The Waterbury Democrat., 1932-05-25
HOOVER CALLED ON TO DISCARD
 HAIR SPLITTING
Alfred E. Smith Tells Present Regime to Get Busy and Find Employ. ment for Millions on Public Works

New York. May 2b--UP) Al. fred F. smith has called upon the Hoover administration to discard "haIr splitting and all fine spun theories of financing" and And I'm. mediate em mployment for millions on needed public works.
 In q statement yesterday smith took Issue with the prcside ent' < contention that the productivity or non- productivity of public works should determine whether federal aid or credit should be extended.
 Nor" said Smith, ''do I agree with tho president as to the dls. tinctlon between loaning tho credit Of the national government through tho Reconstruction VI. nance corporation or any other agency, and tho issuance of public work bonds. What Is moro i'm. portant ls the main thing over- looked by the president, and that is the need of finding Immediate productive employment for mil. Hons of people. This problem transcends all technicaiities. ."
 Private business, Smith contend. cd. could not possibly take the initiative toward . general oconom. lc recovery.
 Smith termed the present state of affairs "the most deplorable condition this country has Seen in the time of people now living" Hoover had including toll. paying bridges and tunnels In the category of "productive" public works, but excluded highways as yielding no direct financial return. Smith hold that tNe distinction was fictitious and that bridges and tunnels dc- pended for their success on, ID. breaches and connecting rondways.
 The former governor declared that the distinction between Haul. dating md non-liquidating in- provemcnts did not stand analysis and urged that money should be lont by the federal government to states and railroads to expedite elimination of grade crossings, even though thosc produced no revenue beyond the saving of time and hu. man life.
 8"Why," asked Smith. "shouid the president fear log-roliing or favor ltisni? Tho decision should be up to him. There certainly will be T lot less preS5ure for unnec cessary or undesirable public works than for projects to help private corp0. rati0ns and railroads.
 smith snid he wns unable 10 fol- low tho presidents distinction be. tween Issuance of federal bonds and the use of federal credit through tho Reconstruction Fi. nance corporation.
 smith nsked "Where does the cash como from? So far it has come from the United States trcas- ury. in part through q direct ap' pr0priation by congress nnd In part by tho corporation borrow. ing from tho treasury. Of courso tho subsequent borrowings are ex- pectcd to Dc paid back by those who borrow from the Reconstruc- ton Finance corporation. but nevertheless the treasury must 0b- tain the money first by Solling tax notes or certificates, or by depict Ing the treasury balance. 50 that tax note certificates or bonds must be sold to defray other expenses.
 Tt follows therefore that in the last analysis from the point Of view of unscttiing the bond mar ket, there is no difference between iss,iinE federal bonds and using federal credit"
 Smith ended his statement with this prophecy: fht
 If we don't tackle this problem now in q big way, we shall Do driven to much moro drastic riens- tres q few months from now. when the millions of unemployed will not bo 90 patient with qulbbiing over words" DlNT.M tM