Evening star., 1932-07-06

loans.
Garner said he thought very happy
solution" was reached at the Whlte
House conference today when it was de-
cided that the 500 600 900 for direct
relief and 5000, 100000 for loans to
states be combined into $780, 600
fund for loans to be made by the Re
construction Finance Corporation TO
Governors OF States and municipalities
not more than Is per cent OF the
amount to be loaned to any one city.
Stick to Provision.
The principal point at issue was a
provision in the bill for loans to indlvld-
mails. President Hoover demanded IL
be eliminated. Speaker Garner ana MS
colleagues refused to yield.
Turnine to the public works provision,
termed by Hoover a pork barrel" Gar
II believed it would be spent wisely
and would be a means Of giving en-
ployment. A-oo mn ooo
section In conference to avoid a veto
II was decided to put nothing IN thls
section that was not authorized ana not
arnroyed by the President. so that II
suy gentlemen wanted to say it was a
pork barrel they would have to say II
was a pork barrel by the President.
Garner began his speech by saying
"It hasn't been customary since I've
been a member Of Congress lor tne
President to call members TO the WhlIe
House to discuss legislation agreed on
in conference.
s'However. I do think it was proper
for members to accept that invitation.
Its not the best custom. 90 not
think it is quite in keeping with the
Constitution" he added.
Heckler Hustled Out.
When Garner sat down amid Demo-
cratic cheers Representative Smell, the
Republican leader, took the floor.
Smell began by terming Gamers
address 1.-The acceptance speech OF the
Democratic candidate for the vice pres
idency." ..,,
said. 'has made the greatest appeal for
class distinction I have ever heard.
His appeal was the greatest demagogic
speech made on the floor Of this House
during this session"
"Remember November" young
woman called down from the gallery
when Minority Leader Smell was speak
ing. She was hustled out OF the gallery
and in the corridor later gave her name
as Miss Elizabeth Heiser. She said
that she is a farmer from South Dakota,
and lost her home on a mortgage, nav o
ing invested $4,000, and needed 81, 1000
to save her home, which she could not
raise For four years she has been
fighting for farm relief.
ITO my mind, the President is entitled
to praise for calling the conference
down there" (at the White House,, Smell
continued. 1.-THE gentleman from Texas
saws this is an issue between the PreSi-
dent and Congress 1t is not an Issue
between the President and Congress, but
between the President and the Demo-
cratic vice presidential nominee"
Scores Garner Stand.
eff it had not been for the gentleman
from Texas we would have reached an
agreement last night" Smell said.
''The whole issue revolves around
whether we are going to set up super
banking system in this country, Smell
continued. "The members of the Board
of the Reconstruction Finance Corpora
ton said it could not be done.
IF the gentleman from Texas had
Welded Just a little bit we could have
brought in the bill today. OF course, he
yielded on title 3-the pork barrel
section-because the country does not
want it."
"The question is whether we are
going to set up a banking system i'm
possible to administer or not" Smell
added.
There is not single thing in the
Presidents program that is not sound, y
Smell said.
eve are going to have relief before
this Congress adjourns," Smell con-
cluded.
"That we do not want to relieve un-
employment is without basis Of fact,
Smell declared.
Representative Rainey, the Demo-
cratic leader. followed Smell with the
statement that I'VE have created a
super-b bank, but in the hands of the
Republicans it has been used for the
nnillionaires and railroads and not the
common people"
"You Republicans charge that the
man Speaker Garner who spoke to
you for all the people made a speech
of demagogue, he continued. We'll,
gentlemen, that demagogue will pre-
side in the other branch of the Con-
gresS after next November elections. a"
Norbeck Favors Action.
Senator Norbeck, Republican, of South
Dakota, chairman of the Senate con-
ferees, was reluctant to make any COM
ment until he had talked with the other
Senate conferees, but he agreed with
several Democratic members of the
Presidents conference that the con-
ferees should dispose of the matter
without delay.
1t was made very plain that the point
of disagreement was regarding the
$500 900 900 increase in the capitali-
Zation of the Reconstruction Finance
far Il the haCa for
loans to private corporations and In
dividuals, which provision is so siren
uously opposed by the President.
There was some indication by mem
bers of the conference as they left the
Presidents Office that an agreement on
the loans to States for direct relief OF
destitution is possible and that COM
promise on the 1922, 900, 600 provision
for public works might be reached.
Speaker Gamers expression and tone
when he was commenting upon the
conference gave the impression that the
conference came out just about as he ex-
pected and that the House would go
ahead as it had originally intended.
Members of the conference admitted
they anticipate a presidential veto II
the legislation III its present form Is
carried through to enactment and sub
mitted to him for his approval.
Senator Robinson of Arkansas, the
Democratic leader, in commenting upon
the outcome of the conference today,
said the situation as it now stands is
disappointing.
Representative Rainey seemed to be
of about the same idea as the Speaker.
Representative Smell made little COM
ment, ether than to say that no agree
ment could be reached and that the
matter now remains with the confereeS.
Responsibility Stressed.
Representative Rainey. who did most
of the talking, said as he left the PreSi-
dents Office:
I'VE Just couldn't agree, and there is
no prospect on anything. We will &c
ahead with the bill as 1t now is. II the
President wants to veto the bill he will
take the responsibility.