Evening star., 1933-10-01
NEW DEALS COST
SET At / BILLION
Administrations Program,
| However, Planned to Help
Finance Itself.
(Continued From First Psge.)

Bonds to be issued by the Home Own
ers' Loan Corporation. on which the
Government guarantees interest at per
cent, 81, ,0C0, 900 900.
Farm loan bonds issued by the Fed
eral Government, on which the Gov
eminent guarantees interest of 4 per
cent, $4,000. 100000.
Appropriation made for subscription
to the Federal Deposit Insurance Cor
poration. Sl50,OO0,000.
Bonds of the Tennessee Valley Author
ity, S50,000 000
While the Government guarantees only
the interest on the bonds to be IL
changed for urban home mortgages and
for farm mortgages, it is not believed
that the Government would permit
these bonds to become valueless.
Practically the whole financing plan
of the new deal is outside of the regu-
lar budget of the Government And if
the plan works in every detail. it should
finance itself. For example, the loans
of the Reconstruction Finance Cor
poration, made to financial institutions,
to industrial institutions and to Gov
ernment agencies. for most part must
be paid off by the borrowers Then
i, IN the case of the public works appro-
priation of $4,000. 100000, provision has
been made for a sinking fund to amor
tie the whole sum with revenues from
special taxes set aside for that purpose.
The home loan and farm bonds will be
secured by the mortgages for which
they are substituted The Sl50,000.000
appropriated for purchase of stock in
the Federal Deposit Insurance Corpo-
ration will be secured by that stock.
Obligations to Farmers.
The Government has obligated itself
10 paw farmers for curtailment of wheat.
cotton and tobacco crops hundreds of
millions of dollars. 1t has also bought
millions of pigs to curtail the pork pro-
duction and to maintain prices. All OF
these millions of dollars will be re-
turned to the Government, however,
through the so-called processing taxes
Imposed on the manufacturers. And
these processing taxes eventually will be
reflected in higher prices of commodl-
ties which will be paid by the American
people.
The Reconstruction Finance Corpo-
ration by law provides funds for sew
eral of the new Government agencies.
issuing its notes therefor. Among these
advances are s5OoOo0 900 to the Federal
Emergency Relief Administration;
$500. .00oO 600 to the Home Owners Loan
Corporation. and 100000, 900 to the
Agricultural Adjustment Administra-
tion. The total Of these obligations,
however, are covered in the capital
structure of the r. F. c.
Agencies to Aid Farmers.
The Government aid set up may
roughly be divided into agricultural
aid, industrial aid, and miscellaneous
aid
The two main agencies for the
farmers aid are the A. A, A. ttha
Agricultural Adjustment Adminlstra-
tom and the F. c. A. (the Farm
Credit Administration)
Through the A. A. A. the Govern
rnent is administering its cotton options
for the cotton farmers, its restriction OF
cotton acreage. its curtailment OF
wheat production and of hogs. 1t is
setting up codes of fair competition
for the industries engaged particularly
In the manufacture and processing OF
farm products Its first code to be
approved is that for the manufacturers
OF macaroni 1t is bringing about
agreements or contracts for the pro-
Gucers for example. of rice and Of
milk. It is engaged IN 1ramlng
code for the millers and another for
the bakers.
Back of the codes, agreements. con-
tracts under the A. A. A, is the de-
Termination to give the farmers a
sparity price" for their products, which
means price that will be In the same
ratio to the prices the farmer mas 10
pay for machinery and other essentials
as the farm prices we're to the ma,
lrhinery prices etc in l939-19l4. Ana
more and more the tendency is to per-
nit the fixing of minimum prices OF
farm commodities and of food products
after processing.
The F. C. A. is dealing with farm
icredits. 1t is seeking to help the farm
-er whose property is heavily mortgaged,
and to provide credit for him IN his
crop operations Among the new
agencies it is setting up are production
credit corporations and banks 1or CO.
operatives.
: The aids for the industrial workers
and industry as a whole come under
yhree agencies, the N. R. A. National
Recovery Administrator the P. w. A:
@Ithe Public Works Administrations. and
the H. 0. L. C.. Home owners Loan
1Corporation). which is operated under
the Federal Home Loan Bank.
. Fair Competition Codes.
The N. r. A. has imposed upon it the
duty of aiding in the draft of codes OF
fair competition for all kinds OF in
-dustry and employers of labor. Under
these codes minimum wages, hours OF
labor, the elimination of child labor
and even price fixing are being dealt
with. It's effort is to boost wages at
the same time that prices OF COM
-modities are increased, to increase the
purchasing power of the industrial
worker.
? The P. w. A. Public Works Admin
istrationD, with its S3300000 900 fund
for construction of public works
throughout the country. is the Govern
ment's own contribution to the stimu-
slation of employment and manufacture.
Through the Home Owners Loan
Corporation the Government is seeking
ito help the urban home owner to keep
his home and to meet mortgage and
Interest.
( Listed as miscellaneous Government
Conservation Work.. the T. V. A. (Ten-
snessee Valley Authority. the F. E.
r. A. Federal Emergency Relief Ad-
ministration), the F.. D. I. c. Federal
Deposit Insurance Corporation). and
the F. C. T. Federal Co-ordinator of
Transportation.
The E. c. w handles the Civilian
Conservation Corps, in camps through
out the country, working on refor-
vestation, flood control and the like I'm
der the T. " A., the Government IS
seeking to make the Tennessee River
Valley blossom like the rose with vast
hydroelectric power development, in
creased navigation and industrial sites
and natural resources tapped to their
fullest extent.
The F, E. R. A. has s500,000,000 to
hand out to the States and municipali
ties which are unable to take care OF
their unemployed through State and
local aid.
Bank Deposit Insurance.
The F.. D. I. c. is laying the ground
work for the insurance of deposits in
banks. which begins in modified form