Evening star., 1950-05-06
Action 10 Be Pressed
On Truman Program
To Aid Small Business
By Joseph A. Fox


at this session of Congress on
President Truman's new five
point program to help small busi-
ness and promote a stable and
prosperous economy"
Mr.. Truman submitted the pro-
gram in special message to Con-
gress late yesterday. 1t calls,
among other things, for Govern
ment insurance of loans to small
business and for creation of in
vestment companies to make
long-term loans.
Senate Democrats praised the
proposals. They drew sharp crit
iciSm from Senator Wherry, Re
publican, Of Nebraska. New York
banking circles gave them cool
reception. There was no immedi-
ate comment from small business
groups.
Senate Majority Leader Lucas
and Democratic Senators May
bank of South Carolina and Spark
man of Alabama called the Presi-
dents program sound and con-
structive.
Hearings Promised.
They said they would seek ac-
ton st this session of Congress.
Chairman Maybank of the Senate
Banking Committee promised to
start hearings by June /.
Senator Humphrey, Democrat,
Of Minnesota, member of the
new special Senate Small Business
Committee, said the Presidents
proposals chart "a course of action
that has long been needed and
that will offer hope and incentive
to the American economy"
Senator Wherry, Republican
floor leader, contended, however,
that small businessmen want less
Government spending, lower taxes
and less Government interference
in their business. He charged
that the program "for putting the
Government in business shows
that the President is "far from
understanding the problems Of
small business
In his message, Mr.. Truman
said the proposed program would
cover more than go per cent of
the nearly million business con-
Germs which provide jobs for 20
million people. 1t would, he as
serted, reduce the handicaps
under which small business oper-
ates" and broaden the opportuni-
ties for further vigorous expan-
sion"
Proposes RFC Transfer.
The President also explained
that supervision of RFC also
should be entrusted to the Secre-
tary of Commerce and added that
he intended to submit soon re-
organization plan that would take
care of the transfer of the RFC,
long an independent agency.
In connection with his plan to
aid business, the President advo-
Gated: ,.r o. .al.-
= /. Provision for the insurance on
a self-suStaining basis of bank
loans up to $4,000 and repayable
within five years.
2. Authority for the Federal
Government to promote and char
ter national investment companies
which would increase the avail
ability of venture capital to small
and independent enterprises with
somewhat larger financing re-
quirements.
3. Broadening of the Recon-
struction Finance Corps lending
powers to care for "the legitimate
credit requirements of business
when private financing is unavail-
able"
4. Strengthening and improve
ment of the technical and man
agerial aides now provided for
business by the Commerce Depart
ment.
S. Consolidation of these func-
tions with one exception-llnder
the Secretary of Commerce.
Sees every Little" Cost.
The President emphasized that
the tlve-point program will cost
the Federal Government very
little" and will yield the Nation
great rteurns."
He said he is not proposing
that ony one who may wish to
start a business should be given
financial assistance" Neither
should the Government guarantee
the success of any individual
enterprise.