Evening star., 1938-06-12

Security Administration and other smaller
phases of the Federal program. It was
estimated by one Federal agency . few
days ago that probably 100000 are now
dependent on State and local relief
agencies.
OF course, the hope Is that large building
projects and other types Of heavy construc-
ton from loan-grant allotments out Of the
new 81 1855, 100000 P. w. A. appropriation
and revolving fund. together with the U. S.
H. A. slum clearance program, will start
employment lines moving into factories
and mills.
Even If these loan-grant allotnents are
made within the first few months Of the
fiscal year, 1t will take time for the re-
S,lting indirect employment to hlter back
into the heavy industries.
May Need More for Emergencies.
Debate on the new relief bill indicated
that meanwhile, it may become increas-
ingly necessary for Federal authorities to
increase emergency allotments for direct
relief and food supplies, as distinguished
from the work projects at security wages
Before the conferees complete work on
the bill this week they may give the Presi-
dent discretionary power to spend the
$l,425, ,000, 900 w. P. A. fund in seven
months instead Of spreading it over eight.
This would create a cushion of $175,000, 900
with which to step up relief allotments
this summer and fall, and this is further
indication that members of Congress think
the need may become greater before they
return in January.
Members OF Congress who supported the
recent revenue act, skeletonizing the un-
distributed profits tax, hope that this may
help to encourage an upturn in private in
dustry. Repeal or modification Of the un-
distributed profits tax was the only major
recommendation made by the Senate Un.
employment Committee In its preliminary
report at this session.
Describing the immediate future, as he
sees it, to the Senate Appropriations Sub
committee. Mr.. Hopkins testified:
I'm general, the problem is serious one
There are about 100000 people receiving
unemployment insurance benefits today
After the benefit periods come to an end,
many of those people will come to U.s. Fur
thermore, there has just occurred drop
In private employment of from 100000
to 100000 over few months period.
Taking the lowest of the unemployment
estimates, there are about 10000, 600 out
Of work and the other estimates run up
to over 12.5oo.oco.
Even if a million and half people 60
back to private employment during the
next seven or eight months-and that Is a
very large number to be re-employed In
such short period of time-we are still
left with relief situation in the coming
months that is serious, and do not want
to be the one to underestimate it."
Business Balances in Red.
In discussing the recession at the hear
ings Senator Tydings, Democrat, OF Mary
land brought out that during the seven
year period from 1929 to 1885. despite large
Federal outlays for relief. private industry
paid out from its reserves approximately
$40 900, 100000 more than it took In for
that period.
Senator Vandenberg expressed belief yes
terday that the relief burden will be such
during the recess that w. P. A. will not
be able to care for even half Of the en-
ployables, particularly in large cities" In
consequence, he predicted, local communi-
ties will confront an increased relief prob
lem. AS q result he believes that when
Congress returns there will be greater sup
port for the substitute relief formula, under
which non-partisan State boards would ad-
minister the problem, with Federal board
boards, he contends, would be in a better
position to determine how much of their
available funds should be used for work
projects and how much Is needed to pre-
vent suffering to larger number through
direct relief
You cannot meet this problem on a
Federal basis the Michigan Senator de-
clared. 'The problem is localized and relief
cannot be split into sections, because 1t
simply will not be stratifled"
To Urge Method Shift Later.
Since Congress in the pending bill has
committed itself to continuation OF the
w. P. A. system of work relief for eight
months of the new fiscal year, Senator VAN
denberg does not believe it would be feas-
ible in January or February to turn to a
different basis for the remaining four
months ending June 30, 1899. He does be-!
lieve, however, that the new Congress should
begin consideration, when it convenes. of:
the whole subject of future relief policies;
for the next fiscal year.
Whether the incoming Seventv-sixth:
Congress makes any departure from the
New Deal relief principles of the past fiveS
years is likely to depend on how the House:
and Senate elections go in November, and
on the extent to which relief methods be-
come an issue in various localities.
In any event, the new Congress will haves
to make immediate provision to carry W.
p. A. through the four month period from.
March to June 30. How much will be ap-s
propriated will depend on the next six orss
seven months. On the basis of present.
calculations it would take $700, 600 900 or
$500, ,000. 900 additional 3
There was virtually no opposition to they
size of the new W. P. A. appropriation, ais
though viewpoints differed over the dis
cretionary method of ALLEGATION In the
pump printing public works section there
was substantial bloc of Senators In favor
Of earmarking q considerable part of the
p. W. A. fund for specific Federal projects
instead of leaving ALLEGATIONS to be made