Evening star., 1934-11-18
Epidemic of Plans to End Depression
Seeks to Speed Wheels of Industry

pensation to workers during periods
when their hours of work were short
ened below the average
But that would not take care Of all
unemployed. For those who would
not get jobs through activity created
by augmented purchasing power there
would be a broad public works pro-
gram. Unemployed would register. If
tering, they would be put to work by
the Government Wages would be 20
per cent below the prevailing wage
The whole plan is designed TO build a
stable purchasing power.
AS with other plans. Government
officials who have studied the Deane
plan say the problem of administra-
ton would be so difficult as to battle
solution. Mr.. Deane has just reshaped
his plan and it is back in the mill.
The Harry Hopkins Plan.-As ad-
ministrator of relief for the Nation,
Mr.. Hopkins is deeply stirred by the
enormous social and economic waste
of unemployment. He wants to put
these people to work making things
for themselves and other unemployed
His idea would be to bring together
idle factories, idle men and surplus
raw materials. He also would let un-
employed build their own commune
ties on land supplied by the Govern
ment. This smacks Of the e. P. I.
c." plan, sponsored by Upton Sinclair.
1t is much opposed by manufacturers.
PIIt larno coUir1nc in iaf
made possible through this approach.
The pressure for those savings is
growing all the time. While there is
pressure for savings, there is pressure
from the unemployed for a higher
standard OF relief. In the face of this
situation, the Government gradually
is being driven toward devising ways
to put those on relief rolls to work.
1t Is seeking to sidetrack responsibility
by letting the States carry out the
program.
If recovery is not generated by one
means or another, then pressure for
putting those out of jobs into some
form of productive enterprise is ex-
pected to become increasingly intense.
The Spending Plan-This takes vari-
forms and is sponsored by a number
OF officials. The form of spending
most In favor now is that urged by
Mariner S. Eccles, new governor of
the Federal Reserve Board. Mr. Eccles
believes Federal expenditures should
be planned so that they will encourage
private spending. He believes that
every Federal dollar spent on recovery
projects should generate the spending
OF four or five private dollars.
How could this result be accom-
plshed? Mr.. Eccles thinks one way
would be for the Government to sub
sidize the building of homes. He
points out that although there is a
tremendous pent-up demand for new
houses, people hold back from building
because they now can rent or buy a
home more cheaply than they can
build. Building costs are out of line
with other costs.
The Government might provide a
subsidy for individual builders ndi-
rectly by financing reduced freight
rates on building materials, or by
financing changes in building meth
OAo. A SOO4 ACdl VI OIuQy ID OCA46
directed at the opportunities in this
field. Then there are q multitude of
plans for direct spending of money
through one means or another.
Large-scale Federal expenditures
still stand at the top Of the recovery
plans.
Thirty Hour Week Plan.-The de-
mand for placing limit on the num-
Der Of hours that people can WORK
in industry promises to be strong In
the new Congress. Pressure for this
plan is so strong that it Is inspiring
serious consideration for the other
schemes for producing recovery.
A 30-hour maximum work week is
favored by the American Federation OF
Labor. 1t is opposed by President
Roosevelt OF all the proposals under
study, this alone is reaction to the
plan of recovery by restriction, already
tested and found wanting. 1t is the
N. r. A. principle carried further.
Job-creating possibilities might be a
deep disappointment, owing to the
necessity for industry to hold down
costs. If wage rises do not accompany
hour shortening, then many workers
would suffer reductions in income. If
they do follow along, then higher
prices readily could nullify the gains.
What high Federal oficials really
hope is that recovery viii come along
under its own steam to relieve them
from the need of trying out many
more plans. Experience OF the past
year has left them cold to many forms
Of planning. But without early re-
covery, Congress is sure to be inter-
ested In new plans.
! (copyright 1e34)