WILD CONFUSION

Waikato Times, Volume 117, Issue 18589, 30 May 1935, Page 7

WILD CONFUSION

NEW DEAL IN AMERICA.

RESULT OF COURT DECISION.

PRESIDENT WORKS 'FRANTICALLY

United Press Assn.—Elec. Tel. Copyright,

NEW YORK, May 28.

The wildest confusion has followed Invalidation by the Supremo ‘Court of the N.R.A. codes and other features. 'Surrounded on all sides by wrecked hopes and exploded theories, President Roosevelt and his advisers have worked frantically in Washington to devise a way of rebuilding the New Deal structure along constitutional lines.

Immediate concern 'has centred around proposed changes in the agricultural adjustment administration law which was to have been amended in the interests of large-scale marketing and licensing schemes. These now are clearly unconstitutional. The 'Utilities Bill, which gave the President wide powers over holding companies, also fell under the shadow of J unconstitutionality. The Cotton Control Act, the Wagner Labour Bill and the Banking Bill are also threatened.

The fear is expressed also that the Court next will declare to be unconstitutional another vast field of new deal legislation based upon the taxing powers of through the exercise of which .the 'Federal Government encroached upon fields specifically fenced off against it or reserved to the Stated.

Effeot on Industry.

The leaders of representative industries indicated to-day that they would endeavour to preserve the wages scales and working hours provisions of the N.R.A. codes in spite of the invalidating decisions of the Court. On the other hand there are reports of retail price cutting in the tobacco and liquor industries. The officials of the United Mine Workers’ and United Textile Workers’ Unions, two of the largest in the country, state that they will order strikes if the employers try to return to the wages, hours and conditions prior to the N.R.A. ' , ■

Wall Street was confused to-day. The stock market opened to tremendous trading at a rate of 4,000,000 shares for the day although this slackened. Stocks dropped one to six points in the afternoon under a heavy selling wave.

A ORUSHING BLOW.

REGULATION GF LIQUOR

IMPETUS TO BOOTLEGGING

United Press Assn.—Elec. Tel. Copyright, WASHINGTON, May 29.

One of the indirect but nevertheless crushing blows which the decision of the Supreme Court declaring the N.R.A. Codes unconstitutional has given is to the vital regulation of the nation’s two billlon-dollar liquor business. All the regulations governing liquor advertising, labelling, standards and six N.R.A. liquor codes—five of which were imposed by order of the President —were held to be definitely eliminated. Now It is feared that both bootlegging and merchandising of inferior liquors will receive a strong inipetus.