Evening star., 1932-08-05
off When and As Necessary.

"If When and As Necessary
Thirteen Of the States have lined up
before the paying teller's window OF
the Reconstruction Finance Corpora
tion. each of them provided with what,
two DAYS ago, might have been con-
sidered ample evidence of their right
to draw on the $3oo,000ooo Federal
fund available as loans for relief and
welfare work.
Such evidence, in the wording oil the
act. consists in certifcation by the Gov
ernor of any State or Territory as TO
.'the necessity for such funds and that
the resources Of the State or Territory
including moneys then available ana
which can be made available by the
State or Territory, its political suou-
visions and private contributions, are
inadequate to meet its relief neeos.
And upon presentation Of such, eW-
dence, the corporation is ADVISED III
the act, that nothing in this section
shall be construed to authorize the
corporation to deny an otherwise ac-
ceptsble application under this Sec
tion because Of constitutional or otner
,seaI inhibitions or because the State
or Territory has borrowed to the 1ull
extent authorized by law
Head and shoulders above the rest OF
thess thirteen States in size and wealth
stood Pennsylvania yesterday with an
application, duly certified by Gov Pm
chot for a loan of s1O,0oo,ooo to be
advanced at once against the maximum
total of s45.o00,O00 sought by the
state. As evidence of PennsylvaniaS
need statements were presented to tne
corporatiou showing that the state
has made, or under pending legislation
will make, contributions from pubic
and private sources totaling some sl4V'-
200 900 for relief These staggering
figures represent" Pennsylvania state
ment concluded approximately the
limit to which our Commonwealth can
10 in this direction"
Yet Pennsylvania was told by tne
RI c., in a statement by Chairman
Pomerene, that while it is the cor
porations belief that the State should be
extended ION proper showing" some re-
lief. "it must be borne in mind That we
have funds intrusted to our board
which are to be expended not in lieu OF
State or local relief but to be supple
mental thereto If. when and as neces-
sary." The corporation will defer ac-
tion on the Pennsylvania request "un-
iii we know what the Legislature VIII
do for the relief of its own people.
And Gov. Pinchot and the Legislatures
leaders, empty handed, have hastened
back to Harrisburg to learn what can
be done.
The case of Pennsylvania provided
the r, r. C. with an excellent oppor-
tunity for reStatement Of its policy on
loans for relief. Gov. Pinchot has
been one of the leading advocates OF
the theory that the Federal Govern
ment should assume the burden oil re-
lief work in the States, and before the
ink was dry on President Hoover's sig
nature of the relief bill 1t was apparent
that Gov. Pinchot would be first In
line with a demand for his share OF
the money He has not been unop-
posed In his own State In his de-
termination to get his part OF the
Federal loan. 1t has been contended
in Pennsylvania that the State has
not drained its own taxable resources,
and the Commonwealth has not
reached the stage of hopelessness
when it must hold out the tin cup in
Washington. And while it cannot be
said that Pennsylvania has been idle
in its own efforts or that what Gov.
Pinchot thought should be done has
been done, the effect OF compliance
with his request for the Federal loan
can readily be understood. 1t would
have given new impetus to the rush OF
the States for the loans. It would OBJ
viollsly have served the purpose OF
thgsrting, if not Of destroying, the
prospects of new relief plans now pend
ing in the State Legislature. If the
money could have been obtained from
the Federal Government, what would
be the purpose of adding to taxation
In PENNSYLVANIA to secure 1t?
The effect of the refusal, on the other
hand, is even more obvious. Pennsyl-
vania. and the other applicants now
atanding In line, are given to under
stand that where the Federal Govern
ment il concerned charity does, in
truth, begin at home. Applications ior
loans now before the board OF the cor
uoration, including Pennsylvania, call
for some Sl7l SOC, 900; in other words,
practically a fourth OF the States and
territories have asked for well over
half of all the money available. and
within n month after the relief bill was
sisned. The granting Of their requests
without the careful investigation OF the
applicants own efforts in self-help that
the board has adopted as its policy
would not only mean depletion OF q
fund that should be held IN reserve
hut n total breakdown within the States
Of their own fund-raising machinery
It is with satisfaction that tn'
RIGS firm determination TO preVen'
such consequences is to be noted.