Relief

The decision to take the Federal Government "out of the busi ness of relief" was taken at the moment when a comprehensive social security system was set up. This system made provision not only for unemployment and old age insurance, but for old age assistance, aid to the blind, and aid to dependent children, to be administered by the States with matching grants by the Federal Government. It was felt that once these categories of destitution were taken care of, and once the Federal Government assumed responsibility for the employment of employables on relief, the re maining direct relief problem could be handled by the States and local communities with their own resources.

The Works Progress Administration, 1935-39.

The new feature in the reoriented programs of 1935 was the introduction of a broad program of project work, comprising locally planned and sponsored undertakings that were, however, to be Federally di rected and in large measure Federally financed. Workers were to be removed from the relief rolls and paid fixed monthly security wages. The security wages represented a compromise between the CWA principle of regular wages and the FERA principle of budg etary needs. Monthly wages were fixed at the same level for the same type of work regardless of family diversities, but the wages for the different classifications of skills and different regions of the country represented less than the corresponding normal earnings in private industry. Most of the work projects were directed by the newly created Works Progress Administration, which was originally intended to serve as a co-ordinating agency for the en tire works program but which became the principal operating agency as well.

In addition to the system of work projects, the works program of 1935 continued the emergency employment programs on heavy public works carried on by the Bureau of Public Roads and the Public Works Administration. These phases of the work program were carried on by the contract method. At first these agencies were required to see to it that contractors selected their crews as far as possible from the relief rolls—a requirement that proved difficult to enforce and was later dropped. The 1935 works program also continued the program of the Civilian Conservation Corps, which provided employment and training to needy youths between 18 and 25. Finally, it should be mentioned that a National Youth Administration was established within the WPA (by executive order), which in addition to providing aid for high school, college, and graduate students developed work projects for needy youths between 16 and 25.

Although the Federal Government withdrew from general relief in 1935, in the popular mind the activities of the WPA have been regarded as the Federal Government's contribution to the meeting of the relief problem. A brief discussion as to the activities and policies of this organization is therefore in order.

First as regards employment. Work on WPA projects was be gun in July 1935. WPA employment increased steadily through out the fall and winter and by Feb. 1936 it had reached a total of over 3,000,00o persons. Thereafter, during 1936 and 1937, as private employment increased, WPA employment decreased, reaching a low of 1,450,000 in Sept. 1937. With the business re cession which developed shortly thereafter, employment on WPA operated projects again rose and reached 3,250,000 in Oct. 1938.

By June 1939 WPA employment had declined to 2,440,00o per sons. For the fiscal year July 1, 1939, to July 1, 1940, Congress appropriated funds making possible an average employment of 2,000,000 persons. A glance at these employment figures indicates the extreme flexibility of the WPA organization—an ability to ex pand and disburse purchasing power quickly among the needy unemployed when the business situation requires it, and to con tract operations when private employment increases and the short age of purchasing power decreases.

The cost of WPA operations has been borne very largely by the Federal Government. But since the work projects have concen trated on local needs, it has been felt desirable that local com munities should suggest and sponsor the projects that are put in operation and should at the same time pay part of the cost. In accordance with this policy the WPA limits the expenditure of Federal funds in so far as possible to the payment of wages of project workers. All project non-labour costs in excess of $6 per man per month. the maximum allowed by law for Federal funds, must be defrayed by the project sponsors.

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few Federal projects (notably the Arts projects) were oper ated by the WPA on a nation-wide basis with relatively small con tributions from co-sponsors. The Emergency Relief Appropriation Act of 1939 provided that the WPA could not itself sponsor proj ects. Thereafter the Arts projects were continued where State and local governments were interested in sponsoring and sharing in the cost of the work. The theatre projects were entirely discontinued on July 1, 1939, by Act of Congress.