The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-08-01

effort 10 determine which way the gov
eminent Is headed in respect of the
gigantic expenditures for public works,
relief, and general government costs.
While congressional committees con-
tinue TO examine tax questions with a
view to enactment Of legislation that
will increase federal revenue, the Pres
ident and his advisers have taken steps
TO cut down the drain on the treasury.
The first and probably the most i'm
portant of these moves is the an
nouncement that on November l fed
eral aid to those people unable to work
will cease definitely. Relief Admins
traitor Hopkins announced after a con-
ference with the President that the
relief policy viii be changed on No
vember 1 and that the various states.
counties, and municipalities will be
expected after that date to look after
that segment Of the population known
as the unemployables. These are peo-
pie who for one reason or another
cannot earn their own living by work.
Previously Mr.. Roosevelt had direct
ed his fiscal advisers TO make a thor
ough study of relief requirements for
the fiscal year beginning July 1, 1886.
While this is almost II months away,
the President told newspaper CORE
spOndents that he desired 10 know as
early as possible what the burden of
relief would be in the future. His an
nouncement was interpreted as having
a connection with budget requirements
and prospective revenue under the pro-
posed new tax legislation.
Earlier, Public Works Administrator
Ickes had made known that the pro-
gram of public works expenditures for
improvement of the Mississippi valley
and its rivers had been abandoned. 1t
will be recalled that the National Re
sources board had recommended ex-
tensive improvements TO be carried out
from public works funds in the hands
Of the public works administrator.
These involve vast sums. Now, it is
made TO appear that the PWA and the
administration have in mind some
restraint on expenditures of that char
acter and that hereafter gigantic aIlot-
ments Of a public works or improve
ment character may be expected TO be
fewer in number.
The result of this viii be, of course,
TO hold in the treasury some of the
total of the S5,OOO,OO0000 public works
appropriation.
Reduction Of the outgo for direct re-
lief necessarily will be reflected in the
remainder of the public works-relief
fund and ii is reported that other plans
are in the making which will have as
their prospective end a restoration to
private employment of greater numbers
of idle workers than heretofore have
been contemplated.
Then, as another indication of ad-
ministratiOn intention TO restore funds
TO the treasury and thus reduce the
difference between income and ex-
penses was an announcement by Jesse
II. Jones. chairman Of the Reconsruc-
ton Finance corporation. Mr.. Jones
made known that hereafter the RFC
viii not make loans to banks. He de-
clared that the banking structure was
in an excellent condition and that
further aid was not required.
The fact which Mr.. Jones did not
mention in his announcement is, how
ever, that the banks are exhibiting no
particular desire TO borrow from the
federal government. The RFC already
holds preferred stock in almost half
of the banks in the country and these
banks, according to RFC records, are
liquidating their obligations as rapidly
as they can do so. This is significant.
1t means that the banks desire to get
out from under federal influence. Thus
ii is made to appear that the RFC did
not cease making loans until it found
there was no particular demand for its
money.
Nevertheless the action of the RFC
and the steady procession of repay
ments coming in TO RFC means the
retirement Of certain outstanding gov
ernment-guaranteed obligations. This
ultimately viii have the effect of add
ing cash TO the balance in the treasury
and as that balance increases there is
an obvious reduction of the deficit.
/ have reported to you previously
how slowly the administration plans
for spending the So
Works-ReIief 600 600 600 -.