hours of Labor
Class III.— Other employees, typists, file clerks, etc.:
21 years of age and over—technical offices--------------Persons whose duties do not require any preparation:
18 years of age and over—
Technical offices---------------------- --------------Administrative offices------------------------------Under 18 years of age—Technical offices----------------------------------- -Administrative offices--------------------- ----------

M a le s
{ lir e )

F e m a le s
(lir e )

750

600

420
420

400
370

310
310

300
280

Wages in Various Industries and Occupations, 1936 to 1939

The wage rates and conditions of labor in various industries in
Italy are mainly those presented in a consular report of March 4, 1937,
supplemented by changes noted in a report of June 17, 1938. Where
reference is made to materials contained in the preceding tables, the
date of the wage rates is indicated.
B U IL D IN G C O N ST R U C TIO N

For building construction in Italy including, for the Milan con­
sular district, the maintenance of State railways, the wage rates and
working conditions here set forth are those effective before May 9,
1937, when a wage increase of 10 percent was made.
Milan consular district.—R
of work vary with the season; 7 per
day in December and January, 9 in June and July, and 8 in the other
months, for an average of 48 per week for the year. Wages on night
shifts are the same as for day shifts, but pay for overtime during the
day is at the regular rate increased by 30 percent, while that worked
during the night and on Sundays and holidays is at the regular rate
increased by 80 percent.
Workers ordered to work at least 5 kilometers away from the limits
of the community in which they usually work receive an increase of
20 percent, unless the job is in the vicinity of their residence, in which
case they are entitled only to the current wages in that community if
greater than those under which they have been engaged. If the place
of work is not in the vicinity of their residence and the current wages
there are higher than those under which they were employed, increased
by 20 percent, they are entitled to the difference, and should they need
to remain overnight, to lodging as well. Drivers ordered to go out­
side of the community wherein their services are usually rendered and
needing to take more than one meal away from home are granted
allowances varying from 5.34 lire when they return the same day to
10.67 lire per day plus lodging when they must remain away from their
usual place of employment overnight; unskilled laborers accompanying
them receive from 4.27 to 8.54 lire as supplementary payments.
The minimum wage per day for auto drivers and mechanics in 1936
was 25.08 lire. The wage rates paid in certain occupations in building

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

o u t s

450

Monthly Labor Review—August 1939

construction in Milan on January 1, 1938, are shown in table 3.
The rates in other parts of the consular district are said to be from
5 to 15 percent lower.
The following wages were paid in 1936 to workers engaged in the
ordinary maintenance of the State railways of Milan and stations and
for an average distance of 9 kilometers from the central station.
(Wages paid in other communities were about 17 percent less.)
H o u r ly w a g e
(lir e )

Foremen (rail laying)___________________________________
Workers (rail laying)________ ___________________________
Unskilled laborers (snow removers):
Permanent_________________________________________
Temporary._______________________________________
Laborers engaged in other work_________________________
Boys, 16 to 17 years of age______________________________

2. 33
2. 23
2. 13
2 .75
2. 02
1 . 62

For workers in sand and gravel pits in Milan and vicinity, the fol­
lowing wage rates are the minima. (Wages paid in other communities
in the district are from 8 to 10 percent less.)
Shovelers:
Over 20 years of age_________
Less than 20 years of age_____
Drag operators___________________
Licensed machinists for locomotives
Licensed firemen_________________
Brakesmen_______________________

H o u r ly w a g e
(lir e )

2. 35
2. 12

2. 35-3.
3.
2.
2.

01
26
73
17

M in im u m

Motor-transport drivers:
(u^)Be
Mechanics_________________________________________ 28. 24
Others_________________ __________________ ________ 23. 53
Cart drivers____________________________________________ 22. 59
Boatmen_______________________________________________30. 12
Assistant boatmen, for 1 trip___________________________ 14. 59
Assistant boatmen, for 2 trips___________________________ 2 1. 65

Painters, whitewashes, and plasterers (except boys) working on
high ladders are paid 3.58 lire per day in addition to regular rates.
Workers sent outside of their zone of regular employment are entitled
to transportation and 4.35 lire per day additional if they are not away
at night (on holidays, transportation only), and 8.69 lire per day if
they must be away overnight, and lodging unless agreement is made
to the contrary. Boys receive half the above supplementary pay­
ments. Wages paid for similar labor in other communities in the
district are somewhat lower than those for Milan, where the mini­
mum rates in 1936 were as follows:
M i n i m u m h o u r ly
w a g e (lir e )

Painters and plasterers_____ ______
3. 72
Whitewashers__________________
3. 43
Apprentices.!_____________
2. 08
Shop boys, first to fourth years______________________ 1. 38-1. 87
Apprentice plasterers_____________
2, 31

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

451

Wages and Hours of Labor

Pavers and asphalt workers sent out of the city of Milan for dis­
tances up to 5 kilometers receive also traveling expenses; from 5 to
15 kilometers, traveling expenses and 9.21 lire per day; over 15 kilo­
meters, traveling expenses and 18.41 lire per day. Wages for pavers
and asphalt workers in other parts of the consular district are about
8 to 10 percent lower than those for Milan. The minimum wage
rates in paving in the city of Milan are as follows:
H o u r ly w a g e (lir e )

Stonecutters_____
Road pavers____
Stone layers_____
Shovelers_______
Unskilled laborers

3.
3.
_ 2. 59-3.
2.
2.

72
49
58
70
41

The following wages are paid for asphalt workers for an 8-hour
day, in the city of Milan:
D a ily w age
(lir e )

Asphalt layers________________________________________
29.
Assistant asphalt layers---------------------------------------------------- 27.
Sand layers_____________________________________________ 25.
Firemen_________________________________________________25.
Shovelers--------------------- ----------------------------------------------------21.
Unskilled laborers______________________________________ 16-

93
72
98
51
46
63

Naples consular district.—The weekly average of hours in this
district may not exceed 48 for the year. Overtime during the day
is paid for at regular rates plus 15 percent, and that during the night
and on holidays at regular rates plus 45 percent. Every employee
is entitled to 6 consecutive days of annual leave. Certain hazardous
or unhealthful work (such as that in wells, subterranean diggings,
and under air compression) is compensated for by extra wages ranging
from 25 to 100 percent. An employee’s job must be kept open for
him for 3 months if he is absent on account of sickness.
The wages shown in table 5 (in United States currency) are the basic
wages effective on December 1, 1936, and in the absence of indication
to the contrary, are the wages actually paid.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

452

Monthly Labor• Review—August 1939

T a b l e 5 . — Wages in Building Construction, Naples Consular District, December 1, 1936
Wage rate
per hour

Occupation

Graders_____________________ _____
$0.10-$0.11
Assemblymen Decauville line________
. .10
Masons,cement workers, plasterers, car­
penters, and blacksmiths___________
.13- .15
Pavers_____________________________
.14- .15
Pavement finishers, blacksmith helpers,
and furnacemen___________________
.12
W hitewash mixers, hand_____________
.10
W hitewash mixers, machine__________
.08
Demolition workmen____ ___________
.12
Laborers___ ________________________
.08- .09
Hoist employees______ ______________
.08
B oy helpers, 15-18 years of age________
.07
Asphalt layers______________________
.15
P la ste r e rs...._______________________
.13- .15
Wall finishers_______________________
.13
Whitewashers____________ __________
.10
Excavators, etc______________________ . 12- .13
Stonecutters________________________
.17- .18
Stone roughers______________________
.13
Measurers__________________________
.15- .16
1 Per day.

Occupation

Wage rate
per hour

Porphyry la y e r s____________
$0.23-$0.25
Parquet layers_________
.20- .23
Plumbers_______
.0 9
Rail layers and sim ilar.. .
____
.09- .10
Excavation workers . . . ___
.13
Locomotive mechanicians .
.12
Boilermen______
.10
Chauffeurs and steam-vehicle drivers..
.13
Crane o p e r a to r s..___ _______
. 10
Mechanicians___________ ________
.11-, .13
Crane assistant^______ _ ________
. 11
Joiners and forgers . . . ________ . . .
.11- .12
Painters apd varnishers. . . . _________ .15- .17
Painters and varnishers, helpers
.10
Electricians________ ______ _____
.12- .13
Apprentices, all skilled crafts, 18-20
years of age _____ . _ __________
.10
Automobile mechanicians.. . . _______
i 1.30
Carters____________________________
1.85
Watchmen, e t c ________ __ _ _ . . .
2 17.50

5 Per month.

Rome consular district.-—Normal contract working hours are 8 per
day. Overtime rates are the following increases over regular rates:
20 percent for weekdays for the first 2 hours and 30 percent for each
succeeding hour; 30 percent for holidays; and 50 percent for night
work in addition to regular night duty. Piece workers receive the
same rates of increase for overtime as do workers on straight wages.
Piece work, in general, is to be so arranged that the ordinary indus­
trious worker may make at least 10 percent over the normal salary.
Special pay of 25 percent above the basic rate is granted to workers
who are called upon to work in sewers, etc., with a depth of more than
3 meters; on high places, i. e., scaffolding, towers, chimneys, etc.;
on buildings condemned as unsafe; and in the water. Persons
working in existing cesspools are paid 30 percent extra, and those
working in caissons with compressed air, 30 to 100 percent increase,
according to the depth. Employers are required to furnish persons
working in water with rubber boots, waterproof caps, coats, etc.
The wage rates in Rome are nearly the same as those in Milan, and
do not justify the use of additional space for this field of activity.
P R IN T IN G A N D P U B L IS H IN G

Milan and Rome have been selected, as giving perhaps the best
examples of conditions in the printing and publishing industry.
Corresponding wages in other cities seem to average a little lower.
Milan consular district.—Working conditions are those fixed by a
national labor contract of 1931, as amended on February 1 and Sep­
tember 1, 1936. A general wage increase of 12 percent for the industry
dates from May 9, 1937. The working hours were fixed by the con­
tract at 48 per week. Workers are entitled to Sundays and national

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

453

holidays and to 6 days’ vacation with pay every year. Pay for over­
time is the regular wage increased by 30 percent for daytime, 50 per­
cent at night, and 70 percent on Sundays and holidays. Pay for
working on night shifts or on Sundays or holidays is to be that allowed
for overtime. No supplementary wages are ordinarily paid by em­
ployers in this industry.
Rome consular district.—Under the labor contract in force in 1936,
normal working hours were 8 per day. Persons working in news­
paper publishing plants were paid basic rates augmented by 7 per­
cent. Dating from May 9, 1937, there was a general increase of 12
percent in wages. For overtime, basic pay was increased as follows:
On workdays and holidays not authorized by law, 25 percent; and
overtime at night and that done on holidays authorized by law, 50
percent. Sunday is a holiday but without pay. On holidays recog­
nized by the State, employees are supposed to work a half day; if
they work more than 4 hours, wages are increased by 25 percent.
Wages in the printing and publishing industry on January 1, 1938,
in Milan and Rome, and also in Florence, Turin, and Venice, are
shown in table 3.
T E X T IL E IN D U S T R Y , M IL A N C O N SU L A R D IST R IC T

Milan and the region around it constitute the principal textile
center of Italy, and the wage situation there is representative. The
following general wage increases have been made since the tables
presented in succeeding pages were prepared: 12 percent in both cotton
and woolen textile industries, dating from May 9, 1937;' 10 percent in
the cotton industry, dating from May 9, 1938, together with a pro­
vision making 10.80 lire per day (which had been the average) the
minimum wage; and 5 percent in both cotton and woolen textile
industries, effective March 23, 1939.
The working hours in 1936 were fixed by a national labor contract at
48 per week. Workers were entitled to Sundays and to all national
holidays and to a paid vacation of 6 days per year, with the stipula­
tion for woolen-textile workers that it was due after 12 months’
employment. In the cotton-textile industry additional payments for
overtime amounted to 30 percent in daytime on regular workdays and
50 percent if done at night or on Sundays and holidays. Wages for
working on night shifts (10 p. m. to 5 a. m.) were from 20 to 25 per­
cent higher than for day shifts. In the woolen industry the addi­
tional payment for overtime during the day was 25 percent, at night
40 percent, and on holidays 50 percent of regular rates. Ordinarily
no supplementary payments were made by employers to their workers
in the textile industry.
The wages which follow were those in effect on December 1, 1936,
and apply in all cases to an 8-hour day

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

454

Monthly Labor Review—August 1939

T a b l e 6 . — Wages

in the Textile Industry, Milan Consular District, December I, 1936
[Average exchange rate of lire, 1936=7.29 cents]
Daily
wage
(lire)

Occupation

Occupation

Daily
wage
(lire)

C o t t o n t e x t i l e s —Continued

C o U o n te x tile s

Piece-work occupations:
A ver­
Spinning:
age
Forewomen, bench spinners______
9.45
Spinners at intermediate benches ..
8.90
Scutchers and hank twisters (hardwater), drawers, and uniters____
8.15
Spinners at the rings and at the
twisters, common reelers, doub­
lers over 16 years of age, and
bundlers___________ ____ ______
7. 60
Spinners, self-acting.........................
16.35
Weaving:
Shuttlers, winders, and others____
7.25
Warpers and knotters, machine and
hand_________________________
9.90
Weavers, cleaners, and piece
workers_______________________
8. 90
Jacquard weavers (upholstery for
furniture)_____________________
14.00
Day-work occupations:
M in i­
Spinning, women:
Testers, recorders, yam counters, m u m
etc___________________________
9.45
Carders_________________________
8.15
Weaving and printing, women: Fore­
women and others in charge (testers,
weighers, measurers, recorders, and
samplers)_________________________
11.00
Printing, dyeing, bleaching, merceriz­
ing, and finishing:
Skilled workers responsible for op­
eration of machines____________
16.15
Workers in charge of machinery,
etc.:
f 5.05
Men, 12 to 15 years___________ \
to
I 6.45
Men, 15 to 16 years___________
8. 60
Men, 16 to 18 years___________
10.10
Men, 18 to 20 years...................... 11.80
Men, over 20 years___________ 14.00
5.05
Women, 12 to 15 years________ < to
{ 6.45
Women, 15 to 17 years________
7.15
Women, over 17 years...... ..........
8. 70
Engraving and printing:
Engravers (pantographers)—
Up to 3 years of service............. 17.70
Over 3 years of service_____ . . .
18. 50
Engravers on Mollette, cylinders
and wood—
Up to 3 years of service............... 19.30
Over 3 years of service________
20.35
Learners, over 20 years of age_____ 16.40
Roll printers, 1 color and perotine:
Up to 3 years of service............. 17.70
Over 3 years of service________
18. 50
Roll printers, several colors:
Up to 3 years of service_______
19.30
Over 3 years of service________
20.35
Pantograph tracers___________
10.15
Hand printers_______________
10.50
Other occupations:
Women, 12 to 14 years of a g e ...
4.25
Women, 14 to 16 years of a g e ...
5.25
Women, 16 to 18 years of a g e ...
6.20
Women, over 18 years of age___
6.90
Men, 12 to 14 years of age_____
4.25
Men. 14 to 16 years of age_____
5. 25

f

Day-work occupations—Continued.
Engraving and printing—Continued.
Other occupations—Continued.
M en, 16 to 18 years of age_____
M en, 18 to 20 years of age____ _
M en, over 20 years of age_____

M in i­
m um

8. 40
11. 80
14.00

W o o le n te x tile s

Carding and spinning:
Wool and waste assorters_____________
Rag assorters..______________________
Wool washers:
M en___ ________________________
Women_________________________
Wool and rag dryers:
M en____________________________
Women_________________________
Unravellers:
M en__ _________________________
Women_________________________
Carders:
M en____________________________
Women_____________ ___________
Spinners____________________________
M achine cleaners______ ____ _________
Yarn piecers (doffers):
Men, up to 16 years of age________
Men, 16 to 18 years of age_________
Men, over 18 years of age_________
Women, up to 16 years of age_____
Women, 16 to 18 years of age______
Women, over 18 years of age______
Weaving:
Shuttlers___________________________
Warpers____________________________
Twisters____________________________
Reachers____________________________
Weavers, women____________________
Pattern weavers, women_____________
Wool weavers, m en__________________
Wool weavers, pattern, m en_________
Cloth weavers, men_________________
Cloth weavers, pattern, men_________
Menders, women____________________
Stickers__________ __________________
Assistant stickers:
M en____________________________
Women_________________________
Weaving teachers___________________
Frame chargers_____________________
Dyeing:
Workers in charge of wool, waste, and
cloth dyeing, men:
Over 20 years of age______________
Less than 20 years of age_________
Assistant dyers, over 18 years of age,
women___________________________
Fullers:
First category_________ , _________
Second category, m en______ :_____
Second category, women_________
Washers:
M en____________________________
Women_________________________
Workers on the calender, press, and
other finishing machines:
M en____________________________
Women_________________________

9. 63
8. 56
14.12
10.05
14.12
10.05
14.12
10.05
13.65
10. 70
15.78
15. 78
8. 56
10. 27
11.34
5.35
7. 75
9.20
8.02
11.12

8.77
8.34
10. 21

11.23
11.45
12. 57
12. 62
13.91
10.70
17.12
14.98
10. 48
13. 37
14.98

15. 50
13.91
10. 27
16.05
14.44
9.84
14.44
9.84
14.44
9. 84

M E T A L LU R G IC A L IN D U S T R IE S

Milan is the chief center for the metallurgical industries, and wages,
hours, and other working conditions there may be taken as représenta
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

JFages and Hours of Labor

455

tive. Those given are as of December 1, 1936, but there was a general
wage increase of 10 percent dating from May 9, 1937, and another
of 10 percent dating from March 23, 1939.
The working hours were fixed by contract at 48 per week. In the
metallurgical, mechanical, and refining industries, and in the siderurgical industry except as indicated to the contrary, the following
advances over regular pay were in effect for overtime in 1936: Workers
on night shifts received 10 percent, and persons working on holidays
30 percent additional. On ordinary workdays, wages for the first 2
hours of overtime were increased by 20 percent, for the next 3 hours
by 30 percent, and for all other hours 40 percent, except that in the
siderurgical industry the increase after 5 hours was 35 percent. For
continuous-fire work and for all associated work, in the siderurgical
industry, an increase of 20 percent was paid for all overtime on ordi­
nary days. In these industries no supplementary payments were
ordinarily made by employers to their workers.
The wages shown in table 7 were in effect on December 1, 1936, in
the metallurgical, siderurgical, mechanical, and refining industries,
in the Milan consular district.
T a b l e 7 .— Minimum

Wages in the Metallurgical Industries in Milan Consular District,
December 1, 1936
M inim um wage per hour in—

Occupation

Specialists___ _
____________ .
. . . _. . _ ___
Skilled workers
... _
.
..........
Apprentices:
18 to 20 years _________________________________
16 to 18 years
__
. . _____
Specialized laborers:
Over 18 years______________
_ ___ . . _ . .
16 to 18 years . . _ .
. .
Common laborers:
Over 18 years
______ _ _ _
16 to 18 years. _ . _____. . . . .
_________ . . . . . .
Women
. . . . _____________ ___________ . . .
Boys_______
. . . _ . . . _. . . _________________ ._

Milan and
Sesto San
Giovanni

City of Monza

Other districts
in Province of
Milan

L ir e

L ir e

L ir e

3. 20
2. 55

3.01
2.45

2. 86
2. 35

1. 46 to 1. 57
1.28

1.38
1.13

1.32
1.13

2. 22
1.60

2.12
1.53

2.02
1.45

2.08
1.50
1.13 to 1. 38
.76

1.98
1.43
1.05 to 1. 28
.70

1.88
1.36
0.99 to 1. 23
.66

C H EM IC A L IN D U S T R IE S , M IL A N C O N SU L A R D IST R IC T

The normal working hours in force through labor contract, covering
the chemical industries of Milan, in 1936 were 48 per week, and work­
ers were entitled to Sundays and all national holidays, and to a paid
vacation of 6 days per year. The percent of increase over basic pay
for overtime in the chemical industries is shown in the following
statement:
W orkdays

First 2 hours__________________________________________ 20
Next 3 hours__________________________
30
All additional hours___________________________________ 50
1 “N ight” begins at 10 p. m. and ends at 5 a. m.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H o lid a y s

25
45
80

N ig h t1

30
75
100

Monthly Lahor Review—August 1939

456

The minimum wage for an 8-hour day, on December 1, 1936, for
the various classes of workers is shown below. Since that time two
general avdances in wages have been made—both of 10 percent—one
dating from May 9, 1937, and the other from March 23, 1939.
C o u n tr y
(lir e )

C ity
(lir e )

Specialized workers___ _—
Skilled workers__________
Unskilled workers:
Men, over 21 years__
Men, 18 to 21 years._
Boys, 16 to 18 years __
Boys, under 16 years_
Women, over 18 years
Girls, 16 to 18 years. .
Girls, under 16 years..

21. 95
20. 05

21. 00
19. 10

18.
14.
11.
10.
11.
10.
9.

17.
13.
11.
9.
11.
9.
8.

15
55
80
00
80
00
10

25
80
20
45
20
45
60

V E N E T IA N -G L A S S W A R E IN D U S T R Y

The collective labor contract in force in 1936 called for a 48-hour
week, but late in 1936 the 40-hour week went into effect, making
allowance for the variations in hours due to technical or production
needs, or when labor is not available; but any extension over 40 hours
must be applied for by the company and authorized by the syndical
organizations.
Pay for overtime on days other than holidays consists of normal pay
increased by 25 percent for the first 2 hours and by 40 percent for each
succeeding hour; on holidays, by 60 percent; and at night, by 50 percent.
No payments in kind or free housing are provided.
General wage increases have been made .as follows: 11 percent dat­
ing from May 9, 1937, and 10 percent from March 23, 1938; but the
figures in the following table are those which became effective August
31, 1936, and are expressed in United States currency.
T a b l e 8 .-—
Daily

Wages in Venetian-Glassware Industry Effective August 31, 1936
Daily
wage

Occupation
Master w orkers.. . . .
Assistant apprentices
Apprentices:
Glass passers.. .

.
.

...
.

____ $1. 59-$2. 64
.85- 1.27
.64

Workers occupied with composing mix$1.10
1.10

______

. . . _____

Packers, candelabra mounters, and
turners___________________________
Assistant packers, mounters, and level-

.32
. 22
1.32- 1.69
1.06
. 96- 1.32

.32
Packer apprentices (girls):
After 6 m on ths.._____ . . . ___
During first 6 m on ths.. ________
> 12-hour shift.
2 Includes 4 hours’ overtime, attending fires.

Laborers, on composition or at rcfracWorkers segregating colors of liquid
Woodchoppers. _____
Melters:
Night work___ _

. . .

____

. . . . ______

.64
.32

Packers, mounters, and turner appren-


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Daily
wage

Occupation

.48
.32

Doortenders:
N ight__________ ________________
D ay------------------------------ ----------

.90
.80
.64
1.10
i 1.43
1.96
2 1.38
1.10
.80

457

Wages and Hours of Labor
M IN IN G A N D Q U A R R Y IN G

For these industries 2 regions have been selected: The marble
quarries at Carrara in the Leghorn (Livorno) consular district; and
the iron mines in the Province of Grosseto in the same district.
The normal working week in the Carrara marble quarries is 40
hours. Night work (from 10 p. m. to 6 a. m.) is paid for at 20 percent
over the normal wage scale. For every 2 hours of overtime a quarter
of a day’s wages is allowed. Payment for piecework is so arranged
that a good laborer of normal capacity may earn at least 10 percent
more than the basic salary. No supplementary payments are made
to workers.
T a b l e 9 . —Daily Wages in Marble Quarrying and Iron Mining, Italy, 1936
Daily
wage

Occupation

Occupation

Daily
wage

I r o n , G r o s s e to

M a r b le , C a rra ra

Marble:

L ir e

f 20.10
Q uarrym en..______________________ 1 to
l 22.00
17.60
Resquarers______________ _________
17.30
Blockmen____ _________________
Í 15.80
16.35
13.95
21. 60
. 18. 50
f 17.15

[

Sawyers_______ - --- --------------------

l 17.70
16. 75
15. 60
24.95
23. 40
20. 25
17.95
17. 20
16. 75
f 16.30
l 16.80
11.70

Marble by-products:
Granulated and pulverized marble:
Laborers:
Over 18 years............
... ...
16 to 18 years----------------------Up to 16 years....... ....................
W omen___ ____ ________________
Marble cubes:
Head laborers__________________
Laborers:
Over 18 years________ ______
16 to 18 years________ ______ _
Up to 16 years____ ____ _____
W omen____. . . .............. ...............

19. 65

Underground workers:

L ir e

f 14.00
. . . 1 t0
( 15.50
13.15
Miners____ _____________ _____ —
12.50
Miners’ helpers____________________
16.00
13.50
Tubemen_______ _________________
13.00
12.80
12.70
Chute tenders..........................__ ............
11.50
Mule tenders______________________
13.00
12.00
Laborers__________________________
Surface workers:
12.40
11.40
12.00
12.50
Machine operators. . . . . ............... .
12.00
12.50
11.80
f 13.00
Skilled laborers________ ___________ 1 to
[ 15.50
12.00
17.00
Truck drivers___________ _________
8.00
Boys, 16 to 18 years------------------------6. 50
Gallery workers________________

16. 52
10.00
6.70
7. 85
18.10
14. 95
8.55
5.45
5.00

Wages in the Leghorn consular district were increased 10 to 12
percent in the mining and quarrying industries from May 9, 1937,
and 10 percent from March 23, 1939. The wages in table 9 were those
in effect in 1936, in the marble quarries at Carrara and the iron mines
in the Province of Grosseto.
The workweek of 40 hours in the iron mines in the Grosseto Province
was fixed by national contract. Additional pay over basic wage for
163839— 39---------- 13


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

458

Monthly Labor Review—August 1939

overtime of various kinds is as follows: 20 percent for the first 2 hours
and 35 percent for all other hours, 50 percent during holidays, and
60 percent for night work. Payment for piecework is so fixed that a
good laborer of ordinary capacity may earn at least from 10 to 20
percent more than the basic salary. In some instances an increase
of 10 to 20 percent is paid to good laborers for exceptional work;
otherwise no supplementary wages are paid.
S T R E E T R A IL W A Y S

Wages in the Milan, Naples, and Rome consular districts have been
selected as most informative concerning street railways. The chief
distinction from city to city has to do with compensation in addition
to wages to meet the cost-of-living variation. The labor contract in
this industry in the Naples street railways system provides for no
additional compensation, but those in Milan and Rome contain such
provisions, though paid on different bases.
Milan and Naples districts.—The working hours in the Milan dis­
trict were fixed by the contract of 1936 at 48 per week. All the em­
ployees on the permanent pay rolls of the company (owned by the
municipality) draw pay for Sundays and holidays as well as for other
days. Overtime work must not exceed 2 hours for each working
day; increase in pay for overtime during the day is 20 percent, for
that between midnight and 5 a. m. 40 percent. The rate for piece work
is at least 20 percent more than that for regular work. The cost-ofliving allowance was set at 8.35 lire per day for each employee on the
permanent pay roll, and the following additional allowances were
provided: (1) For officers and clerks, 50 lire per month for bachelors
and 100 lire for married men, supplemented by 30 lire per month for
dependent relatives and of 60 lire per month for each child; (2) for
writers, messengers, ticket inspectors, and foremen of all classes, the
above allowances of 50 and 100 lire per month are made for bachelors
and married men, respectively, but^jthe supplementary allowance for
dependent relatives and for each child of these and all other employees
is 1 lira per day. The salaries and wages, cost-of-living allowances,
and allowances for dependents, of all salaried and wage-earning
employees on the permanent pay roll were in 1936 subject to a reduc­
tion of 12 percent and the cost-of-living allowances to an additional
reduction of 1.35 lire per day. Office workers and carriers on the
permanent pay roll received an extra month’s salary each year, not
subject to the 12-percent deduction.
Table 10 indicates, in the Milan district, the minimum and maxi­
mum basic salaries or daily wages for employees on the permanent
pay rolls of the company in 1936. The minimum amounts were
paid to workers who had less than 2 years’ service with the company;

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

459

wages are increased after every 2 years of service until they reach the
maximum amounts at the end of 10 years. Since the period to which
the data relate, an increase of 12 percent has been made, effective
May 9, 1937, and presumably an increase of 8 or 10 percent, effective
March 23, 1939. For employees of a less permanent character, who
are paid for only the days on which they are actually employed, the
increase in pay for overtime during the day amounts to 15 percent of
basic pay, and to 30 percent for that during the night. The pay for
piece work is at least 12 percent above the regular rate. For these
workers the minimum shown represents the net wage paid to workers
in the company’s service for less than 3 years. Every 3 years a
worker’s salary or wage is automatically increased until, after 15 years,
he receives the maximum. Salary and wages shown were those in
effect in 1936.
In view of the complicated nature of the labor contract for em­
ployees of the Naples street railways, in relation to overtime, allow­
ances for lodging in some cases, family allowances, and other detailed
variations from regular basic pay, suffice it to say the greatest amount
of extra compensation that any workman paid by the day could
receive was 750 lire per month and lodging, and the lowest, 0.90 lira
per day. The distinction in table 10 between minimum and maxi­
mum salaries and wages is that the former applies to less than 2 years’
service and the latter to 10 or more years’ service. Salaried employees
are paid on a 13-month basis because they receive an extra month’s
salary at the end of the year; instead of this extra month’s pay wage­
earning employees receive a proportionate part of a 200,000-lire fund
set aside for that purpose. Remuneration shown in the table is that
in effect in 1936, to which was applied an increase of 10 percent dating
from May 9, 1937, and presumably an increase of 8 or 10 percent
dating from March 23, 1939. Free lodging is provided for the office
chief, chiefs of car shops, etc., foremen, and head messengers.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

460

Monthly Labor Review—August 1939

T a b l e 10. — Wages of Street-Railway Employees in Milan and Naples Districts, 1936
Gross annual salary
(in lire)
District andjoccupation
Minimum

Maximum

M ila n district

Permanent employees: 1
Assistant traffic managers__ ___ ____________________________ __________
Cashiers, chief inspectors, machine-shop foremen, maintenance foremen____
Chief technicians, assistant chief inspectors, chief clerks in charge____________
Chief clerks, inspectors, clerks in charge of stores_________________ ______

Writers or copyists and messengers__________________ _____ ____________

15,000
13, 400
12,335
10, 200
9,665
9,135
8,600
7,350
6,100

24,000
21,400
17,935
14,600
14,065
13,135
11,800
10,350
8,350

Gross daily wage

Shunting and cleaning foremen, first class__________________ ________ ____
Shunting and cleaning foremen___. . . ------------ ------------------ ------------- ---

Track layers and b u ild ers..________________________ _______ _________
Manuallaborers, cleaners, wood polishers, right-of-way m en__________ _____

25.40
21. 85
28.35
26. 30
23. 25
21.00
21.00
20.00
16.65
16.05
19.15
17. 65
17.15
14. 65

30. 90
27.35
33.85
31. 80
28.75
26. 50
26.25
25.00
22.15
21.30
24. 65
23.15
22. 65
20.15

N et monthly salary
Temporary em ployees:2
T ypists_________________ ____ ________________________________________
Writers . . . . .
. .. .. .
_____ _______ _
__________
Messengers, janitors and custodians________________________ ____ ________

450.00
600. 00
550. 00

570.00
720.00
670. 00

Net daily wage
Specialized w o rk m en ____. . . . . . . . . . ._ . . . . . . . _____ . . . . . . . .
. . . . . . . . . . . . . . ..
Skilled workmen___ _____ _____ ___________ . . . . .
Workmen____________ ______________________________________________
W a tc h m e n ..__________ _________________ __________ _____ ______
Track layers and builders_______________ ________ _____ _ ____________
Manuallaborers, wood polishers and right-of-way men____________ . . . ___

26. 40
22. 40
21.20
20.40
20.00
19. 60

29. 60
25. 60
24. 40
23.60
23. 20
22.80

M onthly salary
N a p les district

Professional, technical, and clerical employees: >
Engineers, lawyers, chief sanitary inspectors, cashiers, chiefs of supplies,
chiefs of operations______ _____________________________ __________
Secretaries, first class, attorneys, sanitary inspectors, accountants, chief cir­
culation inspectors, office chiefs ________ . _____ . ___________ _____
Assistant technicians, chief draftsmen, bookkeepers, secretaries, second-class
storekeepers, circulation chiefs, car-shop chiefs__________________________
First-class assistants, draftsmen, foremen, first-class inspectors_________ ____
Second-class assistants and inspectors________ __________________________
Third-class assistants, chief messengers, first-aid men, telephone operators...
Typists,messengers,doorkeepers____________ ____ ________ _____ . ____

1,285

2,005

1,079

1,542

977
823
674
591
541

1,378
1,080
977
848
776

i M i n i m u m a p p l ie s t o w o r k e r s in s e r v ic e f o r le ss t h a n 2 y e a rs ; m a x im u m r e p r e s e n t s a m o u n t a f t e r 10 y e a r s ’
s e r v ic e .
* M i n i m u m a p p l ie s to w o r k e r s in service fo r le ss t h a n 3 y e a rs ; m a x im u m r e p r e s e n t s a m o u n t a f t e r 15 y e a r s ’
s e r v ic e .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

461

Wages and Hours of Labor

T ab le 1 0 . — Wages of Street-Railway Employees in Milan and Naples Districts, 1930

Continued

D i s t r i c t a n d o c c u p a tio n

D a il y w a g e
( in lire )

Wage earners:
Superintendents........................................ - .........- .........................................................
Section foremen...................................... ..............................- - - - - ............................ - Master electricians, measurers, trouble checkers, car-shop assistants, and
inventory assistants...........- ................ —............................................... - ................
First-class workmen, unclassified------ ------ ---------- — .........--------------------Aerial-installation workmen, maintenance men, conductors, autobus drivers,
caretakers, and porters.......................... ....................................- - - - - - - - - - - - - Unclassified skilled laborers, second-class maintenance men, electrician s help­
ers, aerial-installation m en’s helpers, head laborers, and head p olishers,----Unclassified skilled laborers’ helpers, maintenance men’s helpers, messen­
gers__________________________ _______ ______ ____________ - .....................
Miscellaneous helpers, common laborers, polishers................................................

