On This Day: June 16, 1933
New York Times
On June 16, 1933, President Roosevelt opened his New Deal recovery program, signing bank, rail, and industry bills and initiating farm aid.
President Starts Recovery Program, Signs Bank, Rail and Industry Bills; Wheat Growers Will Get $150,000,000
Roosevelt Hails Goal
He Calls Recovery Act Most Sweeping Law in Nation's History
Johnson Administrator
Col. Sawyer Is Named to Direct Public Works, Eastman as Railway Coordinator
'Million Jobs' By Oct. 1
Employers Urged to Hire More Men With Government Stopping Unfair Competition
Special to The New York Times
AIDS FARMERS THIS YEAR: Wheat Processing Tax, 30 Cents, to Take Effect Soon After July 1: Acreage Cuts in 1934-35: Payments to Growers on Production Allotments Will Also Include This Year's Crop: WILL PROTECT CONSUMERS: Wallace Promises No Undue Price Rises -- Will Give Decision on Cotton Today Powers Granted to the President Wide Work Spread Asked By Johnson:Recovery Chairman Urges Industry to Unite for Shorter Week, More Employes: And Pay To Meet Prices: Forced Down in Plane at Pittsburgh, He Addresses Coal Men by Radio Treasury to Order $25,000,000 Work:Roberts and Farley Decide to Ask Bids at Once on More Federal Buildings: Projects Here Included: Vesey Street Plans Already Prepared--22 Sites Have Been Selected in This State Harvard Defeats Yale Crew For Third Successive Year Common Cold Laid To 2 Agents United:Vaccination Against Virus Instead of Bacteria Is Urged at Doctors' Meeting: Nerves Cut To Ease Pain: Whooping Cough Vaccine Is Upheld--Type 1 Pneumonia Serum Found Effective Reich Asks Return of African Lands at London Parley: Also Seeks Other Territory, Presumably in Europe, for 'Works of Peace': Links Plan and Debts: Hugenberg Statement Is Held to Confirm Nazi Hints of Eastward Expansion Aim: Money Ratio Pact Ready: Stabilization Plan Is Likely to Go to Conference Next Week--Two Boards Start Work Kidnappers Seize St. Paul Brewer: Hold William Hamm, 39, for $100,000 Ransom--Death Threat Made in Note: Sankey Linked to Gang: Fugitive in Bohn and Boettcher Abductions Is Identified as Sender of Missive Wiley Requested Sea Duty; Policy on Air Officers to Go On Roosevelt Takes Special Train for Boston To Embark on Vacation Voyage 'Down East' |
Washington, June 16.--Assuming unprecedented peacetime control over the nation's economic life, President Roosevelt placed in operation today his sweeping program for recovery from the depression.
Within two hours he signed acts of Congress giving him control over industry, power to coordinate the railroads, and authority to start work on a $3,300,000,000 public works program, and then began the active administration of these and other major measures.
In signing the National Industrial Recovery Act the President declared that it was "the most important and far-reaching legislation ever enacted by the American Congress," and said that it "represents a supreme effort to stabilize for all time the many factors which make for the prosperity of the nation and the preservation of American standards."
The Glass-Steagall Banking Reform Act, which the President described as "the second most important banking legislation enacted in the history of the country"; the long- disputed Independent Offices Act, including the veterans legislation; the Deficiency Act, the Taxation Act, and the Farm Credits Act received the President's signature during the day.
Administrators Are Named
Turning to the administrative side of the industrial recovery program, the President appointed General Hugh S. Johnson, former soldier and manufacturer, as administrator of industry; made available $400,000,000 under the public works title for State roads, and allotted $238,000,000 to the Navy Department for laying down thirty-two new war vessels under the terms of the London treaty.
A special recovery board was named by Mr. Roosevelt to work with General Johnson. It consists of Secretary of Commerce Roper, chairman; Attorney General Cummings, Secretaries Wallace, Perkins and Ickes, Budget Director Douglas and Chairman March of the Federal Trade Commission.
General Johnson also will have an advisory council of business and labor leaders, the personnel of which has not yet been announced. Among those reported under consideration, however, are Myron C. Taylor, Alfred P. Sloan, Walter C. Teagle, Gerard Swope and Will Vereen.
Colonel Donald H. Sawyer was named temporary administrator of public works and was directed, with a special Cabinet board consisting of Secretary Ickes, chairman; Secretaries Wallace, Roper and Perkins, Assistant Secretary of the Treasury Robert, Colonel George R. Spaulding, and Budget Director Douglas, to submit to the President without delay the works on which construction can be undertaken promptly, and to outline a program for future work.
Eastman Rail Coordinator
Joseph B. Eastman, a member of the Interstate Commerce Commission, was appointed coordinator of railroads and was directed to begin his work at once. His most important immediate concern will be the railway wage scale negotiations, following which, savings by the reduction of duplicating facilities will be undertaken.
General Johnson conferred with the President late today and then left by airplane for Chicago to meet with leaders of the bituminous coal industry. He said that he would return late tomorrow night, and that he hoped to name a large group of men to aid him in perfecting trade codes. Most of the ten major industries, he said, had made rapid progress in this respect, and he hoped to see final agreements reached by the big trade associations within a very short time.
Expressing hope that unemployment would be decreased by at least 1,000,000 men by Oct. 1, President Roosevelt took an optimistic view of the industrial situation in a long statement on the Industrial Recovery Act. He called upon industry to cooperate by hiring more men to do existing work, at shortened working hours and a living wage.
