34. Particularly active in keeping
industry in line was the President's Emergency Committee for
Employment; see E. P. Hayes, Activities of the
President's Emergency Committee for Employment, October 17,
1930 August 19, 1931 (Printed by the author, 1936).
35. Leo Wolman, Wages in Relation to Economic Recovery
(Chicago: University of Chicago Press, 1931).
36. See Fred R. Fairchild, "Government Saves Us from
Depression," Yale Review (Summer, 1932), pp. 667 ff;
and Dorfman, op. cit., Vol. V, p. 620.
37. See the unfortunately neglected study by Sol Shaviro, "Wages
and Payroll in the Depression, 1929-1933" (Master's essay,
Columbia University, 1947). Also see Rothbard, America's
Great Depression, pp. 236-239, 290-294; C. A. Phillips,
T. F. McManus, and R. W. Nelson, Banking and the Business
Cycle (New York: Macmillan, 1937), pp. 231-232; National
Industrial Conference Board, Salary and Wage Policy in
the Depression (New York: Conference Board, 1933), pp.
31-38; and Dale Yoder and George R. Davies, Depression
and Recovery (New York: McGraw-Hill, 1934), p. 89.
38. The New York Times, May 20, 1932.
39. Chairman of the committee was Owen D. Young of General
Electric. Included in the committee were Walter S. Gifford
of AT&T, Charles E. Mitchell of National City Bank, and
Walter C. Teagle of Standard Oil of New Jersey. For more on
Hoover's, threats against the banks, see Herbert Stein, "Pre-Revolutionary
Fiscal Policy: The Regime of Herbert Hoover," Journal of
Law and Economics (October, 1966), p. 197n.
40. Jesse H. Jones and Edward Angly, Fifty Billion
Dollars (New York: Macmillan, 1951), p. 18. Also see H.
Parker Willis and John M. Chapman, The Banking Situation
(New York: Columbia University Press, 1934), pp. 9 ff.
Furthermore, Hoover's Secretary and Undersecretary of the
Treasury had decided, by the end of their terms, that the
gold standard should be abolished. New York Herald
Tribune, May 5, 1958, p. 18.
41. Kent Cooper, Kent Cooper and the Associated Press
(New York: Random House, 1959), p. 157.
42. John Maurice Clark, "Public Works and Unemployment,"
American Economic Review, Papers and Proceedings (May,
1930), pp. 15 ff.
43. See Irving Bernstein, The Lean Years (Boston:
Houghton Mifflin, i960), p. 272; Dorfman, op. cit.,
Vol. V, p. jn.
44. It is instructive to note the attitude of private
electrical companies toward the government-built Boulder
Dam. They looked forward to purchasing cheap, subsidized
governmental power, which they would then resell to their
customers. The private-power companies also saw Boulder Dam
as a risky, submarginal project, the costs of which they
were happy to see shouldered by the taxpayers. See Harris
Gaylord Warren, Herbert Hoover and the Great Depression
(New York: Oxford University Press, 1959), p. 64.
45. See Swain, Federal Conservation Policy, pp. 25
ff, 161 ff.
46. See Vladimir D. Kazakevich, "Inflation and Public
Works," in H. Parker Willis and John M. Chapman, eds.,
The Economics of Inflation (New York: Columbia
University Press, 1935), pp. 344-349.
47 Leuchtenburg, "The New Deal and the Analogue of War," pp.
98-100. Also see Gerald D. Nash, "Herbert Hoover and the
Origins of the Reconstruction Finance Corporation,"
Mississippi Valley Historical Review (December, 1959),
48. Many large loans were made by the RFC to banks that were
in the ambit of RFC directors themselves, or of others high
up in the Hoover Administration. Thus, shortly after General
Charles Dawes resigned as President of the RFC, the bank
that he headed, the Central Republic Bank and Trust Co.,
received a large RFC loan. See John T. Flynn, "Inside the
RFC," Harpers' Magazine (1933), pp. 161-169.
