Evening star., 1935-05-03
Says System Dangerous
Only if Method Is Used
to Raise Prices.
VINS0N BILL SHOWDOWN
PUSHED BY HARRISON
Test Postponed as Effort to Limit
Debate Is Lost-Saturday
Fight Possible.
BY the Associated Press.

oy IHo hooOSlotco EACobs
AS the Senate approached show
down on bonus legislation, o. NJ. w.
Sprague told a Banking Committee
today that payment Of the obligation
in new currency would excite fears
of imitation only if it were interpreted
as part of a policy to force an up
ward movement of prices.
He added it would not be regarded
as inflationary II it were done "grudg-
ingly" by the administration.
The former Treasury adviser, who
broke with the administration on
money policies. was testifying on the
omnibus banking bill, certain pro-
visions of which he favored as future
corrective steps.
Sprague, now a Harvard economics
professor, said up to the present the
administration policy had been to try
to induce more active demand for
credit" but this hasn't come yet"
Quick Vote Halted.
Meanwhile, administration efforts
to speed action on the bonus, with q
limitation of debate, collapsed tempo
rarily in the Senate, with Chairman
Harrison threatening a Saturday ses-
sion in order to obtain decision.
AS the Senate started the second
day of debate on the hotly disputed
measure, no one apparently was ready
to talk. and Vice President Garner
called for vote on the motion OF
Senator Clark, Democrat of Missouri,
to substitute the Vinson cash payment
bill for the Harrison compromise.
Senator Thomas. Democrat, OF
Oklahoma, protested that the matter
was of such importance that a vote
should 60 over until next week when
more Senators would be on hand.
McNary Protests.
Harrison, head of the Finance COM
mittee and in charge of the bill on
the floor, then proposed limitation
of debate to start Monday, but Sem
ator Smith. Democrat, of South Caro-
lima, and Senator McNary. Republican,
of Oregon. served notice it would not
be acceptable.
Smith said the measures before the
Senate included other issues than the
bonus, apparently referring to the
Patman proposal for new currency.
Harrison had sought vote by night
fall on the move to substitute the
Vinson bill for his plan.
He was aided in his battle to stop
this cash bonus plan by the demand
of Senator Long. Democrat, of Louisi.
ana for cash bonus Senators to vote
against the Vinson measure so that
the real test would come on the
choice between the compromise and
the Patman inf1ationary bill.
Urges Citizens to Wire.
In radio speech assailing the ad-
ministration last night Long called
on voters to wire their Senators to
stand for the Patman bill.
I'VE are fighting to keep this bill
which actually pays the bonus, from
being Sidetracked," he said.
Administration leaders felt that II
they could beat the Vinson bill, with
its strong support from the Republi-
can side, they could fight of the
Patman measure. Some Senators will
ing to vote for the Vinson measure
would oppose the Patman bill because
of its provision for the issuance OF
new currency to cash the certificates.
Long predicted President Roosevelt
would sign the Patman bill, despite
warnings of veto.
The President amt agoin' to veto
the Patman BILL" he told the Senate.
II haven't any word from the Presi-
dent. He seldom sends me any word.
But know, because the President is
good politician"
Senate Main battle-ground.
All three of the major bonus bills
were before the Senate for the final
test, which has been awaited for
months on the theory that the Senate
chamber was the real battle-ground
where the veterans drive would win or
lose.
Under the Patman or vinson bills
the average veteran would get about
81 ,000-minus any sums he had bor-
rowed against his certificate and GER
tain interest. 1t is figured these de-
ductions would bring the average net
cash payment down to about $500.
Under the Harrison bill he could get
s770 now-with loans and interest de-
Quoted. The net average payment
thus would be about $3.50 cash. Or
he could hold his certificate until
1945 and get $l,115 If he had not
horrowed