Show 0 I 1 national topics interpreted by william bruckart washington it has been seldom since president roosevelt took the helm of govern jobs not ment that wash gifts of money ington has witnessed such an upheaval of conditions and plans as has occurred in the last few weeks part of the changes result naturally enough from development of plans for submission of new national policies to congress which will convene again in about six weeks the other part cornes comes from a sudden determination mi by the administration to revise its recovery methods possibly the alie most significant of the forthcoming change in recovery plans is the determination to try at least to get away from direct relief instead of plain gifts of money the administration is 12 now seeking to find additional means tor for creating work so that individuals needing help may obtain their relief in the form of jobs for which the government will pay officials still are loath to discuss exact figures but they fire are nevertheless th eless going steadily forward with plans for co the vast fed eral relief machinery into an extensive program that will embrace such things as slum clearance low cost housing and rural rehabilitation sir mr roosevelt will wait until the last moment before he fixes in his own mind how hov many hundreds of millions of dollars will be needed to carry out these projects the total cost obviously will vill depend somewhat upon how quickly the dole can be abandoned it may run into billions of dollars because according to some authorities removal from the dole is going to be opposed by certain tapes of persons and it seems they can hardly be blamed because once the government altered its traditional policy and made direct gifts of money it created a new psychology and the people who benefited thereby quite naturally will be unwilling to have the source of the gifts closed for this easy manner of living one of the plans under consideration as a part of the whole program Is provision for employment by direct federal subsidy for housing under this clairl the government would advance part of the cost for individual homes of low price construction in keeping with the theory that tle e number on relief rolls will descend to in direct proportion to the revival of palate construction advocates of this plan contend that the cost would be less than outright relief they say that with the government advancing part of the funds needed private lendin lending agencies would feel more secure and would offer aid in the form of the remainder of the loan necessary it has ton long been recognized that recovery cannot be accomplished without a tre need private increase construction in construction private construction however will not go forward in a period of uncertainty now dow no more than it has in other years and the experts have decided that the government must take the lead in this direction they have advised the president there can be no real upturn in private building operations unless a start Is nude made by the government whether this Is the right theory of course none can foretell it may turn out to be the government is pouring rd ad dit ional funds down just another rat hole as it has on numerous other occasions in the course of recovery experiment my conversations with men in both public and private life men who are qualified to judge lead me to believe that there will be considerable construction resulting from this program the conclusions which have been expressed to me it must be said frankly do not indicate that there will be any such total of new construction st development under the new administration program agthe as the enthusiastic exponents of the pro gram now contend there are numerous reasons for these conclusions as they hav have e been explained to me one of these reasons and perhaps the most important Is that no one is going to build d a house unless he be feels that he can continue to pay for it another road which tile the administration is now following in its efforts to cause easing up money to low flow on bank loans ore freely Is the recent ruling easing casing restrictions on bank loans heretofore banks have not been permitted to make loans of more than 10 per cent of their capital and surplus for industrial purposes to one borrower the treasury now has abrogated this provision ton long regarded as a sound banking ruling and lias has told the banks they can loin loan more than 10 per cent provided the amount loaned above 10 per cent Is guaranteed guarantee by the reconstruction finance corporation or the federal reserva system it od that on al the same day that the treasury policy was announced one of the largest banks in the united states reported privately that one of its vice presidents had returned from a six weeks scouting trip in an effort to find places where it could loan money this man visited important cities in 10 16 states lie ile Is a practical banker and he Is thoroughly acquainted quain ted with the means of approach to potential borrowers but ills his six weeks tour netted one loan application that banks report may sound silly because there are so many people that need money yet it must be remembered that a bank Is trustee for the funds placed in its care by its depositors and it cannot hand out money with reckless abandon tt it wust must feel reasonably sure that there will be a repayment and this was the thin thing which the banks vice president filled failed to find there were plenty of individuals and corporations that needed deeded money but they had bad no security to offer and little to guarantee that they could repay the borrowed funds financial experts therefore are not unduly excited about the latest treasury ruling which was released with much gusto and with state ments that this will free safiy many hundreds of millions to business I 1 am told that the banks are chock full of loose cash reports to the treasury certainly indicate that to be a fact cut but when borrowers who need money have no security and when business Is at such a low ebb that only the minimum of funds Is needed I 1 believe it can hardly be said that the bankers are wholly to blame the bankers have been vigorously criticized in the last four or five years and obviously a considerable on sid erable spanking was due them on the other land hand I 1 think it Is a plain statement of fact that you can call no more force people to borrow than you can make a horse drink after you have led him to the trough senator gerald P nye north dakota progressive republican has started on a speak unusual ing tour that as Speaking Tour far as I 1 can find Is without precedent the senator Is chairman of the special senate committee named to investigate the munitions aircraft and shipbuilding industries to determine Nh whether ether these businesses have been active la in foment ing trouble between the nations of the world the committee has held bell hearings covering a period of three weeks and the hearings will be resumed later with the prospect that they may run on for many months senator nye Is making a series of six s ix speeches in the united states and one in canada dealing with the question of who really starts wars wara ile he has announced that he be desires to tell the country how bow nations are driven into conflict find and the inference is of course that lie believes makers and others producing material for war are at the bottom of the alie heap iut the point Is that mr nye personally Is an advocate of government ownership of all plants now engaged in the production of anything used in wars between nations ile he Is authentically reported to have a draft of legislation in mind which he will present to the forth forthcoming com congress lie he Is not dot alone in holding this belief for at least four other members of his committee entertain the same general trend of mind there are seven members of the committee so that it Is apparent the nye plan will have a majority of that committee supporting it if and when it Is presented to the senate I 1 have examined records rather comprehensively in an effort to dis coer whether ever before any senator or member of the house had gone out to the country with an appeal for support of legislation under a circumstance such as this the committee has three or four months more of investigation ostensibly to ascertain all pertinent facts despite the fact that the senate his has voted money for the committee to make this investigation g and the money will be spent at hearings senator nye has proceeded to make known ills his views in advance disclosures made by the committee thus far have been accepted generally I 1 think as showing there was some tire fire as the cause of the smoke certain testimony given before that committee linked some of the american munitions makers iab foreign interests whose designs were of a political character it was shown liow low some of the foreign agents had bid attempted to provoke trouble between nations of europe and the logical assumption Is that it such activities occurred in two or three instances they must have occurred in many others ot liers nevertheless there Is a considerable amount of criticism hoard board in washington about senator nees plan of action because it Is contended by these critics it Is hard to see ho how V the senator can conduct an unbiased investigation vesti gation gatlon after afler having committed hini himself self in this way 0 western newspaper union |