A———_o—
Created by
Lending Program
WASHINGTON .—President Roose-
velt has asked congress for approv-
al of another gigantic money lend-
ing program. He wants to put out
$3.860,000,000 as a ‘stimulant to
business.” He wants to start right
away and he wants to keep the
money pouring into sinkholes
through the summer and fall and
winter and spring and next sum-
mer, too.
The President is not proposing
government spending, as distin-
guished from government lending.
That is important. While it has
been shown by the experiences of
the last half dozen years that this
spending idea is just as successful
as trying to pull one's self up by
one's boot straps, those who favor
od of bringing about recovery has
not yet been fully tested.
liant-minded, self-appointed saviors
of America, therefore, are out to
prove that government cash can end
a depression.
Arrival of the President's
at the Capitol created quite
reaction. Some members shouted
their halleluiahs of more manna for
the spawning ground for votes. Oth-
ers expressed approval of parts of
the gigantic outpouring of cash and
objected to other items of the pro-
gram. The third group on capitol
hill at once voiced their wholeheart-
ed opposition to the scheme, offer-
ing several reasons why they could
not support the President.
Nearly everything that is done in
the national government is tinged
with or steeped in politics. So the
political phases immediately were
stressed by the opponents of the
program, and they are putting more
steam behind their as the
days go by. Some of these mem-
og
- nrlre
attacks
by the government because
fear that government credit is about
to crack any way, and they predict
the newest presidential plan will
seriously endanger the govern-
ment's financial stability. The other
group of oppositionists take a
brutal position.
Say Roosevelt Is Paving
Way for His Renomination
They say Mr. Roosevelt is pro-
posing this new lending program
now in order to pave the way for
his renomination to a third term in
the White House. I expect that we
the floors of the house and senate.
that the President will obtain ap-
proval for most of his program. He
may not get it all, but when it comes
to getting a legislative program
through congress, nothing equals the
distribution of money as bait.
Thus, it appears to me that we
can treat the proposition from the
standpoint of what will come from
the program in the way of beneficial
results, if any, and to find, if pos-
sible, what the long range effect will
be
the administration of Herbert Hoov-
er, when the present depression first
fastened its fangs on our economic
structure, there was the first ma-
jor outpouring of government funds.
The Hoover thought was to stimu-
late business by lending money and
by spending for public construction.
It was Mr. Hoover, too, who spon-
sored “‘self-liquidating projects’ for
which federal cash would be loaned
—the idea Being that a self-liquidat-
ing project would earn enough
money to pay off the government
loan. That was the way the recon-
struction finance corporation came
into being, and that was the greatest
mistake of the early days of the
world depression insofar as our na-
tion is concerned.
Well, the Hoover administration
promoted loans for self-liquidating
projects in a big way. As a stimu-
lant of business, the plan was a
magnificent flop. The current pro-
gram, being modeled exactly as
Herbert Hoover designed the first
one, also will be a glorious flop.
There is, as a matter of fact, not
one bit of difference between the
new Roosevelt program and the fu-
tile move in the Hoover day.
Few Have Confidence in
Policies of Government
Whether this government lending
idea is sponsored by Republicans or
Democrats, by Communists or Fas-
cists, the result is bound to be the
same as far as accomplishing any-
thing toward business revival. By
its very nature, government lending
creates a doubt in the minds of
every one whether they recognize
it just that way or not. The feeling
that most every one gets is mani-
fést in the form of a question: well,
where are we headed when condi-
tions are so bad that the United
States treasury has to supply money
upon which business operates?
Which, to my way of thinking, is
simply saying that few, if any, per-
sons have confidence in the policies
of their government. It was dis-
tinctly true in the Hoover adminis.
tration, and I think it is equally true
in the Roosevelt administration.
But I want to go deeper into this
problem. There is something more
that we ought to think about, and it
makes me shudder to talk about
the possibilities inherent in moves
of this kind by a democracy.
Mr. Roosevelt says that, without
a doubt, all of this money that he
proposes to lend will be paid back.
He said in his message on the sub-
ject that there would be no loans
approved unless there was assur-
ance that the sums would be repaid.
