Evening star., 1937-04-06
H0US|NGB|LLH HELD
BOON TO JOBLESS
Offers Best Prospect for
Unemployment Solution,
Wagner Declares.

The housing industry offers the
best prospect for permanent solution
of the problem of large-scale unem-
ployment, Senator Wagner, Demo-
crat, of New York declared last night.
He added that this is problem that
must be solved IF we desire to pre-
serve our economic system
The Senator, author of the hous-
ING bill now pending before the Sen
ate Committee on Education and La
Dor, spoke in the National Radio
Forum, arranged by The Washington
Star and broadcast over Station
WRC and coast-to-coast network
of other National Broadcastlng Co.
stations.
The unemployment problem was
not created by the depression, the
speaker declared, but it reflects the
rate of chronological change, the dis
placement of men by machines. To-
day every fifth man has been replaced
by machine, Wagner said
This age Of power should not
make us feel helpless" he continued
"On the contrary, it should strength
en- our determination to direct this
power to the service Of society.
The great challenge Of today Is
to find new opportunities-to locate
the industries which have not shared
In the recovery drive, which are so
far retarded that they afford an
opportunity of the immediate invest
ment of capital and the immediate
absorption of men. Every one who
has examined this question seriously
has come to this conclusion: The
industry whose further development
offers the greatest prospect for the
country today is the housing in
dustry."
Text Of Address.
The text Of Senator Wagner's
speech follows:
For more than year our economic
recovery has been proceeding by leaps
and bounds. There is no time now
10 summarize all the evidence of this
recovery. I call your attention, how
ever, to the following statement, made
BY one Of the best known and most
reliable financial journals:
Recovery is going ahead under a
strong momentum. The great advance
within q single year, as measured by
the business statistics, employment
and pay roll figures, and corporate re-
ports for 1886, shows how greatly all
groups in the economic system stand
to gain by giving their cooperation to
keep the upswing going. Business has
come long way from the disorder and
paralysis which threatened almost to
destroy it only few years ago, and as
far as volume of production goes, is
back to the so-called normal"
We who recall that disorder and
paralysis of only few years ago" must
do everything in our power to prevent
its return. Never again do We want to
see the American people plunged into
that black night of despair. In the
comparative brightness of today, we
should be foolhardy to overlook the one
cloud still hanging above the horizon.
What is this cloud? 1t is the
presence of large-scale unemployment,
still disturbing our peace Of mind de-
spite our best efforts Every one knows
that we cannot deal with this problem
forever on a catch-as-ca catch-can basis.
We must solve it permanently if we
desire to preserve our economic system.
Any attack upon unemployment
must realize that the problem was not
created by the depression. In its long
term aspects it reflects the rate OF
chronological change, the displac cement
OF men by machines. While this ten
dency has always received notice,
there are few who realize its startling
significance. have here some figures
which indicate that the average worker
In the steel industry, who could pro-
duce only IS tons of finished steel per
year in 1900, could turn out 1873 tons
in 1929. In the electric light industry,
each worker who made 10000 bulbs
In 1920 made 100000 in 1881. During
the depression the rate of change was
faster then ever. Today 100000 men
can do the work of 100000 in 1929.
Every fifth man has been replaced by
machine.
This age of power should not make
rs feel helpless. On the contrary, it
should strengthen our determination
to direct this power to the service Of
society. We have always believed that
new inventions, by increasing the
range and possibilities of human
efforts, would increase employment
and promote higher standards of liv-
ing. This, indeed, is true, provided
that the workers displaced from one
industry can find employment in an
other The men displaced from one
industry can never be reabsorbed in
the very places where they were found
no longer necessary.
The great challenge of today is,
therefore. to find these new opportu-
mites. 1t is to locate the industries
which have not shared In the recovery
drive-which are so far retarded that
they afford an opportunity for the
immediate investment of capital and
the immediate absorption Of men.
Every one who has examined this
question seriously has come to this
conclusion: The industry whose fur
ther development offers the greatest
prospect for the country today Is the
housing industry.
1t is matter of general knowledge,
and Of grave concern, that the pro-
vision of housing for our people is
sadly disorganized. Residential build
ing suffered most during the depres-
sion. While industrial activity fell to
81 per cent of normal in the gloom OF
1882, home building dropped to II per
cent OF normal. Today, with indus
trial activity speeded up to lit per
cent Of normal, housing lags far BE-
hind at ~. After eight long years Of
stagnation, despite tremendous &C.
cumulated housing deficit, and despite
vast increase in population, we are
now building homes at only one-third
the 1920 rate.
Building Affects Many.
What does this lag in home building
mean? It means direct unemploy.
ment for almost 100000 workers. L
we take all the men In the United