The Western news. [volume] (Libby, Mont.) 1933-current, 1934-02-15
SEEM and HEARD
around the
National Capital
BY CARTER FIELDi

hand know what your left foot Is do
ing. President Roosevelt's variation OF
the Biblical injunction to boosters
ABOUT advertising their charities, Is
beautifully exemplfied In the ma
neuverings of several of the govern
mental agencies charged with the re-
sponsibility of dishing out government
money through private channels
For example. the rivalry between
the Reconstruction Finance corpora
ton and the Public Works administra-
ton as to which shall be apparently
holding the bag when a project goes
up In smoke. with a resulting loss to
The government; or. the RFC and
the Treasury department In the mat
ter OF banks qualifying under the de-
posit Insurance law: or, every other
case where two different governmental
agencies are supposed to be aiding
the same private enterprise.
The most amusing instances, to OUT
siders, are those with reference to the
refinanclng OF drainage, levee and irri-
CATION districts. Under the emergency
farm mortgage act of 1888, the RFC
was directed by congress to refnance
such districts to the extent of $780,
100000. The RFC to date has made
loans under this authorization of $685.
259,30214.
But the interesting part Is the rea-
son why the REC has not done more.
1t has turned down great many
loans where, In Its Judgment, there
was not adequate security, but sug-
gested that II the district were able to
get loan from the PWA first, then
the RFC might advance the additional
| funds asked.
The RFC. In short, wanted some
other government money to be put
| In ahead Of that earmarked for use
by 1t. II the PWA would, by spending
certain amount on the district, make
the proposed RFC loan better risk,
then Rf'C wUufd be glad to cooperate
Sometimes Greek meets Greek-re-
financing by the RFC OF rundown
district Is contingent upon approval
by PWA Of work loan, while the
PWA work loan toJhe district Is con-
tingent upon ref1nahclng by the RFC.
Two-Sided Battle
1t Is not quite as Wonder
landish as the Department OF Agricul-
lures paying farmers to pillow under
crops on farm land, while the Interior
department speeds the bringing OF wa
ter to fertile land, which will increase
production but 1t approaches 1t.
However, Uncle Sam has not thrown
all precautions to the winds. For in
stance. In many OF these projects
which RFC and PWA are considering
financing, some of the original money
was put up by another governmental
agency. the bureau OF reclamation In
the Department Of the Interior.
When the details of the terms for
new financing were made public, 1t ap-
peared that RFC would insist that all
outstanding bonds and other debts Of
the various projects would have to be
scaled down before the new govern
ment money would be forthcoming.
So for little while 1t appeared
that the RFC and PWA would insist
that their older brother In govern
mental subsidies be required to take
loss In advance, so to speak--aside
entirely from the probability Of all the
governmental agencies involved TAX
Ing loss later on.
But no. That would be too much.
Who vetoed 1t Is not known, as this Is
written. But 1t was vetoed. 1t WIS
made known that all other creditors
would have to scale down their bond
holdings, or what nots, but the bonds
or certificates of Indebtedness held by
the government would be held at par
The government only hopes that
these reclamation bonds will be repaid
at the end Of forty years. Actual
ly, OF course, nobody who has watched
the wheels 60 round on Capitol Hill
really expected them ever to be paid
the practice being to defer payment
by special congressional action every
so often.
But at least there will be no three
cornered Juggling to see who will hold
the bag. 1t Will be maintained as
two-sided battle. and may the best
negotiator win.
Wallace Is Irked
Secretary of Agriculture Wallace
has almost reached the point OF an
nouncIng that the government Will go
into the milk distributing business In
certain sections. He Is just about at
the end of his rope In dealing with
the various dairy companies, referring
to companies which buy milk from
the farmers and sell Ii to city GUS
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