The Waterbury Democrat., 1932-03-30

looking rather more like a young banker than legislator who is throwing fear into most bankers of the country.
 The argument against Patmon's proposals is chiefly that the gov- ernment cannot spend $2,000, 00O,- ! 900 when it is already piling up a huge deficit.
 Tho argument for the bill as summarized by Patman to the United Press is as follows::>
 | As to the expense involved: | "The payment can be made with out unbalancing the budget, with out a bond issue, without addition al taxes and without increasing in terest payments by the govern ment. The president said nothing about unbalancing the budget when he was persuading congress tu give Mellon, Morgan and other international bankers $2,000,000,- | coo through the Reconstruction Fi- nance corporation or when per- suading congress to grant a mora torium to foreign countries" | As to where the money would come from:
 "The government has reduced the national debt $3,500, 100 .000 more than was required by law, patman said. Therefore the gov ernment could pay the adjusted compensation certificates in full and still not owe more than con- sress contemplated it should under the schedule for retirement of the national debt"
 | Patman said that the gold re- serve was sufficient to permit issu- arce of $2,00O.0 0,000 in United States notes which require only 40 ., per cent gold backing. This, he argued, would eliminate payment of interest involved in a bond is- sue. Furthermore, Patman con .ended, final payment of the ad- susted service certificates would permit practical abolition of the :arge government bureau, which would save millions.
 fl Public welfare would be i prompted by such move," Pat i inan continued, "If the volume o1 money is increased, commodity values will rise. Farmers will gel better price for their products l Their increased purchasing power will put factories and labor al work. This is one way that cur. rency can be inflated by placing i money in every nook and corner ol .America-not by paying d''n or bonus, but by paying a debt" ! Patman's argument is q, con- ,ress has previously acknowledged he debt and that his prelr.e,. merely to pay it off TO"
 cars later. Congress last year authorized veterans to bo.,or .s :C 50 per cent of the face va,uc 0. these certificates. Those who do l not repay these loans have com- pound interest charged asainst them. Patman says this will vir- tually consume their entire certifi- cates by the date of maturity in 1945.
 According to letter he received from Frank P. Hines. administrat- CT of the Veterans bureau, Pat man said 65 per cent of the veter- ans who have borrowed on their certificates did so for personal and faimly needs. 20 per cent for in- vestment purposes, 8 per cent to buy automobiles and the remnin- ing seven per cent utilized their funds in such a way as to receive no practical benefit.
 It was indicated 32 per cent oi those who borrowed were unem- ployed and were pressed by need
 from this report, Patman con. ciudes the money paid out for ful cash redemption would. for th.
 most part flow immediately through the hands of needy veter, ans into purchases ot clothing food, other necessities and act ai q material stimuiant to trade.