The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-07-05
Dangerous Legislation

The most sweeping and far-reaching change in
the relationship between business and industry to be
considered in this country since the war is contained
in the relief bill, it comes from conference
Yet unless all indications fall congress will accept
this change and write into law with almost no dis
cusson; with many of its own members unaware of
what they doing; with the country completely
uniformed as to what is taking place.
Original plans for getting construction under way
and thus lessening unemployment called for permits
sion to the Reconstruction Finance Corporation to
loan money to states cities, semi-publc and private
corporations, with seIf-liquidating construction
projects waiting to be started.
The administration asked that this be broadened
to permit loans to any industry wishing to undertake
construction, but the senate finance committee after
Gearing Senator James Couzens point out that gov
eminent money might be used in this way to ruin
competitors of the fortunate borrows, was opposed
strongly that the proposition never even was
offered on the senate floor.
Meanwhile, Speaker John N. Garner had rushed
his public works relief bill through the house with
almost debate, under binding caucus rules. Few
If any, members took note of the fact that his bill
broadened the loaning powers of the Reconstruction
Finance Corporation even more than the President
had asked-broadened them so that any person in
the United States might borrow for practically any
purposes in addition to borrowing for construction
But the fact that the clause was in the bill sent
it to conference, and that is what the conferees,
frightened by threats of economic collapse and
under heavy pressure from the White House, have
accepted.
If the bill becomes law, it puts the United States
government directly into the banking business Even
more significant is the manner in which it does it.
1t gives seven men, acting in absolute secrecy the
power of life and death over the industry of the
country.
These seven men, all appointees of President
Hoover, and majority of them belonging to his po-
Iitical faith assume this vast power the of
presidential election.
Business men to whom the gold of the treasury
thus is made available would be ungrateful indeed
if they did not contribute part of what they receive
to continuing in Office the administration which has
given to them so generously.
And while loans so far made have been to a regu-
lated industry whose books always are open to the
interstate commerce commission, these prospective
new borrows are unreguated and any campaign con-
tributions they make be kept from the public eye
Possibly the condition of the country and the
fsal of banks to loan to business make it necessary
for the federal government to do If that is the
case we should understand clearly what doing
We also should safeguard the public money, by
proyding fullest publicity for loans We should de-
wise way to prevent government money from financ
ing the political campaign Of the incumbent President
There is no reason why congress should not delay
adjournment long enough to get these things DONE
If emergency relief funds are needed before the larger
task is complete they can be provided in separate
bill.
The original plan, of financing construction to
absorb great numbers of the unemployed be
worked out in a separate bill, and should not be
abandoned
But before the government goes into the banking
business many careful details should be worked out
and much careful thought should be directed to
the matter.