Arizona republican., 1922-03-15
FAVORABLE
REPORT ON
BONUS BILL
|SORDERED
Ways And Means Commit
tee of House Votes 19 To
S In Favor of Measure
May Be Called Up
Monday
[RspubIIean A. P. Leased wirel

lnSPdpUG0U ~ - GCdoSd UUGI
WASHINGTON, March IA. - A
favorable report on the long contro-
verted soldiers bonus bill was ordered
today by the house ways and means
committee by vote of 19 to 5.
Chairman Fordney plans to submit
his formal report tomorrow or Thurs
day, but said the time Of calling the
measure up in the house would not
be fixed definitely until after the re-
turn here of Speaker Gillett, who is
in Florida with President Harding.
Representative Fordney said he
did not expect Speaker Gillett to
bring any message on the bonus bill
from the executive and that subject
OF the conference with the speaker
would be the question of calling up
the bill next Monday under sus-
pension Of the rules. Some members
of the house, however, expressed the
belief that Mr.. Gillett would be pre-
pared to give the presidents views
on the compromise bill.
The vote on the measure today was
taken ten minutes after Secretary
Mellon, comptroller of the currency.
Crissinger and Governor Harding OF
the federal reserve board, had been
questioned for two hours in open
session as to their ideas of the bank
loan adjusted certificate plan. The
five members voting against a fay-
orabIe report we're Garner OF Texas;
Kitchen of North Carolina, and Col
lier OF Mississippi, Democrats; and
I.sadway OF Massachusetts and Til
son of Connecticut. Republicans. All
members of the committee were pres
ent with the exception Of Mr.. Kitchin
and Representative Chandler, Repub-
iican OF Oklahoma, whose votes were
cast by proxy.
Rejects Amendment
Before the final vote the commit
tee rejected, 19 to 5, an amendment
offered by Representative Backarach.
Republican, of New Jersey, to impose
for a period of three years a one per
cent tax on WHOLESALERS, designed to
raise $500,000,000 with which to
finance the bonus. Those support
ing this amendment were all Repub
ucans-Longworth of Ohia Back
arach, Mott of New York, Tilson and
Watson of Pennsylvania.
Under an amendment suggested by
Governor Harding and adopted by
unanimous vote. banks making orig
inal loans on the adjusted service
certificates could have those cer-
tificates rediscounted by other banks
authorized to make original loans on
the certificates. Governor Harding
objected to having the certificates
rediscountable by federal reserve
banks, saying the general economic
effect would be unfavorable.
Decision to call the federal reserve
board governor. Secretary Mellon and
Comptroller Crissinger was reached
by the committee at a morning sec
ret session The Democrats insisted
that they should have opportunity to
hear these officials and they finally
carried their point after g. sharp de-
bate, the cost being 13 to II, with
seven Republicans supporting the
motion and two Democrats oppos-
ing 1t.
The Republicans were: Longworth,
Tilson, Bacharach. Treadway, Wat
son, Young of North Dakota and Mott
and the Democrats were Taque of
Massachusetts, and Carew of New
York.
At this same session the committee
rejected an amendment by Repre-
sentative Oldfield. Democrat Of
Arkansas, proposing to restore the
original cash provision in place of the
bank loan amendment and to reim-
pose the excess profits tax as a means
Of raising the required revenue. An
other amendment to restore the war
time maximum income surtax rate
of 65 per cent also was rejected.
Mellon Reiterates Opposition
Secretary Mellon and Mr.. Crissinger
reiterated to the committee their op-
position to the adjusted certificate
loan plan, but Governor Harding de-
clined to comment on the advisability
Of bonus legislation at this time other
than to say that in his judgment the
bank loan plan would help the bene-
flciary, but probably not the banks.
There is a difference Of opinion be-
tween the treasury secretary and the
comptroller of the currency as to
advising banks not to make advances
to former service men on the certifi-
Gates Mr.. Mellon said the treasury
would not feel called upon to give
such advice, while Mr.. Crissinger re-
iterated that if national banks asked
his opinion he would advise against
| loans on such security.
In explaining his position the comp
troller said there were many banks
in the West and also in the East that
held an unbelievable" amount of
past due and doubtful paper and
that such banks probably could not
make the advances. He said it would
take from one to five years for the
banks to work out the paper to which
| he referred.
! Secretary Mellon expressed the
view that it would be better from
an economic standpoint for the
I treasury to borrow in the first in
stance the 100000, 900 which it was
! estimated the banks would be called
upon to advance upon the certifica tes
/ in the first three years from the ef-
fsctivs date OF the bill.