Montana labor news., 1932-06-30
PRESIDENT THOMSON OF SCHOOL
OF MINES MAKES CONSTRUCTIVE
ADDRESS AT LABOR GATHERING
NEED FOR ECONOMIC READJUsTMENT EMPHASIZED.

The outstanding feature of the second morning session of the 35th annual
convention of the Montana State Federation of Labor was the address of
President Thomson, president of the Montana State School of Mines, on
present economic conditions.
President Thomson stated that the present unemployment situation is
more or less a direct result of the intensive development of machinery dur
ing the war period. At the beginning of the industrial revolution the de-
veopment of machinery "a not a serious problem, due to the creation of
new industries that re-empoyed the men displaced by machinery. The
equal balance va destroyed by the rapid developments during the World
war. Today we face the situation of increased production and with it in
creased unemployment.
President Thomson also stated that it il our moral responsibility to bring
about some readustment whereby the great army of unemployed might be
gainfuLy occupied in creative enterprise. President Thomson presented
the following solution to our present economic problens'
"A recognition of the fact that even a without hesitation we borrow
money IN the national credit for purposes of war, Sc in times such IS the
present we may properly use the national credit to start the wheels Of
industry which seem frozen in their bearings
Surely, to quote again John Maynard Keynes, who so accurately pre-
dcted "The Economic Consequences of the Peace" we may spend on the
enterprises of peace what the maxims of the past would permit us to spend
only N the devastation of war We have endless millions Of money boarded
in banks and elsewhere and the problem is to put this money to work. At
the present time deposits in the banks of the country are in excess of 10
billions and the amount has grown rapidly throughout the depression.
Merchants ire losing markets and lei are losing jobs because these dol
lars are idle. In the present frame of the public mind, government is the
only agency which can put these dollars to work.
"A constructive program of public works, free from political jobbery and
bng-roling will restore public confidence and restore private spending
and the circulation of money.
ITO quote Keynes once more, The voices which in such a conjuncture
tell us that the path of escape is to be found in strict economy and in re-
framing wherever possible from utilizing the worlds potential production
are the voices of fools and madmen'
"f we are going to emerge at all from The valley in which We ar now
travelling, such a program will hasten our emergence. If we are not it will
at least postpone the collapse of our civilization.
Second, either rearrange our tariff structure so that those nations who
owe us great war debts and cannot pay them in gold may have an oppor-
tunhy to pay them in such goods a will disturb our own production IS little
as possible, or cancel the debts entirely
Third, increase the amount of money in circulation, not by a wild issue
of fiat money, but by carefully controlled initiation through issuance of adj
dtional Federal Reserve notes for which there is more than ample gold
backing, o perhaps better still through the purchase of silver in properly
limited amounts and the issuance of further silver certificates making them
legal tender unless otherwise specifically contracted. This latter measure
would have the added advantage of stimulating Oriental trade and of aid
ing the western silver mining states.
Fourth, endeavor to adopt a program which will increase the sefreh-
ance of the small farmer from the American scene, this not only because of
anec of the small farmer from the American scene. this not only because of
its economic consequences, but because we need the sturdy type of American
citizenship which roots in the soil as it does nowhere else.
"These are all measures which lies within reach of intelligent legislative
action In IN near future If the majority o. the American people care to
unite in support of the plan.
ultimately, W shall probably move in the direction of economic plan
ming, with provision for elimination of the more wadeful forms of compe-
ttion, for continuity of employment, and for some form of voluntary in
surance against loss of employment, in which, however, the Industrious
workman must be protected against being assessed for the support of the
shitess.
leaders of industry, both labor and capital are nearer to it than is the
government. Economic planning can be achieved only by the closest CO.
operation Of industry and government, and government must be cleaned
and modernMed before either labor or capital will be willing to trust it in
aiding the intelligent cooperative control of production and consumption.
"To this end the Federation of Labor both in Montana and throughout
the nation as a whole must ultimately make a great contribution if we
are to steer clear in the future of such morasses as that in which we are
at present mred. And believe labor will do it,"