history of the employment stabilization act of 1931

31
7st Cones SENATE COMMITTEE PRINT NO. 3 HISTORY OF THE EMPLOYMENT STABILIZATION ACT OF 1931 REPORT TO TiIE' COMMITTEE ON BANKING AND CURRENCY RELATING TO THE BILL (S. 380) TO ",ESTABLISH A NATIONAL POLICY AND PROGRAM FOR ASSURING CONTINUING FULL EMPLOYMENT IN A FREE COMPETITIVE ECON- OMY, THROUGH TIlE CONCERTED EFFORTS OF INDUSTRY, AGRICULTURE, LABOR, STATE AND I, OCAL GOVERNMENTS, AND TIE FEDERAL GOVERNMENT JULY 30, 1945 NATIONAL ANCHIVLS LIBRARY Printed for the use of thb tomi itee o banking and Currency UNITED STATES GOVERNMENT PRINTING OFFICE .I 76m3 WASHINGTON 1 1045

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7st Cones SENATE COMMITTEE PRINT NO. 3

HISTORY OF THE EMPLOYMENTSTABILIZATION ACT OF 1931

REPORTTO TiIE'

COMMITTEE ON BANKING AND CURRENCYRELATING TO

THE BILL (S. 380) TO ",ESTABLISH A NATIONAL POLICYAND PROGRAM FOR ASSURING CONTINUING FULL

EMPLOYMENT IN A FREE COMPETITIVE ECON-OMY, THROUGH TIlE CONCERTED EFFORTS

OF INDUSTRY, AGRICULTURE, LABOR,STATE AND I, OCAL GOVERNMENTS,

AND TIE FEDERAL GOVERNMENT

JULY 30, 1945

NATIONAL ANCHIVLS LIBRARY

Printed for the use of thb tomi itee o banking and Currency

UNITED STATESGOVERNMENT PRINTING OFFICE

.I76m3 WASHINGTON 1 1045

('OMMmITT in; ON BANKING AND (UItlEN('Yi{OI11I{T F. WAM{NI Ne'w York, € hfiriwi.

CAIITE t (lIAS , VirginiaALIIEN W. IA IRKIFY, KentuckyJOII N if. lAN K II EA I). AhabiH(lItI{~' I,,.~ I ( '1.1FFE, NhirvliiI

SHERI I)AN DOWNENY, ('alforriAIME .MUDOCItI 'K, ItahFINE'S' W. McFAIiANI), Arlin(hI,FN II. 'I'AYLOR, I1:hoJ. W. F N I' I I IT, Afklin lo11V(1l1 !1, I lII, Washington

C'IIAIII.II, W, 1l1,Illl:N, New ihIIIIII.siln.Ito)ipiF, A ., T % H"I 01114)

JltIN 'TuuNI A', Itlh.o

C.I(llEII,.%A BIIIK, l(,,lnutwa oV"I'tO NYE 1). MILI1KI.Y', ClohrailliIl1il'l(KF 11, iIICKFNI,001iI-AI, Iowin

DAVII )LMAN, (h(tk11'

LETTER OF TRANSMITTAL

I TNI'I'EI) S'A'T:R ENATEE,COM.MITTII: ON BANKING i AND (0'-III:, (,y

,,I! 30, 1.946.,

'T6 the ihb !,bv ,f 1h( !h1; 1 Bain iul ('arlnd lu'? ("4y mw1;tt(:As, dwt l1111ldni,., a11,11 curr',onc'y. (comlmitttw'l' 1. itso uIt iv or' tht(

full titllo',nyi'lit bill (S.' :sot), mwe ,f t1, most sigiili.iIlIlt h, ,iiltive

revie w Aii\ ei-iti,'s \xj)IIIrilt, betl t- ,ei \ \i , 11(l \\h 111 orld IIill (deali'll! wit I IIlit' iwulluta1. 41f 1iiii''mplolvIiu l(fI i. ti~

'IToo ort i'll %%t'4)4(-4 liri cit -li issites wVithlt i -ilsfhsoyToo ofl, l u w\vi li llw 14 -11111hl, lsolso titf IIlt IIId p.Iy IiI.

ti, t i f thi' I l-'s'.ilt. It is ,v it di, th t ill li 'thx r ,i Il l hwiel tiol

IlIzld thi.s Coll iv,.. wili (.;,,',,l'ullv 11I, ll, (1' o ~VV IT'lri'l,',' with prv\ious.

I,,,:isl i ,l i the, ill (ho fild.; 'llo first mvlqp ill Stich ll | lqlprvi-,,il is t 1111ilsi..; of (Ihl. l.:lloy-

ltn Stahiiziitioii Act (if 11131. This llctolirt,, \Vhitli I il'lsoi 118fall Imck its 19128, wi~ li ldw ft-, Iit't't 11114(1 ifil-Iiutivt' attemIlpt by the]f ,n,,ewl it to m k, 14 t tli, I11'i ll for the, stlbili'tioifof (.11fplo invll. It plsoy tii,-ts jhii bsi, hIti loi , Iv'pecedml t for

ACV(,INIdi IIgly%., I ]m %'(- IhIll( I ' l- , r d 1,! l it t '1e , | I'report. , e t ithed"'llistorv of tH, l."IlpoviltI I , tIlbilizilioll Ac t of HIM1." Tlhis l'opolt

prvl't' t t -l hgishl'lti t' 111(1 iit lilstlltit h. i stor (1'of t ie( 1031 Illelislire,dh, v.-ilws the ,'lle,~wt~vhgishl'tioll With w, llich it %%-t,, lisoc.iated,

and 'ompli , it with ti lt' ll e ,tloviuut bill.lit t 111 tll0itting tik re)Ort to le (onmnmittee, I ,,itoul like to

comment briclv upon four .o't)Iilliolls Whid, ill ily opilioll, cemergesar)ly from tlhe record of the, 1931 legislat iou:(I) Public n1w'kn l- phlt i, by itx l, i not f ,lluh 14, o liit(i4 fill

Although public expeldit t' res hov' fill important e'e't upon eml-ployhmen'it, ith tax polit'it's of (Governmetnt 114. Ilso extra tlely signiifl-citut. 'They hav' itn iunmuliate hearing upon tite copit'i ty of oupeople to Pli'tlifts, the products of industry and upo tiI' dit'cisionof our' Wti.iiltss'|,ti to ilvt'(,t their Vapitildn i hew equnilient, newiuiciuuy, 11d new plants.

Mor-ove,,e, puhli. Work,4 fire only ote, type of pull.ic (,xpllditure.

hinlth activitip,,--or likely to reeiv' irlc'eaing attention diii'ing th1('011111lug Y'as's. Governme('l't Credit to assist \e,'11'1a11, hlole owliel'l,

1I1i1'1,tC I1 1ii' S4111 h 01' 1r , ,104 P.. Muiry (\Irurnim a, Sesin t 'ri 1" \n. Wa r (NewY Sre i ) 5inuIr E C.r (', '"' i'iin, (It I) tul s lc$ i lor JoI'l, ', ('. 0 M nhoilt~' (\\''illill). 1114 iti hlheHlowse of lh, letolutInlves by Ite lirmsci~aiive Wrlt I'lnnrs Ch' \. m ls l and i rols of over Itx0 Itelpremillta.tlves,

itI

LETTER OF THANSMITTA\

bInsinP.s1tneii, aid fLr,"I's is still another type of ,xpeiimliture thatvftlieiOt ) overlooked.

Above all, there is a vast array of (overnmeiit funletiotis, apartfrom both taxation and expeiwd ii urv ... which iIilltipuee lIsinuss in-vestment will (onsumnetr speilig and tll rby Iave i dire,| , di'(rct liponlthe level of cthliloy iit 'lIh? rkIie fryoil, till, nlifolrven('eit of leantitrust laws aiid th I'e reglilhitiii of t 14' sto'k exclimige, to l ioiliimnstam(hlids for working conlditions 1a11 tll l, Igot ilt io of trd.i' Ilgrce,-im,|its wvithW other otn.tiess

'rhe ldiil)le loy ic'il Sh:bilizi tioin AM of 11,:31, is i-A slitim l ill tll-1t114che'd report, iall onl, wilh plibli, wd ,,. "'lhe full l \nJ1loylivn ilbill, it is int(,'rting to noie, ijnilthes ilhin it'; scope -

1,1:11 (.11riv l ' v. jlI I llp iV ' v 111d 'llil lAili,ol, W R(.tt., P1141 w -,,rkitg v.ltldilj.-ll ', f,''w iv.iltr ri[ , it ! if] ill p 'Ino, It I, ditri ,tvi, i, Itturo- ii -to, - w'is, 4 I it-el ii , Ihtit 1 d t' 1 t, ill 4

ll r r" , ral C- wid such t h l ilt ll 1wi, t - III,,V , ;l ir.ly 1Y i lE 14 irul, 1.% 5 11 !t h,

level f /rul- eit. 1 il'tl% -tli ll J 1114 1 O.f w li 3t iit.tl, 1(1 (i 11471'G?) sto'Ci rall tarlimi III slfth3I;:o, rnil aylt~ti~t ;v ;nof, i[ rt,' litsk-,., .fi ll/

;tdogfrator! w;llh tl.hu Isln fif S ttte wit t alfi W.'1 ,11 III1, 0M!

Wlhenll till Em'llip yvilllt ".t lbilizathll Act of 1931 w'l.s pl 'svd, Il~oill t et out t hat 'Sitimlitrla' Ifi"l t ion i 41 fit bidllliitl i o'cssitI ill(Very, S ll ' itn tI I l|itipil .,OV'l'Illthent."

Uilfortilittl, (ik In'cjiple wil' 1Iot (carried into prac.thv., Iyv1,31, wlvn wal. broke out ill E,:u .op', we still Ihill no, ilitc, ratI 1)r;-

goraum 'of 1l4,,-h4-I Sil, N v, 1111 Ical pliblid works. Still 11101' ilJ )lrtvilt,we had no n11lwhhlijrv for appraisiut the, imjpaIt l)pol PIlll yl'II,iltflnd prod tction (of the' ,ombititd ,l,'w atio..4 ,r le..viir, , ':,tat;, 111111

lovol governmluent,u3) .~,# ./ir4r ,1ifu i )4;4!/11'4 ,! },.!uit l,/,bz tt l; N'1 Atft11 ltlE /58

tic;l)(111,fib

l lhokiuL r bOch I I1)4on thi n olitru )Ioli,.l liI lto " (If ty I ')4 li cill-

Senate oi' I 1itet volItUnittl'i'SIjo. 44tl i riner fII'I(I r e'114,' overl-1t11 11its, llt , o.ti ol th, Jl'I..rlt 1 n ,,M' , ihll I'll 1 tIil.( ;

It ik 11,' m conviction tha htillei t call Ill'4'('t i4, 'lc..i-ctil fuor post.war f(ill P'Il)l0ovit'ilt 111111 flill Irodlu'tio u omIlY' if we. hot'c till' I144'otwidesl),tld pal':tiipal holl ill (., ',.i~ lhii~ )tI dwe part of tillev,('ltlllic' ItIIII sovti:ll grIolIlps. Wit hoWl Vvo! IfIw iipwl,| io, I i, ( 'onri-rtA:

W(lIde b, n11 li l to so its t Nt slrect,4\ ot Irk Iwr I hl' d cllp1 'Itiit 4,fIf, i.<l11tive' pl), l'y. 1 ilhiolt it. we' votlnhl Il t f-,il ti lhl, plblic lifder.

stalldilig which ii il' to l tIll thlt slct'ss'fi1td illil. ist , 1o11 of fitlyfulll roglitclut Ij'o 'ullt.

(4t) "ho l'it;ilr ,for t';wi, II : ;ish III t witl!.!/plfi lit ; is dh illtr art oltillji,,bo.[.iw all, lost aftr a crash

The |1oInu)loYeIIcnt Sill iliZili)1) AcI 4,4s IIr l-l4Pooll ill 1 *2 . At tlnttime. t where W,'lr' suliit lit joh l)4)p1011 11it ie, fill. alllovo fi1 wlo werewill g w141 it,)1' work EI l'ot tiv' a,'tioli ill I02,4 oil this I voi lne reand related p'opoalm might well I hve g)) a l n It olg way" to i'd fpre-v'etin ihe miseIry 1111( 41 SP' I hat (h d ,oI(l('d upon IlIv count ry 11yit yea I ' ors litter..

IV

LETTER OF TRANS1ITTAL

' Ifortuittel.', t e It ederrl G'overttiimt,'t took no action on theeliplo livilt p,)l)lt'- h, litil we' Were ill tit(, deptlis of the dprei4sioll.. IL r;'Ilt, by the t ile the Elt'ployi-lit St iltiliznt ion Ac't wim passed,lltll('I ItlOlich I'('tli' 1" 't Oll ac nwas liw(hde. \\ ith sti('h a lite start, not.e'Vlt the 'iltire Series of le'ergealcy Itlasill-cs whicl followed, provCdSuflhviiilt.

'Ihe vear 11115, ilr' le respect. taty well go dowa il history as cor-mr It bh: I ii 2S. olo lav, it s It If ,28,tlw,'re ar joIb (jport iaiiis for ill

w~ho tir' ili hug at d a ie to) %%oirk. Ini fadcI t h e (iov'raieaat 's vatst warexpeualit ire-s havie 4.ett it s;iIIt l ill ich laalten' is IL11 (JvL'a'"ltply'f zb ait At ot itge ir if aHt Ith, workers

oreov'e, , it, ua'hi 19 2S, we fav ilt ', pr ),t -if it s i hn decline in thelvah,' foilI'r. \\ heat .1atplaii is ieft'aatd itaill we ill tru.st that it u ill be

$0011 It %'%Ilr \)Iwl( itilarls will IV 41lr-'j)lv a1,u1 leh(d. NIa l aa.. IMts %illle 'c'Itl lI% ' Nimislh,'t % ill he tlt'o"ii ulit Of work.

