The Waterbury Democrat., 1932-01-07
NEA Service Writer

Washington The one impress sive proposal for taking q power- fu smash at the depression is this proposal for q public construction bond issue of billions of dollars, The sum of money involved is enormous, but the plans possibili- ties for economic revival us seen by its supporters are even more so,
 Several members of congress have been urging such a measure as a means of unempoyment re- lief and business revival, propos- ing bond issues of from two to five billions. Senator LaFollette of Wisconsin tops them all with q bill which would raise $5,500, ,000, 900.
 Whether the idea Is constructive and really bears great promise as an unprecedented recipe for break ing up q terrible slump or whether 1t Is dangerous and likely to do more than good Is already the sub ject of an argument which prob- ably will attract a great deal of at- tention as 1t continues.
 Five billions is so much money that in peace time 1t could be de- voted only to public projects which would represent a definite gain af- ter the depression had passed. It would only be raised in time of actual emergency and those who want tho bond issue compare their plan with the Liberty loan drives and this period with that time of emergency when about $25, 1000, ,000- 900 was raised for purposes of war.
 The preent program for strong thening the natlon's credit re- sources Is recognized as one de- signed to prop up existing business to prevent tho effects of depres- sion from becoming increasingly ser ious But 1t is claimed that the bond Issue would soon put millions of persons at work and stimulate all lines of business as well as definite ly amelorate n situation threaten- ing the solvency of banks, insur- ance companies. railroads and other corporations. LaFollette says 1t ity prices something essential to any quick recovery.
 "Best estimates indicate that eX- pendHure of $5.500, 900, 0,000 for con structlon would give Jobs to 1,500,- 900 of the unemployed directly and at least twice that many indirectly In industries supplying the mater Ials and producing consumers goods for those whose purchasing power would be restored" the sen- ator says. "Commodity prices would be stimulated both by the immediate demand for finished and semi finished products and by q changed consumer psychology which would cause a resumption of buying. Basic industries. now suffering severely, would be affect cd by the demand for iron and steel, lumber, cement, brick, tile, glass, electrical equipment, plumb ing supplies and other material. Mines, quarries and forests would increase production. Much rail- road traffic would be restored"
 Further, If half the money went into wages, more shoes, clothing food, automobiles, radios, furniture and similar things would be sold. Farmers presumably would benefit through increased demand for their products and better prices.
 LaFollette's bill proposed to is- sue bonds of $50 denomination up, the issue to be fioated by pop ular subscription much as the Li- berty loan issues were fioated. The bonds would mature in 10 years and be retired by fund raised through an additional surtax which LaFollette suggests as 2 per cent on net income of all persons above the $5,000 income group with ex- emtions of $2,500 from taxable in- come for married persons receiv- ing under $10,0O0 and of 5000 for unmarried persons.
 Under a newly created admin istrator of public works, about $650, 100000 would be spent to ex- pand federal construction-river anl harbor and flood control work. public buildings, forest roads, irri- gation and reclamation; $1,O0o,- 900, 900 on additional grants to aid state public works construction-- expanded federal-aid h ig h W work, highway bridges grade crossing elimination, and S3,7bO.- nnn nnn .s. |. a :. ,,. n ia Iga fnr Inn ma f0