, 1935-01-11

II uedQ OF OeLtIdA FIeSS
Washington bureau summarizes
what congress Is likely to do
and not do.
WASHINGTON, Dec. Most
OF those things that President
Roosevelt urges congress to do, con-
| gress will do before II adJournS late
In the spring or early in the sum
mer.
And most OF the things he pre-
ferS II not TO do. 1t will leave un-
done.
Most OF the things, both ways:
probably not quite all OF them.
Immediate payment Of the SOL
diers' bonus, which the White House
opposes, is mighty likely to be pro-
vided for. wen over the expected
presidential veto.
Currency initiation sentiment also
Is strong on Capitol Hill. though
scarcely as strcng aS pro-bonus EN-
timent. That Is TO say. II congress
votes II. and II Is vetoed, IL isn't
70 certain that its supporters can
muster the necessary two-thirds. IN
both congressional chambers. 10
make II effective anyway.
On the opposite hand, some Of the
welfare legislation. which the sd-
ministration obviously desires. seems
certain to be fought with such yigor
rs TO make It's enactment doubtful.
Bonus And Initiation
The bonus and currency initiation
are somewhat involved with an
other.
Why the bonus is popular Is
readily understandable. An over
whelming proportion Of the veterans
naturally are impatient for theft few
hundreds OF dollars each. AS they
have cohesion. many friends and a
telling appeal. the legislators are
exceedingly respectful OF their
wishes.
The administration. already enor-
mously overloaded wits depression
expenses. Is reluctant 10 shoulder
this additional burden at present.
But II Is $3.50 betting that 1t will
have 70 assume the burden.
Here Is where the inflationists'
argument enters into the situation.
The inflationary folk who. virtu-
ally without exception. arc pro-
bonus likewise. contend that the
simplest method Of paying off the
veterans Is in printing press mon
ey.' thus adding excess OF a couple
OF billions. in unbacked dollars. to
the national circulation 49, a decid-
edly missionary proceeding.
The issue is not partisan.
As outstanding p~ro-bonuS and in
dictionary leaders ones first thought
Is Of Senators Bronson Cutting
Progressive Republican, and Elmer
Thomas Democrat in the upper
house Of congress. and OF ReDresen-
tatives Wright Patman and John Z.
Rankin Cboth Democrats In the
lower chamber.
Central Bank
Financiers III intensely interest,"
ed C'pro' and con- III what ap-
pears TO be the administrations
plan TO transform the federal reserve
system into something IN the nature
OF a central government bank. This
would be done by depriving the
present 10 regional reserve banks Of
much Of their power and concen-
trating II in the hands OF the re-
serve board (now headed BY Gov
ernor Mariner S. Eccles. President
Roosevelt's appointee) in Washing
ton. virtually rs q treasury DEPART
mental subsidiary.
Ills proposition will be hard
fought. too. and not on partisan
lines. either.
For example It's bitterest oppon-
ent unquestIonably will be Senator
Carter Glass. veteran Democrat and
author of the federal reserve svs-
tenn. while government banking has
no moro arden supporter than SEN
ator Gerald p. Nye. North Dakota
Progressive Republican and. inciden-
tally. a severe New Deal critic.
New York bankers. by the way. are
hostile 10 a Washington concentra-
ton Of authority, inasmuch as II
promises TO curtail their own. which
hitherto has predominated. Provin-
cial bankers. however. are friendly
10 It. for the same reason: New York
banking, they feel. has bullied and
oppressed them. The New Workers.
however. = formidable enough to
put up a stiff defense Of their old
time status