II we a14. pri'OiitlY, 111trlliaaaal ii tietiploymiit eat11 b e hlvd to itiit.ijain i111(d or 1 eaet(''ti, leeoaioai, (-ill Iniov'v ead il higlh gear,

Ivoidi tg hot h i1ilh io01 Itid wild boOil, ola thel o1W 1hand, and uaMawa-jployuaia 11ad11 ji4S I on) lit, otlier.

If we fiail to 1,1 1ttolli, tly Al'v af lay Oli'ev ligatiti be swept illng oil thebOOll-iillid-halll 1'01ad. \VV 11111V Ol(' ' llI bV (01a4i44be fINV to u Ie l)aI(nd of

"l l e l . 11*h l lll ll lil lll1 'l, e f 1;l'l,\ llifll.

lB11t lher ta, gIl'r, gr dillerelitr be t I re, 1114.5 iud 192,,. Today.Ililt grlit I aaaajoa'i i of thle Ametrina ;n'oph kiiows whitt dangers lieadlv l v ervoill' l.aows thalt o1 pri''.'lll pro,4P'rity ig artlli.ial attdtllll i! will et;d whela the' ue l i4 over., Moreover, we kanow nitw1taMOaN, am' tat how Our t'e on * v works. We hative been thlrougha thegI'('at est dv Wvs-'.i' ill n A aen'iclall hlit rtv 4Iti the g t'elle't war of fillI iaie. We hait l ihow to work together.

.s 'iaimia of le liikitag id 'tirriy 'ormliti(,' I iiln ('oal-tidllit, thait ill its ('(taling sltltl' tif ill n nlillopiiylt legislahtion tie('OIllit Ive l.;is whole %kill st li' lie-' hessoll ;of thlie j)aist alI alp)lyth lm to oLur 1' ie t e prolhi' of . utriii s postwiir full elnl)lllymelt utaldfull pl'oductioa hit iiii '('OllOllly of free 'ollpetitiv, ealterpa)rise.

Sin',lera'Y,

v/

CONTENTS

ran.],,ttcr of trails ittal1. lluv' ,,o11|d (if |"llmp llfi ,l m i tabiliatti~m ActlEx1Ic lAr tio of the Empi o yt:1 i Sh !l abilixtiii Art ... ... ....

OompUi rioli %ith the, NOulltilsi,,.u'm hillI]rccl,'d4hmlI . 3{

A 'u ht III ia'iiii 'ii ii .iii 4,Iii.

vni t-11' ('wlll! r vivo h'~ ll illi .1

(In tilh' floor 7II Ill ,ti lli r 10On1 the° loir I(0

('ljtll.'Tl't' l' l'4llllIt Itll' I I

8tae act lJotII.......................................... 18IM. Adm|tti -trat l4111 ,f flh' of Itllhe i l ls+Ill Stlli'jlizat ii Art 14

Veii-ral i; l mmot', ilt , tlldilattiml IBoar' + , 14"l'h, loarrd'r, 1(:I ii liv'- 14Sllcvs'i'misr" to the+ l",,diraI h jl is|) mvill slt ,"t1ih1l, 11lh rd 14

Table 1. Majolr dlifTc.rv..i,,t, Imi. , vii,. Ow! l':*I;.Ilo ', N N11+-titta lizat ioim 4 o ,d

19:41 a1ti thl full tul~hlovlUl iill 1 hf 10 5 . .. 2Ap'mdix A, Nitt, tll twot . 16Apl1milix H.+ "'*-% o t f , Fe",'al* m lol i. llnvli Slahlili/l liton Am' , if 193 1 19

Apimlndix (C. 'I'c, . 3Il , I' l ftlli 4104)l ~ l' violt bill /if I tll 21IAl.'li~lx 1). 4.lletvd repo+rts kiieol mirls-,r #Il-v awlheirimiti~lm or llii. Iedohrl

IYmpll)llylU,'tlt, Stalliiatimiio Act . ...... 24

HISTORY OF THE EMPLOYMENT STABILIZATIONACT OF 1931

1. 1*ACKCItOIND OIF TII EMPLOYMENT STABILIZATION ACT

lAijdaation of the Epploy/me ni Stabdization Ad'l'li.. I't111 I 11,'it Stithili tz ion Act \ i first it iluv' d in Ille

S, ,mitc Il IV I, 192S, its S. 4307, mid itI Intr version leccllll a wt', oliFl 61" , 1, Y~~~ I1,. i!131l. II 1%i, fi ll 1. t .',,r vidh, for fl,' 111vlv in . phull-

hii ii1l ,111I ed colstruction of 1ul ie 1 ink,, for lh talbiliiltiOllof il1 .istr, 111IIl fl. iitjg ill I l ie n'cv l iol of u1ooc hj nivii lit duringperiod., of: lisiu,,., (1h~ sl. , I I, {'ldelr thl .'1, u~l\ilic'4, 1411111in ofjltll'ic V %ok4 , 4)1hld Ili, adoi pted ly ('ogrvss ti it deillie poliv.

Tli' liitiniiip ur tihis vi uli'4( c oll %l'l Wll ) In doIi for -vieillr jriodsby vaich i',ngitirvand h'5i t liit 4f hlil-' l'4 ' ral ( .uv1rllne'ui;1 with l bad

lll~let'iW1l \\4,l'k ill it, jikdiv'tioll, ill co',.q6,n1tioll within tlhe E4ll-

t\'11yiI lt iii ili it II l 1111A ,41 ,',tat,'i'S (If l'r isiury, ( 'ommeIIrce',.i', ulItii A)F|'luhur ,).

T ,l 114, , of (i'i f t1 Io i %\vfvr': I l dvio,, ' Ie PIn ' idlcii loutLtle SIrclul of blisile.s silivc inity , Nation, anul (2) to 11itke' progrceI.,lorl, ;.

If fit(, P'ri',ident! wvire ,mkli d I~y tlhv IBomd of an im~pending delres-

'04)11, lit- f'4i1141 i's. ill cit hr' o f t.%%o %% nys. I icd onle )0Ir litI 11gen11ci'SuuI i di'1)Ii'0ln S111, i ll ' f,, vollf 44,)15 ,|oll dIlol. bv 11ii IA'.dirl (1,ov-irlliliili SI) 1,'l' l'' fli' t th c st11 t4' ion of pul li'works ider t heirioll' rol, or. ie th h II ro ii io (l'ieig ',ss .Nl1J 11j1l lli it :l i) 11115imm for1utitli 1o1lll I1p))n ' hrtition for II,, .ol-t litoll oif plili i ork .'lI 'll't4IPXSI'5 l1pj)1'opl1i 1 t ,ui I cou l oIl v uI I'd fir t'll4) ii i' ioil U't' i ly11lh liolit'id Ihr i-ximili iiou ou high ' ii wi, river fiu( lirhorfacilities., fIhl.d.-( o ut Irojiets ll(l pulic, h iliil;lgs.(fmi~arIm tu /ithe fll i i ,!Syi u ut bill

Wll 111 , 5)14. d ie bus differi'i.l's bet ween Ibe' Emnploysmelt Stabili-zationt Act of 1931 and [Iiv full employment bill of 1945?

'rnl esse t t l i f fii(t ,n' is tiat Stie I-tml)lovIllut Stabilization Act,wis il filet imiid lit tl, reduction of ulo,1pu3'mlI during periodsof btisi'tss depression. This, of course, is di.t to the fact that itwas e'll'ted during te ll-hptls of a niljor erononlu crisis.

Ie' full eml)Iovmelt bill, oil Oh oll r Immd, is oriented towardjprevttitg dvl'prtio1- or ill other words, toward the naintenance ofeluoy.m1ent, O)portunities5 for all who are willing and able to work.

Tl iv' is also a liltri div (,4 in basic ineSlhod.Thet.Iederal ElOmplymetnt ,"t Stabilization Act was busieally a public

Works tm'amire. Its aim was to reduce imtemploymentl by properplhuti ig l I p'r administration of public works.

The F1|ull employtnvall bill, on the other hal, is much broader.Its up roa(li is toward the creation of conditions under which em

I

2 ii1STOI1Y OF EMPLOYMENT STABILIZATION ACT OF 1931

lployment c'all be. iailifitlld by pr'ivate enterprises,, Igederil expe,.di-ttisc fi1re (0to be ,m'd onlyv its it I11-41 rortj' lmellrlel to ])l't-etl lltl-

plo.i'It. Niore. ver, i;11bli' works are only on,' of mily possiletyl),s of Federal ex jil'iituittres that Imligiht 1;v d(,plp.dIII tIer thefui ii(ll )jIOVlIilt h bil. I AMI s. tiaratlissI , stl wl.i('ir, I)uihlE 's, andFll" othelr'typ1s of Federtl Ol tls IIl' 5l51 iiso l hl4d mier t lermn1'4c4 IralI e~xpem Iit tirv, itid ot I ter iiwv~t menl C'

A Federal ml)lovnlelt Stitbilizati n lord, consisting of fourlmelmbers of thi ('.lIhi'let, wits created to writ e reports and advise the]President 1ts to tile approllch of it llinl5s dlepre.ssion Ilith r tlhe ll-ployhnltt Stabiliztion Act. No similtir boltrd is created by II(- full(mi)lovllent bill, 1I1t ti( advisory tl rep.,ti u fin cti1l, fire to IwpIirforild ill tili, Ex e ,,tiv, ( )f.01t f tlhe lr,.idcit ill volitil IlllionWith tin' ('libiit. tatu lt.iulls of .i,'n'i('s. .Mso,ti' ireSidt.it is (.'l-powered to create advisory boards of rIlres l lativ of r l ld' antgoverltlltcntai gr'oulpS to 'onsult oil 1me tholls to lise il el',ct ulting thepoIih s of tlhe hill.

A unique feature of tile full e ldoyenet bill, which iwas not to he,found ill the tlployinelmit Stililizatiiti Act, is tite joint congressionalcommittee that would study tihe Nationni l Budget and report itsfindings and reoim endatioi s to till Settnt ad louse.

The inmfointutiotal basis of the full etntjlovinet hill is much broiderthan that of the Enplovyiient St ailizatIon' Act. Under the E lo)lov-lltellt Stabilizaioll A,'t estinlintts of busiiiss activity ill the 1 national

ecoollly Wl e t imilde (il tile vohnme of contlra ts awardhed for colsltruc-tion work in it stamphe 3-month period w(d oil the montlll ililex of em-lovilent publis, hed I by (le Bureau of Labor Statisti('s. Under the

fulf ('ml hoymlent bill t'l, estimated size of tlh' labor force , the agtgre-gate volu;)e of investments a1(d expenditures by private enterprise,consume, rs, State and local govellnn'1,t5, mid tlie Fedeiral Govern-menit are all included in tlte National Etmployment aitd Productionbudget.

Table I presents a talh' summary of sone of these ditierences.

TABU: I. -- Major diff nces b, trren th i mnplouncrdi Sabilitotion Art of 1031 andthe fulI employment bill of 1944$5

ArIt ti ii31 Full cmlploymetit bill of 1945

Policy ........... Alms i al1 In prevention of Aims to inalin con inulng full employmecnl In aunlemllo*1nit during free vomtlitiov ecolonly, byperiod of tiinctri di'pres-p'on, by

F eral public swork plan- l)eloumuecnt and purull of "conmbstent nd olinlylng and noltini Ilon. arrived at *'ctnonihilW1 olci and progrrmn4" to

"inomuri., the hilgie t fea'ible l.vdb ti enltpIll.lla00l o l lortliltim" to I a reachevd through non-Fl414'rail a tliiiy, and as a l reirt, F'edleral t.lIilltures to maItitaIn employmentt.

lederam governmentt res- F(leral (0ovurnnu'nt rwslionibllityl It corlwratlonln'eiblyl ln nlelrelrlahc will Stale atid local governltax adtl I ic m)-I'm,cl rate, andplanIn j nonlic gro'upts, to wmur contiultg lull emploi.lda itmr lo h FIral pblIC nent.work.

HISTORY OF EMPLOY MENT STABILIZATION ACT OF 1031 a

T Ir"I.-- Mjor dliffe'rti ,iff bilhru'en the i",m1lplollilent Stabilization. Ait of 1931? andthufull e,'plo' ; uid bill ,of 19.5 .nmititmed

i 11ll 11 144111 St i llt l on

Ad ll 'f 1Wl3-1r Fill vil )'334 11 h lll 11 kl l of wiMh

A~ll3i34I.1r11 loll,. Io '~iI 1410611 i StI111 I'~ V~.* lro- 'ililv , tim o 34443143 Em-c ti 0:11 1 (3~,* 411m isoll wit

13147141 13134111444 4131

13l45i111141'311113 1111

h/vii,in filiml tHl'lrtft4 A14l 3ll3fll', S ol.1'3 la4l'3 4 E

IMl tix 4, I leta. i l t I -

lit h i.4 I'll.,*4tiI' lit li ltjoroi lv 43 lep13jio's%41ll.

I-.I lv (i444 f 311'11" fi14344.it\ ii|I iti tilllh-1 ofltl %l tt.

1114 4 ." u qI'llul 44 4 44ll 't utl tl ift fill I tI I 'S,

l 4li4ll 4 114u 4141141 33. 0 341l4

WII of 4 |tllot Iwtrlwr1.4r, dviartllill Ile.ub, 444441a d't*.ry I.4iaro,*, r4'.to n'311 4g 1il 04stl4y. ulgrilcul.llt', lahwit, " l , 4134' 4 I11 it I- &l 944o \1r3 lt4.'l ,, Toprrillire 111111110 Ill I 1)14.4hr4 14111 I'r tlIl3, 1440113.11443i if ilillrig 414t1l4 l'l'lI' l4 |fi4o4144li tIoIi l0l'3144 tit (411rlf '.s,

ItI Il'. 414414.4 11314 3311 3l l (3 I| l- l ,iat Ila

I r 5 l4 1ll l 'liI t oint r 11,4l1tlIo tiv Joit. ll ll itteeI 111111l 11,1 404, ,Il.l i iii, 1 r14 il441 l 4 ) allot 4'' mr.'by

('0411lli44 , 014 1 1 'A ' 14 -1 I ll 1114-11t 3 4 ,1II 4llot444'! 444' !lrh3 %%li 4 lt4 14'-.310' 14.

