Carolina watchman. [volume] (Salisbury, N.C.) 1871-1937, 1934-12-14
11E !
N@iS{1!:
The Building Program
Reason of Uncertainty
The Relief Outlook
Legislature Trends

ministrator Jim Moffett and PWA
Administrator Harold Ickes, but the
whole matter is in such a tangled
mess hat it is beginning to look
as if more entirely new set-up, to
cover the entire Governmental
scheme of stimulating building in
|dustry, will have to be devised.
The return to the Presidential
councils of Frank C. Walker, who
was the original sponsor of the
FILA plan to induce private capital
to put money into building repairs
and construction, by guaranteeing
investors against loss, was followed
by limitations that perhaps the
whole future system of Federal
stimulation of business might be
worked out on a similar plan.
Some of the Presidents closest
advisers do not yet understand thst
the reason why credit for business
is not available from the banks is
not unwillingness of the banks to
lend but to make profitable use of
money to borrow, so long as I'M
certainties of Government policy
obscure the clear view ahead.
But the realization hat this is
the case is gaining ground, and
consideration is being given to
measures which would amount to a
guarantee against loss to any COM
petent person who is willing to take
business risks with borrowed
money, as well as guaranteeing the
lender against loss.
That would lend, it is believed, to
enable men and corporations of
proved business ability to go ahead
with great enterprises, of which
there are many ION ice" waiting for
the go-ahead sign from Washington.
Any such program will have to
wait for Congressional action. So
will any such huge appropriation as
Secretry Ickes wants for home
building for the very poor who are
unable to finance any part of the
initial cost of a residence or a sub
sistence homestead. Congress will
not meet until January 3. 1t will
take it a week or two to get Or
ganized. There is little Likelihood
of any important major legislation
getting through the new Congress
much before March. Therefore,
whatever plan is adopted to set the
unemployed building trade workers
at work in large numbers can hardly
get under way until we'll along in
the Spring.
Meantime, Relief Administrator
Harry Hopkins, who is enthusiastic
cally for the Ickes idea of great
public appropriations to build new
rural or semi-rural communities and
sell subsistence tracts to the unem-
ployed on no down payment, while
providing work in new industries
set up in such communities by Fed
eral subsidy, is facing a hard Win
ter. The number on the relief rolls
all over the nation is steadily grow
ing, and is expected to reach five
million heads of families by the
first of the year.
So far, Federal efforts to force the
states and localities to carry a larger
share of the burden have not been
very effective, but Mr.. Hopkins is
hopeful that this can be done, and
that in a couple of years or so the
Federal government will not have
any direct relief to administer, and
the states will have to take care of
only the unemployable.
Your correspondent can state
with confidence that the President
is heartily in accord with Mr.. Hop
kins, also with Mr.. Ickes and Mr..
Mofett. The President agrees with
all of those who maintain that the
housing program is the biggest item
in the whole recovery plan, since
by far the greatest proportion of
unemployment is in the building
trades. He is inclined to be a triAe
impatient with MI. Moffett for not
having got his organization working
faster, but Secretary of the Treasury
Morgenthau takes a strong stand
in Mr.. Moffett's behalf.
The one definite thing about this
whole situation seems to be that
the new Congress, as soon as it is
organized, will receive from the Ad-
ministration a board plan for eli
minating all relief payments which
do not call for actual, real con-
I~ctrrctive ond innor+,o+ u,ork