Evening star., 1938-02-01
BUSINESS
TO MAKE DEMANDS
FOR NEW CAPITAL
800 Representatives Will
Gather Tomorrow for Dis.
cussion With President.
UNEMPLOYMENT HELD
NEXT IN IMPORTANCE
Homer Martin and U.A.W. Work.
ers Will Confer at White
House Today.
BULLETIN.

BULLETIN.
United Automobile Workers Off
cials urged President Roosevelt
today to recommend an immediate
Federal appropriation of sl30.o00,-
900 to provide employment and
direct relief for unemployed auto
mobile workers and their families
in Michigan
By The Associated Press.
Eight hundred representatives of
the Nations small business men,
gathering tomorrow to formulate sug-
gestions for President Roosevelt, will
report that their most urgent need
is source of new capital.
Ernest G. Draper, Assistant Secre-
tary of Commerce, said today that
topic was the theme of hundreds Of
letters sent to administration officials
from all over the country.
The best banking brains in the
Government. Secretary Morgenthau
commented. have been studying the
question for years but have not solved
it.
The small business men put unem-
ployment as the second most vital
question they will discuss in an open
meeting at the Commerce Department
before sending delegation to the
White House
Unemployment. however. headed the
discussion list of group OF United
Automobile Workers officials calling
on Mr. Roosevelt today.
Homer Martin, president OF the auto
union: Richard T. Frankensteen. vice
president, and William Munger, re-
search director, came here to give the
President their ideas on how to regu-
larize employment in auto shops and
assure a larger annual income for
the workers.
Mr. Roosevelt has criticized oversell-
ing and too liberal credit terms as
contributing to irregular production
and unemployment In the auto indus
try. He discussed these problems with
auto manufacturers earlier in his series
OF conferences on the business situa-
ton.
Meeting Last in Group.
The meeting with small business
men is the last in this group which
has been announced. Besides the
need for new capital, they are expected
to consider.
Fair trade practices, prices and mo-
nopolies; social security, Government
research. wages and hours. housing.
installment selling and development
and location of small industries.
Strange as it may SEEM" Mr.
Draper said, most OF the letters say
they favor wage and hour legislation,
although some people say such legis-
lation would hurt small business men"
To assist in the discussion of the
loan question. the Commerce Depart
ment asked Chairman Jesse H. Jones
of the Reconstruction Finance Corp.
to be present.
The r. F. c. has loaned about $780,
100000 to industry in the three years
it has had such authority The II
Federal Reserve banks added $780,
100000 more.
Those skeptical of the idea of new
Government loans to small businesses
point to the relative smallness of these
previous loans as supporting their
thesis that the business men who can
not get financing are merely poor
risks.
Want Long Term Financing.
Others reply that what business
needs is long-term securities financing,
not temporary Federal aid.
Long-term obligations generally are
outside the field of commercial bank
lending. They belong to the invest
ment banking" field.
Securities of large corporations. ex-
(See BUSINESS, Page A-4)