Evening star., 1938-04-22
SMALL BUSINESS
FILES FOR LOANS
New Deal Aid Plan Finding
Willing Borrowers, Say
U. S. Officials.
- the Associated Press.


Oficials of the Securities and Ex-
change Commission and the Recon-
struction Finance Corp. reported to-
day that business men were respond
Ing in increasing numbers to admins
tration lending proposals.
A spokesman said the r. F.. c. was
putting the steam on" to take care Of
loan applications pouring into it's 80
regional offices, chiefly from small
business men wanting some of the
sgency's $l,50o,oOo,oOo of lendable
funds.
From an s. E. c. official came word
the commission has been "swamped"
With inquiries about its simplified
registration procedure. Undertaken at
the request OF President Roosevelt as
part OF his economic program, this
simpliication was designed to make it
easier and faster for business interests
to register small issues.
Want More Details,
3. z. c. regional Offices in Seattle,
Denver, Chicago, San Francisco and
New York, it was learned, have been so
pressed by business men for informa-
tion on the new procedure that they
have telephoned headquarters here for
more details.
The R. F. c. lacked definite figures
on increases in loan applicatio be-
cause the latest requests are still pend
ing in regional Offices, but activity
was described as especially heavy in
New York. The small business mems
association set up headquarters in a
hotel there and assisted in filling out
applications.
The Treasury advanced its program
to expand credit resources by deciding
~ begin moving its 81, 400, 900 900 gold
credit to the Nations banks at the
rate OF $50 900 900 week.
Congressional leaders, meanwhile.
were discussing a proposal that a pub
lie works program for railroads be
woven into the Presidents lending
spending campaign.
Conference Seated.
The carriers would supply materials
FOR maintenance projects, and the
Government would pay for labor
Workers would be chosen from among
those whom the railroads have fur
loughed.
Chairman Wheeler of the Senate
Interstate Commerce Committee said
he would talk over the plan with w.
p. A. Administrator Harry Hopkins
and other of1icials when they meet next
week to draw up emergency railroad
legislation.
After comforting yesterday with 20
railroad labor and management repre-
sentatives, Senator Wheeler expressed
the hope that some measures could
Be passed at this session to relieve the
railroads financial plight. He re-
iterated his belief, however, that any
long-range solution of the railroad
problem must be postponed.
He emphasized that no final con-
illusions were reached yesterday. He
said he was inclined to favor an ad-
n1inistration proposal for making
&a00.000.000 available for railroad
equipment loans. Both labor and man.
asement asked that this be approved.
Additional Loans Favored.
The Montanan said he also favored
additional Federal loans for some Dor
derline" railroads which might be ex-
pected to stay out Of bankruptcy If
funds were provided to tide them
over"
Considerable interest centered here
on the purpose of President Roosevelt's
luncheon conference next Wednesday
with Henry Ford, whose personal busi-
ness policies frequently have run
counter to the policies of the Roose-
welt administration.
The conference will be one of a
series on business conditions which
Mr.. Roosevelt is holding with Gov
eminent officials and citizens.
At his press conference today the
President indirectly suggested that
Mr.. Ford would determine pretty
largely the subjects which they will
discuss.
Asked what matters he would take
UP with the manufacturer, Mr.. Roose-
velt said he supposed they would in
clude what Mr. Ford had already told
newspaper men.
Speculation on topics-besides the
economic situation-which the Presi-
dent might take up with the auto
manufacturer included labor problems,
so-called high pressure" selling Of
automobiles and the theory Of paying
workers An annual wage rather than
. daily or monthly wage.
Latest Fight Over Labor Act.
Mr.. Ford. who said yesterday that
his solution to current problems is
greatly broadened "back-to-the-
farm" movement, had his latest fight
with the Government over the Wagner
Labor Act, which guarantees workers
the right to collective bargaining. In
the early days of the, administration
he declined to sign the automobile
code set up under the NJ r. A.
Some months ago Mr. Roosevelt
held a series OF conferences with au-
tomobile executives. including Ford's
son. Edsel. In those meetings the
President brought up installment buy
ing Of automobiles and advocated the
principle Of limiting credit to a GER
tain percentage OF the purchasers in
come.
He blamed high-pressure salesman
ship for unhealthy periods of over
production that resulted In economic
slumps.
Work on the Presidents program in
Congress was concentrated in the
House Appropriation Committee.
which yesterday heard Aubrey vii.
liams, deputy works progress admins
traitor and chief of the National Youth
Administration. outline the needs of
the latter for the fiscal year begin
ming July l.
Republican criticism of the SPEND
ing phases Of the program broke out
briefly in the House when Representa-
t{va To bor nnp,,klicop of Nav, v..L