Statement on P.W.A. Projects.

The President announced today that he had just approved the allotment of a few border-line applications for P.W.A. projects, which increases the number allotted under the new program to 1,253 projects, amounting to $13,034,735 in grants and $58,005,700 in loans.

This concludes the allotment of projects under the Public Works Administration Extension Act of 1937.

The President said that Administrator Ickes has withheld recommending for approval a large number of projects which have been passed by the examining divisions of the Public Works Administration because it was found that the applicant could finance the project without Federal aid. Considering the need to curtail the Federal Budget and the improved financial status of so many communities throughout the United States, the President said he believes this to be sound public policy. The limitations on the amount that may be allotted in the several categories under the new law have resulted in disappointment to many applicants because the total of applications filed greatly exceeded the limitations in some categories, which made it necessary for the Public Works Administration to select a limited number of applications for allotment. This situation was inevitable because the grant allotments requested on approved applications in hand amounted to $609,096,573 covering 4,315 projects and the appropriation was sufficient for only a fraction of them. "We have tried to apply equitable principles," the President stated.

He pointed out that the Public Works Administration was established to stimulate construction and employment during the depression and that it fulfilled its mission promptly and effectively. Under the various programs since 1933, allotments have been made for 10,605 useful non-Federal Public Works Administration projects costing $2,759,172,739. Of these projects, 7,845 costing $1,208,539,612 have been completed, creating to date 661,088,747 man-hours of direct employment on the project sites. The Bureau of Labor Statistics has found that for each hour of employment at the site, two and one-half hours of employment are created in industry. Because allotments for so many projects have recently been announced, it has not been possible to compile an estimate of the employment that will be created by the remainder of the program but there is every reason to expect that it will be proportionate to that of the past.

There has been a decreasing need for this stimulation with the passing of the economic extremity and the President feels that the Administration has fulfilled its obligation under the present law.