The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-02-01
Patman Campaign Doomed,
Claim Leaders of
Administration.
CONFERENCE is CALLED
President Is Forced Into
Difficult Position by
Revenue Need.
By United Pres,


WASHINGTON, Feb. T.
Congr e ssional infationists
sought union today in an inn
FASHIONED drive to force Presi-
dent Roosevelt to start the
presses going on $7,000,000,-
900 in new money. They
hoped to take advantage of
the Administrations pressing
need for new revenues.
Rep. Wright Patman Cd, Tex.),
summoned House infiationists of
every type to a conference, hoping
to form an irresistible coalition. He
and his colleagues faced the strong
est opposition the Administration
could muster. Leaders believed the
movement foredoomed to failure.
The coalition would include
particularly the farm bloc seeking
imitation through the Frazier
Lemke farm mortgage bill. 1t also
would include those who wish to
issue currency against the gold and
silver reserves of the Treasury, and
those who wish to pay the soldiers
bonus with printing press money.
Clashes With Administration Plans
The drive clashed sharply with
Administration plans for new taxes
and additional Federal borrowing
TO plug the $3,000,000,0OO gap torn
IN the Presidents budget by bonus
and proposed farm legislation.
Unbudgeted bonus and farm re-
lief expenditures have created an
immediate demand for increased
Federal funds. Mr.. Roosevelt has
indicated he prefers to tax and Dor
row. A powerful congressional mi
nority wants to initiate.
A majority of Congress is opposed
to new taxation, and leaders say a
hat Administration demand would
be necessary to start action.
F. ID. r. Can Issue Money
President Roosevelt has authority
to issue $7,000,000,000 in new cur
rency through:
Printing of $4,000, 100000 in United
States notes, or "greenbacks, au-
thorized under the Thomas amend
ment to the AAA act in 1888.
Issuance of $4,000, 100000 in silver
certificates against present idle sill
yer in the Treasury through deval-
uation of the silver dollar to so per
cent of its present value.
Coming of $1,8O8,000 900 In new
money by devaluing the gold dollar
to so per cent of it's former con-
tent from the present 5906 per cent.
Despite congressional efforts to
force the President to use his in
flationary powers, it was empha-
sized in responsible quarters that
the Administered ton has no inten-
ton of permitting monetary infla-
ton in the place of new taxes.
Seek to Prevent Rider
In an effort to prevent House
inflationary rider on the $2,227,O O0,-
600 bonus appropriation the Senate
Appropriations Committee, in report
ing out the deficiency and independ-
ent offices appropriations bills, in
structed Senator James Byrnes
Cd, S. c. to offer the supplemental
bonus estimates to one of the bills
on the Senate floor.
This maneuver, Senator Carter
Glass Cd, Va) said, would prevent
House inflationists from attaching
their inflationary rider when the
bonus appropriation reaches that
body. The vote would be on ac-
ceptance or rejection of Senate
amended bills already passed by the
House.
President Roosevelt, faced with .
$4,000, 100000 public debt in the
next fiscal year, urged fiscal agents
to plumb every revenue source for
taxes variously estimated between
S60O,OO0,o0O and $800,oO0,00o a year.
In official quarters it was said
that as much as $500, 100000 would
be needed to finance the Admins
tration farm program, and another
$3.50, 10000 to begin amortization OF
the bonus debt.
Expansionists' Views
Supporters of currency expansion
held there was at least SIS, 800, 900, 900
in idle gold and silver in the Treas
ury which could be converted itno
cash to cover:
1. The estimated s2,237, 100000
bonus payments.
2. The S5oO,oO0,000 annual farm
program costs.
8. The So ,ooO, 600, 600 estimated cost
of the Frazier-Lemke farm mort
gage refinancing bill.
Meanwhile, an appropriation OF
S12,278,375 was written into the in
dependent offices supply bill by the
Senate Appropriations Committee to
cover administrative expenses of bo-
nus payments.
Such a move faced opposition
from House inflationists, who fear it
may deprive them of the opportu-
nifty of killing bonus appropriation
and substituting for it the direct in
flation method of payment.
Warnings came from congressional
liberals that regardless of what form
a new tax bill takes they are pre-
pared to nffer various amendments.