166 UNEMPLOYMENT IN THE UNITED STATES 
last January, they drew, in wages, $200,000,000 less than they did in 
September. That in itself is enough to cause an economic depression. 
The second proposal is the public-works program, which was so 
indifferently discussed by the sentimental gentleman representing 
some organization here to-day. I think it is a very vital bil, recom- 
mended by the President, recommended by everybody who has 
ever studied the subject—based on the principle that if we could only 
time our construction of public works in such a way as to take up 
the slack when an economic depression in private industry is threat- 
ened we will keep the whole economic situation stabilized. This 
bill provides for a stabilization board. Members of the Cabinet 
that have to do with public construction are members of this board 
with a director who watches the economic barometer. It provides 
for advance planning so that the Government would not have to 
bo wait six months and do all of its surveying, locating, and all of 
the preliminary steps that have to be taken before public works 
are actually begun. That is already done under this provision; 
surveys, blueprints, everything is prepared in advance. I think 
Secretary Mellon agrees that would be & wise plan. The director’s 
business is to watch that barometer and when & depression is threat- 
ened, he does not wait until it drops down to where we have an acute 
unemployment situation. He prevents that by stepping in with a 
program of public works, public works which are to be done in any 
event. Somebody got the notion we were doing something in excess 
of what is normally required. Not at all; it is just timing its con- 
struction. It has been done in other countries: it is not a new plan, 
sither. 
The States will, undoubtedly, use these figures and the Federal 
Government, having set the example, the States will time their 
public works; because they are as interested in preventing unem- 
ployment as is the Federal Government. The municipalities will 
use these figures, and they will time their public works in accordance 
with this advanced planning system. And what have you got there? 
Over three and a half billion dollars per year are expended in public 
works. Just think of the power of "that tremendous fund if 
intelligently used to keep this whole economic system stabilized. 
Mr. Tucker. From what is your estimate made—the three billion 
six hundred million? 
Senator WaeNER. It has been collected. The Federal Govern- 
ment spends about three hundred and fifty millions. It has been 
collected by the National Bureau of Economic Research. 
Mr. Tucker. That includes Federal and State? 
Senator WAGNER. Yes, Federal, State, and municipal—three billion 
and a half; which is, by the way, about one half of all of the construc- 
tion of the United States. You see what a tremendous fund it is if 
effectively used and intelligently managed, and how it may help to 
stabilize the situation. 
Mr. Yates. We had some figures yesterday in reference to the 
extent of unemployment and I wanted to ask you or some witness 
how we can go about getting the proper figures. Now, as I under- 
stand it, Mr. Green, the president of the American Federation of 
Labor, stated he thought the total number of persons unemployed 
was about 3,900,000. 
Senator WAGNER. Yes.