Rome district—All employees are entitled to a weekly period of paid
rest and to holidays recognized by the State, at their usual rate of pay;
if they must work on these holidays such work is paid for as overtime.
For ordinary overtime, the wage is increased by 10 percent, and for
work at night by 20 percent. Piece work is paid for at 10 percent
over regular wage.
Some employees are entitled to an annual period of paid vacation
as follows:
D ays
From the second to fourth grade-------------------------------------Up to the fifth year of service-----------------------------------------From the fifth to tenth year-------------------------------------------Above the tenth year-----------------------------------------------------

30
15
20
25

In case of absence due to sickness or accident the company pays the
employee a cost-of-living allowance equal to 30 percent of basic pay.
The dismissal compensation for salaried employees amounts to 1
month’s salary for each year of service, at his last rate of pay. Other
workers are entitled to an indemnity not inferior to that based on the
following number of days:
D a ys’ pay

For
For
For
For

the
the
the
the

year
year
year
year

1924---------------------------------------------------------1925---------------------------------------------------------1926---------------------------------------------------------1927 and each succeeding year----------------------

3
4
5

The total monthly compensation consists of two parts—the actual
wage and the cost-of-living allowance. Employees who have 4 or
more children of less than 14 years of age receive a daily supplement or
cost-of-living allowance amounting to 0.50 lira. Such allowance is
maintained till December 31 of the year in which the oldest of the
children reaches his fourteenth year. The allowance in question is
increased to 1 lira daily for employees who fulfill the conditions set
forth in a law of June 14, 1928, regarding exemptions granted to


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

462

Monthly Labor Review—August 1939

families with many children (namely, those having 7 or more depend­
ent minor children).
Not later than December 23 of each year all employees receive a
special bonus, as follows:
S a la r ie d
e m p lo y e e s

Second grade----------------------------------------lire__
Third grade-------------------------------------------do._
Fourth grade-----------------------------------------do._
Fifth grade------------------------------------------- do._
Sixth grade---------------------------------------- j_do__
Seventh grade__________________________ do__
Eighth grade---------------------------------------- do__

W age
earn ers

900
780
530
445
335
290

250
120
85
75
60

The wages shown in the following table, which became effective
June 23, 1934, are gross (i. e., deductions for social insurance, etc.,
have not been made). The wages of laborers in the autobus and
tram service were increased by 12 percent effective from May 9,
1937, and those of other employees were also increased, effective
from that date, by 10 percent, with the maximum increase limited to
150 lire per month. The wage increase of March 23, 1939, also
applies to these employees. The minimum was that earned by per­
sons with less than 2 years’ experience; pay was increased each
2-year period until the maximum was reached after 7 of these 2-year
periods.
T a b l e 11. —Annual Salaries Paid to Employees of Autobus and Tram Service in

Rome 1
Salary
M inimum

Maximum

Additional
cost-of-living
allowance

L ir e

IA re

L ir e

Occupation

Salaried employees:
Engineers, accountants, and secretaries___________
Principal assistants_____________________________
Engineers, accountants, secretaries, and electrical
assistants___ _____ ____________________________
Technical superintendents_______________________
First-class technical and administrative assistants.
Technical and administrative assistants__________
Chief messengers______________________ ________
Technical and administrative helpers_____________
Telephone operators____________________________
Employees of traffic department:
Head controllers and technical controllers_________
Controllers and section chiefs____________________
Checkers__________________________________ ____
Motormen, first-aid men, etc___ _______________
Plant and office messengers, special workmen, and
porters___________________________ ___________
Switchmen and common laborers..______________

14,325
14,295

20,500
18,710

11,510
10,365
10,360
9,025
9,010
7,370
6,425

16,470
13,080
12,740
11,390
10,370
9, 220
8,040

3,030
2,360
2,365
1,975
1,990
1,495
1,240

10,340
8,425
8,415
7,370

12, 375
10,615
10,110
9,220

2,175
1,795
1,805
1,495

6,425
5,530

8,040
6,975

1,240
1,005

3,950
3,980

1 For additional data on wages in transportation in M ilan and Rome, as well as in Florence, Turin, and
Venice, on January 1, 1938, see table 3.
S H IP B U IL D IN G

The labor conditions and wages in Trieste and in the city and
Province of Genoa have been selected as representative of the ship­
building industry in Italy.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

463

Trieste.—The working hours, unless exceptional urgency requires,
are not to exceed 40 per week, with the exception of such extensions as
may be added to each weekday to make up the half day lost through
the Fascist Saturday afternoon. Overtime work is considered
(except as noted above), as any in excess of 8 hours per day. In­
creases over basic rate for overtime are as follows: On the regular
working day, for the first 2 hours 20 percent, for the following 3 hours
40 percent, and for any additional hour 80 percent; on holidays, for
the first 8 hours 45 percent, and for any additional hour 75 percent;
and for night work 20 percent. Workmen cannot be required to work
more than 10 hours of overtime per week, Saturdays excluded. The
dismissal period for workers is 48 working hours or a maximum of 8
successive working days, but the employer may substitute the follow­
ing compensation for the advance notice: For the first year’s unin­
terrupted service with the same employer, 8 hours’ pay; from the
second to fourth year inclusive, 16 hours’ pay for each year of service;
from the fifth to the fifteenth year inclusive, 24 hours’ pay for each
year of service; and for successive years, 32 hours’ pay for each year
of service. Workers ordered for service outside yards receive addi­
tional pay, in addition to traveling expenses. The so-called “thir­
teenth month” used by some firms applies generally only to adminis­
trative employees or office staffs. Piece-work pay must be so com­
puted as to make it possible for the laborer of normal capacity to
earn at least 8 percent more than the basic wage rate. Workers
serving the same employer for 12 consecutive months have a right to
6 days of paid vacation per year, which they are not permitted to
renounce. In case of collective vacation periods, workers whose
vacation has not matured are granted compensation of 8 hours for
every 2 months’ service. In case of illness the worker has a right to
3 months’ sick leave with pay. After this period he may either be
dismissed or, in the case of illness verified by a company’s physician,
he has a right to compensation as prescribed for regular dismissal
indemnity in case he cannot return to work. A woman worker who
is pregnant has, besides the period provided for by law, the right to
remain absent from work without loss of her job for a further 3 months,
but if she does not then return to work she may be dismissed with
regular dismissal compensation. Unjustified absences are subject to
a deduction of from 20 to 40 percent of basic pay for absence during
working time. The trial period for metallurgical and mechanical
laborers employed by shipyards is subject to individual and mutual
agreement, and may cover from 8 to 14 days, after which the work­
man either is dismissed or enters the employ of the shipyard under
regular contract.
The wages in the shipbuilding industry in the city of Trieste and in
the Provinces of Trieste and Istria, after the wage increase of 10 per
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

464

Monthly Labor Review—August 1939

cent which was effective on May 9, 1937, are shown in table 12,
which does not, however, take into account the increase in pay which
became effective on March 23, 1939.
T abl

12. —Hourly Wages in Shipbuilding in City of Trieste and Provinces of Trieste

and Istria
Occupation

Specialized workmen_____ . . _
Skilled workmen___ .
Specialized laborers___________
Ordinary laborers_________
Apprentices:
16-18 years of age___________________
18-20 years of a g e ____
______
Boys under 16 years of age, _____ _
Girls under 16 years of age________________
Females over 16 years of age________ ____ .

City of Trieste

Province of
Trieste
(Monfalcone)

Province of
Istria (Pola)

L ir e

L ir e

L ir e

3.41
2. 53
2.31
2.20

3.36
2. 48
2.26
2.04

3.21
2. 37
2.06
1.94

1.21
1.76
.61
. 66- . 83
1.05-1.27

1.16
1.65
.55
. 61- . 83
1.05-1.21

1.16
1.33
.48
. 91-1. 03

City and Province oj Genoa.—The wages and working conditions in
the shipyards and iron and steel works of the Province of Genoa are
those taken from the collective labor contract which became effec­
tive August 17, 1936, and was to expire on July 15, 1938, unless con­
tinued by mutual consent from year to year.
Normal working hours are 40 per week. The following increases
in pay over basic rates apply for overtime: During weekdays, 20 per­
cent for the first 2 hours, 40 percent for the next 3 hours, and 80
percent for additional hours; during holidays, 25 percent for the first
2 hours, 50 percent for the next 3 hours, and 80 percent for further
hours; for night work, 20 percent. Rates for piece work are to be at
least 8 percent above the regular basic pay.
The following statement shows the basic hourly wages in effect in
the shipyards and the iron and steel works in the city of Genoa and
elsewhere in the Province of Genoa after the 10 percent increase of
May 9, 1937, but not including the increase which became effective
on March 23, 1939.
G enoa
C ity
(lir e )

Specialized workers____________________________ 3. 39

Skilled workers_________________________________ 2. 54

E ls e w h e r e
in P r o v in c e
(lir e )

3. 21
2. 37

Apprentices:

16-18 years of age___________
18-20 years of age________________________

1. 28
1. 57

1. 16
1. 28

16-18 years of age________________________ 1. 65
Over 18 years of age______________________ 2. 30

1. 57
2. 18

Skilled laborers:

Com m on laborers:

16-18 years of age________________________
Over 18 years of age_______________________
Women_____________ _•________________________
Children_____________________________________

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1. 57
2. 18
1. 16
.5 5

1. 44
2. GO
1. 03
.4 8

465

Wages and Hours of Labor

For workers under the jurisdiction of the Port Consortium of Genoa
working conditions and wages given are those of an agreement dated
May 9, 1937, and still in effect on April 16, 1938. The normal work­
ing day is of 8 hours, beginning at 8 a. m. and continuing till 5:30
p. m., with iy2hours’ break beginning at noon, for the entire year.
The workers have been grouped into the following 5 classes, with
the basic wages indicated for an 8-hour day:
First-class boilermakers, copper boiler and pipe makers, adjusters, smiths,
coppersmiths, braziers, electricians, painters and varnishers, masons,
calkers, joiners and carpenters, and polishers and decorators---------------Ordinary boilermakers----------------------------------------------------------------------Assistant electricians and metal workers, workers applying insulating ma­
terials, chippers, and workers demolishing ships---------------------------------Assistant boilermakers, smiths, brass-smiths, coppersmiths, and braziers...
Youths_____________________________________________________________

L ir e

4(1 15
35. 80
33. 90
31. 45
21. 80

Overtime and work on holidays are paid for according to a detailed
schedule, the rates varying with the class of the worker and the time
at which the work is performed.
s e a m e n ’s w a g e s

Data are available in great detail showing wages and working con­
ditions from the ports of Trieste and Genoa. The following brief sum­
mary will show representative conditions.
Genoa.—The working day is of 8 hours. On cargo vessels, the
additional pay per hour for members of the crew working overtime is
2.05 lire for petty officers, 1.45 lire for seamen (excluding boys), and
1.05 lire for boys. Officers are entitled to a monthly bonus, for zeal
and activity, amounting to 8 percent above their monthly salaries;
they receive no compensation for overtime. On ocean-going vessels
overtime wages are as follows:
L ir e p e r h ou r

Second mate_____________________________________ 5. 65
Third mate______________________________________ 4. 70
Petty officers___________________________________ 2. 40
Seamen (excluding boys)-------------------:------------------ 1- 95
Boys___________________________________________ • 99

Overtime required by scheduled times of arrival or departure of
vessels is not entitled to any compensation.
Members of the crew with 6 months of continuous service are en­
titled to 1 day of leave with full pay for every 2 months of service.
After 1 year of continuous service they are entitled to 8 days’ leave
with full pay, and to 1 extra day for every successive month and a
half of service. If the strict necessities of the service prevent the
granting of leave, the shipowner is required to pay 1 day’s wages for
every day of leave due and not granted to members of the crew. Sup
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

466

Monthly Labor Review—August 1939

plementary wages on ocean-going vessels are as follows, per month:
10 lire for carpenters and chief stewards; and 14 lire for men attend­
ing to winches, captains of the hold, storekeepers, and greasers. On
cargo vessels certain officers are insured by the shipowners against
death and permanent disability.
Table 13 shows the rates of pay per month of officers and seamen on
cargo and ocean-going vessels. The data for cargo vessels are for
December 31, 1937; those for ocean-going vessels are for September 1,
1936, but since that time a general increase of 10 percent was made,
effective May 9, 1937, and another increase March 23, 1939, neither of
which are covered in the rates shown for ocean-going vessels.
T a b l e 13. — Monthly Pay of Officers and Seamen on Cargo and Ocean-Going Italian

Vessels
Type of vessel and occupation

Per
month

Type of vessel and occupation

Per
month

Ocean-going vessels— C o n .

C a rg o v e s s e ls

P etty officers and seamen:
Deck department:
Boatswains____ ______________
Carpenters___________________
Able seamen__________________
Ordinary seamen—
First class________________
Second class.................... ..........
Engineer department:
Firemen_____________________
Mechanics__________ ____ ____
Electricians___________________
Oilers________________________
Coal passers___________________
Steward department:
Stewards_____________________
Second stewards______________
Mess stewards________________
Cooks________________________
Second cooks__________________
Kitchen boys—________________
Deck and engineer officers:
Chief engineers____________________
First mates and first engineers______
Second mates and second engineers—.
Third mates and third engineers........

Lire

642
627
513
339
288
642
627
627
546
498
477
207
528
561
528
f 207
Ito 360
1,740
1,345
1,115
1,000

O c e a n -g o in g v e s s e ls

Officers:1
Chief engineers__________________
First mates and first engineers____
Second mates and second engineers.
Third mates and third engineers...

1,688

1, 303
1,078
968

D eck d e p a rtm e n t:
B o a t s w a i n s ____________________
C a r p e n t e r s _____________________
P l u m b e r s ______________________
M a s t e r s a t a r m s _______________
S e a m e n , a b l e __________________
S e a m e n , o r d i n a r y _______ ______
B o y s ___________________________
N u r s e s _______________ _________
E n g in e e r d e p a rtm e n t:
F i r e m e n _______________________
O ile r s __________________________
F ir e m e n o f a u x i lia r y b o i l e r s . . .
C o a l p a s s e r s _______________ ____
E l e c t r i c i a n s __________ .'________
S te w a r d d e p a r t m e n t :
C h ie f s t e w a r d s _________________
S t e w a r d s _______________________
S e c o n d s t e w a r d s _______________
S te w a r d e s s e s ___________________
B o y s ____________________________
S to re -ro o m k e e p e r s ____________
S to re -ro o m a s s i s t a n t s _____ ____
L i n e n w o m e n __________________
C h e fs a n d c o o k s _______________
S e c o n d c o o k s ___________________
T h i r d c o o k s ____ _______________
B u t l e r s _________________________
K i t c h e n b o y s ___________________
P a s t r y c o o k s ___________________
B a k e r s __________________________
B u t c h e r s ________________________

L ir e

660
644
644
602
506
303
278
506
660
536
562
491
644
665
491
470
460
278
551
278
491
( 2)

580
521
470
278
491
552
506

Master’s wages are stipulated by private contract and are never lower than chief engineer’s wages.
2 Rates set by special agreement.

[

R A Y O N IN D U S T R Y , T U R IN

The number of working hours per week fixed at 40, for good
cause and with permission of the syndicate, may be increased to 48,
but those between 40 and 48 are paid for at reguiar rate. Increases
over normaf wage rates for overtime (hours beyond 48 per week)
are as follows: During the day, for those connected with production,
35 percent, and for all others 25 percent; and on holidays, double
these percentages.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

467

Wages and Hours of Labor

The wages shown in the following table were those in effect before
the increases of May 9, 1937, and March 23, 1939.
T a b l e 14.— Hourly Rates of Pay in the Rayon Industry of Turin
Journeymen
Occupation

Apprentices

Productive establishments:
Chemical section (alkali, sulphur, filtration, soda, bleach­
ing)—Males:

L ir e

Générai services—Males:
Spinning section—Males:

Twisting and smoothing section (piece work) :

L ir e

L ir e

1.87
2. 43

2. 02
2. 53

1.95
1. 94

2.08
2.08

2.20
2.25

2.18
2.18
2. 22
2.18
2.31

2. 33
2. 43
2.45
2. 33
2.54

2. 53
2. 58
2. 73
2. 47
2. 73

.97

1.01

1.14

1.37
1.31
1.08
.98
1.41

1. 55
1.57
1.31
1.22

2. 45
2.30

2. 55
2. 50

1.22
1.03
.93
1.14
1. 55

r- - . 4- 1 -il nr-4- n-rq

After 12
months

1.83
2.18

Time workers:

Carbonic sulphur factory:

After 6
months

2.30
2.15

Male workers in factories, and artisans in general, receive the following hourly rates:
L ir t
Skilled workers-------------------------------Qualified workers----------------------------Skilled laborers-------------------------------Apprentices from 16 to 18 years of age
Boys up to 16 years-------------------------

3.
2.
2.
1.

50
90
50
60

1. 00

A G R IC U L T U R E

Because of considerable variation in the unit working period on
which the contract wage is based, variation in crops, and other dis­
similarities, consular reports on agricultural wages are especially
difficult to present in comparable form, as by tabulation. The Prov­
inces of Naples, Milan, and Trieste have therefore been taken as types
for various sections of the country.
Province of Naples—The normal working day is the legal one of 8
hours, .reduced to 7 in December, January, and February, and in­
creased to 9 in June, July, and August. For ordinary overtime and
that on holidays an increase of 15 percent is allowed; for work done
between 2 working days, time and one-fifth is paid. Wages are to be
paid weekly or semimonthly, according to local custom. Actual
wages are in general those set as minima in the collective labor con
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

468

Monthly Labor Review -August 1939

tracts. Both permanent and temporary workers are entitled to food,
including a wine ration during working hours. Regular, long-term
hands are also entitled to housing, but if no housing facilities are
available the farmer may employ day labor. The labor contract
specifies that the farmer is to furnish a garden plot, a poultry house,
and a pig pen. Sick leave, including that for confinement, on full pay
and with job held open, amounts to 20 days for temporary or seasonal
laborers and 2 months for permanent employees. Every agricultural
laborer who has been with the same employer for a year or more is
entitled to 8 days of paid vacation, divided into 2 equal portions, to be
taken at times set by the employer. Fifteen days’ notice is required
for dismissal or payment of 2 days’ wages for every year of agricul­
tural service under 10 years, and 4 days for each year over 10 years;
heirs receive the same indemnity as the worker does for dismissal in
the case of his death.
The following statement shows basic minimum monthly wages, for
permanent employees, which were also the actual wages in most
instances in 1936. An increase of 12 percent over these rates became
effective May 9, 1937, and a further increase for certain agricultural
workers took effect on March 23, 1939.
M o n th ly w a g e
(lir e )

Rural watchmen___________________
Herders__________________________
Stableboys________________________
Foremen__________________________
Common farm hands_______________
Canteen employees (to serve the wine
ration)_________________________

313
302
190
355
292
275

From November 1 to April 30 each year, temporary farm hands
received 1.17 lire per hour and from May 1 to October 31, 1.22 lire.
Province of Milan.—The working day for agricultural laborers is
normally 8 hours, but is reduced to 6 hours in November, December,
and January and to 7 hours in February; and increased to 9 hours in
August and 10 hours in May, June, and July. The labor contract is
for the year and hourly wages are not computed until the end of the
agricultural year. Overtime, defined as that in excess of 2,400 hours
per year, is paid for at an increase of 10 percent, on the basis of the
average hourly wage. The rate for piece work is 10 percent more
than the basic wage. Milkers and cowhands are to receive an indem­
nity for work done on their weekly rest day. Each worker is entitled
to 4 working days (32 hours) of paid vacation per year, of which 2
days may be consecutive. Salaried employees may purchase farm
products but may not sell them to third parties Women and girls
belonging to the family of a worker are considered bound to work if
guaranteed employment for 150 working days per year. Additional
cash allowances are made for reaping and threshing, for meals and

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wages and Hours of Labor

469

lodging when working away from place of regular employment, and
for persons to sharpen their scythes who use scythes only occasionally.
Additional allowances for each family include a 2-ro'om house in
good hygienic condition or its cash equivalent (220 lire); 100 square
meters of vegetable garden space or its cash equivalent (40 lire); and a
poultry house and a pig pen or a cash equivalent of 25 lire for each.
Special cash allowances according to the size of the farm are paid to
overseers, foremen, caretakers, and irrigators; and according to the
number of animals under their care or fixed cash allowances or both
for horsemen, plowmen, and milkers and others caring for cattle In
addition, certain workers with cattle receive 1 liter of milk per day.
Drivers of tractors, threshing machines, motors, etc., are to receive a
special allowance, to be agreed upon.
Wages were increased 10 percent from May 9, 1937, and for certain
agricultural workers another increase became effective on March 23,
1939, but the wages shown in the following statement were those in
effect in 1936.
Unmarried males, aged—
L ir e p e r ye a r
19 to 65 years_________________________________ 2, 670. 50
17 to 19 years___________________________________2, 136. 40
15 to 17 years_________________________________ 1, 635. 00
13 to 15 years_________________________________ 1, 057. 30
Heads of families, males aged—
19 to 65 years__________________________________ 1, 689. 50
18 years------------------------------------------------------------- 1, 364. 40
17 years------------------------------------------------------------861. 10
16 years________________________________________
654. 00

In addition to the above cash wages, married males receive the
following payments in kind, the quality of which is specified: 1,000
kilograms of corn, 120 kilograms of wheat, 200 kilograms of white
rice, 1 liter of milk per day, 4,000 kilograms of green wood, and 500
kilograms of dry wood. If the commodities are not furnished, the
worker must be paid their equivalent in cash.
Woman workers receive hourly rates varying with their age, as
follows: 18 to 60 years, 0.65 lira; 16 to 18 years, 0.60 lira; and over 60
or between 13 and 16 years, 0.55 lira.
Province of Trieste.—Pay for overtime and compensation for dis­
charge are practically the same as in the Province of Naples. Free
lodging must be provided for agricultural workers in accordance with
the needs of the family, subject to hygienic rules and regulations;
also a vegetable garden of at least 200 squaie meters or its cash
equivalent (20 lire per month); in the absence of pig pen or poultry
yard the worker is entitled to cash compensation of 65 lire per year
and 8 lire for each hen he is permitted to keep, respectively. The
family is allowed to keep not more than 12 hens, 30 chicks, and 1 pig,
on condition that these do not damage any of the produce of the farm.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Monthly Labor Review—August 1939

470

Forty quintals of seasoned wood are to be furnished, and distributed
in monthly allotments. One liter of milk per day is allowed to cer­
tain persons taking care of milch cows.
The wages shown in table 15 are those in effect after the increase
made on May 9, 1937, but before that of March 23, 1939.
T able

15.—Monthly Wages of Agricultural Workers in Province of Trieste
Over 18 years of
age

16 to 18 years of
age

14 to 16 years of
age

Occupation
W ithout
board
Flat country:
Cow or bull herders . _: __ .
___
Farm hands. ______ ______ . ------- _
Carso country: 1
Cow or bull herders____ _ ______________
F a rm h a n d s.._____________ . ------ --

L ir e

With
board

Without
board

L ir e

L ir e

With
board
L ir e

Without
board

With
board

L ir e

L ir e

407.05
302. 75
249. 30

287.05
190. 75
137. 30

211.90
174. 30

111. 10
73.50

166. 50
137.15

82. 50
53.15

340. 50
287. 60
236.80

228. 50
175. 60
124.80

201.30
165. 75

100. 50
64.95

158. 20
130. 25

74. 20
46. 25

1 Limestone plateau between Eastern Alps and mountains of Illyria.
S o u r c e s .—This article is based on data from the following sources: Reports of Howard F. Withey, Ameri­
can consul at Naples, March 4 and December 2, 1937 (assisted in report of March 4 by Joseph E. Haven,
American consul at Florence; Sheridan Talbott, American consul at Leghorn; Lester L. Schnare, American
consul at Milan: Gilson G. Blake, Jr., American consul at Rome; Lucienne J. Sabec, clerk at the American
consulate at Trieste; and Francis R. Stewart, American consul at Venice); Richard B. Haven, American
consul at Turin, March 12, 1937; John R. Putnam, American consul general at Genoa, March 16, 1937;
William Phillips, American ambassador at Rome, M ay 21, 1937, and March 10, 1939; Robert C. McCloud,
American vice consul at Naples, June 17, 1938 (assisted by G. H. Kemper, consul general at Rome; W.
M cK. Wilson, American consul at Genoa; R. B. Haven, American consul at Turin; L. L. Shane, American
consul at Milan; F. R. Stewart, American consul at Venice; S. Talbott, American consul at Leghorn; F.
L. Washbourne, American vice consul at Florence; and Lucienne J. Sabec, clerk at the American consulate
at Trieste); and Edward L. Reed, counselorof the American embassy at Rome, March 17,1939; U. S. Bureau
of Labor Statistics, Washington, M onthly Labor Review, January 1938 (pp. 184-185), February 1938 (pp.
485-488), and November 1938, pp. 1123-1126; U. S. Bureau of Foreign and Domestic Commerce, Washington
Commerce Reports January 21, 1939 (p. 53), and Comparative Law Series, June 1939 (pp. 291-292); Inter­
national Labor Office, Geneva, Industrial and Labor Information, March 22, 1937 (pp. 386-387) and April
10, 1939 (p. 480); Legislative Series, 1935 Italy 5 and 1937 Italy 3; News Letter of the International Food
and Drink Workers, Zurich, February 1939 (p. 48); Codice del Lavoro, Rome, Fourth edition, 1937-1938,
Vol. I, (pp. 15-61, 66-70, 71-72, and 138-150) and Vol. II (pp. 498-516); Bollettino Mensile di Statistica
dell’Istituto Centrale di Statistica del Regno d'ltalia, Supplemento ordinario alia “ Gazzetta Lfficiale,”
Rome, August 22, 1938 (p. 690), and September 21, 1938 (p. 783): Sindacato e Corporazione, Rome, August
1938 (pp. 288-292), and February 1939 (p. 301); Le Assieurazioni Sociali, Rome, January-February 1934.
(pp. 6-23) and January-February 1939, (pp. 92-93), and supplement, “Atti Ufficiaii,” M ay-June 1938
(p. 133); L'Assistenza Sociale, Rome, October-November 1937 (pp. 936-944); Rassegna della Previdenza
Sociale, Rome, April 1939 (pp. 83-84); Notiziario, Rome, February 1939, (p. 117) and April 1939, (pp. 297299); Revista del Lavoro, Rome, April 1937 (pp. 3-4); L ’Organizzazione Industriale, Rome, M ay 20, 1937,
(pp. 1-2), January 17, 1939 (pp. 4-6), March 3, 1939 (p. 1), March 10, 1939 (pp. 1, 7), March 21, 1939 (p. 4),
March 28, 1939 (p. 4), and M ay 9, 1939 (pp. 5-6); II Lavoro Fascista, Rome, M ay 1, 1937 (p. 1) and March
10, 1939 (pp. 2, 5). From the consular offices in Italy, much additional wage material is available in the
files of the United States Bureau of Labor Statistics, where it may be consulted.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Labor Turn-Over

LABOR TURN-OYER IN M ANU FACTURIN G , MAY 1939
THERE were fewer separations and a greater number of accessions in
manufacturing establishments in May than in the correspondingmonth of last year. The survey of labor turn-over in manufacturingindustries of the Bureau of Labor Statistics indicated a moderate
increase in the quit rate. No change was shown in the discharge late.
The lay-off rate declined from 3.82 to 2.67 per 100 employees, and the
total separation rate fell from 4.57 to 3.48.
Compared with the preceding month a decrease was shown in the
number of quits. The discharge and lay-off rates were higher. The
accession rate increased from 2.95 to 3.29 per 100 employees.
A ll Manufacturing

The Bureau of Labor Statistics’ survey of labor turn-over covers
approximately 5,500 representative manufacturing establishments,
which in May employed nearly 2,500,000 workers. The rates repre­
sent the number of changes in personnel per 100 employees on the pay
rolls during the month.
The rates shown in table 1 are compiled from reports received from
representative plants in 144 industries. In the 30 industries foi which
separate rates are shown (see table 2) reports were received from repre­
sentative plants employing at least 25 percent of the workers in each
industry. These data include for the first time turn-over rates foi
the paint and varnish and silk and rayon goods industries.
Table 1 shows the total separation rate classified into quit, dis­
charge, and lay-off rates, and the accession rate for each month of
1937 and 1938 and the first 5 months in 1939, for manufacturing as a
whole. The averages of the monthly rates for 1937 and 1938 are also
presented.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

471

—
J

LABOR TURN-OVER RATES IN MANUFACTURING
PER IOO ON THE

PAY

RO LL
RATE

RATE

12

12

-

8

-

6

-4

-

1940
U N IT E D

STATES BUREAU


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

OF L A B O R S T A T IS T IC S

2

0

Monthly Labor Review—August 1939

-1 0

473

Labor Turn-Over

T a b l e 1.— Monthly Labor Turn-Over Rates in Representative Factories in 144 Industries 1
Class of turn-over Jan­ Feb­ March April M ay June July
uary ruary
and year
Separations:
Quits:
1939
1938............
1937...........
Discharges:
1939
1938...........
1937_____
Lay-offs:s
1939
1938______
1937______
Total:
1939
1938______
1937............
Accessions:
1939
1938..........
1937______

Au­
gust

Sep­
N o­ D e­
ver­
vem­ cem­ Aage
tem Octo­
ber
ber
her
ber

0 85
.52
1.27

0. 64
.49
1.19

0.82
.61
1.43

0.76
.59
1.38

0.68
.62
1.37

0.61
1.89

0. 59
1.25

0. 65
1.23

0.82
1. 59

0.78
1.05

0.60
.72

0.58
.60

0.62
1. 25

. 10
.11
.21

. 10
.11
.22

. 13
.11
.24

. 10
.10
.23

. 13
.13
.21

.11
.19

.09
.21

. 10
.19

.12
.19

. 12
.10

.10
. 16

.09
.14

. 11
.20

2.24
5.45
1.90

1.87
3.79
1.44

2. 23
3.74
1.53

2. 60
3.85
1.48

2.67
3.82
1.79

3.69
1.94

3.13
2.06

2.33
2. 57

2. 62
2. 84

2. 40
4.45

2. 44
5.99

3. 21
7. 77

3.37
2.98

3.19
6.08
3. 38

2.61
4.39
2.85

3.18
4. 46
3. 20

3.46
4. 54
3. 09

3.48
4. 57
3. 37

4.41
4. 02

3.81
3. 52

3.08
3. 99

3. 56
4. 62

3.30
5.69

3.14
6.87

3. 88
8.51

4.10
4. 43

4. 09
3.78
4.60

3.06
3.13
4.71

3.34
3.13
4.74

2. 95
2.58
4. 04

3. 29
2. 84
3. 56

3.44
3.69

4.81
3.36

5. 29
3. 36

4. 51
3. 78

5.19
2.84

4. 24
1.79

3. 22
2.12

3.85
3. 55

i The various turn-over rates represent the number of quits, discharges, lay-offs, total separations, and
accessions per 100 employees.
* Including temporary, indeterminate, and permanent lay-offs.

Selected Industries

Detailed turn-over rates for 30 selected manufacturing industries
are listed in table 2, which gives the number of quits, discharges, and
lay-offs, total separations, and total accessions per 100 employees in
reporting firms in May and April 1939, and May 1938.
T a b l e 2 . —Monthly Turn-Over Rates (per 100 Employees) in Specified Manufacturing

Industries
Class of rates

M ay
1939

April
1939

M ay
1938

Automobiles and
bodies
Quit__________ _________
Discharge_____
-----Lay-off___________ _______
Total separation---------------Accession_____________

0.54
.07
4.02
4. 63
2. 38

0.49
.09
4. 22
4.80
2.41

0.37
.05
9.91
10. 33
1.91

May
1939

0. 73
.12
2. 21
3.06
9.70

0.77
. 14
7.28
8.19
6. 32

1.26
.08
5.68
7.02
10.13

Cotton manufacturing
Q uit________ _____ _______
Discharge________________
Lay-off------ --------------------Total separation................. .
Accession-------------- -----------

163839— 39------ 14


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1.34
.23
2. 61
4.18
2.96

1.27
.27
2.68
4.22
2.59

0.92
.18
4. 39
5.49
4.09

M ay
1938

Automobile parts
0.61
.15
7. 37
8.13
3.93

Brick, tile, and terra
cotta
Quit---------------------- -----Discharge___________ _____
L ay -o ff... _ _______ ____
Total separation__________
Accession_________________

April
1939

0. 57
.12
5.84
6. 53
3.48

0. 56
.06
10.82
11.44
3.81

0.46
.05
3.78
4.29
6.45

0.71
.07
8.57
9. 35
8.92

Electrical machinery
0.50
.09
2. 35
2.94
2.09

0. 54
.05
2.59
3.18
2.32

April
1939

M ay
1938

Boots and shoes
0. 62
. 11
6.23
6.96
2. 04

0.70
.13
3.72
4. 55
1.21

0.66
.08
5.34
6. 08
1.36

Cigars and cigarettes

Cement
0.32
.09
4 . 62
5.03
5.93

M ay
1939

0.
.11
5. 36
6.05
1. 32

1.39
.14
.90
2.43
3. 61

1.00
. 14
1.19
2. 33
2. 63

1.09
.07
.64
1.80
2.07

Foundries and machine
shops
0.4758
.07
1.93
2.47
2.28

0. 62
.09
2.03
2.74
2.63

0.36
.08
4.78
5.22
1.31

474
T able

Monthly Labor Review—August 1939
2.— Monthly Turn-Over Rates (per 100 Employees) in Specified Manufacturing
Industries— Continued
Class of rates

M ay
1939

April
1939

M ay
1938

M ay
1939

Furniture
Quit------- ---------------------Discharge___ ____
- . .
Lay-off---------- ---------------Total separation---------------Accession^ . . .
. . _______

0. 73
. 19
3.91
4. 83
5.31

0. 35
.05
1.16
1. 56
1.10

0. 72
.20
3. 22
4.14
3. 22

0. 42
. 15
3.71
4. 28
4. 43

0. 69
.06
5. 71
6. 46
3.93

0. 36
.04
1.07
1.47
1.07

0. 70
.09
6. 00
6. 79
3.93

M ay
1939

April
1939

0. 48
. 19
7. 65
8.32
2. 53

0. 37
.06
2. 24
2. 67
2.31

0. 35
.04
2. 75
3. 14
1.37

0. 95
.08
1.73
2. 76
1.87

1.04
. 11
1.36
2. 51
2. 74

0. 46
.20
3. 65
4.31
2. 50

0.88
. 17
1.64
2. 69
2. 63

0. 84
. 13
. 59
1.56
3. 39

0.54
.15
1.19
1.88
1.28

0. 65
. 14
1.50
2.29
1.51

0. 45
.07
4.32
4.84
.90

Machine tools
1.47
. 10
2. 54
4. 11
2. 37

Paints and varnishes

0. 75
.04
9. 54
10. 33
4.28

M ay
1938

Hardware

Knit goods

M en’s clothing
Quit____ ________________
Discharge— -----------------Lay-off___________________
Total separation__________
Accession------ ------- . . . . .

M ay
1938

Glass

Iron and steel
Quit_____________________
Discharge. ------ . . . . . . .
Lay-off__
- - - - - - - ...
Total separation--------------Accession_________________

April
1939

0.50
.08
1.54
2. 12
1.60

0. 75
.05
.36
1. 16
3. 56

0. 64
.05
.59
1.28
2. 65

0. 52
. 11
3. 69
4. 32
.74

Paper and pulp
0. 50
. 12
1.17
1.79
1. 53

0. 55
. 11
1.19
1.85
2.03

0.40
. 13
1. 51
2.04
1. 14

Printing and publishing
Petroleum refining
Book and job
Quit ____________________
Discharge________________
Lay-off------------ -------------Total separation--------------Accession----------- -------------

0. 28
. 14
1.68
2.10
4. 30

0. 22
.07
1.69
1.98
2.83

0.19
.07
1.27
1.53
1.79

0. 52
. 13
3.48
4.13
4. 23

Radios and phonographs
Quit-------------------------------Discharge__________ ____ _
Lay-off---- ----------------------Total separation_______ .
A ccession_____ _
....

