Evening star., 1932-06-25
WAGNER RESENTS
HO0VER'S ATTACK
President Has Been "Wrong
Late and Futile" During
Depression, He Says.
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Continued From First Page)
Senate and the House of the principle
Of generous relief to unemployment.
They have adopted the major provisions
for which I have been contending by
proposing to extend the authority of the
Reconstruction Corporation to use its
credit to make advances on adequate Sc
curity up to 81 500 900. 900 for construc-
ton work of the type which will pay for
itself and for which plans are immedi-
ately ready and therefore can begin the
employment of men. The Senate also
has adopted the principle for which l
have asked of $500 900 900 loans from
the Reconstruction Corporation to the
State governments who are not able
otherwise to finance their relief of dis
tress While these features in the Wag-
ner and the Garner bills are not in the
form and are not as well safeguarded
as they should be, they are in line with
major detectives have been advocating.
"On the other hand. I intensely regret
that these major provisions for relief Of
unemployment in both the Garner and
the Wagner bills should have been made
the vehicle for committing the Federal
Treasury to the expenditure OF from
$500 600. 900 to 81 200 600 600 for nom
provisions have triple vice Of being a
charge on the taxpayer, of unbalancing
the budget and of providing only small
amount OF employment and that to a
large extent in localities where it is not
needed.
"Watchful Expenditures"
"Any study of many of these public
works provisions will indicate their pork
barrel characteristics. A large part OF
the expenditures proposed are wasteful
in the present times. They impose tre-
mendous future costs on the people for
maintenance; they are not economically
needed. Much Of 1t represents Squan-
dering of public money. Much of it is
mechanicalized work. The reports Of
the different technical bureaus of the
Government show that they would pro-
duce direct employment during the next
year to an average of less than 100000
men out Of the many millions unem-
ployed.
These expenditures cannot be re-
covered: they must be met by the tax
payer now or in the future. In order
to execute them, appropriations must
be made to different departments and
thus a deficiency created in the budget
Of anywhere from $500 900, 900 to ST.
300, ,000,000 Such a deficiency cannot
be disguised by accounting phrases. We
have worked for four months in heart
breaking struggle to bring about bal
anced budget. We have imposed ST.
100 600, 900 in taxes upon the people;
we have reduced Government eXpendi-
ture by s600,000,000 or $700000, 900,
through which many Government en-
ployes will have lost employment, all in
order that we might retain the integrity
of Federal credit. To start now to
break down that credit and stability will
result in the eventual unemployment OF
far more men than this comparatively
few who are benefited. We cannot re-
store employment in the United States
by these methods.
ut would be far better TO increase
the authorizations TO the Reconstruction
Corporation to make loans for repro
ductive works which will be repaid by
the additional amounts proposed for
productive public works than to
resort to these dangerous courses. 1t
also would give more actual and con-
tinued employment.
"Disheartening Phase"
There is another phase of the bill as
passed which Is disheartening. The
S300, 900 900 which I recommended
should be loaned to such States as are
unable to finance care Of their own dis
tressed, to be made on proper loan
terms, and the whole sum was to be
available for application to the point
of need. 1t has been transformed into
a pork barrel operation by being ap-
portioned among all States according TO
population, irrespective of their needs.
The amounts assignable to States which
have major burdens of unemployment
are insufficient for their purpose, and
a great majority of States which have
the ability and will to take care of their
own are now invited to dip into the
Federal Treasury.
1T was unfortunate also that the pro-
vision for agricultural relief through the
Reconstruction Corporation was omit
| ted. The authority Is needed to assure
them credit for storage and carrying of
these commodities so as to restore order
| ly marketing in the normal way That
| proposal is the most fundamental of all
! in agricultural relief and can stop the
debacle in agricultural prices. These
products are today stagnant because Of
| their fear Of manufactures, professors,
! and dealers that they cannot be sure
] of continuous credits at fixed rates to
! carry their stocks in normal fashion and
thus the burden of carrying national re-
serves is thrust on the farmer with the
result of Generalization of prices
There Is, however, a possibility Of
| Immediately rectifying these destructive
factors and delinquencies of the bill.
| The Senate bill and the House bill differ
| totally in text. 1 am advised that 1t is
within the power of the conferees to
rewrite the bill. perfecting the fine con-
structive provisions and eliminating these
| wholly destructive proposals. ! earnest
! ly hope that this may be done"