NATIONAL RECOVERY

Hawke's Bay Tribune, Volume XXIII, Issue 210, 18 August 1933, Page 6

NATIONAL RECOVERY

CHECK TO ROOSEVELT PLAN LABOUR TROUBLES. DEMAND FOR INFLATION. NEW YORK, August 16. A variety of unfavourable factors are culminating to threaten Mr Roosevelt’s National Recovery Scheme. Its severest shock is the extreme dilliculty of formulating trade codes for the four giant American industries—petroleum, steel, coal and automobile. Moreover, labour difficulties seemingly are flaring up again •n diverse fronts. Sixty thousand dressmakers went on strike to-day in New York City against what union lenders called sweat shop conditions. It is impossible also to reach an agreement with 10,000 fruit pickers, who aro demanding in most cast’s double the wages scale. The basic barrier to the codification i of the four major industries mentioned above seems to be the desire of these industries, particularly petroleum, for some form of Government fixing of minimum prices. Other individual difficulties include the dispute between labour and the management of the steelindustry, the first opposing and the second upholding company unions as against trade unions. The automobile code is being delayed due to the present failure of Mr Henry Ford to indicate his attitude in the field where he is one of the greatest employers of labour in America. A further serious blow to the President’s hopes occurred to-day with a sharp drop in commodity prices. As the pegging regulations of the Chicago Board of Trade had been withdrawn the accumulation of selling orders caused prices to collapse. No support developed during the day, and wheat closed off about five cents, com four and other grains proportionally. New York Stock Exchange prices weakened sympathetically, and closed off from one to five. The continued strengthening of the dollar in terms of foreign currencies, with a corresponding weakening in domestic commodity prices, is causing concern. There is a growing demand for outright inflation. However, Mr Roosevelt is reluctant to tinker with ourrcncy unless it is absolutely necesKiy.