Evening star., 1938-04-08
Relief
Continued From First Page)

! lleS tIldb ueCIlIle III value.
In his relief message, the President
said he would ask repeal of the exist
ing amendment requiring the annual
relief appropriation to be spread over
IL monthly allotments.
This provision was designed by Con-
gress to avoid deficiency appropriation
requests before the year is out. The
President said. however, there was no
way of telling in advance what the
monthly needs were going to be.
Asked again what he thought Of
Government ownership Of railroads.
the President said he had always op-
posed it if it were possible to avert it,
Compensation Benefits.
Administrator Hopkins said in his
presentation to the Senate committee
that if workers could not be placed in
private jobs they should get compensa-
tion benefits. He advocated co-ordina-
ton OF an employment service, unem-
plOyment insurance and work relief.
Conceding that public employment
as a solution to loss of jobs was more
expensive than direct relief. Mr.. Hop
kins declared the method returns
more" and enhances the wealth of the
Nation"
The administrator contended Fed
eral administration of relief-on a de-
centralized basis-was preferable to
grants to States because the problem
of unemployment and insecurity is
basically national in scope"
! He added that good public policy"
! required Federal administration and
accountability. since most of the funds
used came from the Federal Treasury
| 1t is difficult to maintain satisfac-
tory State standards, Mr.. Hopkins de-
clared
! The relief administrator avowed his
faith in the existing economic system.
Ours is competitive system" he
commented. lin which an overwhelm-
Ing percentage of production is ex-
pected to come from producers op-
Grating for profit. believe in that
system.
Recession Causes Listed,
Mr.. Hopkins listed these causes for
the current recession:
Purchasing power in the hands of
consumers failed to keep pace with
production.
tremendous increase in inventories.
The failure of the promising build
ing revival because of rising costs.
Unwarranted increase in prices.
nno,fhirI 0f tho
Mr.. Hopkins said, are mot getting the
decent standard of living that this
country can afford" because I'VE are
not producing enough national income
and that national income is not prop
erly distributed
Federal spending need not be justi-
ned merely as pump printing he de-
clared, for am convinced that with
out the traditional investment of pri-
vate funds in rising economy there
can be no permanent recovery"
At another point in his testimony.
Mr.. Hopkins said it was absolutely
stupid for us to think that we cannot
reduce unemployment to reasonably
low levels"
I'VE have the initiative, ability and
brains to do it," he added.
Direct Relief Held Degrading.
Mr.. Hopkins, who has been this
country's relief administrator for five
years. said direct relief was degrading
to the individual and that one of his
strongest convictions was that the
Federal Government should never re-
turn to a direct relief program.
The future security program. he
declared. should be one that Amer
ican citizens accept 81 . matter Of
right-with no feeling of social in
feriority." He called economic in
security and economic instability
twin problems OF the first order"
Unexpected opposition to the 81 $780,
100000 program Of Reconstruction
Finance Corp. business loans came
today from Senator Wheeler, Demo-
crat, of Montana.
Mr.. Wheeler declared pending legis-
lation to let the r. F. c. make long
term industrial and public works loans
would take the lid of" questionable
loans to big business.
He objected especially to what he
called the lack of safeguard on rail-
! read loans In the House-approved
measure. The power granted the r.
F. c. he said, might be used to bail
out railroads and other big businesses
at the expense of the public"
The Senate also has passed an r. F.
c. bill, but must vote on the House
version because 1t differs slightly.
Leaders predicted that Mr.. Wheeler's
opposition would not keep the measure
from being sent quickly to the White
| House.
Meanwhile, Senator Hatch. Demo-
crat. of New Mexico impressed by 70.
ports Of q plan to make public works