Evening star., 1932-05-25

clearly saw early last Winter that the
liberalization Of credit, no matter how
necessary 1t may be and no matter how
beneficial 1t may be, was alone made
quate to start into activity the indus
trial enterprise of the country.
Two Definite Objectives.
II am glad to see that the President
Though he differs to some extent, has
finally come around to this view. The
delay has made the problem much more
difficult; it has. feel confident, not
rendered it insoluble.
We have two definite objectives to
utilize the powers of the Government:
% To assist the States In preventing
hunger; 90 to help in bringing about
a resumption Of employment and re-
vival of trade. These ends are all i'm
portant. The methods are open to
adjustment.
I'm my judgment, we should choose
the shortest routes to these objectives
To attain the first we should make relief
available wherever 1t is required with
the minimum of bureaucratic interven-
ton. To attain the second we should
initiate necessary Federal projects and
finance local self-liquidating projects
Such a program will create demand
for commodities, employment and credit.
If the program is ample enough and is
vigorously prosecuted, it will help to
check deflation, and when that occurs
confidence will not require any external
stimulation"
Specific Proposals.
Senator Wagner gave the specific
projects carried in the bill as follows:
~. For the Federal-aid highway sys-
TENS, to be apportioned among the sew
eral States under the Federal aid high
way act and to be available as a tenn
porary advance to meet the provisions
of that act as to State funds, S120,000,-
600. The advance made to State is to
be deducted over a period of 10 years
from future Federal highway grants,
beginning in 1898.
q. For the emergency construction
Of public roads, $16,000,000.
g. For the prosecution of river and
harbor projects heretofore authorized,
$30,000,0O0
4. For the prosecution Of fiood-con-
troll projects heretofore authorized.
$15,500,000.
rs. For the continuation of construc-
ton of the Hoover Dam and incidental
works. s10,0O0,000.
IS. For air navigation facilities under
the Department of Commerce and for
the construction of lighthouses. vessels
and other construction projects Of the
Lighthouse Service in the Department
Of Commerce heretofore authorized,
s7,500,ooO.
n. For the construction Of projects
n of 10
of Yards and Docks, Navy Depart
ment, s10,000,000.
Emergency Construction.
e. For the emergency construction
of public-buildings projects in the con-
tinental United States outside of the
District Of Columbia, to be selected by
the Secretary of the Treasury from
the allocated public-buildings projects
specified in House Document No 788.
Seventy-first Congress, third session, for
which no appropriations have been
made, 500, 100000. Such projects
mated limit of cost specified in such
document, and in selecting such prof.
ects preference shall be given to places
where Government facilities are housed
In rented buildings under leases which
will expire on or before July l, 1884,
or which may be terminated on or
prior to that date by the Government.
%. The remainder of the $500, 1000 900
is to be available for expenditure upon
permanent improvement projects to be
selected by the President for which
appropriations have heretofore been
made or shall be made for expenditures
during the fiscal years 1892 or 1888.
None of the $500 600 600 fund is to
hn rtI Al
States. None of it is to be spent in the
District of Columbia, where a large
program is already under way None Of
1t Is to be spent upon projects employing
convict labor.
In addition to these restrictions. the
bill contains the very important provi-
sion that both Federal construction con-
tracts and Reconstruction Finance Cor
portion loans shall wherever practicable
be conditioned upon the 30-hour week.
The construction program, both Federal
and local, which this bill contemplates
will thus open employment opportunities
for the greatest possible number of per-
sons.
10000 Destitute Families.
This, in my judgment, is as con-
servative a program Of legislation as the
severity Of the present emergency will
permit. We cannot overlook the fact
that. according to the Department OF
Labor. there are in 1873 cities, holding
less than one-third of the Nations
population. more than 100000 families
who are living on charity.
1.-The Federal public works program
represents but quarter of the total
the bill, but its emergency value is far
greater. We have lost so much time
that it is essential that some part of
the construction program be initiated
at once.
THE Federal public works are en-
tirely in the control of Congress. The
minute this legislation is enacted into
law they can 60 forward.
Furthermore, the bonds to finance
the public works need be issued only
as funds are required to pay for them.
Obviously, but portion of the $780,
100000 will be required during the COM
ing year, The carrying charges can
at most be very small amount COM
pared to the s195,000,000 which under
the bill Is lifted out of current appro-
priations. To that extent the program
of Federal construction authorized by
this legislation will help to balance the
budget and relieve the pressure of taxa
tion from the taxpayer
THE President has expressed himself
in opposition to the enlargement Of
the Federal works program. His FIRST
objection is that it involves borrowing.
Extravagance VS.. Investment.
Every business man distinguishes
between borrowing to pay current ex-
penses and borrowing for necessary
permanent improvements and capital
expenditures. The one lie extrava-
ga1ce, the other Is investment.
"Mr Hoover has himself frequently
recognized this fundamental distinc-
ton. He approved the legislation cre-
ating q Reconstruction Finance Corpo-
ration, although that involved the
United States In the direct borrowing |
of $500 900 900 and the prospective |
guarantee of bonds amounting to ST.
100000 ,000
ssrrhara &c M ~, orit i,, the ErnsSAo,,f