The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-27
HOOVER MAY
COMPROMISE
RELIEF PLANS
Limited Building Project
May Be Agreed To by
Chief Executive.
GARNER GIVES PROGRAM
Billion for Public Works
Asked by House Leader
of Democrats.


dent Herbert Hoover will agree to
construction of limited program
of public works for relief of unem-
ployment, provided the work is
financed through Reconstruction
Corporation debentures rather than
I government bonds, ii was said on
good authority today.
Senators, hearing of this posi-
bility, expressed the belief that a
compromise easily can be reached
between the relief bill drawn by a
committee of senate Democrats, and
that embodying the Presidents plan
The relief bill Of Speaker John
Garner, approved Thursday night
| by caucus OF house Democrats,
does not fit into the picture so east
/ ~. however.
Gamers program calls for public
works amounting to approximately
a billion dollars, and he proposes to
issue government bonds to pay for
the work. and retire them by means
of ne-fourth of one cent a gallon
tax on gasoline.
The bill of the senate Democrats
proposes only S500,000,00O Of public
works.
Wagner Sees Little Difference
Senator Robert F. Wagner, in
presenting the Democratic COM
mittee bill to the senate argued
that there is little difference in the
two forms Of financing construc-
ton.
He said 1T is exceedingly difficult
to follow the President when ne
would have us believe that the fed
orally guaranteed debentures of the
Reconstruction Finance Corporation
are any less federal obligations
than the United States bonds which
would be issued under this bill.
Certainly, no investor regards them
as different.
Il find it impossible to believe
that the mere device of incorpora-
ton can transform what the Presi-
dent regards as a dangerous and
confidence destroying bond into an
altogether beneficial debenture."
Garner presented his relief bill to
the Democratic caucus in speech
lasting more than an hour.
AT the end. to use his own express
sion, we had another sort of Meth
odist prayer meeting. I asked every
one to stand up. and didn't notice
anyone sitting down
Plans Direct Relief
Democratic members said after
ward that approval had been given
to the principle of the bill rather
than to its details.
The Garner plan provides:
sl00,000.OO0 for direct relief, to be
distributed by the President as he
sees fit.
An increase of 81 ,OOO,OO0,OOO in
the borrowing power of Reconstruc-
ton Finance Corporation, which
would be given authority to make
construction loans to any person, or
public or private agency.
A billion-dollar bond issue for
public works in all states, which
Garner describes in detail, fixing in
his bill the exact amount to be
spent for each piece of work.
Bill Pleases La Guardia
Roughly his bill allows half a
billion dollars for construction of
federal buildings already authorized
and some additional ones, a little
less than q quarter of billion
dollars for river and harbor and
food control work. and the balance
for road construction.
Representative Fiorella La Guar
dia. leader of the triumvirate which
staged mass meeting of represen-
tatives Thursday night in behalf of
relief legislation, expressed salts
faction at the prompt action Of the
Democrats. and said enough Re-
publican votes we're ready TO sup
port their measure to insure its
passage.