Show J Bruckart's Washington Digest Mixed Reaction Created by Hug Huge Money Lending Program Some Legislators Shout Others Are Bitter In Opposition to What They See as Another Government Credit Menaced Gigantic Flop I By WILLIAM BRUCKART Service National Press Washington D. D C. C W WASHINGTON WASHINGTON President Roosevelt Roosevelt Roose Roose- velt has asked congress congress for approval al of another gigantic money lending lending lending lend lend- ing program program He wants stints to put out as ns a stimulant to business H He wants to start right away and md he wants to keep the money pouring Into sinkholes through the Ule summer and fall and winter and sprin spring and next summer summer summer sum sum- mer too 0 The President is not proposing government spending as distinguished distinguished distinguished distin distin- from rom government lending I That is important While it has been shown by the experiences of ot the last half hall dozen years cars that this spending idea iden is just as successful I as trying to pull ones one's sell self up by byone's byone's byone's ones one's boot straps those who favor the lending program say this method method method meth meth- od of bringing about recovery has not yet been fully tested The brilli bril bril- li minded self appointed saviors of America therefore are out to prove that government cash can end enda a depression Arrival of the Presidents President's letter at the Capitol created quite a mixed reaction Some members shouted their of more manna for forthe forthe forthe the spawning ground for votes Others Others Others Oth Oth- ers expressed approval of parts atthe of at the gigantic outpouring of at cash and objected to other items of the pro pro- gram The third group on capitol hill at once voiced their wholehearted ed opposition to the scheme offer offer- ofTering offering k ing several reasons why they could not support the President Nearly everything that is done inthe inthe in inthe the national government is tinged with or steeped in politics So the political phases imm immediately were stressed by the opponents of the program and they are putting more steam behind their attacks as the days go by Some of these members members members mem mem- bers are objecting to further outlays by the government because they fear that government credit is about to crack any way and they predict the newest presidential plan will seriously endanger the governments government's governments government's governments government's govern govern- ments ment's financial stability The other group of oppositionists take a brutal position Say Roosevelt Is Paving Way for His Hi's They say Mr Roosevelt is proposing proposing proposing pro pro- posing this new lending program now in order to pave the way for his to a third term inthe inthe in inthe the White House I expect that we 1 v will hear more of this aspect of the j situation as the debate develops on the floors of the house and senate There is every reason to believe that the President will will- obtain approval approval approval ap ap- for most of his program He may not get it all but when it comes to getting a legislative program through congress nothing equals the distribution of money as bait Thus it appears to me that we can treat the proposition from the standpoint a of what will come from the program in the way of beneficial results 1 if any and to find if it possible possible pos pos- sible what the long range effect will be First let me recall that during the administration of Herbert Hoover er when the present depression first fastened its fangs on our economic structure there was the first major major major ma- ma jor outpouring of government funds f The Hoover thought was to stimulate stimulate stimulate late business by lending money and by spending for public construction It w was was s Mr Hoover too who sponsored sponsored sponsored spon- spon spon spon- self liquidating projects for tor which federal cash would be loaned the the idea being that a self ing project would earn oarn enough money to pay payoff off the government loan That was the way the reconstruction reconstruction reconstruction recon recon- finance corporation came into being and that was the greatest mistake of the early days of ot the world depression insofar as our nation nation nation na na- na- na tion is concerned Well the Hoover administration promoted loans for self liquidating projects in a big way As a stimulant stimulant stimulant lant of business the plan was a magnificent flop The current program program program pro pro- gram being modeled exactly as Herbert Hoover designed the first one also will be a glorious flop 4 There is as a matter of ot fact tact not 4 one bit of difference between the new Roosevelt pro program ram and the futile futile futile fu fu- fu- fu tile move in the Hoover day Few Have Confidence in Policies of Government V Wither ther this government lending idea is sponsored by R Republicans or Democrats by Communists or Fascists Fascists Fas the result is bound to be the same game as far as accomplishing anything anything anything any any- thing toward business revival By its Us very nature government lending I creates a doubt in the minds of every everyone one whether they recognize it just that way or not The feeling that most every everyone one gets is manie mani- mani fest e t in the form of a question well where arc we headed when conditions conditions conditions condi condi- are arc so bad that the United States treasury has to supply money upon which business business' opera operates tes L Which to my wa way of