Meaning: The quote you've provided refers to the National Industrial Recovery Act (NIRA), a key piece of legislation passed during the Great Depression in the United States. Enacted in 1933, the NIRA aimed to stimulate economic recovery by establishing codes of fair competition for various industries. The quote specifically mentions the concept of federally supervised trade associations, known as Code Authorities, which were a central feature of the NIRA.

The NIRA marked a significant shift in the role of the federal government in regulating the economy. The Act sought to address the severe economic downturn by promoting cooperation among businesses, labor, and government. One of the key provisions of the NIRA was the authorization for industries to create codes of fair competition, which were intended to set standards for wages, working conditions, and production levels within each industry.

The quote draws attention to the organizational structure that the NIRA envisioned for industries. Instead of a direct government control or complete laissez-faire approach, the Act proposed a system of self-regulation within each industry. This was to be achieved through the establishment of Code Authorities, which were essentially trade associations supervised by the federal government. These Code Authorities were responsible for developing and enforcing the industry-specific codes of fair competition.

The term "corporative" mentioned in the quote likely refers to the concept of corporatism, an economic and political ideology that emphasizes the organization of society into corporate groups, such as trade unions and business associations, to represent and manage the interests of their members. While some critics may have viewed the NIRA's approach as resembling corporatism, the use of the term "Code Authority" instead of "corporative" suggests a distinction in terminology and perhaps a deliberate effort to avoid the connotations associated with corporatism.

John T. Flynn, the author of the quote, was a prominent journalist and critic who closely followed the events of the Great Depression and New Deal policies. Flynn was known for his skepticism toward government intervention in the economy and his critique of what he saw as overreach and potential negative consequences of certain New Deal programs, including the NIRA.

The NIRA and its provisions, including the establishment of Code Authorities, generated significant debate and controversy. While some saw the Act as a necessary response to the economic crisis, others criticized it for potential infringement on free market principles and concerns about the concentration of power in the hands of industry leaders.

Ultimately, the NIRA's fate was determined by the Supreme Court in 1935. In the case of Schechter Poultry Corp. v. United States, the Court ruled that the NIRA's delegation of legislative power to private industry Code Authorities was unconstitutional. The decision effectively invalidated the NIRA and its codes, leading to the dismantling of the program.

In conclusion, the quote captures the essence of the NIRA's approach to industry regulation during the Great Depression, emphasizing the creation of federally supervised trade associations known as Code Authorities. The Act's attempt to balance government oversight with industry self-regulation reflected the complex dynamics of New Deal policies and the broader debate over the appropriate role of government in addressing economic crises. John T. Flynn's critical perspective offers insight into the diverse views surrounding the NIRA and its implications for American economic policy during a pivotal moment in history.