Evening star., 1932-05-19
EXPECT CONGRESS
TO ACT ON RELIEF
So Many Groups Back Some
Kind of Plan That Consid-
GRAFTON Is Seen Sure.
BY MARK SULLIVAN.

The number of the different groups
which are determined to bring about
relief of unemployment through the
funds, or the initiative of, the Federal
Government, is SO large as to insure
sslat this subject will be considered by
Congress before it adjourns. At the
same time the number of these groups
and the wide variations and even vio-
lent conflicts in their several ways of
going at it. are such as to be an ex-
treme handicap to the central idea
There Is the possibility of intricate
deadlocks which would kill the whole
plan.
The one existing concrete project
sprang from those who may be COIL
sidered the regular and Official leaders
of the Democrats in both Houses. They
heard last week that the President was
willing to consider relief of unemploy-
ment in the form of loans to be made
by the Government Reconstruction
, Finance Corporation to States. About
the same time the Democrats were
teased, in speech by Secretary of War
Hurley, on the ground that, as he said,
they had no program. In the Begin
ming, six months ago, Federal relief for
unemployed was, in fact Democratic
and Progressive idea. The Democratic
leaders now determined to bring for
ward a program for unemployment
relief Immediately.
Three Conditions Made.
To make the project entirely sound
and acceptable to conservatives. they
took into counsel last week two leading
Democratic business men, B. M. Baruch
and owen D. Young. Out of the con-
ference came the present Democratic
plan, carefully formulated so as to be
unobjectionable to persons who dread
the financial consequences of more Gov
ernment borrowing. According to this
plan the relief of unemployment is to
be accomplished without adding any
measurable burden OF taxes upon the
Federal Government and without in
creaSing the permanent debt which the
Federal Government must pay.
To accomplish this safety of the Fed
eral Government the proposed plan was
made subject to three conditions. name
ly, that unemployment relief shall not
be considered at all until after the bud
get has been balanced; that unemploy-
ment relief shall take only the form OF
loans to States and cities and shall be
used only for self-liquidating projects,
such as bridges and tunnels upon which
toll is charged, and, finally, that the re-
ceipts from these projects shall be i'm
pounded to repay the Federal Govern
ment.
1t is in this form that the proposal
still remains Several variations have
been proposed One, coming from Sem
ator Wagner of New York is that the
Federal Government directly, upon its |
own responsibility. shall enter upon a |
program of erecting post Offices and |
other public buildings for which !
billion dollars shall be laid out. 1t is |
obvious that this would involve more |
Federal borrowing and more Federal !
taxes Consequently this would be OPP |
posed by the proposers OF the original
idea. There are many other variations |
of the original idea and as many kinds |
of opposition as there are plans.
Opposed to City Loans.
One group opposes any loan or grant |
of Federal money to any city whatever.
Senator Borah says that some cities
which he does not name are SO oficered
and mayored and otherwise managed
that he is unwilling to loan any Federal
money to them. Some cities say they
are at the end of their ability to pro-
vide money for relief of unemployment.
The retort made by Senators is that
these cities may be at the end of their |
resources, but it is not because of their
gifts to the unemployed, but on
account of mismanagement, not to use |
a harsher word, over long period. 1t |
is apparent that opposition to giving |
Federal money to cities is such that |
this part of all the proposals may as
we'll be dismissed.
A smaller group, including Senator
Borah, is opposed to making loans to
States This group will be in head
on collision with those who insist the !
relief must be through States or moth
ing.
One group proposes relief through |
loans to States for road building. Jhls |
Is included in the plan Of ex-Gov. Al
fred E. Smith There has arisen in
Congress, however, among members
from mainly rural States, feeling OF
disillusionment about loans to States
for road building. The roads must be
maintained and the cost for this comes
out of local taxpayers. The Nation
wide wave of resistance to taxes has |
come to oppose a system of what Is
described as the Federal Government |
'bribing" the States to build roads |
which the local farm snd other tax
payers must keep up.