Evening star., 1933-06-16
LEGISLATION OF BROAD SCOPE
PASSED BY EXTRA SESSION
Machinery for New Deal Is Placed in
Motion as Congress Carries Out
Roosevelts Program.

were increasing defation's downward
spin.
Imitation sentiment in Congress was
running a high temperature. 1t was
doubtful that it could be cooled per-
manently, even by frigid White
House.
Mr.. Roosevelt, with the quick assent
OF the majority of Congress, called for
1nf1ationary powers to use when and
If he saw fit At the same time he
made it plain that the country was
off the gold standard and that the
dollar could find its own level abroad.
Prices Rise.
A rise in commodities and securities
followed. But thus far the psychology
OF imitation has brought most of the
ascent for the greenbacks are vir-
tually non-existent and the gold dol
lar, theoretically, contains the stand
ard number of grains.
Prior to the imitation venture the
administration had launched it's farm
price-raising program. 1t Jumped many
OF the proposals Congress has talked
about since the war and gave Henry
A. Wallace, Secretary of Agriculture
power to try any or all of them
The President frankly described the
combination as an experiment. An ex-
pertinent 1t remains, although Wallace
and his assistants intend to bring it
out OF that class soon
The bill names nine basic commod-
ltles, wheat, cotton, corn hogs, cattle,
sheep rice, tobacco and dairy products.
AS an example of how it can op-
crate. Wallace could attempt to raise
the price of wheat by leasing land and
taking it out of production
Or he might decide the thing to do
was to cause the miller to pay a few
cents a bushel in tax on the grain he
processed. This tax would go to the
farmer to hoist his original price. Then
the levy would be passed on to the con-
sumer, the theory being that the farm
er'S purchasing power must be restored
before prosperity settled down for any,
thing remotely resembling a permanent
stay.
Other Methods Provided.
There were other ways provided to
boost the price of wheat. Trade agree
ments could be worked out with the
handler of the commodity whereby he
would pay minimum price for it. In
turn, the Government would work out
an agreement about the charge to the
customer
All, any, or medley could be ap-
piled to the other commodities.
The proposal framed for industry was
just as embracing, even more So per-
haps 1t followed the failure of the
Black bill, which would have reduced
the number of working hours for in
dividualS to 80 hours weekly in most
plants
The antitrust laws are set aside in
the industries control plan to permit
manufacturers to join in voluntary
trade agreements. Their primary pur-
pose would be to control production
spread employment and boost wages.
Under these trade agreements the
Government retains the power to force
recalcitrants into line by requiring them
to obtain licenses before they may op-
crate. The licenses will be forthcom-
ing only on promises to comply with
wage and production agreements which
| the Federal authorities will lay down
johnson Works on Plans.
This bill got through only this week
but so certain was the Chief Executive
| it would pass that Hugh S. johnson
chosen in advance as administrator
| had already been at work for weeks on
plans to put it into effect.
| 1t seemed for a time that banking
and finance would be affected by the
administration program only to the
comparatively limited extent called fol
by the securities act.
Conferees on the Glass Steagall meas
ure had argued for weeks without re.
suit, but when adjournment failed last
Saturday they tried once again. Aidec
by telephone call to the White House