Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1935-08-01

Hyde Park, N. Y, and, apparently, all
that he needs to add to his mileage
this summer is a period of compara-
tive calmness in Washington.
IF superficial appearances count for
anything, the administration Is actu-
ally making moves
40 Aeduce designed to reduce
Deficit the federal trea-
sury's deficit. 1t Is
yet too early to tell definitely what the
plans are and administration spokes-
men are strangely quiet about them
but there are certain signs and por-
tents which may be examined In the
effort to 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 o
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 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 will 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 IL months away,
the President told newspaper CORE
spondents that he desired to 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. It
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, 1t 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 allot-
mepts of a public works or improve
ment character may be expected to be
fewer in number. /
The result of this will be, of course,
to hold in the treasury some of the
total of the $5,000,000000 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 1t is reported that other plans
are in the making which will have as
their prospective end 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
Fl. Jones, chairman Of the Reconstruc-
ton Finance corporation. Mr.. Jones
made known that hereafter the RIG
will 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 RIG 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.
I have reported to you previously
how slowly the administration plans
:. for spending the S.
Works-Relief OOO,OOO,OOO works re-
Plans Drag lief fund were pro-
crossing. In connec-
ton with the Hopkins announcement
on relief and the Presidents relief sur
vey order, 1t was disclosed that only
approximately fifteen thousand persons
have been given jobs since the money
was made available. This figure does
not include the additional list of re-
cruits for the Civilian Conservation
corps whose numbers have grown from
100000 to 100000. 1t will be recalled
that provision was made in the $1,000
100000 appropriation resolution for an
increase Of the CCC from 100000 to
100000. Thus, In two months, the
| CCC has had only about one-third of