The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-11-26
Relief PLANS
TO Be REVIVED
IN CONGRESS
Direct Hunger Aid; Public
Building, JobIess Credit
Proposals Pushed.
BY RUTH FINNEY
Times Stan Writer


Times Stan Writer
WASHINGTON, Nov. 26.-Three
relief plans proposed at the last
session Of congress will be revived
this winter, and pressed more
vigorously than before.
These are the La Toilette COST
gan plan for direct federal hunger
relief, the La Fallotte plan for an
extensive federal public building
program, and the Costigan-La
Guardia bill for creation Of a gov
eminent corporation to furnish
credit directly to consumers as the
r. F. G. furnishes credit to banks
and employers.
When Senator Robert La Toilette
arrives in Washington next week.
he and Senator Edward r. COST
gan will discuss what steps shall
be taken in behalf of the measure
bearing both their names.
If the manufactures committee,
of which La Toilette is chairman,
holds new hearings on this subject,
it probably will include an inquiry
into the administration of relief by
the Reconstruction Finance Corpor-
alton during the last five months.
Many state officials have COM
planned of the insuff1ciency Of this
relief, but are hesitant about voic-
ing open criticism as long as they
have no other place to turn for
help.
Extend Purchasing Credit
Senator Costigan intends to ask
that the manufactures committee
hold hearings on his consumer
credit bill as soon as possible after
the session begins. This bill, intro
duced late in the spring session, is
sponsored by the Railway Labor Ex-
ecutives Association.
1.-THE plan provides for extending
purchasing credit to the unemployed
heads Of households in the United
States" says Costigan.
Orders for the necessaries Of life
are expected to result from such
credit in volume sufficient to stimu-
late the restoration Of industrial ac-
tivity and more normal prices, for
which all America impatiently has
waited.
1.-THE novelty of the plan arises
from it's endeavor to furnish credit
to the many at the foundation,
rather than the few at the top OF
0tIf. industrial structure -
Urges Exchange Corporation
His bill calls for creation of a
United States exchange corporation
with an initial capital Of 100000
and authority to issue notes Tor
five times this sum.
It would loan unemployed family
heads $500 credit each in the form
OF certificates which might be ex-
changed for food, clothing and
other necessarieS of life, not includ-
ing rent.
Licensed dealers would receive the
certificates and receive cash for
them from the corporation. Each
$500 loan would be expected to sup
port family for six months, and
would be payable ten years from
date with interest gradually increas-
ing from 1 to 4 per cent.
Unemployed borrowers who OBJ
tanned work would be required to
pay 10 per cent of their wages on
their loans.
Licensed producers would receive
loans from the corporation for the
employment of additional workers
to fill orders received, and loans
would be authorized also for de-
ferred railroad maintenance work.
This plan is the first offered to
congress for direct stimulation Of
purchasing power.
Costigan believes that in connec-
ton with its consideration this win
ter congress should investigate the
experiment taking place in Seattle,
where a voluntary association of the
unemployed is opening factories,
producing needed goods, and ex-
changing them with farmers for
food, by means of scrip. A some
what similar plan has been put in
to effect in parts of Utah.