The Washington times., 1932-05-23
REPEATS STAND
AGAINST ANY
BOND ISSUE
Letter to Society of Engineers
Limits Public Works Aid
to Profitable Projects

Business, banking, industry
and agriculture must coop
crate with the Government to
remedy economic conditions,
President Hoover declared in
a letter to- Richard S. Parker,
president of the American So
ciety of Civil Engineers, as he
continued his opposition to
proposals for greater Federal
works backed by bond issues.
While the Presidents letter did
not point out any particular plan,
1t was interpreted as referring to
Democratic proposals in the
House and Senate as outlined by
Speaker Garner and a special
Democratic relief committee of
the Senate.
Garner has proposed a billion
dollar bond issue for a Govern
ment building program, while the
Senate Committee asked for a
haf-billion-dollar bond issue for
the construction of public works.
For Expanded Credit
Mr.. Hoover reiterated his belief
that a balanced budget, expanded
powers of the Reconstruction FL
nance Corporation, a five-day
week for Government employees,
and passage of the home loan dis
count bank legislation would Of
fer more lasting relief.
He opposed further issues of
Treasury securities "as the very
keystone of national and inter
national confidence upon which
all employment rests"
Expansion of credit by the Fed
eral Reserve banks was also rec
commended, and "the organized
translation of these credits into
actualities for business and public
bodies"
Would Expand r. F. C. Use
Other proposals and recon-
mendations of the Presidents
letter, included:
Strengthening agriculture.
Continuing such public works
to aid unemployment as do not
neceSSitate Federal borrowing.
Continued national, COM
munity, and individual efforts
to relieve distress.
Financial aid through the re-
construction Finance Corpora
ton to such States as are un-
able to finance distress relief.
Expansion of the corpora
tion's authority to allow loans
to industry and to increase the
issue of it's own securities up
to $4,000, 100000 for the "pur-
pose of organized aid to in
come producing works through.
out the nation, both of public
and private character"
The President saw no virtue
in proposals of the society and Of
many other leaders for an ex-
expanded program for public
works.
"Unbearable Burdens"
These proposals, he said, Gin
clude public works of remote use
fulnesS; they impose unbearable
burdens upon the taxpayer; they
unbalance the budget and de-
moralize government credit" He
observed:
ga large and far more effec-
tive relief to unemployment at
this stage can be secured by
increased aid to .incOme-prOduc-
in works.
'By :incOme-prOducing works
I mean such projects of States,
counties and other subdivisions
rs water works, toll bridges, toll
tunnels, docks and any other
such activities which charge
for their service and whose
earning capacity provides a re-
turn upon the Investment.
with the return of normal
times, the bonds Of such Off
cial bodies based upon such
projects can be disposed of to
the investing public and thus
make the intervention of the
Reconstruction Corpora tiOn
purely an emergency activity.
81 include in this class aid
to establish industry on sound
security"