Show grave responsibility rests on city state and county officials under title I 1 of tho the emergency relief and construction net act of 0 1932 the sum of was ampro by the federal government for loans to political subdivisions tons for the purpose of direct relief 1 10 to the unemployed od As of may 22 1932 virtually per cent of this sum had been used having boon been borr borrowed owed by 42 states and 2 territories under title 11 II ot of tile the emergency relief and construct construction loa act of 1932 tile the sum of was waa appropriated for fully and adequately secured and self liquidating loans tor for construction purposes As aa ot may 22 1933 loans amounting to only 13 per cent of t the h tup ampro r iri and nd only ac or 18 per cent ot of the amount appropriated had actually boon been disbursed the inevitable conclusion to this comparison la Is that the volume of funds released for work creating construction was wag entirely out of line with the volume of funds funda re leased tor for morale destroying direct relief perhaps her hero 1 la art an explanation of the emphasis emp haala placed on the public works program in the national industrial recovery act of 1933 our purpose in making this comparison and drawing this conclusion Is not to attempt to place pla co the blame on oil anyone tor for what might be termed an outstanding preference tor for the dole as a means of relieving unemployment as aa opposed to public works as aa a means of 0 relieving it we know from our own experience in attempting to help municipalities secure construction loans that it took lots lota of time and effort to woric up a self liquidating project satisfactorily we realize that many and corporations corpora tlona willing to proceed with construction projects lacked adequate credit and that electors of communities pos adequate credit in ili many cases we were re unwilling to assume ad dit ional bunions of indebtedness in debt edness at the time and ani that there were ninny many legal and constitutional obstacles our purpose in ili making com coin carlson Is simply to indicate the for prompt a cllon on oil the part of officials of political subdivisions IQ in avalli availing tig themselves of federal loans for construction under tile tho bernis of tho the NIRA so that recovery can become a tact fact 1111 1 1 1 W 0 a of the dole 1010 bo be avilde av recovery He covery program hinges on construction revival As pointed out by the national recovery committee for water works construction tile tho present great upturn in ili manufacturing activity requires corresponding speed in placing all the 33 billion dollars worth ot of work authorized by the NIRA the responsibility for speeding up tip construction work for approximately 2 of these 33 billions ot of dollars falls upon pon stathi county and municipal bodies their cooperation with the government in ili int biating work on needed facilities Is therefore essential to tile the success of tho the recovery plan federal grant of 30 per cent not strictly a gift it la Is pointed out that tile tho offer of a grant of 30 por per cent of the cost coat of labor and materials for qualified projects Is not a gift ot or federal funds but an all attempt by the federal government to equalize costs coats and benefits available under tile the NIRA extending these benefits to districts not producing construction r as well as to districts producing them tho the federal gov ont anticipates it a considerable increase in III tax revenues ir if the recovery plan succeeds both immediately and for many years to come thus the grant of 30 per cent of tho the cost coat of lalor labor arid and materials Is simply a proportional rebate in ili advance 01 ol of the increased federal tax revenues resulting from the con going ahead now will save 60 per cent of annual cost As aa by tile national recovery a grant of 30 10 por per cent of the cost of labor anti and mo ina tor lily amounts to ft a grunt grant of about 25 por par cent of 0 tile total cost of tile the project roje ct which reduces reduce tile tho amount to be borro borromei weI to about 75 per cent of the total cost coat the federal charge rot cof in torset 4 per cent plus plug amor tiza tion for a 25 boar period on the loaned sli per cont colit 11 Il lounts to G 61 j per cent on oil tho money borrowed borro weil or of a total annual t charge large of about 49 40 per cent on oil tho the to total al cost of 0 the project in other words a community going ahead now and alii taking advantage of tho the 30 por per cent grant and alio low into inter est rate of 4 per cent can call finance Us its project Onte intel eat lost and at a total annual charge of 0 a fraction less than 49 per cent for ox amplo a project costing now will requite require annual payments of only 50 to cover interest and amortization it if ho however a falls to go 90 ahead now but finds it must build its needled fac facilities within tile tho next taw few years at costs cosla for labor materials and money adjusted to 1925 ag prices ti alin cost coat of tile the game project bo 11 fill a tely oo wit the annual charge for interest and a pa I 1 amortization totaling or more moio than wa annual cost re wiling jom h om under tinder tile tho national recovery plan necessity for balanced local budget tho the president in ili determining whether to allow or withhold a grant brant will also alao consider to what extent the budget ot of tile the applicant la Is balanced or in ili tile tha process of 0 balancing and will prefer those public bodies which put their finances in ili order it should bo be remembered that this la is strictly businesslike business like reasoning and does not take into account tho necessity for continuance and eti enlargement largemont of the dole which la Is inevitable it if tile the construction program gi am Is ig not followed through As pointed out in ili the opening paragraphs of this article the tendency to resort to tho the uso time of federal funds for the dolo dole Is already all too apparent like loans for construction those these federal loans tor for the dolo dole eventually fiust bo be repaid while investment in construct construction loll affords a means for eventual repayment investment in ili the dole dola affords nothing but disintegration of character and accumulation of debts debth which future generations generation will find it painful to pay it plainly follows that during tho the next few months officials of political subdivisions will write tb the 0 r record e c by which theli their right to con thimio in ili office under modern modem economic conditions will be judged and it ft Is plainly stated in the national recovery act that this unparalleled offer off r of the federal government expires on june 16 1935 or earlier it deemed advisable by the president ilpo progress |