PLEBS LEAGUE

Evening Star, Issue 21725, 21 May 1934, Page 11

PLEBS LEAGUE

\ The subject taken at .the last meeting of the above league by the tutor. Mr M. Silverstone, was ‘The First - Twelve Months of the National Industrial Recovery Act of America.’ The speaker said that the only country, outside of Russia, that was trying to do N something to improve matters was the .United States of America. All the other i countries were waiting for something to turn up. This system operating in the U.S.A. was done under what was termed codes, each industry having its-separate code to work' under,' Prior to the war the U.S.A. did not have a very large export trade, her production being almost consumed locally. Prior to the war all countries except Eng--1 land ■ were debtor countries—that was, . owing more to others than others owed ■to them. As a result of the war the combatants could not supply sufficient for both war and peace production, so they had to pall on neutral countries for. support. So great was the coni sumptive power of those engaged in the war that to assist to supply this demand gave the U.S.A. the opportunity for paying off her debts and ultimately - becoming a lending nation also. To augment this further the inventive .genius of man'was so stimulated that inventions became so great as to exceed anything ; before recorded in history. These, inventions in the_ form of ma- * chines were simply multiplied for war ■ production, * and when the war ceased they were'switched over to peace production, because all the machines were . new and required no outlay. After the war the combatants, and especially the vanquished, were poverty stricken. There was no more need for khaki clothes and-heavy boots—all wanted lighter hoots and peace clothes I This was America’s chance, and as the money by subscriptions poured in her people became prosperous, and they lived extravagantly. .This could not last, and the impoverished countries then began to recover and also to liquidate their debts. They did not now require so much of America’s goods, hut instead were expoxting goods to America to pay their debts to her. At this stage the wealth of America was so great that an orgy of _ speculation was indulged in. Capitalist production created surpluses, and these kept on creating surpluses. Of America’s 120 millions, two or three million workers, men and women, were always on the sick list, and no provision was made for them. She had also between three and four millions. unemployed, but this was nothing exceptional for such a population. However,, as a result of tariff walls, to 'keep out outside goods, her production slowed down and unemployment grew; the purchasing power of the workers fell and the crisis became so* bad that something had to he done, with the result that the Roosevelt policy was set in motion, ■to . increase purchasing power hy borrowing from the rich, and this only gave security to the lender. This was only a short-range policy, and together with the shortening of hours could not in any great measure reduce the unemployed. This was the first time in the bistory of the world that National Governments had instituted a policy of reducing the production of the earth and paying producers to restrict production, and. this at a time when millions were practically starving and could consume this reduced production.