Evening star., 1936-02-02
CRY FOR INITIATION
INSTEAD Of TAXES
GAINS IN CONGRESS
Powerful. House Bloc Maps
Drive and Thomas Will
Campaign in Senate.
FARM RELIEF LINKED
TO PLAN TO PAY BONUS
Bankhead Reveals Strong Senti'
ment Among Colleagues to
Expand Currency.

For past seperal gears tauored
LEGISLATION for immediate settle
n,ent OF 1915 bonus obligation to
World War ueterans carried
specific instruction that payment
should be made in ne,Uly printed
currency. This gear bonus aduo-
Gates separated their cause from
that OF infationists, succeeded IN
forcing passage of legislation tor
redemption OF certificates IN odoy
bonds. cashable after June IS.
Last Wednesday President Roose-
pelt asked appropriation OF $2,249-
900, 900 to meet cash demands dt
same time he spoke OF new fdres.
In addition to bonus needs, net0
farm program rill require about
$500, 100000
Imitation blocs in both Senate
and House look upon these require
n,ents as opportunities for applica-
ton of their theories.
BY the Associated Press.
A determined offensive seeking
bonus payment through currency ex-
pansion rather than new taxes sprang
yesterday from meeting OF power
full House imitation bloc.
Lines also were consolidated ana
widened in a corollary campaign to
meet the costs of a new farm-ald
program with the same device.
Half a hundred Representatives
both Democrats and Republicans
approved resolution opposing "addi-
tional taxes to pay the debt to the
veteran" and urged the use OF new
money backed by the credit OF this
Government and its metallic reserves.
Vote Steering Committee.
They voted to set up a special
steering committee to fight for that
objective. Senator Thomas, Demo-
crat, of Oklahoma. simultaneously
promised to start a similar move IN
the Senate "to block all tax legislation
and the issuance of any more interest
bearing bonds until the Treasury has
issued currency against the idle gold
and silver"
Linked closely with the bipartisan
drive shaping up at both ends OF the
Capitol was the question of printing
more currency to finance the admin
istration's program to substitute soil
conservation and subsidy plan for the
defunct A. A. A. President Roosevelt
has suggested $500,000,000 in new
taxes, replacing the invalidated proc
essing taxes. for that purpose.
Yesterdays meeting did not touch
definitely on that angle, but the reso-
luton, offered by Representative
Greenwood, Democrat. of Indiana,
was regarded in some quarters as
broad enough to cover it.
Ask "ContrOlled Expansion"
The resolution said:
I'VE favor a sound but adequate
currency to be preserved at all haz-
ards. We desire controlled expansion
of the currency, sufficient to meet the
needs of the people and the country.
and are unalterably opposed to un-
controlled expansion"
Both Senate and House leaders in
dicated the administration would con-
tinue its opposition to currency infla-
tion and expressed confidence they
could beat down the renewed demand
for it. Dovetailed with their position
was a warning from the Chamber OF
Commerce of the United States
against uncontrolled imitation.
The chamber, however. struck pri-
marily at the administration present
fiscal policy as leading to the equiva-
lent of currency imitation.
Inflationists Strong in Committee.
Despite the claims of Democratic
chieftains that the latest campaign
would fail. considerable sentiment
appeared in the House Ways and
Means Committee for using new cur
rency backed by Treasury gold and
silver to meet the cost of the bonus.
Several members said privately they
regarded such a course as preferable
to new taxes.
Coincidentally, Senator Bankhead.
Democrat. of Alabama, and some of
his colleagues asserted IS to 40 Sena-
tors wanted the President to use his
(See IMITATION, Page a.