Evening star., 1938-06-29
DEPRESSION DRIVE
NEAR TOP SPEED
Roosevelt Says Momentum
Will Reach Height by
July /.
BY the Associated Press.

~ the Associated Press.
HYDE PARK, N. Y, June 49,
President Roosevelt gave the Nation
assurance today that the big Federal
drive on depression would reach full
momentum by July l..
At the same time, the President said,
this country still is searching for .
permanent solution of the unemploy-
ment problem-a solution that will
not involve big expenditures for arm
aments.
Mr.. Roosevelt, discussing relief OBJ
jectives at press conference late yes
terday, said one matter under study
was how Sweden was able to pay of
the cost Of public works relief pro-
gram, instituted during bad years,
with funds accruing during more pros
porous times.
Compares With U. S. Record.
The President compared that Scan
dinavian country's success in paying
off works debts with the United States,
which he noted did not rid itself in
the comparatively good business years
OF l936-37 of the cost of lending and
spending programs in 1933-34-35.
In the present $3,750,000, CAM
palgn to aid economic conditions in
general, Mr. Roosevelt said all Federal
agencies involved were pushing toward
top speed by the first of the month.
The Public Works Administration, he
asserted, was going ahead as fast as it
could. Works Progress Administration
would have as many as possible Of its
recently authorized 100000 new work.
ers enrolled by that time, and the Civil
ian Conservation Corps was nearing
its 350,000 full strength. Other agen-
cles with lesser programs were hitting
fast pace, too he added.
Arms Held No Solution.
Describing unemployment as a con-
tinuing problem, the Chief Executive
said no country has developed per-
manent solution of it. The only SEEM
ingly 100 per cent solution of keeping
all employables at work all the time,
he added, was to pile up ornaments.
That, Mr.. Roosevelt declared, is no
permanent solution because it involves
the manufacture of goods which do not
reproduce wealth.
The President, who was busy today
writing two speeches to be delivered
in New York City tomorrow, said the
wages and hours bill which became law
Saturday was the most important act
of Congress during the last two or
three years, with perhaps the excep-
tion Of the social security act.
Swedes Can't Forget Debt.
Financial experts said today the
Swedish system of paying for depres-
sion-spending consists simply of not
letting the people forget the debt
created by deficits
They explained that the spending
eventually is paid for out of taxes, the
same as in other countries. A differ
ence, they added, is that the Treasury's
books are arranged to give the people
a constant reminder of their debt
thereby to discourage premature re-
duction OF taxes when good times
arrive
For instance, If the Swedish govern
ment has a 100000, 900 deficit this
year, the budget for each of the next
five years must include debt-retire-
ment item equal to fifth Of that
amount. If the government, however,
doesn't have enough money next year
to retire the debt quota, an additional
deficit is shown and charged against
the following years.
In the United States, the deficit is
merely the excess of expenditures over
income. The total of the public debt
is shown, however, on the daily Treas
ury statement. 1t is now $37,
53S, ,483.