Evening star., 1939-06-22
$3,860,000, in Spending g
For Se|f-Liquidoting Projects,
Housing Urged by President
First Federal Looms
Would Be Made
Starting July !
BACKGROUND

6ACh
Roosevelt administration has
placed major recovery reliance
in efforts to stimulate fo,D OF
money. To this end, great pro-
grams OF public 1porkS, aids to
prf0dte home construction and
loans to big industry through R.
F. C. hare been important parts
OF Government policy. Only
partly successful, this program has
been Ueakest. perhaps, in degree
OF aid furnished small business.
By the Associated Press.
President Roosevelt proposed 70
Congress today a s3.860 900, 900 pro-
gram for stimulating business
through self -liquidating projects and
low-cost housing developments.
The President estimated at least
s870,OOO,OOO would be disbursed in
Federal loans during the year start
ing July l. The remainder of the
program, split into six types of self
liquidating projects, would continue
for from two to seven years.
The President said that in the long
run the program would not cost the
taxpayers a cent so far as self
liquidating projects were concerned.
He outlined his proposals in let
ter to Chairman Byrnes of the Sem
ate Unemployment Committee and
sent copies to other Senate and
House leaders.
Revolving Fund Suggested.
Mr.. Roosevelt explained that there
would be limit on the self liquidat-
ing projects of $1,000 900 900 over the
wo-to-seven-year period which
their construction would embrace,
and that as money came in from
loans, it would be put out again as
needed to stimulate employment and
business.
Another $780, 100000 would be add
ed to the borrowing capacity of the
United States Housing Authority
under the Presidents plan.
Mr.. Roosevelt said he could not
state how much of this would be
used in the next fiscal year, but
that the money would be applied
to providing low-cost homes for per-
sons with incomes in the $3.50 to
$4,000 class. These are not covered
by either the present slum- clearance
program or the Federal Housing Ad-
ministra ton operations, Mr.. Roose-
welt said.
Meanwhile. at the Capitol, Sena-
tor Mead, Democrat, of New York
said he had support of Secretaries
Morgenthau and Hopkins for "the
general principle" Of his bill to pro-
vide Government backing for loans
to small business.
He declared Secretary Hopkins
probably would testify shortly be-
fore the Senate Banking Subcom-
n1ittee considering the Mead bill,
"and suggest some amendments
The Mead bill calls for insurance
by the r. F. G. of up to 90 per cent
of bank loans to small and medium
sized business.
Senator Mead said he had dis
cussed the insured loans bill with
Secretary Morgenthau and the
Treasury head did not come out
flat-footed for it, but indicated he
favored my proposals"
Six-Part Program.
The President divided his pro-
posed self lf-liquidating projects into
these six groups:
First, under the new Federal
Works Agency, loans would be made
for such self f-liquidating projects as
water works, sewage disposal plants,
bridges and hospitals.
The ceiling for this program, Mr..
Roosevelt said, is S350,000000 and
the Government would put out
$150.OOO,OOO in the first year-start-
ing July l. The program would last
two years.
Second, under the Bureau of Pub
lie Roads. would be construction
projects for post roads, toll roads,
bridges, high-speed highways and
city bypasses, with four-year CELL
ing of S750OO0,O00 and an outlay of
S15O,O00,00O in the 1910 fiscal year.
Third, railroad equipment projects.
The president said he believed it
would be better for the Government
to create an authority to lease
equipment to the carriers. with the
Government retaining title to it.
He proposed $50O,0O0,O00 ceiling
and use of $780, 100000 in 1910.
Electrification Expansion.
Fourth, under the Agriculture De-
partment, rural electrification would
be expanded to reach at least $780,
600 rural families, about 100000
persons, not now receiving electricity
and not likely to in the near future.
A seven-year program with $780,