1. I., :3, lroo41 tivi f ll o( VI4. I113 444143 4414 4 41' 'M l 1nt3., |3illllllll (4.1f ('1431% 4i311 '.414411%.

h4.3*,41 u4 4 wn l. tr1 s for A llt54 all4ll (,i tih %1l4 , 4 11"o Lit .t f Iti-.'hrl p ilew1011111v wi4l4.s. 413.3 lori 4ii tt 434 11(0 111 144' I 1,h 14110 4 111i114ll0If-i'4 It li 1111111.ilw li44 l ol W14 1144l4. , I tl ' to it, ToaI ilttI lhffoll.pil lioll-i 1vil l li t ; 1i,''4 t il 7lot4 ,1144. .Ilf, ores I I I livl Fer 41 to lorol ally p'll I I lhlt

4 Ivilt I 1 34317 4 <'f'llr. All sucht rl 111 -'lI .t44'1313Offill I lle lit) th |:i llltiomm fl -Av l an lt, 1 4tl-mgl,

11114 I) 44 4111 11144' ; 1 lll 434l 144 1 .001 .F dlfal 4i1'st.I 3 '1 I i111 34 l lot 'll41 ll4 r',

it .4 3,'til. 43lilt r4' 44t il . A l. iill i s 4 l it Iw+ lor,4e' ill 4344tili w ith1 PitchIltic fr li c % Ill i it, ks. livli fit, litki vi ac t ed.lt'l~

Prl.'tdrnfxTIh F'edhrI Fil EnIplu' ynlv nt Stitbili i Iion At for I lii fining or public

works to provetn ulin1plov1i1'lit las not fll ini1 ild efrorl ill I 11t, dire-tiol|. Soviltor (,;vorgv Wprton Pvrpvr (1i3 mv.sylviin) in J927 hadintroduced i resolution vuliIg for 11i, 1l)joilltiivullt of a Solmte com.ltil tee t S tudy tll. tbU)ilizit ill of ,lluplovlhlhlit find ministry tlrouglhaldvaliIP philluling of public works. 'li4 reI'4.Oti ) wits report edfavorably after livarihi linld 1 lvl liid oil it, but tie Seate failedto Ilet oil it.

Senator W'estey L,. Joiis (\Vashin rton) in 1928 had sponsored abill to itel 4',i. it'prospri y r4, ',rvf,' which embodied t he idel ofpllnhming il jproSj)romls !i 1,s for days of depression. The bill wasapproved by lih(- )eprtment of (omnmerev m.id favorably rel)ortedafter publi harings by the ,,inate (i mnuere (1 juommit tee. Thebill was ever atned upoi1, however, because it was deemed politicallyullwim, to metlitio dvpression ill the future during it Iationial politicalcampaign.

Seuuator James Cozens (Mic.ligan), elhirmouu of t lie Education andLabor (ommlitive, wis chairman la of .mii mnmitte whi.h hlid hear.ings o unemployment ill) to January 1, 1929. in the final report ofthat stibeommittet it was said that:

The Government should adojI legislate 1 ithout de'laiy whilh Wmotlh providea system of planning public works Io that they would torin a n,,rve againullemlloymicelit In timluv of depret'olln.

4 IHSTORY OF EMPLOYMENT STABILIZATION ACT OF 1931

President Hoover had a long record of supporting till planuilg ofpublic works:

1920: Hoover waoS vie, chliltlil of the second industriil con-ferci've called by ,'residtlit 1\ ilsio: Thi' report of thlis .oufter-mice recomuinded planiling of Iublic works is "u'on of Itl( mol ttuseftul approaries to thlie genei-a pr bhlei of in, ipln)ivilt."

1921: Hoover wa Chairmnn of tili- Presidt's C(tiferviiev onUlmpildoyvneit. ']']i( report of this eonferee., rvotitlneided itheladershi of tlt Fed'ral (hiovervi lit iti "'expiiding its Imli1,works 41111igt I.,ri-lds of depri-ssio, 111)( ~ovzl'il(ing e~xt-vlil ilk

periods of ctive iltistry.'1923: Ihtoir thltiiippintd i ii I(it i I)IIm.-Siie eV.is i11d

illellht ylli t which called 4 11ttvilli(ll It) "dhw, I ;i',, I I -' .4lrefilldraftihig of laws to hisuire it p.icy of reserviig puII li, % oiksproj4v's, if it is to Iw, dorin vffet ivetlv.

1924: 1 hoovr wrot e it foret o'l of* I1 rI report of t le ('omnilli tte01) SI.ilSolilI ()peration ill tlle (C'onstrmiet itl in thitlries ill wlieliIke said: "''rite Porls to enc(i0 ul' lotig-itl-11'e do utnitig (tf puldie,torks dtltsrve tle stipporti of tle pml liv, Igklii tors, ainIld llinik-Irlat iv offcilMs."192s : lIn his, campidi(rm fo~r ihctiol, 11 lmel.r eclmlit'lille lilt-

planuing of piblic works with i viiv il eli itti iiiig ie lipl-flielit.

Associated! !lto ioWa lThe. Emnplolyment So.; iiliz.it ioll AvtIv ar I1t (if it brloalder heZi-4la ive

program I propo..-d by. Senatlor Wagne.mr iul 192S. The thelr b~ill., ill.trmovued were:

(1) Tiht, employment stntiii, hill;(2) i,lit( emiloh vntq seivic,,i Idill; anld(3)l thel inll oilhymnti isUl'iiiee Iill,

Thr? emlploy!lltwilt statixtiem bill..- lh, tenilivil~t slaltistih'4 bill Iw;-CAITI 114W" ill ,#litle 111:l0. Ile bill plrovidhed for the corrlaiohn oifunemployment stittistios witi dite mittirsld grt'o h ill populuiloll, for-eign iniiration, internal tide% of entigntlion froin farm 14) vty Iand(city to farm. The effects of tedilohogiv.Ii, po~vnv'ilanti sa. Olial uinemnploymnt, lind other trendsl. ill Citlltloyiiecit andunemlploymint, throughout the, Nationi coul he d iagioseif from muchimlrove,'l st at istics,

Ill askiivglfor tuilh legislate ion mil stalt im.iv,4, Sleliior .1iiitl" hail saidi:

It is fulndanietal that we muist ait all llitio,. kliiow howI Iivl iart, lli illoive~dwre they are , tid who they are,; %hailt ,,vtirk h, call (Ill, al lt eh ret ,il, %o' rknedxti to be dotte. This informtiioni is ini'-i,lnihh' le 14 he, iltelliimvil muiidalireof privately buiiintts, It is ilidi.sll-isalo, it) illy program i f ttlilizalltioi bty till,

whichl miist be exefre'tiei lilt, il- loin of i his prolvhii,

fTe employill mtl rricet, bill., -The empiloymen'lt s,,rvice,. bill, firstiintrodlice~d iii 1,928, did niot lhevoitn law ui-iiiv (i, 193.3, after Presi-d~ent rostevet, hiid ,omei, intio offive. - It " iv4 paissmd by I0. 0 1l tiSolilltand dwi H~ouse,. bult was vetoml iii N iiirch 19 INr, I l resii. it I lover.This bill was ,te most controve~rsial of lth einlohiluit, WINl, ful haid

si fiIl joulrneiy through Conglressl, whel it wasg olplissc, oill thel

groiunds thati it was nt ilnlver-siiryvasi\ ioni of Sitaiem' righils. -

18 notile I, sppt, ndlx A.

HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931

T. tit Jl,,!/.In *ls;uratlcC bi!- The l opill viOfllllt (olult)('i"I4-ion bill of 1931 IIIvu'r vitnt liut of tle Selat, Cioimwr(et ('omisiittee.

The' bill providid for .oop-raltio l ,t1)Ib.' l F uii i l .leril aid[ State(Govel'rliuiilt lll ill th1w provi~ioIl of Ulii'IIlipovinivilt ('0om1lk)isatiOll.

Selintor Wanl.-ier ilt rothie, lC til e'Il4eInditit to ihl, I. ev'iti Act, of1 930)it l ('Il('OII'lip. vinplovers t) se(t til ul t(ii O 10j icl(.i,(,i ( 1 ir'eles for their(illpl)hyetvl,5, bu1it thi u!.i ) did'i ilk (oiiilitl,4. Ilk I4'.wirv '. 11:i1 thtselllat;' lpussi'd Sellolor W \gu'l s re-s oilliti ll proidiljg for a selt,'t,Sllat i' ('01ill itt ' ) lll llu', i gw'lleral studielIy of MXi tlhll IlullllloyIlt'litcOllllilp'llNill s ' .%4tvills. Four v'llur. liter. ill 1 a.13, 1Nat . lio-widleMyst ''Tii of Feihliui1- l ite Itl'lvilw il) Ilto Ii t illsill1li' r1''111i11,ts \%1 setip tilit'r tile' Social Secu.Irity Ac't.

iIt. IISLIVI'E 111STO'(c OF iltI, iVEI-iAWA, . ,oMl;r

STAIll.IZATION A cr

i A!,u ( ;,.,1f elecc ( 'e1 i . I 4 gi'lat iv' Itet(1111 Itll tI iI' l'4lI)ll W-fill'lit St ala lizatioll Act I)l'ltil Nk 11'(1 I l' l'llploy lile'Ill t V aiilizttlioll ,top-the.r with the' l.Ot I0vlill'tlt its''Vir'e Ibill t Ittill t eiIllpl .vill'lit stlllist ics billi. %ia-' .,ferree to S.llitolr I il i n 'ii 1 41,1t ) % (('llifol'ill)(oillltm 'i ( IIIII'lllli''. A silt'rolllliittet. oil lIIIlhllllhi ' ll vl % I% IL)-p)ointedi to vl)(11ll l i ' oi )l tlifi b~ill."

Tilt' witnle'ssi's who testified 'fore ' .i( til'com I I were:-'-.oh It. Andre',;, geitral stilvetury of tit, Americ'ui Assovintion

for I.ll)abr Ie'Zislltioll.WV. N. l),k v'ditor andil lillmiger of the' Rit y Triniianll

inti 1111tielill I'gi.iltive' 'rt]'st'Jltlitiv' ot Ihtl 1]rothl'rhood oflill itwll-V Trl iillllt.

Williillt ( ;I'rl,,, president of thi' Amlericall F'de'ratiti of l.ohor.11114,11 111111, (ir'ctor of tlt, lnivt'itv Setih-IIl'llt Ifo e ill

l'hihlidellphil 111141 (,hlir|l1l i of till l llomioylllt 'otliflittee,Nat i1)11 I 1",hrationi of Se't l] ent,,1it.

,1llleRW A. Eimery, re)resenIting the NltiotIl Associltionf ofM alllft Ifit',r. .

Fratis Perkins, industrial commissioll(,r of the State of NewYork.

Norman 'lollw, chairtnun of l aw committee oh public flatirsof the Socialimt Party and the I(egue for Industrial Democracy.

Senator Ro)ert F. Wagner.Prof. Benjarnin F. Squires of tile University of Chicago.Mrs. (harles M. Merrell, author.

professorr Squires. Miks Perkitr, Mr. Andrews. Mr. (hren. simd Mr.Thomas till temiifie , thnt they supportled the F eral employment,8tbilizltlioll ll. Mr. EInwrl: sthniiited 0 res-olltioll approving tliebill which had eetn drawn by til board of the Notiont d Associationof Manufac.turers, which reai:

?esolreft: (a) That W' favor prouiapt EFx'utiv' aclietion, or, if nc('lsary, legh41a-tion t o plan nitd syst'eitiXe public workL so ue to aid in the itatiltzaltion of em-ployment.

4 Mwlti'rw of the 1i1'e'1,''10 : 11irem joht .n(('llWnI). ch.ilrljn; (hiucle 1'. Nt* (North 1)41otA;Arthur It. Vandentrig ( .llchion); Mnn -.Fletrw (Fkrlda); arry N. fle "'e (%litmurl).

5

6 HISTORY OF EMPIAYMENT STABILIZATION ACT OF 1931

NMI is t)l and .Mrs. Merrell de voted their If-.; iuionv to sit cI ripltioIOf ('lSP hitorie'4 of Ill- soCial Iavagres of lilleno1 itilil. .N1r, Doaktestified otiv 11s to 111i4-11p)loyleint fco litioIN (Mxiling 1ilniolig r'itilr.ilid

There %l 1s fno oppoHsit ioa 1- the pliiliiliar of )Imllie works 11, ell-visioiied ill th eiiiljoviiiit stilbiliz.til hill. T'lo grellat4, IIrt (OfIhe It-thllmoiv alld dli.e.,ssioa witS coleriled WitIhi 11, evor itrovolr-ioIemployieiit Servi'e"- bill.

Th t tli .llehv of lltlr ,liiot, tlh clii rlii II, wI,' (triavIlvlhroughout Ili liitrinI .. le staid of th vII fpill OYieri t ,tat ilil.u I iIllbill:

Oir I i'-doin nitl ;rideiee'v w ellh tiot eoetl til gi I . r - ll require Ihe tutellii til'nl(of siollif' l'e-i-h l t i ,I 4ef I tee,4 Nitrl at it pre.-4lit Ime * * * v,, hiw% ,r .e'l I tielI ti .ri Ii u t. ari-viiI I it ,e I if btI ie %% rk.. s if lit t I h- u-4-1; hI j l f t Itw c nw. i Itll hiIIgW) far ts I h(' iliec't mpte ii' I , o'iitee'rltned, i-lcsit I of r4-jI i-i tIi it, l ,:ejit %t ta I t.. I ii ,vrejalft t s f(It t ofle i i 'v",-p'ct In til h at Ii~lr.

