Evening star., 1933-01-23
Rate by Mail-Payable in Advance.
Member of the Associated Press
An Anchor to Windward.

tae District of Columbia to borrow
money for relief from the Reconstruc-
ton Finance Corporation, the District
Commissioners and the local citizens
urging them to take this step are not
asking for a loan at this time.
The situation that confronts them
now is this: The funds raised by the
Community Chest are not enough
to guarantee continuance at present
standards Of the work of all Chest
agencies throughout 5he year now be-
ginning; the funds already appropri-
sted out Of District revenues for emer-
gency public relief. and those which,
1t is anticipated. will be appropriated
In the next District Of Columbia appro-
priation bill, are not enough to cover
the needs adequately Of the men,
women and children now dependent
upon public relief, to meet the ex-
pected increase in demand from those
seeking relief or to relieve apy Of the
private charitable and welfare agencies
of that part of their burden which
must be cut when their budgets are
cut. Unless appropriations for public
relief are increased above the ST.
$50 ,000-which is the figure previously
recommended by the Commissioners
the District is apt to face a deficit in
relief funds, and when deficit means
hunger and starvation no deficit can
be allowed to remain.
Should the deficit occur, therefore,
the District must be in position to
meet it. Congress, however, holds the
purse strings and not cent of Dis
trict revenue can be spent until Con-
gress approves the expenditure and by
formal legislative process orders It,
Suppose the deficit should occur when
Congress is not in session?
That is the situation which the
Commissioners and interested citizens
feel should be anticipated and taken
care Of in advance by congressional
action to permit the Commissioners to
apply to the Reconstruction Finance
Corporation for relief loan. should
necessity demand such action on their
part This permission to borrow
would be an anchor to windward. 1t
might not have to be used. But it
would be there in an emergency.
The law now permits Governors of
States and Territories to apply for re-
lief loans from the Reconstruction
Finance Corporation, the corporations
board Of directors reserving the author
ity to examine and pass upon the merits
of each application. There is no such
provision for the District Of Columbia.
The Governors of States and Terrific
ries must certify to the necessity for
such loans and, in the language Of the
law, show that "the resources of the
State or Territory. including moneys
then available and which can be made
available by the State or Territory, its
political subdivisions and private con-
tributions are inadequate to meet its
relief needs"
Under the proposed amendment the
District Commissioners would be given
the privilege now possessed by the Gov
ernors, but the Reconstruction Finance
Corporation, as in the case of the States,
would grant the relief asked when its
own inquiry affirmed the necessity. The
money loaned to the States bears inter-
est at three per cent year and must
be reimbursed beginning with the fiscal
year 1895. Reimbursements may be
made either by deductions from the
regular appointments from Federal
aid, for highways and post roads. or
they can be made by other arrangement
entered into between the States and the
r. F. C..
Congress, as the Districts only legis-
lAture, would do we'll to appropriate
enough money from local revenue to
assure adequate relief until it meets
again. But as long as there is any diff
ference of opinion regarding the amount
that may be necessary, it should provide
the District with the necessary author
ity to borrow in case an emergency
requires such action.