Roosevelt Pledges Government Aid
The President said that the act was a challenge to industry and labor, and pledged the protection of the government to both against unfair practices, if they would assist in raising price levels, increasing wages and reducing work hours. He promised that "this is not a law to foment discord, and it will not be administered as such."
While the anti-trust laws will be relaxed by the new legislation, the public will be protected against the abuses which led to their enactment, the President promised in his statement. He said that they would still be enforced against "monopolies that restrain trade and price fixing which allows inordinate profits or unfairly high prices."
The whole spirit of the act, he declared, would be to protect industry that cooperates completely and endeavors to raise prices justly, and at the same time keeps up wages and shortens the working hours so as to increase employment.
Happy as He Signs Enactments
Mr. Roosevelt appeared to be in a happy frame of mind this morning as he affixed his signature to the new measures. The first he signed during the day was the Banking Reform Act, which was carried through perseveringly by Senator Glass of Virginia in the face of many obstacles.
As Senator Glass, accompanied by Senator Bulkley, Representative Steagall and others, appeared in the circular office of the President to be photographed during the ceremonies the President addressed Mr. Glass affectionately, saying:
"You old warrior! If it had not been for the veterans, Congress would have adjourned last Saturday and you would not have had your pet measure on the statute books."
Describing the measure as having had more lives than a cat, he declared it had been killed "fourteen times in this session," to be revived in the final days.
The President's Statement
Senators Wagner and Robinson of Arkansas and Representatives Doughton and Ragon were present at the signing of the Industrial Recovery Act. President Roosevelt's statement follows:
History probably will record the National Industrial Recovery Act as the most important and far-reaching legislation ever enacted by the American Congress. It represents a supreme effort to stabilize for all time the many factors which make for the prosperity of the nation and the preservation of American standards.
Its goal is the assurance of a reasonable profit to industry and living wages for labor, with the elimination of the piratical methods and practices which have not only harassed honest business but also contributed to the ills of labor.
While we are engaged in establishing new foundations for business which ultimately should open a return to work for large numbers of men, it is our hope through the so- called public works section of the law to speedily initiate a program of public construction that should early re-employ additional hundreds of thousands of men.
Obviously, if this project is to succeed, it demands the wholehearted cooperation of industry, labor and every citizen of the nation.
Many Pens as Souvenirs
Senator Dill and Representative Rayburn attended the ceremonies incident to the signing of the Railroad Control Act. The President used many pens in attaching his signatures, and each of the sponsors left with one of them as a souvenir.
The last of the bills was signed at 12:05 P.M., following which the President devoted two hours to seeing departing members of Congress and in discussion patronage. The seekers of patronage for their constituents were told that jobs such as postmasterships and deputy internal revenue collectorships would be filled without delay.
Late in the afternoon, before calling his last conference with the press prior to going on his vacation, the President signed the Independent Offices Appropriation Bill containing the veterans' allotment plan which caused the controversy in the closing days of the session of Congress, the Deficiency Bill with its appropriation for the public works section of the Recovery Act and several other measures. Among the acts signed to wipe the slate clean were those on taxes and farm credits.
The Taxation Act continues for an additional year the current levies on gasoline and on electric current, but provides that after Sept. 1 the electric power tax will be levied on power companies instead of consumers. Total revenue from this act is expected to be $165,000,000.
The Farm Credit Act establishes a new organization for the purpose of centralizing farm credit extensions. The amount of money to be at the disposal of the agency is indefinite, as into it is to be paid the remainder of the revolving fund of the Federal Farm Board. Its resources are estimated at $175,000,000.
Fatigued by the Session
The men who had sponsored the bills that became law today were happy, although most of them seemed tired and nerve-wracked by the turmoil through which they had passed in the closing days of Congress.
Senator Glass, who was co-author of the Federal Reserve Act, admitted that he had almost sent himself to the hospital in behalf of the banking reform legislation. He said that he would do it again, and declared he experienced a great thrill when the President signed it.
"The bank reforms provided in the act," Senator Glass said, "are almost as important to the banks and the public as the Federal Reserve Act itself. It supplements and strengthens the Federal Reserve Law."
The Glass-Steagall Act is directed toward a unified banking system, provides a limited deposit guarantee, requires divorcement of security affiliates from banks under government supervision, compels private bankers to give up either the deposit or security business, and requires stricter regulation of national banks.
Wagner Hails Recovery Act
Senator Wagner of New York, who helped frame the Industrial Recovery Act and direct its passage, hailed that law as the greatest achievement of the administration in an economic and industrial way.
"It will bring us on the road to recovery," he said. "Ultimately, if it is intelligently administered, as I know it will be, it will bring this country out of the depression."
The most far-reaching of the administration's legislation, the Recovery Act gives the President, through administrators, wide power to promote the self-regulation of industry under Federal supervision as a means of curtailing overproduction, improving wages, shortening hours of labor and, thereby increasing prices and employment. A bond issue of $3,300,000,000 is authorized to finance the construction of Federal, State and local public projects.
Representative Sam Rayburn of Texas, chairman of the House Interstate Commerce Committee, thought the Railroad Bill would go a long way toward affording financial aid to the carriers by permitting them to reduce expenses, under the supervision of the Federal coordinator, and through the repeal of the recapture clause.
"They will not be required to continue payments under the recapture clause, and will be returned about $14,000,000 in interest and payments already made," he said.
