NEW MOVE IN U.S. RECESSION

Press, Volume XCVII, Issue 28531, 10 March 1958, Page 9

NEW MOVE IN U.S. RECESSION

Proposed Extension Of Benefits (N.Z. Press Association—Copyright) (Rec. 9 p.m.) WASHINGTON, March 8. President Eisenhower, in a new move to combat the United States recession,. today proposed a temporary extension of periods of benefits paid to unemployed workers. He announced in a letter to Republican Congressional leaders that he would send such a proposal to Congress in the near future. He said that he had also ordered a speed up in Government expenditures on highways, homes, water development and other public works programmes to stimulate the economy.

The President proposed that the Federal Government should temporarily take over State responsibilities for unemployment benefits and use its own funds to

extend the period for which they are paid.

The amount of unemployment benefit and the period for which it is paid vary from State to State, the average time of limitation being about 26 weeks. He announced he would submit the proposal to congress as soon as the Secretary of Labour had

drawn up the details. The White House press secretary, Mr James Hagerty, told a press conference that he thought the unemployment benefit period would be extended “in terms oi months.” Other Legislation The President noted that he had already sent Congress a number of recommendations for legislation which could be of great help in stimulating the economy. The Budget Bureau had just released 200 m dollars in additional funds to boost construction of low-cost homes, and the Defence Department had begun to award more procurement contracts in labour surplus areas, with first priority going to small business concerns. The acceleration of civil projects such as the improvement of roads and facilities in national parks would result in the spending of 200 m dollars several months earlier than planned, the President said.