(P-44)

RECONSTRUCTION FINANCE CORPORATION

WASHINGTON

August 4, 1932

The Board of Directors of the Reconstruction Finance Corporation today heard Governor Pinchot, other officials of the State Government of Pennsylvania, and leaders of the Pennsylvania State Legislature, in connection with the application of the Governor for funds, under provisions of Title I of the Emergency Relief and Construction Act of 1932, for purposes of relief and work relief in Pennsylvania. At the conclusion of the meeting, Mr. Pomerene, Chairman of the Board of Directors of the Corporation, made the following statement to the delegation:
"It is our belief that, on proper showing, we should extend some
relief to the State of Pennsylvania, but it must be borne in mind that we have
funds entrusted to our Board which are to be expended, not in lieu of state
or local relief, but to be supplemental thereto, if, when, and as necessary.

"After a full hearing, we feel persuaded that the legislature of
the State of Pennsylvania, and its several political sub-divisions, have not
done their full duty with respect to the furnishing of funds for relief purposes.
We shall defer action with regard to relief for Pennsylvania until we know what
the legislature will do for the relief of its own people."

The following officials of the State Government and leaders of the State Legislature

were present:

Gifford Pinchot, Governor;
E. C. Shannon, Lieutenant Governor;
W. A. Schwader, Attorney General;
Clyde L. King, Secretary of Revenue;
Alice F. Liveright, Secretary of Welfare;
C. J. Goodnough, Speaker of the House of Representatives;
Harry F. Scott, Chairman of the Senate Committee on Appropriations;
Frank E. Baldwin, Chairman of the Senate Finance Committee;
Philip Sterling, Chairman of the House Committee on Ways and Means;
Joseph G. Steedle, Chairman of the House Committee on Appropriations.
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