NATIONAL RECOVERY
THE AMERICAN DRIVE CRITIC PREDICTS FAILURE. VANCOUVER, August 23. The National Recovery Agreement has had a couple of sharp jolts. _ Senator Schall, a hard-headed Republican business man of Minnesota, alleges that it will shortly "accomplish the complete paralysis 'and destruction of business." He said that five North Carolina textile mills had been closed, throwing hundreds out of work, because.,the operators were unable to meet the processing tax and' the textile code, and added that these closings were the first of a long list of shutdowns which the agreement would certainly cause. Curiously the National Recovery Administration has announced that they will move immediately to assist in financing firms which are facing trouble because of the increased code expenses. In this connection General Johnson has complained that the banks are failing to loosen credit. A recent bank call shows only 48 per cent, of bank deposits given over to loans and discounts, compared with 53 per cent, last new year, and 53 per cent, a year ago. The second warning about the agreement came in a big type front-page complaint in the Hearst papers that overzealousness by the Administration is imparting a new nervousness among' business leaders. Mr Hearst accuses General Johnson's understudies with having gone hysterical over the importance of the codes, at the same time ignoring natural factors in the economic situation making for recovery. The Hearst comment concludes: "If private property is to enduce, then progress must be made through a real partnership between the Government and business as President Roosevelt indicated, and not through a policy of, bullying and browbeating business, which merely revives the doubt and fear which create business depression. Theorists at Washington should bear in mind that business is motivated by profits. If profits are to result, business must not be asked to adjust itself to radically new social conditions too rapidly."
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Bibliographic details
Otago Daily Times, Issue 22051, 6 September 1933, Page 7
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310NATIONAL RECOVERY Otago Daily Times, Issue 22051, 6 September 1933, Page 7
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