Evening star., 1935-01-01
INVESTORS WATCH
RELIEF PROGRESS
Presidents Message May
Cause Brief Pause in
Big Markets.
BY CHARLES F. SPEARE.

NEW YORK, January 1.-The form
Of sentiment that prompts men to
speculate in stocks or in commodities,
to invest in Government or municipal
bonds or in corporation issues and in
real estate will be increased or retard-
ed by the messages President Roose-
welt brings directly to the Congress,
and, through it, to the American
public.
Consequently, with so many vital
subjects to be actively reopened for
debate. there is likely to be brief
pause in markets and in business fol-
lowing the conclusion of the largest
turnover in the retail holiday trade
in years.
The focus of the public mind is to-
day on the question of relief. A year
ago it was on the currency. In other
words. at the end of 1893 the country
was concerned with the prospect Of
imitation during 1884. While initiation
and Government spending to promote
relief cannot be entirely separated,
sthe direct method of accomplishing
rise in commodity prices by the
processes advocated in the Thomas
program are not now a part of the
administration program. Twelve
months ago it was feared that they
would soon be made effective.
Swing Toward Dole.
It is significant, too, that in less
than a year the social philosophy of
ind trin Loo Of fl,a l.,
swung toward the dole" and away
from work relief. For a long time
after the effects of the 1929 crash
began to be apparent, the British form
of aiding the unemployed was de-
Scribed as something the American
people would not tolerate. To put
men and women ION the dole" was
unthinkable. But the Committee of
10 at White Sulphur Springs made
1t apparent that this is the method
1t now recommends rather than the
expensive and budget disturbing way
OF aiding the unemployed by work
that is neither lf-liquidating nor
productive.
The unknown quantity in the
immediate situation is the proposed
size of the relief and public works
appropriation. The figure generally
mentioned in Washington is S5.00O,-
100000 to cover the requirements for
the remainder of the fiscal year to
June 80, 1885. and for the twelve
months to June 80, 1886 In the
fiscal year ended June 80, 1884, the
budget provided for S1,677, 100000 for
the P. w. A., and for the fiscal year
to June 80, 1885, for Sl.089 ,000,0 900.
The trouble in both periods has been
to create sufficient work to absorb the
appropriation. This is also problem
likely to plague the administration
when 1t comes to deal with sum
nearly twice as large as it has had at
its disposal heretofore.
Programs Weak Feature.
The weak feature of the Govern
ment financial program, as seen by
those who keep in close touch with it,
is the continued dependence of the
Treasury on the banks as buyers of
all new loans. No appeal has been
made by it to the public to subscribe
to these loans. 1t is doubtful if, in
the increase of S4,60O,000,000 in the
Government debt in the past year,
the public has directly been a
purchaser Of 10 per cent of the new
direct Treasury issues.
A bolder policy of attracting the
attention of the private investor to
new long-tern Treasury issues is one
of the suggestions offered by bankers
to the administration. This could
better be done now than year ago,
for, in the meantime, interest rates
on all commercial bank time deposits
and on savings bank deposits have
either been reduced voluntarily to
212 per cent or so ordered by Federal
Reserve Board, the F. D. I. C. or State
Banking Commissions 1t is not i'm
probable that the rate will later be
cut to per cent. On bank balances
no interest is being paid.
Therefore, a 3l4 per cent 1920
year U. S. Treasury bond should
appeal to the American investor His
aid will be required if the administra-
ton successfully floats additional
relief loans in the next 18 months
to the amount of $5,000000, 1000.
(Copyright, 1887