In Washington yesterday, President Eisenhower conferred with eight governors, outlining his proposals for extended unemployment compensation.
ROLL CUE IKE & GOVERNORS
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Background: In Washington yesterday, President Eisenhower conferred with eight governors, outlining his proposals for extended unemployment compensation.
Unfortunately, the governors...shown here arriving at the White House...came away a bit confused as to whether the federal government was offering to help the States with a "grant" or a "loan".
The governors could not reveal the exact content of the President's offer. Such details will be included in the President's forthcoming address to Congress in which he will spell out his anti-recession program.
But, apparently, the unemployment aid contemplated by the Chief Executive would involve no-interest loans to be made to the states from a special fund. But a legal problem thereby arises, since loans, usually require the approval of state legislatures...a sometimes lengthy and involved process. But grants, or outright gifts from the federal government...do not require state legislative approval, in most cases.