Evening star., 1932-04-12
'CLASH ON METHODS.
|0F RAISING BONUS.
Thomas, Opposing Patman,
Sees Currency Plan
as Menace.
BY the Associated Press.

BY the Associated Press.
A sharp difference of opinion over
means to secure money for paying the
81, 400, 600 900 soldiers bonus developed
between advocates of the legislation IN
today's hearing before the House Ways
and Means Committee.
Representative Patman, Democrat, of
Texas, who is directing the bonus cam
paign, has urged the issuance of United
States currency on the Treasury.
Today. Senator Thomas, Democrat.
Oklahoma, another advocate of the
bonus payment, testified the Patman
plan would kill the Federal Reserve
system unless Congress appropriated
directly for its support"
FaEess Go<srnment Consoix.
Thomas said the bonus certificates
should be cashed in Federal Reserve
bank notes based on 2 per cent Govern
ment consols issued to the amount of
81, 400, ,0OO, 900.
Father Charles E. Coughlin, director
OF a Detroit radio program, appeared
for the bonus payment. He said he did
not represent the Catholic church, but
expressed the sentiments of more than
2,500,000 letters received In the last q
weeks.
Acting Chairman Crisp of the Ways
and Means Committee announced that
George l.. Harrison. governor of the
New York Federal Reserve Bank, and
Charles E. Mitchell, chairman of the
National City Bank, will be requested to
testify on the soldiers bonus issue
Crisp explained that Thomas had
made partial quotations from these
bankers indicating they were favorable
10 credit expansion, and believed 1t only
fair that they should have an oppor-
tunity to state their exact position
Wants Dollar Down.
Thomas said that of $500, 900, ,00C
outside the Treasury, only $2,5o0, 900,
900 Is in actual circulation.
This scarcity has put the dollar too
high" Thomas said. 1T is my conten-
tention there can be no relief until we
bring the dollar down
"As result of the Presidents anti
boarding campaign, make the state
ment he has reduced circulation by
5000 ,000 900.
THE only way to help the country is
to get the buying power back into the
hands of the people"
Watson Republican, Pennsylvania
asked Thomas why last years bonus
payment had not accomplished much ol
the result he desires.
Because the Government paid In
credit, not actual money" Thomas re.
piled.
Compared With Credit Body.
ut is just like the Reconstruction
Finance Corporation; it advances credit
and does not put more currency into
circulation"
Asked by Acting Chairman Crisp n
5000 900 900 had not been allotted t.
farm loans out of the Finance Cor
poratic.l's capital. Thomas replied
I'm my part of the country the farm
ers not only can't get the money. but
cannot even get the blanks to apply fol
the money
Father Coughlin said the Reconstruc'
ton Finance Corporation was hurried
through both the House and Senate tt
make available So, 900, 100000 Of public
funds for financing financiers anc
strengthening tottering railroads.
Points TO Rail Loans,
"If the Government can pay $4,000.
900 900 to the bankers and the railroad,
to whom it owes no obligations why
should it not pay $4,000, 100000 TO tht
soldiers to whom 1t recognizes an obli'
getion?"
ITO pay this bonus would enable
millions of idle and part-time veterans
to purchase necessities" he said. That
would put $4,000 100000 into channels
of commerce and trade.
1T will compel us to revalue the
American dollar to the approximate
level it attained In 1929. II will prob
ably throw us off the gold standard.
"Revaluation of the dollar will come
eventually either legally or revolution
arily. We have given the last trans
fusion to the sickly economic system oi
this country and soon will have a CORPSE
on our hands. The Reconstruction Fl
nance Corporation has done little good
IF We do not revalue the dollar
legally-remember Russia of 1917; re-
member the French revolution, remem-
Der our own Revolution of ITS"
BelittIes Legion Stand.
The priest concluded by urging the
committee to give precedence TO hu-
man rights over financial rights" He
disposed of the action of the Detroit
convention Of the American Legion by
saying:
"The convention was attended only
by those who had train fare"