Evening star., 1934-12-04
Spending and Financing Plans.

The Presidents conferences al Warm
Springs with his principal advisers
are apparently being devoted in the
main. to discussion Of the new work.
relief plans for which he is expected
to ask congressional approval al the
next session. When the President re-
turns 10 Washington the latter part OF
the week he will have little less than
A month in which to incorporate these
plans in his annual budget meASase
and in his annual message on the
state of the Nation He will preslm-
ably touch on the plans in both mes
sages. for they concern financing, with
its effect on the budget. together With
new legislation to supplant or TO SON.
tinue the Public Works Administration
There has been increasing discussion
Of the deSirabllity OF change in the
relief system II Mr. ICkra occasional
statements have represented the ad-
miniStratiOn'S as We'll as MS own
views on relief. more emphasis than
ever is to be placed on Governments
financed work AS the alternative to
continuing the system Of doles under
the Federal Emergency Relief Admin
iStratiOn, although The latter cannot,
Of course be abandoned al once.
Mr.. IckeS is more strongly inclined
than ever to a greater public works
program. with estimates of the cost
running high into the billions. The
correspondents yesterday quoted him
as making the significant observation
that the first allotment of So 300 .O0O,-
900 for public works fell short of
anticipations because so much of it
was diverted to other purposes, such
as the ship building program for the
Navy. In speaking of the money
available for public works. Mr.. Ickes
was quoted as saying. You couldn't
expect sums like that to do the lob
We had planned for" pointing out that
there was not enough money avail
able, with too much uncertainty about
the continuity of the public works
program.
Mr.. IckeS spoke again yesterday Of
the desirablity of a low-cost, slum
clearance program which, he said.
could be under way in sixty days after
authorization. He revealed that his
lawyers are working on statute, the
effect OF which would be to pay
damages for land confiScated for Coy
ernment use after. and not before. the
taking of the land. Acquisition of
land has been the chief retarding
factor in the Slum-c clearance work
already undertaken. He also sue-
gested that special taNes might be
resorted to in the financing of such
projects as widespread grade-crossine
elimination.
Discussion of new spending pro-
viii be accompanied by plans for
financing. Business groups, such as
the Chamber OF Commerce and the
National Association of Manufac-
turers, continue to stress stability in
tHJ FtNo
ancing, as one of The keystones OF re-
covery. The TreaSury's December
financing will increase the public
debt, which reached the highest mark
on record $25, 70l .487.9l9- the end
of November. by about 5000 900 900.
In its recovery program, just an
nounced, the National Association Of
Manufacturers declares that stability
cannot be achieved, recovery cannot
be attained, by piling deficit on deficit
and pyramiding new debts on old"
Along with whatever new recovery
plans, or relief plans. the President
presents to Congress. equal interest
will attach TO his discussion of Coy
ernment financing in relation to
emergency spending. Senator Harri-
son and others have discounted the
possibility of new revenue-raising
legislation at the next session. In its
absence, what is to be the proposed
alternative?