The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-06-15

wrestling, in its closing hours. with
new legislation de-
Fear TooMuch signed to encourage
Ne, nj the building of more
homes by individu-
ais, and In connection with this debate
there developed what believe to be
one Of the outstanding questions OF
the times. The housing bill, as 1t was
called, would make borrowing easier
for those who want to own their own
homes. In other words, it is pro-
gram that will put more people into
debt If they take advantage OF the
bills provisions. And that is the ques-
ton: After the conditions that have
obtained through the last four years,
is 1t or is it not sound economy to en-
courage individuals to contract new
debts?
Debate on the housing bill, there
fore, conferred attention on one phase
of the whole New Deal program that
has caused concern in the back of
many heads. Up to this time, how
ever, apparently few of the legislators
had paused to think of the trend of
the course upon which the admins
tration had embarked.
noted in the committee hearings
In the house that number of the
representatives exhibited fear of too
much new debt. Such stolid men as
Luce of Massachusetts, Busby of Mis-
sissippi, and HOLSTER of Ohio, and
some who are inclined to the imitation
airy side, like Goldsborough of Mary
land, questioned whether the proposal
was sound. Mr.. Luce, for example,
called attention to the old-time theory
about debts, and the horror in which
debt used to be held. Mr.. Luce, or
course, reflected the wholesome New
England feeling and the attitude of
New Englanders on savings. Mr.. Bus
by, a southern Democrat, however,
made observations that were of much
the same tenor. To them, he added
that recent visit to his home bail1-
wick had indicated to him the need
of watching the governments step in
uCUI. 1AC SuS6SoSSN AeA
ther that where the government had
extended help in the South, things con-
tinued to hum until that aid was ell
minated. Thereafter, there was an
other tailspin insofar as recovery was
concerned.
Whatever ones conclusion about go
ing into debt may be, the fact is I'M
changed that the federal government
has put out approximately $7,0O0,OOO,-
600 in the last year in various types of
loans. The individuals or the corpor-
ations to which that money was loaned
are in debt to Uncle Sam, therefore,
in a corresponding amount. President
Roosevelt and his associates and adj
visers defend their course with the
argument that by making the loans
they have enabled all of those folks
to weather the storm. He argues that
the economic casualty list would have
been much higher had the loans not
been made. He holds that those who
borrowed from the federal government
were actually unable to get money
elsewhere and that the government
was merely looking after its own folks.
To those who criticize the use of tax
payers money in this manner, Mr..
Roosevelt has said repeatedly that
these loans will be repaid and that the
government will suffer no loss in the
end.
There were billions loaned by the
Reconstruction Finance corporation.
There were billions loaned by the Pub
lie Works administration. Hundreds
of millions were loaned by the Farm
Credit administration and by the Fed
eral Home Loan banks and by the va
rious agencies of the Department of
Agriculture. More money still is to
be loaned. The treasury has to bor-
row that money to large extent be-
cause the taxes are producing far less
than normal as a result of the low
business levels. So, interest must be
paid on the money which the treasury
borrows. 1t is true that there will be
interest paid by the individual bor-
rover from the government agencies
so the interest is offset, if the loans
are ever repaid.
But, after all, there are the debts,
debts on top of debts. They must Ell
ther be repaid or re-
Debts on pudiated. If they are
Ton of Debts paid, the borrowers
must pay them out
of future earnings. That condition, ac-
cording to the latest line of argument
that developed under the housing bill
debate, means the borrowers can Gre
ate little or no reserve for the future.
1t is being said that the recovery
program and the New Deal generally
contemplates planning for the future
in such manner as to ward off re-
currence of the calamity of depres-
sion. But have asked in a good many
places what if the theories of economic
planning fail to work at adj, or work
only in part? The answers / obtained
depended somewhat on the slant of the
person questioned. If they are follow
ing the professors blindly, they said to
me that the plans could not fail be-
cause they were sound by every theory
under which they are drawn. If the
person to whom the inquiry was d.
rected examined the problem on a
practical basis and studied it with the
background of history in mind, / be-
lieve without exception the answer
was: "Well, it will be just too bad"
My own feeling comedies with the
latter view. If the New Deal program