Evening star., 1932-04-29
WAR HERO ASSA|LS
PLAN T0PAY BONUS
Combats Patman Proposal.
Prof. Fisher Advises
Against Measure.
BY the Associated Press.

BY the Associated Press.
An economist and a soldier joined
today in opposing cash redemption OF
the soldiers bonus now.
Before the House Ways and Means
Committee Prof. Irving Fisher. Yale
University economist, and Richard W.
O'Neill of New York, former State
chairman of the Disabled American
Veterans, assailed the Patman full pay
ment plan.
Fischer said it would be blow to
business confidence. He joined in the
views previously expressed by Secre-
tary Of the Treasury Mills and Eugene
Meyer, governor of the Federal Re
serve Board, that It was unsound eco
nomically to initiate the currency by
$4,000, 100000 to pay the bonus.
OrNeill, a holder of the Congressional
Medal of Honor, said needy veterans
should be helped. but that "the real
veteran wants q Job with a living
wage"
The first witness today was ONeill,
who resigned recently as New York
State chairman of the Disabled Amer
lean Veterans when that group went on
record for cash payment. He told the
committee that in opposing the Patman
bill II am earnestly and sincerely try
ing to represent the interests Of the
veterans"
"No Living Heroes"
"I disagree with those who say cash
payment would ruin the country
financially" O'Neill said. II disagree
also with those who say 1t will cure all
our troubles
O'Neill won the Congressional Medal
of Honor for bravery in France when
he was 20 years old, but he opened his
argument with the statement:
There are no living heroes"
He paid tribute to Representative
Patman, Democrat, Texas, and Rankin,
Democrat, Mississippi, leading bonus
advocates, for their sincerity in for
warding veterans legislation.
This committee could give serious
consideration TO the relief CT veterans
In dire need" O'Neill said. 'Of the
total holding certificates today. two
thirds don't really need the cash pay
ment.
IF the bonus Is paid now, the vet
eran will be living practically in FOOLS
paradise for a couple of months; then
he will realize he has spent his fam
ily's only safeguard"
ONeill assailed veteran leaders for
using the cash bonus as "a political
foot ball"
"They were known in the service as
gold -brickers," he said. Some veteran
leaders have succeeded so well in selling
this cash-bonus idea that the real needy
veteran thinks it Is only matter Of
weeks until he gets his money. Some
legislation should be enacted, if possible,
for the needy veteran"
ONeill charged the Workers Ex-
service Mems League, one OF the groups
urging cash payment. was a communis-
tic organization, taking advantage Of
this situation to spread their doctrine" !"
Fisher Opposes Bill.
Prof. Fisher next took the stand.
IT am opposed to the Patman bill,
and I agree substantially with all that
Secretary Mills and Gov. Meyer have
said" Fisher said. 81 see two chief OBJ
jections to the Patman bill.
First, that it would pay what is
not due, and. secondly, that it might
further impair confidence, and by i'm
pairing confidence be deflationary, not
infiationary. We are now suffering
from defiation.
What we need is relation, that is
imitation justified because counteract-
ing recent great and rapid deflation,
and this can best be secured by what
Secretary Mills advocates and calls
controlled credit expansion'-thati is,
an increase not of pocket currency, but
bank deposits subject to check.
What we need Is to bring deposits
back by restoring confidence in banks
and confidence of banks. This can be
done by controlled credit expansion
such as Federal Reserve Banks are
now bringing about"