Evening star., 1934-10-28
Many Plans Are Now Shaping
For Second Phase of New Deal

group Of foreign specialists reported
that they saw an incipient building
boom and suggested that the Govern
ment shape its plans to act ahead Of
the spectators.
The President is pictured as having
taken note of these Developments.
With the coming of Congress he will
be prepared to act. That action
would take the form Of a request for
authority to utilize Federal credit in
a big way to encourage construction.
thereby creating jobs. The use of
that credit could take the following
forms:
/. Sium clearance in cities, which
Harold Ickes. administrator Of Pub
lie Works, thinks can be expanded
quickly to absorb from 81 SOC, 900 900
to $4,000 900 900. Repayment would
come through rentals.
2. Construction Of q large number
of subsistence villages out in the
country. where people on relief rolls
could be placed In q home and pos.
sibly a job. The first of these vii
81 400 to $1,000 per home, including
land. Work Is done by those receiv-
ing relief. These homes then are sold
on a time repayment basis.
3. Creation Of subsistence home
steads for groups Of people not on
relief rolls, but stranded. Several of
these homesteads are nearing compile
ton. They are to be tied in with
plans to induce industry to establish
branch factories out in the country.
4. Elimination of grade crossings on
railroads, with work done by those at
present unemployed. and financed
with Government credit. Part OF
this cost would then be repaid grad
ually by the railroads.
5. Added pressure to the home re-
pair program, which already Is be-
ginning to click. Thousands Of loans
have been made and by next Summer
the volume is expected to reach big
figures. Jobs grow quickly In this
field.
6. Speed in shaping up the plan ap-
proved by Congress for Federal guar
anty Of mortgages on homes. This
involves a change in mortgage prac-
tice and opens the way to cheaper
credit for home building.
II r y
New Deal officials feel that the
stumbling block to private construc-
tion-with the result that 100000
unemployed are massed In that in
dustry-has been the high cost OF
building. Present plans call for cut
ting those costs. Government credit
would be utilized to reduce financing
costs. Changes in N. r. A. policy
would be applied to bring down
building material costs. A new ap-
proach is to be projected to adjust
downward wage costs. This new ap-
proach calls for an agreement with
labor unions to consider income on
the basis of a month or year in
stead of an hour. Construction COM
panies might be induced to guarantee
employment to building trade labor
for a specified term at an hourly rate
of wages much under that now pre-
vailing. Attention Is being centered
on that effort.
The vast building program, now
taking shape. will offer Congress one
diversion. It will concern jobs to get
unemployed OF relief rolls. Another
diversion Is to be provided by the
coming report of the Committee on
Social Security. That committee. Sc
lected by the President, expects to
have plans for old-age pensions ana
for unemployment reserves.
The study now being made breaks
down the unemployment totals. Many
listed as unemployed today are un-
employable-they are too old, or Grip
pied, or temperamentally unsuited to
work. Others are part-time workers,
who have a job few weeks or months
each year.
For those beyond normal working
years the Government now expects to
encourage pensions. Several States
now have old-age pensions. Federal
subsidy viii bring others into line.
Action by Congress in this field Is re-
garded as certain, owing to the in
creased agitation. As for unemploy-
ment insurance, the situation Is dff-
ferent. The pressure for immediate
action is not so great. But . plan
Is to be offered Congress and debate
is expected to be loud and long. That
will offer the second diversion.
The third is In the field Of planned
use Of natural resources. The Nat
ural Resources Board is now shaping
up its report. This report, according
to reliable information, will recon-
mend that other Government authori-
ties, similar to that in the Tennessee
Valley, be created by Congress to de-
velop waterpower. build up co-opera-
tive marketing and encourage di-
versiflcation Of industry. A yearly
expenditure Of between 100000, 900
and $500, o,0o0, 900 has been mentioned
by President Roosevelt as one that
could be made profitably in this field.
With its mind on those matters,
and on the future Of the N. r. A.
the A. A. A., and on complicated
state Of national finances, Congress,
1t is thought, VIII have less occasion
to experiment with its own recovery
Nlane