The Waterbury Democrat., 1935-01-03

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 Roosevelt doesn't offer democratic members an "out."
 The plan most favored by the administration would make an im- mediate cash settlement with veterans in need" which would be equivalent to cashing in an in- surance policy 10 years ahead of time-although there are propos- a1s to pay more than the actual 1885 cash value.
 Republican House Leader Bert Shell says this would be like pay ing off all certificate hoders, as so or 90 per cent of veterans in his district are in need. Senator Pat Harrison has suggested that bonus payments be confined to vet erans now on relief.
 Senator Steiwer of Oregon thinks bonus payments should be spread over the next few years. Still an- other plan would throw the date of the certificates back to 1918 in- stead of 1925 and mature them in 1885.
 It's argued that this would cost only about $1,200,000,00O, as 80 per cent of veterans have borrow ed the permitted 50 per cent on face value of their certificates.
 NO DRASTIC INITIATION
 Patman and other infationists want to, pay off the certificates by currency issue. But Roosevelt has set himself firmly against that, passing the word to congress that 1t must raise taxes to cover any bonus expenditure.
 CnnDraaqnna Qrnnf 0nKfnHo fn boost taxes. That and the fact that there1l be about 50 senators who voted mo" on the bonus in the 73rd congress, lends hope to the compromise effort.
 No drastic inflationary measure Is expected to become law this year. Father Coughlin and Sena- tor Thomas are claiming, as did
 Dr Wirt, that all progress toward | recovery is traceable to Roosevelts
 limited use of infiationary powers granted by congress.
 Further devaluation of the dol lar is sure to be an issue and even such a conservative as Senator
 Bulkley of Ohio says such action may be necessary to raise the price
 level. Silverites will again be camoring for remonetization at $1.29 an ounce.
 The U. s. Conference of Mayors has suggested direct non-interest
 loans to cities, the government talk | ing bonds for the loans and issu- ing currency thereon.
 STRESS POWER VALUE But Roosevelt Is not now con- templating any of those things and, barring unforeseen developments, can be confident that his vetoes
 of imitation bills would be sus- tained. He Is empowered to de- yaluate the dollar another nine cents, but holds that power in re- serve for trading purposes-to be used If remaining gold standard countries go off gold or perhaps in an international stabilization agree ment.
 Credit imitation, rather than cur- rency imitation, will be an admin istration policy as far ahead as anyone can foresee.
 The progressives would like to strike few blows for redistribu- tion of wealth by levying higher income, inheritance, and gift taxes. But the administration isn't anx- ious for any new taxes and prob- ably can head them off.
 EXCISE TAXES TO STAY
 The boys on the house ways and means committee are again talking blithely of plugging loop holes" in the tax law to bring In more revenue. Some of them estimate, for instance, that about $3.000.000 more spent for internal revenue agents wuold bring in about $75.000.000 more taxes.
 The excise taxes, which lobby ists call nuisance" taxes, bring in $425, 100000 year and will be kept for another year, though there will probably be a fight on the gas- oline tax, which now nets $160.- 000,O00.
 There has been plenty of agita- ton, carefully sponsored by the liquor interests, for a cut in the $2 a gallon liquor tax. There doesn't seem to be any preponder- ant strength behind the proposal, but that doesn't mean that there won't be some power there.
 BANK LEGISLATION SURE
 Don't be surprised if there's con- siderable furore over proposals to jimmy into corporate surpluses via the tax route. Progressives will argue that huge accumulated sur pluses should be distributed in dividends or spent on replace ments.
 Administration folks have so often used the threat of a central bank as a brandished club to get the bankers to lending money that it's aHybody's guess whether latest reports of revived White House intent to push such legislation are to be taken seriously.
 Legislation. perhaps of drastic character, which will tend to make the federal reserve system more of a central banking system is cer- tain. Under Governor Mariner Ecclcs, the reserve board will be given more centralized power over the 12 reserve banks and relax the rules to determine eligible paper offered for loans.
 Thus the administration would have wider power to regulate credit and force down interest rates.
 EASIER CREDIT SOUGHT
 Only Roosevelt stands in tho way of passage of even more rad ical banking Legislation by con- gress. Senators Cutting of New Mexico and LaFollette of Wiscon- sin have been tho chief central bank proponents. It's likely Roose- welt will be given the power to appoint the IF reserve bank gov- ernors, but big bankers may sue for peace and avert the worst.
 There's also strong pressure for a nav or refnf0rced system which