Statement on the Economic Recovery Program.

THE PRESIDENT said:

"Some erroneous speculation has taken place with regard to conferences which have been held during the past 2 weeks in respect to organizing concerted action along the front of economic recovery. Such conferences have been held by myself, the Secretaries of the Treasury and of Commerce, the heads of the Reconstruction Corporation, Federal Reserve Board, and other Government officials together with representative groups in the country. The activities comprise:

"1. The organization of the new powers granted the Reconstruction Finance Corporation in respect to self-liquidating works for which $1,500 million is available are being coordinated with other Government agencies. An engineer of standing will be delegated by the Army Engineer Corps as Chairman of the Board of outstanding engineers to advise the Corporation in respect to these works with view to the most expeditious action in stimulating employment by starting of the work and the placing of orders for material.

"2. Stimulation of a movement for slum clearance and replacement under the reconstruction act is being given immediate examination with view to early expansion of employment through such programs of modernization.

"3. In order to effectively make adequate provision for livestock and feeder loans, I have requested Commissioner [H. Paul] Bestor of the Farm Loan Board which has administration of the intermediate credit banks, the Secretary of Agriculture who has some special powers from Congress, and the Federal Farm Board which has already entered largely into this field--to place themselves at the disposal of the Reconstruction Corporation so as to develop a coordinated program to solve these and other agricultural questions under the leadership of the Corporation.

"4. The Reconstruction Corporation is devoting particular attention under its new powers to the possibilities of financing the movement of agricultural commodities into consumption with view to stimulating demands through restoration of orderly marketing. We are discussing the possible supplement of such efforts by private agencies.

"5. We have also taken up the subject of organized coordination of the wider expansion of credit facilities to business and industry through business, the banks, and the Federal Reserve banks, particularly for the purpose of supplying full credit for production where consumption of goods is assured and thus materially expand employment which has been hampered by dislocation of the credit machinery.

"6. Preliminary conferences have taken place with some of the railway leaders with a view to their developing programs for increased repair and maintenance in cooperation with the agencies of the Government for the purpose of expanding railway employment and for expansion in orders for railway supplies and equipment which would also be immediately reflected in increased employment in the supply and steel industries.

"7. I am proceeding as rapidly as possible with the selection of the directors of the Home Loan Bank Board and have already under discussion methods by cooperation of this institution with the Reconstruction Corporation and other agencies of the Government to secure the fullest effect in assistance to homeowners under mortgage duress and expansion of homebuilding in localities where there is a present shortage.

"8. I have under discussion with various agencies the question of a movement to further spread existing employment through reduction of work hours.

"9. Other avenues of cooperation between the Government in aid to private and public agencies are under preliminary consideration.

"When this program is more fully developed I shall confer with the "business and industrial" committees created in each Federal Reserve district and other groups in the country that are primarily interested with view to establishing united and concerted action on a broad front throughout the country."