Problems of U.S. Recovery

Manawatu Times, Volume LIV, Issue 7270, 25 September 1933, Page 7

Problems of U.S. Recovery

Primary Producers Not Being Forgotten

SENSATIONAL OFFER TO COTTON FARMERS

.United Press Association—By Electric Telegraph— Copyright* Received Sunday, 7.30 p.m. NEW YORK, Sept. 22.

An N.R.A. code for unemployed was submitted to the recovery administration to-day by the Federation of Unemployed Organisations. It requests a grant of 14 dollars per week for all unemployed, with 3 dollars 60 cents extra for each dependent, and a minimum wage of 50 cents an hour on such emergency work as is available. It demands the abolition of all discrimination because of race, religion or political affiliation, and requests tho privilege ot “collective dealing' ’ with unemployment relief agencies. Due to the illness of General Johnson, codification of industry has come to a virtual standstill.

Further hearings of the newspaper codo were held in Washington. The editorial representatives of several puolications insisted that writers should be granted N.R.A. privileges, instead of being exempt as "professional men" in the original code. Publishing interests insisted on the right to employ newsboys for limited hours of work, saying that the boys function as "young merchants” aud work outdoors and do not injure their health or morals.

Apparently coming to tile conclusion that the industrial recovery programme has advanced too rapidly at the expenso of primary producers, President Roosevelt to-day made a sensational offer to cotton farmers to loan them 10 cents per pound on cotton.now held, in exchange for agreements to reduce the acreage of next year’s crop up to 40 per cent, and in 1935 by 25 per cent. The price of spot cotton is fractionally below 10 cents, and if all planters accepted tho offer it would mean that tho Government outlay would be about 400,000,000 dollars.

Following yesterday’s announcement of tho Government purchase of food and cloth for unemployed, requests were mado for similar purchases of coal for distribution among the needy. It is thought by the administration leaders that subsidising producers through purchases and loans will make currency inflation unnecessary, or at least quiet for the time being the demands. Therefore, as a further counteractive to the inflation proposals, the President plans a more liberal-lending policy.

The President is represented by friends as so adamant against currency inflation that ho will not even consider the matter until the N.R.A. codes arc given a thorough testing and every known means is exhausted to supply business and producers with tho necessary credit. It is believed that the recent protests from farmers that the N.R.A. is forcing them to pay higher prices for the goods they consume, havo prompted Mr. Roosevelt to enlarge his agricultural price-raising programme; Mr. Wallaeo commented: "We don’t want the farmer to get 1 hooked in the next two or three months.’’

The agricultural administration also announced to-day it would impose a two cents processing tax on hogs and at the same time continue its campaign of buying up and slaughtering pigs; also to iclieve the maize farmers, whose products largely go to feeding hogs. Bonuses will be paid to them for curtailing their acreage for 1934-35. Fifty thousand Ford employees have been officially notified to start a 32-hour week on Monday. The new wage scale was not revealed, but it was said it would certainly not be less than 50 cents an hour and in most cases more. Regarding hours, it was explained that w’ithin six to eight weeks a 40-hour week would be resumed temporarily, with a view to maintaining the average cf 35 as prescribed by the N.R.A. A spokesman said that Mr. Ford had ■no intention of violating tnc code, but there was no indication that he intends

to sign it. An extension of the United States’ administration plan for supporting cotton. prices of 10 cents a pound to other major farm products is the immediate objective of the Government’s efforts for the lifting of farm purchasing power quickly and keep pace with industrial* prices. The programme will take the form of a gigantic effort to place “a bottom” under farm prices through the extension of the credit system, wherever it can be definitely coupled with production control, which is regarded as an insurance for Government loans.

Farmers Suggest a Strike DEMANDS MUST BE COMPLIED WITH Received Sunday, 7 p.m. DESMOINES (Iowa), Sept. 22. The National Farmers ’ Holiday Association to-day voted to declare a farm strike on all products and ask the cooperation of labour if its demands, embodied in N.R.A. codes, are not complied with by the administration. Substantial Increases in Farm Prices ADMINISTRATION’S OBJECTIVE

Received Monday, 12.45 a,nr

WASHINGTON, Sept. 23.

Substantial increases in farm prices during the next two months were on Saturday marked off uj the goal of the Roosevelt administration through an extension of the cotton loan plan to drive farm-purchasing power upwards. Production control will be. definitely