Evening star., 1933-07-26
Wages Before Prices,

LII d plcd uOC W LII Itle SOOSe tIlat
lays the golden eggs, Gen. Hugh s.
johnson, Federal administrator of the
industrial recovery act, has called upon
American business men not to raise
prices above the point made necessary
by increased costs under the proposed
wage increases and shorter work week.
Gen. johnson, speaking last night in the
National Radio Forum, strongly backed
President Roosevelt's appeal to the
American people to join Fundamentally
in the recovery plan. He predicted that
the drive for business improvement and
unemployment would be a great sue
cess and he called attention to the mass
of responses which have met the Presi-
dents appeal for cooperation, for en-
listment in the army of recovery.
Gen. johnson placed his finger on
several points of danger, which the
recovery forces must avoid if the whole
campaign is not to break down. One of
these was the danger of a too rapid
and selfish rise in prices of COM
modities and products Of all kinds. The
producers and the sellers of goods must
realize, he said, that "prices are away
ahead of purses right now" If prices
are forced higher and higher, the sale
Of goods will soon become impossible
and the entire machinery Of recovery,
which depends first and foremost upon
an ability Of the American people to
consume the products of the farms and
factories, will break down. Give the
purchasing power Of the people a
chance, the general said in effect, to
come back before seeking big profits
from individual sales; be content for
the present with a greater volume Of
sales. In the long run, the greater
volume of sales is far better for business
and for the business men who make the
sales. 1t is upon the volume of sales,
indeed, that production must depend.
Small production means small employ
ment, and small employment means
small purchasing power.
There is demand in this country to-
day for all kinds of goods, from shoes
to automobiles and airplaneS. The
people have been doing without, fearing
what the future had in store for them.
Uncertain regarding their employment
from day to day and week to week, they
have retained suoh resources as they
have had. They need and will buy all
kinds of goods provided they are given
real assurance of employment, and pro-
vided the dollars actually begin to flow
into their pockets for work performed.
Gen. johnson also warned both en-
ployer and labor to refrain from
"sniping and suspicion" 1t is not play
ing the game squarely for employers to
seek to rush their workers into company
unions in order to comply with the de-
mand of the recovery act for right OF
collective bargaining on the part of the
workers. Nor, on the other hand, he
said, should labor unions seek to coerce
workers into their organizations on the
ground that all the benefits Of the act
could be obtained only from joining
some particular union.
Only by actual cooperation and the
avoidance Of making selfish gain the
immediate goal can the recovery
plan of the administration be carried
forward with the maximum of sue
cess, Gen. johnson insisted. The ad-
ministration has already been greatly
heartened by the tremendous response
which has come to the Presidents
plea from business men and others In
all parts of the country. Gen. john
son and his assistants are going for
ward at top speed with their plans
to bring about an orderly increase in
the purchasing power of the people
through greater employment and bet
ter wages. Yet it is quite clear that
the leaders can accomplish little unless
the great rank and file of the people
join with them in this cooperative
movement Each individual employer,
each individual worker, must feel that
he is responsible. Each must be able
to saw: 1--WE do our part"