HEROIC MEASURES

Hawke's Bay Tribune, Volume XXIV, Issue 98, 9 April 1934, Page 7

HEROIC MEASURES

Mr. Roosevelt’s New Deal SAVED U.S. FROM COLLAPSE Warm commendation for the "series of heroic measures” taken with lightning rapidity by President Roosevelt to prevent an economic collapse in America, is expressed by Mr. Harold Butler, director of the International Labour Office. He recently returned to Geneva from a short visit to the United States. The New Deal has undoubtedly made possible great strides toward recovery', in Mr. Butler’s opinion. The first public report of his impressions is contained in an article prepared for publicaticn in the International Labour Review. Basing his opinion upon personal investigations and more extended research undertaken for the office by Mr. P. W. Martin, who went to America from Geneva several months qgo, Mr. Butler says in so many words that “the N.R.A. has saved America.” Critics overlook too often the unprecedented crisis confronting the country in March, 1933, he points out. Against three great breakdowns in the economic system — bank collapse, 14,000,000 unemployed and destitute farmers—Mr. Butler ranges President Roosevelt’s three R’s —relief, recovery and re-construction. “It car. hardly be disputed that a very substantial measure of achievement has been realised in all threo fields,” Mr. Butler writes. “It is futile to ask whether the United States is in sight of complete recovery. Nothing could have brought the country out of the profound depression into which it was plunged in March within view of renewed prosperity in a space of eight months. “The right test to apply is to compare the economic and social position of December with that which existed in March. Viewed from this standpoint it isi ncontrovertible that immense progress has been accomplished. “Whether one looks at the number of persons employed, the care of those still out of work, the volume of production and sales, the movement of farm prices and the economic standing of the farming community, the stability of the banking system or the soundness of the great insurance companies, a marked improvement has taken place as compared with the first months of 1933.

“Because recovery has in fact taken place to a considerable degree, it is now being said by those who now prophesied the abject failure of the Roosevelt programme, that it has occurred in spite of it as a result of the general improvement in business activity which has been observed in most countries in the later months of 1933. > “Such a view entirely ignores the social and economic, circumstances which confronted the President on assuming office. A triple programme of relief, Recovery and reconstruction was imperatively necessary at that time, and it is impossible to believe that without that programme the United States could either have avoided a much greater catastrophe or have achieved the measure of recuperation which has already taken place.” Mr. Butler thus views the New Deal ns more than a political slogan. He calls it a political necessity, laying the bases for a new social order under trying conditions. c ‘President Roosevelt, he continues, ’ ’ was compelled to assume the task of social reconstruction at the same time as recovery, even at the risk that reconstruction and recovery might, be to some extent conflicting rather than complementary processes. It may be supposed that the forces which the emergency let loose have noyl been tamed to the extent that social and economic evils have been courageously and successfully gripped.” After tracing in detail several lines of improvement and lheoperation of outslanding industrial codes, Mr. Butler indicates chief problems still facing the recovery drive. First, must come ’stimulation 'of buying, not yet keeping stride with rise of employinent and wages. Second, new investment lags. Building is also responding but slowly, and the railroads offer a confinning problem. Only one locomotive I was built in 1932, and lines have no ■ founds io keep up their equipment. I Despite these and other difficulties, io Which Mr. Butler gives full weight, lie gies it as a reasoned opinion that prospects for this year are “incomparably brighter than those which the United States faced the fateful months of 1933.”