Evening star., 1934-03-11
BY OWEN L. SCOTT.

/
After all Of its planning and effort
the Federal Government is today con-
fronted with the same problem that it
laced one year ago. That is: What
| can be done to create millions Of Jobs
| quickly?
Under the new deal farmers are re-
ceiving more money. about 5000 900
persons actually have gone back to
| work. many industries have returned
to profit basis, but, according to Off
cial estimates. nearly 10000 900 indi-
vlduals still lack employment N. r.
A. with its shorter hours: P. w A..
with its public construction. and C.
w. A., with its lavish spending, have
not cut deeply into the solid mass of
the unemployed.
So again the President and his ad-
visers are asking: What to do? As
partial answers they suggest further
reduction in the hours of work in
industry. The President has chal-
lenged employers to create more Jobs
and to pay more wages immediately.
i But even with the cut that Gen. John
son asks, only 100000 more open
ings would result at once. A revised
| Civil Works Administration is in the
making. Hopes are held out for large
employment through the public works
expenditures
But down underneath the scene in
washington is conflict of viewpoint
that was dramatized at this past
weeks N. r. A. code congress On one
side we're aligned most of the employ
ers, on the other side President Roose.
welt and Gen. johnson and other Gov
ernment officials.
Two theories seemed to stand out.
One. stressed by large EMPLOYERS.
took this form: Industry has passed
| the crisis, has recovered its eQuilib-
rum and is prepared to move ahead
under It's own steam, if given a chance.
10 cut hours and call for higher wages
would mean adding complications.
Prlces would have to be raised to meet
! the added costs. The consuming pub
lie is not prepared to pay prices higher
than those now prevailing and might
revolt, causing reduction in the vol
ume OF business and a renewal of the
downward cycle.
Then the employers said: Unem-
ployment now is concentrated in two
great areas-one in the field of dura-
BILE goods, the other in the field of
services. The durable goods indus
tries, which are those that make ma
chinery. build buildings and turn out
other heavy products. account now for
about 100000 of the 10000 900 out
OF employment. About 1000 900 more
are in the service industries, like
transportation, communication. the
professions. trade. banking and gen.
eral Office work and in domestic work.
y 4 xH
10 get people back to work in the
durable goods industries it is necessary
that the Federal Government let down
the bars on investment. The securities
act should be modified, so that money
can f1oW into financing of projects
that are paid off out of earnings over
period of years. There should be no
rigid regulation of the stock market
ThlS was the story as outlined BY
many of the big employers. 1t was
without much effect on the attitude
OF Government officials. however.
'Ihey took the following view:
II Is true that most Unemployment
Is in the durable goods industry and
the service industries. But Just what
are the projects that industry thinks
people may be induced to invest in?
There already is an overdevelopment
OF manufacturing plants, there are
TOO many Office buildings and too
many hlgh-priced apartments.
X *
What has to be done is to shorten
hours in industry wherever possible
ana to raise wages as fast as possible.
A greater proportion of the population
must be employed in making goods
1or consumption. with less of flow of
capital into construction of plant and
into machinery. Then, for the first
time In years, agriculture is to be
given a more balanced income. The
1arm plant is badly run down and will
open big market for goods. Public
works construction and provision for
loW-cost housing in cities are other
outlets for billions that should create
large number of jobs. To open up
the field for investment and specula-
ton, without close supervision, might
only bring period of sharp improve
ment and then another collapse. It
is this We are trying to avoid.
Inls latter is the viewpoint that is
to prevail, judged by the expressions
OF President Roosevelt and of his ad-
visers
They are not convinced that In
dustry is in any position to push ahead
now with large program of rebuild
ing that would give widespread en-
ployment. Instead they are turning
their eyes more definitely in the di-
rection of Government aid for hous-
ing on a vast scale. They think, too
that public works money has not yet
had a chance to show what it can do
This $500. 100000 fund was to give
work to at least 2.000. 600 persons.
Actually it has provided jobs for fewer
than 100000. although the prospects
are that Use Of the money will get