Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1932-06-09
HOUSE PASSES BILL
FOR Two BILLIONS.
FOR RELIEF FUND
Garner Relief Proposal Car
ries by Vote of 2l6
TO I62

Washington, d. c., June THE
house smashed through bitter repub-
lcan opposition today to pass the $
z 300. OOO. 900 Garner relief program
providing immediate aid to the dis
tressed and designed to reduce I'M
employment through construction OF
public works and elf-liquidating
projects
The vote was zig to 1872
TIE Garner bill, passed under the
most drastic gag rule during tins
session of congress, provides for a
billion dollar increase in the funds
of the Reconstruction Finance Cor
paration ITO broaden the use for
loans." expenditure of more than a
billion dollars for a public works pro-
gram. and a fund of 500, 900 900 to
be administered by President Hoo
yer for Immediate relief of distress.
Shortly before the vote ON the Gar
ner bill the house rejected 2I8 to 1873
President Hoover's relief plan which
was offered By Representative Willis
C. Hawiey, republican. Oregon, as a
substitute for the speakers program.
The administration proposal con-
tanned provisions for increasing the
capital of the Reconstruction FL
nance Corporation 81 500 y00Q, 600 to
finance self-liquidating projects, a
fund of $500, DOC, 900 for direct re-
lief to unemployed and money to fl
nance agricultural exports
The Garner plan, bitterly attacked
by President Hoover as pork bar
rel" legislation because of the public
works provision, is the first giant
relief proposal backed by party lead
ers to be voted On during this SEES
SION
President Ho0ver's proposal, which
was defeated, set forth the following
four point program.
/. To stimulate employment and
stIffen the whole agricultural situa-
ton, extend the authority to the re-
construction corporation to increase
its issues of securities to the maxi
mum Of 50, OO0, 600 ,0O0-
This was designed to permit it to
buy bonds from political sub-divis-
ions of public bodies OF corporations
to start construction OF income pro
ducing or selfliduidating projects to
increase employment; to make loans
upon security of agricultural COM
modities so as to assure the carrying
OF normal stocks Of these commodi-
ties and thus by stabilizing their loan
value, steady their price levels; TO
make loans to the farm board for ex-
tension of loans to farm c~ooperatves
and loans for export of agricultural
commodities to quarters where I'M
able to otherwise purchase them.
authority 10 loan np to $500, 00O, 900
to states unable to finance them
selves for distress.
z. Enactment of administration
legislation creating the system of
home loan discount banks as a "nec-
essary complement to the reconstruc-
ton corporation"
3. The joint committee of industry
and finance now being created by the
federal reserve system In each district
for the purpose of organized appli-
cation of the credit facilities now a.
valuable through the system to be de-
veIoped i'm other cities and co-ordi-
mated with the work of the corpora
tI0n.
A. Holding down government ex-
penditurse to within the tax income
now provided and undertaking no pro-
grams of expenditures which can not
be paid for from current tax income.
Again bringing the administrative
cudgel into play against an enlarged
public works program, the White
House statement said:
Expansion Of non-productive works
requiring the issuance of government
securities for any other lines Of ex-
pendIture would at once create a def
aeia and again unbalance the bud
get, and would render financing OF
the operations of the reconstruction
corporation extremely difficult, If
not impossible. and would increase
rather than decrease u~nemploy-
urnrf