Evening star., 1928-11-21
S3,Ol)D,ODO,ODO FUND
URGED BY HOOVER
TO COMBAT PAN|CS
Gov. Brewster Outlines Pres
ident-EIeCt'S Plans at
New Orleans.
RESERVE WOULD BE USED
TO ASSIST UNEMPLOYED
Organization for Prosperity by
America Seen as Lesson to
World by Executive.
BY the Associated Press.

BY the Associated Press.
NEW ORLEANS, November Glow.
Ralph O. Brewster of Maine, acting
upon the request of Herbert Hoover
outlined today before the Conference
OF Governors a plan for the creation
of a Nationwide construction reserve
of $4,000, ,00o, 900, to be released in times
of overproduction and unemployment.
Gov. Brewster recommended that
public authorities store. up reserve
of construction projects equal to two
years normal expenditure on improve
mentS and release this reserve at times
of unemployment. Such a fund, he
said, would be one of the best forms of
insurance against national panics.
.These views of the way in which
the States and other public authorities
may cooperate with the Federal Gov
aernment in controlling in some measure
construction work for the common
good" said the governor, "are presented
to the Conference of Governors at the
request of Herbert Hoover as an au-
thorized exposition of portion OF his
program for stabilizing the prosperity
OF the UnlteQ STATES.
"In requesting the presentation OF
this project to the Conference OF Gov
ernors Mr.. Hoover emphasized the i'm
nortance of establishing cooperation
between Federal, State and municipal
governments in accordance with the
proposals outlined at the time OF the
Unemployment Conference in 1922"
Organization for Prosperity.
Organization for prosperity, he said,
is the next lesson America may track
to the nations of the world. The gov
ernor said that America emulateS
Tantalus, the NEUROLOGICAL parsonage
who lived in the presence of plenty but
never could touch it.
'Such conditions" he said, "consti-
tute a tragedy and travesty upon the
organizing genius of American business
men"
with an annual expenditure of seven
k.Ilions upon construction, America is
An a position to stabilize prosperity to
most remarkable extent" he added.
Public authority spends more than a
billion and half. With this we are
here primarily concerned.
Private business will soon follow
such practical demonstration as the
Government may make, since thR great
commercial interests of the country
have the most vital stake. This may
apply not only to construction, but to
the renewal and extension Of capital
facilities of every sort. It Is the con-
sidered recommendation of the one who
has received the overwhelming mandate
of the American people to guide and
guard their progress in the next four
years that a construction reserve may
prudently be accumulated In time of
plenty against the lean year that is
to come.
"This involves simply the provision
of the necessary funds or credit to be
released when indexes shall indicate
the need, and such designation of
projects as may commend itself to the
authority concerned"
Gov Brewster told the governors that
no infringement of legislative preroga-
tives was contemplated, because no
project could be carried out except as
the Legislature might direct, although
the rapidity of the construction pro-
gram within defined limits could be ac-
CELEBRATED or retarded to synchronize
with national and local needs.
Insurance Against Panics.
Creation of such construction re-
serve, lie COlbluuGu, ID OIlG Vi tllC
best forms of insurance against the
panics Of our past. 1t may not be a
cure-all, but it certainly will alleviate
our ills. In some measure it is possible
to do for employment what the Fed
eral Reserve system has done for
finance and with equal advantage to
the country as whole.
Picture the approach of an economic
crisis with unemployment threatening
on every hand. The release Of three
billions in construction contracts by
public and quasi-public authorities
would remedy or ameliorate the situ-
alton in the twinkling of an eye. Fed
eral indexes are already becoming
available that remove the problem from
the domain of speculation or opinion
and place the need upon basis OF
simple facts.
mo Capitalization of authority is
proposed, but merely the creation of a
condition by concerted action that shall
make possible remedy that will ap-
peal persuasively to all. Follow the
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