The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1939-07-06

WASHINGTON. Alt GU G h
there had been intimations that
the President had grand new
spending scheme up his sleeve,
it came as a real surprise when
he submitted to Congress a pro-
posal to authorize the expendi-
ture of $3,86O,OOO,OOO as a final
attempt to stimulate business re-
covery.
The Presidents plan, incorpo-
rated in a letter to Senator
Byrnes of South Carolina, who is
his personal spokesman in the
Senate, sets up a system of Gov
ernmental agencies each having
power to borrow money from prl-
vate investors by the sale of their
own bonds Or debentureS. Thus
the money so used would not
add to the national Debt, except
that money so borrowed would
be against the Governments qua
rantee that the bonds would eV-
entually be repaid.
The project is based upon the
idea of using the funds so raised
to finance so-called ''self-iqul-
dating" enterprises, in which sew
eral of the New Deal agencies
have already had considerable
experience.
The Home Owners Loan Cor
poration, for instance, raised
close to three billion dollars by
the sale of its bonds, used the
proceeds to lend on long terms to
distressed home owners, and is
getting the money back, with in
terest.
Have To Make Good
The Government, however, Will
have to make good any deficits,
and at present there is more than
S5OO,OOO,OO0 of foreclosed home
property on the books of the II.
o. L. c., which has to be sold at
some price. Reconstruction FL
nance Corporation and P. w. A.
have had considerable experience
in lending money on self-liqul-
dating projects. and have had
few loses.
The Farm Tenant program for
lending money to farm tenants
and laborers to buy their own
farms has not such a good record
of repayment. And American ex-
perience with foreign loans has
not been altogether happy.
Having those experiences in
mind considerable proportion of
Senators and Representatives
were slightly dismayed when the
Presidents plan came to them
out of an almost clear sky, coup
led with request for immediate
action, so that the new spending
could begin at once, for the fiscal
year 1910, which started July /,
1899.
The plan covers six different
types of spending the money to
be borrowed.
The Federal Works Agency
would be authorized to borrow
and lend $3.50 millions to cities,
towns and counties for water
works, sewerage disposal plants,
bridges, hospitals and other mu-
nicipal projects; $3.50 millions to
build toll roads, bridges high
speed highways and city byways,
to be paid for by tolls levied on
motorists using them; and $500
millions to buy railroad equip
ment to be leased to railroads
with the option of purchase.
The Rural Identification Adj
ministration would have authorl-
ty to borrow $3.50 millions addi-
tional, to lend to communities or
rural inhabitants to finance eX-
tension of electric lines to their
homes.
To Borrow $500 Millions
The Farm Security Board
would be enabled to borrow an
additional $500 millions to lend
to tenant farm purchasers, reha-
Utilization of rundown farms, mi
nor improvements and repairs,
fer the establishment Of water
facilities, and to resettlement CO.
operatives.
The Export Import Bank would
get authority to raise $500 mil
lions for short-term and long
term loans to foreign govern
ments to enable their people to
buy American goods.
In addition to those new propo-
sails, the President accompanied
his letter to Senator Byrnes with
a request for the approval OF the
proposal already pending In
Congress, to increase the Dor
rowing power of the U. S. Hous-
ing Administration by $500 mil
lions, to be lent on Cougar terms
for model homes for the poor, to
+o1,o +boy,o ont of citV SlumS,