The border vidette., 1933-05-27
ECONOMIC HlGHLIGHTs
May %, 1888

President Roosevelt's propos.
ed plan for providing employ.
ment, long a subject OF discus
sion, has finally been completed.
Principal feature is a So. 300, 600,
900 public works program, in
cluding federal. state and muni
cipal building projects. Between
$3.50, 900, 900 and $3.50. 900, 900 of
this will be for highway con
struction. Bonds will be issued
to finance the project, and will
be amortized over a period Of Is
to 20 years. There will be pro
vision for a certain amount OF
new tax levy in the bill-sufi
cient to pay interest and sink
ing fund requirements. This tax
will probably take the form of a
sales tax-described as re en-
ployment tax. or breakfast
tax" on coffee and tea.
OF wide interest to business,
large and small, is the provision
of the bill which will lift the anti
trust laws and permit industrial
cooperation in a manner that is
now illegal. Government and
business will work in partner
ship, and the government will
have the power to act. An in
dustrial control board, of which
four of the five members will be
cabinet officers, is to be appoint
ed to supervise trade association
agreements.
This marks the (irst successful
effort to lift or make less string
ent the anti trust laws. since
their passage during the Theo
dore Roosevelt administration.
Business has long held that they
have outlived their usefulness,
and that they we're created to
meet condition which no longer
exists. They have forced waste.
full production and cut throat
com petition. Industrial leaders
believe elimination will make
possible cooperative work vital
to orderly aud sound business re
covery.
The other pending Administra
ton measure-railroad legisla.
tion-is meeting difficulties. It's
chief purpose is to coordinate
lines, under Federal super
visor. thus preventing the waste
and economic loss arising from
too many trains serving a given
locality. Obvious result of this
would be additional railroad un
employment. Labor is demand
ing that something be done to
prevent this, if the legislation
passes. The administration is
thus between two thorns-the
necessity of making possible
great reduction in rail operating
cost if the lines are to be saved,
and the fear of creating more
unemploy ment when employ
ment is the most vital of issues.
The new farm relief act has
become law. Curiously enough,
the best known portion of it
the currency imitation section
does not deal directly with the
farmer at all.
Two billion dollars will be
made available for a vast pro
gram of farm mortgage financ
ing. The Secretary of Agricul
ture has authority to boost farm
prices, limit prod uction and re
lease the food and textile indus
tries frcm anti trust law prohi
billions.
He will soon call a conference
of producers, handlers and others
interested in the basic commod
ities-wheat, cotton. corn, hogs,
rice, tobacco and milk products.
Later on commodity councils
will be formed, and movements
launched seeking to rehabilitate
agriculture.
On signing the bill the Presi
dent issued special public mes
sage urging a halt on all farm
nor tgage foreclosures until the
machinery can be set no for the
re fioancing project A similar
message on town and city mort
cages is expected later. The
President said that, when the
act gets into operation, the hold