Evening star., 1932-04-11

Continued From First Page)
pie of the United States and not alone
the veterans.
We have so serious a congestion and
so serious a shortage of currency 20
carry on business that this country is
in a partial paralysis. The most effec-
tive way to reach this difficulty is TO
emit this money at this time for the
sake Of the business men of this coun-
try"
Representative Connery. Democrat. of
Massachusetts, who testified after Pat
man and Owen, issued challenge TO
Henry L. Stevens, jr. national COM
mander of the American Legion, to poll
his membership on the bonus question
Il predict he will find that 95 per
cent of the Legion is for the bonus pay
ment," Connery said.
Stevens recently issued a statement
in opposition to cashing the certificates.
AS the committee ended it's hearing
for the morning. Rainey issued his
statement, saying "once imitation is
started, the currency will Immediately
drop below par value. and it is impos-
sible to check its downward trend"
He said, however. he was not overly
optimistic Of stopping passage of the
legislation by the House.
Sees Harmful Results.
At about the same time, Senator
Robinson said he did not favor the
cash payment of adjusted service GER
tificates" and was convinced that
legislation appropriating more than
two billion dollars for that purpose will
produce harmful results that will more
than offset the benefits to be antici-
pated."
III, as some propose" he said cur
rency or Federal Reserve notes NAV be
issued in payment of adjusted service
certificates, why all this confusion and
controversy about increasing taxes to
balance the budget if it can be accom-
pllshed by the simple process of print
ing money!"
Disagree on Exact Terms.
Representative Patman, who was the
first witness. said most of the advocates
favored paying the certificates in Unit
ed States notes though they were not
agreed on the exact terms of the bill.
Among those in attendance were Brig.
Gen. Frank T. Hines, veterans admin
lstrator, and John T. Taylor. legislative
representative of the American Legion.
whose head, Stevens. has opposed pay
ment of the certificates.
unless We can show that payment of
the bonus will benefit the country and
promote the general welfare" Patman
declared. we are not entitled to have
this bill passed.
II 1t will be the least bit detrimental
10 the general welfare, we are not en-
titled TO win.
There are 10000 able-bodied vet
erans out OF work. There are $4,000
slightly disabled veterans who are out
OF work. Then there are 100000 vet
erans working only one or two DAYS a
week
There are only 500 900 certificate
holders able to borrow who have not
avalled themselves of that opportunity.
This indicates that four-fifths of the
certitlcate holders need the money.
The question is: Can the payments
be used as vehicle to bring the coun-
try back to prosperity? We believe
they can.
I'VE think a bond issue would be
detrimental to the country and pro-
pose the issue of currency instead"
The testimony began before the COM
mittee at about the time Representa-
tive Fish. Republican, of New York
was telling meeting of the American
Bankers Association that the proposal
to cash the unpaid so per cent of the
bonus would exhaust our gold re-
serves and shove us off the gold stand
ard and make the dollar look like
30 cents"
Soft VS.. Sound Money.
1T is in the last analysis, the same
old fight of soft money against sound
money" Fish said. "All it requires is
few gallons of lubricating oil and a
few bales of paper for printing money"
Acting Chairman Crisp of the Ways
and Means Committee put into the
record a telegram from Maj. Gen.
Smedley D. Butler, U. S. M c., retired,
favoring the bonus legislation. The
Butler telegram said he regretted he
could not attend the hearing to testify
In person in favor of the prompt pay
ment to the soldiers of the unpaid por-
ton OF the bonus, which I feel Justly
due them.
L have always been and shall con-
tlnue to be in favor of this bonus" he
said.
Unfortunately, however, I cannot
possibly leave the present campaign in
pennsylvania to come to Washington at
this time
I have travelled through AZ States in
the past six months and everywhere
ind the soldiers in great need of assist
ance. The Nation owes them this return
for their services"
Double Gold Standard"
Patman said advocates of the paw
ment were hopeful that this legislation
not only will pay the certificates, but it
Will put sufficient money in circulation
SO that commodity prices will rise.
whether the amount VIC propose to
pay out Is enough to accomplish this,
don't know" he said. I don't think
this amount is too much. The question
in my mind is whether it is not too
little.
We don't expect to start out on any
wild program like Germany did. We
don't want to put out five times as
much money as the country needs. We
are willing to tie to 40 per cent gold
basis.
We have $4,000, ,O0O, 900 in gold, ac-
cording to Treasury statements. That
is enough for $4,000, 900 900 in currency.
But there is only $500, 900, 900 900 in
currency in circulation. The trouble
with this country is that it's on double
gold standard"
APPEAL IN CANNON'S
CASE FILED BY u. S.