Evening star., 1939-06-22
Roosevelt
Continued From First Page.)

100000 ceiling was suggested with
an outlay of only 10000, 900 in 1910.
Fifth, under the Farm Security
Administration, expansion of the
purchase of farms for tenant
farmers with a $50O,0OO,O0O limit
and loans of $3.50 100000 in 1910.
Sixth, foreign loans to promote
American foreign trade were put
down for $500, 900 for two years,
with 5000 ,000,0 900 going out in 1940
Mr.. Roosevelt explained proceeds
of these loans would be spent in the
United States and would be used
for development and reconstruction
purposes in the foreign country.
Reply to Senator Byrnes.
The Presidents letter to Senator
Byrnes was in reply to one from
the Senator concerning use of
$125 100000 of relief funds for the
Public Works Administration. He
requested the President to advise
him what effect this transfer of
money from w. P. A. to P. w. A.
would have on employment.
Mr.. Roosevelt told reporters he
thought the program he was out
lining was a much better way of
approaching the problem of work
projects.
With reference to the earmarking
Of the $125 900, 900, the President
said in his letter:
II am opposed to this provision.
1t simply means that 165,0O0 men
who are badly in need of work will
have to be dropped from the Works
Progress Administration rolls; men
who in the great majority of cases
are the sole support of families
whose subsistence depends on this
slender income"
Asserting he believed there is a
better way to accomplish the laud-
able purposes of this bill," the Presi-
dent added that great majority Of
people realized there were types of
public improvements which should
be undertaken when there was a
need for stimulating employment.
"At such times, the Federal Gov
ernment should furnish funds for
projects of this kind at low rate
of interest" the President said, 'it
being clearly understood that the
projects themselves shall be self
liquidating aid OF such a nature
as to furnin a maximum of en-
ployment per dollar of investment.
Agencies Canvassed.
There sea1s no reason why there
should not be adopted as perma-
nent policy of the Government the
development and maintenance of a
revolving fund fed from the earn
1ngs OF these Government invest
ments and used to finance new
projects at times when there is need
OF extra stimulus to employment" :"
Mr.. Roosevelt explained he had
canvassed Government agencies to
find out what projects met genuine
public needs and would be under
way quickly and would liquidate
themselves.
He told reporters all the Federal
agencies had wanted to go much
stronger than he had, and that he
had to use the blue pencil on them.
Mr.. Roosevelt explained, too, that
the self -liquidating projects would
be financed by securities guaran-
teed by the Government and issued
by the agencies concerned, but with
the cooperation of the Treasury.
The relationship, he said, would
be the same as now exists between
the r. F. c. and the Treasury, so far
as the mechanics of the lending is
concerned.
Announcement of the new pro-
gram climaxed several weeks OF
study by Government experts on
what could be done to stimulate
business and employment. Yester-
day Secretary Ickes advocated that
the $1,735, 900, 900 relief bill. pending
before a Senate Appropriations SUBJ
committee, be amended to provide
$500000,000 for public works under
the P. w. A.