Evening star., 1936-03-08
Unemployment Problem
No Nearer Solution
By Owen L. Scott.

AACoAuC1lb 1VOOocFclL LOOdy Illus IllIIl"
self just about where he started three
years ago in seeking an answer to the
Nations most difficult question: What
to do about the millions of unemployed?
The New Deal has spent nearly $l2,-
O00, 100000 in three years on series of
vain efforts to answer that question. Its
planners have tried controlled econ
omy, a planned economy, third econ-
omy and. pump -priming-only to run
into trouble and to end up with the ques-
ton pressing as closely as ever on their
heels.
Now stab is to be made at building
a new New Deal on taxation of the un-
distributed portion of corporation earn
ingS in the hope that industry can be
made to prime its own pump.
But the experts are divided on the
question of whether this proposal of
the President would result in more busi-
ness activity and decline in unemploy-
ment, or would simply add new jolt
for business and increase unemployment
X
Mr.. Roosevelt cannot wait for an an
swer. He is having to 60 to Congress
for another huge appropriation to use
in continued finance of work relief. Even
with revenue from the new taxes, the
Federal Government will be unable to
pay for this program except by bor-
rowing. .,
How pressing is the relief problem?
At the moment it is as heavy Or heavier
than at any time in the depression. The
Presidents $4,000 100000 work fund Is
caring for about 3,750,00O families. An
other 100000 are supported by States
and localities, bringing the total families
on relief to about 5,250,0O0. A seasonal
decline is about to set in, but the prob
lem remains as great as ever.
To complicate the picture, the Bureau
of Labor Statistics reports that industries
reporting to it advise of increases in un-
employment for January totaling $50 900.
The National Industrial Conference
Board report shows an increase of more
than 100000. The American Federation
of Labor asserts that 100000 persons
lost jobs in January, the largest loss
in five years.
In other words, the number of idle
persons continues to be staggering in its
total and the care of these idle remains
as big problem as at any time.
What to do?
The President still is depending on
private industry to absorb the idle
workers. He is offering his latest tax
bill not only to raise more money to
finance the farm program and the SOL
diers' bonus, but also to try to force
industry to pay out more of its earnings
in the hope of stirring up increased
activity.
At the same time, Mr.. Roosevelt is
prepared to push ahead with his work.
relief program. giving Federally financed
jobs to the bulk of the unemployed who
are able to work The cost of this ven-
ture is not far from SO, 900 900, ,0O0 a year.
Not only is the cost high, but COM
plications are arising.
First, there is the problem of dis
eliminating between needy citizens. An
arbitrary rule now divides one class of
idle from another class. Jobs will be
given only to those who were on relief
rolls before November /. 1885. They are
the preferred class, with new vested
right in Federal jobs. Those who ran
out of resources later than last November
have to take what relief their localities
will give
Next, there is the criticism of the re-
turn the Government gets for the money
it is spending.
Maj. Gen. johnson Hagood, who lost
his job because he called work relief
money stage money on the ground that
you can pass it around. but you cannot
get anything out of it in the end" merely
echoed what large numbers of people
have been saying. Relief labor is not
efficient labor and taxpayers argue that
they don't get their moneys worth from
the outlays.
In answer to that, relief officials say
that there was nothing at all to show
for the billions that went out in grocery
orders under the dole. They contend
that, under work relief, the Nation gets
something to show for its money and the
unemployed have some chance to pre-
serve their skills and their self-respect
by giving some service in return for the
wage they get.
But the biggest problem of all is turn-
ing out to be political. Dynamite is
found to be wrapped up in work relief.
X X *
When Congress voted $4,000 900 900 to
the President for use in relief, it at
tached string to the grant in the form
of provision that all persons appointed
to jobs drawing salaries of $1,000 or
more must be approved by the Senate
That is the standard method of OPEN
ing the flood d-gates of patronage.
State relief administrators, in most
cases. earned more than 5000 year.
Consequently, to hold their jobs, they
needed to get the support of their Sem
ators. To get that support there fire.
quently had to be promises concerning
the filling of the vast number of admin
istrative jobs that naturally grew from
this huge program.
What happened in at least one State
is told by Senator Rush Holt of West
Virginia.
Senator Holt is an arch New Dealer
and a Democrat. His complaint seems
to be that he was left out in the cold
when the jobs were being handed out.
Whatever the cause, the resulting agita-
ton created by the Senator is serving
to show how the system was working.
Senator Holt said, referring to the relief
administrator in his State: .
IF man goes to get job from any
county, he must get letter from the
named political boss in that county.
Right here on my desk have his (the
administrator own letter showing the
pay roll, noting the recommendations for
the various workers in each and every
county of the State of West Virginia.
In other words, it is not to give person