Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-05
PRESIDENT INVITES
| BIPARTISAN GROUP
Farley With congressman to
Seek Slump Solution Is Set
for Tomorrow.
Continued From First Page.)

employment relief, the report hits at
compulsory employment insurance as
tending toward the system Of doles.
In declaring, too, that "it Is proper
and that wages should increase, as the
productive capacity of the Nation
grows" it inferentially deprecates the
present agitation for shorter work.
ing day, warning that "any extremely
radical or abrupt change in the hours
OF labor may bring great economic
harm"
Uncurbed speculation as a contribu-
ting cause to the present depression
also comes under fire, the committee
urging that commodity and security
exchanges take constructive steps to
prevent and control manipulative ac-
Invites, either upward or downward"
One of the functions of the economic
council would be to sound a warning
lin times of great speculative activity"
Likewise, consideration should be
given the committee holds, to the adop-
ton of more stringent regulations af-
fect1ng the extension of credit to the
end that temporarily prevailing prices
OF securities and other property should
not be the basis Of credit extension by
banks and ether financial institutions
Another cause of the depression is
traceable to the World War, the report
says 1t is urged that every effort be
made to press for disarmament, the
committee recommending that the
United States take leading part in
the forthcoming arms conference.
Enough holding that a reasonably
prosperous agricultural population is
necessary for national welfare, the re-
port does not 60 far into this subject.
In asserting the necessity for a
change in the antitrust laws, the report
says that 'only through proper CO.
ordination of production and consump-
tlon can a sane, orderly and progressive
economic life be developed"
Business Must Be Sound.
Under our form of industry a large
part of the national income is distrib-
uted through the instrumentality of in
dustry and business. the distribution
oelng In the form of wages, salaries.
rents. interest and dividends" the re-
port says. IF then, as is to be desired
industry is to pay out high wages to
people working a reasonable number of
hours and Is to set up reserves in time
OF prosperity for unemployment benefits
ana 70 provide means to care for acct
oentS. sickness and old age. business
must be on sound basis, and produc-
tion must be balanced with consump-
ton.
MANY producers would prefer to
gauge their output to the consuming
capacity and divide the volume of such
production among the different units of
INDUSTRY on an equitable basis. But they
cannot do this today because of the
ever present risk of mourning the penal
ties OF the antitrust laws which suit
able as they may have been for eco
nomic conditions of another day, are
not entirely in consonance with the
preSent-day needs of industry.
II is not suggested that the present
antitrust laws be repealed but IL is
suggested that they be amended to pro-
vide that business concerns desiring to
enter into contracts for the purpose of
equallzing production to consumption
and so carrying on business on a sound
basis, provided that such contracts are
MEG with some governmental authority,
such contracts to take effect and to re-
main effective unless the governmental
authority having supervision finds on
ltS own initiative or on complaint that
such agreements are not in the public
interest, In which event such agree
mentS would be abrogated; and permit
tlng businesses that desire to combine
to ind out from some suitable govern
mental authority before the combination
is made whether or not such combina
ton Is prohibited by the antitrust laws
We do not suggest the details of
legislation but we do feel that such
agreements should be made. not only
with the fullest publicity but under
supervision Of some governmental
authority which should, either upon its
own initiative or upon complaint, have
the right to review or annul such agree
merts. Business prosperity and en-
ployment will be best maintained by an
mteliigently planned business structure
Which anords fair opportunity to
make reasonable profit through pro-
ouctive activities, but we emphasize
again that If this permission is to be
granted 1t must be accompanied by
such reasonable governmental regula-
lions as will prevent extortion and
unfair business practices"
On the subject of the economic
council, the report says that it should
be an advisory body rather than
planning board with functions like
those of the War Industries Board. the
feasibility of which. as we'll as the
constitutionality in peace time, would
be doubtful
The council, it said, should devote
itself to the study of such questions as
the following:
The tendency of productive capacity
to outrun ability to buy; the levels of
wages; foreign trade, both export and
import; in what way and by what
agencies authoritative information and
statistics can be gathered and pub
liShed so as to be the most useful
guides to industry,
Other Problems.
Agriculture, transportation, credit
and finance are other subjects that
call for consideration, the report says,
adding:
In order to speak with the authority
desired, the council members must not
only be of the highest ability and
character, but they must also be rep
resentative of the country as a whole
and not of any particular constitu-
ency, and they must be so appointed
that they will be entirely beyond sus-
picion of control by any group. The
council should be small, three or at
the most, five members.
1T should be so financed that it
can set up an ample staff of economists
and Statisticians, and it should call
to its aid representative committees
from various industries and professions.
1t should be charged broadly with the
responsibility OF proposing policies and
measures that will contribute to our
economic well being. 1t should be asked
to make preliminary recommendations
as promptly as possible. but it should
be insured ample time to demonstrate
its usefulness
The council, the report suggests,
should be formed by larger appointive
board invited by the chamber to act.
On this latter would be represented the
chamber, Department of Commerce,
Labor, Agriculture, manufacturing, rail-
roads. banking, public utilities, dis
tributive trades. law, engineering and
professional economists.
The basis for unemployment relief
suggested by the committee is the So
called Rochester plan," which proposes
the setting up by concerns of a reserve
fund for contingencies of this nature.
While it is not recommended that en-
ployes, by their contributions, aid in