Evening star., 1932-05-23

year. A portion Of these authorized
projects are outside Continental United
States and do not contribute to the
solution Ct our problem. A portion are
in localities where there is little un-
employment. A portion are in the Dis
trict of Columbia, where We already
have a large increase in program for
the next fiscal year and where no addi-
.ional work could be justified. A portion
are CT remote utility and are not justi-
fed, such as extension of agricultural
acreage at the present time.
'Deducting all these cases from the
actual list of authorized Federal public
works, it will be found that there is
less than s100,0oo,000 (and this Is
doubtfu) which could be expended dur
ing the next fiscal year beyond the pro-
gram in the budget. That means the
employment of, say, less than 10000
men. Thus, the whole of these grandiose
contentious of possible expansion of
Federal public works fall absolutely to
the ground for these reasons if there
were no other.
IF it is contemplated that We legis-
late more authorizations of new and
unconsidered projects by Congress, we
shall find ourselves confronted by log
rolling process which will include
dredging of mud creeks, building of un-
warranted post offices, Improbable irri-
cation projects duplicate highways and
a score of other unjustiflable activities
"Transitory Employment"
"6. There is still another phase of
this matter to which / would like to
call attention. Employment in public
works is largely transitory. 1t does
not have follow-up of continued en-
ployment as Is the case with income
producing works But of even more
Importance than this, the program I
have proposed gives people employment
in all parts of the country in their
normal jobs under normal conditions
at the normal place of abode, tends to
re-establish normal processes in buSi-
ness and industry and will do so on a
much larger scale than the projects
proposed in the so-called public works
program.
~. To sum up. 1t is generally
agreed that the balancing of the Federal
budget and unimpaired national credit
Is indispensable to the restoration of
confidence and to the very start of
economic recovery The administra-
tion and Congress have pledged them.
selves to this end. A public works
committee and by others, through the
issuance of Federal bonds, creates at
once an enormous further deficit.
What is needed is the return of
confidence and capital market
through which credit will flow in the
thousand rills with its result of en-
ployment and increased prices. That
confidence will be only destroyed by
action in these directions. These chan
nels will continue clogged by fears if
We continue attempts to issue large
amounts OF Government bonds for pur-
poses OF productive works.
Such a program as these huge Fed
eral loans for public works is fearful
price to pay in putting a few thousand
men temporarily at work and dismiss
ing many more thousands of others
from their present employment. There
is vivid proof of this since these pro-
posals of public works financed by Gov
ernment bonds were seriously advanced
few days ago. Since then United
States Government bonds have shown
marked weakness on the mere threat.
And it is followed at once by a cur
tailment of the ability of States,
municipalities and industry to issue
bonds and thus curtailment Of activi-
ties which translate themselves into de-
creased employment.
1T will serve no good purpose and
will fool no one to try to cover ap-
pearances by resorting to a so-called
extraordinary budget That device is
well known. 1t brought the govern
ments of certain foreign countries to
the brink of financial disaster. It
means breach Of faith to holders of
all Government securities, an unsound
financial program and a severe blow
to returning confidence and further
contraction Of economic activities in
the country.
What you want and what I want
Is to restore normal employment I am
confident that If the program I have
proposed to the Congress Is expeditions
ly completed and We have the co-opera-
tion Of the whole community, we will
attain the objective for which he have
been searching 20 long"