THE WAR PERIOD—AN INTERREGNUM 45
food, clothing, fuel, light, housing, and sundries weighted
in accordance with the relative importance of different
items in these average budgets. A continuing basis of
measuring changes in living costs was thus obtained.
These results or indices were accepted as official by all
wartime wage adjustment agencies. In addition to original
awards on wage controversies, the general policy was also
adopted of making changes in wages after the lapse of a
stipulated time in the future, usually by six-month periods,
on complaint of one or both of the parties, based on varia-
tions—as a rule upward—in living costs. Some awards
carried clauses providing for automatic changes in wage-
rates each six months, should there be important increases
or decreases in the cost-of-living index. In still other
instances, wage adjustment agencies, on their own motion
and without complaint, raised wages as living costs rapidly
mounted. This method of adjusting rates of pay to price
advances was the fundamental wage policy followed during
the war.
STANDARDIZATION OF RATES oF Pay
At first it was agreed by government officials, employers,
and representatives of labor organizations, that in making
adjustments of wages according to living-cost changes,
local standards and the custom of localities should also be
taken into consideration. This principle was practically
abandoned after a time, however, for two reasons: (1)
the intense competition for labor demonstrated the wisdom
of having the same rates for similar work and services
throughout the country, in order to avoid the migration
of workers from one section to another because of the
lure of better conditions and higher earnings ; and (2) pre-
conceived notions as to variations in the cost of living in
different geographical areas, which had previously been the