Ie-ater W tagler Irsenled II., (ease for th ie legislate ion ill liefollow iulgword-4:

Within lip past 3 till tis e lti C i I it,..',d in all fr our largo (iit i. cof Ihe' coun-try longt bread li is. The flrfe hltoigiig littts Ijltl,' Itirel,1 Cer etd. I If Ocoilnhllillit we fi l n ti hIare t, li e Ie i co ieel h i t-l Iscritry lodiiitghot iws to cart- for I hose %% ho vn, A ii tout lodwip ti ffjI * *.

The (.lolie.if II iinljh, lit are N ittiuii.% it ud its effect i.s Natio nCi.t,.)f all oiir pIrol)lllt s-(ceoinonillel of seial- tiolfe is liore ef a pr line feer ilieiia it

action tta ite tIte ipt to stabilize untphtloi w atid Il tevly Ofrflt I hi rctlir-renct of weritiii illmlltmitl,

I is b tt ,ff rl Io tat ili~f' teal11yn '11t iO Itt dwee fl'lrcyclical leriotls of um'ntoip Illell , aet the retll jig lis! re-s and t n cr1 reseuli iitigtrou theis, tihe (overiiiieiul ealltt s tltuit aside. * ItN.' tariff is woewaeeold And toliz ha lsli acce'le'd a,, a l'federal (pif Mi li, tied flat tlea. I lakecare ril ceisiderltioln of the pr Jmeticii, (islribtlnln, All (ellfeilolleeli of goeel-,So, tox), we have our Fod(eral Rteserve, SiyteI. AI life ljmte cirrlie, aslft ereil

ere considred tocal Inat term. tie II ieoa w' lei to lnlhilize erldit is a federlSroblei. litit, oenlp hre'l ilte g alt I lle ol)jee is flt (l qte. ioll of illIiitill, liiiitor illie i m;tl oyneret i,4 i fie o tIdatl oll of olr Icollolleic lclitl-n.

I aalt tohprevelll it reellrrellec o Iti' I ragedy 1), lil ips cvry flte' na reach I thebottom of fl It llsif.lu. cycle by stabilizing vinptoyn lt. It can he doe,, 'iteireu*4 a tnlle whe nlalaria was iregarded as soireelhiig ee had te Ink, hben it calealong, ani " all until It left u1-4. 11111 flint as all changed u livt ll, cure ii as fond.And so with t nenipe neyncf Itly shay, "Wait nt il 1 1 spring," wid lines willthen he better. But we cautnot chain spring to our sIreels.

yiV view is fhiht it, i inevitable that if tile Federat (overlellelt Nsls ait, exaiilpleshowit the efficacy of It (advance planning of tilhilie works), lle $States; a( Imunlcipalltie Will followw 1

An alternative was pretented to the Wagner eliplo'i'melt bills bythe California Joint ,l linligration ComImittte i it letter included ilithe record )y Sentor Johnson. Their suggestion was that, stl('tercontrol of ilmnilrtioli and aliens would alle'viate iimploymeitt.The letter read:

The California Joint Immigration Committee, representing tile Skiate organilza-tion of the American Legion, Federation of Labor, and Native Sonia of the ColdenWest, takes the liberty of calling to the attention of our committee tile connectionbetween unemployment and the present operation of the Ilnnlgration ]lestrictiouAct, tinder the provisions of which between 250,000 and 300,000 alietns enter theUnited States each year, while 150,000 or more come In illegally, all looking foremployment and many securing It by displacing American labor at higher wages.

The report that followed the hearing of the Commerce Committeewas issued on April 2, 1930, and favorably recommended the employ.

#90u wo %2 fip~ndl A.

HISTORY OF EMPKYMENT SIABILIZATION AlT OF 1931 7

itet tidtiilizaitiol bill. No importmt anindmeints in Ihl bill wereasked bY tlt, cmmittet,.

Ott the floor. -i-T' c'l l loiit-lit Stabilization bill was brought, to thofloor of tiv, Seitte onl April 28, 1930.

Sli'nttor .' tltgliit' o}ti'i'd thu digelussioVln by sayilig that tie ' iploy-iml, stilbili,,itiol hill had lbe,(,i p-niilg for 2 years, that ft-t {Cot-1iltt', oil lditivitin aid lithor had rteoinnivmded such legislation

ill 1 929, that th i' Sltt' (Commi'l ' (otauaittei had favorably rcolni-tillkh tlit( bill uind that President HIoovtr had several times eidored

Ili' P ili pihs i' 1tiil il ill thi bill.Senator Wiigtltr next spJoke of tlit opposite ion io tll' bill:lh, iivit. k-1l1odi{'A ill th,, p~rqo,,-d hluishttioii finve inei vu+ry little articulate

iulila,.it iol1, 'lhe obh.lt t'l' ill thi wv.Y of ith niore ritpid adola t ion liots bi ie ratherth' inr iin of all old-thim atlititle flow tio Ioigvr :jlali d I - flt it ilmli, vrxn.isedillie wlif hi l that ioi.'ioploiin4iit a a petrclio l aiffiir lroiiulit aboul by ildivlidutli l lillet i l'a , fir ilo li't'e, rlo .!l! r ill i t'. Ii it prol lin which it wias for til hte ilividualwiier iimii or workiniuumimii to stve h ll hIis, or h'r own wiy.

S1'li ii'r V ilillei'rllrg (Midlhigilli) 'ollgl'iilite S1i.liior Wilgilor Oilhis Itreiliiit iltl of his Iirte' bills,

I ilii i'il I it) \-,)t for thi, ll llirojl l iblmitt ted lb% fli- $t' tutor tromi New York.Ill illy jilfIlillf-i'l, it i,- ai Step its lid lllev. I %\aiii to li t, h,,lit, lio%%olvier,

l0,tit tl j, plai ii) I -till frtller ritim-d in thi- fitire aid in li bm protleil Iniit- tf'vvItf filmii aaitin t u tlil t flit, i6, oilt etlief w ukilem 4 * *.

'I het m , nl, ci' n ' t-rd toi \%.lif" lh lle,415 .(V(.l.(lll n li' ( l-rilloll. S'ell.

itot \'niiitti,'aeg pitlliited ilt that if fit lippolrithlioli of l, t,t)000f00()W41,14 i 111 111 ld ultlit , wai'k.s ill i iti peiod of aicite ' iie i'tivi,t i l t ! e~ i l i m i l l ., h 1 1 0 1 4 -1r l a x. b i i i dh li w o l dl i i t h S 'v o l l i l l ' i v i e v t i l l l i f' r e c' l O V i ' 1 .'Ih111S ,l'h44.1101' ti ltls, p ir till-, bill.

"'4 ,vtrtiorv tio ei' , it i a of ii' t v i'la' i tl! t. imervit- , i tll, r lm.coi, li littit 411 Owl ali on,,ltii ll i ', 0- 11 rtlivri el ti t iit-vlf. * * * lit Iii-ri.l

of t'.llollli ftili -i'llv * * i il ' I tllo ilt, ilat we art', iarria tid ill -im-IntIlhitig (o lftlll}, t) of ow r lim alt i 'itribtlioii to ti' -iil iil: fiil,

Steiiitor Waiiir sidt il replv:i * * Ido iiti,6i k It llivi' li iliit tof I hi' kid biditaed k 1,eeesairv,'Ito, bil pr, vi~hg * ift~ I 'i lo},rizt li i f l IOO)({l. t i il 1

tti)!or,

mtlill ti l', ilitli jliti' v'olii., for inakiviu ! ijtrm triitioli fhi, ('iio Lri. will tll'frntl to adopt eii ilI 'r I ii' ll i f' ti' bt'' tir lir lu',eti tiat ailiI ti'¢it Rjmprio.

print iou * a d i f l ,rt' %hoi!ld if ti it I fi iiil I 11114't Vfl'r% 4

,e ' l'i di'lrt".-iilt, i it t llotit i lt i JIt -rhps lho $illator's ietliotli of sKillrilig lt( nlecessaryfluillm wollhl i' llitllll,!

The 114il-lr of Iiiiulivii tt' t'lllIt'giieTl JibliV %i1s WItSl titus dig-ItSI Off 111 id ll 1i t n)litit'uihi M\its liLi' io dii' l1l.

Sllitor Willsh (MI ii chit'lilselIs) spoke synipathtetically of theNitioli-witln' !ttlt'tnl)iytntil'i, iind ialded.:

I proti'st h It' isri ard of atid iidiftle i et l tt l Ihlii (;tiiStioli liitlillplo.-fillt 0 * o iI h part of il't, adiituiirt l i * * ", More ti.plratit ttin i'lkitig to) brig aliout a rmductiti of urniititils ill ihe worldtiort, iinlotiiiithi t qui-lolt of our form'igti rielationshitps, I the questiolt oitaking (t'hrtu of, ait-4ig, atid htllng tilt- * * * litliit leings lit Anwrieawho an, Oil ihe 'l'irg' of itoliu muiferiig afid possilte sItarvatll lt'iialse of theirtinahility to fillid (iiitloylitllt,

Stnulitor lBoritih (hidho) 'omntei'tlled tht lit, itvtestil('ti of Aniericaii'iipitil aibroal and utariff policy were i''lated Io iltltelllOyfl~let iii thleUllnted States:

Mr. Presthlit, whlut Is 1oiitg Off COlUt~titly is I ht etioplovieit of foreign laborto the excilslon of Aierican labor, elotiigldowri ithe faciorie, lit tils country,

8 HISTORY oF EMPLOYMENT STABILIZATION ACT OF 1031

and carrying on the trade by foreign labor. I do not know how we can reach it;I am not clear upon that; but I do know that it is a very important clement inthis question of unemployment. Vast corporations and financial interests are

going abroad, declining to use American labor, and causing the shut-down ofheriean factories where American labor would be sttpmoyetwThe remainder of the dlebttt whichi followed this Statement wasCOlntered upon the tariff question. Senator Walsh and SenatorGlenn (Illilois) enlarged upon what Senator Borah bad said.

M,en time tariff discussion einded, the employment stabilization billwas lroulight to the floor for a vote and passed. The vote was notrecorded.

Iouse actionIn the Judiciary ("mnittee.---(On lJune 11-12, 1930, hearings were

held before the Jiiciary Committee of the House I (Mr. George S.Grahal, Pelnsylvania, chairman) on the employment stabilizationbill and Hli t imilovent, service bill.

The following w itnesses testified before tie committee:Senator Robert I. Wagner.Dr. Ilenry A. Atkinson, general secretary of the Church Union

and W1orld Alliance.William Green, president of the American Federation of Labor.D[r. Samuel Joseph, College of the City of New York.m.."ances Perkins, industrial commissioner of time State of New

York.Dr. William T. Foster.Prof. Paul Douglas, Swartlhnore College.Jolin B. Andrews, general secretary of the American Association

for Labor Legislation.James A. Emery, National Association of Manufacturers.Mrs. E. E. Danley, national board of the Young Women's

Christian Associaiion.Thomas A. Cadwalader, Sentinels of the Republic.Miss Grace E. Cooke, National Employment Board.Fred J. Winslow, Illinois Employment'Board.Frank L. Peckham, District of Columbia bar.lion. James M. Mead, Member of Congress (New York.).'lion. John L. Cable, Member of Congress (Ohio).

Mr. Andrews, Mr. Green, Mr. Emery, and Miss Perkins had alltestified before the Senate committee hearings oi, tile employmentstabilization bill.

Dr. Atkinson and Dr. Joseph presented signed petitions whichrequested that the employment stabilization bill and employmentservice bill be passed.

Mrs. Danley filed a statement with the committee which had beenprepared by the national board of the Young Women's ChristianAssociation'supporting the bills.

Mr. Emery reiterated tile approval of the National Association ofManufacturers for the employment stabilization bill in his testimony.

I know It was a policy that was advocated and frequently made the subjectof addresses by the President of the United States while he was Secretary ofCominerce, and we say to any policy of that kind that can be worked out withinpractical terns, o dspecd, let us all Unlertake to help it, along and time ourpublic exp~enditures to take up thie slack of lprivatecnlploy men t."

I See note 3, appendix A, for names of committee members.I Mead introduced in the House bills Idertleal With Wagner's employment bills.

HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931 9

The employment service bill was the subject of the largest part ofthe testimony, and the employment stabilization bill was considerdonly ineiidentally.'ilhe three iml)ortault points (liselissed were (1) the probable ineffec-tiveness of the hill; (2) the alternative remedy of tighter immigrationrestrictions in controlling employment, and (3) the lack of Oppositionto the hill.

The question of invffectivcness was debated )y Mr. Foster, Mr.1Grell, al1(i M'. 4lolas (a lllmbelr of the voinilittev).Mr. FosTEH. Since the meeting this niorning I have heard these objections

made to the bill. The chief objection I have heard is that the'bills as a whole aretrivial and do not go very far * *

These three bills are of more significance than nost people realize. They areexpressioiis of the abandonmnent of economies of original sin and despair. Theyare expressions of lhr opinion that we can do something about it.

Mr. JONAS. But these bills (10 not reach the fundamentals of the probleminvolved,Mr. GIIEN. Perhaps not, but it will he a great help to us in dealing with

this unenij)loymnent problem * * *. It would be most disappointing if theCongress adjomrns without. at least making this gesture as prol)osed in thesemeasures * * *.

Mr. Sparks, of Kansas, spoke of tighter immigration restrictions:In this plan for bettering the conditions of the laboring men throughout the

United States, do you not think it would be advisable to place restrictive totalson the immigrants, on the number of immigrants from some of the countries ofour Western Hlemisphere, and especially that of Mexico?

The lack of opposition to the tviploylient stalbilizationi bill was

mentiond(l l)y Mr. Andrews:I appreciate that there is no opposition to the long-range planning of public

works bill, S. 3059 * * * It 4s also, of course, apparent that there is verywidespread support for this measure throughout tlie whole country. There is aremarkable demand on the part of the Public that this legislat ion be )passed beforethe end of this session of Congress.

Support for the emlplovmet stabilization bill was shown by therequ st of tihe New York 'l)emoeatic, delegation from the hlouse' thatit be noted in the ecord of th hearings that they were-heartily in favor of these bills and hope that you [tihe cominitteel will give themyour serious consideration, with a view of reporting them to the House.

