Evening star., 1932-07-02
Tentative Program Reached.
Garner Gas Tax Plan
Is Discarded.
PRESIDENT EXPECTED
TO APPROVE MEASURE
Proposal Made to Extend Credit Up
to $500 Each to Unemployed
Heads of Families.
BY the Associated Press.

BY the Associated Press.
A $2,100,0 100000 relief bill, holding
promises of food and work for the un-
employed besides stimulation for busi-
ness, big and little, is headed toward
further congressional action Tuesday.
Over the week end the bill-which
members of Congress predicted Presi-
dent Hoover would sign-will be draft
ed in final form for approval by con-
ferees Tuesday. Its next step is pre-
Sentation TO House and Senate. which
cannot take up the measure before
Tuesday since they are in recess over
July 4.
Tentative Provisions.
In the rough outline accepted by con-
ferees, the relief program carries:
One billion five hundred million dol
lars for loans through the Reconstruc-
ton Finance Corporation for agricul-
ture industry, commerce or unemploy-
ment, provided adequate security is Of
fered, the money cannot be raised else
where and will not be used to pay
debts.
Two hundred million dollars for relief
leans to States on population OASIS.
One hundred million dollars for such
loans on the basis of need.
Three hundred million dollars for
public works.
discarded were: Speaker Gamers
idea of raising the public works money
through a gasoline tax; plans to nnance
the construction through a BOND issue;
restrictions on the amount tnat snouiu
he used to finance agricultural exports;
provisions to limit loans from the
81 soc. 900 900 fund to self-hquidating
protects, although these are to be Ia
vored.
Hope for Hoover Approval.
Sponsors of the measure were nope
full that they had worked out program
which would receive the approval OF
President Hoover, despite his opJectiohS
to the public works feature.
The final obstacle was overcome yes
terdav when the conferees agreed 10
grant the Reconstruction Corporation
broad powers to loan to private nous-
trv and governmental agencies.
A bill to create a $4,000, 600 900 FED
eral CORPORATION to extend credit up
to s5O0 each to unemployed heads OF
families also was introduced yesterday
in both branches of Congress.
1t was offered in the Senate py SEN
ator Costigan, Democrat, OF Coloraoo'
and in the House by Representative
La Guardia, Republican, OF new fork.
THE corporation would be similar to
the Reconstruction Finance Corpora
tion in its set-up. 1t would have $780,
600 600 capital and authority TO issue
So. soc. 900 900 debentures:
Credit would be given heads OF faml-
lies for purchase of necessary goooS
and services" for six months. Inc
money would be repayable in 10 years
ard draw interest graduated from TO
4 per cent.
Public Works Section Cut.
The public works section in the re-
lief bill as revised by the conferees was
cut to $500, 100000 when they earlier
in the day agreed to an administrator
plan to eliminate authorization for
bond issue.
This was proposed by Secretary of
the Treasury Mills, who joined the con-
ferees. After his suggestion had been
adopted, however, he refused to say
whether President Hoover would sign
the bill.
House, provided for a public works pro-
gram of Sl,200, 900 900. The Wagner
bill, which received Senate approval,
authorized bond issue of $500, 100000
for public works, of which about $780,
900 900 would have been taken out OF
the appropriation bills already passed.
These will now be left in the regu-
lar governmental construction program
instead of being included under the re-
lief program. The Garner proposal for
an additional gasoline tax OF one-fourth
cent a gallon to finance the program
was stricken out.
Adopted With Restrictions.
Provisions of the Garner bill regu-
lating loans from the Reconstruction
Corporation were adopted with certain
restrictions.
No restriction was placed on the
amount Of the money that should be
used to finance agricultural experts.
The Senate bill placed limitation Of
SAC, ,00O, 900.
Chairman Norbeck of the Senate con-
ferees said the provisions Of the bill
would allow loans to Chicago and other
cities for paying employees in the future.
but not for past debts.
The small business man would be
eligible for loans, he said. but prefer
ence would be given to elf-hquidating
projects.
Members of the conference group
agreed the bill would place the Govern
ment in the general banking business to
full of the reception the bill would re-
ceive in the Senate, which voted to limit
strictly the loans to -liquidating
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