thinking is simply saying that few if any persen per per- sen I have confidence in the policies of their heir government It was dig dis tir true in the Hoover adminis p and I think it Itis ilis is equally true in in the Roosevelt administration But I want to go deeper into this problem There is something more that we ought to think about and it makes me shudder to talk about the possibilities inherent In moves of this kind by a democracy Mr Roosevelt says that without a doubt all of this money that he proposes to lend will be paid back i He said in his message on the subject subject subject sub sub- that there would be no loans approved unless there was assurance assurance assurance assur assur- ance that the sums would be repaid Which is all very well and good But experience of banking institutions institutions and other lending agencies Indicates indicates In in- that a certain per cent of the loans go bad Poor management management management manage manage- ment unforeseen business conditions conditions conditions condi condi- deaths of at key figures labor disturbances changes in the taste I of the buying public for certain i marketable products products all all of these things as well as the responsibility of the borrowers go to determine whether the money will be paid back And so it does docs not seem unreasonable unreasonable un reasonable to suppose that Mr I Roosevelt is a n bit a teeny bit optimistic about recovering all i of or the Ole funds that are loaned I Personal Political Element I Is the Most Disturbing If we can dismiss the doubt however however however how how- ever there yet remains the factor the potentiality of the program I that makes me jittery Frankly it itis itis I is the thc personal political element that I disturbs me most Let me illustrate When Senator Norris of Nebraska began fighting a number of years year ago for what turned out to be the TV TVA A he and andall andall andall all other sponsors of that socialistic owned government-owned power project shouted denials all over the place when It was charged they intended to put the government deeper into the field of private business All they wanted to do they insisted was to develop a government power plant that would serve to measure profits of private companies They argued that this experiment would show the power companies were taking too much profit out of the hides lides of consumers of electricity They said that if this were not true the TV TVA A would be a blessing blessingto to private ownership What happened The answer is pretty well known TV TVA A began competing with private companies wherever it could get in the field against them Its means of entering entering entering enter enter- ing some of the fields of competition competition tion were of ot the rotten rottenest est type On top of that came the operations operations operations opera opera- of Secretary Ickes and his public works administration Mr Ickes wanted to see sec more and better better better bet bet- ter publicly owned power plants He tried and is still trying to make power plants grow where power plants never grew before before all all from money loaned by the government Throughout the nation therefore are scores of at power plants small as well as large that were forced to sell out to the competing plant financed by Uncle Sam and the investors investors investors in in- got what the little boy shot at TV TVA A. A itself has driven flocks of at them out of the field and has negotiated negotiated negotiated ne ne- to buy one of the great privately owned systems that could not sell in competition with the government government government gov gov- octopus which has no taxes to pay pay and and borrows money on gov gov- backed bonds Officials Say Thought Is I. IsTo IsTo To Help Hell Private Business It Is only fair to report that the top officials in the government say there is no intention to use these funds as was done through the Public Public Pub Pub- lic lie Works administration There is they say no thought of discouraging ing fag private business the thought is isto isto isto to help private business But it is pointed out meanwhile that the funds which are arc planned to be used in this program will be under the control of half a dozen different agencies Those who know the setup setup setup set set- up in the federal government recognize recognize recognize rec rec- this fact as important It means this Every agency of at the federal government always has sought and always will seek seck to perpetuate perpetuate perpetuate per per- itself to expand its power and its functions Give it a hundred hundred hun hun- dred millions or so to play with and then express any doubt if it you youcan youcan can cnn that its officials will overlook any spot where they can boost their own Importance Truly that would be too much to expect Then give consideration to the fact that the current lending proposal proposal pro pro- contemplates expanding the original initiated Hoover initiated Hoover program into fiel fields s of loaning not hitherto occupied by a government agency Self liquidating ting highways toll bridges purchase of railway equipment equip equipment equip equip- ment construction of more electric lines to name only a few are fields where the hand of govern governmental governmental governmental mental bureaucracy will retard and handicap private Initiative the dear pul pee are arc going gain to tobe tobe tobe be given a great many things Ieuse tr u truse use whether the they need them or not nol and whether they want them diem or not Released b by Western rn Plc Ni pcr Union |