Reconstruction

3943

Reconstruction

and civilian war workers in industry; dis-
posal of war stores; cancellation of war con-
tracts ; war-debt taxation; re-establishment of
shipping on a commercial basis; deflation of
the currency; re-establishment of credit on a
normal foundation; normalization of the
supply or source of raw materials. After the
World War of 1914-1919, France was the first
country to make provision for the study of
after-war problems. In 1915 the Ministry of
the Interior established a department to con-
sider the needs of the invaded regions. Great
Britain achieved, even under the handicap of
war conditions, a wise, thoroughgoing and
reasoned program for meeting the conditions
of the new peace era, beyond the record of
any of the sister states, either allied or en-
emy. The inspiration, and in many cases the
form of the reconstruction proposals of Ger-
many, are to be found in the documents of
the British Ministry of Reconstruction, and
labor reform the world over acknowledges its
debt to the reports and investigations of the
same ministry. In the U. S. important recon-
struction activities are apportioned to the
Federal departments of War, Treasury, In-
terior, Post Office, Agriculture, Commerce,
Labor, and State, and to various administra-
tive boards. The National War Labor Board,
Food Administration, Fuel Administration,
Railroad Administration, and the U. S. Hous-
ing Corporation preserved for a time in the
reconstruction period most of their war activ-
ities.

Called by the United States Chamber of
Commerce, there assembled at Atlantic City
on Dec. 3-6, 1918, a Reconstruction Congress
of American Industry which, at the instance
of Tohn D. Rockefeller, Jr., adopted an in-
dustrial creed to express the general senti-
ment of American business. The voice of
labor on reconstruction is heard in the Re-
construction Programs of the American Fed-
eration of Labor and of a number of State
and city federations. Of all these programs
that of the national body is the most con-
servative. In general the demands of the
State federations of labor were more radical
than those of the national body. The chief
difference is in the amount or degree of na-
tionalization of industry demanded. The ex-
cess of production over consumption was
valued at over twenty billions of dollars in
1918 as compared with six and one-half bil-
lions in 1913. 'The final results of the adop-
tion of a general policy of maximum produc-
tion would be a decided increase in the pro-
ductive capacity of the capital invested, a

great improvement in the relations between
employer and employed, a scientific standard-
ization of production based on the reckoned
demand and supply over long periods of time,
beyond what the public would have thought
of, as conceivable.' Investigations were set on
foot to determine the extent of profiteering,
and such other elements in the situation as
might be susceptible of improvement. Educa-
tion was profoundly influenced by the war.
The practical adaptation of vocational meth-
ods of training to the vital needs of industry
for skilled direction by trained executives
and skilled labor, brought about an entire
change of front on the part of organized labor
towards education. It aimed to bring about
(r) a general high level of patriotic, intelli-
gent and competent citizenship; (2) Ameri-
canization of the un-American, both native
and foreign; (3) a complete abolition of il-
literacy; (4) the use of English as the uni-
versal language; (5) a high degree of phys-
ical and moral fitness; (6) an adequate and
effective system of public education, both na-
tional and State, as the chief agency for the
accomplishment of the above ends; (7) a
readjustment of elementary and secondary
education so that adequate provision might
be made for the four great ends of all educa-
tion—health, citizenship, occupation, and
leisure.

Reconstruction Finance Corporation
(RFC), a government-owned corporation
designed to provide emergency financing
facilities for financial institutions, to aid in
financing agriculture and commerce, and for
similar purposes. The keystone of his recov-
ery program, President Hoover recommended
to Congress the creation of the Corporation
on Jan. 4, 1932. He signed the bill, which
closely followed his recommendations, on
January 21. This established the Corpora-
tion; empowered it to issue $500,000,000 of
capital stock, all to be taken by the Federal
Treasury; vested its management in seven
directors—the Secretary of the Treasury, the
Governor of the Federal Reserve Board, the
Farm Loan Commissioner, and four Presi-
dential appointees (term two years), not
more than four of the entire number to be
of one political party. The life of the Corp-
oration was to be ten years, unless termina-
ted earlier by statute. It was authorized to
make loans to any bank, savings bank, trust
company, building and loan association, in-
surance company, mortgage - loan company,
credit union, Federal Land Bank, Joint-Stock
Land Bank, Federal Intermediate Credit