UNITED STATES OF AMERICA

FEB 6 39

Basic Problems of the National Economy.

The public hearings of the Temporary National Economic Committee were opened in December by a 3-day factual survey of the problems of the national economy. Isador Lubin, Commissioner of Labor Statistics and member of the Committee for the Department of Labor, described the failure of the national economy to produce enough goods and services since 1929 to maintain an adequate standard of living for the American people. Willard Thorp, economist for Dun and Bradstreet and director of studies for the Committee in the Department of Commerce, outlined the structure of the American economic system and surveyed the problems with which the individual business men who operate it are faced. Leon Henderson, executive secretary of the Committee, concluded with a summary of the point of view with which the Committee is approaching these problems, and a list of some of the important questions to which it hopes to find an answer. He emphasized the complexity of the economic system, the wide variety of problems faced by different industries, and the rapidly changing conditions under which the economy now operates. Page 1.

Labor Mobility and Relief.

The relationship between relief and the movement of workers is not so clear as would be expected from a knowledge of the legal residence requirements under which relief is given. New evidence on this relationship is available from a special study of the returns from the Michigan

Census of Population and Unemployment which was taken in 1935. This study finds that relief was responsible for some of the movement of Michigan workers, but that the amount of movement directly related to relief was not enough to modify the general belief that relief in itself tends to restrict the movement of workers. In general, the more moves a worker made, the less likely were those moves to involve the receipt of relief. Furthermore, unemployed workers did not "shop around" in search of the most liberal relief grants. The conclusion suggested by the Michigan data is that relief and the movement of workers have a common cause in unemployment. Page 16.

Medical Benefits and Workmen's Compensation.

Injured workers usually receive full medical care in many of the States, under the law or the current practice, and in all but one of the Provinces of Canada having workmen's compensation acts this is required by the statutes. In two-thirds of the States amendments are necessary if full medical aid is to be put upon a basis of right instead of being partly dependent upon the good will of employers and insurers. The promptness and competence of medical aid depends largely upon supervision. Indications are that because of deficient public supervision heavy losses and unnecessary suffering are sustained. Improved supervision by the compensation commissions depends upon adequate support and staffing, and also upon the adoption of personnel policies under which the officers and employees are selected on the basis of qualifica

tions for their difficult technical tasks and are retained during efficiency. Page 25.

Wage Rates of Common Labor.

A survey of the entrance wage rates paid to adult male common laborers, made by the Bureau of Labor Statistics as of July 1, 1938, found that the average hourly rate was 50.8 cents. Of the total number of laborers covered, 3.3 percent had rates under 25 cents, 8.0 percent under 30 cents, and 16.6 percent under 40 cents. Almost a quarter, however, had hourly rates of 57.5 cents or more. Page 162.

Wages of Union Bakers.

The average wage rates of union bakers increased from $0.826 in 1937 to $0.845 in 1938. In the latter year more than one-half the workers covered in the survey by the Bureau of Labor Statistics were on a 40-hour week. Page 176.

Regulations Under Fair Labor Standards Act.

A number of points have been clarified in connection with operations under the Fair Labor Standards Act of 1938. Interpretations and regulations issued, up to December 8, by the Wage and Hour Division and the Children's Bureau of the U. S. Department of Labor deal with the coverage of the law, records required of employers, definitions of exempt classes of labor, and tolerances allowable in fixing the terms of employment for special groups of workers. The Administrator's interpretations are subject to

court determination except when are governed by specific provision the law. Page 151.

Sickness Among Railroad Employe

A study of disability from sick and nonindustrial accidents an 60,000 railroad employees, made the United States Public Health S ice, shows that the average daily centage of employees disabled more than 1 week varied accor to age group from 1.2 at ages less 25 years to 10.7 at ages 65 years over. Although cases of 8 to 14 in duration predominated in all gr up to the group 65 years and over percentage of cases lasting longer 50 days increased markedly increasing age. Page 118.

Health Insurance in Ontario.

A voluntary contributory he insurance plan has been put in for Ontario, Canada, through the co ation of employers, employees, an medical profession. The plan pro for medical and surgical care and pitalization for subscribers and families. The fees amount to $1 month for the subscriber, and fo pendents range from $1.75 for the dependent to $1 for the fourth each additional dependent. Subs ers are free to choose their phys from among those participating i plan. The organization, called sociated Medical Services, Inc.", granted a charter by the Ontario ernment in 1937 and offices have established in three of the prin cities of the Province. Page 71.