Which is all very well and good.
But experience of banking institu-
tions and other lending agencies in-
dicates that a certain per cent of
the loans go bad. Poor manage-
ment, unforeseen business c¢condi-
labor
disturbances, taste
the
in the
for certain
products—all of these
things, as well as the responsibility
changes
buying public
whether the money will be paid
back. And so it does not seem un-
reasonable to suppose that Mr.
Roosevelt is a bit, a teeny, weeny
bit, optimistic about recovering all
of the funds that are loaned.
Personal Political Element
Is the Most Disturbing
If we can dismiss the doubt, how-
ever, there yet remains the factor,
the potentiality, of the progranm
that makes me jittery. Frankly, it
is the personal political element that
disturbs me most.
Let me illustrate. When Senator
Norris, of Nebraska, began fighting
a number of years ago for what
turned out to be the TVA, he and
all other sponsors of that socialistic
government-owned power project
shouted denials all over the place
when it was charged they intended
to put the government deeper into
the field of private business. All
they wanted to do, they insisted,
was to develop a government power
would serve to measure
They
argued that this experiment would
show the power companies were
taking too much profit out of the
hides of consumers of electricity.
They said that if this were not
What happened?
pretty well known. TVA began
competing with private companies
wherever it could get in the field
against them. Its means of enter-
ne of the fields of competi-
tion were of the rottenest type.
On top of that came the opera-
tions of Secretary Ickes, and his
public works administration. Mr.
Ickes wanted to see more and bet-
The answer is
T™yU
and is still trying, to make
power plants grow where power
plants never grew before—all from
money loaned by the government.
Throughout the nation, therefore,
are scores of power plants, small
as well as large, that were forced
to sell out to the competing plant,
vestors got what the little boy shot
at. TVA, itself, has driven flocks
of them out of the field and has ne-
gotiated to buy one of the great
privately owned systems that could
not sell in competition with the gov-
ernment octopus which has no taxes
to pay and borrows money on gov-
ernment-backed bonds.
Officials Say Thought Is
To Help Private Business
It is only fair to report that
the top officials in the government
say there is no intention to use these
funds as was done through the Pub-
lic Works administration. There is,
they say, no thought of discourag-
ing private business; the thought is
to help private business. But it is
pointed out, meanwhile, that the
funds which are planned to be used
in this program will be under the |
control of half a dozen different |
agencies. Those who know the set- |
up in the federal government rec-
ognize this fact as important. It |
means this: Every agency of the |
federal government always has |
sought and always will seek to per- |
petuate itself, to expand its power |
and itz functions. Give it a hun- |
dred millions or so to play with; |
and then express any doubt, if you
can, that its officials will overlook
any spot where they can boost their
own importance. Truly, that would
be too much to expect.
Then, give consideration to the
fact that the current lending pro-
posal contemplates expanding the
original Hoover-initiated program
into fields of loaning not hitherto
occupied by a government agency.
Self-liquidating highways, toll
bridges, purchase of railway equip-
ment, construction of more electric
lines, to name only a few, are flelds
where the sloven hand of govern-
mental bureaucracy will retard and
handicap private initiative. Appar.
ently, the dear pee-pul are going to
be given a great many things to
use whether they need them or not
and whether they want them or not,
(Released by Western Newspaper Union.)
Play Clothes
ata cS
ite ct OE
{ clothes have come to be a
of themes with ¢
The idea of wearin
propriately garbed
There's abs
the new demand
to envire
and the gan
joor pastime
you “look
matter of ¢
BOE€S.,
"or
ws
rec
Designers have
to the occas
wardrobe
has to d
partment
known and
the "nth degree
this sports o
However,
lay clothes challenge
s wearability that will
ravages of roughing it
s imporiance one needs
must meet the issue with all the
art and science at command. Which
gs exactly what fabric manufactur-
ers are doing.
Note the play clothes pictured.
