xt7wwp9t2q46_69 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 72 "Dangerous Experimentation: A Discussion of Policies and Performances Apparently Based upon the Belief that Perpetual Motion Is Progress and Involving the Squandering of Public Money upon Socialistic Undertakings of Doubtful Constitutionality," October 28, 1935 text No. 72 "Dangerous Experimentation: A Discussion of Policies and Performances Apparently Based upon the Belief that Perpetual Motion Is Progress and Involving the Squandering of Public Money upon Socialistic Undertakings of Doubtful Constitutionality," October 28, 1935 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_72/Am_Lib_Leag_72_001/Am_Lib_Leag_72_001.pdf section false xt7wwp9t2q46_69 xt7wwp9t2q46 Pamphlets Available .
* * ir
Copies of the following pamphlets and
other League literature may be obtained
upon application to the League’s national
headquarters:
Statement of Principles and Purpos s
American Liberty League—Its Platfdlrm  
gn Analysg of the President’s Budget Message
conomic ecurity
Inflation  
The Thirty Hour Week
The Holding Company Bill
Price Control
The Labor Relations Bill A
Extension of the NRA
The Farmers’ Home Bill
The TVA Amendments
The New Deal, Its Unsound Theories and
gxgeconcilable Policies—Speech by Ralph M. * *' *
aw
How to Meet the Issue~——Speech by W. E. Borah
The Supreme Court and the New Deal
An Open Letter to the President—By Dr. Neil
Carothers . . . .
Egg gevisgd AA A Agendments V A Discussion of Policies and Perform»
e resi ent’s ax rogram
Tl? American g3ar—]Tl;e Eritgstee Cof Amizrican ancfs Apparently Based upon the
nstitutions— peec y ert . Ritc ie B ‘ f th 4; P 4; 1 M t' I
Two Amazing Years——Speech by Nicholas Roose- C le a arpa lla 0 Ion S
vat; _ _ _ Progress and Involving the Squan»
  26 N;WbD;r*·;pe6¤h by da-mg ¤r1>ub11e Money upon A
e eop e’s oney—— peec . y r. .E.Spahr _ · · · ·
which Road to Take?—Speech by J. H. Pew S¤·=1=~hS¤¤ U¤d·=mk1¤gS <·f
The Blessings of Stability—Speech by James W. Doubtful Cgustitutignality
Wadsworth
Legislation—By Coercion or Constitution-
Speech by Jouett Shonse
Recovery by Statute—Speech by Dr. Neil
Carothers
Expanding Bureaucracy ‘
The Imperilment of Democracy—Speechr by Fitz-
gerald Hall AF-  C`4 I
Lawmaking by Executive Order Y'   4*
The Test of Citizenship—-—Speech by Dean Carl 1  
W. Ackerman s E   '**
Today’s Lessons for Tomorrow—Speech by Cap- ‘°¢ (?
tain William H. Stayton ·?;·Y Lev
New Deal Laws in Federal Courts
Potato Control
"Breathing Spells"-Speech by Jouett Shouse
The National Labor Relations Act—Sammary _
of Conclusions from report of the National
Lawyers Committee ° ' r
Consumers and the AAA , _
Straws Which Tell
The Duty of the Lawyer in the Present Crisis-
Tgiwigh b§{tJg?";$ A;8B&$§ Supreme COurb__ AMERICAN LIBERTY LEAGUE
e ons 1 u io a . .
Speech by Borden Barr Ndtwmll Hmdqudyuys
Budget Prospects NATIONAL PRESS BUILDING .
* WASHINGTON, D. C.
AMERICAN LIBERTY LEAGUE
NATIONAL PRESS BUILDING * *
WASHINGTON, D. C.
Document No. 72
October, 1935

 Dangerous EXp€1‘i111€I1¢ati011   first of the four is located at Berwyn Heights,
  Maryland, a few miles from the National Capital.
