Evening star., 1939-06-16

fo1D OF money.
BY the Associated Press.
President Roosevelt said today he
was studying new industrial lend
ing program embracing self -liquidat-
ing projects which would operate
within the budget and add nothing
to the public debt.
He said he was studying the ques-
ton Of increasing the present limi-
tations on various Federal lending
agencies with the view of probably
raising these limits.
Railroad equipment loans also
were being studied, he added, in
cluding the question whether to give
the carriers legal title to equipment
|. or to set up new corporation within
the Reconstruction Finance Corp. to
build and lease equipment to the
roads.
The President said there was an
advantage to the latter alternative
because the title would remain with
the Government In case of a rail-
road insolvency. The Government,
he said, would still own the equip
ment and could lease it to receivers.
Question Of Detail.
Mr. Roosevelt remarked that It
was a question of detail of admins
tration more than anything else
and gave no indication whether
legislation would be sought at this
session.
He said the question was a six
year-old story which was being re-
viewed every six months to find
projects that would be self f-sustaln-
ing.
Senate Majority Leader Rarkley
said he had not been advised that
any new program would be SUBJ
mitted at this session.
1t was considered certain that
any such program would be so
framed as to have no effect on the
regular budget.
1t was Senator Mead. Democrat,
of New York, New Deal supporter.
who first disclosed the possibility of
creating corporation to buy rail-
road equipment and lease it to the
carriers on long-term, loW-rental
basis.
Senator Mead also Endorsed a pro-
posal by New Deal fiscal advisers
that Congress set up a Federal Toll
Authority to finance big-scale
program of self -liquidating road
and bridge projects.
He said such program would
create permanent assets and at the
same time take the strain of the
Treasury" ..
Senator Mead, author of bill to
provide Reconstruction Finance
Corp. insurance on bank loans to
small businesses, said he would pre-
sent witnesses before Senate
Banking Subcommittee next week to
"refute testimony of bankers that
there is no need for long-term credit
for little business"
After a number of bankers had
criticized his proposal, Senator
Mead told the subcommittee yester-
day this opposition was to be ex-
pected.
Cites Bankers Opposition.
''The bankers opposed liberalizing
the Federal Reserve and Govern
ment insurance Of bank deposits, !"
Senator Mead said. They opposed
things that have been a boon and
life saver to banks"
Senators Frazier, Republican, of
North Dakota and Adams, Demo-
crat, of Colorado protested that
banks could not compete with the
Farm Credit Administration on
farm loans because of its liberal
terms.
"The Government now is appro-
priating about $40,00O,0O0 annually
to make up the interest on farm
loans" Senator Adams said.
Senator Ellender, Democrat, of
louisiana said it was absolutely
essential" for the Government to
continue stimulating the flow OF
capital.
"The Government has been put
ting money into the channels of
commerce since 1885," he told re-
porters. Until business itself does
something-and there have been no
signs Of any great private expan-
sion-we must continue to get the
money out"
Senator Norris, Independent, of
Nebraska, veteran New Deal backer,
said Government outlays should
not be cut of too quickly"