1. 45
. 12
1.94
3. 51
8.73

1.35
. 15
3.64
5.14
3.38

1.25
.05
12. 19
13. 49
6.68

0. 51
.07
2. 66
3. 24
1.19

0. 36
.05
1.55
1.96
2. 04

0. 51
. 15
1.79
2.45
2.30


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0. 58
. 14
3. 48
4.20
7.35

0. 47
.28
4. 59
5. 34
5. 80

0. 52
. 14
2.35
3.01
1.08

0.71
.02
1.02
1.75
1.92

0. 45
.14
4.51
5.10
7.29

1.14
.20
2.24
3. 58
6. 29

1.16
. 19
2.24
3. 59
7- 97

0. 43
.25
1. 53
2. 21
3.94

0. 54
.07
3. 56
4.17
1.88

0. 22
.29
1.72
2.23
2.04

0. 25
.04
1.02
1.31
1.48

0. 88
.04
4. 93
5.85
1.91

0. 70
.09
2.92
3.71
1. 27

0. 59
.01
.57
1.17
1.98

Silk and rayon goods
1.12
.24
5.17
6. 53
5.19

Steam and hot-water
heating apparatus
0. 65
.07
1. 22
1.94
1.34

0. 28
.09
2.10
2. 47
2. 68

Rubber boots and shoes

Sawmills

Slaughtering and meat
packing
Quit______ _ ___________
Discharge___ . . . .
...
Lay-off__
.
..........
Total separation.. ________
Accession.
_ _ _ ______

0. 37
. 17
2. 77
3. 31
2. 96

Rayon

Rubber tires
Quit ___________________
Discharge., . . . . . .
___
Lay-off________
_____
Total separation__________
Accession____

0.41
.09
3. 08
3. 58
4.13

Newspapers

0.44
.08
1. 56
2.08
3. 37

1.10
.06
4. 67
5. 83
1.90

0.88
.08
4.16
5.12
3.24

0.81
.10
4. 44
5. 35
3. 25

Woolen and worsted
goods
0. 96
.09
1.90
2. 95
11.85

1.24
.08
5. 60
6.92
3.92

0. 74
.05
4. 97
5. 76
13. 93

Employment Offices

OPERATIONS OF U N IT E D STATES EM PLO Y M EN T
SERVICE, JU N E 1939
THE United States Employment Service marked the completion of
its sixth year of activity in the Department of Labor by the attain­
ment of the largest monthly volume of private placements in its
history. With 343,548 placements in June of which over one-quarter
of a million represented jobs filled in private industry, the total of
placements made during the fiscal year was brought to 3,134,052.
The total for the 6-year period numbered 26,252,551.
Employment Service activities in recent months have been notable
for the continued sharp gains in private placements. The June
volume of 251,371 private placements was 3.7 percent higher than in
May, which in the past has usually been the peak month for place­
ments in private jobs. Private placements were 53.5 percent higher
than in June 1938, the gains being most noteworthy for placements
of men in jobs of regular duration, which were 79.9 percent above
the total of last June.
Private placement activity has occupied an increasingly important
place in Employment Service work. During the early years of opera­
tion of the present Service placements in public or relief work consist­
ently exceeded placements with private employers. In December
1936 private jobs for the first time exceeded the combined volume of
all other types of placements and since that time they have shown an
increasingly wide margin. The 2,225,175 private placements made
in the present fiscal year represent a gain of 13.4 percent over the
total for the preceding fiscal year. During the first half of the present
fiscal year, the 6 months ended December 31, 1938, placement
activities ran behind the record of a year earlier, the 1,095,123 private
placements made in this period being 6.6 percent lower than the total
for the last 6 months of the calendar year 1937. Marked gains were
made following that time, however, 1,130,052 private jobs being
filled, a volume 43 percent above the record for the corresponding
period of the previous year. Most significant was the fact that gains
were greatest in jobs of regular duration, which increased 59.4 percent
compared to 30.6 percent for temporary jobs. Private placements
during June included 139,655 placements of men and 111,716 place­
ments of women. Placements of regular duration numbered 117,287,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

475

Monthly Labor Review—August 1939

476

up 71.8 percent from last June, and temporary placements numbered
134,084, a gain of 40.5 percent from June 1938.
In addition to the placements with private employers, Employment
Service offices made 92,177 placements in public employment, nearly
all being placements of men. Only a very small number of these
placements were in relief-type work.
Placement activities of the Employment Service from July 1, 1933,
through June 30, 1939, are summarized in table 1. Activities for the
month of June are summarized in table 2.
Over one and one-quarter million applications for jobs were received
during June, bringing to a total of 14,143,392 the number of applica­
tions for the fiscal year. This is the largest total for any year since
that ended June 30, 1934. New applications were received from
569,975 persons in June and from 6,587,309 during the fiscal year.
Renewals of previously registered applicants numbered 693,867 in
June and 7,556,083 for the 12-month period.
June applications were 4.1 percent greater than the number received
in May but were 7.4 percent less than the number received in June
1938. Men filed 877,218 applications in June and women 386,624.
On June 30, 6,271,017 registrants were actively seeking work
through the Employment Service—1.7 percent less than in May and
19.9 percent fewer than in June 1938. Men numbered 4,796,827, or
3 percent less than in May and 22.3 percent less than in June 1938.
Women numbered 1,474,190, or 2.6 percent more than in May but
11.1 percent less than in June 1938.
T able

1.—Activities of United States Employment Service by Fiscal Years, July 1933 to
June 1939
Placements

Applications
Year
Total

New

Total

Private

Public

Relief

Active
file (end
of
month)

Total (6 years)------------------ _ 76, 910,114 40,045,189 26,252,551 9, 844,627 8,565,112 7, 842,806
July
July
July
July
July
July

1938-June 1939__________
1937-June 1938_________
1936-June 1937_________
1935-June 1936_________
1934-June 1935__________
1933-June 1934__

14,143,392
12,014, 212
8,392,842
11,871,843
10, 715,974
19, 771,851

6, 587,309
6, 546,134
3,876, 572
6,263,188
4,137,012
12,634, 974

3,134,052
2,900, 056
4, 231,805
5,779,499
3,174,651
7,032,488

2,225,175
1,962,765
2,100, 606
1,160, 244
1,089,964
1,305,873

i 868,881
i 39,990 6,271,017
894, 745
42,546 7,831,063
284,930 5,016,023
1,846, 269
1, 751,724 2,867,531 6,498,076
402,919 6, 713,047
1,681, 768
1, 521, 725 4,204, 890 7, 627,375

1 M ay and June 1939, estimated.

The improvement in placement activity both during June and dur­
ing the last half of the fiscal year was general. All but the East North
Central and West North Central regions showed improvement from
May to June and every region showed gains above June of last year.
Greatest increases from the previous month were shown in the Pacific
and Mountain States areas, while the largest increases from June 1938
occurred in the New England and East North Central regions. In
New England, placements in June were 102.3 percent above the level
of June 1938.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Employment Offices

477

Declines in the number of job seekers were also distributed through­
out the entire country Decreases in the active file as compared to

PLACEMENT ACTIVITIES OF
THE UNITED STATES EMPLOYMENT SERVICE
JANUARY 1937 THROUGH JUNE 1939

PLACEMENTS OF MEN AND WOMEN

TH O U SAN DS

TH O U SAN DS

500

400

500

-

300

-

400

-

300

200

200

100

JAN

200

150

100
APR-

JU L

OCT

JAN.

APR

JU L

OCT

JAN

APR.

JU L

OCT

PLACEMENT OF MEN IN PRIVATE INDUSTRY

------------------------------ ---------------

200

-

150

100

100
50

JAN

APR

JU L

OCT

JAN

APR

JU L

OCT

JAN

APR

JU L

OCT

PLACEMENT OF WOMEN IN PRIVATE INDUSTRY

150

--------------------------------------------------------------- --------------------------------------------------------------- ----------------------------------------------------------------

150

100

-

-

100

-

50

JAN

APR

JU L

1937

OCT

JAN

APR.

JU L

1938

OCT

JAN

APR

JU L

OCT

1939

May occurred in every region except the South Atlantic and West
South Central regions. Likewise declines as compared to June 1938
were noted in every region except the West South Central. The

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

478

Monthly Labor Review—August 1939

greatest decrease as compared to May 1939 occurred in the West
North Central region, 4.2 percent less than the previous month, while
as compared to June 1938 the New England States showed a drop of
38.6 percent, the Middle Atlantic a decline of 25.1 percent, and the
South Atlantic a drop of 23.7 percent.
During June the 1,661 offices and 2,695 itinerant points affiliated
with the United States Employment Service assisted in making
103,873 supplemental placements in addition to the complete place­
ments reported above. These represent instances in which the Em­
ployment Service assisted in placing workers in jobs although it did
not participate in all of the steps necessary for a complete placement.
Altogether 193,762 solicitations of employers were made during the
month and 10,903,590 personal visits were received at the employment
offices.
T a b l e 2 . — Summary of Operations of United States Employment Service, June 1939
Percent of change from—
Activity

Total applications. _
New applications____ _____
_ _ ______
Renewals
.
.
_ ___
Total placements_________ ____. . .
Private. .
____
Regular.. ._ . . . _ ____ . _ _____ _
Temporary_____ . . . _ _ . . . . . . __
Public_____________ ________
Active file (end of month)______________

Number

1, 263,842
569,975
693,867
343, 548
251,371
117, 287
134,084
92,177
6, 271,017

M ay 1939

June 1938

+ 4.1
+10.4
-0 .5
+ 3.1
+ 3 .7
+ 6 .2
+ 1 .6
+ 1 .6
- 1 .7

- 7 .4
-2 9 .1
+23.7
+39.5
+53.5
+71.8
+40.5
+11.6
-1 9 .9

June 1937
+88.4
+68.7
+108.4
-8 .2
+11.9
+15.8
+ 8 .7
-3 8 .3
+25.0

Placements of veterans during June were above the level of June
1938 but showed decreases from the totals of May. A total of 14,338
placements were made, of which 8,646 were in private employment.
During the month 40,653 applications for work were received from
veterans, of which only 11,782 represented previously unregistered
applicants. At the end of the month 311,982 veterans were actively
seeking work through the facilities of the Employment Service.
Activities of the Employment Service for veterans during June are
summarized in tables 3 and 6.
T a b l e 3. — Summary of Veterans' Activities, June 1939
A ctivity
Total applications______________ .
N ew applications. . . . _________ _____________
Renewals.
... . _ ...
Total placements____________
. . .
Private___ _______ ______ .
Regular_________________ . . . .
Temporary___________ . . . . . .
Public__ . . . . . .
Active file (end of m onth)___________________ _____

Number
40, 653
11, 782
2 8 ,871
14, 338
8, 646
2,875
5, 771
5 , 692
311, 982

Percent of change from—
M ay 1939

June 1938

-6 .0
—10. 5
-4 .1
- 9 .3
-9 . 7
-1 0 .3
-9 . 4
—8 8
- 6 .5

—19. 0
-4 9 . 0
+ 6 .5
+ 5 .2
+ 18. 5
+45.6
+ 8 .5
—10 2
-2 9 .6

June 1937
+33.0
+25.2
+36.5
—34. 6
-2 0 .9
—30. 9
—14 7
-4 8 .3
+ 14.7

Activities of Employment Service offices in the various States
during the fiscal year ended June 30, 1939, and for the month of
June, are summarized in tables 4 and 5, respectively.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

479

Employment Offices

T a b l e 4 . —Operations of United States Employment Service, July 1938 to June 1939
Applications

Placements
Private
Division and State
Total

Per­
cent of
N um ­ change Regu­
lar
from
ber
193738

Pub­
lic

Field
visits
Total

New

SupplemenActive
tary
file,
place­
June 30, ments
1939
Oct.
19381June
1939

3,134,052 2,225,175 +13.4 1,044,467 908,877 1,852,806 14,143,392 6,587,309 6, 271,017 567,091

United States.

70,348 43,925
11,163 9,565
11,093 5, 798
4, 551 5,486
16,626 10, 236
5, 572 3, 329
21, 343 9, 511

82,074
14, 318
11,872
4,184
18, 648
7,869
25,183

848,854
125,611
81,437
37,472
323, 630
89, 451
191, 253

398,783
36, 268
22, 743
13,826
202,449
48,457
75,040

472,026
33,929
30, 716
16,791
255,294
33, 716
101, 580

New England____
M aine_________
New Hampshire.
Vermont_______
M assachusetts..
Rhode Island___
Connecticut___

154, 522 110,597 +61.4
24,038 14,473 +185. 2
23,447 17,649 +87.8
7,802 +16.1
13, 288
34*, 767 24, 531 +48.1
12, 702
9, 373 +35.6
46,280 36, 769 +54.1

Middle Atlantic.
New York____
New Jersey___
Pennsylvania..

385, 589 299,905 +15.4 155,107 85,684 264,801 3, 210, 761 1, 512,369 1, 588,956 16,942
205,289 158, 547 + 5 .0 74,146 46, 742 87,983 1,627,245 765,945 469, 377 4,997
68,412 62,607 +59.5 32, 770 5,805 87,086 478,614 232, 787 258,387 1,678
111,888 78, 751 +13.0 48,191 33,137 89,732 1,104,902 513, 637 861,192 10, 267

E. N . Central.
Ohio_______
Indiana____
Illinois_____
M ich iga n ...
W isconsin.._

513,987 417, 524 + 0 .7 214, 524 96, 463 350,129 2,783,071 1,313,915 1,222,160 36,307
114, 687 89,290 -1 8 .0 41, 586 25, 397 104,124 720,336 337,685 425, 280 16, 415
76,079 71, 364 +56.4 42, 466 4,715 51,477 461,488 224,582 198,520 9, 569
140, 392 128,764 -2 1 .4 54,177 11,628 72,403 438, 261 196,669 166,886 2,861
101, 863 72,697 +62.7 45, 717 29,166 84, 842 781,928 428,432 260,732 3, 578
80,966 55,409 + 7 .9 30, 578 25, 557 37,283 381,058 126,547 170,742 3,884

W. N . C entral....
M innesota____
Iowa_________
Missouri____
North D akota..
South D akota..
Nebraska_____
Kansas____ . . .

340,903 217, 887 + 7 .4
69,178 50, 385 - 7 .5
90,854 55, 352 +16.7
52, 305 39,040 +13.1
35,952 29,973 + 3 .5
19,085 10, 878 +38.3
39,715 15, 267 + 3.6
33,814 16,992 +14.1

123,016 238,985 1,156,697
18,793 90,902 236,815
35, 502 41,398 222,869
13, 265 38, 673 324, 383
68, 204
5,979 12, 256
41,453
8,207
8,125
24,448 25,805 107,412
16,822 21,826 155, 561

507,975
101,134
91,907
171,876
25,790
16,340
39,281
61,647

555,897 15,137
185,552 4,794
93, 280 3,996
126,285
642
31,825
906
32,044
854
53, 214
863
33,697 3,082

South Atlantic
Delaware__
M aryland...
Dist. of Columbia
Virginia_______
West Virginia. _.
North CarolinaSouth Carolina. .
Georgia...............
Florida________

439,307 244,040 +29.8 134,932 195,267 176, 324 1,761,874
42,362
3,212
5, 752 4,438
15,936 11,498 + 5 .2
39,412 26,276 +57.9 14,168 13,136 20,956 237, 342
109,
782
14,
060
3,188
3,
379
35, 704 32,516 +43.1
70, 515 34,439 +25.4 24,129 36,076 23,349 259,083
236,
582
24,
659
16,
759
13,938
41, 329 27,391 +86.8
106, 559 61,511 +22.3 35,197 45,048 27,025 339, 871
158,365
24,
314
14,083
6,
629
36, 422 12,108 -1 1 .1
73, 584 35,445 +22.0 16, 694 38,139 53,104 266, 575
1,544 16,990
6, 557 111,912
19,846
2, 856 + 8 .6

850,174
14, 567
82,457
50,705
120,717
90,082
177, 810
91,247
146,548
76,041

724,291 22,439
13, 567
209
73, 779 1,267
45,048
339
49,955 2, 441
80,850 5, 774
107, 783 5, 591
114,486
805
167, 758 1,513
71,065 4, 500

East South Central.
Kentucky..
Tennessee. .
Alabam a...
Mississippi.

202,751 104, 501
27,825 13,563
56,943 35,861
60,099 38,130
57,884 16,947

838,625
196,019
171,209
217, 221
254,176

451, 377
111,718
96,815
105,138
137, 706

420, 234 117,462
85, 381 5,055
137, 711 96, 535
131,932 10,045
65, 210 5,827

W. S. Central.
Arkansas__
Louisiana. _.
Oklahoma. ._
Texas______

541,712 419,122 +0.4 127, 733 122,590 362,485 1, 362,005
8,570 13,162 22,917 115, 536
47, 250 34,088 +24.7
57,125 43, 349 +51.7 27, 618 13,776 35,431 251,198
8, 059 14, 57f 28, 554 224,449
50,337 35, 758 +10.0
. 387,000 305,927 - 7 .0 83,491 81,073 275, 583 770,822

659,276
61, 655
116, 644
107,071
373,906

523,183 251,133
76,385 18, 787
110, 531 9,846
54,911 4, 270
281,356 218, 230

M ountain____
Montana___
Idaho______
W yoming___
Colorado-----N ew M exico.
Arizona_____
U tah_______
N evada_____

. 210,464 150, 329 +40.4
. 26,613 12, 961 +24.6
_ 29,233 20, 633 +51.5
6,009 + 2.0
. 13,063
. 49,015 39,424 +24.4
39, 561 33, 328 +132. 5
. 23,914 18,260 +31.]
_ 17,354 11.737 +3.2
7,977 +36.5
. 11,711

616,862
56, 607
86,322
43,92'
173, 569
63, 228
66,122
100,638
26,452

217,287
19,459
30,801
13, 747
60,389
23,720
32,174
27, 662
9, 335

204, 677 36, 298
27, 673 2,066
14,916 3, 668
11,870
333
64, 337 1,584
33, 532 2, 736
23, 848 20,274
24,110 4,954
4, 391
683

Pacific_______
Washington..
Oregon-------California___
Alaska___ ____
Hawaii...........

. 334, 39£ 257, 564 +11.7 117, 568 76, 835 190,37S 1, 542, 540
_ 36,278 30,085 +38.2 12, 27f 6,193 27, 50f 177, 720
23,96C 143,360
. 52,991 32,877 +26.8 21, 59( 20,1b
. 245,13C 194,602 +6.4 83, 69f 50, 528 138,91C 1, 221,460
1, 43?
8,110
61Ç
2,
79"
1,688
4, 48.
(2)
1,635
13,98'
79. 3,91.
5,931
2,018
(2)

658,999
75, 577
69,025
514,397
5,193
11,961

547,873 60,092
92, 505 8,337
47,114 22, 097
408, 254 29,658
2,42f
213
9,294 3,018

+42.9
-1 0 .6
+53.9
+29.4
+225.3

1 Data not available prior to October 1938.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

94, 598
25,699
20, 501
19, 654
11, 428
4, 354
6,463
6,499

64,075
5,748
20, 502
26,387
11,438

98, 250
14,262
21,082
21,969
40,937

77,742
8,016
30, 524
24, 904
14, 298

64,168 60,135 106, 814
7, 458 13, 652 19,13C
7,038 8,600 19,495
4,161
3,277 7,05'
13,02' 9,591 21. 23'
14,900 6,233 17,44'
9,080
10, 753 5, 65'
8,782
3, 425 5, 617
7, 486
4,298 3,734

1

8,050
1,607
1,360
213
1,773
785
2,312

Service not in operation during all of 1937-38.

480

Monthly Labor Review—August 1939
T a b l e 5 . —Operations of United States Employment Service, June 1939
TOTAL
Placements 1

Applications

Private

Division and
State
Total

Per­
cent ol Reguia
N um ­ change
(over 1
ber
from m onth
M ay

United S ta te s ... 343,548 251, 371

Field
Pub­ visits
lic

Total

Sup­
Active
ple­
file, June Persona
mental
visits
30,
1939
place­
N ew
ments

+4 117,28' 92,177 193, 762 1,263,842 569,975 6,271,017 10,903,591 103,873

N ew E n g la n d ... 18, 688 11,824
M aine_______
3,601 2,226
N . H ________
2,656 1,445
909
1,686
Vermont_____
M a s s . . . ____ 4,059 2,178
84i
Rhode Island.. 1,219
C onnecticut.. . 5, 464 4, 218

+9
+4!
-1 6
+15

Middle Atlantic.
New York___
New Jersey__
Pennsylvania.

46,430 36, 351
24, 245 19, 331
10,815 9,945
11, 370 7,075

-1
+2
+1
-1 1

20,270 10,079 38,802 323,421
9,816 4,914 10,663 156, 80'
5, 69i
87C 18,211 53,160
4,761 4,295 9,928 113, 457

E. N . C en tral...
Ohio_________
Indiana. ____
Illinois.______
Michigan__ .
Wisconsin____

56,929
14,169
8,287
10, 971
14, 294
9,208

47, 239
11,356
7,915
10, 772
10, 598
6,598

-2
-1C
+3
-1 2
+15
+0

25,159
5, 706
4, 398
4,825
6,322
3,908

W. N . C entral.. 34, 690 22,114
Minnesota___
7,901 5,155
Iowa_________ 9, 304 5, 220
Missouri ___ 6,516 5,122
North Dakota. 2,483 1, 742
South Dakota. 1,674 1,030
3, 805 1,463
Nebraska____
Kansas. . . ___ 3,007 2, 382

-5
-5
-1 5
+1
+8
+1
-9
+3

10,019
2,795
1,887
2,475
790
434
680
958

12,576 24,310 101, 622 46, 555
2,746 7,820 19, 511 8,278
4,084 4,156 20, 723 8,485
1, 394 4, 535 33,940 18,049
741 1,404
4,313 2,134
644
755
3,157 1,447
2,342 2,446
7,880 3,416
625 3,194 12,098 4,746

555,897
185,552
193,280
126, 285
31,825
32,044
53, 214
33, 697

718,224
200,474
148,072
188, 927
34, 517
19,810
56,275
70,149

2,148
1,158
132
74
129
100
133
422

South A tla n tic.. 46, 010 25,995
Delaware..
2,072 1,392
Maryland____ 4,079 2,875
Dist. of Col__
3,915 3,251
Virginia______ 7,129 3, 760
West Virginia. 3,594 2,320
N . C ________
9, 719 4, 864
S. C _________ 4,120 1,120
Georgia___ . . 9, 312 5,410
Florida______
2,070 1,003

+0
-7
+2
-2 0
-1 6
+2
+13
+5
+18
+21

13, 279
474
1,651
1,417
2, 585
1,453
2, 634
578
1,971
566

20,015 17, 338 154,101 67,994
680
473
4, 984 1,584
1.204 1,862 28, 438 6, 655
664
428
9, 855 4,258
3, 369 2,519 20, 897 9,177
1,274 2,216 19, 621 6,441
4,855 1,634 22, 593 9,842
3,000 1,184 10, 434 5, 598
3, 902 5, 554 21,878 12, 719
1,067 1,468 15, 401 11, 720

724, 291 1, 245, 230
13, 567
24,966
73, 779 126, 708
45, 048
66, 219
49, 955 157, 348
80, 850 163,726
107,783 256, 427
114, 486 129,440
167, 758 174, 410
71, 065 145, 986

3,404
22
121
32
264
470
2,149
59
145
142

E. S. Central__ 21, 975 12, 253
Kentucky___
3, 631 2.021
Tennessee____ 6, 394 4, 558
Alabama........ . 5,347 3, 741
M ississippi___ 6, 603 1,933

-4
-4
-5
-1 5
+37

4,637
808
1,710
1,459
660

9, 722
1,610
1,836
1,606
4,670

64, 720 33,890
16,463 9, 884
14, 654 8, 363
15,040 6,591
18, 563 9,052

420, 234
85, 381
137, 711
131,932
65, 210

508, 280 25,193
100,941
476
152,199 22,122
159, 539 1,598
95, 601
997

W. S. C entral... 53, 270 42, 539
A rkansas... . . 7,575 6,506
Louisiana__ _ 5, 027 3,975
6,041 4, 845
Oklahoma___
Texas. ______ 34, 627 27,213

+1
+1
-1 8
-1 6
+9

13,087
1,054
2, 734
1,005
8, 294

10,731 32, 254 101, 289 50,846
1,069 2,271
9,799 5, 388
1,052 4,143 19, 512 8, 822
1,196 4,171 18, 289 7,788
7,414 21, 669 53, 689 28,848

523,183
76, 385
110,531
54,911
281, 356

993, 653 43, 698
105, 036 5,077
154,225
760
154, 851
641
579, 541 37,220

M ountain______ 23, 375 16,988
M o n ta n a ____ 2,064
795
Idaho________ 4, 345 3,249
W yoming____
1,198
541
Colorado_____ 7, 304 5, 907
New M exico... 2,206 1,415
Arizona.. . .
2,314 1,894
U tah________
2,581 2,199
N evada______ 1, 363
988

+26
-7
+27
-3 2
+30
+13
+9
+172
+3

6, 073
476
817
260
2,038
889
663
370
560

204, 677
27, 673
14,916
11, 870
64, 337
33,532
23,848
24,110
4, 391

379,934
39, 329
57,170
29, 812
127,455
29,525
39, 213
38,135
19, 295

Pacific....... .......
40, 779 35, 590
W ashington... 8,603 8,039
Oregon______
7,490 5,715
California____ 24, 686 21, 836

+23
+90
+30
+8

Alaska ................
Hawaii________

-1 8
+u|

1 Preliminary.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

866
536

242
236

+12
+7

8,077
l,84f
1,02!
597
1,512
52(
2,574

6, 864
1,378
1, 21]
777
1,881
37]
1,246

7,190
1,187
1,468
51(
1,174
87(
1,981

83, 524 38, 038
9,548 3, 525
6,70'
2 ,32(
1,74]
3,45]
30, 795 18, 37'
8,815 4,355
24,211 7,723

787,922
68, 389
38, 398
14,428
401,118
116, 799
148, 790

776
275
172
20
50
52
207

143,184 1,588,956 3,118,562
72, 57£ 469, 377 1, 676,00(
26, 726 258,387 324,19'
43, 879 861,192 1,118, 368

3,382
1,146
899
1, 337

9,690 37, 516 236, 730 107,042 1,222,160 1,959,088
2,81S 14, 84C 69, 245 32,402 425, 280 693,247
372 3, 479 40, 227 18,838 198, 52C 268,680
19S 3,848 38,929 23, 611 166, 886 185,158
3, 696 12,617 54, 698 20,096 260,732 651, 511
2,610 2,723 33, 631 12,095 170, 742 160,492

6,933
4, 790
1,475
240
157
271

7,481
1,040
3, 276
1, 791
1, 374

6, 387 12,008
1,269 1,663
1,096 1,910
657
349
1,397 3, 246
791 1,455
420 1, 737
382
960
375
688

53, 244 20, 552
4,782 1,889
6, 300 2,648
3,927 1,456
15, 220 5, 915
4, 304 1,835
5, 621 2,448
10,165 3,166
2,925 1,195

16,473 5,189 16, 504 143,117 60, 318
564 3,299 19,128 8,780
2,840
3,093 1,775 2,438 11,881 5, 328
10, 540 2,850 10, 767 112,108 46, 210
114
99

472,02C
33,929
30, 716
16, 79]
255, 29'
33, 716
101, 580

624
300

181
178

940
1,134

570
986

3, 862
295
331
32
680
168
1,010
1,297
49

547, 873 1,171,057 14,161
92,505 138, 792
926
47,114 121, 600 9,187
408,254 910, 665 4,048
2,426
9,294

10, 549
11,091

55
261

481

Employment Offices

T a b i /e 5 . —Operations of United States Employment Service, June 19 9— C on tin u ed
MEN
Applications

Placements i

Total

Per­
Public
cent of Regu­
lar
N um ­ change
(over 1
ber
from month)
May

Total

N um ­
ber

91,508 8877, 218 357,783

231,163 139, 655

+3

56,664

N ew England....... .......
M aine..................N ew Hampshire.
Vermont________
Massachusetts___
Rhode Island-----Connecticut..........

13,100
2, 578
2,106
1,275
2,858
724
3, 559

6, 266
1,203
911
499
983
354
2,316

+5
+38
-2 5
+13
-5
+25
+9

4, 322
966
650
326
682
222
1,476

M iddle A tlan tic..
N ew York___
N ew J ersey ...
Pennsylvania.

25, 314
14,014
4,314
6,986

15,297
9,139
3, 451
2,707

-7
-2
-6
-2 2

8,926
4, 718
2, 374
1,834

East North Central.
Ohio.....................
Indiana...............
Illinois................
Michigan--------Wisconsin...........

34,097
8,413
4, 229
5,454
9,910
6,091

24, 557
5,625
3,880
5,264
6,226
3,562

-2
-1 1
+3
-1 9
+20
+6

12, 082
2,627
1,772
2,130
3, 586
1,967

9,540
2, 788
349
190
3, 684
2,529

West North Central.
M in n esota-........
Iowa......................
Missouri_______
North D a k o ta South Dakota__
Nebraska.............
Kansas...............

24, 475
5,248
6, 729
4,273
1,688
1,207
3,149
2,181

12,029
2,532
2,695
2, 883
960
566
836
1, 557

-6
-1 3
-1 8
-2
+7
+3
-3
+8

4,591
1,224
858
1,158
369
230
260
492

12,446
2,716
4,034
1,390
728
641
2, 313
624

South Atlantic.
D elaw areM aryland..

34,184
1,378
3,029
1,975
5,328
2,406
7, 298
3, 664
7,499
1,607

14,227
700
1,827
1,322
1,963
1,133
2,463
670
3,606
543

+1
-9
-2
-2 6
-1 6
+8
+1
-2
+31
+23

6, 627
246
1,022
534
1,341
717
1,137
252
1,118
260

17,107
2, 558
4, 546
4, 242
5, 761

7,400
950
2,711
2,647
1,092

+0
-1 8
+9
-8
+27

West South Central.
Arkansas..............
Louisiana.............
Oklahoma...........
T exas.................. .

36,267
5,768
2,920
. 4,014
. 23,565

25,572
4, 708
1,870
2,823
16,171

M ountain______
M ontana___
Idaho---------W yoming___
Colorado-----N ew M exico.
Arizona.........
U tah_______
N evada_____
Pacific...................
W ashington.
Oregon_____
C alifornia...

United States.

Active
file,
Per­ June 30,
1939
cent of
change
from
M ay

New

Private
Division and State

+ 7 4,796,827

52,032
6,759
4, 583
2,368
17, 574
5,174
15, 574

20, 689
2,137
I , 502
1,083
9,544
2,508
3,915

+18
+53
+27
+48
+7
+14
+25

10,017 2
4,875 96,137
863 33,428
4, 279 81,484

84, 274
43, 817
14, 086
26, 371

-1 2
+ 10

6,834
1,375
1,195
776
1,875
370
1,243

1,176,381
305, 397
183,299
687,685
+18
-0

67,919
20,926
I I , 264
16,018
12,856
6,855

+12
+0

+11

2. 851
2,246
5, 762
8,977

28,022
4.945
5,216
10, 599
1,169
841
2,085
3,167

19, 957
678
1, 202
653
3, 365
1, 273
4.835
2,994
3,893
1,064

3,375
22,361
5,994
15,182
16,055
15, 882
7, 775
15, 406
10, 810

44,975
958
4,274
2, 621
6,405
4, 607
6, 572
3, 698
8.105
7, 735

-1
+47
+32
+35
-4
-4 6
-7
+14

2,067
311
626
832
298

9,707
1,608
1,835
1,595
4,669

50, 737
12, 683
10, 294
11,637
16,123

24,808
7, 258
5,604
4, 547
7.399

-3
+1
-3 2
-2 2
+5

5,154
386
1,263
302
3,203

10, 695
1,060
1,050
1,191
7,394

72,930
7,172
14,058
13,662
38, 038

34,890
3,836
5,942
5,419
19, 693

. 18,297
. 1,865
. 3,481
. 1,025
. 5,654
. 1,887
. 1,638
. 1,692
- 1,055

11, 967 ' +26
-5
610
2,390
+31
-4 1
368
+33
4, 271
+21
1,109
1,221
+7
+190
1,315
683
+3

3,866
348
441
175
1, 213
658
406
227
398

6,330
1,255
1,091
657
1,383
778
417
377
372

41, 285
3,956
5,145
3,148
11, 442
3, 367
4,286
7,602
2,339

14,110
1,336
1,959
1,078
3,931
1,256
1,718
1.946

. 27,120
_ 6,018
. 6,008
. 15,014

22,008
5,467
4,324
12, 217

+22
+81
+26
+5

8,906
1,412
2,111
5, 383

5,112
551
1,764
2,797

97,184
12,979
9,009
75,196

769
433

198
134

-2 3
+7

97
26

571
299

788
767

Virginia----------West V ir g in ia North Carolina.
South Carolina.
G eorgia.............
Florida................
East South Central.
Kentucky...........
Tennessee..........
Alabama....... .

.

Alaska..
Hawaii.
i Preliminary


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

48,442
25,977
27,781
42,249
23, 298
69,859
12,952
14,385
22,686

319,829
25,893
22, 318
12, 724
171, 356
18,838
68, 700

+22
+22

+11

+24
+23
+19
+8
+23
+14
+8

-5

+20

+8
+5

-1 1

+16
+1

+23
+6

-8

+8
-3
+11

990,656
350,627
155, 545
130,781
215,118
138, 585
432, 786
147,901
72,128
92,174
25,493
25, 498
42,613
26,979
534,217
9,360
57,031
30, 612
35, 572
69, 398
69,314
88,569
119,178
55,183
338,439
70,441
107, 348
106,088
54, 562
422,885
65,568
89,214
44,697
223,406

886

+9
+29
+60
+7

169,204
23,383
12.782
9, 757
52,208
27,682
20,018
19, 727
3,647

37,007
4, 759
3,696
28, 552

+16
+13
+24
+16

402,612
75,660
35.783
291,169

457
632

-3 4
-1 3

2,116
7,702

+ 11

+29
+6
+ 10

-8

482

Monthly Labor Review—August 1939

T a b l e 5.