C _ * l Dubbed "Tugwelltown" by citizens of the area
The present administration avowedly is one j Wheiemee m em’eests» this meieet eesiseeete
of exeenmehtehoh. ir action is the criterion by   meeiele heesms eeeeemelete eemmmmr. teem-
which to measure achievement, much has heheh l ties me .1909 femmes emsm fmm les-meeme
done. From the standpoint of attainment of ob- t g*`°“PS> IS llalllg °°llSllill°lad by telees laacllllllad
jectives the results have been disappointing and imm lllallalallla Oll relief lll llla Clay ef Wash'
` demonstrate the unsoundness of the theories un- l lllgloll .
derlying the experimentation. Too often actual l Tha Westmeéee Pest an eeteeer 132 19?’5» Ol'
accomplishments not only have fallen far short `   fared We lollmljlllg Collgllllallls lll an adlllolllal all`
of the goal but have involved a waste of public 5 i lllllall Tllgwall S Folly ‘
funds, infringed upon libertie·s of citizens and   "Beceusc Washington has been confronting e
weakened their independence and initiative. The l serious eheftese of modern leW·ccSt dwellings, the
public has become confused in a fog of roseate   almallacamalll that tha Reseulemeei Aemmesee
prophecies. Even social ideals which have actu-   gee Wlllgllagd $§;I50ll*gl0lld°ll a llmlslllg pl°lag° ee
ated some of the experiments have proved mis- ~ arwyn mg j°S’ ee ee ’ may callse sees S mat`
. . i sighted enthusiasm. When that project is analyzed,
ieedins- It muah be Clear le? the Americen Paopla ] however, it not only must be excluded from the low-
that map-Y notions teken m the guise of Social * cost housing category, but it also stands out as one
reform have n0t ccnstltllted progress. { of the most questionable of all the dubious under-
In carrying out the New Deal pI‘0gI‘aIn the J takings for which the New Deal is responsible.
Constitution has been ignored. The Constitution r "From every_ ensie ci consideration this venture in
Carefully Sp€.CiH€S and limits the purposes for   ‘resettlem·ent’ 1S undesirable or worse. In the first
which the Federal Government may spend the [ p1la°‘idll lshflllllagaaua lllalgflfallllllflllalralail Tllgwall
meeer ef the temeree ees the New Deel is { ih2“he§§ h£Ze§Zi§hr‘°Qf%°‘i§2§iire§’ih“ii§§`§r§€eiiiiilit
Squalndering money for many purposes and On l B.I`€8.S   l}l'lB COI1StI'I.lCtlOI1 of Bi I'€Sld€Dl)l3.l Sllbgfb
manY soeieiistic experiments Wholly un—a·ut·hOI" l for the National Capital. Officially Congress knows
ized by the Constitution. Even when the j nothing of this experiment. Worse than that, Con-
Supreme Court declares these New Deal acts t gress appropriated the money which Mr. Tugwell is
unconstitutional, spending of tax money and i about to spend at Berwyn under the impression that
borrowed funds defiantly continue-s. Who will it Weuld be used fer Vet? _diHeFePt Pufpeeee inthe
pay the bm? Mr_ ROOSBVBHI has himself an, Dakotas, Nebraska and neighboring states. This is
swered that: "Taxes are paid in the sweat of lllagawhaaggllaa ef l`aSp°llSlbla g°Val'llmalll‘ .
every man who labors_" _ n t_ e e mmistrative side the lootohery of thlg
Wh t f   . .t 1 f   f . h pI'O]€Cl$ lS BVBD. H101`€ a,ppB.I'BHt. . . . I
a O CWS IS a Yee] a 0 G aaa? Wlt "Scrut1ny of the project from the economic view-
YGSPBCIG to as few of the Pmleclls end P_0hC}€$ ml' point clinches the impression of its futility. Ac-
volved in the dangerous experimentation of the eording to Assistant Administrator Alexander the
administration: proposed dwellings at Berwyn are intended for ‘the
' very low income groups.’ Yet the investment will
I_ Rural Resettlement represent $5,500 for each family to be housed.
