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"New Deal" tops $4 billion in government investment

By HARRY W. FRANTZ

WASHINGTON, July 1, 1933 (UPI)-The dizzy immensity of the "New Deal" is best illustrated by the growth of the Federal employment relief program, which started in 1929 with moral encouragement to the "buy-an-apple" movement and now has attained the status of a $4,000,000,000 enterprise.

Simultaneously, the political tact of President Roosevelt has been indicated in the accomplishment of direct relief measures without raising an issue about the "dole," such as clouded some of the earnest relief efforts of his predecessor.

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With a prodigality not exceeded in wartime, the special session of Congress approved expenditures for public works totaling$3,300,000,000; authorized Federal employment relief grants to states to the amount of $500,000,000; and established a Civilian Conservation Corps-primarily to afford employment to young men-which will expend about $250,000,000.

These gigantic enterprises were designed to correct, permanently it is hoped, an unemployment situation which threatened to produce a national social catastrophe.

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Edward F. McGrady, legislative agent of the American Federation of Labor, told a Congressional committee in February that 45,000,000 people were living in poverty as the result of the economic depression, and that 15,000,000 were directly dependent on charity for their existence.

In March, before the favorable turn in the tide, the American Federation reported national employment at 13,359,000. This figure was reduced to 12, 710,000 in April, and it is believe that at least 600,000 industrial workers have since found employment.

Administrators of the new industrial recovery plan are hopeful that from 3,000,000 to 4,000,000 individuals will find employment before next winter.

Organized labor has characterized the industrial recovery act as "the most advanced and forward looking legislation for recovery yet proposed.

"Briefly, the recovery bill aims to make it possible for employers to raise wages and shorten hours without being undercut by selfish competitors who run their business on a sweat shop basis. The bill will operate as follows: Each industry, through its trade association or otherwise, will establish a 'code of fair competition.' Wages and hours, prices and production scheduled may be fixed, and standards set for trade practices.

"This code of fair competition then is submitted to the President for his approval. When approved the code becomes enforceable by law an the industry is freed from applications of the anti-trust laws that have restricted trade association activities.

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"Heavy penalties are imposed for violations of the code. If any industry does not adopt a code satisfactory to the President, he may establish a code for it; if necessary, to make the code effective, he may require plans to secure a license to operate. The bill expressly guards the right of Labor to organize and bargain collectively, and prohibits yellow dog contacts in which workers sign away their freedom to join labor organizations) and compulsory company union membership."

Also of far-reaching importance in the restoration of employment is the Wagner act for the establishment of a national system of employment offices, to be administered by the states with the cooperation of the Department of Labor. This act in a normal political year would have attracted national interest, but did not even command a roll call when approved by Congress in early June.

The act provides $1,500,000 for administrative expenses in the year 1933-34, and $ 4,500,000 annually thereafter to be apportioned to state employment agencies.

The program for employment recovery will have an important moral and political significance to the nation at large. The public has come to regard the monthly statistics of unemployment as the barometer of the national well being. As the out-of-work totals dwindle, a re-birth of confidence will be increasingly apparent. President Roosevelt has sense this fact and has stated the success of his administration on the vast effort to find jobs for willing workers. Not even the war-time mobilization by the draft affected the destinies of a greater number of individuals.

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To the average American man without work, the finding of employment will mean in fact a "new deal." All other considerations are for the moment secondary.

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