The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-02-02
BY MARSHALL M'NEn
Times Staff Correspondent

WASHINGTON. Feb. 2.-Bonus
legislation hearings, forced by those
who favor cash payment to World
war veterans now, continued before
house and senate committees today
with the possibility that a decision
soon may be reached by one of the
Two.
Representative Rankin Dem,
Miss.) pleaded with the committee
today for the cash bonus, declaring
that "if the veterans of the World
war ever needed what the govern
ment owes them they need it now"
He argued that circulation of
money at this time would help re-
vive business. AS an alternative to
floating a bond issue, he suggested
that taxes could be increased on the
wealthy.
I'D put the same wound stripe on
the purses of those who made for
tunes from the war as on the shoul-
der of the soldier who faced the
guns in France" he said, pointing to
treasury statistics showing the great
increase of millionaires as a result
Of the war
Compromise Is Hinted
If any legislation at all is reported
by the finance committee to the SEN
ate or by the ways and means COM
mittee to the house, it probably will
be some measure of compromise, a
bill, say to increase the present loan
value Of adjusted compensation GER
tificates.
Hearty opposition to proposals for
cash payment has been voiced be-
fore both committees by the treas
ury and by bankers. They see the
spectre of another and deeper de-
preston lurking behind the momen-
tary boom" which would accom-
pany the floating of the bond issue
OF $3,000,0O0, 900 or more that would
be required to pay off the bonus.
Session to End Soon
These statements seriously have
excited the financial centerS of the
country; but at the same time the
hearings have enthused proponents
of cash payment so as to make
many of them predict that there
will be legislation this session.
But this session will end in just
tWenty-Seven days.
Hope for a compromise was given
when Veterans Administrator Hines
testified before the house commit
tee Saturday. He spoke again
against cash payment, but said a
proposal to increase loan values OF
the adjusted compensation certit1-
Gates would least effect our Geo.
nonlic situation.
Now Is Serious Issue
It is claimed ON behalf of one
If these proposals to hike the
amount a veteran may borrow on
his certificate, that there is money
enough now in the treasury's bonus
sinking fund to take care OF the
increased loans. But exhaustion OF
this reserve, built up over a pc
Rod OF years, may entail other
financing.
It is believed, of course, by those
Who oppose bonus legislation that
presidential veto of bill OF wide
scope could not be overridden in
this session Of congress.
Cashing the soldier bonus really
has become a serious issue since
the American Legion executive COM
mittee met just a week ago and
reversing its previous position
voted in favor of sorue such relief
Tor ex-service men.
Congress Between Fires
Thus. In the changing of what, a
few months ago, was just rosy
dream into a full-grown, contro-
versial issue, congressman have
been caught between two enormous
forces.
On one hand are the veterans
voters, hundreds of thousands of
them-favoring cash payment. A
congressman who wants to come
back to congress doesn't ignore the
ex-service men in his district, nor
uOeS a SClldtOl c4llO N4ACA4s
On the other hand is the admin
istration, opposing cash payment,
and backed in this opposition by
the treasury. the bankers and bust
ness men.
Set Back Is Predicted
The former claim the government
owes them debt, that this is ex-
actly the time to pay the debt, or
the theory that circulation of i'm
mense amounts Of money would
help remedy the depression.
The latter claim the country can
not stand now the floating of bill
lions of dollars of government bonds,
which would be necessary to make
the cash available.
This attitude was reflected in
weekend statements Of New York
financial concerns. These spoke OF
the nervousness" of the market
over bonus agitation
one said the main worry of the
street now Is the proposal to pay the
soldier bonus" and another pre-
dicted a devastating set back" ii
cash payment were agreed on.