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F o r m N o . 131

Office Correspondence

Governor Eccles



J. K, Baigei^J^A)

Subject:_____lagner Public Housing Bill
i£800^000#000) „

Senator Wagner has introduced a bill to establish a permanent housing division in the Interior Department, and to transfer to
it the present housing division of P!TA.

The new agency would engage

in long-range planning for slum clearance and lor-rent public housing.
The bill carries an initial appropriation of #800,000,000,
and also authorises the President to allocate for slum clearance and lowrent public housing any "unexpended emergency appropriations. Funds are
to be advanced in grants and loans to local public housing authorities,
the grants not to exceed 30$ of labor and material costs (this is the
present basis of operation in PWA)•
fhere no local public housing authority exists, the new
agency would be authorised to engage directly in slum clearance and lowrent housing projects.
The bill provides that no loan is to bear a rate of interest
greater than specified in the last issue of Government bonds having a
term of ten years or longer.
As you know, I regard the Administration's slum-clearance and
low-cost housing program as a delusion and a snare, though I realize that
there is a very considerable body of opinion, including that represented by
Senator Wagner, which holds an altogether different view. Since I know
Senator Wagner and have occasional opportunities to discuss housing matters / ^L
with him, I should like at some time, if you have no objection, to give
him a copy of the memorandum on construction that you recently gave to the

F o r m N o . 131

Office Correspondence

Mr» Daiger




Date Apma,


Governor Kcclea

Referring to your memoranaum of U&rch 23th covering the subject
of "Wagner Public Housing Bill19! I note in the last paragraph of the
memorandum that you deciro to give Senator Wagner a copy of the
Bte»0*ancium on construction which I recently gave to the President•
I prefer th&t no copies of ai^y memorandums be given out except
by me.