Evening star., 1934-10-07
ROOSEVELT COMMANDS
SECOND PHASE OF n. r. A.
Policy Begins to Change Under New
Boards as Soon as Johnson Steps
Out of Active Office.

the N. r. A. administrative work, he
explained
Administratively. the tactics of the
new N. r. A. leadership will be en-
tirely different from those OF Gen.
johnson. Where the general was vio-
lent of language and colorful in ac-
ton, the present leaders will adhere
to a program of steady work, as little
publicity as possible and quiet diplo-
macy. Psychologically, the country is
in a mood for the change, it is pointed
out. Anybody who runs vaudeville
show, it was observed in one quarter,
knows that you don't put on two ami
NAL acts, one after the other.
On matters of policy. changes will
come slowly. Members of both boards
have promised there will be no sweep
ing action. New requests from coded
business at odds with the policy prin-
ciples now being adopted will be re-
garded askance. The codes now exist
ing will be gone over, one by one, with
a view to elimination, without eX-
plosion and SO far as practical without
disturbing affected businesses too
much, those provisions which conflict
with the new policy.
Thus the N. r. A. doomS in time
such clauses as that in the ice-making
industry code which prevent the
building of new ice plants and the
introduction of new capital without
the consent of the code authorities.
Thus, also, there is intended for
elimination that provision of one of
the fish-catching industry codes
which resulted in the affixing Of a
quota for every fishing vessel in the
trade and the limitation Of the catch
which it could bring to market. Thus,
also, will be eliminated cost plus
provisions and other price-fixing de-
vices such as those which allow the
declaration of an emergency" by a
regional code authority under protec-
ton of which minimum prices are
definitely set.
Other Principles.
In addition to these policy changes,
the following principles are on the
program:
More effective action to prevent use
of the code system to foster mo-
nopolies.
More efficient protection of small
businesses.
Emphasis upon fuller rather than
less production and open competition
on the theory that this is the only
way the capitalist economy can func-
ton properly.
Stricter enforcement of section IA,
the collective bargaining clause of the
recovery act, but with the Justice De-
partment and other Government agen-
cies charged with its enforcement.
Reduction of the number of N. R. A.
codes.
Consideration of the representation
of the public on the code authorities.
The case against price-fXing is put
by Mr.. Richberg as follows:
Who can be intrusted with the
power to fix fair price that will in
sure justice to labor, investor and
consumer? The answer is: No one,
neither a private association nor a
board of public officials. There is no
fair price that does not depend upon
Vac 4dAA iCoO Va AldtClldl dllO
ton and distribution costs and fair
return upon investment. But the
fairness of each cost depends upon
what is fair remuneration for serv-
ices employed and property used.
What test of fairness can we apply
except the competition between will
ing sellers and buyers in a free mar
ket?
Competition Preserved.
"In this problem we find the justi-
fication and necessity for many of the
so-called wastes of competition, and
the political economic wisdom of
preserving competition. Under the
socialistic theory of production for
use instead of for profit. some one
must decide what shall be produced
and what are the relative values of
services and properties employed, so
that prices may be fixed as the basis
for an exchange Of products. The
total elimination of profit in a social
istic program would not eliminate the
necessity Of fixing costs and using
money as a measure of the relative
values of things and services ex-
changed.
"Yet, in the face of this funda-
mental problem of a socialistic econ
omy which they abhor, business men
continually seek to experiment with
production controls and price-fixing
devices, and thus somewhat uncon-
sciously to develop through trade as
sociations a sort of lopsided guild
socialism which they misname price
stabilization'
They rush in where wiser oppon-
ents of state socialism fear to tread.
How can individual freedom and the
benefits of competitive economy be
retained if any organization (political
or private) is authorized to dictate
how much shall be produced and at
what prices it shall be sold? The
golden rulers of industrial associa-
tions, vested with such political
power, may easily become the 'tyran-
nical bureaucratS' of tomorrow. Busi-
ness men should be able to look ahead
at least that far