Financial assistance

“ One of those principles is what the President and the Secretary spoke about today, which was how do the American people feel confident in a financial system where they become -- through extraordinary assistance -- a lender to a bank in order to stay healthy in this financial system. ”

“ Whenever the financial institutions have found themselves in need of effective pecuniary assistance, the Bank of France has regarded it a duty to help them, and in normal times, by assisting them with its resources, it facilitates liberal credits. ”

“ Starting May 8th, agencies must provide monthly financial reports providing obligations, expenditures, and other financial data by Treasury Account, vendor, and award number, as well as information on allocations of mandatory and entitlement programs by State, county, or other appropriate geographical unit. (see Section 2.5) • Award Transaction Data Feeds. Starting on May 5th, agencies must provide all Recovery Act assistance transactions (primarily grants, loans, and loan guarantees) in the standard format currently provided to USASpending.gov. ”

“ In all these cases the ideal thing is to arrange for repayment in small instalments. Failing this we try to think out a plan such that after the original expenditure the sufferer will be able to go on independently.
(d) Aid in illness. A fourth example of temporary interference in the form of financial aid, is a gift or loan of money to tide a person over an illness, to make his convalescence complete or to rest him when he is dangerously tired. Usually such aid can be rendered through services or institutions (nurses, hospitals, convalescent homes) which do not involve giving money outright. ”

“ The plan is based on the sensible principle of helping men to help themselves. As the help is in the shape of a loan, to be repaid, it will pauperize no one. It will go to families of small means, and it will provide an incentive to people to save enough to take advantage of the assistance offered. ”

“ PUBLIC ASSISTANCE. A marked feature in the social-economic history of the 20th century, and one which became even more marked in its second decade, has been the growth in public expenditure in relief of private wants. “Public Assistance” is of two kinds, direct and indirect. Direct public assistance is the receipt of any benefit in money or in kind at the expense of the rates or taxes which is wholly or partly unpaid for by the recipient. Direct public assistance includes objects like old-age pensions, unemployed benefit, children's meals and medical assistance. ”

“ In the sphere of financial policy, it was the Treasury’s own responsibility to plan the appropriate precautions—a programme of taxation without any misjudged mercy in it, and a programme of borrowing to bring in the genuine savings of the people. ”

“ There is the crudest form, that of direct money relief, such as is involved in Old Age Pensions. There is the subsidising of socially desirable economic operations, such as insurance against sickness or the acquisition of freehold by tenants. There is the expenditure of money on various forms of education, in the scientific assistance of industry and agriculture, in promotion of forestry, drainage, or the improvement of local communication. ”

“ Social Security Financing Acts shall lay down the general conditions for the financial equilibrium thereof, and taking into account forecasted revenue, shall determine expenditure targets in the conditions and with the reservations provided for by an Institutional Act. ”

“ It authorizes grants of money by the United States to States for old age assistance, for administration of unemployment compensation, for aid to dependent children, for maternal and child welfare and for public health. ”

“ The first is to recognize the need for raising revenues for the financing of our expanding economic development program, and then to act boldly and manfully upon that need. The economic development requirements for which we must find financial support are as diverse as they are essential to our continued progress and well-being. ”

“ The Department of the Treasury is also acting to restore confidence in a key element of America's financial system by offering Government insurance for money market mutual funds. For every dollar you have invested in an insured fund, you'll be able to take a dollar out. ”

“ In order to expand the economic foundations of labour, organizations of associated labour may collect financial resources from citizens and ensure them in addition to the repayment of these resources, compensation for investment in the form of interest or other benefits determined by statute. ”

“ It is a debt which we owe to this people. Comparatively few call for assistance who have been in the State a year, and most of these are aged grandparents, the sick, and widows with large families of small children. ”

“ In proportion as the advantages of saving are reduced the inducements to save will be diminished, and then the available lending fund of the community will be lessened, so that fewer persons in need of temporary accommodation will be able to receive it. From another point of view, may it not be urged that if a man obtains the assistance of a loan he should be as willing to pay for it as he would be to pay for any other distinct advantage? ”

“ In ad­dition to the normal growth of domestic savings flowing through such financial intermediaries as the commercial banks, the Government Service Insurance System, the Social Security System, the Postal Savings Bank and the private insurance companies, the program contemplates the estab­lishment of rural savings institutions and cooperative banks to encourage systematic savings out of current income in the farm areas. ”

“ The report names two reasons for recommending contributions to the fund by employers: first, “the employee should not in our judgment be re [Pg 119] quired to reduce his earnings further by the payment of contributions into reserves”; second, “the employer’s financial liability under the plan would operate as a continuous incentive to prevent unemployment as far as practicable.” ”

“ Authority to make necessary adjustments to data and collect needed data.—In determining the size of the caseload of a State and the expenditures of a State for basic assistance, non-recurrent short-term benefits, and subsidized employment, during any period for which the State requests funds under this subsection, and during the emergency fund base year of the State, the Secretary may make appropriate adjustments to the data, on a State-by-State basis, to ensure that the data are comparable with respect to the groups of families served and the types of aid provided. ”

“ Their community being too poor to afford them adequate relief, they have resorted to the expedient of lending them small sums of money at interest, to trade upon, which is required to be repaid monthly or weekly, as the case may be, otherwise they forfeit all claim to this aid. ”

