Evening star., 1933-06-16

to hear once more what Mr.. Roosevelt
had to say, they emerged in a little
while and announced an agreement.
This statute will lead to unified ma
tional banking system. 1t directs di-
vorcement of security affiliates from
national banks: requires private banks
to give up either their investment or
| deposit business After July /. 1884,
deposits up to $4,000 will be guaran-
teed and there are limited guarantees
| for larger sums.
Seller Is Warned.
Passed weeks before, the securities
act, as President Roosevelt said, tells
| the seller also to beware Protection
| for the buyer through full publicity and
information on security issues is pro-
vided The bill imposes heavy penal
ties for willful Misrepresentation and
fraud.
So widespread was the depression
during the years since 1929 that the
administration program to pry the
country. out Of the slump had to be
supplemented with something to en-
able millions to hold on meanwhile
Relief and recovery prescriptions
were so intertwined that some proposals
were a blending of both but others were
frankly the former.
Among these were the $500 900 900
for direct relief grants to States, to be
issued in turn to the needy. few
faint cries of dole" were heard but
they were drowned in chorus of ap-
proval.
Attention was also given the bitter
plant of many farmers and home own
ers that better times would come too
late unless provision was made mean
x7,hil to Ioht h,,r
The response was $4,000 900 900;
81 900 900, 900 in bonds for the mort
gage-haraSsed farmer and the same
amount for the home owner.
Relief for Home Owner.
The home owner, If the value of his
house is $4,000 or less, may apply for
help through Federal savings and loan
institutions, or similar private insti-
tutions, from where his application is
directed to the corporation created
under the home loan bank system.
Should the mortgage holder agree.
debtors obligation up to 80 per cent of
his property's worth. If the 80 per cent
is not over $4,000 the creditor gets
bonds bearing per cent in return, the
interest being guaranteed by the Gov
eminent The debtor agrees to pay the
corporation over a 15-year period.
The procedure is similar in the case
of farm debtors Money Is loaned in
this instance through the Farm Credit
Administration. The Federal Land
Banks issue the bonds and their interest
is guaranteed. The farmer is charged
AZ per cent The amount of the mort
gage must not exceed so per cent of the
normal appraised value of the property
nf tho 111o Of
manent improvements, individual loans
being limited to $4,000. Consent Of the
mortgage holder also is necessary to this
arrangement.
The Governments feeling about this
has been that in most cases the credi-
tors would be glad to cooperate. since
foreclosure would probably mean a
larger loss.
Not Charged to Budget.
Characterizing such bond issues as
lf-liquidating eventually and the
| $500, 900, 900 for relief as needed for an
emergency. the President did not charge
these expenditures to the regular bud
get. The expenditures for carrying out
several other measures also were placed
in the emergency category.
The White House mention OF taxes
had direful sound to Congress which
| had just voted additional levies of ap-
proximately 1925, 100000
This was to finance the $1,000 600. 900
in bonds for the public works program.
The sales tax and various other levies
were discussed in the House before it
was decided to raise portion by in
come taxes.
| In the Senate this was changed to
capital stock tax on corporation val
uation, an increase of one-haf cent in
| the 1-cent gasoline tax. 5 per cent
| tax on corporation dividends and
amendments to close loopholes in ex-
isting laws.
House Accepts Plan.
The House accepted the Senate plan,
| having heard chorus Of dissent on
the income tax increases meanwhile.
Muscle Shoals legislation was only a
minor incident in the session just con-
cluded, although 1t had remained a
major unsettled problem to the success
sion OF Congresses since the war.
| The President made 1t known early