Evening star., 1932-09-24
Gov. Pinchot and the R. F. C.

Gov. Pinchot and the h. +. y.
1t might be inaccurate as well as un-
fair to assume that Gov. Pinchot is as
much interested in drawing an issue
with the Reconstruction Finance Ger
poration as in getting Federal loans for
Pennsylvania unemployment relief.
But 1t is entirely obvious that, along
with his strenuous efforts to obtain
what he conceives as adequate and de-
served Federal assistance, the Governor
Is determined to draw this issue.
Judging from the Reconstruction
Finance Corporations explanation OF
the affair, the delay thus far expert
enced by Pennsylvania in obtaining
loan has been due to the failure Of the
Governor to comply with the corpora
tons regulations concerning supply OF
specified data relating to the need Tor
the money AS soon as these facts were
supplied, loan Of S2,500,000 was made
available to three counties, and the
inference is given that the loan would
have been made earlier had the re-
ouired paper work been performed.
The Governor refers to the data as
"red tape" some of which is Impossible
to furnish. And both sides are in
clined to confuse the facts by a ten
dency to call names.
But the history of the controversy
seems best to clarity the issue pc
tween the Governor and the R f. Z.
Gov. Pincaot made his first move
three days before the enactment OF
the relief bill by asking for what ne
conceived to be the full amount due
Pennsylvania. This was the MAXIMUM
under the law, allowed to any one
State. It amounts to $45,000,000, or
IS per cent of the total fund Only
seven States, granted the MAXIMUM
would exhaust the relief fund. And
there are hfty-one States and terri
tories eligible for relief.
Gov. PinChot'S personal appearance
before the board, when he subsequent
" enlarged upon his application and
sreued the case, led to the Reconstruc-
ton Finance Corporations statement OF
policy, to the effect that the R. F. C.s
leans were intended to supplement the
work of the local communities in caring
for their stricken people, but we're not
to be granted "in lieu Of funds raised
locally. The money would be loaned
only as, if and when the need was
made apparent by the petitioning
States. And Gov. Pinchot was sent
back to Harrisburg with the implied
advice to return to Washington when
his own State had exhausted its
resources. The State Legislature al
most Immediately appropriated sl2,-
100000 for emergency relief and Gov.
Pinchot renewed his request for loan.
He was told that he had not furnished
certain information. He replied that
he had. There the matter rested until
additional information was made avail
able to the R. F. c., which granted a
two-and-a half million-dollar lean for
use in three counties. The dispute now
is whether this amount is sufficient, and
whether Pennsylvania has supplied 9TH
er required data. The r. F. c. says
it has not Gov. Pinchot says either
that it has, or that it has supplied all
the data it can.
From the very beginning Gov. Pinchot
has taken the position that the Federal
Government should shoulder the load,
or a great portion Of it, thus far left to
the States in caring for the unemploy
ment distress problem. HIS battle with
the R. F. c. has been Waged with this
principle in MIND. And the r. F. c.
has been placed in the position OF
having to defend its own policy, as well
as its Interpretation Of the spirit OF
the law, while at the same time recog-
niZing actual need in Pennsylvania
which justihes loan The whole con-
troversy is undoubtedly headed toward
a congressional inquiry in December.
The success OF the $500 00Q 900 relief
loan experiment depended at the outset
upon cooperation by the States and
their sincere acceptance of the spirit in
which the money was to be made avail
able. Gov. Pinchot has not been willing
either to cooperate or to accept the
spirit of the Federal loan. He is fight
ing with something else in view.