Show r 81 DE DEi i IN i i STUFF a Politics t and Finance Fi f r ht 1 1833 By P Paul ul Mallon 1 WASHINGTON By Paul Paid Mallon The first internal crisis in Iii the he new newt t deli deal has been bren passed The pulse of J n in charge charce is Ia returning to nor nor- f ml 1411 1 There was a. a time a few days daysi i bi bac back k when timid souls near the top feared Industry might choose to fl fight bt the th industrial recovery program Tc That Thai ill Alt has hA been straightened out hl i It jt was accomplished so casually the J public was not generally aware of the drama going on backstage 1 The turn came when steel gave In Sn f slid rid submitted it its code t Now it is Es possible to pr present a fairly clear picture of what will happen i The administration ba has been secretive secretive secre secre- tive tin about Its intentions from the start Those higher up talk glibly but butr r IB us f generalities You can not pin hem them down on what hd they will do tomor tomor- f row There are two reasons for such strategy One is that in the past they I have hare never known what they would I do fr from n m one minute to another Also they k kept pt their program purposely vague Tague so they could alter it without public embarrassment L l r That rha strategy t will be continued of of- t 1 I but off the record The masters mas mas- have their minds made up t p 4 S Sf f f Codes for 10 to 12 major industries will bi bs put into operation by September Sep Sep- r 1 They will be in smooth r r i- i running order about October 1 I The results in increased purchasing power will begin to be felt strongly strong strong- fr h ly Iy about ut that date k As the smaller industries arc brought into the setup a new definite 1 fO level of ot prices will be gradually established It will be fixed automatically auto auto- by consumption and wages if as the ship rights i itself on an even keeL Then Mr Roosevelt will vilI step in inand the content of the and revalue gold dollar so as as to keep the ship at that level We will vill thereupon stabilize on that basis The best ex expert rl guess now is that t we will reach this plan for stabilization tion Hon bon next December or January No Noone gone one one k knows Vs o for sure Something ma may mayko ko go Wrong and delay it il Things may work f faster ster than expected and bring the r results sooner The latter possibility possibility bim is th the best besl S S S e Those who are arc running this economic eco eco- Punch Pinch and Judy show believe theIr tio troubles bles now now have have havet t to do with I was v s th thought u t the the-gov- would not dare to step into th the st steel el business and proclaim a av v- v code tode oae There Ther was considerable doubt higher r up as t lo whether the public would back such a move There is no such doubt about coal That at industry Is in such In-such such a a state of deterioration that the administration administrations s strategists strategists' are confident of public backing in nearly anything they do They will vill not Dot hesitate to step in If it the coal boys bos fail to agree at the coming c m hearings S S S AH AU this other talk about the gov goy r eminent proclaiming other codes is hot air It was manufactured wisely I Continued on Pate Pace Two INSIDE STUFF Continued From Pat Page One by General Johnson to warm up those who were holding out on him It had hac the desired effect You will see ee it die down when the codes are signed Very little trouble Is expected from the smaller industries No attention is being paid to them None will wiLt be until the big codes are arc put Into operation Then they will be handled in a routine way Their codes will wll follow Collow the outlines now being agreed on for lor the major industries 0 There Is one small loophole in the scheme It Il will not bring direct re suits in increased purchasing power for six weeks or more mor By that time our industrial production will have stored up huge stocks stock The new purchasing pur pun chasing power powe will have a hard test consuming those stocks stock Until it does consume them production may slacken The new dealers arc are frightened by this angle They point to the steel Industry in It is not waiting for its code to be ratified before increasing wages It i is creating purchasing power now The people upstairs here are con confident other Industries will do the same Every pressure Is ls being exerted to make them do so That Is 15 why so few tew tears are shed because department store mall mail order and arid chain stores arc are now lagging They cannot lag for tor long with wages going up 0 Many 1 industrialists are not going color Into this new deal dul enthusiastically They do not care to sa say anything an pub publicly but they are muttering plenty about radicalism government Interference In interference in business and such things thinKs For that re reason on the long lone range rance future fu ture tune of the program Is IJ In doubt You Youcan Youcan Youcan can easily visualize the possibility that the next presidential campaign will be fought loucht out on the question of govern rovern meat ment control over business One thing Is certain If the scheme succeeds succeed the opponents will have a hard time changing It S IS Stabilization of international cur curS and tariff adjustments willbe wilbe will wil be in order after Mr Roosevelt finds his new level and revalues the dollar on it IL That will be the time to hold the London conference The steel code was a compromise with labor getting the right to organize or organize and the industry getting some recognition for lor its company union The truth is that Lady Perkins won the argument for labor but the unions