RECOVERY PLAN IN AMERICA

Press, Volume LXIX, Issue 20989, 18 October 1933, Page 15

RECOVERY PLAN IN AMERICA

BUSINESS MEN'S DOUBTS

MR A. L. CROPP'S VISIT The impression that the business people of the United States are, as a whole, not optimistic over the success of the National Recovery Act reconstruction plans was gathered by Mr A. L. Cropp, a prominent Christchurch business man, who returned yesterday from a three months' trip to the Pacific Coast. The feeling was widely held, said Mr Cropp, that without inflation the plan was not hopeful, and there was so strong an antipathy to inflation that no great hopes were reposed in the plan. An outcome of one plank in the National Recovery platform—the right for labour to organise;—would undoubtedly be the rise of Labour as a third political party in the life of the United States. It would mean, said Mr Cropp, that before long every industry would have its own union. Up till the present, labour had been treated with a very rough hand. In nearly all the big industries, the open shop principle was used. This amounted practically to piecework, and the refusal of the Ford intei-ests and the steel interests to allow labour to organise in 1 the industry had precipitated the j strikes which had occurred recently, i Labour was already beginning to feel j its feet, and undoubtedly would become an important factor in the life of the nation before long. Price fixation had been brought about because the Government saw in excessive price cutting a threat of diminished revenue. It was also brought about because none of the manufacturers, wholesalers, or retailers were making profits nearly as big as their turnover warranted. The President also saw the prosperity in commerce would naturally lead to more employment and higher wages. Just at present, however, the industries were a little disappointed, because they felt that the promised assistance of the Government in price fixation had not materialised as fully as they expected. Understanding: with Britain. , "One of the most pleasing features of the trip," said Mr Cropp, "was the oft-repeated wish of many Americans that a complete understanding could be reached between Britain and America." "While in San Francisco, Mr Cropp heard Mr Frank Milner and Dr. P. C. Chang, the Chinese delegate to the Pacific Relations Conference at Banff, speak at the Commonwealth Club. Both speakers made a deep impression on the audience of 300 leading San Francisco residents. Mr Milner was particularly well received, and his message had an excellent hearing, particularly in view of the very strong sympathy with Britain that exists among the more responsible classes in America.

Mr Cropp found that antipathy toward the Japanese which had been particularly strong on the Pacific Coast tor 20 years still as bitter as ever. Quite recently the Hearst newspapers had printed a message to the nation setting out in very pointed terms the danger of Japan, and stressing the idea that preparedness was the surest way to prevent war. The position in Hawaii was curious. Sixty per cent, of the population was Japanese, but Japanese born in Japan could not become naturalised American subjects, and thus had not a vote. However, all children born of Japanese parents in Hawaii automatically became American -citizens, and the day would come when they would have a vote. At present when the Japanese children left the European schools each day they were met at the fcjate by Japanese teachers, and for two hours were instructed in the Japanese language and probably propaganda of other forms. The Americans realised the position fully, and the general opinion was that when the day did arrive when the Japanese had a big vote, the islands would be declared a military area and placed under military rule.

Two New Bridges. Two big projects were under way while Mr Cropp was in San Francisco. One was a 70 million dollar bridge from San Francisco to Berkley, and the other was a bridge across the Golden Gate. The Golden Gate bridge would be a single span steel suspension structure like the Sydney bridge, but would be bigger. There was a good deal of discission over the economic necessity for the Golden Gate bridge, but as the Government had always spent lavishly on projects of this sort, California did not see why it should not have its share. It was estimated that to pay the interest on the costs of construction one car every 15 seconds night and day would have to pass over the bridge at the fixed charge of 65 cents. On the subject of crime in the great cities of America, Mr Cropp would say little. He explained that he had too many good friends there to damage the reputation of the country by going into details. Crime had increased very considerably since his last trip in 1927, but Mr Cropp saw no actual gunplay or lawlessness while he was there. "That was because I never left the main thoroughfares. I was not game to," he added.

Most Prices Lower. The general level of commodity prices Mr Cropp found considerably cheaper than when he was last in the United States. Hotel expenses were very much lower, mainly because the hotel business had been grossly overdone. In San Francisco alone, more than 12 of the big hotels were in the hands of receivers. Prohibition was not actually repealed, but everyone had forgotten it. All the big restaurants served whisky, and good whisky too. On the Pacific Coast, Mr Cropp found no difficulty in procuring liquor. With several big shipments of good drink already on tlj,e water, the price of inferior stuff produced by bootleggers was very much lowered. The general price for whisky was five dollars a bottle, but it could be had for 35 dollars a case. It was widely accepted that well before the end of the year prohibition would be a thing of the past. "During the whole trip, I received nothing but kindness and hospitality," said Mr Cropp. "Sometimes to the point of embarrassment."