Evening Star Newspaper, August 6, 1933, Page 10

A—lw LASTING RECOVERY FOR COUNTRY SEEN [ lohnson Looks Into Futurel for Permanent Prosperity ' Under New Law. l BY MARK SULLIVAN. In the industry recovery act there are two points of view, not inconsistent yet not wholly parallel. One comes from President Roose- velt. What he has in mind mainly is relief of unemployment. He wants| more men at work. Wages are im-| portant. too, bu¥ less so than number of employes. The President wants to avcid during next Winter a dupli- cation of last Winter, wants to avoid! repetition of a condition in which there was something like 10,000.000 unemployad. Ience in President Roosevelt's conception of the indus- trial recovery act the spreading out of work is the more important factor. Assume that a factory, or a shop, or @ store, or an office has five employes now working 48 hours a week. That! makes a total of 240 work hours. Adopt the Industrial Recovery blanket code’s limit cf 40 hours (in many cases 35 hours); to accomplish the | same number of work hours will now, require six employes. This means one person taken out of the ranks of the| unemployed. That multiplied by sev- eral million such ¢ unemployment problem. Gen. Johnsen's Idea. Gen. Johnson's point of view isj somewhat different—at least he puts! the emphasis on another phase. He wants to solve the unemployment problem too in the same way that President Roosevelt does. But in ad- dition the general has a theory about would solve the | % Atlanta Will Allow Jewish Grocers to Open on Sunday By the Associated Press. ATLANTA, August 4 —Jewish grocers of Atlanta today were granted & permit by Mayor Key to open their establishments on Sundays between 8 am. and 2 .m. x The mayor said that because of their religious views, Jewish grocers close their businesses on Saturdays until sundown. An ordinance has been passed by the city, following adoption of a national recovery code by re- tail food dealers, closing such businesses at 5:15 p.m. The mayor said, in granting the permit to the Jewish grocers, that he was merely permitting them Sunday hours to the num- ber they would be open from sundown to midnight on regular business days. flexible to accommodate industries| having special conditions: and that the it impossible for most of the mothers bill should include a provision for fix-| ing minimum wages. criginal introduction of the idea of minimum wages into the bill. Miss Perkins suggested that “The Secretary cf Labor be authorized to specify the| tAtal hours of operation of a plant . . .| certainly during the emergency.” This| was the first introduction of the idea of ccntinuing control of industry by a Government agency. This was the|so long a trip. For others, the shock THE SUNDAY STAR, WASHINGTON, D. C. IVISIT TO WAR GRAVES REFUSED BY MOTHERS | Larger Number Have Declined Than Have Accepted Privilege of Journey to Europe. While 6,674 World War mothers and widows, over a four-year period, availed | themselves of the pilgrimages to the battle cemeteries of Europe to visit the graves of sons and husbands, the War Department announced yesterday . that ;L total of 9,812 had declined the privi- ege. The 1933 pilgrimage, during which visit the graves of relatives, will terminate on August 24 with the re- turn to the United States of the group which sailed on the President Roose- velt July 26. No official explanation was given for ! the. large number of declinations. It was pointed out, however, that age,| health and family circumstances made and widows to leave their homes for on personal emotions would be too great to risk going. i pilgrimages, 5,612 visited the graves of sons or husbands; 543 were the mothers or widows of men whose remains rest Europe, but are listed as “unknown, | and 519 were the mothers or widows of men lost at sea. Up_to this point the bill had only two inspirations, Senator Black's orig- | inal cne and Miss Perkins'. Miss Per- kins was careful to say her suggestion her own. It was not an adminis- traticn prop:sal. Up to this point President Roosevelt had had no hand | States until they returned, they were | in the measure. It was not part of his | | program. He regarded it merely as a | of Army officers and nurses. As guests | bill that had originated in Corgress in |of the Government, they received un- i the usual way and had been passed by | usual privileges everywhere. one body, the Senate. Besides visiting the cemeteries, the various groups spent some days in Paris, | going and returning, with opportunities of sight-seeing, shopping and resting From the day