UNEMPLOYMENT IN AMERICA

Hokitika Guardian, 3 November 1930, Page 7

UNEMPLOYMENT IN AMERICA

(Exchange).

Recognition of the gravity of the unemployment problem in the United States, which is emphasised in recent cable messages, is finding reflection in measures for affording relief to those out of work which are being put in hand, it would appear, with some promptitude. It had for some time been recognised by the? American financiers that the pinnacle of prosperity in the United States had been leached, and that a downward trend had begun, but it was not realised that the descent would tend to be so precipitous. Owing to the lack of coordination between the departments in the various States in touch with the unemployed it is doubtful, in fact, whether it was appreciated for a long time after unemployment had become serious to what extent the evil had

grown. The Official reckoning is that the unemployed in America number 3,500,000, and unofficial estimates place the total at close on 6,000,000. This disparity might suggest that the situation has developed with disturbing rapidity. Atld from the nature of th« gloomy prognostications from American sources it would ho gathered that conditions are expected to he worse during the winter months. The trade of the United Statees with foreign nations has declined on account pf ,• yhej Reduced spending power of her overseas customers. The disastrous slump on the Wall street stock market a year ago was a warning that many industrial concerns were feeling the pinch, and their slow progress towards recovery was arrested recently by another fall in prices.

“The anniversary of the Wall street crash,” a recent cablegram stated, “finds the country in a more serious economic depression than at any time during the course of the year.” In a report issued in July the National City Bank of New York reviewed the causes of this depression* which were complicated and varied, and, in discussing the'’possibilities of an improvement, stated: ‘‘Business pretty much the world over is sick, and it will serve the cause of revival better to face this fact squarely and with determination. . . . • than to cherish an over-optimism as to the date and period of convalescence.” The United States, in fact, has been over-optimis-tic.

Prosperity in the years following the war was immense, and appeared to be progressive, yet the report records that for the past year production of new manufactured geeds has been either declning or held m check at low levels.. The people wllO have money have continued to spend it, unaware that their number was diminishing as the cnpacity of the markets of the United Statesi abroad to absorb American goods diminished The estimate of the International Labour Office four months ago that the percentage of idle workers in the United States was sixteen, while in Great Britain, where most complaint has been made, the percentage was twelve, must have come as a distinct shock to many complacent Americans. Since that time recognition of the amount of' distress has become unescapable. Even with an unemployment problem of serious proportions America is, of course, immeasurably better placed than the impoverished countries of Europe. The relief schemes reported as under way in the various large cities, and in some States, could only be contemplated by a country in which money is easily obtainable. New York financiers, it is stated, have undertaken to raise a fund of one hundred million dollars to create work for the workless. Chicago is embarking upon a twenty-five million dollar road construction programme

In other parts of the United States money is being raised apparently with etqual ease and optimism to cope with the problem. Thus the American peoples are pictured as making something like a gesture of defiance of the economic bogey of depression, and the hour of reckoning is perhaps to be postponed, possibly avoided altogether. But such measures are based upon the philosophy expressed in the National City Bank reflection that “the of industry in this country does not contain any long drawn out depressions.” Optimism is perhaps justified, in the case of the United States, but the distressing nature of the world unemployment 'crisis suggests tliaft the causes are such that optimism and the large expenditude of moneys in relief work rather than remedial schemes may be over-valued.