Evening star., 1936-05-12

three years. Thus, in any appraisal
of the important issue Of eXpendi-
lures, business must not be concerned
with what has happened in the past,
even though such actions can prop
erly be justified as essential to the
recovery we enjoy today. Naturally
in such vast program of expendi-
lures mistakes have been made, but
whatever these circumstances have
been it Is not constructive thinking
If these events of the past are allowed
to becloud or obstruct fair appraisal
of the present conditions and trends
and their projection into the future.
Unemployment Major Issue.
Unemployment constitutes a major
program which, while gradually less
ening in degree and severity. still de-
mands the vigilant attention of both
business and government. In an ad-
dress before the United States Cham
ber of Commerce on April 20 I pre-
sented detailed analysis of the prob
lem of increasing employment and
production. shall not, therefore, dis
cuss methods and procedures in this
talk. But I do wish to repeat the
principle involved in seeking a con-
structive solution of this problem.
Under the prevailing system, as long
as person is employed he is a unit
of the economic order and a member
OF the business organization with
which he works. However, when the
employe loses his job and his pay roll
status, he is no longer a member of
that organization nor an active unit
in the economic system. As long as
economic conditions are good and
there Is not a large number of un-
employed, the problem faced by the
worker who loses his job is not such
serious one. But when there are
several million unemployed in excess
of the normal. the situation is grave
and often tragic. When there are
no other sources Of relief, the Federal
Government must provide protection
against want and privation. That
costs money. And such money must
come from taxes. That is the essence
OF our system. Thus we see that pri-
yate enterprise, either directly or in
directly, has the responsibility. Grant
Ing this situation, I believe that busi-
ness must give increased attention to
the development of both immediate
and long-term solutions. Unemplov-
ment in one industry sooner or later
Will affect other industries which
may for time maintain a fairly
high level Of employment. We can
easily see how the problem overf1ows
into all industries and becomes of ma
tional Importance.
Studies Being Made.
In recent weeks have been greatly
encouraged by increasing interest in
developing effective cooperative en-
deavors between business and Gov
ernment. In conferences with the
presidents Of two of the largest busi-
ness associations In the country we
have made real progress toward mu-
tual and cooperative studies between
these organizations and the Depart
ment Of Commerce. There Is a grow
Ing recognition of the fact that un-
employment cannot be solved until
industrial leaders devote comprehen-
slve attention to practical analyses of
the problem. The more research ac-
tivity and study that business brings
TO bear upon this problem, the less
misunderstanding there will be in the
months ahead with respect to the
Governments program. These bust.
ness studies should be supplemented
by the cooperative study of those
acquainted with local relief require
ments.
To this end it is necessary to study
not only the relief problem, but also
all unemployment through local
agencies and from local viewpoint to
find ways Of providing additional en-
ployment and of prompting self-re-
spect against unnecessary charity.
The cooperation of the local people
and local organizations in reassum-
ing responsibilities in this important
public service is vital to the economic
and social welfare of the Nation. We
cannot afford in the interest of safe