Evening star., 1933-07-09
Production and Employment.

Unless increased employment travels
along at the side of increased produc-
ton it is clear that consumption OF
products will not be able to keep pace
with the output Should such a con-
dition arise when huge stocks OF goods
are on hand without purchasers, the re-
covery of business which has been on
the way during the past two months will
come first to a standstill and later busi-
ness may take another nose dive into
prolonged depression. President Roose-
welt and his administrator OF the in
dustrial recovery act, Gen. Hugh s.
johnson. are giving much thought and
attention to the fact that the reports to
date indicate there has been in many
lines a greatly increased production
without a corresponding increase in
employment and wages.
In some quarters it is charged that
producers and consumers are deliber-
ately speeding up production in order
to avoid the higher costs of production
and materials which are expected to
follow the setting up of the codes of
fair competition under the Industrial
recovery act. In others it is pointed
out that manufacturers, if they receive
orders for goods from their customers,
naturally must fill them as speedily as
possible.
Manufacturers and wholesalers and
others who purchase from the producer
must bear in mind, however, that they
are in danger Of killing the goose that
lays the golden eggs if they undertake
to speculate and to overproduce in order
to beat the national industrial recovery
act and its operation to the starting
line The Government has through
that legislation set up plan for aiding
industry. It is designed first If all to
increase employment, to raise sages. to
increase production and to aid IN bring
ing the people back to prosperity. If
selfish desire for immediate gains at the
expense of the success of the whole plan
is permitted to prevail, the plan can
not succeed.
Gen. johnson has frankly warned In
dustry that the cart must not be placed
before the horse-that production must
not oustrtp employment and the pay
ment of wages. If it does then the day
OF reckoning is not far distant. Pro-
duction without public able to con-
sumo is dead weight around the neck
OF any country-not an asset.
In the adoption Of the codes Of fair
competition under the provisions of
the recovery act there is need for care
full consideration, for the adjustment Of
many differences Of opinion for COM
promises. But there is also need for
speed. This Is no time for industries
to dlly-dally or to split hairs in the
adoption of codes. 1t is no time for the
Government itself to delay in passing
upon codes submitted. The necessity is
for action before 1t is too late That in
effect is the warning issued by Gen.
johnson to industry when he speaks of
production outrunning employment OF
labor.
Under the codes of fair competition
1t is expected that employment will be
greatly increased, and also that some
check will be placed upon production.
Admittedly the whole plan is an ex-
pertinent in the management of indus
try. It's conception and adoption by
the Congress and the President have
given the country hope. But it has
offered industry a chance to fight its
way back from the depths of the de-
preston. If industry turns it down,
industry will show itself short-sighted
beyond the ordinary. It is easy to talk
of increased orders and returning pros
perity and to view these increased or
ders as sign Of returned prosperity.
But unless the market for the products
is created increased production becomes
worse than no production in the end
The only way that permanent market
can be provided is by increased en-
ployInent Of labor and a greater dis
tribution of the earnings Of industries.
Cotton planters are ready to plough
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