America To-day

Manawatu Times, Volume 64, Issue 161, 11 July 1939, Page 9

America To-day

LESSONS OF DEPRESSION Industrial America was experiencing difficult times in the present recession, but was coming through all right, thanks to tho lessons of the depression and tho manner in which they were being applied, said Mr. W. Gillanders,, formerly of Wellington, but for more than 20 years a resident of the United States, in an address to the Wellington Rotary Club. Mr. Gillanders is a financial counsellor in the United States, and his job takes him north, south, east, and west, so that he is familiar with most of the problems the American business man is facing to-day. The United States was a great industrial country, but industry was having its troubles, and there was a largo number of unemployed, he said. Tho President and others wero trying hard to get those men back on tho pay-roll, and, with the spirit of unity that was abroad to-day, ho believed it would bo done. The nation’s problems were not made any easier to solvo by tho conflict of authority that frequently arose between Federal and State Governments. The Federal Government had been so active that it had brought about a resurgence of State rights. For example, the Federal authorities had instituted a big work in connection with a great dam in New England; this activity had been resented by tho New Englanders as an infringement of State rights. Then thcro was trouble about which authority had tho right to reclaim oil in Texas and California when it was found over the three-milo limit. Sovereign Citizen.

Remarking that tho United States was probably the most democratic country in tho world, Mr. Gillanders said that tho citizens elected the officials. They even elected their Supreme Court judges, having a prejudice against appointing anyone to an office for life. There was always the spectaclo of the voter asserting himself as a sovereign citizen. After mentioning the manner in which unionistic labour had mobilised under two banners, tho A.F.L. and tho C. 1.0., Mr. Gillanders referred to splits which had occurred in groups of unionists, notably in tho automobile trade; but he thought that ultimately some definite form of social order would emerge as a result of tho adoption of a liberal philosophy, based on enlightened capitalism, in which men would bo regarded as human entities, not as machines. Mr. Gillanders said that tho four essentials of industry wero material, manufacture, merchandise, and men. He drew attention to world demand for raw material. Germany wanted those colonies returned that she had lost in tho Great War, because they had tho raw materials she lacked. Only a few years ago it seemed that every nation was aiming at being self-supporting, and was trying to seek sanctuary in isolation. Actually very few countries possessed all the resources needed in industry; they had to import some of them. It had been found that the principle of isolation was not possible in the world as it existed to-day, and that tho economic balance could ouly bo preserved when imports kept pace with exports—in other words, it was sound business to balance imports with exports. Elimination of Waste. “Tho American business man hates waste,” said Mr. Gillanders. It was a marvellous sight to se tho Ford works and those of General Motors, turning out hundreds of automobiles a day. Today the executive in these big works had a hard row to hoe. He had to go into tho cost of every item minutely, so that a groat system of cost accountancy had grown up. Ic was only through such a system that they were ablo to say exactly what an articlo cost, and for how much it could be sold to return a reasonable profit.

The business of the executive was to eliminate waste and, at tho same time, retain a high degree of cfficiencly. At one time you could see half a dozen vice-presidents to every bank; there was none of that now. They were down to tho knuckle.

Mr. Gillanders said that, with all the millions in the United States, there were not enough big men, men of brains with executive ability and character, character more than anything, to do the job. It had been found that of the great executives in America, 75 per cent, came from the country, from poor homes, and were the children of those who had Godly fathers and mothers. That was wtat character meant in business. Ho liked to think that membership of the Rotary Club stood for rectitudo in business.