Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-07
BONUS THREATENS
SPECIAL SESSION
Compromise for $40, 600, 600
Drought Loan Fund Ap-
proved by Hoover.
CONTINUED From First Page.)

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1.-The advances and loans made pur-
suant to this act and amendment
thereto shall be secured by liens on
crops or by other security. under such
rules and regulations as the Secretary
of Agriculture may prescribe.
Under the language the $4,000, 900
Joint resolution now law Is liberal1zed
SO that feed may be purchased for all
live stock instead of merely Tor work
stock.
While the language of the tentative
! agreement does not specially state that
the money loaned may be used for the
purchase of food, it is generally under
Stod that once the money is loaned to
the farmers it may be used to buy food,
clothes or anything else that he may
need for himself or his family.
The administration leaders insist,
however, that the Federal dole"
against which they have fouSnt con-
sistently, has been eliminated. No
money is appropriated for the free dis
tribution of food, as proposed in the
Robinson amendment, to the distressed
in all parts of the country. The new
relief measure is for those people who
live only in the drought, storm and hail
stricken areas of the country. There is
no provision for getting free food to the
unemployed in the cities or elsewhere,
Insurgents May Fight.
On the other hand, the Democrats In
the Senate claim they have what they
commended for in the first place, pro-
vision for loaning money to those farm
ers in the drought-Stricken area, who
| are in need Of food for themselves and
their wives and children.
At the White House it was stated en-
phatically that the President had not
retreated from his stand against the
distribution of free food by the Federal
Government.
1t was said that even though the
Democrats and the Republicans had
agreed to tn enew relief proposal, there
were Republican insurgents, among
them Senator Borah of Idaho and Sen
ator La Toilette of Wisconsin, who were
not yet S2tlSfled, and who were prepared
to fight the plan. However, if the Re-
publicanS and the Democrats are united
they could, If 1t became necessary, in
woke the cloture rule to put through the
appropriation bills and wind up the ses-
sion of Congress March without the
necessity of a special session. They
hope to be able to avoid such radical
steps, however. Three weeks still re-
main of the present session, ample time,
the leaders say, to complete the appro-
priation bills and relief legislation.
Attacked by La Guardia.
The relief compromise was assailed
today by Representative La Guardia,
Republican, of New York. He termed
it economically impossible, politically
disastrous, morally insincere and prac-
tically ineffective"
II hope the representatives of the
farmers in the House will see through
this and stand together as we did be-
fore" said La Guardia, who joined the
Democrats in the fight for a direct re-
lief appropriation.
II the sponsors of the compromise are
sincere in using these funds for the i'm
mediate relief of drought-stricken far
mers, said the New Yorker, they know
that they can never be repaid"
THE crop Is already mortgaged for
the seed loan," he said. Therefore,
why put the unfortunate farmer in the
position of signing something that he
will never be able to repay.
If they do intend to press the far
mer until the loan Is paid, then instead
of having the farmer in restitution for
one season We will have him broke,
poverty stricken and destitute for ten
years"
Food Loan Assurance Demanded.
A demand that the administration
give definite assurance" the $4,000
600 will be loaned to farmers for food
purchases was made by Representative
Byrns, Democrat, Tennessee.
He said he did not consider loans
for rehabilitation" any stronger Ian
guage than that used in the $45, 000,-
0c0 drought loan act which authorized
advances for other purposes incident
to crop production"
HT fhink fhau kNotH Co. %aaJ -
he said, but Secretary Hyde told us
definitely he would not so interpret
the drought act.
Before we pass this would like
to know whether he has changed his
mind about such advances being doles. I"
, Representative ASwell, Louisiana
ranking Democrat on the Agriculture
Committee, expressed a similar view.
TiIsOn Issues Statement.
Regarding the compromise. House
Leader Tilson issued a statement in
which he said: "It is gratifying that ali
reference to appropriations from the
Treasury through the Red Cross or
| other agencies has been abandoned. II
was necessary that this be done before
there was any proper place for COM
promise" he emphasized.
"Only loan proposition under prop
er safeguards and with adequate secur-
| ity now remains.
1T will be recalled that the contro-
| Versy between the House and the SEN
ate has been upon the straight propo-
sition OF appropriattng SOS, 000, 900 from
the Treasury to be distributed as char
| ity through the Red Cross or other
agencies. The House, by a decisive
majority, determined that this should
| not be done. The compromise now
proposed deals with entirely a different
| matter. It now proposes to increase
loan facilities for agricultural relief.
The intermediate credit bank is chosen
as the principal vehicle through which
to make these loans. Therefore, the
| amount of funds, and the banking ma
chinery through which it may be made
available, are the only, matters now
the subject Of the compromise.
Amount Involved Not Issue.
1.-THE adoption of such a compromise
| will settle once and, hope, for ALL that
| hereafter the Red Cross is to be left
with its powers unimpaired to- perform
| its proper function in the distribution
of charities, and that under present con-
ditionS no appropriation Of funds will
be made from the Treasury for distri-
button as charity through the Red Cross
or otherwise.
Prom the beginning, the amount of
funds involved has not been the subject
of controversy. This was q matter to
be determined by the need.
Nov that the question of appropriate
ing from the Treasury for distribu-
ton as charity has been removed from
the Treasury by the abandonment of
the effort, the amount that may be
properly made available for loans
through intermediate credit banks or
other loaning facilities is in every sense
OF the word a proper subject of COM
promise"
A compromise plan under which it is
proposed tentatively to increase the
loan allowance on adjusted compensa-
tinn certificates of World War Natarans