The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-21
COMPROMISE ON.
JOBLESS AID is.
GIVEN SENATORS.
Plan Prepared by Five
Democrat Leaders Seen
Likely to Pass.
BY RUTH FTNNEY
Times stan writer

DAOllAct 4tArAdA ACA4tA FA0A e@N-
lined to the senate today By five
Democratic leaders apparently has
enlisted sufficient support to insure
its passage.
It closely resembles the relief
plan OF President Herbert Hoover,
differing only IN it's provision for
$500. 900, 900 bond issue for federal
public works.
Administration Republicans are
not expected to offer the substitute
measure which, It is understood, was
being prepared at the Presidents
direction.
But Speaker John Garner intends
to press for passage in the house of
his own relief bill carrying an even
larger bond issue for federal public
works.
The senate bill, prepared under
the direction OF Senator'S Robert F.
Wagner IN. ", Joseph T. Robin
son (Ark), Key Pittman New,
Thomas j. Walsh CMont) and Rob-
ert J. Buckley lO). calls for a
s2s300,000.000 relief program.
Loans for Cities, States
II would authorize the reconstruc-
ton finance corporation to use
100000 900 Of its existing $780,
100000 fund for advances to states
unable to provide relief for their
destitute.
States would not be required to
deposit securities or enter into for
NAL loan agreements, but amounts
advanced would be deducted from
future federal-aid highway grants.
For construction to relieve unem-
ployment the bill proposes that the
reconstruction corporation be au-
thorlzed to borrow an additional
S1,500,0OO 900 and loan it to states,
cities, public corporations. limited
dividend corporations, and private
corporations.
All projects built Under these
loans would have to prove their
sell-liquidating character.
Forty million dollars Of this
amount would be set aside to facili-
tate the financing Of agricultural
exports.
Bond Issue rs Proposed
Finally, the program calls for a
$500, 100000 bond issue TO make
possible immediate construction Of
federal public works already author
lied. It does not call for a special
tax to pay for retirement Of these
bonds.
The bill being drawn to embody
provisions of this program either
will specify what public works shall
be included, or it will define so closely
their nature that only limited class
will be acceptable.
Members Of the committee do not
approve inclusion of reclamation
projects. The bill will specify
thirty-hor work week on all con-
Struction wherever practicable.
The public works provision Of the
program not only promises to supply
needed jobs. but at the same time to
make the problem of balancing the
budget less troublesome.
Provides Public Construction
1t does this by transferring from
the various annual supply bills for
1888 all construction projects in
cluded therein. This means that
the government will pay for the
federal works it considers indis-
pensable at the present time over
a period of years, instead Of at
tempting to pay for them out of
this years revenue.
The total of public construction
included in the supply bills is be-
tween 100000, 900 and $3.50, zoo, 600
according to member Of the COM
mittee.
The economy committee which is
seeking for places TO cut the fed
eral budget can relax its efforts to
that extent, or the taxes designed
to raise that amount Of revenue can
be eliminated from the tax bill, if
the current public works are met
by bonds.
But because of this provision, the
$500 100000 limitation on federal
public works means that the pub
lie works program for 1888 will be
only about as great as it was in
1888.
Designed to Prevent Hunger
The Democratic senators, in an
nouncing their plan, said that it is
designed ito aid in preventing suf-
fering from hunger. in providing
employment. and in starting again
the stalled machinery Of the coun-
try by reviving actual orders for
commodities; in reviving confidence
by checking price defiation, and
security liquidation. and by pro-
noting the revival of trade, and the
increase Of demand for commodities
and credit"
The plan specifies that ''in order
to provide employment opportuni-
ties for the greatest practicable
number Of persons. both federal con-
tracts and Reconstruction Finance
Corporation loans for construction
will, wherever practically, be con-
ditioned upon a 30-hour week"
Because Of the legislative jam in
the senate, the house probably will
act on the Garner plan before the
senate considers any measure. The
sel4ate wills then have before IL both
the Garner bill, in whatever form
it is finally approved, and the COM