Operations of United States Employment Service, June 1939— Continued
WOMEN
Placements 1

Applications

Private

New

Division and State
Total

United States___ _

Percen
of
Regular
Numbe change (over 1
from month)
M ay

Total

Active
file,
30,
Percent June
1939
of
Number change
from
M ay

112,385

111, 716

+5

60, 623

386,624

212,192

+17

1,474,190

N ew E ngland.. . . .
Maine______
N ew Hampshire...
Vermont__
M assachusetts...
Rhode Island
Connecticut

5,588
1,026
550
411
1,201
495
1,905

5,558
1,023
534
410
1,195
494
1,902

+14
+66
+6
+18
+6
+4
+5

3, 755
879
379
271
830
298
1,098

31, 492
2,789
2,121
1,083
13, 221
3, 641
8, 637

17, 349
1,388
818
658
8, 830
1,847
3,808

+20
+44
+18
+82
+17
-1 0
+33

152,197
8,036
8, 398
4,067
83,938
14, 878
32,880

Middle Atlantic
New York_____
New Jersey. . . .
P enn sylvan ia___

21,116
10, 231
6, 501
4, 384

21, 054
10,192
6,494
4, 368

+4
+7
+5
-2

11,344
5,098
3, 319
2,927

112,372
60, 667
19, 732
31,973

58, 910
28, 762
12, 640
17, 508

+8
+1
+3
+27

412, 575
163,980
75,088
173, 507

East North Central__
Ohio________
Indiana___
Illinois .
Michigan___
Wisconsin

22,832
5, 756
4,058
5, 517
4, 384
3,117

22,682
5, 731
4,035
5, 508
4, 372
3,036

-2
-9
+3
-4
+9
-5

13,077
3, 079
2, 626
2, 695
2, 736
1,941

68,983
20,803
14, 250
11,148
12, 449
10, 333

39,123
11,476
7, 574
7,593
7,240
5,240

+36
+32
+38
+26
+30
+74

231, 504
74, 653
42,975
36,105
45,614
32,157

West North Central.
M innesota.. . . . .
Iowa.
Missouri___
North Dakota
South Dakota.
Nebraska.... _
Kansas. __

10,215
2,653
2, 575
2,243
795
467
656
826

10,085
2, 623
2, 525
2, 239
782
464
627
825

-2
+4
-1 2
+5
+9
-2
-1 6
-6

5,428
1, 571
1,029
1, 317
421
204
420
466

31,763
6, 559
6, 338
11, 254
1,462
911
2,118
3.121

18, 533
3, 333
3,269
7,450
965
606
1,331
1,579

+25
+56
+41
+5
+100
+23
-4-27
+22

123, 111
37, 651
21,152
34, 111
6, 332
6, 546
10, 601
6,718

South Atlantic____
D elaw are... .
M aryland______
District of Columbia. ._
Virginia
West Virginia. _.
North Carolina ..
South Carolina
Georgia__________
Florida. . _____

11,826
694
1,050
1,940
1,801
1,188
2, 421
456
1,813
463

11,768
692
1,048
1,929
1,797
1,187
2,401
450
1,804
460

-0
-6
+8
-1 6
-1 5
-3
+28
+16
-1
+18

6,652
228
629
883
1,194
736
1,497
326
853
306

41. 261
1,609
6, 077
3, 861
5,715
3, 566
6, 711
2, 659
6, 472
4, 591

23,019
626
2, 381
1,637
2, 772
1,834
3, 270
1,900
4,614
3,985

+10
+3
+26
+22
+2
+20
-1 2
+13
+9
+27

190,074
4, 207
16, 748
14, 436
14, 383
11,452
38, 469
25,917
48, 580
15,882

4,868
1,073
1,848
1,105
842

4,853
1,071
1,847
1,094
841

-1 0
+ 13
-2 0
-2 9
+53

2, 570
497
1,084
627
362

13,983
3, 780
4,360
3,403
2,440

9, 082
2, 626
2, 759
2,044
1,653

-7
-9
+6
-9
-2 0

81,795
14,940
30, 363
25,844
10,648

17,003
1,807
2,107
2,027
11,062
5,078
199
864
173
1,650
319
676
889
308
13, 659
2,585
1,402
9, 672
97
103

16, 967
1,798
2,105
2, 022
11,042
5,021
185
859
173
1,636
306
673
884
305
13, 582
2, 572
1,391
9,619
44
102

+8
+2
+1
-6
+14
+24
-1 4
+17

7, 933
668
1,471
703
5, 091
2,207
128
376
85
825
231
257
143
162
7,567
1,428
982
5,157
17
73

28, 359
15,956
2, 627
1, 552
5,454
2,880
4, 627
2, 369
15, 651
9,155
11,959
6, 442
826
553
1,155
689
779
378
3, 778
1,984
937
579
1, 335
730
2, 563
1,220
586
309
45,933
23, 311
6,149
4, 021
2,872
1,632
36,912
17, 658
152
113
367 1
354

+19
+7
+21
+10
+22
+41
+74
+8
+47
+40
+16
+30
+89
+40
+20
+58
+8
+16
+61
+90

100, 298
10,817
21,317
10,214
57,950
35,473
4,290
2,134
2,113
12,129
5,850
3; 830
4, 383
744
145, 261
16,845
11,331
117,085
310
1,592

East South Central
Kentucky. _.
Tennessee
A labam a.. _
M ississippi.._ _ .
West South Central
Arkansas. _
L o u isia n a__
Oklahoma.
Texas_____
M ountain___
M ontana. __
Idaho___
W yoming. .
Colorado_____
N ew Mexico__
Arizona. .
U tah.
Nevada_____
Pacific____
Washington.
O regon...
C alifornia... _ . . .
Alaska. . _
Hawaii_________ ____
1 Preliminary.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

+22
-9
+12
+149
+3
+26
+ 113
+41
+12
+13
+16

4B3

Employment Offices
T a b l e 6 . —Operations of United States Employment Service, June 1939
VETERANS
Applications

Placements 1

New

Private
Division and State
Total

N um ­
ber

Per­
Regu­ Public
cent of
lar
change (over 1
from month)
M ay

Total

Active
file,
June
Per­ 30,1939
cent
of
N um ­
change
ber
from
M ay

United States___________

14,338

8,646

-1 0

2,875

5,692

40,653

11,782

-1 0

311,982

New England......... ............
M aine______________
N ew Hampshire___
Vermont__________
Massachusetts______
Rhode Island_____ ...
Connecticut............... -

857
155
136
82
171
56
257

365
75
43
36
44
25
142

-5
+14
-2 8
+13
-3 1
+19
+1

241
57
28
22
36
21
77

492
80
93
46
127
31
115

2, 554
303
244
80
805
251
871

702
64
46
24
380
58
130

+1
+36
-3 9
-1 1
-4
+142
+2

23, 406
1,594
1,737
688
14,485
673
4, 229

M iddle Atlantic________
New York________ _
N ew Jersey_________
Pennsylvania______

1,185
594
236
355

. 707
379
172
156

-1 4
-1 8
+1
-2 0

342
151
102
89

478
215
64
199

7,154
2,358
1,338
3,458

?, 069
917
254
898

-1 5
-2 2
-1 5
-7

55,772
9,759
9,291
36, 722

East North Central___
Ohio____ __________
Indiana____________
Illinois_____________
Michigan__________
Wisconsin________ ...

2, 237
523
293
417
592
412

1,583
339
268
394
392
199

-1 3
-2 4
-1 4
-1 7
+5
-1 3

681
137
101
126
226
91

654
184
25
23
200
222

8,430
2,409
1,167
1.315
2,063
1,476

2,569
944
343
490
527
265

-8
-4
-1 2
-1 4
-5
-6

73,238
24,433
10,761
12, 358
16,054
9,632

West North Central____
M innesota_________
Iowa______________
Missouri________ . . .
North Dakota______
South Dakota____ _
Nebraska__________
Kansas____________

1,971
310
809
318
119
104
164
147

1,026
127
383
251
41
59
50
115

-2 3
-2 4
-2 9
-2 1
+128
-2 8
-4 0
-1 2

267
52
72
85
13
11
10
24

945
183
426
67
78
45
114
32

3,872
594
944
1,178
120
94
259
683

1,019
169
199
391
34
28
74
124

-1 0
-2 0
-9
-4
+17
+22
-1 1
-2 6

34, 206
12.716
5,439
7,088
1,524
1,976
3,403
2,060

South Atlantic___ _____
Delaware__________
Maryland__________
District of Columbia
Virginia___________
West Virginia______
North Carolina_____
South Carolina_____
Georgia____________
Florida____________

1,898
95
195
167
319
175
367
169
311
100

793
53
108
108
118
68
120
34
148
36

-1 5
-1 8
-2 1
-3 2
-1 2
-3 6
+1
+6
+3
+3

316
19
59
35
59
36
45
8
39
16

1,105
42
87
59
201
107
247
135
163
64

4,875
158
1,338
376
553
612
561
281
430
566

1,294
20
136
163
112
99
174
91
158
341

-2 1
+11
+28
-7
-1 8
-6 9
-2 4
-2 2
-1 0
-8

31, 691
594
4,059
4,203
1,783
3,831
3,235
4,299
5,439
4,258

East South Central_____
Kentucky_________
Tennessee_________
Alabama__________
M ississippi________

804
171
245
222
166

366
70
125
143
28

-3
-2 4
-1 8
+40
-1 3

130
29
42
52
7

438
101
120
79
138

1,885
560
574
423
328

697
238
206
127
126

-1 2
-3 1
+10
-1 4
+12

20,924
4,458
6,925
6, 295
3,246

West South Central____
Arkansas__________
Louisiana__________
Oklahoma_________
Texas_____________
M ountain_____________
Montana__________
Idaho_____________
W yoming__________
Colorado__________
N ew Mexico_______
Arizona____________
U tah______________
Nevada____________
Pacific________________
W ashington_______
Oregon____________
California_________
Alaska_______ ____ ____
Haw aii________________

1,989
259
110
350
1,270
1,361
171
366
101
331
70
113
106
103
1,973
268
443
1,262
42
21

1,540
221
73
248
998
777
42
236
28
217
42
77
61
74
1,477
207
281
989
4
8

-9
-7
-4 9
-3 7
+8
+1
-3 1
+5
+4
+9
+31
-1 3
0
-4
+5
+14
+49
-4
-6 0
+33

209
18
44
27
120
197
20
44
10
52
22
19
3
27
487
69
107
311
3
2

449
38
37
102
272
584
129
130
73
114
28
36
45
29
496
61
162
273
38
13

2,842
331
501
698
1,312
2, 512
282
372
219
672
134
182
484
167
6,461
691
462
5,308
39
29

801
108
119
220
354
584
60
111
60
142
46
64
53
48
1,995
100
134
1,761
28
24

-1 5
-1 1
-8
-2 9
-9
-1 1
-1 2
+9
+28
-2 9
-2 7
-2 0
+13
-9
0
-3 8
+6
+3
0
-1 7

23,779
4,167
4,941
5,030
9, 641
11,925
1,728
797
594
3,406
1,822
2,065
1,240
273
36,431
6,085
2,831
27,515
121
489

1

_

.

Preliminary.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Trend of Employment and Pay Rolls

SUM MARY OF REPO RTS FOR JU N E 1939
Total Nonagricultural Employment

EMPLOYMENT in nonagricultural industries showed a further gain
of nearly 400,000 in June. Approximately 143,000 of this increase was
accounted for by the settlement reached in the bituminous-coal
mining industry, but even with this eliminated, the current gain was
larger than any rise reported for the month of June during the past 9
years, with the exception of 1936. Over 1,200,000 more workers
were employed in private nonagricultural activities this June than
a year ago. These figures do not include emergency employment
which decreased approximately 75,000 in June as follows: 30,000 on
projects operated by the Works Progress Administration, 11,000
on work projects of the National Youth Administration, and 34,000
in the Civilian Conservation Corps.
Industrial and Business Employment

Employment and pay-roll gains from May to June were quite
general. Of the 87 manufacturing industries surveyed monthly by
the Bureau of Labor Statistics, 51 reported more workers employed
and 57 reported larger pay rolls. Of the 16 nonmanufacturing
industries covered, 12 had more workers in June than in May and
10 had larger pay rolls.
The gains of 0.6 percent, or 37,000 wage earners, in factory employ­
ment, and 2.1 percent, or $3,400,000, in weekly wage disbursements of
manufacturing industries were contraseasonal. The usual changes
from May to June are declines of 0.6 percent in employment and 0.8
percent in pay rolls. The increases from June 1938 to June 1939 were
11.0 percent for factory employment and 21.8 percent for factory
pay rolls.
The durable-goods group of manufacturing industries employed
0.7 percent more workers than in May of this year and 15.9 percent
more than in June of last year. In the nondurable-goods group
there were corresponding increases of 0.3 percent and 7.4 percent.
Pay rolls in the durable-goods groups were 3.0 percent higher than
in May 1939 and 32.7 percent above June 1938, while in the non­
durable-goods group the gains were 1.3 percent and 12.6 percent.
484

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Trend of Employment and Pay Rolls

485

Many of the employment gains in the separate manufacturing
industries were greater than seasonal and in some instances they were
contrary to the usual seasonal pattern. Among the industries showing
such increases were locomotives, aircraft, brick, millwork, shipbuilding,
machine tools, glass, furniture, steel, foundries and machine shops,
automobiles, woolen and worsted goods, meat packing, petroleum
refining, cigars and cigarettes, shoes, men’s clothing, and baking.
Among the industries reporting employment losses that were larger
than seasonal were cottonseed—oil, cake, and meal; millinery, hard­
ware; lighting equipment; dyeing and finishing textiles; wirework;
shirts and collars; and carpets and rugs. Cotton goods mills and wo­
men’s clothing firms reported less-than-seasonal employment declines
and silk and rayon goods mills showed a contraseasonal decrease.
The unbroken series of monthly employment gains in aircraft
factories, which began in October of last year, continued in June, when
the employment index for that industry was nearly 13 times the 192325 average and nearly 2% times the 1929 figure. The June employ­
ment index for shipbuilding was 121.3 percent of the 1923-25 average,
gains having been reported each month since last August. The June
index is above the level of any month since April 1923. Employment
in machine-tool factories has also risen each month since August 1938,
the June 1939 index being 137.0 percent of the 1923-25 average, the
highest level since February 1938.
The employment gain in June in retail trade, although slight, was
significant, as increases from May to June have been shown in only 4
of the preceding 10 years. The employment and pay-rolls levels
for this industry were considerably higher than in June of last year.
The general merchandising group, consisting of mail-order houses
and department, variety, and general merchandising stores, showed a
slight employment gain. Dealers in lumber and building materials
and in coal, wood, and ice increased their personnel seasonally,
while firms dealing in farmers’ supplies and furniture cut their forces
seasonally. The remaining lines of retail trade showed employment
gains, those of a seasonal nature being food, automotive, drugs, and
hardware.
The employment increase of 1.1 percent in wholesale establishments
was contraseasonal, with most lines of trade sharing in the gain.
Among these lines were food products; groceries; dry goods and apparel;
machinery, equipment, and supplies; petroleum and its products;
automobiles; chemicals, drugs, and allied products; and lumber and
building materials. Among the few lines reporting reduced employ­
ment were farm products and farm supplies, hardware, jewelry and
optical goods, and leather and leather goods.
The gains in bituminous-coal mining of 64.9 percent in employment
and 245.8 percent in pay rolls were contraseasonal and indicated the

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

486

Monthly Labor Review—August 1939

return to work of 143,000 wage earners between mid-May and midJune and an increase of more than $5,500,000 in weekly wages.
Many firms had only partially resumed operations or were still idle
during the May 15 period following the signing of wage contracts.
Therefore the June gains reflected the general resumption of operations
in bituminous-coal mines.
The decrease of 2.6 percent in the number of anthracite mine workers
was less than seasonal, while the large pay-roll decline (36.7 percent)
indicated a slackening of activity following the unusual pay-roll gains
of April and May. The employment loss of 1.0 percent in metal
mining was contraseasonal, while the pick-up of 3.9 percent m (quar­
ries was greater than the average June increase (1.5 percent) for the
last 10 years. The employment gains in the public utilities, in laun­
dries, and in dyeing and cleaning establishments were also better
than average for this month according to available records, while the
decline of 0.8 percent in year-round hotels was seasonal.
Employment in private building construction showed an increase of
1.4 percent from May to June, according to reports from 14,299 con­
tractors employing 133,687 workers in June. Pay rolls decreased 0.7
percent. The June expansion in employment was retarded to some
extent by the recession reported in New York State, which showed a
further decrease of 8.3 percent. The combined report for the Mid­
dle Atlantic Area showed a decrease of 5.7 percent. The substantial
gains repoi ted in the East and West North Central States and New
England in the past 2 months were contmued with more moderate in­
creases of 7.1 percent, 5.0 percent, and 4.4 percent, respectively. In­
creases of 4.6 percent and 8.7 percent were reported from the West
South Central States and the Mountain States while employment in
the East South Central States dropped 4.9 percent, and in the Pacific
States, 1.4 percent. Employment in the South Atlantic region rose
I. 0 percent, all of the South Atlantic States reporting increases except
Delaware, Maiyland, and the District of Columbia. The decrease of
II. 7 percent in the District of Columbia was due primarily to labor
difficulties. The reports on which these figures are based do not cover
construction projects financed by the Works Progress Administra­
tion, the Public Works Administration, and the Reconstruction
Finance Corporation, or by regular appropriations of the Federal,
State, or local Governments.
A preliminary report of the Interstate Commerce Commission
showed a gain since May of 3.6 percent or 34,138 persons in the
number employed by class I railroads. The total number working
in June was 991,900. Corresponding pay-roll figures were not avail­
able when this report was prepared. For May they were $150,858,242
as against $144,962,740 in April, an increase of 4.1 percent.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

487

Trend of Employment and Pay Rolls

Hours and earnings.—The average hours worked per week by wage
earners in manufacturing industries were 37.2 in June, an increase of
1.4 percent since May, and the average hourly earnings of these
workers were 65.0 cents, an increase of 0.1 percent as compared with
the preceding month. Average weekly earnings of factory workers
climbed l.,5 percent to $24.25.
Of the 14 nonmanufacturing industries for which man-hour data
are available, 8 showed increases in average hours worked per week,
and 8 showed gains in average hourly earnings. Eleven of the sixteen
nonmanufacturing industries surveyed reported higher average weekly
earnings.
Employment and pay-roll indexes, and average weekly earnings in
June 1939 for all manufacturing industries combined, for selected non­
manufacturing industries, and for class I railroads, with percentage
changes over the month and year intervals, are presented in table 1.
T a b l e 1.—Employment, P ay Rolls, and Earnings in A ll Manufacturing Industries

Combined and in Nonmanufacturing Industries, June 1939 (Preliminary Figures)

Industry

All manufacturing industries
com bined1____ __ _____
Class I steam railroads 2____
Coal mining:
Anthracite4 _________
Bituminous 4__________
Metalliferous mining_______
Quarrying and nonmetallic
mining ______ ________
Crude-petroleum producing._
Public utilities:
Telephone and telegraph.
Electric light and power
and manufactured gas _
Electric-railroad
and
motorbus
operation
and maintenance_____
Trade:
Wholesale ________
Retail _______________
General merchandising---------------------Other than general
merchandsing... .
Hotels (year-round)4 6___
Laundries4______
. ..
Dyeing and cleaning 4. _ __
Brokerage _____Insurance_______ - ------Building construction . . . . . . .

Index,
June
1939

(1 9 2 8 -2 5
=100)

90.6
55.5

Percentage
change from—
M ay
1939

Average weekly earn­
ings

Pay roll

Employment

June
1938

Index,
June
1939

(1 9 2 8 -2 5
= 100)

+ 0 .6 +11.0
+ 3 .6 + 8 .4

86.2
(3)

Percentage
Percentage
change from— Aver­ change from—
age in
June
M ay
June
1939
M ay
June
1938
1939
1938
1939

+ 2 .1 +21.8 $24. 25
(3)
(3)
(3)

(1 9 2 9 =
100)

(1 9 2 9 =
100)

+ 1 .5
(3)

+ 9 .6
(3)

23.30 -3 5 .0
23.12 +109. 6
27.56
+ .7

-2 0 .7
+25.6
+ 6 .9

+ 1.4

+.6

+ 3.0
+ .5

51.2 - 2 .6
79.1 +64.9
61.2 - 1 .0

- 8 .5
- 1 .4
+ 9 .4

36.1 -3 6 .7 -2 7 .4
70.6 +245. 8 +23.9
- . 3 +17.0
53.9

47.4
67.0

+ 3 .9
+ 1 .4

+ 8 .7
- 8 .0

41.8
62.4

76.1

+■8

+ 1 .8

93.6

-.1

+ 3.0 530.44

-.9

+1.1

92.2

+ 1 .3

+ .1

100.2

+ 1 .4

+ 1.6 *33.99

+ .1

+ 1.5

69.9

+ .5

- .7

71.2

+ 1 .5

+ 2 .2 533. 24

+ 1 .0

+ 2 .9

75.7
72.4

+ 1 .2
+ 1 .3

+ 2 .7 529.97
+ 4 .2 «22. 02

+ .1
+ .8

+ 1.6
+ 1.1

+ 1 .4

+ 4 .4 518.64

+ .9

- 1 .3

+ .7
+ .4
+ .3
- 1 .4
—. 5
+• 1
- 2.0

+ 1 .8
+2. 2
+ 4 .0
+ 1 .8
+ 2.1
+ 1 .3
+ 5 .0

+ 1 .0
+3.1

88.1
86.2

+1.1
+ .6

97.2

+ .5

+ 5 .7

87.9

83.3
93.2
98.7
109.9
(3)
(3)
(3)

+ .6
-.8
+ 3 .3
+2. 7
- 1 .9
+ .4
+ 1 .4

+ 2 .3
+ 1.1
+ 2.1
-.8
- 3 .4
+ 1 .0
+ 5 .5

69.2
82.1
86.9
84.1
(3)
(3)
(3)

+ 5 .4 +12.0
+ 2 .0 - 7 .6

+ 1 .3 + 4 .2
+ 3.3
-.3
+ 3 .5 + 6 .2
+ 1 .3 + 1.0
- 2 .5
- 1 .4
+ .5 + 2 .3
- . 7 +11.3

22.13
33.74

524.64
515. Ut)
17. 98
20.98
535.71
«36.48
30.87

> Revised indexes. Adjusted to 1935 Census of Manufactures.
2 Preliminary. Source: Interstate Commerce Commission.
3 N ot available.
„
, _. _
,„„0 .
4 Indexes adjusted to 1935 census. Comparable series back to January 1929 presented m January 1938 issue
of the pamphlet, Employment and Pay Rolls.
... , ,
x ,
5 Average weekly earnings not strictly comparable with figures published m issues of the M onthly Labor
Review dated earlier than April 1938 (except for the January figures appearing in the March issue), as they
now exclude corporation officers, executives, and other employees whose duties are m ainly supervisory.
6 Cash payments only; the additional value of board, room, and tips cannot be computed.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

488

Monthly Labor Review—August 1939

Public Employment

With the gain in the number of projects under construction, employ­
ment on projects financed from Public Works Administration funds
increased to 293,100 during the month ending June 15. This repre­
sents an increase of 19,500 over the preceding month and 172,200 over
June 1938. Pay rolls of $25,956,000 for the month were $3,201,000
greater than in May.
There were 8,700 men at work on projects of the United States
Housing Authority during the month ending June 15, an increase of
2,200 as compared with May. Pay-roll disbursements increased from
$783,000 in May to $1,118,000 in June. These figures cover new
construction and demolition and pertain only to those projects started
under the United States Housing Authority; those formerly under the
Public Works Administration are shown under the Public Works
Administration building-construction projects in this report.
The seasonal increase in employment on projects financed from
regular Federal appropriations continued through June with a gain
of 31,800 over May, bringing the number at work to 248,500. In­
creases in employment were reported on all types of projects except
forestry and heavy engineering. The increases on public road, rural
electrification, ship construction, and dredging, dike, and revetment
projects were relatively large. Pay-roll disbursements increased from
$21,812,000 in May to $26,438,000 for the month ending June 15.
There were approximately 2,500 men working on projects financed
by the Reconstruction Finance Corporation, an increase of 200 as
compared with the preceding month. Pay rolls for the month ending
June 15 were $291,000.
The decline, beginning in March, in work-relief employment on
projects operated by the Works Progress Administration continued
through June, with a decrease of 30,000 in the number employed.
The number at work during June was 2,438,000, as compared with
2,468,000 in May and 2,767,000 in June 1938. Pay rolls of $134,377,000 for June were $5,711,000 less than in May and $11,699,000 lower
than in June 1938. There was a substantial increase in employment
on Federal projects under The Works Program and a decrease on work
projects of the National Youth Administration. Data on employ­
ment and pay rolls for Student Aid in June will not be available until
next month.
During June there were 302,000 workers in camps of the Civilian
Conservation Corps, 34,000 less than in May and 8,000 more than in
June a year ago. Of the total number in camps during the month,
264,300 were enrollees, 4,800 reserve officers, 300 nurses, 1,600 educa­
tional advisers, and 31,000 supervisory and technical employees.
Increases in the number of people employed in the regular services
of the Federal Government were reported in the executive, legislative,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

489

Trend of Employment and Pay Rolls

and military services, and a decrease in the judicial service. Of the
925,000 employees in the executive service, 123,000 were working in
the District of Columbia and 802,000 outside the District. Forceaccount employees (employees who are on the Federal pay roll and
are engaged on construction projects) were 9.3 percent of the total
number of employees in the executive service. Increases in employ­
ment were reported in the Departments of Agriculture and the Interior,
the Post Office, the War and Navy Departments, and the Railroad
Retirement Board. Decreases were reported in the Treasury Depart­
ment and administrative offices of the Works Progress Administration.
The number of men employed on roads financed wholly from State
or local funds increased 9,900 in June. Of the 142,000 at work,
approximately 20,000 were engaged in the construction of new roads
and 122,000 on maintenance work. Pay rolls for both types of road
work Were $10,743,000.
A summary of Federal employment and pay-roll data for June 1939
is given in table 2.
T a b l e 2 . —Summary of Federal Employment and Pay Rolls, M ay and June 1939 1

(Preliminary Figures)
Employment
Class
June

M ay

Federal Services:
E xecutive2.- - _ -- --- - - --- --- 925, 260 3 903,112
2,322
2,292
Judicial--. _____ _______________ 5,353
5, 336
Legislative_______________________
354,612
M ilita r y ________________________ 363,734
Construction projects:
273,614
Financed by P. W. A .4------ -- -------- 293,103
6,473
8,679
U . S. H. A. low-rent housing.. ___
2, 503
2,336
Financed by R. F. C.5-----------------Financed by regular Federal appro216,716
priations-. ------------------------------- 248, 525
Federal projects under The Works
147,925
Program ___
_____ __ ----------------- 183,749
Projects operated by W. P. A -------------- 2,438,254 2,468,158
National Youth Administration:
223,892
212,607
Work projects__ __ - ............... . . .
372,885
(«)
335,902
Civilian Conservation Corps__ . . . . _ 302, 339

Per­
centage
change

Pay rolls
June

M ay

Percentage
change

+ 2 .5 $140,140, 533 3$136,408,999
607,732
561,879
- 1 .3
1,219,849
1,218, 290
+. Ó
26,438, 718
28,488,256
+ 2 .6

+ 2 .7
-7 . 5
—. 1
+ 7 .8

+ 7 .1
+34.1
+ 7.1

25,956,205
1,118,077
290,517

22,754,996
782,965
275,512

+ 14.1
+42.8
+ 5 .4

+14.7

26,437,806

21,811, 566

+ 21.2

+24.2
—1.2

8, 590,116
134,376,895

7,159, 718
140,088,103

+20.0
—4. 5

-5 .0

3,962, 582
(6)
14,132,205

4,271,347
2,499, 574
15,022,973

- 7 .2

-1 0 .0

- 5 .9

1 Includes data on projects financed wholly or partially from Federal funds.
2 Includes force-account and supervisory and technical employees shown under other classifications to
the extent of 119,314 employees and pay-roll disbursements of $15,634,335 for June 1939, and 113,161 em­
ployees and pay-roll disbursements of $14,246,341 for M ay 1939.
3 Revised.
. ,
, , , , _
4 Data covering P. W. A. projects financed from National Industrial Recovery Act funds, Emergency
Relief Appropriation Acts of 1935, 1936, and 1937 funds, and Public Works Administration Appropriation
Act of 1938 funds are included. These data are not shown under The Works Program. Includes 19,146
wage earners and $1,936,132 pay roll for June 1939; 21,200 wage earners and $1,979,241 pay roll for M ay 1939,
covering Public Works Administration projects financed from Emergency Relief Appropriation Acts of
1935, 1936, and 1937 funds. Includes 267,626 wage earners and $23,272,006 pay roll for June 1939; 245,167
wage earners and $19,970,789 pay roll for M ay 1939, covering Public Works Administration projects financed
from funds provided by the Public Works Administration Appropriation Act of 1938.
3 Includes 689 employees and pay-roll disbursements of $64,414 for June 1939; 713 employees and pay-roll
disbursements of $66,632 for M ay 1939 on projects financed by the RFC Mortgage Co.
6 June data not available.

163839— 39

-15


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

490

Monthly Labor Review—August 1939
D ET A IL E D R EPO R TS FOR MAY 1939

A MONTHLY report on employment and pay rolls is published as
a separate pamphlet by the Bureau of Labor Statistics. This gives
detailed data regarding employment, pay rolls, working hours, and
earnings for the current month for industrial and business establish­
ments and for the various forms of public employment. This pam­
phlet is distributed free upon request. Its principal contents for the
month of May, insofar as industrial and business employment is
concerned, are reproduced in this section of the Monthly Labor
Review.
Industrial and Business Employment
Monthly reports on employment and pay rolls are available for the
following groups: 87 manufacturing industries; 16 nonmanufacturing
industries, including private building construction; and class I steam
railroads. The reports for the first two of these groups—manu­
facturing and nonmanufacturing—are based on sample surveys by the
Bureau of Labor Statistics. The figures on class I steam railroads are
compiled by the Interstate Commerce Commission and are presented
in the foregoing summary.
EMPLOYMENT, PAY ROLLS, HOURS, AND EARNINGS

Employment and pay-roll indexes, as well as average hours worked
per week, average hourly earnings, and average weekly earnings for
March, April, and May 1939, where available, are presented in table 1.
The March and April figures, where given, may differ in some instances
from those previously published, because of revisions necessitated
primarily by the inclusion of late reports.
The average weekly earnings shown in table 1 are computed by
dividing the total weekly pay rolls in the reporting establishments
by the total number of full- and part-time employees reported. As
not all reporting establishments supply man-hours, average hours
worked per week and average hourly earnings are necessarily based on
data furnished by a smaller number of reporting firms. The size
and composition of the reporting sample varies slightly from month
to month. Therefore the average hours per week, average hourly
earnings, and average weekly earnings shown are not strictly com­
parable from month to month. The sample, however, is believed to
be sufficiently adequate in virtually all instances to indicate the gen­
eral movements of earnings and hours over the period shown. The
changes from the preceding month, expressed as percentages, are
based on identical lists of firms for the 2 months, but the changes
from May 1938 are computed from chain indexes based on the monthto-month percentage changes.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

T able

1.—Employment, P ay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing Industries
MANUFACTURING

[indexes are based on 3-year average, 1923-25=100, and are adjusted to 1935 Census of Manufactures. Not comparable to indexes published in pamphlets prior to August 1938.
Comparable series available upon request]
Employment index
Industry

................................
Durable goods... ...............................
............
Nondurable goods _________________________

Average hours worked
per week 1

M ay
1939

April
1939

March
1939

Cents

Cents

Cents

64.9
72.4
58.4

64.8
72.6
58.2

65.1
72.7
58.6

35.8
34.4
36.9
33.7

75.3
83.6
69.6
58.1

75.3
83.5
69.4
58.2

75.2
83.5
69.5
58.0

37.6
36.8
35.2
37.0
36.9

38.7
37.3
36.6
36.1
38.1

60.4
77.0
65.1
67.6
62.4

59.8
76.0
65.5
67.6
63.0

60.0
75.2
65.5
67.2
62.7

35.7
37.3
38. 2
38.4

35.2
38.0
38.4
38.1

36.0
38.3
37.7
38.7

69.6
66.5
72.7
61.6

69.7
66.3
73.1
61.1

68. 2
66.7
73.1
60.8

23.95
24. 68
27.45
30.00

38.8
24.45
35.9
25.36
27. 67
38.3
30.19 • 37.7

39.1
36.7
37.7
37.9

40.0
37.7
38.0
37.8

61.5
66.8
72.5
78.7

61.4
67.5
72.6
79.5

61.4
67.5
72.8
80.3

30. 29
28.11

29. 81
27. 57

29.17
28. 09

37.3
37.8

36.7
37.2

35.9
37.8

82.0
74.4

81.8
74.2

82.0
74. 5

112.1
30. 95
27.23
79.5
31.70
135.0
85.1
21. 73
69.4 . 25. 65
136.2 * 24. 49

30. 94
26. 70
30. 46
21.19
25. 79
25.13

30. 92
27. 02
29.83
21.14
25. 68
25. 63

39.5
38.3
42. 4
36.9
38.7
37.1

39.5
37.4
40.9
36.2
38.8
38.5

39.5
37.8
40.2
36.3
39.0
39.0

78.7
71.0
74.9
58.9
66.4
66.0

78.8
71.4
74.6
58.6

78.8
71.5
74. 2
57.8
65. 9
65. 7

M ay
1939

April
1939

March
1939

86.9
80. 1
94.6

$23. 90
26. 93
21. 11

$23. 85
27.00
20.92

$24. 23
27. 10
21.60

36.7
36.7
36.7

36.4 * 37.1
38.5
36.7
36.4
37.5

80.1
82.8
82.0
58.5

81.6
84.8
92.3
55.4

26. 16
27.43
23.46
22.32

26.45
28.07
23. 26
20. 71

27.01
28.81
25.64
19.80

34.9
32.8
33.7
38. 2

35. 1
33.6
33.5
35.4

72.0
46.5
75.1
67.2
128.2

74.2
46.5
76.7
64.6
131.8

76.7
45.9
81.9
63.3
137.0

22.65
28.17
23.87
25. 81
23.19

22.17
28.05
23.05
24.98
23.34

22.94
28.10
23.93
24. 28
23.92

38.1
36.7
36.7
38.2
37.1

69.1
78.4
66.2
85.5

56.7
68.4
59.1
96.8

56.0
68.4
59.5
94.0

56.2
66.6
57.6
92.6

24.92
24.77
27.71
23. 66

24.52
24.96
28.06
23.19

24. 56
25. 21
27.54
23. 57

84.5
159.4
95.1
123.8

85.4
161.4
94.7
124.8

80.9
153.3
94.9
126.0

81.6
162.9
93.7
134.9

84.2
169.5
94.2
136.7

23.83
23.91
27. 86
29. 56

129.5
85.9

129.9
86.1

133.3
85.2

121.4
87.0

119.8
85.7

120.3
86.5

98.0
84.6
133.6
96.4
72.7
126.0

96.3
84.5
131.2
94.6
72.0
128.2

93.8
84.1
128.4
98.9
70.3
127.6

117.2
80.4
149.3
84.1
71.8
128.5

115.1
78.8
140.8
80.8
71.4
134.2

April
1939

March
1939

84.4
79. 5
89.9

84.9
80.2
90.3

88.3
92.2
91.9
66.8

78.5
80.2
81.8
63.6

84.7
48.7
80.7
73.4
135.3

84.4
48.0
83.0
74.0
137.4

68.6
82.3
67.2
89.1

68.8
81.0
66.9
88.2

84.1
154.7
94.9
117.5

M ay
1939

April
1939

March
1939

90.1
83.3
96.7

91.2
84.1
97.9

91.4
83.5
98.9

87.3
91.3
89.0
67.9

88.3
92.3
90.0
67.4

80.2
48.4
76.1
73.9
132.8

M ay
1939

Average hourly
earnings 1

M ay
1939

April
1939

March
1939

Durable goods

Iron and steel and their products, not including
machinery. ______ . . . __________ _________
Blast furnaces, steel works, and rolling m ills..
Bolts, nuts, washers, and rivets_____________
Cast-iron pipe_______________ _____________
Cutlery (not including silver and plated cut­
lery) and edge tools______________________
Forgings, iron and steel____________________
Hardware______________________ _________
Plumbers’ supplies___ ___________________
Stamped and enameled ware________ _______
Steam and hot-water heating apparatus and
steam fittings______________ ____________
Stoves _______________________________ . . .
Structural and ornamental metalwork_______
Tin cans and other tinware_________________
Tools (not including edge tools, machine tools,
files, and saws)__________________________
Wirework. . . . .
................. . ...... . . . . .
Machinery, not including transportation equipment.
Agricultural implements (including tractors)..
Cash registers, adding machines, and calculat­
ing m achines...
. . . ___
________ _ Electrical machinery, apparatus, and supplies
Engines, turbines, water wheels, and wind­
mills . . . ___ _ ______. . . _______ _____ _
Foundry and machine-shop products___ .
Machine tools_______ . ______ - - - - - - Radios and phonographs____________ ______
Textile machinery and parts-----------------------Typewriters and parts_____________________
See fo o t n o t e s a t end o f ta b le .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

66.6

65. 3

Trend of Employment and Pay Rolls

All manufacturing.......

