Evening star., 1939-07-24
The Price Of Adjournment

The Price Of Adjournment
President Roosevelt's new spending
program, euphoniously labeled as
lending program for self -liquidat-
ing" projects, has been reported to
the Senate from the faithful Bank
ing and Currency Committee. Even
that committee, however, Topped
$310,000,000 off the total asked by the
President. Furthermore, efforts are
to be made to write an amendment to
the bill which would prohibit loans
for projects which would be in COM
petition with private business.
One of the chief objections to the
program lies-as it has to many
other programs of the Roosevelt ad-
ministration-in the fact that gov
ernment is brought into competi-
ton with private business. The
argument is made by the administra-
ton that if private business will not
undertake such operations then gov
ernment must. Competition by the
Government strangles private busi-
ness invariably.
The amended bill authorizes the
lending of s2,490, 100000 for the prof.
ects described as self-liquidating.
That means, if anything, that these
projects are ultimately to pay for
themselves out of earnings of one
kind or another; that the Recon-
struction Finance Corporation, which
will issue bonds to raise the money
for the projects, will loan the money
so raised to Government-owned
corporations, and that eventually
these corporations will get the money
from the operation of the projects
and return it.
AS program, it is not a lending
affair at all. For the Government
merely uses its credit to obtain money
and then spends the money through
Government-owned corporations or
other agencies. The $2,49O, ,OO0, 900
which is authorized to be raised and
loaned and expended becomes In
reality burden upon the credit OF
the Government, really part of the
public debt. But by bookkeeping
these expenditures are made to ap-
pear as loans and not direct liabil-
ity and part of the national debt.
There is reason for this Under
existing law, the national debt may
not exceed $45,000, 100000. BY the
end of the present fiscal year, the
prospects are the debt limit will have
been reached, or very nearly reached.
Congress has shown itself very loath
to extend this limit
So by means of this subterfuge, the
administration goes ahead with the
spending-lending practices which al
ready have increased the national
debt by more than $20,0000 000, 900
since President Roosevelt came into
Office. 1t is the only tune, appar-
emily, that the New Dealers know
how to play.
One class of projects, express high
ways on which tolls are to be paid,
proposed in this program has been
severely criticized. In the first place,
reports from the old Bureau of Public
Roads of the Department of Agricul-
ture have shown that the cost of
transcontinental highways will be
enormous, and that the tolls expected
will be less than half the cost of
construction and maintenance. Un-
der such circumstances to call these
projects "self -liquidating" is mislead-
ing.
The country and its political sub
divisions under the public works
program are to be called upon to 60
further into debt to construct these
public works-some which may be
admirable and some not so admirable.
They will be asked to 60 further into
debt when they already are in the
red.
This lending bill is the last of the
Presidents must" bills demanded of
a Congress that already has appro-
priated or authorized the appropria-
ton of more money than any other
peacetime Congress. Its two and
half billion dollars, authorized to be
raised, loaned and expended, is
huge addition to an already stagger-
ing total.
That the bill will be passed is pre-
dicted by congressional leaders. The
enthusiasm for this legislation, how
ever, lags. It may be that the House,
when it comes to deal with it, will be
more inclined than the Senate to
pare it down. But the bill stands as
the last obstacle to prompt adjourn
ment of Congress. The attitude of
too many is better get it over with
and quit"