Homes of this type are customarily sold to families
In a burst of enthusiasm for one of the more with annual incomes in the neighborhood of $2,000. _
recent enterprises with social objectives, the Since eppfcximetely 75 Def cent ofthe Governments
President, addressing regional directors of the Owe empleyeee sem less them thet, it is Peteutly
Rural Resettlement Administration on June 20, eeseee, te talk ef heuemg llla lvary law lllcama
mee essieeed ee them "ehe deer ef bemsies eee gagggljstoaciffgreltlivglrliiljxerislriaisalnghilir§1i)1ia.llrh1LlI£>;il>th€ A qu the feplecernent of slums and the-Provision
_ · of houses for destitute families in large cities Gov-
Among early projects to_be announced by the , ernment subsidies may be essential. By no feat of
Rural Resettlement Administration 1S the expen- ‘ reasoning, however, can the Resettlement Admin-
diture of $31,000,000 for four "gre(-mbelt" gu- istration justify the housing of relief families in
burban developments to provide low-cost housing dwellings tepfeeeutius tm iuvestment cf $5,500
for 5,000 low-income families and to serve as · “i§}fif’§é Bélewyn fol] _S 1 d_ _t 1_ ht b
· ·· T yi ace mis roeri
medele l°l` llllllla Amalgaall aallllllalllllaa Tha Commissioner Allen’s oritowation that ii) willgaiforgl
3 .

 ‘ ideal employment for 2,000 transients accumulated ond of 3, horse to put a oollar on or the part
lh W”·ShlhSt°h·   · Whah a Pmlacli 0f_S¤¤h tre- of a cow that gives milk, and by another year
r §§i";?;‘; ;v‘§f_’1;1‘;j°‘$Sa;§0‘Il€Ig’;1‘i€g fhg limi}! dthgt It two-thirds of them will have quit" and that the
8 11.18. Y1 BFS * · u n •
. . . · project was being managed to death with 17
3;$mt1§;;;_£1p€ an sweep amy the wimle mess and department heads, or more than one for every
10 families remaining. h h 1
· · Just why the "new Pilgrim Fat ers" s ou d
2'° Alaskan Colonlzatlon have been sent to remote- Alaska when there is
The Aiesken eeienizstien experiment,1aunched an abnndanna of idlafann land naanar at hand
ee part ef the movement for the dmere ebundem, where climatic conditions are more favorable 1S
life," might behconsidered comic if it were not . Om nf tha mystemes nf “€`°0n0ml° Planmngdl
so tragic in t e lives of many people. This , ·
project was initiated early in 1935 by the Rural l 3' Subsistence Homcstcads
Rehabilitation Division of the Federal Emer- l In the early days of the present administra-
gency Relief Administration. Subsequently this l tion considerable emphasis was placed upon sub-
division was absorbed by the Rural Resettlement sistence homesteads as one of the important
Administration. means of promoting social ends. According to
According to the plans as announced, 200 fami- a prospectus issued in April, 1934, the aim was
lies, including about 1,000 persons taken from a "combination of part-time industrial employ-
the relief rolls of northern Michigan, Minnesota 1 ment with part-time agriculture, as well as a
and Wisconsin, were to be given an opportunity combination of the best elements of both city
to rehabilitate themselves as homesteaders in the ‘ i and country living." The prime problem of the
Matanuska Valley in Alaska. The 200 families,   subsistence homesteads program, it was stated,
some of whom had little or no experience on , was "to demonstrate how such settlements may
farms, were shipped to Alaska where they found 5 be made possible through the extension of credit
confusion, poor planning, ineiiicient manage- Y facilities and by guiding homesteaders in various
_ ment, hardships, discomforts and discouraging ~ economic and social factors contributing to the
prospects. About 40 of the families have re-   fullest realization of their opportunities."
turned to the United States. The management . Recently, since the former Subsistence Home- .
