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Left with President 4/28/38
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April 27, 1938,
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OUTLINE OF H O T STKPS IK m £ RECOVERY PltOGRAM
The Outlook forr the Kext Six Montfia
1. Ho sign of an early upturn. H u m production was last at current
le-rele (in 1931 and 1934) Industrie! mslntensnce and new plant and equipment expenditures were nearly #3 bi lioa less than in 1937, Ho reason
to e*p«et upturn In railroad tfttf utility expenditures.
e f-ctorst
housing Increasiw: but nnall &n& bolow last year.
Contracts awarded In the first half of April 38 per cent below# 37
corresponding period {building.; pernlta outside H, Y, in March
28 per eent below last yesr.
(b) Moderate increase in deficit but not substantial, W,P,A., C # C . C ,
^d a, f*W«A»t U, 3. H, A # , revvrme 1 •
(a) Inventories #5 billion higher at year end than in 1935.
(b) Dwindling backlogs of unfilled orders and uncompleted, projects.
(c) Consumer credit liquidation
(d) Agricultural t&4 foreign prospects
(e) Stock prices klt5h in relation to probable earnings.
Necessary to speed up expenditures in next six apntfc.8 to prsvont further
deterioration.
1#
K. F. C. Loans for K. JR. eouipaent— no legislation required*
(a) Up to January 1, 1939, equipment dalivered before June or
Sept timber 1939.
(b) 100 per cent of cost
(c)
t*ong U B t u r i t i e s as state
(d)
2 per cent
{&)
Interstate beginning one year after date of loan*
Stiiaulatio;. ot B
2.
Construetlo&«
. P. A, coi^jOii X&bor eor.tributton to private
e ^u i It 8 11 | t si * t i on#
(ft)
10 p*? ceiit of ar>pr«is«*rt value o*1 BOW CO -.
On hfftt«i»g units ipflllttfl at |5 f 000 or less
(c)
LLnr.itad to contracts l e t this e&l*mdar yaar ©nd
t4
1st
5ocieilXy
cost to 0
C. Loans for Mew Utility Expenditures -
4»
1,
Vi
t«
Limited period
Zm
Asfiist i s iowarl&fl ratea f o r priviato
4#
Ko lonij. t o r u n i c t p t i l power p l a n t s
Ho legislation re-
. vornble terns
i tal refundinis.
Ityeertlng Up of tow&lMOtf 00f«BMBWrt iptaAlBi %ft»r K^w Fiscal Tear
Starts
(l)
{ )
Suppii««
Public
(5)
Aimr^
D>ltnHl iMMCMt Of c r i t i e a i ^tttl&een situation in eursteer and
t r l i of }/m*0rm will ba «ell taMMfcei in M»0a4 hnlf of fisoal year.
@FedFRASER