Evening Star Newspaper, August 8, 1930, Page 5

THE EVENING STAR, WASHINGTON, D. (., FRIDAY, AUGUST 8, 1930. DAVIS DECLARES 115, RECOVERING Business Depression Rapidly | Passing, Says Secretary +~ In Radio Forum. +Declaring that the Nation is recover- | ing rapidly from the business depres- « slon, Secretary of Labor Davis, in a radio address last night, declared that it was President Hoover who “saved this country from hitting bottom” after the crash of last Fall. Speaking in the National Radio Forum, arranged by The Washington Star and broadcast over the cost-to-coast network of the Co- lumbia Broadcasting System, Secretary Davis declared that he had lived| through a number of depressions and that all had behaved the same way. He cited the new tariff act and measures ed by Congress to provide for pub- lic works as contributing factors in the rehabilitating process. i “This is the first depression I re-| member,” he said, “when it was the| popular’ impulse to get busy and do| something to shake the depression.” | Mr. Davis, who will campaign for the | United States Senate in Pennsylvania this Fall as the Republican nominee. ' declared that: Credit to President. “When the country is on its feet| #gain it will owe its recovery largely ln‘ the wise, cautious, deliberate planning and initiative of President Hoover. And | those who are carping now will have | every reason to be ashamed of them- | selves.! “Thé President’s achievements would | stand out.” he asserted, “even if they | had been performd in a time when | every condition was favorable. Instead, President Hoover has had to accomplish what he has done under every adverse | circumstance. No man has faced down | more discouraging circumstances than | those confronting the President. In the | * long run the very difficulties he has | had to face win him the sympathy of | the country. And when in spite of | these difficulties the great work he has | accomplished is visible at last, he will | stand higher in popular approvel than ever before.” | Secretary Davis' speech follows in 1 Conditions Are Recalled. 1 have been Secretary of Labor in the eabinets of three Presidents. In the| course of that time it has been given | me to witness a good deal of recent| economic history. When I came into office we had 5,735,000 people off th pay rolls. The: country realized that the time had come for tariff revision, and we had the same period of discus- sion that we have just lately repeated. Business was slack. The whole country earned for business recovery, but no- y could predict when it would come. | Yet once the tariff bill was passed re- | covery did come, just as it will come | relieve unemployment. | flood of moneys, have been put forth of | ing were providing and spreading employment, | through administration of the ocean That it is a great practical effort, of & magnitude never attempted before, no | one can dispute. o | critics, who complained that nothing of | any practical value was being done to | relieve | smashing answer. building amply financed with ready cash, are | to the initiative of President Hoover, | not the full measure of the effort to | FORESEES BETTER TIMES SECRETARY OF LABOR DAVIS. —Harris-Ewing Photo. over 100 per cent, as compared with the same period last year. During the first three months of 1930 the highway departments of the vari- ous States let contracts amounting to 124 per cent more than they let in the first three months of 1929. The States also let contracts for State institutions in excess of contracts let for the first six months of 19 ‘The figure for hospitals and similar n: tional, State and local institutions was 62.7 per cent greater for the first half of 1920 than for the same period in 1929. The contracts let for educational in- stitutions for the first six months of 1930 surpassed those let during the first half of 1929 and excee: the six-month average for the years 1925 to 1929. Another evidence of these increases is shown in the case of fire and police stations. Building contracts of this type for the first six months of this year were more than 100 per cent greater in value than for the same period last year All these great exertions, and this for the great immediate purpose There have been unemployment. This is the Other Efforts for Relief. Bear in mind, too, that these great and construction projects, All these many now that this new law has been enacted. | building projects call for skilled work In the course of my life I have lived | men in every#building craft, and for through a number of these depressions, |: ome hundreds of thousands of these and they have all behaved the same |workers. But no building project can way. This one can be trusted to fol- | be low the same course. |1 