The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-11

bear on members of congress. And
plums, is being used on the side Of
Caucuses today will decide the
fate of the bill in the house with
every prospect Of victory for the ad-
ministration and economy. How
ever, it is possible that either in
house or senate, compromise provl-
sions may be forced into the bill.
AS it stands now, the President S
measure will save something like
S525, 900 900. Some $500 100000 Is to
be taken from veterans, the rest
from government employees
It is to be taken at once, without
waiting for the end of the fiscal
year, so that approximately one
fourth OF this sum, or $l31 1000,
would be applied TO reduction OF
the 1888 deficit, now estimated at
more than billion dollars.
Presented by Douglas
Veteran organizations would pre-
fer to have congress vote a fiat per-
centage decrease in their benefits
rather than give the President wide
discretionary powers in making cuts.
The Presidents plan, carried to
congress by Budget Director Lewis
Douglas, would give the chief eXecu-
tive power to determine, regardless
of existing legislation, what degrees
of disability shall be pensionable,
when wars since the Civil war &C
tually began and ended for the pur-
poses of disability claims, how many
days service shall be requisite for
a pension and what presumptions
shall be included.
1t would limit domiciliary care OF
veterans with non-service disabilities
TO those permanently disabled
would eliminate all non-Service con-
nected allowances to emergency re-
tired officers, and would reduce PEN
sions of veterans and widows on &C
count of the Civil war and earlier
wars by 10 per cent.
No Time Limit Fixed
The flat percentage cut favored by
veterans would leave existing law as
it is, and open the way for resump-
ton of the present annual billion
dollar payment on account of vet
Grams.
The administration bill fixes no
time limit for the reductions it pro-
poses for veterans.
Federal pay cuts would be limited
to one year. They would amount
apparently to u per cent cut with
no exemption for low salary classes.
Indexes of the cost of living pre-
pared by the national industrial
conference board and the bureau of
labor statistics indicates a drop Of
II per cent in the cost Of clothing,
food, fuel, light, housing and sum
dries between the first half of 1928
and the first half of 1882, but while
the bill sets up this comparison as
the basis of the wage cut it limits it
to Is per cent.
Congressional estimates that
about $126,OOOOOO will be saved in
dictate the cut will be no greater
than IL per cent.
Interest Rate liked
Administration leaders hope that
issuance of new currency and the
passage Of drastic economy legisla-
ton will enable flotation of secur-
tiles, at the March Is refinancing,
at lower interest rates than those
prevailing. This would make posi-
bic a considerable additional rate
acceptable to purchasers.
President Roosevelt in his Friday
message to congress urged the
necessity of meeting great refund
ing operations this spring" as a
reason for immediate passage Of the
measure giving him power to cut
expenses.
The government has been forced
recently to borrow at 3a4 per cent,
contrasting with rates of a fraction
Of l per cent not long ago.
When this saving is added to the
$525, 100000 saving estimated from
the economy bill the limit of admin
istration retrenchments, at the pres
ent time, almost will have been
reached.