Evening star., 1946-10-28
|0fficia|sUrge
Wider Planning
|0f Public Works
More Cautious Policy
On Bank Looms Also
| Is Recommended
BY the Assoeiotsd Press

Storm signals Of a depression
ahead brought from Government
officials today a warning that PLAN
ming for public works should be ex-
panded greatly and that banks
should adopt more cautious policy
toward loans.
At the same time, a Federal Re-
serve Board study proposed cen-
tral underwriting fund in the re-
serve system as a permanent meas
ure to guarantee loans to small
businesses to bolster that phase Of
the economy.
The call for additional nom
Federal public works planning came
from Maj. Gen. Philip B. Fleming,
Federal Works administrator. His
senliannual report said the goal Of
IS ,0OO, ,000, 900 originally set for this
category would not make enough
jobs at present inflated costs.
A similar warning came from
George H. Field, commissioner Of
the Federal Works Agency's Bureau
OF Community Facilities. Mr.. Field
said there were serious gaps" in
the country's reserve Of planned
community public works.
Harl Urges Caution on Banks.
More planning should be start
3D." he said, land the large volume
of plan preparations that are now
under way should be brought to
completion-if necessary, by State
planning aid programs or by Fed
eral aid"
The call for caution on bank
loans, particularly on real estate at
current prices, was issued by Maple
r. Harl, chairman of the Federal
Deposit Insurance Corp, also in q
semi report. He expressed
hope that AL bankers were pre-
pairing for time when prices and
business activity would level OF
and perhaps would decline by as
suring themselves of an ample
margin on safety and protection in
all assets they acquire"
| Mr.. Harris warning, citing a ST.
000, 10000 rise in real estate loans
by banks in the first half of this
year, is the third Of that nature TO
be issued recently by officials.
Mr.. Harl also said the time had
come for the FDIC to start repay
ing the Government $3.50, 900 900
provided as capital in 1882, suggest
ing the money might be used for
retirement of the Federal debt"
Reserve Of Plans.
Gen. Fleming said a moderate
sized" reserve of State and local
project plans now had been built
up and could be pulled OF the shelf
when private construction declines.
Plans drawn with Federal aid
would furnish $3.50 900 900 worth oi
construction; those to be completed
without Government funds woult
| give another $1,125 ,000, 900 worth
and unaided planning still in th'
design stage calls for about $4,'
: 600 900 900 in construction.
i This total is above $1,000, ,000, 600
J but Gen. Fleming said the flgurei
should not be added because it wa,
very uncertain" how many OF the
Iplans still in design status would b
completed.
! I'VE have a good start on thu
i ($5, ,000, 900 ,000 goal originally set.
Gen. Fleming's 70-page report stated
THAT goal, however, can no Longer
be considered adequate.
"A dollar volume of public works
construction that promised, . year
ago, to furnish q given amount OF
construction employment would now
fall short of the results then ex-
pected.
"It is, indeed, difficult at this
time, to fix planning goal in terms
of dollars, in view Of the rising trend
in the cost of materials and labor. II