These industries the President said (taking a leaf from Henry Ford) should realize that their profits depended on volume.
They should not cut wages, for that would be to reduce ti he mas purchasing power of the market on ich they depended. Ov er head in the shape of government taxes should not be reduced. they should produce at capacity which would make profits possible though the same factori s working at 30 per cent. of capacity could not make a profit.
Business demand even in this modern age.
In approaching the problem of how to stimulate demand the President critics look to the policy sketchily outlined late in 1937, but later apparently forgotten.
Then the Adistration pointed to utility, rail-and housing purchases as the three horses which would drag the country out pression, the of the d utility industry being portant.
To ci ange ct ity construct in the depression jam. he most imthe metaphor s the key log If only the President given sudan that his dislike of the militias would not mean a war to the death h (their death) and that he recepted the principle of private utilities hey would be able to attract nvestm:
ut and embark on a much needed e:
expansion programme.
Utilities would help the heavy industries through their expansion. Housing expansion, independently encourage as well, would surge forward wh en prices in the heavy industries came down through increased n. Housing and utility construction together would help the railway:
by increasing the freight they had to carry and enable them to make needed purchases in their turn.
Text read from the printed page and cleaned; old type leaves the occasional error.