Evening star., 1932-06-20
Ready for the Final Push.

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When Congress entered today upon
what will probably be the final fort
night OF an historic session, the Senate
was settling down to earnest work on
what will be the major achievement of
that session-the relief bill"
The relief bill has been proposed in
various forms and by various men. In
the House it was sponsored by Speaker
Garner, passed after party caucus
that eliminated possibility Of any pro-
longed discussion, and sent to the Sen
ate accompanied by blast Of criticism,
from the President on down the line,
because Of its many obvious defects.
In the Senate the measure now under
going the first stages of discussion and
amendment has been sponsored by
Senator Wagner of New York as COM
panion to his s3oo,O0O,0 900 loan to the
States for direct relief Of suffering and
distress, already passed by the Senate
and sent to the House. The Wagner
bill now before the Senate has been
substituted for the Garner bill. 1t
meets more generally with the approval
both of Democratic leaders and with
the administration. though there are
sharp differences of opinion yet to be
ironed out-principal among which.
perhaps, is whether the money to be
loaned by the Reconstruction Finance
Corporation to public and quasi-public
bodies for expenditure on "self-liquidat-
ing" constructions and other enter
prises may also be loaned to private
industry for capital outlay on equip
ment, remodernizing, etc. The admin
istration favors this latter principle, but
while it was advocated before the COM
mittee, it was stricken from the bill
when it was reported.
Another fight impends over such
amendments as those proposed by Sen
stor La Toilette, who would superimpose
upon the bill a $4,000, ,O00,0 900 bond
issue, the proceeds from which would be
distributed as loans for the construction
of highways, elimination of grade cross
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Norris would increase even this amount.
The total expenditure proposed by
the Wagner bill amounts to $2,o0O,OOO,-
o0O One and a half billions of this
amount would be loaned by the Recon-
struction Finance Corporation, while
the remaining five hundred millions
would be utilized to continue the Fed
eral building program already author
lied. Much of the jockeying for amend
ments during the next few days may
take the form of attempts to cucumber
the bill with as many senatorial pets in
the way Of favored State projects as
can get under the ropes.
But the various shades OF opinion or
details of this measure are OF relative
insignifcance when viewed against the
BACKGROUND of the measure as whole.
It represents the final heave by Uncle
Sam to pull himself out Of the depres-
sion, and no matter what the bill looks
like when it Is finally enacted, it will
be the greatest pull yet made.
Whether this effort Of Uncle Sam IS
directed at his bootstraps depends upon
personal opinion. 1t has been referred
to by critics of such economics as
spending ones way out Of debt" 1t
remains that it does represent the
choice between two broad policies. One
policy is to do nothing and to let nature
take its course. The Wagner bill puts
into effect the other policy.
AS it is restricted credit that accounts
for the depression's continuation, the
theory of the Wagner bill Is to stimu-
late, not by psychology or applied
Coueism, but by the expenditure OF
actual dollars, the flow Of credit. Fig
ures have been cited by Senator Wag-
ner and others to indicate the extent
of the manpower to be brought into
action by the construction of projects
planned, the quantity Of raw materials
to be demanded, the Jobs that would be
given. If lack Of spending has ac-
counted for the depression, the theory
Of the bill is to enforce spending and
in a degree and by method that in
normal peace time would be considered
reckless.
1t has been said, in truth, that war
would "end" this depression because OF
the huge expenditures involved. This
Wagner bill proposes to deal with the
depression In much the same manner
that the Nation would be dealing with
war. But instead of spending the money
on munitions of war, the money will be
spent on more lasting enterprises.
Two of its most important features,
which by all means should be retained,
are these: First, that the projects Sc
lected should come under the head Of
''self-liquidating" enterprises, those
things expected to yield return over
the years to come. Second, the money
is not being given away by the Federal
Government, but loaned on good Sc
curity. If these two essential conditions
are preserved, the pork barrel will be
avoided and the chances of the law
for success will have been immeasurably
frightened at the outset.
Social considerations have become so
proninent in convention formalities