RECOVERY SCHEME HALTED

Timaru Herald, Volume CXXXVII, Issue 19571, 18 August 1933, Page 9

RECOVERY SCHEME HALTED

MR ROOSEVELT’S PLAN IN JEOPARDY FLARE UP OF LABOUR DIFFICULTIES United Press Association—By Electrlo Telegraph—Copyright (Received August 17, 10.5 p.m.) NEW YORK, August 16. A variety of unfavourable factors which are culminating, threaten President Roosevelt’s National Recovery Scheme. The severest shock the plan has received is the extreme difficulty of formulating trade codes for four giant American industries—petroleum, steel, coal and automobiles. Moreover, labour difficulties are seemingly flaring up again on diverse fronts. Sixty thousand dressmakers went on strike to-day in New York City, against what the union leaders called “sweat shop conditions.” It is impossible also to reach an agreement with 10,000 fruit pickers, who are demanding in most cases, a double wage scale. Basic Barrier to Solution. The basic barrier to the codification of the four major industries seems to be the desire of these industries, particularly petroleum, for some form of Government fixing of minimum prices. Other individual difficulties include a dispute between labour and the management in the steel industry, the first apposing, and the second upholding the company unions, as against the trade unions. The automobile code is being delayed, due to the present failure of Mr Ford to indicate his attitude in a field, where he is one of the greatest employers of labour in America. Commodity Prices Drop. A further. serious blow to the President’s hopes occurred to-day, with a sharp drop in commodity prices as the pegging regulations of the Chicago Board of Trade were withdrawn. The accumulation of selling orders caused prices to collapse. No support developed during the day, and wheat closed off about five cents., corn and flour grains proportionately. Is Inflation Inevitable? New York Stock Exchange's prices weakened sympathetically, and closed off by one to five points. The continued strengthening o f the dollar, in terms of foreign currencies, with a corresponding weakening of domestic commodity prices, is causing concern. There is a growing demand for out-right inflation. However, President Roosevelt is reluctant to tinker with currency, unless absolutely necessary .