has failed to provide ample housing to insure a l steads Division of the Interior Department was
reasonable degree of comfort during the winter J absorbed by the Rural Resettlement Administra-
when the temperature at times drops as low as tion, the subsistence homesteads have been
40 degrees below zero. The Matanuska Valley pushed into the background. The elaborate plans
is a fertile area, but the climate is not suitable failed to work out as expected. It became ap-
for many crops and a market is lacking. parent that the taxpayers would not get their
Rex Beach, after a personal investigation, pre- money’s worth and that social objectives would
sente-d his observations in an article syndicated not be achieved.
by the North American Newspaper Alliance, Inc, The "Experimental Community" at Reedsville,
"Alaska as a whole would like to see the eele- West Virginia, first to be established of 62 proj-
nists establish themselves, but its opinion of ects originally planned, remains as an example
Government wisdom and its respect for Govern- of what happens when misguided zealots obtain
  ment-sponsored relief measures have fallen pretty acce-ss to the public treasury.
low," said Mr, Beach. "It thinks Unele Sam has The first announcements, when subsistence
made an ass of himself." homesteads were under the jurisdiction of the
Mr. Beach reported that the tote,] eost pyeb- Secretary of the Interior, indicated that Reeds-
ably would be $5,000,000 instead of an estimated ville was to be used as “a t€StlHg g1‘0u11d i01‘
$1,250,000 and "the most optimistic iereeest I experiments in community management and edu-
have heard is that 50 families will stick and dig cation, and in methods of farming and other
their toes in." , activities connected with subsistence homestead-
"In that event," commented Mr. Beach, "those ` lng-,) Ah initial allotment of $900.000 WaS lh-
hardy frontier families will have cost us tax- oraased to $l»500»000· Thh homesteads haV€
payers $100,000 apiece." from three to five acres of ground. Schools were
Mr. Beach quoted a Juneau citizen as saying < built with Pl`€·klhd8Y~gaYh€h» klhd€l`gal`h€h» €l€‘
that many of the colonists "don’t know which mahhary and high S°h00l °laSSl`00mS» 3» Oohlhlhhd
4 5

 ' auditorium and gymnasium, school offices, a tlon· The Congreee rtpttttdly hte Tefueed to
nrarir roam and a health center with oiiices rar ttdttitt tht pitt tt tht sttttd thtt tt wtttd t
a dootoi. and a nni.so_ Bains built on lionio_ constitnte serious infringement on states rights.
Stoads aio ooninpool with lanoyigatlgots lol. iaini Education 1S essentially the function of the 1nd1-
livostook and oity motor oai.s_ vidual states. The Federal Government has no
The progress of the Reedsville "Experimental proper p_oWer tf adrnlnletratlon oYer lt- Ttrttth
Commimityn has boon maikool by oiiois of indg_ the National Youth Administration there is the
ment which have proved expensive to the tax- danger that _tlle _Federal, Government may at"
payoi.s_ Roadyanado lioosos Woio nnionasod tempt by 1nd1rect1on the jurisdiction over educa- _
which proved unsuitable to the climate of era tttt Wttth ttt tttt ttntttttty ttmtd tt by tht
region and had to be rebuilt. According to a Cougreea , , ,
statement attributed to Charles E. Pynchon, It Would Seem to be axloulatle that lll tue
General Manager of the Subsistence Homesteads Federal Gevelllllllellt could properly ellel eellel°l`
- Corporation, the Government will lose about tutlonally take eontrol tf edueatlolr tne Wttk _
$3,000 each on 190 houses inthe project. Houses ttttld be eondueted lll eleee eeepelietlerl Wltll
oosting noaily $8,000 aio losing sold to liomo_ the recognized educat1onal_ authorities. The
stoadois loi. an avoiago oi $4,900 with payments comments of educators make it evident that poli-
over a thirty—year period and interest at only tics has taken precedence over education or
three per cent. The difference between the sale even eeelal llelemr . . .
price and the cost is charged up as a Government _ The program for the National Youth Adminis-
subsidy to the homesteaders, and will have to tration was worked out by the Office of Educa-
bo paid in tho last analysis by tho rank and t1on_of the Interior Department, whieh office 1S
lilo of tho pooplo of tho Wholo country nothing more or less than a fact—find1ng bur-eau
_ Originally, it was oionosod to ostablisli a lao_ r and has no jurisdiction over education as such.
