Milford chronicle., 1933-09-08
PLEDGE MAY AVOID
SPECIAL SESSION
IContinned from First Paael

lC0HfiHhed PROM FpSf FdgeI
acceptable to the Government and
that the loans in question would be
made by it without further delay.
The suggestion is to call a con-
ference of the leaders of both politi-
cal parties from all sections of Del
aware and have them agree that at
the regular session of the Legisla-
ture they will cooperate to have the
General Assembly pass the neces-
sary legislation which the govern
ment requires from all States re-
ceiving Federal funds for public
works projects pledging the State to
assume responsibility for its share
of any loans that may be made to it.
The public works projects in this
State total about $29,0O0,000 but of
this sum not more than $5,000,000
covers work that could not be car
ried out without act of the Legisla
/ ture or some pledge from the State
that it would be responsible for the
loans made to pay for the projects.
Under the National Recovery Act the
| State or community accepting loans
! from the Government has to pay for
| 20 per cent of the total cost. The
! balance or 80 per cent would come
from the Government on long term
! bonds and the State has to pledge
its willingness to assume these
bonds and meet them when they
fall due.
There are many public works pro-
jects in Delaware which can be car
ried out Immediately and without
legislative action. The program in
Wilmington, for instance, can be
carried to completion without act of
the General Assembly. Similar pro-
grams in other towns throughout
the State can be put into operation
such as sewers and water systems
which the towns affected already
have authority to finance without
any guarantee from themselves or
the State. The school building pro-
gram for the State could be put into
effect also because the necessary
legislative action has already been
taken. The low cost housing project
is another plan that can be financed
without delay and does not require
any action by the General Assembly.
There are many others in the same
class so that of the $29,000,000 total
approximately $24,O00,000 could be
expended on public projects without |
any guarantee from the State back
ed up by act of the Legislature.
Governor Buck, when the propos-
al was called to his attention said |
he had heard the suggestion but he
repeated his previous statement |
that discussion at this time is pre-
mature. He pointed out that the
State must first determine just what |
work is to be done, how much it is
going to cost and then all such pro-
jects have to be considered by the
various Federal commissions ap-
pointed under the Recovery Act. If
all of them prove and recommend
the projects then they have to go
to the Federal administrator by
whom they are referred to Washing
ion for consideration. Final approv-
al will rest there.
After the Federal administrator
places his stamp of approval on the
program then Delaware will know
what can be done and what the
cost will be. This will make it pos
sible to determine on the amount the
State would have to borrow from
tho Federal government and then
the Legislature could pass the nee
essary legislation to guarantee Della
wares share of its loan.