The Waterbury Democrat., 1938-04-14
President Proposes Spending Billions In
 Economic, Social Rehabilitation Of America

if the nation obtains a vastly in- creased citiven income. I repeat that if this citizen income can be raised to eighty billion dollars a year the national government and the overwhelming majority of state and local governments will be "out of the red" The higher the national income goes the fast CT will we be able to reduce the total of federal and state and To- cal debts. Viewed from every an- gle, today's purchasing power the citizens income of today-is not sufficient to drive the econ- omic system at higher speed. Re- sponsibility of government requires us at this time to supplement the normal processes and in so sup plementing them to make sure that the addition is adequate. We must start again on a long steady upward incline in national income.
 I have set my hope, my aim on stabilized recovery through a steady mounting of our citizens income and our citizens wealth. And in that process, which I be- lieve is ready to start, let us avoid the pitfalls of the past-the over- production, the over-Speculation and indeed all the extremes which we did not succeed in avoiding in 1929. In all of this, government cannot and should not act alone. Business must help. am sure bus mess will help.
 National Will
 We need more than the mate rials of recovery. We need a united national will.
 We need to recognize nationally that the demands of no group, however just, can be satisfied un- less that group is prepared to share in finding a way to produce the income from which they and all other groups can be paid. Un- just claims defeat themselves. You, as the Congress, I, as the president, must by virtue of our offices, seek the national good by preserving the balance between all groups and all sections.
 AS citizen income rises, let us not forget that government ex- penpenditures will go down and government tax receipts will go up.
 How and where, can and should the government help to start an upward spiral.
 Proposals
 propose to the Congress three groups of measures:
 1. In the first category I place additional appropriations for the fiscal year beginning July 1888. These will not put more money in the hands of the consuming public than we are spending in the current fiscal year, but they will prevent men and women from being thrown out of work on July l. They will stop the spiral iron continuing its downward course:
 (A) I recommend an appropria- tion of $1 ,25O, 100000 for the Works Progress Administration, to be used during the first seven months of the next fiscal year,. such grant is ammunition of the highest grade for attack on re- cession. It will not greatly increase the present rate of expenditure, but ought to be sufficient for the additional men and women who have come or are coming to an end of their Unemployment 1n- surance payments.
 ((B) For the Farm Security Administration an appropriation of $175,0OO 900 for the next fiscal year.
 co For the National Youth Administr tion the sum of $75,0OO,000 to cover the full fiscal year.
 CD For the Civilian Conserva- tion Corps the sum of $50, 1000, 900 additional to maintain the exist ing number of camps now in oper- ation.
 Stop Unemployment
 I call your attention to the fact that these appropriations will avert the laying off of people now re- ceiving assistance from the Fed eral government.
 In this same category of stop- ping the downward spiral, I also place the authorization recently give for the lending of money to business enterprises by the Re- construction Finance Corporation. I do SO because the greater part of such loans will go to businesses which are in grave danger of shutting down and throwing people out of employment. Some of the money, but, in all prob ability only the smaller part of the loans, will enable businesses to employ more people or start new enterprises.
 Credit Needs
 2. In the second category, the administration proposes mme- diately to make additional bank resources available for the credit needs of the country. This can be done without legislation. It will be done through the de-sterilization of approximately $1,400, 100000 of treasury gold, accompanied by ac- ton on the part of the Federal Reserve Board to reduce reserve requirements by about $750, ,000, 900. The Federal Reserve Board in forms me that they are willing to do SO. These measures will make more abundant the supply of funds for commerce, industry and agriculture. By themselves, how ever, monetary measures are in- sufficient to start us on a suS- tained upward movement.
 As a part of better administra- tion I hope that federal banking supervision can be better CO., ordinated. In addition, am re- uuesting that the securities ex- change commission consider such simplifications of regulations as will assist and expedite the financing, particularly, of small business enterprises.
 More Measures
 3. I come, therefore, to the xx,LoinH r nNnctdaYs fn