Evening star., 1933-08-13

BY GEN. HUGH 5. JOHNSON,
Administrator for the National Recovery
Administration.
A MERICAN industry has embark
n ed on q great adventure under
II the new national industrial re-
4 \ covery act. The course as yet
may not be carefully charted,
but the destination is clear. II the
adventure proceeds in the same spirit
will be a glorious success. The country
will enter a new economic and social
era where its people are not reeling
dizzily on the peaks OF prosperity one
moment and floundering hopelessly in
the depths Of depression the next. But
If 1t Is challenged by the same old
shifting for selfish advantage and the
mutual suspicion and distrust between
management and labor that has here
tofore existed, dangerous shoals are
ahead.
The national industrial recovery act
has q threefcld purpose: To create en-
ployment, to raise wages and to eradi-
cate the piratical and cut-throat COM
petitive practices which, aggravated by
the economic Generalization of the
last few years, have brought American
business and industry to its knees. The
public works section Of the bill Is ex-
pected to put million men back to
work by Autumn, the possibilities of
this recovery program are very much
greater, and. with the general improve
ment In business conditions which Is
manifest everywhere absorbing thous-
ands of unemployed daily, and the even
more rapid change as we move from
popular psychology Of fear and un-
employment to one Of confidence and
re-emrloyment,S 1t seems safe to predict
that the turn Of the year should find
the country well on the road back to
recovery.
That Is the program, simply stated.
It does not contemplate public man
agement of private business; it does
not contemplate the fixing Of prices
and wages by governmental decree;
it does not contemplate the unioniza-
ton of labor by Federal command.
Nor is there any intention Of setting
up any industrial GEARS" But neither
is it "shot in the arm" to encourage
a brief business boom. It is an at
tempt to check and then control per-
manently the disintegrating forces OF
depression which still menace the Sc
curity of the Nation.
The plan is not visionary, nor is it
fantastic. Possibly our forefathers
might have regarded it as so, but our
generation has brought us new prob
lens for which we must fashion our
own tools.
Buying Power Needed.
The restoration of the purchasing
power of the people is essential to our
economic recovery. That can be ac-
complished only by creating employ
ment and by giving every worker not
merely a living wage sufficient only for
bare subsistence, as President Roose-
living" Undeniably this program
thrusts q heavy burden on industry.
but industry is not asked to be altruistic
about it; the act provides definite COM
pensatory benefits for industry which
will balance the scale, and, of course,
actual increases in costs must be COM
pensated by increasing prices-the
Presidents view on this subject Is SIM
ply that prices must not be increased
in advance Of actual increases of cost
to reap speculative or expedient profits.
Industry has long insisted that If 1t
were given the privilege Of regulating
| itself and putting its own house in or
derby controlling production and by
Scourgtng the price cutter and buSl-
ness pirate from its midst without the
restricting and restraining influence of
the antitrust statutes-it could effec-
lively stabilize our economic system.
Industry now has the opportunity to
achieve what its more enlightened lead
ers have sought for years.
The rub has been that q few Of the
leaders of industry have permitted their
early enthusiasm over getting this op-
pcrtunity to blind them to the obiga-
ton 1t was necessary for them to as
| sumo under the program obligations