Evening star., 1939-07-20
Republicans Chart
Opposite Course
On Lending Bill
Townsend Says They
Will Demand Changes
In Measure
BACKGROUND


Late in June the President gapc
to Congress request for legisla-
ton he felt imperntiue-duthOr-
i-inq a huge lending program,
based in some degree on SELF
liquidating projects. The meas
ure indicated Mr.. RooSeUelts ad-
herance to his long follo,Ded pol
icy of spending for recovery,
rhici had been criticised sharply.
Considerable opposition to the
scheme has Developed in Con-
gress.
BY the Associated Press.
Republican Senators charted a
course of opposition to the admin
istration's ti-billion-dollar lend
ing program today which. it was
said may tie up that project in de-
bate for a week or two
Despite numerous changes made
in lending legislation by the ad-
MISUNDERSTANDING elimination
of the title term -liquidating g.
Senator Townsend of Delaware said
his fellow-Republicans still would
demand extensive changes.
Debate" he added, may require
week or two
Senator Townsend based his opin-
ion both on developments in the
Banking Committee, where members
threatened to hold up the bill in
order to call more witnesses, and IN
a Republican caucus where opposi-
ton strategy was charted.
Want Amount Cut.
Of the caucus, Minority Leader
McNsry of Oregon reported:
There was universal feeling
at the meeting that the lending anc
spending features of the bill would
push private capital and industry
farther back in the field of fear.
The Republican minority will
support amendments calculated to
remove some of the unusual powers
contained in the bill and to decrease
appropriations"
He added that his party members
generally believed existing agencies
had adequate power to carry out the
lending proposals
Early adjournment hopes, at a
premium since abadonment Of neu-
trality legislation for the session,
sagged when word spread that the
lending program might be headed
for heavier weather than previously
forecast. There seemed little hope
the legislators could leave July 20.
The plan to call additional wit
nesses before the Banking Commit
tee would upset one aim on which
both Democratic and Republican
leaders had agreed-to get the bill
to the Senate floor by the week end.
Members say more testimony would
mean no committee action before
Monday.
New Controversy.
A new controversy developed over
a proposal by Senator Townsend to
WlltC lIiVO IIlC HlCdoul a ~ lOihA1AVAOll
on Treasury purchases of foreign
silver.
Senator Townsend said he wanted
Secretary Hull to testify before the
Banking Committee about both the
silver proposal and a provision of
the lending bill to authorize the Ex-
port Import Bank to lend an addi-
tional $lO0,OO0.0OO to encourage
America nexports.
Disclosure the administration had
dropped the term self -liquidating'
from the title of it's 81 800 600, ,00C
bill set Senators arguing over rea-
sons why.
There has been no change, said
Senator Barkley, in the administra-
tion's fundamental proposal fol
putting money loaned under the
program into recoverable assets.
But Senator Danaher of Con-
necticut, voicing a view expressed
in some Republican quarters, con-
tended that the administration had
abandoned all preteXt that this is
a self-liquidating proposition"
This contention, Sentor Barkley
rejoined, was silly"
With the thorny neutrality issue
tSee CONGRESS, Page A-6.)