Some of the general's promises were @ little rash. He overestimat~ fed the ability of his organization to absorb the unemployed. But the encouraging assertion that the unemployment situation could be solved Was the antidote to depression which the county required at that particu-Jar moment. His bell all that, idtustry needed to do to conquer unemployment was to raise wages fand reduce hours was an_oversimp-Ufleation of the problem. The theory was that more money would thus be put into the hands of people who Would spend it. Industry was being crippled by the fact that people who needed to spend money had none to spend. Got money into their hands fand their demand for goods would) set the factory wheels humming' again, "The trouble under the old deal had. een that money, instead of going {into the hands of workers who would spend it and absorb the products of industry, went into the hands of the few employers and stock owners who had so much money already that hey could not spend it on goods, and reinvested it. Industry which was already (00 large for the demand was expanded still further by their me vestments and the situation made worse, Fresh sources of supply were created, when there was already too restricted a market for the existing sources.
The net result of the general's efforts was to raise prices. In some eases industry under its code of fair competition was allowed to fix prices, directly or indirectly. The practice of requiring all firms in the code to "post™ their prices amounted to establishing a uniform price throughout the Industry, for example. The increase in prices frightened off the consumer, but the general consumer was not the only person who objected. The farmer, and the recovery agency established for his relief, the A.AA.. objected still more strongly.
Text read from the printed page and cleaned; old type leaves the occasional error.