THE "NEW DEAL."

Auckland Star, Volume LXIV, Issue 125, 30 May 1933, Page 7

THE "NEW DEAL."

ROOSEVELT'S PLAINS.

Leading Points in President's Vast Programme.

" BLOODLESS REVOLUTION."

(From Our Own Correspondent.)

SAN FRANCISCO, May 10.

The heroic efforts of President Roosevelt to rescue the American nation from the prolonged period of deflation are meeting with unanimous support except for a few insurgent politicians, who are being submerged in the avalanche of popular approval of the Administration's aims. The whole programme in Washington has invigorated the nation with new hopes that better times are approaching, if they have not already commenced.

Mr. Eoosevelt's promised "new deal" has emerged point by point. The general programme outlined in the campaign has been translated into a specific programme of at least 20 points —four of them already enacted and effective, on a wide scale—which some say is certain to change the American scene as it has not been changed since Imperial colonies were metamorphosed into the Republic. The programme, a bloodless revolution in its implications, and rather sudden evolution even to its advocates, appears certain of quick completion by a complaisant, even enthusiastic, Congress. The ' whole legislative programme may be enacted before these lines are read in Kew Zealand.

Nearly all of the phases embody the granting of tremendous powers of action to President Roosevelt. The "brain trust" of trained experts has been entrusted largely with carrying out the principles of the "new deal." The "new deal" itself appears to consist of a diminution of property rights and an increase of human rights, through rigid regulation of capitalists and diffusion of wealth and jobs. The Programme. In brief, the Roosevelt programme to date comprises:— (1) Currency and credit inflation, important chiefly as an antidote to the tremendous deflation. Conceded even by its opponents as certain to pass. (2) A public works programme, also designed for inflation, promised by the President, but not yet formally announced. It will include as many and as lp.rge projects as can be placed under way quickly, to speed money into the pockets of the unemployed and the very much depressed basic industries, such j as steel, cement and construction.

(3) Muscle Shoals-Tennessee Valley plan for power production, Government transmission, flood control and land utilisation, designated by Mr. Roosevelt as a demonstration of national planning and, in its electricity phases, as a "birch-rod" over the high rates charged elsewhere by the electric industry. Passed by the House and certain to pass the Senate soon. This is the first of a series of watershed developments intended to decentralise population and utilise all natural resources. (4) The St. Lawrence waterway, a power navigation development, of tremendous scope, involving State electricity operation on a wide scale, cheap freight rates to the Mid-West pnd the transportation set-up of the whole industrial North-East. This is an administration measure already advanced to the point of allocating New York's share in the construction cost, and the treaty with Ciiriada probably will be ratified at the special session. The construction work can be made a part of the public works programme. (5) Beer, an industry dormant for 13 years, already revived by Congressional Act, and assuming the proportions of a billion dollars a year industry. Prohibition repeal is now expected to be consummated .within 12 months through special State elections.

Farm Relief. (6) Farm relief, through a doublebarrelled 2,000,000,000-dollar mortgagerefinancing and price control measure, approved by both Houses and scheduled to be approved shortly with the currency and inflation as a rider. This involves a definite measure of national planning and acreage reduction to meet price and consumption needs. (7) Home-owner relief, through a two-billion-dollar mortgage refinancing bill, designed along with the farm mortgage bill to reduce interest rates generally. Passed by House, and Senate right-of-way promised. (8) Relief of unemployed through the 500,000,000-dollar Wagner Bill involving the principle of direct relief grants, avoided by the Hoover Administration. This is counted as a mild but direct inflationary measure. Already approved by both Houses. (9) Secxirities control, designed to safeguard the ordinary investor from roseate prospectuses by speculators. Legislation is now pending. It is a long departure from the principle, "Let the buyer beware." Firing Minimum Wages. (10) Industrial and labour reform, embodied in the Perkins amendments to the Black short-work-week bill already passed by the Senate. This plan includes a provision for minimum wages to be fixed by representative boards representing labour, employers and the public, and shorter work periods to spread work. A departure from laissez-faire, particularly as employers will be forbidden to compete unfairly by working their employees extra long.

(11) Reafforestation, already in operation, involving putting 200,000 men to work at once to revive and save the national forests. (12) Bank control and gold embargo, already in effect, a complete change in financial operations, and shifting of money control largely from ISTew York to Washington. Banking reform, now before committees, looking toward centralised and non-speculative banking, centred under Washington control. (13) Railway co-ordination, now apparently involving a fcderalised control of transportation, a temporary programme which may be followed by federalisjition. (14) Economy and reorganisation, through slashes in veterans' compensation armv and navy and Federal cm--1 povee expenses; largely deflationary but aimed at efficiency and increase of Federal economy. Already m effect and expected to cut Federal expenses by a billion dollars.