tory at Reedsville- to manufacture supplies for Tht nttsttm Wae plaeed under tne Jolnt oontrol
the Post Office Department, now furnished by or tue Ttttttty Department and tue Wttkt
private industry. When the Congress prohibited Pttttttt AdIlllllletlletlell‘ .
that particular activity, those in charge of tra Ttt tdtttttttttttt ttt tttttr tttttttttt tttt
project entered into a contract for the construe- Youtll le to reeelve a glrt tf $oo¤ooo»ooo· But
tion of a iaotoiy of a difloiont sort, thereby the faot that these same youths and the balance
defying the Congress and acting without pygpgr t of thelr generation are to_ be burdened with a
authority. After a considerable part of the con- ttbt tf pernape tnlrty bllnone htt been Pen
tract price had been paid, the transaction was elelliieiilil_i};_(ieoi§it'tl}tiil72l;eSd‘EX€CuiiV€ Secretary Of the
held up by the Cdmpddddr Gdddrdl as dldedr National Education Association, iii an article
· . entitled "New Deal a Raw Dea for Public
4· ,1;:5 Natlorlal Youth Schools" in the September issue of the Journal
ministration of the Asociation, says:
U °
A putpttt tt nttmttt tnttttt tts bet its €Er1EliZSf?rll“i'€` iS lifaiaal Stirpafiilf aTZt“a°ri
_ stressed in connection with the creation of the oi Federal and Stato Workers Who are politically
National Youth Administration for which $50,- appointed. Tlioii. responsibility to tlio people
. 000,000 originally was allotted by the President is so indiioot as to be almost noaliailola The
tlcuuled  digil'dvdgi~(i?dr§1i)§rldp1iii;1§rinfalédprzddg l°Qe"iStal§llS:lle‘lt inelltleallynlree methods tea
wana House statement at is intended not only QQ, Sao i?i€l§,llli§§,§`ia»rl°ll are elle °ll°“m"e“ e
to provlde elnployrnent ftt tne Younger genera" Protest against the methods being used in the
tion but to make possible continued attendance National Yontli Administration Was Voiced by
at high school for about 100,000 boys and girls, Mrs. Eugene Moyoi. oi Washington D C_ in an
eontlnued attendanee at eollege ror about 1ao»ooo address before the National Recreation Congress
and post-graduate educational work for a se- ` at Cnioago on October 4_
tttttd group tf eeVeraltnoueand· _ "The administration’s purposes may be of
a..l§.°§..i‘~ ta?2§.?t%a§?‘;.ifr“£§ t§ *%§ZpE.ii.‘;§.§t2r t r at tuttttrt attthtdt it ttttttt tttrttt
Education with a Cabinet Secretary of Educa- fuudd Judd Y ue ul dudiududd the Wdrdu ddld
6

 Mrs. Meyer. “Tlle indications are already clear C eign countries shows plainly that political domina»
that this plan to help education, though intended tion of the schools and political administration of
as a feather in the administration’s cap, will youth are mlmieal to democracy. They are dan-
eventually become another feather in its nest. coroito Stops ee he nikon oy a ncopic dcyoicd ee
"Let us not forget that Federal control of edu- p°i°“ ee g°V°mm°m‘
cation and 1‘c01‘€atl011 is 0116 ofthe most impor- One of the criticisms offered by the National
tant steps toward Fascism 01‘ C01llmu1llS¤l-” Education Association against educational ten-
dencies of the present administration relates to
5. Public Schools thel funds_for child welfare provided in the So-
ne eeheel eeehehlhee el the eeuahr ae ioiiittii°?§3iin‘S2ionoqntyrooiiéiotifnlonlie§t°St°§§§i-
greatly disturbed over tendencies of the adminis- canned Children are placed in the Department of
l tration in conncotion wlth many Pnasoo el edt- ‘ Labor rather than in the Office of Education of
cation. Money has been spent lavishly for pro]- the Interior Department
ects of a supposedly educational character under According tn the educational authorities the
Various cincigcncy agcncico ae lino Sanio tiinc millions of dollars appropriated should have
that the coilaloiioncd pubiio eeheele nayo nad dif' been allocated to the states through the Office
ncuity in scouring Suinoionii funds te ooiiry on of Education to strengthen work already engaged
than heehlee ,wehl aduiil elaeeeet Vocational [ — cratic control of education after the manner of a
training, parent education and rehabilitation n Fascist or Cnnnnnnist state
centers instead of coming to the aid of states in   In the last analysis when all is said and done
which schoolswere being forced to close because education is a statednnctinn and there is nd
ef lack ef funds- The Wonka Pheaheee Adininic' warrant in the Constitution for the establish-
tiation nac cinnaikcd upon an cducationai Pi`o' ment of any Federal body to administer a public
gram in which one of the regulations prohibits School.
