Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-04-23
INDUSTRIAL PLAN
TO Be PRESENTED
REPRODUCTION Warrant" Would
Be Included in Profit
Sharing Scheme.
BY G. GOULD LINCOLN.

A profit sharing plan for industry
and labor, designed to bring about mass
distribution and mass consumption as
corollaries of mass production, has been
proposed by George H. Hull, jr., of New
York, to Government officials here.
Mr.. Hull hopes to have an opportunity
to present this plan in detail to the
House Labor Committee when 1t begins
hearings on the Black 30-hour work.
week bill next week.
Mr.. Hull'S plan, worked out after
years of study OF the economic prob
lerls which confront this country and
others, looks to the use of new me-
dium of exchange-the production
warrant"
With the country off the gold stand
ard and the necessity for rebuilding
economically clear to the country, Mr..
Hull suggests that the steps taken should
fundamental and not merely tempo
rary cure. The auxiliary medium OF
exchange-"the production warrant
to supplement money credit when it re-
fuses to distribute full capacity produc-
ton should be adopted without delay,
he asserts.
The gold standard would remain, but
1t would become a yard stick to meas
ure the relative value OF products 10
each other, not the relative value OF
each product to gold, which now Kills
prices. creates Insolvency. Color
Whatever money standard is finally SCI
up-will become the yard stick ana
production warrants the medium OF &C
comprising the interchange OF goods.
Essentials of Plan.
The essentials of the Hull plan are:
First, the adoption of the principle
of cooperative distribution by means
of a profit-sharing wage system.
Second, complete REDISTRIBUTION Oh
currently earned corporate profits.
Third. the adoption OF production
warrants" as an auxiliary medlum OF
credit and product distribution.
Fourth, the acceptance Of production
warrants by the Federal Government
in payment of taxes.
Fifth, the establishment OF pro-
duction warrant exchange and clearing
house.
sixth. the introduction by Federal
Reserve banks and national banks OF
the necessary machinery for receiving
deposits in the form Of production war
rants.
Mr.. Hull believes that If his plan
is adopted it may have also bearing
on international trade, sweeping away
interchange of goods. This, he insists,
would cause armies and navies to be
no longer needed in settling by war
the trade balances which cannot be
settled in gold and which we do not
allow to be settled in goods.
For Capitalistic System.
Mr.. Hull remains a friend OF the
capitalistic system as opposed 10 20
Cialism and Communism. But ne IN
sists that the capitallstic economic gov
eminent TODAY conflicts with the Demo-
C1atic political system and must pc
re-ised.
The author of this new plan Tor
economic recovery is a firm opponent
of a rigid and fixed wcge scale he
is strongly opposed to the building up
a. big SURPRISES by corporations ana
con,panieS, to inStallment Selllng as II
i now practiced and to dumping IN
foreign markets at low prices:
Mr., Hull takes the position that pros
nerity depends upon the possession by
the peop.e of the necessities. comforts
ana luxuries which enter INTO hlsA
standards of living.
We cannot have those things, Mr..
Hull saws. lin large quantities unless
we produce them in large quantities.
Nor can we have them continuously
unless after having produced them IN
Urge quantities we then proceed to dis.
tribute them widely among the people
Employment Insurance.
Through the adoption of the principle
of cooperative distribution by means OF
a profit sharing wage Mr.. Hull insists
class warfare and maldistributlon OF
credit would be eliminated in large part
1t would also tend to give more com.
plete and continuous consumption OF
capacity production, thus acting as en-
ployment insurance on self-supportlng
basis.
The complete redistribution OF cor
porate profits. currently earned, every
three months is proposed by Mr.. Hull in
order to keep credit and profits in cir
culation, buying or consuming products
in a continuous cycle. This would. he
contends, tend to put an end to the
custom of boarding currently earned
corporate profits in undistributed profit
account and using them to finance
stock market initiation instead of dis
tributing them in order that they might
buy products.
This corporate boarding castom,"