The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-10
BY HERBERT LITTLE
Times Slan Writer

W hOIlA4FO OAfs INb' AZ - We
while it lasts, and for a little while
later, sometimes brings high wages,
high profits, and great productive
activity.
Factories and farms work at high
speed as a patriotic duty. There is
an assured demand for all essential
products. This frenzied activity,
however, is largely destructive, and
does nothing to improve the condi-
ton and natural wealth Of the peo-
pies at war.
But TO bring back industrial pro-
duction and restore purchasing
power and jobs, the proposal has
been made to congress that we SIM
ulate war conditions-with the i'm
portanC exception that activity be
directed to making homes and
houses and roads and forests, in
stead of bullets and bayonets and
bombs
Such a plan has been introduced
of huge building program, which
would act to provide work and
wages. 1t would cost from five bill
lion to ten billion dollars, although
the plan as introduced in 1881 called
for five and One-half billions.
Bonds Would Finance Plan
This is about one-fourth of what
the World war cost this country. 1t
would be financed by sale of United
States bonds to the public at as low
an interest charge as possible. Sem
ator La Follette's bill proposed this
be financed by a 2 per cent surtax
on all incomes over $4,000 a year.
Such incomes amounted to ST.
100000 900 in 1923, and would have
carried and paid off such bond
issue.
This program is aimed to make
direct hits on two of the key points
of our present hard times. One is
consumer purchasing power, through
wages and purchase of raw ma
terials. The other is the heavy in
dustries and railroads, which have
been hurt more severely than any
other segment of our economic
system by the three-year disloca-
ton.
Another key point, the consumer
industries groceries and other
foods, farm products and the like
could be stimulated by an adequate
bill for direct relief of the I'M
employed, such as the half-billion
dollar La Toilette CoStigan bill now
before the senate, or the Costigan
plan for a $500 government loan at
low interest to every unemployed
head of family.
Many Would Get Work
Senator La Toilette has estimated
that his measure, if enacted would
give work directly to 800 900 of the
unemployed, and indirectly to twice
that number in industries supplying
materials for construction and in
production of goods for those given
jobs.
Under his plan, most of the money
would be loaned to states for build
ing of highways, flying fields,
schools, parks, Fairgrounds, for
forestation and elimination Of grade
crossings. A federal public works
administration would centralize and
coordinate the governments con-
struction activities, now widely
scattered.
The same sort of program on a
more modest scale is being pushed
in the present session by Senator
Wagner, in the form of liberali-
zation of the r. F. G. act, to make
self-liquidating loans for public and
semi-public projects, such as bridges
and Slum clearanceS.
The r. F. c. act of last summer,
carrying $1,000, 100000, was intend
ed for this purpose, but its impact
upon stagnant industry was stopped
by the fact that the R. F. G. board
made practically no loans. The rea-
son was that the restrictions in the
law prevented most available prof.
ects from being eligible for loans.
Would Specify 30 Hour Week
The Wagner or La Toilette plans
if put into effect by congress. prob
ably will specify a thirty hour week
for all labor involved, to provide
work for as many as possible of the
100000 or more unemployed
Most of the currency imitation
measures carry little promise that
the money will go for purposes such
as these. The currency inflationists
hope and believe they will stimulate
in this manner. But the bond in
flationists believe that public works
will force the industrial system to
move.
The public works bond issue had
not been taken up with a view to
atcing, but the recent program sug-
gested by Professor r. G. Tugwell
one of President-Elect RooSevelts
advisors. contained such a proposal.
and it has increased interest in the
plan.
This plan, like all the other in
flation" plans, has no chance of pas
sage in the present lame duck
session, due to opposition of Presi-
dent Hoover and Secretary Mills.
The Democratic leadership appears
to have taken a similar attitude of
opposition to all currency initiation
plans.