“ Provide guidance and funds as necessary to credit unions that will contribute to stabilization of the nation's economy by helping to establish and maintain a sound economic base for continuing operations, combating inflation, maintaining confidence in public and private financial institutions, and promoting thrift.”. ”

“ But they can supplement the efforts of these organizations; they can bring monetary as well as personal assistance; and they can, above all, bring a mass of public opinion to bear on local and central governing bodies which will lead to the only real economy, which consists in expenditure on an adequate scale, bringing to the aid of the families of the people the preventive, the medical, and the nursing facilities of which they remain in need. ”

“ States is the payment of a cash bonus at the end of a fixed period, as a year. A second plan, which is the rule in France, is a deferred participation by means of a savings bank deposit, provident fund, or annuity, for the purpose of providing for old age and disability. ”

“ Disregard of subsidies for purposes of federal and state programs.— Notwithstanding any other provision of law, any premium reduction with respect to an assistance eligible individual under this subsection shall not be considered income or resources in determining eligibility for, or the amount of assistance or benefits provided under, any other public benefit provided under Federal law or the law of any State or political subdivision thereof. ”

“ We are -- the plan evaluates the health and the condition of individual financial institutions, again, to understand what's needed, to understand their health, and to ultimately, again, restore that confidence. And primarily, first and foremost, there's a dramatic expansion that provides -- that will provide lending for the entities that we know need it most. We all hear horror stories about people with good credit that are looking for a student loan, or for an auto loan, or for a housing or commercial real estate loan that can't get access to that capital. ”

“ One of the priorities of my Administration is to empower Americans to make their own financial decisions, to facilitate their ability to save for retirement and build the individual wealth necessary to afford typical lifetime expenses, such as buying a home and paying for college, and to withstand unexpected financial emergencies. ”

“ Limitations on uses of funds. ``Not more than 6 percent of the amount of assistance received by a State, territory, or Indian tribe that is the original recipient of an allotment under this part for a fiscal year may be used to pay, in accordance with such standards as the Corporation may issue, for administrative costs, incurred by that recipient.”. ”

“ The change has been effected, and persons who land here with nothing but their hands, their bone and sinew, if they are indebted to the Fund or to persons for bringing them, they can soon pay these debts; and not only that, but they can soon establish themselves comfortably, and be prepared to help others. ”

“ There have been, I believe, over 2,200 applicants for relief to the fund which has been raised for the benefit of the sufferers of so-called Philanthropic Finance, and among the number it appears there are nearly 1,400 single women and widows. ”

“ Refunds Disregarded in the Administration of Federal Programs and Federally Assisted Programs.— Any credit or refund allowed or made to any individual by reason of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. ”

“ If these facts are noted they go far to explain the extravagances of the relief system, of paper money banking, of internal improvements, etc.
There is in every commercial community a general indebtedness. It is constantly being dissolved and renewed. ”

“ If those who are indebted to the Fund for aid rendered to them will return the compliment for assisting their friends, do you not understand that they will have to make good the expenditure that now stands against them? ”

“ Unless the agency coming in contact with it digs below the apparent poverty and finds the real income, it will be tempted to give pecuniary aid rather than the personal service the family is in need of. ”

“ All workmen’s organisations desiring that their members shall participate in the subsidies provided by the Fund will be required to send in each month a return showing the number and amount of all payments on account of benefits made by them, and to furnish every year their balance-sheet, also their rules and regulations. ”

“ A revolving loan fund should be provided for the necessary financing until these agencies shall have developed means of financing their operations through regularly constituted credit institutions. Such a bill should carry authority for raising the money, by loans or otherwise, necessary to meet the expense, as the Treasury has no surplus. ”

“ As the organization grows, State-aid should be secured for a portion of its expenses, that a more permanent character may be given it, and it may not be suddenly too much crippled by a business depression or disaster. ”

“ I heard also of one or two wealthy men whose names do not appear as contributors to the public relief fund, who have preferred to spend considerable sums of money in this private way. In my wanderings about the town I heard also of several instances of poor people holding relief tickets, who, upon meeting with some temporary employment, have returned their tickets to the committee for the benefit of those less fortunate than themselves. ”

“ Where, however, the state aid comes without any contributory savings from the individual or his employer and where to qualify for its benefit all must have an income of very small proportion, it is in effect a class measure and obviously for the relief of the very poor.
The higher family interest demands that every system of insurance or of subsidy, or of occasional aid to any member of the family, should tend directly and powerfully toward and not away from thrift, work capacity, and sound business principles. ”

“ It is estimated that some of the most popular proposals would involve an annual expenditure of considerably more than twenty millions of pounds—making allowance for the saving that might be effected in the ordinary poor-law relief, but not counting the cost of administration. ”

“ It has also frequently happened that corporations have been aided to a very large extent by public funds, by the voting of aid bonds, by the donation of large tracts of land, by payment for certain service at such rates as would largely relieve the company from loss in operation, by the remission of taxes, or by the direct donation of funds. ”

“ The best way for the Government to maintain its credit is to pay as it goes—not by resorting to loans, but by keeping out of debt—through an adequate income secured by a system of taxation, external or internal, or both. ”