CRUCIAL TEST.

Auckland Star, Volume LXIV, Issue 232, 2 October 1933, Page 7

CRUCIAL TEST.

U.S. RECOVERY PLAN.

Labour Disputes Continue On

Large Scale.

COAL AND STEEL CODES,

(United P.A.—Electric Telegraph-Copyright)

(Received 9.30 a.m.T XEW YORK, October I. Yesterday was a day of mixed fortune, but continuously furious activity for the American recovery plan. Probably the most important development -was the opening of a battle of the first order on an organised Labour movement that promises to force a decision as to Labour's right to organise, and provide a crucial test of the National Recovery Act. Whereas the signing of the coal code on September 21 apparently had settled the- coalmining situation, a troublesome, unregulated sphere remained in the ease of the coal mines owned by the largo steel companies where strikes, accompanied by violence, continued in spite of President Roosevelt's announcement that an agreement had been signed which would bring these mines under the code. It appeared yesterday that thn steel companies, while, accepting the code, declined to accept the feature calling for negotiations for an agreement with the United Mine Workers' Union. The steel companies frankly intimated that they considered that such a step would, be putting in a wedge toward the unionisation of"the steel industry itself. While the chief administrator of the Act, General Johnson, in spite of weakness after a painful minor operation he underwent a few days ago, worked desperately to effect a compromise between the disputants, 25,000 striking miners in Western Pennsylvania, on a poll, declared their refusal to return to work on Monday. Events Moving Towards Crisis. The United States Steel Corporation has issued a statement declaring its readiness to pay high wages- and maintain favourable hours and working conditions, and to observe all the provisions of the N.R.A. applicable to them, but it remains adamant against the unionisation issue. It can bo said without fear of contradiction that events are moving rapidly towards a crisis for the American Federation of Labour itself in connection with the serious disputes and strikes which threaten to weaken and undermine its prestige and influence, and to obscure its future course of action. Carpenters and ironworkers at present are engaged in a bitter struggle concerning jurisdiction over public building, namely, which is to have the right to install certain kinds of equipment. Government mediators have been called in. Programme of Winter Relief. From Hyde Park, where the President is spending a vacation, comes word that a Federal relief programme, shorn of red tape for the feeding, clothing and provision of fuel for the needy during the coming winter, will be put into effect within a week. The Federal Government will contribute 330,000,000 dollars, which, with State and local funds, will bring the contemplated relief expenditure to 700,000,000 dollars. The aim will be to provide shelter, warmth, adequate rairueiit and balanced diet. The creation of a Government nonprofit corporation to buy and distribute necessities of life to the unemployed this winter was announced on Sunday night by President Roosevelt as he hurried westward to Chicago, where he will address the American Legion Convention; on Monday. The Reconstruction Finance Corporation announced in Washington that within 24 hours it will arrange to extend necessary credit to business and. corporations by means of loans to banks asd financial institutions on the lattcr's preferred stock. Funds so provided." could then be lent to business men and. those in need of credit at 5 per cent for short-term loans and 0 per cent for long-term loans. Intermediary banks and financial institutions will receive 2 per cent commission and borrowers will merely sign notes bearing the endorsement of the banks and financial institutions. 2*o collateral will be required. This is expected to aid in the desired large-scale credit expansion-