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Office Correspondence
Governor Eccles

To

FEDERAL RESERVE
FEDERAL REbtKVt

BA D
0R

rw February 15,1955

Snhj«*; Saving clause for housing subsidy.

3m

At luncheon today I suggested to Mr* Vest a place in
the Emergency Relief Bill, as amendedtoythe Senate Appropriations
Committee, where a saving clause might be added that would give to
the President the authority to subsidize private construction up
to 20.per cent of the cost of any project. Mr* Vest and I have
since considered the form that such a clause might take, and we
have agreed tentatively on a proposed addition to the new section
recommended by the Senate Committee•
As proposed ly the Senate Committee, the new section
"relating to utilization of facilities of private enterprise,11
would read as follows:
Sec. 7. Wherever practicable in the carrying out of
the provisions of this joint resolution, full advantage
shall be taken of the facilities of private enterprise*
To which we would add, after changing the period to a semi-colon:
and for the purpose of promoting private enterprise
and encouraging employment in trades or occupations where unemployment is severe, the President is authorize^ in his
discretion and through the facilities of agencies of the
United States now existing, to make loans or grants for
private home-building or other private construction projects
out of sums appropriated in section 1 hereof, not exceeding
in ary such case 20 per cent of the amount required for such
projects
If you wish to have this matter followed up with a view to
having a provision of this kind offered in conference or on the floor,
I would suggest that you let me get in touch with wtiqever is looking
out for this bill for the Treasury*