Average weekly
earnings 1

Pay-roll index

T

able

1.—Employment, Pay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing Industries— Continued

■
o
ESS

MANUFACTURING— Continued

Employm ent index

Average weekly
earnings

Pay-roll index

Average hours worked
per week

Average hourly
earnings

Industry
M ay
1939

April
1939

M ay
1939

April
1939

95.7
87.6
94.4
961.7 1,165. 2 1,063. 7
103.8
88.0
99.5
33.4
33.5
31.5
16.5
19.6
16.2
108.7
127.6
117.3
94.3
88.8
86.0
153. 1
156.8
160.6
99.2
99.4
95.9

March
1939

M ay
1939

April
1939

March
1939

92.0
989.1
97.0
32.3
13.7
115.5
89.2
159.8
98.6

$31.01
30. 04
31.18
27.21
28.15
32. 29
25.38
26. 34
27.18

$31.80
30.09
32. 33
26. 06
27.14
31. 22
24. 90
26.56
26.43

$30. 81
31. 38
30.87
26. 44
26.67
31.78
25.60
26. 68
26.98

April
1939

March
1939

34.9
41.2
33.5
36.7
36.6
38.9
37.7
38.7
38.5

35.7
40.8
34.9
34.6
35.2
37.6
37.1
38.8
37.6

34.6
42.1
33.3
35.4
34.4
37.9
38.3
39.5
38.3

89.5
73.7
93. 1
74.0
77.0
82.1
67.2
68.1
70.8

89.6
74.6
92.8
75.3
77.1
83.1
66.8
68.4
70. 4

89.8
76.1
92.6
74.8
77.5
83.8
66.9
67.6
70. 5

M ay
1939

M ay
1939

April
1939

March
1939

C e n ts

C e n ts

C e n ts

83.6
92.7
87.5
66.7
71.5
62.6
78.9

81.8
69.3
70.9
59.8
66.6
58.2
63. 1

84.1
71.1
68.9
59.4
66.2
55.7
63.5

85.5
76.9
77.4
64.7
66.6
53.9
66.1

21.03
22. 46
24.63
24.80
26. 29
20. 73
19. 86

21.24
21.90
23. 27
24.61
25.90
20. 08
19. 74

21.63
23. 03
24.89
26. 64
26.23
20. 02
20. 20

35.6
37.3
35.1
39.3
38.0
38.6
37.5

36.2
36.7
33.2
39.0
37.5
37.7
37.3

37.1
39.3
35.9
41.4
37.8
37.9
38.5

59.1
59.9
70.1
63.7
69.2
54.3
53.0

58.7
59.1
69.9
63.4
69.1
53.9
53.2

58.3
57.9
69.2
64.8
69.1
53.3
52.7

53.4
49.1
69,6
49.7
60.3
90.6
44.8
81.2

45.0
50.3
63.7
40.4
63.6
91. 7
40.4
70.4

43.9
46.3
62.6
39.6
61.9
89.4
38.8
72.2

43.7
42.4
61.7
37.2
55.5
95.3
34.3
73.7

21. 99
21.00
23.48
19. 91
26. 63
24.15
28. 63
22. 46

21.40
19. 94
22. 96
19. 46
25.91
23.37
27. 55
22. 82

21.65
19. 34
23. 72
19.59
25. 56
25. 30
25. 92
23. 38

41.0
38.6
36.4
37.4
38.1
34.0
39.5
36.6

39.7
37.5
35.5
36.4
37.6
33.1
37.0
36.5

39.9
37.0
36.2
36.1
36.9
• 35.4
36.3
37.7

53.8
55.2
64.6
53.4
70.0
71.0
72.7
62.3

54.0
54.2
64.8
53.5
68.9
70.7
74.9
63.1

54.4
53.3
65.1
54.4
69.2
71.6
71.8
62.9

101.4
91.2
84.6
87.7
86.3
116.0
82.8
116.0
148.5
75.5

77.8
74.3
65.0
72.2
74.8
94.4
64.3
109.3
146.6
66.7

79.8
73.9
70.6
73.2
76.1
97.0
55.7
112.4
154.3
63.6

89.0
79.4
75.3
75.7
82.6
101.0
71.2
119.4
165.3
68.3

16.31
15. 96
20.86
13. 78
17. 34
20.23
21.33
16. 93
17. 75
16.98

16. 36
15.86
22. 39
13. 72
17. 34
20. 64
17. 48
17. 27
18. 40
16. 32

17.38
16. 56
23. 64
14. 06
18. 21
21.22
22.07
18. 03
19. 38
16. 89

34.8
35.5
32.9
35.7
37.3
37.5
30.9
34.9
34.1
37.0

34.7
35.4
35.6
35.6
38.8
38.1
25.0
35.6
35.5
35.5

36.2
36.6
37.4
36.5
39.5
39.3
30.6
37.0
37.0
36.8

47.7
45.9
63.3
38.6
47.2
53.4
70.0
49.4
52.4
46.1

47.9
45.7
63.0
38.4
45.5
53.9
69.5
49.4
52. 2
46.1

49.1
46.2
63.3
38.5
46.8
53.4
69.5
50.0
53.0
45.9

N o n d u r a b le g o o d s

Textiles and their products.............. .............. ..............
Fabrics___________________________________
Carpets and rugs_____ ____ ______ ______
Cotton goods________________________ ..
Cotton small wares_____________________
Dyeing and finishing textiles____________
Hats, fur-felt_____ _____ _______ ________
Knit goods__________ ___________ ______
. _____ ___________
FRASER Hosiery______
Knitted outerwear._ ___________ . . .

Digitized for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

96. 1
88.4
81.0
85.2
82.3
112.9
76.6
114.1
145.4
73.0

98.6
88.8
83.7
86.7
83.7
114.4
80.8
114.9
147.2
72.1

Monthly Labor Review—August 1939

D u r a b l e g o o d s —Continued
Transportation equipment...........................................
90.3
95.2
Aircraft__________________ ______________ 1,183. 9 1,078. 4
Automobiles______________________________
93.3
101.8
Cars, electric-and steam-railroad
________
33.7
33.1
Locomotives____________ ____________ ___
22.4
19. 1
Shipbuilding-.. ___________________________ 118.0
112.3
Nonferrous metals and their products.............. .........
92.4
93.5
Aluminum manufactures"_________ _____ ____
152.2
154.6
Brass, bronze, and copper products__________
99.1
98.4
Clocks and watches and time-recording de­
vices______ ___________________________
82.2
83.7
Jewelry____________________ ______________
90.4
86.1
Lighting equipment________________________
81.2
83.5
Silverware and plated ware______ __________
66.2
66.3
Smelting and refining—copper, lead, and zinc
71.3
72.0
Lumber and allied products........... ....... ..........
__.
65.3
64.3
Furniture________________________________
77.0
77.9
Lumber:
Millwork............................................................
53.9
54.2
Sawmills________ _____ _____ __________
53.7
51.8
Stone, clay, and glass products........... .......................
72.5
72.7
Brick, tile, and terra cotta____________ ____
53.6
53.6
Cement. ___________ _____ ______ ________
66.8
66.5
Glass__ _________________________________
91. 5
91.9
Marble, granite, slate, and other products__
47.2
47.5
Pottery_________________ .
____________
80.7
81.6

March
1939

S e e f o o t n o t e s a t en d o f ta b le .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

74.3
144.1
58.7
75 0
112.2
96.7
159.7
106.8
127.3
70.2
118.0
87.0
86.4
82.0
116.8
145.4
246.4
101.4
92.9
70.6
77.0
87. 1
95. 4
48.2
81. 0
62.8
59.5
63. 2
106.0
100.1
106. 7

73.5
150.2
62.0
69.0
119.0
103.8
171. 1
106. 1
132.3
77. 7
119.3
94.0
94.5
84. 5
114.0
142.0
235. 7
95. 6
92.8
72.3
75.3
75.8
91. 8
43.5
93. 9
61.7
60.6
61.9
105.9
100. 4
106.3

72.4
153.3
63.8
76. 8
123.0
106.6
178.5
103.7
137.1
83.4
121.5
97.6
98.5
86.0
112.0
142.1
227.8
92.0
78.8
77. 5
76.8
69.8
92.5
39.2
88.3
59. 5
60. 6
59.4
105.9
101.6
105.9

65.6
110.8
46.5
60.9
82.0
66.6
110.4
109.5
104.9
52.5
102.2
64.2
57.9
81.0
120.9
143.4
301.3
87.0
85.6
69.6
75.0
75.2
107.7
52.1
70.2
55. 8
65.6
54.5
103.9
104.2
105.5

64.7
112.4
48.7
52.3
88.8
74.3
118.0
111.2
109.9
63.9
102.6
74.5
70.1
83.7
113.9
135.7
282.2
82.1
81.0
67.2
72.6
65.7
99.5
45.6
85. 1
53.2
64.3
51.7
103.3
103.8
104.6

64.9
120.6
52.7
61.9
104. 8
86.2
143.4
108.9
122.2
89.6
106.9
83.2
80.1
87.7
113.8
138.0
263.4
79.3
74.0
75.0
74.4
61.2
100.6
43.9
85.8
51.5
66.5
49.6
104.2
107.1
105.5

14. 74
17. 07
15.19
18. 77
17.41
18.04
19. 03
17. 19
12. 88
19.99
13. 40
17. 43
15. 93
23. 78
25.51
26. 03
33.96
22.53
17.01
18. 33
25.29
29. 02
28. 39
27. 53
23.36
18. 60
17. 26
16. 45
28.22
21.28
24. 25

14. 77
16. 68
15. 02
17. 54
17.84
18. 85
18. 86
17. 58
12.96
21.70
13. 44
18. 73
17. 58
23. S3
24. 57
25.11
33.15
22. 33
16. 13
17.27
24. 96
29. 22
27. 23
23. 94
24. 42
16.08
16. 59
15.96
28.08
21.13
24.11

15.05
17. 53
15.93
18.66
19.91
21.07
21. 51
17. 61
14. 20
27.80
13. 69
20. 12
19.17
24.47
25.00
25. 52
32.15
22.47
17.13
17.96
25.13
29.47
27. 32
28. 85
26. 21
16. 22
17.18
15. 98
28. 37
21.54
24.43

36.2
36.6
35.1
35.7
33.6
31.9
34.7
38.1
33.8
31.1
34.3
32.8
31.6
37.9
40.7
42.2
39.9
46.7
34.9
35.7
42.0
47.1
41.2
40.6
36.6
35.3
33.8
35.5
38.2
39.1
39.4

36.2
35.9
35.2
33.3
33.7
32. 6
33.8
38.7
34.3
32.3
35.1
34.4
33.6
37.8
39.4
41. 1
38.8
46.2
34.0
35.3
41.5
46.5
39.3
37.0
38.7
34.0
33.2
34.1
38.1
39.2
39.4

36.9
37.6
37.5
35.3
35.7
35.1
35. 6
39.3
36.3
39.2
35. 2
38.2
38.0
38.9
40.1
41. 8
37.8
46. 0
35. 5
37.0
41.9
46.0
39.8
40.1
40.8
34.2
33.9
34. 2
38.3
39.8
39.8

40.7
46.1
42.9
52. 6
51.0
57. 4
50.1
45. 2
36.7
64.0
39. 5
52.0
49. 4
62.9
63.2
62.0
85.9
48.3
50.0
50. 0
60.0
61.5
68.9
70.0
63.8
47.2
51. 1
46. 7
77.2
55. 0
61.6

41.0
45. 9
42. 3
52.7
51.7
57.7
51. 6
45. 4
36. 5
62. 9
38.9
51. 8
49. 2
62. 9
62. 7
61. 3
86. 2
48. 3
48. 9
48. 4
59. 8
62. 5
69. 4
76. 5
63. 0
47. 5
50. 2
47. 0
77.0
54. 6
61. 2

41.0
46.3
42.1
62.9
54.1
59.9
54.6
45.1
37.6
67.9
39.6
51.7
49.2
63.0
62.9
61.5
85.8
48.8
49.4
48.5
59.8
63.4
68.9
75.7
64.2
47.4
51.0
46.9
77.1
54.6
61.4

99.8
106. 8

99. 9
106.5

100.3
106.0

90.9
109.2

90.2
108.9

92.0
108.1

30.31
37.62

30. 01
37. 66

30. 55
37.65

38.5
36.3

38.0
36.3

38.2
36.2

80.2
100.1

80.5
99.8

81.1
99.4

111.6
117.0
110. 3
114.5
64.9
106. 8
82.0
113.2
118.4
308. 5
87. 7
81. 2
60.2
67.2
128. 7

115.0
116.1
114.7
114.9
73. 5
107. 6
80. 8
161.5
117.6
315.4
88. 4
82.1
60.0
67.2
132.3

114.5
116.3
114.0
116.5
88.1
108.0
81.3
133.2
114.9
316.9
90.5
82.8
61.7
67.2
134.0

120. 5
132.1
116.9
128.9
52.0
118.5
91.2
108.2
127.3
298.3
90.3
82.1
56.5
73.5
124.4

120.6
128.5
118.1
127.9
60.3
119.4
89.5
139.1
123.2
304.4
91.2
83.0
58.6
73.6
26.9

121.7
131.5
118.7
130.9
73.6
119.1
91.5
107.0
120.4
313.4
92.5
85.4
58.8
76.1
130.4

28.81
35.10
26.11
31. 00
12. 39
24.85
30. 68
17. 61
29.12
23. 70
29. 23
26. 75
21.35
31.46
22. 58

27.91
34.39
25. 27
30. 81
12. 75
25. 05
30. 57
15. 84
28. 24
23.64
29. 28
27.00
22.23
31.48
22.62

28.36
35. 20
25.61
31.08
12. 93
24. 86
30. 96
14. 87
28. 30
24.24
29. 01
27.40
21.65
32. 54
22.91

38.4
36.3
39.1
39.9
40.5
39.3
38.3
38.5
41.5
36.6
39.0
36.7
35.8
33.2
41. 2

38.2
35.6
39.1
39.5
42.2
39.1
37.7
40.2
40.7
36.5
39.2
35.7
37.1
33.3
38.0

38. 5
36.3
39.3
39.9
43.9
39. 2
38. 5
37.9
40. 6
37.7
39.4
36.1
35.9
34.0
38.6

74.9
97. 0
66.8
77. 6
30. 0
59. 7
80. 0
45. 8
70.1
64. 7
75.1
74.2
59.7
94.4
55. 4

73.2
97. 3
65. 0
78. 0
29. 9
60.7
81.1
39.4
69. 7
64. 7
74. 9
76.1
59.9
94.7
60. 2

73.4
97.3
65.0
78.0
29.1
59.3
80.4
39.2
69.8
64.3
73.9
76.5
60.3
95.7
59.9

Trend of Employment and Pay Rolls

Knitted underwear-----------------------Knitted cloth— ------- ------------------Silk and rayon goods------- ------ -.........—
Woolen and worsted goods---------- ------ Wearing apparel-------------------------------------Clothing, men’s . . ------------------ ------ ----Clothing, women’s ----------------------------Corsets and allied garments------- --------M en’s furnishings-----------------------------M illinery------------------------------------ Shirts and collars....... .......................... .......
leather and its manufactures....................................
Boots and shoes--------------------------------------Leather________________ _____ __________
Food and kindred products......................................
Baking-------------------- ------------ ------ ---------Beverages------------- -------------------------------Butter--------------------------------------------------Canning and preserving------- --------- ---------Confectionery-..............— .................................
Flour__________ ______ ______________ —
Ice cream----------------- ------ ----------- -------Slaughtering and meat packing-----------------Sugar, beet--------------------------------------- ----Sugar refining, cane--------------------------------Tobacco manufactures-----------------------------------Chewing and smoking tobacco and snuff---Cigars and cigarettes................................ ..........
Paper and printing............- ............ - .........................
Boxes, paper--------------------- --------------------Paper and pulp..................................—- ..........
Printing and publishing:
Book and job--------------------- -------------Newspapers and periodicals----------------Chemicals and allied products, and petroleum
refining................. ....................- ............ ..........
Petroleum refining---------------------------Other than petroleum refining-----------Chemicals----------------------- -----Cottonseed—oil, cake, and meal---Druggists’ preparations.....................
Explosives______________________
Fertilizers---------------------------------Paints and varnishes............. ............
Rayon and allied products----------Soap___________________________
Rubber products....... .........................................
Rubber boots and shoes_____________
Rubber tires and inner tubes.............
Rubber goods, other------------- ---------- -

•O
w

T a b l e 1.

Employment, Pay Rolls, Hours, and Earnings in Manufacturing and Nonmanufacturing Industries— Continued

80

NONMANUFACTURING
[Indexes are based on 12-month average, 1929=100]
Employment index

Average weekly
earnings

Pay-roll index

Average hours worked
per week

Average hourly
earnings

Industry
April
1939

March
1939

M ay
1939

April
1939

March
1939

52.6
47.9
61.7
45.6
66.0

53.0
25.9
61.5
43.0
65.8

51.7
87.4
61.0
40.1
66.2

57.0
20.4
53.7
39.7
61.2

43.4
17.6
52.6
35.9
60.8

34.2
77.8
53.6
33.1
61.3

April
1939

March
1939

M ay
1939

April
1939

March
1939

$35. 84
11.32
27.72
21. 74
33. 35

$27.08
18.10
27. 03
21.11
33. 90

$21. 55
23.49
27. 66
20. 80
34.00

38.8
14.1
40.3
40.0
38.9

29.2
21.4
39.1
37.9
38.1

23.3
26.5
40.2
37.5
38.7

M ay
1939

April
1939

March
1939

Cents

Cents

Cents

91.8
86.0
69.2
54.5
86.1

92. 3
88.4
69.5
55.4
87.2

92.0
88.4
69.3
55.4
86.3

75.6

74.1

73.4

94.2

92.1

91.9

30. 61

30. 81

30. 96

38.9

39.0

38.9

81.5

81.7

82.2

91.1

90.3

89.6

98.9

97.0

96.8

34.03

33. 47

33. 82

40.0

39.1

39.8

85.2

85.5

85.4

69.5

69.1

69.5

70.1

69.6

70.5

32. 79

32. 83

33.12

45.5

45.6

45.7

71.1

71.2

71.5

87.1
85.7
96.8
82.8
94.0
95.5
107.0
-1 .4
+ .3
+ 6 .7

87.3
85.5
96.9
82.5
93.2
93.5
102.2
-.3
+• 1
+10.8

87.4
83.8
93.2
81.3
92.7
92.9
95.4
- 1 .2
+ .2
+ 6 .4

74.9
71.5
86.7
68.3
82.3
83.9
83.0
- 1 .1
+. 6
+11.9

74.8
71.3
86.6
68.1
81.9
79.9
73.3
-1 .3
+. 6
+14.9

74.7
69.6
83.4
66.8
81. 1
79.3
67.7
-1 .0
+ 1 .0
+13.4

29. 76
21.19
17. 90
23. 86
15.00
18.07
21.12
36. 08
36. 82
31.40

29. 75
21. 29
17.86
24. 25
15.01
17. 57
19.71
36. 26
36. 71
29. 92

29.62
21.28
17.84
24.18
15. 09
17. 54
19. 48
36. 30
36. 32
28.98

42.1
42.4
38.9
43.5
46.6
43.0
43.9
(»)
(8)
33.5

41.6
42.4
39.0
43.5
46.6
42.2
41.0
(8)
(»)
31.2

42.0
42.5
39.0
43.5
46.7
42.3
41.1
(8)
(8)
30.4

71.1
55.0
48.8
56.9
32.1
42.4
49.1
(8)

71.9
54. 8
48.4
56.7
31.7
42. 1
49.2
(8)
(«)
96.2

70.7
54.8
48.2
56.7
31.7
41.7
49.2
(8)
(8)
95.5

1 Average weekly earnings are computed from figures furnished by all reporting estab­
lishments Average hours and average hourly earnings are computed from data supplied
by a smaller number of establishments, as all reporting firms do not furnish man-hours.
The figures are not strictly comparable from month to month because of changes in the
size and composition of the reporting sample. Hours and earnings for all manufacturing
industries now related to 87 industries instead of 89 which were covered in the July and
prior issues of the pamphlet. The 2 industries excluded are electric- and steam-railroad
repair shops. The averages for the durable-goods group have also been affected by this
exclusion.
. 2 Indexes adjusted to 1935 census. Comparable series back to January 1929 presented
in January 1938 issue of this publication.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

M ay
1939

m

94.1

3 Average weekly earnings, hourly earnings, and hours not strictly comparable with
figures published in pamphlets prior to January 1938 as they now exclude corporation
officers, executives, and other employees whose duties are mainly supervisory.
4 Cash payments only; the additional value of board, room, and tips cannot be com­
puted.
6 Indexes of employment and pay rolls are not available, percentage changes from
preceding month substituted.
6 N ot available.

Monthly Labor Review—August 1939

N o n d u r a b l e g o o d s —Continued
Coal mining:
Anthracite3____. . .
Bituminous a. . .
Metalliferous m ining......... ..................................
Quarrying and nonmetallic mining ..
Crude-petroleum producing..
Public utilities:
Telephone and telegraph 3______
Electric light and power and manufactured
gas 3---------------------------------------------Electric-railroad and motorbus operation and
maintenance3____
Trade:
W holesale3___ _____
R etail3 ________
General merchandising 3
Other than general merchandising 3
Hotels (year-round) 2 3 » ... . .
Laundries2 ____
Dyeing and cleaning 3___ _
Brokerage 33______
Insurance 3 3 ___
Building construction
_

M ay
1939

Trend of Employment and Pay Rolls

495

IN D E X ES OF EMPLOYMENT AND PAY ROLLS, MAY 1938 THROUGH
MAY 1939

Indexes of employment and pay rolls are given in table 2 for all
manufacturing industries combined, for the durable- and nondurablegoods groups of manufacturing industries, and for each of 13 non­
manufacturing industries, including 2 subgroups under retail trade,
by months from May 1938 to May 1939, inclusive. The accompany­
ing chart indicates the trend of factory employment and pay rolls from
January 1919 to May 1939.
The indexes of factory employment and pay rolls are based on the
3-year average 1923-25 as 100. They relate to wage earners only and
are computed from reports supplied by representative manufacturing
establishments in 87 manufacturing industries. These reports cover
more than 55 percent of the total wage earners in all manufacturing
industries of the country and more than 65 percent of the wage earners
in the 87 industries included in the monthly survey of the Bureau of
Labor Statistics.
The indexes for the nonmanufacturing industries are based on the
12-month average for 1929 as 100. Figures for mining, laundries, and
dyeing and cleaning cover wage earners only, but the figures for public
utilities, trade, and hotels relate to all employees except corporation
officers, executives, and other employees whose duties are mainly
supervisory. For crude-petroleum producing they cover wage earners
and the clerical field force. The coverage of the reporting samples for
the various nonmanufacturing industries ranges from 25 percent for
wholesale trade to 80 percent for quarrying and nonmetallic mining
and public utilities.
Data for both manufacturing and nonmanufacturing industries are
based on reports of the number of employees and amount of pay rolls
for the pay period ending nearest the 15th of the month.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

496

Monthly Labor Review—August 1939

T a b l e 2 . —Indexes of Employment and P ay Rolls in Selected Manufacturing 1 and J\on

manufacturing 2 Industries, M ay 1938 to M ay 1939, Inclusive
Employment
Industry

1938

Av.
1938

May June July Aug Sept

1939
Oct Nov Dec

Jan Feb Mar Apr May

M a n u fa c tu r in g

All industries____________ 86.8 83.4 81. 6 81.9 85.7 88.8 89.5 90.5 91.2 89.5 90.7 91.4 91.2 90.1
Durable goods 3______ 77.3 75. ( 72. ‘ 70. c 71.7 75. Í 79.0 82.1 83.1 81.6 82.6 83.5 84.1 83.3
Nondurable goods 4__ 96.0 91.5 90.3 92.9 99.0 101.7 99.4 98.4 98.8 97.1 98.4 98.9 97.9 96.7
N o n m a n u fa c tu r in g

Anthracite mining_______ 52.3 52.8 56.0 44.6 37.6 46.4 52.4 51.0 51.3
Bituminous-coal m in in g ... 86.7 82.2 80.2 78.5 80.1 83.4 87.2 88.6 89.3
Metalliferous mining_____ 59.0 58.8 56. C 49.7 51.4 55.2 57. { 61.9 62.3
Quarrying and nonmetallic
mining________________ 42.3 43.7 43.6 44.1 44.6 44.6 44.4 44.4 41.4
Crude-petroleum produc­
ing----------- ----------------- 72.1 73.2 72.8 72.3 72.4 71.5 69.5 68.3 67.8
Telephone and telegraph._ 75. 1 75.0 74.8 74. Í 74.8 74.9 74.7 74.4 74.3
Electric light and power,
and manufactured g a s ... 92.3 91.7 92.2 92.3 92.7 92.5 92.5 91.9 91.4
Electric-railroad and motorbus operation and
m aintenance.. _______
70.3 70.6 70.4 70.1 69.5 69.3 69.9 69.5 69.4
Wholesale tr a d e ................. 88.8 87.3 87.2 86.8 87.6 88.5 89.1 89.8 90.0
Retail trade_____________ 85.2 83.8 83.6 81.1 80.0 84.7 85.9 86.9 98.1
General merchandis­
ing—
98.0 92.4 91.9 87.9 86.4 97.0 99.4 104.5 144.1
Other than general
merchandising_____ 81 .8 8 1 .5 8 1 .4 79.3 78.3 81 .5 8 2 .3 8 2 .3 86 .0
Year-round h o t e l s . . ____ 9 2 .7 9 3 .7 9 2 .2 90 .7 90 .4 91 .8 9 2 .9 9 2 .5 92 .0
Laundries_______________ 9 5 .7 96 .2 9 6 .6 97 .8 97 .5 96 .5 94. 4 9 3 .7 93 .4
Dyeing and cleaning____ 104.3 109.9 110.8 108.6 105.0 107.8 106.8 102.5 9 7 .9

50.0 52.2 51.7 53.0 52. 6
88.7 88.6 87.4 25.9 47. 9
62.6 60.9 61.0 61. 5 61. 7
38.3 37.9 40. 1 43. 0 45. 6
67.0 66.4 66.2 65.8 66.0
74.1 73.3 73. 4 74.1 75. 6
90.0 89.6 89.6 90.3 91. 1
69.2 69.3 69.5 69.1 69. 5
88.3 87.9 87.4 87.3 87. 1
82.2 81.5 83.8 85. 5 85. 7
90.7 88.8 93 .2 96. 9 96. 8
8 0 .0
9 1 .8
9 3 .3
9 4 .2

79.6
9 2 .6
9 2 .8
92.1

81 .3 82. 5
9 2 .7 93. 2
9 2 .9 9 3 .5
9 5 .4 102.2

82 .8
94.0
95. 5
107.0

Pay rolls
M a n u fa c tu r in g

All industries___________ 77.5 72 .9 7 0 .8 7 0 .6 7 6 .9 81 .0 8 3 .8 84.1 8 6 .5 8 3 .4 8 5 .4 8 6 .9 84 .9 84 .4
Durable goods3______ 6 8 .2 6 4 .2 61 .7 5 8 .6 6 3 .7 6 8 .7 7 5 .2 78.3 8 0 .4 76 .6 78.4 80.1 8 0 .2 79. 5
Nondurable goods4___ 8 8 .0 8 2 .6 8 0 .9 84.1 9 1 .7 9 4 .9 93 .4 9 0 .6 9 3 .4 9 1 .0 93.1 94 .6 90 .3 8 9 .9
N o n m a n u fa c tu r in g

Anthracite mining______
Bituminous-coal m in in g.._
Metalliferous mining .
Quarrying and nonmetal­
lic mining ______ .
Crude-petroleum produc­
ing------------------ ------ Telephone and telegraph..
Electric light and power,
and manufactured gas__
Electric-railroad and motorbus operation and
m a in ten a n ce......... .........
Wholesale trade________
Retail trade . ___
General merchandis­
ing—
Other than general
merchandising_____
Year-round hotels . _
Laundries.
Dyeing and cleaning.. . . .

3 8 .2
6 7 .9
5 0 .4

38 .3
55 .3
51 .2

4 9 .7
5 7 .0
46.1

35.1

3 8 .3

66 .5
92.1

6 6 .7
91 .3

98 .5

2 0 .2
5 6 .8
3 8 .0

2 0 .0
6 4 .2
4 3 .7

2 9 .4
71 .9
46.1

4 3 .4
78.3
49 .2

3 6 .2 4 2 .5
8 1 .4 8 0 .9
52 .3 54.1

3 7 .3

37 .0

3 9 .2

38.4

3 9 .2

3 7 .2

33 .7

6 7 .6
9 0 .9

6 6 .7 6 6 .8 66 .5
9 0 .9 9 1 .3 9 2 .6

6 3 .7
9 5 .3

6 3 .3
9 3 .0

62 .5
9 2 .5

97.4

98 .6

9 8 .3

9 8 .9

98 .4

9 9 .9

98 .6

9 8 .2

69 .7
74 .7
70.4

71.2
75.1
7 0 .0

69 .7
73 .8
69 .5

69.0
73.6
68.1

6 9 .5
7 3 .7
66 .8

68.4
74.3
6 9 .4

6 8 .9
75.1
70.8

68 .8
75.4
71.5

6 9 .7
7 5 .7
79.2

8 7 .8

84 .4

8 4 .3

8 0 .4

78.8

8 5 .3

88 .3

9 1 .8 122.9

6 6 .8 67 .0 66.4
8 0 .3 80 .5 79 .6
8 0 .6 8 0 .9 8 1 .8
75.3 8 0 .7 8 3 .3

65.6
77.4
8 3 .0
77.5

64.3 66.1
77.4 78.9
83.1 81 .4
74.3 8 1 .7

67 .2
80 .8
79 .5
78.0

67 .3
81 .3
79.3
73.9

70.1
81.1
8 0 .0
68.3

3 8 .0
7 8 .2
5 5 .3

4 5 .2
8 1 .2
53 .4

3 4 .2
7 7 .8
53 .6

4 3 .4 57.0
17.6 20. 4
52. 6 53. 7

3 0 .2

2 9 .7

33.1

3 5 .9

39 7

60 .9
92 .0

62. 7 61 .3
9 1 .7 9 1 .9

6 0 .8
92.1

61. 2
94. 2

9 5 .9

9 6 .4

9 6 .8

9 7 .0

9 8 .9

71.1
7 5 .5
6 9 .7

69 .9
74 .6
6 8 .4

70.5 69. 6 70 1
74. 7 74.8 74 .9
69. 6 71 .3 71. 5

84 .0

8 1 .0

8 3 .4

66 .7
8 0 .2
7 9 .6
6 5 .8

6 5 .8 6 6 .8
8 2 .8 81.1
78 .6 79 .3
6 3 .2 6 7 .7

86 .6

86. 7

68.1 68. 3
8 1 .9 82. 3
7 9 .9 83. 9
73.3 8 3 .0

1 3-year average, 1923-25=100—adjusted to 1935 Census of Manufactures. Comparable indexes for earlier
months are in August 1938 issue of pamphlet and November 1938 issue of M onthly Labor Review.
2 12-month average for 1929=100. Comparable indexes are in November 1934 and subsequent issues of
Employment and Pay Rolls, or in February 1935 and subsequent issues of M onthly Labor Review, except
for anthracite and bituminous-coal mining, year-round hotels, laundries, and dyeing and cleaning. Indexes
for these industries from January 1929 forward have been adjusted to the 1935 census and are presented in
the January 1938 and subsequent issues of Employment and Pay Rolls.
3 Includes: Iron and steel, machinery, transportation equipment, railroad repair shops, nonferrous metals,
lumber and allied products, and stone, clay, and glass products.
4 Includes: Textiles and their products, leather and its manufactures, food and kindred products, tobacco
manufactures, paper and printing, chemicals and allied products, products of petroleum and coal, rubber
products, and a number of miscellaneous industries not included in other groups.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EMPLOYMENT AND PAY ROLLS
ALL MANUFACTURING IN D U S T R IE S
1923-25=100

INDEX
140

140

E MPL<DYME NT
tr

100

100

80

80

J

PAY R 0 L LS

60

40

A

60

Trend of Employment and Pay Rolls

120

120

40

20

U N IT E D S T A T ES B U R E A U OF L A B O R S T A T IS T IC S


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4^
O
•^1

498

Monthly Labor Review—August 1939

TREND OF INDUSTRIAL AND B U SIN E SS EMPLOYMENT, BY STATES

A comparison of employment and pay rolls, by States and geographic
divisions, in April and May 1939 is shown in table 3 for all groups
combined and for all manufacturing industries combined based on
data supplied by reporting establishments. The percentage changes
shown, unless otherwise noted, are unweighted—that is, the industries
included in the manufacturing group and in the grand total have not
been weighted according to their relative importance.
The totals for all manufacturing industries combined include figures
for miscellaneous manufacturing industries in addition to the 87
manufacturing industries presented in table 1. The totals for all
groups combined include all manufacturing industries, each of the
nonmanufacturing industries presented in table 1 (except building
construction), and seasonal hotels.
Similar comparisons showing only percentage changes are available
in mimeographed form for ‘‘All groups combined,” for “All manufac­
turing,” for anthracite mining, bituminous-coal mining, metalliferous
mining, quarrying and nonmetallic mining, crude-petroleum producing,
public utilities, wholesale trade, retail trade, hotels, laundries, dyeing
and cleaning, and brokerage and insurance.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Trend of Employment and Pay Rolls

499

T a b l e 3. — Comparison of Employment and P ay Rolls in Identical Establishments in

M ay 1939, by Geographic Divisions and by States
[Figures in italics are not compiled by the Bureau of Labor Statistics, but are taken from reports issued by
cooperating State organizations]
Manufacturing

Total—all groups

Geographic divi­
sion and State

Per­
Num ­ Number cent­ Amount
age of pay roll
ber of on pay
estab­ roll M ay change (1 week)
from May 1939
lish­
1939
April
ments
1939

Percent- ^
N um ber
age
on pay
change
roll M ay
lishfrom
1939
April
1939

859,785
53, 669
38,946
16,404
4 6 1 ,4 6 1

91,275
198,010

+ 0 .2 19,665, 241
+ 4.0 1,019,820
- 1 .2
786,928
364,062
+ 4.5

3, 624
278
215
154

588,757
45,284
33, 387
10, 585

- 0 .5 12, 740,856
830,498
+ 4.2
662,236
- 1.
230,951
+ 3 .7

1 ,8 1 6

2 6 2 ,9 3 2

5 , 7 2 7 ,1 0 4

-

1,496,418
3, 793,649

+2 1

1 0 ,8 0 S , 7 3 6

+ 8 .3

+ 1.6
+ .8

430
732

74,676
161,893

6,613 1,186, 647

Middle Atlantic__
New York_____
New Jersey___
Pennsylvania. . .

31, 842 2,010,432
20,329 918,714
3,920 345,787
7,593 745,931

+ .4
- .7
+ .3
+1.9

52, 866, 569
25,166,381
8,961,479
18, 738, 709

+ 1.1
-.7
+1.5
+3.5

East North Central.
Ohio__________
Indiana_______
Illinois...............
M ichigan...........
Wisconsin_____

24, 841 2,039,035
7,024 500,848

- 1 .7
- 1 .1

8,431 1, 505,404
2,407 380,836

2 ,8 7 1
i 6 ,8 8 9

2 5 2 ,9 8 3
5 9 2 ,6 1 6

- 1 .2 54, 533, 601
- . 7 13,069,971
- . 7 6 ,3 6 9 ,4 0 5

1 ,0 9 0

3,690
«4 ,3 6 7

462,879

+ . 4 1 5 ,5 9 0 ,9 3 2

- 1 .1
+ .7

- 5 . 2 13,692,444

- 6 .5

2 2 9 ,7 0 9

+ 1 .4

6 ,8 1 0 ,8 4 9

+ 1 .7

West North Central
Minnesota.
Iowa__________
Missouri_______
North D a k o t a South D akota.. .
Nebraska______
Kansas............

11, 503
82 , 8 2 3
1,762
2,620
481
449
997
»2 ,3 7 1

429,126

- . 8 10, 516, 983

1 2 8 ,1 5 7

+ .9

3 ,4 0 5 ,8 4 6

South Atlantic
Delaware. .
Maryland—
Dist. of Columbia.
Virginia__
West V irginia...
North CarolinaSouth Carolina..
G eorgia...
Florida__

10, 636
224

823,611
15,03£

14,969, 681
356,966

1 ,5 9 9

1 3 7 ,3 2 8

1,049
1,942
1,082
1, 579
762
1,385
1,014

38,949
108,978
92,978
180,984
91, 722
113, 710
43,923

+ 1.0
+ .5
+ .s
- .4
- 1 .6
+30.6
- 2 .2
- 2 .8
- 2 .2
- 6 .9

East South Central- .
Kentucky___
_
Tennessee___
.
Alabama___
M ississippi...

3,977
1,19f
1,22f
1,061
494

59,191
149,529
4,630
7,942
25,477
5 4 ,2 0 0

258,311
59,04:
100,09f
82,86'
16,30’

Per­
cent­
age
change
from
April
1939

+5.1
+ 1.9
+. 8
+ 8 .6

+ .2 1,897, 637
+ .4 4, 793,058

- .3

Amount
of pay roll
(1 week)
M ay 1939

D o lla r s

D o lla r s

13,174
New England__
761
M a in e .------599
New Hampshire447
Vermont____
M assachusetts.-- 17, 812
1,163
Rhode Island___
2,392
Connecticut...