they left their homes in | widely scattered sections of the United | under the constant care and attention AUGUST 6, 1933—PART—ONE the Government has provided the|| means for 689 mothers and widows to | Of the 6,674 women who have made || Roosevelt Enters the Picture. | FARGO DiEVAT.HV UNébLVED At this pcint arose one of those cases | the effect of the industrial reccvery|of a trivial incident which often makes | act. To him the act is primarily a means of bringing about permanent prosperity. In this theory Gen, John- son _has intense conviction. He says the thing to do and the| thing which the industrial recovery | act will accomplish, is to “build up| purchasing power.” Until recently | turing plant in a small town persuaded | Winnipeg. died in a Federal narcotic |',h<‘1r employes to agree to an ex- | there was very little purchasing power because neither labor nor farmers had much money in their pockets. Farmers | have been given money by the farm | relief act. Gen. Johnson would create | purchasing power in the pockets of | labor by putting labor to work. Until | there is purchasing power, he says, there can be no real prosperity. Fur-| ther than that he says there can be | no real prosperity so long as—it is | put in these economic terms—'prcduc- | tive capacity exceeds purchasing ca- | pacity.” That is, there can be no pros- | perity so long as quantity of money in labor’s pockets with which to buy is/ very much less than capacity of ma- chinery in factories to produce goods ! for sale This ccndition, which has | been the condition of the past nearly | four years. Gen. Johnson says, is an| infallible formula for depression. It has produced depression continuously | since 1929, Would Build Purchasing Power. Gen. Johnson proposes to reverse | the condition. He proposes to build ! up purchasing power by employment | of labor to a point where purchasing | power is greater than capacity of fac- | tories to produce goods. The attain- | ment of that condition, Gen. Johnson | zays, is an infallible formula for bring- | ing back prosperity; not merely or-| dinary prosperity but great prosperity. | He says that cnce the condition is at- | tained—a greater quantity of mioney in the people’s pockets than there is of | gocds offered for sale—America will en- | ter into such a period of prosperity as | it has rarely known before. Until Gen. | Johnson became so busy, he would take an old_envelope out of his pocket, and | a pencil, and draw a graph. First the | line of goods for sale higher than the | line of purchasing power. That means | depression. ‘Then let the line of pur- | chasing power ris> until it crosses the line of production of goods for sale—, that means prosperity. | About this theory Gen. Johnson is as firmly convinced as he is that day follows night. He is not the only one | who holds it. A considerable group of | business men, heads of some of the . count largest corporations, share the conviction with him, consulted with him in working out the theory, and | have the same confidence in its out- | come. Where It Camec From. One way to understand this indus- | trial recovery act, as anything else, is | to follow ils history from its frst in-‘I ception. It did not begin with the “brain trust” (though subsequently scme of | their ideas were incorporated into it and as it now stands it accords with some of their theories of social organi- zation). It did not begin with Presi- dent Roosevelt. It did not begin with Gen. Johnson. It did not begin with Secrctary of Labor Perkins. It began with a very simple bill in- troduced in_ Congress by Senator Hugo | Black of Alabama. At that time ll‘Ci bill was not a part of President Rocse velt’s emergency program. It stood | alone as an idea of Scnator Black's. In that form it was a simple measure to reduce hours of labor. The bill merely provided. in effect, that all fac- tories, stores. offices and the like, should limit the hours of any cne em-| ploye to 30 hours per week. The object | aimed at and the obvious result would merely be more employment. If a re-| tail shop was habitually open 60 hours a week, it would, under Senator Black's | proposéd law, continue open 60 hours a | weex, but would need to have twice as | many clerks. It was simply a measure | for increasing quantity of employment, and thereby diminishing unemploy- ment. Senator Black's bill passed the Sen- a‘e. Up to this point the bill was his and his alone. While the original measure was in this form of a simple, arbitrary limita- tion of hours of labor to 30 a week,! Secretary of Lab'r Perkins came for- ward