Show economic economic highlights irlie possibility of oc aiding small business with government loans lias has long been tin nn active though ulet inlet political ISSUP issue back in hoovers day the began providing certain kinds of large business with help when needed those in ili which the publics financial interest was wide serend A very ery large part af these loans have bem been repaid and the probability Is that all but it a microscopic percentage cLIl tage of loans still outstanding will all eventually be met making sate safe loans to small business Is a horse of a different color very often a small business without sufficient credit to obtain bank loans Is on the ragged edge or of failure due to poor management cut competitive conditions or samo othor other cause and to lend to it would simply amount to futilely pouring good money after bad inasmuch as the loans in each case would necessarily be confined to relatively small amounts the cost of overhead and supervision might bo be outrageously high and once tile lie principle of government loans to small business was established it is highly probable that a veritable flood of applications rea reasonable goal and unreason unreasonable able honest aud and dishonest would flow in five file years ngo congress authorized tho the RF 0 to make loans to little business under certain circumstances and last year this blodys lending powers were further broadened one but little happened bulk of the business men applying for the money reported that in their lew kleiv the R F P Cs standards were too high and that any concern which could qualify could get money from banks with less red tape upshot of fill all this Is a now new let act bile mead bill which proposes that aliat the shoot the works in ill providing money for little business the mead bill la Is more or less similar to to the plan it would authorize the to insure banks against loss 1098 to the extent of 00 90 per cent of any business loan maximum individual loan would be 1 maximum maanum time of repayment would be 10 years maximum annual nual interest would be 4 per cent in payment tor for the insurance the would receive a portion of tile the interest ranging from 14 ot one per cent to a maximum of I 1 per cent as conditions warrant tile the Is given authority to decide wilether whether a loan can or cannot be cla classified as for a commercial purpose and so come within the intent of the law apparently ap re I 1 I 1 tl Y it would be up to the banal banks a 1 in n each case to decide whether or not a loan wits was safe to many economists the mead bill seems a nightmare they feel it would encourage an avalanche of unsound loans and inevitably result lit la terrific losses to the government ern ment and on oia the other hand they say if this potential disaster were prevented by stiff mud and bank requirements little business men in search of capital would be no better off than they ar are at present host best friends of the bill are the spending advocates who would alko to see more money put into ch dilation circulation irrespective of method 0 some sonie federal R reserve 0 serve hoard board mei members a among other government officials fici als have spoken lit in its ita favor there seems seeing to be little enthus lasin labin for it among adiong high treasury officials who under tinder mr morgen thaus thatis leadership seem to be be couill g constantly more consort conserva a the in fit fiscal matters but it Is not expected that they will make strenuous efforts in ili opposition most banks are arc against the mead kill on oil the grounds that it would extend government authority over oer the nations stored avital and that legitimate credit needs of small business can call be easily met now chance of the bills passing according to washington experts who nho have been sounding tile the views of congressmen Is about certainly present conditions in Elti europe rope cannot be described as tranquil but many think that the possibility of war in the near future has materially lessened A report leport that hitler plans to make a definite offer of peace to france britain BlIt aill and the U S lit in return for swooping sweeping colonial territorial concessions has gained credence in high quartets quarters here a and 11 d abroad and recent nonn news from london indicates that the chamberlain government may be seeking pacific ways and means of providing hitler with tile the living space he asks for the carlma 9 1 of russia grows more complex the inie refusal of tile the soviet to join with france and england E in a mutual security pact unless tile the latter countries would accept Rus sias stringent terms to the letter came with it a shock to the european democracies which had looked to the earcy completion of an all entente but moscow still turns a 4 willing if skeptical ear to london and paris and the hope of alliance remains strong in this country sentiment in favor of isolation seems to have grown now that the first emotion of horror at hillers Hit lers aggressions has abated and there Is a fair chance that congress will eventually al Y enact neutrality with teeth in it in ill the meantime the army rolls increase and the navy lays new keels as we build ahe the greatest pence defensive war machine lit in our history |