will have a ver very hard time ving up their success Organization of ol steel labor is probably still a long longway longway longway way off The only person who can run General Gen eral Johnson Johnsen is his secretary She signs herself herselt b by the b like businesslike name F M. M Robinson She is a pint half size but as 33 smart a as a secretary secretary sec re ry should be S. S When the administration official was asked about business grumbling against the industrial program he replied The proof of ot the pudding is the eating there thereof r. r S NEW YORK By James Copyright McClure Newspaper NewspaperS S Syndicate Chalk up another home run for the new deaL S The rush to file lIe codes in the past few days is due to some ome skillful bat swinging from Washington New York and other tories had their ears pinned back by a series eries of ot line drives off oft their favorite favorit curves curve The threat to establish h a blanket code of ot wages and hours for tor all industry cleared the bases You never saw so many business businessmen men trying to think fast last in your life liCe Until Donald warning speech h ten days ago they had mostly been stalling in the hope the game would be called off otto Then they started to move move but but they still figured they h had hd 60 days Now with a blanket code in the offing they are arc covering ground l like ke Olympic sprinters Their ow own codes cannot possibly cramp their style as much as u a blanket ruling would That's what voluntary cooperation coop cooperation really amoun amounts to in a majority major ity of ot cases case S SS The funny part about it all is that thata a blanket code cannot be legally enforced enforced en tor forced d. d It Is not authorized by the law Everybody and his lawyer knows tha that t. t But Washington took pains to make it privately clear cle-ar to Ne New York ju just t how it would work Industries which had not filed codes of ot their own would be invited to participate If It they declined the Invitation NIRA IRA would tell teU the world about it That doesn't sound like such terrible ter ten punishment but it scared the laggards stiff They realize that public public pub pub- lic tic opinion Is Ls strongly behind the ad ad- ministration And that's a factor they dont don't care to buck The best st authorities here say y that a blanket code will work without legal sanctions for the same reason that prohibition ta failed led with the law latr back backof of ot it it The public has been bun sold a bill billor of or goods goow and it wants delivery S. S S The textile industry is making hay while the sun un still shines The mills are running 24 hours a aday d day y and child labor Is still going strong They know its it's their final spree pree and they're malt make makein in inc ing the most of ot It The wont won't interfere To Todo do doso so would be like depriving a aman nun man about aboul to go on a permanent diet of ot othis his lis last lut hearty meal Insiders rate it more important to gain new recruits than to worry about the minute last excesses of ot con converts verts S S New York the battle over maximum hours as NIRA's stiffest hurdle The They started something when they let the textile Industry get away with a hour 40 week Other codes are using it a. a as ac a precedent Local experts agree that reemployment reemploy reemploy- ment meat will not reach satisfactory levels unless the average e work week Is 15 substantially sub rob substantially Ie less than 40 hours It is as important JoL for the government to carry Its point on this as it ia ls to cs es a decent minimum wage Otherwise we shall carry several million unemployed on permanent relief relief re re- re- re lief liet rolls S S S The first court test of ot the governments governments government's govern governments ments ment's authority will come from the effort to license all milk producers Some of ot the producers are definitely going to fight The betting In informed circles Is ls 5 to 1 that the government wi wins S S The appointment of ot young Edward helped NIRA's NInAs standing in New York The naming of ot Alexander Sachs John M M. Hancock and W. W W W. Cumberland as assist assistants to General Johnson helped still more The first two come from the firm of ot Lehman Brothers and the third is economist for a stock exchange house No one could possibly call them radi radio cals cats Yet they do belong to the rising generation of ot busin business leaders which recognizes that every man for himself him him- sell self is out Judging from New Ne' York reactions they will do some valuable liaison work General Johnson is also arranging to have business men serve as 33 neutral neutral neu neu- arbitrators in case of ot disputes between be between tween NIRA and companies or industries industries indus indus- tries as to the application of ot codes This i designed to make Industry feel it it will not be judg judged d by a hostile tribunal S The bituminous coal code looks o like ilke one of ot the best at first glance but New Yorkers think it has a fat fatal latal l defect Mellon and interests inter ests eats were were not consulted in its pr preparation prepa pa ration They are bus busy in New York now conferring on a counter attack In the end the government will ilI have to step in and smack down the disturbers by imposing its own code It may take a few prosecutions to induce hard eggs to behave well vell Insoft in insoft insoft soft coal The real sweat shoppers were not represented in the appeal code either cither It will take something more than diplomatic tine finesse se to make them toe the mark Their lawyers are busy as bees thinking up dozens of ot l legal gaI ob objections i |