The Waterbury Democrat., 1932-01-18
NEA Service Writer

l N ALIA C5cENiNC "EItNE
 | Washington Although pro- sue" of billions of dollars for puh- more toward breaking the depres- sion than anything else that might be tried, it's conservative opponents contend that the effects would be sufficiently depressive and danger ous to offset the general gain.
 I One school of thought stresses the probable benefits and mini- mixes the possible evils. The other pooh -poohs the rosy claims and emphasizes the likelihood of harm. ] Beset by many demands in and out of Congress for a bond issue of from two to five and a half bil-
 lions, the administration, through | the public works section of the Presidents Organization on Un- employment Relief (Gifford com mittee), recently made the strong opposition articulate in d summa- ton of the points raised against the plan. It is declared that no magic" measure can solve the un- employment problem, that ending tho depression is matter of eco- homie readjustment, that the basis of commodity prices is internation- al and changes only through inter- change of trade between nations. | Interest on the unemployment | bonds would be fixed by the secre- | tary of the treasury which, in the LaFollette $5,500, 100000 measure | for instance, would be limited to 4 IA per cent, It is asserted that | the interest, amortization charges land other expenses might impose a new billion -dollar-a-year burden. The Clifford committee reached that estimate by including new ob- l ligations such as repairs on and upkeep of buildings, roads and other new public works proposed. High interest rates on the bonds would even further depress gov ernment securities now outstand- ing at a lower rate, 1t is contend ed, and the new losses might re- suit in additional bank failures. The last long term federal bond issue, at 3 per cent, has been sell ing lately down around S6 and 4 IA Liberty loan bonds have been barely above par.
 1 Opponents of the bond issue also profess to shudder at what five billions in new bonds would do cor poration and municipal issues. They are sure that the market for them would be seriously impaired. | Admitting that the building trades, the industries which supply them and the railroads would bene- | fit. the Clifford committee says the bond issue plan would do nothing for agriculture, the automobile in- dustry or most branches of manu- featuring and mining. Without meeting specifically the contention that half of five billion dollars, if devoted to wages, would employ 100000 persons for a year at $25 a week-and another million or more indirectly-it condemns the idea that labor can be shifted from its normal work to emer- gency construction"
 Warnings against departure from sound, established principles are used against the bond issue as they are for direct federal relief Appropriations Localities, it Is icontended, should assume their own public works obligations without loan or other aid from Uncle sam.
 All this LaFollette and others brand as advice to resign ourselves to policy of inaction and de- spair." The best advice from eco lnomists, according to LaFollette, is that the markets of the country must find a large volume of new purchasing power to overcome present business inertia and that initiation of a large public works program is the one major con- | structive force which can be brought into operation within a short time.
 | Answering the assertion that the nations financial structure would