Evening star., 1932-05-19
Billion Building Bond Issue
and Larger Reconstruction
Capital Suggested.
500, 900, 900 EMERGENCY
FUND is THIRD STEP
Opposes Dole, but Insists Congress
Must Make Real Effort to
Relieve Distress.

Speaker Garner today in a formal
statement made three suggestions to
relieve the economic situation in the
country and said he hoped the admin
istration would cooperate with Con-
gress in enacting them into legislation.
His program called for the issuance
Of S1,000,000,OO0 in bonds for a Gov
eminent building program, broadening
the base of the Reconstruction Finance
Corporation to add 81 900, 900, 600 to its
present $4,000 000,0C0 capital and pas
sage of the Huddleston bill to place
SlOO,OO0,000 in the hands of President
Hoover to be used in relieving extreme
differing in any section of the county"
Garner said he was "unalterably op-
e "a to the dole. but it must be appar-
ent that before Congress adiourns some
real effort must be made toward taking
care Of the unemployment situation as
well as the people who are in physical
distress as result Of lack of food and
raiment"
Speaker Gamers statement follows:
Ever since Congress met in December
it has been discussing and undertaking
to pass legislation that would be helpful
IN relieving the present distressing
economic conditions. Some far-reach-
ing legislation has been placed upon the
statute books. 1 have been hopeful that
these legislative efforts would tend to
bring about better conditions. but the
facts are that the unemploym 7nt. and
distress Of the people are greater now
than when Congress was organized last
December.
Hopes for Co-operatiOn.
"I am unalterably opposed to the dole,
but it must be apparent that before
Congress adjourns some real effort must
be made toward taking care Of the un-
employment situation as well as the
people who are in physical distress as
a result of lack of food and raiment.
1T is evident that the situation cam
not be remedied by international nego-
ttations to remove barriers and restric-
tions upon international commerce since
the present administration will not
permit legislation of this nature There
fore, we must consider what, II any,
thing. can be done to improve the sit
uation by direct action of the Govern
mert. To that end have three sug-
gestions to offer and I sincerely hope
that the administration viii consider
them and cooperate with the Congress
in their enactment into legislation.
First, would pass what is known
as the Huddleston bill, which has for
its purpose the placing in the hands OF
the President 500, 100000 to be used
as he deems necessary to relieve extreme
suffering in any section of the country.
If it is not necessary to use it, of course
it will not be used This is in accord
with the action of the Congress in
1898, when it placed in the hands Of
President Mckinley, as well as the
commanding general of the Army in
the Philippines, $10o, 100000 to be ex-
pended as his judgment might deem
advisable in the defense of the country.
Likewise in 1917, $100,000000 were
placed at the disposal Of President
Wilson for similar purposes. 1t has
been said, with some degree of truth
that the present condition is more dis
tressing to the people of this nation
than in either 1898 or 1917, and surely
we can trust the President to use the
S10o, 100000 patriotically and wisely for
the purposes intended.
Urges $4,000, ,00O.O 600 Capital
Second. I would broaden the base
of the Reconstruction Finance Cor
poration, permitted to exercise its judg-
ment in making loans without any
restrictions whatever, and add $1,000
600, 900 to its authorized issue, making
the total $4,000 900 900, instead Of S2,-
900. .O00, 900 as at present. This would
enable that corporation to loan funds
to States, counties and cities where
legal and adequate security could be
offered. 1t would also permit that cor
poration to exercise its good Judgment
in making loans to individuals or cor
porations where adequate security Is
offered and where it is assured that
labor would be employed.
THE principal purpose Of the original
reconstruction act was two-fold-to sus-
tain credit of banks and corporations
and to loan money to industrial cor
porationS such as railways for the en-
ployment of additional labor. There
has been little or none Of the second
purpose brought about. The principal
activities of the corporation up to this
time have been to sustain the credit OF
banks and other corporate interests by
taking their frozen assets and making
them loans upon the same which would
not be had otherwise and to loaning
money to railway corporations largely
for the purpose Of paying interest and
maturing obligations. We surely can
trust the present board to wisely admin
lister the additional duties as they are
administering the present limited duties.
Third, I would provide for the ls-
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