The midland journal. (Rising Sun, Md.) 1885-1947, 1933-08-04
by William Bruckart


economic force to be used, for the con-
sumers are asked to deal only with
those who have signed agreements to
conform.
During all of this drive to get things
going again--the code calls it the
Presidents drive for unemployment"
there are apt to be many unfair and
unjust acts by the overzealous. There
are certain to be recalcitrants who are
unwilling to make concessions for the
common good. But the most i'm
poftant class of all Of those who may
not comply will be those who are un-
able to comply because, to do so, they
would be bankrupt.
have heard it suggested in CONVEX
sations here that the sudden move to
blanket the nation
Answering with voluntary
the SkeDf;cs agreement on BUSH
ness conduct might
cause many persons in the country to
become skeptical that things were not
going so well. 1t was feared that
those without complete information as
to the plans and purposes Of the gov
eminent might look upon the far
reaching action as meaning that new
crisis was impending. The suggestions
were not altogether without support
ing reason. In the deluge of visitors
who have come here to draft new
codes in conference with General
Johnson, many have come with doubt
in their mind as to the value or the
justice of the whole scheme. They
were honest in their judgment and
simply viewed the program as unwork-
able and as forcing them into unnec-
essary hardships. It seems, therefore
that an analysis of some Of the rea-
sons for the national code should be
made after it has been stated with
some emphasis that there is no new
crisis, nothing more serious than be-
fore, to be seen on the horizon Of the
immediate future.
1t will be remembered that the an
nounced program of the President
when he started the recovery plan was
to boost commodity prices. He wanted
to see the farmers get more for their
products as means of saving agri-
culture from the inevitable bow-wows
and he wanted the other sources Of in
dustrial life to profit. AS long as
prices were so low, there could be no
restoration of normal business activity,
in the Presidents view.
Carrying out this line Of reasoning,
there came the farm aid laws, the in
flation authority, the farm and city
home refhancing bills and other pow
ers. The President withdrew govern
ment support of the dollar in foreign
exchange by saying there could be no
gold exported. Obviously, prices went
up. They moved in a hurry. Specu-
lation crept into the picture in a big
way. The net result of this was that
the cost of living moved rapidly high
er but wages and salaries Jagged be-
hind.
The recovery administration thought
the problem could be met by the indus
trial codes, but the codes were slow
in getting started and numerous con-
troversies have arisen between units
of particular industries and between
whole industries and the recovery ad-
ministration. Delays were serving
only to widen the margin between the
two basic factors Of wages and prices,
and so General Johnson and the Presi-
dent put their heads together on the
code which we have been discussing.
The recent nose dive in grain prices
occasioned quite bit Of talk in Wash.
ington officialdom,
Break in especially around the
C-o;n Prices Department of Agri-
culture. Secretary
Wallace, however, was the calmest
man of the lot. He did not let the fact
disturb him that wheat dropped off Is
cents bushel in one day for the rea-
son, he said, that Mr.. John @. Public
was gambling in the market. Sooner
or later. the secretary said, John @.
had to take licking.
Mr.. Wallace said, however, that pub
lie participation in the grain market
was not the sole reason for the sudden
decline. He thought the rise in price
had been too rapid and that reac-
ton had set in. Another man in the
Department of Agriculture likened the
price rise to the growth of bean stalks
in over-rich soil. 1t went all to top.
But the secretary said the members
of the Board of Trade in Chicago saw
the break coming and they sought to
protect themselves by calling for more
collateral or cash from those who
were trading on margins. That nat
urally had the effect of frightening
many spectators. according to Mr..
Wallace, but he did not blame the
Board of Trade members. It was
something of a combination of circum-
stances, then. that broke the grain
markets.
Nevertheless, the Department Of Ag-
riculture is watching the grain trading
through numerous pairs of eyes. One
of the things it already has done is to
invoke the provisions of the grain fu-