ASSIST RECOVERY

New Zealand Herald, Volume LXXVI, Issue 23389, 4 July 1939, Page 9

ASSIST RECOVERY

LOAN PROGRAMME

SEVEN CATEGORIES MR. ROOSEVELT'S IDEA ARGUMENTS IN SUPPORT WASHINGTON', June 28 President Roosevelt's new lending programme of over 3,800,000,000 dollars in order to hasten recovery, which it is proposed would be financed outside the regular Budget and would be devoted exclusively to self-liquidating projects, provides for seven categories of loans as follows: Non-Federal public works, such as bridges, hospitals, etc. dollars for two years. Boads. —750,000,000 dollars for four years. Railway equipment.—soo,ooo,ooo dollars for three years. Rural electrification. dollars for seven years. Farm loans. —500,000,000 dollars for two years. Loans to foreign Governments to promote United States foreign trade.— 500,000,000 dollars, two years. Special provision for the expansion of low cost housing.—Boo,ooo,ooo dollars. Stimulus to Employment The President said: "There is no reason why there should not be adopted, as a permanent policy of Government development and maintenance, a revolving fund, fed from the earnings of these Government investments and used to finance new projects when there is need for an extra stimulus to employment. "Such times will recur in the future, as they have in the past, and there will always be a need for public facilities and improvements to our natural resources."

The President added that the proposed programmes "can be financed through the issue of guaranteed securities by Government agencies, with a good prospect of repayment of both principal and interest through their earnings." Opposition In Congress The President lias sent an outline of his proposal to Congress and has expressed his readiness to confer with a committee. In view of the fact that considerable opposition has already developed in Congress 011 the regular 1,700,000,000 dollar relief bill, a vigorous fight is expected against the new plan, although the President particularly stressed that the programme, in the long run would not cost the taxpayers a cent.