Evening star., 1932-04-25
VETERAN KISSED
FOR BONUS ATTACK
Cry of "ThroW Him Out!w
Raised at Senate Com
mittee Hearing.

BY the Associated Press
A war veteran, Fred C. Reynolds of
Baltimore, was loudly hissed by fellow
veterans today when he opposed the
cash bonus payment before the House
Ways and Means Committee.
One cry Of throw him out" was
heard
Reynolds said he represented a group
Of veterans opposed to full payment
I'VE feel this bill to be class legisla-
ton which endangers the financial
stability of the Government" he said,
referring to the Patman bill to expand
the currency by $4,000, 100000 to pay
the remainder outstanding on the bonus
certificates.
Rainey Sounds Warning.
I'VE want you to know that there
are some veterans who consider this
appeal unpatriotic." Reynolds added
that he had borrowed s4OO on his own
certificate.
Representative Rainey of Illinois, the
Democratic leader, who was presiding,
warned as the Kisses rang out, that
the demonstration was violation of
the rules.
Earlier at today's hearing, the Ma
tional Association of Manufacturers,
through James A. Emery. put before
the committee an emphatic protest
against full cash payment
Emery called the $4,000, 100000 new
money plan an experiment" and
warned the committee to "avoid ex-
periments, especially those condemned
by historical precedents."
There is no evidence that our diff
f1culties arise from lack of currency"
Emery said.
See Political Fog.
I'VE believe the fundamental thing
that cannot be overstressed is that con-
f1dence is required to restore the equi-
librium
The fundamental trouble is that we
are moving in a fog of political un-
until the fog lifts"
What would you have done to lift
the fog?" asked Representative Eslick
Democrat of Tennessee).
Action" Emery replied. First pass
the tax bill so industry may know what
to expect"
Eslick asked if the Reconstruction
Finance Corporation were not an ex
pertinent.
Eyes. but it has historical precedent
and we approve of it." Emery replied.
Representative Vinson, Democrat, Of
Kentucky, said that during the last two
weeks the Federal Reserve System has
issued S200,000,00 in new currency on
tho of G0uorYnpoapf hond MIR
chases.
That has been done without any
change in the gold reserve" Vinson told
Emery.
IF they continue at that rate they
will have put 81, 400 900 900 in new cur
rency into circulation in "a weeks-the
same amount proposed in this bill"
Seeks Low Peace Cost.
Gaylor Lee Clark, also of Baltimore,
said he belonged to the Maryland
branch of the Veterans Committee to
Reduce the Cost of Peace.
Il do not believe the veterans are
honestly and faithfully led" Clark
said. Il know soldiers and 1 think If
the proposition had been put up to
them squareIy they would not be for it.
Soldiers will take what they can
get; we all know that. They will holler
for it, but when it comes to doing
something to disrupt the Government
If they do not get it, that is all bunk"
Representative Pettengill, Democrat,
of Indiana, recommended legislation to
give veterans the option Of turning In
their certificates for their present value
to receive coupon bonds due in l945.
Previous loans would be deducted and
interest lowered to 2 or per cent
under his proposal.
He suggested that the Government
maintain a par value for these bonds.
Representative McKeown, Democrat,
of Oklahoma, proposed plan for CASH
ing the certificates which would trans
fer the handling of the payment to
Federal Reserve member banks.