UNITED STATES

Poverty Bay Herald, Volume LXI, Issue 18353, 22 March 1934, Page 10

UNITED STATES

“ECONOMIC SUICIDE” COMMERCIAL MAN’S FEARS Mr. Robert W. Johnson, chairman of directors of Johnson and Johnson, Limited, and a citizen of Princeton, New Jersey (U.S.A.), who arrived in Sydney by tli# Strpthnaver, said that under the Roosevelt Administration the United States was committing economic suicide. It would take at least a. quarter of a century, ho said, to overcome the extravagance of this Administration and the expenditure on the war. Since March last the Government outgo was between 16 billion and 17 billion dollars. The greater part of this expenditure was by way of loans, and the amount which would be repaid was open to grave question. The war must have cost the United States at least 40 billion dollars. The Roosevelt policy was economically unsound, and the many Americans who praised it- were not realists. “Before the Presidential election the nation as a whole was fanatically in favor of a change,’’ said Mr. Johnson. “One had to be sympathetic with that view because of the difficulties _ with which the nation was faced; but it lias since been proved that a change of faces did not change economics. There are, however, some, good phases in the National Recovery Administration. It is one of tho greatest conceptions in the world. Modern society cannot exist much longer without something of its type ; but the execution of the plan has been so ineffectual to date that results have been very limited.’’ EXPORT BUSINESS Mr. Johnson said there was a belief abroad that America had great plans fur oversea export, but the majority of her bankers, industrialists, and business men bad a purely domestic philosophy. Less than 10 per cent of America’s annual production was exported. Of this quantity 4 per cent, was cotton and 21 per cent, motor cars. . All the recent economic programmes in America- mitigated against the development of export business. The American programme was in the direction of a self-contained eepnomy, and if any nation could attain this it was America. “England is following the soundestcourse* and has been for several years.” Mr. Johnson added. “She is living within her means, or nearly so. More so than any other country.” Mr. Johnson said that as far as America was concerned lie advocated a six-hour day in a five-day week, with minimum pay of 50 cents an hour. He would not attempt to dictate these con-

ditions for any other country but bis own, but be firmly believed, as a big employer of labor, that in any country there must be an industrial day of the number of hours that would put all the unemployed back to work. He also believed that the earning power of the industrial employee must be at least equal to what it was when he incurred his debts, and bo sufficient for him to consume the products he produced. “We can’t manufacture products if the public can’t afford to buy them,'’ bo said. “This is not Socialism, but enlightened self-interest. It can only L-e accomplished by efficient and intelligent private ownership. The modern democratic bureaucracy is incapable of efficient industrial management.”