Evening star., 1934-05-30
SMALL BUSINESS
LOAN BILL LAUDED
Senator Adams Says Meas.
ure Is Conceived in
Good Cause.

The necessity for pending legiSla-
tion for Government loans to industry
was explained last night by Senator
Adams, Democrat, of Colorado in an
address In the National Radio Forum,
sponsored by The Star and broadcast
over a coast-to- coast network of the
National Broadcasting Co.
The measure, known as the Glass
bill, and now in conference, vests this
lending power in the Federal Reserve
Banks and the Reconstruction FL
nance Committee. and is designed.
the speaker explained. to help small
commercial and industrial businesses.
which formerly we're able to look to
the banks for assistance.
This source is closed now. Senator
Adams said, because decrease In de-
posits has limited the cash available
for such advances. and loans must be
for long term and the recent bank
panic taught the banks that their
loans should not be in long time, but
in short-time paper, in order that
they might be able to pay promptly
their depositors should they call for
their money
Senator Adams said the wisdom
and soundness" of the plan still are
to be proven, but that it has been
conceived in a good cause" inasmuch
as it is another attack on unemploy-
ment.
Text of Address.
The text of the speech follows:
Whether we regard unemployment
As a cause or as a consequence OF
the depression, we must admit that
If employment at a living wage can
be provided for our great army OF
unemployed, the depression would
vanish.
Therefore, any measure which
promises to give substantial employ
ment to men now unemployed. is en-
titled to careful consideration, and,
If sound. to adoption. The present
administration has devoted its best
thought. its utmost strength to efforts
to relieve the country from the de-
preston 1t has caused to be en-
acted a series of measures of great
importance and far-reaching effect,
and has put them into operation with
vigor and enthusiasm. 1t has made
most liberal use of its financial pow
ers and resources. Many men IN
public life have surrendered the con-
victions of a lifetime as to the proper
functions of government in order to
aid and support all of the measures
of the recovery program. The evl-
dence is conclusive that great head
way has already been made in over
coming the depression, and a marked
forward advance has been made to-
ward recovery. We still have, how
ever, long distance to go. In this
vast recovery program. immense sums
have been expended in aid OF agricul-
ture, very large sums have been
loaned and given to towns and cities
and other public corporations for pub
lie works; drainage, irrigation and
other similar agencies have been
helped to refinance their obligations.
Through loans, and the purchase of
preferred stock, relief to great
amount has been extended to rail-
roads, insurance companies and banks.
Mortgage Aid.
A very extensive and elaborate pro-
gram, involving loans of several bill
lions Of dollars. was put into effect
for the refinancing of farm indebted
neSSeS. and similar great program
Tor the refinancing of the mortgages
upon the homes of the land was also
inaugurated and carried forward with
most beneficial results There is also
under consideration a program of
great importance contained within
what is designated as the national
housing act.
In taking general view of what
has been done, and what needs to be
done. it became evident to various far
sighted men, both within and without
the Government organizations, that
one OF the most important fields
which has a very direct influence
upon employment had received no
help. The smaller industrial and
commercial businesses of the coun-
try, upon which a very large proper
tion of the workmen of the land de-
pend for employment, were not in
cluded within the direct scope of
any of the various relief and recovery
programs. These smaller industries
and businesses find it far more diff
cult to borrow to enable them to oper-
ate than the greater industries and
businesses.
Loaning Capacity Drops.
In the past, these smaller industries