TRADE CODIFIED

Taranaki Daily News, 14 July 1933, Page 7

TRADE CODIFIED

great recovery scheme CONTROL OF INDUSTRIES TEXTILE PLAN ADOPTED WORK ON OTHER TRADES HOPES OF UNITED STATES By Telegraph—Press Association. Washington, July 12. With President Roosevelt’s signature attached to the so-called “cotton textile code” approving of a voluntary system for fair competition agreed upon by members of this industry under the provisions of the Industrial Recovery Act, the complicated machinery for the regulation of hours and conditions of labour in the chief manufacturing trades of America is believed to be finally in operation.

The textile code comes into force on July 17, and abolishes child labour, establishes a 40-hour week and fixes the minimum wage at 13 dollars in the North and 12 in the South. .Seventyseven per cent, of the cotton textile industries comes under the regulations, and the remainder must accept or they will be licensed and forced to accept it. The code provides for an increase in the average mill wage of 30 per cent, and a 25 per cent, reduction of hours. It is hoped that only moderate increases of prices to consumers will result and that 100,000 more persons than at the peak of 1929 will be employed in that industry. The code is expected to be the model for the remaining 7000 industries which are to come under control. The timber trade code submitted yesterday will probably be the second to receive Presidential approval. It provides for reforestation, an undertaking for the reduction of the maximum week from 48 to 40 hours, and a minimum wage of 224 to 424 cents an hour. The bituminous coal industry lias agreed upon a five-dollar a day wage, but its code is not yet ready for submission to the President. REDUCED WORKING WEEK. The New York City needle trades, the most important of the country, have completed their codes providing for 55 to 100 cents an hour wage and a 40-hour week, and they will probably shortly be submitted. There are under process of drafting at the present time codes for such diverse industries and trades as Steel, tobacco, petroleum, retail grocers, optical goods, ceramics, jewellers, chemist shops, lamp makers, printers and paper-makers. Eighty-five per cent, of the forest industry has approved of the timber trade code, and whereas it is expected that the pay-rolls at the beginning of August will be increased by 10,000;000 dollars it is not expected that much re-employment will result, although the industry is employing far below the normal of 750,000 now. It is interesting to note that the basic code issued on June 21 by Administrator Johnson stressed that the codes should aim to re-employ the numbers normally applied to each industry. Manufacturers should seek higher profits from increased sales rather than increased prices, monopolies or the oppression of small enterprises, and classifications of labour that would then fix the maximum wages as well as minimum wages must be avoided. That imponderables in the vast recovery scheme for industry are already giving President Roosevelt and his advisors much concern can be seen in the intimations to-day that, due to the lapse of time necessary before the working of even the first codes can be effective, it is proposed to press immediately for a blanket adoption by industry of a 35hour week and a 14-dollar minimum wage. It took a fortnight to frame the cotton textile code, and the great bulk of the industries have not yet even begun consultations. The first hope to get the nation’s industry codified within 60 days has virtually been abandoned. Moreover, In three weeks since the Recovery Act became law business has boomed in anticipation of price increases to an extent which the Government considers dangerous, since it is unaccompanied by increased purchasing power of the public, President Roosevelt, while pleased with the progress toward the establishment of Industrial codes in the United States,, is considering a blanket order to provide minimum wages and limited hours until the recovery programme goes into effect.