New-York tribune., 1922-03-15
Bonus Sent
To House bv
19-to-5 Vote
tceNsInucd from psut ono


effect upon business.
"I think the passage of the bill would
| temporarily stimulate the amount Of
/ expenditures through the use Of the
credit replied Mr. Mellon. "but then.
later on, there would be reaction just
as followed the war expenditures but,
OF course. on a smaller scale. Those
! expenditures would make an imitation.
/ 1t would be difficult to say when the
reaction would begin, for other factors
would come in.
In the course of the testimony mem
/ bers OF The committee revealed that. as
recast, the bin would permit no pay
ments under the farm and home aid
/ option until July l. 1898.
! The amount that will be required for
/ the meeting Of the payments, Secretary
Mellon said in reply to question from
! Representative Longworth, comes in
/ Just when we 60 into the period Of re
1 the government and would add just
that much more TO the burden.'
Seek Aid in Rediscourt
The committees bill provides in
reality, he added, in discussing the loan
rediscounting the certificates which
would give man so per cent of the
difference due him after defaulting on
loan
Representative Watson, of Pennsyl-
vania, stated that in his state each
state and national bank would not be
called upon for loans totalirg more
than S23,000. He asked Mr., Mellon if
this would constitute a menace to
them The Secretary declared he did
not think so and added that it proba~
h1.. ,,onlI kol bap :.
they we're permitted to rediscount the
certificates. That privilenge you'd not
have any effect upon the financial con
dition OF the country, he said. He
also admitted that the certificates would
be almost ideal securities for saw
ings banks and trust companies han
ding that class of business.
Representative Tilson pointed out
that after October /, 1925, when the
Treasury up to S5 per cent of the value
Of the certificates became effective,
there probably would be food of
them turned in for cash,
what would be the effect of that.
and would it not be q wise step to pro
vide now to lay tax TO take care OF
that?' Mr.. Tison asked.
Secretary Mellon replied that he be-
ileved such step would be wise, as it
: WONiU prevent interference WIN the
! Treasury's funding operations.
Error of s167 900 100000
During the testimony of Actuarv Nc
/ Coy it was brought out that an error
was contained in the latest letter of
{ Secretary Mellon to Chairman Fordney
The mistake was about $167 900 100000
The Secretary's letter estimated in
| one of its exhibits that should every
veteran choose the land settlement aid
/ the total cost would be approximately
/ $lS5, 900 600 900. Representative Haw-
ley told the committee that he had
| been told by the census bureau that
the value of all the farm lands of the
entire country was about $55, 900 ,OO0,-
| 600 and that the figure given in the
letter must include the lands in Can
ada, Mexico, South America, Australia
and g few other countries Mr. Me
Coy then offered the correction. The
error it is believed was made by the
printer
The actuary estimated at the hear
ing that the cost Of the bill for the
trst three years, based on the assump-
ton that 10 per cent would choose the
their value, would be S281 900, 900.
This would be divided, Sal 900, 900 for
the first year, $l82, 100000 for the sec
ond and S58,0O0 900 for the third.
Controller Crissinger estimated the
tota reserves Of the national banks
Of the country at 10000 900 900 and
the total assets Of all banks at be
tween S3S, 00,000,000 and $4,000, 600,
900.
DO you think that the loans which
! would be about eght-tenths Of / per
emharrass them?" he was asked.
"A great manv wOuld hp hurt !, .
repfed 'It would not hurt the saw
lngs banks, but there are large mum.
Der that would not be able to accep,
! lilo of l per cent of their resources
lhe past due and doubtful paper ir
the banks west of the Mississippi par
lcuiarly is unbelievable. If you coulc
permit rediscounting and make the
certificates liquid paper it would re-
move most OF the objections"
"If you're going to give the bows
aanything,' interjected Representati1v,
Garner, give them cash and not lot
of pawn brokers' tickets"
Pawn brokers' tickets and rair
checks arc both bad said the Comp
troller.
Chairman Fordney told Mr.. Girls
singer the reason he had been callet
was that he had been reported as say.
ing he would advise the banks against
aScepNlne IHS ccrllrcaCeS.
Il did stoutly replied Mr. Girls.
singer even though the Secretary ant
! may disagree"
Governor Harding declared his only
interest in the bill is to prevent ans
, embarrassment to the member bank.
OF the Federal Reserve
Do you think he was asked b.
Representative Copley, "that the
amount of these loans would have an.
serious effect upon the adversity o.
prosperity Of the country? ~
81 don't think it will"
''Is this going to help the banks q
asked Mr. Garner
And is it going to help the sol
diers % intcrjectcd Reprcsentativ,
Frear.
at Will help the beneGciaries ant
won't help the banks" said Governo
Harding.
House Speaker Farors
ELL I'll III