Evening star., 1933-01-15
|SPEED IS ASSURED !
|>l ON DEBT RELIEF
Garner Stand on Bankruptcy
1 Issue Seen as Move to
Curb Inflationists.

Continued From First Page)
some other way, If it is drawn with
proper care. That depends on whether
unanimity with which the sponsors Of
the measure come together.
Studied for Two Years.
This is a non-partisan proposal.
The President has sent Congress mes
sage recommending it. The joint meet
ing of the Senate and House Subcom-
mittee on the Judiciary have been
working ON 1t for about two years. They
now are about ready to offer some
thing.
'It looks as though the proposal has
Its advantages and will be beneficial
by permitting the creditor and the
debtor to agree in simple manner on
the value Of the assets. The assurnp-
ton is that the courts will cooperate
to make the provisions of the measure
effective
II believe it will be helpful in ad-
justing the debts. This is q general
proposition and applies to everybody,
corporations and individuals. There
has been a great demand developing
IN this country for revision Of the
bankruptcy laws. The American Bar
Association, Manufacturers and Retail
ers' Assertions have all been studying
the problem.
IT am opposed to class legislation.
The trouble with the legislation we
have Sbeen considering and passing here
has been that it has been designed to
assist special classes. In addition, I
see no reason why the proposed re-
vision of the bankruptcy laws should
not be, permanent legislation. It is
designed to minimize the large fees that
have been obtained by lawyers and re-
ceivers of the companies in difficulties"
Asked Il the program might result in
heavy losses to the Government in the
loans whAch have been advanced by
the Recorh;truction Finance Corpora
ton, Speaker Garner said:
II do mott believe there would be any
impairment spf the creditors securities
One Way United States Could Lose.
The only way the Government could
lose, IN any event, he explained, would
be, as the result of finance corporation
lendingS, from corporations or railroads
being forced intoreceiverships In such
a case Speaker Garner explained, the
Governments losses would probably be
greater under the existing laws than
under the arranger1ent for settlements
provided by the proposed revision Of the
Law.
Thc attitude of the, infiationist group
was presented to the committee by
Representative Wright Patman, Demo-
crat, of Texas, author Of the $780,
100000 bonus bill defeated in the Senate
at the last session, which, called for the
issuance of Government bonds to be
made part security for the new currency
to be paid the veterans for the face
value Of their adjusted service certifl-
Gates. Later, Representative Patman
said:
"I construe this proposal to amend
1.-THE bankruptcy laws as merely propoS-
}ing to put the people Of this country In
Bankruptcy Immediately and 10 dis
| tribute their assets speedily among a
few large creditors and influential
lawyers.
II told the committee that a mora
torium on debts for limited time would
be much better and would afford time
to expand the currency SO the people
can pay their debts. The people don't
want bankruptcy: they want an oppor.
tunity to pay their debts.
IT told the committee that we can
not debate this country to present
prices and wages; that the remedy Is
imitation of the currency i11mediately
and not bankruptcy"
Admits Imitation Demand Growing.
I'm sure my bill has the support Of
majority of the members Of this
House" Representative Busby said.
Sentiment for some measure Of this
kind Is increasing every day
Hearings on bill to issue additional
silver currency have already been slated
before the Coinage Committee, headed
by Representative Somers, Democrat,
Of New York.
Representative Rainey the majority
leader. admitted that the cry for cur
rency imitation wac growing louder. He
said he preferred the silver issue If
such legislation we're passed.
Some proponents of silver legislation
look askance at Busby's bill, but the
Mississippian said there was no con-
fiicf.t
Emergency Proposition.
There is an emergency proposition"
he said. "a beginning. Those who
believe like I do are also for re-
moneti1ng Of silver, for 1t is recog-
nized that we must broaden our cur
rency base"
The Treasury woulS use the currency
authorized by Busbyis proposal to pay
the current expenses of Government,
Discussion of the bankruptcy bills
centered around proposals IN the meas
ures relating to secured creditors and
to the appointment Of referees to
handle the reorganization of railroad
corporations.
The bill by Representative La Guardia,
Republican, Of New York, would enable
voluntary or involuntary reorganization
of insolvent railroads and IN the pro-
cess the debts and assets might be ex-
tensively scaled down.
The measure by Representative Nc
Keown, Democrat, OF Oklahoma, affects
other corporations and individual debt
ors and would enable similar arrange
ments IN their cases.
Increased wheat shipments through