Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-03
BANK PROBE LOOMS
OVER VETS LOANS
Watson to Call Attention of
Finance Committee to Re-
fuSaIs to Honor Certificates.

TOiiN that ne IIlCIibSt1 " ~ biiF> ~
attention of the Senate finance com
mittee at its next meeting.
As a member of the committee
which is responsible for the bonus
legislation, Senator Watson said to
day that the revelation made by Inc
star yesterday concerning the condl
ton locally was 'Iar away from the
original design Of the law, which was
to benefit the needy as well as the
more fortunate veterans.
II will take the question up at the
next meeting of the COMMITTEES, he
said ito ascertain the views OF mem
bers on the attitude shown by banks
in such cases.
Others Assail Refusal.
Representative La Guardia, Social
ist, of New York, and Representatives
ROYAL Johnson. Republican, or South
Dakota, and Lamar Jefiefs' LEM
Graf. of Alabama. eX-SerVlce men, de-
c1ared the attitude of banks IN deny
ing loans to needy veterans, whether
customers of the banks or not. was
entirely outside of the spirit of the
law.
Mr.. La Guardia announced that he
would offer an amendment IN the
House that would seek to remedy the
situation, in view of the fact that
congress may iIol iNAbSAiAN NN'AAt'
banks to make loans on adjusted
certificates. 1t was his view. he said
that provision should be made so that
veterans might apply at the Veterans
Bureau of at post offices for loans.
The attitude of some banks that
the bonus certificates were not ac-
ceptable as security was scored by
Representative Oldfeld Democrat,
member of the House ways and means
committee.
I'VE gave the banks gilt-edge Sc
curity and we supposed they would
accept them as gilt-edge security,
said Mr. Oldfield. THE bonus act
was passed with the expectation of
helping veterans who could not OBJ
tain loans elsewhere, as well as those
who could obtain loans at banks. l
see no way bv which banks can be
compelled to make loans, and it looks
as if there were need for additional
legislation
Capper Sees Lack of Patriotism.
Senator Capper, Republican. of Kan
sas, one of the main supporters of
the bonus act, declared that banks
,:.were making a very bad mistake in
refusing loans to any veterans who
could meet the requirements of the
law. | hoped to see a little more
patriotism displayed, little more of
the spirit of friendliness." Senator
Capper concluded. 1T would seem
that the banks had forgotten the sac
rifices which these soldiers have
made"
Senator Capper said that four col
ored men. who had served during the
war, visited his Office this morning to
ask him whether there was anything
he could do in the way of getting
loans for them at local banks on their
bonus certificates. They had applied
at various banks for loans, Senator
Capper said. and had been refused.
Mr.. Johnson. who was author of
one of the various bonus bills, was
indignant at the attitude shown by
banks not only here, but elsewhere.
He declared 1t was IAN outrage" that
banks should take this attitude, and
that if anything could be done to
bring relief to veterans under the
law he would endeavor to do so.
Caraway Attacks Attitude.
Senator Caraway, Democrat, OF
Arkansas, said:
1--WE were told that this loan pro-
vision in the bonus act would be
acceptable to banks and that was one
Of the arguments used. 1t shows
little of that great spirit of patriotism
to which banks profess to have them
turn down any needy veteran who
applies for q loan on his certificate +"
Senator Mclean, Republican, of
Connecticut, member of both the
finance committee and the committee
on banking and currency, expressed
the belief that an ex-service man
would have no difficulty in obtaining
loan on his compensation certificate
at bank where he was known or
properly introduced. He added he
could see how a bank would not want
TO be loaded down" with a great
many small loans on these certificates.
but said he felt sure that most banks
would be willing to handle a reason.
able share of them.
King Recalls Opposition.
Senator King of Utah, Demo
cratic member Of the finance commit
tee, said that he had been opposed
TO the legislation in the first place
he said he had felt that if there was
TO be pension or bonus for the
soldiers it should be a cash PROPOSE.
ton.
Senator King said he had gained the
impression that it never was intended
that the ex-Service men should be able
TO obtain loans on their certificates.
Senator David Reed. Republican. of
pennsylvania, stated that it was too
soon to ascertain how the provision of
law authorizing banks to make loans
on the certificates would work.
tnasmuch as the certificates only be
came available as security for loans
on January /
Senator Smoot of Utah, chairman Of
the Senate finance committee, had no
comment to make.
Legislation to permit the Veterans
Bureau to extend loans on soldiers
bonus certificates was discussed toda V
at conference between Edward :.
betelhelm OF the Veterans of Foreign
wars and Chairman Johnson of the
House veterans committee.
capt Betelheim argued that a bill
giving the bureau the power TO make
the loans itself would lessen appre.
hension in banking circles over pros.
pectlVe maturing of bonus certificates.
IL was represented to Chairma n
Johnson that inasmuch as the bureau
nad the funds available, it would be
desirable to authorize their use. thus
renewing the banks OF a situation
winch some of them apparently do not
like.
The Federal Reserve Board Joined
tne veterans Bureau today in assur
Ing banks of fun protection on loans
legally made to war veterans under
the bonus act.
First Loans Possible Today.
Gov. Crissinger of the board
pointed out that the Reserve system
stood ready TO discount such loans
the first of which are possible today
under the law Yesterday Director
Hines of the Veterans Bureau ISSUED
O. statement calling attention that re
payment of every properly executed
loan on a bonus certificate is guaran
teed by the Government itself.