Evening star., 1939-02-07

relte} message to Congress today
folloWs:
On Saturday, February 4, I
approved House joint resolution
No. 83, which appropriates s725,-
100000 to continue the operations
OF the Works Progress Admins
tration for the remaining five
months Of the current fiscal year.
I would have withheld my ap-
proval Of this legislation on the
ground Of its inadequacy to meet
human need and I would have
Immediately asked for a larger
sum If it had not been for the
provision that there shall not be
a reduction of more than 5 per
cent OF the number of employees
on works progress projects prior
to April l. 1889.
This proviso leads to the con-
clusion that the Congress stands
ready during the balance Of
February and the month of
March to reconsider actual needs
in time to increase before April
the appropriation for the last
three months of the fiscal year.
In my message to the Congress
on January S, 1899, I recommend
a supplementary appropriation
of $875 100000 This was based
on a program to give employ
ment to 5000 900 workers during
February and March and to re-
duce this employment to an
average of 2.700,000 workers In
June This estimated reduction
Of 100000 workers by June took
full cognizance of the economic
recovery which might reasonably
be anticipated.
Necessary to Re-esta blish
Pay Roll Reserves.
Because it has been necessary
during the first week of February
to utilize all working capital and
pay roll reserves normally main
tanned to protect the funds Of
the United States against over
obligation. it will also be neces-
sary Immediately to re-establish
these reserves from the supple
mentary appropriation.
The net amount available to
finance the Works Progress Ad-
ministration from February / to
June 80 is therefore $725 900 900.
In discussing the employment
that can be provided for five
months with $725 5000 first
consideration is given to the
Winter months of February and
March. The joint resolution re-
quires that reduction in employ
ment in those months shall not
exceed S per cent, which reduc-
ton, if carried out, would mean
the discharge of 10000 en-
ployes.
However, I call your attention
to the fact that the rolls have al
ready been reduced by 35O,OO0
since the last week of last Octo-
ber. AS no new assignments
have been made during this Pc
riod, there has been a large ac-
emulation of able-bodied people
certified to us as in need Of re-
lief-people, however, who have
not been able to secure places on
the work program.
The need of these people Isl so
apparent and so deserving that
the rolls, in human decency,
ought not to be reduced during
February and March by even S
per cent. After conferences with
the Works Progress Administra-
ton it has been determined for
the above reason to hold the rolls
at the present figure of 10000
persons during these two months.
Average Monthly Cost
Is Placed at SCI.
To employ these 5000, 900 peo-
pie at the prevailing average
monthly cost of S61 will require
an expenditure Of 1866 100000
This will leave 1859 900 900 for
the months of April, May and
June.
Under the terms of the Joint
Resolution this sum must be ap-
portioned over the entire period
to June 30. The administrator
will have at his disposal an aver
age of approximately $120,000,000
per month for these three months
providing an average employ
ment of slightly less than 2,000,-
900 persons.
Two alternatives under the
Joint Resolution are open to the
administrator. The first is to re-
duce the rolls abruptly by 1,0O0,-
600 persons on the first of April
and provide an average employ
ment of 2,000,000 persons during
the ensuing three months. This
would result in throwing this
very large number of persons out
Of employment suddenly. Such
a number cannot possibly be alb
sorbed by private industry in
time to prevent extreme distress.
And I call your attention to the