Evening star., 1934-11-18
BY OWEN L. SCOTT.


A procession of plans for ending the
depression is parading into print.
One day the Federal Government
Is to guarantee manufacturers against
loss if they will start producing more
and giving more jobs Another day
the F. E. r. A. is encouraging States
to place unemployed at work produc-
ing goods for use by themselves and
by other unemployed Still another
day there is story of plans for the
Federal Government to subsidize build
ing on vast scale. Again, Congress-
men come forward with their pro-
posal to create jobs by forcing a 30
hour week on industry.
The public, in company with news
paper men, gets bit dizzy trying to
keep track of the ideas bursting forth.
What is 1t all about? Is something
new and strange suddenly to descend
upon the country? Why so much
mental activity at this time? If the
truth be known, this is part Of the
ferment occurring in Washington as
different groups of thinkers search for
ways to get the wheels of industry
turning more rapidly.
The Federal Government is up
against the hard fact that relief is
eating the Nation out of house and
home. Already the Emergency Relief
Administration has had TO call upon
the R. F. C. for s215, 1000, 900 to carry
it through November. It's own appro-
priations have been used I'D and the
next session of Congress is over six
weeks away. officials here are reach
ing the conclusion that people simply
have to be put back to work. Congress
is expected to place the seal on that
decision
Since that is so, plans for accom-
plishing that objective, one by one,
are seeing the light of day. Maybe
none will be accepted. But that does
not detract from the attention given
to the plans proposed
The Kent Plan.-This plan, or a
modification Of it, is being urged by
the American Federation of Labor and
was the object of an inspired news
paper story, which asserted that high
Government officials were studying its
possible use. Fred l. Kent, a promi-
nent New York banker, is author Of
the proposal. The central idea of it
is that industry should be encouraged
to get back to work, giving jobs and
turning out goods. by receiving a
guarantee against loss from the Gov
ernment.
The N R. A., R. F. c. and the Federal
Reserve Banks would be used to carry
out the plan. Banks would deter
mine what was the normal produc-
tor of various industrial concerns
Those concerns then would be told
that on certain day they all should
begin producing again just as they
did back in the days when goods
flowed freely. This would mean jobs,
the people with jobs would buy more,
and suddenly prosperity would come
back, as loans increased at banks, raw
materials moved more freely and
trade increased. Such is the theory.
If some goods could not be sold, the
Government would take them of the
hands of the producers. The catch
in the plan is that it would be highly
complicated in administration, and
there could be no assurance that goods
produced would be sold. If not sold,
then, Just as the Farm Board acquired
great quantities of wheat and cotton,
the Government would acquire great
quantities of industrial products. 1t
would have to distribute these prod
ucts or destroy them.
The Deane Plan.-The purpose OF
this proposal is to provide jobs for
every one without delay. It is the
creation of Albert l. Deane, deputy
administrator of the Federal Housing
Administration and a former official
of General Motors Acceptance Corp.
Mr.. Deane says his plan Is not a
theory, but is an engineering tech
nique, which would, first, permanently
eliminate involuntary unemployment;
and, second. supplement the purchas-
ing power of workers to maintain a
normal flow Of trade.
How would he do this? BY an IN
genious method. He would establish
two yardsticks. One would be the
average hours of employment in in
dustry for the past 10 years. The sec
ond would be the average hours OF
employment in industry for the past
month. If the average monthly hours
were shorter than the average long
time hours, then the pay of workers
would be augmented from a national
reserve fund. If the average monthly
hours were longer, then there would
be q tax placed on pay rolls Of EN-.
ployers working employees the Longer
hours. The revenue from this taz
would 60 into the reserve fund, to bt
used in paying supplemental COM