Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-24
Prosperity Plans to
Go Before Congress
BY HARDEN CoLFAx.

Congress will reassemble December 2
and will be confronted with the task
of considering legislative means OF bend
ing upward the curve OF the business
cycle, which threatens to turn down
ward under the pressure Of the psyche
logical results Of the stock market de-
fiation.
The administration has announced
that 1t will propose tax reduction reso-
luton which will keep in the pockets
of individuals and corporations some
$3.50 ,o0O, 900, which otherwise will be
paid into the Treasury in 1880.
There is strong reason to believe That
the administration will not froWn, even
If it does not actually sponsor, bills 10
increase by substantial totals appropria-
tons for public works. A prosperity
reserve" in the form OF public works 10
be executed when private construction
lags. thereby stimulating business and
industry of all lines, is not strange
term TO President Hoover; such plan
was recommended as far back as 1921
by the conference on unemployment,
summoned by President Harding, and
the distinguished chairman of that con-
ference was none other than the pres
ent Chief Executive of the Nation. And
in the intervening years he has main
tanned contact with the several COM
mittees which grew out OF the 1921
conference and encouraged their future
studies.
It is to be noted that In the meet
ingS President Hoover held last week
with industrial, business, transportation
and labor leaders to consider the eco
nomic conditions Of the country and
forestall the possibility of recession In
activity of fundamental lines there has
~
railroad improvement, factory replace
ments, more rapid work on Federal
buildings.
Even now there may be heard in the
distance the honk-honk of good roads
advocates approaching to urge that
Uncle Sam speed up his program Of
Federal aid for highway construction,
and only deliberately planned detour
will prevent their arrival to lay the case
before Congress at its regular session.
And that deep bass whistle borne now
family on the favorable wind may be
understood to be the more and better
waterways boosters, vastly encouraged
by recent utterances OF President Hoo
yer. The expanded Federal building
plan adherents already are on the scene
and have made known their ideas.
There is nothing of the grab" in such
plans. These three programs have been
There Is cause for belief that water
ways and public buildings appropriations
will be boosted quite considerably this
Winter by Congress.
X X r. X
The confidence Of the administration
in the fundamental soundness of the
business and industry of the United
States is evidenced by its sponsorship of a
tax reduction proposal simultaneously
with its calmneSs, even II its actual open
announcement is not yet so apparent,
in the face of larger appropriations to
take funds out of the Treasury.
There Is no proposal that any Fed
eral expenditure be made on any far
tastic scale. Even q tariff weary SEN
ate, returning to duty after q respite OF
10 days, will not be threatened with
brain-fag by a plan 1t has had before
| it, and has discussed rather fully at va
rious times, for a half dozen years. In
fact, concrete plan for prosperity
reserve" was reported to the Senate in
April, 1928, in the Jones bill, which
sought. by joint executive and legisla-
tive action, to expand public works when
private construction contracts in any
quarter should fall 10 per cent below
those Of the average of the correspond
ing three months of the preceding three
| years-a low level, incidentally, which
current building contracts have not ap-
| preached by many millions OF dollars
| thus far. The hope has been that Uncle
| Sam would enact some such law and
that States and other political sub
! divisions would follow suit, making the
| plan permanent.
] "A huge total Of public works has been