The National Recovery Administration: An Analysis and Appraisal

By Leverett S. Lyon; Paul T. Homan et al. | Go to book overview

CHAPTER III
OBJECTIVES OF THE ACT

Concerning the purpose of Title II, providing for public works, there is no ambiguity. It was designed to stimulate recovery through the expenditure of public loan funds upon useful public works, and correlatively to provide additional work for the unemployed. Its primary stimulative effect was expected to operate in the fields of construction and capital goods where the unemployment of men and equipment was most marked.

No such simplicity of statement is possible with respect to the purposes of Title I. A little space may therefore be used profitably in examining the evidence. The official name of the whole act, including three titles, is "an act to encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes." The declaration of policy with which Title I begins reads as follows:

A national emergency productive of widespread unemployment and disorganization of industry, which burdens interstate and foreign commerce, affects the public welfare, and undermines the standards of living of the American people, is hereby declared to exist. It is hereby declared to be the policy of Congress
1. to remove obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof; and
2. to provide for the general welfare by promoting the organization of industry for the purpose of co-operative action among trade groups,
3. to induce and maintain united action of labor and man-

-15-

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