Evening star., 1939-07-11
Opposition Evident
In Both Houses 10
Lending Program
Few Projects Would
Be SeIf-Liquidoting,
Some Contend
By the Associated Press.

By the Associated Press.
While administration lieutenantS
were pressing for prompt enactment
of President Roosevelt's $2.800,000,-
900 lending program, signs OF stormy
opposition appeared today in both
House and Senate.
Legislation to carry out the pro-
gram was submitted yesterday, and
chairmen of the Banking Commit
tees in both chambers ordered brief
hearings this week.
The program, substantially that
outlined by Mr.. Roosevelt some
weeks ago, would provide for Fed
eral loans for such projects as toll
roads, public works and rural elec-
IRRIGATION, designed to be self
liquidating. The R. F.. c. would do
the financing and Congress would
make appropriations to meet def
cits whenever it appeared that
assets were not worth their book
value.
Points to Concession.
Chairman Wagner of the Senate
Banking Committee and Senate
Majority Leader Barkley pointed
out that the administration made
one major concession in abandon
ing a proposed $50O,OOO, 900 in for
eign loans. 1t submitted a $780,
100000 increase in the Export
Import Bank authorization for
financing exports.
Other Senators contended only a
few of the proposed projects act
ually would be -liquidating.
There will have to be a substan-
tial curtailment of this program be-
fore l can support it." remarked
Senator George, Democrat, of Geor-
gla.
Senator Connally, Democrat, of
Texas said of a proposal to lend
money to build toll roads:
Il don't know of a road in the
United States, except possibly one
between Washington and New York.
that could be -liquidating on a
toll basis. The people just won't use
them when free roads are available. -
From Senator Glass, Democrat. of
Virginia. foe of administration fiscal
policies, came the terse comment: :
You can get anything through Con-
gress that will spend money"
Called Pork Barrel.
On the House side. Republican
Leader Martin called the program
that glorified presidential pork
barrel"
Representative Williams, Demo-
crat, of Missouri said that If the
administration insists on passage at
this session, we undoubtedly will be
here until September l.
While the lending program
awaited committee action, the SEN
ate turned attention to House-ap-
proved amendments broadening the
Social Security Act. The House
scheduled minor legislation.
Major controversies were expected
in the Senate over proposals to
grant substantially increased old
age benefits and to give less
wealthy States larger proportion
ate share of Federal old-age pension
funds.
Acting Minority Leader Austin
said Republicans would oppose
abandonment of the present $3.50
matching arrangement for the dis
tribution of Government pension
money.
If that is abandoned" he said,
sit will recreate sectional feeling
and result in chaos"
Housing Figure Not Included.
The total of S2,800000, 900 in the
lending bill did not include a pro-
posed $500, 100000 increase in the
borrowing power of the United
States Housing Authority. This
proposal is being advanced in sep
arate legislation.
AS presented, the bill would set
aside the following amounts for the
purposes enumerated:
S350,0O00 900 for non-Federal public
works.
$750,000000 for -liquidating ex-
press highways.
$500,000,000 for rolling stock and
other equipment to be leased to
railroads.
$460,000000 for rural electrifica-
ton loans in addition to $4,000, 900
already appropriated for that pur-
pose).
S50O,000000 for farm tenacy loans
fplus S100000,000 already appro-
priated.
S100,000,000 for loans through the
Export-Import Bank.
The lending of these sums would
be spread over varying periods of
time. running to a maximum of
seven years. 1t was estimated the
first years total would be $780,
100000.