RECOVERY PLAN

New Zealand Herald, Volume LXX, Issue 21640, 4 November 1933, Page 8

RECOVERY PLAN

TRIAL IN AMERICA BENEFICIAL EFFECTS SEEN EARLY HOPES TOO OPTIMISTIC WEAKNESSES BEING REMEDIED " There is very definite evidence that the National Recovery Act in the United States has played an important part in improving general trade conditions," said Mr. J. David Larson, trade | counsellor to the Los Angeles Chamber of Commerce, who arrived by the Monterey yesterday on his second visit to New Zealand this year. "The plan may bo said to be a success in so far as it has increased employment and decreased cut-throat ( competition. " Eighty-five per cent of the employers in the United States are now operating under codes of maximum hours, minimum wages and fair practices, said Mr. Larson. "Child labour has been abolished and 'sweat shop practices eliminated. These reforms have been accomplished in a comparatively short time and should result in better In ing conditions and a more contented ] -•ople. Employment and Wages "From March to August employment jn the United States rose 29.9 per cent, while pay-rolls increased 55.4 per cent. Employment in August reached the highest point in over two years. Payrolls were the largest since December, 1931. Some business leaders point out, however, that a great deal of this increase began before the National Recovery Act was placed in operation and that it represents a natural improvement in world business and voluntary increases of wages before the Act undertook to stimulate both by mass action. " According to the Labour Bureau's index of manufacturing employment there has been a continual improvement since a year ago, when the index showed 65.0, as against 71.6 in August this year. Pav-rolls improved from 36.3 to to 51.9. " While pay-rolls have increased, there also has been an increase in commodity prices. The cost of living has risen 7.*6 per cent from the low point of April of this year. Retail sales nave increased throughout the nation, and department stores show an improvement of 52 per cent over 1932. Isot all lines have recorded such increases, but there has been a improvement in almost all lines. Large Number of Strikes " The tremendous effort of placing 120,000,000 people under the Blue Eagle is not without its difficulties. Human nature asserts itself. It is not surprising that there should be clashes between union labour exponents and non-union operated industries. As a result, during the first throe weeks in September there were 254 strikes called, as against only 33 during September, 1932. The causes in most cases were due a demand of recognition of unions. The number of working hours and rate of pay die not enter the controversies. These had been settled in the National Recovery Act*codesi. Thus the country sees the spectacle of strikes while hundreds of thousands seek an opportunity to work. The strikes, however, have been of short duration in most cases, because of the intervention of_ the State and Federal Governments in effecting satisfactory settlements." There seemed to be a general sentiment throughout the United States that the National Recovery Act had been helpful, said Mr. Larson, but it had not accomplished all that was expected of it by its framers. Probably too much was expected. Some of the weaknesses of the Act were now becoming evident and were being remedied. As the mistakes of judgment were discovered they would be corrected, and out of a corrected plan would probably come greater benefits for all the people. President Roosevelt's plans for promoting trade reciprocity with other countries were not likely to be abandoned, notwithstanding the plea of some people for an ultra-nationalism.

STIMULUS TO BUYING RESPONSE TO CODE SPIRIT The fine thing about the recovery plan is that the responsible organisations are co-operating," said Mr. L. C. Morris, foreign sales manager tor the Union Special Machine Company, Chicago, who arrived from Los Angeles by the Monterey yesterday. After concluding business in Auckland Mr. Morris "will proceed to Australia, the I 4 ar Kast and Europe. As ihe> spirit of the code was applied, even before actual codes were framed, a wave of buying set in, said Mr. Morris. Then a reaction occurred, but now, he understood, there was an increase in buying again. The eventual result of the National Recovery Act would be an increase in the price of all commodities, which would be reflected right down the scale to include machinery. A factor in the stimulated buying had been a ferr of pending inflation. In the factories of his own company the hours of work had been reduced from 49 a week to 40, and within two months the number of employees was about doubled.

" PLAN A 810 SUCCESS "

NEW ZEALANDER'S IMPRESSION

"In my opinion the National Recovery Act is a big success," said Mr. Frank B. Clark, managing director of Francis Willey (N.Z.), Limited, of Christchurch, who returned by the Monterey from Los Angeles yesterday after an extensive tour abroad. Mr. Clark said there was no doubt a very large percentage of the American people wen--endeavouring to assist President Roosevelt in the prosecution of the recovery plan. '