Evening star., 1931-12-22
HUGE BOND ISSUE
AS SLUMP CURE HIT
Garfield Committee Finds
FIotation for Public Works
Unsound.
BY the Associated Press.

BY the Associated Press
Living, nationally, within our income,
is the cure for economic disturbances
proposed by a Public Works Commit
tee of the Presidents unemployment
organization.
This sober advice was &C Ipled, in a
report issued yesterday, win thorough
disapproval Of proposals for bond issues
of billions for gigantic pt bile works
schemes. After analysis, Chairman
James A. Garfield of Cleveland and his
associates. labeled these ideas "unsound
in principle"
Whatever may have been the causes
of the present condition" they advised,
the common sense remedy is to stop
borrowing. except to meet unavoidable
deficits, balance our budgets and live
within our income"
Clifford Makes Report.
Walter Clifford, national relief di-
rector made public without comment
the report This organization made a
study of the entire Federal building
plan. 1t found:
That the 10-year building plan has
been fastened and can be completed
in about 7 years;
That Federal road appropriations
should be allowed wide discretion in
allocating the money where unemploy-
ment is worst;
That projects authorized by Congress,
but for which appropriations have not
been made cannot be speeded enough
to be effective as remedy in the
present situation:
Bond Issue Unsound.
That proposals for the issuance of
several billions Of dollars worth Of
and municipalities for public works are
'unsound" in principle
The committee expressed belief that
the Government would have trouble
marketing these securities satisfactory
along with the huge loans needed to
make up deficits.
The suggestions for issuing bonds
in amounts aggregating several million
dollars are based on the belief that
the putting into effect of great public
works construction program would re-
suit in restoring business activity to
normal levels" said the report.
The advocates argue that the con-
Struction work undertaken would afford
effective emergency unemployment re-
lief, but beyond this is the belief that
expenditure of funds would spread
through the channels of trade stinulat-
ing many lines Of industry and trans
portation and start busine.j back on
the road to durable recovery.
Public Work Remedy Doubted.
Some expressed this confidence by
saying that the public works construc-
ton projects would break the depres-
sion. They apparently mean by this
that the Oppressive forces that have
been making for business contraction
would be halted and then supplanted by
expansive forces that would operate to
restore business activity.
The committee is of the opinion
that there is no sound basis for believ-
ing that an immediate authorization Of
great public works construction pro-
gram would be effective of itself in re-
storing business activity to normal
levels or even that there is preponder-
ant probability that it would generate
other economic forces that would COM
bine to restore a normal measure of
prosperity"
In addition to Garfield. the report
was signed by w Rufus Abbott, Chi
cago; Col Leonard P. Ayres, Cleveland;
Milton H. ESberg. San Francisco; Homer
Ferguson, Newport News. Va; Prof
JdCOU n. f1OlldHQeI, bdltlHlcIS, WV
liam c. Proctor, Cincinnati; John D
Ryan, New York City; John r. Tins
ley Worcester. Mass; George Vincent
Greenwich, Conn. and Matthew VOL,
vice president of the American Fed
Grafton of Labor
Raymond Robins of Brooksville, Fla.
member Of the committee, did not
sign the report because he has been
unable to see copy of it.