Evening star., 1934-09-16
BY OWEN L. SCOTT.

About due for the discard-unless
1t begins soon to show better results
is a favorite depression theory. The
theory is that the Federal Govern
ment can spend the Nation out of its
depression. and into prosperity by
printing the pump of industrial ac-
tivity. After a year Of trial this the
ory Is coming in for the most critical
official attention. 1t is not standing
up so well under analysis.
Instead, a carefully selected special
"brain trust" sponsored by Henry
Morgenthau. jr., Secretary of the
Treasury, is deeply engaged devising
new ways of extracting more money
from the taxpayers to pay a bigger
part of the bill. The money has been
spent or obligated for spending and
must be provided either through taxes
or borrowing. But the results to show
for its spending are considered
meager, in view of promises and ex-
pectations.
The idea back of the spending pro-
gram had been that the Government
could pour money into vast projects
of public works speedily enough and
in large enough volume to create a
large number of jobs, build up ex-
cess bank reserves and stimulate de-
mand for steel and lumber and ce-
ment and other products OF de-
pressed industries.
X X X \
Sold on the idea, Congress appro-
priated $4,000 100000 for pump
priming. Naturally, with such a
huge fund there was delay in getting
the plan under way. The number OF
jobs created was disappointingly
small and the rate of spending dis
tressingly slow during the first
months. That led last November to
creation of the Civil Works Admin
istration as a stop gap. G. w. A.
was to fill in until P. w. A. could
get under full steam in the Spring.
But civil works turned out to be a
regular spillway for money. A bill
lion dollars went out in five months,
causing much worry because OF its
excess volume as P. w. A. had caused
because of its lack of volume.
President Roosevelt and other Of
ficials explained last Spring that
civil works was being ended in the
expectation that public works would
come forward to fill its place as a
job creator and pump primer. The
talk all along had been of a million
or two million jobs, which in turn
would lead to other millions OF jobs
as the needs of the re-employed were
met.
But now, nearly six months later,
Donald Richberg, executive secretary
of the Executive Council, has re-
ported to the President concerning
the accomplishments of P. w. A.
His report is intended to put the best
possible construction on the job
creating results of the So 300, 900, 900
fund. 1t says:
"Employment increased on P. w. A.
projects from zero to 250,000 directly
at work on construction sites by De-
cember /, 1888. This figure was sub
stantially maintained through the
Winter until the end of March and
has since increased to 675,000 men.
Employment is estimated to be nearly
at the peak, with the prospect of an
average Of 100000 men on pay rolls
in September, gradual decline
through october and seasonal de-
cline which will probably carry the
level of employment down to about
100000 men through December, jan
uary and February, rising to about
450, 900 or 100000 by June, 1885.
1T is estimated that 80 per cent of
all P. w. A. allotments have been
spent and about 28.8 per cent of
the man-hours required to complete
all projects under the original ap-
preparation have been used up as of
August /, and that one-half Of the
man-hours and one-half of the money
provided through the original appro-
priation will be used by the end of
1884"
In other words, he estimates that
the expenditure Of a billion and a
half dollars by the Federal Govern
ment will create directly maximum
of 100000 jobs. Indirectly, more
jobs have been created in steel mills
and lumber mills and other indus
tries supplying public works, but still
the number Is far from the expected
millions.
X X X
And, strangely, just when the pub
lie works jobs and the public works
expenditures are reaching their max
imums, the Department of Labor
joins with the A. F. of L. and the In
duStrial Conference Board in report
ing a sharp rise in industrial unem-
ployment. Increased expenditure is
accompanied by an increase in the
number of jobless. Mr.. Richberg has
reported to President Roosevelt that
5000 900 families-a new high total
will be dependent on the Government
for relief during the coming Winter.
The -cast-of caring for these families
In September will be $l32,o0o, 900. ac-
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