Evening star., 1939-07-21

BY TIE Associated Press.
The Senate Banking Committee
trimmed s4OO.OO0OOO from Presiden;
Roosevelt's s28OO,OOO lending
program today and then added S90,-
100000 for reclamation projects in
the West.
Senator Taft, Republican, of Ohio
voicing the views of the minority
committee members. told reporters
Republicans still were mot salts
fed and would seek further curtail-
ment of the measure.
The committee agreed to cut IRON
S750,000,000 to s500,0O000O a pro-
posed authorization for toll roads
and from S500,000000 to $3.50 100000
the total which the Reconstruction
Finance Corp. could expend for rail-
road equipment to be leased to the
carriers.
Jones Hits Inference.
While the Senate committee was
busy with details of the legislation,
Jesse Jones, new Federal loan ad-
mlmstrator, told the House Bank
ing Committee that any inference
drawn from previous testimony by
him, and current in some congress
slonal circles, that the lending leg
lslation was unnecessary was, "of
course, ridiculous
Mr. Jones was reported authori-
tatively to have told the Senate
committee late yesterday that the
r. F.. G. could finance the program
for two years with its present bor-
rowing authority, but that some
amendments to existing law would
be necessary to carry out such lend
Ing proposals as construction of toll
roads and leasing of equipment to
railroads
Today he told the House Commit
tee that the 81 36l 100000 still avail
able to the R. F. c. for loans of all
types cant and won't" take care
of the proposed new program. He
said the R. F. c. did not have ade-
quate authority to make the types
of loans contemplated.
I'VE have always felt" Mr.. Jones
said, that We ought not to get our
borrowing authority for general pur-
poses below 81 900 900 600"
He explained that under existing
law. the R. F. C. could not purchase
railroad equipment for lease to the
carriers.
And I like that part of the pro-
gram he added. because we think
We can encourage the roads to dis
card some of their old equipment
and buy new
Net Reduction of $4,000, 900.
The Senate Committees action ef-
fected a net reduction of S3l0 900 900
in the lending program. In addition,
the banking group amended the bill
to cut from 40 to 80 years the term
of bonds which the R. F.. C. would
issue TO raise funds for the program.
1t also approved change to make
clear that the rural electrification
lend.@~ program would aggregate
onl" 100000. That sum was
pronC I'd in the lending program,
but Senator Taft said the R. E. A.
previously had obtained a $780,
100000 program.
Senator Taft said the revision
made certain that the $500 100000
would not be in addition to the al
ready approved S280O0O,0OO
Majority Leader Barkley, author
of the lending bill, said that the
changes in language might make it
necessary to draft an entirely new
measure.
He said he was hopeful the bill
would 60 to the Senate floor next
Tuesday. 1T is not impossible that
the bill could be finally approved
next week and that we could ao-
journ by July &c." Senator Barkley
told reporters.
The first years outlays under the
lending plan would aggregate only
$7700OO,000, and Mr. Jones was said
to have declared before the Senate
committee yesterday that the R. F c.
could finance those advances and
meet all its other commitments. He
added, committee members asserted,
that repayments to the r. F. C. dur
Ing the first year would make it
See LENDING, Page A-3)