Evening star., 1934-12-30
Presidents Problem Is to Find Ways to
Keep the Radicals of Congress in Line

1nlS group tnlnkS the depression Is
due to a shortage of currency
The ddle-of-the-roaders, number
ing among them President Roosevelt,
believe it is the duty of the Govern
ment to provide work for those who
cannot find employment in private
industry. First they thought that P.
w. A, with its broad program of con-
struction, would fill the bill. When
it failed to get into action a year ago,
the G. w. A. came into being to give
jobs to 100000. Now that P. w. A.
still is not taking up the slack in
employment, new and revised form
of c. w. A. is on the schedule.
There are several forms that this
work relief programme be submitted
to Congress-may take. One would
be simply to require each person get
ting help from the Government to
perform service in return for the allot-
ment Of relief supplies. This might
cost little more than the present sys-
on this basis for about 100000 men.
l lC LlulUCI VI yUUS SIMPLY HOQltl Uc
increased to about 100000.
A second plan would call for larger
amount of work for each individual
to increase his income to minimum
considerably above the first plan. If
plans that have been drawn are fol-
lowed under this scheme, the cost
might be about $4,000, 100000 year.
or double the first. The type Of work
performed would be somewhat similar
to that performed year ago by C.
w. A., including road work. grade
crossing elimination and similar ac
tivity requiring minimum amount
of material.
A third plan would call for the in
plan, but would at the same time
involve a broader type of work. 1t
could include construction Of low-cost
housing, the building of transmission
lines and wiring for rural electrifica-
ton and projects of that type. The
cost on this basis would be around
$4,000 100000 year for men and ma
terials, with jobs for about 100000
President Roosevelt has been as
sured that he can get the money to
carry on any one of the three work
projects, at least for one year. To
offer either the second or the third
plan might be expected to take the
wind from the sails Of the left
wingers in Congress, who are going
to demand action. And by offering
to show where the money would be
found, without adding greatly to the
picture of the national debt painted
by him a year ago, the President
could partially appease the conserva-
tives.
He could tell the greenback printers,
with their plans for billions to finance
farmers, more billions to pay veter-
ans and still more billions to pay de-
positors in closed banks, that if their
schemes were pressed they would
jeopardize the plan to provide a job
for at least one member Of each
family in the Nation.
But what Of the national budget?
Where would the money be found to
pay for any ambitious program Of
public works without badly upsetting
the calculations made by Mr.. Roose-
welt in January, 1884?
In the first place, Treasury officials
believe the national debt could be in
creased to $4,000, 100000 without
straining the country's credit. The
debt now is around $4,000, ,00o, 900.
But the point getting attention is
that the first two years of the New
Deal haven't cost as much as Presi-
dent Roosevelt told the country they
were going to cost. AS result, the
present prospect is that next July
l the national debt still will be about
$4,000, 100000 under the estimate he
made last January. That means he
will have this $4,000, 900, 900 to spend
and still keep within his debt esti-
mate.
Then there is $500, 900 900 in profit
from dollar devaluation that has not
been allocated. This is in addition
to $4,000, 100000 in the currency sta
bilization fund. Also, the Reconstruc-
ton Finance Corp, which was paying
out more than it took in during the
first years of the depression, now
promises to yield a large net income
to the Government, which then can be
spent. Besides, the last Congress
stepped up income tax rates in higher
brackets and made adjustments that
will increase the country's revenue.
BY scraping the till, the President
probably can find 5000, ,000, 900 that
can be spent and still keep the public
debt not far from the So, 600, 900 900
limit set by him. At the same time
that type Of program would serve to
keep Congress in check and prevent
the development of greater restless
ness among the unemployed.
The test then would come In 1886. |
If business had not revived enough
by that time to absorb large pro-
portion of those lacking jobs in in
dustry, the Government would be
faced with a greater demand for in
1ation and for radicalism.
(Copyright, 1934J