The Washington times., 1935-05-20
PATMAN GROUP
IN FINAL PLEA
AGAINST VETO
Country Back Of Proposal,
House Members Assert in
White House Visit
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velt's reiterated statement that
the bonus is not due at present.
Situation Pictured
A well-drawn picture Of the bill.
lions of dollars received by war
contractors was presented by the
committee in contrast to the
meager treatment received by the
men who fought in Europe or
gave their time in uniform on
this side of the ocean.
The railroad owners, 1t was
pointed out, received a fortune;
receiving $3,O0O,000 a day for
extra services after their release
from war service. 1t also was
pointed out that from the billions
loaned foreign countries large
sums were used abroad to pay
adjusted compensation to their
men in uniform.
The bonus committee took a
lusty crack at the manner in
which the Treasury had cut
down some Of the huge income
taxes levied against wartime
profiteerS. Three billions were
refunded to large industrialistS,
it was claimed, although the tax
returns were made out by the tax
payers themselves. The state
ment said:
"a large number Of the bene-
ficiaries Of these gifts were war
profitters and should have been
convicted for treaosn for dis
sipating and plundering our re-
sources during the war;"
BLOW AT MELLON
The statement mentioned the
return of $15.736,595 interest to
the u. s. Steel Corporation which
was delayed until more than $10,-
900 interest in addition was re-
funded.
The statement continued:
'Mr. Andrew Mellon, while
Secretary of the Treasury, made
large refunds to himself and to
his companies"
In addition, the committee
charged that interest on Mellon
refunds was allowed at the rate
of 6 per cent. This was used as
an argument for the payment OF
interest to veterans from the time
they rendered service in 1918-1919
to 1925. The committee wants
the bonus certificates dated back
to 1918, with 6 per cent interest.
The committee discussed infla.
tion at length, taking the position
that the bill provides against the
dangers of initiation and that the
money authorized would be backed
by all the gold in the Treasury.
It is proposed to permit the vet
erans to deposit their bonus GER
tificates and receive new money
in the same way banks are per-
mitted to use Government credit.
Plan Explained
The backing of this money was
explained in this way:
"The Treasury has SIS In
gold and 81 in silver to pay
every outstanding $40 bill. ).
If the veterans are paid two bill
lion dollars there still will
be sufficient gold to redeem all
outstanding money 100 per cent
on the dollar and the Treasury
have remaining :. idle and un-
used, two billion dollars IN gold
and silver"
This veterans bonus money,
then, would Nave so per cent more
gold behind it than ANY Federal
Reserve note or other bankers
money ever had" said the COM
mittee. The committee suggested
that instead of delivering gold to
the Federal Reserve system. as is
contemplated. that it remain in
the general fund to back this pro-
posed bonus money.
This would give the Treasury
q two billion dollar gold reserve,
said the statement to the Presi-
dent, and with such backing and
proper administration of the Fed
eral reserve it was pointed out
that no initiation could occur.
The argument was advanced
also that the Government should
quit paying tribute in the form