Evening star., 1934-03-30
JOHNSON ORDERS
INDUSTRY ANSWER
ON Job EXPANSION
Survey of New Investment
Fields for Idle Capital
Linked With Drive.
NEW HOME DEMAND
BRIGHTENS PICTURE
R. F. C. Studies Plan to Help
Finance Residence Building.
Jones Opposes Direct Loans.
BY the Associated Press.

BY the Associated Press.
The Government is determined to
press its re-employment drive, and
may branch out into new fields in SO
doing.
Two principal developments stim-
ulated the interest in the movement:
/. A letter from Hugh S. johnson
to all code authorities in the durable
goods and consumer goods and service
industries, asking an immediate re-
port on how many more men they
could employ-to which he added
land if not, why not"
2. A Federal survey of possible new
investment fields into which idle pri-
vate capital could be poured to pro-
vide more work for the jobleSs.
Reports Due April 4.
The N. R. A. chief minced no words
in asking for possible Unemployment
statistics from the two big industry
groups. Both were requested to re-
port not later than April A.
Johnson's action was taken after
reading reSports from the two special
industrial committees created after
the roundup of criticism here. The
reports said it would be unwise to
order a fiat 10 per cent reduction in
working hours while keeping wages
at the same level.
In order to help determine
promptly" he said in his letter to
the code authorities, whether your
industry has the ability to meet the
Presidents request of reducing hours
by 10 per cent without reduction of
weekly pay, I would like you to advise
me whether your industry is in a posi-
ton to do this, and if not, why
not"
Homes Project Weighed.
The new investment survey plan is
closely allied with this movement. A
drive for home construction and mod
ernization might play a part, al
though, in the words of Frank c.
Walker, head of the Presidents Emer-
gency Council. the project is still in
the study stage. with a week or 10
days expected to elapse before a de-
cision is reached.
"The National Emergency Council"
Walker said. has been interested in
this movement largely because it
would provide an additional outlet for
idle private capital and at the same
time would energize the heavy and
durable goods industries
Into the whole scheme could be
fitted such projects already contem-
plated by the Government as the Gre
alton of subsistence homesteads. slum
clearance and emergency housing.
One of the things not yet decided,
however. is whether the Government
would step directly into the financing.
or act as sort of a guide for the in
vestment of private capital.
In this connection it was pointed
out that the proposal. already made,
of arranging for long-term loans to
private enterprises might be used.
Machinery Status Probed.
While the home building projects
and slum clearances constitute an
important part of the new plan, other
capital goods phases enter also into
the picture 1t was pointed out one
outlet for investment capital-inter-
related with expanded employment
would be replacement of industrial
machinery. factory buildings them
selves and incidental equipment.
In this connection there has gone
forth to several of the large indus
tries, including cotton textile, ques-
tionnaire asking what new machinery
is needed. The industries also we're
asked if replacement machinery is
necessary and no commitments have
been made. why they have not.
Discussion of the general plan sug-
gested that its eventual directing
Continued on Page 7, Column g.