The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-07-20
Predicts Crisis in
Industrial RecOueru
Johnson Says Purchasing Pow.
er Is Not Keeping Step
With Price Raises
ASKS PRESIDENTIAL ORDER
Proposed Decree Would Ask
Cooperation to Raise Wages,
Spread Employment

Washington, July 20.-F)-Fore-
seeing a crisis in the recovery pro-
gram unless popular purchasing pow
er Is stepped up to keep pace with
rising prices, Industrial Administra-
tor Hugh s. Johnson Thursday per-
fected the plan for nation wide adop-
ton Of minimum wages and working
hour limitations.
Only approval by President Roose-
welt awaits PRONUNCIATION Of the dras-
tic proposition and johnson was
ready to seek that before the day is
out. The plan would be voluntary,
with reliance on pressure Of public
opinion to get industrial and business
concerns into line.
Making the rounds Of hearings be-
Ing held on proposals for specific
codes to raise wages and restrict
working time, johnson told the
crowded meetings we are emerging
from the depths but not from the
dangers" Of depression. He warned
insistently that wages must keep
step with rising prices, going so far
IN talking to q session on the code
proposed for the women's coat and
suit industry to warn that a crisis
Is faced within the next month or
two In bringing buying power to a
par with ascending cost Of things.
I'VE have right to be encouraged
about this law. It works." johnson
said.
Two Main Problems
LAS I see 1t, there are now two
main problems-some device to brine
in the unorganized classes and this
question Of prices going too far ahead
OF consuming power. The operation
Of this law has been an inspiring
thing"
I'VE have had a rapid increase ir
prices throughout industry" johnson
noted emphatically.
1--WE recognize that costs are going
to increase and prices will have to
also.
Every time In the past there ha.
been rapid increase in prices
there has been a lag in wages.
But now the distortion OF In.
creased prices is SO rapid and the lae
of purchasing power so great that II
Is plain we can't stage industrial re.
covery with 100000 men out o.
| work."
He urged the women's coat ane
suit manufacturers and the repre-.
sentatives of labor In that industry
assembled to thresh out the prospec.
tive points in the proposed agree.
ment, to shorten hours and rais>
wages by working on two main prin.
ciples, for sterilization and protec'
ton Of the industry itself and 70,
benefiting the workers therein.
Must Act At Once
Johnson told the clothiers that In
dustry had to move on a broad from
to put people back to work mot 81,
months from now, but right now" a
wages that permit them to live.
IT we DON'T" he said, there vii
be the buyers inability to buy tn,
products Of industry. There is NJ
escape. have no doubt the situa.
ton Is being realized In industry ane
that 1t is going to be solved"
He said he had seen advance
wholesale quotations for retail re.
stocking which showed increases o.
from go to 100 per cent. Calling thi:
appalling" he added, this show,
what we are up against in a little
while and it lies in your hands tt
meet the situation"
Johnson's plans were approved
Wednesday by the cabinet advisory
board and President Roosevelt's sup
port also was indicated. After the
president acts, however, a prepare
tory period Of possibly two weeks will
be required before the code can be
put into effect.
New hearings taking the boards
Thursday were that for the cloak and
suit trade and one for the lumber
industry.
johnson has drafted, not one
blanket" code, but separate agree
ments for various classes OF employ.
ers, by which the signers will pledge
to increase wages and shorten work
ing hours to make more Jobs to the
extent the administration regards
necessary In each group. Factories
stores and business offices are under
stood to be the separate categories.
These forms were among documents
for which he sought presidential ap-
prevail Thursday. Also needing &C.
ceptance were plans to enlist civic
patriotic and other organizations on
a local basis to campaign in every
community and win acceptance from
the employers.