Evening star., 1933-06-18
INDUSTRIES RUSH
RECOVERY SET-UP
Half Dozen Nearly Ready to
Submit Agreements to
Gen. Johnson.
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from reports received from all sections
OF the country.
Automobile. steel ingots and electric
power production increased during the
week, the report said. 1t also noted
receipts Of the major farm products at
principal markets were larger and
above year ago.
Retail trade reports, the department.
said. were generally favorable, and bank
debts. outside of New York City, in
creased over the preceding week. Both
stock and bond prices moved upward
Control board officials were con-
cerned over the continuous rise in
wholesale prices for their aim is to keep
prices stable, while wages and employ
ment go up. The department reported
the rise in non agricultural prices more
than Offset the reduction in the COM
bined index OF agricultural products.
Wheat prices advanced and copper
prices were marked up further
The composite iron and steel price
was reported higher and cotton prices
were steady.
Gen. johnson has let It be known
that industry will be asked to carry for
a time some of the load of increased
costs until buying power is stimulated.
curves of production and buying power
travel almost parallel However. in days
OF depressed markets buying power falls
faster than production.
Production Curve Higher.
Today the relative position of the two
curves. according to Government econo-
mists, finds production considerably
above the power of the dollar Through
the Industrial Control Board the down.
ward sweep Of the purchasing power
curve Is to be brought back across the
production curve.
While 1t Is hoped that the movement
will be purely voluntary on the part Of
industry. johnson has let 1t be known
that the board will insist that while in
creasing wages and shortening the work
week the higher costs be left untrans-
lated for the time being.
A rise in prices while buying power
is attempting to climb above the pro-
ductton curve would bring industries
near calamity, 1t was stated. Therefore,
1t was stated, the success of the recov-
cry act depends on whether the Federal
Government will be able to peg prices
while wages are being increased.
Johnson's hopes are to avoid re-
lapse in present business activity, and
LlldI Nv OCtOUcE l., Z,VUU,uUU WUTkSTS Will
be absorbed in industry itself and ,000,-
900 more on public works. He believes
that with the usual seasonal pickup in
business during the Fall and Winter
5000, 900 to 1000 900 men may be back
at work by the end Of the year.
In working out the agreements within
industry, johnson will ask each section
to come forward with its proposals
worked out by representatives In which
all plants have q voice. Under the law
the agreements must not be designed
to further monopoly or oppreSs labor.
Searching Study Planned.
johnson has let 1t be known that
when these agreements are submitted
they will be brought under . searching
scrutiny. With the administrator viii
sit representatives of labor and industry,
charged with inspecting the agreements
and obtaining fairness for all parties.
including the Government.
Among the trade associations known
now to be preparing trade agreements
and will be ready to submit them to the
board before the end of this month are
| the American Iron and Steel Institute,
American Petroleum Institute, Motion
Picture Industry. Tanners Council Of
| America, Southern Cypress Manufac-
tllrers' Association, Paperboard Indus
| tries Association, American wholesale
| Grocers' Association, National Associa-
| ton Of Furniture Manufacturers, Ma
tional Pipe and Supplies Association and
| the National Standard Part Association.
Among the associations that have
pledged themselves to cooperate with
other organized groups in reaching trade
agreements are the Label Manufactur.
ers' National Association, Compressed
Gas Manufacturer Association. Flavor
ing Extract Manufacturers Association
and the National Malt Products Manus
facturers' Association