started without stimulating other ndustries. Employment is strengthened We have all been through a trying |in cement factories, in stone quarries, time. It has fallen in some measure on all of us. The employer has felt it in his profits, and the worker in re duced employment. Under such condi tions it is natural to fall into a stat of gloom. But as I have seen thes: periods of gloom come and go in the past, so will this ont For one thing, during these depres- sions in the past, o:ir tendency was to back and let’ things work out for | themselves, This-is the first depression 1 remember when it"was the popular impulse to get busy.and do something to shake the depression. Here are some of the things we have done that make me believe the depression will ulti- mately pass. ! The contracts let for public works and betterments by National, State and | focal governments during the first six | months of 1930 exceeded by more than | $200,000.000 the figures for the first six months of 1929. You will get the real meaning of | this when I add that many State Legis- latures did not meet this year. There s the further fact that as a rule pub- Me works show a marked decline fol- lowing a stock market crash such as that of last Autumn. Phipps-Dowell Bill. Take these construction works in detail. The Phipps-Dowell bill, passed by Congress and signed by the Presi- dent on April 4, increased the Federal | eontribution to’ State highway proj- | ects from $75.000,000 to $125000.000. And this will go on for the fiscal years | ©f 1931, 1932 and 1933. | The Rogers bill was passed by Con- [ 3 and signed by the President on mber 23, 1929. It authorized an | appropriation of $15950,000 for hos- pitai facilities for the World War Vet erans. This building of hospitals gof under way immediately after the bill | ‘was signed. ‘The Keyes-Elliott bill was passed by | Congr and signed by the President 31. It increased by $230,000.000 | the program for post offices and other |{in coal mines, in steel mills. Wherever these stimulated industries are located, he workers are able to buy more at stores—clothing, food, household oods, and all the other commodities eeded by the millions who live by the ! American standard. This buying helps |to_stimulate | these commodities. The railroads and | their employes have more transporta- tion to take care of. the industries supplying In this way a great building program throws out in every direction a galvanic currect that brings new life te lagging commerce and employment. Last Autumn a great financial catas- trophe broke the spirit of the American people. There is no obscuring the fact. But it is time to pluck up again, and again I can point you to the agencies that have been at work in this way in the most practical and eflective way. The financial crash had hardly oc- | curred when the President of the United States sent a letter, on November 18, 1929, to the heads of the various Fed- eral ‘departments urging them to speed up construction. On the next day, November 19, the President called a conference of railway | executives to meet him and discuss this same subject of construction expansion. On November 21 the President sum moned to himself a conference of lea: ing business executives. He called to- wether also a conference of labor lead- ers. Next he had the leaders in build- ing construction give him their plans. At these conferences leaders in busi- ness and labor organizations agreed that wages should be maintained at the be made for changes during the emer- gency. So, for the first time in the history none of the sweeping wage cuts of the ast have occurred It was in November of last year that nt Hoover esked the governors of ral States to speed up building and construction, and so it was at his instigation that the vast building pro- gram I have just outlined was put | dent tormea & National Business Con- ference, including more than 400 lead- ers in all lines, to put into practical ex- ecution the plans formed at preceding conferences. The Government itself acted by es- tablishing a Division of Public Con- struction in the Department of Com- | merce. The business men of the Nation, act- ing through the Chamber of Commerce | of the United States, devotéd themselves to discussion of problems of stabiliza- tion, with the personal encouragement of the President, the Secretary of Com- | merce, the chairman of the Federal Farm Board and other officials, | * Another help, hailed by every business man and by thousands of individual | taxpayers. was the reduction of income | taxes by $160,000,000 in December, 1929. | " The Federal Bureau of Public Roads | spent money to speed road building | projects a month ahead of time in De- | cember, 1929. Roads through national | forests ‘and parks that ordinarily would | have been postponed were set going in- stead. Our merchant marine and shipbuild- | helped to new contracts | mail act. Altogether the Government and the | Nation as a whole put in motion the | greatest program of public works and public utility construction ever under- | | taken, amounting to more than § 1000,000,000. This was an absolute re- | versal of past experience, when.it was | the policy to shut down public works |at the first sign of depression. And | we owe this great starting of things 1t is the fashion now to pick at the | President and ask, “Why doesn't he | | do something?” This is the answer. He saved this country from hitting the bottom after the crash. In every for- | mer crisis nobody had ever attempted this. The cry is raised. “Why isn't | business on the move?” The answer is | that these moves have been made. ! After former crashes the country often had from two to six vears of slack times. Within a year after this recent collapse in the security market we have started operations whose effects must ultimately be felt. Start of New Energy. You may not feel it yet in your im- | mediate neighborhood,” but this new | | energy is starting where it ought to i start, at the center of the works. And | the movement is the more to be de- pended on because its work is going on | quietly, without a fanfare of seif-ad- | vertising Slack times always start the critics. Some of these have said that in spite of all these solemn agreements by in- | dustrial leaders, that employment would not be slashed or wages cut, the promises have been broken. It may be true in scattered cases, bui viola- | tions of such agreements have not been general Hard times have not prevented other employers from setting up advanced | humanitarian reforms. At Birmingham | and elsewhere the Steel Corporation, | | where continuous operations are in- | volved, are working on the 8-hour day. The 13-hour day has been discontinued, | along with the 7-day week. At times, | in special occupations, mechanics, elec- tricians, engineers, etc., a 9 and 10 hour | day still obtains on repair work and | so on. But the Republic Steel Corpora- tion has followed suit with the 8-hour | | day and eliminating the 12-hour day | |and 7-day week. Other companies are | | same levels and that no demands should | 8150 about to do this. | _The Atlas Cement Co. has abolished | the 12-hour day. All plants, wherever | Such a thing never happened in former | slack times. The policy then was to cut | wages and lengthen hours. It is one more piece of evidence that we are on the forward move. | But of all the calamity talk we heard, | by all odds the great part of it was | almed at the tariff. It was going to | on boots and shoes might cost the American people $285,000,000 increase in their shoe bill. What do we find instead? Boots and shoes have remained where they were in price. What little change there has been is downward. In a recent radio speech a certain Senator felt great alarm over the rates on pineapples. He sald we produced only 8,000 crates in the United States and imported from abroad 1,500,000 | crates. Now, the fact is that we import | from Cuba about $2,000,000 worth of pineapples, and draw nearly $40,000,000 worth from Hawail and Porto Rico, which are just as much a part of the United States as the State that this Senator comes from. It seems to me a good example of such reasoning on | the tariff, Tariff and Criticism. With our Democratic friends the tariff is popular, especially as it affects their own districts, except when Con- gress is considering the passage of a new bill. Then they don’t kick much ‘nbout the old bill that is in effect, but | they criticize the new rates which are proposed. So the next time we have a revision these rates they now complain of will be all right. Incidentally, this wisely protected $40,000,000 pineapple industry has fol- lowed the other protected industries. The cost of pineapples has gone down. As each schedule in the tariff came up for discussion there was the same prediction of dire results. An increase over the absolute :rates of 1922 were filled with dynamite. It would take too long to go into all these calamity prophecies. But, taken as & whole, every schedule tl was increased in the new tariff leaves the protected com- ;x;czoglty selling lower in 1930 than in The tariff on chemicals and oil paints was increased 2.18 per cent, and the de- crease in wholesale prices of oils and paints has been 3.11 per cent. Linseed | oil 1s the one commodity in the whole range that shows any rise in price. The tariffs on earthenware and glass- | ware were increased 8 per cent, and prices have decreased 3.21 per cent. The tariff on metals and manufactures