Evening star., 1932-09-17
ROOSEVELT STAND
ON BONUS AWAITED
Smiths Question to Candi'
dates Is Regarded Funda-
mental Campaign Issue.
BY MARK SULLIVAN.

Ex-Gov. Alfred E. Smiths question
about the bonus, put publicly to both
candidates for the presidency, is funda-
mental in the campaign. 1t is even
more fundamental in the world OF busl-
ness. Its importance in business in
turn accentuates its importance to the
campaign.
Incidentally, Gov. Smiths action
suggests a role open to him in this
campaign and in the future. Because
of the public attention given his writ
ing, and because of his large personal
following, he can, by forceful question
asking in his new editorial post, cause
both presidential candidates, as well as
minor candidates, to come up 10 Smiths
judgment of proper attitudes on public
questions.
As to the bonus, ex-Gov. Smiths
question to both candidates is, in ef-
feet, will you sign it or will YOU veto it?
He has already got the answer Il will
veto it" from President Hoover, who
responded within "a hours after Smith
published his question. What is uncer-
tain now is whether Gov. Roosevelt will
answer, and, if SO, how.
Would Clarity Situation. g.
1t is not too much to say that at
this moment continuance of business
recovery depends more on Gov. Roose-
velt making the same answer as Presi-
dent Hoover than on any other one
condition. To put the reason for this
in A B c terms will help toward clari-
tying both the presidential campaign
and the business situation.
Payment of the bonus would take S2,-
4oo. 900 900 out of the United States
Treasury. If Europe knew certainly
that $4,000, 100000 is to be taken out
Of the Treasury, Europe would believe
again what Europe believed last Spring.
Europe believed then that Congress was
going to spend more money than the
Treasury could afford, including a
$2,500 100000 appropriation for build
ing post offices, proposed by Speaker
Garner.
Because Europe believed that, Europe
believed the American dollar was 60
ing to depreciate and America go off
the gold standard. That state of mind
in Europe, accompanied by the same
state of mind among some Americans,
led to the panic conditions of last May
and June.
AS to the bonus, all that can save
the country from it is confidence that
whoever is President will veto it. The
American Legion has this week de-
manded full and immediate payment. "
With the American Legion taking that
imperative position, there is not the
least doubt that Congress will pass it.
The House passed it last June Is by a
vote of 211 to 176 1t is true the Sem
ate rejected it, but that was only be-
cause a few leaders of both parties
quietly conferred and decided not to
enact the bonus so long as the bonus
marchers were camped right beneath
the Senate windows. Both Houses will
vote for it next time. Already a year
and half ago both Houses passed a
S1,250, ,0000 900 bonus payment on ac-
count, and passed it again by a two
thirds vote over President Hoover's
veto.
The recovery business has had so far
rests primarily and almost solely in con-
fdence that the Government will not
spend vastly more money than it re-
ceives. The recovery began at precisely
the time when Congress. upon President
Hoover's appeal to public opinion. aban-
doned its projects for enorous expendi-
lures. If the world should come to feel
that President is going to be elected
who will not veto S2,400, 0,000,0 900 bonus
bill, business would not only halt, but
slip back to where it was last June.
The need OF an answer from Gov.
Roosevelt is the greater because most
OF the pressure Tor the bonus within
Congress comes from his party. The two
outstanding leaders violent in demand
ing the bonus. passionate in stirring up
veterans to demand it, are Democrat
Patman OF Texas and Democrat Ran
kin Of Mississippi. Patman's leader
ship has the added menace that he
proposes to pay the bonus by fiat money.
Seek Veterans Vote.
It is Just to say that the Democrats
as party have determined to outbid
the Republicans in appealing for the
veterans vote. The Democrats realize
the Republicans got the advantage of
the Grand Army vote for 40 years
following the Civil War by offering
those old soldiers larger and larger
pensions. The Democrats are deter
mined not to let that happen again.
It would be inaccurate to suggest
there is any great concern among DEM
ocratic leaders whether Roosevelt an
Swers Smiths question. At the mo-
ment they are SO elated over the Maine
victory that their tendency is to take
no strong step in any direction and
take no chance of alternating any group
of voters. They feel, as Speaker Gar
ner put it, I'VE have got this election
won now and I'm not going to do any
thing to lose it