The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1934-08-02

1dG hCNINE WIN NWAOh.l OOCl
corporation, and the Farm Credit adj
ministration, among others, which
show very clearly that the govern
ment or it's agencies is unwilling to
make loans unless it can forsee rea-
sonable chance for repayment. Just
the other day, the Public Works adj
ministration withdrew an ALLEGATION
Of some 6,877,000 for construction of a
bridge in Chicago, because, according
to Public Works Administrator Ickes,
the political subdivision of that city
having jurisdiction was unable to
provide a guarantee of repayment of
that loan. Every day local units of the
Home Owners Loan corporation are
turning down applications by home
owners who seek government money
through mortgages on their property
| to aid them in whatever distress they
find themselves. The same statement
may be made respecting loans by the
Reconstruction Finance corporation
in it's dealings with industry.
| Lately the various Federal Reserve
banks issued weekly statement of
their operations, and only three of the
twelve reserve institutions reported
having made loans to industry.
[ Why Borrowers Are Few
I have inquired in numerous quar-
tiers for reasons why borrowers were
SO few. The consensus given me by
men who should know is that there are
two distinct reasons for the small
amount of loans being made by banks
and, of course, the same reasons may
apply in the case of government loans,
except that the government has been
known to put out money in places
from which it probably never will be
returned. One of the reasons mention
ed was that individuals and firms who
most need money have nothing but
their own signed obligations to put
up as guarantee. Obviously, if an in
dividual or a corporation has. no re-
sources, the note Of that individual
or that corporation is of little value,
however honest and well intentioned
the borrower may be.
The second reason, and one that is
quite important, is the lack of conf
dence which business men tell me ex-
lists to large extent in commerce and
industry. Whatever is the basis for
this lack Of confidence is not a mat
ter of concern in this discussion, but
its existence seems to me to be mat
ter of the gravest Importance.
| Whether taxpayers are afraid of
the burden in levies which they can
forsee, is the reason for their hest
fancy, is not now wholly apparent.
Many observers are convinced it is an
influential factor. There is also the
question which one hears so often ask
ed: Where and how far does the New
Deal intend to go in specialization and
| reform? 1t seems to be obvious that
each of these, and perhaps others, are
factors standing in the way Of a
sound expansion of business under the
recovery plan.
In the meantime, the federal gov
eminent is going ahead with its pro-
gram to spend our way out of the de-
preston. Here is one item to show
what is happening.
This road building has resulted in
the construction of enough miles
more than 22,000-of new highway
almost to encircle the earth. This
money was voted by congress in the
last session as q means of creating
work. Proponents of the appropria-
ton, and the administration author
ities, hold that the $500, 000, 900 ear
marked for road building would pro-
vide thousands Of new jobs. Bureau
of public roads figures indicate that
this has been the result, but ] find
many observers who are wondering
whether the amount Of money that has
been paid to labor for highway con-
struction has been proper proper
tionate part Of the total set aside,
when the purpose was safely the max
ing Of jobs.
Total figures by the public roads
office show that $500 miles were
completed and in use on July 1 of
this year and that $4,000 miles were