Evening star., 1933-09-24
ECONOMISTS WATCH.
RECOVERYPROGRAM.
Keep Eyes on RooseveIt's
Plan to Keep Purchasing
, Power in Line With Costs.
8y the Associated Press.

3y the Associated Press.
Lagging credit and farm prices yes
terday turned the eyes Of Federal econ
omists to a close watch Of the develop
ing plans Of President Roosevelt for
prodding purchasing power into stride
with rising industrial costs.
Credit problems and labor troubles
coupled with labor disputes and reor-
ganization Of the N, R. A. into perna-
nent working unit to claim the close
attention Of Recovery Administration
oficials.
Strikes in various parts OF the country
brought from Senator Wagner OF New
York. chairman of the. National Labor
Board. an appeal to labor to resort to
such stringent means only as a last
step.
Meanwhile, the Recovery Administra-
ton continued hearings on the news
paper publishers code and approved
notifications of the blanket code to
bring canvas goods and cereal foods
under the general N. r. A. agreement
Urge Action on Retail Code.
Many kilograms from retail mer-
chants and groups of retailers came IN,
urging immediate action on the retail
code and retention of the loss lmita-
tion uroyision to end "cut-throat COM
petition"
A few asked that the loss limitation
section be changed and some opposed
limiting to A hours the working time
for delivery and maintenance employees.
AS q further step toward policing
codes, the administration set up state
Industrial Relations Boards for the cot
ton textile industry in Georgia, South
Carolina, Alabama and North Carolina,
containing representatives OF employers,
employees and consumers.
Hugh S. johnson, industrial admins
traitor, still was confined to his hotel
room by slight indisposition. but ne
spent much time studying plans Tor
putting the N r. A. on a permanent
instead of temporary basis.
Gradual abolition OF the large stan
that was assembled to put across the
Blue Eagle campaign already was under
way with small proportion OF the per-
sonnel heretofore engaged in blanket
code activities being retained IN otner
divisions of the N. R. A.
In analyZing the credit plans. some
Federal economists said they expected
q flexible. immediate curb on the spread
between living costs and buying power
to develop from the present program OF
President Roosevelt.
Release Of Deposits Essential
The release of millions Of dollars in
bank deposits was considered by them
as potentially one of the biggest con-
tributors toward increasing purchasing
power. They called such an increase
absolutely essential to the success of
the N. r. A. and the general recovery
program at this time
In addition, serious consideration was
being given to finding ways for big
capital expenditures to stimulate en-
ployment
: The railroads were cited as a specific
example. with some economic experts
saying these transportation lines had
decreased their maintenance far below
the proper point.
They said the expenditure of pos
sibly billion dollars in this manner
would be desirable. Joseph B. Eastman,
the railroad co-ordinator. has recon-
mended expenditures for such improve
1nents.
Serious study also was being given
to the effect of high wages on public
works projects. Some officials believed
they were slowing down private con-
struction.
Might Effect Handicap.
They explained that by establishing
higher average wage levels than could
be afforded by private interests. the
public works program might in effect
handicap its own objectives.
1t was regarded as proper that on
q 30-hour week basis, the wage rate
for public construction should be some
what higher than private wage levels,
but 1t was emphasized a middle ground
would have TO be worked out
Dealing directly with the retail code,
A. D. Whiteside, deputy administrator,
said in a statement the loss limitation
provision has been widely misunder-
stood"
According to the proposed provision,
retailers, excepting in circumstances
listed, may not sell their goods at less
than 10 per cent above the cost Of the
actual merchandise, with certain quail
fcstions," Whiteside said.
The point that is misunderstood
has to do with the 10 per cent addi-
ton to the cost of merchandise. II the
net price paid by a retailer for an
article should be 81, this provision ap-
plying to normal sales would not per-
nit the retailer to sell the article for
less than $l.lo.
This 10 cents which is added to
the price which the retailer pays for
the merchandise only reinburses the
average retailer for less than so per
cent of the cost which he incurs In
operating his store and in serving the
public.
The purpose Of this provision Is to
stop predatory price cutting; that is,
the cutting Of prices on a few well
known articles which does not in the
majority OF cases reflect the average
mark-up Of the store selling even at
cut rates"
Announcement was made yesterday
that johnson has accepted the resigna-
ton Of Charles r. Horner. director Of
publicity In connection with the Presi-
dents Unemployment drive. The resigna-
ton is to take effect on October l.
Horner will return to his Kansas City
business.