Evening star., 1922-03-15

measure. The parliamentary sharks
on the democratic side. some of
whom will vote for the bill when
1t reaches that stage, are preparing
to do all they can to muddy the
waters and delay action upon this
measure as long as possible.
1t was predicted today by one
ways and means committee, who has
taken an active part in preparing the
bonus legislation. that IL action can
be delayed for two weeks the bonus
bill as now drafted. may be defeated
in the House and never reach the
Senate.
Speaker Gillett is expected to spend
several hours here Saturday en- route
to Springfield. Mass. whore he will
speak Sunday. and Mr.. Fordney and
other House leaders expect to confer
with him at that time on the question
Of procedure.
Indications today were that the
completed bill would not be pre-
sented to the House until tomorrow.
as the committee report will not be
printed before that time.
Bnl Ordered Reported.
BY vote OF 10 to 5 the WAYS and
means committee ordered the adjusted
compensation bill reported to the House,
after listening to objections from Secre-
tal'y MeilOn. SOntIOHeT SIlsSlusei dHu
/ Gov Harding OF the Federal Reserve
Board.
Chairman Fordney announced that tn.
time for calling the measure up in the
House would not be definitely fixed un-
iii Speaker Gillett. who is with the
when he is expected 10 bring direct
word as to the Presidents attitude
on the bill. Ostensibly the delay Is
in order to confer with the Speaker
on the proposed program to call up
the bill next Monday under suspen-
sion of the rules.
The vote on the measure in the
committee Yesterday was taken ten
minutes after Secretary Mellon. Con-
troller of the Currency Criss!nger
and Gov. Harding of the Federal Re
serve Board had been questioned for
two hours in open session as to their
ideas of the bank loan adjusted GER
tificate plan. The five members vot-
ing against favorable report were
Garner of Texas. Kitchih Of Eorth
Carolina and Collier of Mississippi,
democrats. and Treadway OF Massa.
chusetts and Tilson of Connecticut.
republicans. All members of the
committee were present with the ex-
ception of Mr.. Kitchin and Represent
ative Chandler. republican, Oklahoma,
whose votes were cast by proxy.
Substitute Plan Defeated.
Before the final vote the commit
tee rejected, 10 to 8. an amendment
offered by Representative Bacharach,
republican, New Jersey. to impose
for . period Of three years 1 per
cent tax on WHOLESALERS. designed to
raise $5oo,0o0.0O0 with which to
finance the bonus. Those supporting
this amendment were all republicans.
Longworth Of Ohio, Bacharach. Mott
Of New York, Tilson and watson OF
Pennsylvania.
Under an amendment suggested by
Gov. Harding and adopted by unani,
nous vote. banks making original
loans on the adjusted service Ger
tificates could have those certificates
rediscounted by other banks au
the % certificates. Gov. Harding OBJ
iected to having the certificates re-
discountable by federal reserve
banks. saying the general economic
erect would be unfavorable.
Secretary Mellon and MT: Criss,nger n M
nosition to the adjusted certincate
loan plan, out Gov. Harding declined
to comment on the advisability OF
bonus legislation at this time: other
than to say that in his Judgment
the bank loan plan would neip tne
beneficiary. but probably not inc
There developed a difference OF
oninion between the Secretary Of the
Trea sury and the controller OF the
currency as to advising banks not 10
make advances to former service men
on the certificates; Mr.. Meiion said
nnon to give such advice. while MI
CrissinRer reiterated that II national
hanks asked his opinion he would
advise against loans on such security.
Subjected to Cross.Fire.
In explaining his position. the con-
troller said there were many banks
In the west and also In the east that
held an "unbelievable" amount of
"nast-due and doubtful paper" and
that such banks probably could not
make the advances. He said 1t would
take from one to five years for the
banks to work out the paper to which
Secretary Mellon expressed the view
that II would be better, from an eco
no,nic standpotnt, for the Treasury
tn borrow in the first instance the
$500, 1000, ,00Q which it was estima ted
thst the banks would be called upon
to advance ON tho certificates In the
first three years from the effective
date OF the bill.
All three witnesses were subjected
IN cross-fire OF questions from both
dsmocrats and republicans, and at
times several members OF the COM
mittse attempted to interrokate Z
r,itnnas At one time. There were
savsrai Tits, most OF them good.
humored. between committeeman.