SEVERE SETBACK.

Auckland Star, Volume LXIV, Issue 194, 18 August 1933, Page 7

SEVERE SETBACK.

BLOW. TO ROOSEVELT.

Key Industries Give Trouble Over Codes.

SHARP DROP IN PRICES,

(United P.A.—Electric Telegraph-Copyright) NEW YORK, August 17. Various unfavourable factors have culminated, or are about to culminate, in a threat to administer to President Roosevelt's national recovery scheme its most severe shock.

Extreme difficulties are being encountered in formulating trade codes for the four giants of American industry— petroleum, steel, coal and motors. Moreover labour difficulties seemingly are flaring up again on diverse fronts.

Sixty thousand dressmakers went en strike yesterday in New York city against what the union leaders called "sweat shop" conditions.

It has been found impossible also to reach an agreement with 10,000 fruit pickers, who are demanding, in most cases, double their present wages.

The basic barriers against the codification of the four major industries mentioned seems to be the desire of these industries, particularly petroleum, for some form of Government fixing of minimum prices.

Other individual difficulties include a dispute between the workers and the management of the steel industry. The first are opposing and the second is upholding the companies' unions as against the trade unions.

The motor industry code is being delayed owing to the failure, up to the present, of Mr. Henry Ford to indicate his attitude in the field where he is one of the greatest employers of labour in America.

A further serious blow to the President's hopes occurred yesterday when there was a sharp drop in commodity prices. As* the "pegging" regulations of the Chicago Board of Trade were withdrawn the accumulation of selling orders caused prices to collapse. No support developed during the clay and wheat closed about 1 5 cents lower, corn 4 cents and other grains proportionally.

On the New York Stock Exchange prices weakened in sympathy and closed one to five points lower. The continued strengthening of the dollar in terms of foreign currencies, with the corresponding weakening of domestic commodity prices, is causing concern.

There is a growing demand for outright inflation. However, Mr. Roosevelt is reluctant to "tinker" with the currency unless it should become absolutely necessary.