U.S.A. RECOVERY

Rotorua Morning Post, Volume 3, Issue 613, 18 August 1933, Page 5

U.S.A. RECOVERY

(Press Assn.-

NOT PROSRESSiNG COMPLEX FACTORS THREATEN MR. ROOSEVELT'S SGHEMES INFLATION DEMANDED

-By Telegraph— Copyright).

(Rec. 11 p.m.) New York, August 17. A variety of unfavourable factors threatens the success of Mr. Roosevelt's national recovery pro'gramme. The ehief of them is the extreriie difficulty of foririuiating trade codes for the four great American industries — petrol, coal, steel and automobiles. Moreover the labour diMcuIties are flari'rig up again on divers fronts. Sixty thousand dressmakers werit on strike to-day in New York city against whai one of their leaders described as "sweat-shop conditions." The basic barrier to a corifed-er'a-tion of the four major industries seems to be the desire on the part of these four industries, particularly the petroleum interests, for some form of Government relief. The automobile indutsry is being delayed by the failure of Mr. Henry Ford to indicato his attitude as one of the greatest employers of labour in the Uriited States. The position was reftected in a sharp drop iri commodity prices today. As the pegging requirements of the Chicago Board of Trade were withdrawn, the accuriilatiori of selling orders caused prices to collapse. No support was forthcoming fromoutside and wheat dropped 5 points, corri 4 points and other grains proportionately. The continued strengthening of dollar terms corresponded with the weakening of domestic conu modity prices. There is a growing demand for outright inflation but Mr. Roosevlt is unwilling to tamper with capital unless it is absolutely necessary.