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Show THE SEARCHLIGHT Post-War Planning the difference between Treasury and its statutory at that time had the cost of reached quarter billion dollars. to be about two However, silver to the value. about The profits one and three They are estimated now billions. at the time the plan was offered the union organization and the mine and smelter operators were busy stepping up production of nonferrous metals in a program of national de- fense. Unemployment also was steadily declin- ing, with a manpower shortage inevitable if America should enter the war. Under the circumstances efforts to stimulate discussion of such a program were abandoned. But now, with the successful conclusion of the war clearly predictable, and with the urgent need to provide now for the possibility of post-war unemployment, we offer the plan again, with certain additions and changes, program for post-war-stabilization. as a sound It is offered not as a set, unalterable formula, but of discussion out of which may that will do the job. as a basis come a program We do not urge that a building program alone will solve every economic problem facing the nation. But if a building program be coordinated with a highway program; with a public works program; with railroad rehabilitation: with expansion in plastics and kindred industrial developments, we believe that mass unemployment can be avoided after the war. And mass unemployment must be conquered in America if democracy is to survive. and of five billions for rural urban housing is now proposed. Two bil- lions of that fund should come from profits, already in the erations. A Treasury, arising from similar amount, or more, The fund thus would be cost to the Federal Treasury, ment if the interest rates are to sufficiently low to stimulate—or created without an essential elebe held at levels even permit—a gigantic national building program. All unnec- essary rake-offs must be eliminated if a building program is to be successful. Ceilings should be set on building materials. Employees in the building and material trades should be put on a guaranteed minimum annual salary similar to that now proposed for steel and other indus tries. Administrative Fund, and machinery for handling the for rigid inspection service, could be the present FHA, or a new and more elaborate organization. Building standards should be put and kept at new high levels of excellence. of course, Loans, should be limited to new construction —rural and urban. And servicing loans should be in the hands of qualified private institutions already in the business. We believe that such a program will help to maintain business at a prosperous level: will promote nation-wide employment; and will con tribute to the maintenance of the national income at a figure high enough to support the enormous debt burden resulting from the war. A. revolving fund billions could be provided by the issuance of additional legal tender, United States notes—i. e., greenbacks. silver op- could be added from the writeup in gold values, which also constitutes a Treasury profit. Any further amount necessary to bring the fund up to five The Fund should be administered by the Reconstruction Finance Corporation or a_ similar Federal agency. Arrangements might also be feasible for rediscount privileges on a very low basis—maybe one per cent—for bank loans for building in the higher cost brackets. However, in the low-cost field, the cost to borrowers should be kept as low as possible. A breakdown of charges to borrowers should not exceed the following: Mutual mortgage insurance............ 4 per cent Dey Cie) GANS 13 per cent Administration and profit margin 1 per cent Total cost to borrowers a.¢ DeE cent All profits arising from operation of the Fund should be returned to the Federal Treasury. By restricting loans to low-cost construction —not to exceed $4,000 or $5,000—the lending market of private institutions for private money The part of would not be seriously impaired. the market remaining would be a lucrative field. And probably a greater proportion of private |