Work Done

The 75th Congress, which was to have helped balance the Budget, last week went home having written its John Hancock boldly across the page of U. S. history. For to the 75th, as to the 73rd five years ago, Franklin Delano Roosevelt gave his word that an Emergency faced the U. S., and the 75th responded to that magic word as the 73rd never dreamed of doing. In 154 days ending last week, the 75th succeeded in appropriating $12,321,635,000, more than any session of Congress has ever appropriated in time of peace. Breakdown of the appropriations:

Ordinary Gov't. expenses $5,104,985,000

Lend-Spend Bill 2,915,405,000

Reappropriations 882,473.000

Permanent Appropriations/- 2,718,772,000

Deficiency and special.. 700,000,000

Total $12.321,635,000

This was two thumping billions more than Congress voted even in 1936, when it handed out the two-billion-dollar Soldiers' Bonus. It brought the 75th Congress' spending total to $21,656,174,000 for all three sessions. It shot the net deficit for fiscal 1938 (forecast by the President last January as $1,088.129,600) up to $1,250,000,000. For fiscal 1939 it forecasted a deficit of at least $3,722,000,000. It meant that the national debt, which stood at $37,379,410,474 on June 1, had a good chance of passing $40,000,000,000 by this time next year, an increase of $20,000,000,000 since Franklin Roosevelt took office. Spending was by all odds the biggest job performed by the 75th Congress. Its other work done: Wages 6 Hours, To give the President his pet piece of legislation. Congress last week passed a compromise bill (TIME, June 20) fixing minimum wages at 25^ an hour, maximum hours at 44 a week, providing for a 40^-40-hour standard after seven years, with flexible provisions mak-ing it tolerable to the industrial South which had kept the President from getting it before.

Anti-Monopoly. To satisfy the President's trust-busting urge. Congress finally appropriated $500,000 to a committee to investigate monopoly, left $400.000 of the appropriation under direct Presidential control (TIME, June 20).

Crop Control. The second Agricultural Adjustment Act, on the President's calendar for the special session but not passed until February, gave the Secretary of Agriculture full power to control crop marketing by voluntary co-operation if possible, by compulsion if necessary (TIME, Feb. 21).

Tax Revision. Not for Franklin Roosevelt but for business, Congress drastically revised the unpopular levies on capital gains and undistributed corporate profits (TIME, June 6, et ante).

Farm Loan Interest. Only major veto of the session was placed by Franklin Roosevelt on a bill to extend for two years the "emergency" rate of 3 1/2% on Federal Land Bank loans to farmers. Last week both Houses overrode the President.

Railmen's Insurance. Although failing to fashion a crutch for the staggering railroads (see col. 1), Congress last week passed a bill taking railway employes out of the unemployment insurance systems of the States and putting them under a Federal system handled by the Railroad Retirement Board. Benefits: $1.75 to $3 per day for up to 80 days of idleness per year. Source of revenue: a 3% payroll tax on wages up to $300 per month.

Permanent Postmasters. Neatest political trick of the session was the Senate's confirmation in the last nine days of the session of 2,072 new Democratic postmasters of the first, second and third classes, coupled with its passage of a bill placing these offices under the Civil Service, with life tenures like fourth class postmasters and postal employes.

Phosphates for fertilizer worried the President. Congress voted him last week a survey of U. S. phosphate resources to be made by a Congressional Committee. Cost: $10,000.

Dirigible. The President wanted the Navy to try again with a $3,000,000 dirigible successor to the Shenandoah, Akron and Macon, all of which came to disaster in 1925, 1933, 1935 respectively. The House said No. The Senate voted $500,000 to start work and last week got it through in the final Deficiency Bill.

"Flood Control." Just when TVA admitted that power production was 52% of its reason for building Federal dams (see p. 72), the Administration last week brought up its flood control bill in the Senate with a provision empowering the Government to take title to any and all lands involved in any and all dams, reservoirs or other flood control projects paid for entirely by the U. S. (retroactive to 1928). States' rights champions howled loudly. "This will break the back of the entire private utility industry!" cried Democratic Senator King of Utah. Filibuster threatened, but failed, and a $375,000,000 bill for flood control was passed with this provision.

Jefferson Memorial. Hanging fire for over a year has been a plan to memorialize Thomas Jefferson by revamping Washington's Tidal Basin. The late architect John Russell Pope submitted a design which the Fine Arts Commission had not approved. Senator Glass blasted the way for a $500,000 appropriation to start building the Pope design whether the Commission likes it or not. Naval Officers. To staff the expanding navy, 1,043 additional officers in its personnel by 1942 were authorized. Payroll increase: $3,000,000.

Natural Gas. Congress decided that there was a public interest affected by interstate transmission and sale of natural gas, so declared such gas subject to the Federal Power Commission.

SEC. In a section of the 1938 Revenue Act, amendments to the bankruptcy law and a measure framed by Senator Francis T. Maloney, Congress notably extended the powers of SEC: 1) To give utility holding companies special tax treatment on gains or losses resulting from property transfers ordered by SEC. 2) To issue advisory reports on bankruptcies under famed Section 776 (where the failure is less than $3,000,000, the court may ask SEC for a report; where more than $3,000,000 it must ask). 3) To regulate over-the-counter security, sales.

Wheat Acreage. Next year's wheat acreage was to have been limited by law to 45,000,000 acres. Congress upped that figure to 55,000,000 despite this year's bumper crop prospects from 80,000,000 acres.

Civil Air Authority. All civil aeronautics, including airmail services, were put under a Civil Air Authority composed of five members and an Administrator. The Authority was told to report as to whether or not, and how, the Government should help create a national system of airports.

New Judges. Having killed (in its first session) Franklin Roosevelt's plan to enlarge the Supreme Court, in its third session the 75th Congress did create the 20 new minor Federal judgeships he had requested.

Housing. Congress extended in time and broadened in scope Federal mortgage insurance; upped USHA's loan funds to $800,000,000.

RFC. Congress reimbursed RFC for moneys advanced for Relief and empowered it to make loans to businesses and municipalities to aid Recovery.

Merchant Marine. Congress extended the Maritime Commission's power to fix rates, and to insure ship mortgages up to $200,000,000. It created a Maritime Labor Board with mediation powers.

* Of moneys appropriated but not spent in fiscal 1938, or before.

/- Constant costs met perennially, such as the overhead of Congress, departments, etc.

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