Evening star., 1932-05-25
Senate Bill Proposes to Loan
$500, 900, 900 to States
to Aid Destitute.
S5W,000,000 BOND ISSUE
FOR CONSTRUCTION ASKED
Remaining $l,50o, 900, 900 offered
as Additional Funds for Re.
construction Corporation.
BY G. GOULD LINCOLN

The relief program of the Senat.
democrats, in bill form, was presented
10 the Senate today by Senators Wap-
ner OF New York, Robinson of Arkansas.
Walsh of Montana, Pitman of Nevada
and Bulkley of Ohio.
The measure contains three major
proposals, as follows:
l. Three hundred million dollars to
be loaned to the States to relieve desti-
tuition.
2. One billion five hundred million
dollars is made available to the Recon-
struction Finance Corporation to finance
construction of revenue-producing prof.
ects by States, municipalities and public
corporations; housing and slum clear
ance projects, and construction by pri-
vate corporations of tunnels docks,
viaducts, waterworks and similar prof.
ects devoted to public use, all of which
must be self-liquidating.
The sum of s40,000,oOO is reserved,
however, to be used by the Secretary Of
Agriculture to finance agricultural ex-
ports.
3. Five hundred million dollars Is
made available for the construction of
previously authorized Federal permanent
improvements. This construction is to be
financed not by the Reconstruction
Finance Corporation. but by Gov
eminent bond issue payable in rs years.
Hoover Against Bond Issue.
The chief differences in the proposal
of the Senate Democrats and the plan
advanced by President Hoover lie in the
fact that the bill introduced today calIs
for a public works program to be
financed by bond issue and that il
does not make provision for loans BY
the Finance Corporation 10 industry.
The President and some of the Re-
publican leaders in Congress have taken
a definite stand against initiating a
large public works program necessitat-
ing bond issue by the Federal Gov
| eminent on the ground that it would
merely be increasing the burden of the
American taxpayers.
The Republican forces in the Senate
are expected to offer amendments to
the Wagner bill or failing that to present
relief measure sponsored by the ad-
ministration
Senator Wager, who headed the sub
committee of the Democratic Steering
Committee of the Senate, which pre-
pared the bill offered by the five Sena-
tors today, explained the provisions of
the measure to the Senate.
Continues to Languish.
After declaring that there was no
longer any doubt that before Congress
adjourns it will take action to provide
program of relief and construction"
the New York Senator continued:
More than once We have been re-
minded that the resources of the Nation
| are intact; that the machinery of the
country is in excellent condition; that
the productive capacity of our people is
greater than it has ever been; that our
credit facilities are more than ample to
! finance prosperous America. Never
theleSs, America is languishing. There
is no demand for commodities, there is
no demand for labor, and there is no
demand for credit. Prices continus
| their decline, profits shrink and disap-
pear, production is further curtailed,
and more unfortunates are added to the
number of unemployed.
| There is no point in blinking the
fact that this tragic evolution has con-
tlnued despite the Reconstruction
Finance Corporation, despite the Glass
! Steagall act, despite the open-market
/ operations of the Federal Reserve Sys.
tenn. The press reports that the ad-
ministration is perplexed by the facL
that industry is seeking very little of
the newly created credit. 1t is not at
all surprising, however, to those who
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