Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-05
VETERANS LOANS
HELD MORE LIKELY
Hines Satisfied With New
York Trip-More Men Crowd
Banks in Capital.

While Director Hines Of the Veter
| ans Bureau. back from New York, to
( day expressed confidence that thu
| present difficult situation" over The
! soldiers bonus would clear up shortly
I into a satisfactory status" holders
| of certificates filed into Washington
banks in increasing numbers to try
| their luck in getting loans. A few
| were successful.
! Director Hines spent yesterday II
New York in conference with officials
OF the Federal Reserve Bank, Walter
| T.. Frew, president of the New York
clearing house, who is president OF
the Corn Exchange Bank, and a mum
Der of other prominent bank officials
| in an effort to encourage banks tC
advance loans, pledging the support
and cooperation of the Government.
Coincidental with Director Hines
return from New York legislation tC
aid World War veterans in obtaining
loans on their adjusted compensation
certificates direct from the Veterans
Bureau was introduced in the House
by Representative Edith Nourse
Rogers, Republican, of Massachusetts
Has Worked for Veterans.
Before her election to Cong-N IS
Mrs. Rogers was q special representa-
tive of both President Harding and
President Coolidge in studying the
condition of World War veterans. She
stated that hundreds of veterans
have been anticipating the loan value
of their certificates only to be turned
down by the banks.
In some of the larger banks of
Washington today the number of ap.
plicants was larger than at any time
since the loan value Of the bonus Ger.
tificate became effective. Many of the
applicants were colored and waited in
line for consideration.
Some Government officials were be-
ing called upon by employees to iden-
tify them for the purpose of getting a
loan. A few of these who had been
so identified, it was known, were favor.
ed by banks with loans.
Local bankers, however, continued
in their attitude of reluctance gener-
ally to grant loans wholesale, and
were inquiring closely into all details
of each case. 1t was apparent, how
ever, that there was some relenting
from the almost unanimous refusal at
first to grant loans to veterans who
were not customers Of the banks.
See Many Complications.
Local bankers still feel that the COM
plications which the Government has
thrown around the matter Of making
a loan makes it's desirability as a bank
able proposition somewhat doubtful.
Gen. Hines said today he noticed al
ready a marked change in the general
attitude of banks. AS a result of his
New York conferences, he said, he sue.
ceeded in clearing up much of the lack
Of exact information and understand
ing of the methods necessary in
handling the certificates, which, he
said. had been responsible for a great
deal of the reluctance on the part of
bankers to advance leans.
At the same time the director put
in a word for the banks themselves,
saying that there was such a rush of
veterans to make loans that the nor
NAL business of the banks was greatly
retarded.
AS one of the directors of the Con-
tinental Trust Co. Of Washington.
Gen. Hines is trying to use his infiu-
ence with the company to make loans
to veterans, the policy Of the institu-
ton having been to turn down a ma
jority of veteran applicants in COM
mon with other local banks.
Veterans Are Learning.
World War veterans are learning
more each day about their prospects
for obtaining loans on their bonus
certificates.
General refusal of banks to recog.
nize this Government backed, 2O-year
paper as collateral security for small
loans has precipitated a discussion
among the three agencies most inter
ested, the American Bankers Asso-
citation, the American Legion and the
Veterans Bureau, which presages at
least an early Qualification of the
question. Congress, likewise, is begin
ming to take a hand. Mrs. Edith
Nourse Rogers, Representative from
Massachusetts, yesterday introduced a
bill in the House to authorize the Vet
Grams Bureau, which now must make
good to the banks any unpaid certifi-
cate loans, to loan money direct to the
policy holders.
Representative Rankin of Missis.
sippi has declared his intention of
asking the ways and means commit
tee to make an investigation. In the
Senate. certain members Of the finance
committee are favorable toward an in
yestigation.
An appeal by the American Legion
to bankers brought reply last night
from Melvin A. Traylor Of Chicago
president of the American Bankers
Association, declaring fear Of red tape
and doubt as to proper identification
and signatures had caused bankers
to hesitate to loan money freely on
the certificates.
Asks for Assurance.
'If proper authorities can give re-
assuring publicity on this point" he
asserted, 81 am sure the attitude of
the banks in general will be entirely
favorable"
Harold w. Breining, assistant di.
rector of the Veterans Bureau in
charge Of financing of the bonus act.
had this to say about the matter of
identification. 1.-THE Veterans Blu.
reau has left the requirements of
identifications entirely to the banks"
While governmental agencies and
the Legion officers are doing their
utmost to relieve the situation, fndi.
vidual posts are beginning to take a.
hand in the affair. Vincent b. Cos
tello Post Of the American Legion, the
first local post to Jump into the fight.
last night adopted a resolution urging
banks to seek such remedial legisla-
ton as would enable them to meet
contingencies and forwarding the mat
ter for action to the Department of
the District with a request that the
national body take further action.