AN INSECURE HOLD

Hawera Star, Volume LIV, 5 March 1935, Page 5

AN INSECURE HOLD

Roosevelt Administration Facing Worst Period in Career SERIES OF DRAMATIC MOVES OPPOSITION TO ‘NEW DEAL’ (United Preen Association— By Electric Telegraph Copyright.} NEW YORK, March 3. President Roosevelt starts tlie third year of Ins administration, to-morrow with his entire recovery programme in. the worst legislative snarl since he assumed office and started a series of dramatic moves to: pull the nation out of the depression, writes the Washing- . ton correspondent of the New Y T ork Tjmes To-morrow also marks the third month that Congress has been in session, and not a single important administration measure has been passed. The vast 4,880,000,000 dollar work relief Bill, which is the keynote of the. President’s double-pointed plan to succour unemployed while private .industry is stimulated to absorb those ivitnout work, is at present pigeon-holed bv tlie committee. : President Roosevelt, is insisting on relief workers being paid a “security w’agq,” about MO 1 dollars a month, while a strong insurgent group is insisting that the prevailing wage rate be guaranteed. In the meantime, while the issue is unsettled, little can be done with other important- legislation particularly the Social Security Bill, which has‘been held up by the House Committee during the past week. With both branches of Congress almost totally inactive, there is much agitation for an anti-administration measure, particularly a cash payment of the veterans’ bonus, to which the President is opposed. CO-OPERATION WITHDRAWN. The President’s insecure hold on Congress was further menaced to-day when the Republican leadership of the g Senate indicated that the co-operation largely followed in the past two years would be discontinued- The .party would start the formulation of its own programme in opposition to the “new deal” and press it- both in Congress and before tlie public, .* To-day the Treasury announced the first large-scale financial operations since the Supreme Court’s gold decision. It hopes to convert 1,850,000,000,000 of the fourth liberty loan bonds bearing A\ per cent., into issues at lower rates of interest. For the first group 25-year bonds at 2 7-8 per cent, will be offered and for the notes similar securities at 1 5-8 per cent. These are the lowest rates offered for such securities for many years, and according to the Treasury, reflects the willingness of tlie hanks to co-operate with the Treasury. ■ The Treasury inaugurated a new type of Federal financing yesterday, offering for sale an unlimited quantitv of so-called “baby” bonds, rangijicr from 25 to 1000 dollar denominations, with a 10,000 d .filar limit for any one holder. Iho bonds are sold at a discount redeemable in ten jears. For example, an 18-/5 dollar investment brings 25 dollars a decade.lienee. At the White House ceremony President Roosevelt made the first purchase buving from Mr. Henry Moogenthan, Secretary to the Treasury, six 25 dollar bonds, “One for each of my grandchildren and one for myself,” said the President. . . It is understood that the Administration is' floating the “baby” bonds for a two-fold purpose—firstly, to relieve some of the pressure f"om the banks, which till now have absorbed great quantities of Government- securities; and, secondly, to make-as many citizens as possible investors.