The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Form F. B. 131 BOARD DF GDVERNDRS DF THE FEDERAL RESERVE SYSTEM Office Correspondence Mr, Eccles ; March 5,1958 Subject!Meeting at Housing on 5/5/58 Mr. Clayton At the meeting at the Housing Administration which I attended Thursday forenoon Messrs. Daiger, McDonald, several of the field men , Col. Harrington of the WPA, representatives of the RFC, the Farm Security and Procurement ?/ere also present. Mr. Daiger explained that the meeting was an outgrowth of a suggestion made by Jimmy Roosevelt some two weeks ago that WPA labor might be used to complete projects for suburban developments worked out previously by Resettlement (now Farm Security). Very likely the White House suggestion was prompted by their interest in seeing these Farm Security projects carried through through the use of the amended Housing Act. Col. Harrington explained that the WPA could not contribute relief labor except on the portion of any project that was owned by the public, namely the streets, water mains, sewer mains, curb and gutter or any other improvements beyond the property line. Concretely, this is the way the proposition would work out. Average cost of houses in such projects Average cost of site development including items referred to above Total $2,750 500* $5,250 *0f this amount the labor portion is estimated at #500 which could be contributed by WPA and would constitute therefore about 9ยง percent subsidy. It was pointed out at the meeting that v.hile there agpeared to be merit in the White House suggestion, the field was somewhat limited unless the idea should be extended to include any kind of privately owned subdivision development. It looks as though without any legislation whatever WPA could agree to donate WPA labor on the site improvements if publicly owned providing the cost of the house would not exceed a certain maximum, this to prevent criticism that a subsidy ?ras being given to people in the higher brackets. This is a good hidden subsidy but I doubt the wisdom of it politically. A frank, honest subsidy without involving WPA would be better. But the "budget" complex might incline the President to this WPA scheme.
@FedFRASER