MR ROOSEVELT'S TROUBLES

Press, Volume LXXI, Issue 21414, 5 March 1935, Page 11

MR ROOSEVELT'S TROUBLES

CONGRESS INACTIVE REPUBLICAN SUPPORT WITHDRAWN YUi CONVERSION SCHEME IU KIT ED PRESS ASSOCIATION—BY ELECTRIC TELEGRAPH—COPYRIGHT.) (Received March 4, 5.5 p.m.) NEW YORK, March 3. The Washington correspondent of the Mew York "Times" says that Mr Roosevelt will start the third year of his administration to-morrow with his entire recovery programme in the worst legislative snarl since he assumed office on March 4, 1933, and started a series of dramatic moves to pull the nation out of the depression. To-morrow also marks the third month of the session of Congress, and not a single important administration measure has been oascd. The vast 4,830,000,000 dollar Work Relief Bill, the keystone of the President's double-pointed plan to suc■:our the unemployed while private

industry is stimulated to absorb those without work, is at present pigeonholed by a committee. Mr Roosevelt is insisting on relief workers being paid a "security wage," about 50 dollars a month, while a strong insurgent group is insisting I hat. the prevailing wage rate be guaranteed. In the meantime, while tin; issue is unsettled, little can be done with other important legislation, particularly the Social Security Dill, which was held up bv a committee during the last week. With both branches of Congress almost totally inactive, there is much agit;ition for an anti-admhus-i ration measure, particularly the cash payment of the veterans' bonus, 'o which the President is opposed. The President's insecure hold on Congress was further menaced today when the Republican leaders of :hc Senate indicated that the co- '•■>-! ration largely followed in the !a:-t two years would be discontinued. The party would start the formulation of its own programme, in opposition to the new deal, and press it both in Congress and before the public. To-day the Treasury announced the first large scale financial operations since the Supreme Court's e.old decision. It is hoped to convert l'.850,(!0().()0() dollars of Fourth Libertv Loan bonds, bearing 41 ner cent, interest, and 528.000.000 dollars of Treasury nnp'.s. bearing 2'. per cent, interest., into issues at lower rates of interest. For the first group. 25 year bonds at 21 per cent, will be offered, and for the notes similar securities at Ijj per cent. These are the lowest rates, offered for such securities for manv years, and according to the Treasury, reflects the willingness of the banks to co-oper-ate wfth the Treasury.