49. See J. Franklin Ebersole, "One Year of the
Reconstruction Finance Corporation," Quarterly Journal of
Economics (May, 1933), PP. 464-487.
50. Bernstein, The Lean Years, p. 467.
51. It was left for the conservative Senator Arthur H.
Vandenberg (R., Mich.) to propose the final link in the
chain that was to form the New Deal's AAA: compelling
farmers to cut production. Gilbert N. Fite, "Farmer Opinion
and the Agricultural Adjustment Act, 1933," Mississippi
Valley Historical Review (March, 1962), p. 663.
52. Warren, Herbert Hoover and the Great Depression,
p. 65. Hoover also endorsed the privately financed Timber
Conservation Board, formed to encourage cooperation in the
lumber industry. Ellis W. Hawley, "Herbert Hoover and the
Economic Planners, 1931-32" (Unpublished manuscript, 1968),
p. 9. In a prefigurement of the New Deal's CCC, Hoover's
Forestry Service put through a large-scale program of work
relief for the unemployed in public-works construction in
the national forests. Swain, Federal Conservation Policy,
53. William Starr Myers and Walter H. Newton, The Hoover
Administration (New York: Charles Scribners, 1936), p.
54. Myers and Newton, The Hoover Administration, p.
50; Waldo E. Fisher and Charles M. James, Minimum Price
Fixing in the Bituminous Coal Industry (Princeton:
Princeton University Press, 1955), PP. 21-27.
55. See George W. Stocking, "Stabilization of the Oil
Industry: Its Economic and Legal Aspects," American
Economic Review, Papers and Proceedings (May, 1933), pp.
56. Galambos, op. cit., pp. 153-157, 165-169.
57. Ibid., pp. 176-184.
58. The text of the Swope address can be found in Monthly
Labor Review, Vol. 32 (1931), pp. 834 ff. Also see David
Loth, Swope of GE (New York: Simon and Schuster,
1958), pp. 202 ff.
59. Quoted in Arthur M. Schlesinger, Jr., The Crisis of
the Old Order, 1919-1933 (Boston: Houghton Mifflin Co.,
1957), pp. 182-183.
60. J. George Frederick, Readings in Economic Planning
(New York: The Business Course, 1932), pp. 333-334-
61. See Rothbard, America's Great Depression, pp.
245-249; Rothbard, "The Hoover Myth: Review of Albert U.
Romasco, The Poverty of Abundance," in James Weinstein and
David W. Eakins, eds., For a New America (New York:
Random House, 1970), pp. 162-179; and Hawley, "Herbert
Hoover and the Economic Planners," pp. 4 ff.
62. Schlesinger, op. cit., p. 268.
63. Hawley, op. cit., pp. 4-11.
64. Hoover had done his best to further corporatism in more
moderate and gradual ways. In addition to the measures
described above, Hoover sponsored the highly protectionist
Smoot-Hawley Tariff in 1929/30, and he signed the Norris-LaGuardia
Act of 1932, which sponsored labor unionism by outlawing
contractual agreements not to join unions and greatly
curtailing the use of injunctions in labor disputes.
65. Hoover also resisted corporate-collectivist pressure
from within his own Administration, notably from such men as
Frederick Feiker, head of the Bureau of Foreign and Domestic
Commerce, and his old friend Secretary of the Interior Ray
Lyman Wilbur. Hawley, op. cit., p. 2in.
66. Hoover, Memoirs, Vol. Ill, pp. 334-335. Also see
Loth, op. cit., pp. 208-210; Eugene Lyons, Herbert
Hoover (Garden City, N.Y.: Doubleday & Co., 1964), pp.
293-294; Myers and Newton, op. cit., pp. 245-256,
67. For a penetrating exception to this common view, see
William Appleman Williams, The Contours of American
History (Cleveland: World Publishing Co., 1961), pp.
385, 415, 425-438.