Evening star., 1933-07-15
Increase Buying Power.

1nCTodSe Ouy Ing 1oWel.
With spindles turning and machinery
speeding up all over the land In the
drive for business recovery it is of vast
importance that the purchasing power
of the people be increased. They are
ready to consume this new production
provided they have the means to obtain
it. Increased employment plus increased
wages is, in the opinion Of the Roose-
welt administration, the formula for in
creased purchasing power Of the people.
There could we'll be added to this
formula decreased taxation, for many
of the people are unwilling to spend
income and earnings when they fear
that taxation is likely to mount still
higher, rather than to be reduced.
President Roosevelt and his aide, Gen
Hugh S. Johnson. Federal administrator
OF the industrial recovery act, have
expres--i already their concern over
forced and mounting production of all
kinds of commodities prior to the adop-
ton end operation of the codes Of fair
competition by the industries. For ex-
ample. the Census Bureau has reported
that the consumption of cotton during
June. 696.472 bales. was the largest for
any month since the bureau began keep
ing such records back in 1912. The next
highest consumption for any month was
during March, 1927. The June con-
sumption this year was double the con-
sumption in June last year. It seems
clear that the cotton manufacturers
have speeded up production in order to
take advantage Of lower prices OF raw
material and of lower labor costs, and
equally clear that cotton goods mer-
chants have rushed orders to the mills
to stock up at lower prices in order
to take advantage Of the market when
prices for such goods have gone higher
Whatever the motive and whoever may
be responsible, the whole movement nay
defeat itself unless the purchasing power
of the Nation is increased without fur
ther delay.
President Roosevelt and Gen. john
son. therefore. are considering the ap-
plication to all industries in the coun-
try in advance of the adoption Of codes
of fair competition, of the minimum
wage and the shorter working week
Whether such decree by the Federal
-y,Sa av,f u Io
under the law is the question with
which the President and Gen. johnson
are to wrestle over the week end. One
section Of the recovery act gives to the
President power to enter into volun-
tary agreements with industries rela-
tive to wages and hours of labor. But
whether a general order by the Presi-
dent fixing minimum wages and maxi
mum hours of labor could be made OBJ
ligatory is another question 1t is doubt
full that industries generally would fall
in line with an order of that kind
prior to the hearings provided for in the
law prior to the adoption of the codes.
There are hopeful signs. however,
which indicate that some of the indus
tries are alive to the need of quickly
increasing purchasing power and of pre-
venting the dislocation Of labor in many
Of the plants The silk and rayon
manufacturers are strongly urging that
the provisions of the cotton textile code
now approved and to become effective
on Monday relating to minimum wages
and hours of labor be made to apply to
their mills, too The wooden manufac-
turers are falling in line with this pro-
posal
President Roosevelt has warned the
producers and the merchants that sud-
den sharp rises in prices of commodi-
ties, coming before the purchasing
power of the people has been increased
by added employment and increased
wages. may be destructive Of the whole
movement of recovery. The producers
and merchants, he said, must be con-
tent to make their increased returns
from larger and wider sale of their
commodities at first. This Is sound ad-
vice. If production and prices out
strip the increase in buying power of
the people, the danger Of another COL
lapse, and a most serious one, will con-
front the country.