Evening star., 1934-03-23
NEW CREDIT BANKS
SUPP[ANT c. v. A.
Aid to Private Industry Ex-
peCted to Provide Jobs
to Many.
By the Associated Press.

BY the Associated Press.
In proposing a system of credit
banks for industry, President Roose-
welt is backstopping P. w. A. efforts
to absorb C. w. A. pay rolls, which
will be made up for the last time
March 81.
It originally was planned for the
Public Works Administration to take
over, on longtime construction prof.
ects, some 100000 unemployed,
whose temporary connection with the
Civil Works Administration SINNERS
down to the last job some time in
May. For many weeks, however,
the White House has known it would
have to depend to far greater de-
gree on private industry than on P.
w. A. to take up the slack in en-
ployment.
The big Spring drive to put 81 ,382.-
100000 in citizens pockets through
public works employment in 1884 is
counted upon to absorb many c. w.
A. workers and many who are not,
but Secretary Ickes has said publicly
that P. W. A. never will take over all
Civil Works employees at any one time.
Secretary Held Responsible.
The Secretary is held responsible
for that situation, in a measure. 1t
Is said that in his determination to
see that no graft or misuse or public
works funds occurs, he has required
such strict accounting from bor-
rowers that many have been slow
to take their commitments or re-
fused them altogether.
Too, numerous corporate bodies
have reached the limit of their bonded
Indebtedness and cannot legally match
p. w. A. funds for which they hold
authorization. Other qualified bor-
rowers for self-liquidating projects
have grown dubious of their paying
ability and declined their loans.
The problem has two possible solu-
tions-reappropriate for c. w. A., or
spur private industry.
Mr.. Roosevelt's answer is the pro-
posed system of credit banks, one
districts They would lend to es-
tablished industrial and commercial
enterprises now stagnated for lack
sent the small business" structure of
the Nation, normally the backbone of
prosperous employment.
big Business" Gets Credit.
big business" with its vast COL
lateral, has been able to get bank
credits fearfully withheld from that
type of enterprise which normally
operates on borrowed capital. That
type of business, however, constitutes
the customary domestic market for
the products of big business or the
capital goods industry,
1t would be the prime function of
the credit banks for industry to lend
funds which small enterprises, require
for the purchase of goods and equip
ment necessary to their resumption
or expansion corporations and hence,
their Unemployment Of labor. Stagna-
ton set In when their normal sources
of credit called their loans to provide
speculative funds during the stock
market boom days and subsequently
when the crash necessitated iquida-
ton Of liabilities.
While G. w. A. employment grad
Hally has been decreasing all along
the line, Frances Perkins, Secretary
of Labor, said in her report for Febru-
airy there had been substantial pick
up in private employment. Harry L.
Hopkins, Relief and Civil Works Ad-
ministrator, said that after C. w. A.
was demobilized he expects urban and
rural jobs to be found for 100000
persons at up to $12 a week in the
cities. He expected to have left at
that time about S600,000000 of the
S950,000,000 appropriated by Congress
for work projects.
Spring Expenditure.
The 1882, 100000 P. w. A. Spring
expenditure for employment is exclu-
sive of statutory and executive allot-
ments Of 81 l,101 900 900 from the orig
inal So, 30O,O00OOO P. w. A. fund.
These latter include: $400,000000
for C. w. A, all spent; S323,00O,O00
for the Civilian Conservation Corps,
partly spent; $1OO,O00,000 for the
Farm Credit Administration; $780,
900, 900 for the Public Works Emer-
gency Housing Corporation; $50,000,-
900 for the Tennessee Valley Author
ity; $25,000000 for Subsistence Home
stead Projects; $25,000,000 for the
Surplus Relief Corporation to retire
submarginal lands from production,
and other items.