Per­
cent­
age
change
from
April
1939

2 ,6 4 1

4 2 5 ,7 9 3

1,620

283,136

2 ,3 5 2

4 7 7 ,7 1 8

71,447

2 0 2 ,3 5 9
3 8 7 ,6 2 6
3 7 9 ,8 6 6
1 5 4 ,7 1 7

2,492

210,776

61,5

6 0 ,8 5 2

- . 8 1,450,263 +1.1
- 3 .9 3,488,074 - 2 .9
113, 534 + 3.9
+ 2.5
214,133 + 7.6
+ 3 .2
586,411 + 4.5
+ 3 .8
>»+5.S 1 , 2 5 8 , 7 2 2 3+ 3 . 6

365
813
30
29
136

35,318
88,349
522
2,213
8,747

-.1
+ •1

2,984

598, 595

+• 8
+ 2 .5

2,436
1 ,0 5 2

474

2 4 ,7 7 5

3 ,3 0 9 ,1 5 9

+ 1 .5

82
64.7

1 1 ,0 5 1
9 6 ,4 5 6

1,052,273
2,034, 579
1,702,370
2, 652,929
1,310,262
1, 765,955
785,188

+ .6
+ .9
+5.3
- 2 .8
- .5
- 2 .6
- 5 .0

39
451
214
693
257
392
189

3,363
79, 319
45,784
167,418
84,398
90,128
20,678

- . 1 4, 582,425
+3.9 1,172, 717
1, 754,345
—2. - 1, 413,95(
241,40'
—5.

+• 6
+ 4 .9
+ .8
- 1 .7
- 6 .4

1,032
288
369
288
87

180.907
33,840
73,867
62,387
10,813

4,687,07f

+1.1

1,281

106, 741

—1. ‘
+.3
+.1

1.2 29, 989,310
- 1. 1 1 , 3 6 1 , 8 1 8
7, 215,183

0.2

-

+ 1.4

+.3

+ 9.7

1.8

+.5
- .9

-

+.2
3-1. 1 1 , 4 1 2 , 3 0 9

- 2 . 5 40, 813,688
- 1 . 5 10,100,318
1.0' 5 , 2 6 9 ,
~ ( 5) 1 0 , 2 0 6 , 0 4 0

3-

- 7 .5

1 1 ,3 1 3 ,4 9 5

3+.9 3 , 9 2 4 , 44O

- 2 .4

+1.4
3- 1 . 3
- .9
1.8

-

3-.6
+.3

1.6

-

3 + .,9

+• 1

5,181,999
+ 4 -7
1 , 3 6 2 , ""
-.2
901,907
- 2 .5
1,981,046 - 5 .4
-5 .
13,177 + 7 2
+ 9.9
61,190 +17.9
+ 4.0
223,802 + 8.5
+ 6.0
+ 4 -9
6 3 8 ,6 1 8
+ 2.4

- 1 .7

+2.6

-.9

- 1 .9 10,407, 043

-.4

3+. 3
—. 5

2 6 0 ,5 6 6
2 , 3 1 5 ,149

- 1.3

3 + 2 .4

-.8

116,243
1,438,118
1,086, 531
- 2 .4 2,416,982
- 3 .0 1,176,735
- 2.8 1,269,939
326,781
- 4 .3

—

+1.4
- 1 .5
- 3 .2
- .7
- 3 .8

2.1

-.6

- 1 .7 3,130. 350
716, 874
+ 1.0
- . 7 1, 265,429
1,000,
304
- 2.8
147,743
- 8 .4
-.2

2,240. 092

-

2.2

-. 5
+ 2.5
+(«)
- 1 .7
-

10.1

+ 1.7

. 5,494 214,37S
2 5 3 ,9 8 4
— 1 .7
260
1 6 ,6 4 9
4 0 7 ,1 5
+ .1
2 5 ,5 6 1
•1 9 0
Arkansas-.
532,352 - 2 .7
29,420 - 2.2
238
1,052,91S - 1 .3
53,99 1 - 1 .
.
1,03
Louisiana .
276,869 + 3 .6
+
2
.4
11, 596
140
+ 1 .3
935,62
. 1,23
37,57i
+.
Oklahoma
1 ,1 7 6 ,8 8 7
4
9
,
0
7
6
+
2
.
3
6
4
3
2
,
2
9
1
,
3
7
9 7 ,2 3
. 2 ,3 1
+.
Texas____
I Includes banks and trust companies; construction, municipal, agricultural, and office employment;
amusement and recreation; professional services; and trucking and handling.
s Includes laundering and cleaning; and water, light, and power.
3 Weighted percentage change.
, __
4 Includes automobile and miscellaneous services; restaurants; and building and contracting.
» Less than Mo of 1 percent.
8 Includes construction but not public works.

+.

+.5

+3.7

* includes*banta^real^state; pipe-line transportation; motor transportation ( o t h e r t h a n ° P e ™ ^ “ J?
maintenance); water transportation; hospitals and clinics; and personal, business, mechanical repair, and
miscellaneous services.
» Includes financial institutions, miscellaneous services, and restaurants.
i° Weighted percentage change, including hired farm labor.
......
.
II Includes automobile dealers and garages; and sand, gravel, and building stone.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

500

Monthly Labor Review—August 1939

T a b l e 3 . — Comparison of Employment and P ay Rolls in Identical Establishments in

M ay 1939, by Geographic Divisions and by States— Continued
Total—all groups

Geographic divi­
sion and State

N um ­
ber of N um ber
on pay
estab­ roll
M ay
lish­
1939
ments

Mountain . . . __
Montana_______
Idaho______ _ _
W yoming______
Colorado_______
New M exico.. .
Arizona________
U tah.. ________
Nevada________

Per­
cent­
age
change
from
April
1939

Amount
of pay roll
(1 week)
M ay 1939

Per­
cent­
age
change
from
April
1939

D o lla r s
2 , 796, 598

3,795
602
453
313
1,103
264
396
502
162

111,643
16,891
9,532
7,604
36, 708
6,118
14, 566
17,800
2,424

+ 0 .9
+ 3 .5
+ 4 .0
0
+ .7
+ .6
- 1 .4
-.8
+ 5 .2

Pacific _________ 10,711
W ashington.. . . 2, 548
Oregon__ _____ 1,205
California______ 12 6 , 9 5 8

473,764
88, 330
44, 422

+ 1.9 13, 698, 759
+ 3 .6 2,447, 291
+ 2.4 1,189,664

8 4 1 ,0 1 2

Manufacturing

+0.1
463, 297 + 2.7
241,951 + 6.3
163, 366 -1 7 .8
916,318
129, 315 + 2 .7
392,398
+ .1
417,979
-. 1
71,974 + 5 .8

1 0 ,0 6 1 ,8 0 4

+ 4 .6
+ 2 .5
+4- 4

N um ­
um ber
ber of Non
pay
estab­ roll
M ay
lish­
1939
ments

563
75
61
36
199
29
37
110
16

Per­
cent­
age
change
from
April
1939

32,651 + 3.3
4, 563 + 3 .2
2,889 +11.2
1,247 +1.1
14,392 + 4 .0
751 +18.5
2, 576 + 2.1
5,918 - 2 .1
315 + 2 .9

Amount
of pay roll
(1 week)
M ay 1939

Per­
cent­
age
change
from
April
1939

D o lla r s

863,033 +6. 8
120,744 + 6.9
74, 799 +17.7
41,347 + 2 .9
394, 208 + 6.2
14,181 +17.7
66,188 +11.3
142,458 + 1 .8
9,108 + 7 .4

2,630
558
295

244. 560
52,565
27,098

+ 2.3 6, 930, 092
+ 5.7 1, 473,317
+ 4.4
715, 704

+ 6.0
+ 9 .2
+ 5.3

1 ,8 2 7

1 6 4 ,8 9 7

+ 1 .0

+ 5 .1

4 ,7 4 1 ,0 7 1

12 Includes banks, insurance, and office employment.

INDUSTRIAL AND BU SIN E SS EMPLOYMENT IN PRINCIPAL
METROPOLITAN AREAS

A comparison of employment and pay rolls in April and May 1939
is made in table 4 for 13 metropolitan areas each of which had a popu­
lation of 500,000 or over in 1930. Cities within these areas, but having
a population of 100,000 or over, are not included. Footnotes to the
table specify which cities are excluded. Data concerning them are
presented in a supplementary tabulation which is available on request.
The figures represent reports from cooperating establishments and
cover both full- and part-time workers in the manufacturing and non­
manufacturing industries presented in table 1, with the exception of
building construction, and include also miscellaneous industries.
Revisions made in the figures after they have gone to press, chiefly
because of late reports by cooperating firms, are incorporated in the
supplementary tabulation mentioned above. This supplementary
tabulation covers these 13 metropolitan areas as well as other metro­
politan areas and cities having a population of 100,000 or more,
according to the 1930 Census of Population.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

501

Trend of Employment and Pay Bolls
T able

4.— Comparison of Employment and P ay Rolls in Identical Establishments in
A pril, and M ay 1939, by Principal Metropolitan Areas

Metropolitan area

Number of Number on Percentage Amount of Percentage
pay roll (1 change from
change
pay roll,
establish­
April
from April week). M ay
M ay
ments, M ay
-1 .5

1,585
2,989

619,899
419,215
219,612
295,841
158,283

Cleveland
St. L o u is...
Baltimore .
Boston s__
Pittsburgh.

1,621
1,398
1,164
2,917
1,052

108,844
115, 556
103,970
168,903
158,167

-

San Francisco 9.
Buffalo_______
M ilwaukee------

1, 651
790
1,024

83,823
63,977
94,462

N ew York 1—
Chicago 2_____
Philadelphia3Detroit—------Los Angeles 4_.

13,726
4,460
2,111

+.2

-.7
- 7 .1
+ 1.3

1.1

- 2 .5
+ 1.1
- 1.6
+ 1.1

-. 1
-

1.6

-.4

$16,937,228
11,650,381
5,832,620
9,415,190
4,654,034

- 0 .4
+ .6
+ 1.1
- 7 .9
+ 3 .4

2,955,393
2,829,569
2, 540,033
4,178,061
4,161,383

- .8
-.6
+ 2 .3
-.5
-1 .0

2, 538,804
1,683,096
2, 560,473

+ .7
- 2 .3
-. 1

1 Does not include Elizabeth, Jersey City, Newark, or Paterson, N . J., nor Yonkers, N . Y.
2 Does not include Gary, Ind.
2 Does not include Camden, N J.
* Does not include Long Beach, Calif.
! Does not include Cambridge, Lynn, and Somerville.
8 Does not include Oakland, Calif.

U N EM PLO Y M EN T IN FO R EIG N CO U N TRIES, SECOND
QUARTER OF 1939
UNEMPLOYMENT declined seasonally and was below the level of
the same period of 1938 in the second quarter o>f 1939 in many foreign
countries, according to the various statistical series available.
Registered unemployed in June 1939 totaled 1,349,579 in Great
Britain and 48,840 in Germany. The British registration fot June
is about two-thirds of the peak reached in January of the current year.
Statistics covering the number of unemployed in receipt of benefit in
France show a reduction from 362,899 persons to 348,985 from June
1938 to June 1939. Some decrease in registration in Poland in the
same period is noted. For the countries where the unemployment
situation did not improve, that is, as measured by the available fig­
ures, the level of unemployment tended either to be the same as in
the same period of 1938 or the increase reported was slight.
The table following gives statistics of unemployment in foreign
countries as officially reported, by years from 1933 to 1938, and by
months beginning with May 1938 and including the latest month foi
which figures are available. Beyond comparisons of the figures in
a single series for different periods, it is not possible to use the official
unemployment statistics to measure volume of unemployment in a
single country or to compare conditions in one country with those in
another, owing to the fact that the coverage is not always complete.
For example, only insured persons may be reported in some instances,
or certain classes, such as agricultural labor, may be excluded.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

502

Monthly Labor Review—August 1939
Statement of Unemployment in Foreign Countries
Australia

Trade unionists
unemployed

1933______
1934______
1935______
1936____
1937_________
1938__ .

Number

Percent

104,035
86,865
71, 823
53,992
41,823
40, 526

25.1
20.5
15.6
12.2
9.3
8.7

Austria

Belgium

Compul­
sory insur­
ance, num­
ber of un­
employed
in receipt
of benefit

Unemployment-insurance societies
Wholly unem­
ployed
Number

Percent

Number

182,855
165,469
122, 256
104, 785
132, 708

17.0
19.0
17.9
13.4
11.5
13.9

17U, 028
166, 229
118, 754
91,451
89, 281
163, 651

17.2
17. 2
12.8
10.0
9.8
16.4

171, 217
158,064
152, 286
149,096
144, 076
154, 827
156, 470
232, 788

18.4
16.8
16.1
15.7
15.1
16.1
16. 1
23.6

328, 844
261,768
259,185
231,313

1938

M a y .____
J u n e ... .
July_________________
August____ _. .
September
O ctober...
November____
December____

Partially unem­
ployed

1VJO

39,824

12.3

43, 092

9.2

1 73, 488

12. 5
13.0

42,077

8.9

1 7 6 , 621

id

46,611

9.8

62,127

.y

Percent

1939

January .
February...
March
April___
M a y ... __

218, 334
21.9
178, 051
17.8
148, 688
14. 7
0
145,062
14.3
.............
............. .

36, 8«j1

10.1

1
Canada

Year and date (end of month)

Percent
of tradeunionists
ployed

1933___
1934_____
1935
___________
1936 . . .
1937___
1938_______

22.3
18.2
15.4
13.3
10.7
13.1

Danzig,
Free
City of

Number
of unem­
ployed
registered

Denmark

T r a d e - u n io n unem­
ployment f u n d s —
unemployed
Number

20,326
17,983
13,553
8,009
3,499

Estonia

Percent

Finland

Number
Number of
unem­
unem­
ployed re­
ployed
maining on
registered
live register

y /,
81, 756
76,195
78,669
95,103
97,076

28.8
22. 2
19.8
19.3
21.9
21.4

8, 210
2,970
1,779
1,276
1,158
1,243

17,139
10,011
7,163
4,796
3, 763
3,602

78, 541
75, 227
76, 743
76,659
76, 739
86,188
103, 701
146, 533

17. 5
16.7
16.9
16.9
16. 8
18.8
22 . 7
31. 6

872
684
519
522
607
999
1, 719
1,831

2,963
2,414
2,186
2,747
3,192
4, 041
5,172
4,294

139, 225
126,592
108,316
80,242

29.9
27.1
22.8
16. 9
1. t
1.0

2,252
1,996
1,769
1,476
708
s 582

5,006
4,412
4,331
3,509
2,985
2,091

1938

M av . .
June______
July__________
August____ _
September
October
November
December

13.2
13.5
14.0
11.6
10.4
12.3
13.7
16.2

1,985
4,612

15.9
16.4
15.7

2,602
1,812
1,492

2,022
1,544
1,139
1,048

1939

January
February____
March . .
A pril.. . . . .
M ay___ . . .
June_____
1 Revised series—increased coverage.
1 Provisional figure.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

UO, OL

Trend of Employment and Pay Rolls

503

Statement of Unemployment in Foreign Countries— Continued
Great Britain and Northern Ireland
Germany

France

Compulsor y insurance

Great
Britain

1933__________ _________
1934_____________________
1935_____________________
1936_____________________
1937
1938_____________________

Temporary stop­
pages

W holly unem­
ployed

Year and date (end of
month)
Number
of unem­
ployed in
receipt of
benefit

Number
of unem­
ployed
registered

276,033
345,033
426,931
432,120
350,458
375', 742

4, 733,014
2,718, 309
4 2, 151.039
4 1, 592, 630
3 912,312
429,461

380,826
362,899
344, 517
338,383
338,409
361,724
367,106
404, 730
415, 987
414, 756
400,075
386,158
375, 522
348,985

Number
of persons
registered Number
with em­
ployment
exchanges3

Per­
cent

Number

2,110,090
1, 801,913
1, 714, 844
1,497, 587
1,277,928
1,423, 662

16.4
13.9
13.2
11.3
9.4
10.3

456.678
368,906
312,958
251, 379
204, 020
378,918

3.5
2.9
2.3
1.9
1. 5
2.8

338, 355
292,240
218, 328
178, 762
155,996
163, 941
152,430
455,656

1, 778, 805 1, 375,768
1, 802,912 1, 351,865
1, 773,116 1, 338, 509
1,759,242 1, 333,082
1, 798, 618 1,387,087
1, 781, 227 » 1,516,467
1, 828,103 1, 568, 883
1, 831, 372 1, 591,128

10.0
9.9
9.8
9.7
10.1
10.2
10.6
10.7

404, 303
477,617
480, 569
447,161
419, 695
« 314,161
311, 562
299,831

3.0
3.5
3.5
3.3
3.1
2.1
2.1
2.0

301,897
196, 770
134,018
93,933
69,555
3 48,840

2,039,026
1, 896, 718
1, 726,929
1, 644,394
1,492,282
1,349, 579

1,711.087
1,660, 654
1, 550, 785
1,439,426
1, 333, 063
1,199, 560

11.5
11.2
10.5
9.7
9.0
8.1

385,995
297, 601
238,046
245, 821
203,413
200.031

2.6
2.0
1.6
1.7
1.4
1.3

2, 520, 616
2,159,231
2,036, 422
1, 754,975
1, 790, 681

1988

M ay____________________
June _ . _ ____ _
.
July____________________
A u gu sts. _______________
September_______________
October____ ____________
November___________ ___
December_____________ .
1989

J a n u a r y ..._____________
February ______________
M arch.. _____ . . . ___
April_______ ____ __ _
M ay_____ . . . ____ ____
June____________________

Year and date (end of
month)

1933_____________________
1934_____________________
1935_____________________
1936_____________________
1937_____________________
1938

Hungary

Ireland

Japan

Latvia

Trade-unionists
Em ploy­
unemployed
ment ex­
changes,
applica­ Christian Social
tions for (Buda­
Demo­
work
pest)
cratic

Compul­
sory in­
surancenumber
unem­
ployed
registered

Official estimates,
unemployed

Number
unem­
ployed
remaining
on live
register

Percent

1,085
996
967
800
945
1,093

26,716
22, 291
18,315
15,637
14, 279
16,703

72,255
103,671
« 119,498
99,834
82,425
88, 714

408, 710
372,941
356,103
338,365
295,443

5.6
5.0
4.6
4.3
3.7

8,156
4, 972
4,825
3,851
3,014
2,164

46,445
45,415
45,454
47, 659
47,413
45,328
43,631
49,216

1,022
1,214
1,205
1,115
946
891
990
1,041

18, 767
19,191
19,134
15, 534
12,889
12, 664
12,953
16,103

97, 571
71,959
68, 320
70,552
70,411
91,280
93,223
88,380

227,992
230, 262
230,055
230,163
230, 203
226, 798
221,030
216, 227

2.9
2.9
2.9
3.0
2.9
2.9
2.7
2.6

1,313
1,148
887
604
663
1,060
2,132
3,737

54,262
57,418
58,107
53, 795

1,087
1,090
1,146
884

20,965
20,929
20; 122

105,012
105,457
106' 859
104,945
96,477
70; 470

212,254

2.6

4,330
4,487
4,055
2, 967
3 1,254

1989

January_________________

Number

60, 595
52,157
52,048
52,114
48,359
47,426

1988

M ay ____________________
June____________________
July____________________
A u g u st______________ . . .
September____________ __
October_________________
N ovember. _____________
December___ . . .
____

3 Provisional figure.
3 N ew series from September 1937.
4 Includes the Saar.
3 Includes agricultural and domestic labor.
6 Registration area extended; incomplete returns, July to September 1938.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Per­
cent

504

Monthly Labor Review—August 1939
Statement of Unemployment in Foreign Countries— Continued
N ew Zea­
land

Netherlands

Year and date (end of
month)

Poland

Unemployment in­
surance societies
—unemployed
Number

1933.
1934.
1935
1936.
1937.
1938.

Norway

Number
Trade unionists
Number
unem­
(10 unions) un­
unem­
ployed
employed
ployed
registered
remaining
by employ­
on live
Percent ment ex­ Number Percent register
changes 7

163,000
160, 400
173,673
168,668
137, 7()o
134,181

31.0
32.1
36.3
36.2
29.2
27.3

46,971
39, 235
38, 234
36,890

128,016
122,873
122,013
118,894
118,383
119,397
126,613
155,434

26.0
24.9
24.6
23.9
23.8
26.6
25.3
30.8

158, 085
132,308
118,879
110, US
2 102, 774
2 98,168

31.3
26.5
23.6
21.7
20. 2
19.2

Number
unem­
ployed
registered
with em­
ployment
offices

16,588
15,963
14, 783
13,267
16,532
19,230

33.4
30.7
25.3
18.8
20 0
22.0

35,591
35,121
36,103
32,643

249,660
342,166
381,935
367, 327

28^ 923

347,509

8,314
8,721
3,929
2,154
1,575
1,245
1,026
917

17, 853
16,197
14,843
14,504
15,683
16, 940
18,519
23,426

20.5
18.5
16.9
16.4
17.7
18.5
20.7
26.2

25,693
22,938
20,144
21,068
26,105
30,085
33, 861
34,873

304,336
296, 322
276,759
211,076
213,781
234, 534
316,474
455,470

1,036
1,143
726

24,584
24,045
22, 355
18,981

27.6
26.9
24.9
21.1

34,122
34, 713
33,194
30, 212
25 037
20 80?

542,120
539,512
496,324
390,308
296,674

19S8

M ay_____ _____
June__________
July__________
August________
September_____
October_______
N ovem ber_____
December_____
1939

January_______
February______
March........ .........
April__________
M a y ..................
June__________

Rumania

Year and date (end of
month)

Sweden

Yugo­
slavia

Switzerland

Trade unionists
unemployed
Number
unem­
ployed
remaining
on live
Number Percent
register

Unemployment funds
W holly unem­
ployed

Partially unem­
ployed

Number
of unem­
ployed
regis­
tered

Number Percent Number Percent
1933.
1934.
1935.
1936.
1937.
1938.

29,060
16,871
13,852
13, 549
10,851
7, 271

97,316
80, 216
81,385
71,552
67, 351
74,255

23.7
18.9
16.1
13.6
11.6
11.8

M ay..................
June______ _
July............. .
August______
September___
October______
November___
December____

5, 618
5,348
3,836
4,807
5,493
5,290
5, 382
8,668

56,281
57, 285
49,093
50,461
51,557
62,137
75,289
122,357

9.1
9.3
8.0
8.1
8.2
9.8
11.9
19.1

37,900
34,005
32,700
33, 600
34,264
38,400
46, 500
74,689

6.8
6.3
5.8
6.0
6.3
6.8
8.2
13.7

10,876
9, 349
7,424

101,179
91,456
85,994
69, 376
50, 713

15.0
13.3
12.4
10. 1
7.3

76, 000
65, 100
56,518
36, 200
28,800

13.3
11.4
10.4
6.4
5.1

10.8
9.8
11.8
13.2
10.0
8.6

8 5
6.1
5.9
5.3
2.5
4.5

22* 517

24,900
25, 580
24,800
23,800
23, 502
22,000
22,700
26,178

4.7
4.7
4.6
4.4
4.3
4.1
4.2
4.8

18,023
14,828
13,049
10,973
10,926
12,103
14,739
23,590

23, 300
23,100
21,069
16. 900
15, 800

4.3
4.3
3.9
3.0
2,8

32,831
36,699
33,508
27,965
21, 751

1939

January______
February_____
March....... ........
April_________
M ay.................. .

1 New series from 1933 through September 1937; revised in October 1937.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Building Opeiations

SUMMARY OF B U ILD IN G CONSTRUCTION IN
P R IN C IP A L C ITIES, JU N E 19391
THE level of building activity in June as measured by the value of
permits issued was 0.4 percent higher for all classes of building con­
struction than in May. A substantial gain was reported in cities
with a population of 500,000 and over and a minor increase in cities
with a population of 10,000 and under 25,000, while all other city
size groups reported decreases. New nonresidential construction was
40.7 percent greater than in May, but additions, alterations, and
repairs to existing structures showed a decrease of 6.0 percent.
Comparing June with the same month in 1938 indicated expendi­
tures for total building construction were 41.9 percent greater than
in June 1938. Increases ranged from 18.8 percent in cities with a
population of 2,500 and under 5,000 to 48.7 percent in cities with a
population of 100,000 and under 500,000. The dollar volume of new
residential construction increased 44.4 percent over the year period
and new nonresidential construction showed a gain of 57.0 percent.
Permit valuations of additions, alterations, and repairs were 12.3
percent greater than in June 1938.
Comparison of June 1939 with M ay 1939 and June 1938

A summary of building construction in 2,006 identical cities in
May and June 1939 and June 1938 is given in table 1.
T able

1.— Summary of Building Construction for Which Permits Were Issued in 2,006
Identical Cities, M ay and June 1939 and June 1938
Number of buildings

Class of construction

Permit valuation
Percentage
change from—

Percentage
change from—
June
1939

June 1939
M ay
1939

June
1938

M ay
1939

June
1938

All construction------------ ------ ----------------------

69,325

- 8 .8

+13. 9

$196,909,470

+ 0 .4

+41.9

New residential___________________________
New nonresidential__________ ____ _________
Additions, alterations, and repairs---------- --

18,386
11,805
39,134

- 8 .1
-1 1 .9
- 8 .1

+27.1
+12.2
+ 9 .0

100,072,491
65,904,921
30,932,058

-1 4 .0
+40.7
- 6 .0

+44.4
+57.0
+12.3

i More detailed information by geographic divisions and individual cities is given in a separate pamphlet
entitled “ Building Construction, June 1939,” copies of which will be furnished upon request.

163839— 39-

-16


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

505

506

Monthly Labor Review—August 1939

A summary of permit valuations of housekeeping dwellings and the
number of families provided for in new dwellings in 2,006 identical
cities, having a population of 1,000 and over, is shown in table 2 for
June 1939 compared with May 1939 and June 1938.
T a b l e 2 . —Permit Valuation of Housekeeping Dwellings and Number of Families

Provided for in 2,006 Identical Cities, M ay and June 1939 and June 1938
Permit valuation of house­
keeping dwellings

Number of families pro­
vided for in new dwellings

Percentage
change from—

Type of dwelling
June 1939

$98,150, 036

Multifamily » ...

.

- ____________________

68,960, 265
3, 008, 691
26,181,080

Percentage
change from—•
June 1939

M ay
1939

June
1938

-1 4 .8

+43.4

26, 552

-1 4 .4

+47.6

- 5 .4 +25.6
-1 2 .0
- 3 .0
-3 2 .8 +150. 7

16, 983
1,204
8,365

-6 .5
- 7 .4
-2 7 .9

+26.2
+ 5 .8
+146.5

M ay
1939

June
1938

i Includes 1- and 2-family dwellings with stores,
a Includes multifamily dwellings with stores.

Construction During First 6 Months , 1938 and 1939

Cumulative totals for the first 6 months of 1939 compared with the
same months of the preceding year are shown in table 3. The data
are based on reports received from cities having a population of 1,000
and over.
T a b l e 3 . —Permit Valuation of Building Construction, First 6 Months of 1938 and of

1939, by Class of Construction
Permit valuation of building construction, first
6 months of—
Class of construction
1939

New residential
New nonresidentiaL-.

-

___ _
. ..
___
_ _____ ____________

1938

Percentage
change

$1,031, 212,008

$790, 582,814

+30.4

558, 253, 355
299,825, 777
173,132,876

380,076, 587
250.710,192
159,796,035

+46.9
+19.6
+8. 3

Table 4 presents the permit valuation of housekeeping dwellings
and number of family-dwelling units provided in cities with a popu­
lation of 1,000 and over for the first 6 months of 1938 and 1939.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

507

Building Operations
T a b l e 4 . —Permit

Valuation and Number of Family-Dwelling Units, First 6 Months of
1938 and of 1939, by Type of Dwelling
Housekeeping dwellings
Number of families pro­
vided for

Permit valuation
Type of dwelling
First 6 months of—

Per­ First 6 months of— Per­
cent­
cent­
age
age
change
1939
1938
change

1939

1938

______ ___________

$550, 937,567

$377,443,090

+38.0

152, 576

105,107

+45.2

1fam ily____ ___ ______
2family >____________ ____
M ultifam ily3_________ . . .
. . . ..

350,843,216
17,018,028
183,076, 323

249,480, 689
16,508, 953
111, 453,448

+40.6
+ 3.1
+64.3

88, 583
6, 669
57,324

63.097
6,361
35, 649

+40.4
+ 4 .8
+60.8

All types____

! Includes 1- and 2-family dwellings w ith stores.
3 Includes multifamily dwellings with stores.

Analysis by Size of City, June 1939
Table 5 shows the value of permits issued for building construction
in June 1939 compared with May 1939 and June 1938, by size of city
and by class of construction.
T a b l e 5 .—Permit

Valuation of Building Construction in 2,006 Identical Cities, by Size of
City, M ay and June 1939 and June 1938
New residential buildings

Total construction

Size of city

Total, all reporting cities_________
500.000 and over_______________ . .
100.000 and under 500,000_________
50.000 and under 100,000______ . .
25.000 and under 50,000_________ _
10.000 and under 25,000 . . ______
5.000 and under 10,000____________
2,500 and under 5,000_______ .
1.000 and under 2,500_____________

N um ­
ber of
cities

Permit val­
uation,
June 1939

2,006 $196,909,470
14
78
97
158
425
361
431
442

74,325,940
41,389,960
17,177, 329
17,136,638
25,456,791
10,909,473
7,283,858
3,229,481

Permit val­
uation,
June 1939

M ay
1939

June
1938

+ 0 .4

+41.9 $100,072,491

+26.4
-2 0 .8
-1 6 .0
- 5 .0
+ 9 .3
-1 0 .3
- 4 .2
- 8 .8

+47.0
+48.7
+33.8
+45.1
+33.0
+35.3
+18.8
+33.3

35,960, 234
21,075, 749
7,529,329
8,518,031
13,943, 597
7,151,088
4,227,271
1,667,192

Percentage
change from—
M ay
1939

June
1938

-1 4 .0

+44.4

+ 6 .3 ' +58.1
-3 7 .4
+61.0
+23.4
-2 8 .6
+48.4
-1 9 .7
+28.1
+ 0 .6
+37.2
- 4 .3
+ 9.5
- 5 .0
-1 4 .1
+ 1 .8

Nonresidential
buildings

Additions, alterations, and
repairs

Percentage
Permit val­ change from—
uation,
June 1939
June
May
1938
1939

Percentage
Permit val­ change from—
uation,
June 1939
June
M ay
1938
1939

Total, all reporting cities,

$65,904,921

500.000 and over________
100.000 and under 500,00050.000 and under 100,000. _
25.000 and under 50,000...
10.000 and under 25,000...
5.000 and under 10,000__
2,500 and under 5,000____
1.000 and under 2,500____

27,622,783
12,066,534
6, 545,964
5,459,127
8,039,503
2, 543, 229
2,371,492
1, 256,289


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Percentage
change from—

+40.7

Popula­
tion
(census
of 1930)

+57.0 $30,932,058

- 6 .0

+12.3 59,486,442

10, 742,923
8,247,677
3,102,036
3,159,480
3,473,691
1, 215,156
685,095
306,000

+ .1
+ .7
- 7 .8
+ 4 .8
-2 7 .1
-2 4 .9
- 2 .8
-3 9 .8

+ 2 .8 21,449,853
+32.7 14, 710,135
+15.4 6,427,410
- 4 . 3 5,605,412
+26.0 6,526,856
- 2 . 8 2,520,803
+10.1 1,537,153
+19.1
708,820

+93.9 +59.0
+16.4 +41.7
+61.5
- .1
+23.9 +97.4
+72.5 +46.4
-1 7 .1 +59.0
+43.9
- 3 .1
+15.1 +138.6

508

Monthly Labor Review-—August 1939

The permit valuation of housekeeping dwellings in the 2,006 iden­
tical cities reporting for May and June 1939, together with the number
of family-dwelling units provided in new dwellings, by size of city, is
given in table 6.
T a b l e 6 . —Permit

Valuation of Housekeeping Duellings and Number of Families
Provided for in 2,006 Identical Cities, by Size of City, M ay and June 1939
Permit valuation of house­
keeping dwellings

Size of city
June 1939

Per­
M ay 1939 centage
change

Number of families provided for in—

All types

1-family
dwellings

2-family
dwellings 1

M ulti­
family
dwellings 2

June M ay June M ay June May June M ay
1939 1939 1939 1939 1939 1939 1939 1939
Total,

all

reporting $98,150,036 $115,254, 779

500.000 and ov er..
35, 597,934
100.000 and un der
500,000____________ 20, 948, 249
50,000 a n d u n d e r
100.000
_________
7, 406, 824
25,000 a n d u n d e r
50,000_____________
8, 392,031
10,000 a n d u n d e r
2.5 non
13,604, 697
5,000 and under 10,000. 6, 313,188
2,500 and under 5,000._ 4, 226, 521
1,000 and under 2,500. . 1, 660, 592

-1 4 .8 26, 552 31, 036 16,983 18,161 1,204 1,268 8, 365 11, 607

33, 760, 004

+ 5 .4 9,504 8, 551 4,191 4, 253

260

368 5, 053 3,930

33, 587,849

-3 7 .6 5,730 9, 439 3,506 3, 710

338

352 1,886 5, 377

10,390, 661

-2 8 .7 1,940 2,860 1, 594 1,832

171

184

10, 610,821

-2 0 .9 2, 328 3, 063 1,772 1,927

135

87

13, 744, 758
6,885, 653
4, 335,101
1,939, 932

- 1 .0 3, 792 3, 716 3,099 3,342
- 8 .3 1,740 1,791 1,452 1,569
- 2 . 5 1,046 1,078
947 1,018
-1 4 .4
472
538
422
510

156
62
49
33

169
46
40
22

175

844

421 1,049
537
226
50
17

205
176
20
6

1 Includes 1- and 2-family dwellings with stores.
2 Includes multifamily dwellings with stores.

The information on building permits issued is based on reports
received by the Bureau of Labor Statistics from 2,006 identical cities
having a population of 1,000 and over.
The information is collected by the Bureau of Labor Statistics from
local building officials, except in the States of Illinois, Massachusetts,
New Jersey, and Pennsylvania, where the State departments of labor
collect and forward the information to the Bureau. In New York
and North Carolina the information from the smaller cities is collected
by the Bureau of Labor Statistics from local building officials and the
information from the larger cities is collected and forwarded to the
Bureau by the State departments of labor. The permit valuations
shown in this report are estimates made by prospective builders on
applying for permits to build. No land costs are included. Only
building projects within the corporate limits of the cities enumerated
are included in the Bureau’s tabulation. The data collected by the
Bureau of Labor Statistics show, in addition to private and municipal
construction, the value of buildings for which contracts were awarded
by the Federal and State Governments in the cities included in the
report. For June 1939 the value of these buildings amounted to
$33,033,000, for May 1939 to $35,234,000, and for June 1938 to
$8,032,000.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

509

Building Operations
Construction From Public Funds

The value of contracts awarded and force-account work started
during June 1939, May 1939, and June 1938, on construction projects
financed wholly or partially from various Federal funds, is shown in
table 7.
T a b l e 7. — Value of Contracts Awarded and Force-Account Work Started on Projects

Financed from Federal Funds June 1939, M ay 1939, and June 1938 1
Contracts awarded and force-account work
started—
Federal agency

T otal______________________________ _______________
Public Works Administration:
Non-Federal:
N I R A
__________________________
E. R. A. A ...................................................................
P W A A , 1938
_____Federal projects under The Works Program
---------Regular Federal appropriations---------- ----------------------U. S. Housing Authority------ -----------------------------------