Mr. Gralmi (chairman of tie House Judiciary Committee) madepublic the majority leport. Oil tile employment Stabilization bill onJune 19, 1930. 'Phme report recommended the bill be passed withadded amliendillents.

The am(utidlents to the bill consisted of tle deletion of the followingsix sections:

Section 7: Provided that tile Secretary of Ltboi should prepareand publish a monthly index of employment.

Section 8: Made it. mandatory upon the Government depart-,e nts to give the Secretary of Labo , the power [o demand fromother Government (elartll nts, cOmiiissiols, etc., the informa-tion necessary for preIpaimlg a com)Prehemlsive employment index.

Section 9: Ip)ose upon the President tile responsibility foraccelerating public works (uriilg l)eriods of (epression. Thissection colti ained a. declaration of policy on the part of Congressthat p blic works should be accelerated at the necessary times.

Section 10: Provided for the tulvance )lanning of public works.

10 HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931

Section 11: Modified the allocation provisions of the FederalHighway Act in order that emergency Federal aid on roadprojects might be undertaken in States where there wits thegreatest need.

Section 12: Made it possible tht public buildings could beerected ihi periods of slack construction work.

The majority gave no reasons for tlie amendment t hey ma(le in ilieemployment stabiliztation bill. The report concluded with:

This bill will provide means by which the Federal Government in making itsexpenditures for Federal piurJoses, as set forth above, stimulate employmentand help to relieve the country in periods of business depression, and it is'hopedthat it, will be speedily enacted into law.

Congressman Celler (New York) and Congressnman LaG uardia (N(,wYork) filed dissenting views on the imjprity report. CongressmanCaller, in his minority report, stated:

The bill as amended has eliminated sections 7, 8, 9, 10, 11, and 12. Thesesections comprise the heart of the bill and without them it is difficult to see howany definite service will be rendered by S. 3059 [the employment stabilization bill].

Congressman LaG uardia's criticism of the timeldments to the hillwere:

'I'he committee amendments take the very life and vigor right out of the bill.* * With the Senate bill the machinery could function at full speed in periods

of business depression and unemployment, while under the Judiciary Committeebill at such times it could only have the desire to function. * * * The com-mittee bill provides only for lh( Board. It is insullicient to provide for an em-ploynient stabilization board and to give the lPrcsident authority to submit sup-

leinental estimates as he nmav deem advisable for emergency appropriation; toe expended during such periods upon public works in order to prevent unemn-

ploynient if such public works are not all planned in advance and in the bhllepriltstage * * * there is certainly no just ification, ind the committee is unableto advance any sound argument, for its amendments striking out sections 10 and 11.

On the floorThe first time the enmlloynent stabilization bill was brought to the,

floor of the Ilouse Wvas in a speech by Congressnui Pirll (New York)on M\lay 22, 1930. In his speech Mlr. Pralasked for the early eport-ing of the bill and its coml) aion tnelsttres. E'vi(lentlv tie lu lesCommittee had been holding tie hills, and Mr. 1rall pointed out thatthe time for adjournnent was apl)roachilig.

Again, the bill was mentioned on time floor of the I louse on June 19,1930. Congressman l)enison (Illinois) stated tha, the bill had beenreported out of the committee, and hitd I(been placed on the calendarof the Ilouse. He suggested that tile bill be considered and recom-mended it. lie was supported in his plea by Congressmen Tucker(Virginia) and Rankin (Mississippi). July 1, 1930, Mr. Graham(Pennsylvania) asked that the rules be suspended and that timeemployment stabilizalion bill be brought to the floor under a rulethat no amendmnts could be inade to the bill. Debate was limitedto 40 minutes. In his opening reiarks, Mr. Grahtm spoke of theanientiments made in the bill by his committee:

Mr. Speaker, this bill as It came from the committee was amended beginningat section 10 down to and including line 4 on page 10. 'the deleted part is whatis called advance planning, and after careful consideration by the Committee onthe Judiciary those pages were stricken out as behig utterly unnecessary.

He spoke of tie two minority views filed on the majority report,but said that Mr. Celler and Mr. LaGuardia would support the bill.

HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931 11

The support of ite administration for the bill in its amended formwas proven by the exhibition of letters from the Secretary of Agri-culture and le Secrtry of the 'rreasurv.

In reply to Chairman (raham's remai'lks, three C'ongressmoen fromNew "ork Who had suIpported Selator Wagner's bill in its tinnmendedformii ritiized the aiMnldllets jilae I) the Julivtliry Committee,because they had t'mlnoved tile sul)stani from the bili tljti made it,ullworkalle.7

Plhe oll active opposition to tile prili(iples of tile Wagnei' hill caivefronl Mr. Blauton of Trexus. IHe objected to the aiouniit of the au-thorization. for pul)lic works, tlie limit 01 aniieildnlnents, and debate put,on the bill by telwlules (onnnittee and tihe labor sul)port received bythe bill.,

Many M'inbers were not, certaill that the bill would have any far-reclilg results il lt, e vlclploynitt p'oblei, but they Sti1)l)o:ted iti1s i gesture in the ri'ilt direction.,

Several Nf[ebiers floped that the bill wouhl be ret lurnile to a con-ference comliflitt'ee whir, it couhl be strvikfthevned by the rvt iirn of tieprovisions remnove(d l y the ,JudicialT Colniitte.n

\I'r ( 'o'Crlia (Missouri) brought 111 the point that al. apl)ropriationfor $150,000,00( for carryinlVg out le pulrl)oSeS of the bill should bemade at the sall ti) that tihe bill was passed. lIe was seconded inhis sutg.,ge'-tio. by Mr. 1'Corinllck of iassachusetlts, but nothing wasdone about plutling the mflotioll into elect and voting oil it.Ate'i Mr. I )eison (Illinois) and Ih. ('elher (New York hd madec('ial tudiltr speeches tihe rules were sulspemnd and the bill was passedby a two-thirds votv of the Nlvbr.;.('onference commit tee

After the evll)loylleiit stabilization bill lpasSed the louse it wassent over to the Senate. Upon the initiative of Senator Wagner theSenate disagreed with the antnnlilts to the bill which had beenadded by the louse, ald asked for a conference: Thie ('olf(,rt(esaj)pointed from the Senate were Senator II am IJohnson (California),Senator W. L. Jones (Washington), a1lld Svaator Josel)h E. Rals(ell(Loluisiana).

Mr. G1aham in the louse on the same (lily also asked that the billbe sent to confen ne. The (confei'evs al)l)oined from lie Iouse were:Congressmen Grahain (Pei Insylvania), )yer (MIlissouri)" and Suniers(Texas).

Senator Johllsoll was chosen (ha i i'm1an of the conference committee.The committee met several times, but could reach no agreement be-cause of the ule u rder which the committee fundtioned. Iiit h'haigesthat the members thought were required to be made ill the bill couldn)ot be made within the limits of the rule, so the coilmiittee suggested1o Senator Wagier that he write another bill which would ilncor-IlortLte the ('hianges desired by the committee and the administration,

Senator Wa gnter followed" the suggestion of the committee andrewrote his bill to fit the recommenlations made. lie restored theprincipal provisions of advilae p)lanlilg and the speeding up of public,works during periods of depression.

6 See note 4, spiwndix A,tQuotations from IA(ilardia, Cillen, and loylan. See note 6, appendix A.I Quotations front lanton. See note d, i tlndilx A.

* See note?, A lttii A.,01qeQ note , aljijendix A.

1i Dyer had earli r objected t) the bill being sent to conference.

12 HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931

The differences between the first stabilization bill and the now onewere:

(1) The list. of construction projects that could be built underthe emergency powers was increased by adding a provision thatany special projects authorized by Congress might be built.

(2) The sections of the first bill were omitted which dealt withthe preparation and publication of a monthly index of employ-ment by the Secretary of Labor, public roals l)rojects, publicbuildings, and the authorization for $150,000,000.

(3) The Employment Stabilization Board was directed to col-lect information on advance plans made by States, municipalities,and other l)ublic and )rivate agencies.

(4) The agencies or d(epartments concerned with constructionprojects were to make their l)lans 6 years in advance, revising andkeeping them up to date every year.

(5) The President, before recommending construction projectsto Congress, was to take into consideration the state of employ-ment and the general activity of business as well as the volumeof construction.

The biggest change made in the new bill was the enlargement of thesection on advance planning. This section in the first bill was quiteshort and made provision only for supplementing and using specificexisting e gislation on Fderal public works. In the second employ-ment stabilization bill there was less specific provision for the carryingout of the policy of advance planning by the Fe(leral Government,but wider authorization for more thorough advance planning. Tileemploasis in the first bill was on the inilnediate carrying out of theconstruction of public works for the alleviation of unemployment(luring a depression. The emplsis in the second bill was on morethorough advance planning.

Senator Wagner introduced his second employment stabilization) billin the Senate on January 19, 1931. Ile said of it:

The bill under consideration provides for the systematizint and advance plan-ning of public construction and creates a planning board for that purpose. It,passed the Senate once before in prartically the same form without a dissentingvote. The Ifomsem inade soee amendnients, U])on iIy motion, the Senate dis-agreed to the House amen(hnents, because t he amen ments really took tle heartout of the hill. Thereafter a conference committee %vas appointed and met andrestored practically all of the provisions which had been eliminated by the house,but sone additional amendments were proposed by the administration, to whichI agreed. The conference committee felt, however, that it wyas not, within theirpower to report the bill with these additional amendments. For that reason Iintroduced this bill in its amended form as an original proposal, and it is that. billfor which I am seeking now to secure favorable consideration of the Senate.

There was very brief disctisqion of the bill in the Senate and noobjection to the bill. It was quickly passed.

In a press release following the Senate action, Senator Wagner said:Now that the administration has at Iat withdrawn its obje,'tion to tie bill I ama

expecting no further delay in its final enactment, into law. It is almost 3 yearssince I first, made the proimosal b the' Senate that, )y proper timing, public workscan he used as a powerfuI device for the prevention of unen i)loymnent. There hasbeen inexcusable slrglshness In the consideration of this bill. Although It haslong enjoyed universal approval It was halted anld resisted at every step of itslegislative journey. hlad the bill been in operation even as late as a yoar ago wecould have done' much to alleviate the present depression by providing workrather than relief and the country would have beeir both happier and richer.

The bill now pamsed by the Senate restores all the principal provisions of myoriginal bill * * *.

HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931 13

The report of tie Ilouse Judiciary Committee was submitted onJanuary 27, 1931. It favorably recommended the passage of tilescol(l" employment stabilizat ion bill.

The bill was brought to the floor of the House on February 2, 1931.Mr. Graham (Welnsylvania) was recognized for an hour. lie openedhis speech with a history of the bill.

As the discussion dloell)ed, the main points that were brought outwere:

(1) The bill had not been) ient to th1e pro)er (ommittee--itshould have been sent to the Iabor ('onmittee.12

(2) The bill should have been passed soonernm(3) The bill was only a gesture, and would lnot provide a

solution for It nemilovenI .1(4) The (Government should not veln)et, with Ilrivut e industry

in the constru(t ion of public works. 5

(5) The depressed economic conditionss throughout the Nationdemanded some sort of action on the pa t of Congres.' 8

16

There was no opposition to tile bill." Mr. Giraham asked that thebill be voted upon. Two-thirds of the Members present voted forthe bill, and it, was passed.

The next day the Senate eoncurred in the minor amendmenis madeby the Ilouse'in the wording of the bill. On February 4, 1931, theSpeaker of the House signed the bill and the following (ily it wassigned by the Vice President.Presidmtbi action

On February 1(), 1931, President Hoover signed the seem(ld employ-meat stabilization bill and it )eeame law. Upon signing tile em-ploynment stabilization bill, tile President made the following state-ment:

The act gives wider authority and specific organization for the methods whichhave been pursued by the administration during the past 14 montlis in respect tothe playing and acceleration of Federal construction work for purpo!,es ofrelief to unemp)loytetnt in times of expressionn. It is not a cure for husilessdepression, but, will afford better organization for relief in future depression.

lie added that tie organization set ip by the act wouhl functionwithin the )epartment of Comerce under the Secretary.State action

Senator Wagner, in a press release issued on the same day, said:Similar legislation is a fundamental necessity ill every State and( municipal

government. The intelligent administration of ibis act a11d of similar acts in twseveral States will contribute mightily to the stabilization of business and thesteadiness of employment.

In order to encourage the States to follow the example of the FederalGovorm ent in the advance planning of public works, Senator Wagnerwrote to each State Governor expressing his conviction that similarlegislation should be passed by the States.

" see note 0, appendix A.is See note 10, appin'l(tIs A."see note It, apiwndlx A."see lOW 12, appentix A.16 See note 12, ppetlndix A."See note 13, appendix A.Those Meniters who deflntely advocated the passage of the 1ill on t e floor weme: (Mhal (l'enisyl-

vanta), JIastlnos (Oklahor). Connerv (M hs I 'i eltts), StItord (WtA snqlsi), ioeh (Kansaw-, I'sttersol(Alahanta), O'Connor (New York), O'Connor (Oklationa), and McKeoon (Oklahotna).

14 HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931

Some States observed Senator Wagner's recommendation; andanswers were received from the governors of 27 States. In eight.of these States, legislation for the advance )lanning of public workswas drafted and sent to conimittees and special commissions for study.

I.I ADMI N IS'rxTiox or FE:DI.t.i, IMPLOY.MN:T STrAIIZATro Avr

F deral Emplyment Stabdli alhion BoardThe Feteri *iIloynt Stabilizatiolt Board was composed of the

Secreta 'v of the T'reasu 'v, the Secretary of Collillcrce, the Secrettryof Agriculture, and the Secretary of Labor. On ,Jlvy 9, 1931, thePresident designated the Secretary of Comm'erce as airmanma.

