Evening star., 1935-04-07
INITIATION BLOC
RESUMES DRIVE
Payment of Bonus and Sill
yer Reconciliation to
Be Pushed.
Nv the Associated Press.

ny the Associated Press.
The long dormant Senate imitation
bloc reused itself yesterday for a drive
to put more money in circulation by
cashing the veterans bonus and re-
monetizing silver.
At almost the same time in the
House, advocates of central none
tary authority, which would have full
control over currency issuance, forced
the reopening of House Banking
Committee hearings on the omnibus
banking bill.
The Senate bloc offered modifica-
tions to the Patman new money bonus
bill, which its members contend
ed would make the measure more
acceptable to the administration. 1t
also organized to demand action on
the Wheeler bill for free coinage OF
silver.
Vanderlip to Testify.
At the request of Representative
Goldsborough, Democrat of Maryland,
and other House committee members,
Chairman Steagall, Democrat, of Ala
bama. agreed to reopen the banking
hearings tomorrow for testimony from
Frank A. Vanderlip. New York finan-
cier, and other witnesses.
The bonus and silver bills were
made the rallying points for new
monetary drive after a series of con-
ferences among Senators favoring cur
rency expansion. Four committees
were set up to steer the group action
on these and other legislative propo-
sails
Those participating in the confer
ences included the men who have led
inflationary drives Of the past two
years. eliminating in the Thomas
imitation law of 1888 and the silver
purchase act OF 1884. There has been
comparatively little activity by the bloc
as group this session, however.
Thomas Heads Bonus Drive.
Senator Thomas. Democrat Of Okla
homa, was charged with directing the
bonus drive; Wheeler, Democrat of
Montana, was named chairman of a
committee to get action on his 16-to-l
silver bill; Nye, Republican of North
Dakota. was placed at the head of q
committee in charge of banking legis-
lation. and Smith, Democrat of South
Carolina, was charged with general
direction of drive for legislation to
Increase prices of farm commodities.
The Oklahoman Immediately an
nounced the amendments to the Pat
man bill he will offer tomorrow In q
bid for administration acceptance OF
the measure.
He said he proposed to date the ad.
justed service certificates from the
declaration of war in 1917, making
them mature two years from today,
April 6, 1887. He would then offer to
pay the veterans the current value of
the certificates either in cash or
negotiable bonds With the certifi-
Gates maturing in 1897. their cur
rent value would be almost face
value.
Would Cancel Interest.
Interest on loans previously mads
against the certificates would be can
celled under the Thomas plan
He would write into the law, to
guard against fears of uncontrolled
imitation, that the certificates would
be cashed in new money. but if the
price index rose to the 1926 level nc
more new money would be issued. and
the remaining certificates would be
paid in the normal manner out of
Treasury revenue or bond issues.
Thomas also proposed to insert a
declaration Of policy that the Gov
ernment was and would continue to
care for those wounded in service, but
that the bonus payment adjusted COM
pensation with other veterans and
that there would be no general PEN
sion program in the future.
Says v. F. w. Agreeable.
The Oklahoman said he had talked
his amendments over with representa-
tives Of the Veterans of Foreign Wars
and they were acceptable, but he had
not received any assurances of admin
istration support.
While the imitation group is almost
solidly behind the Patman bill. it is
not united in its stand on some of
the other issues. On silver. for IN
stance. there Is some division cf
thought as to whether a definite ratio
OF 16 to l with gold should be adopted.
There Is also difference of opinion
within the bloc on banking legisla-
tion. Senator Nye, chairman of the
banking group, has introduced Father
Coughhn's measure for the creation
OF central bank, but some members
OF the group are more inclined to sup
port the bill submitted by administra-
ton officials to centralize authority
over money and credit in the Federal
Reserve Board.