They are extremely fabric conscious
there is mo: to
$
. drat mds
an Jusisiy
We can assure you,
perfectly the fact of thei
abieness and their cols
Des« ese timely mod
left
ribing ti
to right, the
and sh
of
ure is
shrunk
group v
choice with
their 1939 fash
» a first
who Know
The Gay Nineties
scribes the 1838
quaint type as illustrated above
the right. Underneath this sa
ized-shrunk cotton outfit
tights fit snugly making a complet
rim and ship-shape ensen
11 of Nineteenth
intens
’
jerse;
yet ]
bras is the beach ensemble on the
seated figure in the foreground. I
can be relied on to give perfect wear
in that the flower print cotton whic!
fashions it is pre-shrunk and fas
color. Quaint ruffles edge the snug
shorts and finish the formal little
semi-fitted basque-like coat. The
platform shoes are also interesting.
(Released by Western Newspaper Union.)
Hats, Tiny or Big
There is no excuse for not having
a flattering hat this summer for
every type is included in the show-
jngs from tiniest toques to brims
that go to extremes in the matter of
size. The diminutive hat for dinner
and evening wear, as shown below,
gains daily in popularity. It is here
interpreted in soft irridescent feath-
ers with a touch of shell pink velvet,
The black veil is strikingly embroid-
ered. Compared to some of the new
brims the large mushroom hat shown
here of black Milan is in reali
quite conservative. There's no
as to brim dimensions,
Favor Tweed-Like
Linens for Suits
Although this year’s linens abound
in the traditional smooth finishes
of the sort that denote well-bred
aristocracy, many new versions are
appearing. Something for the home
make-your-own-clothes designer to
get excited about is the smart new
slubbed, nubbed and tweed-like lin
ens which combine the celebrated
coolness of flax with a fine aptitude
for tailoring that insures a suit of
distinction and comfort for town or
travel wear.
Fruit Trims New
White Straw Hats
Perfectly charming among sum-
mer-girl fashions are the new,
usually large, rough white straw
hats that are trimmed with clus.
ters of gay colored fruit instead of
the usual flower garnitures. This
new fashion is wonderfully effective
whether the hat be worn with an
all-white costume or with a gay
and festive silk print. It adds to
the glory of this mode to carry a
matching white straw handbag that
is similarly fruit-trimmed.
Deck White Suits
In Brass Buttons
There is a tendency to impart a
military air to summer dresses and
suits made of white sharkskin or
white gossamer sheer wool by the
use of handsome brass buttons, and
in some instances epaulets of gold
braid have been added. The fad
for all white with gold trimming is
also carried out in that gold kid
belts are being worn with classic
white dresses the draping of which
takes on a sculptural beauty.
Fishnet Trim
A New York designer, on the
search for something different to dis-
Singuish Summer clothes, bas turned
Ye¥
SEW
VV
GREEN OIL CLOTH
LOW OIL
¢ riatehe
3 A Y 17 - AT
RAG RUG LEA
cea with orgers
the present,
De withdrawn
4
are 6 cents
“Favorite Recipe
of the Week ~~
AROUND
THE HOUSE
KOOL-AID FLUFF DESSERT
add 1 cup cold water
15 been added the corn
sail, butter ana
and
» from fire
ing well
egg whites
$e
en
For Polishing Glass. Old
s better than cotton News
paper may SUCCES
ssfully.
-
For Yellowed Knife Handles. —
i of knives become
them peroxide for |
wours, then place out of doors
} SOBK
* . »
Storing Honey.—Store honey in |
a warm, dry place t should not
be kept in the cellar or in a
damp place as it will absorb mois-
ture and ferment.
» . .
the sun.
|
Your Heart in Your Work
your job isn’t more than
If
the boss will think there's a
Refreshing White Paint. White |
paint which has gone yellow
should be cleaned with a solution
made by mixing a handful of or-
dinary whiting with a pint of
water.
» * *
Separating Covers.—When jam- |
pot covers become glued togeth-
er, do not soak in water, but pass |
A GREAT BARGAIN
VESPER TEA
PURE ORANGE PEKOE
50 Cups for 10 Cents |
EE Re
a hot iron over them with a thin
paper laid between. They will
then separate easily, though the
gum will remain intact.
Liberal Sorrow
Joy may be a miser, but sor-