The Board's full coJphJlenivit of personnel during its iirst year ofoperation consisted of 25 pl)eol'---a Director, assi:ttit, etlgilWe(is andecolinists, ind clerical and stenographic personnel. Its i itilbudget of $90,000 was to cover the last 4 months of fiscal year 1931and the eintire fiscal year 1932. For 1933, as a result of the (e,(,onlOllydrive, the congressional aj4 : opiattioii wats $75,000, a decrease of$15,000 from the amount originally allotted and $50,00) below Budgetapproval.The Board's activities

Although ni l announced purpose of thle bill wats 'for aiding il thepreventionl of unleniploylmnent (luring periods of btusinvss (!( sll(5i1,'by tile time thme bill wla passed ini 19:31, the country was alre-ady deepin depression anid a large volume of ulneli ploynment already existed.Consequently, the activities of the Federal Employment StabilizationBoard proved to be alleviative rather than preventive.

One of the prillary purposes of the advanced planning advocatedby the Board was to gain knowledge of what useful constructioncouhl be undertaken in tines of unemlIployInelit and to be in a positionto release these projects as an emergency relief measure. There is noevidence that the Board was fin|danmeltully intterestetd in utilizingpublic works planning ats a method of preventing periods of depressionand unemployment. T he Director of the Board stated in a letterdated MarcI' , 1B32, to the Honorable It. P. Laniont, Secretary ofCommerce, that Ie-* * * would like to call attention to the unfortunate inclusion of the word"Emiployment" as a part of the name of the Board. It has already provel-Inis-leading as to the actual functions of the Board. While it is undeniably true thatemployment will have a direct, benefit from the Board's work, the general accept-ance of the word "employment" has a determined tendency to result in the erron-eous interpretation of the major purposes of the Board.Successors to the Federal Jmployrnent Stabilization Board

The functions of the Stabilization Board were later distribiuted inaccordance with a series of Executive orders among three agen(cies--the Employment Stabilization Office in the apartmentt of Commerce,the Public Works Administration, and the National Resolirces Plan-ning Board.

On Joily 10 1933, President Roosevelt abolished the Federal Em-ploymenteStabilization Board by I, xecilti'-e order, and )rovided thatits, records be transferred to the Federal 14, Elergeacy Admninistrationof Public Works "if and when said administration is authorized and

I' Report from tho Director to the Chairman of the licard, July 1, I393.

,%a ~"

HISTORY OF EMLOYMIENT STABILIZATION ACT OF 1931 1,)

establisled." Exeitiolt of this orAer WIs lter )ostj)olied, however,and il accordance. with an order of Juie 10 the Director of tie Stabili-zationi Board mils iulimid to exercise Ieniporarily til Office of FederalEmeiencv Administrator of Public Works. As it result of this ap-politiutnt , tile experieiiev of the Board wit, iimiiidilitely utilized andits ,inergeriry plttiming pograiis u1(l pirt of its lirisoitel C(onstitutedthe hasie (tgiillizatiol of the FC(ral lProjects 1 tit of the PublicI% orks Administration,

Ail Exveutive order of Mtrih i1, 1934, ordered the abolition of theBoa rd iul provided ill its plhce for iihe estaIdishmen of a FederalEllyhom eiit Stabilizatio Office il the I)epartilmen t of Commerce.Another Extewlitve order of 11v same date directed that I he PleY ioiisor hr of,hju, 10 (see abo e) shouhl 6e furt her tihefeired 1 until such timeas lie Boird's fuijiliolis might be Irai flerrelI to the I)epiItilieut of( Coillie'e.

The Federal Employnit Stabilization Office became inactive,however, on June 30, 1945, and on July 1, 1939, the functions of tlhe(flice were Iransferred to the Natioml'Resources Plniing Board byReorganization Plan No. 1, issued inder the Reorganization Act of1939.

As early as 1935, however, many of the functioiis of the FederalltnlJloyimnent St abiliza tion l Oice hid been assumed by the NationalResollrces Board and the Natiomil Resources Committee, the pred-ecesor agencies of the National Resources Planning Board. Inaddition, certain of the activities of the Stabilization Office wereassigned to t lie Projects )ivision of the Public Works Administration,among which were the preparation of the various illhlxes relating toconstruction materials. The National Resources Board, at the re-(Iuiest of the President, initiated a study on public works early in 1935,and also prepared an inventory of pi;blie works projects by Statesand regions. The Board also organized a work relief program ofliningg projects and indertook several new studies in public worksplanninig.19

Tile Board also prepared a 0-year program of public works whichrevised the procedures developed by the lFederal Public StabilizationBoard and resulted in a report transmitted to the President oil .Jaiitiary5, 1937.

On July 1, 1939, the National Resources Committee was reorganizedas the National Resources Planning Board. New responsibilitieswere placed on the Board by transfer to it of all of the functions of theFederal Employment Stiabilization Board. As indicated above,trend reporting was required under the Employment StabilizationAct, to inform the President of business trends an(d the danger of thealiproach of depression. The formal submission of these materialswas sometimes amplified by a brief summary of the most importantdevelopments with recommendation for immediate action. Tile Na-tional Resources Planning Board also maintained the interest inpublic works planning which had been exhibited by its precedessoragencies and prepared reports related to this subject.

Is 8oo appendix 1).

APPENDIX A. NOTES ON TEXT

Note 1.-- Radio speech for Committee otl Civic Eductlion, by Sen.ator Robert F. \Vtgitr (speaking ol) the bitsis of all art ilel written in1928).

Il that article, writ ten at a tine whetn there was little evidence of interest onthe part of the Ameriean pimlle ill the tsubject of inivohinitary idlties, I proposedthe immediate inaigitrati o of six policies. 'ihe.e were: First, establimhnenlt ofa hi.lier wa.e level to enlarge the litruha-ing power of the wapo-paai- lolouha-tim And thereby to sthilat t ,n-im1)plitni. Secotmtl, installation of a .herterworkweevk ill order to al)sorl) the sirpi is of ten reeta ,d from employ ment ithrmithnemw machintVry a ted improved hlvthot l4I., Third, creation of watie reserves or ill)-elliplovitllell iinsitriie sYsttinI si a t) di 4tiii te (tho risk of ittomployllnett andre('(le its liardslhips. Fotirtlh, ortanization of a Nation-wide systtil of coordi-Itated emph 'ittietit offices so , to facilitate for tle eIl)l ( ,)Vr aMil the etilltveethe ta,-k of bringitig to,,rtbr the ri, hlt man and the most filing job. Fifth, thecollection anz l pttbleoat lmu of ittfolrnattitil atl stalisti's of eiiiplhymtllvttt atd itnetit-phoyenit, of waes 1and prieves so that h'th hh siotvnesstitvh ati (he St ate ;lt Federal(overnlllnnnts ll might giltid their ilii.s by refetieteto Ihe actual facts. Sixth,t ht ist' of l)nbiv chtist rmtct iOt l)% Ili-t Ftdrral anii local gv(rnmontus a., i sttilizerof 1)Iivate v(llplOtllent b Itvl~lin, Siiei (onsitst(1 ion ill advance md (.theent rat-ing it in tinvzs ot depression.

A",t 2.--- Andr'. wAntis, of tit, American AssociatiClt for LaborLegislation, sttbttiantiltt Seltttort I\tgiter's assertion thlt if adil)iarepiamitimg w, vre adopted by the Fiedelttl Governent l as a policy, thestittes and loval govt'ltrllneits would follow:

So far as the Federal Government is concerned, the need of long-range plait-ning still awaits recognition by congress . A few of tie States have made alittle progress. The first, Pentsylvarnia, in 1917, created an emnergency publicworks commission with a small fuind, but unfortunately by a reeodification ofthe law a litho later it was dropped out. In 1921 the depression eatised Cali-fornia to adopt similar legislationt and set 01) a State commission for the purposeof e tcouraging the State( departnaents to come forward more readily with work,btt it was ott a very inadequate Iasis. In 1923 Wisconsin adopted legislationof similar character ad iin 1929 Utah also provided the beginning of long-rangeplanning of puhbliz works. It is interesting that the Legislature of Utah in start-ing out, locally, to (10 whlt it couhl itt Ihat State, also adopted a resoltit ion invitingCongress to cooperate with the State, and encourage the State to go forwardwith i thte State prgftamit. But the Federal Government has failed to adopt apermatient policy.

Note S.-Metiuers of the Committee: L. C. Dyer, Missouri; C. A.Chlistoplherson, South Dakota; Rie. Yates, Illinois; A. J. Ilickey,Indiata: J. B. Ktutz, Petis~lvania; C. E. Moore, Ohio; 0. R. Stobbs,Massaellusetts; F. H. LaGuardia, New York; 1H. W. Hall, Illinois;C. G. Buchmann, West 7irginia; C. I. Sparks, Kansas; C. A. Jonts,North Carolina; C. E. Swanson, Iowa; A. J. Montague, Virginia;F. H. Dominick, South Carolina; 1H. St. G. Tucker, Virginia; W. C.Hammer, North Carolina; T. D. McKeown, Oklahoma; GordonBrowning, Tennessee.

Note 4.-The Secretary of the Treasury wrote:To carry out advanced planning for buildings to aly large extent at the proent

time, it a(ldition to tiat, now conteplated, is not feasible with our presentresources. There is, of course, the further question, whetlter plans for buildingsmade considerably in advance of conten)platedl co'strimetio i will be wholly stit-able for the requirements when constrution is eventually undertaken.

ISenator Robert F. Wagner, Sound Policy To, Break the Breadila, the Independent, April 14, 1928.

16

HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931 17

The Secretary of Agriculture wrote:This department is inclined to the belief Illat such work must be carried ol

through existig agencies and organization ir if it is to be ecoiorimlcally or etiicienrtly(One. Alu energeticy organization to expelid itoney for public works is nearlyalways wasteful; therefore, anything that is done to avoid waste inust be carefully%plarnied. * * *

Note 5.- ]ele)isenttit ive LaGuardia'The criticism directed at this bill is particularly the elimination of sections 10

and 11. and all that. sections 10 and 11 do Is to permit tie departments to plan inadvance. You provide here for a tabilizaltion board, but wihat use is it to havesuch a hoard if at the time of imeniplovment the emergency is declared and youhave riot the work ready to he performed?

Repiesvitative Cullhi, of New York:The bill before us, s . 30,9 employmentt stlabilization bill), is under considera-

tion, Iut the heart is cut eitirelv out of the bill, thoroighly eirasculated, bysirikijig out, all of the sections providi g for adlvaneed phrlaing, hriildin, andconstrulion of all kinds, am leaves us nothing )t a hollow shell, practicallynotlhing but the enacting clause.

R~epresenttiat ive Boyl n of New York:Before- us today we have a skeheton bill, Speakinig anatoniically, we might

sa.y th,'d, we took tire body, cut tile head and lail off of it, and then tried to putti(, heed and tail together as an entire horly. * * * Yoi have cut off alladvance 1ilairint".

Note 6.--Cong'ressim Bhnton:Mr. Speaker, this hill authorizes tIe stripeidouis sum of $150,000,000 to be

appropriated as a soltition of the iemplorent problem. It is called up in theclosing ronurs of ('omiress under a suspension of rules, with only 20 minutesd(tebute to tile side, and under regulations such that linot. one of the 485' Menibersof the House may propose ainy otnirdrment, to it whatever. We cannot elhanme Itiin any prrticrnlar, even if every Member of tie louse' carrrestly desired to amendit. Those few of us rwho are against this bill have no time whatever to opposeit. * * * This is not the way to pass legislation. This is not tire way tovote out of the Public Treasury $150.000,000 of tire people's inoirey. This is iotthe way to hell) the people, for we mist call or? them to furnish this $150,000.000that \\e are thuis authorizina to be appropriated and spent. * * * I realizehint by opposing this hill I an incurring tihe reinewed hostility of certain leaders oforganized labor, for they are sponsoring t Iis hill. I am one of those who hasnever obeyed t heir orders.

Note 7.-Congressman Crosser of Ohio said:S. 3059 (tire employnet stabilization bill) will temporarily furnish some em-

ployment. As I have already said, these bills should be enacted into law. Thepassage of these iieas(tires, however, while of some value, a already explained,would riot furnish alry general or permanent cure for the great evil--unemptoy-inent.

Congressman Cullen of New York said:I am going to vote for the bill, accepting it, as a half loaf Is better than no

bread at all * * *.Congressman O'Connor of New York said:As the bill will he called rl, nrder the suspension of the rules of tire house,

and a motion made to pass it with these aniendientq, there will be no parlia-mentary method I), whicr these eliminations may he restored or other emend-merts offered. We' are forced to take or leave the bill as the committee offers It,Tihe emergency warrints our accepting the best we can get, even though It fallsfar short of a complete solution of tire problem.

Congressman Denison of Illinois said:I am very glad of the opportunity to vote for this bill, because I think It will

do some good.

18 HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931

Congressman Tucker of Virginia said:But this bill has in it, if not more than "five loaves and two fishes," without

the Master's power, at least somelhing to relieve the needs of some of tie unem-ployed.

Note 8.-Mr. Cullen of New York first expressed this thought whenhe said:

I sincerely hope tlat when this bill goes to conference-- -and I hope it does goto conference--the conferees will restore the hill to its original forn and make it ofsome meaning, give to it the power it would have, and instead of taking tile teethout of it, restore the teeth aitd let us have the bill as it passed the Senate.

Mr. O'Connor of Oklahoma said:In my opinion this bill will be much inore effective if the Senate conferees will

insist on retaining in said hill section 10 and if the conferees of the 1 louse willrecede from the House aniendnient striking out that section.

Mr. Boylan of New York said:Our only opportunity to help the uneniiloyed is to pass this bill and then let

it go to conference as mny distinguished college from New York said.Note 9.-Congeressinen ilastings and Connery questioned Mr.

Graham as to why the bill had beel sent to the Jutdiciary Committeerather than the Labor Committee, whih they thought, would havobeen the more al)l)ropriate committee. This question of which com-mittee should have received the stabilization bill was debated at severalpoints in the discussion. Mr. Connery also stated that the firstWagner bill had died in conference.

