Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-13
PRESIDENT SILENT
AS HOUSE AGREES
ION NEW BONUS BILL
Leaders Ponder Possibility
of Veto of Compromise
Reached Today.
so PER CENT LOAN VALUE
PROVIDED BY MEASURE
Pending Supply Legislation May
Be Used to Force Approval
by Hoover.
BY G. GOULD LINCOLN.


Despite the wishes of the administra-
ton, the House Ways and Means Com
mittee today reported favorably to the
| House bill extending the loan value
Of the soldiers bonus certificates to so
per cent of their face value.
This, it is estimated, will make neces-
| sary 500, 100000 to finance the loans
to the veterans. The total additional
loan value, however, will be 1885,
! 100000.
Whether President Hoover would veto
such measure If it were sent to him by
Congress was a problem that worried
some OF the legislators today.
House Leaders Approve.
The President has relied upon the
| House to back him up in his legislative
program during the entire Congress to
date The House Republican leaders,
generally speaking. have approved the
bill prepared by the Ways and Means
! Committee. among them Speaker Long
worth. Majority Leader TiIson would
| not commit himself to the proposal to-
day, however, contenting himself with
saying that the matter should be care
fully studied in order to determine what
was in the best interest o. the veterans
and Of the country.
AT the White House no definite state.
ment was obtained regarding the atti-
tude OF the President toward the WAYS
and Means Committee bill. The atti-
| tude OF Secretary Mellon of the Treas
ury and OF Undersecretary Ogden Mills.
mas been strongly opposed to the bonus
legislation at this time, with q deficit
OF $375, 100000 staring the Treasury In
| the face.
Later Chairman Hawley announced
the Treasury was preparing statement
bill
Some of the Republican members of
the House, particularly friendly to
| PRESIDENT Hoover, said today that thee
intend to vote against the bonus bin
and expressed the hope that If It were
| passed the President would veto It,
| They contended that by vetoiug the bill
the President would strengthen himself
with the veterans and with the coun-
try. They insisted that the loan bill
would not be Of real benefit to the vet
Grams and that the veterans in the END
would realize that fact.
| Inc opponents OF a So-called cash
| bonus bill were successful in the WAYS
| and Means Committee In confining the
proposed legislation to a loan PROPOSE
ton and limiting the loan value to
so per cent of the face value Of the
/
4 held by the veterans.
| The plan,. it is understood, is to take
| the bonus bill up in the House on
MONDAY perhaps under suspension of
the rules. If that course Is not followed.
| a special rule may be brought in for
consideration of the bill. One thing
the House leaders we're intent upon
Whatever course is pursued was to con-
| f1ne the House to action on the bill as
1 aVNG ~
mittee.
Voted II to 4.
The Ways and Means Committee
Voted, II to 4, to report the bill favor
| ably. The who voted against the
favorable report were Chairman Haw-
! ley of Oregon, Representative Tread
way of Massachusetts,, Representative
| Chtndblom of Illinois and Representa-
tive Ramseyer of Iowa, all Republicans.
After the committee meeting Chairman
Hawley explained that he and the
| other three had voted against the IA
vorable report because they desired to
study further the financial situation of
| the Government with relation to this
| BILL He said they wished to know
whether it would be necessary to raise
additional revenue or not and what
would be the effect on the Treasury.
Those members of the committee
| Republicans - Representatives Bacha-y-
| rach, New Jersey; Hadley, Washington;
Timberlake, Colorado: Mclaughlin,
Michigan; Crowther. New York; AID
| rich, Rhode Island; Estep, Pennsylvania,
and Frear, Wisconsin. Democrat
Garner, Texas; Collier, Mississippi;
Crisp, Georgia; Rainey, Illinois; Hull,
Tennessee; Doughton, North Carolina:
Ragon, Arkansas; Hill, Washington, and
Cullen, New York. Four members of
| the committee were acknowledgements
! atives Watson, Pennsylvania; Dayen-
port, New York, and Kearns, Ohio,
| Republicans, and Garfield, Indiana,
Democrat.
They do not wish to throw the meas
ure open to all kinds of amendments
on the floor. If they have their way,
and 1t seems likely they will, the House
will be called upon to vote on the meas
ure as reported; to take it or leave it.
When the measure reaches the Sen
ate, however, it will be subject TO
amendments.
Supporters of the new bonus bill
pointed out today that the sinking
fund for the retirement of the bonus
certificates amount to $772, 000, 900. and
that the Treasury also has $50,O00000
in the veterans insurance fund, a total
of 1922, 900, 900. They said that these
credits could be used to finance the
loans to the veterans under the pro-
posed bill.
48 Per Cent Borrowed.
Some of the members, however felt
that 1t was necessary for the Govern
ment to do lot of ref1nancing, possibly
with short-term securities, to meet the
proposed loan.
Under the bill it has been estimated
the total borrowing power of the vet
Grams would reach 81, I'LL SOC, 900. Under
the existing law. which permits veterans
to borrow up to 22h per cent of the
Continued on Page 2, Column S.