The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-03-05
NRA-Dead or Alive?
BY RAYMOND MOLLY N THE MAGAZINE, TODAY

btlitv of inventing new methods Of collective
bargaining.
Despite the contentious Of the American Fed
Grafton of Labor, the public generally has be-
come convinced that the workers interest will
best be served not by a blind insistence upon the
highest possible hourly wage, but by the devel-
opnent Of some method to provide more work
at a higher yearly wage. We are beginning TO
see that in the field of labor, in the field of
materials, volume, and not unit price, is the key
to prosperity
The NRA has further provided the forum and
the laboratory for intelligent experiment with
the most appropriate methods Of collective bar
gaining The Administration has insisted-and
the recent automobile controversy has shown
the wisdom Of this policy-that opportunity be
provided for the encouragement OF honest and
intelligent experiments in labor organization
The great value Of this is to afford the means by
which methods of labor organization may be i'm
proved and, it is to be hoped to foster an in
creasingly intelligent type Of labor leadership.
THIS may not be to the liking Of those who
Il eniov a present monopoly in the field OF
labor leadership; but it is in keeping with the
resistless process of democracy, which insists
upon constant renewal and rehabilitation OF
leadership in all human activities.
In the adjustment of the relationships be-
tween big and little business, as in the adjust
ment of the relationships between industry and
labor NRA has most difficult and, at the same
time most important function to perform.
I know of no more valuable experience in
American economic history than that of NFA
in the price fixing field Despite the prohibi-
tions of the Sherman Act, there had been a
growing feeling in American industry for years
that some form of price fixing was essential to
the stability Of industry.
There was, am convinced only one way of
demonstrating to business men the fallacy of
Y1rica fNiT1 nd control
to give them an open opportunity to carry it
out under government scrutiny This opportu-
nifty NRA afforded
do not deem the failure Of the price fixing
and pNoducton-control provisions in number
of the codes failure of the NFA. On the con-
trary it has demonstrated that NFA can func-
ton as an effective instrument to dscredit bust
ness practices shown to be uneconomic.
AS a result of the NRA experience with price
fixing, industrialists today coming to realize
more and more that prosperity does not de-
pend as many of them previously supposed
upon high price per unit, which restricts out
put and dries up the market, but upon volume
production which reduces cost and bats the
market. If our experience during the life of.
NRA has taught us one lesson more forcbly
than any other, 1t is that the European cartel
and the American ideal of free business will
not mix.
But, as have endeavored to explain the ex-
perience of NRA has not been sufficient to war
rant the definite determination of its permanent
form.
NRA ought to be continued for another year
or two in its present temporary form
nURING that time, it seems to me. these
II principles merit consideration:
1. The administration of the NRA and the
codes created under it should be greatly SIM
plified. An intelligent suggestion to this end
has been made by Lincoln Filenes Committee on
Unfair Trade Practices a subdivision of the
Business Advisory and Planning Council of the
Secretary of Commerce. This suggestion is to
eliminate from the codes all clauses relating to
economic practice" and to provide, as a sub
stltute, the essential principle of what is known
as Order sc of the Administrator (Feb 2, 1880
This order, in substance, proposes the adoption
Of rules of unfair trade practices by agreement
between manufacturing industries and distribut-
ing trades and their application, so far as pos
Slble IN uniform manner to many industries
Much Of the confusion which NRA has caused
has resulted from an attempt to set up a diff
terent code of practices for each industry
2. The NRA should continue to prosecute it's
work, already begun, of combing out conflicts
and overlappings in the codes. This is a STU
pendous job and, like any job of revision it will
take longer than the original creation of the
codes.
3. The further development Of trade associa-
tlons should be encouraged by the NRA, with
" VIC" " CIle use VI LneSe associations by Dri-
vate industry to the fullest degree in matters
That do not injure the public interest
T. Restrictions and regulations may be war;
rahted IN the natural resources industries that
would be unwarranted in other industries The
special conditions in these industries and the
necessity of conserving our natural resources
should determine the nature and the extent of
these restrictions and regulations
D. 1he MIRA should continue its efforts tn
work out reasonable wage and hour standards
lor INDUSTRY. NRA has had valuable experience
IN this field and it would be mistake for Con-
greSs TO attempt to fix inf1eXible standards of
wages or hours, or to delegate this task to
new agency "
g. The policy recently enunciated by CLAW
Williams, OF limiting the attempt to fix mini
mum prices to strict enforcement of provisions
Tor wages and hours should be put into effect
~ Is not only the most workable, but perhaps
the only legitimate means of minimum price
fixing. paw
T. 1t is obvious that government can not at
tempt to organize labor. The best that demo-
cratic government can do is to insist upon
freedom OF choice by employees in their seiec-
ton OF the organizations best calculated to fur
ther their own interests.