A-61630, MAY 7, 1935, 14 COMP. GEN. 812

A-61630: May 7, 1935

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THERE IS NO PROVISION IN THE EMERGENCY RELIEF APPROPRIATION ACT FOR 1935 WHICH MAY BE CONSTRUED AS AUTHORIZING ANY LOANS FOR SUBSISTENCE HOMESTEADS AFTER JUNE 16. AS YOU ARE AWARE. 000 IS HEREBY MADE AVAILABLE TO THE PRESIDENT * * * FOR MAKING LOANS FOR AND OTHERWISE AIDING IN THE PURCHASE OF SUBSISTENCE HOMESTEADS. ALL POWERS GRANTED TO THE PRESIDENT BY SECTION 208 WERE DELEGATED TO ME AS SECRETARY OF THE INTERIOR. IT WAS STATED THAT THE AMOUNTS ENUMERATED SPECIFICALLY IN SECTION 1 OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 WERE "LIMITATIONS RATHER THAN SPECIFIC APPROPRIATIONS * * * AND NEITHER THESE LIMITATIONS NOR ANY OTHER PROVISION IN THE JOINT RESOLUTION * * * WOULD PRECLUDE THE PRESIDENT.

A-61630, MAY 7, 1935, 14 COMP. GEN. 812

SUBSISTENCE HOMESTEADS SECTION 208 OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933 (48 STAT. 205), AUTHORIZING LOANS FOR SUBSISTENCE HOMESTEADS EXPIRES BY STATUTORY LIMITATIONS JUNE 16, 1935, AND THERE IS NO PROVISION IN THE EMERGENCY RELIEF APPROPRIATION ACT FOR 1935 WHICH MAY BE CONSTRUED AS AUTHORIZING ANY LOANS FOR SUBSISTENCE HOMESTEADS AFTER JUNE 16, 1935, FROM THE FUNDS SO APPROPRIATED.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, MAY 7, 1935:

THERE HAS BEEN RECEIVED YOUR LETTER OF APRIL 25, 1935, AS FOLLOWS:

I AM CONTEMPLATING REQUESTING THE PRESIDENT TO ALLOCATE CERTAIN FUNDS OUT OF THE SUM OF $4,000,000,000 MADE AVAILABLE TO HIM BY THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 (PUBLIC RESOLUTION NO. 11, 74TH CONGRESS), FOR THE PURPOSE OF MAKING LOANS FOR AND OTHERWISE AIDING IN THE PURCHASE OF SUBSISTENCE HOMESTEADS, PROVIDED, OF COURSE, THAT SUCH FUNDS MAY BE USED FOR THESE PURPOSES.

AS YOU ARE AWARE, SECTION 208 OF TITLE II OF THE NATIONAL INDUSTRIAL RECOVERY ACT (C. 90, 48 STAT. 195) PROVIDES THAT "$25,000,000 IS HEREBY MADE AVAILABLE TO THE PRESIDENT * * * FOR MAKING LOANS FOR AND OTHERWISE AIDING IN THE PURCHASE OF SUBSISTENCE HOMESTEADS. THE MONEYS COLLECTED AS REPAYMENT OF SAID LOANS SHALL CONSTITUTE A REVOLVING FUND TO BE ADMINISTERED AS DIRECTED BY THE PRESIDENT FOR THE PURPOSES OF THIS SECTION.' PURSUANT TO AN EXECUTIVE ORDER OF JULY 21, 1933, ALL POWERS GRANTED TO THE PRESIDENT BY SECTION 208 WERE DELEGATED TO ME AS SECRETARY OF THE INTERIOR.

IN YOUR LETTER OF APRIL 2, 1935, ADDRESSED TO THE HON. JAMES P. BUCHANAN, ENTERED IN THE CONGRESSIONAL RECORD OF APRIL 5, 1935, IT WAS STATED THAT THE AMOUNTS ENUMERATED SPECIFICALLY IN SECTION 1 OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 WERE "LIMITATIONS RATHER THAN SPECIFIC APPROPRIATIONS * * * AND NEITHER THESE LIMITATIONS NOR ANY OTHER PROVISION IN THE JOINT RESOLUTION * * * WOULD PRECLUDE THE PRESIDENT, IN HIS DISCRETION, FROM ADOPTING ONE OR MORE OTHERWISE LAWFUL FEDERAL PROJECTS MEETING THE TEST IMPOSED BY THE APPROPRIATING LANGUAGE; * * *.'

IN CARRYING OUT THE PURPOSES OF SECTION 208 EMPLOYMENT IS INCREASED AND WORK PROVIDED IN THE CLEARING OF LAND, IN THE CONSTRUCTION OF BUILDINGS AND IN THE FABRICATION OF BUILDING MATERIALS.

PLEASE ADVISE ME WHETHER IN YOUR OPINION FUNDS APPROPRIATED BY THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 WILL BE AVAILABLE AFTER JUNE 16, 1935, THE ORIGINAL DATE OF THE EXPIRATION OF THE NATIONAL RECOVERY ACT, FOR MAKING LOANS AND OTHERWISE AIDING IN THE PURCHASE OF SUBSISTENCE HOMESTEADS.

