Evening star., 1932-05-13
Senate Democrats Fail to
Express Approval of Hoover
Compromise Plan.
REPUBLICANS CONFIDENT
OF AGREEMENT IN RANKS
81 100000 Is Asked for Federal
Aid of Unemployment Conditions
in Form of Loans.
By the Associated Press

BY the Associated Press
Senate Democrats today turned the
Hoover compromise 81 500 900 600 relief
plan over to special committee for
study.
A second conference of the Demo-
Gratis failed to develop an absolute ap-
proval OF the compromise The special
committee was determined upon to 90
over the plan. Senator Robinson, the
Democratic leader, whose conference
With President Hoover opened the way
1or compromise, will serve as a
member.
Other members are Wagner of New
YORK, Walsh of Montana, Pittman of
Nevada and Bulkley Of Ohio.
Confident of Agreement
AS result of last nights conference
at the White House between the Pres
ldent and Republicans of the Senate
Banking Committee, Republican leaders
were confident of a general agreement
IN their ranks on the proposal to extend
Federal aid to the States for unemploy-
ment relief and to finance public and
private construction-by means of the
Reconstruction Finance Corporation.
Meanwhile House banking leaders
were waiting to see President Hoover's
plan in legislative form before taking
any position on the huge financing
program.
Chairman Steagall of the Banking
Committee said he was waiting to "see
the plan in black and white. telling
in detail what is proposed, before pass
ing judgment on it."
Under the compromise relief plan
the $500, 900, 900 would be distributed
by the Reconstruction Corporation. the
funds being raised as needed through
sale Of corporation debentures, with no
issue of Government bonds.
Even with the backing of the Presi-
dent, the proposal must have great
passed within the brief four weeks
remaining before Congress quits work.
After last nights meeting at the
White House, which was described as
harmonious" Mr.. Hoover gave out
statement outlining the compromise
plan.
Would Double Borrowing Power.
BY legislation, the present borrowing
power of the reconstruction unit would
be doubled, to a total of $1,000, ,000, 900.
The President made it plain he was in
no wise abandoning the policy that re-
lief of distress rests primarily on local
effort, but said since fear has arisen
that existing relief measures and re-
sources may prove inadequate" 1t was
deemed wise to empower the Recon-
struction Corporation to make relief
loans to States If necessary. He ad-
vised limiting these loans to between
$3.50, ,000, 900 and $500, 100000
The remaining monies would be
loaned for both private and public con-
struction projects, provided they be
economically sound and self-Supporting
projects of a constructive replacement
character"
I'm order to safeguard the program
beyond all question" the President said,
1T is proposed that there must be
proper security for the loans. that as
said projects must be producing,
that borrowers must have sufficient con-
f1dence to furnish part of the capital.
and that the project must contribute TO
early and substantial employment"
Several Proposals Hit.
The Chief Executives statement
struck sharply at various proposals to
issue bonds for what he called unpro-
ductive public works He asserted an
examination had disclosed that to in
crease Federal Government construction
work during the next year beyond that
already provided for would represent
a wasteful use of capital and public
credit"
The program worked out yesterday
between the President and Robinson
contained concessions upon both sides.
The Arkansas Senator originally had
proposed bond issues to provide $780,
900 900 relief fund and a $4,000, ,000, 900
construction fund.