Evening star., 1938-08-23
DISTRIBUTION AID
URGED BY ROPER
Process Must Be Freed by
Removal of Wastefu|
Practices, He Says.

loOkISSS9 Nv va JSs
Secretary of Commerce Daniel c
Roper last night discussed "Distribu
tion-the Key Log in the Economi
JAM" on the National Radio Forum
arranged by The Star and broadcas
over a Nationwide network of tn
National Broadcasting Co. The tex
Of the address follows:
I thank The Washington Star ant
the National Broadcasting Co. for tn,
privilege of again participating IL
their constructive educational pro
gram. I am grateful to this audi
ence for past courtesies and I ap
preciate the opportunity afforded mi
tonight to speak on topic of vita
concern to every American-namely
the distribution of the necessities o.
life to the millions of men ane
women needing them. 1t seems para
doxical that in this great country
with it's abundance of diversified re.
sources. that human need could bt
so serious problem. Yet, the con
dition of many of our underprivilegec
people recalls the plight of the an.
cient mariner. who cried, Water
water everywhere and not a drop tt
drink"
In our modern political economy
distribution to the broadest interpre-
tation, is the apportionment of the
products of industry through multiple
processes, and of income among the
greatest number of people. The scope
of the definition thus involves a vast
number of direct and indirect func-
tions associated with the handling and
merchandising of given commodity
from the time it originates as a raw
material to the point where it leaves
the end of the production line and
passes to the ultimate consumer.
The domestic market of the United
States is measured by the potential
needs and desires of 100000 peo-
pile Encouraged by the social and
economic opportunities of their coun-
try. they have developed the highest
standard of living of any people in
the world.
Maladjustments Cited.
that reasonable purchasing power in
their hands would contribute more
than any other factor to maintaining
maximum production in field and fac
tory, to the relief of the problem
of unemployment and to the stimula-
ton of prosperity among all units
of society. Yet, through cumulative
a 10 n illStY,oertc ~ tho IiSfrlhItinn of
income and purchasing power. con-
dition his evolved whereby an esti-
mated one-third of these people are
undernourished, ill-clad and poorly
housed They are out of much of
the market for the goods we produce
because they do not have the means
with which to satisfy their needs.
The situation thus not only involves
their economic well-being, but con-
Germs their health, their moral and
social welfare.
The Roosevelt administrat ton recog-
nized at the outset that the appalling
toll that was being exacted by human
and natural erosion through cumula-
tive Embellishments, had reached the
lOlIG VA iidoiOlioi daAiSSA.
Steps have been taken, through a
realistic agricultural program. to stop
the waste of land fertility, through soil
conservation. This cooperative effort
called for drastic measures but prog
ress has been made in the rehabilita-
ton Of this natural resource. The
question of treating human erosion is,
~ ro,,rce orooter y,rphloro ", 1O29
the wheels of business and industry
were idle because the economic break
down had left large segment of our
people almost wholly without purchas-
ing power. Millions we're not buying
because they did not have gainful en-
ployment, thus production was stale
mated. A vicious circle had been Gre
to break by providing work relief for
the unemployed on useful and endur-
ing public projects, as means of meet
ing a difficult social and economic
problem in a way which would dis
tribute quickly purchasing power for
the products of industry.
A wider distribution of purchasing
IpWcI WdS UiiuS dSilICNCu anu " do
quickly translated into demands on
the retailer. the wholesaler and the
manufacturer for those items necessary
to the American standard of living. A
corollary objective of this program
was increased employment in private
industry and general business i'm
provement. Under this program, re-
covery progressed at an encouraging
pace Then the untimely exertion of
pressure to balance the Federal budget
while the situation was still delicate
failed to comprehend the necessity for
q tapering off of the Federal contribu-
ton. This attitude was prompted
by the erroneous assumption that the
economic defects had been corrected
and that private business was able to
maintain the recovery trend. Concur
rently. too rapidly rising prices and
other forces set in to nullify the efforts
to expand the consumption of goods.
This combination of circumstances
revived the same disastrous vicious cir
cle. The inevitable consequence was
business recession.
The Fundamental Problem.
The equitable distribution of goods
and Of income among the people is a
basically economic problem. To have
lasting prosperity, the people must be
able to buy goods that have been pro-
duced at the lowest possible cost.
When the price range is in balance
And thus within reach, more goods are
consumed and hence more men are en-
ployed to produce those goods. Ris-
ing employment prompts rising pro-
duction and increased earnings for
those who produce. The difficulty is
that the spread between the producer
and the consumer, known as the cost
OF distribution, frequently includes
unneeded services and thus is too
often out Of proportion to the bona
flde cost which the consumer should
be asked to pay and which he is able
and willing to pay. This tendency de-
feats the aims for maintaining pro-
duction through greater consumption.
The pyramiding of needless costs is
Q prime defect in the channel of dis