(For Release at 12:30 P.M.,
Thursday, September 15th)

ADDRESS TO BE DELIVERED TO THE WELFARE AND

RELIEF MOBILIZATION CONFERENCE IN WASHINGTON, D. C.

BY ATLEE POMERENE, CHAIRMAN OF THE RECONSTRUCTION FINANCE

CORPORATION



LIMITATIONS OF EXPENDITURES

....The provisions of this Act limiting the expendituires of the funds appropriated were well conceived.

The ultimate responsibility for furnishing relief and work relief to the people in distress, does and should rest with the States, the Political Subdivisions of the States and the Municipalities. The National Government did not and does not propose to assume this responsibility. The funds which Congress has made available through the Act are to be re-imbursed to the Corporation. As the Board of Directors of the Reconstruction Finance Corporation has often stated, they are not in lieu of, but simply to supplement State, local and private funds. This Act must not be construed in any way to lessen the continued responsibility of the State and Local Government or of Private contributions. These funds are for emergency relief.

The Reconstruction Finance Corporation has formulated certain definite administrative policies which the Act expreses or implies and may be briefly stated this:

A -Before a loan is granted, it is necessary for the Governor to prove the need for emergency relief. This is done by the Governor giving a certificate to that effect and supporting it by factual data.

B-It must be shown that the resources of the State, the funds available and which can be made available, together with private contributions, are inadequate to meet the needs.

C-We must know how much can be made available from such sources for the period
covered by the application.

Funds thus distributed by the Board are to be administered by the Governor under his direction and upon his responsibility.

The Corporation has, however, deemed it wise to determine whether there is proper machinery to administer the funds so loaned. The attitude of most of the Governors in this respect has been very helpful. They have freely sought guidance from the Reconstruction Finance Corporation in helping to develop the administrative organization within their State. The asurance that there is proper machinery to administer the funds is of particular importance. Their administration can be made successful only by keeping it free from partisan or factional control.

AMOUNTS ALREADY LOANED

Since July 21st, 1932, when this money was made available fo relief purposes, to September 13th, 1932, the Reconstruction Finance Corporation has voted to twelve States $16,230,014 and to Municipalities and political subdivisions of four other States $4,135,585, or a total of $20,365,599.

The Corporation feels that it objectives will be better obtained, its funds more prudently distributed and yield better results if these loans are made to furnish relief for short periods of time. Most of the loans thus far made extend relief for periods of from one month to three months. If these loans were to be made for a long period of time there would be a greater temtation to depend upon the Federal Government rather than upon the State or Local Government or private charities. This is evident to anyone who has studied relief problems.

Other loans will be made if, when and as needed when the necessary information is supplied.

Seventeen states have not made application for aid.....