AMERICAN INDUSTRIES

New Zealand Herald, Volume LXX, Issue 21577, 23 August 1933, Page 9

AMERICAN INDUSTRIES

PRESIDENT'S CAMPAIGN BIG DRIVE IMPENDING RE-EMPLOYMENT THE OBJECT BANFF CONFERENCE DISCUSSION By Telegraph—Press Association—Copyright (Received August 22, 5.25 p.m.) WASHINGTON, Aug. 21 The administrators of tho National Industrial Recovery Act, following their success with the steel and oil industries, have modelled a code of fair competition to bring tho bituminous coal industry quickly within the widening circle of tho Act. At the same time General Hugh S. Johnson, chief administrator of the Act, has appointed his aides for the* big drive, the house-to-house, store-to-store canvass that is to be begun next Monday with the object of placing the " blue eagle " in every window and ensuring victory in President Roosevelt's re-employment campaign. General Johnson himself, it is learned authoritatively, has tentatively fixed the middle of November, or the end of the year at the latest, to retire from the post he holds. By that time he expects that the emergency work will be finished and that a permanent administrator will carry on in his place. A message from Banff, Alberta, states that at to-day's session of tho confer- , ence of the Institute of Pacific Relations tho case of the United States and the National Recovery Act were to tho fore again. The purpose of the United States Government's action was said to be to try to establish a better equilibrium between agricultural prices and the prices of manufactures. It was considered to be desirable to return to the levels which obtained before 1929, otherwise the capital structure of the country could not survive. It was added in tho discussion that, there was a danger of the prices of manufactures rising more rapidly in tho United States than in other countries. To overcome this resort could be had to higher tariffs to prevent competition and a further depreciation of the dollar, or else the Recovery Act might be replaced by something else which would restore high prices. The United States spokesman said it would be easier if the other nations would work in the same direction.

The spokesman for Germany stated that efforts had been made in his country to make the currency stable and to bring about an expansion of credit in order to secure more employment for a long period. Subsidies and tariffs had made Germany self-sufficient in many lines of foodstuffs and there was now an export surplus. He was of the opinion that the action of the United States Government was more liable to cause conflict than the national recovery plan itself.

CONSTRUCTIVE EFFORT OVERCOMING WORLD CRISIS MR. HENDERSON'S PRAISE (Received August 22. 5.45 p.m.) LONDON, Aug. 21 " Only America is making a bold, courageous and constructive effort to overcome the world crisis" declared Mr. Arthur Henderson, in opening his campaign for the Clay Cross by-election. " Mr. Roosevelt's recovery programme follows the same lines as the remedy of the trades unions and Labour Party." NATIONAL RECOVERY AMERICAN EXPERIMENT ADVANTAGES AND PROBLEMS NEW YORK, Aug. 14 Dun and Bradstreets' business review pays a tribute to the National Industrial Recovery Act by declaring that families in all parts of the United States are fn possession of increased incomes, and" that stronger buying power is certain to develop under "the unrelenting. stimulus of vigilant Government measures."

" The haze which hung over general trade activities a week ago because of the confusion arising from the interpretation of the new codes and the appearance of restricted seasonal recession in scattered industrial divisions," says the review, " apparently has . been cleared. " Widespread enrolment under the ' Blue Eagle ' agreements has removed most of the hesitation as augmentation, of forces and resultant higher wages have dispelled all doubts of benefits to accrue from the acfoption of temporary or permanent codes." This does not mean that the miracle of revived prosperity is being achieved without complications and some terrific confusion, or without other signs of growing pains. Much anxiety recently occurred because it appeared that in textiles and some other industries every shelf and warehouse in the country was overtaxed with hew goods pushed out from plants before shorter hours and higher wages, meaning higher costs, intervened. What worries the cotton mill executives is finding that large distributors of finished goods are stocked to tho hilt, and to-day mills running under the code ai'e for the most part not running on present orders, but in the hope of future orders. An additional element of uneasiness is found in the heavy processing tax to meet tho Government's 120,000,000 dollars payment to cotton farmers for destroying part of tho 1933 crop. The tax amounts to 21 dollars a bale, costing 50 dollars. The processing tax will exceed tho capitalisation of many plants. From all over the country come declarations like this: "We aro trying to obey the President and the law of the United States, but nobody knows how this Avill all como out." From all points of the compass, signs multiply that before the end of August, there will be lively battles to coinpol recalcitrants to come in. " Tho proprietors of chain stores who violate the re-employment agreement had better watch their 'step," General Johnson at a newspaper conference to-day. " The removal of tho ' Blue Eagle ' from any establishment will be equivalent to economic death," he declared.