Evening star., 1934-12-06
MODERATE FISCAL
POLICY FORECAST
Stories of Fabulous Billions
for Public Works Declared
GroundIeSS.
BY DAVID LAWRENCE.

b1 DAVID LhNhENSL.
President Roosevelt has brought
back from Warm Springs number
of decisions on public policy developed
In conference with his executives.
The most important fact revealed
thus far is that the stories of fabulous
billions for public works and relief
are without foundation. The plan
for relief is to put 100000 more
men to work and to do it in much
the same way as the present 2,000,-
900 are occupied in what is known
as work relief.
Out of an expenditure of $780,
100000 a year. it has been found
that the actual difference between
paving people a dole while doing nc
work at all and giving the 100000
persons something to do is about
Sl50,000,000
Problem of Creating Work.
The possibility that it would not
take much more money to put 2,000,-
UUU SOllO W "Ol n Oll
has been canvassed and the question
now is how to create the work.
The Relief Administration here feels
1t has the most expeditions and di-
rect plan and that public works are
slow and ineffective in giving en-
ployment to large numbers of people
What then shall the unemployed
be given to do, The limitation has
been imposed that existing enter
prises and values should, so far as
possible, not be disturbed. But there
are things which can be done and
which do not interfere with existing
projects. Thus there are areas where
people now on relief are paying nc
rent and where the properties are
being abandoned for lack of taxes OF
acquired and dwellings set up which
eventually can bring rental.
Then there is the elimination OF
grade crossings. which, 1t is believed
not only will serve useful purpose
but will bring revenue from the rail-
roads in due time.
The idea of giving people vacant
land and starting them on what are
called subsistence homeSteadS has q
substantial support here.
Plans Soon Ready.
Within few days, details of all the
relief plans will be made available
Also the administration will soon dis
close its fiscal plans. The Treasury
refinancing has apparently been q
success, and this insures sufficient
amount of ready cash for relief pur-
poses.
The presence of Secretary Morgen-
thau at all the Warm Springs confer
ences, where spending dreams were
unfolded, meant that the Treasury
Department would have the final veto.
It is beginning to be apparent that,
no matter what the various members
OF the New Deal say they want to
spend or plan to spend, all expendi-
lures must be approved by the man
who is directly responsible for fnanc-
ing the whole job.
The banks Of the country are CO.
operating splendidly in the financing
because they confidently believe that
the Government will not go far be-
yond its original expenditure plans.
The word that Senator Harrison,
chairman of the Senate Finance Com
nittee, brought back from Warm
Springs as to the probability that
the Government would not spend the
entire nine billions of deficit predicted
last January for the fiscal years 1884
and 1885 was all the reinsurance
needed by the banking world that the
fantastic tales of seven and eight bill
lion dollar projects were really un-
warranted estimates.
Conferences to Be Held.
Between now and the first of the
year Mr.. Roosevelt will have a num-
ber of conferences with members Of
Congress with respect to new legisla-
ton and the country may expect a
fairly conservative statement on fiscal
policy when the budget message Is
sent to Congress.
The most difficult point to decide is
how the Federal Government can
stimulate private spending and thus
increase employment. The relief prob
1e1ll Is acute anu IL ways dIlu HledllS
can be found to put 100000 persons
on made-work, there still remains the
question of primlng the pump of pri-
vate industry SO as to take care OF
those now on relief. 1t is fully ex-
pected that the States and cities will
be able to assume some of the re-
sponsibility for creating work
If 100000 persons are unemployed
and the Federal Government makes
work for 100000 and the States and
cities care for large part of the re-
mainder, the feeling is that the unem-
ployment problem will be we'll on the
way toward temporary stabilization
for it is realized that perhaps 100000
unemployed are living on savings or
with relatives.
The big task, of course, is to find
methods of getting all these persons
absorbed by private industry, and this,
it is generally appreciated now, may
take years to accomplish because of
the fundamental readjustment in eco
nomic life caused by the collapse of
world markets.
(Copyripht 1034)