The Waterbury Democrat., 1932-04-21
DAWES APPEARS AGAINST BONUS
 TO SOLDIERS
The General Was, as Usual, Very Emphatic in His Opposition to Any More Funds

ody OCAOAO SANO AS40O "&JS <SAN means committee.
 Dawes read a prepared state ment but in addition spoke out fre- uuently in his forceful fashion as different questions regarding the Reconstruction Finance Corpora ton, of which he is president, were raised, He defended the corpora tion's activities, saying every sec- tion of the United States has been benefited by it's loans He spoke particularly in support of the fre- quently criticized loan to the Mis- souri Pacific railroad. The corporation does not give money away and we have not made loans except when there has been adequate security" Dawes said. "In my judgment, in the long run this corporation will not incur losses and there is no chance of less of any principal of the fund" he said.
 Dawes said the corporation in the Il weeks of its operation had been asked for loans totaling one fifth of it's resources. Loans totaling $243,248,000 have been made to 1,520 banks and trust companies, Dawes said.
 The bulk of the loans have gone to small be.nks. Sixty-niEe and two- tenths per cent of borrowing banks have been in towns of less than 5000 population.
 "Only 5.3 per cent of the money loaned to banks in cities. Charges that the large banks have been aided are totally unjus- tified."
 Dawes led the administration attack. Flourishing his long stemmed pipe and banging the speakers rostrum in front of him. ne declared that the Patman bill would destroy the credit of the currency of the United States.
 He said the proposal lis an in- vitation to start on the primrose path of Germany" recalling to the committee the disastrous crash of the German mark when that coun- try adopted heavy infationary measures.
 He estimated that lack of con- ;dence in the financial feature had resulted in a $9,000,000,000 purchasing power loss in the last two years, and said the return of prosperity depends on retained confidence.
 Dawes declined to give his opin- ion of the bonus plan sponsored by Senator Thomas, democrat, Okla, measure somewhat similar to the Patman bill. He said he must decline because I haven't studied it.'
 "That's the trouble with this country" he shouted at the com mittee, "everybody's talking about something they don't know any thing about-and I won't. Dawes waxed more emphatic as he continued.
 "oh, he'll" he exclaimed when Rep Hawley. repn. Ore, asked if he would study the Owen and Thomas bonus plans. "I suppose if you want me to will have to. but have enough trouble with political buncombe and political smut.
 "I'm sick of damned dana- eogues. By God, you put me into this reconstruction corporation job and we're going to do it as busi- ness-and not politics"
 'If you inflate currency down comes the purchasing power"
 
 Look. out when you tamper with the foundations of your currency" he shouted.
 Withdrawal of foreign deposits in this country would result, he said.
 Lots of people feel discour- aged about this country, but a na- tional start of activity is due-and the mass of sentiment has changed" he went on.
 He termed operations on the New York stock exchange as "Picayunish transactoins, magni- fled" out of all relation to the real business activities of the country"
 Prosperity is bound to return" he said, because the people can't be down in the ditch without feeling better after a time.
 "The stock exchanges tranac- tions are of the peanut-stand size compared with those of the coun- try. Too much attention is being paid to it.
 ''It's not the peanut gambling that counts but what the great mass attitude is, and that attitude will change"
 "The claim is made" he con inued, "that the issue of this cur rency would so augment our money supply as to relieve the existing pressure upon debtors, expand credit and add to the purchasing power of the people. In my judgment, the important and real effect would be the contrary. The relief of the debtor class, the in- crease of the purchasing power of the people, the safe expansion of credit and the return of prosper ity all depend upon maintenance of confidence in the soundness of our currency and in the credit of our banks and our government"
 He said the Patman bill would have devastating effects" through a loss of general confidence which he said would be brought about by imitation.
 ."One need but recall" he con- tinued, "what happened to Ger many through the imitation of the German mark currency in the few years ending in 1924"
 At the request of Acting Chair man Rainey, Dawes showed extent of securities for the loan to the Missouri Pacific railroad.
 "When. the corporation does any thing you can count, gentlemen. on it's doing business as it should" he said.
 "For the sake of the country you should keep politics out of the corporation.
 'That doesn't mean we don't want public discussion. But don't indulge in politics-that is, talk about the corporation devotfng it's time to large corporations rather than to the small man.
 "That is no way to legislate prop erly. I never saw any government help itself by giving money away"