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82 - 4
that the operation of the NRA must drive the marginal
producer or business man out of business?
THE PRESIDENT: That is a pretty broad subject and there is a
lot in it. Well, the simplest way of putting it is to
give an illustration. What are you going to do in the
case of shoes? There are enough shoe factories in the
country today to turn out 900 million pairs of shoes a
year and we only wear about 325 million pairs of shoes
a year. There is a certain limit to the number of shoes
a human being can wear in the course of a year. What
shall we do in case you decide to go into the shoe busi-
ness tomorrow and start a brand new factory? You only
complicate things. Well, those are the things we have
not
not solved yet. Or suppose you have a thoroughly inef-
ficient show, what are we going to do about it?
Q If I am a little fellow, a little inefficient fellow, I am
going to be the fellow that comes to the Board.
THE PRESIDENT: You might be a big fellow. Inefficiency is
not necessarily based on size. It is a tremendously in-
teresting problem. We have not solved it yet.
Q On the same question, there has been some suggestion that
the NRA Law might be broadened to give loans to industry
through the mortgage companies or in some way. Has that
been discussed?
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"ocrText": "583\n82 - 4\nthat the operation of the NRA must drive the marginal\nproducer or business man out of business?\nTHE PRESIDENT: That is a pretty broad subject and there is a\nlot in it. Well, the simplest way of putting it is to\ngive an illustration. What are you going to do in the\ncase of shoes? There are enough shoe factories in the\ncountry today to turn out 900 million pairs of shoes a\nyear and we only wear about 325 million pairs of shoes\na year. There is a certain limit to the number of shoes\na human being can wear in the course of a year. What\nshall we do in case you decide to go into the shoe busi-\nness tomorrow and start a brand new factory? You only\ncomplicate things. Well, those are the things we have\nnot\nnot solved yet. Or suppose you have a thoroughly inef-\nficient show, what are we going to do about it?\nQ If I am a little fellow, a little inefficient fellow, I am\ngoing to be the fellow that comes to the Board.\nTHE PRESIDENT: You might be a big fellow. Inefficiency is\nnot necessarily based on size. It is a tremendously in-\nteresting problem. We have not solved it yet.\nQ On the same question, there has been some suggestion that\nthe NRA Law might be broadened to give loans to industry\nthrough the mortgage companies or in some way. Has that\nbeen discussed?"
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