June 1938 2

June 1939

M ay 1939 2

$129,879,040

$144,497,870

561, 294

1, 208,138

410,371

548,413
382,457
23,284,890
3, 367,548
92,226, 757
9,507, 681

1,303,984
381,177
68,154,374
5,492,094
37,716,342
30, 241,761

3 2,211, 782
* 30,089, 710

$97,410,623

3, 639. 615
61,036, 855
22,290

1 Preliminary, subject to revision.
2 Revised.
3 Includes $74,244 low-cost housing.
* Includes $11,003 low-cost housing.

The value of public-building and highway construction awards
financed wholly from appropriations from State funds, as reported by
the various State governments for June 1939, May 1939, and June
1938 is shown in the following statement:
P u b li c b u ild in g

June 1939_____________________ $1, 911, 846
May 1939_____________________
441, 032
June 1938_________ ____________ 1, 874, 157


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

H ig h w a y
c o n s tr u c tio n

$5, 017, 854
4, 012, 847
12, 230, 999

Retail Prices

FOOD PR IC E S IN JU N E 1939
THE average retail cost of food declined 0.3 percent between May
and June. Meat costs were 1.2 percent lower and prices of fresh
vegetables showed marked seasonal declines.
The June index for 84 foods combined was 76.3 percent of the
1923-25 average. It was 4.8 percent lower than in June 1938.
Indexes for all commodity groups stood below the level of a year ago
with cereals and bakery products showing the greatest decreases.
The June index for all foods was 17.6 percent higher than in June
1933 and 26.4 percent below the corresponding month in 1929.
Details by Commodity Groups

The cost of cereals and bakery products increased 0.2 percent
between May and June, reversing the downward trend which has
been continuous for almost 2 years. The advance was largely due to
an increase of 1.7 percent in the price of flour, which was higher in 20
cities. Corn meal increased 1.0 percent. Price changes for other
items in the group were relatively unimportant. The price of white
bread was slightly lower in 3 cities, resulting in an average decrease
of 0.1 percent for this staple food.
Meat costs, which have increased steadily throughout the year,
declined 1.2 percent. Costs were lower in 39 cities. Price decreases
were reported for 14 of the 21 items in the group. Fresh pork showed
the most decline. Chops decreased 3.3 percent and loin roast 3.9
percent. Cured pork was down 1.3 percent. The cost of beef and
veal was 1.2 percent lower. Lamb and roasting chickens showed
smaller decreases. Canned salmon was slightly higher.
The index for dairy products remained unchanged, the result of
contrary price movements for butter and for fresh milk. Butter rose
N ote.— All percentages referred to in this report are based on prices and
indexes computed to three decimal places.
510


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Retail Prices

511

2.2 percent and was higher throughout the country. Delivered fresh
milk declined 0.8 percent due to lower prices in six cities, with the
greatest decrease, about 3 cents a quart, shown for St. Louis. Cheese
advanced 0.9 percent and cream declined 1.0 percent.
Eggs increased 1.0 percent. This was less than the usual seasonal
advance. Egg costs were 12.0 percent below the level of a year ago.
The cost of fruits and vegetables for the 51 cities combined decreased
0.2 percent. Declines in 28 cities slightly more than offset advances in
23 cities. Eight of the 13 fresh items showed price decreases. Po­
tatoes declined 0.4 percent and prices of other fresh vegetables, except
celery and sweetpotatoes, decreased much more. The greatest decline
was 17.1 percent for green beans. Prices of apples, oranges, and
lemons increased materially. Canned peas decreased 0.9 percent.
No significant price changes were recorded for other canned and dried
items.
Beverages and chocolate declined 0.1 percent, with slightly lower
prices shown for all items in the group.
Fats and oils decreased 0.6 percent. Lard was 1.1 percent lower.
Oleomargarine declined 0.3 percent; shortening in cartons decreased
1.0 percent. Prices of these items have declined steadily for almost
a year. The price of shortening in tin containers showed an increase
of 0.2 percent and was 1.1 percent higher than a year ago.
The cost of sugar and sweets increased 0.3 percent. The price of
sugar rose 0.5 percent, continuing the upward tendency which was
first shown in April. Molasses showed a slight change upward, while
corn sirup and strawberry preserves declined 0.1 percent each
Indexes of retail costs of food for June and May 1939, together with
indexes for June 1938, 1933, and 1929, are shown in table 1. The
accompanying chart shows the trend in the cost of all foods and of
each major commodity group for the period from January 1929 to
June 1939, inclusive.
T able

1.— Indexes of Retail Food Costs in 51 Large Cities Combinedf by Commodity
Groups, June and M ay 1939 and June 1938, 1933, and 1929
[1923-25=100]
1939
Commodity group

All foods________________ ______ ___ ______ ____

June 15,
1929

June 13 a M ay 16

June 14,
1938

June 15,
1933

76.3

76.5

80.2

64.9

103.7

85.0
93.1
71.2
55.8
65.6
65.2
73.8
56.6
65.4
62.1
62.3

84.9
94.2
71.2
55.3
65.7
65.3
73.8
56.5
65.5
62.4
62.1

91.8
96.9
76.0
63.4
66.0
65.2
78.2
59.0
66.8
67.4
63.8

71.8
65.9
64.7
43.5
67.5
68.9
66.7
52.5
67.3
49.9
61.0

97.7
123.3
101.4
85.7
98.2
97.8
98.1
102.5
110.5
93.4
72.3

1 Aggregate costs of 42 foods in each city prior to Jan. 1, 1935, and of 84 foods since that date, weighted to
represent total purchases, have been combined with the use of population weights.
* Preliminary.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

512

Monthly Labor Review—August 1939

RETAIL COST OF FOOD
1923-25 = 100

ALI

FOODS

V v

^BEVER AGES a

CHOCOL M E

............ .. ...........
SUGAR

1929

1930

1931

1932

UNITED STATES BUREAU OF LABOR STAT IST IC S


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1933

1934

1935

---------- 1---------a SWEETS

1936

1937

1938

1939

513

Retail Prices

Prices of each of the 84 foods for 51 cities are combined with the use
of both consumption and population weights. Quantity weights for
each food include the average family consumption in each city, not
only of the food priced, but for groups of foods which are related in
kind and which seem to follow the same price trend. These weights
are based on the cost of living study of 1917-19. Population weights
are averages of the population in 1920 and 1930 for each city, including
adjacent metropolitan areas and cities of over 50,000 in the same
region.
Prices of 48 of the 84 foods included in the index were lower in
June than in May, 34 were higher, and 2 were unchanged. Com­
pared with June 1938, 66 foods cost less, 17 cost more, and 1 was
unchanged.
Average prices of each of the 84 foods for 51 cities combined are
shown in table 2 for June and May 1939, and June 1938.
T a b l e 2 . —Average Retail Prices of f!4 Foods in 51 Large Cities Combined, .fane and

M ay 1939 and June 1938
[»Indicates the foods included in indexes prior to Jan. 1,1935]
1938

1939
Article

Cereals and bakery products:
Cereals:
»Flour, w h e a t........... »Macaroni___________
»Wheat cereal_______
»Corn flakes.--.........
»Corn meal__________
Hominy grits_______
»Rice_______________
»Rolled o a ts.......... .......
Bakery products:
»Bread, white_______
Bread, whole-wheat..
Bread, rye__________
Cake---------------------Soda crackers---------Meats:
Beef:
»Sirloin steak—...........
»Round steak__ ____
»Rib roast......... . —......
♦Chuck roast—...........
»Plate______________
Liver______________
Veal:
Cutlets— ....................
Pork:
»Chops_____ _______
Loin roast_________ _
»Bacon, sliced_______
Bacon, "strip________
»Ham, sliced........ .......
Ham, whole_______
Salt pork______ ___
Lamb:
Breast_____________
Chuck___ _________
»Leg----------------------Rib chops_________
Poultry:
»Roasting chickens...
Fish:
Salmon, p in k .............
»Salmon, red................
1 Preliminary.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

June 13 i

M ay 16

June 14

C e n ts

C e n ts

C e n ts

3.6
14.2
24.2
7.2
4.5
8.4
7.5
7.1

4.0
14.8
24.4
7.3
4.7
8.7
7.8
7.2

...............pound—
............... ..d o ___
28-oz. package__
,-8-oz. package..
_______ pound..
_24-oz. package..
_______ pound..
_________ do___

3.6
14.2
24.0
7.2
4.5
8.4
7.5
7.1

do___
do—
d o ....
do—
do—

8.0
9.2
9.3
24.9
15.2

9.2
9.2
25.1
15.2

24.9
16.3

do___
.do___
do___
do___
.do___
.do___

39.7
36.2
30.0
23.5
15.3
28.1

39.7
36.0
30.5
23.9
15.9
27.8

38.5
36.0
29.5
23.2
15.3
26.1

do___

42.1

42.7

42.0

__do___
__do___
_do___
_.do___
__do___
__do_
_ do. __

29.4
23.2
32.0
26.7
46.9
27.8
17.4

30.4
24.1
32.5
27.4
46.7
28.0
18.1

34.7
28.3
36.5
30.9
46.4
28.9

--d o ___
_ do___
..d o ___
..d o —

13.0
23.0
30.0
38.8

13.3
23.3
30.1
38.6

13.1
22.7
29.7
36.1

.do___

31.1

31.1

35.5

,16-oz. can..
..........do___

12.7
23.0

12.7
22.9

13.4
26.8

8.0

8.8
9.8

10.1

20.6

514
T able

Monthly Labor Review—August 1939
2.—Average Retail Prices of 84 Foods in 51 Large Cities Combined, June and
M ay 1939 and June 1938— Continued
1939

1938

Article

Dairy products:
*Butter_____________ _________
‘ Cheese______________________ "
Cream_______________________
Milk, fresh (delivered and store)
‘ Milk, fresh (delivered)________
M ilk, fresh (store)_____________
‘ M ilk, evaporated__
‘ Eggs------ ------ ---------------------------Fruits and vegetables:
Fresh:
Apples_____ _____ _________
‘ Bananas^___ _____________
Lemons_________ ____ _____
‘ Oranges__________________
Beans, green______________
‘ Cabbage__________________
Carrots_______ ___________
Celery____________________
Lettuce______. . _____ ______
‘ Onions........................ ...........
‘ Potatoes__________________
Spinach___________________
Sweetpotatoes—___________
Canned:
Peaches___________ _____ _
Pears_____________________
Pineapple________ ________
Asparagus_________________
Beans, green_______________
‘ Beans with pork___ ________
‘ Corn a____________________
‘ Peas.___ _______ __________
‘ Tomatoes_____ ____________
Tomato soup_____ _______
Dried:
Peaches___________ _______
‘ Prunes_________ __________
‘ Raisins___________________
Black-eyed peas____________
Lima beans________________
‘ N avy b e a n s ..._____________
Beverages and chocolate:
‘ Coffee_________________ _______
‘ Tea________ j _________________
Cocoa_____________
Chocolate__ _______________
Fats and oils:
‘ Lard..................................................
Shortening, other than lard:
In cartons...................... ............
In other containers_________
Salad oil_________ ____ ________
Mayonnaise___________________
‘ Oleomargarine_________________
Peanut butter_________ ________
Sugar and sweets:
‘ Sugar______ ____ ______________
Corn s ir u p ..._________________
Molasses...... ...................... ..............
Strawberry preserves___________

June 13

M ay 16

June 14

C e n ts

C e n ts

C e n ts

-------pound..
--------- do___
------ ^-pint__
-------- quart..
----------do___
----------do___
14H-0Z. can..
........ .dozen ..
.pound..
. .. d o . . . .
.dozen..
--.d o ______
pound..
. . . do ----------.bunch..
..s ta lk ..
..h e a d ..
pound..
— do___
- d o ___
—do----. —No. 2H can..
------------- do___
------- . . . . d o ___
------ No. 2 can..
-------------do___
------ 16-oz. can ..
........ No. 2 can..
-------------do___
------------ d o . . .
---lOH-oz. can..
.pound.
15-oz. package. ----------pound..
-------------do___
-------------do___
---- ---- do___
........Y \ -pound...
------8-oz. can__
,8-oz. package..

30.6
24.3
13.4
11.1

11.5
10.4

32.2
26.2
14.4

11.6

12.3
11.3
7.1
32.3

10.5

6.8

6.8

28.3

28.1

6.1
6.1
24.6

5.8

6.2

28.0
8.8
3.5
5.5
9.3
7.5
3.9
2.7
5.9
4.9

29.9
24.1
13.5
11.3

22. 9
25.8
10.6

4.1
5.6
8.3
7.6
4.4
2.7
6.5
4. 7

12.0

5.6

6.1

26.7
26.5
9.3
3.8

6.0
9.3
8.2

4.6
2.7
5.0
4.5

16.7
20.3
21.3
27.7
9.9
7.2
10.3
13.7
8. 7
7.5

16.7
20.3
21. 3
27.8

15.1
9.0
9.4

15.1
9.0
9.4

15.5
9.2

8.9
5.9

8.9
5.8

7.4
9.0
6.3

8.0

22.4
17.4

10.0

7.2
10.3
13.8
8.7
7.5

8.0

22.4
1 1. 5

19.3
21.6

22.4
29.9
11.4
7.4
11.7
15.4
8.9
7.4

10.0

16.0

16.1

23.1
17.8
8.7
16.2

pound—

10.4

10. 5

12.7

. —do___
. ..d o ___
. —p in t..
H-pint—
.pound .,
— do___

12.2

20.3
24.1
17.1
16.0
17.9

12.3
20.3
24.0
17.2
16.1
18.0

13.0
19.4
24.7
17.5
17.1
18.5

5.2
13.7
13.6
29.6

5.1
13.7
13.6

5.3
13.9
13.7

____ do___
24-oz. can..
,18-oz. can..
__ pound..

8.6

8.6

20.6

21.6

2 Since April 1939 the price of canned corn has been based upon quotations of cream style only, and are not
strictly comparable with average prices for earlier months which included both cream style and wholeIrprnp Pfim


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

^

515

Retail Prices
Details by Regions and Cities

The decline of 0.3 percent in food costs the country over was the
net result of decreases in 31 cities and increases in 18. The cities
showing the most decline were Richmond, 2.8 percent, Scranton, 1.7
percent; and Minneapolis and Columbus, 1.4 percent each. In these
cities, price decreases for meats or for fresh vegetables were greater
than the average for all cities. In Richmond, meats declined 3.4
percent. Potato prices were 31.7 percent lower in Richmond; 22.0
percent in Scranton; 9.3 percent in Minneapolis and 3.7 percent in
Columbus as compared with 0.4 percent for all cities combined.
Increases of 1.0 percent or more were reported for only seven cities.
In Salt Lake City food costs advanced 3.7 percent, due to a rise of
prices of many items which in other cities showed decreases. Potato
prices rose 45.6 percent due to the inceased sales of new potatoes.
T a b l e 3 . — Indexes of the Average Retail Cost of A ll Foods, by Regions and Cities,

June and M ay 1939 and June 1938
[1923-25=100]

United States----------------

1939

1938

1939
Region and city

Region and city
June
13 2
76.3

M ay 16 June 14
76. 5

80.2

New England---------- . . .
Boston------------------Bridgeport...................
Fall River------- -----Manchester............. .
New H aven- ............
Portland, M aine-----Providence_________

74.8
73.1
79.8
77.0
78.5
78.2
76.3
74.3

74.5
72.7
79.2
77.9
78.6
78.0
76.1
73.5

78.4
76.1
84.3
81.9
81.9
82.8
79.3
78.4

Middle Atlantic---- -----Buffalo...... ..............
Newark----- ---------New York_____ ____
Philadelphia_______
Pittsburgh------- -----Rochester__________
Scranton___________

77.0
77.5
79.7
77.4
78.3
74.1
76.8
73.5

77.5
76.9
80.4
77.9
79.0
74.0
77.2
74.8

80.8
77.6
82.2
80.8
82.2
79.6
83.0
77.1

East North Central—........
Chicago____________
Cincinnati_________
Cleveland__________
Columbus, Ohio........
D etroit...... .................Indianapolis-----------Milwaukee_________
Peoria............ ..............
Springfield, 111........ ..

76.4
77.1
75.4
78.4
74.9
74.1
77.5
78.9
79.7
76.4

76.6
78.0
76.3
78.4
75.9
73.2
76.7
79.6
79.7
76.5

82.0
82.5
81.9
81.7
80.2
81.4
81.3
87.0
83.7
81.3

West North Central_____
Kansas C ity................
Minneapolis_______
Omaha------ -----------St. L o u is ............ .......
St. Paul—...................

79.9
78.0
84.5
75.9
80.8
80.7

80.7
79.1
85.7
76.0
81.6
81.1

83.7
82.0
87.4
78.0
85.9
83.6

June
13 2

1938

M ay 15 June 14

South Atlantic__________
A tlanta.........—...........
Baltimore__________
Charleston, S. C-----Jacksonville-----------Norfolk........................
Richmond-------------Savannah................ —
Washington, D . C—_

75.6
70.7
82.0
75.9
74.3
73.8
68.8
75.6
78.3

76.1
70.0
82.6
76.0
74.7
74.8
70.7
75.8
78.6

77.6
72.5
84.2
78.2
76.8
74.7
70.7
78.4
80.6

East South Central.............
Birmingham----------Louisville.................. M emphis...... ..............
Mobile____________

70.9
66.2
80.9
71.6
74.2

70.3
65.9
80.1
70.7
73.6

73.5
68.6
83.5
75.3
75.3

West South Central_____
Dallas_____________
Houston___________
Little R o c k ,,.............
New Orleans— ........

74.2
68.7
75.1
70.5
81.7

74.7
69.4
75.8
71.4
81.7

76.2
72.8
76.5
72.3
81.7

Mountain.- —........ .........
Butte______________
Denver---- ----------Salt Lake C ity......... -

80.9
75.4
82.3
79.8

79.9
74.9
82.4
76.9

83.5
79.2
85.7
80.6

Pacific_________________
Los Angeles— ............
Portland, Oreg-------San Francisco......... ..
Seattle-------------------

74.9
70.0
79.1
78.2
78.6

74.7
69.4
79.1
78.6
78.6

77.2
72.2
80.9
81.3
79.6

1 Aggregate costs of 42 foods in each city prior to Jan. 1,1935, and of 84 foods since that date, weighted to
represent total purchases, have been combined for regions and for the United States wit.h the use of popula­
tion weights.
2 Preliminary.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

516

Monthly Labor Review—August 1939
E L E C T R IC IT Y AND GAS
Price Changes Between March and June 1939

RESIDENTIAL rates are secured quarterly from 51 cities for elec­
tricity and from 50 cities for gas. These cities are those included in
the composite indexes for all foods. These rates are used in the com­
putation of series of prices both for electricity and for gas. The
blocks of consumption which have been selected as the bases of these
prices are representative of average conditions throughout the country.
ELECTRICITY

Prices of electricity are based upon the monthly use of 25 kilowatthours for lighting and small energy-consuming appliances; 100 kilo­
watt-hours for greater use of lighting and small appliances, and an
electric refrigerator; and 250 kilowatt-hours for a still greater use of
lighting, a larger number of small appliances, and both an electric
refrigerator and an electric range.
Reductions in residential rates between March and June were re­
ported for 6 cities. One of the companies serving Queens Borough,
New York City, issued a rate schedule in April which was retroactive
to January 1. Decreases in costs of electricity under this rate
amounted to 18.0 percent for the use of 25 kilowatt-hours, 21.6 per­
cent for 100 kilowatt-hours, and 17.1 percent for 250 kilowatt-hours.
This reduction brought the general price level to approximately the
same as that of other companies serving the 5 boroughs. In Indian­
apolis, a reduction of % cent per kilowatt-hour for the first 30 kilo­
watt-hours used per month provided decreases of 9.1 percent for the
use of 25 kilowatt-hours, 3.8 percent for 100 kilowatt-hours, and 2.1
percent for 250 kilowatt-hours. A change in the “Inducement” rate
in Atlanta resulted in decreases of 9.1 percent for 100 kilowatt-hours
and 6.8 percent for 250 kilowatt-hours, but did not affect those cus­
tomers using less than 40 kilowatt-hours. About 38 percent of the
customers were billed for electricity under the “Inducement” rate. In
Norfolk and Richmond, lower prices were reported for the 100 kilo­
watt-hours after the use of the first 50. The decreases amounted to
8.1 percent for 100 kilowatt-hours and 1.6 percent for 250 kilowatthours. In Houston, decreases covering the first 75 kilowatt-hours
per month provided reductions scaling downward from 16.1 percent
for 25 kilowatt-hours to 3.4 percent for 250 kilowatt-hours.
GAS

The prices of gas are based upon 10.6 therms for the use of a range;
19.6 therms for range and manual type water heater; 30.6 therms for

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Retail Prices

517

range and automatic storage or instantaneous type water heater, and
40.6 therms for range, automatic water heater, and gas refrigerator.
Changes in costs of gas were reported for three cities. One com­
pany serving Bronx, Manhattan, and Queens Boroughs of New Yoik
City, reported the usual summer rates which provided lower costs for
customers using more than 3,000 cubic feet of manufactured gas or
about 16 therms per month. The decreases ranged from 6.0 percent
for 19.6 therms to 20.9 percent for 40.6 therms. Two cities, Pitts­
burgh and Cincinnati, reported changes in the heating value of gas.
The heat content of natural gas served in Pittsburgh has shown slight
variations from time to time. These changes in gas of a high heating
value (over 1,100 B. t. u. per cubic foot) do not materially affect the
cost of gas over a period of time. The decrease for gas used in excess
of that covered by the minimum bill amounted to about 1.0 percent
between March and June and followed an increase of 0.6 percent
reported for the preceding 3-months period. In Cincinnati, a decrease
in the heating value of mixed manufactured and natural gas resulted
in advances ranging between 5.5 and 5.9 percent for residential custo­
mers.
R ET A IL PR IC E S OF FOOD IN M ANILA, M ARCH 1939
OF 38 food articles sold at retail in the public markets of Manila, 13
increased in price in March 1939 as compared with March 1938.
These increases ranged from 1.67 percent for shrimps to 33.33 percent
for papayas. For the same period, decreases in prices were ieported
for 21 articles, and there was no change in prices for 2 others. The
prices of 2 commodities listed in 1939 were not quoted in March 1938.
From February to March 1939, 8 of the 38 articles increased in price;
for 14 commodities the prices fell, and for 16 no price changes are
recorded. Average retail prices for each of the 38 articles of food at
specified periods are given in the following table:1
"Tcomrnonweaith of the Philippines.
pp. 228-229.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Department of Labor.

Labor Bulletin, Manila, April 1939,

518

Monthly Labor Review—August 1939
Retail Prices of h ood in Manila for March 1938 and February and March 1939
[1 peso= about 50 cents in U. S. currency]
Percent of increase
or decrease in
March 1939 com­
pared with—

Prices
Commodity

Unit
March Febru- March
1939
1938
1939

Rice:
Elon-elon______ ______
M acan ..._____________
Coffee:
Hawaiian_____________
Javanese______________
Palem bang....................
Mongo:
N ative________________
Chinese_______________
Pish and other sea products:
B a n g u s ...............................
K a n d u l i _______________
Shrimps_____ _________
Meat:
Beef_____ _____________
P ork..________________
Fowls:
Hens__________________
Roosters_______________
Chickens______________
Vegetables:
Beans, string, native___
Onions:
N ative________ ____
Imported........ ...........
Squash:
R ed..........................
W h ite..........................
Potatoes______ *_______
Sweetpotatoes__________
Tomatoes______ _____
Fruits:
Bananas:
L a k a t a n ______ ____ _
B u n g u l a n __________
L a t u n d a n ___________
S o fio ...____________
Coconuts, matured_____
Papayas_______________
Miscellaneous:
Milk, condensed......... ......
Eggs:
Hen’s:
N ative__________
C hinese...............
D uck’s:
N ative__________
Imported_______
Sugar:
Brown______ ______ _
Refined_____________
Salt, white_____________
Vinegar_______ ____ _

Ganta i _
----- do..

P esos

1938

P esos

0.34
.29

0. 34
.30

0.32
.28

-3 .3 3

+6. 25
+3.57

.do.
.do.
.d o.

.88
.83

1.25
.89
.84

1.37
.95

+• 80
-1 .1 2
—1.19

- 8 . 03
-7 .3 7

.do.
.do..

.29
.33

.29
.33

.33
.35

One______
---- do____
Kilogram 2.

.27
.27
.61

.26
.33
.69

.23
.32
.60

.d o.
.d o.

.63
.56

.63
.56

.65
.59

One.
.do.
.do.

.84
.76
.48

.84
.76
.49

.79
.77
.46

—12.12
- 5 . 71
+3.85
-1 8 .1 8
-11.59

+17.39
-15 .6 2
+1.67
—3.08
-5 .0 8

-2 .0 4

+6.33
—1.30
+4.35

Kilogram 2. .

.18

.18

.22

---- do..........
-----do.........

.26
.19

.25
.20

.28
. 19

+4.00
-5 .0 0

-7 .1 4

One______
---- do..........
Kilogram 2.
-do____

.14
.12
.12
.09
.32

.17
.14
. 12
.09
.33

.15
. 13
. 12
.12
.35

-17 .6 5
-14 .2 9

-6 .6 7
-7 .6 9

-3 .0 3

—25.00
-8 .5 7

One__
.do.

.85
.60
.48
.40
.02
.16

.85
.60
.48
.40
.03
.17

.93
.74
.55
.48
.03
.12

-33.33
-5 .8 8

- 8 . 60
-18.92
—12. 73
—16.67
-33.33
+33.33

Ord. can___

.28

.26

.26

+7.69

+7.69

-do.

3.13
2.92

3.23
2.92

3.05

- 3 . 09

+2.62

-do.
-do_

3.92
3.76

3.89
3.75

4.06
3. 79

+ . 77
+ . 27

-3 .4 5
- .7 9

Kilogram 2.
do____
Ganta 1___
Bottle____

.11
.15
.07
.11

.11
.14
.10
.10

.10
.14
.06
.09

+7.14
-30.00
+10.00

+10.00
+7.14
+16.67
+22.22

100____
100__
100__
100__
100__

100.

1 1 ganta=3.17 liquid quarts, 2.72 dry quarts.
2 1 kilogram=2.2046 pounds.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

P esos

February
1939

-18.18

Wholesale Prices

W HOLESALE PR IC ES IN JU N E 1939 1
COMMODITY prices at wholesale dropped 0.8 percent during June,
to the lowest level reached since July 1934. Weakening prices for
farm products, fuel and lighting materials, and foods contributed
largely to the decline. The June index, 75.6, was 3.4 percent below
the corresponding month of last year.
Decreases were recorded for 7 of the 10 major commodity groups:
Farm products, 2.0 percent; fuel and lighting materials, 1.2 percent;
foods, 0.9 percent; miscellaneous commodities, 0.5 percent; and textile
products, metals and metal products, and chemicals and drugs, 0.3
percent. Hides and leather products advanced 0.8 percent and house­
furnishing goods rose 0.1 percent. The building materials group
remained unchanged at the May level. The indexes for 7 groups
were below the corresponding month of 1938. The decreases range
from 0.2 percent for building materials to 9.2 percent for farm products.
Compared with a year ago, textile products rose 2.7 percent, hides
and leather products advanced 2.4 percent, and miscellaneous com­
modities 1.2 percent.
Largely because of weakening prices for agricultural commodities,
raw silk, raw jute, sisal, bituminous coal, and tankage, the raw
materials group index declined 1.7 per cent to the lowest point reached
in the past 5 years. This was 5.2 percent below a year ago. The
semimanufactured commodities group index declined 0.3 percent
during the month, to the June 1938 level. Finished-product prices
fell 0.4 percent, or 3.2 percent lower than June a year ago.
The index for the large group of “All commodities other than farm
products,” reflecting the movement in prices of nonagricultural com­
modities, declined 0.5 percent as did also the index for “All com­
modities other than farm products and foods.” The former group
was 2.4 percent below the corresponding month of last year and the
latter, 1.4 percent.
Wholesale prices of farm products declined 2.0 percent to the lowest
point reached since May 1934. Decreases of 5.2 percent for livestock
and poultry and 2.3 percent for grains largely accounted for the drop.
The livestock and poultry subgroup declined 11.0 percent since Jan* More detailed information on wholesale prices is given in the Wholesale Price pamphlet and will
be furnished upon request.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

519

520

Monthly Labor Review—August 1939

uary. Lower prices were reported for barley, corn, oats, wheat, calves,
cows, steers, hogs, sheep, poultry, eggs, apples, alfalfa hay, hops,
fresh milk (Chicago), seeds, dried beans, onions, and potatoes. Quo­
tations were higher for rye, cotton, lemons, oranges, fresh milk (New
York), and wool.
Declining prices for bituminous coal, California gasoline, and kero­
sene caused the fuel and lighting materials group index to fall 1.2
percent. Average prices for gas, anthracite, and Oklahoma and Texas
gasoline advanced.
The decline of 0.9 percent in the foods group index was largely the
result of sharp declines in prices of meats and fruits and vegetables.
Prices were lower for beef, mutton, bacon, cured and fresh pork,
veal, dressed poultry, wheat flour, corn meal, hominy grits, canned,
dried, and fresh fruits, fresh vegetables, cured fish, lard, molasses,
oleo oil, pepper, raw sugar, edible tallow, and vegetable oils. Cereal
products advanced 2.8 percent and dairy products rose 2.4 percent.
Quotations were higher for butter, cheese, powdered milk, oatmeal,
rye flour, bananas, canned vegetables, lamb, cocoa beans, coffee, copra,
and canned salmon. The foods group index, 67.6, was 7.5 percent
below the June 1938 level.
In the textile products group, sharp declines in the prices of raw
silk, silk yarns, burlap, raw jute, and sisal more than offset higher
prices for cotton goods and worsted yarns, with the result that the
textile products group index declined 0.3 percent.
The index for the metals and metal products group declined 0.3
percent because of lower prices for bars, castings, sheets, strips, elec­
trolytic copper, quicksilver, bar silver, pig tin, and copper and brass
manufactures. Higher prices were reported for scrap steel, pig lead,
and antimony.
The building materials group index remained unchanged at the May
level, 89.5 percent of the 1926 average. Lower prices for concrete
blocks, yellow pine flooring and timbers, red cedar shingles, maple, oak,
and poplar lumber, shellac, turpentine, sand, and gravel were counter­
balanced by higher prices for common building brick, yellow pine
lath, cedar siding, gum, Ponderosa pine and spruce lumber, copal gum,
China-wood oil, linseed oil, rosin, and tar. No changes were reported
in prices of cement and structural steel.
Weakening prices for fats and oils, alcohol, tankage, and mixed
fertilizers brought the chemicals and drugs group index down 0.3
percent. Average prices for manure salts and kainit were higher.
Wholesale prices of cattle feed declined 6.8 percent during the
month, paper and pulp dropped 0.6 percent, and crude rubber advanced
0.6 percent.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Wholesale Prices

521

As a result of sharp advances in prices of hides, skins, and side
leather, the hides and leather products group index rose 0.8 percent.
Prices of sole leather averaged lower.
The housefurnishing goods group index rose 0.1 percent because of a
slight advance in prices of furnishings. Average wholesale prices of
furniture were steady.
Index numbers for the groups and subgroups of commodities for
May and June 1939 and June 1938 are shown in table 1.
T

able

1 . —Index

Numbers of Wholesale Prices by Groups and Subgroups of Commodities
[1926 = 100]

Group and subgroup

June M ay
1939 1939

June
1938

75.6

76.2

78.3

62.4
5S. 2
Livestock and poultry____ 69.4
Other farm products______ 58.8

63. 7
59.6
73.2
58.7

68.7
62.7
80.2
63.0

67. 6
60.0
75.9
62.5
75.7
60.8

69.2
58.6
73.8
63.8
78.6
61. 4

73.1
68.5
80. 2
61.7
84.5
64.7

92.3 91.6
101. 3 101 3
75. 3 72.1
L eathern ._____ . . . ____ 83.8 83.1
95. 6 95. 6

90.1
101.8
62.3
81.6
97.7

All commodities_____________

Fruits and vegetables-------

Hides and leather products___

Textile products--------------------- 67.3
81. 7
64.1
Hosierv and underwear___ 60.1
39.1
______
.
.
Silk and r a y o n
Woolen and worsted goods. 75.6
Other textile products____ 64.2

67.5
81. 7
63.3
60.2
40.7
75.4
65.3

65.5
82.2
63.9
59.7
27.6
75.6
65.0

73.0 73.9
75.5 75.3
95.6 99.0
Coke. ___ _______ _______ 104. 2 104.2
(i)
0)
86.0
(0
52.5 52. 5

76.4
74.5
97.5
105.3
85.0
90.4
56.3

93. 2
Agricultural im plem ents.. . 93.4
Farm machinery_____ 94.6

93. 5
93.4
94.6

1 Data not available.

96. 1
96.1
97.6

Group and subgroup

June May June
1939 1939 1938

Metals—Continued

Qf> 7
93! 0
73.1
79.3

100 9
96.0
67.2
77.2

Building m aterials..................... 89. 5 89. 5
Brick and tile........... ............ 91.1 91.7
C em ent2________________ 91.5 91.5
90.7 91.2
Paint and paint m aterials.. 82.4 81.6
Plumbing and heating........ 79.3 79.3
Structural steel__________ 107.3 107.3
Other building materials... 89.5 89.6

89.7
90.6
89.9
88.7
80.1
77.2
113.0
93.3

75. 7
79.2
Drugs and pharmaceuticals 71.9
69. 5
Mixed fertilizers_________ 71.7

75.9
79.4
71.9
69.7
71.8

76.3
80.6
71.9
69.5
69.3

Housefurnishing goods_______ 85.6
Furnishings________ . . .
90.0
Furniture..................... ........ 81.0

85. 5
89.8
81.0

87.1
90.7
83.5

Miscellaneous_______________ 73.8
Automobile tires and tubes. 60.5
Cattle feed______________ 81.5
79.9
Rubber, crude___________ 34.4
Other miscellaneous. ........ 81.3

74.2
60.5
87.4
80.4
34. 2
81.4

72.9
57.4
78.4
85.5
26.3
81.1

67.7
Raw materials______________
Semimanufactured articles____ 74.1
Finished products___ _____ . 79.6
All commodities other than
78.4
All commodities other than
farm products and foods......... 80.2

68.9
74.3
79.9

71.4
74.1
82.2

Motor vehicles 2_________ 93.0
Nonferrous metals________ 72.9
Plumbing and heating------ 79.3

78.8

80.3

80.6

81.3

s Preliminary revision.

