The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-26
RELIEF BILLS
ARE STUDIED
BY CONGRESS
Enactment of Measures Is
Expected Soon After
Jan. d.
ALTER HOOVER DRAFT
Plans for Reconstruction
Finance Corporation
Are Changed.
BY LYLE c. WILSON
United Press stan Correspondent

WASHINGTON, Dec. 26-con-
eressional committees and their
drafting clerks are laboring today
with the relief bills which will
touch every sector of American life,
from the Wall Street bankers to
the ragged, unemployed mechanic,
or even the hobo who has no job
and does not want one.
Bills for relief Of financial insti-
tuhons and farmers have been given
q priority which should enable their
enactment shortly after congress
meets again Jan. a.
Railroads, banks, insurance COM
panieS and corporate interests in
general are concerned most vitality
with bill to create a reconstruc-
ton finance corporation.
President Hoover sponsored this
legislation, introduced in both
houses Of congress. In a week of
hearings, the senate finance COM
mittee has heard testimony from
bankers and insurance company
presidents which has convinced it
of the necessity for vital alterations
In Mr.. Hooyers measures.
Changes Are Planned
The United Press is authorita-
lively informed that the recon-
struction finance corporation act
will be changed in the following
particulars:
/. Instead Of issuing debentures
for 81 100000 of its capital re-
sources, the corporation will issue
straight government bonds, thus
avoiding the necessity for making
the corporations paper diScountable
by federal reserve banks. Senator
Glass Dem, va vigorously OPP
posed involving the federal reserve
system in the emergency relief pro-
gram.
2. The interstate commerce COM
mission, instead of the corporations
board of directors, will pass upon
loans to railroads. AS originally
drafted. the bill vested this author
ity in the directors, who would have
consisted of Secretary Of Treasury
Mellon, Governor Meyer of the fed
eral reserve board; Paul BeStor,
federal farm loan commissioner,
and two directors, to be appointed
by Mr.. Hoover.
Democrats Voice Protest
2. Democratic objections caused
Mr.. Hoover to agree that there
should be four instead of two presi-
dental board members and that the
board should be nonpartisan. The
directors complained that under
the proposed five-man setup, Mr..
Hoover would have too great lnflu-
ence with the board members.
Farm relief is pending in the
form Of bill to increase by $780,
100000 the sum of treasury sub
scriptions to the capital stock OF
federal land banks. These banks
have outstanding about $1,117,000,-
600 in loans on first mortgages to
100000 farmers throughout the
country.
OF these borrowers 29.5 per cent
were delinquent Nov. 30, 1881, COM
pared with 101 per cent of delin-
ouents year ago. Land banks
which loaned 100000 900 in 1929
have loaned only S40,000,000 to
farmers this year.
Passed by House
The bill has passed the house,
with an amendment providing for
= five-year quaSi-moratorium of fed
eral land bank loans. The admins
tration is opposed to this amend
ment in its present form and its
scope may be decreased consider
ably by the senate.
Relief for Americas unemployed
IS proposed in bills introduced by
Senators Costigan Dem, Colo.), and
La Toilette (Rep., Wis). They would
appropriate. respectively, $375,000,-
600 and $3.50, 100000 for direct fed
eral relief-a policy to which Mr..
Hoover is opposed firmly.
La Toilette also proposes a $780,
100000 bond issue to promote pub
lie works which would provide jobs
for the idle.