THE NEW DEAL

Evening Post, Volume CXXI, Issue 36, 12 February 1936, Page 4

THE NEW DEAL

A BUSINESS ASSAULT

THE WIDENING OF A RIFT

STRONG OPPOSITION

Strained relations between the Roosevelt Administration and organ-ised-business passed the breaking point recently when the National Association of Manufacturers declared that industry was now in politics to rid the nation of the New Deal, writes Louis Stark in the "New York Times Just prior to that decision the Chamber of Commerce of the United States announced that by a vote of thirtyfive to one its members had overwhelmingly voted against recent Federal legislative trends. . The first concrete expression or men animus against the Administration since the two industry groups made their declarations came when Major George L. Berry's conference of industry was convened at Washington. | Administration sympathisers point to the wholesale exodus of business groups from the conference by their refusal to appoint spokesmen to the proposed industrial conference, as well as the events that just preceded the session, as evidence of industry's, desire to "gang up" on the New Deal. Nevertheless, Major Berry, Co-ordm-atpr of Industrial Co-operation, clings to his belief that a large sector of industry is willing to co-operate with the Government and Labour in order to work out a programme for relieving unemployment and alleviating some of the nation's social ills. • GROUNDS FOR DISSENT. The industrial dissenters from the Berry programme" (there are apparently no dissenters in the Labour ranks) voice their objections mainly on the ground that the conference is another attempt of the Government to interfere with business, although recovery is under way and natural forces, if left to operate, would further advance economic well-being.

. Specifically, many objectors fear that an industrial council comprising management, Labour, and the Government might lead towards the possible creation of a national .economic council whose watchword of "economic planning" might 'seek a balance between production and consumption. "Free competition" is a phrase that frequently recurs in the discussions of some of these groups.

The relations between the Roosevelt Administration and business have been in disequilibrium since the early emergency measures of 1933 gave way to more far-reaching proposals for reform.- The early programme won the praise of men like Henry I. Harriman, then president of the Chamber of Commerce of the United States, who called it a "consistent and well-ordered plan." -But as one New Deal Bill gave way to another, the enthusiasm of Mr. Harriman and his associates cooled. They viewed with something akin to horror the collapse of their economy programme when billions were voted for relief. They saw utilities-regulation measures, banking bills, creation of the SEC, control of utility holding companies, injection of the Government into the power problem directly through the TVA as interference with private business. Heartbreaks in the bosom of the President's official family are not lacking as a result of the impasse between the Administration and industry, Daniel C. Roper, Secretary of Commerce, in June, 1933, launched the Business and Advisory Council to help steer the Administration^ bark on a proper course. Comprising representatives of the nation's foremost corporations and including spokesmen for small industries as well, these fiftytwo men were to'serve as the crew that would guide the ship of state safely into the" harbour of prosperity. .-• But Council members at their regular monthly meetings saw no signs of acquiescence in their suggestions emanate from the White House or from Administration supporters on Capitol Hill. Instead, they saw relief expenditures rise, more New Deal Bills issue from the hopper, and more regulatory measures pass the scrutiny of Congress. •The industrialists, as represented by the Chamber of Commerce of the United States, asked the President some pointed questions as to his policy in a communication sent in September, 1934; but he ignored the queries. Several months later 100 business leaders met at White Sulphur Springs and drew up an eleven-point programme which they offered the President as a sign of conciliation. In effect, they asked the Government to balance the Budget, stabilise the* currency, and step aside and hand on the main job ,of recovery to private initiative.- The White Sulphur prct gramme was left with the White House secretariat and shortly afterwards Secretary Ickes and Administrator Hopkins attacked the resolutions. In January, 1935, it seemed that, the advistory council and the Administration had at least worked out a plan of closer co-operation. But the plan did not function to the satisfaction of the council. One source of dissatisfaction was the council's complete obscurity. It was not until last May that Mr. Roosevelt granted the council the right tp make public its own reports. In May the Chamber of Commerce broke with the White House and expressed its ideas on social security, the N.R.A. Government control of trade associations, utilities, banking reforms, the A.A.A., the Wagner Bill, and other Labour measures. TO END IT. Last summer, following the adjournment of Congress, there was a short breathing spell, but in September the National Association of Manufacturers warned its members that industry must be prepared to meet further Government control, "perhaps more extreme than any yet suggested."

It was at this time also that Ernest T. Weir, head of the National Steel Corporation, called on business men to go into politics to safeguard their interests. E. F. Hutton, of General Foods Company, used the phrase "gang up" in suggesting co-operative action by industry with respect to the Administration.

These suggestions bore fruit at the manufacturers' meeting in New York on December 4, when it was frankly announced that industry was out to end the New Deal.

The schism between the Administration and industry will continue so long as President Roosevelt remains unmoved by demands that labour and social welfare legislation be scrapped and that the New Deal issue a "cease and desist order" removing industry from "the strait-jacket of Government."

Industry demands freedom from the anti-trust laws, discontinuance of all forms of "Government in business except to that minimum degree that is necessary to prevent monopolies, gouging, unfair practices, and exploitation of labour."