ELIMINATION OF UNFAIR TRADE

Press, Volume LXIX, Issue 20979, 6 October 1933, Page 5

ELIMINATION OF UNFAIR TRADE

♦ AMERICA'S PLAN BRINGING MINORITIES INTO LINE (SPKCIAH,I.-WBITTS» JOS THZ MtBSS.) " [By T.C.X.] VI. There are teeth in the new American Industrial Recovery Act. Not only can the President compel adoption of codes for the industries and subject violators to punishment by fine, but he has power to license an industry so as to force unwilling or recalcitrant minorities into line by banning inter-state movement of goods. There is also a provision for an embargo on imports when prices and wages go up, and for the suspension of the anti-trust Act. American tariff rates are already exceedingly high, in many cases prohibitive, as they are meant to be. It is generally anticipated prices of commodities will appreciably advance ; they have already done so an several directions, and tariff increases may be expected soon. The ertect on overseas debtors will be felt at once for already it is almost impossible for them to pay interest charges on their American debts even when they are willing to do so. A further embargo on foreign goods will mean that America must forgo all chance of receiving payment of overseas commercial as well as war debts.

Reconciled to Repudiation. Most persons interested in com merce and finance realise the fac that they cannot be a creditor anr a high tariff country at the same time, and are reconciled to the possibility of repudiation on the pari of the European countries, but thej would like to provide a means for the readjustment of war debts with countries such as Britain which arc endeavouring to meet their obligations. The rank and file, however, cannot see the effects and intrications of their tariff oolicy, nor understand the difference between local, national debts and internationl debts. The rank and file rule Congress, and the President must have the support of Congress in any measures he initiates for the ending of the present debt impasse. Besides the regulation of industry through codes there is another important provision in the Industrial Recovery Act. It relates to the public works programme, which provides for the construction of highways, parks, public buildings, housing projects, naval construction, etc. For these works £660,000,000 was allotted. Any contracts entered into have to contain provision for a 30-hour week for employees other than those in executive, administrative or advisory position... Before the bill was finally passed machinery was being set up in Washington to carry out its provisions. One of the nation's proved successful organisers, a dominant and resolute man responsible for the Army Drafting Act of 1917, and the relief of the San Francisco earthquake sufferers, General Hugh Johnson was building up his own organisation and ever since he has been in the closest touch with representatives of the various industries in hammering out codes. One of the first completed and authorised was the textile industry's. It contained a provision for the abolition of child labour. For decades strong efforts had been made to deal with this scandal but the power and influence of vested interests and the keen competitive conditions rendered them nugatory. In a few days General Johnson was able to accomplish v/hat State Governments and strong movements had failed to do in 40 years or more. This was hailed throughout the states as a triumph and a justification for the New Deal." The " Big Stick."

The consideration of codes connected with other staple industries, such as coal and iron and steel, have presented a good many difficulties, and more than once the director has had to use his " big stick " to bring them into line. Divergent interest have been brought together in a way that was previously considered impossible. The coal industry, ior instance, was one of the most stuoborn and recalcitrant. For many years the relations between the mine companies and their employees were as bad as they possibly comd be Thev were always at daggers drawn " fighting each other at every opportunity, each seeking to gam an advantage over the other Ugly incidents occurred, maiming and murders and sabotage not being infrequent interludes in their rela tions. The history of this of the industrial war hardly bears renting. Nor were the relations between the mining companies themselves much better. They sought unfair advantages over their com national income th « t h« became fiercer than ever and wcompanies were busy giv ng away their shareholders' capital in a vain effort to hold their business.

Marked Advantages. Under the new scheme they will rAaf/Trols wOM* earned. All advantages will be gained, it is P 1 raterially mcrea - benefit the Industrial Recovery Art In fact, it would seeiri thot all the biggest industries stand ogain under it g Under the old order nf unrestricted competition, few of ttm'wirrable to get together and formulate agreements of a torv nature, and when they did attempt it tne resultant arrangements were quickly upset by unfair practices on the part of a small element. Now they will be compelled to observe the conditions of the code or. face punishment in person and subsfance P In this respect, then, the act; is regarded by employers as containing sound and satisfactory features. The 'provision for the reduction of hours of work, without substantially reducing wages, has not been received by industry so enthusiastically. The industrialists recognise the need for spreading the nation's available work as widely as possible, but question the ability of the public to buy at higher prices goods and products which they are finding difficulty in buying at the present prices. The administration reply that when their scheme is carried out in all its entirety the public's purchasing power will be so increased that it will be able to pay more for its goods and products. Industry also fears that the present emergency reduction of hours will remain a permanent condition, and so keep up high costs of production in terms of normality;

Labour's Attitude. Naturally Labour is very elated at the unexpected turn of affairs. In its wildest dreams it never expected to be treated as generousl;- as it is being treated under the codes. Labour in America in the past, however, has not been the united political force it has been in various parts of the British Empire. Such unions as have existed have not always had recognition at the hands of employers; the "open shop" has been the rule rather than the exception. Labour now has equal rights with employers, and has been quick to exploit its new powers, seeking fewer hours of labour, with higher wages, than even the Government regard as a fair minimum to meet the exigencies of the times. Thus Labour, as soon as it gains recognition, shows the same selfishness as characterised the relations of "big business" with Labour in the past. Labour, however, which has suffered acutely during the last few years, is expected to settle down to the new order of things in a few months, and, if the advice of its leaders is heeded, is bound to be a strong and helpful force in the reconstruction* of the economic life of the nation.