INDUSTRIAL RECOVERY

New Zealand Herald, Volume LXX, Issue 21616, 7 October 1933, Page 14

INDUSTRIAL RECOVERY

CAMPAIGN IN AMERICA SPREADING OF OPTIMISM The opinion that New Zealand could hardly do better than follow in certain respects the example sot by the national recovery campaign in tho United States was expressed yesterday by Mr. M. J. Kelliher, who returned by tho Mariposa after a holiday visit to California. The .Roosevelt administration, Mr. Kelliher said, appeared to have the undivided confidence of the people and most business men were regarding the future with healthy optimism. "in the gigantic experimental measures of tho National Industrial Recovery Act there are many features of world-wide importance," said Mr. Kelliher. "There js a distinct movement to bring North and South America into tho closest possible relationship regarding tho exchange of manufactured goods for primary products. This movement is in marked contrast to tho Imperial outlook as disclosed in the recent quota controversy. Not only are negotiations practically completed between tho United States and several South American Republics, but there is every indication that Canada will make fiscal and industrial adjustments to retain the United States markets. "in the United States, in order to provide work, create fresh avenues of employment and restore tho spending power of tho worker, £650,000,000 has been made available. Already, according to the Los Angeles Chamber of Commerce, nearly 4,000,000 men have gone back to work, and it is expected that 8,000,000 will be absorbed by Christmas. In San Francisco alone the recovery plan provides for tho huge expenditure of over £30,000,000 on public works. Workers are employed at standard rates of wages. "Another measure entirely at variance with our own ideas is the Agricultural Adjustment Act. Its object is to increase prices by reducing supplies, and huge sums aro to be spent to compensate farmers for taking land out of production. Whether this will succeed or not remains to be seen, but we in New Zealand need not look to America for a market for our produce. It stands to reason that no Government would pay millions to leave land idle, and at the same time permit tho importation of foreign produce. "Although a comparison between tlie two countries is quite impracticable, New Zealand could loarn much from some of the measures' taken by the Roosevelt Government. A complete substitute must be found for relief work as we understand it to-day. America is attempting to solve the problem by mea-ns of a comprehensive public works programme and by encouraging nationwide commercial and industrial revival. "President Roosevelt has let it be known that if the various recovery codes are found to be inadequate to put all men back to work at standard wages and to restore commodity prices other experiments will be tried, not excluding rational currency inflation."