Evening star., 1932-05-24

restore confidence. These acts have
evidently failed to restore confidence,
for we still hear the cry that We must
restore confidence. According to the
President the banks have ample cap
ital and there are safe industries that
seek this capital.
1T is therefore difficult to understand
why there should be a lack of conf
dence on the part of the banks. 1t Is
not SO difficult however, to understand
why there is lack of confidence on the
part of the unemployed. the farmer
whose product sells for less than II
costs to produce it. and the manufac-
turer who can find but few to purchase
his goods.
In view Of the foregoing statement
Of the President many believe that the
doubt as to the economic stability OF
our Government. and the lack of conf
dence in the safety Of our Government
securities, Is due In large measure to
the fear and hysteria Of capital and It's
constant dire predictions OF disaster.
There Is no investment in the world
as safe as the bonds and securities OF
our Government. and our people should
know that. 1t is the patriotic duty OF
those controlling the enormous capital
OF this country to reaSsert their conf
to finance the development Of Federal
projects and to pay all obligations that
1t may incur.
so the Reconstruction Finance Cor
poration act and the Glass Steagall
banking act, while accomplishing some
good have in sense been failures.
Commodity prices have continued to
fall and Unemployment to increase
Senator Robinson, the Democratic
leader Of the Senate. on May IL. in an
address in the United States Senate, set
forth program for relief 1t embraced
the enactment of the last Wagner re-
lief bill, which 1 have described. and
also advances by the Reconstruction
Finance Corporation i'll aid Of what he
termed self -liquidating projects such as
bridges. tunnels, docks, vladucts. water
works and similar projects devoted TO
public use when such projects. through
tolls rents, lease or royalties, Will insure
the return OF the money advanced. The
President Immediately called Senator
Robinson into conference. On May l3
the President gave out statement on
the subject He approved OF adding to
the authority and power OF the Recon-
struction Finance Corporation for the
purpose of aiding through loans eco
nomically sound and self-Supporting
projects Of constructive replacement
character" His statement was con-
strued to include such self-liquidating
projects as Senator Robinson designated
in his speech. The President also ap-
proved of advances by the Federal Gov
ernment, through the Reconstruction
Finance Corporation, to the States OF
from s25O0O0 900 to $500, 900, 900, upon
approved security, for the purpose Of
aiding in the relief of the destitute. He
opposed further Federal aid for what
he termed "unproductive public works" >"
Five Named to Draft Bill.
"A subcommittee OF the Democratic
Policy and Steering Committees, COM
posed of Senators Wagner, Walsh, Pitt
man, Bulkley and Robinson, was ap-
pointed to draft bill for the relief Of
industry, agriculture and labor. This
committee on May 81 issued state
ment setting forth the proposed pro-
gram Of legislation. The program pro-
Vdes for $500 600 600 to be advanced
to the States in proportion to popula-
ton for the relief Of destitution
upon demand of the Governor seek
ing such relief and his certiflcation
that it is needed. such advances to be
deducted from future grants to the
State under the Federal aid highway
act. This is in accord with the Wag-
ner BILL approved by the Committee on
Manufactures and now on the calendar
of the Senate.
Additional authority is to be granted
to the Reconstruction Finance Corpo-
ration so that 1t may advance not to