The Times News

DECLARES U. S. SOLVENCY IS THREATENED
Whole Scheme Said to Call for 6 Billion Draft on Treasury
BUSINESS CONFIDENCE NOW BADLY SHAKEN

WASHINGTON, May 11. (UP)
Republican members of the house appropriations committee charge in a minority report today that President Roosevelt's $4,512,000,000 recovery program threatens national solvency.
Declaring the program "inadequate to meet the serious condition of the country," the report, led by Representative John Taber (N. Y.), Robert L. Bacon (N. Y.) and Richard B. Wigglesworth (Mass.), demanded that the administration of relief be returned to the states and recommended a congressional investigation of the Works Progress Administration.
It charged that the program, which the president said would cost about $4,512,000,000 in relief was "part of a broad program which involves a new draft of $6,000,000,000 upon the treasury. Describing current business conditions in the United States."
Conditions as "the Roosevelt depression," the report said:
By the unanimous verdict of reputable economic opinion, this depression flows directly from the dangerous monetary, fiscal, and administrative policies of the Roosevelt administration."
The minority concluded their report with two recommendations and the warning:
Words are not sufficient; action is imperative now."
House Minority Leader Bertrand H. Snell (R., N. Y.), leader of the opposition to the administration's lending-spending program, denounced the bill as "legislatively immoral."
He cited a paragraph of the PWA's $965,000,000 public works bill which provides for "agreements" between public agencies and the federal government if the latter have used up all their borrowing power and thus are exhausted from the 15 per cent grant and 85 per cent loan program.
The agreement would be to repay 55 per cent of the cost of projects with interest, in 25 years. Opponents of this section said that it either would violate the statutory limit of debt or would not be binding and hence probably not collectible.
A summary of minority views, issued by Snell after the conference, denounced pump priming as a $40,000,000,000 experiment that has led only "to the sharpest and most sudden business depression in modern economic history" and promises a federal deficit of "at least $5,000,000,000 for the next fiscal year."
The statement said that "mere discussion of the proposal has intimidated private investment confidence to the point of paralysis."