Evening star., 1933-06-14

United States, it will become binding
upon the entire trade or industry, and
action in compliance with its terms will
be exempted from the prohibitions of
the antitrust laws.
BY means of these codes we are going
to develop a scientific technique of
planning in industry which will equal
our technique of producing goods. We
are going to solve the economic prob
lem of today with the same realism and
directness which we applied to the
problems Of the past.
There will be no danger of business
men using the opportunities of united
strength in such a way as to oppress
the consumer or the competitor. No
code will be approved by the President
until those who propose it prove that
they are truly representative Of the
trade or industry for which they speak.
1t must be proved also that the code
nor discriminate against the small busi-
ness man. For the first time business
will be brought out into the open and
subjected to the constant watchfulness
of the President, who will have power
at any time to modify or revoke any
code.
In my opinion, one Of the most sig
niflcant provisions of the new law
deals with the labor problem. In the
mad, unguided race for wealth during
the past, the laboring man has been
left out. Ruthless competition forced
wages down and pushed hours up, tend
ing to drag all business to the level
of the unscrupulous and the corrupt.
The only. justice in this matter has
been that in the end the greedy de-
c
faster than wages, the excess earnings
were invested in more factories, turn
ing out an increasing volume Of
goods. The mass of consumers did not
receive enough in wages to take these
goods Off the market, and We found
ourselves suffering from what some
people call "overproduction. Depres-
sion became unavoidable.
Right of Labor.
Under the new law, every code of
fair competition must recognize the
right of labor to bargain collectively.
Every code must include provisions as
to minimum wages, maximum hours,
and other working conditions all of
which must be approved by the Presi-
dent. In this way the production and
consumption of goods will be co-ordi-
mated. In addition, we shall move a
step nearer to the social and economic
justice which we have always pro-
fessed to approve.
These codes are not inf1exible molds
into which every one will be forced. A
different code is drawn up for each
trade or industry. Even within a sin
gle group, the President may make
necessary to effectuate the policy of the
law. There Is only one unalterable
proviso. This Is that business compe
tition must be confined to honorable
dealings and efficiency, rather than
| include attempts to reduce wages and
degrade the living standards Of those
who tend the machine.
In fact, the new law does not con-
template compulsion at all. Business
men, those most familiar with the In
| dustrial problems of today, are given
every opportunity to think, to plan and
to act. Nothing is done to substitute
| industry itself of the prime RESPONSE
bility for economic recovery. I have
always placed faith in voluntary ac-
ton. I have never believed that 9
single centralized agency alone could
| possess the wisdom necessary to solve
the infinite variety of economic per-
plexities which face us today. Busi.
ness men must put their own shoul-
ders to the wheel, and I am confident
that they will do SO willingly, speedily
and wisely. The Government SHOULD
serve primarily as an umpire and co.
ordinator. 1t should utilize its broader
viewpoint in order to prevent harmful
practices, whether these be the result
of unfair attitudes or of inadequat,
knowledge.
However, the Government is no
without power to compel action in tn,
few cases where Righteousness and rea
son fail to produce results. I hav,
said that a voluntary code, when ap
proved, becomes binding upon the en-
tire trade or industry. And If no sucl
code is proposed, the President ma,
prescribe a code embodying all Of tn
features of the voluntary codes. In ad
dition, the law provides penalties TO
the violation of either kind of code
and in extreme cases the President 70
the channels Of interstate commerc
any business which persists in violating
code.
This reserve compulsory power
made absolutely necessary by the eco
nonic situation. I have pointed OH
that orderliness must extend over tn
entire Nation If 1t is to be effectiy
anywhere. Those who wish to compl
with this bill must not be subjecte,
to the guerrilla warfare Of cut-throat
and exploiters Furthermore. the ide
of control by law is not radical. En-
. forcing cooperation is no different