NATIONAL RECOVERY

Dominion, Volume 27, Issue 36, 6 November 1933, Page 8

NATIONAL RECOVERY

Success of American Scheme Problematical NEW ZEALANDER’S VIEW “So far as I can gather there are still some 11,000,000 people out ot w’ork notwithstanding the large number recently taken on following the shorter working week,” writes Mr. E. F. Black, of Christchurch, who is at present touring the United States. “The success of President Roosevelt’s scheme under the National Recovery Act is problematical —very problematical. For it to be a success there must of necessity be a big increase in mass purchasing, and, as far as I can gather, that hits not taken place. . . , “It is now suggested that still higher wages should be paid, and the hours of work still further reduced. The position is that prices have advanced ahead of the increase in wages, so that people are, in reality, worse off, except, of course, those w’ho have been given work recently; but humans are selfish and greedy, and will not agree that any little loss experienced so that unemployed should get work is just and equitable. “The worker does not appear to be much concerned about the shorter working hours. What he wants is money, and when he finds that he is not getting it as he hoped to do under this scheme there is trouble. For instance, under the N.R.A. no overtime is allowed, which means a direct loss in income to many thousands who in the past have been used to getting it. Judging by the many strikes which have taken place there must be something wrong somewhere. There has actually been bloodshed in some instances. At the present time (October 11) there are thousands and thousands on strike in the various industries. Of course, if the 'new scheme does not work something else must be tried—what, is hard to say. “My own personal opinion is that the United States should try and recapture some of the foreign trade it has lost. The huge industrial plants all over the country were not established to cater for the internal trade only, but for world trade, and the latter, having dwindled to about a third of what it was, it' follows that these plants are only working to a comparatively small percentage of their capacity. Take the steel industry, for the moment it is only working to about 40 per cent, of its capacity. That sort of thing cannot go on for long. To have mass production there must be mass consumption. “The scheme being tried out here would be no good In New Zealand, as prices must be kept down to an absolute minimum in any exporting country such as ours. What New Zealand wants more than anything—and one sees it clearer in the perspective of distance—is the strictest economy in administration. The number of the members of the House of Representatives should be halved, and the membership of the Upper House should be allowed to decrease by the effluxion of time. A permanent advisory body should be appointed consisting of representatives of industry, agriculture, labour and consumers generally, with an economist of undoubted integrity of purpose. A huge consolidation of local bodies should take place. It is simply ridiculous for a small country like New Zealand, with an insignificant population to be burdened with the almost countless local bodies that it has. The, population of the Dominion is only that of a fair-sized city.”