Evening star., 1923-04-03
URGES EXPANSION
Of STATE BUREAUS
Committee on Unemployment
Makes Recommendations
to Relieve Depression.

nublic utility construction in times
Of depression, use of unemployment
funds and expansion Of federal. state
and farm employment bureaus are
among the recommendations con-
tsined in a report Of the special COM
slittee on unemployme from the de-
preston in the business cycle, made
public yesterday BY Secretary OF Com
slerce Hoover. owen d. Young
sresident Of the General Electric
tompany headed the committee.
which also included J. II: Defrees:
formerly president of the Chamoer OF
Commerce Of the United States; Mary
Van Kleeck of the Russell Sage
Foundation. Matthew Won OF the
American Federation of Labor. car
ence NJ. Woolley of the American
Radiator Company and Edward Eyre
Hunt, secretary.
Better Control OF Credit Urged
BETTER control of credit against over
expansion and speculation through
individual banks and the guidance or
business itself by danger signals OF
over expansion are fundamental, the
committee pointed out The commit
tee considers that before the banks.
business men and others can take
constructive action in the enlightened
conduct of business there must be re-
cruited and constantly disseminated
the fund mental information on
which the trends in business can be
properly adjudged by each Individual
business man. Recruiting of enlarged
and more systematic statistical in
formation by the Commerce Depart
raent and its wider dissemination
were strongly recommended.
Services of more than 200 employ
ers. labor leaders. economic experts,
financial advisers and social workers
were enlisted by the committee Sec
retary Hoover requested that they
make an exhaustive investigation into
the facts and causes OF periodic OuSl-
ness depression and see II suggestions
could be made of remedial steps tnat
might be taken by the business com
munity TO avoid such Interruptions to
prosperity and employment.
Double Burden In Boom Period.
Attention was called by the report
to the fact that the ebo ana now III
demand for consumable goods Is less
comfortable than that Of construction
of buildings and equipment, both gov
ernmental and private; that the ten
denotes of boom periods is 10 thrust :
double burden on the community or
providing for increased consumable
goods and at. the same time under
taking the larger burdens or CON
struction: and that, therefore, the
construction industries are to some
and flow Of business boom and de
preston.
At the present moment, the COM
mittee said, the Federal ReserySe9 cry
than is necessary to support the
credit machinery Of American COM
merce. The suggestion was maze
that consideration be given 10 ear :
marking special reserve of this
gold as against probable future gold
Shipments from the United States and
thus accomplish the double purpose
OF preventing both temptation to in :
f1ation of credits on the basis OF this
surplus gold supply and at the same
time the great embarrassment of pos
sibIc financial credit difficulties
that would arise if foreign drafts
were made upon the gold. which had
been used as credit basis. The
committee proposed issuance of a
QUESTIONABLE to business men, bankers,
managers Of public utilities. wage
earners and public organizations
with a view to stimulating organized
considera ton and inquiry.
Better Understanding Necessary.
Stress is laid upon the necessity
of better understanding of the bust
ness cycle of business executives gem
orally. The committee concludes that
preventative measures must lie in
the better handling of business in
due to over expansion, imitation. loss
of efficiency. waste and extravaganza
in the boom periods, and that there
fore the first point of attack on the
problem must he more informed ac-
ton by iadf.idual business men in
periods of rising markets in order that
excessive expansion may be prevented
and tnt. extent of. the decline reduced.
In :,rcword to the report Sccrt-
tary Hoover says:
Il am confident that it represents
n definite advance IN economic
thought and offers practical constru"-
tive suggestions that should make
for progress.
The report does not suggest pan
aceas or economic revolution, but
Sc, : to drive home the facts that
the enlargement Of judgment in in
diNidual bGSi1cS mon as TO the trend
Of bu&In, .;s ard consequent widened
vision as 70 approaching dangers
will greatly contribute to stability
and that the necessary Information
upon which such judgments can be