Legislation in Tangle

Manawatu Times, Volume 60, Issue 53, 5 March 1935, Page 7

Legislation in Tangle

President Roosevelt’s Recovery Programme

INSECURE HOLD ON CONGRESS

United Press Association.—By .Electric Telegraph.—Copyright. Received Monday, 7.5 p.m. NEW YORK, March 3.

The New York Times' Washington iorrespondent says that Mr Roosevelt starts the third year of his administration to-morrow with his entire recovery programme in the worst legislative snarl since he assumed office on March 4, 1933, and started a series of dramatic moves to pull the nation out of the depression. ' To-morrow also marks the third month of Congress in session and not a single important administration imeasuro has been passed. The vast 4,880,000,000-dollar Work Relief Bill, the keystone of the President's doublepointed plan to succour the unemployed, while private industry would be stimulated to absorb thoso without work, is at present pigeon-holed by a committee. Mr Roosevelt is insistent on relief workers being paid a “security wage,” about 50 dollars per month, while a strong insurgent group is insisting that the prevailing rate be guaranteed. Meantime, while the issue is unsettled, little can be done with other important legislation, particularly the Social Security Bill, which was held up by a.House committee during the past week with both branches of Congress almost totally inactive. There is much agitation for an anti-adminis-tration measure, particularly cash payment of the veterans’ bonus, to which the .President is opposed.

The President’s insecure hold on Congress was further menaced to-day, when the Republican leadership of the Senate indicated that tho co-operation largely .followed in the past two years would be discontinued. The party will start the formulation of its own programme in opposition to tho “New Deal,” and press it, both in Congress and before the public. To-day the Treasury announced its first large-scale financial operations since tho Supreme Court's gold decision. It hopes to convert 1,850,000,000 dollars worth of fourth Liberty Loan bonds, bearing 4t per cent, interest, and 528,000,000 dollars worth of Treasury notes, bearing 2} t per cent, interest, into issues at lower rates of interest. For the first group 25-year bonds, bearing interest, at 2 7-S per cent., will be offered, and for the notes similar securities at 1 5-S per cent. These are the lowest rates offered for such securities for many years, and according to the Treasury, this reflects the willingness of the banks to co-operate with the Treasury.

Federal Financing

WASHINGTON’S “BABY” BONDS

WASHINGTON, March 2.

The Treasury has inaugurated a new type of Federal ilnancing, r.»\l to-day offered for sale an unlimited quantity of so-called "baby bonds,” ranging from 25 to 1000-dollar denominations, with a 10,000-dollar limit.for any one holder. The bopds were sold at a discount and are redeemable in 10 years. For example, an lS.7s:dollar investment brings 25 dollars a decade hence.

At a White House ceremony, President Roosevelt made the first purchase, buying from Mr H. M. Morgenthau, Secretary to the Treasury; six 25-dollar bonds, “one for each of my grandchildren and ono for myself." It is understood that the Administration is floating "baby bonds” for a twofold purpose—first, to relieve some of the pressure from the banks, which have heretofore absorbed great quantities of Government securities, and, secondly, to make as many citizens as possible "investors.”

The resemblance will be noted to British National Savings Certificates, a new issue of which was announced on Friday. Each Certificate will cost 15s and will be worth 20s at the end of ten years.

From February, 1016, to February 2, 1935, over 1,214,000,000 certificates were sold, representing a cash investment of over £956,000,000. Sir Arthur Steel Maitland, a former Cabinet Minister, referred to the national savings movement as one of the factors which bright Britain safely through the world economic crisis.