THE EXISTING SUBSISTENCE HOMESTEADS ACTIVITY WAS SPECIFICALLY PROVIDED FOR BY SECTION 208 OF THE NATIONAL INDUSTRIAL RECOVERY ACT OF JUNE 16, 1933 (48 STAT. 205), WHICH AUTHORIZED THE MAKING OF "LOANS FOR AND OTHERWISE AIDING IN THE PURCHASE OF SUBSISTENCE HOMESTEADS" IN ORDER TO AID ,THE REDISTRIBUTION OF THE OVERBALANCE OF POPULATION IN INDUSTRIAL CENTERS.' THE SUM OF $25,000,000 WAS MADE AVAILABLE TO THE PRESIDENT FOR THAT PURPOSE "TO BE USED BY HIM THROUGH SUCH AGENCIES AS HE MAY ESTABLISH.' BY EXECUTIVE ORDER NO. 6209, JULY 21, 1933, THE PRESIDENT DELEGATED TO THE SECRETARY OF THE INTERIOR ALL HIS POWERS UNDER SAID SECTION,"INCLUDING FULL AUTHORITY TO DESIGNATE AND APPOINT SUCH AGENTS, TO SET UP SUCH BOARDS AND AGENCIES * * * AS HE (THE SECRETARY OF THE INTERIOR) MAY DEEM NECESSARY OR DESIRABLE.' THE AGENCY OR AGENCIES CREATED OR ESTABLISHED UNDER SUCH AUTHORITY ARE AMONG THOSE THE EXISTENCE OF WHICH MUST CEASE NOT LATER THAN JUNE 16, 1935, PURSUANT TO THE REQUIREMENTS OF SECTION 201 (D) OF THE NATIONAL INDUSTRIAL RECOVERY ACT, WHICH PROVIDES:

AFTER THE EXPIRATION OF TWO YEARS AFTER THE DATE OF THE ENACTMENT OF THIS ACT * * * THE PRESIDENT SHALL NOT MAKE ANY FURTHER LOANS OR GRANTS OR ENTER UPON ANY NEW CONSTRUCTION UNDER THIS TITLE, AND ANY AGENCIES ESTABLISHED HEREUNDER SHALL CEASE TO EXIST AND ANY OF THEIR REMAINING FUNCTIONS SHALL BE TRANSFERRED TO SUCH DEPARTMENTS OF THE GOVERNMENT AS THE PRESIDENT SHALL DESIGNATE: PROVIDED, THAT HE MAY ISSUE FUNDS TO A BORROWER UNDER THIS TITLE PRIOR TO JANUARY 23, 1939, UNDER THE TERMS OF ANY AGREEMENT, OR ANY COMMITMENT TO BID UPON OR PURCHASE BONDS, ENTERED INTO WITH SUCH BORROWER PRIOR TO THE DATE OF TERMINATION, UNDER THIS SECTION, OF THE POWER OF THE PRESIDENT TO MAKE LOANS.

THERE IS NOTHING IN THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935, APPROVED APRIL 8, 1935, WHICH CAN BE CONSTRUED AS EXTENDING BEYOND JUNE 16, 1935, SECTION 208 OF THE NATIONAL INDUSTRIAL RECOVERY ACT, OR AGENCIES CREATED THEREUNDER, SUCH ACTIVITY BEING NO PART OF THE FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS WHICH SECTION 12 OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 CONTINUES UNTIL JUNE 30, 1937, AND AUTHORIZES IT TO PERFORM SUCH OF ITS FUNCTIONS UNDER THE NATIONAL INDUSTRIAL RECOVERY ACT AND UNDER THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 AS MAY BE AUTHORIZED BY THE PRESIDENT.

IN ANSWER TO YOUR SPECIFIC QUESTION WHETHER FUNDS APPROPRIATED BY THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 WILL BE AVAILABLE AFTER JUNE 16, 1935,"FOR MAKING LOANS FOR AND OTHERWISE AIDING IN THE PURCHASE OF SUBSISTENCE HOMESTEADS," I HAVE TO ADVISE THAT NOT ONLY WILL THE SUBSISTENCE HOMESTEADS AGENCIES AND ACTIVITIES PROVIDED FOR UNDER SECTION 208 OF THE NATIONAL INDUSTRIAL RECOVERY ACT CEASE TO EXIST AS SUCH ON OR PRIOR TO JUNE 16, 1935, BUT THE SPECIFIC AUTHORITY GRANTED IN SECTION 1 OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1935 FOR "LOANS OR GRANTS, OR BOTH, FOR PROJECTS OF STATES, TERRITORIES, POSSESSIONS, INCLUDING SUBDIVISIONS AND AGENCIES THEREOF, MUNICIPALITIES, AND THE DISTRICT OF COLUMBIA, AND SELF-LIQUIDATING PROJECTS OF PUBLIC BODIES THEREOF" AND FOR "MAKING LOANS TO FINANCE, IN WHOLE OR IN PART, THE PURCHASE OF FARM LANDS AND NECESSARY EQUIPMENT BY FARMERS, FARM TENANTS, CROPPERS, OR FARM LABORERS" WOULD SEEM TO PRECLUDE THE USE OF SAID FUNDS FOR THE MAKING OF ANY OTHER LOANS.

AND WHILE THE LIMITATIONS (A) TO (H), SPECIFIED IN SECTION 1 OF SAID EMERGENCY RELIEF APPROPRIATION ACT OF 1935, DO NOT PRECLUDE THE PRESIDENT FROM ADOPTING OTHERWISE LAWFUL FEDERAL PROJECTS MEETING THE TEST IMPOSED BY THE APPROPRIATING LANGUAGE, THAT IS TO SAY, PROJECTS PROVIDING RELIEF, WORK RELIEF, OR INCREASING EMPLOYMENT, ANY PROJECT WHICH IN FACT COMES WITHIN A CLASS OF PROJECTS AS TO WHICH A LIMITATION IS PRESCRIBED IN SAID SECTION WILL BE SUBJECT TO SUCH LIMITATION.