Evening star., 1939-07-24
Lending Bill
Held Sourceof
Jobs
Banking Committee
Recommends Swift
Senate Approval
BACKGROUND

BAChGROUND-
Faror1te deUice of Neu Deal
for stimulating industry has been
to speed up circulation of n1onev
through publicly financed con-
struction. ETC. Latest of such
programs UdS announced fen
10eeks ago as combination of
outright spending and self
hqutdating lending. Because OF
early opposition spending part
has been deleted from PROGRAM.
The Banking Committee urged
swift Senate approval of the ad-
ministration's s2.49O 900 900 lending
bill today with a claim it would
create 100000 new jobs
The committees report to the
Senate on the controversial measure
was prepared by Majority Leader
Barkley, who said he might call
night sessions in an effort to obtain
action by midweek. 1t still was
considered doubtful that Congress
could adjourn by this week end,
however.
In contending the program would
give jobs to 100000 men, the COM
mlttee report listed among those
who would benefit directly carpen-
ters, bricklayers, stonemasons ditch
dlggers, cement finishers land a
most of other skilled semi-skilled
and unskilled men who work with
them"
In addition, the reported con-
tlnued, secondary" work would be
provided in industries which supply
building materials.
High Unemployment" Feared.
The committee reported that the
country is faced with the prospect
OF continued high unemployment,
unless the Government helps to pro-
mote an outlet for idle funds. =
so long as funds saved are not
put to work, so long will it be i'm
possible to attain the. high national
income which the United States
is capable of producing.
Thrift is desirable; saving is a
necessary and sound practice. but
it must be accompanied by profit
aple outlets Tor savings.
This bill is designed to tap the
annual stream of savings so that
more of it will 60 into productive
use and thereby put idle men and
idle equipment to work
Saying that the program involved
self liquidating' projects, the re-
port added that it would not increase
the public debt but would raise
| the national income"
R. F. c. Would Borrow Money.
| Under the program, the Recon.
| struction Finance Corp. would bor-
row money for financing various
phases of the program.
Other agencies would distribute
the money for lending projects and
as repayments were received they
would be applied to liquidation Of
the indebtedness created by the
R. F. C.
1T is entirely correct and by no
means a misuse of words to say
that this program involves no in
crease in the public debt the re-
port said.
AS it reached the floor of the SEN
ate the measure was under fire of
Republicans who sought to decrease
! the sum involved or even to limit
the whole project to an increased
functioning of the R. F. C. Pulling
in the other direction was a small
Democratic bloc seeking to broaden
the legislation to include some out
right spending as well as lending.
The latter effort was being di-
rected by Senator Mead, Democrat,
of New York who was expected to
offer an amendment to add $780,
100000 P. w. A. fund to the measure.
Republicans Plan Real Fight"
| Senator Townsend, Republican, of
Delaware, told reporters that Re-
publicans would try to reduce the
total of the lending measure be-
low that fixed by the Banking Com
mittee and would make a real
fight" to eliminate new borrowing
| powers
Senator Townsend said the Re-
publicans probably would offer
amendments to reduce the author
ity for various loans and then would
seek to confine the program to re-
vision of existing lending powers.
| He asserted the R. F. C. could
finance the entire program a year
or so by amending the law to per-
NIT loans for tenant farmers and
rural identification projects.
The Banking Committee rushed
the lending bill to the Senate Satur-
day after making a net S3l0000,000
reduction from the original total of
$2,800,000 900. 1t cut from $780,
100000 to s5O0,O00,OO0 the proposed
loans for toll roads and reduced
from $5OO.OO00O to 5OOOO,00O the
projected outlays for railroad equip
ment. On motion of Senator Clark.
Democrat, of Idaho. it added $780,
100000 for reclamation projects in
the West.
Provisions of Measure.
AS sent to the Senate floor, the
measure would authorize the r. F. c.
to borrow up to $5O0,O0O,0 900 for toll
roads, $3.50 900 900 for railroad equip
ment, 0.000 900 for projects man
aged by States and cities, $500, 900 900
(See CONGRESS, Page A-3D