Note 10.-The chief regret, of everyone should be that when it (the Wagner bill) was first

introduced in the Congress sonic years ago, if proper attention had been paid toit and it had been passed then, it iught in some way have helped to alleviate tileunemployment situation in which we have found'ourselves since late in 1929.* * * In the meantime, because of the lack of this system of planning inadvance to meet emergencies before they happen * * * we have been coi-pelled to pass haphazardly several pieces of legislation providing for constructiverelief without any well-planied system to meet the future emergency.

Note 11.-Representative Patterson of Alabama said of it:Of course I do not intend to oppose this bill. I think it is a harmless piece of

legislation, and may even have sonic good in it. But I believe the l)roblem whichthis country Taces Is deeper than can be remedied by a few appropriations of theFederal Government to carry on work.

Representative LaGuardia said of it:This bill Is just a gesture. It will provide what wewant to do and what we

say we are trying to do. It is a means of relieving depression by providingemployment on public works, and it provides a means for advancing the planningthat i. necessary. But, of course, that Is not the solution of the big problemwhich is confronting the country.

Note 12.-IMr. O'Connor said:The people back home, as soon as the site is selected and everything is ready

to shoot, will be here hollering their heads off to get the building started rightaway, and you can never get your reservoir stored with work if you are drainingit all the time. The holding back projects is necessary if advanced planning Isto be effective. Also, the Government should not compete with private employersof labor when labor Is profitably employed but be ready to step in when employ-ment slackens.

Note 1.-Mr. Box of Texas said:The country has in some 20 or more of its States conditions bordering on

famine. Indeed, practically every industrial section, all the cities, and in manysmaller towns and communities all the States have much the same conditions.

HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931 19

Mr. Connery of Massfishusetts said:Now, we have a new bill introduced by tile Senate. It, comes over to the

Ilodsc, goes to the Judiciary Committee, and because of the present conditionof unemployment the committee finally wakes up to the fact that they mustpass some legislation.

APPENDIX 1). TEXT OF THE FEDERAL EMPLOYMENT STABILIZATIONACT OF 1931

CHAr. 117.-An Act To pirovid for thi, advt ,e planing annd rv htlh ,d coo'ruttilon of puubliv works, forI lit stowlliztitioll of hnduostry, and for aiding in1 the prevention of ont ltoymlent during iwriods of hsinviest, Jtreii~iit

le it enacted by the Seniate and House of Rcprcscidatit'cs of the n(iled States ofAmerica in Congress, flsitmblcd, That this Act may be cited as the il'1nployientStabilization Act of 1931."

Dt*'IN ITIONS

Sc. 2. When used in this Act--(a) The term l "board" means the Federal Employment Stabilization Board

estal)lishld by section 3 of this Act:(b) The term united d States,'" when used in a geographical sense, includes the

several States and Territories and the District of Columbia;(c) The term "public works emergency appropriation" means an appropriate in

made in pursuance of supplemental estimates transmitted to the Congress underthe irovisiuns of this Act.

(d) The term "construction agencies" shall mean the following departments,bfureaits, and independent agencies and such ot hers as the Prsident may designatefrom time to time:

Of the departmentt of Agriculture, the Bureau of Public Roads, the Bureauof Plant Industry, the Forest Service, the Bureau of )airy Industry, and theBureau of Animal Inidustrv* Of the departmentt of'e'ominerce, the Aeronautics Branch, the Coast, and

G(;odetic Survey, tlie Bureau of Fisheries, and the Bureau of Lighthouses;Of the 1)epartment of Interior, the Bureau of Indian Affairs, the Bureau of

Reclamation, and the National Park Service;Of the Department of the Treasury, the Coast Guard, the Public Health

Service, and the Office of the Supervising Architect;Of the departmentt of War, the office of the Quartermaster General, and the

office of the Chief of Engineers;Of the )epartment of Justice, the Bureau of Prisons;Of the Department of the Navy, the Bureau of Yards and Docks;The departmentt of Labor;The Post Office Deparlmient;Of tile independent agencies, the Veterans' Administration, the office of Public

Buildings and Public Parks of the National Capital, the District. of Columbia,the Architect of the Capitol, and the Panama Canal,

(e) The term "construction" shall include also repairs and alterations, ad thepurchase of such materials, supplies, and equipment as may be necessary as apart of, or incident to, such construction, repairs, or alterations,

(f) The term "authorized construction" shall include those projects whichhave been specifically authorized by Congtess, and those projects which do notrequire specific legislative authorization, such as repairs and alterations.

FEDERAL EMPL.OYIENT STABIRIZATION BOARD

SEc. 3. (a) There is hereby established a board to be known as the FederalEmployment Stabilization Board, and to be composed of the Secretary of theTreasury, the Secretary of Commerce the Secretary of Agriculture and the Secre-tary of Labor. It shall be the duty of the board to advise the President from timeto time of the trend of employment and business activity and of the existence orapproach of periods of business depression and unemployment in the United Statesor In any substantial portion thereof; to cooperate with the construction agenciesin formdating methods of advance planning; to make progress reports; and toperform the other functions assigned to it by this Act.

(b) The board is authorized to appoint, in accordance with the civil-service laws,a director and such experts, and clerical and other assistants, and to make such

20 HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931

expenditures (including expenditures for personal services and rent at the seat ofGovernment and elsewhere, for law bo1k, books of reference, and periodicals)as inay be necessary for the administration of this Act, and as May be providedfor by the congresss front time to time. The compensation of the director andsuch experts and clerical and other assistants shall be fixed in accordance with theclassification Act of 1923, as amended. The director and his staff may be doini-ciled in and attached to one of the executive departments, There is herebyauthorized to be appropriated annually such sum as may be necessary for theexpenses of the board.

& BASIS OF ACTION OF BOARD

Sfc. 4. (a) In advising the President the board shall take into considerationthe volume, based upon value, of contracts awarded for construction work in theUnited States, or in any substantial portion thereof, (luring any three-monthperiod in comparison with the corresponding three-month period of three previouscalendar years. %

(b) The board may also take into consideration the index or employment pro-pared by the department of Labor, and ally other information concerning eniloy-ment furnished the )epartment of Labor or by any other public or private agency,and any other facts which it may consider pertinent.

PUBLIC WOIKS EMEIltN('Y APPROP'RIATION

Sxc. 5. Whenever, upon reeommnellat ion of the hoard, the president fins thatthere exists, or that within tie six months next following there is likely to exist,in the United St-ates or any substantial portion thereof, a period of businessdel)ression and unomnploymmnt, he is requested to transmit to the Congress bysleial message, at such time and from time to time threafter, such supplementalestimates as ho deenIs advisable for emergency a)propriations, to be expendedduring such period upon authorized construction ill order to aid in preventingulleml)lovtlelt and pernft the Government to avail itself of tile opportunity forspeedy, efficient, and economical construction during amy such period. Exceptas provided in this Act, such supplemental estimates shall conform to tht, pro-vistons of t be'Biudget and Account ing Act, 192 1.

WORKS ON WHICH APPROPRIATION USED

S c. 6. Such emergency appropriations are authorized and shall be expendedonly-(a) For carrying out the l)rovisions of the Federal Highway Act, as now or

hereafter amended and sup)lIemented;(b) For the preservation and maintenance of existing riv,,r and harbor works,

and for tie prosecution (If such l)roj(,cls' heretofore and hereafter authorized asmay be most dsirable in tie interest of commerce and navigation;

(c) For prosecuting flood-control projects heretofore or hereafter authorized;.and

(d) For carrying into effect tile )rovisions of the Public Buildings Act, approved -

May 25, 1920, as now or hereafter amended and supplenmted, in respect topullic buildings within and without the District of Columbia.,

(e) For prosecuting such other construction as may now or hereafter be author-ized by the Congress, and which is or may be included in the six-year advanceplans, as hereinafter )rovided.

ACCELERATION OF EM R ENCY COSTRUCTION

She, 7. For the purpose of aiding in the prevention of unemployment duringperiods of business depression and of permitting the Government to avail Itselfof opportunity for speedy, efficient, and economical construction during suchperiods the President may direct the construction agencies to accelerate duringgsuch periods, to such extent as Is deemed practicable, tile prosecution of allauthorized construction within their control.

ADVANCE PLANNINGS e. 8. (a) It Is hereby declared to be the policy of Congress to arra)ge the

construction of public works so far as practicable in sucli manner as will assistin the stabilization of industry and employment through the proper timing ofsuch construction, and that to further this object there shall be advance planning,

HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931 21

including preparation of detailed construction plans, of public works by the con-struction agencies and the board.

(b) Each head of a department or independent establishment having jurisdi.tion over one or more construction agencies shall direct each such constructionagency to prepare a six-year advance plan with estimates showing projects allottedto each year. Such estimates shall show separately the estimated cost of land,the estimated cost of new construction, an(d the estimated annual cost of operationand of repairs ad alterations.

(c) Each construction agency shall also prepare a program for prompt coin-nieentent and carrying out of an expanded program at tany time. Th is pro-

gram shall include organization plans. It shall also include" the plans for theacquisition of sites and the preparation of advance detailed construction plansfor not less than one year in advance, except where in the judgment of the Ihoardthis would not he l)rad't icahle.

(d) Such programs, plans, and t.stimnates for the six-year period shall he m.ib.mitted to the board and to the I)irector of the Btreau of the Bltdget. TheDirector of the Bureau of the Budget shall report to the lPresilent from ti ine totime consolidated plans and estimates.

(e) Each constrution agency shall keep its six-year plan up-to-date by anannual revision of the plans and estimat s for the unexpired years and by aimiallyextending the plan and est imnates for an additional year.

(f) The 11re.,idemt is requested each year, before reconmetding tihie amountof construction appropriations for the next fiscal year to take into considerationthe volume of construction in the United States, the state of emlloyment, and theactivity of general business.

(g) 'he board shall collect information concerning advance construction plaisand estimates by States, inmunicipalities, and other public and private agencieswhich may indicate the probable volume of coistruction within the United Statesor which may aid the construction agencies in formulating their advance plaus.

Approved, February 10, 1931.

APPENDIX C.-TEXT OF S. 380, THE FULL EMPLOYMENT BILL OF1945

l8. WS, Milt Cong., Ist sess.]

A BILL To establish a national policy ai program for assuring eontitnuing full employmlt i a freecompetitive economy, through the concerted efforts of Industty, agriculture, labor, State and local gov-erminents, and the Federal governmentt

Be it enacted by the Senate and House of RIprescntatives of the V'stitcd S'tates ofAmerica in Congress assembled,

SEcTION 1. 'This Act may be cited as the "Futll Employment Act of 1945".

DECLARATION OF POLICY

Six. 2. The congress s hereby declares that--(a) It is the policy of the Vnited States to foster free competitive enterprise

and the investment of private capital in trade and commerce and in the develop-ment of tie natural resources of the United States;

(b) All Americans able to work and seeking work have tile right. to useful,retimerative, regular, and full-time cmplovment and it is the policy of theI united States to assure tile existettce at all tintes of sufficient emplotnelt oppor-tunities to enable all Americans who have finished their schooling and who donot have full-time housekeeping res ponsibilities freely to exercise this right;

(c) In order to carry out the policies set forth in subsections (a) and (b) ofthis section, and in orier to (1) promote the general welfare of the Nation; (2)foster and protect tile American home and the American family as the foundationof the American way of life; (3) raise the standard of living of the Americanpeople; (4) provide a.dequate employment opportunities for returning veterans;(5) contribute to the full utilization'of our national resources; (0) develop tradeand commerce among the several States and with foreign nations; (7) preserveand strengthen competitive private enterprise, particularly small business enter-prise; (8) strengthen the national defense and security; anld (9) contribute to thestablishment and maintenance of lasting peace among nations, it is essentialthat continuing full employment be maintained in tile United States;

(d) In order to assist industry, agriculture, labor, and State and local govern.ments lit achieving continuing full employment, it is the responsibility of theFederal Government to pursue such consistent and openly arrived at economic

22 HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931

policies and programs as will stimulate and encourage tie highest feasible levelsof enij)loynient o)portilitles through private and other non-Federal investmentand expenditure; A". .

() To the extent that contI1ing full employment cannot ot herw ise he achieved,it Is the further respotsibllitv of the Federal government to provide such volmneof Federal Investment and expendit tire tas may be needed to assure contttuhligfiullemployment; and

(f) iuch "investment and expenditure by the Federal Government shall I)edesigned to contribute to the national wealth and well-being, and to stimulatincreased employment opportimities by pr ivate enterprise.

TlHE NATIONAL I'IPODUCTION AND EMPLOYAMNT IIU DGUT

SmE. 3. (a) 'The President shall transmit to Congress at the hegnimiing of vuehregular session the National Production and Enploymnent Budget. (hereinafterreferred to as the "National Budget"), \ which shall set forth in smunmary anddetail, for the ensuing fiscal year or such longer period as tit, I'resident nimiy'deinappropriatc-

(1) the estimated size of the labor force, Including the self-enmployed in industryand agriculture;

(2) tile estimated aggregate volume of investment and exp enditure by privateenterprises, consumers, State and local government-4, and t he Federal Government,required to produce such vclumne of tie gross national product, at the expectedlevel of prices, as will be necessary to provide employment opportunities for suchlabor force (such dollar volume heing hereinafter referred to as the "full employ-ment volume of productIon"); and

(3) the estimated aggregate volume of prospective Investment and expenditureby private enterprises, consumers, State and local governments, and the Federaldovernmnent (not taking into account any increased or decreed investment, orexpenditure which might be expected to result from the programs set forth in suchBudget).The estimates and information herein called for shall take account of such foreignInvestments and expenditure for exports and imports as affect the volume of thegross national product.

