Evening star., 1938-04-11
Relief
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the meeting This proposed appropria-
ton is designed to carry on relief
through the w. P. A. for seven months,
until Congress returns. 1t may then
appropriate more if it is found neces-
sary.
In his annual budget message last
January, the President recommended
$l,l00,000,000 for relief, including w.
P. A. That sum was to provide relief
during the entire fiscal year, which
begins July l and runs to June 3O
1899.
Earmarked for w. P. A.
The new appropriation will be ear
marked for the w. P. A. and can all
be expended within the seven month
period if that is necessary The hope
was expressed that it might be pos
sible to make the appropriation run
longer.
The appropriation of 100000 900
additional for the c. c. c. camps,
Senator Barkley explained, was in
tended to make it possible to continue
the camps as at present.
Before the White House meeting,
high officials said the Treasury's bill
lion-dollar hoard of sterile" gold may
help finance the huge public works
program, now under discussion. How
ever, Senator Barkley said this was
not discussed today.
Treasury experts said use OF the
inactive fund" of $1,182 100000 in
gold would minimize the effect of a
new publ works program on the
public debt, now $4,000, 100000.
Chance for Quick Cash.
Instead of borrowing the whole cost
of the program, they said, the Treas
ury could turn the sterile gold
quickly into cash by printing gold
certificates and earmarking the gold
as security for the currency.
(The Treasury started piling up
its sterile gold hoard at the end
of 1886 to ease the impact Of the
arrival of foreign gold into this coun-
try. Then, officials feared the posi-
bility of an inflationary boom.
tUnder the sterilization system. the
Treasury borrowed from the banks an
amount equal to the money it paid
foreigners for gold. This, officials
believed, would prevent the foreign
gold from creating an artificial credit
situation. The policy was modified
last February
Such administration fiscal advisers
as Chairman Eccles Of the Federal Re-
serve Board, whose spend d-to-end-the
recession ideals appear to be winning
presidential favor, approve OF the
gold-tapping process.
Byrd Opposes Pump Printing.
The principal argument advanced
by other officials against using the
gold is that it may be needed to
cushion the def1ationary effect on the
Nations bank credit structure if for
eigners should withdraw suddenly part
of the estimated s8,0O0,0C0 900 of for
eign money invested or deposited in
this country. Disturbed European
conditions now make any substantial
outflow in the near future improbable,
the experts contend.
Although number of congressman
expressed support Of new public
works program, Senator Byrd, Demo-
crat, of Virginia criticized the use of
public works in an attempt to prime
the pump of business. He declared
it offered only "a transient and arti-
fetal prosperity"
Authoritative reports indicate that
the administration will recommend an
other huge new spending program of
four billion dollars" Senator Byrd
said, terming the consequences of such
program 80 serious that the country
should take stock of the situation"
Representative Smell of New York,
Republican leader in the House, also
attacked runaway spending
"All the fears and uncertainties
harassing business arise primarily from
the disturbing budget outlook" Repre-
sentative Smell said
There are 1900 of these camps It
would have been necessary to close 300
of these on July l if this additional
appropriation were not made.
The suggested appropriation of
$1,250, 100000 will take care of the
100000 now on the w. P. A. rolls
and probably some additional.
To Discuss Housing Plans.
The President will confer this aft
ernoon with Secretary of the Interior
Ickes. Stewart Mcdonald, Federal
housing administrator, and Nathan
Straus, administrator of the United
States Housing Authority presumably
to discuss housing programs and pub
lie works. Later he will see Secretary
of Agriculture Wallace and Milo Per-
kins of the Farm Security Adminis-
tration.
Mr. Roosevelt's first conference to-
day was the usual Monday meeting
with Vice President Garner, Speaker
Bankhead, Senator Barkley and Rep
resentative Rayburn. They talked