Evening star., 1929-12-01
EXPERT OUTLINES
RELIEF PROCEDURE
MaIIery Tells How Towns
Through Building Projects
Can Aid Stability.

(The Federal Government is bend
ing eUery effort to keep prosperity up
to the leUel that America deserves.
What can you do to help? The
GnSiUer is giUen belou By the Ma
tton's most noted specialist In the
use OF public works for the relief
OF unemployment. Otto T. Mdllerp
OF Philadelphia has ,Dorked for years
in close association NTH President
HooUer's committee set up tDhen he
1Ods Secretary of Commerce. He tods
member of the Presidents confer
ence on unemployment in 1921 and
erecattUe secretary of its committee
on public iUorkS. In this dispatch he
tells simply and concretelv just UIldt
the individual community can do for
prosperity
BY OTTO r. MALLERY.
PHILADELPHIA, November 3O-Why
has the President in his conference at
the White House laid such emphasis on
speeding up public and private con-
Struction? Because small increase in
construction in each town will help
stabilize business and employment
throughout the country. The total de-
crease in general business II the Presi-
dent and industrial leaders had sat idly
by and done nothing, might have
amounted to 6 per cent or so. This
drop can be prevented, or compensated.
One essential step is that every town
shall increase its construction slightly
over 1929
The few men employed on any one
job or in any one town are important
only because the materials they use
cement, brick, wood-will set others to
work in factory, mine and in tranSpor-
tation. The wages Of these groups buy
hats, textiles, leather goods, ETC., anG
thus put a third group to work. The
wages of this third group are expended
for products which require fourth
group to go to work to make them.
Thus construction money is soon spent
for a thousand commodities that have
nothing to do with public work. for
instance, chocolates, copper telephone
wire, teddy bears and soap.
Nation Is Economic Unit.
The United States of America is one
economic unit. The Mississippi floods
decreased the purchasing power of the
people of New York, of California and
Ohio. This was because the people in
the flood area were unable to buy as
much of the goods made by the people
of New York, California and the rest Of
the country.
The starting of the Boulder Canyon
Dam on the Arizona gives employment
to peopIe in Pennsylvania and Michigan
in making motor trucks, ShovelS and
machinery. The wages OF the people
at work on the dam will be spent Tor
articles made in Georgia, and Maine,
for instance, dress goods ana the paper
they are wrapped IN. r.
small building more than you built last
year will do what the Boulder Dam
construction does for general stability,
only in a smaller degree. II that little
additional building iS built in Hisville
it helps Myyille almost as much as
though it were built in Myville for the
wages will be spent in part Tor tnc
products of Myville. suppose MyVlile
has three factories, one making SneeE,
one making stockings ana one making
electric wire. Doesn't it take the wages
earned in a hundred towns to keep
those factories going? II wages are
earned in every town they will be kept
going. otherwise not. No town can do
anything without helping your town.
Your town can do nothing without
helping other towns.
Whatever the Federal Government
does in cities a thousand miles from
you in road building, construction OF
public buildings, etc, cannot help out
! help your town. Nobody can 90 any
thing constructive without helping
others.
Traces Construction Money.
Consider tor moment the behavior
! OF money spent in public works. Econ
| omists tell us that about 80 per cent
goes direct into wages and tnat about
hall OF this is spent in retail stores.
The money received by the retail stores
is deposited in a bank. Deposits turn
spent on public works $50 goes for
wages. OF this $50, half goes for retai!
purchases But If this $40 is spent rs
of purchases for every 800 of public
works money expended. Not quite so
last. Call it 5000 because the wage
Garner pays the retailer, the. retailer
pays the wholesaler, the wholesaler
pays the factory, the factory buys raw
materials. and the materials man com:
Garner. So es thara ana pays Avs . stsns msg s,,
the series from wage Garner through the