Evening star., 1938-04-14
Text of Presidents Relief Message

AS citizen income rises let us not
forget that Government expendi-
lures will go down and Government
tax receipts will go up.
How and where can and should
the Government help to start an
upward spiral?
Three Groups Of Measures
Proposed to Congress.
propose to the Congress three
groups of measures:
l. In the first category I place
additional appropriations for the
fiscal year beginning July, 1898.
These will not put more money in
the hands of the consuming public
than we are spending in the cur
rent fiscal year, but they will pre-
vent men and women from being
thrown out of work on July l.
They will stop the spiral from con-
tinuing its downward course:
(a) I recommend an appropria.
ton of $1,25O,000,0O0 for the
Works Progress Administration, to
be used during the first seven
months of the next fiscal year.
Such a grant is ammunition of the
highest grade for attack on recess
sion. 1t will not greatly increase
the present rate of expenditure,
but ought to be sufficient to care
for the additional men and women
Who have come or are coming to an
end of their unemployment insur-
ance payments.
(b) For the Farm SECURITY Ad-
ministration an appropriation of
$l75,000,000 for the next fiscal
year.
tc) For the National Youth Ad-
ministration the sum of S75,OOO,-
900 to cover the full fiscal year.
(d) For the Civilian Conserva-
ton Corps the sum of $50,00O.OOO
additional to maintain the existing
number Of camps now in operation
call your attention to the fact
that these appropriations will avert
the laying off of people now receiv-
ing assistance from the Federal
Government.
Refers to Extension
of r. F. c. Loans.
In this same category Of STOP
ing the downward spiral I also
place the authorization recently
given for the lending of money to
business enterprises by the Recon-
structlon Finance Corp. I do so
because the greater part Of such
loans will 60 to businesses which
are in grave danger of shutting
down and throwing people out of
employment. Some of the money,
but, in all probability only the
smaller part of the loans. will
enable businesses to employ more
people or start new enterprises.
2. In the second category, the
administration proposes immedi-
ately to make additional bank re-
sources available for the credit
needs OF the country. This can be
done without legislation. 1t will
be done through the de-steriliza-
ton of approximately Sl,4O0,000.-
600 Of Treasury gold accompanied
by action on the part of the Fed
eral Reserve Board to reduce re-
serve requirements by about three
quarters OF a billion dollars. The
Federal Reserve Board informs me
that they are willing to do so.
These measures will make more
abundant the supply Of funds for
commerce, industry and agricul-
ture, BY themselves, however,
monetary measures are insufficient
to start us on a sustained upward
movement.
AS part Of better administration
hope that Federal banking super
vision can be better co-ordinated.
In addition, I am requesting that
the Securities Exchange Commits
sion consider such simplification of
regulations as will assist and expe-
dlte the financing. particularly, of
small business enterprises.
3. come. therefore. to the third
category which 1 consider to be
vital. The first two categories-
maintenance of relief and the ex-
panslon of credit might prove suffi-
clent-but in my judgment other
measures are essential. You and I
cannot afford to equip ourselves
with two rounds of ammunition
Wnere three rounds are necessary.
II We stop at relief and credit, We
may find ourselves without ammu-
milton before the enemy is routed.
If we are fully equipped with the
third round Of ammunition. We
stand to win the battle against
adversely.
Plans for Providing
New Work.
This third proposal relates solely
to definite additions to the pur-
chasing power of the Nation by
providing hew work:
ta) ask for certain amendments
to the United States Housing Au-
thority Act to permit the undertake
ing of the immediate construction
of about $500, 100000 of additional
projects. The Federal Housing Ad-
ministration is prepared to increase
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