Evening star., 1938-06-12
Vested Relief Powers Policy
Nav Raise Live Political Issue
Refusal of Senate to Go on Record Against Politics
in Aid Spending and Rejection of Ear
marking Funds Are Significant
By ], A. O'LEARY.

By ]. A. O'LEARY.
"HE New Deal policy Of controlling re-
lief from Washington, with broad
power vested In the administration
to distribute lump sum appropria-
tions, Is likely to become a live issue in
the approaching congressional election cam
paign. -.-...
Two developments in the recent passage
Of the $3,7oo, ,oo0, 900 relief and pump prim-
ing bill are combining to make this result
probable: First the refusal of the Senate to
60 on record against polite. in relief, and.
second, rejection Of efforts to earmark the
pump -priming money or to change the
method Of allocating work-relief funds.
II either Of the two amendments to pro-
hibit administrative relief officials from en-
gaging in political activity had been adopted
the new relief measure might have passed
on to the statute books as just one more
step in the five-year effort to bring about
economic recovery by Government spend
ing.
But the word going out to the country
that the Senate had turned down two pro-
posals to ban politics from relief already
has had repercussions in the move by q
group OF Senators to create a special Sen
ate committee to investigate the subject.
Even II the controversy subsidies with
adjournment and developments during the
campaign show that no definite provision
In the law was necessary to keep politics
out OF relief, the convening of the new
Congress in January is almost certain to
be marked by a thorough discussion of the
wisdom Of continuing the New Deals basic
relief theory of conferring wide discretion
on Federal agencies to allocate the funds
among the States according to their own
formulas and yardsticks.
No Long Time Relief Cure.
Although the new bill is the second
largest recovery measure since the SPEND
ing program began. the relief problem will
stlll be on the doorstep Of the new Congress
when 1T meets. This is inevitable, since
the w. P. A.. allotment Of sl,425, 900 900
is calculated to last not longer than the
end OF February, even though the P. w. A.
expenditures on larger projects will be
going on beyond that date.
The critical unemployment situation that
has developed throughout the country since
business began to decline again last fall
prompted the Senate's Special Unemploy-
ment Committee to recommend in April
that reliance must be had for the time
being on the relief programs now in opera
ton rather than attempt the formulation
of longtime relief policy at this session.
The committee announced, however, that
1t intends to continue its study of the
problem with q view TO making recon-
mendations at the next session ION the
larger aspects OF the problem"
At least two Republican plans have been
put forward to make the distribution of
relief funds less matter of individual
opinion of Federal officials as to the needs
in each State. Although both were voted
down by the Senate in the recent bill, they
undoubtedly will be put forward, along with
other suggestions, in the new Congress.
Either Of these alternatives would have
minimized the possibility of the claim Of
politics in relief being raised.
One was the Vandenberg- Bacon amend
ment to allocate Federal funds to State
Relief Boards. the members of which could
not be selected from one political party.
These State agencies would continue to
be supervised by the National Government,
but through a bipartisan Federal Relief
Board, and the States would have to agree
to put up IS per cent of the amount they
get from Washington. Senator Vanden-
berg of Michigan proposed to appropriate
the same amount the bill now carries for
w. P. A., but on twelve instead OF an
eight-month basis.
Registration Ratio Plan Suggested.
The second was the plan Of Senator
Lodge of Massachusetts, to require w. P. A.
to allocate its appropriation among the
States in proportion to the number of
unemployed registered in the State Offices
Senator Lodge admitted this formula
might not reflect the ratio of needy un-
employed 100 per cent, but he argued it
would be more scientific than the present
system. The Senate Appropriations Sub
committee was told that the Works Prog
ress Administration bases its ALLEGATIONS
on all of the evidence it can obtain con-
corning the number Of needy unemployed.
Advocates of more rigid formula con-
tend, however, that this still leaves wide
discretion in the Federal administrative
oficials.
Administration leaders did accept one
minority suggestion when the Senate voted
tn increase from $50 000 non IN S125 nm nm
the amount that could be set aside by w.
P. a. for direct relief and purchase OF food
in large cities where the relief problem be-
comes too severe to be met by work prof.
ects. When Senator vandenberg first pro-
posed that this direct relief fund be raised
to $3.50 0o0, 900 it was rejected
The next day Majority Leader Barkley
offered an amendment giving the admin
istration discretionary power to allot any
part Of the $1.425, ,000,0 900 w. P. A. fund
for direct relief as future developments
might require. After some debate it was
modified and adopted with the $125, ,o00, 900
limitation.
New Year Picture Not Bright.
This serves to emphasize that the relief
picture for the new fiscal year is far from
bright. unless the heavier public work
projects, the expanded slun-clearance
housing program and the authorized r. F.
c. loans to business have the hoped-for
effect Of starting flow of private employ
ment after the industrial pump has been
prined by these stimulants.
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