MR. ROOSEVELT'S PLAN

Rotorua Morning Post, Volume 3, Issue 618, 24 August 1933, Page 4

MR. ROOSEVELT'S PLAN

In view of the interest which is being centred in Mr. Roosevelt's recovery plan some particulars with regard to the financial side of the proposals may be enlightening : The farmers are to receive £200,000,000 (converting dollars into sterling at par) in exchange for curtailing their acreage and i production. This fund will be provided by a tax paid by millers, meat-packers and cotton manufacturers on all they buy from farmers. The tax on wheat is 1/3 a bushel. All these taxes will be passed on to the public in the form of higher prices. To relieve the burden of mortgages on farm lands a sum of £400,000,000 will be provided. Bonds to this amount will be issued, with interest at 4 per cent. guaranteed by the Government, in exchange for farm mortgages, but the principal will not be guaranteed. The farmer will pay 5 per cent. to the Government, instead of the higher rate generally payable to the mortgagee, who yrill if he pleases to do so, exchange his mortgage for 4 per cent. Government bonds. Another sum of £40.0,000,000 is to be provided for taking over mortgages on

homes in towns or to make advances to people who own houses to pay accrued or f uture rates. The conditions are similar to those for farm mortgages, but the interest to be paid by mortgagors is 6 per cent.' The sums requfred under 'these ^schemes amount to £1000,000,000. To provide for unemployment the j Reconstruction Finance Corpor- ' ation has lent £400,000,000 to the States at a low rate of interest, and Congress at its last session also provided a straight- j out gift of £100,000,000 for'dir- ( ect relief. In addition there is a | great public works scheme for which £660,000,000 is being providp.d.