Memorandum from Federal Works Administrator Philip Fleming to Matthew J. Connelly

FORVICTORY OFFICE OF THE ADMINISTRATOR BUY UNITED STATES FEDERAL WORKS AGENCY WAR BONDS AND WASHINGTON 25, D. C. ARCNIVER "NATIONAL RECORDE AXD STAMPS MEMORANDUM AUG 18 1945 TO: Matthew J. Connelly FROM: The Federal Works Administrator In accordance with our conversation of yesterday, I have briefly outlined herein certain concrete items which I believe should be incorporated in the President's message to the Congress. The Director of War Mobilization and Reconversion in his re- cent report estimates that unemployment will rise to 5,000,000 or more within three months and perhaps to 8,000,000 before next spring. This sudden transition from full employment to a large volume of unemployment creates a pressing problem of immediate national concern which will have to be discussed in the message. No single remedy can be applied to solve the unemployment problem. The situation can be ameliorated, however, through the construction of useful public works and I, therefore, suggest that there be included in the President's message these recommendations: 1. A recommendation that Congress release immediately the funds for the highway construction program authorized under the Federal Aid Highway Act of 1944, (Pub. Law 521, 78th Congress). Under such act $500,000,000 have been authorized for the first year and $500,000,000 for each of the two succeeding years, making a total authorization of $1,500,000,000 and a total highway con- struction program for a three year period of three billion dollars, taking into consideration the states' share of the cost. 2. A recommendation that Congress increase by $25,000,000 the appropriation for the Inter-American Highway through the Central American republics so as to extend the highway to Panama. A bill is now pending in each of the two houses to accomplish this, viz., H. R. 3172 and S. 1104. 3. A recommendation that Congress enact Legislation authorizing the construction, through the Public Buildings Administration, of Federal buildings costing approximately $273,000,000, of which amount approximately $75,000,000 should be allocated for Federal buildings in the District of Columbia and approximately $198,000,000 for Federal buildings outside the District of Columbia. A bill for this purpose has been prepared and has been approved by the Bureau of the Budget.