Evening star., 1935-11-14
H. 0. |. c. QUOTES
WASHINGTON PLEA
Name of First President
Invoked to Support
New Deal Law.
10 ths Axsoeiated Press.


The name of George Washington
has been invoked to support a New
Deal law facing Supreme Court test.
The home owners loan act Of 1888
a the law, and in its behalf Govern
ment lawyers have cited the general
welfare" clause of the Constitution.
They said in a brief yesterday that
Washington suggested in 1895 that
Congress spend Federal funds to laid
Agriculture" and establish "a national
university" If the welfare clause were
interpreted narrowly, the lawyers con-
tended, both of Washington's projects
would have been unconstitutional.
The clause authorizes Congress to
tax and spend "for the common de-
fense and general welfare of the
United States"
Ask Broad Interpretation.
Defending the loan law from charges
that it is an invasion of States rights
and beyond the limits of the Consti-
tuition, the New Deal men asked the
court for broad Interpretation of the
welfare clause. They said congress
sional powers under it never had been
defined by the tribunal.
1t is known the New Deal hopes to
base its defense of A. A. A., T. v. A.,
p. w. A. and other experiments largely
on this clause.
Asserting $4,000, 100000 was in
volved by collapse of the home mort
gage field after 1929. the Government
argued the home loan act and its
agencies were within the power of
Congress to control the national credit.
Started by Wisconsin Dispute.
Actually, the Government is not a
direct party in the H. o. L. c. case, but
entered as friend Of the court" It
started in a dispute between Wiscon-
sin State officials and three building
and loan associations in Milwaukee.
The latter voted to become Federal
units under the home loan act, but
State officials refused to release con-
troll because they we're chartered un-
der Wisconsin laws.
The Wisconsin State Supreme Court
upheld the State officials and found
unconstitutional the section Of the
home loan act which authorized this
shift to Federal control.
Argue Tax Power Not Limited.
The government lawyers argued yes
terday that the taxing and spending
power of Congress is not limited or re-
stricted by its other specified powers"
enumerated in the Constitution.
In support of this they listed three
considerations of decisive weight:
First: The broad term would not
have been used If q liberal construction
had not been intended by the trainers
Of the Constitution.
Second: That this construction is
given weighty support by those who
assisted in framing and adopting the
Constitution and their contemporaries" :"
Finally, this view sis supported by
uniform and long continued legislative
acts of Congress.
"Wide Range Of Discretion"
They also contended that IF Con-
gress is entitled to apply the public
money for the general welfare of the
United States, it necessarily has wide
range Of discretion with respect to the
objects to be selected"
In defense Of the home loan act
the Federal advocates noted that Con-
gress old not attempt to supply houses
for the citizens of the country In COM
petition with private enterprises or to
give direct grants or subsidies to those
desiring homes"
Instead. the Government lawyers
said, the act "contemplates encourage
ment of home owning by means of
savings and thrift-a program which
B completely consistent with the Amer
lean traditions Of economic independ-
ence and self-reliance"