Evening star., 1938-04-08


pelt has been forced TO modifv his
budget balancing ambitions as re-
suit OF drastic business slump. To
Offset rising tide OF unemployment
and business failures, ddministrn-
ton has sanctioned Reconstruct
ton Finance Corp. loans to business
men and has abandoned hope OF
holding 1Oork relief expenditures to
one billion dollars.
By the Associated Press.
President Roosevelt told press con-
ference today his $1,000 600 900 es
innate for work relief in the next fiscal
year would have to be increased. He
mentioned no figure.
The President also said a new public
Works program was under discussion.
but that no decision had been reached.
He mentioned no amount in this con-
nection either, but 81 500. .000. 900 was
the figure he was reported reliably as
considering
LOng-Term Loans Considered.
Mr. Roosevelt said one of the fea-
lures OF the works program being dis
cussed was long-term loans to munlc-
ipalities without interest.
He said he had not decided whether
to combine public works and work
relief proposals in one message to
Congress or to make them separate.
One billion dollars for relief was
proposed in the Presidents January
budget message
Mr.. Roosevelt discussed relief short
ly after Harry Hopkins. works progress
administrator, urged Congress 10 pro-
vide permanent security program"
based on work, instead Of direct, re-
lief.
Mr.. Hopkins estimated in his testi-
mony before the Senate Unemploy-
ment Committee that about $4,000 900
men. women and children in 5000 600
households were receiving public as
sistance at present, as compared to a
peak of $1,000, 1000 persons in the VIM
| ter of 1884.
The lanky w. P A. head declared
some unemployment will always be
| with us.
For that reason" he said, we must
plan permanent security program"
No Decisions on Program.
Asked about proposals that the Gov
ernment float S1.500,00000O bond
issue for, public works loans to stimu-
late business and employment, the
President said lot of things were
hainO Stlf1io1 HIT
| no decision yet.
He said he expected to talk on the
subject later in the day with Mayor
La Guardia of New York and other
city heads from the United States
Conference of Mayors and also would
see John j. Pelley, president of the
| Association OF American Railroads, on
the railroad relief problem.
Mr.. Pelley. the President added. was
bringing him additional informa ton,
which with other data submitted by
representatives of the railroad brother
hoods. will be considered before a
presidential message is sent to Con-
gress next week.
The Chief Executive said the public
works program under consideration
included both Federal and non-Fed-
eral projects.
Whatever program was decided on.
ne said in response to questions, the
work relief appropriation and the
pending bill broadening the powers
OF the Reconstruction Finance Corp. to
lend to industries and business would
be exclusive of it.
In other words, he said the money
proposed for public works would not
reduce the appropriation for work re-
lief and the funds made available to
business by the R. F. C.
Against Railroad Bonds.
Asked about a proposal that the
Federal Government guarantee rail-
road bonds to help those in need of
speedy reorganization, the President
replied with question: Why guar
antee railroad bonds?
Such step. he reiterated, would
raise the question whether other in
dustries should not be assisted in a
similar manner.
When reporter suggested the pro-
posal was to protect insurance COM
panles and banks, the President said
there had been lot of loose talk abost
that, but the insurance COMPANIES in
(See RELIEF. Paoe A-sI