Index Numbers by Commodity Groups , 1926 to June 1939

Index numbers of wholesale prices by commodity groups for selected
years from 1926 to 1938, inclusive, and by months from June 1938 to
June 1939, inclusive, are shown in table 2.
163839— 39---------- 17


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

522

Monthly Labor Review—August 1939
T a b l e 2 . —Index

Numbers of Wholesale Prices, by Groups of Commodities
[1926 = 100]

Year and month

Hides Tex­
Farm
and
tile
prod­ Foods leather prod­
ucts
prod­ ucts
ucts

B y years:
1926....................... 100.0
1929......................... 104.9
1932......................... 48.2
51.4
1933................... .
1936____________
80.9
1937____________
86.4
1938____________
68.5
B y months:
1938:
June________ 68.7
J u ly ............. . 69.4
August______ 67.3
September__
68.1
October_____ 66.8
November__
67.8
December___ 67.6
1939:
January_____ 67.2
F ebruary___ 67.2
March______
65.8
April...............
63.7
M ay................ 63.7
June. ______ 62.4

Fuel Metals
Chem­ HouseMisand Build­
furand metal
ing
icals nishcellight­ prod­ mate­ and
laneing
ing
rials
drugs
ous
ucts
goods

All
com­
modi­
ties

100.0
99.9
61.0
60.5
82.1
85.5
73.6

100.0
109.1
72.9
80.9
95.4
104.6
92.8

100.0
90.4
54.9
64.8
71.5
76.3
66.7

100.0
83.0
70.3
66.3
76.2
77.6
76.5

100.0
100.5
80.2
79.8
87.0
95.7
95.7

100.0
95.4
71.4
77.0
86.7
95.2
90.3

100.0
94.2
73.5
72.6
80.4
83.9
77.6

100.0
94.3
75.1
75.8
81.7
89.7
86.8

100.0
82.6
64.4
62.5
70.5
77.8
73.3

100.0
95.3
64.8
65.9
80.8
86.3
78.6

73.1
74.3
73.0
74.5
73.5
74.1
73.1

90.1
91.5
91.9
92.0
93.4
94.6
93.1

65.5
66.1
65.9
65.8
66.2
66.2
65.8

76.4
76.8
76.8
76.6
75.4
73.7
73.2

96.1
95.2
95.4
95.5
95.3
94.9
94.6

89.7
89.2
89.4
89.5
89.8
89.2
89.4

76.3
77.7
77.7
77.3
77.1
76.6
76.7

87.1
86.4
86.4
86.2
85.7
85.8
86.0

72.9
72.7
72.4
72.4
72.6
73.0
73.1

78.3
78.8
78.1
78.3
77.6
77.5
77.0

71.5
71.5
70.2
68.6
68.2
67.6

93.1
91.9
91.8
90.9
91.6
92.3

65.9
66.1
66.6
66.9
67.5
67.3

72.8
73.0
73.1
73.4
73.9
73.0

94.4
94.3
94.3
94.0
93.5
93.2

89.5
89.6
89.8
89.6
89.5
89.5

76.7
76.3
76.5
76.0
75.9
75.7

85.4
85.2
85.2
85.4
85.5
85.6

73.2
73.5
74.1
74.4
74.2
73.8

76.9
76.9
76.7
76.2
76.2
75.6

The price trend for specified years and months since 1926 is shown
in table 3 for the following groups of commodities: Raw materials,
semimanufactured articles, finished products, commodities other than
farm products, and commodities other than farm products and foods.
The list of commodities included under the classifications “Raw ma­
terials, ” “Semimanufactured articles/’ and “Finished products” was
given in the December 1938 Wholesale Price pamphlet.
T a b l e 3 . —Index

Numbers of Wholesale Prices, by Special Groups of Commodities
[1926 = 100]

All
com­
Semimod­
manFin­
Raw nfac- ish e d ities
Year and month m ate­ tured
other
rials arti­ prod­
ucts than
farm
cles
prod­
ucts

B y years:
1926................. - 100.0 100.0 100.0 100.0
1929__________ 97.5 93.9 94.5 93.3
1932 ...... .......... 55.1 59.3 70.3 68.3
1933 ________ 56.5 65.4 70.5 69.0
1936................. 79.9 75.9 82.0 80.7
1937 ............... 84.8 85.3 87.2 86.2
1938 ________ 72.0 75.4 82.2 80.6
B y months:
1938:
June_______
71.4 74.1 82.2 80.3
July------------ 72.3 74.3 82.5 80.8
August........ . 71.4 74.4 81.8 80.3


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

All
com­
mod­
ities
other
than
farm
prod­
ucts
and
foods

100.0
91.6
70.2
71.2
79.6
85.3
81.7
81.3
81.4
81.4

SemiRaw manm
ate­
ufacYear and month rials tured
arti­
cles

B y months—Con.
1938—Con.
September__
October_____
November__
December___
1939:
January------February-----March______
April______ _
M a y ............. .
June________

All
com­
Fin­ mod­
ities
ish ed oth
er
prod­ than
ucts farm
prod­
ucts

All
com­
mod­
ities
other
than
farm
prod­
ucts
and
foods

72.0
70.9
71.5
70.9

74.7
75.9
76.2
75.2

81.8
81.1
80.5
80.2

80.4
79.9
79.5
79.0

81.3
81.1
80.6
80.3

70.9
70.9
70.1
68.5
68.9
67.7

74.9
74.4
74.6
74.4
74.3
74.1

80.0
80.2
80.2
80.1
79.9
79.6

78.9
78.9
79.0
78.8
78.8
78.4

80.2
80.2
80.4
80.5
80.6
80.2

523

Wholesale Prices
Weekly Fluctuations

Weekly variations in the major commodity group classifications
during May and June are shown by the index numbers in table 4.
T a b l e 4 . — Weekly

Index Numbers of Wholesale Prices, by Commodity Groups, May and
June 1939
(1926 = 100)

Commodity "group

June June June June M ay M ay M ay May
13,
,
27,
,
6,
24,
3,
17,
1939 1939 1939 1939 1939 1939 1939 1939

20

10

All commodities. ---------------------------- ---------- -------- 75.5

75.4

75.6

75.7

75.8

75.9

76.4

76.1

62.7
67.4
93.0
66.7
74.1

62.0
67.1
93.0

63.1
67.5
92.6
66.9
74.1

63.5
67.6
92.6
67.1
74.1

64.1
67.4
92.2
67.0
74.4

64.4
68.5
92.1
67.0
74.8

63.6
68.3
91.8

74.1

62.7
67.3
92.8
66.9
73.9

93.5
89.3
75.0
86.9
73.7

93.4
89.5
75.5
86.9
73.6

93.5
89.8
75.6
86.9
73.6

93.5
89.2
75.8
86.9
73.8

93.5
89.4
75.7
86.9
73.7

93.5
89.3
75.7
86.9
73.7

93.7
89.6
75.7

94.0
89.6
75.7

74.3

74.3

67.8
74.2
79.8
All commodities other than farm products-------------- 78.4
All commodities other than farm products and foods. 80.6

67.4
74.3
79.8
78.4
80.6

67.9
74.2
79.8
78.4
80.6

68.2

68.5
74.1
79.9
78.5
80.7

69.0
74.0
79.9
78.5
80.7

69.4
74.3
80.4
79.0
81.0

74.4
80.4
78.9
80.9


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

66.8

74.1
79.9
78.5
80.6

66.8
74.6

86.8 86.8
68.6

Recent Publications of Labor Interest

JULY 1939
Agriculture
The cost of hired farm labor, 1909-88 [preliminary report], Washington, U. S.
Department of Agriculture, 1939. 45 pp., charts; processed. (Income par­
ity for agriculture, Part II, Section 1.)
Estimates of income parity for agriculture based on comparative income in the
5-year period from August 1909 to July 1914 are made by the Department of
Agriculture under Congressional authorization. This publication is part of the
larger study still in progress. Farm wages are viewed as cost to the employer.
The wage bill as estimated includes cash wages, as well as board and lodging and
other perquisites. A particularly noticeable feature of the estimates is the com­
paratively slight recovery of farm wages, which in 1938 totaled only 59 percent of
the 1929 figure. The 1938 increase over 1932 was only 30 percent.
Hired labor requirements on Arizona irrigated farms. By E. D. Tetreau. Tucson,
University of Arizona, Agricultural Experiment Station, 1938. 36 pp., charts’
illus. (Bulletin No. 160.)
Recent changes in status of laborers and tenants on Arkansas plantations. By Glen T.
Barton and J. G. McNeely. (In Journal of Land and Public Utility Eco­
nomics, Chicago, May 1939, pp. 235-237).
Preliminary summary of the results of one of three surveys made in Arkansas
by the Agricultural Adjustment Administration and the Arkansas Agricultural
Experiment Station. An effort was made to ascertain the effects of the Federal
cotton-adjustment programs and of increased mechanization in cotton farming
on the employment and status of farm workers and tenants. A considerable dis­
placement of resident families occurred from 1932 to 1938, and many of the
families who were retained on the plantations became wage earners instead of
tenants, with a marked reduction of income.
Seasonal labor requirements for California crops. By R. L. Adams. Berkeley
University of California, Agricultural Experiment Station, 1938. 28 dd ’
charts. (Bulletin 623.)
Rural people and the church. By Thomas Alfred Tripp. (In Social Action, Council
for Social Action of Congregational and Christian Churches, New York
May 15, 1939, pp. 4-39; charts.)
The writer states that “at best, American agriculture provides the good life,”
but that “over one-third of the American farmers are in the definitely disadvan­
taged class.” It is with the economic and social conditions of these low-income
landowners, tenants, farm hands, and migratory farm workers that the booklet
is concerned.
Seven lean years. By T. J. Woofter, Jr., and Ellen Winston. Chapel Hill
University of North Carolina Press, 1939. 187 pp., illus.
A nontechnical summary of monographs containing the results of several years
of intensive study. The purpose of the authors is to emphasize the most funda­
mental aspects of maladjustment in rural areas and to outline methods for the
reconstruction of rural life. Their method gives primary consideration to the
human elements of the problem. The authors praise the relief measures of recent
years,_but state that “the fundamental causes of rural poverty will yield only to
long-time measures. The temporary return of prosperity in both agriculture and
industry would have but slight effect on the hard core of rural distress and disad­
vantage.
524

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Recent Publications of Labor Interest

525

La agricoltura social en Chile. By Moisés Poblete Troncoso. (In Le Travail
Agricole, Rome, April 1939, pp. 44-61.)
This article shows the provisions of the Chilean Labor Code of 1931 which apply
to agricultural workers, with respect to child labor, social welfare, labor conflicts,
paid vacations, workers’ dwellings, and accidents to workers; and discusses com­
pulsory sickness insurance. Printed in Spanish, with brief summaries in English,
French, German, and Italian.
Twenty-seventh report of Department of Agriculture for Scotland, for year ended
December 31, 1938. Edinburgh, 1939. 179 pp. (Cmd. 5968.)
Contains information on housing, wages and other working conditions, and land
settlement, including plots for unemployed persons.

Cooperative Movement
Cooperatives in the U. S.— a balance sheet. By Maxwell Stewart. New York,
Public Affairs Committee, Inc., 1939. 33 pp., charts. (Public Affairs
Pamphlet No. 32.)
The diversity of cooperative institutions and their classification. By G. Fauquet.
(In International Labor Review, Geneva, April 1939, pp. 435-458; also
reprinted.)
Operating results of consumer cooperatives in the United States in 1937. By Carl N.
Schmalz. Cambridge, Mass., Harvard University, Graduate School of
Business Administration, 1939. 37 pp. (Bureau of Business Research
Bulletin No. 108.)
Results of an analysis of 42 cooperative associations operating retail food
stores, 47 operating general stores, and 87 doing a farm-supply business (36 of
which also operated gasoline filling stations).
Credit unions in Massachusetts. By Joseph L. Snider. Cambridge, Mass.,
Harvard University Press, 1939. 142 pp.
A study of credit-union development in Massachusetts, and comparison of the
accomplishments of these organizations with the services rendered by personal
finance companies and commercial banks. A feature of the study is the com­
pilation of figures of operation, over their entire period of existence, of 55 of the
older credit unions.
Sixth annual report of U. S. Farm Credit Administration, 1938. Washington, 1939.
238 pp., charts.
Contains information on the work of the Administration with farmers purchas­
ing cooperatives, in the history of cooperatives, and in the supervision of credit
unions formed under the Federal Credit Union Act.

Cost and Standards of Living
An international survey of recent family living studies: I, Income and expenditure;
II, Food expenditure and consumption habits. (In International Labor Review,
Geneva, May 1939, pp. 662-705; June 1939, pp. 814-846.)
The first part of this study analyzes and discusses the results of family-living
inquiries in a large number of countries, while the second part, based on the same
material, is devoted to the food group alone.
Money disbursements of wage earners and clerical workers in 'North Atlantic region,
1934-36: Volume I— New York City. By Faith M. Williams and Alice C.
Hanson. Washington, U. S. Bureau of Labor Statistics, 1939. 236 pp.
(Bulletin No. 637.)
Budget standards for family agencies in New York City, 1938. Prepared by New
York Budget Council, Social Welfare and Public Health Department, and
New York City Home Economics Association. New York, New York Bud­
get Council, 1938. 42 pp.
The standards set up in the pamphlet are not presented as absolute rules for
application in a routine way, but are intended only as a guide to be adapted to
the special differences and needs in each family group.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

526

Monthly Labor Review—August 1939
Economic and Social Problems

Problems in Canadian unity. Lectures given at Canadian Institute on Economics
and Politics, August 6-19, 1938. Edited by Violet Anderson. Toronto
Thomas Nelson & Sons, Ltd., 1938. 153 pp., bibliography.
The lectures are grouped under three main heads— dominion-provincial rela­
tions; labor and unionization, covering collective bargaining and legal status of
trade-unions in Canada; rehabilitation of agriculture, including producersTand
consumers’ cooperation.
De la France d’avant guerre à la France d’aujourd’hui: Vingt-cinq ans d’évolution
de la structure économique et sociale française. (In Revue d’Économie Poli­
tique, Paris, January-February 1939, pp. 1-593.)
Symposium on evolution of the economic and social structure of France during
the past 25 years. Subjects covered include the territorial, human, population,
agricultural, industrial, and commercial structure; mechanism and levels of prices;
monetary and banking structure; savings; national income and wealth, etc. A
comparison is made with the economic organizations of Germany, Italy. Great
Britain, and the United States.
The industrial worker in India. By B. Shiva Rao, London, George Allen and
Unwin, Ltd., 1939. 263 pp., illus.
The subjects covered include recruitment of workers, wages, working conditions,
growth of trade-union movement, difficulty of labor organization, industrial
disputes, labor legislation, and unprotected labor.
The new Sweden—a vindication of Democracy. By Bjarne Braatoy. London
Thomas Nelson and Sons, Ltd., 1939. 172 pp.
The Swedish "New Deal,” according to the writer, was designed primarily to
establish a balance between the agricultural economy and the industrial economy
of Sweden; to solve the unemployment problem, not by relief measures but by
work; and to create a better balance in the standard of living of the different
sections of the population.
The Turkey of Atatürk: Social process in the Turkish reformation. By Donald
Everett Webster. Philadelphia, American Academy of Political and Social
Science, 1939. 337 pp.
The author describes the complexity of processes of change in modern Turkey
under the regime of Kamâl Atatürk. The earlier history of the country is
reviewed and the various social reforms and other changes are discussed and
evaluated.
Scientific social surveys and research: An introduction to background, content,
methods, and analysis of social studies. By Pauline V. Young; with chapters
on statistics, graphic presentation, and ecology, by Calvin F. Schmid. New
York, Prentice-Hall, Inc., 1939. xxix, 619 pp.
Scientific social surveys, now so familiar to students and administrators, go
back in the United States only a little more than 25 years, the Pittsburgh Survey
of 1909 being the first outstanding American instance. This volume is a com­
prehensive text giving extensive historical information as well as discussions of
the techniques of conducting surveys and of presenting the results analytically,
statistically, and in graphic form. There is a critical discussion of “sociometric
scales” for attempting quantitative measurement of institutions, attitudes, etc.
Contributions of related fields, such as history and ecology, are described. There
is an extensive bibliography.
Searchlight on social credit. By W. R. Hiskett and J. A. Franklin. London, P. S.
King & Son, Ltd., 1939. 173 pp.
Critical examination of the theory of social credit as developed by Major
Douglas and of the attempts to put the theory into practice in Alberta.

Family Allowances
Family allowances in 1987 and 1988. By Mary T. Waggaman. Washington,
U. S. Bureau of Labor Statistics, 1939. 20 pp. (Serial No. R. 931, reprint
from May 1939 Monthly Labor Review.)


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Recent Publications of Labor Interest

527

X V I I I e Congres National des Allocations Familiales, Nancy, 25 Mai 1988
compte rendu. Paris, Comité Central des Allocations Familiales, 1938.
Among *the subjects discussed in this report of the proceedings of the 18th
annual National Congress of Family Allowances are: The compulsory family
allowance act— conditions of application in 1937 ; nature and scope of the ineasures taken to maintain the mother at home; family allowances m agriculture;
problem of family allowances in the arbitration of wage disputes; and progress of
family allowances.
The case for and against fam ily allowances. London, National Industrial Alliance,
[1939?]. 25 pp., bibliography.

Housing
Housing— what’s it worth? By David Duckor and Jack Haikin. New Tork,
New York City Housing Authority, 1939. 12 pp., chart
A study by the Division of Foreign Housing Studies of the New York U ty
Works Progress Administration of the volume of residential construction in several
countries, during the 10-year period 1928-38. Includes estimates as to the effect
of a comparable building program in the United States on manufacturers, con­
tractors, real-estate owners, and workers.
Study of rural housing. By Deane G. Carter. Fayetteville, University of
Arkansas, Agricultural Experiment Station, 1938. 31 pp., diagrams, lllus.
(Bulletin No. 364.)
. ,
Covers size, design, cost, and value. The study was based on analysis of over
200 farmhouses in Arkansas.
Memorandum on housing conditions among migratory workers in California. Los
Angeles, California Department of Industrial Relations, Division of Immigra­
tion and housing, 1939. 15 pp.; mimeographed.
Slum clearance in the United States— a selected reading list. Compiled by Gilbert
A. Cam. New York, New York Public Library, 1938. 12 pp.
Waiting: A survey of social life on a new housing estate. By Ruth Durant. Lon­
don, P. S. King & Son Ltd., 1939. 128 pp.
Account of the successes and failures in establishing families on one of England s
housing estates.

Industrial Accidents and Accident Prevention
Industrial injuries in Pennsylvania, 1988. Harrisburg, Pennsylvania Department
of Labor and Industry, Bureau of Research and Information, [1939]. 10 pp.;
mimeographed.
Kansas accidental deaths, 1988. Topeka, State Board of Health, 1939. 16 pp.,
chart.
,,, , ,
Of the 1,439 accidental deaths of which the Kansas State Board of Health had a
record for 1938, work accidents accounted for 165 and accidents in the home for

593.
Forty-seventh annual report of Ontario Department of Mines [for the year 1937],
Toronto, 1939. 308 pp.
.
,
.
....
One section of the report is devoted to mining accidents, the number of fatalities
being shown for each year from 1913 to 1937 inclusive.
How factory accidents happen: Descriptions of certain accidents notified to H. M.
inspectors of factories, Great Britain. London, Home Office, 1939. 25 pp., illus.
Handbook of industrial safety standards, revised 1988 edition. New York, National
Conservation Bureau, i938. 190 pp., diagrams, illus.
Proceedings of National Industrial Safety Conference, Oxford, England, April 8-10,
1988. London, National Safety First Association, [1938?]. 79 pp., illus.
Regulations and orders relating to safety and health [in coal mines], 1989 edition.
London, Mines Department, 1939. 199 pp.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

528

Monthly Labor Review—August 1939

First report of committee appointed to consider prevention of accidents in paver
mills: I, Machinery accidents. London, Home Office, 1938. 27 pp., illus.
Report of investigation of hazardous nature of occupations in manufacture of ex­
plosives including articles containing explosive components for purpose of
determining whether employment in such occupations is particularly hazardous
for minors between 16 and 18 years of age. Washington, U. S. Children’s
Bureau, 1939. 21 pp., mimeographed.

Industrial Hygiene and Occupational Diseases
Preliminary industrial hygiene survey of cotton gins in Texas. Austin, Texas State
Department of Health, Division of Industrial Hygiene, 1939. 21 pp illus •
mimeographed.
’
Industrial hygiene survey of granite monument, memorial, and building stone in­
dustry in Texas. Austin, Texas State Department of Health, Division of
a Industrial Hygiene,
1939. 30 pp., chart, illus.; mimeographed.
A study of the silicosis hazard covering 1,254 plants and 88,000 persons.
Methods for detection of toxic gases in industry: Leaflet No. 1, Hydrogen sulphide;
Leaflet No. 2, Hydrogen cyanide vapor; Leaflet No. 8, Sulphur dioxide; Leaflet
ù°-' 4; JJenzene vapor; Leaflet No. 6, Nitrous fumes. London, Department of
Scientific and Industrial Research, 1937 and 1939. 5 pamphlets, various
paging.
So ne data on dust in industrial work. By D. Harrington. Washington, U. S.
7072 ) U ° f Mines’ 1939, 12 PP-; mimeographed. (Information Circular
Safeguarding workers against occupational diseases. By Boris Stern. (In Labor
r ormat,'iT Bulletin, U. S. Bureau of Labor Statistics, Washington, June
lyoy, pp. 11—13.)
Some case reports of occupational diseases. By E. R. Hayhurst. Leipzig, Georg
llnem e, [1939?]. 14 pp. (Reprinted from proceedings of International
Medical Congress on Industrial Accidents and Diseases, Frankfurt a M .
September 26-30, 1938.)
’
Reports of occupational poisoning from arseniuretted hydrogen, carbon mon­
oxide, chlorinated carbons, and other poisons.
Les maladies professionnelles—conseils 'pratiques, legislation. By G Hausser
M- D - r, Paris, Institut d ’Etude et de Prévention des Maladies Profession­
nelles, [1938?]. 71pp.
A t
The pamphlet contains the text of the various laws on occupational diseases in
4 ranee, from the law of October 25, 1919, which extended the law on industrial
accidents to cover occupational diseases, to the decree-law of October 28, 1935.
idle list of diseases compensated is included.

Industrial Relations
Addresses on employer-employee relations delivered at
States Industrial Council on January 26, 1939.
Industrial Council, 1939. 116 pp.
Addresses reproduced include: The Wagner Labor
ers latitude under present laws; Modernizing the
program.

Atlanta meeting of Southern
Nashville, Southern States
Relations Act; The employ­
South’s industrial relations

Industrial relations: Papers presented at conference on industrial relations spon­
sored by Queen’s University, September 14-17, 1938. Kingston, Ontario,
^Queen’s University, Industrial Relations Section, 1938. 119 pp.
The subjects discussed covered employer-employee relations, industrial retire­
ment plans, minimum and fair wage legislation, wage determination, employee­
training plans, and work-sharing during a depression.
Industrial and labor relations in Great Britain—a symposium. Edited by Frank
E. Gannett and B. F. Catherwood. New York, America’s Future, Inc.,
1939. 364 pp.
Individual articles by a number of authors deal with different phases of indus­
trial relations and various kinds of adjustment machinery that have been estab
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Recent Publications of Labor Interest

529

lished in Great Britain. The British and American systems are compared.
Certain important documents, such as the Whitley Report, and a list of the members
of the General Council of the Trades Union Congress, are appended.
Joint industrial councils in Great Britain. Washington, U. S. Bureau of Labor
Statistics, 1939. 9 pp. (Serial No. R. 932, reprint from May 1939 Monthly
Labor Review.)
Hiring of seamen: Hearings, May 10, 19, 22, 1989, before Committee on Merchant
Marine and Fisheries, House of Representatives, Seventy-sixth Congress, first
session, on H. R. 4051, a bill to amend section 801 of Merchant Marine Act of
1936. Washington, 1939. 264 pp.
Labor disputes on rights and on interests. By John V. Spielmans. (In American
Economic Review, Evanston, 111., June 1939, pp. 299—312; also reprinted.)

Labor and Social Legislation
Child labor legislation in southern textile States. By Elizabeth H. Davidson.
Chapel Hill, University of North Carolina Press, 1939. 302 pp.
Digest of Federal and State legislation affecting crippled children and the physically
handicapped. Elyria, Ohio, International Society for Crippled Children,
Inc., Committee on Legislation, 1938. 75 pp.
The legislative background of the Fair Labor Standards Act: A study of the growth of
national sentiment in favor of governmental regulation of wages, hours, and child
labor. By Orme Wheelock Phelps. Chicago, University of Chicago Press,
1939. 71 pp., bibliography.
Public health law. By James A. Tobey. New York, Commonwealth Fund, 1939.
414 pp., bibliography. 2ded.
_
_
.
The volume is divided into four parts dealing with public-health law and admin­
istration, powers and duties of health departments, liability, and legislation and
law enforcement.
State public welfare legislation. By Robert C. Lowe. Washington, U. S. Works
Progress Administration, Division of Research, 1939. 398 pp. (Research
Monograph XX.)
Justiga e assistencia ao trabalhador nacional [Brazil]. Rio de Janeiro, Ministerio
do Trabalho, Indùstria, e Comércio, Departamento de Estatistica e 1 ublicidade, 1939. 30 pp.
.
„ . ,
Legislation enacted in Brazil as of May 2, 1939, providing for labor couits,
establishment of hygienic eating places for workers, and vocational training lor tne
workers and their children, with documents bearing on this legislation.
Code du Travail annoté. By Charles Picquenard. Paris, Librairie du Recueil
Sirey, 1939. 587, xxxi pp.
Annotated text of the French Labor Code with the noncodified texts forming
part of the code. The annotations cover the principal judicial decisions inter­
preting the laws. There is a chronological table of the laws and decrees.
Codice del lavoro, fourth edition, Volume II. Rome, Uffizio Spéciale d Informazioni
Legali ed Amministrative, 1938. 621 pp.
.
Annotated compilation of Italian legislation through June 21, 1938, on social
welfare, including workmen’s compensation for industrial accidents and^ occupa­
tional diseases; compulsory insurance for invalidity, old age, tuberculosis, invol­
untary unemployment, and maternity; family allowances; and mutual sicknessbenefit funds in industry, agriculture, and commerce. Volume I (March 193/)
contains general labor legislation enacted through March 20, 1936.

Labor Organization and Activities
The Amalgamated Clothing Workers of America. By Gladys_ Dickason. (In
Labor Information Bulletin, U. S. Bureau of Labor Statistics, Washington,
June 1939, pp. 1-5.)
Report of proceedings of All-Canadian Congress of Labor, eighth convention, London,
Ontario, April 11-13, 193. Ottawa, All-Canadian Congress of Labor, 119380.
51 pp.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

530

Monthly Labor Review—August 1939

Status of agricultural trade unions in Holland. By Sidney C. Sufrin fin Journal
of Farm Economics, Menasha, Wis., May 1939, pp. 470-478.)
List of American trade-union journals and labor papers currently received by De­
partment of Labor Library. Washington, U. S. Department of Labor,
Library, June 1, 1939. 29 pp.; mimeographed.
The list shows for each publication the issuing office, place of publication, and
frequency.

M ining Industry
Report of Commissioner of Mines, Alaska, for biennium ended December SI, 1938
Juneau, 1939. 64 pp.
Includes a tabulation of employment at mines in each year from 1914 to 1938
inclusive; a brief discussion of labor conditions; statistics of accidents in 1937
and 1938 with certain data back to 1912; and directories of mining companies.
Twenty-sixth annual report of State Inspector of Coal Mines, Colorado 1938
Denver, 1939. 51 pp.
The data cover production, men employed, fatal and nonfatal accidents, and
safety regulations. A directory of the mines of the State is included.
Annual report of Bureau of Mines and Mining of Indiana, for fiscal year ended
June 30, 1938. Indianapolis, [1939?]. 18 pp.
Contains data on employment, total wages paid, and production, 1937-38
and accidents in each year from 1898 to 1938, inclusive, in the coal mines of the
State, with a directory of the mines.
Annual report of Coal Mine and Metal Mine Inspection and Mine Rescue Depart­
ment, Kansas, 1938. Topeka, 1939. 71 pp.
The mines of the State are listed and data are presented on production, number
of employees, and accidents.
Annual report of West Virginia Department of Mines, 1938. Charleston, ri9391
145 pp.
Statistical report on production, distribution, employment, accidents, etc., in
coal mines, and a directory of the mines, together with some data on coke pro­
duction.
Rapport présenté a Vassemblée générale ordinaire du 34 Mars 1939. Paris Comité
Central des Houillères de France, 1939. 21 pp.
This annual report of the central committee of coal operators in France discusses
the situation of the coal industry during the year and gives statistics of production,
exports, and imports of France, Belgium, Germany, and England from 1913 to
1938, and average output per worker and average daily wages of workers in
France from 1905 to 1938.
Coalmining in Europe. By George S. Rice and Irving Hartmann. Washington,
U. S. Bureau of Mines, 1939. 369 pp., maps, diagrams, illus. (Bulletin 414.)
A study of mining practices in different coal formations and under various
economic and regulatory conditions. Comparisons are made between the United
States and selected foreign countries.

Nutrition
Survey of national nutrition policies, 1937-38. Geneva, League of Nations, 1938.
120 pp.
The League of Nations’ Secretariat presents in this report its first annual
summary of the action taken in various countries to improve nutritional standards,
and gives results of recent food-consumption surveys in a number of these coun­
tries.
The newer knowledge of nutrition. By E. V. McCollum, Elsa Orent-Keiles
Harry G. Day. New York, Macmillan Co., 1939. 701 pp. 5th ed.
The first two chapters of this work are largely historical, the remainder of the
volume being concerned with the place and importance of the different elements
in the diet, the dietary properties of foodstuffs, malnutrition due to specific or
multiple deficiency states, the occurrence of various types of malnutrition in man
and animals in different parts of the world; and the means of dealing effectively
with these nutritional problems.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Recent Publications of Labor Interest

531

An inquiry into malnutrition. Report by A. M. N. Pringle, based on investiga­
tion in 1938 by Ipswich Committee against Malnutrition. Ipswich, Eng­
land, [Ipswich Committee Against Malnutrition], [1938?]. 23 pp.
The study covers the expenditures of 100 families for the different items of the
budget. It shows amount spent for food by the different income groups covered
and extent of inadequacy of the diets of different families.
The fact of malnutrition. London, Industrial Christian Fellowship, 1938. 35 pp.
A'review of the extent of malnutrition in England. The results of several
budgetary studies are cited to show the inadequacy of family diets as a result of
low wages or relief payments.

Old-Age Assistance
Old-age pensions in Colorado. By Don C. Sowers. Boulder, University of Colo­
rado, 1938. 25 pp. (Bulletin, General Series, No. 422.)
Critical examination of effect of operation of present old-age pension law ot
Colorado on the pensioners, on other “welfare” groups, and on the State finances.
The author reached the conclusion that there is no real security for the old in tfie
present law and that the set-up is in danger of collapsing of its own weight.
Old-age assistance in Michigan, 1937-1988. Lansing, State Welfare Department,
Bureau of Old Age Assistance, 1938. 59 pp.» naaps, charts.
#
Contains statistics of operation of old-age assistance as well as information
concerning the persons in receipt of assistance (age, sex, marital status, physical
condition, race, etc.).
Administration of old-age assistance in New Jersey: Annual report, fiscal year ended
June SO, 1938, of Division of Old Age Assistance, New Jersey Department of
Institutions and Agencies. Trenton, [1939?]. 30 pp., charts, illus. (Pub­
lication No. 37.)
Social and economic circumstances of accepted applicants for old-age assistance in
South Dakota, 1936-1937. By John P. Johansen. Brookings, South Dakota
College of Agriculture and Mechanic Arts, Agricultural Experiment fetation,
1938. 55 pp., charts. (Bulletin No. 323.)
Problems involved in financing of a retirement or pension fund Paper delivered at
Institute of Government of University of Southern California, June 15, lyoo,
by Leon V. McCardle. [Los Angeles, 1938?] 14 pp..
Les pensions de vieillesse: Exposé-et commentaire pratique de la loi du 15 Décembre
1937 et des arrêtés d’exécution. By Emile Cornez. Bruxelles, Editions
“Labor”, [1938?]. Volume 1, 182 pp.; volume 2, 258 PPAnalysis of provisions of Belgian law of December 15, 1937, establishing a
system of compulsory old-age insurance, and of the regulations putting it in o
effect.
Report of Committee on Pensions for Unmarried Women. London, 1939. 78 pp.
Findings of9a committee appointed to examine and report on complaints of
discrimination against unmarried women under the present provisions ot the
Contributory Pensions Acts of Great Britain.

Prices
Price dispersion and industrial activity, 1928-1988. By Walter G. Keim. Wash­
ington, U. S. Works Progress Administration, 1939. 24 pp., charts.
Study of price disparities and their effects resulting from the contrasting trends
of groups of commodities with relatively flexible prices and of other groups with
relatively rigid prices. These trends are indicated approximately by a price dis­
persion index, which has varied more or less inversely with the index of volume
of production since 1928. A more comprehensive study is announced as under
way.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

532

Monthly Labor Review—August 1939

Recent contributions on prices and price policies. (In Journal of Marketing
American Marketing Association, Menasha, Wis., April 1939, pp. 325-366.)
apers read by nine economists at the meetings of the American Marketing
Association in Detroit in December 1938. The papers are to a considerable extent
theoretical, with opposing points of view represented.
lu c e s and price indexes, 1918-1917 (commodities, securities, foreign exchanqe,
semces). Ottawa, Dominion Bureau of Statistics, Internal Trade Branch,
1939. 150 pp., charts.
In addition to Canadian statistics, the volume gives data on world price trends
and economic conditions.
Prices and wages in England from twelfth to nineteenth century: Vol. I, Price tables—
mercantile era. By Sir William Beveridge and others. London, Longmans,
Green & Co., 1939. lx, 756 pp.
’
This history of prices and wages in England is a part of an international survey,
in every case the same methods are being used so that the findings will be as
nearly comparable¡as^ possible. The present volume for England covers prices
fi om about 1550 to 1830 and will be followed by three additional volumes of
which one covers prices in an earlier period; another wages, wheat prices, and
supplementary material; and the last, a review and appendices. Each volume
is sell-contained and is designed so as to be self-explanatory.
Stalistica prefurilor, 1937. Bucharest, Rumania, Institutul Central de Statistics,
1939. 163 pp.
’
Retail prices of food products, clothing, fuel, and other commodities, and
re,ntls’ In Rumania in 1937 and earlier years. There are French translations of
uie table ot contents, table heads, and names of the commodities covered.

Sickness Insurance
American medicine mobilizes. By James Rorty. New York, W. W Norton &
Co., Inc., 1939. 358 pp.
A discussion of the proposed national health program and the attitude of the
medical profession toward a health-insurance system.
Cali)ornia health insurance plans. (In The Commonwealth, Commonwealth Club
of California, San Francisco, March 28, 1939, pp. 353-393.)
1 ioceedings of a meeting of the Commonwealth Club of California held to
consider the subject of health insurance. The papers dealt with the healthinsurance problem of the State, standards for voluntary health-insurance legis­
lation, the State Farm Bureau plan for public health, the California Medical
Association plan of payment for medical service, the State compulsory healthinsurance bill, and various aspects of private and public health insurance.
National health insurance fund accounts [Great Britain], for year ended December
3 i, 1987. London, Exchequer and Audit Department, 1939. 30 pp
financial report of British national health-insurance scheme for 1937, covering
the English, Welsh, and Scottish funds.

Unemployment Insurance
Administering unemployment compensation. By R. Clyde White. Chicago
University of Chicago Press, 1939. 312 pp. (Social Service Monograph )
-Description and analysis of unemployment compensation administration in
(jîeat Britain, Germany, and the United States. The study covers the provisions
ot the laws in the three countries, administrative organizations set up to carry
trie laws into effect, and administrative procedure followed.
The emergence of unemployment compensation. By Harry Malisoff. (In Political
Science Quarterly, New York, June 1939, pp. 237-258.)
1he writer reviews the effects of the voluntary activities by employers and by
tiade-umon organizations in the field of unemployment insurance during the
years preceding the development of compulsory unemployment-insurance legis­
lation by the States and by the Federal Government.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Recent Publications of Labor Interest

533

Majority and minority reports of Joint Legislative Committee to Investigate Adminis­
tration of Unemployment Insurance Law, State of New York, transmitted to
Legislature April 27, 1939. Albany, 1939. 100 pp. (Legislative Docu­
ment, 1939, No. 91.)
Reports of the Unemployment Insurance Statutory Committee, Great Britain, on
financial condition of the Unemployment Fund on December 31, 1938. London,
1939. 40 pp.

Vacations With PayCompany vacation plans. New York, National Industrial Conference Board,
1939. 18 pp. (Management Research Memorandum No. 1.)
Details of current vacation plans of 13 companies, supplementing the 6 com­
plete plans presented in the Conference Board’s previous report on “Develop­
ments in company vacation plans” issued in April 1939.
Vacations with pay in industry, 1937. Washington, U. S. Bureau of Labor Sta­
tistics, 1939. 38 pp. (Serial No. R. 903, reprint from Monthly Labor
Review for August and December 1938, and June 1939.)


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

P. S. GOVERNMENT PRINTING OFFI CE: 1939


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis