Evening star., 1939-05-20
Pepper 70 Press
For Program Of
Pump Printing
Other New Dealers to
Push Plan if None Is
Offered by President
BY the Associated Press.

BY the Associated Press.
Senator Pepper, Democrat, of
Florida served notice today that he
and other administration supporters
would take the initiative in starting
a new lending-spending program
through Congress If President
Roosevelt did not come forward soon
with concrete proposals of his own
IF the President doesn't start it,
we will" said the Senator, who has
been active in efforts to work out
new program for submission to Mr.
Roosevelt.
Senator Pepper said he thought a
plan calling for P, w. A. expendi-
lures in the field of self -liquidating
projects, expanded old-age pensions
and Federal grants for education,
public health and handicapped chill
dren would win approval of the
country.
Senator Burke, Democrat, of
Nebraska, an economy advocate, was
quick to disagree.
Government spending, as an aid
to recovery, has failed" he declared
Il think our experiences of the last
few years should be lesson enough
What we need is reduction In
Federal expenditures all down the
line to encourage private expendi-
lures"
Senator Burke said he thought
there had been "ample demonstra-
ton" in the last few months that
the country wanted economy, not
more spending
There also were indications that
administration supporters in the
Senate were not solidly behind the
proposed new spending.
Senator Schwellenbach, Democrat,
of Washington observed that he
was mot very enthusiastic about it,"
Were spending pretty much right
now" he added.
The President expressed opposi-
ton at his press conference yester-
day to using any part of the 81 2,000,-
100000 stabilization fund to finance
new spending program.
The Treasurys authority to oper-
ate the fund expires June 80. Leg
islation to continue this authority
has been approved by the House, but
there is strong opposition to it in a
Senate Banking Subcommittee
headed by Senator Glass, Democrat,
of Virginia.
There has been some discussion,
among those working on the new
spending proposals, of using 81, 1,500,-
100000 of this fund to finance new
Government aids to business.
Home Program Is Key.
In recent hearings on the bill to
continue the fund Senator Glass
took the position that, while he was
not in favor of the stabilization
operations intended to stabilize the
value of the dollar in foreign ex-
change, it might be better to retain
the money in the fund than to free
it for other Government spending.
Although the President disclaimed
any knowledge of new pump -prim-
ing" plans, one group of administra-
ton supporters, including Senator
Wagner, Democrat, of New York, is
known to have conferred with
Treasury and other officials about
proposals which might be laid before
the Chief Executive later.
Their talks have hinged around
a possible new small home-building
program, low-interest loans to small
business, insurance of utility con-
struction loans, a reduction in in
terest rates on loans insured by the
Federal Housing Administration,
liberalization of old-age pensions
and possible Government purchase
of railway equipment and it's rental
to the roads.
Senator Pepper indicated, how
ever, that he was more interested
in self-hquidating projects that
might provide both direct and in
direct employment-at the projects
themselves and in the heavy indus
tries
+. w. A. Revival Asked.
Il don't think the people of the
United States have ever been dis
appointed with the results of spend
ing that has been done on projects
which yield a return he told re-
porters. Its the spending on
things that have no permanent
value and no return to which they
object"
He said he thought the effect OF
the expenditures authorized by the
last Congress was diminishing
adding that something should be
done before recovery was retarded
seriously.
Senator Barkley of Kentucky, the
Democratic leader, said he and
other Senators had been receiving
many letters" urging revival of the
P. w. A. program.
The President made no mention
OF the P. w. A. when he notified
Congress recently that an appro-
priation of $1,000, 900 900 would be
needed to continue w. P. A. opera.
tlons for the next fiscal year.
The peak of direct employment
on P. w. A. construction authorized
by Congress last year has not YET