BIG BOND ISSUE PROPOSED

Taranaki Daily News, 9 June 1932, Page 5

BIG BOND ISSUE PROPOSED

UNEMPLOYMENT IN STATES PROVISION FOR PUBLIC WORK HOUSE SUPPORTS MEASURE PRESIDENT’S BILL REJECTED .'.it- —* By Telegraph—Press Assn.—Copyright. Rec. 10 p.m. Washington, June 7. The House of Representatives to-day passed the Garner Relief Bill by 216 votes to 182 after defeating a substitute measure approved by President Hoover, eliminating the proposed funds for public works.

The fate of the Bill in the Senate is doubtful. If it is finally adopted the Bill will in all probability be vetoed by Mr. Hoover.

Mr. Garner’s Bill provides for a bond issue of £200,000,000 for public works, a £200.000,000 increase in bond issuing authorisation for loans to States, counties and cities, and a £20,000,000 appropriation for President Hoover to distribute as direct relief where necessary.

The president urges the adoption of a relief credit programme to solve unemployment. The 12 points in this programme include the early balancing of the Budget and the expansion of credit through existing machinery. : “The back of the depression cannot be broken by any single Government undertaking; it can be done only with the co-operation of the banks, industry arid agriculture in conjunction with the Government,” Mr. Hoover declares. Mr. Hoover stresses the difference between “non-productive works” (such as public construction and buildings) and “incoms-producing works” financed by the Reconstruction Finance Corporation. The President is of opinion that the expenditure of great sums on public works will place too heavy a burden on the taxpayers in proportion to the number of men employed, which he estimates as relatively few.