Evening star., 1932-07-07
GARNER ASSA|LS
PARLEY ON RELIEF
Terms Intervention by Hoover
in Legislative Processes
Against Constitution.

In answer to a question by Repre-
sentative Goldsborough, Democrat. of
Maryland, as to whether it was consti-
tutional or "the best custom" for the
President to invite to the White House
members of a Congressional Conference
Committee after an agreement had been
reached between the two houses, Speak
er Garner on the floor yesterday said:
ut has not been customary since l
have been a member of Congress, but
when the President of the United States
invites members of the House to the
executive office for the purpose Of dis
cussing the welfare of the Union / do
not see how it is possible that we could
refuse
However, I do want to say that it
is not the best custom. And / do not
think 1t is quite in keeping with the
Constitution or the thought OF the
makers of the Constitution, as to the
relation between the executive and leg
islative branches of the Government.
for the President of the United States
to wait until a conference report Is
completed and has been signed by the
members of the conference to secure
copy of it and before that conference
report is filed in the House OF Repre-
sentatives to summon them to the exec
utive Office for the purpose OF telling
them how to correct their work. 1t
ought not to exist and 1 on this floor
protest against it.
Provides Ss,50O,O0O,OOO Bill
little two of the bill has for its pur-
pose the lending of $3,500,000, 600 to
! THAT
is the difference between the President
and myself. Representative Rainey
joined me.
Back In February we passed what Is
known as the Reconstruction Finance
Corporation act at the urgent request
of the President of the United States
to take the place of private corpora
ton created by the bankers OF this
country to do the same thing that the
Reconstruction Finance Corporation Is
doing, except that 1t had no limitations
on what 1t could loan money for. We
passed the act, although we were
hesitant
I'VE knew that we were launching
into field that could not be defended
under the principles of the Constitution
of the United States. But this country
was in the throeS of desperation
| f1llQ do bAiI ACodAb w
took 1t as the President wanted it
hoping and believing that it would
restore confidence and prosperity.
The corporation has been function
ing now for four months. 1t probably
has been of wonderful benefit to the
country Nobody can tell. Nobody
knows how many banks would have
their doors closed today had it not beer
for the corporation. I think it has beer
benefit to the country, but it has moi
brought about the results we hoped for
THE issue between the President and
the Congress is this: We are going tc
broaden the base of this corporation
You say the railroads, the insurance
companies. the joint stock land banks
banks Of all kinds, and other corporate
interests have been wonderfully bene-
fited
81 500, 100000 More Proposed.
eve now propose in the House oi
Representative to add ST 500, 100000 tc
the funds of that corporation, that
much of the money Of the people of the
United States. aTd we propose to say
that from henceforth there shall be nc
class legislation and no class borrowers
but that the whole people of the United
States are going to share in It.
How can you gentlemen sit here anc
, have your taxpayers put up $500, ,000,-
900 and then say to citizen in youl
State or to a private corporation in youl
State that wants to borrow money that
have adequate security, and who intend
by the borrowing of that money to put
labor TO work-how can you say, sir
that this Reconstruction Finance Cor
poration ought not TO make the loan?
How can you say that it is more i'm
portant in this Nation that the New
York Central Railroad should meet the
interest on its bonds in July and Au-
gust OF this year than it is to prevent
the sale Of 500, 900 farms and homes ir
this republic.
II undertake TO say now, and I have
the Presidents authority for it. that
this country Is in worse shape than II
has ever been in all its history, because
1 heard aim say so last night in reply
TO my question, DO you believe that the
appropriation Of $332,000,000 will bring
on panlcF
He said he was afraid Of it. He sale
it might and that it would be SHOCK
to the country. So if the President oi
the United States has arrived at the
conclusion that prosperity is not Just
around the corner and that panic 4
staring us in the face, I am led to the
belief he anticipates what may happer
in the near future in this country anc
wants to make some excuse for 1t.
Through With Class Legislation"
"I said to the President this morn.
ing as l said to him last night, / an
through with class legislation. Yor
want to provide this $3,500 100000 anc
YOU want to give It to the railroads, the
insurance companies. the mortgage
companies and the immense wealth Of
the country.
"They said to me, why all the peo-
pie will get a benefit out of it My
friends, it is too high. The drippings
do not reach down to the earth.
81 want to start at the bottom.
want these seven men who control thi'
corporation to have the right to say
that this money is lifted into theil
keeping by all the taxpayers Of the
United States,
"The railroad companies, the banks
and the insurance companies do not
nav all the taxes in this Republic, sc
why should you go out and gather
from all this audience here S3, 100000,
600. then say we have got to take cart
of this small bunch over here, anc
then let them have the benefit of this
wholesome policy and leave out all tht
| balance.
Now on the Democratic side vol
may say. and some of you on the Re.
publican side may think, that We ought
) not to trust this board with such {
stupendous sum CT money or with sucf
7 broad discretionary powers.
"OnIy One Consistent Thing"
! "My friends, if you are going to taxi
that position, then there is only ont
. consistent thing for you to do, ant
= that is to say that these seven mel
cannot be trusted either with respect tt
Y their wisdom or their patriotism, ant
= then YOU ought to repeal the law.
you ought not to put this trust il
S the hands of men that you are no
going to give an opportunity TO serve al
! the people the same as you give then