Evening star., 1936-04-19
JObLESS REMAIN
CHIEF FPROBLEMAS
UPTURN BROADENS
Relief Payments for Nearly
100000 Persons Still
Close to Peak.
REGARDED AS PARADOX
OF AMERICAN RECOVERY
Heavy Industries, Retail Trade,
Earnings and Dividends All
Point to Higher Levels.
BY CHARLES F. SPEARE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, April 18.-The charts
of business activity continue to show
lines pointing upward. Retail trade
has been helped by better weather. In
the heavy industries iron and steel is
conspicuous for a rise of two points
during the week and an approach to
10 per cent ratio of production to
capacity. Corporation reports for the
March quarter reflect higher profits in
the manufacture of both consumers
and capital goods The distribution of
these returns in the form Of dividends
is increasing
Pay rolls in a number of trade lines
are expanding, thus creating a broader
buying base for necessities and luxur-
les. Anticipating their receipt Of bonus
bonds after June IS, not a few vet
Grams are making purchases of auto
mobiles, clothing, furniture, electrical
equipment and arranging for house
repairs and moderniZation.
Authorities PowerIess.
In the phase of unemployment, the
tory. AS the weeks go by and manu-
featuring and retail volumes expand
| there is no corresponding gain in the
number of the employed. This has
been called the paradox of Amer
ican recovery" Payments for relief to
nearly 100000 people hold near the
all-time high. Neither Federal nor
State authorities appear able to cope
with this problem.
1t has been dealt with in a frank
manner by the New York State Court
of Appeals in a decision just handed
down in which 1t sustains the consti-
tutionality of the State unemployment
insurance act.
Unemployment" says the court.
from whatever cause. has increased
enormously in every part of the coun-
try, if not throughout the world" and
asks this question. as there any means
possible to provide against unemploy-
ment, the loss of work, with its serious
consequences to the family, to the
children and to the public at large?"
Big Penalties Foreseen.
The answer does not seem to be
given by President Roosevelt in his
Baltimore speech of April 49, in
| which he advocates the extension of
the school age to 18 and the contrac-
ton Of the age limit of workers to 65.
Nor does the suggestion to reduce the
number of hours of work per week,
while continuing the same weekly
wage, strike favorable chord among
employers or consumers. both of whom
| would be heavily penalized by it.
1t is not so clear how those who
are without work can be given en-
| ployment, as is the method by which
relief expenditures may be better con-
trolled and curtailed. The practical
approach to this problem is through
centering relief administration in the
community where the need for relief
exists and placing on the community
a greater share of the financial re-
sponsibility for its dependent popula-
ton than it is now compelled to as
sumo and shifting the remainder from
the Federal to the State authorities.
Unemployment and its correction,
and relief and its strict application
to the deserving individual or fam
lily are the most important questions
claiming the attention of the Ameri-
can people today. We can postpone
amendment of the Constitution and a
return to the gold standard, but not
much longer may we allow 100000
men and women to continue without
work or permit annual drafts on the
United States Treasury of $1,000, ,000,-
600 for relief and allied purposes.
Cut in Deficit Unlikely.
With little over two months of
the present fiscal year remaining, the
outlook is for a deficit of about the
same size as that for the period ended
June 80, 1885, when it was $3,0O0,-
000, 1000. Nor are there any indica-
tions that it will be much changed
for the fiscal year 1887 If the re-
qested appropriations for relief are
granted by Congress.
Little progress is being made on
the new tax bill. In fact, 1t has been
intimated that it may not become a
law this year. This means more bor-
rowing by the Treasury in spite of
the fact that it will probably be re-
quired to raise from $1,000, 100000 to
81, 500, 100000 in the next three or
four months to meet the cash demands
of the veterans. Consequently, a
Government debt on June 30 next
approximating s33 900, ,OO0,O0 is in
ho
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