The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-20
VETERANS ASK
CASH; OPPOSE
WAIT TILL 1945
Organization Of U. S.
Finance Corporation Stirs
Action by Ex-ServiCe Me
Continued from Page II

Monies to raise money through such
financing to be loaned to corpora
tions where no commitment exists,
the soldiers are Of the opinion that
it likewise would be not unsound
nor uneconomic TO use the same
plan TO pay them where a definite
commitment does exist
The question is not whether the
government will pay the remainder
on certificates held by veterans. The
sole question is when payment will
be made and how the money will
be raised.
Ask Similar Plan
II the reconstruction finance bill
had not been passed the demand OF
the ex-Service men probably would
not have received much considera-
ton at the hands of the present
congress. But since this law was
enacted, and now is being operated,
and funds in sums reaching into
multiplied millions are being loaned
10 railroads, banks and other forms
of industry to pay interest on out
standing bonds to pay interest and
principal to banks, and other forms
of operating and overhead ex-
penses. the ex-service men demand
that congress employ similar plan
of financing to raise funds to pay
them the balance due on their
certificates.
A committee OF the house OF rep
resentatives, composed wholly of
ex-service men, is sponsoring the
legislation and presenting demands
OF the veterans.
Position of this committee is that
while the eX-seryice men are in dire
need OF the balance due, and while
such veterans are practically unani-
nous for the full payment, yet UNI
less a plan for financing similar to
that used in raising funds for the
Reconstruction Finance Corporation
can be adopted-and further that
unless it can be shown that full
payment in cash will be of substan-
tial benefit to the country-the
committee will not insist that the
legislation be enacted.
Millions Are Loaned
The records show that the Recon-
struction Finance Corporation has
loaned approximately $30O,000,000,
and that the Federal Reserve sys-
tenn is buying government bonds at
the rate of some $25 10000 a week.
These activities are presumed TO
be placing additional money in cir
culation. But the treasury report
shows that during March, $150,0OO,-
900 in currency was retired from
circulation and Cancelled.
1t is contended by proponents of
this legislation that the same Geo.
nomic law which controls the price
of commodities such as wheat, corn,
cotton and livestock, likewise con-
trolls the buying power or value OF
money.
When commodities such as wheat
and cotton are plentiful, they are
cheap. When they are dear, they
are high; hence, the contention is
made that when money is plentiful,
1t is cheap; when it is scarce, it is
high.
Hence, the present practice of the
federal reserve board in reducing
the amount of money in circulation
is claimed to be responsible for the
continued fall of commodity prices,
stocks, property values, and the
downward trend of business gener-
ally.
Public sentiment throughout the
country is crystallizing behind a de-
mand for an increase of the amount
Of money in circulation and the
consequent expansion of credit.
Benefits Are Seen
Proponents of this legislation are
demanding that the money in cir
Culation be increased within con-
trolled bounds, and to the end that
such increased circulation shall
reach every state, every county.