Evening star., 1939-07-23
Lending Bill Debate
Is Due 10 5tartin
Senate Tomorrow
Byrd Calls Plan Spending
Scheme Mosquerodine
As Lending Scheme

Whipped into shape by the Bank
ing Committee. President Roosevelt S
lending program comes up for debate
in the Senate tomorrow carrying
proposals for self -liquidating loans
aggregating s2,490 900 900 for such
projects as roads, railroad equip
ment, public works and elimination
of farm tenancy.
In finally approving the measure
the Banking Committee eliminated
an amendment adopted Friday
which would prohibit loans for any
projects which would be in substan-
tial competition" with private enter
prise.
The committee agreed that the
language Of the amendment was SO
broad as to nullify much of the pro-
gram. and Senator Barkley of Ken
lucky, the Democratic leader, and
Senator Adams, Democrat, of Colo
RADIO said they would work out
compromise proposal for submission
on the Senate floor.
Key to Adjournment.
AllC dPl oNCd OH dI1lCllA-
ment to require the payment of pre-
vailing wages on road, railroad
equipment and public works projects
AS the measure emerged from
committee Senator Barkley said he
was hopeful it could be sent to
President Roosevelt by August l or
2; adjournment prospects are hing
ing on its disposition.
The figure approved by the COM
mittee was s310.000O00 under that
originally asked by President Roose-
welt. The committee first cut off
s400 100000 in two sections then
added s90000,000 for reclamation
projects
Republican members had declared
they would seek additional reduc-
tions, but these didn't materialize.
Called Spending Scheme.
The bill was attacked last night as
a spending scheme masquerading
as lending scheme" by Senator
Byrd, Democrat, of Virginia. fire.
quent critic of the administration S
fiscal policy.
In his statement Senator Byrd
said. THE American public must
not be deluded that this new spend
ing scheme will neither increase the
Federal debt nor increase the Fed
eral tax burden.
If the Government borroWS
money and makes loans for untried
and impractical projects that are
not likely to be repaid the burden
will eventually fall on the tax
payer.
THE whole scheme is devised to
evade the present statutory debt
limit (of $45,OOO, 100000 1t is a
spending scheme masquerading as a
lending scheme
Urges Frankness.
Senator Byrd asserted that IF we
must spend the public money we owe
it in simple justice to the taxpayers
to be frank and not hide in
the thought that this double system
of bookkeeping evades the debt. 1t
merely conceals it,
Under the program, the R. F. c.
would issue bonds to raise money
for the loans. The bonds would be
Government-guaranteed obligations.
but would not be counted as part
of the public debt.
Senator Byrd said he had been
advised by G. r. Cooksey, secretary
of the Reconstruction Finance Corp,
that the r. F. C. now has $780,
404 036 of unused borrowing power.
IF the Cborrowing) authority al
ready exists" the Senator asked,
why increase the present power to
issue new obligations?
IF the proposals in the new leg
islation are wise, why has not the
R. F. C. made use of its authority
that has existed for some time to
do the very things the new legisla-
ton provides?"