INCREASED PRICES

Dominion, Volume 27, Issue 183, 2 May 1934, Page 9

INCREASED PRICES

Operation of 'N.R.A. in United States ROOSEVELT’S POPULARITY ’ “The continued popularity of President Roosevelt is amazing,” said Mr. E. F. Black, of Christchurch, who spent > the greater part of lasUyear in the United States, and who returned to Wellington by the Makura yesterday. “This admiration exists even among peop’e who do npt agree with many of his administrative acts. The reason for this, I think, is the firm belief they have that Roosevelt has the interests of the ordinary man at heart. z “Wliat I have said refers, mainly, to the general run of people,” Mr. Black proceeded. “Big s business is naturally opposed -to the Administration,- owing principally to what are regardefl as Roosevelt’s pro-Labour leanings. On the other hand, this section has been favoured by the relaxation of the anti trust laws and the reduction of cutthroat competition. This has naturally resulted in the raising of prices—this and the N.R.A. provisions regarding wages and hours of work. As is invariably the case, prices have kept ahead of any increase in wages, resulting in numerous strikes and dissatisfaction among the workers throughout the country. ' ; ' .

\ “The National Recovery Act has certainly not been the success anticipated. Small manufacturers and small retailers are bitterly opposed to it, as they have been compelled to raise prices to meet the changed conditions, while the large concerns have been able largely to absorb the extra cost by a manipulation of working hours. I think that the working people are in a worse condition now than they were before the N.R.A. came into force. ' < - “Added to this there arc millions who have not benefited in the least by a rise in wages, and who. owing to increased costs, are unable to keep up their previous standard of living. This lessening of the consumer demand causes further unemployment: consequently, the increase in wages does not appear to have benefited anyone. “It is difficult, indeed impossible, to foresee what is going to happen eventually in the United States, with its millions of unemployed,” Mr. Black added. “Acquisition of outside markets seems to be one of the helpful solutions, and Mr. Roosevelt is using every endeavour to enter into reciprocal trading agreements with outside countries, but this is at present extremely difficult owing to the self-sufficiency of the United States.”