Evening star., 1939-05-19

teHL rus OeeH one OF O1tteT con-
ftct, NTH course of administru-
ton neUer quite positiUe.
By the Associated Press.
President Roosevelt, discussing re.
ports that new spending lending
program was being studied in some
administration quarters. expressed
emphatic opposition today to using
any part of the $4,000 900 900 stabi-
lization fund to finance aids to
business
Questions regarding the reports
were raised at the Presidents S press
conference. He said he had never
heard that new spending lending
plan was under consideration.
When it was brought out that the
heart of this plan provided for
utilizing part of the sterilization
fund to finance new Federal helps
to business, such as purchases of
railroad equipment. Mr.. Roosevelt
said he was opposed to monkeying
with the fund
Regarding other matters bearing
on the business situation, the Presi-
dent said Securities and Exchange
Commission report to Congress on
investment trusts would be SUBJ
mitted by him without recommended
ton.
No Tax Parleys.
He also reported that he had not
yet scheduled further conferences
with congressional or Treasury tax
experts on proposed revision of the
corporate tax structure. He met at
length with them last Monday.
The spending lending program
has not taken definite form. it was
learned in Informed quarters, but is
being put in shape for submission
to the President and possibly trans
mission to Congress.
AS tentatively outlined, it would
include:
Release OF S1,5OO,OOO,OOO of the
50 900 900 900 stabilization fund and
use Of the money to finance a Ma
tion-Wide home building program.
Establishment of new Federal
machinery for loans to business. with
| emphasis on advances to small firms.
Liberalization of social security
benefits, with discussion centering
on old-age pensions of $40 monthly
for single persons and $50 monthly
for married persons
Government insurance of loans for
utility construction.
Reduction of the per cent inter-
est rate on construction loans in
sured by the Federal Housing Ad-
mlnlStration.
Government purchase of new rail-
road equipment and its rental to the
carriers
Business Aid Likely.
Among those working on the pro-
gram, it was reported are Senators
Wagner, Democrat. of New York,
and Pepper. Democrat. of Florida,
Chairman Mariner S. Eccles of the
Federal Reserve Board, and Leon
Henderson, ewly-appointed member
Of the Securities and Exchange Com
mission
W ~ tAAAOA AAlNA pCl oOlIS Sdlu IIl6
tentative program might be changed
substantially before it is presented
to the White House, and that Gov
eminent insurance of utility loans
and the purchase of railroad equip
ment might be omitted. They added,
however. some new Government
efforts to stimulate business was ex-
tremely likely to emerge before Con-
greSs adjourns.
Secretary of the Interior Ickes told
reporters yesterday he doubted
whether conditions Would improve
enough to warrant abandonment of
P. W. A.
There will be need for more relief
spending" he said. "and 1 always
have contended that there is no bet
ter way to do it than through public
works"
Home Lending at Low Interest.
The proposed program, it was re-
ported, would call for creation of a
new agency to take over the $780,
100000 from the stabilization fund
and lend it at low interest rates to
persons of low and medium income
for home construction.
The stabllization fund was created
out OF the profit accruing TO ths
Government in 1884 when it de-
valued the gold dollar. The profit.
$4,000 100000, was put in a fund
which can buy and sell dollars in
international exchange markets in
an attempt to keep stable the value
OF the dollar in relation to foreign
currencies.
One problem remaining to be
worked out, it was said, was how to
prevent the lending plan from up
setting the general level of interest
rates too violently or from interfer-
ing with the building insurance ac-
tivities of F. H. A.
A reduction of interest rates on
F. H. A.-insured loans might meet
this problem in part, it was said.
Spending Lending.
Preliminary discussions have been
pointed toward devising a lending
spending program which would not
affect the regular Government
budget.
The release of $1,500,0O0 900 from
the stabilization fund would not
create new debt, but some Treasury
authorities were said to oppose it
on the ground the remaining $780,
900 900 in the fund would not be
adequate to cope with possible
fluctuations in international ex-
change.
Those working on the program
said, however, that thus far the
Treasury has used only 5000 900 900
of the fund as working balance"
and that $500, 900 should be
adequate to meet any International