The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-20
TREASURY RAID
BY CONGRESS
IN PROSPECT
Roosevelt Increases Vet
eranS' Pay to Stave OFF
Spending Threat.
ELECTION TIME is NEAR
Many Congressman to Use
Benefits Issue in
Campaigns.
BIZ United Press

By United Press
WASHINGTON, Jan. 2o.-A con-
gressionaI raid on the treasury for
funds to continue public works, re-
store government pay, further lib
eralize veterans benefits, and put the
government in a variety of other
expensive projects was in prospect
today.
Sponsors of specific appropria-
tons cited profits which the govern
ment plans to realize from seizure
and revaluation of gold as reason
for the new outburst of enthusiasm
for spending the governments
money.
In the senate, some are looking
around for other sources OF revenue
to finance the spending.
President Roosevelt moved to fore
stall the raiding late yesterday by
signing an executive order increas-
ing by $21, O92, 205 the total COM
pensation of veterans, but whether
this action, easing the curtailments
voted in the economy bill last spring,
will be sufficient to quell congress
sional rebellion was problematlcal.
Veterans Hearing Set
Many senators and congressman
seeking election are going to cam
paign on the veterans issue. The
whole house comes up for re-elec-
ton this year, and congressman eX-
pecting a close fight will feel con-
siderably more confident if they can
point to a record which includes a
vote for veterans benefits. The
Presidents action will deprive them
of this opportunity unless they
move for further liberalization OF
the benefits.
The matter may come to head
next week. Chairman John E.
Rankin of the house veterans COM
mittee announced hearings on vet
Grams legislation will start next
Tuesday. He intends to press for
action on the floor. Polls of the
senate before Mr.. Roosevelt's order
indicated sizeable support in that
body for notifications of the bene-
fit reductions.
The congressional spending en-
thusiasm burst simultaneously with
announcement that the civil works
administration would start demob-
ilizing Feb. Is even if it gets its re-
quested $780, 100000 additional ap-
preparation from congress.
Workers will be dropped at the
rate Of 100000 every two weeks,
and the whole CWA project ended
by May l, Administrator Harry
Hopkins said. This announcement
followed stopping of CWA pur-
chases, and reduction of maximum
working weeks to twenty-four hours
and fifteen hours, depending on the
size of the community.
Seeks Permanent CWA
Senator Clarence G. Dill Dem.,
w doilJ, Will 4lSllO 4Ol q pei 1Ad1ACAAO
public works program. He would
finance it through increased inheri-
lance taxes on big legacies running
into millions of dollars. THE gov
eminent is being driven to take
larger and larger proportions of in
heritanceS," Senator Dill said.
Also in favor of continuation of
public works and large relief grants
are House Majority Leader Joseph
w. Ryrns and Senators Edward P.
CoStigan, Dem., Colo), Robert F.
Wagner, Dem, N. ", and Robert
M. La Toilette, (Rep., Wis., This
group expects to rally strong sup
port for works appropriations.
Senators Gerald P. Nye, (Rep., N.
d., and Arthur Robinson (Rep.,
Ind, were in the forefront of those
seeking to wipe out the pay cuts of
government workers and poll by
Senator James F. Byrnes, Dem, S.
c., indicated they had good
chance to succeed in their purpose.