the use of unemployed public school teachers
and stipulates that persons employed in connec— 6 C. .1 S .
tion with it need not have teaching eertifieates. ‘ lvl orvioo
As stated by Mr. Givens in his artic e on‘ ew H n ·n · V · _
Deal a Raw Deal for Public Seheele/’ fthe New cial ibilcctiildgnghciiidi gcyncgaidrilcli  
D€al€l‘S lllyolltod plaln allol fancy Sohoollngi man' of the Government Civil Service. Except in com-
agall lll a way te glyo the Jlttolo te oduoatols paratively rare instances where political consid-
wheee peliey ie he ehuh waete While a few crotiono nate entered into tho oinpioyniont or
youhgstola Wolo holng taught hatlhonloa Playlllgi retention of the rank and file of Government _
lalloy laltlat thl"oWlhg» and boolldoggllhgi Solno workers there has been gratifying progress here-
hundreds of thousands Of   fortunate Ones t,OfOr8   at        
throughout the United States were being denied upon meme
a dooollt health program ol` Wolo llolhg without In recent letters from Luther C. Steward
a_ lull yoaluo Wol`l< lll allthlhotloi reading and President of the National Federation of Federal
lllSt0l`y· ’_ _ _ Employees, and H. Eliot Kaplan, Secretary of
Ml`- Glyollo thee StatoS_ tho Pooltloll of the the National Civil Service Reform League, to
National Education Acaociatloni President Roosevelt, it was charged that the pro-
"The National Education Association believes in fessions of loyalty to the Civil Service by this
Federal aid to education without Federal control. administration have proved insincere. The let-
It asks that financial assistance be given to already- ters were w;·jt/ten after the President in reply
established schools. It believes that in the prepara- to previous communications had informed them
tleeaef yeeee heehlg lee the ahh? e{delel;e¤ehle» that "the noorit system has been and Win con-
Zgfiegi ;°;;i;_m§ar?;1Oni2;1tb{g$tgfg’S lggna t3a‘;Wn§;’ tinlnle tcé be extended during my administration?
and boondoggling. It would keep education in the I" yeward In a' letter to th? President under
hands of educators and formal educational oppor- t date ef Sopiooinbor 25v 1935, Said:
tunity in the Schools- It ie unalteraloly opposed to t “We feel strongly, on the basis of incontrovertible
politics in education. The experience of certain for- factual evidence, that the merit system has been
8 9

 dan erousl disre arded not onl b Con ressional . .
