Monday, Jun. 19, 1939

Work of the Week

>Ohio's ambitious Republican Senator Taft strove vainly last week to prevent the Senate from doubling U. S. Housing Authority's $800,000,000 loan capital for slum clearance. Half that much more would be enough, he thought. U. S. H. A. is authorized for the next 60 years to give municipalities outright rent subsidies, which help them pay interest & principal on their loans. Senator Taft thought that upping the annual rent subsidy from $28,000,000 to $58,000,000 (instead of the $73,000,000) was plenty. The Senate repeatedly overrode the Senator, one of whose strongest arguments was that slum clearance discriminated in favor of urban families, left poor country folk in the cold.

With only ten minutes of debating time left, New York's Democratic Senator Wagner, slick as five foxes, thereupon executed a breath-taking maneuver. He introduced an amendment directing U. S. H. A. to devise a program, and spend upon it any part of its total $1,673,000,000 in borrowed capital and rent subsidies it sees fit, "for families of low income in rural areas." Farm-loving Senator Taft, outdone, begged that the amendment be delayed. But other Senators quickly whooped it into the bill, then whooped the whole through 48-to-16.

Thus was a vast new chapter in farm relief written in less time than it takes a farmer to cast his vote.

>Quick to make political capital of the House Republicans' heavy vote last fortnight for the fantastically expensive Townsend pension plan was Democratic National Chairman Jim Farley. Radiorating last week from Washington, he cried: "The only excuse suggested for the 55 Republican potential squanderers is that they knew the Democrats would defeat the bill. . . ." With the Townsend chimera dead, the road was clear for passage of amendments to the existing Social Security setup. The Administration favored amendments to increase immediate outlays, decrease intake in order to keep Social Security reserves et a practicable $4,000,000,000 to $5,000,000,000 instead of the dreamy $47,000,000,000 envisioned by 1980. One change would raise to $20 the $15 maximum which the U. S. now gives to match old-age handouts by the States. Only one State (California) has so far succeeded in taking full advantage of the $15 maximum. Representatives from poor States were hot for raising the proportion of the Federal contribution. Mississippi's Colmer led off by demanding four Federal dollars for each State dollar up to a Federal maximum of $20. The Republican "potential squanderers" stood fast with the Administration's men and Mr. Colmer lost his motion 174-to-97-Arkansas's Terry, another Democrat, asked that the U. S. advance $10 of the first--$15 of pension grants, thence match dollar for dollar up to a $40 total. Again the "squander squad" stood fast: Mr. Terry was beaten 131-to-65. Even when Republican Woodruff of Michigan asked two Federal dollars for each State one, up to a maximum pension of $45, most of his party mates remained frugal (142-to-79). Together with other amendments the Administration's 50-50, $20 maximum was safe.

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