VITAL ISSUE

Taranaki Daily News, 3 June 1935, Page 5

VITAL ISSUE

NXA. DECISIONS GOVERNMENT’S RIGHTS POWERS OF REGULATION ACQUISITION NECESSARY CHANGE IN CONSTITUTION By Telegraph—Press Assn,— CopyrightRec. 5.30 p.m. Washington, May 31-. The Supreme Court’s decision on the National Recovery Administration as the vital political issue facing the American people was dramatically presented by President Roosevelt in an hour-long Press conference to-day in which he said in effect that the Government must either acquire the right to regulate economic and social conditions or the nation would go back “horse and buggy” to the days of 1789. Without saying so in as many words the President made a clear bid tor an amendment of the constitution to legalise the reforms undertaken under the N.R.A. To substantiate his argument he frankly admits he feared that the Agriculture Adjustment Act, the Securities Exchange Act and the stock market control legislation were unconstitutional and, in fact, that the whole of the “new deal” was dead unless the constitution was liberalised to meet present-day economic conditions. y . He made no mention of reform legislation pending in Congress such as the Social Security Act, the banking legislation, the Wagner Labour Bill and other measures, but it was obvious that the implication was that there was no use in passing them unless constitutional objections could be met. The President presented no concrete outline of wishes for constitutional reform, but stated that he believed such changes were imperative and that he was prepared for a five or even ten years* fight to bring them about. ' • • HISTORICAL DISCOURSE. The discourse to newspapermen was historical. It was the first time in the memory of any of those present that a President of the United States had outlined without reference to a manuscript an issue so important to the nation. He spoke casually and usually with a smile, but this did not mask the serious trend of his thoughts. : .. , Only once he made a direct criticism of the Supreme Court, pointing out with some asperity that the court oa occasion had seen fit to recognise mining as an industry in inter-State commerce when it supported ' injunction suits against miners, although it now ruled, differently when the question of miners wages and working hours was raised. President Roosevelt showed newspapermen a bundle of telegrams from business people pleading that something be done to preserve the N.R.A. and to protect their businesses against price-cutting and other unfair trade practices. After reading some of them the President quietly said he considered the Supreme Court’s decision was the most important made since the decision which precipitated the Civil War. INTER-STATE COMMERCE. i Much of President Roosevelt’s arguments centred around the so-called .inter? State commerce clause and the limitation the Supreme Court put upon it. He contended the interpretation had been progressively widened under changing economic conditions . mder which the whole country would become completely interdependent. Under this he said the National Industrial Recovery ■ Act had been drafted, hoping a reorganisation of jurisdiction would- be permitted so that harmful practices by one section could be prevented by Federal action -on the grounds that they would be harmful to another section. While the President wa» making his extraordinary "statement Congress N.R.A. offices and other branches of the Government received an avalanche of protests that wages were being cut and hours of "work Increased and that pricecutting was spreading. Garment and textile workers added a strike threat to that already voiced by the miners. Leading employers appealed for a voluntary continuation of the code standards, but apparently there were enough “chisellers completely to unbalance the price, wage and hour structure. ' The Presidents suggestion that the AAA. might be unconstitutional sent Commodity prices tumbling, cotton losing four dollars a bale and wheat almost a cent a bushel. Security prices are also lower.