You and I have several times talked about the need for keeping in a high state of readiness all applicable plans for combatting, or rather preventing, depression or serious deflation.1
I realize that many of the Government's weapons against recession are ready for prompt and current action, such as credit measures, debt management, alteration in certain permissive terms in mortgages Federally insured, and some variation in the rate of authorized budget expenditures. Others, such as reductions in taxes and other modifications in tax laws together with changes in the social security and unemployment insurance programs, require Congressional action. There are others that require a varying length of preparatory work before they can be effective either in employing large numbers of people or in otherwise making money available for stabilizing and stimulating the economy. In this latter group must be included all types of public works.2
In connection with this, if it is possible without making any new and exhaustive study, to give me an outline report of the public works now actually under construction or for which the beginning of construction is contemplated in the budget, I should like a brief account of:
(a). Numbers and types of projects.
(b). Length of time that work has been progressing on each.
(c). Average number of individuals now employed, and
(d). Number that will be employed on them by the end of fiscal 1955.
Unless preparatory public works plans are carried to a relatively high degree of completion and ready for instant use in the event of emergency, one of two things is bound to happen should there be sudden need. Either there will be extravagant and wasteful use of public funds, with a minimum of returns either in the form of gainful employment or in improving the capital assets of the nation, or on the other hand there will be an unconscionably long delay in getting such work started.3
By careful planning and timely preparation all this can be avoided, and at a cost which need not be excessive.
Among the kind of things that instantly come to mind are:
(a). Soil conservation projects.
(b). Public power projects and multiple purpose dams.
(c). Good road development.
(d). All types of needed public buildings, including particularly dispersion projects under the theory of continental defense.
(e). All kinds of defense building in all three services.
(f). Approved ship building programs in commercial types.
As we agreed this morning, your function in the preparation of such plans will be largely coordinating and supervisory in character.4 The Departments will in general prepare specific plans. In order that there may be no misunderstanding of the importance I attach to this work, we will, as we also agreed this morning, take it up at the next meeting of the Cabinet.5 I shall do everything possible to make certain that this work is pushed vigorously so that we may be assured of a reasonable state of readiness in this regard certainly no later than July first.
If we find it necessary to ask for some reasonable increase in appropriations in order to carry survey and exploratory activities to the needed level, I shall present such supplemental request to the Congress as soon as the necessary data and records are submitted to me.6
Within my immediate staff Dr. Hauge will be designated as my liaison officer for this work.