thereof was increased 1.3 per cent, and prices have declined 9.25 per cent. The tariff on sugar and sugar manufactures was increased 9.36 per cent, and prices on raw and granulated sugar and mo- lasses have dropped 7.23 per cent. Cot- ton was increased 6.15 per cent, and wholesale prices have dropped 9.89 per cent. S0 it 1s, on down the list. The sched- ule on wool and woolen goods raised the greatest howl of all, and as between June of this year and last, prices have dropped by 12.75 per cent. The duties on silk and rayon, it was predicted, would beggar all the women in the land, and the wholesale prices on these com- modities have dropped 19.12 per cent. Another Senator has often raised his to_this so-called “tar- Now he called at- tention to the fact that dozens of for- eign countries are adopting the same policy as the United States. This Sen- ator has discovered that Australla, France, Poland, Greece, Peru, Portugal, Finland, Canada, Germany and the | Union of South Africa have increased various tariff duties this vear. The Italians have revised their schedules. Great Britain is beginning to “safe- guard” the interests of the empire, Foreign Commissions. In the 10 years that I have been in office as Secretary of Labor I have met most of the commissions sent here from foreign nations to study the secret of American prosperity. We make no ef- fort to conceal the reason for that pros- perity, and they see it every time. The secret of our success is simple. It is nothing more than keeping the home market safe for the home manufacturer and the home people. So much for the predicted billion- dollar rise in the cost of living. I ask vou whether you've seen anything of it. Boots, shoes, clothing, but especially our old friend sugar, were to roll up to awful heights. They simply haven't done fit. ‘What we are mostly interested in is | to have the money to buy and to keep American industry safe from unfair competition of low wages, which means the low standard of living conditions of other lands. Much of the opposition to the tariff came originally from college professors and professional “economists.” These persons are entitled to their views, as all other citizens are. But a good deal of the weight disappears from these ad- verse views whe. you note that there are other sound economists of author- ity who disagree with them and believe the tariff to be what the great majority believe it is, & necessity to--the safety of America. Here is the Alexander Hamilton In- stitute, a non-partisan institution, which has had its bureau of business condi- tions examine the tariff. “ere are a few facts they emphasize: In the old tariff law there were 3,295 items. The new tariff leaves 2,170 of these schedules absolutely untouched. Duties were increased on only 890 articles. Actual decreases occurred in 235 items. In 1929 we imported $4,400,000,000 worl of goods, more than half of them free of duty. Under the new law thz percentage of goods entering free re- mains about the same—64 per cent. Unemployment here has cut down these imports temporarily. When we of American business cycles, | they are, are now on the 8-hour basis. get going again, imports will go back where they were. Foreign countries have no legitimate kick. As the Ham- ilton Institute says: “There is con- sequently little danger that the export trade of the United States will suffer materially from the new law.” This *whole outcry against the new tariff grows out of the fact that Ameri from competition with American labor here at home. So you have the truth about the new tariff. We need it to save the American wage earner, the American farmer, the American business man. We got it because we have wise men in. office who saw the Nation's danger and warded that danger off. Finally, as if there weren't already enough o harry the President, there are those who kick because he has not yet filled the mew Tariff Commission. The answer is that the flexible clause in this new law takes the tariff for the first time in our history out of the realm of partisan rancor and places it in the hands of disinterested experts. The President is combing the country for the right men, and his aim is to get them, on the principle that it is better to please the whole country with just the right men than to please a few kickers who think that any job is a good job if it is a rush job. Gratitude for President. ‘The heart of this whole Nation should g0 out to President Hoover, and ere long his critics will rue their words. | President Hoover believes that the only | Jjob worth doing is a good job, the job | that is done well from the beginning and stays done. To be certain of doing that kind of job, and only that kind of | job, he takes the necessary time. No | President we have ever had has launch- | ed so many broad movements for the benefit of the people. It has taken | time. Now the fruits of his careful | planning are going to be evident. We are going to see results. When the country is on its feet again, it will owe its recovery largely to the wise, | cautious, deliberate planning and initi- ative of President Hoover. And those who are carping now will have every reason to be ashamed of themselves. The President’s achievements would stand out even if they had been per- formed in a time when every condition was favorable. Instead, President Hoo- ver has had to accomplish what he has | donz under every adverse circumstance. He had hardly come into office when a financal disturbance beyond the control of any man, even a President of the United States, plunged the entire coun- try into business uncertainty. In 1929, before this collapse, progress had been made on the problem of tech- nological unemployment—the displace- | ment of human workers. The steady introduction of labor-saving machinery had been slowly adding to unemploy- ment figures. The President was per- sonally interested. A Senate committee held protracted hearings on the subject. We were just on the point of working out some ‘means of counteracting this unemployment tendency, when the market disaster came and our energies went into these emergency steps that I have described. It was another serious disappointment to President Hoover. Added to all this is a blow to the Nation's crops as a result of weather conditions unparalleled for 40 years. No man has faced down more discourag- ing circumstances than those confront- ing the President. In the long run the very difficulties he has had to face win him the sympathy of the country. And when in spite of these difficulties the great work he has accomplished is vis- ible at last, he will stand higher in popular approval than ever before. The Nation sympathizes also with the farmers themselves, who, on top of & state of world affairs which has shrunk their markets, have now to bear heavy losses through ruin of this year's crops. It will wish the President especially well in his efforts to help save the farmers of the West from the effects of the unpre- cedented drought of this year. It has been truly a trying time for all, and we still have problems to solve, But no one doubts for a minute the courage and the mental and material resources of this great country of ours. That courage and resource are already swinging us back on the road to re- covery. And we are fortunate in hav- ing a President who sets us a shining example of that courage and initiative, and backs it up with an ability that already is proving itself in great prac- tical achlevements. SERVE Jorp (ALVERT i |lnrHMflwxlllulullflW[l'i“ l Il i il FRESH FRUITS & VEGETABLES Large, Ripe California Seedless BANANAS | GRAPES Average 2 to 214 Lbs. Dozen 19¢ Basket 20¢ WATERMELONS Each 49¢ BARTLETT PEARS 3 Lbs. 25¢ FRESH PEAS 2 Lbs. 25¢ Elberta PEACHES 3 Lbs. 25¢ Y¥r. POTATOES 3 Lbs. 25¢ SWEET CORN Ear §5¢ CANTALOUPES 2 for 25¢ Are You Going Away? Assuming that you aes, allow us to remind you of your “Vacation Smokes ™ Include a tin or two of yfar favorite brands with your luggage. Lucky Strikes and Camels Tins of 50 Iceberg LETTUCE 2 Heads 19€ Home Grown TOMATOES 2 Lbs. 19€ DEL MONTE ASPARAGUS TIPS Picnic Size 2 Cans 35¢ No. 1 Square | 2 Cans 4?0 N OUR MEAT MARKETS Tender Chuck Three-Corner Roast |Roast Roast . 19e | Lb. 25¢c | 1. 29¢ Loffler’s Regular Franks Lb. 29¢ Lotftler’s Skinless FranksLb. 38¢ Sunnytield Sliced Bacon %> 19¢ Fresh Ground Beef Ly 19e Tender Beef Liver Lb. 2%7e¢ Breast of Lamb Lb. 15¢ Fancy Rib ' Quaker Maid | " BEANS Oven Baked Med. 20¢ Ca Standard Quality STRING BEANS i 280 Freh Frying or Broiling ChickensLb.35¢ Cans The World’s Largest 8 O’Clock Coffee Selling Coffee White House Evap. 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Pkg. z Cakes Regular 5c Boxes 29¢ 14¢c 23¢c 23¢c 39¢ 23¢c 10c 10c 22¢ Phe. 23c 20c¢ 23c 15¢ 15¢ 29c 25¢ 25¢ 39c 25¢ structures in cities and towns through- | out the United States The' rivers and harbors bill was passed by Congress and signed by the Presi- | dent on July 3. It authorizes the ex penditure of $130,000,000 for the de- velwpment of our waterways, etc. Contracts let for post offices for the | first six months show an increase of | T under way. | ruin the country. It was going to raise | can international bankers and indus- '- i If it had not been for these vigorous | Prices skyhigh trialists have bullt or bought some 2,000 ’][QRD [V[ teps to block the downfall things would | As a fair specimen’ of factories in the cheap labor markets of Il other lands. 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