Evening star., 1934-03-06
Purchasing Power.

President Roosevelt yesterday told
American industry that it must re-
create its own markets by increasing
purchasing power. He made it en-
tirely clear that the Government
stands ready to assist, but that the
time Is at hand for industry to help
itself. Not forever, he said, can the
Government continue to absorb the
whole burden of unemployment. And,
Of course, the President is entirely
right in this declaration. While the
spending of billions of dollars of Gov
ernment money may result in employ
ment, in placing money in the pockets
of millions Of workers and producers
Of goods. it is not recovery-the per-
manent kind of recovery. Nor is 1t
intended to be. The purpose of the
Government spending has been to
stimulate private business rather than
to supplant it. And with this stimu-
lus. American industry must stand
again on its own feet or else there is
further disaster ahead for the country.
1t is team play by industry that the
President is asking, team play that
looks to the betterment of all the
workers and all the investors of cap
ital. Whether there can be team play
in industry which has been essen
TALLY selfish is a very considerable
question. But at least the rules for
fair play can be laid down and fol-
lowed. The President warned indus
try that the time has come, too for
observance Of the rules of fair COM
petition laid down by the N. r. A.
codes and that violation of these rules
will be followed by governmental ac-
tion.
There are two PHILOSOPHERS regard
ing recovery in this country. One
holds that prosperity must begin at
the top. The other demands that
prosperity begin at the bottom. Pros
perity for the laborer, of course, is
not measured in terms of prosperity
for the employer. Prosperity for the
top has in the past been without
measure. 1t is matter which the
top has decided for itself. Prosperity
for the bottom has also been deter
mined by the top.
The President has told employers
OF labor frankly that the time has
come to consider a larger measure of
purchasing power for the workers,
which is another way of saying pros
perity of the workers. Obviously, it
is a matter that must be considered,
and it is being considered today far
more than in the past. Undoubtedly
there must be prosperity at the top
if there is to be beginning of real
recovery. But all the prosperity must
not be at the top. Nor must all the
returning prosperity come to the top
first. The President is entirely cor
rect when he points out that the
essential is the Unemployment Of more
people "at purchasing wages"
Mr.. Roosevelt declared that he has
no quarrel with reasonable and SEN
sible profits. What he does quarrel
with, however, is greed. That goes
for employer and for labor alike. His
demand is for reasonable profits for
both labor and capital. As matter
of fact, capital cannot be successful
without labor, nor can labor succeed
without capital. The time is here for
an advance to be made simultaneously
by capital and labor. Otherwise re-
covery and a measure of prosperity
will not materialize.
American industry has received the
challenge from the President-the
challenge to place itself on firm
ground by recreating purchasing
power. 1t is clearly up to industry.