Evening star., 1934-10-01

profits within one year from the in
auguration Of N. r. A.
Now it should not be expected that
even employed labor and capital
would be completely satisfied with
present conditions. Employed work.
ers have not by any means all en-
joyed a return to the earnings of
prosperous times, although millions
of hitherto underprivileged workers
are today far better paid than ever
before. Also, billions of dollars of in
vested capital have today a greater
security of present and future earn
ing power than before. This is be-
cause of the establishment of fair,
competitive standards and because OF
relief from unfair competition in wage
cutting, which depresses markets and
destroys purchasing power But it is
an undeniable fact that the restora-
ton of other billions of sound invest
mentS to reasonable earning power
could not be brought about in one
year. There is no magic formula,
no economic panacea. which could
simply revive over night the heavy
industries and the trades dependent
upon them.
Gains Substantial.
Nevertheless the gains Of trade
and industry, as a whole, have been
substantial. In these gains and in
there are assurances that hearten all
forward looking men and women
with the confidence that we are def
nitely rebuilding our political and
economic system on the lines laid
down by the New Deal-lines which
as have so often made clear are in
complete accord with the underlying
principles of orderly popular govern
ment which Americans have de-
manded since the white man first
came to these shores. We count, in
the future as in the past. on the driv-
ing power of individual initiative and
the incentive Of fair private profit,
strengthened with the acceptance of
those obligations to the public inter-
est which rest upon us all. We have
the right to expect that this driving
power will be given patriotically and
whole-heartedly to our Nation.
I'VE have passed through the FORM
ative period of code making in the
National Recovery Administration and
have effected reorganization of the
N. r. A. suited to the needs of the
next phase, which Is, in turn. a Pc
riod of preparation for legislation
which will determine its permanent
form.
In this recent reorganization we
have recognized three distinct func-
tions. First, the legislative or policy
making function. Second, the ad-
ministrative function of code making
and revision and, third, the judicial
function, which includes enforcement,
consumer complaints and the settle
ment of disputes between employers
and employees and between one en-
ployer and another.
I'VE are now prepared to move into
this second phase, on the basis of
our experience in the first phase
under the able and energetic leader
ship of Gen. johnson.
We shall watch carefully the
working of this new machinery for
the second phase of N. r. A., modify
ing it where it needs modification,
and finally making recommendations
to the Congress, in order that the.
functions of N. R. A.. which have
proved their worth may be made
part of the permanent machinery of
government.
Business Men Help.
''Let me call your attention to the
fact that the national industrial re-
covery act gave business men the op-
portunity they had sought for years
to improve business conditions
through what has been called self
government in industry. If the
codes which have been written have
been too complicated, if they have
gone too far in such matters as price
fixing and limitation of production,