The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-18
BILLIONS WILL
Be SPENT FOR
BETTER TIMES
Huge Sums Made Available
in Nations GrappIe
With Depression.
HOOVER TO SIGN BILLS
Job Relief and Home Loan
Bank Measures Carry
COuntry'S Hopes.
By United Press

By United Press
WASHINGTON. July 18.-Admin-
istration leaders are mobilizing to-
gay, for the nation wide war against
depression, combination of credit,
unemployment relief and expanded
currency aggregating $4,922, 100000.
The impact of this vast combina-
ton against stagnant business is ex-
pected to arouse commerce to new
life.
Congress put these weapons in
President Hoover's hands Saturday
by enacting finally the home loan
bank and unemployment relief bills.
Mr. Hoover will sign the relief bill
Tuesday.
Unemployment relief provides for
$2,122,000,000 divided among projects
for direct human relief and con-
struction of public and self-liquidat-
ing projects.
Vast Sum Provided
lit llOll:G lOdll QlSCOullb Ud1lh
system created by congress was said
by Senator Watson (RepO, Indiana,
to be capable CT credit expansion to
the extent of $1,000, 100000. This
credit is designed to make liquid
investments in home mortgages.
Attached to the bank bill as a
rider was the Glass Borah amend
ment authorizing currency expansion
aggregating $1,0OO,000,000 j. w.
Pole, controller of the currency, is
preparing for Mr.. Hoover a report
on this project.
Purpose of currency expansion is
to increase commodity prices, which
means to decrease the purchasing
power of the dollar. Wage earners
who have gained steadily in recent
months as the dollar gradually has
become more and more valuable,
would find some portion of this in
creased purchasing power sacrificed
if the hopes Of sponsors of the rider
are realized.
A dollar, which now buys three
bushels of wheat, might, after ex-
psnsion of the currency, purchase
only two.
Money Soon Available
Mr.. Hoover has not committed
himself formally to currency ex-
pansion, but congressional leaders
were confident Saturday that he
would sign the bank bill with its
expansion rider. Unless Pole reports
adversely on the project, the new
money should be available almost
Immediately.
The additional $1OOOO00,OOO of
new money would be in the form
of national bank notes. Federal
bonds not hitherto eligible as Sc
curity for issue of national bank
notes are made eligible by this leg
islation.
There are two limitations. First.
no bond is eligible for note issue if
its interest rate is greater than 3
and p per cent. Second, national
banks may not increase their ag-
gregate note issue beyond the total
~ NA4NAl olJACdl oJOCh.
Action to Start at Once
Senator Glass Dem, va. author
of the bill, which became a rider
to the bank act, described it as
based on the "quantitative theory of
money" The Virginian, former
secretary of the treasury and fore
most senate fiscal authority, said he
was not certain currency expansion
would have the desired effect on
commodity prices, but thought the
effort to increase them should be
made.
Passage of the relief bill by con-
gress and the Presidents announce
ment that he would sign it Tues
day were notice to those charged
with the work of dispensing the
money it appropriated to prepare for
immediate action.
The bill appropriated $500. 900 0O0
Tor emergency relief loans to states;
81 500 100000 for the Reconstruction
Finance Corporation to loan polit-
zeal subdivisions and improvement
districts for f-liquidating public
work and s322,OOO,OoO for public
construction.
The Reconstruction Finance Cor
poration was engaged today in ex-
banding its machinery to take care
of the huge additional volume of ap-
plications for loans expected to
pour in upon it.