The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-01-30
HOOVER FACES
ANOTHER SLAP
IN BONUS ROW
Republican Senators Are
Likely to Turn Against
President.
POWER BEHIND PLEA
Proponents of Immediate
Payment Presenting
Strong Front.
BY LYLE c. WILSON
United Press staff Correspondent

WASHINGTON, Jan. 3O.-The ad-
ministration's counter attack upon
advocates of further cash payments
to World war veterans was sched-
uled TODAY if a compromise project
can be perfected in time for submits
sion in house or senate.
Plans of the administration are
secret, but the United Press was in
formed the substitute program
would increase the rights of veterans
to borrow. but would not require a
bond issue. Financial details of the
legislation we're under scrutiny
Thursday to determine whether the
treasury department could accept
them. Z
Issuance at this time of $780,
100000 in government bonds for the
bonus would cause a decline of
81 900, 100000 in the market value
Of outstanding government bonds
and would delay recovery of the
country from the business depres-
sion, j. Herbert Case, chairman of
the New York Federal Reserve bank,
testified today before the house ways
and means committee.
Disaster Is Pictured
Case based his estimate of the
fate of the government bond mar
ket on the result Of liberty loan is
sues during the war and said that
issuance of a Az per cent bond,
which would be the probable rate,
would cause billion dollar drop in
government bond prices.
Unless the counter attack is made
quickly, it may be unavailing. The
veterans are attacking the relief
salient with the enthusiasm charac-
teristic of them at st. Mihiel, the
Meuse- Argonne and Chateau Thierry
some years ago.
Administration defenses are weak.
Unless some substitute proposal can
be put forward, Republicans will
desert President Hoover on this
issue. as he has not been deserted
in his administration so far.
hVOfCT aces OeSeTI1On
Inquiry in the senate fails 70
reveal a dozen men willing now to
say without qualification they will
oppose voting further cash to the
veterans.
Majority Leader James E. Wat
son probably would vote against
such a scheme. So would Repub-
lican Senators Reed and Bingham
A few others would vote with the
President on a showdown, but do
not want to commit themselves now.
The Democrats are almost unani-
nous in support of cash payments
now.
But among opponents Of the
scheme there is a privately ex-
pressed belief that high officials
of the American Legion are not
really anxious to have veterans in
surance certificates cashed at this
time.
Legion Believed 'Sparring'
The proposed compromise is
directed to giving legion officials as
well as worried senator's a chance
to abandon cash payment projects
without stirring up constituents
back home.
Secretary of Treasury Mellon has
hit hard against any veterans bond
issue. Both senate and house COM
mitteeS have heard him.
The house ways and means COM
mittee continued it's hearings to-
day, with Brigadier- General Frank
T. Hines, administrator of veterans
relief, testifying Senate hearings
will be resumed later.
An immediate effect of relief
agitation has been to accelerate
action on the veterans hospital
program. The senate finance COM
mittee has decided to hold hearings.