NATIONAL RECOVERY

Hokitika Guardian, 30 August 1933, Page 1

NATIONAL RECOVERY

I ' AMERICAN EXPERIMENT. ADVANTAGES AND PROBLEMS. NEW YORK, Aug. 14. Dun and Bradstreets’ business review pays a tribute to the National .Industrial Recovery Act by declaring that families in all pares of the United States are > n possession of increased incomes, and that stronger' buying power is certain to develop under ‘'the unrelenting stimulus s of. vigilant Government measures.”. “The liaze which hung over general

trade activities a week ago because of the confusion arising from the interpretation of the new codes and the appearance of restricted seasonal recession in scattered industrial divisions, says the review, “apparently has been cleared. - . “Widespread enrolment under tno ‘Blue Eagle’ agreements has removed most of the hesitation as augmentation of forces,, and resultant 1 higher wages have dispelled all doubts of benefits to accrue from the adoption of temporary or permanent codes.” This does not mean that the miracle of revived prosperity is be.ng achieved without complications arid some terrific confusion, or without other signs of growing pains, MuC-h anxieiv recently occurred because it appeared that in textiles and some other industries every shelf and warehouse m the country was overtaxed with new goods pushed out from plants before shorter hours and higher wages, meaning higher costs, intervened. What worries the cotton mill executives is finding that large distributors of finished goods are stocked to the hilt, and to-day mills running under the code are for the most part not running on present orders, but in the hope of future orders. An additional element of uneasiness is found in the, heavy processing tax to meet the Government’s 120,000,000 dollars payment to cottqn farmers for destroying part of the. 1933 crop. The tax amounts to 21 dollars a bale, costing 50 dollars. The processing tax will exceed the capitalisation of mail} plants • ' From, all over the country come declarations like this; ‘“We are trying to obey the President and the law of the United States, hut nobody knows how., this will all.come eut.” From all points of the compass, sign s multiply that before the end of August, there, will be lively battles to compel recalcitrants to come in. “The proprietors of chain stores who violate the re-employment agreement had better watch their steps,” said General Johnson at a newspaper conference to-day. “The removal of the ‘Blue, eagle’ from any establishment will be equivalent to economic death,” he declared.