Evening star., 1934-04-21
FEDERAL RELIEF
HELD INADEQUATE
AT SPECIAL QUIZ
Speakers at Cosmos Lunch
con Continue Criticism
of Policies.
UNEMPLOYMENT GROUP
SPONSORS SESSION
Recovery Program Keeps Funds
Away From Purchasers,
Is Charge.

and many States were held wholly
inadequate by a number of witnesses
who testified at a special unemploy-
ment hearing today in the Senate
Office Building.
At luncheon at the Cosmos Club
that followed, speakers continued their
criticism of Federal policies and
charged that the recovery program
is keeping funds away from pur-
chasers," 'wrecking purchasing
power" smashing living standards
and maintaining starvation zones.
The two sessions were held under
auspices Of the Joint Committee on
Unemployment, with headquarters at
113 First street northeast and was
backed by Senators Costigan Of Colo
RADIO and Wagner Of New York, Demo-
Gratis; Cutting Of New Mexico and
La Toilette of Wisconsin, Republicans
and Representative Connery, Demo-
crat, of Massachusetts,, chairman OF
the House Labor Committee.
Figures Are Quoted.
Harry L. Lurie, director of the Jew
ish Bureau for Social Research OF
New York, quoted figures to show the
decrease in relief funds expended by
the Government Between January
and April, he said, the reduction was
approximately 70 per cent and af-
fected nearly 100000 families.
THE standard of living of millions
of unemployed" Lurie said. has been
drastically reduced by action of the
administration. Cheapness
of relief and timidity Of governmental
employment projects are socially
devastating"
DR.. Sidney E. Goldstein of New
York, chairman of the Joint Com
mittee on Unemployment, cited un-
employment relief statistics for New
York, and asserted that the entire
program was far inadequate
More important" he said, SIS the
fact that the city and State, like the
Federal Government, are thinking of
the unemployed in terms of relief in
stead of work and wages. What the
unemployed want is work and an op-
portunity to maintain themselves in
decency and self-respect."
Termed Riot Insurance.
Pennsylvania relief was character
lied as "an inefficient form of riot
insurance" by Miss Rose M. Stein oi
Pittsburgh, secretary of the League
for Social Justice. In that State. she
said, relief grants average about $3.50
per month per person. This low
standard. she said, is responsible for
a so per cent rate of malnutrition
among children In industrial COM
munities.
Warning against possible violence
was sounded by Glenford w. Law
renee, speaking for the Unemployed
League of Chicago.
"a good morale resulted from the
c. w. A. work in spite of its defects" I"
he said. "but there has been a terrific
breakdown of that morale under
present conditions which is leading
not only to great unrest, but an
alarming increase in threats OF
violence"
Similar critical testimony was Of
fered by several other witnesses, in
cluding Dr.. W. G. Bergman Of De-
troit. former secretary of the Mayors
Unemployment Committee; Howard
Kester, Nashville, Tenn; NJ. l.
Rubinow, Cincinnati, and others.
At the luncheon the subject under
discussion was Mass Purchasing
Power or Callapse." DR.. Goldstein
presided and the addresses were
broadcast.
Scores Demands OF Capital.
Prof. John Dewey, noted educator,
discussing What Keeps Funds Away
from Purchasers" scored the demand
of invested capital for dividends on
stocks and interest on bonds as the
chief cause for lack of mass buying
power.
THE cause for the destructive
absence of purchasing power is simple
and evident" DR.. Dewey declared.
The income that goes to property,
that is to investors, through dividends,
rent and interest, is out of all propor-
ton to that which goes to farmers, to
workers in factories, stores and offices.
Hence the mass purchasing power of
the Nation as a whole is paralyZed." F"
DR.. DeWey'S arguments were sup
ported by DR.. Jerome Davis of Yale
Theological Seminary, who criticized
the new deal as not going far enough.
The working class, he said, has borne
the brunt of the depression and today
the average workers income in only
1896 year. He urged that the work.
ing men and women demand passage
of the Wagner unemployment insur-
ance bill and the Wagner labor bill.
Frazier Describes Bill.
Senator Frazier, Republican, of
North Dakota, also a speaker at the
luncheon, described his bill just in
troduced in Congress to create q
Government marketing corporation
empowered to buy, process and sell
farm products to ultimate consumers
The present economic situation, he
described as "the battle of producers
and consumers against exploiters."
Government must take the gam
bier out of the bread basket" Senator
Frazier said.
THE Department of Agriculture
shows that in 1882 and 1888 consum-
ers paid nearly SO for every dollar
which the farmer got for his products
This spread of nearly twice what the
farmer gets for handling and process
ing charges is blocking consumption
and making it impossible for the farm
er to keep on producing.
"ThiS economic and unnecessary
spread is the result Of the profit sys-
tenn. It is the duty Of government
to enable all the people to get foods
at price which meets real production
costs but does not include ,unearned
profits to superfiuous and inefficient
methods of distribution. Last year
the Chicago Board of Trade dealt in
over 10000, 100000 bushels of wheat
or about 20 times the actual consump-
ton Of wheat"
Addresses also were made by Rep
resentative Connery, A. F. Whitney
president of the Brotherhood of Rail
way Trainmen and chairman of the
Railway Labor Executives Associa-
ton; DR.. Paul F. Brissenden of the