with a suggestion. She said timt if the bill were to b> passed at all, the limitation on__hour: ld_bs made Cooks at 2c a Meal for a Family of Five It's easy to beat the high gas bills and still enjoy all the conveniences of the most modern gas range. An incomparable buy at these prices. Price Range, $9.90 to $120 See These Remarkable Cooking Stoves important history. There came to Mr. Roosevelt, from some source or other, a story which impressed him strongly. ‘The stery was repeated by him fre- quently in private conversations dur- ing the early part of May. The owners of a sweater manufac- tremely low wage. Armed with this low cost of producticn, the owners went to New York and were able to secure about all the orders for sweaters on the market. Their plant wa2s able to cperate, in three shifts. 24 hours a day, while cther sweater factories through- out the country. and the communities dependent on them. were prostrate. It scemed to President Roosevalt that this was an impediment to Nation-wide recovery. It was throat-cutting com- petition working to the disadvantage of the country. The stcry had a second angle. It brought to light the fact that in the textile trade generally wages were ex- trem:ly lqw and child labor was used. The textlle industry was conspicu- cusly the one in which there was ne- cessity for a minimum wage. This story caused President Rcose- velt to begin to take an intcrest in the bill in Congress providing for a short work week and a minimum wage. He did not make the bill his own, how- ever, for some time. Business Promotes the Bill. At this point, organized busincss came forward. It came mainly through the United States Chamber of Com- merce and its rman. It was or- ganized business chiefly that caused the bill to become what it now is. What business wanted and proposed was, in effect, immunity from the anti-trust law. Their prcposal was that the trade association in each industry should be permitted to do what the anti-trust law forbade, namely. agree upon wages, hours, production and price, or at least minimum price. At that time. early May, we were still in the midst of depression and business was in rather a state of terror. Buciness Proposal Starts Action. It was really this propesal from busi- ness that caused the industrial recovery act to become what it is. It was in- stanily apparent that if business was to be allowed to make agreements con- trary ot the anti-trust law, the Govern- ment must have a hand in making the agreements and must have a continuing supervisory hand in carrying them out. At that time business was so frightened by the depression that it was willing to pay this price. Six weeks later, or today, with prosperity resuming, probably much of business regrets the bargain which in effect it made. Even at the time, some areas of business deplored the attituce taken by leaders of the United Statcs Chamber of Commerce. That is the genesis of the industrial recovery law. Senator Black's original bill, Secretary of Labor Perkins' ideas and the ideas of the United States Chamber of Commerce were drawn together in the office of Senator Wagner of New York, who sponsored the bill. It was at this point that Gen. Johnson cntered the picture. He observed that the bill was along the lines of his theory of holding production down while raising purchasing power up. He made some suggestions desizned to make the plan workable. Because of that activity he was chosen to administer the bill. . Good | Woman Victim in Narcotic Agent's Apartment Had Skull Fracture. FARGO, N. Dak. August 5 (&) —A || could not determine the circumstances '(‘omner‘s Jury decided yesterday it under which Mrs. Hilda Gray, 40, of | agent’s apartment here Tuesday night The agent, D. F. Ellsworth, was charged with possessing liquor. He pleaded not guilty in Distrct Court and | was ordered held for $1,000 ball. Pre viously he had been held for $15,000 |bail as a material witness but that | case was dismissed I The jury said the woman died from | a skull fracture “caused by a blow or | fall under circumstances which we are unable to determine.” | | | The pious mother of Awcrt Durer, ! the famous German painter, wi t | disappointed in her son. She deemed | he would have been better off had he followed his father's trade, for was she | not herself, too, the daughter of a rich | goldsmith? | Announcement WATCH REPAIRING BY EXPERTS The repair of your watch does not complete the transaction be- tucen us, but establishes our obligation to fulfill our guarantee of seruice. 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