STATE CONTROL.

Auckland Star, Volume LXIV, Issue 160, 10 July 1933, Page 7

STATE CONTROL.

AMERICAN INDUSTRY.

"REVOLUTIONARY" MEASURES HOOSEVELT'S PLAN. The radical nature of the measures which President Roosevelt is taking in his endeavours to bring about the industrial recovery of the United States was emphasised in an address delivered to Auckland Rotarians to-day by Mr. W. H. Hemingway. "America." eaid the speaker, "has of late been overwhelmed by the cries of 'economy' on the om> hand and 'controlled inflation' on the other. So among other measures the Legislature has just passed the Industrial .Recovery Act. In passing this measure the Amcri":in Senate, Congress and President have doubtless taken heed of the warnings of such men as Stuart Chase, who, in 'New Deal' (an expression often used of lato by Mr. Roosevelt), advocated what he picturesquely described as the 'third road,' meaning thereby a method between a return to the old system and the plunge into Communism. One may abo trace the effect of Gerard Swope, of the General Electric, in his advocacy of combined planning for individual industries, which gained a lot of (sympathetic attention in the United States twelve months aero.

* "Roosevelt's inflation scheme "would appear to bo largely based on that propounded some months ago by the English profeseorj J. Maynard Keynes, which involves some form of managed currency. Keynes' scheme was turned down cold' by the British Chancellor of the Exchequer, which once more illustrates the truth of the text that "A prophet is not without honour, save in his own country.'

What the Act Provides. "Roosevelt's Industrial Recovery Act is but a short statute, yet it contains eome of the most revolutionary meaeuree over adopted outside of Russia. The preamble to the .Act describes it aa a measure 'to encourage national recovery of industry and to foster fair competition. 5 It states specifically that the Act is not to be construed as being in conflict with the existing anti-trust laws (e.g., the Sherman and Clayton Acts), and. it permits the organisation of industry for the purpose of co-opera-tion among trade, groups, and induces and maintains united action of managements and of labour under Federal sanction and supervision. Jt empowers the President to establish industrial planning agencies and to prescribe codes of fair competition for any trade, industry or sub-division thereof. The President may also prescribe rules for the keeping of accounts and records and for the due and regular filing of returns and reporte to the Government. Henceforth no person may enter into, or carry on, business affecting inter-State commerce without obtaining a Federal license to do so. Rates of wages, hours of wort and prices may be regulated under the Act. Being an emergency measure, the Act ie to remain in force for two years, unless the President, or a joint resolution of Senate and Congress, shall decree otherwise. Penalties in the way of fines and for imprisonment for disobedience to the Act are imposed-

"Towards Socialisation." "The passing of this Act marks, possibly, the beginning of a new economic era for America, one in which individual trades and industries will be encouraged, if not forced, to integrate, organise and regulate themselves under a growing measure of Government direction and supervision. The Act permits private ownership and operation, but under strict Government planning and control. If this legislation succeeds, America will have gone further than any country in the world, with the exception of Russia, towarde the socialisation of industry. Individual unit competition is to be a thing of the past. Trade and industry are to have Government advisory councils. National policy ie to move so that trade and each, industry is to be an integrated unit, with production limited, wages and working hours settled, and, within limits, price levels fixed. Witt" it succeed? Who can eay? If it fails,' one American commentator goee so far as to warn the American public, 'then the next step is Communism.'"