Milford chronicle., 1936-01-31
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Another momentous decision is
shaping up in Washington which
may 80 a long way toward deter
minging If, and how soon, the de-
preston really win be over.
It reVolves around problems Of
the sO-called heavy" industries,
which are potent factor in estab-
fishing the extent Of the nations
prosperity.
Since 1880, many attempts have
been made to stimulate these indus
tries. At the same time, though, un-
certainty about the legislative fu-
/ ture, federal expenditures, high
I taxes, government competition, and
increasing costs, the industrialists
say, have nullified such efforts.
The Washington big-Wigs now are
approaching a choice between two
methods Of action concerning the
basic heavy industry -construc-
tion. One method would be a S1,OOO,-
100000 federal expenditure on hous-
ing, which actually would amount to
further government competition and
bring higher taxes. The other would
seek to stimulate the use of private
capital, now available in satisfac-
tory quantities, for construction
through privately financed chan
nels.
Reports gaining strength daily are |
that the latter method finally will /
be approved by the administration
and Congress.
In capital corridors and Offices
the importance Of the decision is
being emphasized. Out of the total
now jobless, nearly one-third-mOre
than 2,500,OO0-normally would be
at work in the construction indus
try. But they are still out of jobs
despite the billions that have been
spent on public works. Construction
as a whole is only about % per cent
higher than last year, when it sank
to a new low; private construction
is less than per cent higher.
Putting these 100000 to work
on construction means much more
than just providing 2,500,000 jobs.
It means stimulating other basic in
dustries which manufacture or pro-
cess the materials which are used in
construction; it means more rail-
road trafic. In brief, it means the
indirect unemployment of perhaps
2 100000 more workers with a cor
jump in national in
come and purchasing power.
The plan to spend $1,000, ,OOO.OOO I
on federal housing projects is back
ed jointly by Senator Wagner Of
New York and Secretary Iekes. Al
though many others in the admins
tration express frank dissatisfac-
ton with the number Of jobs Great
ed by artificial pump printing en- 9
deavors, these two still advocate i
the same plan. G
Among those who oppose the
scheme is Peter
a former president of the J
New York real estate board who G
now works for the Treasury. Those 9
who approve his ideas say they are I
sound and that as a man who is
familiar with real estates problems
practical experience he
knows whereof he speaks.
Among other things. Grimm wants
to push establishment of the Ma e
.ional Mortgage Associations made c
possible under the Federal Housing v
Act. Already, conversations have t
been had with New York fnanciers b
IN the subject. Briefly, a National
Mortgage Association with S2,0O0,- s
700 in capital could issue $4,OOO,OOO f
n debentures and acquire mort [
cages from various lending institu- o
ions which in turn could finance b
more mortgages. S
The chief difficulty with that plan, 4
t is reported, is the reluctance of il
to finance associations Il
which later might have to meet out
light federal competition, Grimm is h
attempting 10 reassure them. v