Evening star., 1938-04-23
p. w. A. Loans
CONTINUED From First Paxe.)

Continued From First PaGe)
munity has 40 to 20 years in which TO
repay"
With the Federal Government con-
templating even more liberal nnanc-
ing than In the past, he indicated It
would be the height Of stupidity for
the District to continue borrowing
from p. W. A. under the now obsolete
and discriminatory terms imposed by
law. The Commissioners. he said. have
been studying the matter ever stnos
the new pump priming program vas
announced.
Commissioner Melvin c. Hasen,
president Of the board, y now In
Charleston, g. c. He is expected 10
return by Tuesday and will b. IN .
position then to 20 into the matter
more thoroughly.
Quick Aetien Necessary.
II Congress Is to pass the recovery
bill and then rush to IN early adjourn.
ment, the Commissioners will have q
Job on their hands to get both houses
to pass on its needs before adjourn.
ment. II they fail. 1t means they will
not have another opportunity until
after Oonsrsss convenss again In jan
nary. Long before then the new
p, W. A. program will be IN fun swing.
One of the objects of the proposed
new 3oo-bed ward at Gallinser u to
pakavA fhA nvArrrnsSA>A nn~nA&%tov>s -
this municipal hospital.
The District has balance Of 34,-
37t.ooo on the p. W. A. books from
which 1t can draw when the money is
available without further authorisA-
tton. But 1t can draw this money only
on terms which. It u doubtful. any
other city would even consider. Unlike
other jurisdictioos the District cannot
borrow or issue bonds except with con.
gr>saaonal approval. For this reason
Congrsss hack IN 1874 authorised the
P. ". A. to advance the District up to
80. 7So. 900 for certain specified mu-
nicipal improvements.
SS,3s5,eoo Advanced.
OF that amount. ss.375. 900 has been
advanced to date. being the equivalent
Of S4.4s7.S 800 in loans and 1892. 500
IN outright grants representing 10 per
cont Of the cost Of labor and materials
used In eonstrNction The District had
one advantage in that It was relieved
Of the I per cent interest charge dur
ing the hrst three years Of the loans.
But the 81 900 900 annually which the
District y required to repay out Of its
taxes compared most lmfa avorably with
the long.term borrowings Of other
cities extending 20 or 80 years Or over
the life Of = project.
Later In 1884. however, the p. ".
A. liberAlfSed its policy by providing IS
per cent Nans and grants representing
Is per cent Of the entire cost OF prof.
scts. Loans and grants were made on
that basis within the past week to the
BOARD Of Eduoation Of Prince Georges
County. Nd, and for nine school prof.
scts in Virginia.
The District. however, could not
obtain anything like comparable terms
today. being still restricted by the se-
we're provisions laid down for it In 1884.
Liberal Terms in Prospect.
Much more liberal terms are con.
templatsd for p. w. A. spending under
the new recovery program. The Prssi-
dent and administration leaders have
suggested two alternating plans. One
10 the existing IS per cent grant and
SS per cent loan. The other involves
the Advancement Of the whole sum to
public bodies Is loans without interest,
with the Government paying the In.
tsrsst and the public body paying
principal BY amortization or rental
over long period Of years.
whatever new rules Congress may
write into the bill, Mai Donovan
urged today that the District govern
Ment should certainly seek authority
to share equally in the new. benefits.
Public works ofnoiaD were among the
hrst to suggest that the District gov
eminent should seek these ADVANTAGES
under the new program.
The District borrowed no money
from ?. W. A. during the past year
and for this reason, it was said, nothing
had bssn done about obtaining better
terms from Congress. During the next
Asoal year, however, 1t plans borrowing
hSavily.
DinNrences CITED.
The projscts for the oallinger ward
and the new Municipal and. juvenile
Court buildines call for total Of
1880 900. of this amount the p. W. A.
would advance 4s4e, 100 In grants and
1,eeo ~ IN hans under the old terms.
The differences In . As Per cent grant,
which other cities can obtain. would
write on el,7se. 800 Of the entire cost
Il the projscts.
With the Uistrict's growing needs for
new construction 1t Il. probable the
oommissionsrs Win sssk Also to In
ersass ths Sle,7so.oo limitation And
" law.
That its fiscal arrangement Is =
bargain for the p. ". 4. y Indicted
by the sureness and speed With which
it u wiping out it, Indebtedness. The
df3t peyHaNAt AZ ~ 200. .oO6 va made