(b) The extent, if any, by which the estimated aggregate volume of prosliectiveitvestnment and expenditure for any fiscal year or other period, as set forth in theNational Budget in accordance with paragraph (a) (3) of this section, is less thanthe estimated agregate volume of investment and expenditure required to assurea full employment volume of production, as set forth in the National Budget inaccordance with paragraph (a) (2) of this section, shall for the purposes of thistitle be regarded as a prospective deficiency in the National Budget. When thereIs a prospective deficiency In tile Nationial Budget for any fiscal year or otherperiod, the President shall set forth in such Budget a general program for en-couraging such Increased non-Federal investment and expenditure, particularlyinvestment and expenditure which will promote increased employment opl)or-tunities by private enterprise, as will prevent such deficiency to the greatestpossible extent. The President shall also include in such Budget such recom-mfendations for legislation relating to such program as lie may deem necessary ordesirable. Such program mn1y include but jieed not be limited to, current, andprojected Federal police, es and activities with reference to banking anti currency,monopoly and competition, wages and working conditions, foreign trade alidinvestment, agriculture, taxation, social security, the development of naturalresources, and such other matters as may directly or indirectly affect the level ofnon-Federal investment and expenditure.

(c) To the extent if any, that such increased non-Federal investment andexpenditure as may be expected to result from actions taken uiler the programset forth in accordance with subsection (b) of t0is section are detmed Iistificientto provide a full employment volume of production, the President shall transmit ageneral program for such Federal inv('stnieot aild expenditure as will be sufficientto bring the aggregate volume of investment and expenditure by private business,consumers, State and local government, and the Federal Governmeit, up to thelevel required to assure a full employment volume of production. Such programshall be designed to contribute to the national wealth and well-being, and tostimulate additional non-Fiederal investment and expenditure. Any of suchprograms calling for the eonstruetlon oi' public works by the Federal Govermient0all provide for tthe performance of the necessary construction work by privateconcerns under contracts awarded in accordance with applicable laws, except

HIST'O'RY OP EMPLOYMENT STABILIZATION ACT OF 1031 23

wlere the(' prforlallCo of such work by some otl'er ineti,od is neces.-ary by reasonof special (iriIiustai ies or is authorized by other provisions of law.

(d) If the eslimatotd aggregate volume of prospectiv( Investment and expe1di,ture for any tisal y(,ar or other period, as set forth in tl:e National Budget hia'ciordmlice with luiragraph (a) (3) of this action, is moro thal the (5tliiatedaggregate vohluut of i1nvestnwit a1(d epeiiditur, re(p(iired to assure a full e'inl)loy-tiet voime of lirodiction, a. set forth Iin ti, National Budget il accordaille wihparagraph (a) (2) of tlis set lol, t e President stall set forth hit suich Budget ageneral program for prevent i g Iinl alitary t,'oiolomic dlisloatlons, or diminisihingito aggregate ,0,1. of ilnvestilnvlt and ixpitr.lttre to tie level ri(liiFd to

assure a full eniployne!)t volume oif l)rodietiti, or bol .(0+ The )rugliis rferred to in subtsections (1), (e), and (d) of this section

Shall il ite I' ulh Ienvtllres 11' 4illV hit ce,.iii'y t) iissiiro l b it opoli.st Iprocl ices with respect to price, produti (1, or dist I ilt iol, or t her nmoi op)ulIs ticpractice,,, will not interfert M i lit aheveineint of tle piirpcsts of this Act.

(f) 'I'lh( Natinal Buidgel Siall i ilhltle a report ott tile dktrilhi lon of tie no-tiollal illcoile ditiig tilt preceding tisial yer'. or Such loiger poioritc ta the Presi-det liay ditemn appi' oprialt, toitet lr witi till \'vihatioI of tle effect, Ii111 tle(listrilo lticn of the ll1111atio1ll 0l tie of lit' progr l'ns s.At foril ill Stich ludget.

(g) Tile Pre ident, Ini1, It, I ine toi t il t151ni t 0 ('itigre stlch Stilplr,-11t l or tt rvv\is,+d testhlnttvs., htforlntihitl, 1]iPogrimi'+, ort lt-gislaivo, r~colitll a.t

lions its l, Illty di(,ti i "t',+sair orh'sira )le in conliciin wiih lie Nationalhldget,l,.

ltli',tAtION OF NATIONAL IIUDLtl'I'

SI.'.I. (a) 'l'lle Natioiial Budlige't sh lle prtlared ill tlie '>x,,culiv, Office oflit' l'rsidi-it letr tiiie go'Irnl dirt in ll p-l-rvisioll of lte Prsiuellt, nlld

ill cll'utat ittit m ilh ilt lll111hvr. oif Ilit ('Uhiitelaid (t her liit, of departrinveitsi1id istI 11 iiih mn lls.

(h) 'he Pi '1ih t shall I111111i1 to till, i'severll dall( li't tn11s and etWll ishln lts.iih llr('itim tii. iY - t lltnIte 11l(1 e oiheir i1foiaton 111t, %%1 ill ilmhh, Iiti t t l prepare

i,Ich phli, ilt 0 ll r nl, I'O 313 3 ' ll h l ' ered (hlti'ltg lhi' Itl.lliiig oi' -lb)>e(jlit'It,liral , vtis to hIlp atvhiot v' a full t lthviyn',t i 1h3llnt' of lrodlitiot.

(C) Tit' l'ridelif lum\ (stlalish mlc'h tdvisoiry boad'ds or cotmlnittvs complostdof rlrv,-vltativi: of ilmt irv, vpgH'itor,, lator, and Stale and locll governi-tmetl Isi., 3ll lrs, lis he, voy h'eli atd\tlilahh for liet piupose of advi-iig Ialdctll1itililtg oi1 letll'd1s of ilchi,'vitig th( ohjli'tcs of this Act.

,l iil iN'r v'' :i: i ' N,\TIO'i." I)D(iO'r

Si',t. 5. (it) lhr'' is lroy lali,-htld a Joint ('onit itc oi Ihe NationalBllngtol. to he tomi.posed of Ow hi' mii'ii mid ranking liltinrity litnlhers of thetlate ( '-1Itille. oilt Appi1'priat i uls, lBnmiking ald ('iirrency, Edhitatiot alld

ILabohr, an)ti ldilitinte,, and sevel athlit iiul Meliht'rs of li, Siltl, to 6t lippointedby Ilit I rv.hidnt of th, Svittte: andtIi I'aiinlli! tnd m'ilmkinig tlinorit v inter.if Ill' I l1 ('olilnittees on Apl)l'(i ripiltions, l'hitkimig and1i ('ilti'lev, 1Labor, andiilWAv'\s ild Nivtlls i anl st,\'iin I ddit ial \e Alhllher, of ili, l loust' of lepre ,t ltaliveso Ith appoiitd by ttI,' Speier t f t lilions' (if heprsntit livs, 'I'i, parlv

repr,.selt'ation (if the ,Joint ('nto11itiee sallodl re'ii'lthrl rthlati, mvteiltlrllship ofthi' Ili orll tv ittid ml r hi , vit11,i lb' tll d, n oll huse, of iRt'op't- ttivt'5.

(t) it s'all ie the fintiioll if tI, ,Joinlt ('olniitte('--I1) to maitke itt tidy' of Ow tlienaitl iget lrallsillittei to ('ongr,,s by tile

]l'rithsiit ill aclcrdmlite .% il i set ion 3 of this Act: and(2) ti re'lp(r't to 1t1e Sellt il t|he l llse tif llepreill at ives, pilot late' thall

March I if at'lh veir', its inditis an1( reeommli1('nitatlimw ith rit, petl' to lieNational Butigt, l ogt lher ibl a joilt rholition et lli ig forth for the el iligfiscal' year ia geteiral police with rspect to s uci N ttiil Bildget to serve a agiild, io the sei l colilitlltvets of ( oigress (loliuig Ill i legislation i'elatilig toKI1(lii National Budgel,

Wc) Vact',icies ili lie it(nith,,rship of the Joiit Coniillttee s hall 1lt affect ti1e)oiu er of tile rezlliiiing iitenil;i',, to t t~X il, (he foiiltlbits i f t In l('(.3311 i tt , flld

shall Ite filled ink t il, snlli ilier as li tile case of the oiighiial sve!ctio l. 'l11Colinnit tee shall elet it chliriil nd it0 vi ice chairman from aiiintg it liin1ir;s,

(d) The ,ohiiil ('omitittee, or any dilly aituthorized slcomtmtilt tirot'f, Isauthorized to sit 01i( act at Suc(1h place 'aid times, to required by sihpcViiui orotherwise tle atteidance of Slich witiie,., a tli he prodhletio)in of Such hools,plaplers, a31nd douitmits, to adliistir such oatlis, to take such telistoiy, to,

24 HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1931

procure such printing and binding, arid to make such expendit tires as it deemsadvisable. lhe cost of stenographic services to report such hearings shall not hein excess of 25 cents per hundred mords. The provisions of sections 102 to 104,inclusive, of the Revised Statutes shall apply In case of ally failure of any m it'nessto comply with aniy subpena, or to testify \wher sllnillllol, under authority ofthis sect ion.

(e) The Joint committee e is mlJnlwered to appoint and fix the compensation ofsuch experts, cnsultants, technicians, atid clerical and stenographic assistallce asit deems necessary and advisable, bilt the Colll)eltsait l)l So fixed shall not exceedthe colujpensat ion prescribed under the Classitication Act of 1923, as anended, forcomparable diles. 'l'(, comniittee ma1 y utilize sueh volitary ami icon; lt-sated serv ices am it deceins necessary amol 6 authorized to uliize tie servICes,Information, facilities, and personnel of the deplallnentis and v.,altisImIents.

(f) The expenses of the Joint Committee shall he paid onie-half froml the coil-tilngelit fund of the Senate and one-half froliml tle Contiitl ,nt flitl of the Hounse oflepresenitatives ulpon voucher,, signed by ilie (lulitian or vite chairman.

HiATE OFt EXI'LN I)iITRES

Sr:c. 6. (a) The lPreidelt shall review quarterly all Federal invest ' enlt andexpenditure for the plirpose (of a-4certainiig i lie (,t Iiil to ,,(hich ilit etirrlit atilanticipated ovl tl ot-I'ederal i'evt lielt alld expuditlie Warrants any changein th(, volhu of such Fi,liial ilivie.- hilifl alll e\Jelitt ire.

(b) Siljeet to slell principles ld st andirds ai may he set forli ill ippllicableapl)rolriat ion Acts ;tl,(itt lhi iisti ites, the rate oif Feidervl illv",t lielit Philipndi-t r 10y Iway h' vritl to wl, ever (x tiil tand iii whatever lnti lh Ite Pre.ident RImaydetermitie to he ,i eiss-av for t lie lirjios of iosskliig it isiiing 'otiinig fillelliplovlilt, wit Ih I iR, tollsideit, ionu keilig givei Io current and -l, icipated varia-tiolh"is Ill savig'I s aditl il invest 0 ilt'I-l ( ti't it i r,-h- r'rivr 'tv hiisiitiss, (.tlllRlln1R'.,State and local govel Iill W it h, 1i1d l vilcral o'e'!llulo'i.

All) 'll COMMITTi:EE

SAte:. 7. "lht, heads of departlnlits iitl stitlishlimiits shall, at thill rettlest ofll\- coiRiitt v of either Ilouse of ('oigrvss, furish ,ili et Villlltt e with ilch aidatid liilrllat ion with regard to tile Natiolial Bildgel as it lliy rqttest.

INTERPRE:TAET ION

Sac. 8, Notlhig coltaihed herein shall be coistruleld as calling for oraut Iorizhig --

(a) time operation of plalits, factories, or other prodlictlive facilities by tileFederal Go\ trnnient;

(b) the use of coiplllsory nieiastlrcs of any type whatsoever il deterinilig tiealloction or (list ribuit ion of nanlpower;

(c) ailly change lit the existing procedures ol appropriat lois: or(d) the carrying out o, or ayi alplpropriat il for, alt\ progrant set forth in the

National ll(Iget, UillIess ,icli pIrograii shall have been authorized by provisionsof law other than this Act.

APPENDIX D. SELECTED REPORTS ISSUED UNDER THE AUTHOIIIZA-TION OF THE FEDERAL EMPLOYMENT STABILIZATION ACT

EmnployRent Stabilization Board:ligular reports:

Monthly report oil trend of construction, business activity, arid erm-ployient,

Quarterly report. on advance construction plans arid estimates of States,counties, cities, arid other public aid private agencies.

Special reports:Report of Possible Further Exlamnsion in Public Improvements-Sug-

gested Projects Lacking Authorizat ion, September 1931.8ix-Year Advaice Plan for Federal Coi structiow-lRepairs alld Altera-

tions, Fiscal Years 1934l-39.Authorized Colstruction Abstracted Fron the Six-Year Plan of Federal

Construetim Agencies, Fiscal Years 1934--39.Charts and Recapitulations of Past Expelidittres.and -ix.Year Advance

Plans for Federal Construction-ltepairs aid Alterations, Fiscal Year1920-29,

Advance Planning of Public Works in the District of Columbia.

HISTORY OF EMPLOYMENT STABILIZATION ACT OF 1031 25

.National Resources Planning Hoard and Predecessors:Division of Costs and I esol5osibility for Public Works.Public Works Planning. (rransmitted to President in February 1937.)Inventory of Public Works Prolects by States and Iegions(1935).rhe Econiomic Eftects of the federal Public Works Expenditures, 1033--38

(1940).Our Public Work Experience (pamphlet, digest, Jime 10.11).Long-Range Prograniing of M micipal Public Works (1940).lPublic works s aid Rural Land U e (19,12).Area Analvsis Metlhod for Public Works Planniig (19-12).

At Ih President's request, the Nat ioml Resources Plamning Board concen-trate . its efforts, after Novenmiber 1939, primarily oi) poslwar plans and a programfor fuill epli., inet. 'i'lie folowii)g report's were i.s,,ed on, these subjects:

After th W' -Toward ecurit y (digest,).Natioml lResource" developmentt lieport for 19,3 (1I. )oc. 128, pts. 1

anid 2).After liew War- Full Emiploy ment, Jn mary 19.12 (paillphlet).After t lthe W l Toward se61rity (Iminpl;lt, 1912).Postwar Agemuda (Ilniphlel. No enbvr 1912).

0