The Washington herald., 1922-03-15
Suspend Rules to Force
Action at Monday
Session.
COMMITTEE HAS
STORMY PERIOD
Fail to Agree on Effect
Of Measure Upon
Finances.


Leaders expect TO pass it Monday.
under a suspension Of the rules.
This means no amendments will be
permitted. and that there cannot
be more than 40 minutes debate.
The bill was reported favorably
late yesterday by the Ways and
Means Committee. after conflicting
testimony had been heard from Sec
retary Mellon. W. ID. Crissinger.
Comptroller OF the Currency and
W. =. G. Harding. governor Of the
Federal Reserve Board.
The committee ignored the threat
Of Presidential veto and the at-
vice Of Secretary Mellon.
For Collateral.
The bill. as reported. provides for
the issuance OF adjusted service
certificates 20 veterans. computed al
the rate OF 81 daily. for domestic
service and sl-25 daily for overseas
service. plus Is per cent. The cer-
tifcates mature in 20 years and
bear "a per cent interest. CONF
Between now and October /. ls1
they can be utilized as collatcrS
for loans at banks up 20 SO per
cent of their value. After that,
they have a loan value with the
government Of IS per cent OF their
face value.
Veterans entitled to less than $50
will receive cash.
The bill also provides for assist
ance in purchasing homes. acquir-
ing farms, or taking vocational
training The veteran may take his
choice of any OF the plans.
Five Oppose It.
Tn, vote on reporting the bill
was ls 20 5. Opposing it Were Rep
resentstives Treadway, Of Masss-
chusetts and Tilson. Of Connecticut.
Republicans. and Representatives
Garner. Of Texas, collier. OF Missis-
sippi, and Kitchin. Of North Caro-
lima Democrats Kitchin is rank
ing minority member on the com
mittee: he voted by proxy.
After hearing Treasury testimony.
the committee altered the bin so
that the loan certificates may be re-
discounted by banks at other bspB<f
but rediscount at Federal Reserve
Banks was prohibited. This re-
suited from testimony OF Comptrol-
Ter Crissinger that IL the certih-
Gates we're discountable. much OF his
objection would he removed. and
from the objection Of Gov. Hard
ing TO have large sums of unnuid
paper concentrated in the twelve
Reserve Banks. The effect Of the
change will permit the smaller or
overloaded banks to dispose Of their
certificates with the larger hnan-
cial institutions
Opinions Vary.
Considerable difference Of opinion
among the Treasury officials was
developed at the hearing. Secre-
tary Mellon thought that loans un-
der the certificate plan would en-
barrass banks as well as the gov
ernment Gov. Harding Thought
loans that might be made would
not prove burdensome to banks
Comptroller Crissinger thought that
they would. Crissinger did not want
large amounts of non negotiable
paper in the banks; Harding did not
want this paper discounted at the
Federal Reserve Board. Mellon
thought it made no difference
whether the certificates were or
were not discounted at the Reserve
Banks.
A large part Of the committee's
tlme was taken up in wrangiing
among themselves. Intcrruptions
were so frequent that many OF the
questions asked the officials we're
not answered. Democrats evinced
considerable hostility toward the
Republicans because the latter had
framed the bill entirely by them
selves, and had only invited the
minority members to the final meet.
tnE as a matter Of formality.
Wait a minute, wait a minute
you're a busybody." Chairman Ford.
ney told Representative Garner a,
one Juncture.
Garner told Crissinger he took 4,
that the latter did not favor issuina
pawn tickets" to soldiers.
Nor rain checks rejoined Girls.
singer, explaining that he thought
cash payments best
This created some anger among
the Republicans.
Were all entitled to our opin-
ions, Crissinger remarked I'm
not running the Treasury Depart
ment."
U Nor the Congress" said Repre-.
St'taNiNt ETedTr pOlnteulN.
Nor the Congress" repeated
Crissinger with a bow.
Arainst Loan Plan.
Crissinger said he had stated. ~
reported, that he would advise ns
tfonal banks not 10 make loans on
certificates IL his opinion wers
sought. Secretary Mellon had said
he did not think this would be nee.
esssry. when asked IL he "consid.
cred 1t incumbent" on the Treasury
to take such action. This prompted
Representative Longworth to com.
ment on the apparent dvergencs
of views.
Perhaps the Secretary and I dis.
agree" said Crissinger. Il didRt
hear what he said" f.t
CrisSinger explained that his OBJ
lection to the loan feature was
based on the fact that large num-
bers of banks were loaned to the
limit, and that because OF condi-
tions. they now held much pancr
which they would not be permItte
normally to carry.
Gov. Harding said that assum-
ing the total amount to be bor.
rowed would be s3OO. .OOo. Goa. he do
not believe the banking system Il
the country would be greatly bur
dened.
| Secretary MeIlon neneated bIs ne.