AMERICA TO-DAY.

Auckland Star, Volume LXIV, Issue 259, 3 November 1933, Page 5

AMERICA TO-DAY.

RECOVERY ACT. MORE WORK-HIGHER WAGES. TRADE WITH NEW ZEAIjAND.

Interesfflng observations on the working of the National Recovery Act in the United States were made by Mr. J. David Larson, trade counsellor of the Los Angeles Chamber of Commerce, who arrived at Auckland from America by the liner Monterey this morning. Mr. Larson, who will spend about five weeks in the Dominion, hopes to improve mutual trade between America and New Zealand by getting in touch with Gov-

ernment representatives, chambers of commerce and business men of this country. He visited the Dominion on a similar mission earlier in the year.

There was very definite evidence that tlxe National Recovery Act had played an important part in improving general trade conditions, said Mr. Larson. The plan might be said to be a success in so far as it had increased employment and decreased cut-throat competition. Eighty-five per cent of the employers in the United States were operating under codes of maximum hours, minimum wages and fair practices. Child labour had been abolished and "sweat shop" practices eliminated. Those reforms had been accomplished in a comparatively short time and should result in better living conditions and a more contented people.

From March to August employment in America had risen 29.9 per cent, while pay rolls had increased 55.4 per cent. Some business leaders pointed out that a great deal of that increase had begun before the N.R.A. was placed

in operation, and represented a natural improvement In world business and voluntary Increases in wages. Industrial Troubles. Commenting on the industrial troubles that had recently taken place in the United States, Mr. Larson said that the termendous effort of placing 120,000,000 people under the "Blue Eagle" was not without its difficulties. In such a task human nature naturally asserted itself, and it was not surprising that there should have been clashes between union Labour exponents and non-union industries. During the first three weeks in September there had been 254 strikes called as against only 33 during September last year. The causes in most cases had been due to a demand for recognition of unions. The number of working hours or the rates of pay had not entered into the controversies, as they had been settled in the N.R.A. codes. In most cases the strikes had been of short duration because of the intervention of the State and Federal Governments.

"There seems to be a general sentiment throughout the United States that the N.R.A. has been helpful, but that it has not accomplished all that was expected of it by its framers," said Mr. Larson. "Probably too much was expected. Some of the weaknesses of the Act are now becoming evident and being remedied. As the mistakes of judgment are discovered, they will be corrected, and out of a corrected plan will probably come greater benefits for all the people. President Eoosevelt's plans for promoting trade reciprocity with other countries are not likely to be abandoned, notwithstanding the plea of some for an ultra-nationalism." Friendly Contact Wanted. Mr. Larson mentioned that since his last visit to New Zealand in April some improvement had taken place in the commercial relationship between the Dominion and the United States. A number of Los Angeles, manufacturers and distributors had been in touch with New Zealand business institutions, seeking to buy some of their products. Americans had had capable co-operation from the Now Zealand Department of Commerce and Industry, and both Governments had lifted embargoes which were detrimental to mutual trade. While he realised that there were still many commercial problems to be overcome in the interest of better trade relationship, the problems, he thought, could best be overcome by friendly contact arid better 1

understanding of the problems. Mr. Forbes' visit to President Roosevelt had been valuable in the creation of better understanding between two peoples whose interests were identical.

"It was predicted that when the United States went off the gold standard, imports into the country would decrease and exports increase," said Mr. Larson. "The facts are that since the country went off the gold standard there has been a greater increase in imports than exports. From April to August imports into the United States increased 76 per cent, while exports from the United States increased 24 per cent. For the first eight months of this year the U.SA. sold to the world 945,341,000 dollars' worth of products. During that same period she bought for the world 890,195,000 dollars' worth of commodities. Among the items which show it creases were wool. The United States purchased 1,100,000 dollars more worth of wool than last year. Most of this increased purchase was from the London market, but was probably New Zealand or Australian grown.

"It is interesting to note that the United States is still a good customer of the world, but general world depressions has seriously decreased the volume. In 1923, ten years ago, the United States sold to the value of 2,560,017,138 dollars and bought to the value of 2,650,602,609 dollars, or 00,585,471 dollars excess purchase against sales. Increased imports to the United States indicates a revival in business and the balance of trado providing dollar exchange looks safe."