enagtmentybut si administratoiis and suiervisory numerous oiineiie Wien eaiaiiiee ei eo¤ooo> en>2oo¤
officials who apparently have been unchecked in e4>5oo and $4>eee· The Saiaiyiee fsr iaWYei`e I
their rotom to oh outright spoils pO1icy_ alone aggregate nearly half a million dollars an-
"As we have stated, the wholesale disregarding of Dually. Of the 688 employees outside Of Wash-
the merit system complained of is not confined to iI1gtOD, 68 were `I‘eC(-Diving salaries of $4,000 0I'
Congressional enactments. We respectfully call to mgrg_
your attention that in Washington and in the field Tho {gots brought to light by Senator King
sglmisitstrstsrs ttglVsbhs_¤ss;tb¤tt 1it,sssl1r ttgtlsslsds issisdsd s dassisssss of sss of the methods by
O pOS1 IOIIS OH B 3.SlS O U 3. SID. G ya.? S IC ··· ° · · · • ·
namely, party eepietion and royale; We Submit twhhieh the admutrstration without authority of
earnestly that commendable though party loyalty o engines con inuee no oniiiiy on its qiiestion"
may be, it is not in the public interest that it be sbts texpeiiiinenie The NRA Organization Was I
made the sole or the determining factor in Federal set   by €3~?CUIl;1V€_gTd€itJYJ[l1Hd€Y g§I1€I`3»l iulilhgflhy
employment." _ VBS G 11'1 9 I'€s1 en O app0m suc 0 CBI"S
Mr. Kaplan in a. letter to the President asserted S35 thieliolgiigggegZtnitheeii1\1i;€loI;1eeele%Sl;e'digi1et€,(;elieiitieef
that "it is obvious from the debates in the Sen- oovery Aet Funds to meet the e rolls were
ate and House that there was and still is a per- ohtelhed ht, ellotmeet from the puihhe Works
sistent and concerted effort to exploit the re- fund It le how dleeloeed through Sieieetor Kin ,e
tsrsrrv ageneiee ieii pstrsssss pniipeeeeai demand for information that 11 em lo ees in
A report of the Civil Service Commission at , the NRA peyroll ere eetuell Worklg elm, the
the close of the last fiscal year stated that all ' White House epd thet 77 employees ereeeeel ned
positions in certain Government establishments, to the Federal Trede Commission Tr they ered
Wtltt smstsr s Feel sf 1 ieeez neid ine ssds See' jected with the avowed intention to solve the
tion of the law to be unconstitutional, informa- unemployment problem The promises made
tits, given eniy Wtss demanded ey Sssstsr when the administration embarked upon such
Wiiiiain H- King sf Uean eneWed iinai en Sep' experiments as those involved in the NRA the
tember 7 there were still 2760 employees with public Works program end the Work_rehef’ I,o_
aggregate annual salaries of_$7,025,22Q, gram have not been fulehedo P
Under authority of the Joint resolution of the The Octovber 1935 Monthly Serve of Bde,}
Cengieee sssssdiss ine sssttsss sf ene Natienai ness of the Aniericazi Federation of Ii/abor esti-
Industrial Recovery Act which were not involved rrletee industrial upemploymeht et 11,000,000 or
1n the case before the Supreme Court, it }S ap- more than in 1934 and about the sameas in ithe
parently the intention of the admmistration to fell of 1933
continue most of the employees on the payroll The Sweep of the Federetlop Seyed.
until April 1, 1936. “ _ _ °
The information obtained by Senator King, ` It {Vetsg¤sp¤¤g>’mgl¤th1¤.G;rmssr»Esstsst and
which is of a character not ordinarily made pub- heiyehlieekegreiig eafoo dog liao i,eii’)oaoonoy.in dilinioee
tis, shswsd thst smsss tts 2072 psrssss sm- year American indiistry hasonot sstsssriéis sf Ei
ploysd in tht? City of W9»ShingtOH, 473 W€I`€ TB" * tingithe unemployed to work. There are 50ppei•
Ceiving salaries of $4,000 0I' m01"e. Among them cent more out of work in America today than in all
were about a dpzen exeputives with salaries of Europe."
r from $8,000 to 8,500, a out 30 Deputy Admin- . .
istrators and others with salaries of $6,800 and " The NRA Wee an experiment Wiiin a ineoiiy
10 which proved to be unsound. It was maintained
11

 that industry would be stimulated by an in- work under governmental emergency projects.
creased purchasing power resulting from higher Included in this total were many who had not
wages and shorter hours. What actually hap- been on relief rolls. Projects which offered some
pened was that the added costs imposed upon in- hope of economic advantage were for the most
dustry retarded recovery and the higher prices part abandoned after administration officials dis-
wiped out any gains in incomes of wage earners. agreed among themselves on policies. Public
The business recovery which has taken place funds are being poured out for projects which
since the Supreme Court decision in the NRA cannot possibly be justified by any standard
case has demonstrated that the release from re- _ except that of creating payrolls.
