Evening star., 1937-07-26
by J. RUSSELL YOUNG.

~ NSLLL IOl NJ.
President Roosevelt wants Congress
to hold down the matter of spending
money for new Government buildings,
not only in Washington but elsewhere
throughout the country.
The President wants first to make
sure where the money is coming from
and in the meantime he wants Con-
gress to put soft pedal on this
form Of spending.
This viewpoint Of the President was
made clear today to Representative
Woodrum. Democrat. Of Virginia,
member of the House Appropriations
Committee, during a conference at the
White House Mr. Woodrum said that
he would carry the Presidents ideas
back 10 Capitol Hill He was of the
opinion that Congress will endeavor to
postpone making appropriations for
new buildings except where 1t IS
thought that the new buildings are ab-
solutely necessary.
The Virginia Representative said
that appropriations for the public
building program for the next year
were to be provided for in the third
deficiency bill which is being prepared
by the Appropriations Committee and
which will be passed within a few days.
New War Building Doomed
According TO Woodrum. the policy
outlined by the President will mean
that the proposed Thomas Jefferson
memorial, which was 10 have been
erected on the south side of the Tidal
Basin, will be postponed indefinitely.
as will the new home for the War
Department. which it was claimed
would cost about $4,000 600.
The general building program vas
gone over by the President and Rep
resentative Woodrum during their
conference today. and it was not de-
termined whether or not the proposed
building to house the Social Security
Board. which has such a tremendous
office force, could be postponed.
At any rate besides the jefferson
Memorial and the new home for the
War Department. any number of post
Offices and other Federal buildings
proposed for various parts of the
United States Will be sidetracked until
the time the President feels that the
Government has the money to spend
and can afford to spend it for these
purposes.
This proposed retrenchment is in
line with the Presidents announced
determination to save money wherever
possible with view 10 bringing about
balanced budget within the next
year or so.
Reaction Unpredictable.
Representative Woodrum, who was
| selected by the President to carry
| the message of retrenchment to the
| Capitol. intimated that he was heart
| lily with the Presidents policy. but
that he was unable to say Just what
| the ultimate action would be in Con-
greSs.
The Associated Press reported
meanwhile that fiscal officials were
passing the word that the President
may instruct Government credit
agencies to tighten their lending and
collection policies IN an effort to bal
anCe the budget this fiscal year
This move, they said would supple
ment the administration announced
program to curtail expenditures.
Mr.. Roosevelt already has asked de-
partment heads to impound 10 per cent
of many appropriations. officials ex-
pressed belief that this order. plus in
creased receipts from credit agencies.
will materially reduce or eliminate the
$418,0OO,00O deficit forecast for this
fiscal year.
They said that the Reconstruction
Finance Corp. and similar agencies
could improve the fiscal picture by
restricting lending policies. by declin-
| ing to grant extensions of outstanding
loans and by liquidating assets.
Best Loans Already Liquidated.
These persons added, however. that
it may be difficult for some agencies
to increase receipts appreciably be-
cause many of their best loans al.
ready have been liquidated
The R. F. c., for instance, has
collected s4,640,OS6, 900, or II per
cent of all loans other than those
to governmental agencies. Railroads
now have replaced banks as the big
gest R. F. c. debtors, owing 1884,
800 .000.
Thus far this fiscal year, repay
ments to lending agencies have fallen
short Of last year. Since July l
collections have exceeded outlays by
only sl7.O87,0 900, compared with a
s204 066.000 excess of collections in
the corresponding period last year.
A $75,000,000 decline in direct
spending for recovery and relief"
has been offset partially by s55.-
100000 increase in expenditures for
ordinary government operations.
The deficit already has reached
s194, $4,000, compared with s62,-
$4,000 in the same period year ago.