Evening star., 1934-12-02
Small Business Seen in Grim Fight
Trying to Conform to i. S. Activities

trduON expenditures! OlCl tucy
help revive things?"
Both would help greatly. he re-
marked. But Government checks
were promised to hog farmers for de-
livery about 10 months ago. They
haven't arrived yet because county
agent in the county told the farmers
that this would be a good chance to
mulct Uncle Sam of some extra cash
by kiting their figures. But Uncle
Sam wouldn't mulct, and so 100000
that should have gone into the region
is unpaid.
AS for public works, two big prof.
ects we're planned. One was high
school addition Bidding for the con-
tract was on the basis Of the then
prevailing wages for skilled labor at
S1.10 an hour. But about time action
was to start an A. F. of L. organizer
came on the scene and said nothing
would be done at wage Of under
$3.50 an hour for skilled workers. So
more Government money is waiting
to come into the region for spending,
but hasn't arrived.
Up against an acute problem, the
business man closed down two Of five
floors in his store, let out clerks until
his employees number fewer than 100
and settled down to fight 1t out. He
reported that October showed profit.
+
But there still Is need for capital.
The employment gains that came
early in N. r. A. have been wiped
out. There is offered situation of
the type that must have been in the
mind of Donald Richberg, No. l as
sistant to President Roosevelt, when
he said the other day, speaking of
N. r. A.:
UNLESS these measures to provide
new and permanent opportunities of
employment are speedily made ef-
fective, we may soon find that shorter
hours, increased wages and increased
production costs will not relieve, but
on the contrary may increase the
problem Of unemployment, which
must be solved"
While this particular business mans
troubles were caused in part by the
requirements Of one Government
agency. the writer found him trying
to solve those troubles through another
Government agency. He was look
ing for credit. With him was banker
who was willing to extend that credit
If the Government, under legislation
passed by the last Congress, would
underwrite it for 20 per cent and allow
the loan to be classed as liquid. He
wanted that so book examiners would
not class the loan as frozen"
The store owner had been trying
since July Is to get that direct Gov
ernment loan, which Congress in
tended to make available to employers
in his position.
He had started with the Federal
Reserve bank in his district. He had
filled out the intricate application
form. His collateral had been put
into shape. The application went up
in July and little was heard until Sep
tember. Then he went to the Reserve
bank, 300 miles away. to get a hear
ing. The governor of the bank
greeted him-so he said-with the
remark:
what have you to say for your
self? We will give you five minutes
to state your case"
Since the case was stated in the
greatest detail in the application, the
business man saw little that he could
add in five minutes. He got no
action, but did learn that with $24,-
100000 in applications this bank had
made 5000, 900 in loans and its officials
were reported out Of sympathy with
the whole idea.
So he turned to the Reconstruction
Finance Corp. in Washington. 1t is
authorized along with the Federal Re-
serve banks to make commercial loans
for periods up to five years. At the
r. F. c. he had found a sympathetic
reception and was making progress.
He had seen Jesse Jones, chairman of
the board, and was on the way to
getting an answer of yes or no, to his
application.
In case the answer is NO." he may
be faced with the necessity of shut
ting up shop.
This business man Is not upset by
his experiences.
But the question raised by Mr..
Richberg and others is whether q
community is better of when it is
supporting larger number of its
members on some sort of wage, than
when 1t has some members on q
socially desirable wage and others on
relief. Also 1t raises the question
whether there should not be greater
flexibility in N. r. A. to adjust its
requirements to different communi-
ties.
| copyright. 1934)