strictions has been beneficial to industry. This The shift from direct relief to work relief was
means that the NRA ewperiment actually re- supposed to be desirable from a social standpoint
tarded business recovery. in that it would improve the morale of people in
The $3,300,000,000 public works fund incor— distress by reason of the depression. The work-
porated in the National Industrial Recovery Act relief program has not been so managed as to
of June, 1933, was expected by the administra— produce any such result.
tion to provide a large amount of employment
and to prime the industrial pump sufficiently to 9_ The AAA
1nsure speedy recovery. Even yet, after nearly
two and one-half years not more than a few When the President sought the enactment of
hundred thousand persons have been employed r the Agricultural Adjustment Act in the spring
from this fund. As a pump primer the plan was of 1933, he told the Congress that the program
a dismal failure. was of an experimental character.
The $4,000,000,000 work-relief fund was in- "I tell you frankly/’ said the President, "that
tended to remove 3,500,000 persons from the ' it is a new and untrod path but I tell you with
relief rolls. Moreover, it was promised that the equal frankness that an unprecedented condition
work-relief projects would be such as to be of calls for the trial of new means to rescue agri-
permanent economic benefit. The President, in V culture. If a fair administrative trial of it is
January, 1935, told the Congress that all the made and it does not produce the hoped-for
work should be useful "in the sense that it af- results, I shall be the Hrst to acknowledge it
fords permanent improvements in living condi- and advise you."
tions or that it creates future new wealth for the After nearly two and one-half years of experi-
Nation." mentation under the AAA, a rising tide of protest
When the huge appropriation first was sought, against high prices is evident among consumers.
the impression was conveyed that a complete The curtailment of production has only helped
program had been worked out both as to the to aggravate price advances due chiefly to the
allotment of the money and as to the administra- drought. The different methods employed with
tive details. It developed that even such out- respect to different commodities have disrupted
lines of the plan as existed had to be changed normal relationships with a consequent injury
in almost every respect. As late as August 2 ‘ to many producers. Farmers have been regi-
the President gave assurance that from 90 to mented in a manner alien to American traditions.
95 per cent of the employable idle would be The restrictions imposed upon domestic produc-
put to work by November 1, but nothing like tion have encouraged impoms of agricultural
this has been accomplished. commodities. Export markets, particularly for
The experimentation in connection with this cotton, have been destroyed. In the South ten-
proposal has passed through several stages. It ant farmers and farm workers have been im-
has proved impossible to create jobs as rapidly poverished. The_ cotton textile industry has been
as was planned. In order to come anywhere near injured by the high prices of raw cotton and by
the fulfillment of the schedule arranged by the the processing tax. The milling, meat packing,
administration, it has been necessary to turn tobacco manufacturing and other industries from
to workers who were not on relief rolls. The ` which processing taxes are collected have been
inauguration of work-relief projects thus has not affected adversely, and the whole people made
been accompanied by a corresponding reduction to suffer as a_ result of higher prices for the
in relief costs. Ofiicial statistics made public . necessities of life.
October 18 showed only 1,310,733 persons at Despite the many injurious effects of the AAA
12 I 13

 program, the administration has not only refused Costly as Well as Dangerous
ss ssknswlsdgs it¤.f¤i1¤¤=» but byfslssnt smsnd" The iexperimentations of various kinds pursued
ments ls sndssivsrmsjl ts pm$On.g.1ss gfs e1i_?gs'§d` by the administration have shown results vastly
lsss sf s pssslb s s Ysfss sclslsn Y s u` different from those promised. Fantastic theories
prsms Csurt sn hhs smgmsl ass have failed to stand the test of trial. Manipu-
_ _ lation of economic factors has produced compli-
I0. MOHCCRFYEPOIICICS cations leading to a new assortment of evils.
Moneter Ohcie