The Washington times., 1933-08-01
RULES DECREED
ON BIC FUNDS
EXPENDITURE
Liberal Attitude Is Prescribed
Toward States and Cities
on Loans and Grants
BY International News Service


President roosevelt today
prescribed the policies and rules
which will govern the eXpendi-
ture of the $4,000, 100000 public
works bond issue. designed to
give jobs to 100000 people.
A liberal attitude toward the
financing of State, municipal
and other public projects and
strict rules governing labor and
wages were laid down.
The President, in compliance
with the Congressional act, pro-
claimed a 30-hour week on all
projects if feasible, established a
priority public works list, and
announced that the public works
administration would purchase
bonds of States, cities and other
public bodies to aid in speeding
the program.
Order of Federal Loans
Grants and loans will be made
for projects in the following
order:
Waterworks and sewage pro-
iects: sewage disposal projects
sufficiently comprehensive to
render river or lake systems safe
as water supply; other sewage
disposal projects; other "re-
generative" projects that will in
themselves stimulate more work
such as highways, bridges, and
tunnels; opening of new terri
tory for homes and industry,
projects for transmission of elec-
-trical energy into territories not
now served.
It was announced:
"The President in deter
mining whether to allow or
withhold q grant will also con-
slider to what extent the
budget of the applicant is
balanced or i'm process Of
balancing and will prefer those
public bodies which put their
finances in order"
Among the policies laid down
are:
OU1ANASV 4ASO~~A @~~A@%S~
Thirty-hour week shall apply
to labor where feasible, with
O 4O-hour week in others, the
=. labor provision to be super
seded where a code is formed.
Convict labor is barred.
Labor to be employed
=, through United States reem-
ployment Offices. with veterans
preferred, but Organized labor
: may be recruited from local
unions. Decent wages" must
be paid. Contractors must put
the wage scale in the contract.
Contractors must give pref
erence to materials produced
under codes of fair competition
under the industrial recovery
act. Local materials shall be
used where feasible.
Government will bid par and
accrued interest for bonds Of
States, etc., to finance projects,
bonds to bear per cent in
terest. Bonds generally must
be retired in 80 years, and in
OU III eXCeQC1OudI CASES.
Also to Build Projects
If public bodies cannot issue
bonds to finance public works
projects, the Government will
build the project, and lease it
for sum which will ultimately
reimburse the Government.
Since under the law the Gov
ernment can give 30 per cent and
loan 10 per cent Of the cost of a
State or municipal project, the
Government will permit the 30
per cent to be used to meet in
terest on bonds for four or five
years.
Loans on private projects will
be at per cent interest tempo
rarily. Private loans can be made
for bridges, tunnels, docks, dry
docks, viaducts, reservoirs, pump
ing plants, canals, markets. hos
pitals, development of forests and
other natural resources.
Loans for low-cost housing or
Slum clearance will be made, but
only when the housing will pay
for itself.
The immediate program calls