chapter  7
40 Pages

National Recovery Administration

Production control ran counter to the purpose of recovery through new investment and construction of capital equipment. The President's Re-employment Agreement, announced July 30, 1933, sought to hasten the code-making process and, by its own superior provisions, to speed recovery through getting "more and fatter pay envelopes to our workers." Secretary of Labor James J. Davis, other officials, and influential public groups approved the proposal of work sharing, and in 1932 President Herbert Hoover said he favored the five-day week after recovery should begin. Through the separation, almost the insulation, of public works from National Recovery Administration (NRA), business and labor in their recovery effort lost the powerful assistance which government spending and initiative could have given them. It will be seen that the separation of administration of the public works sections from the remainder of NRA was injurious to recovery. NRA as a whole was a compromise between competition and control.