Evening star., 1938-05-14
FIGHT PLANNED
0NPUMP PR|M|NG
Bloc Led by Senator Byrd
Would HaIve Cost of
Spending Bill.
By the Associated Press.

By the Associated Press.
A group Of Republicans and con-
servative Democrats in the Senate
said today they would try to elimi-
nate all funds for public works from
the s3,l54, 100000 spending lending
program recommended by President
Roosevelt This would reduce it by
about one-half.,
Members of the group led by SEN
ator Byrd, Democrat, of Virginia, said
they would support appropriations for
the Works Progress Administration
and other direct relief agencies, but
would oppose any ''pump-priming"
public works.
The bill approved by the House in
cluded s1.465 ,00O,0Oo for public works
loans and grants.
Possible Demands.
The Senate opponents of funds for
public works said they might demand:
A requirement that States put up
from one-fourth to one-third of relief
outlays
Imposition of criminal penalties for
political use of relief funds.
Elimination of provision permit
ting municipalities to incur obligations
to pay for P. w. A. projects even
though they already have reached
their constitutional limit of indebted
ness.
Elimination of the Presidents power
to approve relief projects
If this program is approved as it
passed the House." Senator Byrd told
reporters, you will see the largest
peace-time expenditure We have ever
had The deficit will be fully S.
o00,000,OO
Senator Gerry, Democrat. of Rhode
Island, one of those collaborating with
Senator Byrd, said the disturbing
results of further unbalancing of the
budget from pump printing" would
more than offst any gains to business
from Government spending.
Senate Republicans indicated they
would offer no program of their own,
working instead with Democrats seek
ing changes in the program.
One Republican leader said they
wished to avoid making the bill a
partisan issue. If this policy is fol-
lowed. they will employ different
tactics from those of House Republic
ans who made fortnight party at
tack on the program.
While Senate foes of pump -prim-
ing" said it had been tried before
and had not worked, it was defended
by administration spokesmen.
Chairman Mariner S. Eccles of the
Federal Reserve Board, speaking in
Atlantic City yesterday. said it would
be helpful if it could be started
quickly.
At his press conference yesterday,
President Roosevelt denied in response
to questions that the earlier program
was a failure
He told reporters that many present
economic ills were due to business
practices.
Prompt Approval Forecast.
He asserted that business has run
away with the ball in the national
economic game and mentioned un-
absorbed inventories and high prices
in some industries as factors in the
current depression.
Administration leaders expressed
confidence the relief program would
win prompt Senate approval in sub
stantially the form in which it passed
the House.
There isn't any question about
It," asserted Senator Minton, Demo-
crat, of Indiana
Senator Barkley of Kentucky, the
Democratic leader, said the Appropria-
tions Committee probably would send
the measure to the Senate floor by the
middle of next week.
Chairman Adams, Democrat, of Col
orado. of the subcommittee handling
the bill, announced that closed hear
ings would begin Monday Harry
Hopkins, the w. P. A. administrator,
and Secretary Ickes, who heads the
P. w. A., will be among the first
witnesses.
Senator Adams said he would ar
range time for opponents of the bill,
but asserted that hearings would con-
tinue only two or three days.
From Senator Truman, Democrat,
of Missouri, came suggestion that the
program be put on "pay-as -you-go"
basis by increasing taxes to any point
necessary to provide sufficient revenue.
He commented, however, that there
was little or no possibility this would
be done.
The Senate will resume debate Mon
day on a bill to create new agency
to regulate civil aviation Senator
McCarran, Democrat, of Nevada, the
author, announced he would ask then
that the measure be shelved because Of
an amendment, adopted yestrday by
q 34-to-28 vote. giving the President
power to remove members of the pro-
posed agency.
LOST.
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