Evening star., 1938-12-30
I(kes Reports
S1,574,769,686
In Contracts
Roosevelt May Favor
Permanent P.W. A.
As Recovery Aid
Py the Associated Press

Administrator Ickes reported to
President Roosevelt today that the
Public Works Administration had
put a $1,574,769,686 program com
pletely under contract" in the last
six months, to the accompaniment
OF constantly accelerated recovery
in business and industry"
The report went to the White
House amid speculation that Mr..
Roosevelt might support a move
ment among members of Congress
to make the P. w. A. a permanent
agency.
The deadline for this years pro-
gram is tomorrow midnight, but,
Mr.. Ickes said, he has an ample
reservoir Of applications to start
with, Should the Congress decide
at any time in the future to go
forward with another program of
public works
Peak Due Next Year.
p w. A., he said, benefits "all the
people" Already basic industries
are busy manufacturing materials,
and men have moved back to Jobs"
he added, even though the peak of
construction will not be attained
until next year.
Mr.. Ickes' analysis took note that
the Presidents approval of p w. A.
projects as they came to his desk
placed on the market more than
$500, 100000 worth of work every 80
days"
Mr. Roosevelt, according to some
reports, was impressed with the fact
such speed would have been impos-
sible had the P. w. A. not had ex-
perience in two previous programs
both of which got off to much
slower start-and had it lacked a
reservoir of proposed projects on
which to draw.
Several members Of Congress have
suggested that P. w. A. be made
permanent and that the Works
Progress Administration be curtailed
and eventually scrapped.
While the President has in the
past favored a permanent public
works agency, there was doubt
among informed persons that he
would agree to abolishing the w. P
A. In support of this they cited his
often-expreSsed view that provision
must be made for the needy unem-
ployed.
Agencies Differ in Effect.
One fundamental difference be-
tween the two agencies in their effect
on unemployment is illustrated in
the way their money is spent.
Last spring Congress assigned
$965 ,0O0, 900 to the P. w. A. and ST.
425 .000, 900 to the w. P. A.
The w. P. A. money was to cover
the eight-month period from July l
to next February %. Up to Decem-
Der q. approximately $1,150,O0O, 900
of this had been paid out for works
projects. w. P. A. officials said Sc
cents of every dollar was spent on
labor, 10 cents on material and 4
cents on administrative expenses.
officials do not expect the money
to last until the end of February,
and Mr.. Roosevelt soon will ask Con-
gress for deficiency appropriation,
expected to be s600,000 900 to $780,
100000.
Of its 1865 100000 the P. w. A.
has allocated S2OO,OOOOOO to 1887
construction projects financed en-
tirely by the Federal Government.
After making some small additional
allocations for other purposes, it
had $724,000,000 to spend on prof.
ectS in which States and municipal
tiles put up SIS cents on each dollar
and the P. w. A. put up As cents.
Six Months to Get Started.
Congress allowed six months In
which to get such projects started.
Secretary Ickes reported to the
President that $3.50 construction
jobs had been contracted for under
this provision and only a fraction
of l per cent would fail to start
construction on time.
The total program, according to
Federal interpretations, amounts to
more than s1,5OO,OOO,OOO of con-
struction. OF every dollar spent,
it was estimated, SO cents goes to
pay labor and ga cents to buy ma
terials, mainly iron and steel prod
ucts, cement and other durable
goods.
This division included no provision
for administrative costs comparable
to that of w. P. A. officials ex-
planned P. w. A., which is only a
loan and grant agency, has no ad-
ministrative problems like those of
w. P. A., which has to supervise its
thousands of works projects.
The Bureau of Labor Statistics
figured that every dollar would fur
nish directly one hour of labor to
one man actually employed on a
project and 25 hours of labor to
workers in industries benefited by