Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-29

NAO0G01uCu EIO4A EAcO 16S.y
tremely valuable method of meeting the
national depression"
Kirby urged early enactment Of legis-
1ation to provide more hospital space
for disabled veterans. Their program,
he said, calls for 5000 beds at cost
Of $4,000 900.
A motion of Senator Harrison, Demo-
crat, Mississippi, to consider the hos
pitalization program Immediately after
the close Of the present hearings was
!. unanimously adopted.
Like Wickersham Report"
Representative Connery, Democrat,
Massachusetts,, described the resolution
adopted by the Legion Executive Conn
rntttee as "a straddle."
Like the WickershaIn report" Sem
Rtor Watson, Republican, Indiana, In
terjected.
Connery said the veterans are over
whelmingly in favor Of payment OF the
fun face value Of the certificates.
Representative Clancy, Republican.
Michigan, recommended that veterans
be allowed to borrow money on their
certificates at per cent instead OF 4
per cent.
Despite Secretary Melons opposition
to cashing the certificates, advocates
of the plan were openly claiming today
the Senate Finance Committee would
approve some such proposal
Their claims were strengthened by
the announcement of Senator Couzens,
Republican, Michigan, one OF the two
members of the committee who hold the
"balance of power" that he favors pay
ing the veterans the full face value OF
their certificates.
Melons statement before the Senate
committee yesterday strengthened the
belief of many congressional leaders
that President Hoover viii veto any bill
calling for cash payment of the face
value OF the certificates. They believe,
too, he would be likely to dlsapproye
one of the less expensive measures call
ing for cashing the certificates at their
current value.
Couzen's announcement was import
ant in view of his position as one OF the
two independent Republicans on the
Finance Committee who, by voting with
the Democrats, can control the commit
tee. The other, Lafollette of Wiscon-
sin, has not announced his position.
Despite CouZens' declaration that ne
favors redemption of the certificates at
full face value, leaders did not expect
legislation of this kind to be approved
by the committee.
Couzens' attitude made it more likely.
however, that some bill providing for
. payment of the current value OF the GER
tificateS would receive committee action.
Bills providing for this plan would
cost from $1,700 100000 to $1,000, 00O,-
900, depending upon whether the vet
Grams were given the full extra 25 per
cent voted by Congress IN the original
bonus act.
Bond Market Poor.
A clash occurred when Representative
Rainey, Democrat, Illinois, asked Mills
= if the slump in the stock and bond mar
ket on Wall Street yesterday after Sec
rotary Melons statement was made
public before the Senate Finance Com
mittee was not due to manipulation:
IT certainly don't think So" Mills
said. Word went out last week that
this proposition was being considered
seriously"
holders going to do?, Mills asked. and
answering the question himself, said
''They are going TO sell their bonds"
The Undersecretary said the Gov
eminent bond market was slim because
of the proposed payment Of the veterans
certificates.
"The market is very poor for Govern
ment bonds already. The very sugges'
ton that the Government Is going te
do this has bad effect on the Govern
ment bond market"
No Money Available.
Undersecretary Mills followed Mellor
perore the House Committee and sait
the Treasury is very much concerned
over an anticipated $375,00O,OOO deflci
for the year.
Mills added, however, I'VE are no
recommending an increase in taxes a
the present tire"
rne treasury Cfncial made the state
xaant in an argument with Democratic
Leader Garner of the House over IN
terpretion of the provisions of the vet
Grams compensation act.
In reply TO a question by Chairman
Hawley as to the amount Of none.
available in the Treasury for paymen
on the certificates, Mills said: mot
penny"