The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-05-11

Highlights of News
During Last
Week.
by FREDERICK MATSoN-
Times Financial Writer

lF4AA fNOl4efe y XII vi AufaAaHNf
the Senate strapped the Harrison
compromise bill. chose the Pat
man infiationary bonus bill in pref
erence 70 the Vinson measure. and
then formally passed the Patman
bill calling for payment OF a.
100000 900 % veterans in new cur
rency BY a vote Of s. 10 80.
The Patman bin. which was sub
stituted for the Vinson-AmeTican
Legion measure by a vote Of 50 70
s.. has already been passed by the
House and now goes 20 the Presi-
dent. who, IL is conceded. viii use
his veto power Administration
leaders believe the Senate will up
hold Mr.. ROOsevelt's action, but
distinct possibility that his veto
NAV be overriddCn nevertheless
exists. The Vinson bill called
for issuance Of bonds for immediate
payment Of the bonus in full. The
Harrison measure would have paid
the soldiers in cash or IN nego-
table bonds or would have given
a premium to those who held their
certificates until l945-the original
date Of maturity. Under the
Patman bill-the one now before
the President-the veteran who has
not borrowed on his certificate
would get $1,000 in greenbackS i'm
mediately. The average veteran,
VINO has borrowed. would receive
around $500, with interest on the
loan IF the other $500 forgiven.
approximately 100000 veterans
hold the adjusted service certifi-
Gates.
TINE Railroad Retirement Act,
j. first social security legislation
to be passed under the New Deal,
was stricken down by the Supreme
Court as exceeding the constitu-
tiOnal authority of Congress.
The court affirmed a decision Of
the Supreme Court of the District
OF Columbia which held the act
unconstitutional. The legislation
provided for a system Of Old-age
pensions for all railroad workers.
II was another five-tO-fOur
ruling by the high court. but this
time marked by the detection OF
Justice owen j. Roberts from the
ranks of the liberals" who last
February saved the Administration
from having its gold program de-
Clared illegal. . The decision,
read by Justice Roberts, con-
demned many provisions Of the law
as arbitrary" as placing an undue
burden on the railroads and as
having nothing to do with safety
and efficiency of their operation.
The court so riddled the law that 1t
appeared enactment of a new
measure would be practically i'm
possible. Chief j u c
Charles Evans Hughes wrote a bit
ter dissent in which Justices Louis
ID. Brandeis, Harlan F. Stone and
BENJAMIN Cardozo joined. The loss
OF Justice Roberts from the liberal
group was regarded as a severe
blow 10 New Deal policies still due
for Supreme Court consideration.
CTALEMATE between Federal and
- state authorities in Illinois
which preCipitated a desperate relief
crisis was partially broken yeSter-
dav by Harry L. Hopkins. Federal
Relief Administrator. He sent word
TO Chicago that a 81 100000 "spe-
Cial fl.rd" may be pressed into use
10 meet the urgent needs of more
than half a million persons facing
deSututiOn. sickness and starvation.
The crisis results from refusal
of Federal authorities to supply
Nav FERA funds TO Illinois unless
the State Legislature provides
$1,000 600 as its share of the
Sl3OOO.OOO monthly relief bill. . .
In Washington. the House wrote
its approval on the 9l-page bank
ing bill Endorsed by Mariner S.
EccleS. governor Of the Federal Re-
serve Board The bill. designed TO
extend vastly the boards powers.
was passed by a vote of 27l TO 10.
but is expected to meet much stiff
fer competition in the Senate.
o. The legislation would make
permanent the present temporary
deposit insurance system. extend
Reserve Board control over open
market operations in government
securities and empower the board
to vary the reserves that member
banks must maintain against de-
pests.
4 VISITOR from England looked
"a on the American financial
scene this week. He is Sir Josiah
Stamp. considered in his own Coun-
try the greatest practical living
economist. Speaking at a luncheon
IN his honor at Chicago Wednes-
day. he commented on the cur
rent problems that face our gov
eminent AS an outsider his
observations on the budget situa-
ton we're particularly interest
ing. and. we think, worth quoting
The unbalanced budget of the
United States government at pres
ent does not wOrry me particu-
larly." Sir Josiah said. But there
are two aspects TO the situation.
An unbalanced budget may be me-
chanically correct. but it may at
the same time De pSychOlOgically
wrong. You can continue your I'M
balanced condition longer than Eu-
ropean nations. because your peo-
pie are not so easily alarmed, but
when your public psychology does
Change-the moment you do lose
great is the fall thereof"
The indianapolis Utility District
rejected the two bona fide bids
submitted a week ago for the
5000 900 revenue bond issue with
which the city intends TO take over
the Citizens Gas Co. At the same
time is was ordered that the bonds
be readvertised for sale May %.
In a public statement. the
Utility District explained that the
bids were rejected because. among