Evening star., 1939-06-03
Ways 10 Aid Business
Get Positive Action
By Administration
Greater Leewoy for Looms
And Wagner Act Are
Discussed by Leaders

Positive administration efforts to
aid small business through an
easing Of capital and to comfort
all business by speeding consider
alton of amendments to the Ma
tional Labor Relations Act appeared
we'll under way here today.
Already several plans for making
it easier for small business to bor-
row money have been discussed,
with hearings on a bill to direct
the Reconstruction Finance Corp.
to insure such credit providing 4
sounding board. Yesterday, after
such a proposal had been Endorsed
by Chairman Jerome Frank Of the
Securities and Exchange Commits
sion. Ernest G. Draper, Federal
Reserve Board governor, disclosed
that request is to be made to
give the reserve banks greater lee
way to meet the credit needs Of
the small businessman"
Meanwhile, Secretary Of Com
merce Hopkins gave his emphatic
backing to the thesis repeatedly
expressed by inner-circle New
Dealers recently-that the Govern
ment should provide funds for in
dustry Because 1t can't be done
by private capital at this time"
Banks Seek Flexible Basis.
Mr.. Draper told a Senate banking
subcommittee that the proposal for
loans to little business would be
described In detail by Chairman
Mariner S. Eccles of the Reserve
Board when he appears before the
subcommittee Monday. However, he
let this much of the plan out Of
the bag:
The Reserve Banks at present are
restricted to five-year loans to pro-
vide working capital to businesses
that are established"
Under change in the law, he
said. the Reserve System could ex-
tend additional credit facilities to
small business on a much more lib
eral and flexible basis" than is pos
sible at present.
The assets and liabilities result
ing from these operations would be
segregated. he added. lin separate
corporation organized as an inte-
grail part" OF the Reserve System.
Through this corporation. he con-
tinued, the Reserve System could
meet whatever legitimate need
there is for additional credit facili-
ties for small business, either dl-
poctfr throtIrh tiov, MI y,
existing banks and other financing
institutions.
Mr.. Draper made it clear that In
his opinion such plan should sup
plement rather than replace the
system of r. F. C-insured loans pro-
posed in a bill by Senator Mead,
Democrat. of New York. Mr.. Draper
appeared in the course of hearings
on that measure.
Foes Of Labor Act Busy.
AS for the increased pressure to-
ward amending the Labor Relations
Act. springing mostly from the
Thursday night conference between
President Roosevelt and group of
business leaders. and brought to light
yesterday by Secretary Hopkins, its
principal obstacle seemed to be the
insistence of foes Of the act that
they be allowed to talk about 1t
before Senate and House committees
Chairman Thomas of the Senate
Labor Committee, which has been
hearing testimony for nearly three
months, said 1t would be mechan-
ically impossible for the committee
to send any amendments to Congress
this year unless there were some
break that results In a meeting of
minds"
Without an agreement among in
terested parties, the committee will
have to hear more than 100 wit
nesses for and against various
amendments, he added.
The wisest way to approach the
subject is for people who are really
interested to get together and try to
see eye to eye" Senator Thomas as
serted. Then if formal amend
ments are needed. that can be done
If administrative changes, they could
be made"
He suggested that If all sides were
to get around a table and discuss
the issue, it would have to be
voluntary, and under the leadership
of some one"
RoOsevelt's Wishes Undisclosed.
With Mr.. Roosevelt's own wishes
in the matter not yet divulged, Sem
ator Ellender. Democrat, Of Loui-
siana, a member OF the Labor Com
mittee, said he thought the Pres
ident wished to have some change.
made In administrative rulings in