The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-08-03
INDUSTRIAL RECOVERY IDEA
BORN in ROOSEVELT TALKS
AMONG BUSINESS LEADERS
By BYRON PRICE
Ichisf Of Bureau, The Associated
Press, Washingtonl

/. = =
0NE thing about the IN. r
A." not generally under
stood, even in Washington
IS the large part which in
dustry itself played in nur
turing the original germ Of
the present mighty plan fol
industrial recovery.
Various commentators, specu.
iating as to the beginning of this
giant of an idea, have surmised il
must have been a product of the
Roosevelt "brain trust" The
truth is the professors of the brain
trust appeared in the discussions
only in the later stages as advis.
BKs on detallS.
What actually took place was
tLig:
Soon after election last Novem-
Der, Mr.. Roosevelt discussed with
various business men what could
b. done to put industry on firm
"a basis.
He was aware that in all serious
Expressions in the past it was the
financial world itself which took
the lead in applying remedies,
while throughout the depression
the government had been compel
iedsto assume almost complete re-
spensibility.
III When this was mentioned, il
WAS pointed out by the industrial
fists that they had a much freei
hand to deal with economic crisis
There was no stringent anti.
krnst law then, providing Jail sen,
ttness for those who put their
heads together to peg prices OF
Rllot selling territory. There
was no Federal Trade commission
training its microscopes on trade
practices.
What the industrialists did, in
effect, was to challenge Mr.. Roose
welt TO remove the barriers. What
Mr. Roosevelt did was to accept
the challenge. inserting few slip
ulations of his own into the con.
tract. So the idea of charter
ing industry to solve its owr
problems was born.
Nurturing che Plan
OF course the child did moi
attain full stature overnight
There were repeated conferences
ct Albany.
The industrialists, to point their
argument, cited what had happen.
ed in the textile industry.
Faced with ruinous over-pro-
auction, the vast majority of tex
tie operators had agreed that
mills should stop operating on full
day and night schedules. But
the. small minority refused tC
agree. seizing instead the oppor-
tunity TO increase their output
while the majority was idling.
The mills which had agreed to
eurtail. although financially pow
erful enough to drive the dissent
ers out of business dared not do
30 under the law. The whole
plan collapsed, and textiles took
4k0ther tail-spin through the dark
clouds of depression.
The point went home. To the
original suggestion of fewer trade
prohibitions was coupled the sug.
gestion of trade practice codes
which would be legally binding.
A Challenge Accepted
As early as Christmas week. q
small group, who had seen the
President-elect, came away with
minds filled with the dawninp
conception of what was to come.
Naturally. organized labor and
others were consulted as matters
shaped up. Mr.. Roosevelt saw Ia
that. Naturally. the plan turned
out finally pleasing to most OF
the professors. who for years had
been teaching greater regiments
ton Of business.
But as to the ultimate origin OF
the now famous "N. r, A." there
can be no doubt: 1t represent,
kir. Roosevelt's acceptance Cor
his own terms. it il truel of .
challenge and a promise made orr,
pfnaiiv nv fndtastY.v fts0lf